UPDATE: Scroll down for Ken Mills' response:
These are my responses to Ken Mills’s post. Ken is in quotes. —Kim Kaufman
"The recent agreement between Pacifica/WBAI with the Empire State Realty Trust (ESRT) received praise in media coverage."
The link above leads back to Ken's own coverage of this story. I haven't seen any "praise" in media coverage yet, only basic reporting on Pacifica's press release which, oddly, did not list the amount of loans which are $3.7 million and $500,000. (Plus at least $800,000 interest as best I can tell. The loan documents still have not been made public. Pacifica’s operating budget is under $12 million.)
"In fact, the best reporter on the radio beat, Tom Taylor, said interim Executive Director Tom Livingston and Marc Hand from the Public Media Company should be nominated for a Nobel Peace Prize."
Let's not forget President Obama won the Nobel Peace Prize and continued or started wars in - is it five or seven? foreign countries, plus a coup in Honduras.
"That might be hyperbole but observers seem to agree that progress is being made."
“Observers” should make their observations public so we don’t think this might be made up. I don't see progress but complete disarray. Unpopular, or merely inconvenient voices have been shut out, including Pacifica's CFO, (CFO Resignation letter), and Pacifica's corporate counsel.
"These folks remind us of a bunch of Scientologists. They believe deeply in what they are saying, but, at the end of the day it is meaningless."
True statement. Grace Aaron who spearheaded this loan (and her husband, Ken, KPFK's Treasurer) are, in fact long time Scientologists.
"Pacifca's rules are used to keep certain people in power."
True. Nonetheless, they are the present rules that must be followed. What R. Paul Martin was pointing to:
“All Members shall have all rights granted to them by law or by these Bylaws, including without limit the right to vote… on the sale, exchange, transfer or disposition of all or substantially all of the Foundation's assets; on the sale, exchange, transfer or disposition of any of the Foundation's broadcast licenses; on any merger, its principal terms and any amendment of its principal terms; on any election to dissolve the Foundation."
That means using a sale or swap of a radio license as possible means of paying back the loan is outside of the scope of the PNB to promise and, without being a lawyer, appears illegal. The public looks forward to seeing the documents to see exactly what is promised to pay back the loan, if anything.
"Actually, all of these rules can be erased by the stroke of a pen.”
True but, to date, they have not been and thus they are the laws of the land.
“Pacifca's rules are used to keep certain people in power.”
True. But people who are so inclined will always find ways to manipulate rules if they perceive they will benefit and are dishonest. Look at Mitch McConnell’s refusal to bring Merrick Garland to the Senate for a vote for SCOTUS!
“Perhaps Pacifica would be better off if they had only one committee, the National Board of Directors.”
Perhaps but CA state law requires Pacifica have an audit committee. (There is one but is non-functional.) It is time to stop blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions. Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
“Livingston and Hand… aren’t taking part in the… meaningless factions."
Of course they are playing factional games. My observation is that, like John Proffitt when he got to Pacifica, Livingston identified the three or four people who are driving their factional train and ignores everyone else.
Livingston said in a public email, “The decision to seek a loan to address the ESRT judgment was made prior to the start of my time at Pacifica. All of the policy decisions regarding the agreements were made by the PNB.” I responded: “Are you suggesting you accepted this job to do the bidding of majority of Directors, wherever they lead you? One would have thought that you, as a professional with a long career in helping public radio stations, would show your independence and ask hard questions - before signing loan documents.” And further, “One would have hoped you were hired to offer informed advice and plans not just rubber stamp what the board wanted. After all, they are the ones who have put Pacifica in the dire situation it presently is in.“ Tom is factional game-playing at its worst and most destructive to Pacifica.
As far as I can tell, Pacifica could not qualify for this loan either by having the appropriate financial reporting required or by any plan to pay back the loan. A six month waiver was given to Pacifica to complete the financial reporting required which includes: finish FY2016 audit, start and complete FY2017 audit, complete two pension plan audits and pay off the pension monies owed since 2015 (and is, at a minimum, $750,000 plus penalties which have not been calculated). Livingston was not able to say who told the lender Pacifica could accomplish all this by September. The CFO has stated it cannot be done. I do not believe it can be done, especially, as of May 4, with no CFO and no auditor.
Livingston said in a public email, “I believe I speak for the board that it is the strong hope that by improving Pacifica's programming and operating practices the organization can generate sufficient resources to be both sustainable and service the debt.”
