HomeMy WebLinkAbout1487 SipperIn Re: John Sipper,
Respondent
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Paul M. Henry
Raquel K. Bergen
Nicholas A. Colafella
07 -056
Order No. 1487
9/22/08
10/10/08
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding possible violation(s) of the Public Official and Employee Ethics
Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the
commencement of its investigation, the Investigative Division served upon Respondent
written notice of the specific allegation. Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an "Investigative Complaint." An Answer was filed and a hearing was requested. A
Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were
subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
This adjudication of the State Ethics Commission is issued under the Ethics Act and
will be made available as a public document thirty days after the mailing date noted above.
However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with the Ethics Act.
Sipper, 07 -056
Page 2
I. ALLEGATION:
That John Sipper, a public official /public employee in his capacity as a
Commissioner of Hanover Township, Luzerne County, violated Section 1103(a) of the
State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §1103(a), when he used the authority of his
office for private pecuniary gain by participating in actions of the Township Board of
Commissioners resulting in the amendment of Township ordinances which enabled him to
be selected to the position of Township Manager.
II. FINDINGS:
1. John Sipper served as a Hanover Township Commissioner from approximately
1990 until December 30, 2006.
a. Hanover Township is a First Class Township governed by a seven member
Board of Commissioners.
2. Professionally, Sipper was employed by the Luzerne Wyoming Counties
Transportation Department as Manager of Administration from September 8, 1986,
until December 30, 2006.
a. Sipper submitted a letter of intent to retire to Frank DeSanto, Director,
Luzerne Wyoming Counties Transportation Department, 2009 Wyoming
Avenue, Forty Fort, PA 18704, dated December 12, 2006.
1. The effective date of Sipper's retirement was December 30, 2006.
2. Sipper's retirement request was accepted by the Luzerne County
Board of Commissioners on January 17, 2007.
b. Sipper had twenty (20) years of County service as of September 8, 2006.
3. While employed as Manager of Administration for the Luzerne Wyoming Counties
Transportation Department, Sipper had a job description which outlined the
following job responsibilities.
a. Supervise the work of the administrative unit. Assign tasks to personnel.
Supervise the operations of the computer equipment and establish operating
procedures.
Coordinate all software and hardware acquisitions and vendor schedules
regarding maintenance and training.
Supervise the preparation of invoices. Follow -up on collections. Receive
payments and record discrepancies. Investigate discrepancies and correct
billing. Enter corrections into the computer.
Prepare time sheets.
Process all accounts payable invoices.
Prepare special reports for director. Prepare program budgets and
department budgets.
4. Sipper received compensation totaling $41,781.59 from Luzerne County during
2006 - his last year of employment with the County.
Sipper, 07 -056
Page 3
5. During the latter part of 2006, then Hanover Township Manager Ronald Wydo was
experiencing health issues eventually resulting in his retirement from the Township
effective December 11, 2006.
a. Wydo was on extended medical leave from approximately October 11, 2006,
until his official retirement date of December 11, 2006.
b. Wydo had served as Township Manager from approximately June 2000 until
December 11, 2006.
c. Wydo submitted a request for a disability retirement on November 6, 2006,
which was granted by the Board of Commissioners on December 11, 2006.
6. During the fall of 2006, Sipper took an active role in reviewing Township finances,
budget preparation for 2007, and overseeing the day to day operations of the
Township in Wydo's absence.
a. Sipper continued to serve as a Hanover Township Commissioner at the time.
b. Sipper still was employed full -time by the Luzerne Wyoming Counties
Transportation Department while assisting with this work.
c. Hanover Township did not employ an assistant Manager under Ronald
Wydo to fill in for Wydo in his absence.
7 The position of Hanover Township Manager is governed by Township Ordinance
under the general supervision of the Board of Commissioners.
a. Since 1999, Hanover Township enacted and /or amended three (3)
Ordinances governing the position of Township Manager.
b. Enacted Ordinances were 007 -1999, 004 -2000 and 09 -2006.
