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Workers at Sunstone Way have sent 200 letters calling on the nonprofit shelter provider’s board to remove chief executive director Andy Goebels and two other leaders amid accusations of financial mismanagement, according to the union representing employees there.
As first reported by WW, Kate Fulton, Sunstone Way’s former director of finance, filed a whistleblower complaint in Multnomah County Circuit Court on Feb. 12. She describes profligate spending on office space, employee retreats and bar tabs; overpayment to Sunstone Way contractors; and sexual relationships among top executives.
“While all allegations reflect poorly on Sunstone Way as an organization, of most concern to us is the misuse of funding, attempted coverup for said misuse, and retaliation against personnel who raised concerns about it,” the letter to Sunstone Way’s board says.
The letter writing campaign was organized by the American Federation of State, County and Municipal Employees, which represents 130 workers at Sunstone Way. Some 40 workers have sent separate letters to all six board members, AFSCME said. The union is putting additional pressure on Sunstone Way by holding a rally to “save” the organization on Feb. 24.
The union’s action is the latest challenge to Sunstone Way, which was Multnomah County’s 11th-largest contractor in the 2024 fiscal year. Last April, it lost the contract to manage the city’s 100-bed pod village in Southwest Portland. Its Market Street Shelter, run for the county, is set to close in March.
AFSCME leaders say Sunstone Way has been cutting staff for the past year, and that more will lose their jobs when the nonprofit closes the Market Street Shelter.
Chief operating officer Alicia Hovanas and chief human resources officer Richard Stellner, the other two executives named in the letter to the board, “have denied all attempts to negotiate retention bonuses, severance pay, and extended healthcare” for the Market Street employees, the letter to the board says.
Sunstone Way spokeswoman Devon Hoyt said in an email that management at Sunstone Way hadn’t seen the letter and couldn’t comment on it.
As for the Market Street Shelter, Hoyt wrote: “Sunstone Way has met with the union multiple times to discuss the County’s closure of the Market Street Shelter and have discussed severance pay in each meeting. Sunstone Way is honoring and adhering to all of the terms and conditions in the Collective Bargaining Agreement.”
Negotiations for a new union contract at Sunstone Way is set to begin in a few months, the employees’ letter says, and Sunstone Way must make changes to “allow Sunstone Way to thrive.”
“It is clear that our leadership has lost its way,” the letter says. “We need leaders who prioritize the core mission and values that drive our work. We need leaders who are honest, community-minded, and transparent. We need leaders who provide us and our participants the support we need in hard times, instead of looking the other way.”
Sunstone Way sought to calm concerns about Fulton’s suit in a message to staff on Friday, obtained by WW.
“Many of you have likely seen the article published in Willamette Week yesterday,” the message says. “We know that situations like this can raise questions, and we want to speak to you directly. First and foremost, we remain deeply committed to this work and to one another. The impact this team makes in our community is real, measurable and meaningful.”
