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Laredo ISD board votes to end long-standing advisory contract with Estrada Hinojosa and solicit new municipal-advisor proposals
Summary
Trustees voted 4–3 to direct staff to terminate the district’s municipal-advisory agreement with Estrada Hinojosa & Co.; the board also approved soliciting proposals for municipal-advisory services. The move prompted several trustees to cite process and timing concerns and a divided board debate.
The Laredo ISD Board of Trustees voted 4–3 on Feb. 13 to direct staff to terminate the district’s financial-advisory agreement with Estrada Hinojosa & Co., a firm that trustees and staff said has advised the district on debt and refunding operations for many years. The board immediately authorized staff to solicit request-for-proposal responses from municipal advisers.
Trustees said the decision followed concerns about procurement and the board’s need to re-evaluate long-term advisory services. "By procuring, anyone who is interested in becoming a municipal advisor will respond to the bid document," district procurement staff explained when the board approved the RFP method; staff added the district could score qualifications and then negotiate fees.
The motion to terminate the existing agreement produced strongly worded debate. Trustee Leticia Garcia opposed bringing the item without wider trustee notification and described the item as a surprise on the agenda. "I was very upset... I was very offended of this hitting this agenda," Garcia said, asking for fuller communication before taking large-contract actions.
Trustee Dr. Gilberto Martinez urged caution in replacing a long-serving firm, citing the firm’s track record and the district’s uncertain near-term finances. "I think that this is not the time to be, looking for, someone else or another group to come fill in this gap," Martinez said, noting fiscal pressures ahead.
Board President Juan Ramirez Jr. brought the item forward to the full board. After discussion trustees voted to terminate the district’s agreement; the roll call produced a 4–3 vote in favor of termination. The board then approved a separate motion to advertise a request for proposals for municipal advisory services. District procurement staff told trustees there may be opportunities to negotiate lower fees from respondents.
Supporters of the action said a formal procurement would document qualifications and preserve the district’s option to renegotiate or replace advisory services. Opponents worried the district was moving away from an adviser who had a long history of refunding work for the district and urged more time and information before termination.
No immediate operational disruption was expected: staff noted the contract requires a written notice and that, once notice is provided, a short notice period applies and the district can continue working with the existing adviser while the RFP process runs.
The board also approved a separate agenda item authorizing staff to solicit proposals for municipal advisory services using an RFP method; procurement staff said the scoring would be qualifications-based and the district could then negotiate terms with the top-ranked respondent.
Trustees asked staff to return with procurement documentation and comparative fee information during the RFP process.