8. Hanover Township Ordinance Number 007 -99, enacted May 12, 1999, established
the office of Township Manager. Relevant provisions of the Ordinance include:
a. The position of Manager is appointed by a majority vote of the Board of
Commissioners.
b. No Township Commissioner shall be appointed as Township Manager during
the term for which he /she was elected Commissioner, (or) not within one
year after the expiration of said term.
c. The Township Manager shall receive an annual salary as fixed by salary
resolution of the Board of Commissioners.
d. The Township Manager shall be the chief administrative officer of the
Township with powers and duties relating to the general management of all
Township business not expressly, by statute or ordinance, imposed or
conferred upon other Township officers.
9. Hanover Township Ordinance #004 -2000, enacted March 23, 2000, amended
Ordinance #007 -99. Changes included modifications to minimum qualifications and
powers and duties.
a. Qualifications:
Sipper, 07 -056
Page 4
1 Added was a requirement of two years administrative experience
involving a thorough knowledge and expertise in budgeting,
accounting, purchasing, personnel, community relations, contract
experience, and a minimum of a Bachelor's Degree in Business
Administration or two years in a position which requires such
knowledge and /or a minimum of two years experience in one or more
of the following areas: accounting, business administration,
economics, finance, management, office management, business law,
or marketing.
2. Maintained was the requirement that no Township Commissioner
shall be appointed as Township Manager during the term for which
he /she was elected Commissioner, or within one (1) year after the
expiration of said term.
10. In or around September 2006, Sipper participated in Board action to amend the
Manager Ordinance to permit members of the Board of Commissioners to be
employed as the Township Manager.
11. On September 11, 2006, Sipper participated in Board action taken to direct the
Solicitor to amend the position of Manager Ordinance.
a. This action passed by a 7 -0 vote.
b. The purpose of the amendment to the Ordinance was to eliminate the one
year restriction on Township Commissioners from being employed as
Township Manager.
1. Under the Ordinance in place at the time, 004 -2000, Sipper was
prohibited from being employed as Manager within a year of leaving
the position of Commissioner.
12. Hanover Township Solicitor Robert Davison, Esquire, was directed to amend the
Manager Ordinance deleting the one (1) year service restriction on former
Township Commissioners.
a. The sole purpose for this change was to enable the Board of Commissioners
to appoint Sipper Manager without being in conflict with Ordinance numbers
007 -1999 and 004 -2000.
b. No other significant changes were made to the Ordinance.
13. The Hanover Township Board of Commissioners amended Ordinance numbers
007 -1999 and 004 -2000 on November 13, 2006, to eliminate any hiring restrictions
on the Board.
a. Commissioner Sipper oversaw the day -to -day operations of the Township,
without receiving compensation, also beginning on November 13, 2006.
14. Hanover Township Ordinance #009 -2006, enacted November 13, 2006, amended
Ordinance numbers 007 -99 and 004 -2000.
a. Minimum qualifications remained the same with the exception of the
restriction placed on Township Commissioners, that they were prohibited
from serving as Manager during their term of office or within one (1) year of
leaving office, which was eliminated.
Sipper, 07 -056
Page 5
b. Powers and duties for the position remained the same.
c. The Ordinance was approved by unanimous vote with Sipper participating.
15. On December 11, 2006, during the Board of Commissioners regular meeting,
actions were taken to approve Wydo's resignation, accept Sipper's resignation as a
Township Commissioner, approve Sipper's hiring as Manager, and approve the
2007 budget which included Sipper's salary.
a. Sipper voted with the majority to approve Wydo's resignation.
b. Sipper's resignation from the Board of Commissioners became effective
December 30, 2006.
c. Sipper abstained on the motion appointing him Township Manager.
d. Sipper voted to approve the 2007 budget, which included his salary as
Township Manager.
16. Hanover Township did not advertise for the position of Manager in 2000 when
Ronald Wydo was hired or 2006 when John Sipper was hired.
a. Hanover Township does not advertise for professional positions such as
Manager, Solicitor, Engineer, or Consultants as a matter of standard
business practices.
b. Applications are accepted for Township positions.
c. Advertisements are run for help on an as- needed basis.
