SEC’s Wagner accused of discrimination
What began as a formal business meeting on Monday, Dec. 28, with technicians going over past and future growth within the Socorro Electric Cooperative system, transformed into a rally against trustee Charlie Wagner.
After an extensive review of infrastructure improvements, co-op accountant Kathy Torres made the announcement that Wagner had sexually harassed her during a Dec. 18 teleconference concerning the filing of the 990 IRS form. The 990 form details compensation and spending for trustees and key employees of non-profit organizations.
Wagner disagreed with some of the numbers on the form and had refused to sign it.
“There were comments made by trustee Wagner that were sexually discriminating,” Torres said.
Torres also said there was a second employee who made similar complaints, and asked for the trustees to go into executive session to discuss the personnel matter.
Everyone who was not involved was asked to leave the building during the executive session.
Approximately 30 minutes later, the meeting went back into regular session.
The meeting was wrapped up with the approval of minutes from the prior meeting and various other reports.
The board also finalized the hiring of Dennis Francis as SEC attorney, although President Paul Bustamante said the decision had not been made during the executive session from the last meeting.
Bustamante chastised Wagner for telling the news media about the topic of the last executive session.
“There was no hiring of a third attorney,” Bustamante said. “It was not to be mentioned — out of fiduciary responsibility — to the paper.”
Bustamante said the board would look into disciplinary action toward Wagner, due to the breach of secrecy.
Wagner asked for clarification concerning the SEC’s relationship with the other two attorneys: Joanna Aguilar and Paul Kennedy.
“There was never no other contracts with the other attorneys,” Bustamante said. “They will assist Mr. Francis as needed … if they need to be utilized in the future.”
When Wagner asked why the SEC needed so much legal representation, Bustamante replied, “We need to have an attorney for you, Mr. Wagner. Attorney fees have increased since you have been onboard.”
The meeting began with a detailed study about beneficial electrical infrastructure projects from head of engineering Richard Lopez, with the help of a consultant from Texas-based SGS Engineering.
Past efforts to reduce electrical losses and increase system capacity were explained in detail, along with a proposed $21.8 million project for the next four years. All of the work, including the construction and upgrade of four substations, has allowed the SEC to provide better service to new and existing customers, reduce costs, and lessen outages resulting from wind and inclement weather.
“We were very, very busy the last four years,” said Lopez. “We’ve taken a co-op that’s aging and bringing it to the modern ages.”
Current substation capacity is less than 50 percent, which allows room for substantial customer growth.
Lopez also reviewed an ongoing project that will allow a substation at Quemado to provide service to Pie Town and cut the existing line from the Magdalena substation in half.
The current service line that runs west from Magdalena is one of the longest in the United States, which makes it susceptible to electric losses and outages.
The project is scheduled to be finished in late 2010, and will help reduce nearly $9 million in electricity losses over a 35-year period. After funding for the project is considered, the overall savings will be $7 million.
Lopez stressed that if no work had been done by the SEC the last four years, the system would have been near capacity and unable to handle projected growth.
After Lopez reviewed the future work plan, trustees considered a proposal by Socorro insurance agent Michael Olquin to represent the SEC as the bargaining representative for health insurance.
Olguin said despite pending health care reform, “There is no denying that the cost of health insurance will increase.”
Olquin said he would try to control costs without a loss in benefits.
Wagner said he was against the co-op considering only coverage from Presbyterian Healthcare Services and that he thought coverage from the National Rural Electric Cooperative Association would be more cost effective.
“I’m not wedded to Presbyterian,” said Olquin. “My obligation is making sure I take care of my clients.”
General Manager Leopoldo Pineda pointed out that NRECA coverage had increased 18 percent in the last year.
“We dealt with NRECA for several years, and they got so expensive we had to change,” noted trustee Juan Gonzales and added that Wagner had once been an insurance sales representative for the NRECA.
Wagner made a motion to approve Olquin as the new co-op insurance representative, which was seconded and passed unanimously. Olquin will replace AON Consulting.
Contact Ether Ashe