Advisory Opinion 94-7-1100
State Auditor/Contracting with Spouse

ISSUE: WHETHER IT WOULD BE A CONFLICT OF INTEREST FOR A COUNTY ADMINISTRATOR TO NEGOTIATE A CONTRACT FOR SERVICES WITH THE EXECUTIVE DIRECTOR OF A BUSINESS ENTERPRISE WHEN THEY ARE RELATED BY MARRIAGE?

Opinion: Based on the facts presented, the Board of Ethics concludes that the County employee in this instance has a clear conflict of interest because she participated in a contractual process with an outside agency headed by her spouse.

The Board of Ethics finds that a County employee has a clear conflict of interest when that employee participates, even if only through supervision, in a County action and has a personal interest which could interfere with the exercise of independent judgement or action in the performance of official duties. Whenever a County employee recognizes the potential for a conflict of interest, the employee must recuse himself or herself from participating in a County action involving that interest.

Statement of Circumstances: In 1993 the South King County Alcohol and Drug Recovery Center (SKCDARC) agreed to provide case management and housing/recovery center placement to female clients served by the North Rehabilitation Facility Women's Recovery Program. The North Rehabilitation Facility is a division of the Seattle-King County Department of Public Health. The administrator of the facility is married to the Executive Director of the SKCDARC. The State Auditor has asked the Board of Ethics to determine whether it would be a conflict of interest for the two agencies to enter into a contract for services under these circumstances.

Analysis: In 1990 a federal grant was awarded the Department of Public Health to provide a comprehensive program of inpatient and outpatient alcoholism and substance abuse treatment and support services for incarcerated men and women. The specific goal of this grant was to allow for continued rehabilitative treatment of substance abuse problems after release. When the grant was initially awarded, eleven separate community-based, non-profit agencies contracted with Public Health to provide out-patient follow-up treatment, and grant money was distributed evenly among the agencies. A 1993 review of the grant awarding process led to a more targeted approach to rehabilitative treatment. The primary goal now was to provide this care to previously incarcerated women. In South King County, the SKCDARC is the only community-based, non-profit agency that provides adult outpatient services to women.

The Board has twice been asked to decide questions involving potential conflicts of interest arising from the work activity of a County employee's spouse. In Advisory Opinion 1024, the spouse of an employee for the Board of Appeals and Equalization contracted computer consulting services to citizens who came before the Board of Appeals. In that instance the Board found there was no conflict of interest because the spouse:

was not seeking to do business nor was currently doing business with the county, and because the spouse had never been awarded a County contract in the County employee's area of responsibility. Further, the employee had no vote on the Board of Appeals and Equalization and did not substantially participate or recommend policy to the Board.

In Advisory Opinion 1035, the spouse of a County department director was chair of the University of Washington's Cascade Center for Public Service. The Cascade Center provided training programs, and the department sent its employees to the center for training. Although the department director attempted to remove any potential conflict of interest by having the deputy director and division managers make training decisions, the Board was concerned that the director still supervised the deputy director and division managers. Instead, the Board advised the director to refer all proposals from the Cascade Center to the County Executive.

The present issue is unlike the situation addressed in Advisory Opinion 1024 because the spouse is doing business with the County and has been awarded a contract in the employee's area of responsibility. The employee also substantially participates in County actions relating to the provision of rehabilitative and support services for incarcerated and dependent women. Section 3.04.030(B) of the Code of Ethics provides that a county employee shall be deemed to have a conflict of interest if the employee directly or indirectly:

Is beneficially interested, directly or indirectly, in any contract, sale, lease, option or purchase that may be made by, through, or under the supervision of the employee, in whole or in part, or accepts, directly or indirectly, any compensation, gift or thing of value from any other person beneficially interested therein;

while section 3.04.030(E) provides that an employee could have a conflict if he or she:

Participates in, influences, or attempts to influence, directly or indirectly, the selection of, or he conduct of business or a transaction with a person doing or seeking to do business with he county if the employee has a financial interest in or with said person;

In this instance, there would clearly be a perception that the administrator of the North Rehabilitation Facility was, at the very least, indirectly involved a contract in which she had a personal and beneficial interest. Contracting for any type of service with an agency headed by a spouse invites such a perception.

References: King County Code of Ethics, sections 3.04.030 (B and E); Advisory Opinions 1024 and 1035.

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
Department Directors and Division Managers
Duane Leonard, CPA, Assistant Audit Manager, Washington State Auditor
Susan Baugh, Director-Ombudsman, Office of Citizen Complaints
Sharon Stewart Johnson, Acting Director, Department of Public Health
Fred Stephens, Director, Department of Executive Administration
ATTN: Winnie Ng, Contracting Officer
Robert I. Stier, Senior Deputy Prosecuting Attorney and Counsel to the Board of Ethics
Patrick Vanzo, Manager, Alcoholism and Substance Abuse Division