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GOVERNMENT CONTRACTS
women-run businesses.
Getting certified gives those vendors
a big edge in competing for government
contracts worth many millions.
But one is the ultimate insider.
All Temps 1Personnel, a private workforce supplier, has for more than a decade provided the North Central Texas
Regional Certification Agencys entire
staff, from the executive director to the
18A
dallasnews.com
II
once represented the agency. Also, significant portions of what it claimed as a trade secret were published online by one of its government members.
Even before the attorney general ruled on The
Newscomplaint, the agency sued the newspaper in
September 2012 to block release of its records.
The attorney general concluded two months
later that the agency was a government body for
the purposes of Texas open records law and that
trade secrets protections the agency cited were for
third parties, such as a private corporation, not
governmental bodies. The ruling concluded that
information could be withheld under another statute.
The ruling
Denying its a government body
The North Central Texas Regional Certification Agency sent photos to the attorney
general of its files on minority- and woman-owned businesses.
All Temps 1 Personnel, on Martin Luther King Jr. Boulevard in Dallas, provides the entire staff of the North Central Texas
Regional Certification Agency. All Temps own employees approved it as a minority-operated business.
A web of connections
All Temps 1 Personnel, a staffing agency, has close ties to the North Central Texas
Regional Certification Agency and local governments.
LOCAL GOVERNMENTS
City of Dallas
Awarded All Temps sanitation contract
worth more than $14 million
Funds NCTRCA
City employee an NCTRCA board member
Helped create the NCTRCA
Dallas County
Accepts only NCTRCA certifications
Has paid All Temps about $13 million since
2002
Funds NCTRCA
County employee an NCTRCA board
member
Dallas-Fort Worth International Airport
Awarded All Temps contracts worth
$3.7 million
Funds NCTRCA
Airport employee an NCTRCA board
member
North Texas Tollway Authority
Awarded All Temps contract potentially
worth millions
Former NCTRCA executive director a staff
member
Funds NCTRCA
Other governments
Several other governments fund the
NCTRCA, select employees for the NCTRCA
board and have awarded All Temps
contracts. Those include the city of DeSoto,
the Dallas Independent School District and
the city of Irving.
Entirely staffed
by All Temps
Certifies
minority- and
women-owned
businesses; that
gives them an edge
when they bid on government contracts
Certifies All Temps
Certifies or decertifies potential All
Temps competitors
Certifies potential All Temps
subcontractors
Board members mostly employed by
local governments; some governments
hire All Temps.
SOURCE: Dallas Morning News research
Staff Graphic
alltemps1.com/
There are no
conflicts of
interest.
Ronald L. Hay, chief
executive officer of
All Temps
Disgruntled vendors
But some contractors say
theyve given up trying to work
with the agency.
Among them is Johnny
Smith, an executive with Annexus Personnel and Business
Services, a woman-owned staffing company in Mesquite. He
said the agency asked for per-
dallasnews.com
II
19A
Albert Titus, who replaced Sheena Morgan as executive director of the North Central Texas Regional Certification Agency, talked to business owners last year at a certification workshop in Fort Worth about how to obtain NCTRCA minority
certification. Some business owners complained in the past that the agency was not responsive and slow.
Like any other government, like any other company, you are going to see glitches.
Perfecta Gallegos, chairwoman of NCTRCA at the time, listened to board members ideas
during a monthly meeting last year. The board isnt involved in day-to-day certification.
Agency in 2006. The San Antonio-based nonprofit is modeled after the North Texas agency.
A city of Austin audit during
the time she was in charge of the
San Antonio agency slammed
its performance.
The agency accepted documents at face value without any
type of follow-up or verification
to ensure that the information
submitted is true and correct,
the audit said.
Proof of ethnicity or gender, a key issue in judging applications, was missing from almosthalfofthe files examined.
Former Austin assistant city
manager Rudy Garza recalled
significant delays in processing
applications and no response
from agency leaders to simple
questions.
Morgan was the citys only
point of contact. And when we
could not get the issues resolved
there really was nowhere else for
us to go, Garza said.
Austin paid the agency
$50,000 a year to handle certifications. The city dropped its
contract in January 2007. City
employees began certifying
companies again.
Morgan became the North
Texas agencys executive director in August 2008.
Hay, the All Temps CEO, said
he was not sure when he found
out Morgan was Kellys daughter. But that relationship played
no role in her hire as the North
Texas agencys director, he said.
Criminal inquiries
Companies provide the
North Texas agency information such as proof of ownership,
financial data and tax records
when applying for certification.
The agencys website says that
site visits may be conducted.
Ronquillo said the certification process does not say that
you are a good business.
Its up to governments that
award the contracts or the private firms that hire them as subcontractors to apply more scrutiny, he said. And if a company
gets in trouble after being certified, he said, thats way past the
point of the agencys involvement.
The city of Dallas, in a written response to The News, said
the agencys performance was
satisfactory. Officials declined
an interview request.
Over the past two decades,
several of the agency-certified
companies have surfaced during criminal investigations.
The agency certified a cleaning supply company co-owned
by longtime Dallas City Council
member Al Lipscomb and a
white partner in the early 1990s.
