HOUSNITCH 39

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Watchdog files complaint against city official
Conflict of interest claim sent to state engineers board
By MATT SCHWARTZ
Copyright 2000

Houston Chronicle

Saying she was tired of waiting for the city to act, the operator of an online government watchdog group has filed a complaint with a state licensing board against a Department of Public Works and Engineering deputy director.

Brenda Flores, who runs a watchdog site called Housnitch, claimed Hilda Garza Scott has violated the Texas Board of Professional Engineers' rules regarding professional conduct and ethics.

Flores' complaint stems from allegations that Scott, as head of the Public Works Capital Projects Division, directed about $2 million in city engineering contracts to the firm that employed her husband, Richard.

Flores also said Hilda Scott knowingly failed to list her husband's employment with a city contractor as a potential conflict of interest on her 1999 annual financial disclosure statement.

The Harris County District Attorney's Public Integrity Unit is investigating those same claims, following a probe by the city's Office of Inspector General that ended last November. Roberto Gutierrez, chief prosecutor in the Public Integrity Unit, would only say Friday that his office is still reviewing the case.

Hilda Scott declined comment Friday.

Flores said her complaint to the state engineering board is intended to force action regarding Scott's continued employment as deputy director of public works.

"The mayor will not get off his butt and do what he's supposed to do, so we're going to do it for him," Flores said. "We're going to take their licenses, hopefully. And according to the job criteria I've read, you can't be director of anything if you don't have a (Professional Engineer) license."

Paul Cook, director of enforcement, said the Texas Board of Professional Engineers had not received Flores' written complaint as of Friday.

Cook said the board does have prohibitions on conflicts of interest among its rules of professional conduct. If the board determines that probable causes exist, a complaint would be accepted for investigation.

"We do have engineering standards and ethical standards that engineers must abide by," he said. "You have to have a very good case to revoke someone's license, either gross negligence or that the law or our rules have been violated."

He added, however, that allegations of conflicts of interest can be hard to prove. Penalties could range from an informal reprimand to a revocation of a professional engineer license.

"City precedent was set when the other (five) people were investigated," Flores said.

She referred to the five city employees suspended with pay by Mayor Lee Brown in February 1999 after the district attorney's office began an investigation into alleged irregularities in renovations contracts on four city buildings.

Three of those employees were later indicted on misdemeanor charges of tampering with a government document and violating state bidding laws.

The two others remained on administrative leave for 14 months before being allowed back to work.

Councilman Bruce Tatro on Friday also questioned why the city has taken no action regarding Scott's position, particularly since the city pulled the contracts at the center of Flores' complaints from TSC Engineering, which employed Richard Scott. He no longer works for that firm, .

Senior Assistant City Attorney Paul Bibler said the city withdrew the contracts last December because a city ordinance says it is against public policy for a city employee to have an interest in any city contract.

Bibler said the engineering work by TSC was almost completed, and that Jerry King, former director of public works, said city engineers could complete the design work.

By withdrawing the contracts, Tatro said, the city all but admitted a conflict of interest.

He said the city should do what it did with the five employees in the previous case. "Just suspend her or at least remove her from that position," Tatro said.

"It puts the city in a very, very bad light, not policing its own public works officials, yet admitting, ostensibly, there was a violation by yanking those contracts."

Councilman Bert Keller agreed.

"It's in the city's best interest to be consistent," he said. "Anytime they aren't consistent, they open themselves up for serious liability or criticism."

WE TOLD Ya'll we weren't going to just sit here and point out what's wrong...if this Administration won't take action, to correct the problems......we will use what ever methods are available to us, to see that they addressed.

We did mail our complaint to the State Board of Engineering & Licensing, and we have had contact with them since we sent the complaint by e-mail & certified carrier...first we'll present the complaint to you...then a copy of the documents we submitted to the board...and YOU be the judge...let us know if YOU feel...we've proved our point

Brenda Flynn Flores
AKA "HOUSNITCH"

P.O. Box 55423 Houston, Texas 77255

713-722-9258
e-mail: Housnitch @ aol.com

April 29, 2000

Danny Perkins Board Chair - Houston
E. D. (Dave) Dorchester, P.E.
Board Vice-Chair - Midland
Brenda Bradley, P.E.
Board Secretary - Houston
Edmundo R. Gonzalez, Jr., P.E.
Member - Brownsville
Govind Nadkarni, P.E. Member - Austin
James R. Nichols, P.E. Member - Fort Worth
Vicki T. Ravenburg, CPA
Member - San Antonio
Robert M. Sweazy, Ph.D., P.E.
Member - Lubbock
Kathleen Campbell Walker
Member - El Paso
Victoria J.L. Hsu, P.E. Executive Director
Randi Warrington Deputy Executive Director
C. Walter May, Jr., P.E. Director of Licensing
Paul D. Cook Director of Enforcement
TEXAS BOARD OF PROFESSIONAL ENGINEERS
P. O. DRAWER 18329
AUSTIN, TEXAS 78760-8329

