PDC fines former Olympia City Manager Steve Hall $10,000 for 2019 mailer on I-976
The state Public Disclosure Commission has found that former Olympia City Manager Steve Hall violated state law for authorizing the use of city resources and staff to print and distribute a mailer opposing Initiative 976 last October.
Per a stipulation of facts and penalties agreed to by Hall and PDC staff, Hall agreed Thursday to a $10,000 fine, half of which he will not have to pay as long as he does not violate campaign finance law within the next four years.
Hall agreed in the stipulation document that he ran afoul of RCW 42.17A.555 by allowing the creation of a mailer which encouraged recipients to “Vote No” on I-976 in multiple places. State law prohibits public officials from using the facilities of their office to support or oppose a candidate or proposition on the ballot.
Olympia reportedly spent more than $9,000 in materials and staff time to create the mailer, which drew the ire of I-976 leader Tim Eyman and multiple citizens who filed complaints with the PDC.
“In this instance, we felt very clearly as a pretty seasoned staff that we had followed the rules of the PDC, that we were following the allowance that we could do a one-time, factual, informational flyer about the impacts of I-976,” Hall said.
“Our intent was to follow the law and meet the requirements for a factual, which we did — which we thought we did.”
Voters approved I-976 in November, which capped car tab fees at $30 a year statewide. The mailer asserted the initiative would cost Olympia $1.5 million per year from its annual street repair budget.
The constitutionality of the initiative is currently being reviewed by the state Supreme Court.
Hall, city legal counsel and other city officials interviewed by the PDC asserted during the investigation that the city had produced similar, fact-based mailers about ballot initiatives and that the “Vote No” language was a reflection of action taken by the city council in opposition of the initiative.
However, investigators found that unlike the I-976 circular, previous mailers regarding ballot propositions had included the statement “FOR INFORMATION PURPOSES ONLY. Not intended to support or oppose the Proposition.” The PDC also took issue with the fact that the mailer was only sent to registered voters.
“Here, it is not the factual information in the mailer itself that is objectionable, but rather the use of city resources to urge the public to vote a certain way, as it was done here by urging a ‘vote no,’” Assistant Attorney General Chad Standifer said during Thursday’s PDC hearing.
The City of Olympia received a letter from the PDC reminding Mayor Cheryl Selby and the Olympia City Council about the prohibitions contained within RCW 42.17A.555 and encouraging them to review PDC guidelines.
“The city accepts the decision of the PDC and will continue to learn and redouble our efforts to follow PDC guidelines,” current City Manager Jay Burney said.
Standifer told members of the commission during the hearing Thursday that PDC staff dismissed the allegations against the Olympia City Council and city staff because investigators could not find evidence to substantiate claims that anyone else in a position of authority had specific knowledge of the contents of the mailer.
The investigation report produced by PDC Compliance Officer Kurt Young includes evidence that led commission members to question whether that was the case, including notes on an interview Young conducted with Olympia Public Works Director Rich Hoey. Young also interviewed Kellie Purce Braseth, strategic communications director for the city of Olympia, and received written correspondence from the city attorney’s office during the course of the investigation.
According to Young, Hoey said during the interview that Olympia City Attorney Mark Barber was present for a meeting with Hall that included discussion of the “Vote No” language. Attorney Jeff Myers, sitting in on the interview as legal counsel representing the city, “asserted attorney/client privilege stating those conversations were confidential and instructed Mr. Hoey to not elaborate or provide any additional information other than being present for the conversation.”
Public Disclosure Commissioners Russell Lehman and Nancy Isserlis questioned whether the buck truly stopped with Hall, as the former city manager had stated a few minutes earlier. Young replied that Selby told the PDC that she wasn’t aware of the mailer until it arrived in her mailbox, and Standifer said investigators were unable to determine whether Barber advised Hall to include “Vote No” on the mailer, in part because of attorney-client privilege.
As to the question of whether there was a “wink and a nod” from City Council members in favor of the illegal language, as alleged in one of the citizen complaints, Hall replied the implication was “absolutely bogus and without facts.”
The commission recessed into executive session for about 15 minutes to consider its options before returning to accept the stipulation as presented, with Lehman voting against.