NORTH BY NORTHWEST 18: Island Transit Acting Financial Manager INSUBORDINATE

An Island Transit Small Bus in Oak Harbor...

“Insubordination can be divided into two categories: unwillingness to carry out a directive from a manager or supervisor and disrespectful behavior toward a manager or supervisor. -… Disrespectful behavior toward a manager or supervisor can include cursing at a supervisor, verbally or physically intimidating a manager or supervisor, or speaking loudly or argumentatively to or about a supervisor.”

Society for Human Resource Management, Disciplinary Issues: What constitutes insubordination?
(Emphasis mine)

Good morning, it seems as if Island Transit is still in trouble after the resignation/retirement/firing of Island Transit’s executive director. In today’s Whidbey News-Times is an insubordinate letter to the editor by one Sandra Kuykendall, Acting Financial Manager of Island Transit. I’m going ahead and republishing her letter in full so you can see what I mean by insubordinate with my emphasis:

Editor,

Friday I witnessed a vigilante mob lynch an outstanding public servant.

Scott Dudley and his dopes spewed bitter half-truths and intimidated our elected board officials to fire Martha Rose.

Bob Clay, Helen Price Johnson, Jim Campbell and the rest of you board members, do you really think making Martha a scapegoat and bowing to McCarthyism is going to make the silent majority vote for you next go-around? The answer is … oh no.

You and the state auditors saw the same false information that Martha did, and none of you raised a red flag either.

This error was so hidden that nobody, including the state auditors, to whom we pay tens of thousands of dollars every year to catch this type of an error, recognized it.

Most of us who worked with Martha over the years are all angry and shocked that this type of a lynching was approved by the board, especially before even getting the audit report.

Martha built this organization into a national award–winning agency and worked for years getting the grants to build this much-needed facility. The angry “employees” that write letters to the editor are 90 percent disgruntled ex-employees who were fired for not doing their jobs.

Martha has given her heart to this community and fell prey to an incompetent finance manager.

Once she recognized the problem, she took strong action to pull our agency out of a financial nose dive. And she developed a financial plan that could do it. We couldn’t be in a more precarious point in our recovery to lose her guidance now. We, and I speak for most of the employees of Island Transit, are heartbroken, disillusioned and disgusted at you self-serving politicians. What is the world coming to where McCarthyism is allowed to be practiced?

Sandra Kuykendall
Acting Financial Manager, Island Transit

Folks, let me be clear here: To publicly call an Island Transit Board Member a bully and then to accuse individual citizens using their First Amendment Rights of being McCarthyite dopes – and for you young ones, that’s a serious charge from the Cold War and the Red Scare of the early 1950s leading to many good folks losing their jobs & reputations. Anybody who listens to Mr. Lauderdale’s speech can see he’s no McCarthyite but a US Navy veteran using the 1st Amendment of the US Constitution. Below are his remarks from Friday:

http://vimeo.com/106753205

 Let me also add when a public official uses her position to blast members of public plus her elected board and sign a letter with that title, watch your liberty! You heard me – watch your liberty! When government officials publicly abuse members of the public for speaking out not just in print but by walking out – well then who’s next? Would it be okay for a Sound Transit Sounder manager to blast Seattle Transit Blog for criticizing Sounder North? Would it be okay with you Seattle Transit Blog readers for transit board officials to work to limit us at public comment?

After all, if a former US Navy Commander cannot tell his elected officials what he thinks about Island Transit without fear of Island Transit officials working to destroy his reputation and accuse him of lynching… then we as Americans have something fundamental to fear.  There are many great Americans who love America and want to serve but distrust their government because of tiny people with big titles like Sandra Kuykendall.

