McIver accused of conflict of interest by ethics director

Seattle City Councilmember Richard McIver was accused Wednesday of violating the city's conflict-of-interest law when he awarded a contract last year to a consulting firm employing a longtime friend who hosted McIver's annual stays at a Virgin Islands condominium.

McIver awarded the $37,000 no-bid contract early last year to Griffin, Hill & Associates (GHA), a firm that his longtime friend Joann Francis had joined months earlier, according to an ethics charge announced by Wayne Barnett, executive director of the Seattle Ethics and Elections Commission.

The contract, which was later boosted to $42,000, called for GHA to evaluate the performance of the city auditor's office. Barnett said while GHA was qualified to do that work, McIver should have refrained from participating in the contract award. Seattle's ethics law forbids public officials from taking any action that creates even the appearance of a conflict of interest.

McIver vowed to fight, issuing a written statement strongly disputing Barnett's allegations.

"These charges are frivolous and totally without merit," McIver said. "The council's standard and existing contracting procedures were followed to the letter in this case and the contract was authorized by the Council President."

McIver described the "sole allegation" against him as having participated in the award of a contract "with a company where a social acquaintance of mine is a minority partner."

He added: "If that were prohibited conduct, few, if any local companies could do business with the city."

GHA also issued a lengthy statement downplaying Francis' role in the contract. The statement said McIver, as then-chairman of the council's finance committee, first became interested in hiring GHA to evaluate the city auditor in 2005, well before Francis joined the firm.

McIver had "a series of discussions" with the firm's co-founder, Carl Griffin, and sought the approval of then-Council President Nick Licata and other members of the finance committee before going ahead with the contract.

"GHA's ability and qualifications to perform the work authorized by the Seattle City Council was in no way connected to or dependent upon Joann Francis' qualifications, experience or friendship with Councilmember McIver," the statement said. It also noted that GHA was subsequently hired by the city auditor's office to advise it on "best practices."

In Wednesday's documents outlining the ethics charge, Barnett said the personal ties between McIver and Francis should have barred the council member from handing the GHA contract to his friend's firm.

For at least 10 years, McIver has been a guest of Francis' and her husband, Roy Francis, at their Virgin Islands condominium, usually leaving Seattle toward the end of December and returning early in January, according to the ethics charge.

Joann Francis, a former Sound Transit executive and attorney, joined GHA in June 2006. That September, McIver met in his office with Francis and Griffin to discuss the firm's qualifications for an evaluation of the city auditor's office.

A few months later — between Dec. 26, 2006, and Jan. 7, 2007 — McIver vacationed with the Francises at their condominium.

Shortly after returning, McIver executed the $37,000 contract with GHA, according to the ethics charge.

The city typically requires competitive bids for contracts over $42,000, but smaller contracts have few restrictions and no council vote was required for the GHA contract.

Barnett said McIver was clearly the main sponsor of the contract, even though Licata also signed off on it.

"He was the prime, moving force behind this contract, and two weeks before he signed it he was vacationing with Joann Francis in the Virgin Islands," Barnett said. "This isn't about whether Griffin Hill was qualified to do the work, it is just about whether Councilmember McIver should have been in the middle of the contract."

Questions about the GHA contract were first raised in a February 2007 story in the Seattle Post-Intelligencer. McIver told the newspaper at the time he wanted to hire GHA, in part, because it was a minority-owned firm.

Barnett said he launched the ethics investigation after receiving a complaint in October.

The ethics charge was filed after McIver refused to agree to a voluntary settlement proposed by Barnett. Terms of that settlement were not disclosed, but such agreements frequently involve an admission of wrongdoing and a fine.

McIver declined to answer further questions about the ethics charge Wednesday, referring calls to Assistant City Attorney Bill McGillin, who has been assigned to defend him. McGillin declined to comment.

The ethics charge will be evaluated by the seven-member ethics commission, which could impose fines of up to $5,000 for each violation. Because McIver awarded the contract, increased it with the amendment and signed off on invoices, he could face several violations, Barnett said.

This is the latest in a string of problems for McIver in recent years. A council member since 1997, he was charged with assault last year after police said that, during a profane tirade, he grabbed his wife by the throat. The charges were dropped after she declined to cooperate. Francis, who is an attorney, initially represented McIver in that case.

In 2004, McIver agreed to pay a $200 fine to the ethics commission for accepting a lunch paid for by former Gov. Al Rosellini, who was lobbying on behalf of a zoning change sought by a Lake City strip club.

Jim Brunner: 206-515-5628 or jbrunner@seattletimes.com

A story published on May 8, 2008 was corrected on May 16, 2008. In a previous version the ethics charge against Seattle City Councilmember Richard McIver erroneously said the fine was up to $500 per violation. The Seattle Ethics and Elections Commission may impose fines of up to $5,000 for each violation of the city's ethics laws.