Taos History: Fred the Fox is in the Henhouse

By: Bill Whaley
29 May, 2014

No Rest for the Wicked!

Call him Fast Fred or Father Fred but El Peralta is On the comeback trail. Those who ignore history are condemned to repeat it. No wonder folks say “nothing ever changes. “

At Tuesday night’s Town of Taos meeting, Manager Rick Bellis said Councilor Peralta had been appointed to the audit advisory committee and praised the former mayor because of his historical knowledge. Father Fred himself said, “we need to keep ourselves from doing the wrong thing.”

During the evening Fred also said, “I’m not an actor.”

But, I dare say the venerable Fred, who has transformed himself from “Fast Fred” to “Father Fred,” is quite an actor. The Mayor and Council also nominated  Father Fred to serve on the Holy Cross Hospital Board, where he was unanimously approved by the insider members, according to The Taos News.

It’s déjà vu all over again.

While the current Mayor and Council cope with a disintegrating and mysterious roof problem at the swimming pool, due to poor designs and faulty humidifier equipment et al, or while the community scrutinizes Holy Cross Hospital, one might just consider the appointment of the former Mayor as a way to “cover-up” past peccadilloes and appease the naive believers.

According to the record, Fred was allegedly responsible for not following the procurement code or “request for proposal” process and violating rules and regs when the Town built the swimming pool. He had lots of help from Slick Gus Cordova, former town manager, as well as a compliant council, staff, and a number of naïve community do-gooders. When Councilor Gene Sanchez mentioned the lapse, the Town hired attorneys to investigate the councilman.

Then Fred, along with former HCH manager Kean Spellman, helped the HCH board and administration try to bust Union 1199, while running roughshod over medical staff and employees in general. Ultimately Fred, as president of the board, and Spellman et al lost the case filed by the Union 1199 when the NLRB held hearings in Taos. But the damage to community relations never healed. Now Fred is back to rub salt in the wounds.

If Gabe “The Good” Romero, chair of the Taos County Commissioner is watching the Town doings with a jaundiced eye, it is because he, too, has seen this nonsense before. Might be time to pull the lease out from under Taos Health Systems.

The Bad Swimming Pool

Excerpt Oct. 15, 2004, Horse Fly

Town Correspondence:
Creative Bureaucrats

What RFP?

By Bill Whaley

“The Town of Taos follows the state procurement code, Open Meetings Act, and Public Records Inspection Act, but whimsically. Horse Fly has detailed issues of non-compliance with regard to the landfill site in past issues. The town did not issue an RFP—allowing for competitive bids—when it renewed its contract, a contract worth millions, with Waste Management for five years at the beginning of 2004.

In excerpts from the Horse Fly’s copy of an original June 10, 2002 memo, we see more evidence of what appears to be creative legal interpretation. In this memo, Town Attorney Tomas Benavidez instructs town Finance Director Uvaldo Mondragon on the proper way to handle a $2 million donation from an anonymous artist for the proposed swimming pool (a $2.5 million project using public and private funds).

Horse Fly has a copy of the original memo. The incident occurred during “Fast” Fred Peralta’s tenure as mayor. Slick Gus Cordova, then as now, served as town manager. Shortly thereafter, Mr. Mondragon left the Town of Taos for private practice. Who can blame him?”

(Editor’s Note: 5/29/14: The Town tried to lay responsibility for dictating the selection of the architect and violating the RFP process on Agnes Martin, who they allegedly “coerced” into signing  her name or was it her caretaker’s?)

“Memo

In the memo from Benavidez to Mondragon, it states:

“The donor in this instance specifically requests by the terms of the gift that the money not be considered public money by requiring the money to be set up in an account outside of the municipality’s general fund, (and) that the Town can not draw on the monies for the swimming pool without a counter signature of the donor’s agent. The anonymous donation requires that Gorge De la Torre Architects oversee the designing and building of the project.”

NMSA 1978, 5-4-7 states that money be placed in a municipal account unless otherwise provided by the terms of the gift. In this instance, the anonymous donor required that the funds not be subject to procurement and required that the funds be placed in an outside account with the donor’s agent control over the monies until the pool is built and accepted by the Town.

“This agreement will not be attached to protect the anonymity of the donor and is considered a confidential document of the Town protected attorney/client privilege.”

