"VENDOR TAMPERING" IN BISD LETTER OF INTENT PROCESS?

2. Discussion and possible action regarding the process for considering the execution of the Letter of Intent for Public Private Partnership Opportunities for Development of Brownsville Independent School District Facilities and/or infrastructure; to include vendor tampering. (Board Member Request - SPA)

By Juan Montoya
She won't say why she had this item inserted into today's 's agenda of the Brownsville Independent School District pending conferring with legal advisers, but trustee Dr. Sylvia Atkinson says she will have plenty to say when the board meets this evening.

And since Atkinson was not one of the majority who voted to approve the district entering into talks to explore the participation of the BISD into a Public Private Partnership (P3) agreement to build a hotel and provide hospitality and culinary curriculum, it cannot be be a reconsideration of the vote on the issue.

However, the wording of the item hints at questioning the process whereby the administration recommended the district enter into discussion with Jacoma Corporation and a university everyone thinks is the UTRGV for a cooperative effort to make the project a reality.

The way the item is worded includes a mention of "vendor tampering," a thinly-veiled hint at potential criminal acts.

"I can't address that now,"' said Atkinson Monday. "I'm still waiting for further advice. But I'll tell you that others wanted to make it more specific and lay it specifically at the door of the superintendent."

Last year, the BISD approved  1.25 cent tax increase per $100 property tax valuation that it projects will generate about $24 million per year, which the district plans to use to leverage about $100 million in loans. All of the projects would be paid off in 10 years according to projections.

Noe Hinojosa of Dallas investment banking firm Estrada-Hinojosa, BISD’s longtime investment bankers, outlined the plan.

BISD chose to adjust its tax rate to accomplish the projects rather than seek voter approval for general obligation bonds, which officials said would obligate the district for many years to come and be more expensive. It also allowed the board to pass the increase without going to the voters for approval.

The hospitality-culinary project was not included in the Hinojosa-Estrada proposed debt encumbrance. Instead, its advocates say the P3 financing method permits non-traditional private funding to couple with public entities to build it.

The proposed LOI envisions the construction of a hotel to complement the instructional component and is first step toward potentially having the BISD, UTRGV and private investors (Jacoma) explore the idea of collaborating toward the establishment of that facility, estimated by some observers to come at at between $40 $50 million.

Everything was a go until the meeting when the administration was asked if BISD general counsel Baltazar Salazar had asked that the item be pulled. Salazar had pulled the item a month before saying that the discussion of economic development issues such as the P3 letter of intent could not be discussed in executive session.

When confronted with legal opinions by other attorneys that the board could indeed discuss such matters, Salazar let it be known that he would not permit it "por mis huevos."

When a majority (board president Cesar Lopez, Joe Rodriguez, Carlos Elizondo and Laura Perez-Reyes) voted to pass the LOI, P3 advocate (and local representative of Mike Hernandez's OP 10.33 representative) George Gavito questioned Salazar  as did board president Lopez.

"My recommendation (was to pull it) because there wasn't any detail and it doesn't fall within the guidelines...," he said, getting cutoff by Lopez who reminded him that his position a few hours earlier was to include it in the meeting.

"I'm a little surprised you say that," Lopez said. "When we reviewed it you were OK with it, then you do a complete 180 (degrees). This is strictly exploratory. We're not obligating the school district to anything."

When Salazar was trying to backpedal on his previous approval of the item, Gavito, who was in the audience, texted him the missive at right.

In turn, Salazar started forwarding the text far and wide insinuating he felt threatened by Gavito, a border lawman with connection to the criminal elements here.

We understand that a copy of the Gavito text was sent to other board trustees, the superintendent, and that it even got forwarded to Cameron County D.A. Luis V. Saenz, too.

Vendor tampering is a serious accusation and leaves it up to the public for interpretation and their perception. The legal definition includes fraud, tempering, and generally falls under check tampering, billing schemes, and bribery/extortion schemes. Atkinson made it clear that she was not accusing the Jacoma group of any illegal act, but was instead questioning the process used by the administration to prepare the proposal before ti got to the board for their approval.

District rules prohibit vendors from approaching individual board members to talk of any business between them and the district that will come before the board.

And the LOI in itself is not selling goods or services to the district. Did Salazar or any trustee feel coerced into approving the proposal? Atkinson would not say anything other than it was only a discussion (and possible action) into the "process" used to pass the LIO.

The devil, as Atkinson  hinted, will be in the details.