Candidates question electric board pay

BY WILLIAM MOORE wmoore@gulfcoastnewspapers.com
Posted 11/20/12

SUMMERDALE – Two candidates running for the Baldwin Electric Membership Corporation board are questioning the pay of the current trustees.

Trustees are paid $680 per meeting, according to board president Peggy Vanover-Barnes. According to …

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Candidates question electric board pay

Posted

SUMMERDALE – Two candidates running for the Baldwin Electric Membership Corporation board are questioning the pay of the current trustees.

Trustees are paid $680 per meeting, according to board president Peggy Vanover-Barnes. According to public documents, Barnes received more than $60,000 compensation last year from the electric cooperative. That does not include reimbursements for travel expenses.

The BEMC per diem is based on 1 cent for each electric meter in the cooperative’s system. According to BEMC spokesperson Karen Moore, the penny per meter per diem is the industry standard.

“We looked back 45-50 years, and that’s the way it has been historically,” said Barnes. “It’s adjusted annually in October, it can go up or down, depending on the number of meters. Last October, we got a $5 raise. The year before, it was a $3 raise.”

But per diems do not always go up. Southern Pine Electric Cooperative serves the northeast section of Baldwin County. Its board members only receive $220.65 per meeting

“The board actually lowered their per diem in 2009 when the economy went south,” said Southern Pine president Vince Johnson.

Riviera Utilities is a municipal utility. Board members get $200 per month, the chairman $300.

“They are pretty much donating their time,” said Riviera president Mike Dugger.

According to the Internal Revenue Service form 990, Barnes averaged more than 28 hours per week working on BEMC business. That works out to more than $40 per hour for a part-time job.

“As chairman, I put in a little more time than the other trustees,” said Barnes. “I also get one extra per diem day per month as president.”

That means she is paid $1,360 per meeting. A person making minimum wage would have to work more than a month to earn the same amount.

 

Pending election

While ballots for the trustee election were mailed out earlier this month, the bulk of the voting usually occurs at the BEMC annual meeting. That will be held Nov. 30 at 9 a.m. at the Summerdale headquarters.

Ricky Richerson is running against Barnes, who has been on the board since 1988. Richerson entered the fray over concerns about the switch to smart meters. He didn’t realize the board was paid.

“I always thought ‘It’s community service, isn’t it?’ Then I found out,” said Richerson. “I was stunned when I found out how much the board makes.”

Foley accountant Steven Slaughter is trying to unseat District 2 trustee Joseph Coleman, who is just completing his first 6-year term.

“I wasn’t aware of the pay(scale) but had heard things in my business,” said Slaughter. “I consider it wasteful spending, but we only know what is listed on the form 990. The rest of it we don’t know.”

When trustees go out of town to represent BEMC, they are reimbursed for travel expenses. That can easily run in excess of $20,000 per trustee annually.

“It’s not cost-effective (to pay out that much to board members),” said Slaughter. “People serve on boards as community service. The more I learn, this is not community service.”

Barnes agrees. She says overseeing a corporation with $150 million in annual sales requires time, work and effort.

“This is not community service,” said Barnes. “This is a corporation. We are a quarter-billion dollar business.

“Our members are satisfied with what the trustees do and how much they work. People have to understand that this is a complex industry, and it takes a lot of effort to stay up to date.”