17. Sipper notified his employer that he would be resigning his County position one day
after the Township took actions to appoint him Township Manager.
18. By eliminating the one (1) year service restriction on former Commissioners,
Ordinance #009 -2006 facilitated the immediate hiring of John Sipper as Manager
upon his resignation as Commissioner on December 11, 2006, effective December
30, 2006.
a.
Sipper's prior experience as a Township Commissioner and employment
with the Luzerne Wyoming Counties Transportation Department was
sufficient to fulfill the other job requirements for the position of Township
Manager.
19. The Hanover Township Board of Commissioners did not advertise or conduct any
formal search process for candidates for the position of Township Manager.
a. Township Commissioners were satisfied with the services provided by
Sipper in Wydo's absence and requested that he consider taking the
position.
b. The Hanover Township Board of Commissioners did not consider anyone
other than Sipper for the position.
20. Minutes from the Hanover Township Board of Commissioners meetings include the
following chronology of events culminating in the hiring of Sipper as Manager and
the approval of the 2007 budget.*
Sipper, 07 -056
Page 6
a. 9/11/06- Authorization to prepare ordinance amendment motion by Watkins,
second McDermott that the Solicitor be and is authorized tg prepare an
ordinance amending ordinance #007 -99 enacted on the 12 day of May
1999 amended on the 23 day of March which established the office of the
township manager and the secretary be and is authorized to advertise same.
On the motion the following voted yes: Bagusky, Burns, McDermott, Sipper,
Sorber, Watkins, and Hummer motion carried.
b. 10/9/06- September 11, 2006 meeting minutes approved as filed.
c. 11/13/06-Ordinance #09 -006
Commissioner Burns presented the following ordinance. Ordinance #009-
2006 an ordinance of the Township of Hanover, Luzerne County,
Pennsylvania amending ordinances Nos. 007 -99 and 004 -2000 which
established the office of the township manager clarifying the duties and
responsibilities of the township manager. Motion by Burns, second
McDermott that the ordinance be approved as advertised. On the motion the
following voted yes: Bagusky, Burns, McDermott, Sipper, Sorber, Watkins
and Hummer. Motion carried.
Resolutions #007 -06 Proposed budget presented by Commissioner Burns.
"Commissioner McDermott thank Commissioner Sipper, the township
secretary and others for their work on the budget."
"Motion by Watkins, second Burns that during the Township
Manager's absence on extended sick leave the board authorized
Commissioner John J. Sipper, without any additional pay or benefits,
to oversee the day to day operations of the township. This
authorization shall automatically terminate upon the Board's
appointment of a new Township Manager or at midnight on December
31, 2006 whichever occurs first. On the motion the following voted
yes: Burns, McDermott, Sorber, Watkins and Hummer. Voting no:
Bagusky. Abstain: Sipper. Motion carried.
d. December 11, 2006 Meeting - Question about advertising Manager position .
Solicitor stated there is no advertising requirement for this position.
11/13/06- Minutes approved without change.
Ordinance #018 -2006 Appropriations ordinance 2007
"Motion by Sipper, second by Burns that the Appropriations ordinance
allocating expenditures and expenses for the fiscal year 2007,
approving specific sums from the fund equities revenues and other
financing services be adopted as advertised. On the motion the
following voted yes: Bagusky, Burns, McDermott, Sipper, Sorber,
Watkins and Hummer. Motion carried.
Resolution #008 -2006; Budget Resolution 2007
7 -0 vote, approved.
Bagusky, Burns, McDermott, Sipper, Sorber, Watkins and Hummer.
Date
Event
Sipper's official action
2006
Former Manager Wydo
health issues
N/A
9/11/06
Solicitor directed to amend
Manager Ordinance
Voted 7 -0
Fall 2006
Sipper assists in the
preparation of the 2007
budget
Sets Manager wages along
with Board of
Commissioners
11/13/06
Ordinance #09 -006
approved. No one year
employment restriction
Voted 7 -0
Fall 2006
Private discussions about
Sipper becoming Manager
Participated
11/13/06
Sipper thanked by
Commissioner McDermott
for his work on the budget
N/A
11/13/06
Sipper appointed
"temporary Manager," non -
compensated while former
Manager Wydo was on
extended sick leave
Abstain 6 -0 -1
November 2006
Discuss with
Commissioners re:
becoming Manager
Participated
Sipper, 07 -056
Page 7
009 - 006 - Salary Compensation Resolution which ratified salaries and
benefits for all township employees. 7 -0 vote, approved.