The company reportedly had no
warehouse or delivery trucks at
the time. It relied on other companies to produce, store and deliver what it sold.
A federal prosecutor described the firm as one of several
minority fronts used by former council member Paul
Fielding. Fielding later was convicted on federal corruption
charges.
We have to set up a company
for him and have the damn
thing certified, Fielding said of
Lipscomb on a recording played
atFieldings 1997 trial.
An agency-certified contractor for the Dallas Independent
School District, convicted on
federal charges in the late 1990s,
gotmore than $3 million in contracts and was paid almost
$400,000 for roofing work that
wasnt done. That was despite
the owners two theft convictions, a lack of liability insurance and little roofing experience.
Several players in the corruption scandal that led to former Dallas Mayor Pro Tem Don
Hills 2009 conviction operated
agency-certified companies.
Among them was the owner
of a paving company who admitted telling a developer he
would get Hills help on a zoning
application if he was awarded
concrete subcontracts. Federal
officials said the paver provided
no services to the developer.
The paver later was sentenced to prison and was released in March 2012. Last
June, his company still was on a
list of certified companies the
agency provided to The News.
The NCTRCAs website states
that certification is indefinite
but firms must provide an annual update form with documentation to the agency.
The agency also approved
three companies later linked to
Price, the county commissioner,
in an ongoing FBI investigation
of his finances. Price has denied
any wrongdoing.
Gallegos, the boards former
chief, said neither the board nor
its government members get
notified if a certified vendor has
acriminal record.
Morgan said in her deposition that the agency didnt have
any mechanism to inform officials that a certified firm was under criminal investigation or indictment.
If you knew that, would you
tell them? she was asked.
No, she replied.
etimms@dallasnews.com;
kkrause@dallasnews.com
The North Central Texas Regional Certification Agencys office is on Six Flags Drive in Arlington. It serves Dallas County, the city of Dallas and D/FW Airport, among others.
20A
dallasnews.com
TBey & Associates held its grand opening in DeSoto in May 2010, and owner Tawanna Lofton cut the ribbon with her
husband, Cecil. The small startup received millions as a government subcontractor.
The staffing industry has always been a target for negative reviews and comments from
unhappy clients/employees for various reasons that are often beyond the staffing firms
control.
Tawanna Lofton, owner of TBey & Associates
utive director of the certification agency and All Temps employee who died last year.
Cecil Lofton, who owned an
electronics business that won
government contracts, also was
a former chairman of the Black
Contractors Association.
Hay said in response to
emailed questions that All
Temps picked TBey because it
needed a minority firm that
could handle unskilled sanitation workers and TBey met the
requirement. He said TBeys
performance was satisfactory.
TBey also had allies in the
local governments that finance
the certification agency.
The Loftons used a connection at Dallas/Fort Worth International Airport, for example, to seek business there.
Their efforts paid off.
Airport staffers arranged a
meeting between TBey and
Bombardier Transportation, a
major airport vendor. But after
due diligence, Bombardier
told the Loftons in the spring of
2011that the company wouldnt
be using TBey as a subcontractor, partly because of its financial status, according to emails
The News obtained from the
airport after an open records
request.
Tawanna Lofton emailed
Guy Toliver, who worked in the
airports business diversity office and who served with Cecil
Lofton on the board of the
black contractors association.
In the email, she asked him
What is this based on?
Shortly afterward, Bombardier agreed to take on TBey as a
subcontractor.
Toliver did not return calls
Connections lead to
contracts
TBey wanted to become a
government contractor when it
officially was launched in 2010
out of a DeSoto office building.
It helped that its owners had
connections and friends in the
government and private sector.
Cecil Lofton, Tawannas
husband and TBeys vice president, had known All Temps
chief executive officer Ronald
L. Hay since 2002.
Cecil Lofton also had served
on the board of the influential
Black Contractors Association
with John Kelly, a former exec-
Serge Wankombe, owner of a temporary staffing agency called Romulus Group, said Dallas city officials told him he had
to hire TBey & Associates after hed won a $13.5 million contract. But a city official said the city doesnt do that.
kkrause@dallasnews.com;
etimms@dallasnews.com
$3.00
dallasnews.com
II
21A
County supervisors often know little about who shows up when staffing contractors send them temps. Thats even after
a temp using a false name once stole $1,360 from the tax office. Several contractors who have supplied temps said they
conduct background checks. Two firms called it an unintentional mistake that some workers slipped through.
April 2008 Charged with felony drug possession and a misdemeanor for evading arrest. The
evading arrest case is still pending.
Dec. 12, 2008 Receives a deferred nine-year sentence for the felony drug charge.
Dec. 14, 2008 Accused of attacking the same woman, by then his former girlfriend. Charged
with a second misdemeanor assault-family violence. The case is still pending.
May 6, 2010 Bivins is indicted on three counts of felony deadly conduct in connection with a
fight with his cousin. Bivins shot him twice in the left leg, according to police reports. When the
cousin ran toward a car, police say, Bivins kept firing, striking the vehicle at least five times.
