José Valdez, Sr., applies for old job at CAA; Rep. Raymond intercedes on Valdez 's behalf

By María Eugenia Guerra

Former Webb County Community Action Agency (WCCAA) director Jose A. Valdez, Sr., has reapplied for the WCCAA executive director's position he held for nearly 10 years. At the time of his resignation in March 1999 Valdez told the WCCAA board that he had been thinking of retiring and pursuing other interests.

However, according to sworn affidavits filed by then Webb County Judge Mercurio Martinez, Jr., County Attorney Homero Ramirez, and administrative assistant Carlos Villarreal -- affidavits filed as evidentiary documents in litigation between Valdez and ShuString Productions, Inc., the publisher of this newspaper -- Valdez was asked to resign after county officials met with Joseph Guerrero and Sam Guzman, program officer and deputy director of the Texas Department of Housing and Community Affairs (TDHCA), respectively, to discuss the findings of the TDHCA's September 1998 monitoring report of the WCCAA's Comprehensive Energy Assistance Program (CEAP).

In the course of those meetings, wrote former County Judge Mercurio Martinez in his affidavit, he learned of the disallowed costs Webb County would have to pay as well as a number of fiscal and operational concerns the TDHCA had with Valdez at the helm of the WCCAA. “Mr. Guzman informed us that certain documents that were officially signed by Mr. Valdez were altered. Due to circumstances with that documentation, the TDHCA was considering presenting the matter to a Travis County grand jury. I asked Mr. Guzman what effect this would have on the TDHCA funding for Webb County . He indicated that so long as the matter was pending and that as long as Valdez headed up the CAA, funding by his department of any projects in Webb County would be suspended. I indicated that that was unfair to the citizens of Webb County because the grant brought aid in seven figures to Webb County . Guzman indicated that so long as Valdez was in charge of the program the state office would have serious concerns about funding the program in Webb County . I suggested asking Mr. Valdez for his resignation. I asked Guzman if having Valdez resign from the CAA would alleviate his concerns. Guzman indicated that if Valdez resigned the TDHCA would continue to fund Webb County CEAP project in amounts that had been seven figures in past years.”

The affidavit of administrative assistant Carlos Villarreal, who was present at some of those meetings with TDHCA officials, echoes the substance of the exchanges between Judge Martinez and Guzman of the TDHCA.

According to the affidavit of County Attorney Ramirez, after meetings with Guerrero and Guzman of the TDHCA, “it became apparent to me that the TDHCA might need to forward some of the findings to the District Attorney for Travis County or possibly the office of the Texas Attorney General for assistance with consideration of prosecution of Mr. Valdez for actions detailed in the audit. Mr. Joseph Guerrero suggested that my referral of these findings to the District Attorney of Webb County, including the actions of Mr. Valdez to tamper with records would benefit the county's situation. Judge Martinez learned from the TDHCA that Webb County would lose the entire energy weatherization program if the Valdez issue was not dealt with. Judge Martinez asked Mr. Valdez to resign, and shortly thereafter, Valdez tendered his resignation to Webb County Judge Mercurio Martinez. I and others met with Webb County Commissioners and apprised them of all developments with the TDHCA. I had a telephone conversation with José M. Rubio, Jr., the Webb County District Attorney and referred the findings to him for his review. I relayed that information to the Commissioners court.” County Attorney Ramirez's affidavit includes the TDHCA's exit notes and findings from their monitoring visit to the WCCAA.

Those findings are reiterated most recently in May 26, 2005 correspondence from TDHCA executive director Edwina Carrington to Rep. Richard Raymond, who wrote the TDHCA on May 18, 2005 on Valdez's behalf. In addition to asking for guidelines for the 1998 heat emergency and other information, Raymond's letter asked Carrington, “Does your department have any concerns or problems if José A. Valdez is selected as CAA Director in Webb County by the Webb County Commissioners Court?”

According to ED Carrington in her letter to Raymond, the decision for whom to hire for CAA director “is a decision for the Commissioners Court. The Department's final monitoring report during Mr. Valdez's tenure, however, cited significant concerns related to the administration of the CEAP which would be relevant for a decision-maker to review. Many issues could not be resolved, and resulted in disallowed costs.”

Attachments to Carrington's May 26 response to Raymond include the agency's initial 1998 monitoring report of the WCCAA CEAP, support documentation and summaries, and two subsequent responses to the WCCAA.

Among those findings, according to the TDHCA monitoring report, which was attached to Carrington's response to Raymond, the TDHCA found that “the post audit revealed gross mismanagement of program funds and payment for services that were not delivered;” “Numerous incidents of incomplete client file documentation. Errors were found in the calculation of client income. The method of program implementation varied from established program guidelines in the elderly/disabled, energy crisis, co-pay, and heating/cooling component;” “Onsite inspection of all units installed revealed major deficiencies including the quality of installation, failure to install units, installation in houses with existing units, installation of evaporative coolers at homes without running water or electrical service, failure to remove replaced units;” “the typical installation observed during onsite inspections found evaporative coolers with pillows, clothes, cardboard, and other materials inserted on each side of the unit placed in a window;” “It appears that heating and cooling appliances were provided without regard to program guidelines but as a ‘service' of WCCAA;” “The form currently being used indicates that the executive director has discretion in determination of service rather than program guidelines.”

Members of the advisory board of the Webb County CAA at their most recent July meeting discussed whether or not Valdez should be re-hired for the post and affirmed that they wanted input into who is considered and hired for the position. The board also heard of correspondence between Raymond and Carrington and the monitoring report and findings attachments sent by Carrington to Raymond. Several board members acted to get copies of the Raymond/Carrington correspondence and its attachments to each Webb County commissioner before the commissioners meet on July 25 to consider Valdez for the directorship of the Community Action Agency.

CAA board member Martín Escamilla said, “It is incredulous to understand that our county government may hire this individual and completely ignore the problems associated with him, problems that were so well documented in the TDHCA's assessment of the Webb CAA. If the commissioners re-hire him, we will be the laughing stock not only of the county but also of the state. After our recent board meeting, we want to be very clear with the commissioners that we want input into who they hire. We want to be part of the process of considering candidates for the job of executive director.” He added, “Instead of being able to provide services for those who very much need them, the CAA under Mr. Valdez would create a chaotic, problematic situation for Webb County.”

“The consensus at the board meeting was that we do not want Mr. Valdez as executive director,” said Webb CAA board member Javier Santos. “There would be the danger that CDBG funds could be curtailed. All of the problems that arose under his watch, it's on the record in Austin. We're still reeling from the loss of Cynthia Mares as director of the CAA. One hundred percent of the board was behind her when the commissioners removed her from that post and reassigned her. We as a board have the strength to tell Austin that the commissioners are ignoring our wishes,” Santos said.

Valdez filed a suit against ShuString Productions, Inc., and publisher María Eugenia Guerra in 2004 in the 341st District Court. Armando X. Lopez, the attorney for ShuString and Guerra, entered a motion for summary judgment in early April 2005. Judge Elma Salinas Ender of the 341st has not yet issued a response granting or denying summary judgment.