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Former Mayor Beto Salinas files lawsuit against the City of Mission over PSI contract of $20 million

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Former Mayor of Mission, Beto Salinas files a lawsuit against the City of Mission. Image for Illustration purposes. Salinas Image Source: Texas Border Business

Texas Border Business

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Norberto “Beto” Salinas, in his capacity as a resident of the City of Mission, filed a lawsuit against the City of Mission for an energy saving services contract that was awarded to the Indianapolis-based company, Performance Services Inc. to replace all household water meters and LED lighting in public buildings. Former Mission Mayor Beto Salinas is being represented by his son, Mission attorney Ricardo “Rick” Salinas.

The lawsuit was filed in an Hidalgo County Court, in which it specified that when authorizing and signing this contract, the Mission Municipal Government did not follow the proper procurement and competitive bidding process; thus, creating an illegal debt.

“It’s a contract that takes advantage of the residents of Mission and one of the worst things that Mayor O’caña’s administration has done in the last 3 years,” said Beto Salinas.

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The project was to have been financed by the same company, PSI – Performace Services Inc. The amount of the contract is $16,756,000 plus an additional $4,100,000 in interests making it a total of $20,856,000 that must be repaid in a 12 year period.

Salinas stated: “I don’t know what the 3 members of the council who approved this project were thinking by authorizing a debt for the city of almost $21,000,000. I honestly don’t think they understand the numbers.”

PSI approached the city in August 2018, a month after current Mayor O’caña took over his post. But it wasn’t until March 8, 2021, the council passed Resolution 1722 in which it authorized Major Armando O’caña to sign a contract with PSI. At first, it had been said that there would be no payment for the first 2 years, but on March 26, 2021 the city received the first invoice for an amount of $1,473,514, which was paid on April 16, 2021 with check #216384, keep in mind, they paid this without ever having budgeted this expense.

“In the case of the PSI contract, the city should have waited to be financially stable and develop the project in-house. Modernization is needed but not at such a high cost to the taxpayers,” Salinas said.

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“This contract will force the city to raise property taxes for years to come, and I know that justice will side with Mission taxpayers”, Beto Salinas said.

The former mayor of Mission, a fiscal conservative, will seek re-election next year and promises to lower taxes once he reaches the post, said he was concerned about the decisions that the current administration was making and the inefficient management of public resources. Salinas, from 1998 to 2018 managed to lower taxes by 21% from .63 cents to .48 cents for every $100 of property valuation.

ALWAYS WITH THE TAXPAYER

Beto Salinas also brought to federal court the garbage management company BFI that had a contract with the City of Mission, in the end, an agreement was reached with them in which the city could form its own waste management department. As a result, today the city provides commercial and residential services to the Citizens of Mission.

Also, always concerned about taxpayers, Salinas led a campaign in 2014 and 2016 against the creation of a new taxing entity called the Healthcare District in Hidalgo County, where both elections the people voted against it. If this proposal had been passed, the residents would have been responsible for paying almost $300 million combined, since they would have paid up to .75 cents for every $100 of valuation off their property.


BETO SALINAS LAWSUIT


CHECK RECONCILIATION REGISTER


PSI FINANCIAL FILES


PURCHASE AGREEMENT


RESOLUTION 1722

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