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Home My WebLink About1517 RegolaIn Re: Robert Regola, 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 -094 Order No. 1517 4/30/09 5/15/09 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 allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was not filed. A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were 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. Regola, 07 -094 Page 2 I. ALLEGATIONS: That Robert Regola, a public official /public employee in his capacity as a Member of the Hempfield Township Municipal Authority, Westmoreland 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 this office for private pecuniary gain including but not limited to using the Authority credit cards to incur expenses of a personal nature for himself and /or his spouse for attendance at various conventions and seminars; and when he participated in the process to approve the use of authority funds to pay his personal legal fees. II. FINDINGS: 1. Robert Regola served as a member of the Hempfield Township Municipal Authority (hereafter HTMA), Westmoreland County, from July 12, 1990, until resigning from the Board on November 3, 2008. a. Regola was appointed to the HTMA by the Hempfield Township Board of Supervisors. 2. Regola held the position of board chairman of the HTMA from January 13, 1998, until January 13, 2008. a. Regola was initially appointed HTMA chairman at the HTMA reorganization meeting of January 13, 1998, and every year thereafter until 2008. b. Regola was replaced by Matt Pecarchik as chairman of the HTMA board on January 14, 2008. c. Regola resigned as an Authority board member on November 3, 2008. 3. HTMA board members are compensated for their service on the board. a. Board members are compensated $200.00 per month for their service on the HTMA. 1. Board members receive compensation whether or not they attend the board meetings. 4. The Hempfield Township Board of Supervisors created the HTMA in 1949 pursuant to the authority granted by the Pennsylvania Municipality Authorities Act 1945, as amended. a. Articles of Incorporation were filed by the Township with the Pennsylvania Department of State on July 25, 1949. b. The powers and purposes of the Authority are to include: acquiring, holding, constructing, improving, maintaining and operating, owning, leasing, either in the capacity of lessor or lessee, water works, water supply works and water distribution systems in the Township of Hempfield, Westmoreland County, Pennsylvania. 5. Current bylaws on file for the HTMA were adopted on or about January 12, 1984. a. Article !Hof the bylaws provided for the appointment of officers including the following: Chairman Regola, 07 -094 Page 3 Vice Chairman Secretary Treasurer Assistant Secretary Assistant Treasurer b. All offices on the board are required to be filled by members of the Authority Board. 6. The position of Chairman, as outlined in the bylaws, has the following duties and responsibilities: The Chairman shall preside at all meetings of the Board, shall have general control over the affairs of the Authority, subject to the direction of the Board of Directors, and shall sign all checks, drafts, warrants, contracts, and other instruments of the corporation. 7 All five board members and the Authority General Manager have signature authority over the financial accounts of HTMA. a. The majority of Authority checks are signed at the conclusion of a legislative meeting. 1. Authority checks require the signature of two authorized signatories. 2. A facsimile stamp was utilized by the Authority for member Kathy Hopkin beginning in or about 2003. b. During his tenure as Chairman, Regola signed numerous HTMA checks including those issued as payment of expenses for him. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT REGOLA PARTICIPATED IN THE PROCESS TO APPROVE THE USE OF AUTHORITY FUNDS TO PAY HIS PERSONAL LEGAL FEES. 8. In or about December 2002, Regola was the subject of an investigation by the Pennsylvania State Ethics Commission for allegedly violating provisions of the State Ethics Act (Act 9 of 1989, 65 P.S. §401 et seq.) a. On September 12, 2005, the Commission issued Order #1373 concluding that Regola, as Chairman of the HTMA, unintentionally violated Section 1103(a) when he presented correspondence to the HTMA on March 27, 2002, regarding the payment of D &M Contracting, a business that received a contract from the HTMA regarding a sewer extension project and then subcontracted with Regola's business for the provision of certain services. b. Regola was directed by the Commission to make a payment to the Commonwealth of Pennsylvania in the amount of $500.00. 1. On or about October 5, 2005, Regola's wife, Evelyn Regola, issued personal check #9009 in the amount of $500.00 to the Commonwealth of Pennsylvania to comply with the stipulations of the consent agreement. 