By Juan Montoya
Someone sold a bill of goods to our pal Jerry McHale in hopes of casting suspicion on the selection process used to pick the new CEO of the Grater Brownsville Corporation.
Someone sold a bill of goods to our pal Jerry McHale in hopes of casting suspicion on the selection process used to pick the new CEO of the Grater Brownsville Corporation.
And all indications is that it's the remnants of Brownsville's "Old Guard" who did not get their way in hand-picking who they wanted.
Our pal over at The McHale Report was given a copy of the contract dated June 24th signed by GBIC chair Cesar De Leon and Toyota Corp. executive Mario Losoya. Then, on June 26th, a divided GBIC board voted 3-2 to accept the contract that had been negotiated between De Leon and Losoya.
Those voting in favor of the negotiated contract were chair De Leon, Cameron County Treasurer David Betancourt and city commission Jessica Tetreau. Those voting against approving the contract were Nurith Galonsky and John Cowen.
Losoya had emerged as the leading candidate recommended by headhunter Jorgenson Consulting, a nationally-recognized executive search firm serving organizations in non-profit, economic an governmental entities. The company boasts of their more than 25 years' of experience in searching for talent.
At first blush, the signing of the contract by De Leon and Losoya June 24 when the vote to approve it was June 26 may seem a bit suspicious.
But it is the classic case of a purloined meeting that solves this mystery.
You see, the board had voted unanimously June 21 – after coming out of executive session with the board attorneys dealing with the personnel matter of the CEO selection – to proceed with with the attorney's recommendations and make the offer to Losoya and have De Leon negotiate the specifics.
Board member John Cowen did not attend that meeting.
It was only after the contract had been negotiated and signed by both men that the board again met on June 26 and took a vote on whether to accept the contract under the terms negotiated between De Leon and Losoya. The GBIC contract with Losoya pays him $220,000 his inaugural year and a subsequent $250,000 salary the following years with an annual $30,000 performance bonus. He is currently making around $200,000 with Toyota. The bonus is due him if he meets the GBIC's benchmarks.
This is where members Golonsky and Cowen voted against the terms listed on the contract and the majority for. The vote would not have been against Losoya, but rather against the specific salary terms negotiated. Now, Nurith Galonsky is a member of the Brownsville Public Utility Board. Why hasn't she been as thrifty and fiscally conservative there?
Between 2013 to 2017, General Manager and CEO John Bruciak's salary increased by 109,169 from $184,059 to $294,028. The latest bump for the sage and prescient manager and CEO was a $59,009 raise from 2016's $235,019 to a 2017 salary of $294,028. (See graphic, click to enlarge.)
Think about it, these three men at the top – Bruciak, Fernando Saenz and Leoanrdo Garcia – received raises of more than $100,000 each over three years equaling six and one half times the average annual income of Brownsville households, the very households that are being gouged by the higher electric rates for the non-existing Tenaska electric plant.
With more than $100 million in extra cash laying around the PUB coffers because of the increase in rates to pay for the plant, why isn't there a hue and cry to address that injustice?
But the fact that Losoya's GBIC contract was dated June 24 and the meeting to accept the negotiated contract June 26 was too tempting in some quarters to cast suspicion on the selection process and aspersions on the board members.
It was actually a pretty slick maneuver on whoever tried to pull the wool over Jerry's eyes, and it worked for a half a day. But the truth will out eventually over deception and this deception lasted for the better part of six hours.
Better luck next time.
You see, the board had voted unanimously June 21 – after coming out of executive session with the board attorneys dealing with the personnel matter of the CEO selection – to proceed with with the attorney's recommendations and make the offer to Losoya and have De Leon negotiate the specifics.
Board member John Cowen did not attend that meeting.
It was only after the contract had been negotiated and signed by both men that the board again met on June 26 and took a vote on whether to accept the contract under the terms negotiated between De Leon and Losoya. The GBIC contract with Losoya pays him $220,000 his inaugural year and a subsequent $250,000 salary the following years with an annual $30,000 performance bonus. He is currently making around $200,000 with Toyota. The bonus is due him if he meets the GBIC's benchmarks.
This is where members Golonsky and Cowen voted against the terms listed on the contract and the majority for. The vote would not have been against Losoya, but rather against the specific salary terms negotiated. Now, Nurith Galonsky is a member of the Brownsville Public Utility Board. Why hasn't she been as thrifty and fiscally conservative there?
Between 2013 to 2017, General Manager and CEO John Bruciak's salary increased by 109,169 from $184,059 to $294,028. The latest bump for the sage and prescient manager and CEO was a $59,009 raise from 2016's $235,019 to a 2017 salary of $294,028. (See graphic, click to enlarge.)
Think about it, these three men at the top – Bruciak, Fernando Saenz and Leoanrdo Garcia – received raises of more than $100,000 each over three years equaling six and one half times the average annual income of Brownsville households, the very households that are being gouged by the higher electric rates for the non-existing Tenaska electric plant.
With more than $100 million in extra cash laying around the PUB coffers because of the increase in rates to pay for the plant, why isn't there a hue and cry to address that injustice?
