ISSUES: (1) WHETHER A KING COUNTY COUNCILMEMBER'S ACCEPTANCE OF COMPENSATION FOR WORK DONE AS A VALLEY MEDICAL CENTER BOARD MEMBER VIOLATES THE KING COUNTY ETHICS CODE, and (2) WHETHER RECUSAL FROM ALL DECISION-MAKING IN INSTANCES OF APPARENT CONFLICT IS ADEQUATE TO COMPLY WITH THE KING COUNTY ETHICS CODE.

A King County Councilmember holds the position of Appointed Community Trustee (ACT) on the Board of Trustees of Public Hospital District No. 1, aka Valley Medical Center (VMC). The Board of Trustees is responsible for the operational oversight of VMC. VMC is located in King County. This Councilmember is also a member of the King County Board of Health (BOH) which she serves on as a part of her position as a King County Councilmember.

VMC is part of UW Medicine which operates Harborview Medical Center. Harborview Medical Center is owned by King County. VMC and Harborview Medical Center are separately managed portions of UW Medicine. ACTs are appointed by the Chief Executive Officer of UW Medicine. Councilmembers that serve on the Board of Health participate in the appointment and removal of Trustees of the Harborview Medical Center Board.

ACTs are paid a per diem by VMC in the amount of $104 when engaged in activities requested by VMC. The per diem maximum is $9,984 per year. ACTs may waive payment of the per diem.

ANALYSIS: There are two questions presented here: (1) whether a King County employee's acceptance of compensation for service to another governmental agency violates the Code of Ethics, and (2) whether recusal from decision-making in instances of apparent conflict of interest between this Councilmember's position on the County Council and on the VMC Board is adequate to comply with the Code of Ethics.

According to section 3.04.030(A)(9)(a), a county employee shall be deemed to have a conflict of interest if the employee directly or indirectly:

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

Councilmembers are County employees. King County Code Section 3.04.017(D) states:

"County employee" or "employee" means any individual who is appointed as an employee by the appointing authority of a county agency, office, department, council, board, commission or other separate unit or division of county government, however designated, but does not include employees of the county's judicial branch. "County employee" also includes county elected officials and members of county boards, commissions, committees or other multimember bodies, but does not include officials or employees of the county's judicial branch but does include employees of the department of judicial administration.

Section 3.04.017(B) states:

"Compensation" means anything of economic value, however designated, which is paid, granted or transferred, or is to be paid, granted or transferred for, or in consideration of, personal services to any person.

Section 3.04.017(K) then states:

"Person" means any individual, partnership, association, corporation, firm, institution or other entity, whether or not operated for profit. The term does not include governmental units of the state of Washington or the United States unless so specified.\

As to the issue of compensation, the per diem from VMC does not run afoul of the King County Ethics Code. VMC is a municipal corporation in the state of Washington that was formed under the Public Hospital Districts statute (RCW 70.44). As such, it is this Board’s opinion that the VMC is a governmental unit per KCC 3.04.017(K). Thus, compensation received from VMC for services rendered is not prohibited. This finding is consistent with the Board’s finding in Advisory Opinion No. 1098.

As to the issue of apparent conflict and recusal, the appropriate steps for avoiding violation of the Code of Ethics will need to be assessed by the Councilmember on a case by case basis as these potential conflicts arise. As stated above, this Councilmember’s service on the VMC Board of Trustees involves participation in the operational oversight of VMC. VMC is part of UW Medicine, which contracts with King County to operate Harborview Medical Center. The King County Council is responsible for appointing and removing members of the Harborview Medical Center Board of Trustees.

It is conceivable that the Councilmember may encounter situations wherein her service as an ACT could impair her independence of judgment or be incompatible with the performance of her official duties as a King County Councilmember and/or a member of the BOH. In instances where this Councilmember identifies a potential conflict of interest, the specific facts of that situation should be applied to the Code of Ethics to determine the necessary course of action. Where an actual conflict is unavoidable, the conflict must be disclosed on the record and the Councilmember must abstain from participation in discussions or voting on the issue. This process is consistent with the Conflict Decision-Making Model that the Board opined on in Advisory Opinion No. 1081.

REFERENCES: King County Code of Ethics, sections 3.04.017 (B, D and K); 3.04.030(A)(9)(a); King County Board of Ethics Advisory Opinion Nos. 1081 and 1098.

ISSUED THIS 29TH DAY OF FEBRUARY, 2012.

Signed for the Board, Bruce C. Laing, Chair

Members: Roland Carlson

Gunbjorg Ladstein

Bruce C. Laing, Chair

Louise Miller

Anne J. Watanabe