El Paso Inc.: PSB Buys $2 Million In Equipment From Board Member
By David Crowder / El Paso Inc.
City Hall and the El Paso Public Service Board are bracing for the storm that?s bound to come over the El Paso Water Utility?s purchase of construction equipment from a PSB member?s company.
Since 2000, the utility has purchased $2.4 million worth of heavy construction equipment from Sierra Machinery, owned by the PSB?s vice-chair and senior member, Maria Teran.
And $1.1 million of that equipment was purchased since 2007, as the PSB went outside the traditional competitive bidding process to buy 11 pieces of equipment from Sierra.
PSB?s president and CEO, Ed Archuleta, says he knew nothing about the transactions in 2007, 2009 and 2010, and the seven-member board that oversees the utility didn?t approve them.
On one day in November 2007, utility executives bought six pieces of equipment for $890,100 through a state-run buying cooperative known as TXMAS without board approval.
The full extent of the PSB?s business with Sierra Machinery, a Volvo dealership that specializes in heavy construction equipment, came to light last week as a result of questions raised by El Paso Inc.
Teran says ? and the Public Service Board?s legal counsel, Robert Andron, agrees ? that the purchases broke no state laws or city ethics rules.
?If you look into this with any kind of fairness, at the end of the day you will conclude that everything that was done was above board and was in compliance with the laws of the state of Texas,? Teran said.
But other say it doesn?t pass the smell test.
Archuleta said the PSB has no specific policy about board members doing business with the utility. But it is time for one now, he told El Paso Inc.
?In no way should any board member be bidding on equipment or any other type of service,? Archuleta said. ?It?s never happened before. This is the first time.
?We?ve never had a board member that had a business like this or anything remotely associated with it that would be a problem.?
Archuleta has called for a review of the utility?s purchasing practices and wants recommendations from his top executives for changes.
Read the full El Paso Inc. article here.
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