This week, AC Transit's former General Manager Michael Hursh started his new role with the agency as a senior advisor. As an advisor, Hursh will continue to earn his full general manager pay through September 2025, according to board member Sarah Syed at a recent board meeting.
According to Transparent California, in 2022, Hursh made $556,045 in pay and benefits as AC Transit's GM. Syed says Hursh's new high-paid advisor position is part of a "sweetheart deal" other board members recently approved.
"The sweetheart deal looks like a farce and a gift of public funds and that’s exactly the wrong thing for this agency to be doing when we need to build public trust," she told NBC Bay Area's Investigative Unit on Friday.
But what led to this deal that consists of Hursh stepping down as general manager but staying on as an advisor?
At a December 11 AC Transit board meeting, Syed said last year she complained about how Hursh and Board President Joel Young were handling racism, sex discrimination, hostile work environment and retaliation complaints made by staff.
Then in early 2024, Hursh filed an administrative complaints against Syed accusing her of "bullying, harassment, and interference with the chain of command," according to a joint statement to the Investigative Unit by Board President Young and Vice President Diane Shaw.
Syed calls the GM's bullying complaints against her bogus.
In Young and Shaw's joint statement, they say the agreement with the general manager "aimed to resolve the matter amicably and prevent further conflict of legal action." It does so, they say, by including payment terms where Hursh will continue to receive his general manager pay until September 2025. His last day as general manager was December 14.
In Young and Shaw's statement, they also accused Board Member Syed of downplaying her involvement in the GM's settlement deal.
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"Unfortunately, Director Syed breached this fundamental ethical responsibility by reading a self-serving statement during the December 11 public meeting, which was intended to downplay or obscure her involvement in an employee complaint," the statement said.
"It's unfortunate some of my colleagues are trying to deflect their breach of the public's trust. There is an independent investigation that confirmed there was not harassment or bullying. It's a cover up for the giveaway of the public's money," Syed told NBC Bay Area in response.
Another board member, Jean Walsh, tells NBC Bay Area in a statement that she also saw a summary of the bullying investigation in Syed prompted by Hursh. She also says it found no bullying or harassment but other allegations were sustained. She says she wasn't given additional details and that she voted against Hursh's deal because she didn't have enough information.
Young and Shaw say they are committed to transparency and accountability. They said the full bullying investigation report has not been released.
NBC Bay Area reached out to Hursh. He did not respond but, separately, gave his final GM report at a meeting this month saying parts of his time as AC Transit's general manager were some of the most difficult times of his life.
"Most of all thank you to the board who understands this difficult decision. Thank you to the riders, employees, taxpayers who entrusted in me with this incredible responsibility."
AC Transit's board has hired Kathleen Kelly as the agency's new interim general manager and it searches for a permanent GM.
