An external investigation into Port of Centralia Commissioner Peter Lahmann concerning alleged ethics violations found no legal wrongdoing or conflicts of interest earlier this month, but investigators recommended amendments to the port’s code of ethics.
Port commissioners on June 21 voted unanimously to begin making those changes.
The alleged ethics violations revolved around Lahmann repeatedly advocating for apprenticeships in port projects while serving as the Washington Department of Veterans Affairs (WDVA) apprenticeship program specialist.
Haggard & Ganson LLP, a third-party law firm based in Bothell, conducted the investigation and issued an 11-page report detailing its findings and along with six code of ethics recommendations, including:
• A requirement to keep the port from incurring Open Public Meetings Act liability by having commissioners give the port commission and administration advanced notice of intent to attend other public events and not attending those events if doing so would create a quorum
• A requirement for port commissioners to state when they are giving their own opinion and not speaking on behalf of the port
• A prohibition on promises not supported by official port policy
• The creation of “prescribed talking points for high-risk matters, such as ongoing litigation”
• A requirement to maintain reasonable decorum and refrain from attacking staff
• The creation of formal committee and liaison assignments for commissioners who remain reasonably free to participate in non-port activities
“When he represents himself, or allows others to represent him, as a port commissioner at public appearances, this blurs lines, creates distrust and discord among the staff and other commissioners, and calls into question Lahmann's commitment to the collaborative process,” the Haggard & Ganson LLP report stated.
The report also stated, “WDVA pays Lahmann a fixed salary, and he receives no bonuses or additional compensation for connecting servicemembers to apprenticeships. As a state-funded agency, WDVA receives no bonuses or additional compensation for reaching apprenticeship goals.”
The report added while Lahmann used to have a private apprenticeship consulting business, he closed it in 2018 when he was first elected as a port commissioner.
“I think (Haggard & Ganson LLP) did what they were supposed to do,” Lahmann said at the June 21 meeting. “I’ve asked for years for a review of policies, and it looks to me like this one’s being reviewed now because we need some way to control me.”
Lahmann still acknowledged a need to update the port’s code of ethics. Both fellow Port of Centralia commissioners Kyle Markstrom and Julie Shaffley expressed a strong desire to amend the code.
“I believe there were six or seven items of recommendation from the investigator that all centered around our port code of ethics. … So I think it would behoove us to heed those recommendations and make those changes,” Markstrom said.
Shaffley said Port of Centralia attorney Ray Liaw, of Van Ness Feldman LLP, told her the port’s current code of ethics meets Washington state standards but doesn’t go beyond that.
“I feel that we could do better, because there is so much gray area and as was said, there’s a lot of blurring of that gray area,” Shaffley said.
Port of Centralia Executive Director Kyle Heaton said port staff would begin drafting a new code of ethics, but gave no timeline as to when it would be presented to the commissioners for consideration. Lahmann said it would be a good idea for him and his fellow commissioners to also review the code of ethics to recommend possible additional changes, which both Markstrom and Shaffley agreed to.
“I think that’s a very good idea,” Shaffley said.
Although he did vote to amend the port’s code of ethics, Lahmann voted against approving warrants and vouchers during the meeting due to concerns over a possible conflict of interest. Among the warrants was the $10,237 bill due to Haggard & Ganson LLP for its investigation into his conduct.
Initially, Lahmann believed he might have to abstain due to the port’s current code of ethics mandating commissioners abstain from voting on a warrant or voucher if they have an associated special interest or relation.
Liaw, who was listening in during the meeting over the phone, explained to Lahmann that while the investigation was directly related to him, he would only have to abstain if he benefited from its approval.
“This is more a question of whether or not you have specific financial or personal benefit to be gained from the port approving this warrant,” Liaw said.
The warrants, including the one for Haggard & Ganson LLP’s investigation, were approved by a vote of 2-1. During commissioner reports at the end of the meeting, Lahmann made a final statement concerning the investigation.
“The Port of Centralia spent $10,237 of your money, plus unaccounted for staff time and expense, to try to shut me up. They failed. The law firm they hired ruled that count one was not true, count two had no evidence, count three had no evidence, count four had no evidence, count five had no evidence, count six had no evidence. There was no evidence because I was right and they were wrong on each count,” Lahmann said, later adding, “Director Heaton and the other two commissioners owe the taxpayers $10,237 they just wasted. They actually say it's unethical for me to disagree with them. That’s outrageous. It’s my job to disagree when they are wrong.”
Lahmann said the Port of Centralia would be better off if all commissioners were independent.
The investigation into Lahmann began after Port of Centralia Auditor Amy Graber raised concerns in a memo about Lahmann’s requests to utilize apprenticeship programs in port construction projects while being the WDVA apprentice program specialist, which were made in four different port meetings going back to February 2021.
Lahmann is currently running for re-election this year to keep his commissioner seat and is facing opposition from Dianne Dorey.
To see more investigation details, visit https://tinyurl.com/yujda2cd.
To view Haggard & Ganson LLP’s investigative report and Grabber’s memo, visit https://portofcentralia.com/documents-center/newsletters/ and look in the “more information” box.