Bagusky, Burns, McDermott, Sipper, Sorber, Watkins and Hummer.
Appointed Eileen Valunas as Budget Director effective January 1, 2007.
7 -0 vote, approved.
Accept Township Manager Wydo retirement 7 -0 vote, approved.
Appointment of Township Manager
"Motion by Watkins, second Burns that the Board of Commissioners
appoint John J. Sipper to the office of Township Manager effective
December 30, 2006 pursuant to ordinance number 009 -2006. On the
motion the following voted yes: Bagusky, Burns, McDermott, Sorber,
Watkins and Hummer. Abstain: Sipper. Motion carried. Prior to
voting Commissioner Watkins stated that he feels this is an excellent
appointment and he is a money person; diligent and meticulous
especially on his budget preparation this year.
Sipper resigned as Commissioner as of 12/30/06. 7 -0 vote.
5 Commissioners applauded the move appointing Sipper Manager.
* [The above excerpts from minutes contain various typographical errors, which are not
individually noted.]
21. The following chart summarizes Sipper's participation in the official process
resulting in his hiring as Manager outlined in the previous Finding.
November 2006
Continued to work on 2007
budget
Participated
12/11/06
2007 appropriation
Ordinance passed,
Ordinance #018 -2006
Motion
Voted 7 -0
12/11/06
2007 budget approved
Voted 7 -0
12/11/06
Manager Wydo resignation
accepted.
Voted 7 -0
12/11/06
Sipper appointed Manager
effective 12/30/06
Abstain 6 -0 -1
12/11/06
Sipper resigns as
Commissioner effective
December 30, 2006
Voted 7 -0
12/12/06
Sipper submitted retirement
notice to Luzerne County
effective December 30,
2006
N/A
Sipper, 07 -056
Page 8
22. During the same time frame when he was participating in amending the Manager
Ordinance, Sipper also participated in developing the Township budget for 2007.
a. The Budget included an increase in salary for the Township Manager for
2007.
23. Sipper was one of the Hanover Township officials who was most involved in the
preparation of the Township's 2007 budget.
24. Sipper used the 2006 budget as a framework for the 2007 budget.
25. Sipper created the 2007 budget in his official capacities as Township Commissioner
and "temporary Manager."
a. Sipper shared drafts of the budget with the entire Board of Commissioners
between October 2006 and December 2006.
b. Commissioner Robert Burns also privately assisted Sipper with budget
preparation.
26. By the Commissioners' November 13, 2006, meeting, the Board was aware of
Ronald Wydo's intentions to retire.
a. Wydo submitted his retirement request letter to the Township on or about
November 6, 2006.
b. Sipper continued working on the 2007 budget after learning of Wydo's intent
to retire.
27. Funding for the position of Township Manager is included in the budget as a
specific line item.
a. $56,380.00 was budgeted for the position of Township Manager for 2007.
b. $43,296.63 was budgeted for this position for 2006.
c. With approval by the Board of Commissioners, the salary line item for
Township Manager was determined by Sipper while creating the 2007
Sipper, 07 -056
Page 9
budget.
d. Hanover Township did not have a budget director in 2006.
28. Hanover Township budgets for calendar years 2006 and 2007 include specific line
items for Manager, Secretary, Clerk Secretaries, Solicitor and Legal.
a. Budgeted salary increases for the positions of Secretary, Clerk/Secretaries
and Solicitor saw increases from 2006 to 2007 of approximately 4 %, 3% and
4% respectively.
b. No budget increase was given for legal.
c. When Sipper worked on the budget for 2007, the Manager's position
received an increase of approximately 30% or $13,083.37.
1. Sipper included the increased Manager salary in the 2007 budget at a
time when he was being considered for the position.
