Arthur West v. Seattle City Council

Court of Appeals of Washington·Decided September 8, 2020·No. 79920-7·Published

Opinion

IN THE COURT OF APPEALS FOR THE STATE OF WASHINGTON

JAMES EGAN, individually, ) No. 79920-7-I )

Plaintiff, )

v. )

)

CITY OF SEATTLE, a Washington ) municipal corporation, ) DIVISION ONE )

Defendant. )

)

)

ARTHUR WEST, )

)

Appellant, ) PUBLISHED OPINION )

v. )

)

SEATTLE CITY COUNCIL, CITY OF ) SEATTLE, LISA HERBOLD, BRUCE ) HARRELL, KSHAMA SAWANT, ROB ) JOHNSON, DEBORA JUAREZ, MIKE ) O’BRIEN, SALLY BAGSHAW, TERESA ) MOSQUEDA, LORENA GONZALEZ, )

)

Respondents. )

)

ANDRUS, A.C.J. — Arthur West challenges the summary judgment dismissal of his complaint alleging that members of the Seattle City Council violated the Open Public Meetings Act 1 (OPMA) when they repealed the Employee Hour Tax

1 Ch. 42.30 RCW.

(EHT). He argues the council members’ communications regarding possible repeal of the tax constituted collective intent to transact official business outside of a public meeting. We conclude the record shows genuine issues of material fact. Accordingly, we reverse and remand for further proceedings consistent with this opinion.

FACTS

A. Employee Hour Tax On May 14, 2018, the Seattle City Council passed an ordinance establishing an annual tax of $275 per full time employee on the City’s largest businesses (Employee Hour Tax or EHT). Four council members acted as primary sponsors for the legislation—Lisa Herbold, Lorena González, Teresa Mosqueda, and Mike O’Brien.

Shortly after the EHT’s passage, polls revealed strong opposition to the legislation. A committee named No Tax on Jobs formed to support a referendum to repeal the ordinance. It immediately began collecting signatures to qualify the referendum for the November 2018 ballot.

Several weeks later, EMC Research invited O’Brien, Herbold, González, and Mosqueda, as well as community representatives, to participate in a telephone conference call to discuss the results of polling it had conducted relating to the EHT ordinance. The call was scheduled for Saturday, June 9, 2018. The events during and after this conference call gave rise to this suit.

B. Events from June 9, 2018 to Repeal of the EHT on June 12, 2018 1. Saturday, June 9, 2018 Herbold, O’Brien, and Mosqueda attended the June 9th call. González, who was in Washington, D.C. that weekend, also participated for a short time. Seattle Senior Deputy Mayor Mike Fong and Deputy Mayor Shefali Ranganathan, representatives of Mayor Jenny Durkan, participated in the conference call as well.

During the course of this call, a participant—not an employee of the City—

suggested the possibility of a legislative repeal of the EHT. Herbold spoke in favor of considering such a repeal. After the call ended, Herbold and O’Brien discussed the polling results, their concerns about the anticipated referendum to repeal the EHT, and the challenges they believed they would face in opposing the referendum.

O’Brien also spoke to Mosqueda, separately, about the poll results.

Mosqueda indicated she favored continuing a political campaign to support the EHT and would not support a potential repeal of the tax, even if it was politically unpopular, unless there was suitable replacement legislation. O’Brien indicated he understood her reasoning but also expressed his concern about the poll results, the likely referendum to repeal the EHT, and the related political fight.

O’Brien then spoke with Deputy Mayor Ranganathan. They discussed their reactions to the polling results and their concerns about the referendum. Then around 6:00 p.m. that evening, Deputy Mayor Fong sent O’Brien information for a conference call with Mayor Durkan for the following day, before she returned from the U.S. Conference of Mayors in Boston, Massachusetts.

2. Sunday, June 10, 2018

The next day, Sunday, June 10, Mayor Durkan’s staff called or texted most of the council members in an effort to determine how many of them would support a repeal. O’Brien and the Mayor’s staff continued to arrange for the two to speak that afternoon. When speaking with O’Brien, Deputy Mayor Fong indicated Mayor Durkan would likely support legislation to repeal the EHT.

Deputy Mayor Fong also called Council President Bruce Harrell, indicating there was some interest in potentially repealing the EHT. Harrell told Deputy Mayor Fong he would discuss the matter with him after the weekend but did not want to discuss it on a Sunday. Deputy Mayor Fong also contacted Herbold, and they discussed procedural options for presenting potential repeal legislation.

Finally, Deputy Mayor Fong called council member Sally Bagshaw.

Bagshaw, who was in Newport Beach, Oregon over the weekend, had not participated in the June 9th conference call with EMC Research. Deputy Mayor Fong told Bagshaw about the polling results and advised her that new legislation to repeal the EHT would be sent to the full council for public discussion. She was “dumbfounded” and communicated this reaction to Deputy Mayor Fong. Other than this call with Deputy Mayor Fong, Bagshaw had no contact with any council members that weekend and, therefore, did not discuss possible repeal legislation with any of them.

González testified she spoke with Deputy Mayor Ranganathan after returning from Washington, D.C. Deputy Mayor Ranganathan informed González that, in light of the poll results, Mayor Durkan was interested in promoting

legislation to repeal the EHT and wanted the City Council to join with her the following day, Monday, June 11, in announcing consideration of such legislation. Afterward, González called Herbold and told her about her conversation with Deputy Mayor Ranganathan. In turn, Herbold told González about calls she had had with both Mayor Durkan and Deputy Mayor Fong. González and Herbold both recognized that Mosqueda would likely not support a repeal of the EHT without a replacement plan.

Deputy Mayor Ranganathan also called council member Debora Juarez and told her that the four council members who had originally sponsored the EHT—Herbold, González, Mosqueda, and O’Brien—were considering a potential repeal. 2 Juarez testified this conversation was the first she heard of a potential repeal.

Both Deputy Mayor Fong and Deputy Mayor Ranganathan tried to connect with council member Rob Johnson, leaving voice mail messages and texts regarding the poll results. At 8:22 p.m., Deputy Mayor Ranganathan sent a text to Johnson in which she said, “Don’t want to surprise you. EHT is DOA. Mayor wants to call for a repeal tomorrow am. We have been trying to reach folks yesterday and today to talk through. LG, MoB, LH, DJ, and SB are likely ready to move forward with a repeal and reset.” 3 Johnson did not respond to this text.

2 The record suggests this representation was not completely accurate. There is no indication in the record that Mosqueda ever supported repealing the EHT without a suitable replacement plan. 3 One can infer that this text referred to council members Lorena González, Mike O’Brien, Lisa Herbold, Debora Juarez, and Sally Bagshaw. Although only Herbold testified that she had indicated support for repealing the EHT, a reasonable inference from this text message is that González, O’Brien, Juarez, and Bagshaw did as well.

Mosqueda, “under the impression that there was some kind of press release or some press event occurring that week about repealing the head tax,” called Harrell the evening of June 10. Harrell told her he did not know anything about it and would figure out what was happening when he got in the office the next day. Finally, around 8:38 p.m., O’Brien, González, and Mosqueda arranged to meet at a coffee shop the following morning for “a 45 min huddle before going into work.”

Meanwhile, Mayor Durkan’s Communications Director, Stephanie Formas, was in Boston with Mayor Durkan for the U.S. Conference of Mayors. While flying home from Boston to Seattle on June 10, Formas prepared a draft press release relating to the possible repeal of the EHT. Formas’s notes read:

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Arthur West v. Seattle City Council, (Wash. Ct. App. 2020).

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