The Kaua‘i Island Utility Cooperative board of directors approved changes to its policy this week that will allow for greater public access to cooperative information. In a 7-2 vote, the board affirmed the member right to obtain routine company documents
The Kaua‘i Island Utility Cooperative board of directors approved changes to its policy this week that will allow for greater public access to cooperative information.
In a 7-2 vote, the board affirmed the member right to obtain routine company documents without having to fill out a special request form.
The most controversial change, however, concerned providing lists of members and their mailing addresses for specific uses.
Board Policy 16, which deals with access to cooperative information, formerly stated that member lists could only be released for “proper KIUC business purposes.” It also stipulated that KIUC’s chief executive officer had the right to deny requests.
Now, as a result of Tuesday’s vote, member lists will be made available to members for purposes of:
• Allowing properly nominated candidates for the board to solicit votes.
• Obtaining signatures on a written notice of a special meeting of the members.
• Obtaining signatures on a petition for member approval of certain actions.
The updated policy also requires that KIUC provide the names and addresses on mailing labels if requested. The information will not be available electronically.
“I consider this a step toward transparency — not even a full step, but it’s a move in the right direction,” board member Carol Bain said.
Bain, who introduced the changes to the Policy Committee five months ago, has argued that KIUC members have the same right to co-op information as shareholders of a corporation.
While the amendments now bring the board’s policy into compliance with state law, there was hesitation among some members as to whether it would violate member privacy.
During the meeting, board members Phil Tacbian and Derek Kawakami expressed concern about the ramifications of releasing such lists.
“It’s not in our scope of business to give out member information,” Kawakami said.
But attorney David Proudfoot, the board’s legal counsel, said the Public Utilities Commission sees it differently.
“You have to give your members the member list for such reasons,” Proudfoot said. “If you take (the section) out, you will be subjecting yourself to a lawsuit, and you will be wrong.”
When asked what recourse members have if they wish to keep their information private, Proudfoot said they should petition legislators to change state law.
Both Proudfoot and Bain cautioned that the lists are only available for specific uses, and requests must be submitted in writing.
Addressing the dissenting board members, Bain said, “One or two years will go by, and you’re not going to see the deluge of your worst fears.”
Bain, who was elected to her first term in March 2007 on a platform of open government, proposed the Policy 16 updates following her own difficulties obtaining public information from KIUC.
As a candidate for the board in February, Bain requested member lists for certain ZIP codes so she could contact members and ask for their votes.
After CEO Randy Hee and the KIUC board denied her request, Bain contacted the state attorney general and the Public Utilities Commission, citing Hawaii Revised Statute 414D, sections 301 to 305.
Deputy Attorney General Hugh Jones subsequently contacted Proudfoot and explained that state law granted Bain access to the information.
“That struck home,” said Bain, who received the list seven days shy of the election.
Had she not been elected, Bain said she would have petitioned for a special member meeting to address the issue — another member right that may not be widely known, she said.
“It’s not only educating the members, but our own board members who were not fully aware,” Bain said.
KIUC policy changes
Policy 16 concerns access to cooperative information. Tuesday’s changes include:
• Permitting audio recording of non-executive sessions of the board by credentialed media; previously, the board had the power to prohibit such recordings.
• Public testimony may exceed three minutes with board approval.
• Documents available to members without a request form include: rate schedules, rules and regulations, bylaws; policies, KIUC’s annual report, KIUC’s IRS form 990 for the last three years, as well as a list of current officers’ and directors’ names, businesses and home addresses.
• Access to KIUC’s accounting records for a proper purpose, as defined by Policy 16.
• Member lists for qualified persons for a proper purpose, upon signing a confidentiality agreement and completing a written request for information.
KIUC board policy is available online at www.kiuc.coop, though changes to Policy16 have not yet been posted.
