Water Board: Responses from Individuals Involved

On Monday I wrote a letter to the people involved with the water board issues (Eastsound Water Users Association), which I posted on my blog here. These were my words to Teri, Jim, Leith, Jim, Ron, Steve, Dan, Carol, Tenar, and Mike:

It isn’t possible for every person on the island to keep up with the back-and-forth dialogue that is happening around the water board issues. The commentary is so voluminous that I am beginning to think it will cause our community to actually be less informed, less able to know what is what, and more turned off.

If I feel that way, many in our community must feel that way too. I haven’t dived down deep to read everything out there, so in a way, I need the CliffsNotes version of things directly from each one of you. Basically, I’ve read the beginning-to-middle of several articles and felt like, “Uggggh,” and moved on to other obligations.

Since there is simply too much information out there for everyone to cull, I would like to compile statements from each one of you in order to have one singular article – one place everyone can go in order to hear straight from each of you.

You can say whatever you want to say, but please be respectful because many people don’t want to hear ugliness. Please say what the most important things are that will educate and inform the community. Please say only truth. Whether or not you are a “good writer” doesn’t matter – you can put bullet points if that helps you speak what you want to say.

In my post on Monday, I noted that I would post any responses to the above. I do not personally stand for any “side” in this post. The following are the responses I received.

MIKE PARNELL

The full board authorized an independent forensic accounting firm to review checks written by the Director to himself, about $11,000. Close to $60,000 at that time in credit card charges. Letter from the forensic investigator to the board after an exhaustive study was that grave oversight errors were made by the board and that the director’s conduct was likely criminal. The board then terminated the accounting firm. Fired their own treasurer, transferred secretary duties of the secretary recording minutes to a staff member, who rewrote the minutes. A subset of the board then gave the Director a 25% increase in secret and now he makes more than the Tacoma or Bellevue directer. The director threatened to sue EWUA because they initiated an investigation into his checks to himself and in secret EWUA paid his legal fees. Probably when they terminated the forensic team. EWUA frequently offers to share any information or accounting. If when we ask, drop by, we are told by staff that “you will have to request that from the board”, which does not respond. The members have not had any accounting or minutes of board meeting notes in months until recently. Financial records are still unavailable. Forensic cover letter is the on the recall water site I believe.

The big question is why was the 3rd highest vote getter seated on the board but prevented from voting on who the other open seat was going to be until the board “appointed” a member that gave them the ability to block a continuing investigation into the directors accounting activities? Credit card purchases at restaurants and Best Buy? Items from Home Depot that are not in the office?

Mike

CAROL ANN ANDERSON

Thanks so much for your interest.

The EWUA Board is currently in litigation with members of our group. When the affidavits become public I will be more than happy to share them with you.  At this time we are currently preparing documents for a hearing on September 17, 2024.

I have been thinking about what I might send you that provides a current recall status. My article recently posted in the Orcasonian is a great place to start:

Dear EWUA Members,

Attending the recent EWUA board meeting the other night reminded me of being bullied when I was in kindergarten. I remember this big boy approaching me and kicking me in the shin very hard. I didn’t cry, but it made me very mad. Then this bully laughed and went around telling all his friends. That is like what I am experiencing during this recall activity. Others have said that I have broken the law, lied about my access to the accounting information, and even made an incorrect excuse for why I was voted out of being Secretary/Treasurer of the EWUA board. I could cry, go through each accusation, and explain how they were wrong or misinformed. I’m not going to do that! I remember Michelle Obama’s speeches about going high when others are going low and spreading vicious rumors. I like her message and have chosen to do the same. Many have said they have read all the information on the www.recallwater.com site and don’t believe our message. They continue to say that Steve Smith plans to take EWUA private to take the members off task. They worry more about what Steve might do, although he cannot do it. The board majority is trying to take the members’ attention away from the real reason for the EWUA recall of Teri Nigretto, Jim Nelson, Leith Templin, and Mike Cleveland. The minority board members — Ron Claus, Jim Cook, and I — are not trying to recall these majority board members because they won’t let us win any of our positions. We are trying to inform the association members about EWUA mismanagement, poorly managed finances, and lack of informed communication. We are trying to ensure that the members know what is happening with their water system. Money is collected and spent with limited controls on tracking the expenditures and proper billing of the Rosario, Olga, Doe Bay, and now the Moran State Park water systems. Proper tracking and billing of hours and expenses are imperative to managing a budget and billing customers properly. The EWUA accounting system needs to be set up to track costs and hours accurately, and it isn’t. As a trained project manager, accountant, and contract administrator, I have done this type of work for over forty years. I know well what happens when the money is commingled, misreported, and improperly billed. The board is currently not involved with how this money is spent. It is left up solely to the discretion of the General Manager, Dan Burke. This is only one of the reasons why I feel strongly about recalling the majority board members.