The Agreement

Horse Fly has obtained a copy of “This Agreement.” The letter below, written on town letterhead, signed by Town Manager Gus Cordova and Town Attorney Tomas Benavidez, dated Sept. 17, 2001, constitutes the agreement between the anonymous donor and the town. Apparently, the town takes the position that an anonymous donor can propose modifications to the state procurement code, which generally requires that projects involving public monies go out for RFPs (Request for Proposals) in order to allow competitive bidding.

Competitive bidding saves taxpayers’ dollars, avoids issues of favoritism and corruption, and assures citizens that they have recourse in the event that a contractor doesn’t fulfill his obligations. We couldn’t find an exemption in state statutes for anonymous donor conditions. The swimming pool project involves public and private monies.

At the time the agreement was signed, Fast Fred was mayor, Slick Gus, the manager, and, of course, Benavidez, the attorney. Incumbent mayor, Bobby Duran, was a member of the town council. Cordova and Benavidez evidently wrote and signed the document. The donor allegedly signed the document but the signature was blacked out.

Horse Fly obtained a copy of the original with signatures of town officials. The document shows no sign of having been notarized. Excerpts are reproduced below.

“Dear [Donor]:

“This letter is an acknowledgment of receipt of your donation of an additional amount of One million dollars and no 100s ($1,000,000.00) to be added to the One million dollars and no 100s ($1,000,000.00) you donated to us on March 14, 2001 for a total of two million dollars and no 100s $(2000,000.00) [sic].”

“This letter further acknowledges and the Town accepts and agrees to the conditions of the donation as follows:

1. That the Town accept the donation and place it in an independent interest bearing account with a counter signatures for withdrawal of the Town Manager or Mayor, the Town Finance Director and [“The Donor’s”] ________________ counter signatory authority is to assure the monies are spent on the swimming pool and not to oversee the details of construction of the swimming pool. Pursuant to NMSA 1978, 5-4-7, Disposition of funds received by gift or bequest, which states as follows;

Money received for such purpose, unless otherwise provided by the terms of the gift or bequest shall be deposited with the treasurer of such municipality or county, to the account of the playground and recreation board or commission or other body having charge of such work, and the same may be withdrawn and paid out by such body in the same manner as other money appropriated for recreations purposes.

“3.That the money that is the subject of this Agreement which shall be used for design and construction of the recreational pool is not public money and therefore shall not be subject to the procurement code or federal or state wage rates acts in order to achieve as efficient and timely built operational recreational pool for the community; “(Emphasis Added)

“4. That the funds be expended and the building be complete no later than the of December 31, 2002; and if not substantially completed by that time funds will go to Taos Community Foundation.

“5. That the Town reserve and set aside sufficient property at the Youth and Family center area to be dedicated for the preparation, erection, construction, and maintenance of a recreational pool;

“6. That Gorge De la Torre shall be hired as the project manager to oversee a design-build project;

“7. That project manager be given the authority to negotiate and hire sufficient professionals to design and build the recreational pool;

“8. That, the Town, by this Agreement, allow easement in and upon the property known as the Youth and Family Center for all purposes consistent with the site preparation, erection, and construction of the recreational pool until completion of said project;

“9. That, at the completion of said pool to the donor’s satisfaction, the structure known as the recreational pool shall be donated to the Town of Taos in perpetuity to be operated and maintained by the Town;

“10. The Town acknowledge that these funds will be used towards the design and construction of a two million dollars ($2,000,000.00) recreational swimming pool;

“12. That this is an anonymous donation and that the donor will not be disclosed to the public.”

So when you put Fred in charge of audit, he’ll know how to cover up the “findings.”

Fred and Holy Cross

Below is a letter from local community leaders and Taos County Commissioners urging President Peralta and the HCH board to cease and desist from declaring an impasse i.e. return to the bargaining table with the union.

Horse Fly Editorial, Oct. 15, 2002

“Talk to ‘em, don’t handcuff ’em”

Horse Fly, like the community leaders below, is concerned about the way the Holy Cross management and board of directors ignores the rights of health care workers at the county-owned hospital. After the letter of union support, below, was posted on the union’s bulletin board at the hospital, management forced union representatives to remove it.

At press time, the Town of Taos, once again, asked the municipal court for a continuance in the trial of two alleged union trespassers at the hospital. It seems the hospital and the town have violated union members’ constitutional rights: free speech and the right to a speedy trial.

