Housing board postpones its decision on Brown’s job

Adrienne Packer

Tuesday, March 26, 2002 | 11:12 a.m.

A politically charged controversy over a high-priced public relations contract was picked apart behind closed doors Monday when Las Vegas Housing Authority board members met to discuss the future of the executive director.

Director Frederick Brown was given a reprieve when the board postponed its decision on whether he should be punished and, if so, the severity of his penalty.

The $84,000 contract was awarded to Tribeca Media, which then split it with Clark County Commission chairman Dario Herrera, whose company -- Herrera Communications Group -- never responded to the agency's bidding process.

Herrera and Tribeca Media owner Lucie Melchert have told different stories about how the contract unfolded, but it was Brown who was left battling for his job Monday.

After a two-hour private meeting Housing Authority chairman Bob Forbuss said the board's decision was delayed until the U.S. Department of Housing and Urban Development completes an audit of the agency's contracting process.

"It's important to see what they discover, if anything," Forbuss said. "And that's in fairness to everyone here."

The issue of politics quickly became the topic Monday when board member Michael McDonald blasted Herrera's camp for suggesting Melchert -- a new business owner and former city employee -- was a "political operative."

Herrera's campaign manager, Achim Bergmann, said last week that Melchert amended her story and said she was forced to share the contract with Herrera because Melchert now works for Republican congressional candidate Lynette Boggs McDonald.

"We will get to the bottom of this," said McDonald, who also asked his fellow board members to apologize to Melchert. "To say this is being done for political purposes is the most disgusting low blow I have ever seen.

"She did nothing wrong."

When asked whether he believed politics was involved in the contract controversy, Brown said, "All it was was politics."

Brown said he is pleased HUD officials will begin their review audit today, and he welcomes any recommendations the lead agency has as to how the process can be changed.

"We're people and we're not perfect, but the things done were not done intentionally," Brown said. "People will be looking into it and will have an answer. Whether they'll be satisfied with that answer, I can't say."

The public relations contract was awarded without the board's knowledge. Board members, however, did approve a budget line for $75,000 for public relations. Brown had the authority to award the contract without board approval, but under the agency's guidelines should have notified commissioners during the next meeting.

Board members were also concerned about Brown's relationship with Herrera. Brown served on Herrera's exploratory committee team when the one-term commissioner first pondered a run for Congress.

Since details of the contract were revealed, Melchert and Herrera have backed out of the agreement. Melchert said she is closing her business; Herrera said he is dissolving his company until after his congressional race.

Brown said Monday he did not feel as though he was left holding the bag.

"There is no bag," he said. "I didn't start it; I'm not in it."