Corpus Christi Ethics Commission

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Location: Corpus Christi, Texas, United States

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Tuesday, September 12, 2006

CCISD is ripped off by Colleen McHugh ~expensive pay with nothing to show for it


  • RELATED STORIESBria turned down more than $195K
    PRINT THIS STORY E-MAIL THIS STORY CCISD paid $72,000 for search
    Superintendent hunt too costly, some officials say
    By Dan Kelley Caller-TimesSeptember 12, 2006
    The Corpus Christi ISD spent more than $70,000 on its two failed attempts to hire a superintendent since December 2005, with more than half of those funds spent on legal fees and thousands more spent on hotel rooms, airfare and catered meet-and-greet affairs.
    "It's so disappointing," said Board of Trustees President Manuel Flores, "and it is too much money."
    The Caller-Times on Aug. 25 requested an accounting of all costs associated with the superintendent search and all draft copies of former finalist Shonny Bria's proposed contract. That's the day she backed away from a $195,000 per year job offer without explanation. The district released the information in a letter dated Sept. 5 and Caller-Times received it Monday.
    The district released information indicating it spent $77,561. On Monday, district spokeswoman Lorette Winters said the total paid is $4,750 less. The district has withheld that amount, the final installment of the search consultant's $19,000 contract, because the board has not hired a superintendent. The contract with Webb and Associates also called for about $5,500 in expenses. An accounting of those expenses was not immediately available.
    According to the records, the district paid more than $41,000 in legal fees to two law firms - one to represent members of the board of trustees, the other to represent the district - though the district has its own in-house legal department.
    After Bria turned down the offer, Flores said the search costs were about $20,000. At the time, he was referring to the search consultant's contract.
    Trustee Lucy Rubio, after she was shown the records released by the district, said she had no idea of the amount spent on the search and that the legal fees were a surprise.
    "We didn't take a vote on this," Rubio said. "We voted on the attorney, but the fees were by the hour." She later added: "They are a little higher than I would have liked, but our legal fees are always high because we are under so many mandates."
    Board member Bill Clark questioned why the district would need to pay for two outside law firms, and said he had not been aware of the extent of the legal fees. He added that he would have to see the numbers himself before making a judgment.
    One firm, Bracewell Giuliani of Houston, serves as standing counsel to the board of trustees and was paid $10,175 for its part in the search. The district also paid the firm of Welder Leshin $31,097 for the services of attorney Colleen McHugh..
    McHugh was reached by telephone Monday but broke off the call. District officials later contacted the Caller-Times to say she would not comment because of attorney-client privilege."She was engaged because she specializes in human resources law," said acting superintendent Scott Eliff.
    Flores said the district did not seek bids when it hired McHugh. Bracewell & Giuliani was selected from among respondents to requests for proposals. The contracts called for both law firms to be paid by the hour but did not cap the total value of the arrangement.
    The later stages of contract negotiation with Bria generated much of McHugh's fee total, Flores said.
    "Those last two weeks killed us," he said.
    The $41,000 generated by both firms also includes $4,432 associated with the departure of former Superintendent Jesus Chavez, interim superintendent Scott Elliff said.
    It also was not immediately known if costs associated with this search are unusual for the district. Flores said he personally estimated fees for the superintendent search would be about $60,000 at the beginning of the process.
    Bria's decision was the second attempt to hire the district's top officer. Earlier this year, the district suspended the search after the Caller-Times announced the identities of two close contenders.
    The board voted Aug. 29 to postpone the search until after November school board elections.
    Other expenses included $3,103 spent at the Omni Bayfront Hotel for rooms and refreshments used during the interview process, as well as lodging for candidates.
    The district paid a pianist $150 to play a $1,200 party at the Holiday Inn Emerald Beach to introduce Bria to the school principals and other management. The district hosted six other meet-and-greet events for a total of $2,650. The district also paid for three round-trip coach tickets and related travel expenses for $2,722.
    Flores said he was "disappointed about the money and time spent without the result we were looking for" - hiring a superintendent.
    "I fully believe the process can be handled with a search firm and a local attorney," Flores said. "I don't believe it would cost $30,000 or $40,000. The board can do it without a search firm and save another $20,000."
    But, he said, Webb had achieved a spectacular result, with approximately 70 applicants.
    American Federation of Teachers Corpus Christi President Juan Guerra said the district could recoup its costs by re-examining applicants from the previous search.
    "If we've invested the money in that search," Guerra said, "we need to go back and look at the 69 other candidates. That seems like quite expensive legal bills for a failure."
    SEARCH COSTS
    TOTAL COST
    $72K
    LEGAL fees
    $41,272
    Paid to: Welder Leshin/Colleen McHugh Bracewell & Giuliani
    Professional fees/Expenses
    $19,750
    Paid to: Harold Webb Associates, Ltd.
    Several other expenses
    $11,783
    Used for: Candidate interviews, advertising, brochures, food services, transportation among others.
    Contact Dan Kelley at 886-4316