STATE OF WASHINGTON

EXECUTIVE ETHICS BOARD

 

REGULAR BOARD MEETING MINUTES

 

April 9, 1999

 

The Executive Ethics Board convened in Regular Session at 10:25 a.m. at the Lee Ann Miller AGO Conference Center, 4224 6th Avenue SE, Building 1, Lacey, Washington 98504.

 

Present:                Cheryl Rohret, Vice Chair

Gwendolyn Foyd, Board Member

Paul Gillie, Board Member

Sutapa Basu, Board Member

 

Also Present:       Meg Grimaldi, Executive Secretary

William Collins, Legal Counsel

 

 

1.     PRELIMINARY BUSINESS

       a.  ROLL CALL.  Vice Chair Rohret, Board Members Gillie, Foyd and Basu were present.  Ms. Lim had an excused absence.  Also present were Executive Secretary Meg Grimaldi and Counsel Bill Collins.

 

       b.  APPROVAL OF AGENDA.  Ms. Grimaldi recommended that item 4, Settlements, be moved to item 2 on the agenda, and that Draft Advisory Opinion 99-04 be discussed in conjunction with the Stipulation and Order in EEB Case Number 98-06.  The Board accepted the staff recommendation.

 

c.  APPROVAL OF MINUTES FROM THE REGULAR MEETING ON MARCH 12, 1999.  Board member Foyd moved to approve the minutes of the March 12, 1999 meeting.  Board Member Gillie seconded the motion and the Board unanimously approved.

 

2.    SETTLEMENTS AND DRAFT ADVISORY OPINION 99-04 [Agenda Amendment]

       a.  Stipulation and Order in EEB Case No. 98-06.  AAG Richard McCartan presented the proposed Stipulation and Order in EEB Case No. 98-06 resolving allegations that former UW Husky Football Coach Jim Lambright violated the state’s ethics law by accepting outside compensation in violation of RCW 42.52.110 and RCW 42.52.120.  Mr. McCartan introduced Mr. Lambright’s counsel, Mr. Tracy Codd and Mr. Kurt Bulmer.  Mr. McCartan reviewed mitigating circumstances that led to agreement on payment of investigative costs, including the cooperation of the University of Washington and Mr. Lambright in the investigation, and the fact that Mr. Lambright received outside compensation pursuant to contracts that had been approved by the university.

 

       Ms. Grimaldi reviewed Draft Advisory Opinion 99-04 relating to the receipt of outside compensation by university coaches.  Ms. Grimaldi emphasized that the intent of the opinion was not to prohibit the receipt of outside income, but rather to ensure that such compensation complied with the requirements of RCW 42.52.  Ms. Grimaldi reviewed the general requirement that state officers and employees could not receive outside compensation for performing duties for the state of Washington, and then discussed how various provisions of RCW 42.52 would affect outside compensation received by university coaches.

 

       b.  Stipulation and Order in EEB Case No 98-08.  Ms. Grimaldi presented the proposed Stipulation and Order in EEB Case No. 98-08 resolving allegations that Ms. Cyndy Brunken, an employee at Washington State University, violated the state’s ethics law through her personal use of state resources.

 

Adjournment to Executive Session

       At 11:00 a.m., Vice Chair Rohret called the Board into Executive Session for the purpose of deliberating on a quasi-judicial matter.

 

Resumption of Regular Meeting

       At 11:30 a.m., Mr. Collins announced that the Board had concluded its deliberations and that the regular meeting would continue.  The Board announced its acceptance of agreements in EEB Case Nos. 98-06 and 98-08.

 

3.  REQUESTS FOR ADVISORY OPINIONS [Agenda Amendment]

       a.  Draft Advisory Opinion 98-10 relating to receipt of door prizes.  Mr. Collins presented the Board with an alternative draft for consideration.  Mr. Collins explained various approaches to the question of whether door prizes could be received.  The Board reached a consensus that it would review the different approaches and continue discussion on this issue at the May meeting.

 

Board member Gillie left the meeting at 11:40 a.m.