When the hospital creates a hostile atmosphere for negotiations (and doesn’t provide adequate health insurance for some its workers), why should tax-payers and donors support management and a board composed of local citizens who refuse to listen to their neighbors?

August 21, 2002

Fred Peralta, Chair.
Holy Cross Hospital Board
397 Weimer Rd Taos, NM 87571

Dear Fred,

We would like to express our concern regarding the current standoff in contract negotiations at Holy Cross Hospital. Attempts at mediation have been unsuccessful and no negotiation sessions are currently scheduled.

As you are aware the situation between the Hospital and the Union has been highlighted in the local press for many months now. It is our understanding that the National Labor Relations Board will hold a hearing on October 8, 2002, to hear unfair labor practice complaints that go back as far as one and a half years. We are also aware of the fact that two Union representatives were arrested in the Hospital cafeteria recently and a municipal court hearing will be held soon on that case. It appears that the situation has escalated to the point of no return. We are concerned that hard earned taxpayer dollars are being squandered and we believe that resources would be better spent on resolving the issue.

We support the workers right to union representation and their right to fair and good faith negotiations. We believe that all workers have the right to dignity and justice on the job. We believe that all workers have the right to a fair and decent wage. We encourage you as the chair of the hospital board of directors to intervene in the situation in an attempt to resolve it as quickly as possible not only for the benefit of the workers but of the community as well.

Sincerely,

Signed:

Carlos Cisneros, State Senate # 6
Roberto “Bobby” Gonzales State Rep. # 42
(Taos County Commissioners)
Rebecca S. Parraz
Gabriel J. Romero
Virgil D. Martinez

Below, in the interests of entertainment, I focus on the tyrannical measures implemented by President Peralta and CEO Spellman of HCH. (I wrote about this unholy hospital for months.) Indeed, the Mayor sent in the cops to handcuff and arrest union workers. He put them on trial in Judge Dickie’s court. It was like something out of an early Dashiell Hammet novel or a Jeff Northrup sign man tale. Here’s an excerpt of what to expect with Father Fred on the HCH board.

(Sept. 15, 2002, Horse Fly)

“The Incident”

It was noon on August 15. The sweat slipped down beneath my hatband and dripped off my nose. I leaned back in my chair at the office and read the news about a new Washington, D.C. based barbershop quartet called Bush, Cheney, Rumsfeld & Powell, who couldn’t sing in harmony. The phone rang. A voice said, “This is Debbie from the union in Albuquerque. Eleanor (the Albuquerque union organizer) and Melissa (head of the local) are at the hospital cafeteria. Eleanor says to call her cell.”

“Hello.”

“Eleanor, What’s up?”

“They said if we didn’t leave, they’d arrest us.”

“For what?”

“The head of security or something said I had a bad attitude.”

The downtown streets in Taos smoked in the 95 degree heat. People move to Taos because of the beauty of the southwestern sunsets and the pastoral appeal of the adobes, the lilacs, and the high desert breezes. But today the town felt like a sagebrush jungle. My rusty Bronco sputtered and died and sputtered at stop signs. The traffic backed up at the corner of Civic Plaza Drive and Placitas. While I waited for an opening, I bought a copy of our award winning local weekly from the news hawker.

The full page house ads in the award winner shamelessly promoted the fusion of real estate and relocation, news in the language of public relations. The good old boys had figured out how to package Taos all wrapped up in the muted colors of artist Ed Sandoval’s palette. Holy Cross Hospital CEO, Kean Spellman, was president of the local chamber; publisher Chris Baker of the Taos News was vice president; KTAO’s sun king, Brad Hockmeyer, the man who sold solar energy, served on the chamber’s board. The chamber and the Visitor’s Center got a big piece of their budget, 88%, from the town. The courtesans knew how to genuflect when the emperor appeared, dressed or not, at ribbon-cutting ceremonies. But as we know, the fly in the ointment could be the man from Cerro.

My turn came, and I entered the stream of tourists headed for the Plaza. At last I made it to Ranchitos, turned left on Salazar, crept along under the hot sun toward Holy Cross Hospital. I turned left on Canon West, and noted the town’s emerging commercial district. Finally, I arrived at the hospital.

