Advisory Opinion 1086

Human Services/Non-Profit Board Membership

ISSUE: WHETHER A RESPONSIBLE EMPLOYEE'S MEMBERSHIP AS A DIRECTOR ON THE BOARD OF A NON-PROFIT AGENCY CONSTITUTES A CONFLICT OF INTEREST UNDER THE CODE OF ETHICS?

Opinion: The Board of Ethics finds that non-profit board membership for agencies which do business with the County may be incompatible with an individual's official responsibilities as a County employee if that membership interferes with, or could interfere with, the exercise of independent judgement or action.

Statement of Circumstances: Within the Mental Health Division, the Project Manager for Access to Community Care and Effective Services and Supports (ACCESS) manages all activities relating to the implementation of a five-year, $8.5 million research and demonstration project to create integrated systems of care for homeless, mentally ill adults. As the Project Manager, this employee negotiates and implements a service contract with the Downtown Emergency Service Center (DESC), which in turn requires the negotiation of working agreements with other provider agencies, including Health Care for the Homeless of Seattle-King County, Inc. (HCH), a non-profit corporation. The working agreement between DESC and HCH specifies that HCH will participate in a coordinated system of service delivery managed by DESC. There is no fiduciary relationship between the Mental Health Division and HCH. HCH does, however, receive funding from the Seattle-King County Department of Public Health. The ACCESS Project Manager would like to serve as a director on the board of HCH.

Analysis: In Advisory Opinion 1005, the Board of Ethics established three criteria for accepting membership on a non-profit board for agencies which do business with King County:

• Board membership can involve no compensation or benefits as defined by section 3.04.030(C) and which includes travel expense, service, information, gifts, or things of value.
• County employees must disclose their membership on a non-profit board to their immediate supervisor.
• And, the employee must recuse himself or herself from any participation in any County action that affects the funding of the organization of which the individual is a member.

Although the employee in this instance has met the criteria established for non-profit board membership, this issue also involves the question of responsibility as a County employee. In Advisory Opinion 1039, the Board concluded that "responsibility" as used in the Code of Ethics is primarily a function of work activity. While the Board determines level of responsibility on a case-by-case basis, the "responsible" employee meets certain criteria. That employee

• substantially participates in decisions relating to persons who do, or seek to do, business with the County;
• is held accountable for the decisions he or she makes;
• exercises discretion with regard to his or her actions and decisions;
• and, has the power to affect action either directly because of influence, or indirectly because recommendations are given considerable weight by decision makers.

Based on these criteria, the ACCESS Project Manager for the Mental Health Division clearly possesses considerable responsibility, and not only influences, but has direct decision-making authority over service contracts involving DESC and, as a consequence, HCH. Under section 3.04.030(I) of the Code of Ethics, an employee incurs a conflict of interest if that employee:

Engages in or accepts compensation, employment, or renders services for any person or a governmental entity other than King County when such employment or service is incompatible with the proper discharge of official duties or would impair independence of judgement or action in the performance of official duties.

In this particular instance, the close relationship among the ACCESS Project, DESC, and HCH, when combined with the responsibility of the ACCESS Project Manager, could lead to a conflict of interest if the Project Manager continued service on the HCH Board of Directors.

References: King County Code of Ethics, sections 3.04.030(C) and (I); Advisory Opinions 1005 and 1039.

ISSUED THIS ___________ DAY OF ___________________, 199__.

Signed for the Board: Dr. J. Patrick Dobel, Chair

Members:

Dr. J. Patrick Dobel, Chair
Timothy Edwards, Esq.
Rev. Paul Pruitt

JPD/mag

cc:

Gary Locke, King County Executive
Metropolitan King County Council Members
Susan Baugh, Director-Ombudsman, Office of Citizen Complaints
Robert I. Stier, Senior Deputy Prosecuting Attorney and Counsel to the Board of Ethics
Barbara J. Gletne, Director, Department of Human Services
Joanne Asaba, Acting Manager, Mental Health Division