||| FROM CORY HARRINGTON |||
I am an ex-employee at EWUA. I worked there for 4 years in the role of Billing & Membership Specialist.
All statements below reflect my personal views and consist of verbatim questions submitted to the EWUA Board and the responses received.
Here’s a list of questions that I have recently submitted to the EWUA Board.
After each question is the “answer” I received. Some have not been answered at all.
Decide for yourself if this feels like transparent, accountable, responsible governance and management.
Based on my direct experience and interactions with current staff, I personally believe that working conditions for field operators have deteriorated due to management decisions and inadequate board oversight.
The community needs to speak up for them and protect the people who protect our most valuable resource, the water we drink.
The next Board meeting is Tuesday, December 16, 2025 @5pm, typically held at the OIFR Fire Hall.
Here is the contact information to reach the Board:
General office email – info@eastsoundwater.org
Board President Teri Nigretto email – president@eastsoundwater.org
General Manager Dan Burke email – dan@eastsoundwater.org
Eastsound Water office phone number – (360) 376-2127
If you have any questions after reading this, and you should, please contact EWUA and ask questions until you are satisfied with the answers you get.
Question:
- Legal Expenditures and Related Costs (Since 2022)
- How much money has the Association spent on legal fees since 2022 (including 2022)?
- Of that total, how much represents payouts or settlements to employees?
- How much was paid to or on behalf of the General Manager during his lawsuit against the Association?
- How much has the Association spent on union-related legal work, including contract negotiation, attorney consultation, and grievance responses?
Answer:
Consistent with our obligation to provide members access to accounting and financial information for transparency purposes, all expense and revenue information is available online here, going back to 2011: https://projects.propublica.org/nonprofits/organizations/916055851. These reports show notable expenses. If helpful, I can also provide you with our General Ledger for fiscal years 2022 to 2024, which will list our total expenses for professional services for those years. Should you want additional financial information, please provide the specific good faith reason for needing such additional information. You will understand, given the exceedingly adversarial nature of your resignation (including the open investigation into your misconduct and the literal middle finger you gave us on your way out the door), that we have reason to be concerned about your intended use for these records, and the Association is not obligated to turn over confidential information that may result in harm to the Association or third-parties. Similarly, we are not obligated to turn over documents or information that we are legally obligated to keep confidential (such as confidential employee settlement agreements, which we cannot disclose).
Question:
- Private Property Water Main Relocation (Rosario)
- Why did EWUA pay for the relocation of a water main serving a third-party system, rather than the property owner or Washington Water?
- What were the total project costs paid by EWUA, including excavation, materials, parts, and labor?
- What was the Board’s justification for authorizing EWUA to fund this work?
- Was EWUA reimbursed for any portion of this project?
- Does the $26,447 listed in the 2023 year-end financials under “Third Party System Repair” represent the cost of this relocation?
Answer:
We are not aware of any affiliation you have with this account or project. Nor do we typically disclose this level of information regarding ongoing projects.
Question:
- Board Conduct and Oversight of Staff
- Why are Board members conducting investigations involving staff rather than utilizing an independent HR, legal, or third-party process?
- What EWUA policies or bylaws authorize or limit Board involvement in personnel, disciplinary, or investigatory matters?
Answer:
The Board oversees management of the Association at a high level. As provided by our Bylaws, most operational decisions are made by the General Manager. A copy of our Bylaws is available online for your review.
Question:
- Union Contract Negotiation
- What is the current status of the collective bargaining agreement, and when can members expect a finalized and published version of the contract?
- What is the projected timeline for completion of negotiations?
Answer:
The Association is not obligated to provide this information to you, and given that you are no longer an employee of the Association, it would be inappropriate to do so.
Question:
- Clark Well Project Budget and Timeline
- What was the original Board-approved budget and timeline for the Clark Well project and are there meeting minutes available to support the approval?
- What are the current total costs to date, and what is the projected final cost and completion date?
- Has the Board formally amended or reauthorized the project budget since its original approval?
Answer:
We are not aware of any affiliation you have with this project. If you have any questions about this project, the appropriate forum to raise those questions would be our next Board meeting.
Next question context:
I am submitting the following inquiry regarding the decision to bring in off-island contractor (name omitted) to perform work that appears to overlap directly with the General Manager’s job duties. The scope, authority, and cost of this arrangement raise significant concerns about transparency, governance oversight, use of member funds, and the Board’s responsibility to ensure the Association is being managed both effectively and lawfully.
