Maverick County Hospital District Board awards Legal Services Contract without formal evaluation process
By: Jose G. Landa, Copyright 2014, Eagle Pass Business Journal, Inc.
The Maverick County Hospital District (MCHD) Board of Directors held a special meeting on Monday, October 6, 2013, at 5:00 pm at the District’s Second Floor Conference Room located at 3406 Bob Rogers Drive in Eagle Pass, Texas, awarding the Legal Services Contract to current General Counsel Brin & Brin of San Antonio, Texas without establishing protocol and a formal evaluation process of the five bids received in response to request for proposals.
After calling the meeting to order, establishing a quorum, and visitor recognition, MCHD Board President Juan Manuel “Chuco” Farias went into Agenda item No. IV-A for review and acceptance of the minutes of the Special Board Meeting of September 16, 2014. Board member Joaquin L. Rodriguez motioned to approve the minutes while Secretary-Treasurer Humberto Duran seconded. During discussion, Board member Ricardo E. Calderon advised the Board that the proposed minutes for the September 16th special meeting were incorrect as it included a summary of discussion and a vote taken in Open Session as if it had been taken in Executive Session, which would have been a violation of the Texas Open Meetings Act. Calderon noted that no Executive Session had been held at the September 16th meeting and that the minutes were not a true and accurate summary of the proceedings of the September 16th meeting. During the past several months, Calderon has noticed and objected to the proposed minutes of MCHD Board meetings as not being a true and accurate summary of the proceedings.
After Calderon’s discussion, Rodriguez withdrew his motion to approve the September 16th meeting minutes as proposed and motioned to have them tabled, which Duran accepted and seconded. The Board unanimously approved to table the September 16th meeting minutes for correction and action at its next Board meeting.
Board President Farias then called Agenda item No. IV-B for review and acceptance of the September 24, 2014 regular Board meeting. Duran motioned to approve while Rodriguez seconded it. During discussion, Calderon raised the point that the proposed minutes of the September 24th meeting were not a true and accurate summary of the proceedings of that meeting.
“It omits a lot of discussion and comments that were made by several board members that I think would be pertinent to make these minutes complete,” said Calderon.
Board President Farias replied to Calderon by stating “The minutes cannot be complete as you know and I have stated before that the decision of the Board was that a summary be presented. But your comments are well taken. It is a summary and it is presented.”
In other words, the minutes are selectively edited and deleted without presenting to the taxpayer or public a true and accurate summary of the proceedings of the Board meeting. At the September 24th Board meeting, Calderon requested that the preparation of the minutes and the persons who edit the minutes be discussed as an Agenda item, which Farias agreed to place on the next meeting.
After discussion, the Farias, Valdez, Duran, and Rodriguez approved the September 24th meeting minutes with Calderon voting against due to their inaccurate summary of the proceedings.
President Farias immediately asked for a motion to go into Executive Session to discuss Agenda item no. VI-A and VI-B regarding the bids for Legal Counsel Services Contract and the sale of 744 South Bibb Avenue property skipping completely Agenda items no. V-A and V-B in Open Session and without a motion to skip these agenda items. Board member Rito J. Valdez, III motioned to go into Executive Session and Rodriguez seconded the motion. During discussion, Calderon raised a point of order under Robert’s Rules of Order that no motion to skip Agenda items nos. V-A and V-B was made and necessary. President Farias agreed that Calderon was correct in his point of order. Nevertheless, the Board agreed to go into Executive Session with Calderon voting against.
The Board went into Executive Session to receive advise from Legal Counsel regarding the bids received for Legal Counsel Contract Services and the sale of 744 South Bibb Avenue property.
Upon returning into Open Session, Farias asked if there were any motions by the Board. Calderon made a motion to table the Agenda item regarding the bids for Legal Counsel Contract Services until the MCHD Board established a protocol and an objective evaluation process of the five bids received including an interview of the top three finalists. Farias called for a second to Calderon’s motion, but it died for a lack of a second. Farias, Valdez, Duran, and Rodriguez refused to second Calderon’s motion for a formal evaluation process be established, not even for the purpose of discussion.
President Farias then asked for any other motion by the Board. Rodriguez quickly jumped in and motioned to retain the Legal Counsel Contract Services of current General Counsel Brin & Brin of San Antonio pursuant to the terms of their bid proposal. “I understand that we had five individual parties that responded to the request for proposal and my motion is that we retain and continue with Brin and Brin pursuant to the terms of their proposal,” said Rodriguez. Board member and Maverick County Treasurer Rito J. Valdez, III, seconded Rodriguez’s motion. Farias asked for discussion to the motion.
