Friday, January 20, 2012

HERALD HIDES $42 MILLION IN COST OVERRUNS BY UTB'S GARCIA ET. AL

By Juan Montoya
If one were to believe the Brownsville Herald's coverage of the Spire Consulting Group's review and analysis of the construction management process of TSC's $68 million bond issue, we would be left with the impression that – except for a few piddly overruns here and there – the Juliet Garcia administration did a crack job in administering the projects.
But let's not mince words.
The report on the management review you read in the local daily was a whitewash for a piss-poor performance by Juliet and her crew over at the Harvard by the Rio Grande.
The Garcia administration initially wanted an election for a $100 million bond and was rejected. The voters  of the district eventually approved $68 million in November 2004.
As of November 2009 – a final report has not been turned in by UTB so it could be worse – the bond projects were over budget by a total of $41,855,122.
And despite the anguished lamentation of trustees David Oliveira and Robert Robles that the Garcia administration "leveraged" funds to increase the cost of the projects from $68 million to $109,855,122, the sad reality behind the smoke and mirrors worthy of the Wizard of Oz is that in the end, all that UTB contributed to that final sum was a paltry $4,426,000. The rest, in one way or another, will come from higher costs to students and the residents of the district in the form of one sort of bond (read debt) or another.
The Herald does its readers (and college district taxpayers) a huge disservice by mouthing the excuses of the Garcia apologists when they repeat their lies and half truths. Below, for your own assessment, dear reader, is a list of the facilities and costs estimates promised the voters when they passed the bond issue and the cost of the projects as of November 2009.
(Remember, these costs will probably be higher when the final report is given the TSC board by the Garcia administration.) 

Arts center: Original bond allocation: $8 million, Cost as of November 2009: $26,067,957

REK Center: Original bond allocation: $8 million, Cost as of November 2009: $29,877,751

Classrooms: Original bond allocation: $12 million, Cost as of November 2009: $10,864,710

Library-Remodel: Original bond allocation: $2 million, Cost as of November 2009: $3,100,000

Library-New: Original Bond allocation: $12 million, Cost as of November 2009: $14,521,293

Early Childhood Center: Original bond allocation: $ 4 million, Cost as of Nov. 2009: $5,196,585

ITECC: Original bond allocation: $17 million, Cost as of November 2009: $18,858,669

Add in project management fees of $383,000 and cost of insurance and arbitrage at $985,157 and the promised cost of $68 million has now reached $109,865,122.

In order to meet the increased budget, additional funding was secured from various sources. These changes and transfers were presented by the Garcia administration to the TSC board in bits and pieces without allowing them to see the whole picture. If they had, they probably would have gladly spent the $38,000 it cost the current TSC board to get a handle on this runaway train before it even left the station.
The Garcia administration juggled funds from here to there and used them for:

* Arts Center (orig. $8 million): $19.575 from bond issue, $762,457 from interest earnings on bonds, $485, from UT HEAF funds, $1 milion from TSC fund balance, $2,189,090 from TSC fund balance, $1.7 million from donations, and $356, from TSC debt refinancing.

*REK Center (orig. $8 million): $13 million from bond issue, $13,500,000 from REK student fees revenue bond (loan), $2.453,862 from interest earning on the bonds, $106,830 from UT HEAF, $228,889 from TSC fund balance, $300,000 from TSC fund balance, and $121,000 from TSC debt refinancing.

*Classrooms (orig. $12 million): $9,482,875 from bond issue, $140,000 from interest on bonds, $950,000 from UTB tuition revenue bonds (loan), $291, 835 from UTB HEAF

* Library-Remodel (orig. $2 million): $2 million from bond issue, $1,100,000 from interest earnings on bonds

*Library-new (orig.$12 million): $11,546,955 from bond issue, $125,000 from interest earnings on bonds, $950,000 from UTB tuition revenue bonds (loan), $1,473,335 from UTB HEAF, $428,033 from TSC debt refinancing

* Early Childhood Center (orig. $4 million): $4,736,000 from bond issue, $231,000 from earnings on bonds, $229,000 from UTB HEAF

* ITECC (orig. $17 million): $7,500,000 from bond issue, $528,669 from interest earnings on bonds, $1,250,000 EDA grant, $9,196,410 from TSC maintenance notes (loans), $383,590 from TSC debt refinancing

So there you have it. Not only did the Juliet Garcia administration not do as she promised the voters when the bonds were passed, but it also tapped into the pockets of students and the college district to complete the grandiose projects and fatten the purses of her contractor friends. 
"UTB-TSC does not appear to have a single source of information related to how the program budget, cost, contingencies and schedule data was changing over time," the report states.
"UTB-TSC has not received a final report from its project management contractor."
TSC chairman Kiko Rendon said the recommendations in the report will chart the future of the community college in future management of construction so that these obscene cost overruns will never happen again.
"Many years from now when I'm gone, I don't want the community college to be indebted by such poor management of construction projects like happened here," he said. "The $38,000 we paid for this report will pay for itself many times over if it stops this type of oversight performance from future administrations."      

