Wednesday, March 22, 2017

COUNTY OPTS TO CHANGE BANKS, LEAVES $300,000 ON TABLE

By Juan Montoya
Despite objections from Cameron County Commissioner David Garza that changing bank depositories would cost county coffers more than $300,000 a year, a majority of the court opted to go with Alonso Cantu's Lone Star National over committee-recommended BVVA-Compass.

The majority made up of County Judge Eddie Treviño and commissioners Sofia Benavides and Alex Dominguez voted to change the county long-standing relationship with BVVA-Compass and deposit approximately $120 million in Lone Star.

Commissioner David Garza spoke out against changing depositories and pointed out that the $76,000 that Lone Star guaranteed the county in interest was almost $300,000 less than the $393,000 BVVA's proposals paid under one scenario and the $453,000 paid in another.

'It's hard for me to leave $300,000 on the table," Garza said. "With $300,000 we could pave three miles of road or improve a park, or buy equipment for our sheriff or constables..."

Three banks submitted responses to the county's Request For Proposals. They were Wells, Fargo, BVVA-Compass and Lone Star. The evaluation committee made up of Auditor Martha Galarza, Treasurer David Betancourt, Tax Office manager Jesse Garcia, Asst. Administrator Xaxier Villarreal, Planning and Management Director Mark Yates, Anthony Lopez and Charles Hoskins.

Their evaluation favored BVVA-Compass  by more than 14 points (see graphic)
Treviño and Dominguez said that the BVVA's proposal had a fixed interest rate that would be disadvantageous to the county with interest rates almost certain to rise. The rising rates would make Lone Star's variable rate proposal almost certain to leave more dollars for the county, they said.

At that the BVVA-Compass representative rose to explain that their "bank managed" proposal was a variable rate.
"That's not what your proposal said," Treviño responded.

Dominguez later said that while Lone Star's interest rate was tied to the interest paid by U.S. Treasury notes, BVVA-Compass' rates would be up to the bank manager.
In the end, the commissioners directed county staff to negotiate with Lone Star to lower its service fees and increase its annual payments.

"If they cannot agree on favorable terms, we are not bound by the selection and we could return to BVVA," Dominguez said. He said that he thought the evaluation committee gave too much weight to some of the some parameters and less to others. The interest-earning potential, for example, was only given 5 percent of the score.

Treviño said that part of his rationale was that although BVVA-Compass and Wells Fargo have branches in Cameron County, they are not local banks, while Lone Star is a local bank.

Lone Star first came on the scene during the Gilbert Hinojosa administration and owner Alonso Cantu is a Democratic Party heavyweight known for his fundraising for the national party. He is seen as a bosom buddy of the county judge who is now the chairman of the Texas Democratic Party. Treviño once shared law offices with Hinojosa.

"Gilbert is back," said a longtime county observer.

16 comments:

Anonymous said...

It is politics! Trevino and Dominguez see good relations for political gain with the Cantu Lone State Bank that will serve their purpose. Taxpayers will lose money to pave roads and fix parks, but Trevino and Dominguez will get good donations.

Anonymous said...

Smells fishy!!!

Anonymous said...

It's a known fact that local entities are more likely to offer bribes give kickbacks and negotiate under the table to gain contracts than bigger corporations. BBVA is N international brand. Obviously lone star was picked for personal reasons. Shameless crooks majority voters.

cantinflas said...

juanito its the same here in Cameron or hidalgo or Willacy counties, its about the bribes or as they say in the barrio "el moche" ados

Anonymous said...

That evaluation committee is made up of the best employees in the county (except Betancourt) I trust their decision.

Anonymous said...

In that case - go with IBC since they actually have a Cameron County Charter!!! It would only be coherent to go with IBC based on a "local bank" agruement.

Anonymous said...

This is why we need people like Carlos Cascos. Not corrupt demorats .

Anonymous said...

Anonymous at 10:19. You win the "joke of the day "with your comment . Cascos is scum and everyone knows it.

Anonymous said...

IBC is kept afloat by drug money

Anonymous said...

Hey idiot, who cares what you think what anyone is, where does that justify voting to leave 300k of taxpayer money on the table. The evaluation committee appointed by the commission to evaluate proposals wasted their time. This was a simple under the table deal. Based on the evaluations compass had the better scores and should have been awarded the contract. This smells.

Anonymous said...

Leaving $300,000 on the table really makes this look like a political move.....and looks like the bidder with the most to offer the county was passed over for politics. Does the county make decisions on bids like this for all contracts???? If so, the citizens lose and will lose out to the political interests of the Commissioners and the County Judge. Bad start Eddie!!!

Anonymous said...

Pinche David Garza never supports the Sheriff or Constables!!!! Now he wants to buy them equipment with the #300,000, Puro Pinche Pedo stupid David!!!! I'm glad your son Cascos is gone and you don't have the votes stupid shit head!!

Anonymous said...

No objections to that, but to imply that Cascos isn't "corrupt ",well,you're the idiot.

Anonymous said...

It did not take long for Eddie Trevino to show his true colors. Another corrupt act while pretending to be doing us a favor. Rata!

Anonymous said...

Hinojosa is pulling Trevino along by the pubes. Kickbacks all around. Business as usual.

Anonymous said...

... and Lone Star paid a one million dollar federal fine due to deficient anti-money laundering procedures...

rita