Wednesday, January 25, 2012

LOOKING AT THE $42 MILLION IN JULIET'S COST OVERRUNS AND CONSEQUENCES

By Juan Montoya
Let's put all sentimentality and partisanship aside and look at the facts surrounding the $42 million in cost overruns on the $68 million bond issue approved by Texas Southmost College in November 2004.
The Juliet Garcia administration initially wanted an election for a $100 million bond and was rejected. The voters of the district eventually approved $68 million.
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, with costs up to then standing at $109,855,122.
That much is indisputable.
So what are we to deduce from that? How about this:
Juliet and her cadre of PhD overpaid underachievers decided to thumb their noses at the residents of the district and go ahead with their original plans anyway. That much is confirmed by the findings of the Spire Group hired to do a managerial effectiveness audit of the bond construction that indicates that even after the $100 million was turned down, the plans remained the same for the construction of the projects. In other words, there was never a downsizing (to use a popular term), or a reduction in scope on the projects.
The group's inadequacy in managing an undertaking this size was demonstrated time and again when they placed all their trust in the paid project manager, didn't place procedures to insure that the payments claimed by vendors were legitimate and within the each contract's parameters, and then placed incompetent personnel to keep an eye on the construction process.
And when they finally placed a quality control-quality assurance officer, it was until 2008, three years after the initial construction started. As if this wasn't bad enough, the person they placed was a favorite of Wayne Moore, a sycophant of President Garcia, who rewarded his secretary Veronica Mendez with the position of vice-president for Planning and Construction, to whom the Project Manager reported.
Mendez was formerly Moore's secretary. Mendez's qualifications for the overseeing of the multi-million dollar projects appears to have been her holding a Bachelor of Arts degree in Applied Sciences and her close relationship and loyalty to her boss.
As his secretary, Mendez had a close knowledge of the goings-on at the "community university" and Moore could count on her undying loyalty to carry out his plans. When they went awry, TSC finance office employee Melba Sanchez, sensing something was not right, didn't play along and the screws were tightened to hasten her departure.
Sanchez is no longer with TSC and, conveniently, neither is Mendez.
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.
Now, as the TSC trustees struggle to place the community college on a firm financial footing preparing for the final separation from UTB in 2015, they are finding out that the raid by Garcia and her voracious cadre on the assets of the community college are hamstringing their efforts.
"It's going to make things more difficult for us," said a board member. "We could have used the millions that were diverted to these construction projects to start the process of lowering tuition costs and fees for students. Instead, now we're trying to find funds to allow TSC to become an autonomous institution like before."
The proof, as they say, is in the pudding. When confronted with the voter-approved $68 million for their pet  projects that totaled over $100 million, Garcia and her minions – without the approval of anyone – took it upon themselves to shuffle money (mostly TSC's) to cover the increases (overruns).

Take a gander below:

* Arts Center (orig. $8 million): $19.575 from bond issue, $762,457 from interest earnings on TSC bonds, $485, from UT HEAF funds, $1 million from TSC budget, $2,189,090 from TSC fund balance, $1.7 million from donations, and $356, 000 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 TSC 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 TSC bond issue, $140,000 from interest on TSC bonds, $950,000 from UTB tuition revenue bonds (loan), $291, 835 from UTB HEAF

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

*Library-new (orig.$12 million): $11,546,955 from TSC bond issue, $125,000 from interest earnings on TSC 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 TSC bond issue, $231,000 from earnings on TSC bonds, $229,000 from UTB HEAF

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

9 comments:

Anonymous said...

This whole thing smells of the Kardenas Klan. Juliet used Mary Rose Kardenas to knock down doors and in the end, Juliet found herself behind one of those knocked-in doors. But, Juliet willingly placed herself in jeopardy and willingly blew smoke up the public butt for years. Behind that smoke cloud...she and her minions (Wayne "Leprechan" Moore, Michael Putegnant, Hilda Silva, etc...) "tricked" the local cummunity into believing their lies. Juliet accepted accolade after accolade while she had the wool pulled over the public eye. She ingratiated herself to the UT System at the expense of local taxpayers. Her ability to access and use tax dollars with impunity demonstrates the dark side of local politics. BND has the power to tax and they seem to be happy using the taxpayers dollars for pay increases and "trickeration", rather than benefiting the community. All of these taxing entities require oversight, but in an area where about 50% of the population is "challenged" by illiteracy..the door is open for the Kardenas Klan policy to screw the people to be effected. Shame on Juliet and her "committee".

Anonymous said...

I do not see how Juliet Garcia and his staff has the credibility to lead UTB into a stand along future.

If the UT System wants to gain the confidence of the community, they need to clean house starting at the top.

If they did clean house, I would think there would be some way for the two schools to come to some sort of agreement, far less Draconian that what we are looking at now.

El Pinche Grigo

Anonymous said...

always a bunch of mamones with opm-other proples money not theirs

Anonymous said...

That train long ago left the station, and thank God it did!

Anonymous said...

so when will this witch julieta hang for misappropriating public funds? or she wont, ah we dont have a da with huevos right?

Anonymous said...

On Sunday, Feb. 5, the Empire Strikes Back, putting administrative platitudes against public records. Will the community fall for it yet again. Stay tuned . . . . .

Anonymous said...

saw the newpaper article today and it says that they (julita and gand) did not do anything illegal, all these things were approved by the tsc board, off with their heads, oh and the original bond money was ussed as LEVERAGE so the taxpayers WON and NOT LOST.

Anonymous said...

What a Crock of Shit this julita and her Gang thinks the average brownsville folk is stupid and doesnt know any better

Anonymous said...

Of course they were approved by the Board, just not this one dumbass.

rita