15 comments:

Anonymous said...

(*REK Center (orig. $8 million): $13 million from bond issue, $13,500,000 from REK student fees revenue bond (loan), $2.453,862 from interest earning on the bonds, $106,830 from UT HEAF, $228,889 from TSC fund balance, $300,000 from TSC fund balance, and $121,000 from TSC debt refinancing.)

You are fucking up Juan. You can't inflate the numbers saying $8 million to $29 million when half of the cost of the building was coming from students and not the voter approved bonds. You know this fucker. The voters knew they were covering half. You have been hanging around Adela too long.

Anonymous said...

Let's be realistic. The blame lays between both groups. Nobody is that stupid. This sounds like a housewife that feigns ignorance on her husband's income as he buys her new boobs. Now that the truth has come to light, shes divorced and on the prowl and the husband is being blamed for everything.

The costs for the art center are the most flagrant disrespect to the overburdened taxpayers yet. The plutocrats who love their overpriced designers needed a place to wear these ridiculous things. I heard Charles Stillman bought 50 high priced tickets for passersby in that last event the Arts Center conducted. What luverly charity from the only people that actually appreciate that money pit on a swamp.

No heroes in utb or tsc.

Anonymous said...

Not sure the students knew they would bear such a giant part of the financing of the REK Center or any other facility. Juliet "leveraged" the taxpayers and students to pay for most of "projects". She built a library that is too small for the university holdings; an Arts Center that has very little storage (for instruments, etc) and has no parking. Juliet has bartered the TSC taxes and student "contributions" as leverage to UT System. When UT System was in debt to TSC...Juliet took sides with TSC and attempted to "give" all TSC assets to UT System and "forgive" the UT debt. Juliet has become yet another victim of the Kardenas Klan greed.

Anonymous said...

Obviously one "friend" of Juliet proves by his/her venacular that he/she never graduated from UTB or any university. Based on the crude and forceful words....a man. No recommendations for improvement....just another form of ignorant yelling.

Anonymous said...

Why should be expect more from the Herald. Today's media (and unfortunatley the Herald qualifies, but at the bottom of the pile) is very much similiar to the media presented to us by William Safire in his historical novel "Scandlemongers"...which describes the press early in this nation's history as "for sale" to the highest bidder. Our media has never been a public service....it is a "for profit" business and the news that goes in must be paid for. We can't expect the Herald to report against UTB or Juliet Garcia....because UTB (Letty Fernandez) and Juliet Garcia are almost like part of the Herald staff...preparing and offering stories that the staff at the Herald doesn't have to work for. The Herald is "political" and it is a "mudslinging" side-kick to those that pay. Already the Herald is shifting its operations....notice when you get your receipt for paying your subscription...it comes from The Monitor. More and more valley-wide advertisements and even obituaries and encased in what has become Freedom Newspapers version of "The Bargain Book". Now we see that the Herald Publisher is also going to be the publisher at the Harlingen contribution to non-journalism in the Freedom organization. We should expect little from the Brownsville Herald and the Freedom Newspapers. bisma

Anonymous said...

This shit is criminal!

Everyone knows that politicians love to build new buildings for the sake of giving out construction contracts for all the potential goodies that may come from vendors.

When the bond issue was passed, it was passed by the use of the extensive use of marketing and politiqueras paid for by "friends of the college." Who were these friends of the college? Were they board members? Were they college administrators? Were they contractors? Was it Julieta?

Follow the money and you'll find where all those overages went also!

Anonymous said...

@January 20, 2012 2:47 PM

Your credibility suffers when addressing others as "fucker".

Anonymous said...

JULIETA MIERDA GARCIA RANKS UP THERE AS THE WORST COLLEGE PRESIDENT IN AMERICA RIGHT ALONG SIDE WITH THE WORST FIRST FOOD STAMP CLOSET GAY PRESIDENT b HUSSEIN(A TERRORIST NAME) ovomit!!!!!!!!!
Oh btw aren't they both friends not surprise why they're failures!!!!!!!!!!

Anonymous said...

Thank God our Taxing District has at last got this corrupt and inept administration off our collective backs. With an elite crew headed by the likes of Wayne Moore what did anyone really expect here? Free at last, free at last, thank God Almighty, we're free at last!

Anonymous said...

If I'm not mistaken all of this things had to be approved by the TSC board. All of this building belong to TSC.

Anonymous said...

All this demonstrates the ego of Juliet Garcia...that she, not the community would "rule" and decide what was/is best for Brownsville. Hopefully the community will wake up and see how they have been manipulated and "screwed" by Juliet and her "Committee".

Anonymous said...

Julieta told you guys she needed a 100 million from the get go! Who's the dummy?

Anonymous said...

Rats nothing but RATS here arrest then all and hang them all

Anonymous said...

the tsc baord and julieta should be prosecuted period bola de rata,, wonder who was the contractor on all these projects? hum????????

Anonymous said...

What was Rene Torres doing when all this was going on. He voted in favor of the Arts center overruns. I understand that Adela Garza was the only trustee who voted against it. That is why I am voting for her for Congress!

rita