Let me put it this way: We at Seattle Transit Blog have read reports of intimidated employees in the comment threads (an example) and even hyperlinked a letter sent to the State Auditor’s Office via State Senator Barbara Bailey alleging the real McCarthyism is led by Martha Rose and her pet attack dogs.  With Sandra’s disgusting outburst speaking as an Island Transit employee to silence fellow American citizens, it lends credence to these allegations.  So what do we do here at home while our troops are risking their lives to stop ISIS ‘Over There’ and our First Responders are ready to protect the home front?  In the words of one VAQ-139 Cougar currently preparing to do battle over the Middle East:

We are all Americans enjoying our great freedoms and rights thanks to the military and the firefighters/EMTs/police officers who serve and protect us…NOT ONLY today, NOT ONLY on the Anniversary of 9/11 but EVERY SINGLE DAY of our lives. CHOOSE to keep those flags flying, CHOOSE to be a proud American Patriot, CHOOSE to keep that spirit alive, and in doing this we will HONOR all of those we lost on 9/11 and all of the troops who have made the ultimate sacrifice NOT ONLY TODAY but ALWAYS!

Today there is an Island Transit Emergency Meeting at 4 PM/1600 Hours at their HQ.  I would highly advise Island County Residents to fire this monster in your midst and clean up your honour before 38 other counties have to.  Why?  Proud American Patriots should ensure this aggression will not stand.

One last thing: Already now former Executive Director Martha Rose admitted on public record there would likely be an audit finding last Thursday due to inept record keeping.  Why wait for the State Auditor’s Office report Sandra?  Some lynching…

North by Northwest 15: Island County Commissioner Helen Price-Johnson Statement…

Just Practicing My Motion Blur on an Island Transit Bus...

Just got this statement a few hours ago.  Posted in full below with my bold – and then my rather brisk commentary.  Here goes.

Joe


TRANSIT UPDATE  

As an Island County Commissioner I serve as one of five elected officials from across county who meet monthly as the Public Transit Authority. The Board members knew that a portion of cash reserves were going to be used to match the federal grant used to build the new transit facility – a much needed capital investment. However the monthly financial reports the Island Transit Board received were inaccurate. What was discovered this spring was an ongoing cash shortfall in the operations budget. Action was taken swiftly to address the problem as it was described, but it was subsequently found that the depth of the shortfall was larger than first reported. Executive Director Martha Rose acted to implement emergency measures restoring fiscal balance to the organization. This included cutting administrative staff in June and July, reducing several routes and cutting Saturday service on September 1.

Executive Director Rose claimed full responsibility for this situation. She fired the finance manager for withholding vital information, and conducted an internal audit to review and rebuild the financial reports. The State Auditor’s office in currently examining the details and their report is expected next month. Legal counsel has been contacted to examine whether there was any crime committed. The Board has taken action to increase transparency and public access to financial reports. Stronger checks and balances have been put in place to prevent this from happening again. The Board is holding special meetings to stay abreast of the developments and take necessary actions.

The routes cut on South Whidbey have impacted families, workers and some of our most vulnerable citizens. Transit staff is drafting a plan for a complete revamp of the system to put out for public input. Individuals should contact Island Transit staff to share their concerns and suggestions. A short term and long term strategy is needed to restore a viable level of public transportation services.

Many folks have asked if charging a fare would solve the problem. Probably not. A quick review of similar sized transit systems  shows only a 10% average collection of revenues from fares. Whether or not charging fares would have more negative outcomes such as reducing ridership and increasing costs, than the positive cash it would generate, is not certain. It would be helpful to put this question to rest in the months ahead.

Island County wants and deserves a transit system which is dependable, sustainable, flexible and responsive. We can and must work together to achieve that goal.


Thank you Commish.  Here are some thoughts:

  1. I agree Island Transit needed a new headquarters.  Neither the new HQ nor fare free caused this fiscal mess – rather bad fiscal management by the finance manager and the Island Transit Executive Director did.
  2. Claiming and taking “full responsibility for this situation” are two different things. Between this crisis and hearing Island Transit Boardmembers still befuddled at what’s transpired financially in just the last 90 days – especially at last Friday’s special meeting, I request the Island Transit Board to have a public confidence vote in their Executive Director in the next 45 days…
  3. I would hope that criminal investigation is well underway.  So would most of the Seattle Transit Blog community.
  4. Although it’s obvious this statement was in the works for some time, last night’s sortie about how Fare Free did not cause Island Transit’s problems and I argue would only catastrophically add to them sure was timely.