May 13, 2010 Prosecutors seek to revoke Bivins deferred adjudication in the 2008 felony drug
case because of the shooting. Bivins attorney later contests the revocation motion. The case is
still pending.
April 2013 The Texas attorney generals office sues Bivins in Dallas County family court for
unpaid child support.
July 2013 Bivins is cited for a traffic offense and never paid the Dallas County fine, records
show. Such debts automatically disqualify people from working for the county.
Jan. 6, 2014 County records show that Bivins was assigned as a temp to the elections
department. County officials said last week that he no longer works there.
SOURCE: Dallas Morning News research
Staff Graphic
Little to go on
Kye R. Lee/Staff Photographer
nal records.
For two temps, there was no
public record of a drivers license, a Texas address or any
other public record.
The most detailed record
typically available to county officials is a time card. It generally has the temps name, signature and often a Social Security
number. On some, names were
misspelled including a recent time card for Bivins. Signatures were omitted on others. The clerk in the DAs office
had submitted time cards under two last names over the
years.
Some computer records
used by the countys auditors
and its human resources department only list the temps
last name and do not show
where they work. As a result,
county officials may not know
how long temps have been on
the job, if they are related to a
county employee or if they have
a criminal background.
HHS typically pays for its
temps with state and federal
grant money. HHS does not
need budget office approval if
its spending grant money, officials said. Other departments
have limited money for temps
and must justify their use.
The health department was
authorized, for example, to pay
a staffing contractor $2.3 million in 2011. All but $56,500 of
that was grant money.
Case in point
That contractor was All
Temps 1 Personnel. It was the
largest beneficiary of county
contracts for temporary labor
over the past decade. It also
staffs the North Central Texas
Regional Certification Agency,
which certifies whether local
companies are owned by minorities or women.
The News found that several
of the employees provided by
All Temps to Dallas County had
criminal records.
The county has paid All
Temps more than $13 million
for supplying temporary workers since 2002. All Temps did
not bid on the current contract
for temps.
The News began looking at
the role of government temp
workers more than two years
ago. It found that the entire
staff of the taxpayer-funded
NCTRCA is supplied by All
Temps, which also bids on public contracts.
Gwen Wilson, an All Temps
executive, said her company
uses a private firm that maintains a criminal records database for background checks.
In one case, she said the
company was aware of the
criminal record found by The
News and that the county approved the hire. Another temp
got into trouble after she began
working for All Temps, Wilson
said. As for others, she said
there was no background
found at time of hire.
County officials had raised
concerns about another All
Temps employee in 2008.
That employee worked in
the tax office under a false
name and encountered problems on previous work assignments, unbeknownst to both
Dallas County and the Tax Office, according to a letter from
the district attorneys office to
All Temps.
The worker stole $1,360, according to the DAs office.
The letter said All Temps
failed to provide qualified
temporary agents and perform
adequate criminal background
checks. As a result, the DAs office alleged, the company
breached its contract.
The letter demanded that
All Temps reimburse the county and return the money it was
paid for temporary personnel
services that Dallas County
deems to be unsatisfactory.
All Temps CEO Ronald L.
Hay has told The News his
firms background search did
not reveal any negative information about this employee.
Wilson said the worker was
fired and Dallas County got
See AGENCIES Page 22A
22A
II
A temporary accounting clerk was working at Dallas Countys Health and Human Services department not long after he
finished probation for felony theft for falsifying documents at the Hyatt Regency Dallas to steal more than $26,600.
assessor-collector, said he
would never
be in favor of
using temps
provided by a
contractor.
JOHN
Ames
does
AMES, tax
hire tempoassessor,
rary and seadoesnt use
sonal workers,
temps.
but they are
county
employees. They go through a
county-mandated background
check. And theyre issued
county identification badges.
Temp agency workers typically
dont go through that process.
If somebody is going to
work in the tax office, because
it is such a sensitive position, I
want to know their background, Ames said. I want
them to be actual county employees, whether they are seasonal employees or part-time
employees or full time.
The sheriff and DAs offices
rely on contractors for background checks but sometimes
do their own if the temps are in
certain areas, said Debbie
Denmon, spokeswoman for
District Attorney Craig Watkins.
dallasnews.com
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IMMEDIATE JEOPARDY
By GARY JACOBSON
Staff Writer
gjacobson@dallasnews.com
facturer.
The kitchen of a hospital in
southeast Texas was so unsanitary
that administrators quickly
agreed to close it and contract
with local restaurants.
A nursery assistant in El Paso
continued to feed and bathe newborns for weeks after showing
signs of active tuberculosis, potentially exposing hundreds of
TEXAS EDUCATION
FEDERAL GOVERNMENT
Agents
hiding in
the open
Popularity of undercover work raises
concerns about abuses, entrapment
FROM WIRE REPORTS
Karin Quinn of Frisco says her sons, sixth-grader Conor (left) and seventh-grader Quinn, report math instruction goes so fast that
they cannot grasp the stuff. Frisco ISD has acknowledged frustrations but says testing has found students are making progress.
