Seattle panel says McIver violated ethics

The Seattle Ethics and Elections Commission found Wednesday that City Councilmember Richard McIver violated the city's ethics code when he awarded a no-bid contract to a company after vacationing at the Virgin Islands condominium of one of the company's owners.

McIver was fined a total of $1,000 for two violations: one for signing the $37,000 contract and another for expanding it to $42,000. The commission could have fined him up to $10,000.

Commission Chair Michele Radosevich said the commission believed McIver did not intend to violate the code and that he did not receive any private benefit for awarding the contract.

The issue in question was whether it would appear to a reasonable person that McIver's judgment had been impaired by his vacation stays.

"The ethics code of the city of Seattle requires the decision-makers to consider the appearance of their decisions as well as the reality of their decisions," Radosevich said.

"It seems I didn't do anything wrong, but I am guilty," McIver said in an interview after the order was approved in a 5-0 voice vote. "I believe my judgment has not been impaired."

The commission still has to sign the order. McIver's lawyer, Bill McGillin from the city attorney's office, has not decided whether to appeal.

The two-day hearing, which included testimony from McIver and other current and former council members and the city's budget director, was the first in recent history because city officials often agree to settle.

As chair of the finance and budget committee, McIver had spent several years working with the city auditor on creating a work plan and job description. During the fall 2006 budget deliberations, McIver, then-Councilmember Peter Steinbrueck and then-Council President Nick Licata agreed to hire a consultant to audit the auditor.

The city keeps a roster of preapproved contractors that departments can hire without competitive bidding. In 2006, the preapproved contractors could be hired without competitive bids for up to $232,000.

McIver said from the outset he wanted to hire a minority- or woman-owned small business, and Griffin, Hill was the only prequalified firm with the skills for that contract. McIver's longtime friend and attorney Joann Francis joined Griffin, Hill in 2006, eventually becoming a 10 percent owner.

McIver vacationed at Francis' condominium in the Virgin Islands three times. McIver's wife also joined them on at least one trip. Francis and her husband have vacationed at the McIvers' property in Mexico twice, according to testimony.

One Virgin Islands vacation took place at the end of 2006, days before McIver signed a $37,000 contract hiring Griffin, Hill. He later increased the scope of work and the contract to $42,000.

"He was just too close to Ms. Francis to be involved in the awarding of the contract," said commission Executive Director Wayne Barnett, who filed the charges after receiving a whistleblower's complaint in October.

Barnett has not disclosed the complainant's identity.

In her ruling, Radosevich said the contract with Griffin, Hill had been beneficial to the city and lauded McIver's effort to hire a minority-owned firm.

Radosevich and members Robert Mahon, Tarik Burney, Lynne Iglitzin and Ed Carr voted in favor of the ruling.

In June, Commissioner Mel Kang recused himself because he was involved in a land-use decision in which he had publicly criticized McIver. Nancy Bickford Miller is on leave.

Sharon Pian Chan: 206-464-2958 or schan@seattletimes.com