Dear Mr. President, and Members:

Under §131.172. Complaints Against License Holders, section (b) Complaints shall be submitted on complaint forms provided by the board or in a written format that includes the following information listed in paragraphs (1)-(5) of this subsection:

I ,Brenda Flynn Flores, also known as HOUSNITCH, do submit the following complaint, against Hilda Garza-Scott, P.E.

(1)-description of the alleged violation;
Hilda Garza-Scott has displayed UNPROFESSIONAL CONDUCT by failing to comply with the rules & regulations concerning Professional conduct & violating the rules & regulations for Protecting the Public, and for being Objective and Truthful as an Engineer in the State of Texas.
She has issued fraudulent, deceitful, or misleading information not only orally but in writing.
She has failed to disclose a possible conflict of interest to a potential or current client or employer.
She has violated her Engineer's Responsibility to the Profession ,by : accepting compensation or benefits from more than one party for services pertaining to the same project or assignment;

(2) supporting information and factual evidence; (5) the section(s) part of the Act or the board rule(s) alleged to have been violated.
PROFESSIONALCONDUCT: Subchapter I. PROFESSIONAL CONDUCT
§131.151. Engineers Shall Protect the Public.

section (b) Engineers shall not perform any engineering function which, when measured by generally accepted engineering standards or procedures, is reasonably likely to result in the endangerment of lives, health, safety, property, or welfare of the public. Any act or conduct which constitutes incompetence or gross negligence, or a criminal violation of law, constitutes misconduct and shall be censurable by the board
The office of the OIG (Office Inspector General) here in Houston, Texas, has found enough evidence concerning a complaint filed against Hilda giving her husband (Richard Carl Scott) a $2 million contract, within DAYS of his leaving the City's employ, that they have forwarded a complaint on to the Office of Public Integrity Division of the District Attorney's Office.
§131.152. Engineers Shall Be Objective and Truthful.

(a) Engineers shall issue statements only in an objective and truthful manner. Engineers should strive to make affected parties aware of the engineers' professional concerns regarding particular actions or projects, and of the consequences of engineering decisions or judgments that are overruled or disregarded.

(b) The issuance of oral or written assertions in the practice of engineering which are fraudulent, deceitful, or misleading or on which in any manner whatsoever tend to create a misleading impression constitutes misconduct.

(c) The engineer shall disclose a possible conflict of interest to a potential or current client or employer upon discovery of the possible conflict.

(d) A conflict of interest exists when an engineer accepts employment when a reasonable probability exists that the engineer's own financial, business, property, or personal interests may affect any professional judgment, decisions, or practices exercised on behalf of the client or employer. An engineer may accept such an employment only if all parties involved in the potential conflict of interest are fully informed in writing and the client or employer confirms the knowledge of the potential conflict in writing. An engineer in a conflict of interest employment shall maintain the interests of the client and other parties as provided by §131.154 of this title (relating to Engineers Shall Maintain Confidentiality of Clients) and other rules and statutes.

On October 15, 1999 Hilda Garza-Scott signed a notarized statement saying she had 'NO CONFLICT OF INTEREST" pertaining to doing her job.This statement was submitted on her Financial Disclosure to the City Secretary of the City of Houston, Signed & notarized, where Ms. Garza-Scott swore she had no potential conflicts of interests, in doing her job. When in fact, her husband, Richard C. Scott was Vice-President of TSC Engineering Inc, with a more than 10% interest in the company, and was doing work with the city. The FIRST major contract of this company having been okayed & forwarded to City Council for approval by Hilda Garza-Scott herself within 30 + days of her husband Richard C. Scott having left the employ of this same city and department. IF you routinely award contracts....and YOUR husband works for a firm that does business with the city, then I'd say she has a CONFLICT of INTEREST....so...Hilda wasn't very truthful there was she? I also think that this covers section (b) as well... issuance of oral or written assertions in the practice of engineering which are fraudulent, deceitful, or misleading or on which in any manner whatsoever tend to create a misleading impression , (c) The engineer shall disclose a possible conflict of interest to a potential or current client or employer upon discovery of the possible conflict.

