Former Housing Authority of El Paso CEO Pablo Salcido has filed a lawsuit against his former employer. He wants more than $200,000 in back pay, and he’s raising questions about Housing Authority contracts and the relationships between board members and vendors. [link]

The lawsuit alleges that Kenna Ramirez, the board chair, and Jaime Rubenstein, a board member, engaged in “irregularities.” Salcido alleges that Ramirez was romantically involved with an employee of a vendor, Basic Industries, a general contractor with headquarters in Houston.

Salcido further alleged that Rubenstein pushed the board to approve a $300,000 contract with Aliviane for family counseling services. Salcido alleged the Housing Authority had never engaged such a contract before.

Salcido declined comment on the specifics of his case.

In his lawsuit, he did comment on the selection process for Housing Authority board members, stating that Mayor John Cook “rewarded political supporters” with appointments to the board.

Cook replied Friday (July 7, 2007) with a statement supporting his board appointees. “Mr. Salcido has not paid very close attention to the facts or the qualifications of the fine members of our community I have appointed to the Housing Authority Board,” stated Cook. “I am personally offended by Salcido’s suggestion that my appointments were rewards to my political campaign supporters.”

Board chairwoman Ramirez declined comment. Rubenstein wrote in an e-mail message that “All discussions regarding the contract with Aliviane were done in an open forum. Please refer to all public records regarding this process. Once you have an opportunity to review the documents, these will unequivocally prove that there was nothing illegal or unethical done by a commissioner nor the process to contract the services. HUD reviewed our actions and did not find any unethical or illegal conduct or actions by a commissioner or HACEP.”

Rubenstein said he did not remember when HUD reviewed the issue. HUD officials in Dallas were not available for comment on the Aliviane contract, which Salcido in his lawsuit states was the subject of an October, 2006, discussion between himself and HUD Regional Director Justin Ormsby, a former El Pasoan and director of the Rio Grande Council of Governments in the 1990s.

Richard Perkins, executive deputy director for Aliviane, said the proposal initially was rejected by the Dallas HUD office because it was not put out to bid. It was later put out to bid, Perkins said, and Aliviane won the contract, which then was approved by HUD.

“I think at that time the board and Pablo were at odds with a lot of other things I’m not aware of, so I think that created a bit of a political football there,” Perkins said.

Salcido’s lawsuit was filed Thursday (July 5, 2007), the day of a special meeting at which the board was to discuss the Salcido issue, and other issues.

The board voted to accept the resignation of Interim Director Vince Dodds, and to ask HUD to send a new interim director while candidates are assessed.

There has been turmoil at the top of the Housing Authority on a consistent basis for several years. Two years ago the issue erupted into an angry struggle between members of City Council and members of the board over naming a new executive director. [background]

The board then ended up hiring Salcido, who was offered a contract in December, 2005. [lengthy background, with historical context] The contract was finalized in January, 2006. [contract]

Commissioner Jaime Rubenstein said before the meeting Thursday that several people have inquired about the job, and the U.S. Department of Housing and Urban Development has offered assistance. Also, one of the 2005 finalists, Jorge Salazar, also is under consideration, said Rubenstein. [salazar 2005 application]

Salazar’s candidacy was promoted by then-Commissioner Larry Medina, who said he preferred Salazar to Salcido and fought against Salcido’s nomination. Medina has been reappointed to the board for a second round.

Salcido was fired by the board in November, 2006, and now is the executive director of the Paso del Norte Group, a civic organization that is laying the groundwork for major change in El Paso. [pdng background]

The board listed a number of reasons for firing Salcido, from allegedly hanging up on Chairwoman Ramirez, to allegedly allowing an employee to manipulate hiring processes so the employee could get a promotion. The board also claimed that Salcido attempted to threaten a commissioner by releasing damaging information, and then trying to have the mayor remove the commissioner.

“Certain Commissioners are unable to communicate with you. The breakdown in Communications, which you have publicly acknowledged, is causing harm to the agency and its operations,” stated the board document listing the reasons. [see summary of grounds at bottom of story]

When the board fired Salcido, it entered into an agreement Nov. 21, 2006, which states that he was due a lump sum equal to 15 months pay and his accrued time off benefits within five days of the Separation Date, which was set at March 1, 2007. He was to receive his regular monthly salary and benefits until then. [see agreement at bottom of story]

He was not paid March 1, and on March 30 filed a petition to force testimony from Board Chairwoman Ramirez and Ike Monty, a developer of low-income housing. [see petition at bottom of story]

Frank Ainsa, Monty’s lawyer, declined comment.

Salcido’s petition claims that a commissioner illegally gave Monty internal documents. It also claims that HACEP was essentially looking for an excuse to back out of its separation agreement and has claimed that Salcido did not live up to the agreement in order to create such an excuse.

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