CANNON BEACH — An ethics complaint alleges Karen La Bonte, the city’s public works director, may have violated state conflict of interest laws after the city hired a company she co-owns to make signs during the coronavirus pandemic.
A second complaint alleges La Bonte also inappropriately disposed of surplus city property.
La Bonte declined to comment when contacted by The Astorian. City Manager Bruce St. Denis described the complaints as part of a campaign of harassment.
“There is a concerted, ugly effort to harass and discredit Karen La Bonte and the city by implying (with no proof, only allegations) that bad things are going on in the town and nothing is being done about it,” St. Denis wrote in a letter to the City Council outlining the situation.
A preliminary review by state investigators for the Oregon Government Ethics Commission found La Bonte may have violated several of the state’s conflict of interest provisions after the city hired the sign company she co-owns with her husband for two different jobs last year.
While La Bonte had provided verbal notices of a conflict of interest in the past, she does not seem to have properly notified the necessary people about a conflict of interest in writing, the investigator noted.
The investigator said it does not appear La Bonte used her position to benefit financially.
An investigation into the complaint is ongoing.
The complaint alleges La Bonte bypassed state provisions to hire Cannon Beach Design Co. to produce and install signs at the start of the coronavirus pandemic last year.
In a preliminary review, the state investigator wrote that — according to information provided by St. Denis and La Bonte — St. Denis told La Bonte to order the signs from Cannon Beach Design Co. so they could be available quickly.
“I did not authorize this work; the city manager did,” La Bonte wrote in an explanation to the state. “I did not sign any invoices for this work; the city manager did. I simply gathered details that allowed the city manager to make an informed decision.”
The complaint referred to two separate times when the city used the company.
In the spring of 2020, large signs went up at city entrances stating that, “Due to COVID-19 Cannon Beach is closed to visitors.” City leadership felt the signs were necessary after an influx of visitors descended on the town despite rising concerns about the coronavirus and a stay-at-home order from Gov. Kate Brown.
Another round of signs featuring animals wearing face masks went up later to remind people to wear protective face coverings.
The total cost of the signs came to $2,677.50.
In the state’s preliminary review of the complaint, La Bonte wrote that she made “every effort to follow the city’s process for keeping my relationship with this vendor separate from the work I personally authorize. I feel I was able to do that, even while under the pressure of a time crunch and a national pandemic.”
Rusty Morris, a Manzanita resident who filed the complaint with the Ethics Commission, has also urged St. Denis and the City Council to investigate the contracts for the signs. He said La Bonte should be placed on administrative leave pending the outcome.
“The taxpayers and this community deserve an explanation,” he wrote in an email to the city.
The Ethics Commission confirmed that a second complaint has been filed against La Bonte, but could not provide details until a preliminary review is complete.
St. Denis told the City Council the second complaint is tied to concerns raised by an employee in 2018 about how La Bonte disposed of wood fence posts.
The posts had been stored in the city’s wastewater yard for two to three years. The posts were not usable under the city’s fencing standards and deemed surplus, St. Denis said.
La Bonte contacted Fort Stevens State Park to see if they wanted the posts, according to St. Denis. When the state park declined, she offered them to three local contractors and a handyman who does work for the city. A contractor who was doing work on her home took the posts.
The people behind the complaints disagree with St. Denis’ characterization. Citing invoices, they say the fencing cost more than St. Denis claims and should not have been considered surplus material under the city’s code.