But the fact that Losoya's GBIC contract was dated June 24 and the meeting to accept the negotiated contract June 26 was too tempting in some quarters to cast suspicion on the selection process and aspersions on the board members.
It was actually a pretty slick maneuver on whoever tried to pull the wool over Jerry's eyes, and it worked for a half a day. But the truth will out eventually over deception and this deception lasted for the better part of six hours.
Better luck next time.
11 comments:
This makes sense now
Thanks Juan—-
You know what doesn’t make sense?
2.3 million for any building down town-
The "slick maneuver" of which you speak "pulled the wool'" over the eye" of the citizens of Brownsville, not Jerry.
The bottom line is that Tetreau, De Leon and Betancourt decided, as part of a secret "walking" quorum, to hire Losoya for $220k/year, with benefits they had no authority to include, at a salary just below the level of the City Manager of the City of Brownsville ($225k/year and budget of over $100M), the Director of PUB ($295K/year and budget of over $200M) and Superintendent of BISD ($200K+ and a budget of over $500M).
This is outrageous, even more so, since you, De Leon, Tetreau, and Betancourt are all Marin/Hernandez puppets.
Remember, the revenue stream of GBIC is only $5M/year.
How do we know these deliberations were illegal?
6/21 meeting: De Leon was authorized to "make an offer to Losoya and have De Leon negotiate the specifics."
"You see, the board had voted unanimously June 21 – after coming out of executive session with the board attorneys dealing with the personnel matter of the CEO selection – to proceed with with the attorney's recommendations and make the offer to Losoya and have De Leon negotiate the specifics."
So, De Leon was only authorized to make an offer and negotiate, right?
6/24 contract: This is a fully executed employment contract, accepted by Losoya, which was already binding on the GBIC. Does it say anything about having to be approved by the GBIC board?
As you state it, De Leon was only authorized to offer a job and negotiate the terms ... not enter into a binding contract that was, later, to be ratified by the board. This is illegal. It is the result of a secret deliberation, known as a "walking quorum."
6/24 meeting:
"It was only after the contract had been negotiated and signed by both men that the board again met on June 26 and took a vote on whether to accept the contract under the terms negotiated between De Leon and Losoya."
"Took a vote on whether to accept the contract." What if the board had voted against the contract. For example, if Betancourt had come to his senses about the outrageous salary. Would Losoya have legal grounds to enforce a fully executed contract. It is ridiculous say there was a legal deliberation at the 6/24 meeting, because De Leon had already legally bound the GBIC to the contract, unless, De Leon acted without authority to bind the GBIC.
This vote was a ratification of De Leon's actions, but the TOMA doesn't allow for this type of ratification, because it is shows that the result had already been decided on, prior to the actual vote. They should have voted on the selection and terms, then executed the employment contract.
6/27 Herald article:
Losoya knew this, and this is why he claims, as quoted in the Herald, that he had not "accepted" the contract. A bald-faced lie.
The TOMA is meant to provide transparency in governmental actions. Where in all of this were the citizens apprised of the terms of the employment contract, secretly entered into by De Leon, so that opinions about the outrageous salary could be voiced.
You claim the board voted "in favor of the negotiated contract." However, it was a fully executed contract that they had a prior agreement to ratify at the 6/27 meeting. This is illegal.
"Those voting in favor of the negotiated contract were chair De Leon, Cameron County Treasurer David Betancourt and city commission Jessica Tetreau. Those voting against approving the contract were Nurith Galonsky and John Cowen."
Cowen and Galonsky should be applauded for standing up against this type of corruption. This is exactly how people like Carlos Marin and Mike Hernandez manipulate our gullible politicians and abuse the citizens of Brownsville.
I believe jerry!
This smells of Martinez trying to get rid of Hilts, with no combacks. Martinez is up to his neck in corruption.
Lasoya is all ready a GBIC yes man, Jason Hilts is going to jail, and so is his Columbian sex slave.
Galonsky should be applauded for selling. A building for over 2 million -... you are ok with that blogger?(7:35 am)
Corruption in the BEDC and GBIC for over 25 years, Hilts was the organization behind the TITAN scam. Now there is bigger scams about, like fictional companies in the Amigo land mall scam. And a host of other scams that involve GBIC, this will cost GBIC a $1million to get Hilts to leave.
the contract for Losoya that the attorney for GBIC recommended Deleon to offer to Losoya was drawn up by the GBIC attorney, luis Hernandez, who it is claimed and said, is a cousin of Mike Hernandez. Who is really running the show a GBIC --- Mike Hernandez?
juan a $$$ million here and a $$$ Million there so what all of these leaders know what is better for the community-NOT. Hilt was and is a scam artist plain and simple, hope he gets arrested and goes to jail or even just pay some high attorney fees to stay out of jail, ese dude es RATA- Grande, anyway Guess Brownsville almost-like George lopez says- almost got a Great city manager from McAllen Roy Rodriguez- guess not, he was offered more money to stay put in McAllen, now makes over $275K salary, papi, oh well back to the drawing board.
It is rumored that Hilts saw Martinez eating Black Magic in Columbia. There could be a lot of true in the rumor.
No wonder the City lawyer was moonlighting when you see what he was paid and what salary Hilts was paid plus credit card.
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