||| FROM MICHAEL RIORDAN |||
While I was away at a physics conference in early April, I was dismayed (a better word might be “appalled”) to learn that Carol Ann Anderson had been removed from her position as EWUA Secretary/Treasurer by a majority vote of its Board of Directors. At a special board meeting called to
review the bylaws amendments, Michael Cleveland offered a motion to remove her, which was immediately seconded by President Teri Nigretto, among others (according to attendees). And four board members — Cleveland, Nigretto, Vice President Jim Nelson and Leith Templin — then
voted in favor of the motion.
But nobody seems to have thought too much about Anderson’s replacement as Secretary/Treasurer. And an important position it is, overseeing all financial aspects of the Association. According to the current EWUA bylaws in effect, that includes the crucial responsibility to “supervise the General Manager’s maintenance and safe custody of all funds, records, properties and membership records of the Association.”
This has proved an impossible task since the March 19 board meeting, in which Anderson introduced a petition signed by her and board members Ron Claus and Jim Cook to recall Cleveland, Nelson, Nigretto and Templin. After that, she could not get General Manager Dan Burke to return her emails. This has become a patently dysfunctional board of directors.
Anderson brought consummate skills and experience to the position, having worked in procurement and project management at Bechtel, Inc. — one of the best in construction management. Nobody else on the board comes close. These skills are very much needed as EWUA has taken over management of other water systems in Doe Bay, Olga and Rosario, boosting annual revenues to over $2 million.
Appropriate accounting systems and financial controls must be put in place to accommodate the added workload and cash flows, making sure that income and expenses are properly allocated. Accounting for major capital projects like the Clark Well water-treatment system must also be done correctly, keeping financial records separate from the general ledger.
But what one former, disgruntled board member has dubbed “the cabal” has ignored these needs and voted vindictively — and shortsightedly — to oust Anderson as Secretary/Treasurer, opening a gaping hole in the management structure. Financial oversight of the general manager is now virtually non-existent. And he has little experience in non-profit organizations or project management. This is a troublesome state of affairs.
The EWUA board named Templin to fill the shoes left empty by Anderson’s ouster, but I cannot imagine her bringing similar management expertise to the table. And the petty vindictiveness being displayed by the board majority is definitely not in the interests of the EWUA members they were
elected (or, in one case appointed) to represent. Its actions only confer ever more power to the general manager and staff — one of whom has apparently taken over the Secretary’s mandated responsibility of generating the meeting minutes.
“In my twenty years working with Group A and Group B water associations, I have never observed such a dysfunctional board,” wrote my partner Elisabeth Britt in a recent email. “And I’ve worked with hundreds of associations.”
How long can this dismal situation persist?
You might not like the action taken by the duly elected board of directors but from all accounts they are acting well within their purview. This is the way representative democracy works; the electorate votes and the elected people make decisions on our behalf. You are free to dislike those decisions but if you think you know better, the appropriate response is to run for the office yourself next time a seat is available.
The persistent ad hominem complaints about board members serving our local institutions has a chilling effect on community members that might have considered offering their experience and time but have no desire to be a volunteer punching bag for the perpetually disgruntled.
One of the problems related to locals volunteering for unpaid positions on local nonprofit boards is the lack of understanding of the role of oversight of the management of the organization that a board has. Some boards have wisely undergone board training programs to address this problem rather than descend into petty bickering and a culture of secrecy.
Ken, there is another component at work here called “the free press,” which allows citizens like Michael to write and publish critical essays like this one. Your words here seem to imply that you would prefer that people should simply run for positions or keep their figurative mouths shut.
I would certainly agree that ad hominem complaints about board members or others serving our institutions are distasteful, and I’d rather see only measured and reasoned analysis like those provided by Dr. Riordan, but there is still this “free speech” aspect to American tradition and our Constitution.
Fred Klein is surely correct regarding the potential role of unpaid positions on our local nonprofit boards. Everyone who signs up deserves at least a gold star, considering how much work and occasional contention might be involved. But a Board that’s not willing to criticize, evaluate and audit those they are supposed to be supervising will be an ineffective Board, and if it’s easier to rubber stamp whatever comes up as business, then members should not have signed up for duty in the first place.
