Board: PR contract was not approved

Adrienne Packer

Thursday, Feb. 14, 2002 | 11:13 a.m.

Las Vegas Housing Authority board members are questioning the propriety of a public relations contract that pays Clark County Commissioner Dario Herrera $3,500 a month for consulting work they say they never approved.

Four of the five housing authority board members contacted Wednesday said they hadn't heard of the contract; three said they would never have approved it and want it reviewed.

Board members said it's inappropriate for the agency, which provides housing for the city's low-income residents and senior citizens, to spend money on public relations.

"It's not necessary at all for a public housing agency," board member Simhan Iyengar, an international attorney who does pro bono work for MASH Village, said. "Our job is to provide clean, safe and decent living accommodations."

In November, housing authority executive director Frederick Brown signed an $84,000, year-long contract with Tribeca Media to provide public relations work. Tribeca splits the contract with Herrera Communications Group, which is owned by Herrera.

According to the contract, Herrera's firm was hired to provide governmental consulting.

But some board members are questioning the propriety of hiring Herrera during an election year. Herrera is running for Congress and Brown was a member of his campaign exploratory team.

Board member Dewain Steadman charged that the contract was politically motivated.

"Public housing is no vehicle for people to parasite off public funds," Steadman said. "Its funding is not to be shared by political groups."

Although Housing authorities in North Las Vegas and Clark County do not hire public relations firms, Brown defended the contract, saying the service was necessary to improve his relationship with Las Vegas officials.

Brown said Herrera -- a well-connected official who has been in the local political arena since 1996 -- had given Brown advice last year and "that's when he told me he had a firm," Brown said.

Brown said Herrera was the ideal consultant to help "provide some positive interaction with the city council."

Board members have criticized the contract, saying they should have been informed during negotiations, especially because a local politician was involved. Christopher Hoye, a four-year board member, questioned whether Brown and Herrera's political relationship may raise more issues.

"That might bring up some concerns of conflicts of interest," Hoye said.

Michael McDonald, a Las Vegas City Councilman and vice-chairman of the housing authority board, also said Brown should have at least told board members of Herrera's involvement.

"In this situation, full disclosure would have been more appropriate," McDonald said.

Brown and Herrera deny any impropriety.

Herrera, who runs his business from his home, said he obtained a legal opinion from the District Attorney's office before entering the contract. He denied his motive for accepting the job was political.

"My only motivation in working with Tribeca Media and the housing authority on the public relations contract is to improve the image of the housing authority and promote the tremendous work they're doing on behalf of the residents in the city of Las Vegas," Herrera said. Deputy District Attorney Mary-Ann Miller, who represents Clark County commissioners, said it is not inappropriate for commissioners -- whose elected positions are part-time -- to do vending or contracting work for another government entity.

The housing authority contract says Herrera Communications will work in concert with Tribeca, a company started last year by Lucie Melchert, a former spokeswoman for the city of Las Vegas' neighborhood service division.

Melchert, who formed her company seven months before she was awarded the contract, is responsible for coordinating government affairs services with Las Vegas, working with the media and community outreach. Herrera's scope of work focuses on government affairs and includes organizing community round tables.

Board members said they have not seen materials produced by the companies and know of no round tables or forums that have taken place.

"I don't think we've had a community round table in the last five years," said Steadman, who has been on the board since 1997.

Herrera said he organized an event for a housing complex remodeling project and primarily provides "overall communication strategies" for Tribeca and the housing authority. His company is also working on organizing forums, but Herrera could not provide a timeline for the events.

"We've worked with the folks at Tribeca to organize community forums and provide the necessary support to make the events successful," Herrera said.

Hiring a public relations specialist to help inform the community of services isn't unusual, said Ken LoBene, director of the Las Vegas Housing and Urban Development office. He added that few authorities enter large contracts with firms.

Brown said the contract came about after his bout with bad publicity last year. He said the board suggested a public relations firm be hired to advertise the positive news. But Steadman and Iyengar said the board never made that recommendation.

Hoye said it is up to the executive director to make the final decision on a whether the housing authority should spend money on a public relations firm. But, he said, the board is typically notified of any large expenditures.

"We are given a courtesy call or a walk and talk when expenditures that large are made," said Hoye, a four-year member of the board. "It's very rare that something like this is a surprise to us."

Inyengar said the board requires its approval for any contract more than $25,000.

"This never came before the board," Inyengar said. "I don't know how the administration has not sent us any information related to this contract or not discussed it with any of the commissioners."

However, Brown disputed the commissioners' interpretation of the housing authority's purchasing policy. Brown said the old policy requiring approval for anything over $25,000 was amended last summer.

Under the new policy, once the budget is approved Brown has the authority to send out requests for proposals and enter contracts without authorization from the board, Brown said. The authority's latest budget shows $75,000 for public relations.

"We changed the language so that if the item was approved with the budget, it doesn't have to come back before the board," Brown said.

Steadman said he doesn't recall amending the policy.

"They can't arbitrarily write something into the budget and then write a check for $84,000," Steadman said. "That is against policy. This is wrong and it needs to be looked at."