Based on information shared by staff and observable operational changes, the following appears to be accurate:
- (Name omitted) was offered $75–$95 per hour, which equates to approximately $150,000–$200,000 per year if treated as a full-time operational role.
- He lives off-island.
- He has been issued an EWUA company vehicle, an EWUA gas card, and an EWUA credit card.
- He is functioning in a de facto Operations Manager or Assistant GM role, directing operators, managing field projects, and reporting directly to the GM.
- These duties significantly overlap with responsibilities the GM is already paid to perform.
- None of the existing operators were informed of this opportunity, invited to apply, or considered for promotion.
This arrangement represents a substantial change to EWUA’s staffing model and budget trajectory. It also raises fundamental questions about the GM’s capacity, the Board’s oversight, and the financial sustainability of contracting out administrative leadership at premium rates.
To ensure accountability and transparency, I am requesting written responses to the following:
Questions:
- Who authorized contracting out what appear to be GM-level responsibilities at a cost approaching $200,000 per year?
a. Was this decision made by Board vote, by delegation, or entirely at the GM’s discretion? - Why did the Board not disclose any of this at the Annual Meeting, despite the large financial implications and operational impact?
- Why is the GM’s job now being contracted out, after the Board approved a 65% salary increase over 5 years, specifically to compensate him for managing the workload he created?
- What are the projected GM salary increases for 2026, and how does the addition of an off-island contractor align with the justification for those increases?
- Why is the GM unable or unwilling to perform these duties himself, given that they fall squarely within his job description and the justification for his salary expansion?
- Where is the funding for this contractor coming from?
◦ Was a budget amendment approved?
◦ Is this cost being taken from capital projects, reserves, or operating funds?
◦ Has a long-term cost analysis been conducted?
- Why is an outside contractor being granted access to EWUA vehicles, fuel, and purchasing authority, instead of being required to operate using his own equipment and billing accordingly?
- Why were EWUA operators — some with decades of institutional knowledge — not offered this job, notified of the opportunity, or given a chance to advance?
- What message does it send to staff that the Board is willing to bypass internal talent and replace them with off-island contractors at premium cost, particularly given the Association’s history of strained labor relations?
Answer:
Thank you for your email. I understand your concern, and the Board is certainly aligned in the goal of ensuring that the Association is run efficiently and safely. I can assure you that the Board was informed of the decision to hire (name omitted) as a contractor, and we agree with Dan’s decision to do so. This was a carefully considered choice to bring in someone with this particular expertise that could assist Dan in shouldering some of the managerial responsibility and augment our current staff’s skill set. As our membership grows, it is crucial that he has this infrastructural support in place. And as General Manager, Dan has full authority to make appropriate staffing decisions, such as this one.
Of course, we as a Board monitor the budgetary impacts of such decisions. In this case, (name omitted) time has not resulted in a significant impact to our operating expenses.
Question:
Is EWUA conducting audio or video surveillance of employees at offices, treatment plants, or third-party system facilities?
Specifically:
- Has the Board authorized the recording of audio within EWUA workspaces?
- Have employees, members, or system owners been informed of any such monitoring?
- What EWUA policies govern surveillance, data retention, notification, and employee privacy
Answer:
No answer provided.
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I see that Eastsound Water has been recently hit with fines totalling $14,688 for L&I violations. That money comes right out of the members’ pockets.
Some of the violations are serious, and the pattern of violations is indicative to me of a lack of safety culture in the organization. “Safety comes from the top” is a truism in the workplace safety world – these L&I violations look like a management issue to me.
I notice further that the L&I violations reports were copied to IBEW Local 77. I’m glad to hear our EWUA workers may now have the protection of a solid union.
