Wednesday, Feb. 20, 2002 | 11:01 a.m.
The executive director of the Las Vegas Housing Authority said Tuesday that Clark County Commissioner Dario Herrera's guidance in calming him during stressful situations is worth the money Herrera is paid as a consultant.
After an emotional housing authority board meeting, during which commissioners unanimously voted to strike an agenda item designated to evaluate Frederick Brown and consider a pay raise, Brown defended the controversial contract.
"I'm not good at politics, and it was through (Herrera's) help that I learned to calm down," Brown said after Tuesday's meeting. "He taught me to calm down and present the facts."
In November Brown signed an $84,000 public relations contract, which is split between Tribeca Media and Herrera Communications Group.
Brown said the housing authority pays Herrera $3,500 a month to provide government affairs consulting and overall communication strategies. Lucie Melchert, a former city of Las Vegas employee and owner of Tribeca Media, also receives $3,500 a month for public relations services.
The contract, which housing commission members say was awarded without their knowledge, prompted two board members to request that Metro Police and the FBI review the agreement.
All five housing authority board members said they should have at least been notified that the agency, funded predominantly by the federal government, had entered into a contract with an elected official.
Herrera said he was stunned by news that the housing commission was unaware of his contract. Late Tuesday he sent a letter to Brown offering to back out of the deal.
Herrera, who has a legal opinion from the district attorney's office saying it is not inappropriate for him to enter into a contract with the city, said he has fully complied with the scope of work outlined by Brown.
"If the board wishes to go in a different direction," Herrera wrote in his letter,"I would respectfully offer to withdraw my services."
Whether Brown had the authority to award the contract without board approval hasn't been determined. Brown said a change in the authority's expenditure policy last year allows him to award contracts once a budget item is approved.
The housing authority's procurement policy, which was approved by the commission in February 2001, says Brown "shall be authorized to approve purchases and/or contracts of more than $25,000 ... for items that are specifically provided for in a Board-approved budget."
The policy also says commissioners will be notified of such expenditures at the next meeting. Four of the five board members said they never approved such an amendment. Each said they were never told of the public relations contract, which exceeded the amount allotted in the budget by $9,000.
"I was surprised," housing authority chairman Bob Forbuss said of the contract. Forbuss voted along with his colleagues to update the authority's bylaws and policies to resolve issues such as spending limits.
Herrera, chairman of the county commission, is running for Nevada's third congressional seat against Sen. Jon Porter, R-Henderson, and Pete O'Neil, an Independent candidate. Brown served on Herrera's campaign exploratory team.
Brown said it was "coincidental" he hired an elected official. Brown and Melchert rejected the idea that the housing authority's contract with Herrera could be perceived as a sweetheart deal.
"That's how it would appear with any elected official," Melchert said.
Board member Dewain Steadman and Simhan Iyengar said Brown's deal with Herrera could violate the federal Hatch Act, which prohibits executives for some public agencies from participating in partisan politics.
They argued that the housing authority does not need public relations and the money should go toward finding homes for low income residents and senior citizens as intended.
Herrera said he has never tried to hide his relationship with the housing authority and listed the agency as a client on his federal financial disclosure form. He said he was "astonished" at Steadman's claims of impropriety.
"I guess this is his 15 minutes of fame," Herrera said. "When people make allegations of impropriety, they should be well founded allegations. Considering all the circumstances in this case, nothing could be further from the truth."
Steadman said he has seen no evidence of Herrera's work, despite the authority having written five checks worth about $17,000 for government affairs consulting. Herrera, however, said he has been involved in several events and has given Brown training in handling the media.
Brown dismissed his relationship with Herrera and emphasized the need to inform the community of the Las Vegas Housing Authority's success.
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