ADVISORY OPINION 96-11-1151

Safety & Claims/Conflict of Interest

ISSUES: WHETHER AN EMPLOYEE IN SAFETY AND CLAIMS MAY:

• OWN A PRIVATE CONSULTING FIRM, CONDUCT TRAINING SEMINARS AND MARKET THESE SEMINARS ON HIS OWN TIME AND THROUGH BONAFIDE EDUCATIONAL INSTITUTIONS?

• TEAM WITH OR BE HIRED BY OTHER FIRMS TO CONDUCT TRAINING SEMINARS?

• PARTICIPATE IN INSTRUCTING CLASSES FOR HIS OWN FIRM AND ITS BUSINESS ASSOCIATES WHEN KING COUNTY EMPLOYEES ARE ENROLLED

• OFFER TRAINING SEMINARS TO KING COUNTY DEPARTMENTS, AND PARTICIPATE IN INSTRUCTING CLASSES?

• WRITE AND PUBLISH TECHNICAL BOOKS AND PAPERS IN THE AREAS OF HIS OFFICIAL RESPONSIBILITIES?

OPINION: The Board of Ethics finds no conflict of interest if a county employee owns a private consulting firm and offers training courses through a bonafide vocational, educational, or technical training institution or in an independent capacity with other firms. The Board likewise finds no conflict if the employee publishes technical books and papers provided that such work is done without the use of county resources, including the employee's time.

However, the Board finds it a clear conflict of interest for a county employee to participate in any county action when the employee's interests, or the interests of a business associate or partner could be affected, and when such participation conflicts with the employee's official duties and responsibilities on behalf of King County. County employees have a responsibility under the Code of Ethics to clearly separate their private and personal interests from their official duties and obligations. Failure to separate these interests results in a conflict of interest and a violation of the Code.

STATEMENT OF CIRCUMSTANCES: A Safety and Health Officer in the Safety and Claims Division of the Office of Human Resource Management owns a private consulting firm that specializes in environmental, safety and health training. The employee is a Certified Safety Professional and currently serves in an official capacity as an internal consultant for the Solid Waste Division in the Department of Natural Resources; the Roads and Fleet Divisions in the Department of Transportation; the Department of Development and Environmental Services; and, the Parks Department. According to a recent classification study, the essential duties of the employee's position include: providing consultant and information services for internal and external customers; negotiating contracts and interlocal agreements; coordinating the work of outside agencies, vendors, and volunteers; and, developing, tracking, and evaluating projects. The employee also offers a number of safety courses through a local community college.

ANALYSIS: In Advisory Opinion 1127, the Board of Ethics considered an issue that has some parallels to this case. Among the questions posed to the Board in that case were whether a county employee could work as an independent consultant; whether he could conduct seminars on his own time for compensation; and whether he could publish technical papers. In this opinion, the Board held that a county employee may engage in independent consulting provided that no county resources are used to conduct the business of the firm, and that the consulting work did not impair independence of judgment or action in the performance of official duties. In addition, the employee was free to publish technical papers and market his guidebook as long as he did so on his own time and without the use of county resources. Therefore, the employee in this instance may write and publish articles and books on his own time and without the use of county resources and would not violate the Code.

With regard to the other questions raised in this case, the Code of Ethics does not prohibit ownership of a private consulting firm, the conduct of private business on an employee's own time, nor collaboration with other persons in a business relationship, provided that the employee's private interests and business associations do not present a conflict with his or her official duties and responsibilities under the Code. A conflict of interest would occur if an employee:

Accepts, directly or indirectly, any gift, favor, loan, retainer, entertainment, travel expense, compensation or other thing of value from any person doing business or seeking to do business with the county when such acceptance may conflict with the performance of the employee's duties. (K.C.C. 3.04.030 D)

Or when an employee:

Participates in, influences or attempts to influence, directly or indirectly, the selection of or the conduct of business or a transaction with a person doing or seeking to do business with the county if the employee has a financial interest in or with said person. (K.C.C. 3.04.030 E)

Or when an employee:

Enters into a business relationship outside county government with any person with regard to a matter for which the employee has responsibility as a county employee. (K.C.C. 3.04.030 K)

The Board acknowledges that a conflict is unlikely to occur whenever private business activities are clearly separated from and employee's official duties and responsibilities.

The issue of whether the county employee may offer training courses to King County agencies either solely through his private consulting firm, or in conjunction with other business associates, however, raises serious conflict of interest concerns. In this case, the county employee acknowledges a business relationship with another consulting firm that recently provided training to two county agencies where the county employee provides internal safety and health consultant services–the Department of Natural Resources and the Department of Transportation. In addition, he arranged for the business associate to conduct the courses, and coordinated course scheduling with these county agencies.

The Code clearly prohibits an employee from entering into a business relationship outside County government with any person with regard to a matter for which the employee has responsibility. In this case, the responsibility of the employee stems from official duties as a technical expert in safety and health training, and his role as an internal consultant to county departments where a business associate conducts training. Likewise, he could not contract to provide this training through his own consulting firm because his official responsibilities for King County would create a conflict of interest. The Board of Ethics therefore advises the county employee to abstain from any and all involvement with a business associate when such involvement concerns the conduct of business with a King County agency. The employee should likewise refrain from personal or professional recommendations of any business associate to county agencies that seek training.

The employee is reminded that subsection 3.04.037 of the Code of Ethics requires county employees with a potential conflict of interest to notify his or her supervisor in writing, whereupon the supervisor shall act to resolve the conflict in writing.

Independent Training Courses and Courses through Educational Institutions

In Advisory Opinion 1069, the Board held that it would not be a conflict of interest for a county employee to instruct classes at a bonafide vocational training institute. The Board therefore finds no conflict of interest if the county employee offers environmental, safety and health courses through a local technical training college or other educational institution provided he does not market or recommend this course to county employees or county agencies. There is no conflict if a King County employee attends this course.

References:King County Code of Ethics, subsection 3.04.017(J), subsections 3.04.030 E, I and K; Advisory Opinions 1069 and 1127.

ISSUED THIS ___________ DAY OF ___________________, 199__.

Signed for the Board: _______________________________________.

Roland H. Carlson, Acting Chair

Members:

Ron Carlson Acting Chair
Paul Pruitt
Dr. Lois Price Spratlen
Lembhard Howell

RHC/mag

cc:

Ron Sims, King County Executive
King County Councilmembers
Rella Foley, Interim Director-Ombudsman, Office of Citizen Complaints
Robert I. Stier, Senior Deputy Prosecuting Attorney and Counsel to the Board of Ethics
Ricardo Cruz, Director, Office of Human Resource Management
Tim Drangsholt, Manager, Safety and Claims Division, OHRM