Recent Appeals Court Decision Provides Guidance on Conflict of Interest Questions

In City of Raymond v. Michael Runyon, ___Wn.App. ___ (11/20/98), a city public works commissioner challenged a finding that he violated RCW 42.23.030 because his interests in city contracts conflicted with his duties as an elected official. RCW 42.23.030 prohibits a municipal officer from being beneficially interested, directly or indirectly, in any contract made by, through or under his supervision. One exception, RCW 42.23.030(6), exempts from this prohibition contracts having a value of $9000 or less in a calendar year.

The commissioner owned a quarry which sold rock to contractors holding city contracts authorized both before and after he took office. In 1996 he sold the city, both indirectly (to city contractors) and directly, over $92,000 worth of rock. In so doing the commissioner attempted to insulate himself from violating the statute by delegating authority to approve change orders (authorizing contractors to purchase additional rock) on preexisting contracts to a subordinate and by donating rock to the city when yearly direct sales approached the $9000 statutory limit.

The court ruled, however, that while the commissioner could delegate certain duties, such as signing change orders, ultimate responsibility lay with him as public works commissioner. Contracts made through his office, or change orders signed through his office, were his legal responsibility, whether or not he formally approved them. The court noted that good faith efforts to comply are not a remedy for the violation and that any contract violating the statute will be void as to the interested official's interest, and result in a statutory fine and forfeiture of office.