BEFORE THE SEATTLE ETHICS AND ELECTIONS COMMISSION In the matter of No. 134-0913.] CIVIC IVOR A SOUND ECONOTVIY SETTLEMENT AGREEMENT This settlement is made between Citric Alliance for a Sound Economy and the Executive Director ofthc Seattle Ethics and Elections Commission (the "Director"). Upon approval by the Seattle Ethics and Elections Commission (the "Cotnrnission"), the following findings. conclusions and shall be binding upon CASE, the Director, and the Commission (the and their successors. heirs and assigns, and shall constitute the complete agreement between the Parties. CASE and the Director agree to the following: FINDINGS OF FACT 1. Prior to the Augtist 2013 primary election. the Civic Alliance for a Sound Economy (CASE) endorsed several candidates in local races. including Ed Murray for Mayor. 2. In advance of the primary election, CASE made contributions directly to candidates in [2 different races. CASE also made contributions to two Independent Expenditures Committees: to Great Seattle Schools, and $52,500 to People for Ed Murray (FEM). 3. On occasions when potential donors to CASE expressed particular interest in the Mayor's race, CASE represcntati\"es informed such individuals that they could, rather than contributing to CASE. which might use the money for any of several purposes. instead donate directly to entities wlto would expend funds only in the Mayor's race. 4. On or after July I I. after an earlier conversation between Vulcan representatives and the Chamber of onimercc's President. Phillip Fujii of Vulcan and George Allen. CASE's Executive Director. discussed a contribution from Vulcan to CASE. Page I 5. In a subsequent telephone conversation, Fujii told Allen that Vulcan would commit to a contribution to CASE. Vulcan requested that (1) its contribution to CASE be used for the Mayors race. (2) its contribution he used in the primary. (3) its contribution not be used for negative campaigning against the Mayor, and (4) that no portion of the contribution be used to support the Mayor's opponent in the General election. 6. Immediately lbllowiitg tltat eotwersation. Allen sent Fujii an e-mail similar to emails CASE had sent to other potential CASE contributors, which stated that CASE was raising money to support several "key races," including Ed Murray for mayor, Stephanie Bowman for port commissioner. and Suzanne Dale-Estey for Seattle school board. The e-mail requests "a donation to CASE today" to help "elect the leaders ot'tomorrow," and help CASE impact the various races in whiclt it had made 7. On July I5. 2013. CASE contributed $25,000 to FEM. 8. On July 24. Allen e-mailed Rachel Padgett, a Fundraiser for PEM, that liefty check is coming in that will ensure the buffer we need for our next contribution to you for The e-mail goes on to list Fn-'c components of CASE's fulfillment of a $50,000 pledge to support FEM: the $35.0tJ0 contribution CASE made on July 15, (2) a $1,000 contribution solicited by CASE but made directly to FEM by Mark Dyce of 206lnc., (3) a 32.000 contribution solicited by CASIE but made directly to PEM by Insurance, (4) an impending 515.000 contribution. and (S) a check to be cut at a future date in the amount of 37.000. 9. On July 34 or 25. Fujii delii-"cred a $15,000 cheek to CASE. l0. l3etu.'een July 2-1 and Aliens! 2. CASE received a total of 512,000 in contributions in addition to the $151300 contribution from Vulcan: a $1,000 contribution on July 24, and two contributions in the amount oi'SS00 and one in the amount ol' 5510.000 on July 31. I 1. On August 2, 2013. CASE contributed 317.500 to FEM. 12. There is no evidence that the People for lid Murray or Ed Murray for Mayor had knowledge of the communications between Vulcan and CASE. or sought in any way to conceal the source of any contribution made to the People Ed Murray or Ed Murray for Mayor. Page 2 13. Except as set out above, there is no evidence that any CASE contributor sought to instruct any CASE representative that a contribution he used to support any specific candidate. CONCLUSIONS OF LAW I. When CASE (1) accepted a check front Vulcan that came with the instructions that it be used for an independent expenditure in the mayoral primary, and (2) used Vulcan's $15,000 check towards fultilling its pledge to FEM and in accordance with Vulcan's instructions, CASE violated SMC by causing Vulcan's identity as the source ofthe contribution to PEM to be Concealed. and SMC by causing Vulcan to be omitted from the list of PEM's top five contributors. ACREEIVIENT l. ASE acknowledges that it violated Seattle's Elections Code as described above. 2. CASE agrees to pay the City of Seattle $1.500 for the violations described above. The Director agrees to suspend $750 of the penalty so long as CASE does not commit another material violation of the Elections Code through the close ofthe 2015 election cycle. 3. The Parties agree that this settlement agreement. upon the Commission's approval. will constitute. insofar as is legall}: possible. a lull and final settlement between the Parties, as to any violation of the Seattle Elections Code related to the findings of facts cited above. The Parties. release. acquit and discharge each its present or former officials. employees. agents. representatives. heirs and assigns from all present claims. demands. damages, costs (specifically including attorney's fees and costs), actions or causes of action which arise out oftlte specific facts outlined in this violation olithe Elections Code. and the acts or omissions of the Commission, its Inembers. agents or emp1o_vees in handling the matter filed under Ethics and Elections Commission Case No. This release by the Director and the Commission does not preclude actions by other law en forcentent agencies. 4. The Parties agree that the Commission's review of this settlement agreement does not preclude the Commission from hearing this case in the event that the Commission rejects this agreement and calls for a hearing. or in the ct-'ent that rejects any Commission modification ofthis agreement and requests a hearing. 1 Page 3 5. The Parties agree that if CASE breaches this agreement, in any respect. the Commission will be entitled to hold a special meeting or a regular meeting to issue a determination that CASE has violated the Seattle Elections Code. Under the municipal code, the Commission may impose a line of up to $5.000 per violation, and may reqttire costs that do not exceed the amount ofttn}-' monetargx fine. 6. The Parties agree that this settlement incorporates and supersedes any and all other oral and written ttgreentents and assurances ofany and all kinds between the parties, and that there are no other written or oral agreements that alter or modify this agreement. 7. This settlement is null and void if the Commission does not adopt it, or an amended version that is accepted by the parties, on or before October 31, 20 I 3. Wayne fiarnett. Executive Director Date: Z5 ._20l3 Page 4