April 30, 2009
A political action committee controlled by County Judge Anthony Cobos that is contributing to several El Paso City Council candidates is also involved in the Horizon City Council races for the second election in a row.
The Americans for Energy Independence PAC appears to be acting improperly because it did not file a 30-day campaign report with the state or the city of El Paso disclosing its activities showing where they money it is contributing came from.
Most of the PAC’s contributions were made to individuals with whom Cobos or Perez have been involved or allied in the past, but the PAC’s involvement in Horizon City politics this year and in 2007 is harder to explain.
An individual who knows about the PAC but asked not to be named for fear of retaliation said Cobos originally intended to use it as a way to help elect candidates and establish power bases in small towns around El Paso.
“The plan was build a power base around El Paso and then to gradually move into the city,” he said.
That PAC – for which Cobos’ chief of staff, Jaime O. Perez, served as treasurer in 2007 – has given $1,525 this year to Jose Alexandro Lozano in his bid to unseat District 3 city Rep. Emma Acosta. That makes the PAC Lozano’s biggest benefactor by far.
The PAC also gave $500 to Howard Barton, who is challenging District 2 Rep. Susie Byrd and $500 to Robert Larsen who is running against District 7 Rep. Steve Ortega and $100 to mayoral candidate Alexander F. Catucci.
Perez recently identified himself as the PACs spokesman in an open letter endorsing the candidates to whom the PAC had made contributions.
Lozano's nonprofit makes contribution to him
The Americans for Energy Independence PAC’s official address is 7400 Franklin in El Paso. On the same block, at 7404 Franklin, is the address used by the Institute for Culture Learning of El Paso, which gave Lozano $1,210. [This paragraph was corrected at 4:15 p.m., April 30]
The institute is not listed with the state or the city as a PAC or political committee. But state records show it to be a nonprofit corporation that was formed by Lozano himself in April 2008.
Americans for Energy Independence is registered with the Texas Ethics Commission, but a general purpose political committee like Americans for Energy Independence is supposed report its political activities in January and June of every year at a minimum.
And it is also required to report any contributions or expenditures related to an election on the 30th and 8th day before that election.
Cobos too busy with swine flu to explain
In January, the PAC’s current treasurer, David Luevano of 12628 Tierra India Way, reported to the ethics commission that it had the same $3,019 it has had since 2007.
But the PAC failed to file its 30-day report on April 9 along with other PACs and candidates across Texas even though candidates in El Paso and Horizon City reported receiving contributions from the PAC.
“It is a state regulation that if a general purpose committee has activity with an election, they are required to file pre-election reports.” said Texas Ethics Commission spokesman Tim Sorrells, who is also an attorney for the agency.
The PAC has to show where its money is coming from and going, he said.
Reached on his cell phone Wednesday, Cobos said he didn’t have time to discuss the PAC and but he spent a good deal of time explaining why.
“I don’t have time for your question because of the swine flu thing,” he said, going into detail about a meeting planned Friday. “Usually, I would answer your questions but I am dealing with much more important issues right now, the swine flu.”
The current campaign treasurer of the PAC is sill David Luevano, whose wife, Yudith Luevano, is the administrative assistant to city Rep. Eddie Holguin.
It is a curious twist that Holguin has expressed support for city Rep. Emma Acosta in her race against Lozano while Lozano is betting is strongest financial support from a PAC whose treasurer is the husband of Holguin's assistant.
Luevano could not be reached for comment this week but when NewspaperTree.com reached him last month, he refused to provide any information about himself, the PAC or its purposes.
“I’d better not answer that question,” he said when asked what he did for a living.
A Fabens man, Jaime Avelar, who has also served as a past treasurer of Americans for Energy Independence, was more forthcoming.
He said the PAC was supporting a candidate in the 2007 Horizon City election but he could not remember which candidate that was.
He said he wasn’t in charge and it was only his job to write the checks he was told to write.
Asked if he received his instructions from Cobos’ office, he said, “Yeah, that’s where it came from. It was through Cobos.”
Cobos’ PAC in Horizon City politics
The PAC’s political involvement in Horizon City’s 2007 election led to a complaint to the Texas Ethics Commission, that it failed to disclose just under $2,000 in “political expenditures for three different campaign flyers that supported candidates” in the election.
Avelar was the campaign treasurer at the time, and the PAC was fined $300 for the offense.
In the 2000 census, Horizon City was found to have a population of about 500 residents. But in the nine years since, the town just beyond El Paso’s eastern boundary has grown to about 15,000 and has a $2 million budget.
In this year's election, the Americans for Energy Independence PAC contributed $400 to mayoral candidate Donald Smasal, who is attempting to unseat Mayor Walter Miller. Smasal resigned as a council alderman last year to run for mayor.
The $400 in-kind contribution of signs and flyers was the only donation Smasal reported receiving in a city where most campaigns involve only a few hundred dollars, if that.
The same $400 in-kind contributions for signs and flyers were also reported by Place 2 alderman candidate Ronald Kelley, Place 3 candidate Tony Aguilar, incumbent Place 5 Alderman Charlie Ortega and incumbent Place 7 Alderman Bill Armas
Neither Smasal nor Kelley could be reached, but NewspaperTree.com did reach Ortega who, on Tuesday, remembered getting a telephone call from someone with the PAC.
But, he didn’t remember who he spoke to, and he didn’t think he had received a contribution from the PAC.
The campaign finance report NPT obtained on Thursday for Ortega showed he reported the same $400 in-kind contribution of signs and flyers the other candidates reported.
Appeals court settles one controversy
One of the biggest political controversies involving the Horizon City Council had to do with a major subdivision of about 250 acres whose owners asked to redesign the subdivisions layout in 2008 because lots weren’t selling.
The city’s mayor, Walter Miller, said it was the city attorney’s opinion that the subdivision would have to be completely replatted and sent through the approval process again because of the redesign.
But the council disagreed and approved the redesign anyway. When Miller vetoed the council’s action, the council overrode the veto.
Miller said he didn’t know if the disagreement over the subdivision is the reason behind the contributions form Cobos’ PAC.
Another controversy is brewing in Horizon City over the lawsuit Miller’s opponent, Smasal, filed against him and the city clerk asserting that Miller’s election would violate the city’s term limits.
Miller has been elected to four terms as an alderman but resigned before completing his fourth and final term and announced his candidacy for mayor.
Before filing for re-election Miller said he opened the question of his eligibility, and the council, rather than using the city attorney, sought the opinion of a private law firm specializing in municipal affairs.
Miller concedes that the city charter language is ambiguous on the subject. The question is whether an individual is limited to serving four, two-year terms in office, regardless of which office or if it means a person can serve four terms as alderman and four terms as mayor.
The legal opinion, based on Horizon City’s charter, was that Miller would not violate the city’s term limits if he were elected to a second term as mayor.
But Smasal filed the suit anyway and is seeking a writ of mandamus on an emergency basis to decide the issue from the state’s Eighth Court of Appeals in El Paso.
Today, the appeals court denied Smasal’s request for a writ of mandamus ordering Miller’s name to be taken off the ballot.
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To reach David Crowder write to dcrowder@epmediagroup.com or call (915) 351-0605, ext. 30