SAN BENITO — Officials here are leading City Manager Manuel De La Rosa on a path to the Economic Development Corporation’s chief executive officer’s job.
Earlier this week, EDC board members revised the agency’s service agreement with the city to “reimburse” San Benito for $45,000 a year for managerial work which De La Rosa will perform as CEO.
The money will go into the city’s general fund budget, EDC President Julian Rios said Thursday.
“The reimbursement is not to the city manager,” he said. “The reimbursement is for services provided by the city of San Benito.”
Now, the EDC board plans to appoint De La Rosa to the CEO job before city commissioners consider ratifying the action.
“It’s something we can try,” Rios said. “One thing I tell people, ‘ Junto ganamo s — together we win.’ It’s in the best interest of both the (EDC executive) director and the city manager to be in the same loop at all times.”
The move to appoint De La Rosa to the CEO job comes as commissioners continue to negotiate his three-year contract paying him a $135,000 salary.
“It’s an ongoing thing at this time,” City Commissioner Rene Garcia said. “If there’s something he definitely wants to talk about, I’ll listen, of course.”
Garcia calls for CEO
During a Wednesday meeting, EDC board members revised the agency’s service agreement about a week after Garcia, who serves as the EDC’s vice president, called for revised EDC bylaws creating the CEO position.
“I think we definitely need a CEO’s oversight,” Garcia said during an interview. “I think CEO oversight is important to all organizations, especially when you’re handling public funds and assets. I certainly believe we need complete oversight, which includes safeguarding our assets and funds and city operations.”
Meanwhile, Commissioner Pete Galvan, who also serves on the EDC board, said City Attorney Mark Sossi proposed appointing De La Rosa to the EDC’s CEO position.
“I don’t believe the city attorney should bring up ECD bylaw revisions for agenda items,” Galvan said. “Who gives authority to the city attorney to amend bylaws and propose the agenda items?”
Sossi could not be reached for comment Thursday.
Galvan opposes reimbursement
On Thursday, Galvan said he opposes the move to tap money earmarked for economic development to pay for managerial services.
So far, the EDC reimburses the city $37,000 a year for accounting services.
“The EDC’s revenue stream comes from sales tax dollars and I believe we have an obligation to use sales tax dollars for economic development not managerial services,” Galvan said. “It’s in the scope of the city manager’s responsibilities to oversee the EDC as a department without expecting additional compensation.”
Currently, the EDC’s budget stands at $1.2 million, with a $1.4 million cash reserve fund and total assets valued at $2.6 million, Rios said.
Insurance gap
Meanwhile, Garcia said he called for the bylaws’ revision after he found the EDC didn’t have certain liability insurance.
On Thursday, Executive Director Rebeca Castillo, whose contract has been renewed, could not be reached comment.
“A person may be well-versed in economic development but the overall management of an entity is a little different,” Garcia said. “It’s important to have another set of eyes. The executive director does a great job as executive director. I don’t want the city manager to act like an executive director, either.”
Earlier this month, Garcia called for a revision of the EDC’s bylaws, proposing De La Rosa’s appointment as CEO.
“The oversight of the EDC, I believe, should fall under the chief executive officer for the city of San Benito who’s primarily responsible for the assets and funds of the city, regardless of whether they’re general fund or water and sewer funds and, in this case, economic development funds,” Garcia said during the May 18 meeting. “I feel (there) needs to be some structure where the fiduciary responsibilities of the organization and the funds should be under the city commission.”
“There are items here that I believe we need to address,” he said. “There was an item there where we needed insurance coverage. Well, we didn’t have it. We cannot run the risk, especially with insurance. Insurance is important because you never know what situation you might get into, especially in legal terms. We can’t afford for important, especially legal situations, to fall between the cracks and we’re not going to risk it.”
Guerra’s board removals spark lawsuits
The move to appoint De La Rosa to the CEO job comes after Mayor Rick Guerra’s attempt to remove Rios from the EDC board led to a federal lawsuit.
In February, Guerra tried to remove Garcia and Rios from the board, leading Rios to file the lawsuit contesting the mayor’s action.
Earlier this month, U.S. District Judge Fernando Rodriguez Jr. reinstated Rios, ruling Guerra tried to remove him without the city commission’s consent.
In a related case, Guerra tried to remove Rosanna Aguilera, the San Benito Housing Authority’s chairwoman, arguing she didn’t live within the city limits, before Rodriguez granted her request for a temporary restraining order, effectively reinstating her.
“The mayor attempted to remove Ms. Aguilera from the housing authority without complying with the removal provision,” Rodriguez’s order states.
On May 19, Guerra, in his capacity as mayor, presided over a hearing in which Aguilera presented her arguments against her removal. After she made her case, Guerra said he would consider her arguments before making his decision.
On Thursday, Guerra declined comment.
Background
In 2015, officials revised the EDC’s bylaws to appoint then-City Manager Manuel Lara to the CEO position.
More than two years later, after De La Rosa took the city manager’s job, the EDC’s then-president pushed for the agency’s autonomy, leading the board to scrap the position, Rios recalled.
It was unclear whether the EDC had reimbursed the city for Lara’s work, officials said Thursday.