Board member Calderon stated that he opposed the motion made by Rodriguez for several reasons. “First, for the fact that there was no protocol established by the Board. Secondly, there was no objective evaluation [process or] criteria that was followed by the entire Board. Thirdly, there was no interview process of the finalists of the five law firms that applied for this position. Furthermore, there is among the five law firms, there is one law firm whose bid and costs are significantly less than the law firm that was motioned. There is one law firm that its prices are a savings of $18,000 per year on the monthly retainer fee to this Hospital District. Since we are in a deficit [budget], a savings of $18,000 is significant for our Hospital District budget. Furthermore, the same law firm offers to charge the rate of $200 per hour for any legal services over the 25 hours [of the monthly retainer fee] agreed compared to the law firm that was motioned which is going to be charging the district $325 per hour,” said Calderon.
Calderon added that the law firm with a lower bid has also served as legal counsel for the Maverick County Hospital District in the past for almost 17 years.
“Without an evaluation objective interview process, I cannot participate in this particular motion and I think it is a travesty to do this without an objective process and to relegate it to a personal judgment or political decision,” said Calderon.
Farias objected to Calderon’s statement. “Any decisions made are not political. We are all elected officials that people have put their trust in us. Everybody looked at all the bids, we compared them and made a judgment and decision that we think is very unfair. Some, it was optional to use the instrument or not as elected officials we don’t have to follow that if we don’t want to. It doesn’t mean that anybody’s judgment is better than anybody else’s. I for one will not allow anybody to question the judgment of others. We don’t question anybody again I ask that the judgment of the trustees is respected and whatever decision is reached has to be by majority vote. Not one person is particularly responsible for this. This board does not run on the decisions of one person. This board runs on the decisions of the majority and the majority has to be respected,” said Farias.
Farias asked if there were any other comments, Calderon began making comments but Farias rudely tried to cut him off from speaking. “You already had an opportunity to say something Mr.Calderon,” said Farias.
Calderon continued to speak stating that he had taken the time on Friday, October 3rd, to come to the MCHD Administration to evaluate the five bids from the applicants and that his written evaluation score sheet of the five bids remained sealed and unopened without ever being taken into consideration by the entire Board. “I have submitted my evaluations in this envelope which is sealed. As of today, it remains sealed, it has never been opened and I cannot participate in a process that doesn’t even open the evaluation process,” said Calderon.
Calderon noted that only three (sic) of the five MCHD Board members took the time to review and evaluate the five law firms according to the written evaluation score sheet provided by the MCHD and submitted it to Administration for safekeeping until the special October 6th Board meeting. However, a MCHD Administration employee corrected Calderon that only two Board members, Duran and Calderon, had taken the time to come by the office to evaluate the five bids and turned in their written evaluations of the bids, plus MCHD Chief Executive Officer Terri Contreras also had done written evaluations of the five law firms. President Farias, Vice-President Rito J. Valdez, III, and Board member Joaquin L. Rodriguez did not use the written evaluation score sheet provided by the MCHD.
President Farias visibly nervous then replied that everyone had evaluated the bids in their own way. “They compared, had them straight out on a table. If it doesn’t agree with any one member, then that is too bad. We still have to go with the majority,” said Farias.
President Farias then called the motion to retain the law firm of Brin & Brin as legal counsel for the MCHD and the motion was approved by the majority vote of Farias, Valdez, Duran, and Rodriguez while Calderon voted against it.” I oppose it for the reasons stated during discussion,” said Calderon.
Farias quickly jumped in and said “You already had your say so.” Farias then stated that all opinions are respected.
The MCHD Board placed the Legal Counsel Services Contract agenda item on at least three Board meetings, including the September 16th, September 24th, and October 6th meeting. The five law firms submitted their bids on or before September 4th. And only two Board members took the time to go to the MCHD office and write their evaluations on an objective written evaluation score sheet. None of the five law firms were interviewed.
Another Agenda item discussed and action taken was on the sale of the 744 South Bibb Avenue property. The sale of 744 South Bibb Avenue by the Centro Cristiano Internacional of San Antonio did not close as per its contract. Secretary-Treasurer Humberto Duran motioned to extend the listing agreement with Realty Executives of Eagle Pass for another six months but at a reduced commission fee and Rodriguez seconded the motion. Farias, Duran, and Rodriguez voted for the motion while Valdez voted against and Calderon abstained. The meeting was adjourned.