By JEFFREY WEISS
Staff Writer
jweiss@dallasnews.com
H 40
L 37
Puzzles
13-15E
Jumble
9D
Jobs
Sec. J
Auto
18-19C
Travel
Sec. K
Editorials
2P
Letters
2-3P
NATION
By KEVIN KRAUSE
and ED TIMMS
METRO
SPORTSDAY
As football dads, ex-Cowboys fret
Former Dallas Cowboys are not immune to
fear while watching their sons play football. 1C
Staff Writers
AUSTIN
Perry aide
promoted
despite DWIs
Governor knew official had 3 alcohol
offenses, pressed DA to quit after 1
By CHRISTY HOPPE
Austin Bureau
choppe@dallasnews.com
Boneless Chuck or
Shoulder Roast
Jumbo
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Oranges
USDA Select,
Limit 2 With Additional $10 Purchase
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for
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we reserve the right to limit quantities. None sold to dealers, restaurants or other resale establishments. Copyright 2014. KROGER TEXAS L.P. www.kroger.com
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dallasnews.com
Staffing questions
For more than a decade, All
Temps 1 Personnel, a private
workforce supplier, has provided the certification agencys entire staff, from the executive director to the receptionist, at its
Arlington office, The News has
reported. All Temps staffers repeatedly have approved their
own company as a minorityowned business and passed
judgment on its rivals and potential rivals.
Chartwell is a potential
competitor of All Temps for local government contracts and
was in a heated business dispute with an All Temps subcontractor at the time of the
certification denial in June
2013.
Complaints of delays
To help reduce a certification backlog, previous boards of the North Central Texas Regional Certification Agency have
discussed requiring certification every two or three years instead of annually. But the schedule hasnt been changed.
Resisting change
Despite its problems, the
agency has resisted change
even from within.
To help reduce a certification backlog, previous boards
discussed increasing certification periods to two or three
years instead of requiring annual recertifications. But no
changes were made to the
schedule. The board did eventually approve a committee recommendation to stop processing new certifications for 20
days so the agency could get
caught up.
After The News reported in
March that other contractors
had concerns about the agencys oversight, Dallas City Manager A.C. Gonzalez said he had
similar concerns. He said the
city had recommended last
year that the agency have an executive director who would report only to the board and that
it recertify businesses every
other year instead of every year.
Its
imperative
that
NCTRCA hires a full-time director, Gonzalez told The
News. The director should not
have relationships with any
businesses seeking certification that cause ethical concerns.
Gonzalez said Dallas wants
to work with other local governments to make sure this
happens as soon as possible.
However, Marcos Ronquillo, an attorney for the agency,
told The News this summer that
the board believed there was
no need to make any changes
SUPPLEMENTAL MATERIAL
This has been included to document the response to the NCTRCA
investigation and is not part of the official entry. )
Metro
Section B
EDUCATION
JAMES RAGLAND
jragland@dallasnews.com
Coalition opposes
DISD home rule
Minorities, teachers call
plan a power grab to
control district budget
By MATTHEW HAAG
Staff Writer
mhaag@dallasnews.com
UPDATE |
VICTORY PARK
DALLAS COUNTY
MONDAY
TUESDAY
Transportation
Education
WEDNESDAY
THURSDAY
Update
Public safety
FRIDAY
SATURDAY
The Watchdog
Hot Topic
SUNDAY
Neighborhoods
Minority
contracts
at issue
Photos by G.J. McCarthy/Staff Photographer
A Dallas police officer lobbed tear gas canisters into a unit of The Vista Apartments, where a man
held police at bay Tuesday. The incident led to the lockdown of nearby buildings.
INSIDE
Suspension over,
minister says
DART arrives at
D/FW on Aug. 18
Ratcliffe picks up
key endorsements
John Ratcliffe has
grabbed the endorsement of two Washington
conservative groups in his
primary runoff with Rep.
Ralph Hall. 9B
ALSO
Cedar Hill ISD names
superintendent finalist. 5B
Trial starts for woman
accused of running over
pregnant cousin. 7B
INSIDE
2-3
5
6-7
10
Abbott.
Abbott filed motions to intervene in
three separate federal
court suits brought
against Baylor Plano
by former patients of
GREG
Dr.
Christopher
ABBOTT
Duntsch. They have
alleged that Baylor
knew Duntsch was a dangerous physician but did not stop him from performing back surgery.
Staff Writers
. . . . . . . .
By KEVIN KRAUSE
and ED TIMMS
The lone agency that certifies minority businesses for Dallas County
came under fire Tuesday from county
commissioners, who questioned its
management and oversight while
considering whether to allow other
entities to provide such certification.
County Judge Clay Jenkins wants
to know whether the county should
allow other organizations in addition
to the North Central Texas Regional
Certification Agency to certify businesses seeking county work. He said
doing so would give those firms more
opportunities to do business with the
county.
Ultimately, however, commissioners decided to have staff members study the matter for a couple of
weeks before deciding whether to
make changes. Some commissioners
said they should wait for the conclusion of a racial-disparity study being
done by a county consultant.
Ironically, that was the same reason commissioners gave in September 2011for delaying any action when
Commissioners Court Administrator Darryl Martin proposed identical
changes for the minority certification process.