A cop car sat in the no parking zone by the front entrance to the hospital. As I entered the hallowed health care halls, I heard a receptionist say, “May I help you sir?”

“I’ve got to see somebody down here,” I said, after spotting the cafeteria sign. Inside the cafeteria, the two union reps, Melissa and Eleanor, sat quietly at a table, accompanied by another woman. Sgt. Eddie Lucero, a Uniformed Town Cop, stood over the two women, speaking quietly. The tables were packed with diners.

“Who are you?” Lucero asked me.

“I’m with the press. Horse Fly.” Nobody laughed.

“Stand over there,” he said. “I’m conducting an investigation.”

A hospital official waved and invited me to sit down at a table in close proximity to what she referred to as “The Incident.” A short stocky Anglo fellow in a white t-shirt and a ball cap, wearing a big rodeo belt buckle, asked me what I was doing. I told him and asked him for a name, but he refused to identify himself. Later I found out they call him Larry Pancake. He’s general manager of Avalanche Protective Services, Inc., a security company that works for the hospital. The in-house head of security and director of engineering is Paul Jones, a tall thin dark man.

Pancake and Jones? Was all this really happening? Nurse Emily Romero, who had joined our table, said, “I can’t believe what’s happening.”

A female officer had arrived. She and Sgt. Lucero bent the arms of the two union miscreants behind their backs and locked them up in chromium handcuffs. Melissa Montoya, the president of the local, protested loudly. They were marched out ignominiously. Sgt. Lucero said the two women were charged with “criminal trespass.”

As Eleanor Chavez, the union rep from Albuquerque, was led off in handcuffs, she said, facetiously, “I complained about the food.”
I got back in my beat up Bronco and beat it back to the office and wondered where the hell the mayor was.

CEO Spellman issued a press release saying, “It is unfortunate that Melissa and Eleanor must stoop to grandstanding techniques in our hospital in order to keep things stirred up with the employees here at Holy Cross Hospital. This once again, appears to be yet another strategy of Union 1199 to gain public sympathy.”

The hospital also alleged that the union folks may have been involved in violation of Article 12 of the Contract with the Union. (The contract expired at midnight on June 1.) According to Article 12, Section A, “The Director of Human Resources or her designated representative, shall be notified before the Union representative enters the Hospital and shall be informed of the reason of the visit.” That provision was part of a 1980 contract with the health care workers’ union. Worse yet, the hospital says, “the two union representatives made several rude comments in response to Jones’ questions.”

Chavez says she entered the hospital on similar occasions and experienced the pleasures of dining in the cafeteria, where she was observed but ignored by management. She and Melissa were booked and released, bailed out for $155.

Judge Chavez’s Courtroom

At municipal court, the Honorable Richard Chavez entered the packed courtroom at 8 a.m. on August 20, five days after “the Incident.” Judge Chavez read the defendants their rights. The defendants, Eleanor Chavez and Melissa Montoya, were charged with “criminal trespassing.”

The police statement of probable cause says Paul Jones had charged the two alleged lawbreakers because he suspected them of “union activity.” The Judge said that the two defendants could be fined up to $300 plus costs of $17 and stashed in the county lock-up for 90 days. A labor attorney represented the union leaders, and both Chavez and Montoya pleaded “not guilty.” The judge said he would set a trial date within 30 days.

The whole proceeding lasted a few minutes. Afterwards, union leaders from Albuquerque, a bevy of supporters, union members, and members of the press spilled out of the courtroom. The local union distributed a press release:

“We the 1199 Union members and Holy Cross Hospital employees are outraged by the recent and unlawful arrest of our Union representatives Eleanor Chavez and Melissa Montoya in the hospital cafeteria. They were there to eat lunch and respond to questions asked of them. They were not there on official union business and they were not disrupting any work activity.

We feel that these individuals were being discriminated against in an ongoing and shameless effort by the Hospital administration to discredit 1199 Union Leadership since Contract Negotiations began in May. We the union members are both appalled and weary of the false accusations, the repeated defamation of character and slanderous accusations of these two individuals. It has become apparent to us that these have all been union busting tactics on the part of this most unprofessional administration, who had no intention of negotiating a contract with Union 1199 in good faith.”

(Editor’s Note: Fred helped make hash out of community relations and increased tension between HCH and staff. I’m sure President Ron Burnham welcomed him with open arms. So it goes.)