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HomeMy WebLinkAbout09-508 WilliamsJack Williams, Councilman City of Johnstown 360 Corinne Street Johnstown, PA 15906 -1616 Dear Mr. Williams: ADVICE OF COUNSEL February 10, 2009 09 -508 This responds to your letter dated January 5, 2009, by which you requested an advisory from the Pennsylvania State Ethics Commission. Issue: Whether the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa. .S. § 1101 et seq., would present any prohibitions or restrictions upon a city council member with respect to voting on the appointment of an attorney to serve as the city solicitor, when the city council member has sought advice and /or legal representation from the attorney on potential issues involving the adoption of the city's budget for 2009. Facts: As a Member of the City Council of the City of Johnstown ( "City "), Pennsylvania, you request an advisory from the Pennsylvania State Ethics Commission based upon submitted facts that may be fairly summarized as follows. Your current term as a City Council Member began on January 1, 2008. On November 12, 2008, the City Council was presented with the proposed annual operating budget for 2009. Following work shop sessions and regular and special City Council meetings, the City's 2009 budget was passed on December 18, 2008. You state that during the discussion and vote on the budget, you raised concerns and questions about the lack of required actions, but the vote proceeded nevertheless. You state that due to your continued concerns regarding the legality of the adoption of the City's 2009 budget, you contacted Nicolas Banda, Esquire ( "Attorney Banda ") for information and /or legal representation on the matter. You state that Attorney Banda could at some point in time be considered for appointment as the City Solicitor. Based upon the above submitted facts, you ask whether the Ethics Act would require you to abstain from participating and voting as to an appointment of Attorney Banda as the City Solicitor. Williams, 09 -508 February 10, 2009 Page 2 Discussion: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, the Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. As a City Council Member, you are a public official subject to the provisions of the Ethics Act. Sections 1103(a) and 1103(j) of the Ethics Act provide: § 1103. Restricted activities (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. (j) Voting conflict. - -Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee who in the discharge of his official duties would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest as a public record in a written memorandum filed with the person responsible for recording the minutes of the meeting at which the vote is taken, provided that whenever a governing body would be unable to take any action on a matter before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted to vote if disclosures are made as otherwise provided herein. In the case of a three - member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. 65 Pa.C.S. §§ 1103(a), (j). The following terms are 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 Williams, 09 -508 February 10, 2009 Page 3 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. "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. "Business." Any corporation, partnership, sole proprietorship, firm, enterprise, franchise, association, organization, self - employed individual, holding company, joint stock company, receivership, trust or any legal entity organized for profit. "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. 65 Pa.C.S. § 1102. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited 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. In each instance of a conflict of interest, the public official /public employee would be required to abstain fully from participation. The abstention requirement would not be limited merely to voting, but would extend to any use of authority of office, including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. Subject to certain statutory exceptions, in each instance of a voting conflict, Section 1103(j) of the Ethics Act requires the public official /public employee to abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a written memorandum to that effect with the person recording the minutes. In the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s) from conflict under the Ethics Act, then voting is permissible provided the disclosure requirements noted above are followed. See, Pavlovic, Opinion 02 -005. In addition, Sections 1103(b) and 1103(c) of the Ethics Act, 65 Pa.C.S. §§ 1103(b), (c), provide in part that no person shall offer or give to a public official /public employee anything of monetary value and no public official /public employee shall solicit or accept anything of monetary value based upon the understanding that the vote, official action, or judgment of the public official /public employee would be influenced thereby. Reference is made to these provisions of the law not to imply that there has been or will be any transgression thereof but merely to provide a complete response to the question presented. In applying the above provisions of the Ethics Act to the instant matter, you are advised as follows. Williams, 09 -508 February 10, 2009 Page 4 Subject to the statutory exceptions to the definition of "conflict" or "conflict of interest," pursuant to Section 1103(a) of the Ethics Act, you would have a conflict of interest in matters before you in your capacity as a City Council Member that would financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. The submitted fact that you have sought legal advice and /or representation from Attorney Banda on potential issues involving the legality of the adoption of the City's 2009 budget in and of itself would not form the basis of a conflict of interest under the Ethics Act for you in matters before the City Council pertaining to Attorney Banda. Cf., Messick, Order 1155. Accordingly, you are advised that absent some basis for a conflict of interest such as a private pecuniary benefit to you, a member of your immediate family, or a business with which you or a member of your immediate family is associated, Section 1103(a) of the Ethics Act would not restrict you from participating and voting as to an appointment of Attorney Banda as the City Solicitor. The propriety of the proposed conduct has only been addressed under the Ethics Act. Specifically not addressed herein is the applicability of the City's Home Rule Charter. Conclusion: As a Member of the City Council of the City of Johnstown ( "City "), Pennsylvania, you are a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Subject to the statutory exceptions to the definition of "conflict" or "conflict of interest," pursuant to Section 1103(a) of the Ethics Act, you would have a conflict of interest in matters before you in your capacity as a City Council Member that would financially impact you, a member of your immediate family, or a business with which you or a member of your immediate family is associated. The submitted fact that you have sought legal advice and /or representation from Nicolas Banda, Esquire ( "Attorney Banda ") on potential issues involving the legality of the adoption of the City's 2009 budget in and of itself would not form the basis of a conflict of interest under the Ethics Act for you in matters before the City Council pertaining to Attorney Banda. Absent some basis for a conflict of interest such as a private pecuniary benefit to you, a member of your immediate family, or a business with which you or a member of your immediate family is associated, Section 1103(a) of the Ethics Act would not restrict you from participating and voting as to an appointment of Attorney Banda as the City Solicitor. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Act. Pursuant to Section 1107(11) of the Ethics Act, an Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, provided the requester has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as such. Finally, if you disagree with this Advice or if you have any reason to challenge same, you may appeal the Advice to the full Commission. A personal appearance before the Commission will be scheduled and a formal Opinion will be issued by the Commission. Any such appeal must be in writing and must be actually received at the Commission within thirty (30) days of the date of this Advice pursuant to 51 Pa. Code § 13.2(h). The appeal may be Williams, 09 -508 February 10, 2009 Page 5 received at the Commission by hand delivery, United States mail, delivery service, or by FAX transmission (717 - 787 - 0806). Failure to file such an appeal at the Commission within thirty (30) days may result in the dismissal of the appeal. Sincerely, Robin M. Hittie Chief Counsel