My response was, “ Your statement is shocking. You signed a $3.7 million loan, with all of Pacifica’s real estate assets, including everything inside the buildings, plus KPFK’s transmitter and the Pacifica Radio Archives, both irreplaceable, only on a “strong hope”? Please see my 4/8 email where I asked if this was a predatory or “liar’s loan.”
We’ll see who gets an “I told you so moment” as to the future of Pacifica. I’ll be happy if it’s not me but I do not think it will be those who are trying to put enough lipstick on this sad pig to make it look like a good deal for Pacifica.
Kim Kaufman
Former KPFK LSB, Treasurer,
Pacifica National Board, audit committee
Hi Kim -- I am getting caught up. I've got the flu and am moving at about half speed, sorry I didn't get them posted earlier.
You raise a number of important points and I can see where we have different views of the situation. This paragraph is a useful summary:
Perhaps but CA state law requires Pacifica have an audit committee. (There is one but is non-functional.) It is time to stop blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions. Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
The key line is: blaming Pacifica’s bylaws, insane as they are, for the actions and decisions of the people who make the decisions.
My point is, if the bylaws are insane, get rid of them. Why let every person with a gripe impede the entire organization. KCRW, KPCC and event KXLU don't have these useless governance "rules."
You are correct when you say: Whether one committee or 10, it or they would still be populated by the same incompetent and uninformed people.
And because of the obstruction caused by these "laws" even a competent, qualified people will not be able to make the needed changes. So, get rid of the bylaws.
Respectfully, Kim, sometimes you and others seem to be cheering for Pacifica to fail. Perhaps then you can have your "I told you so moment."
There is no focus on the "common good," which is essential in nonprofit endeavors.
As a reporter/blogger who has no stake in the outcome, I hope Pacifica can either find a way to succeed or sell the stations to a noncommercial organization.
FYI, Ken.
Thank you both for exchanging your views in this forum.
ReplyDeleteKen writes, sort of meanly, accusingly: "... sometimes you and others seem to be cheering for Pacifica to fail. Perhaps then you can have your "I told you so moment."
ReplyDeleteThe desire to insist everyone have only a 'positive' - but FAKE - view of what is and has been occurring is the usual “pretend-we-are-good-people-anyhow” and "smile !!!"
These demands by those who wont openly admit to what is obvious to many others: what is not working is going to fail, and if no one can make a Big Enough change / turn around, then the fracturing, breaking up that is already happening or soon be noticeable- will be confirmed, to all concerned.
It is not a being Right, “I told you so” proof, as it is calling what is observed in honest words with questions, numbers, and experiences at those places – to prove validity of that view.
This criticism is one commonly made to anyone who refuses to play the "let's all play nice now" game imposed by those who don’t want to admit or see what others can. And write.
Please do not just let such game-plays be written / overlooked for what they are. Those with more scary, negative views are Not claiming to know more. Those demanding only positive hopes do not show how they are willing or able to do more, but to blame anyone else, with a non-positive/ agreeing point of view or expressing their experiences.
just saying...the attempts to be enforcing of fake smiles is just demanding ‘loyalty’, obedience, or maybe even a liberal-coercion agreement….
As a journalist I can only go by what I see and hear. From what I have observed you enjoy going on and on about this rule or that committee. For you, it is about the process not the outcome.
ReplyDeleteYou paint me as Dale Carnegie, up with people, character. No, I am a guy who thinks that the only way radio will survive is by being excellent. Anything that prevents radio from being excellent is a waste of time and spirit. CONTINUED IN PART TWO
Ken says above:" that the only way radio will survive is by being excellent. Anything that prevents radio from being excellent is a waste of time and spirit. " as if that was the issue, instead of another "pivot" by one claiming to be the Only one here who is a "reporter".
DeleteHis reply appears to be a reaction to having anyone confront and contend with his statements and not appease his ego or his 'assumed status', probably. Otherwise why make such cliched reactions to his demand that we all be nice together and not question, criticize, ask for more ?
we dunno.
He does not qualify to say what is more than anyone else, anyhow. Here or any unpaid other place either. Trying to claim special status does not work when there is no commercial strings attached
We do presume everyone loyal and involved enough to be writing within or around Pacifica and it's problems WANTS the very same thing - for these radio stations to not only survive but improve, grow, become stable entities financially and in all ways. Ken is exaggerating by asking for "excellent" levels only. We can do with a bit less and survive as well.