I am dismayed by the board’s decision to remove Carol.
Mr. Wood may not be aware of all the recent turmoil at Eastsound Water, beginning with the March 19 Board meeting, which I recounted in my previous Orcasonain article about EWUA but was not linked in the above article. So here it is again:
https://theorcasonian.com/a-tumultuous-ewua-board-meeting/
The Board majority is obviously retaliating against Carol Anderson for introducing a petition to recall the four of them, which was based in part on her inability to obtain financial and other information required to do her job as Secretary/Treasurer. Instead of supporting her in these valid requests, they chose to oust her from this all-important position. Their ill-considered action gives additional support for the need for such a recall effort. As elected (and appointed) representatives of EWUA Members, their first priority should be to represent our interests. That’s the essence of representative democracy, Ken. But I cannot see how the removal of such a capable officer can be interpreted as anything other than personal retaliation — which is most definitely not in the best interests of EWUA Members.
A Tale of Two Treasurer Positions (EWUA vs a Functional Nonprofit Board)
My Experience as Treasurer for a Nonprofit K-5 Independent School
When I was treasurer for KapKa, a nonprofit cooperative K-5 independent school in Seattle, I had access to all financial accounts and records so I could provide proper oversight of the school’s admin team. Having access to all books and records also allowed me to write financial and logistical models for the school. I then applied mathematical optimization techniques to these models for neat things like determining the minimum amount of tuition necessary to ensure the school’s current and future financial needs were met. I also redesigned their financial aid system to ensure stability for returning families. I provided the board with monthly financial reports, wrote an annual financial report for the community and hosted a meeting where I explained the financial’s to the families and fielded their questions. The families had the right to know where their tuition and donation dollars were being spent and the reasoning behind the expenditures.
My Experience as Secretary/Treasurer for EWUA
While I was secretary/treasurer for EWUA, the board and GM obstructed my duties as defined by the EWUA bylaws by only giving me access to online banking and nothing else. I was denied access to the books and records. I had no way to verify reports issued by the GM and I was expected to approve payments without having access to invoices or receipts. This is not acceptable.
My insistence on providing oversight was met with bullying and belittling by both board members and the GM essentially trying to shut me down and accept the puppet role they prescribed. They expected this of me despite the fact that three employees had resigned under the GM citing a series of mis-management issues which included accounts of unnecessary and even personal spending.
Then canceled checks written by Dan Burke (the GM) to Dan Burke and signed by Dan Burke (thanks online banking!). led to the discovery that the GM paid himself $13,235 more than the board authorized in 2022 alone
The board’s response to this discovery was to support Dan Burke as he threatened me and the only other board member seeking accountability with lawsuits and threatened EWUA with lawsuits if I continued to insist on performing my duties of oversight. Despite my significant paper trail, the threats issued had their intended effect. I am very risk averse when it comes to finances, especially since I have two school-age children. Lawsuits are expensive and I am not a wealthy retiree with tons of time and disposal income to waste on courts and lawyers. I also was pretty beat up mentally from their bullying and combined gaslighting techniques.
I resigned.
Tenar Hall’s experiences as EWUA Secretary/Treasurer, as recounted above, were largely borne out by a subsequent investigation and report that I did, with reviews by and contributions from Randy Gaylord and Fred Klein. Important supporting evidence came from an official investigation by Acuity Forensics, Inc., paid for by EWUA. Its June 23, 2023 report, in a letter from Tiffany R. Crouch to then Board President Clyde Duke, can be found online at:
https://recallwater.com/wp-content/uploads/2023/08/ForensicReport.pdf
I encourage all interested parties to read this report.
My own confidential report, submitted in December 2023 to the new EWUA Board via President Teri Nigretto, was summarily ignored, stating that they had already dealt with this question and that the matter had been resolved. Its reaction bears out what Ms. Hall has to say about the board above.
Wow. EWUA sounds like a disaster. Good luck with cleaning that hot mess.
I find Tenar’s informed accounts to be truly astonishing and extremely insightful regarding the present situation regarding the management of EWUA.