The suggested change comes after The Dallas Morning News reported earlier this month that the county
currently accepts certification only
PLANO
County roundup
Norma Adams-Wade
Obituaries
Weather
Commissioners fault
certification agency but
hold off on making changes
8B
REGION
dallasnews.com
moment in North Texas transportation. They say it will provide seamless access from
DARTs 13 member cities to the
world.
It really connects people
and places beyond what we ever thought about, said Gary
Thomas, DARTs president
and executive director.
For locals, it promises to
provide an alternative beyond
driving, taking a cab or booking a shuttle to get to D/FW.
In real terms, its symbolic
of what DART represents,
which is regional connectivity,
said Harry LaRosiliere, mayor
of Plano where the Orange
Line originates.
The station is a short, outside walk from the airports A10
entrance. Travelers flying out of
Terminal A can check in once
inside and then go through security.
Travelers flying out of other
terminals have two choices
once they get off the train.
Those checking bags can catch
an airport shuttle to other terminals outside the A10 entrance. Those with carry-on
bags only can check in for their
flight inside the entrance, go
through security and then take
the airports SkyLink to their
terminal.
DALLAS COUNTY
Minimum
wage hike
proposed
Jenkins urges paying
contract workers at
least $10.25 an hour
By MATTHEW WATKINS
Staff Writer
mwatkins@dallasnews.com
Dallas County Judge Clay Jenkins and Commissioner John Wiley Price discuss allowing entities besides the North Texas
Regional Certification Agency to also certify businesses as minority-owned.
We knew he was under distress, but I dont want to speculate on what caused him to take
the actions that he did, Walton
said at a news conference later
Tuesday.
Marc Lipscomb, who also
lives on the fifth floor at The Vista, said he didnt know Lamb. He
rushed from a downtown law
firm where he works to the Perot
Museum parking lot after the
apartment complex sent out an
email about the shooting.
I was really shocked and obviously very rattled because its a
of glass breaking.
Its one of those surreal situations, Reynoso said.
He said he isnt sure his sister,
who is moving to Dallas, will feel
safe at the apartment anymore.
I told my sister, As soon as
we can, well get you out of
there, he said.
But life carried on as usual at
the Perot Museum, parents and
teachers said. An estimated
2,000 people, many of them
youngsters on field trips, were
trapped inside the building during the standoff.
I have to say the Perot handled it beautifully, said Kim Arnold, who was a chaperon for her
sons class. They told one adult
about the situation and that was
it. That way, we can share the
news with our group the way we
wanted to.
Once the standoff was over,
busloads of elementary students
from Dallas and Grapevine-Colleyville ISD were free to leave the
museum and did so under the
watchful gaze of police officers.
Many of the students wiggled
and yelled for their buses.
18A
Publishers
George Rodrigue
Vice President, Managing Editor
EDITORIAL
Ending an era
Weve urged more times than we can recall for Rep. Ralph Hall to step aside in favor of a fresh voice
representing the 4th Congressional District. Now, two national conservative groups, Club for
Growth and the Madison Project, agree. They are publicly backing Republican challenger John
Ratcliffes bid to unseat the 17-term incumbent. At 90, Hall is the oldest member of Congress,
which is no longer a badge of honor. Ratcliffe, a former U.S. attorney and mayor of Heath, gives district voters a chance to break from the past. They should seize it.
CORRECTION: An editorial in Fridays paper inaccurately described the maximum percentage retailers can keep of the planned 5-cent plastic bag fee. Retailers can keep 10 percent of the fee under the new
law.
Metro
INSIDE
Section B
FRISCO
TRANSPORTATION
Kirk to be adviser to
bullet train developer
EDUCATION
| MCKINNEY ISD
MONDAY
TUESDAY
Transportation
Education
WEDNESDAY
THURSDAY
Update
Public safety
FRIDAY
SATURDAY
The Watchdog
Hot Topic
SUNDAY
Neighborhoods
District
veteran to
take reins
New superintendent has
experience in the classroom
and on the front lines
By JULIETA CHIQUILLO
Staff Writer
jchiquillo@dallasnews.com
Edward Price (left) tells Ruth Horrell what clothing he needs as she types it into a tracking database at Our Calling resource center in East
Dallas. To foster relationships, the nonprofit uses an app to track encounters with clients.
. . . . . . . .
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8
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County by County
Obituaries
Weather
INSIDE
sity programs.
The NCTRCA also said it
will implement a new computer system that would
help speed up the certification process for new applicants and those seeking annual renewals. The agency
has dealt with backlogs and
complaints that it is sluggish and unhelpful.
It looks like a step in the
dallasnews.com
DALLAS
5B
Volunteers prepare food at Our Calling, a resource center in East Dallas. Its not a shelter, but the nonprofit helps connect homeless people with resources there or elsewhere.
AT A GLANCE
Our Calling
Our Calling focuses on four
main areas: Bible study and life
skills, mentoring and
discipleship, addiction
recovery (12-step meetings)
and resource distribution. The
resource center is at 500 S.
Haskell Ave. It is open Monday
through Friday, though hours
and services vary by day. For
more information about the
organization, visit
ourcalling.org or call
214-444-8796.