29. The following chart details budgeted amounts and approved increases for the
Hanover Township positions and budget line items of Manager, Secretary,
Clerk/Secretary, Solicitor, and Legal from 2006 to 2007.
* [All percent increases are approximate as noted in Fact Findings 28a and c.]
30. The salary of $56,380.00 established for Sipper as Manager for 2007 was
$14,598.49* more than his salary of $41,781.59 with the Luzerne Wyoming
Counties Transportation Department for 2006.
* [sic]. [There is an eight cent discrepancy in the calculation, which does not affect the
outcome of this case.]
a. The salary was $13,083.37 more than Wydo received as Township Manager
in 2006.
b. This resulted in a 30% increase.*
c. Township employees received a 4% pay increase* in 2007.
* [All percent increases are approximate as noted in Fact Findings 28a and c and 29.]
31. Financial records of Hanover Township confirm Sipper has received biweekly gross
compensation during 2007 in the amount of $2,168.46 as Township Manager.
32. John Sipper participated in Board discussions and decisions that lead to the
amending of Ordinances so that he could be eligible to be appointed Township
Manager, and then assisted in setting the salary for the Manager position when
preparing the 2007 budget by increasing the salary by $13,083.37 and engaged in
discussions with Board members about his appointment to the position.
2006 Budget
2007 Budget
Increase
% Increase*
_Position
Manager
$43,296.63
$56,380.00
$13,083.37
30%
Secretary
$33,085.09
$34,408.49
$1,323.40
4%
Clerk/Secretaries
$161,288.20
$165,973.14
$4,684.94
3%
Solicitor
$11,200.45
$11,648.00
$447.55
4%
Legal
$20,000.00
$20,000.00
None
None
Sipper, 07 -056
Page 9
budget.
d. Hanover Township did not have a budget director in 2006.
28. Hanover Township budgets for calendar years 2006 and 2007 include specific line
items for Manager, Secretary, Clerk Secretaries, Solicitor and Legal.
a. Budgeted salary increases for the positions of Secretary, Clerk/Secretaries
and Solicitor saw increases from 2006 to 2007 of approximately 4 %, 3% and
4% respectively.
b. No budget increase was given for legal.
c. When Sipper worked on the budget for 2007, the Manager's position
received an increase of approximately 30% or $13,083.37.
1. Sipper included the increased Manager salary in the 2007 budget at a
time when he was being considered for the position.
29. The following chart details budgeted amounts and approved increases for the
Hanover Township positions and budget line items of Manager, Secretary,
Clerk/Secretary, Solicitor, and Legal from 2006 to 2007.
* [All percent increases are approximate as noted in Fact Findings 28a and c.]
30. The salary of $56,380.00 established for Sipper as Manager for 2007 was
$14,598.49* more than his salary of $41,781.59 with the Luzerne Wyoming
Counties Transportation Department for 2006.
* [sic]. [There is an eight cent discrepancy in the calculation, which does not affect the
outcome of this case.]
a. The salary was $13,083.37 more than Wydo received as Township Manager
in 2006.
b. This resulted in a 30% increase.*
c. Township employees received a 4% pay increase* in 2007.
* [All percent increases are approximate as noted in Fact Findings 28a and c and 29.]
31. Financial records of Hanover Township confirm Sipper has received biweekly gross
compensation during 2007 in the amount of $2,168.46 as Township Manager.
32. John Sipper participated in Board discussions and decisions that lead to the
amending of Ordinances so that he could be eligible to be appointed Township
Manager, and then assisted in setting the salary for the Manager position when
preparing the 2007 budget by increasing the salary by $13,083.37 and engaged in
discussions with Board members about his appointment to the position.
Sipper, 07 -056
Page 10
III. DISCUSSION:
As a Township Commissioner for Hanover Township ( "Township "), Luzerne County,
from approximately 1990 to December 30, 2006, Respondent John Sipper ( "Sipper ") was
at all times relevant to these proceedings a public official subject to the provisions of the
Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq.