Well, I KNOW she didn't do that, she signed a sworn statement saying she DID NOT have a possible conflict of interest. (if your job is to routinely award city engineering contracts, and your husband not only goes to work for an engineering company, but becomes a Vice president with a more than 10% interest in the company, doesn't COMMON sense say that THERE IS A CONFLICT?)

section (d) Hilda had a chance to notify her employers of the conflict in writing, like this section says...but in fact she swore she didn't have any...
§131.155. Engineers' Responsibility to the Profession.

(c) The engineer shall not:

(5) accept compensation or benefits from more than one party for services pertaining to the same project or assignment;

Correct me, if I'm wrong...but her salary from the city is one form of compensation or benefit....and because Richard Scott is her husband, and a more than 10% owner in the company, under Texas community property laws, doesn't that make Hilda a more than 5% owner of this company she gave this contract too?

Either way, simply by being his wife, she benefited from awarding him this contract. more than once.

(2) supporting information and factual evidence;(4) sources of other pertinent information;
(1) Notarized Financial Disclosure on File with City of Houston City Secretary, Anna Russell's office, 901 Bagby signed & notarized on October, 15, 1999 received & filed with same office by Hilda Garza-Scott (which also lists Richard C. Scott as her husband & a Vice-President with TSC Engineering INC.) page 9, section 15 , stating that she has no conflict of interest
(2) RCA- (request for Council action) signed by Hilda Garza-Scott on October, 29th, 1998 (the contract wasn't ACTUALLY awarded until months later, but Hilda was ready for it barely 30 + days after her husband left the City's employ) This document came from The Department of Public Works & Engineering, 611 Waker, Houston, Texas.
(3) Form A---submitted by & sworn to by Tom Vance, Controller TSC Engineering Inc.& submitted to (and on file with) City of Houston, City Secretary, Anna Russell's office 901 Bagby, Houston, Texas, stating & naming all persons with TSC Engineering Inc. with a more than 10% interest in the company, in which Richard Scott is named as a more than 10% owner & Senior Vice-President of the company.

(3) names and addresses of witnesses;
Hilda Garza-Scott, P.E., Deputy Director PW&E
Home address
(*&^%!@#$
Houston, Texas 77064
281-469-2850
Business Address:
611 Walker
Houston, Texas 77002

Richard Carl Scott, P.E.
Home address
)(*&^%$#@!@
Houston, Texas 77064
281-469-2850

Jerry King P.E. (former Director) PW& E
611 Walker
Houston, Texas 77002

Lee P. Brown, Mayor, City of Houston
900 Bagby
Houston, Texas 77002

Marti Stein, Agenda Director
City of Houston
900 Bagby
Houston, Texas 77002

Anna Russell, City Secretary
City of Houston
901 Bagby
Houston, Texas 77002

Councilmember At Large Pos. 1
Ms. ANNISE PARKER
901 Bagby
Houston, Texas 77002

Councilmember At Large Pos 3
Mr. ORLANDO SANCHEZ
901 Bagby
Houston, Texas 77002

Councilmember At Large Pos 4
Mr. Chris Bell
901 Bagby
Houston, Texas 77002

Councilmember At Large Pos 5
Mr. CARROLL ROBINSON
901 Bagby
Houston, Texas 77002

District A Councilmember
Mr. BRUCE TATRO
901 Bagby
Houston, Texas 77002

District D Councilmember
Rev. JEW DON BONEY
901 Bagby
Houston, Texas 77002

District E Councilmember
Mr. ROBB TODD
901 Bagby
Houston, Texas 77002

District I Councilmember
Mr. JOHN CASTILLO
901 Bagby
Houston, Texas 77002

City of Houston, Controller
Sylvia Garcia
900 Bagby
Houston, Texas 77002

Mr. Terence S. Cheng, PE,President & Owner
TSC Engineering Inc.
6250 Westpark Dr. Suite 200
Houston, Texas 77057-7304

Mr. Ron S. Liu, Vice President
TSC Engineering Inc.
6250 Westpark Dr. Suite 200
Houston, Texas 77057-7304

Ms. Ann Cheng, Director
TSC Engineering Inc.
6250 Westpark Dr. Suite 200
Houston, Texas 77057-7304

Tom Vance, Controller
TSC Engineering Inc.
6250 Westpark Dr. Suite 200
Houston, Texas 77057-7304

Officer Jim Bollig
Office of the Inspector General
61 Riesner
3rd floor
Houston, Texas 77002

