Director Judy Kontos was suspended from the Board of Directors for multiple violations of the Code of Conduct. The Ethics Review Panel found that Kontos supported lawsuits against fellow Directors and staff in violation of her duty of care. Additionally, Kontos disrupted Shelter Bay business, spread misinformation publicly, disclosed confidential documents, and did not follow the proper chain of command. Kontos' actions resulted in legal costs and damaged trust within the community.

1. CODE OF CONDUCT VIOLATIONS EXPLAINED
The special elec�on is being held to recall Director Judy Kontos, who, officially, was suspended last
month for "four (4) Code of Conduct Viola�ons, Rules and Regula�ons Part II, Chapter 40, Code of
Conduct Rules of Order."
As has been referenced before, that "should any Board Member be found in viola�on of any
provision of Sec�on Eight (8) of the By-Laws, that member shall be subject to sanc�on by the Board
of Directors. Sanc�ons shall be commensurate with the viola�on, up to and including suspension of
the Director from the Board pending a mee�ng of the membership to remove the Director." In the
situa�on we currently find ourselves, there are infrac�ons observed by the Board as well as
infrac�ons documented and filed in mul�ple Code of Conduct complaints, filed by different
individuals, and then reviewed by a convened Ethics Review Panel. This process is documented in
Chapter 40, Shelter Bay Rules and Regula�ons Part II.
Pledge for Duty of Care
The Ethics Review Panel found that the Code of Conduct complaints that included Director Kontos’
support of a lawsuit, filed in October 2022 by Roberta Fontenot, that was brought against fellow
Directors, staff and Counsel, violated her pledge for Duty of Care. Director Kontos was present in
open court and was introduced to the judge as a "representa�ve of the Board." Director Kontos
provided a Declara�on of support and subsequently stated on social media that her Declara�on
was in support of the lawsuit. The lawsuit, which included a mo�on for a Temporary Restraining
Order (TRO) in an a�empt to keep several Directors from ac�ng as Directors and conduc�ng
Shelter Bay business, was withdrawn when no proof of the allega�ons was ever discovered.
An addi�onal complaint that the Ethics Review Panel found to have merit was Director Kontos'
collec�ng of signatures in an a�empt to recall several Board members a�er the TRO a�empt failed.
In addi on to the above mentioned infractons that prompted the Code of Conduct Complaints,
there are mul ple infrac ons where Director Kontos violated the Shelter Bay Code of Conduct -
Duty of Care, Loyalty, and Obedience as observed by the Board. They are:
Disruption of Business and hindrance of progress
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• Began a campaign to challenge the ra�fica�on of the 2022 budget,
• Interrupted the approval of the marina loan. Then claimed the Board was irresponsible for
allowing the project to con�nue without a secured loan and was mishandling the payments due
(by moving funds from one account to another) while wai�ng for the loan approval,
• Repeatedly accused the current Board publicly of malfeasance and irresponsibility and for
decisions made by previous Boards,
• Provided a Declara�on of support for the lawsuit filed in October sta�ng that she shared the
Fontenot's "concerns of financial malfeasance may have taken place" and joined the request for
a TRO to protect Shelter Bay "from further embezzlement and conversion.",
• Provided a declara�on of support for a lawsuit against Counsel which resulted in the resigna�on
of the a�orney (who had been Shelter Bay's a�orney for 25 years),
• Demanded that staff leave a mee�ng because they "might be named in a lawsuit",
• Provided a Declara�on of support for a lawsuit filed on March 15 (we will call this Lawsuit #2)
reques�ng a Temporary Restraining Order (TRO) against five (5) fellow Board members alleging
malfeasance.

2. Harm to the community by crea�ng mistrust and causing legal expenses
• In an a�empt to disable or cripple the Board, made mul�ple and false allega�ons related to
financial malfeasance. These became core components of her lawsuit, which the judge
dismissed when no proof of the allega�ons was provided,
• At Board mee�ngs, and on social media through her a�orney, made repeated false
allega�ons pertaining to the Board's handling of financial ma�ers,
• Repeatedly accused only 5 members of the Board (the "majority"),
• Publicly and falsely accused fellow Board members and staff of providing fake bank
statements to her,
• In November and then again in March, a�empted to collect signatures for a recall effort
against fellow Board members. These efforts have included door-to-door solicita�ons,
texts and phone calls to Community Members who are out of town (sugges�ng that they
can use Docusign to sign the pe��ons), and no�fying people on social media where to find
her and her pe��ons (all within public places in Shelter Bay.),
• Publicly challenged the current Board's handling of the permi�ng for the pool project with
false allega�ons.
Dissemina�on of confiden�al informa�on
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• Disclosed a confiden�al document from Counsel,
• Publicly disclosed the names of those who had filed Code of Conduct complaints against
her. This informa�on was defined as confiden�al.
Abusive behavior toward a community or staff member
• Filed a lawsuit against the former General Manager for personal reasons. The mo�on was
retracted when she failed to get Declara�ons of support for her claim,
• Demanded that staff leave the Ethics Panel Review interviews because they "might be
named in a lawsuit",
• Filed a lawsuit against Counsel and staff,
• Supported (and declared) a background check on a staff member and then publicly shared
false informa�on on that staff member.
Disregard for chain of command. (During Board Member orienta�on on July 8, the Chain of
Command was reviewed, along with the understanding that the Board President serves as the
voice of the Community to the membership as well as the public.)
• Provided interviews with the La Conner Weekly news on behalf of the Board without the
knowledge or consent of the Board,
• Met with La Conner water u�li�es representa�ves without the knowledge or consent of
the Board and told a�endees not to disclose informa�on regarding their discussion,
• Met with the Swinomish Tribal Community/allo�ees regarding lease nego�a�ons without
the knowledge or consent of the Board or Lease Commi�ee and told a�endees not to
disclose informa�on regarding their discussion,
•

3. • Contacted the State of Washington regarding the annual license renewal and publicly and
falsely claimed that Shelter Bay was delinquent and had she not resolved the issue
residents would've lost our current lease,
• Contacted a vendor associated with the marina project and had the invoice address
changed from Shelter Bay to herself.
Support the Governing Documents and the Policies and Procedures of Shelter Bay
• Started a project on her lot to replace her driveway without ge�ng a permit.
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