Maverick County Commissioners Court to discuss Maverick County Detention Center Trustee & Bonhholders Proposal for Continued Operation

By: Jose G. Landa, Eagle Pass Business Journal, Inc., Copyright 2015

Maverick County Commissioners Court will hold a special meeting on Friday, July 17, 2015, at 5 P.M. at Commissioners Courtroom, 500 Quarry Street, Eagle Pass, Texas to discuss and take possible action on two very important agenda items concerning a proposal by the Maverick County Detention Center Trustee UMB Bank on behalf of the Bondholders and the continued operation of the Maverick County Detention Center by Maverick County Sheriff Tom Schmerber.

Maverick County took over operation and management of the 625 Bed Maverick County Detention Center on November 1, 2013 after The GEO Group, Inc. withdrew from operating the detention center on October 31, 2013.

Maverick County has been negotiating with the Trustee and Bondholders of the almost $43 Million detention center for over a year concerning the terms and obligations owed by the Maverick County Public Facility Corporation, an instrumentality of Maverick County.

Maverick County Commissioners Court changed completely its financial and legal team in the middle of the negotiations with the Trustee and Bonhholders by terminating former financial advisor Roberto G. Rodriguez of Southwestern Capital Markets, Inc. of San Antonio, Texas and replacing him with Raul Villasenor of First Southwest Capital of San Antonio, replaced former legal counsel Poncho Nevarez of the Nevarez Law Group of Eagle Pass with Woody Wilson of the Law Office of Luis Vera of San Antonio, replaced former Bond Counsel Juan “Johnny” Aguilar of San Antonio with William “Bill” Avila of San Antonio, and replaced former Independent County Auditor Milo Martinez of Martinez Rosario & Company of San Antonio with the Beyer Group, CPAs, of Pleasanton, Texas.  Also replaced through the assistance of Commissioners Court was fomer Maverick County Auditor Fidencio Ortiz with the newly appointed Maverick County Auditor Sandra Watkins by a District Judges Committee.

Commissioners Court will go into Executive Session to consult with legal counsel concerning these two agenda items and will then return into Open Session to take possible action.

Agenda Item No. 5(1) calls for consultation with attorney regarding the proposal prepared and submitted by UMB as Trustee for the Bondholders of the Series 2007-A1 and Series 2007-A2 with possible action in Open Session.

Agenda Item No. 5(2) calls for consultation with attorney regarding the continued operation of the Maverick County Sheriff including but not limited to the Trust Indenture Agreement with UMB Bank and the Lease Agreement with Maverick County Public Facility Corporation.

Maverick County taxpayers may find out at this special meeting if Maverick County Commissioners Court under the leadership of County Judge David R. Saucedo were able to successfully negotiate an agreement with the Trustee and Bondholders regarding the payment of certain bond obligations and the continued operation of the Maverick County Detention Center by Sheriff Tom Schmerber.

In the event that an agreement is not reached with UMB Bank as Trustee for the almost $43 Million Bondholders of the Maverick County Detention Center, there is the possibility that the Trustee may foreclose on the deed of trust and/or the Indenture Agreement as well as terminate the lease agreement with the Maverick County Public Facility Corporation.  It is unknown what may be the financial consequences to Maverick County taxpayers and the 120 employees of the detention center in the event an agreement is not successfully negotiated with the Trustee and Bondholders.  Hopefully, Commissioners Court will advise the public at this meeting what, if any, are the financial consequencex to Maverick County taxpayers.

What is known is that Maverick County Commissioners Court approved the issuance of $2 Million Tax Anticipation Notes (Loan) last week to pay for an estimated budget deficit of over $1.5 Million for the months of July, August, and September of 2015 to cover the operation costs of the Maverick County Detention Center while using County General Funds to pay for the expensive operation costs of the detention center during the 2014 Fiscal Year Budget at the expense of public services such as street, road, and bridge maintenance in the County.

The special meeting is open to the public.