The other reason is that the EWUA board should be communicating with the members. Interestingly, there has been a lot of communication with the members in the last month, but it is being done to lead them astray. At our recent board meeting, this was evident. Members are tired of all the information they are being bombarded with. EWUA president Teri Nigretto is now on her 6th letter to members with lies, mistruths, and loss-aversion tactics. The EWUA majority members will not allow us to communicate to refute these arguments. They are spending the members’ money to send out these letters. The General Manager is being drawn off task by creating these messages to defend his actions and the majority board members, which is beyond his job description. The Board should tell him to stop this effort and concentrate on managing the water system. There is no reason that he or his staff should be involved in the disputes within the board unless the entire board requests a specific action. He should remain neutral. We, the minority board members, would like to see a board that is trained, well-informed, interested in adequately managing the General Manager, and actively involved in budget preparation and maintenance. The board needs to be willing to communicate clearly and honestly with the members. There needs to be less “confidential” information and more sharing. Their activities should include preparing a well-written set of by-laws and procedures that reflect good business practices, written clearly to describe actions when confronting various tasks. Good processes and procedures are imperative to managing an effective organization. These documents do not currently exist. We eagerly anticipate the addition of board members who are committed to working as a team to foster the organization’s growth while maintaining the necessary controls for effective management. I wholeheartedly endorse the recall of Teri Nigretto, Jim Nelson, Leith Templin, and Mike Cleveland from the EWUA board. For a more comprehensive understanding of our stance, I urge you to review the documents available at www.recallwater.com, which provide detailed accounts and evidence supporting the recall. Let’s put an end to the disruptive behavior and instead focus on implementing sound business practices that will benefit us all.

Thanks for listening.

STEVE SMITH

September 10, 2024
By Steve Smith

RecallWater.com has all of the key information for anyone who is willing to look at the evidence.

Instead of focusing on what is wrong at EWUA, I will instead focus on what happens after the member meeting.

There are two outcomes that are most likely.  

Scenario 1 – The dominant Board faction is retained and the status quo continues. A governance committee will be established that vets who is allowed to be a candidate to be on the Board. Access to the records will continue to be restricted.

Scenario 2 – The dominant Board faction is recalled while leaving the three minority directors in place. Should this happen, then they will probably appoint a 4th director. Then an election will be held for at least five seats.

I believe that the reform Board will open the records for member inspection. I believe that committees, including members, will be established to help review and guide various issues such as budget, rates, infrastructure needs, employee satisfaction, customer satisfaction, water quality, and safety.

I believe that there will be a General Manager who permits and cooperates with Board oversight.

TENAR HALL

The current turmoil at EWUA highlights longstanding institutional issues that have been building up over the years. While EWUA has grown significantly since its inception, it has not developed the necessary policies and procedures to support this growth. This lack of structure has left EWUA vulnerable, and some members of our community have taken advantage of this vulnerability. 

We are currently facing a major dispute between those who want to maintain the status quo and preserve exploits, and those demanding accountability and transparency. As a non-profit cooperative, the responsibility for management and oversight lies strictly with the members. Disputes cannot be appealed to external authorities even with evidence as definitive as the Acuity Forensics documents (http://bit.ly/rw-AcuityForensics). This has resulted in a problematic situation where logic, reason, and facts are often manipulated or ignored in favor of personal relationships, business interests, or fear of retaliation. In essence, the fate of the island’s largest water system is now at the whim of a glorified popularity contest. This whole thing is a real shitshow and the community is too entwined with conflicts of interest to dig our way out under the current model.

I believe the most effective long-term solution would be for EWUA to convert to a junior taxing district or merge with EWSD (https://eswd.org). This would allow people who depend on the EWUA system to vote anonymously in well-managed elections overseen by the Secretary of State. Converting to a junior taxing district would force EWUA to have rules and to follow them. Finally converting to a junior taxing district would provide an authority to appeal to when internal conflicts cannot be resolved amicably. 

More information on water districts in Washington State is available here: https://apps.leg.wa.gov/rcw/default.aspx?Cite=57.

Thank you for your time. 

Tenar Hall

EWUA Board Member (August 2021- March 2023), Secretary/Treasurer of EWUA (January 2023- March 2023)

RON CLAUS

We are in the midst of intense negotiations as to how the recall meeting is to be conducted.  I cannot commit to get a simplified summary statement to you by tomorrow afternoon.

Thanks for providing the forum and I pray it is useful for our community.

For the sake of reporting, I would prefer for all angles to be represented, but I am not in control of who chooses to respond and who does not.