14A
Publishers
EDITORIAL
A small mercy
Sometimes, its the little mercies we need to
be thankful for. Thats what the district attorney of Morehouse and Ouachita parishes in
Louisiana showed this week when he dismissed a ticket for a 16-year-old Texas boy
who fell asleep at the wheel and caused an accident that killed five members of his family.
The prosecutor summed it up clearly. This
young man has been punished enough, Jerry Jones told The News-Star. There is no
need to add to his pain. The crash claimed
the lives of Michael and Trudi Hardman and three of their children. The ticket probably should
never have been written. Jones saw that and offered a little kindness and common sense in the
midst of a terrible accident.
DallasObserver
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TheWayDallasCertifiesMinorityContractorsIs
aSucker'sGame,NewsShows
ByJimSchutzeWed.,Mar.192014at7:00AM
Categories:Schutze
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Stum
EdTimmsandKevinKrausehadagreatstory
inTheDallasMorningNewsonSunday
aboutalocalagencythatcertifiesbusinesses
asminorityorwomenowned.TheNorth
CentralTexasRegionalCertificationAgency
seemstobesortofthesameoutfitas
somethingcalledAllTemps1Personnel.
Theagencywassetuptoruleonwhether
companiesarereallyminorityorwomen
owned,butitsentirestaffisprovidedbyAll
Temps.
WickipediaCommons
Fromtimeimmemorial,someonehasplayed
thefool.Apparentlynowit'sus.
AllTemps,wouldn'tyouknow,hashadno
problemgettingcertifiedasaminorityownedcompanyandnoproblemgettinglocal
governmentcontracts,$30millionworthinthelast10years.TimmsandKrauserandown
otherminorityownedstaffingcompanieswhocouldn'tgetcertifiedtosavetheirlives.
Somejustgaveup.
Letmerunitbyyouagain.LocalgovernmentinDallasCounty,verymuchunderthe
influence,nottosaythethumb,ofDallasCountyCommissionerJohnWileyPrice,setsupa
certificationagencythatservesasthegatewayforlocalminoritygovernmentcontracting.
KrauseandTimmsfoundothercitiesinTexasthatdidtheirowncertifying,but,no,we
neededaspecialoutsideagencyforthat.
SoourlocaloutsideagencysomehowbecomestheSiamesetwinofaforprofitstaffing
company.Theoutsideagencycertifiesitstwin,thestaffingcompany,asminorityownedup
onesideanddowntheother,andthetwinrunsoutandglomsontoarichstackof
contracts.ButotherminoritycompaniesthatarepotentialcompetitorstoAllTempscome
along,foolishlytakethisforastraightupprocess,applyfortheirowncertification,and
theirrecordskeepgettinglost,surprise,surprise.
Racialdiscriminationinbusinessandinpubliccontractinghasbeenaseriousproblemin
thepast.It'sreasonableforcommunitiestowanttocleansethemselvesofthatissue.But
Dallashasaparticularproblem.Somehowthewholebusinessofminoritycontractinghere
haswounduphavingtheexactoppositeeffectofanythingthatcouldhavebeenintended.
WEEKLY NEWSLETTER
GET MOBILE
Predictingthe
NextYearinDallas
News
ByUnfairPark
Thewayitworkshere,hardworkinghonestcompaniesgetshutout,andthescammers
rushin.
SixyearsagowhenCommissionerPricewasengagedinhispartiallysuccessfulcampaignto
sabotageahugeindustrialprojectinhisowndistrictcalledTheInlandPort,hedemanded
thatthemaindeveloper,TheAllenGroup,providealistofallcertifiedminority
subcontractorsitusedinbusinessesinCalifornia.Thosebusinesseswereunrelatedto
Allen'sDallasoperation,andthedemandhadnobasisinlaw.
IcalledtheAllenGrouptoaskwhattheyweredoingaboutPrice'sdemand.RichardAllen,
headofthecompany,toldmehewantedtocooperatebutcouldnot.Hesaidhecouldnot
providealistofcertifiedminoritysubcontractorsinCaliforniabecausehedidn'thaveany.I
askedwhy.
Hetoldmethat,firstofall,asanAnglo,hewasintheminorityinhispartofCalifornia.
Secondly,hesaid,virtuallyallofthesubcontractorshiscompanyusedinconstructionwere
Latino.Everyone.Butnotasingleoneofthemhadeversignedupforminority
certification.Iaskedwhy.
"Theydon'twanttomesswithit,"hesaid."Theyjustgooutanddothework."
ReadingTimms'andKrause'spieceSunday,Iwonderedhowmanymorestrongminority
companieswemighthaveintheDallasregioniftheNorthCentralTexasRegional
CertificationAgencyhadneverbeenformed.Andnowthatweseehowitworks,Iwonder
howmuchlongerweareexpectedtostandherelikesuckersandnotsayanything.
GETTHEWEEKLYNEWSLETTER
Ourweeklyfeaturestories,moviereviews,calendarpicksandmoreminusthenewsprintandsent
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0points
06/17/2013
10:58
2146536001
PAGE
Plaintiff,
vs.
