Larson fines himself $500 and city will redo Tesla contract

Mayor says he should have noted stock ownership before negotiating contract

By Terri Harber • January 13, 2017 10:00 pm
Chargers at the Tesla Supercharger station in downtown Aberdeen. Mayor Erik Larson is fining himself $500 and intends to void the city’s contract with Tesla Motors after violating state code during the process of forming the agreement. He denies doing so for personal gain. (Terri Harber|The Daily World)
Chargers at the Tesla Supercharger station in downtown Aberdeen. Mayor Erik Larson is fining himself $500 and intends to void the city’s contract with Tesla Motors after violating state code during the process of forming the agreement. He denies doing so for personal gain. (Terri Harber|The Daily World)

Aberdeen Mayor Erik Larson announced said Thursday he will pay a self-imposed $500 fine to the city for neglecting to fully disclose his ownership of Tesla Motors stock before the City Council approved the contract he negotiated this past summer between the city and car company for construction of a supercharger station and its subsequent operation.

A local blogger posted a story Saturday calling into question a potential conflict of interest. The article appeared on a blog called Lady Libertee, but carried no byline. The blog is maintained by Kristine Lowder, a Montesano woman. Larson strenuously objects to the notion that he was motivated by his stock ownership, but admitted Thursday in a telephone interview that he should have better followed state code regarding entering into such contracts.

“I didn’t follow procedure to the letter,” he said. “I don’t think I should just be able to say I didn’t intend to do it. Everyone should fulfill requirements to ethics.”

Larson thought the pertinent section of state code regarding conflicts of interest didn’t apply — especially because he didn’t vote on the contract. However, code section 42.23.040 also describes a condition that would require noting his stock ownership in council meeting minutes or other records before the contract was fully formed: Being a municipal officer (mayor) who holds less than one percent of the company or corporation’s stock shares in which a contract would be entered into.

Larson already made public his ownership of stock in the company with the state’s Public Disclosure Commission in 2015 during his mayoral campaign, and in 2016, as part of his personal financial affairs statements. He also mentioned owning some stock in Tesla to some members of the council during negotiations with the car maker.

“My duty was just to negotiate the contract,” he stressed. “I had no bad intentions.”

He also noted that Tesla initially contacted the city with interest in siting a charging station somewhere in Aberdeen before he became mayor in January 2016. The company also has charging stations in Burlington, Centralia, Ellensburg, Kennewick and Ritzville.

Once he charges himself with the fine and pays it to the city, Larson said the contract with Tesla will be voided. He intends to present to the council for a new vote on Jan. 25 and anticipates the council will approve the contract once again.

The station has been operating since mid-December at the northwest corner of Wishkah and F streets. It’s located in what will be part of the parking area for the future Gateway Center, now being planned as a 20,000-square-foot building housing a visitors and tourism center and a single location for the county’s various enterprise and economic development organizations. There will also be some retail and meeting space in the 20,000-square-foot building at the northeast corner of Wishkah and F.

“We’re going to go ahead and do it right,” Larson said.

City Attorney Eric Nelson declined to comment on the matter on Thursday afternoon because he hadn’t yet talked to the mayor regarding the situation. Nelson is the city employee charged with consulting the mayor and council about legal issues.