Roberto Gutierrez
Public Integrity Unit
Harris County District Attorney's Office
1201 Franklin
Suite 600
Houston, Texas 77002

Mr.Alexander Carl Chae, Chair
City of Houston Ethics Committee
Gardere, Wynee, Sewell, & Riggs
1000 Louisiana, Suite 3400
Houston, Texas 77002

Gary N. Oradat,PE
611 Walker
Houston, Texas 77002

Showri Nandagiri,PE
611 Walker
Houston, Texas 77002

Herbert Lum, PE
611 Walker
Houston, Texas 77002

Brenda Flynn Flores, HOUSNITCH
P.O. Box 55423

Houston, Texas 77255

This e-mail is only a precursor...and to inform your committee that i will be mailing, by registered mail Today, April 27, 2000 the formal complaint & documents to you.
Thank you very much for your prompt attention to this matter. Should you need further assistance, please do not hesitate to call on me.

Sincerely,
Brenda Flynn Flores, HOUSNITCH
713-722-9258

We have since sent along another letter with an amendment & a copy of the Houston Chronicle asking the Board to accept it as evidence also.

Brenda Flynn Flores
AKA "HOUSNITCH"
P.O. Box 55423
Houston, Texas 77255
713-722-9258
e-mail: Housnitch @ aol.com

April 29, 2000

Here's the documents darlins....please...tell us what YOU think...

well, that's the RCA...signed by Hilda, giving the money to TSC...and I see Oradat's initial on there & Jerry Kings...so that means they knew it was going to Richard too...hmmmmm

That's the Form A, says that Richard C. Scott is an officer , director, board member or owns more than 10% interest in the company...his title is Senior Vice President...hmmmmm

Well, there's the first page of Hilda's last Financial Disclosure, even carries the City Secretary's seal for receipt of it...hmmmm, so far our documents say just what we say they do....

Here's another page out of her Financial Disclosure, stating where she works & where her spouse works. So, Richard C. Scott on FORM A is one & the same Richard Carl Scott that Hilda is married to, and it has the same address as TSC Engineering as in FORM A......hmmmm

and excuse me, but isn't this the place on the Financial Disclosure where Hilda is supposed to inform her employer of potential conflicts of interest with her job? The City may say that it is optional....but the rules & regulations under which she is issued a Public Engineer's license DOESN'T...as a matter of fact she is OBLIGATED to inform her employer in writing of this conflict. And isn't giving your husband's company a contract for almost $2 million dollars a conflict? hmmmm...

and it's sworn to & signed by ...oh my! HILDA GARZA-SCOTT!

Now darlins....has HOUSNITCH proven her allegations outlined in the complaint?

And you know, i think that little statement made by Assistant City Attorney Paul Bibler kinda proves that the City thinks so too...."Senior Assistant City Attorney Paul Bibler said the city withdrew the contracts last December because a city ordinance says it is against public policy for a city employee to have an interest in any city contract. "

Now, we know, that Paul Cook, director of enforcement, said that, "allegations of conflicts of interest can be hard to prove."....tell us Houston...do you think we proved it? tell us~~> HOUSNITCH<~~

A very nice gentleman called from the State Board on Friday after receiving our e-mail, he said he wanted to just make sure that Housnitch understood that they needed a signed hard copy & the documents. I thanked him & assured him that they were sent certified mail, return receipt requested...I also asked him if i could ask some general questions. He was most gracious and allowed me to. I asked if we had cause to file against other Department Heads who also hold P.E. Licenses and were aware of this conflict but had not reported it, he told me that usually in an investigation IF there were found other Professional Engineers were found to have had knowledge of this conflict and had not reported it, they too would be sanctioned, and their licenses also could be suspended or revoked....HMMMM, we just might be able to get rid of all the STOOGES in one fell swoop boys & girls.....ORADAT, KING, SHOWRI , LUM....They ALL knew that Richard was Hilda's husband, AND that he was employed by TSC.....my, my, my...poor Terence Cheng P.E.....not only does the City jerk his contract...but it seems as if he may also lose his license...(what the HELL happened with all the money we gave them????...since it is an illegal contract...shouldn't we get our money back??? I guess we'll ask for that WHEN all parties involved have been through the complaint we have now...One thing at a time darlins...Housnitch's monetary resources are very limited...and so is time) AIN'T AMERICA GRAND? (NEXT----Those big companies that overcharge us!!! and the P.E.'s who let them!)

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Have a good week darlins...Tell em what you think!.....

MAYOR

City Council

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