Conroe ISD’s Board of Trustees has approved outsourcing legal services to Austin-based O’Hanion, Demerath and Castillo, aiming to save on legal costs and enhance collaboration.
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Conroe ISD has taken a significant step by outsourcing its legal services, following the Board of Trustees' approval of a new agreement with the Austin-based law firm O’Hanion, Demerath and Castillo.
A unanimous vote on Tuesday has led to the decision to shift the district's legal services from in-house management to an external provider.
"In recent months, we have collaborated with O’Hanion, Demerath, and Castillo under a temporary contract," stated Karen Garza, Chief Financial Officer for Conroe ISD. "This has prompted us to consider alternative avenues for legal representation. After assessing our requirements, the board has revised its policy to provide us with the option to retain in-house counsel or engage external counsel."
Conroe ISD has entered into a new agreement that will see them allocate $30,000 each month for round-the-clock legal access.
Kara Belew from the firm confirmed to the trustees that the deal features a no-obligation clause. "If we fail to deliver results or meet the required standards, the district has the authority to end the contract at any moment without incurring further expenses," Belew informed the Board during the meeting.
The decision is expected to yield savings of approximately $24,000 per month for the district on non-litigation-related services.
Over the last three years, Garza reported that Conroe ISD has incurred approximately $1.1 million in legal costs. The breakdown encompasses expenses for general counsel, amounting to $234,000; support staff, totaling $141,500; due-process hearings, at $175,000; and real property services, costing $90,000.
Belew highlighted that the firm is diligently overseeing the district’s legal risks. "We are diligently monitoring all ongoing litigation within the district to explore strategies for containment and to mitigate the overall legal risk faced by the district," Garza shared.
Board President Misty Odenweller conveyed her approval of the firm’s performance, stating, "It’s been a much better collaborative environment, and the agreement has worked well for us."
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Conroe ISD will open an application process to fill a vacant board seat following the resignation of Trustee Tiffany Nelson, who stepped down to run for the State Board of Education. Trustees opted for an appointment rather than a special election, citing cost and timing concerns.
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Community groups, libraries, and local venues across the Conroe area are hosting a range of holiday and early-January events, including family-friendly activities, live-music celebrations, and a regional wedding expo.
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Conroe officials approved a $10.6 million budget for the city-owned Hyatt Regency Hotel and Convention Center for 2026, but projections show the property will not turn a profit or meet upcoming debt service requirements, raising continued concerns about the city’s financial exposure.