THE DALLAS MORNING NEWS
Defendant,
News") appeared by and through their attorneys of record and announced that they were ready to
proceed, with trial. Neither party having demanded a jury, the case was tried to the Court. All
matters in controversy were submitted to the Court, except for the issue of the reasonable
attorneys' fees and costs to be awarded upon final judgment, which issue was reserved .for
further proceedings.
The Court heard the arguments of counsel and the testimony of witnesses and considered
the submission of all adrnitted cxhibits and the parties' stipulations of fact. On the basis of tile
crediblc evidence, arid consideri
the Court now enters its Findings of Fact and Conclusions or I,avv, as rollows:
02/12
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2146536001
i.
1,
PAGE
FINDINGS OF FACT
which came from public runds paid to the N.C.T,R,C,A, by the Agency's governmental member
entities.
6.
deposited into N.C.T.R.C.A.'s general operating account and a e used to pay, among othcr
things, thc Agency's employee salaries, office rent, office utilities, insurance premiums, and
postage.
7.
support.
N,C,T,R,C,A, receives public funds from governmental bodies for its general
03/12
06/17/2013
10: 58
8.
2146536001
PAGE
These
On May 16, 2013, ifve da.ys before this case was called to trial, N.C,T.R,C.A.
demanded that each of its member governmental entities execute new "membership" agreements
that ),vould supersede the member governmental entities' Interlocal Cooperation Agreements
under Chapter 791 of the Texas Government Code. further dem.anded thin
member governmcnLil entities
CCLI I,C and return the new "minbership" agreements hy May 20,
governmental hodic..,s. For example, other governmental bodies, including the State of Texas and
the City of' Houston, peribrm the same type o:l' minority- and women-owned business
certification services as the N.C.T.R.C.A..
12.
The operative lnterlocal Cooperation Ag,reement between the City of Dallas and
N.C.T.R.C.A,, !b y c N arnple, provides that the Agency performs certifications of minority- and
women-owned busines ses and "other related services for the Disadvantaged Business Enterprise,
Minority and/or Wornen-owned Business Enicrpise ("1)./M/Vv131.i;") programs of the [member
governmental bodies, including the City of Dallas]."
13.
of the N.C.T.R.C.A., it would be required to perform its own, internal certifications of minority-
04/12
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2146536001
PAGE
largest member governmental entitiesCity of Dallas, City or Fort Worth, D/FW Airport, and
Dallas County
provide that the "N.C.T.IZ,..C,A, will at all times be acting as the duly constituted
authority and instrumentality of the Participants kid -Hied as the member governmental entities]
and as an organization performing essential governmental funetions
15.
"
The entity now known as the N.C.T.R.C.A. was founded in .Tune 1989 pursuant to
governmental bodies Formed the N.C.T.R,CA, "10 demonstrate thc [founding] intergovernmental
entities' commitment to coordinale the goals and objectives or their respective programs in
mutual support and cooperation with other such entitics in order to further a comprehensive
strategy in addressin minority business oriented issues and concerns."
16,
The N.C.T.R.C.A.'s website states the following: "in June 1989, an Intel-local
Cooperation Agreement was entered into betvveen nine founding member entities, creating the
N.C.T.R.C.A. For the purpose of jointly providing certification and other related serviee,s For the
disadvantaged
busiiiess enterprise,
minority
enterprise
Interlocal Cooperation Agreements are not specific, definite, or tied to a measurable amount of
service lor a curtain amount or money.
05/12
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18.
2146536001
PAGE
The amount of public funcis received by N,C.T.R,C,A. from each of its member
governmental entities is not dependent on whether or how much the N.C.T.R.C.A. performs a
service for the member governmental entity, nor is there a correlation between the funds received
and tl-se amount of service provided. Rather, N,C.T.R.C,A.'s annual "membership feesscss
a.ecl
to governmental bodies is cleterntined by the governmental body's population or type,
member governmental entity pays the Agency the same amount of' money, an
appropriation," even lithe member governmental entity never uses the Agency's
1
9.
"annual
5CINiCOS.
purpose or objective,
20,
disadvantaged, minority and woman-owned ifrms, benelit from the programs offered by the
member entities[r as stated on the N,C,T.R.C.A.'s wcbsite.
N.C.T.R.C.A.'s member
governmental entities share this common purpose and objective, Indeed, the central, il' not solc,
purpose of thc N.c.T.R..c..A. is to enable its member governmental entities to adhere to their
policies on hiring bona ride minority- and women-ownecl businesses to perform government
contracts.
2 t.
nineteen members of the Board of .Dircetors, sixteen of whom are employees of governmental
bodies who serve on the Board of .' Directors els representatives of the member governmental
entities, The sixteen board members who represent the N.C.T.R.C.A,'s rnenther governmental
entities have full voting rights.
06/12
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10: 58
2146536001
PAGE
employees of N.C.T.R.C.A.'s a.ssociate members and are only permitted to vote on the
N,C.T.R,C.A.'s budget.
23.
