Whatcom County Council increases oversight in tort and damage claims

Whatcom County Council recently approved county code amendments on tort and damage claims in an effort to close a legal loophole that kept the legislative body from knowing about a $225,000 sexual harassment payout made to a county employee in 2022.

Council’s unanimous vote during its October 7 meeting followed a public hearing on the amendments that drew one person in support.

The most significant change to the county code is the establishment of a risk management working group and the addition of a county council member to that group.

The working group will be comprised of the county executive, director of finance, prosecuting attorney, county risk manager and chair of county council’s finance committee or a designated council member. The group will oversee risk management for the county and have a legal framework for notifying county government about legal payouts.

The issue of legal payouts came to the forefront when Cascade PBS released a report in April 2024 detailing a six-figure payout that former public works director Jon Hutchings received after a county employee made a sexual harassment claim against him. County council found out about the payment the way everyone else did: by reading the news.

Hutchings resigned in October 2022 and the payment was made the following year. The payment was just under the $250,000 threshold for notifying county council and was instead handled through the Washington Counties Risk Pool (WCRP), a group that protects local county governments from onerous lawsuits. Since the WCRP made the settlement payment, it was considered a “third-party” claim, and council was not notified.

As the legislative branch of county government, Whatcom County Council is supposed to oversee the majority of the county’s finances. The previous version of county code 3.05 established that council delegate all authority to settle tort claims to the Whatcom County prosecuting attorney.

Former county executive Pete Kremen issued an executive order in 2000 to establish a risk management working group, but the order was never officially added to county code. The new amendment to the code will require the group meet, at minimum, twice per year, and could include additional designees from all arms of county government.

In the 18 months since the Cascade PBS article was released, county government has faced pressure from both constituents and its own workforce to overhaul its HR and financial oversight policies.

A letter signed by dozens of county employees addressed to council in May 2024 stated that the county’s handling of sexual harassment in the workplace, and the matter in which Hutchings was paid without public knowledge, eroded trust in their employers and government.

A September report released by Matrix Consulting group, which the county hired to investigate its internal HR procedures and poll county employees, echoed similar sentiments.

According to the report, 63 percent of respondents said they were dissatisfied with how HR handled complaints, 65 percent said they were dissatisfied with outcomes and thoroughness of HR investigations, and 57 percent were uncomfortable reporting issues to HR.

“Only 43 percent felt comfortable reporting issues without fear of retaliation, with 26 percent explicitly fearful and 31 percent unsure,” the report stated. “Retaliation concerns are more pronounced among non-supervisory staff, temporary staff, and specific demographic groups.”

The next action will be designating a county council member to the working group. The councilmember named would likely be Todd Donovan, chair of the council finance committee. Council tabled a discussion to officially designate a council member.

“This is a stripped-down version [of the tort code amendment], just getting at the [matter of] we get notified and we have a seat at the table when there are risk pool decisions,” Donovan said.