“You just want Pacifica to fail” is another way of saying, “Shut up, you’re asking inconvenient questions.”
ReplyDeleteKen says, “…if the bylaws are insane, get rid of them.”
I’m not sure what to make of that sentiment. OK, get rid of the bylaws… and then what? Does he not know that all 501(c)3s – or public charities – are required by the federal government to have boards, ostensibly to provide oversight over management, to make sure the public’s money goes where they think it goes? Does he not know that the Attorneys General in every state oversees public charities and require all public charities to file their organizational documents, including bylaws, with their Secretarys of State? And the bylaws have to state how their boards are chosen? And they also require yearly audits. Does Ken not understand that radio is a heavily regulated business and in order to stay on the air the organization has to make sure it abides by federal and state rules and laws? Ken is beginning to sound like just another Pacifica anarchist! We don’t need no stinkin’ rules!
Simply getting rid of the bylaws and not having any bylaws is not an option. The problem is finding a method of having boards that keeps out the crazies, crooks, cons, incompetents, grifters, ideologues and people dedicated to what appears to be destroying the organization – either by accident or design. Neither self-selecting nor elected boards have worked. Maybe it’s not the system but the people the organization has attracted and let in the door, with no consequences for bad behavior. Remember: every incompetent within Pacifica is somebody’s friend! Plus, as always, the people who might make up new bylaws will not be inclined to vote for any new ones that would take away their own power.
Getting rid of the bylaws will not stop the above named denizens of Pacifica from finding ways to get rid of competent and qualified people who threaten exposure of their incompetency or willful malfeasance. It is the people who are already within Pacifica doing this. There are no bylaws that will stop a termite from being a termite. The problem is: how to get rid of the termites that are already chewing up the last bits of Pacifica?
Ken says, “There is no focus on the "common good," which is essential in nonprofit endeavors.”
I agree but that does not describe me. I am in a minority. Both factions have tried to discredit me because I have for called them all out for their willful self-interested decisions, or plain malfeasance, with decreased listenership and large deficits as evidence of their bad decisions.
It’s not that I want Pacifica to fail, it has become inevitable. I want people to understand how it went down and who made the decisions.
Kim
well explained here. thank you for making clear points that make sense.
DeleteBased on Ken’s last comment, I think we are talking at cross-purposes. What’s at hand right now are decisions, mainly the loan, made by the PNB. The problem that Ken sees, and wants to talk about, is Pacifica’s shitty radio. What he doesn’t understand is that the boards like to micromanage everything. Livingston may have been a competent manager somewhere else but he takes a look around Pacifica and decides his best shot to collect $10++k a month is to do what the genius micromanagers on the board tell him to do. He’s their hatchet man - to sign the loan and get rid of their enemies.
ReplyDeleteIt is the unfortunate nature of a majority of Pacifica insiders that this is never about radio or good management. Saying that I’m “all about process and not the outcome” is an attempted put down that implies that there’s another game going on at Pacifica and I just don’t know it. Unfortunately, it is Ken who doesn’t understand the game going on at Pacifica. Ken wants Pacifica to be like NPR affiliates - well ordered, not embarrassed to take corporate underwriting and functional. Other than Ken, everyone else reading this knows it ain’t gonna happen for a bunch of reasons I don’t have the time to write about. Ken’s a newcomer to the alternate universe of Pacifica. Welcome!
Btw, in the car today I listened to several NPR news segments where the host/their guests stated definitively that Assad has chemical weapons. I have seen no supporting evidence of that. This is the ultimate sadness of Pacifica being unfunctional and irrelevant.
Kim
Kim is correct when he says: "The problem that Ken sees, and wants to talk about, is Pacifica’s shitty radio." Start there and ask why? Why waste these precious resources and spectrum. Some at Pacifica seem to what they say in these stupid meetings is more important than what goes on the air.
ReplyDeleteKen, yet again, makes statements as if he were the "occasional on looker" never having read or heard the many & varied ideas, suggestions, solutions and rants that tell everyone how Pacifica could be "great" again or sumptin....
Deleteas Ken writing: " Pacifica’s shitty radio." Start there and ask why? Why waste these ...."
Those not positive words are contrary to his prior demand too, using words to denote very negative descriptions, without "hope" included either.
That kind of writing is not helpful or useful to anyone, anywhere.
