The Odessa City Council voted 5-2 Tuesday night to approve a budget amendment that will allow them to pay $338,000 to a consulting firm hired by Mayor Javier Joven in what one council member says is a violation of the city’s charter.
“The contract the mayor signed violated the city charter and ordinances,” District 2 Council member Steve Thompson said after the meeting. “That contract should have been presented to the council and was not and it still hasn’t been. I got my copy a week ago Monday only after I requested it.”
According to the contract, T2 will “provide professional services for the benefit of the interim city manager, including advising and consulting, organizational analysis and training on leadership transition management.”
The contract states T2 will provide Interim City Manager Agapito Bernal training in “leadership processes and tools,” “recruitment and selection” and “group development and engagement.” It doesn’t specify what jobs fall under recruitment and selection.
City charter
Under Article 1-4 of the City Charter, “all ordinances, resolutions and contract documents shall, before presentation to the council, have been reviewed as to form and legality by the city attorney or the city attorney’s authorized representative, and shall have been examined and reviewed for administration by the city manager or the city manager’s authorized representative.”
In addition, under City Charter, Section 30, city council approval of contracts must occur under certain circumstances, one being “contracts requiring the appropriation of funds.”
Joven signed the contract with T2 Dec. 14, the day after City Manager Michael Marrero and City Attorney Natasha Brooks were terminated and Bernal and Interim City Attorney Dan Jones were appointed.
Bernal did not sign it and Jones initialed it on Dec. 16, two days after T2 received a $50,000 initial payment.
District 2 City council member Steve Thompson and District 3 council member Gilbert Vasquez voted against the budget amendment.
Thompson questioned the legality of the contract last week since it was signed before the entire council got to see it or vet the vendor. He accused the mayor of trying to change the council from a strong manager/weak mayor form of government to a strong mayor form of government, an allegation the mayor denied.
On Tuesday, Thompson questioned where the money was going to come from.
Bernal said there were a couple of areas they could look at, including contingency funds. He also said, “we also have funds available that we have set aside.”
Bernal and Director of Finance Larry Fry said they did not know how much were in either fund.
Vasquez questioned why a consulting firm would be hired to assist Bernal and pointed out the contract doesn’t say anything about searching for a new city manager.
The mayor said last week that when they voted to terminate and replace Brooks and Marrero, they voted to take “any and all” actions necessary and so he had the authority to sign the contract.
The “any and all” language was included when the council voted to terminate and replace Brooks and Marrero for a second time on Monday morning. The meeting was scheduled after their Dec. 13 vote was voided by an Ector County District Court judge, who is presiding over a civil lawsuit filed by attorney Gaven Norris over the Dec. 13 meeting. Norris alleges Joven violated the rights of citizens by not allowing them to speak on the terminations prior to the vote.
The judge later rescinded the temporary restraining order he imposed on the council after the council scheduled Monday’s meeting.
Timing of contract
During a press conference held after Tuesday’s meeting, Joven was asked about the provisions in the city charter pertaining to contracts, processes and signatures.
“I would have to read that part of the chapter. I cannot answer what I don’t know,” Joven said.
Joven was also asked about the timing of the contract given that it was signed less than 24 hours after Marrero and Brooks were terminated.
Joven said he met Mike Wilson of T2 during a Texas Municipal League gathering two years ago and Wilson explained to him what his company does.
The mayor said he then “took it upon himself to go out and ask my colleagues throughout Texas about their services and their satisfaction” in October.
When asked if he vetted T2 before or after the council evaluated Brooks and Marrero last October, Joven said, “Me speaking with Mike Wilson has nothing to do with the actions of what happened in that executive session and in the evaluations of the former city manager and city attorney.”
His initial conversations with Wilson revolved around problems with a Bluetooth meter reading service, Joven said.
“When all of this winded up happening Dec. 13, this is where I felt that this is probably the company the best to help us through this transition, to be able to do a deep dive analysis of the entire city and to provide training for myriad departments and employees and things of that nature. It’s pretty extensive,” Joven said.
Joven said T2 has more than 125 years of combined experience in municipalities and law enforcement and Fortune 500 companies.
The mayor said the city was not required to go out for bid on the contract and insisted that despite the rumors being spread T2 will assist in the search for a new city manager in addition to evaluating the entire organization and determining if the right people are in the right positions and if they require additional training.