Six entities are authorized to perform certiifcations for the Federal Disa.dvantaged
Business Enterprise Programs in TeNaS under the Texas 'Unif ied Certification 'Program:
N,C.T.R.C.A., SCIRCA, City of AustinCity of Houston, the Texas Department of
Transportation, and Corpus Christi Regional Transportation Authority.
24.
N.C;II.R.C.A, did nol seek an opinion rrorn the Ortice or the Texus Attorney
General ("Attorney General") pursuant to Section 552.301 of the T,P.LA. within ten business
days after it received the T.F.1..A. Request.
26.
N.C.T.R.C.A. sent a letter to The News responding to the T,P,I.A. Request and
attached a ruling from the Attorney General dated October 26, 2011.
27.
On July 27, 2012, Tho News sent a letter to the Attorney General, challenging thc
request for a responsv to The Neri.v` lottor Elated July 27. 701
30.
On November 30, 2012, the Attorney General issued a letter ruling that found the
N,C.I.R.C.A. is a "g overnmental body" as defined in the T,P.I.A. and is therefore subject to the
T.P.I.A
The Attorney General's letter ruling .further found that the N.C.T.R.C.A. could
07/12
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10: 58
2146536001
PAGE
withhold information responsive to the T.P.I.A. Request pursuant to Section 552.128 of the
T,P,I.A.,
31
N,C,T,R,C.A.
applies to third-party
proprietary interests and not to any such interests or similar interests of a governmental
32.
body.
individuals and businesses certified and/or decertified by the N.C.T.R.C.A., does not constitute a
trade secret owned by the N.C,T.R.C.A,.
example, the City of Fort Worth's website and the Texas Unified Certification Program's
website.
33.
No third party has objected to the release of information responsive to the T.P.I.A
The Attorney Genearl's leiter ruling dated November 30, 2012 is the first time the
Attorney Gemi:ral addressed whether the N.C.I.R.C.A. is a governmental body subj eel to the
in a reported decision.
35.
N.C.T.R.C.A,
Chapter 67, Water Code that provides a water supply or wastewater service, or both, and is
exempt f om ad valorem taxation under Section 11.30, Tax Code,
37,
the federal community services bloek grant program and that is authorized by this state to serve a
geographic,: ;,irea or tho state.
08/12
0E/17/2013
10:58
38.
214E53E001
PAGE
ha5
exempt status Linder section 501(c)(3) of the Internal Revenue Code of 1986
39.
functions" as "functions normally associated with the routine operation of government, including
tax
aViCSSITIClit and
N.C.T.R.,C.A. receives funds from the Following sources: (a) annual fees .fom
42.
The
43.
Disadvantaged Business Enterprise rograms in Texas prior to joining the N.C.T.R.C.A.: City or
Dallas, City of Fort Worth. DFW Internation41 Airpori,
District, Dallas Area i apid Transit. and Fort Worth Transit Authority.
44.
09/12
06/17/2013
10:58
2146536001
11.
PAGE
1.
the T.P.I.A
2.
hereinabove in Findine of Fact No. 9 was specifically calculated to alter the N.C.T.R.C.A.'s
essential eonsiitu.ent method of doing business and specifically to thwart a determination by this
Court of
its
3.
4.
Association, 850 F.2d 224 (5th Cir. 1988) to the credible evidence in this case, the N.C.T.R.C.A
qualifies as an entity that is supported by public funds under each of the three Kneeland factors.
5.
The (Vews
governmental body within the meaning of the T.P.I.A., and is ther efore subject to the T.P.I,A
6.
of the T.P.I.A. in connection with the T.P.I.A. Request, there is a legal presumption that
information responsive to the T.P. L A. Request is public and must he released under the T.P.1.A..
7.
responsive to the T.P.1.A. Rcq4se4t sufficient to overcome the legal presumption that such
information is public and must be released under the T.P.I.A
8.
Section 552.110 of t17c T.P.I.A. applies to third-party proprietary interests and not
10/12
06/17/2013
1E1:58
9.
2146536E1 01
PAGE
10.
to
the
11.
The News is entitled to the recovery of reasonable attorneys' fees and costs
pursuant to Section 37.009 of thc Texas Civil Practices and Remedies . Code and Section 552,323
of the `I`.]'.T.^l.,
12.
pr
party" for purposes of Section 37.009 of thc Texas
The News is the "evailing
Civil Practices and Remedies Codu and the "substantially prevailing party" for purposes of
552,323 of the T.P.1,A
13.
N.C.',1 .R.C.A, failed to show that it autcd in reasonable reliance. on: (1) a
judgment or an order of a court applicable to the N.C.T.R.C.A.; (2) the published opinion of an
appellate court; or (;3) a written decision
of
14.
15.
16.
17.
N.C.I.R,C.A. is not a "pr evailing party" l'or purposes of Section 37.009 of the
costs,
Texas Civil Practices and Remedios Code or a "substantially prevailing party " for purposes of
Section 552123 o the P .1,A
18.
19
All Finding of Fact which arc more properly (.onclusion of' Law.
11/12
06/17/2013
10:58
2146536001
SIGNED this
day of
PAGE
, 2013.
^ ^...,_
:11,1 DGE PrdS1DING
12/12