You can view the WA State L&I reports directly yourself:
https://secure.lni.wa.gov/verify/Details/CitationDocument.aspx?UBI=600517913&LIC=&SAW=&VIO=&InspectionNo=317987637
https://secure.lni.wa.gov/verify/Details/CitationDocument.aspx?UBI=600517913&LIC=&SAW=&VIO=&InspectionNo=317987187
To try to address Cory’s first question and go beyond the EWUA Board’s off-putting answer, I clicked the ProPublica link provided and then hit the button for the 2023 Form 990, which readers can find at:
https://projects.propublica.org/nonprofits/organizations/916055851/202412759349301381/full
For 2023, the total amount of legal expenses came to $101,240 (or almost $8 per member). Scroll down to Part IX on p. 10. And if I recall correctly, that was almost entirely due to two legal claims and settlements thereof — one involving a woman who left EWUA employment due to unfair compensation practices and the other, costing EWUA a lot more, brought by General Manager Dan Burke, who alleged harassment by certain Board members. From a reliable source who requested anonymity, that settlement included about $25,000 reimbursement for legal expenses.
According to another reliable source, the 2024 financial statement, not yet up on ProPublica’s website, involved almost twice as much in legal expenses, but I will leave those expenditures for others to explain.
Thanks Brian…While the $14K+ fine by L&I for safety violations is significant, it pales by comparison to the Board’s granting the GM salary increases of 65% over just a couple of years, purportedly to compensate for increased workload, and then endorsing the GM’s hiring of a deputy to the tune of $150 to $200K per year…neither of these Board decisions appear to reflect proper oversight or adequate representation of the interests of the members of this MEMBER-OWNED cooperative.
And what’s with the GM’s initial budget figure of $400K for the development of the Clark Well…?…and now, after a contract has been awarded to an off-island contractor WITHOUT a competitive bidding process, the figure I’m now hearing is $1.2 MILLION ??
All in all, quite troubling to this EWUA member.
For those who may not be familiar with the regulatory framework, it’s important to understand that EWUA is not a private business. It is a Washington State Department of Health–approved Satellite Management Agency, operating under WAC 246‑295. I am a former Group A water system manager for a system similar in size, and I previously helped found and operate a multi‑county Satellite Management Agency (SMA) on the mainland.
As an SMA, EWUA is authorized to own, operate, or manage multiple public water systems, and it does exactly that across the island. This means its decisions affect not only its own members but also the residents served by the additional systems it manages.
Under WAC 246‑295, DOH requires SMAs to demonstrate:
technical, managerial, and financial capacity
reliable operation of public water systems
compliance with all state and federal drinking water regulations
adequate staffing, training, and safety practices
transparent communication with system owners and affected communities
(Reference: Washington Administrative Code WAC 246‑295, “Satellite System Management Agencies,” Washington State Department of Health.)
EWUA is also part of the island’s emergency response network, meaning its infrastructure and operational decisions directly affect fire response, disaster readiness, and public safety during outages, contamination events, or other emergencies. When a water provider plays this kind of role in a community, it carries obligations that go far beyond those of a private cooperative or private employer.
Another factor the community should be aware of is that EWUA’s performance can directly affect homeowner insurance ratings across the island. Insurance carriers evaluate fire risk based on:
water system reliability
fire flow capacity
hydrant maintenance and spacing
system pressure during peak demand
coordination with local fire districts
history of outages or infrastructure failures
Because EWUA manages multiple systems and supports fire response, its operational reliability can influence the island’s overall fire protection classification. A decline in system performance or safety culture can lead insurers to raise premiums, reduce coverage, or even decline to write new policies. This is a real‑world consequence seen in many rural and island communities.
Because EWUA functions as a quasi‑public utility, it has a responsibility to maintain:
transparent governance
financial accountability
a documented and proactive safety culture
regulatory compliance
responsible oversight of staffing and contracting
clear communication with both members and the broader island population
When an organization manages drinking water, oversees multiple systems, plays a role in emergency response, and influences community fire protection ratings, transparency isn’t optional — it’s a core obligation. That’s why the questions raised by the former employee, and the Board’s responses (or lack thereof), deserve careful public attention from the entire island community.
Sources:
1. WAC 246 295 — Satellite System Management Agencies
Washington Administrative Code governing the approval, responsibilities, and operational requirements of SMAs.
• Establishes SMA purpose and authority
• Defines technical, managerial, and financial capacity requirements
• Requires compliance with state and federal drinking water regulations
• Requires reliable operation of public water systems
• Requires communication with system owners and affected communities
Source: Washington Administrative Code, WAC 246 295 — Satellite System Management Agencies
https://app.leg.wa.gov/wac/default.aspx?cite=246-295
B. Washington State Department of Health (DOH) Guidance
2. DOH — Satellite Management Agencies Overview
Describes what SMAs are, their approval process, and their responsibilities.