Finally, Island Transit has a Board Meeting in their Coupeville HQ at 0930 Hours on Friday.  Just so you know.

North by Northwest 10: Zero Accountability to the Community by Island Transit?

Yes, Island Transit has seatbelts!
Island Transit Bus Seat Photo by Author

Seems as if KING 5 has finally joined the Accountability Convoy heading to Coupeville.  We sure welcome KING 5 participation in seeking the truth from Island Transit.  One thing caught my eye in their half-complete report – namely nobody from Island Transit would go on-camera to explain the Island Transit financial mess nor has Island Transit posted to its website statements to its Board about these events.

Already Bob Pishue of the Washington Policy Center has tweeted his policy paper to KING 5.  Perhaps with their silence, Island Transit 100% agrees with Mr. Pishue that ultimately, “Instead of trying to secure more money from state taxpayers, Island Transit officials should better manage public tax dollars to rebuild the public trust and restore reliable and efficient bus service.”

Recently I asked Martha Rose, Executive Director of Island Transit the following questions – which I will post here.  When I get a response, I will copy-paste the replies:

BTW I listened to the audio from Friday’s meeting last night and put it online a moment ago: https://www.youtube.com/watch?v=7OjjagGkHzE&feature=youtu.be.  The following questions arise from my listening to the audio:

  • What would have happened if Island Transit not gotten a loan for its operating budget shortfall?  More cuts?  Insolvency/bankruptcy?
  • What exactly are these state operating grants to help transit agencies with shortfalls?
  • Who provides these grants?
  • Who assured Island Transit officials the grants would be likely dispersed to Island Transit?
  • When will the grants arrive, if provided?
  • What if the grants do not arrive and the soft money disappears?  Any backup plans such as renegotiating the loan terms?
  • Why are Island Transit statements given to Board Members about the fiscal crisis/morass not on the Public Information tab of the Island Transit website yet?

That e-mail to her and Island County Commissioner & Island Transit Boardmember Helen Price-Johnson was sent Tuesday at 12:40 PM/1240 Hours.  I am still writing up the notes of the Island Transit meeting, and have other work.

Before calling for action, I would hope if Island Transit cannot answer these questions a through review by the Washington State Auditor’s Office can answer these questions.  State Auditor Troy Kelley has promised State Senator Barbara Bailey – with my hyperlinks:

Thank you for sharing your concerns about Island Transit. I appreciated reading the attached news article and letter containing serious allegations relating to Island Transit. Although we had been in contact with the Transit’s Executive Director and seen the news article, we had not received the letter until you forwarded it to us. Additionally, we are evaluating the questions posed in the letter sent by the elected delegation for the 10th Legislative District.
Based on our communications with the Executive Director, we are scheduled to start an audit at Island Transit on August 11, 2014. Our financial and single audit will review the Transit’s fiscal year ending December 31, 2013 financial statements and federal compliance. After examining the documents you provided along with the District’s activities, we will also conduct an accountability audit to evaluate their internal controls that ensure compliance for the safeguarding, and use of, public resources.
As part of our audit work, we will evaluate the questions you have identified in your letters. Upon the completion of our audit work, we will be in contact with you to discuss our conclusions.

Without alleging anything but to be proactive one would hope since state legislators are exempt from the Public Records Act, the State Auditor’s Office will make full and immediate disclosure of their audit results – not just findings but also any management letter(s) and verbal recommendations.  Because it sure appears Island Transit HQ doesn’t feel accountable to the community… or to even its rank and file.

Your relevant comments and observations are always welcome.  Spammy comments will be deleted without warning.