Audit questions conflicts on airport board
Assembly votes against reappointment of Joe Johnson, who owns several hangars
The Juneau Assembly reduced potential conflicts of interest on the Juneau International Airport Board when it declined to reappoint a member Monday.
After reviewing an independent audit saying some board members have direct financial interests at the airport, the Assembly reappointed incumbents Joe Heueisen and Pete Carlson and appointed Fred Gaffney a new board member. The Assembly didn't reappoint Joe Johnson, who has served two terms on the airport board.
Stan Ridgeway, chairman of the Assembly Human Resources Committee, said he couldn't comment on whether Johnson's ownership of several hangars at the airport led the Assembly to reject his reappointment.
"A conflict of interest is a concern but we are trying to have people who have expertise that will complement the particular board," Ridgeway said.
Johnson declined to comment on the issue.
An independent audit report released on June 18 said four of the board's seven members have conflicts because of a direct financial interest at the airport.
Airport board members Carlson and Tom Williams each own one hangar. Ron Swanson, vice chairman of the board, owns two hangars. The auditor found Williams has a potential conflict because he is the chief financial officer of Ward Air.
"Due to the cost to build and own a hangar at the Juneau airport, not to mention more than one hangar, none of these financial interests could be reasonably deemed as inconsequential," the report said.
"It would be appropriate for members to declare a conflict of interest pertaining to certain actions taken by the Airport Board with respect to rate setting for hangar and commercial operators, decisions relating to operations of Ward Air, Inc., and other matters that could be perceived as beneficial to these board members," the report suggested.
The report prompted the Assembly to delay appointing new members to the city's airport, Docks and Harbors, and Eaglecrest Ski Area boards for 60 days until they had more discussions on the conflict of interest issue.
The report also has caused turbulence between the Assembly and the airport board.
"The report was flawed," Swanson said. "The auditor didn't interview the four people he accused of conflicts of interest. He only talked to two members - Joe Heueisen and Linda Snyder, whom he didn't say have a conflict of interest."
Carlson said the board sets the rates based on national standards. "They are not decided at close-door sessions," said Carlson, chair of the board Finance Committee. "We even raised our own fees last year."
Although the audit recommended the Assembly limit people who might have a conflict of interest on any city board, some Assembly members are reserved about the suggestion.
"Conflicts of interest and expertise are two sides of a coin," said Assembly member Randy Wanamaker. "I don't think we should make any structural changes in the absence of a careful review."
•I-Chun Che can be reached at ichun.che@juneauempire.com.