THE VIRGINIAN-PILOT
Copyright (c) 1994, Landmark Communications, Inc.
DATE: Tuesday, November 29, 1994 TAG: 9411290300
SECTION: LOCAL PAGE: B1 EDITION: NORTH CAROLINA
SOURCE: STAFF REPORT
DATELINE: BUXTON LENGTH: Medium: 65 lines
The Cape Hatteras Electric Membership Cooperative, responding to questions from disgruntled members, has released figures showing the utility has paid $61,229.50 so far this year to its attorney's firm.
The fee charged by general counsel Norman W. Shearin Jr. of Nags Head was one of the issues raised after a former manager disclosed in October that Hatteras Electric had paid its accounting firm $434,206 during the past year.
Customers, who also are members of the cooperative, have circulated petitions asking for a public meeting to ask questions about Hatteras Electric's operations. The co-op opened its regular meeting to representatives of the members Nov. 21, and announced that it had hired the public relations firm of Brickell and Associates of Virginia Beach to improve customer relations.
The board of directors has promised to hold a meeting for all members, as soon as is legally possible, to answer questions and explain expenditures.
The public relations firm said in a statement Monday that Hatteras Electric had paid the law firm of Vandeventer Black Meredith and Martin of Southern Shores - where Shearin is a partner - a total of $61,229.50 so far in 1994.
The payment was broken down into three categories: $8,910 for general/miscellaneous matters, $51,819.50 for a transmission line upgrade project, and $500 for land acquisitions.
General services, the statement said, ``included general legal adviceon various matters to the Board of Directors, management, staff and employees; contract review; policy review and revision; attending board and annual meetings; legal advice regarding wheeling and interconnect agreements with NCEMC, and bylaw review.''
The transmission line upgrade services, the statement said, ``included prosecution of condemnation proceedings to acquire substation sites; negotiation, review and revision of contracts for design and construction of transmission line and substations; legal advice to board and management regarding sufficiency of existing easements; bids, contracts, loan negotiations; preparation of loan documentation and opinion letters for multi-million dollar loans and line of credit.''
The law firm was paid $24,320 in 1993, the statement said.
Also answered since the Nov. 21 meeting have been questions about salaries paid to members of the board of directors. The nine members receive $100 per meeting on the island, and $175 for meetings elsewhere, plus mileage. The president of the board, Jack S. Gray, has filled in as an administrator after resignations by the past two managers, and has been paid $17,807 this year. None of the others has received more than $2,200.
The public relations firm said that the cooperative's accounting firm of Johnson and Dooley of Danville, Va., estimated its fees for the Nov. 21 meeting at about $1,458, although it said its representatives went there for scheduled work and not for that specific meeting.
The accounting firm said that Hatteras Electric would not be charged the fees of an attorney at the meeting representing Johnson and Dooley. He was there on the behalf of the accounting firm, and not for the cooperative, said Ronald L. Johnson of the accounting firm.
The cooperative has said that the reasons for increased operational costs include recovering from a major flood and a hurricane in 1993, and work on a planned new transmission line from a delivery point north of Oregon Inlet to Buxton.
Hatteras Electric has about 3,825 members, and employs aboout 20 people. by CNB