To deride a whole organization with such words appears to be another exaggerated opinion. Just 1.
Ken asks, “Why waste these precious resources and spectrum. Some at Pacifica seem to what they say in these stupid meetings is more important than what goes on the air.”
ReplyDeleteYes, it’s true. Some board members have suggested – seriously – that board meetings be broadcast on the radio.
Ken, you might want to read this for some recent history: https://www.laprogressive.com/kpfk-and-pacifica/.
The people I supported did win and get control. And the result is they’re just as bad as the others, only in a different way. But no less destructive. Bottom line: either these people don’t WANT Pacifica to be successful or they simply don’t have the capacity.
Kim
"It probably bears repeating that the reason for the Empire State lawsuit that triggered the emergency was the imaginary deal the 2014-2016 Pacifica National Boards claimed they had with the Empire State Realty Trust that "allowed" them to pay a reduced rent of $12K a month instead of the $55K/mo on the lease. Deal wasn't on paper, never verbally acknowledged by ESRT, and finally proven in court not to exist. " —Tracy Rosenberg
ReplyDeleteIf the above quote from Tracy tells it right, it makes it even clearer that Berthold Reimers should have been summarily dismissed a long time ago. He had help from the JUC mob, of course, but he is the central figure in the vandalism of WBAI.
He is still there! Still destroying the station! WHAT ARE THEY WAITING FOR?
Exactly. After neglecting the situation for so long and no meaningful changes in management and programming, they wonder why people arent bowing at their feet in gratitude.
ReplyDeleteCan Berthold will be promoted to a national position, away from BAI, away from QuickBooks(TM)? Or maybe promoted to a "person of interest" status for embezzlement?
ReplyDeleteMaybe after an audit of WBAI's books, Berthold will be removed?
ReplyDeleteTracy says:
ReplyDeleteAnd the cross-factional support on the national board is a good sign, one of the few examples in recent years where some of the board was able to put aside provincial concerns and factionalism to do the right thing and buy some time.
I don’t think this loan puts aside provincial concerns at all. The PNB mortgaged every asset Pacifica has. The two stations doing the worst, WBAI and WPFW, had nothing to throw in the pot and were happy to vote for mortgaging the other three. The votes against it had nothing to do with factionalism but everything to do with being able to read a spreadsheet and see this as an irresponsible and fantastical flight from reality and fiduciary duty.
As for the loan itself, I now understand that the loan was for $3.1 million. The rest of it is for Pacifica to pay the interest, or some of it. In other words, Pacifica is such a deadbeat that they had to borrow money just to be able to pay the interest. Pacifica is paying interest on the money they are using to pay the interest. And then there will be the $3.1 million balloon payoff in three years.
Tracy asserts incorrectly the unwritten agreement was the cause of the lawsuit. ESRT sued Pacifica only when Bertold paid not the $12,000 per month but paid zero for two months, which became public only after the lawsuit became public. That is what apparently got on Empire’s last nerve and they sued. That was fall, 2016.
The unwritten permission Bertold said he had from ESRT happened after I was off the PNB. Tracy is trying to pretend that I knew about it and was somehow deficient in my fiduciary responsibilities. I was off the PNB by 2015 when John Proffitt went to NY and talked to whoever and reported predictable “hopeful nonsense,” to quote Adam Davidson’s fine phrase. After that, it was stated Bertold alone was talking with ESRT. I had zero information about the apparent consensus on the PNB to accept the assertion that it was OK to pay the $12k per month with nothing in writing. In my opinion now (although it wouldn’t have been then), it probably would have been OK *if Bertold had continued to pay the $12k per month,* although I suspect ESRT would have sued for the full amount if WBAI had been put up for sale or swap.
A lot of bad things happened on the PNB and at KPFK while I was there. Even when I knew I couldn’t actually do anything, I was never shy about saying what I knew about who was doing what and why and what should be done. I made no comments at the time or since because I didn’t and do not know how that went down. It was the NY reps, and others in NY, who were close to the situation. Sorry, Tracy, you’re just wrong here.
Kim
Tracy says, "...it [the loan] is a second chance at life for Pacifica..." One only has to listen to the so-called Strategic Planning Committee of the PNB tonight to understand the only place Pacifica will go is into Chapter 7 where everything will be auctioned off to the highest bidder.
ReplyDeleteKim
Audit Committee reports accounting software hit by a virus?
ReplyDelete