A state Court of Appeals panel has affirmed its previous decision that Des Moines businessman and City Councilman Gary Petersen has no conflict of interest while serving as an elected official.

Petersen owns Pete's Towing, which for more than 42 years has towed disabled and impounded vehicles for the city when dispatched by the Des Moines Police Department.

"The court has once again recognized how hard I have worked to conduct myself honestly in everything that I have done for this city," Petersen said in response to the unanimous ruling, which was issued Oct. 13.

"The will of the voters who elected me has again been upheld. This decision underscores the fact that this lawsuit was nothing more than a political attempt to discredit my honor and integrity."

Following Petersen's election in November 2001, then-City Manager Bob Olander and then-City Attorney Gary McLean expressed concern that he might have a conflict of interest because Pete's Towing provides a service to the city.

Despite demands that he do so, Petersen refused to resign from office. And he continued doing business through Pete's Towing with the city.

Within days of taking office, Petersen was sued by Citizens for Des Moines Inc. and city resident Allan Furney.

The complaint in King County Superior Court alleged that Petersen had a conflict of interest, and asked for his removal from office.

Judge Laura Gene Middaugh subsequently ruled that Petersen was in violation of state conflict-of-interest laws governing local officials, but declined to take action against him.

Instead, Middaugh noted that the law was vague as it related to Petersen's case, and encouraged him to appeal her decision.

Earlier this year, the Court of Appeals unanimously reversed that ruling and dismissed the case against Petersen.

Furney responded by filing a motion for reconsideration with the court.

"It is a relief to be vindicated by the Court of Appeals," Petersen added last week. "It just goes to show you that the truth matters, despite how some people try to manipulate things.

"I look forward to continuing to serve the public here in Des Moines the same way I have since the beginning - honestly and with their best interests at heart."

Petersen is seeking re-election in next month's election.

In its ruling, the Court of Appeals again rejected all of the arguments originally made against Petersen, and repeated its previous ruling that Petersen took no action that could be construed as a conflict of interest.

Such an action would not have been possible under the Des Moines municipal laws, the judges said.

Although the appellate court deleted one paragraph from its original order, "in all other respects the decision is affirmed," according to Petersen's attourney, Scott Missall.

But, Missall noted, the wording that was deleted remains in the court's decision in two references to a city of Seattle case.

Those references indicate that Petersen can "resolve a conflict of interest by disqualifying himself" from council deliberations involving his towing business, Missall said.

"There is no evidence that [Petersen] used his position for private monetary gain,' Missall added.