The allegation is that Sipper violated Section 1103(a) of the Ethics Act when he, as
a Township Commissioner, used the authority of his office for private pecuniary gain by
participating in actions of the Township Board of Commissioners ( "Board of
Commissioners ") resulting in the amendment of Township Ordinances which enabled him
to be selected to the position of Township Manager.
Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a) Conflict of interest. —No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate family
or a business with which he or a member of his immediate
family is associated. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a
member of his immediate family or a business with which he or
a member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official /public employee from
using the authority of public office /employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official /public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Sipper served as a Township Commissioner from approximately 1990 until
December 30, 2006. Sipper also served as Manager of Administration for the Luzerne
Sipper, 07 -056
Page 11
Wyoming Counties Transportation Department from September 8, 1986, until December
30, 2006.
The position of Township Manager is governed by various Township Ordinances
including Township Ordinance numbers 007 -1999 and 009 -2006. The Township Manager
is appointed by a majority vote of the Board of Commissioners and is under the general
supervision of the Board of Commissioners.
The office of Township Manager was established by Township Ordinance number
007 -1999, enacted May 12, 1999. Township Ordinance number 007 -1999 provides that no
Township Commissioner shall be appointed Township Manager during the term for which
he /she was elected Township Commissioner or within one year after the expiration of the
Township Commissioner's term, and that the Township Manager's salary is fixed by salary
resolution of the Board of Commissioners.
In the fall of 2006, then Township Manager Ronald Wydo ( "Wydo ") was on medical
leave due to health issues. In Wydo's absence, Sipper took an active role in reviewing
Township finances, preparing the budget for 2007, and overseeing the day -to -day
operations of the Township.
On September 11, 2006, Sipper participated in actions of the Board of
Commissioners to direct the Solicitor to amend the Township Ordinance(s) relating to the
position of Township Manager. The purpose of such amendment was to eliminate the
restriction that a Township Commissioner could not be appointed Township Manager
within one year after the expiration of the Township Commissioner's term, so that Sipper
could be appointed Township Manager.
On November 6, 2006, Wydo submitted a request for a disability retirement.
On November 13, 2006, the Board of Commissioners, including Sipper, voted
unanimously to approve Township Ordinance number 009 -2006, eliminating the restriction
that a Township Commissioner could not be appointed Township Manager within one year
after the expiration of the Township Commissioner's term. At the time of this vote, the
Board of Commissioners was aware of Wydo's intent to retire from the position of
Township Manager.
Commencing November 13, 2006, Sipper began overseeing the day -to -day
operations of the Township. Sipper also participated in developing the Township's 2007
budget, which included an increase of approximately 30% in the Township Manager's
salary from $43,296.63 in 2006 to $56,380.00 in 2007, while the Secretary,
Clerk/Secretaries and Solicitor received salary increases of approximately 4 %, 3 %, and
4 %, respectively. At the time Sipper was developing the Township's 2007 budget, Sipper
was being considered for the position of Township Manager.
At its December 11, 2006, regular meeting, the Board of Commissioners, including
Sipper, approved Wydo's resignation from the position of Township Manager. The Board
of Commissioners also approved Sipper's resignation as a Township Commissioner
effective December 30, 2006, appointed Sipper to the position of Township Manager, and
approved Sipper's salary. Sipper abstained from voting on his appointment to the position
of Township Manager, but voted to approve the 2007 budget which included his salary as
Township Manager.
On December 12, 2006, Sipper submitted a letter of intent to retire from his position
with the Luzerne Wyoming Counties Transportation Department with an effective
retirement date of December 30, 2006.
Township financial records confirm that Sipper, as Township Manager, received
Sipper, 07 -056
Page 12
biweekly gross compensation during 2007 in the amount of $2,168.46.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows.
3. The Investigative Division will recommend the following in relation to
the above allegations:
a. That a technical violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §1103(a)
occurred when Sipper participated in actions of the Township
Board of Commissioners in relation to his appointment to the
position of Township Manager.
4. Sipper agrees to make payment in the amount of $5,000.00 in
settlement of this matter. Said settlement amount is to be made in
monthly payments of $833.33 per month for six (6) months, made
payable to the Commonwealth of Pennsylvania and forwarded to the
Pennsylvania State Ethics Commission, with the first payment due
[within] thirty (30) days of the issuance of the final adjudication in this
matter.
5. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other authority
to take action in this matter. Such, however, does not prohibit the
Commission from initiating appropriate enforcement actions in the
event of Respondent's failure to comply with this agreement or the
Commission's order or cooperating with any other authority who may
so choose to review this matter further.
Consent Agreement, at 1 -2.
In considering the Consent Agreement, we shall accept the recommendation of the
parties that a technical violation of Section 1103(a) of the Ethics Act occurred when
Sipper, as Township Commissioner, participated in actions of the Board of Commissioners
in relation to his appointment to the position of Township Manager. Such actions included:
(1) directing the Township Solicitor to amend the Township Ordinance(s) relating to the
position of Township Manager to eliminate the restriction that a Township Commissioner
could not be appointed Township Manager within one year after the expiration of the
Township Commissioner's term; (2) voting to approve Township Ordinance number 009-
2006 eliminating such restriction; (3) developing the Township's 2007 budget, which
included a salary increase of approximately 30% for the Township Manager, at a time
when Sipper was being considered for the Township Manager position; (4) approving
Wydo's resignation from the position of Township Manager; and (5) voting to approve the
2007 budget, which included Sipper's salary as Township Manager. All such actions were
uses of authority of office. The resulting private pecuniary benefit to Sipper consisted of
compensation to Sipper as the new Township Manager. See, Fact Findings 11, 12, 15, 22,
27, 28c, 29, 30, 31, and 32.
Accordingly, we hold that a technical violation of Section 1103(a) of the Ethics Act
occurred when Sipper participated in actions of the Board of Commissioners in relation to
his appointment to the position of Township Manager. Cf., Snyder, Order 1371; Marcolini,
Order 1188; Crile, Order 1182.
Sipper, 07 -056
Page 13
As part of the Consent Agreement, Sipper has agreed to make payment in the
amount of $5,000.00 in settlement of this matter as follows: monthly payments of $833.33
per month for six (6) months, with said payments to be made payable to the
Commonwealth of Pennsylvania and forwarded to this Commission, and with the first such
payment due within thirty (30) days of the issuance of this adjudication and Order.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement, Sipper is directed to make payment in the
amount of $5,000.00 as follows: monthly payments of $833.33 per month for six (6)
months, with said payments to be made payable to the Commonwealth of Pennsylvania
and forwarded to this Commission, and with the first such payment to be forwarded to this
Commission by no later than the thirtieth (30 day after the mailing date of this
adjudication and Order.
IV. CONCLUSIONS OF LAW:
1. As a Commissioner for Hanover Township ( "Township ") from approximately 1990 to
December 30, 2006, John Sipper ( "Sipper ") was at all times relevant to these
proceedings a public official subject to the provisions of the Public Official and
Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq.
2. Sipper technically violated Section 1103(a) of the Ethics Act when he participated in
actions of the Township Board of Commissioners in relation to his appointment to
the position of Township Manager.
In Re: John Sipper,
Respondent
ORDER NO. 1487
File Docket: 07 -056
Date Decided: 9/22/08
Date Mailed: 10/10/08
1 John Sipper ( "Sipper "), a public official in his capacity as a Commissioner for
Hanover Township "Township ") from approximately 1990 to December 30, 2006,
technically violated Section 1103(a) of the Public Official and Employee Ethics Act,
65 Pa.C.S. § 1103(a), when he participated in actions of the Township Board of
Commissioners in relation to his appointment to the position of Township Manager.
2. Per the Consent Agreement of the parties, Sipper is directed to make payment in
the amount of $5,000.00 as follows: monthly payments of $833.33 per month for six
(6) months, with said payments to be made payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics Commission, and
with the first such payment to be forwarded to this Commission by no later than the
thirtieth (30 day after the mailing date of this Order.
3. Compliance with paragraph 2 above will result in the closing of this case with no
further action by this Commission; non - compliance will result in the institution of an
order enforcement action.
BY THE COMMISSION,
Louis W. Fryman, Chair