Co-op trustee grumbles over bylaws
A court hearing later this month will address the merits of Socorro Electric Cooperative’s lawsuit against its member-owners, challenging the validity of three bylaws passed at the 2010 annual meeting. But it was some of the new reform-related bylaws the co-op didn’t challenge in the lawsuit that District 3 (Socorro) Trustee Leroy Anaya wanted to talk about at the board’s April 27 meeting.
Under the agenda item “Subjects by Trustees,” Anaya complained that the spending limit imposed upon trustees hindered the process of doing business and suggested the bylaw that requires the co-op to use a third-party administer to assure fair elections costs too much money.
Anaya said he felt costs associated with attending to New Mexico Rural Electric Cooperative Association business shouldn’t count toward the $10,000 per trustee limit members imposed on board members last year.
“I don’t think that should come out of that fund,” he said. “We do pay dues (to the NMRECA).”
Anaya caught some guff from District 5 Trustee Charlie Wagner, who was a leader in the movement that saw nearly a dozen reform measures passed a year ago.
Several of the new bylaws aim to curb expenses incurred by trustees, which totaled $482,000 in 2009.
“You’re going to have to sue (the members) again if you want to do that,” quipped Wagner, who is named as representative of the class in a request for class action certification that’s part of a countersuit.
Prescilla Mauldin, who was elected as a reform candidate in District 3 in 2009, had another suggestion.
“All you have to do is cancel your insurance,” she told Anaya.
With the spending cap in place, three trustees, including Anaya, canceled their insurance coverage through the co-op. Jack Bruton, Milton Ulibarri and Dave Wade are the only members of the board who are still receiving health insurance from the co-op.
“I still don’t think it’s right,” Anaya said of the expense limit. “You’re representing Socorro Electric Cooperative.”
Opposing Views
Anaya had more complaints.
“Also, what did the recall election cost us?” he asked.
Anaya was referring to special meeting in District 2 in March when co-op President Paul Bustamante survived a recall vote.
“And then there’s the cost of a third party,” Anaya added.
Wade wondered out loud how much the co-op had to pay for last month’s annual meeting, which was canceled due to lack of a quorum.
“And it didn’t get us a nickel,” he said.
Wagner brought up another new bylaw they still hadn’t addressed.
“One of the new bylaws you didn’t contest in the lawsuit was the two-term limit,” he said.
Wagner said most of his colleagues, including himself, would be ineligible to run for re-election because they will have served two terms by then. Only Aguilar, Mauldin and Donald Wolberg could run for a second four-year term, he said.
That drew a sharp response from the co-op’s attorney.
“That’s your opinion,” attorney Dennis Francish said to Wagner.
Francish told Wagner the clock only started on the bylaw last April, meaning all of the trustees could run two more times.
Wolberg wanted to know if the new bylaws were written down anywhere.
Francish said the co-op was following the new bylaws in principle, but they hadn’t been published yet.
“We’re waiting for the court to make a decision,” he said.
The co-op, under the direction of its board of trustees, filed a lawsuit requesting declaratory judgment and injunctive relief from three new bylaws, all of which call for increased transparency.
The court will hold a hearing on the merits of the co-op’s case against its member-owners on May 18 at the Socorro County Courthouse. The hearing is scheduled for 9:30 a.m.
Other Business
• General Manager Joseph Herrera presented a draft of the 2011-12 budget, which he described as essentially the co-op’s work plan for 2011.
Herrera noted that $500,000 had been allocated for legal fees, since Federated Rural Electric Insurance Exchange notified the co-op it was not covered for some of the current litigation.
Wagner wanted to know how much the co-op had already spent on the lawsuit it brought against member-owners, and attorney Francish said that information would not be disclosed until after the lawsuit was resolved.
Wagner was critical that revenues were not broken down to identify the sources of revenue. Herrera said that could be done and noted that this was only a draft budget.
• The board approved out-of-state travel for Herrera to attend the National Rural Electric Cooperative Association’s annual legislative conference in Washington, D.C., May 2-4, and for Francish to attend an upcoming NRECA seminar in California. Francish, who also represents Continental Divide Electric Co-op, said his costs would be split between Continental Divide and Socorro Electric.
• During the public comment period of the meeting, Paul Stoehr of Socorro asked about the status of refunds due to member-owners because a miscalculation to the rate structure made five years ago caused the co-op to inadvertently overcharge its customers.
Herrera responded by saying the co-op was working with a software provider on getting rebates sent out. He said the reimbursements will likely be sent out this month.
Contact T.S. Last