Money questions
The mayor expressed his displeasure people are complaining about the $338,000 when they haven’t raised any eyebrows over other expenditures he finds questionable. He cited the Faudree Road construction project as an example.
In August, council voted 4-2 to spend $36 million to widen Faudree Road from a two-lane road to an urban five-lane road from State Highway 191 to Yukon Road. The project was originally expected to cost $20 million, but Utilities Director Tom Kerr told the council it ballooned to $31.5 million because of skyrocketing construction costs. The additional $4.5 million was set aside for contingencies.
Joven said he still hasn’t gotten any answers from city staff as to how the city can pay for the project. Nor has he been told how much the city has in contingency funds despite the fact he’s asked staff repeatedly, he said. He also has questions about American Rescue Plan Act expenditures and where $810,000 in game room money has gone.
The mayor also said the T2 contract is open-ended, the price tag is up to $338,000 and can be terminated with 30 days notice. However, the contract itself does not give the length of the contract, nor does it place a limit on the contract amount. Instead it states, “City shall pay professional for services actually performed, a monthly set fee of $24,000 for an annual base professional fee of $288,000. Payment one is due at the time of the execution of this agreement shall be a fee of $50,000.”
Bullying allegations
Tuesday’s meeting started out with Odessa resident Dallas Kennedy asking for an external investigation into how the council treats its employees reminding them Director of Downtown Odessa Casey Hallmark accused District 5 council member Chris Hanie at the Dec. 13 meeting of screaming at her during the Parade of Lights event.
Hanie then went on to object to the meeting minutes of Dec. 13.
“I was accused of being a bully, intimidating and screamed by a young lady and I would like it to be known right here I don’t yell,” Hanie said. “I don’t have anybody to yell at. I don’t have any reason to yell.”
Hanie said he simply objected to being addressed as a council person on a bulletin when he prefers to be addressed as a councilman. That, he said, is not bullying, it’s merely making a clear statement.
Joven told Hanie the comments were a matter of record, but he would note for the record Hanie questioned the validity of the statements.
Hallmark later took the opportunity to speak on the matter, prefacing her comments by stating Hanie did not take her up on her offer to meet privately following the Dec. 13 meeting. She said she had hoped to clear the air and move forward with all council members, but Thompson was the only one who took her up on her offer.
In her version of the event, Hallmark said Hanie told her “I am not a (expletive) council person. I am a (expletive) council man and I will be referred to as such,” Hallmark said.
Hallmark said she enjoys her job at the city and wants to keep it, but “I’m not going to be painted as a liar and I will always, without question, stand up for myself. I again stand by what I said. I’ve been bullied by you Mr. Mayor. I’ve been bullied by your Mr. Matta and I’ve been bullied by you Ms. Swanner. I’ve been intimidated. I’ve been pushed around and I’m done.”
Council member Greg Connell compared the situation to something that would happen in first grade and urged Hallmark and Hanie to continue on with the work of the city, to which Hallmark responded, “Yeah, 100%. Yeah, we’re all adults.”
Jones, the interim city attorney, told Hallmark a human resource investigation has been launched and the law firm of Davidson Sheen would be sending out letters to meet with her and members of the council.
During the executive session of the council meeting, council members were scheduled to discuss Norris’ lawsuit against the city and to “discuss personnel matters…with the interim city attorney and attorneys hired by the City of Odessa to conduct investigations to hear complaints or charges against employees.”
No action was taken after they came out of executive session and Joven declined to comment on the investigations during his press conference, citing the fact the discussions took place in executive session.
Outside lawyers
According to documents released Wednesday morning under the Texas Public Information Act, Davidson Sheen’s billing rate is $375 an hour and the associate attorney rate ranges from $195-$250 an hour.
Documents indicate Davidson Sheen was also hired to investigate hazing allegations within Odessa Fire Rescue at the same rates.
Former OFR Chief John Alvarez, whose retired earlier this month, said he couldn’t go into details, but confirmed several OFR cadets received minor injuries and an investigation was launched.
“The only thing I can say to you is that we did a thorough investigation of the incident that took place with the cadets…We interviewed all parties involved, basically, and we went through the process,” Alvarez said. “I can tell you during the whole process we involved HR and legal and so discipline was issued to those that were involved, that were responsible and we closed that situation out.”
In other matters, the council voted 7-0 to use $3.1 million in ARPA funds for public safety raises, with Thompson making it clear he is in favor of the raises, but isn’t entirely sure it is an appropriate use of the funding.