Key points from DOH:
• SMAs are approved to own and/or manage public water systems
• Must demonstrate technical, managerial, and financial capacity
• Must ensure reliable operation and regulatory compliance
• Must maintain communication with system owners and communities
Source: Washington State Department of Health — Satellite Management Agencies
https://doh.wa.gov/community-and-environment/drinking-water/satellite-management-agencies
C. Emergency Response & Critical Infrastructure
3. Drinking Water Systems as Critical Infrastructure
Water systems are classified as critical infrastructure under federal and state emergency management frameworks. This supports the statement that EWUA is part of the island’s emergency response network.
Key points:
• Water systems are essential for fire suppression, public health, and disaster response
• Reliability and operational capacity directly affect emergency readiness
Source: Washington State Emergency Management Division — Critical Infrastructure
https://mil.wa.gov/emergency-management-division
D. Insurance and Fire Protection Ratings
4. ISO Public Protection Classification (PPC) System
Insurance carriers use ISO PPC ratings to determine homeowner insurance premiums. Water system performance is a major factor.
ISO evaluates:
• Fire flow capacity
• Hydrant distribution and maintenance
• System pressure and reliability
• Coordination with fire departments
Source: Insurance Services Office (ISO) — Public Protection Classification
https://www.verisk.com/insurance/products/public-protection-classification-ppc/
E. EWUA Organizational Status
5. EWUA as a DOH Approved SMA
EWUA is listed by DOH as an approved Satellite Management Agency, confirming its quasi public role and regulatory obligations.
Source: DOH Approved SMA List
https://doh.wa.gov/community-and-environment/drinking-water/satellite-management-agencies/approved-smas
My links are old. Here are the correct website addresses
B. Washington State Department of Health (DOH) Guidance
2. DOH — Satellite Management Agencies Overview
Describes what SMAs are, their approval process, and their responsibilities.
Key points from DOH:
• SMAs are approved to own and/or manage public water systems
• Must demonstrate technical, managerial, and financial capacity
• Must ensure reliable operation and regulatory compliance
• Must maintain communication with system owners and communities
Working link: https://doh.wa.gov/community-and-environment/drinking-water/water-system-assistance/satellite-management-agencies
Source: Washington State Department of Health — Satellite Management Agencies
C. Emergency Response & Critical Infrastructure
3. Drinking Water Systems as Critical Infrastructure
Water systems are classified as critical infrastructure under federal and state emergency management frameworks. This supports the statement that EWUA is part of the island’s emergency response network.
Key points:
• Water systems are essential for fire suppression, public health, and disaster response
• Reliability and operational capacity directly affect emergency readiness
Source: Washington State Emergency Management Division — Critical Infrastructure
https://mil.wa.gov/emergency-management-division
Critical Infrastructure & Key Resources (CIKR) – Drinking Water Sector https://doh.wa.gov/community-and-environment/drinking-water/drinking-water-emergencies
D. Insurance and Fire Protection Ratings
4. ISO Public Protection Classification (PPC) System
Insurance carriers use ISO PPC ratings to determine homeowner insurance premiums. Water system performance is a major factor.
ISO evaluates:
• Fire flow capacity
• Hydrant distribution and maintenance
• System pressure and reliability
• Coordination with fire departments
Source: Insurance Services Office (ISO) — Public Protection Classification
PPC overview: https://www.isomitigation.com/ppc/
Water supply evaluations (technical detail): https://www.isomitigation.com/ppc/technical/water-supply-evaluations/
E. EWUA Organizational Status
5. EWUA as a DOH Approved SMA
EWUA is listed by DOH as an approved Satellite Management Agency, confirming its quasi public role and regulatory obligations.
Source: DOH Approved SMA List
• Main SMA page: https://doh.wa.gov/community-and-environment/drinking-water/water-system-assistance/satellite-management-agencies
Explains what a Satellite Management Agency (SMA) is, why water systems need one, and references the legal framework (RCW 70.125.060, WAC 246-295).
• Approved SMA list (Fact Sheet, updated 2025): https://doh.wa.gov/sites/default/files/2022-02/sma_list.pdf
This PDF is the official DOH list of approved SMAs, organized by county, with contact information and services offered. EWUA appears here as an approved SMA.