 

       b.  Draft Advisory Opinion 99-02 relating to the operation of a spouse’s business within a facility supervised by her husband.  Ms. Grimaldi reviewed a draft opinion that would address conflict of interest concerns raised by a spouse who was operating her business within a state facility under the supervision of her husband.  Ms. Grimaldi outlined concerns that could be raised under RCW 42.52.020, RCW 42.52.140 and RCW 42.52.150, and RCW 42.52.160.  Vice Chair Rohret and Board Member Basu expressed concern that the use of confidential information could also be a concern and asked that the analysis should also include RCW 42.52.050. 

 

       Ms. Gail Swanson asked to address the Board and expressed her concern that the spouse’s business could be disadvantaged if she was not allowed to operate her business in the facility, but others were.  Ms. Grimaldi advised that no other business operated from the facility, and that a conflict exists because the husband supervises the facility and also has an interest in his wife’s business.  Ms. LouAnn Dunlap expressed the opposite concern, that there was a conflict based on appearance.  Ms. Dunlap said the relationship creates the likelihood that the spouse’s business could be advantaged by her husband’s position.

 

       The Board agreed the draft should be revised to include concerns under RCW 42.52.050.

 

       c.     Draft Advisory Opinion 99-03 relating to organization of non-profit organization by state employees.  Ms. Grimaldi reviewed a draft opinion analyzing whether state employees could organize and operate a non-profit corporation from within a state agency.  Ms. Grimaldi outlined concerns that confidential information could be used either to disseminate information about the corporation or to determine whether certain agency clients were eligible for assistance from the corporation.  Additional concerns were raised under RCW 42.52.070 in that the corporation would secure a special privilege or exemption by being allowed to operated from within a state agency; and, RCW 42.52.160(1) in that the intended scope of activities by the corporation was likely to exceed de minimis use standards under RCW 42.52.160(3) and WAC 292-110.  [Note:  Advisory Opinion subsequently issued as Advisory Opinion 99-02.]

 

       The Board unanimously approved the Advisory Opinion.

 

4.    CONTRACT, Schmidt/Clover Park.  Ms. Grimaldi proposed potential resolutions for a contract between a state employee and Clover Park Technical College because the contract appeared to be related to the performance of official duties.  The Board agreed that Ms. Grimaldi should work with David Stolier, AAG, to attempt to resolve this matter.  Board Member Basu asked that Mr. Schmidt provide information on the amount of working hours and non-working hours he spent on software development.

 

STAFF BRIEFING.  Ms. Grimaldi updated the Board on a letter sent by the Chair to the Public Disclosure Commission relating to the Petition of the University of Washington for a Declaratory Order on whether gift monies or discretionary funds were public or private money.  Ms. Grimaldi explained that a determination that the monies were private might raise concerns under RCW 42.52.140 and RCW 42.52.150, and that this could be a matter for the Board to consider at a later date.  Ms. Grimaldi also read a letter from Fred Olson, Director of Administration, AGO, which informed the Board that it was likely there would be no funding for an additional investigator.  Ms. Grimaldi also asked Board members whether the July meeting could be moved until later in the month. 

 

       By consent, Board members agreed to move the July meeting to July 30.

 

PUBLIC COMMENTS/BOARD COMMENTS.  Harvey Gertson expressed his appreciation that the Board is always willing to listen to the concerns and comments of attendees during meetings.

 

Vice Chair Rohret announced a short recess at 1:05 p.m. to be followed by an Executive Session to receive and evaluate complaints against public employees.

 

EXECUTIVE SESSION.  The Executive Session convened at 1:15 p.m. and ended at 1:25 p.m.  Mr. Collins stepped into the hall and ascertained that no one was waiting.

 

REGULAR MEETING, resumed.  The regular meeting resumed at 1:25 p.m. 

       The Board discussed and adopted Advisory Opinion 99-04 relating to the receipt of outside compensation by university coaches.  [Note:  This Advisory Opinion was issued as Advisory Opinion 99-03.]

 

ADJOURNMENT. 

       The public meeting adjourned at 1:35 p.m.

 

 

                                                                         Approved by the Executive Ethics Board

 

                                                                         ______________________________________

                                                                         MARGARET A. GRIMALDI, Executive Secretary

 

                                                                         Date:  _________________________________