9. Regola was represented by Attorney Charles Means of the firm Goehring, Rutter & Boehm throughout the majority of the aforementioned investigation. Regola, 07 -094 Page 4 a. Means contacted Alan Berk, Solicitor, HTMA, in approximately March 2003 to determine if Regola's legal fees in regards to case 02- 090 -C2, Regola was an expense the Authority was obligated to pay. b. Berk informed Means that the Authority was obligated to pay Regola's legal fees based on Berk's interpretation of the by -laws adopted by the HTMA, specifically Article VII. 1. Means concurred with Berk's legal interpretation of Article VII of the Authority's by -laws. 10. Article VII of the Authority's by -laws addresses the payment of legal fees by the Authority as follows: To the fullest extent permitted by law, the Authority shall indemnify any present or future board member, officer, or employee against all costs and expenses actually and reasonably incurred by him or imposed upon him in connection with any claim, action, suit or proceeding, whether civil, criminal, administrative or investigative, or threat thereof, by reason of his serving or having served in such capacity with or for the Authority, if it is determined that he acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the Authority, and, with respect to any criminal action or proceeding, that he had no reasonable cause to believe his conduct was unlawful. Costs and expenses shall include judgments (unless paid to the Authority itself), attorney's fees and other reasonable expenses and disbursements, except that unless and only to the extent a court of competent jurisdiction shall nonetheless deem indemnity to be proper, indemnity for accounts paid in settlement shall be made only where it is determined that such person was not negligent or guilty of misconduct in the performance of his duties to the Authority. A final determination of the merits in favor of such person shall be binding upon the Authority. All other required by this provision shall be made by a majority of the [sic] determinations required by this Provision shall be made by a majority of the disinterested members of the Board of Directors of the Authority, or by independent legal counsel selected by the Board of Directors. A conviction based upon a plea of nolo contendere or its equivalent or entry of a civil judgment by consent shall not be binding determination for the purposes of this provision. Any expenses incurred with respect to any action or proceeding covered by this provision may be advanced by the Authority to the person involved prior to final determination thereof upon receipt of an undertaking by or on behalf of such person that he will repay such amount if it is ultimately determined that he is not entitled to indemnification by the Authority." 11. Regola was billed for services by Means on an hourly basis at the rate of $185.00 an hour. a. Regola was issued invoices by Means on a monthly basis for services rendered. 12. Means mailed a version of Regola's invoices to Solicitor Berk at Berk's request. a. Berk requested that the invoices be mailed to his attention in order to confirm that the invoices were in regards to the Ethics Commission investigation of case no. 02 -090. 13. Invoices issued directly to Regola by Means were paid by Regola via personal Check Date Check No. Check Amount Signature Authority 3/8/2004 30740 $657.37 Kathy Libertini, Robert Regola 5/5/2004 31017 $2,831.94 Kathy Libertini, Robert Regola 6/30/2004 31251 $173.18 Kathy Libertini, Robert Regola 8/11/2004 31452 $244.44 Kathy Libertini, Robert Regola 6/1/2005 32808 $758.50 Kathy Hopkin, Robert Regola 12/1/2005 33675 $3,071.00 Kathy Hopkin, Robert Regola TOTAL:$7,736.43 Regola, 07 -094 Page 5 check. a. Regola subsequently received reimbursement from the HTMA for all payments he made to Means in regards to case no. 02 -090. 14. Means directed correspondence to the Authority requesting that approved reimbursement payments issued to Regola be sent to his law office. a. Means requested that the reimbursement payments be issued to him in order to verify that Regola was being reimbursed for the correct amounts. b. If Regola did not pay Means prior to the issuance of a reimbursement check by the HTMA, Means would keep Regola's reimbursement check until Regola issued payment to Goehring, Rutter & Boehm. 15. Invoices mailed by Means to Berk's attention were subsequently provided to the HTMA Board of Directors for review during executive sessions. 16. HTMA meeting minutes document that as early as June 10, 2003, executive sessions were being held to discuss the payment of Regola's legal fees. a. Minutes confirm that Regola did not participate in the executive sessions during which his legal fees were discussed. b. Regola left the meetings and did not return until after the board took action to approve the payment of Regola's legal fees. 1. All of the legal invoices presented to the board were approved for payment. 2. The board voted to approve the invoices related to Regola due to Berk's legal advice and legal interpretation of the Authority's by -laws, particularly Article VII. 17. Regola did not vote for the approval of any of the twenty -one invoices presented to the board for consideration which resulted in payment of $17,922.52 in legal fees by the HTMA as shown below: a. Six of the seventeen Authority checks issued to Regola were signed by Regola as an authorized Authority signatory totaling $7,736.43 as shown below: b. The cheeks were made payable to Robert Regola. Regola, 07 -094 Page 6 c. Regola signed the checks in an administrative capacity. 1. Regola's signing of these checks did not result in any payments that he would not have otherwise received. 18. On January 2, 2008, Attorney Means forwarded correspondence to the State Ethics Commission outlining Means' Opinion that Regola was entitled to reimbursement payments made by the Authority. a. Means enclosed an analysis of a Pennsylvania Supreme Court case, Supervisors of Lewis Township v. Employer's Mutual Casualty Company, 523 A.2d 719 (Pa. 1987). 1. Means' analysis concluded that the court ruled that public policy requires that the public officials be free to hold public office without fear that negligent conduct would expose them to uninsurable personal expenses, while at the same time, disallowing coverage of public officials for misconduct that is willful or fraudulent. b. Means expressed his belief that due to the Commission ruling that Regola unintentionally violated the Ethics Act, it was appropriate that the HTMA pay Regola's legal fees. THE FOLLOWING FINDINGS RELATE TO REGOLA'S ALLEGED USE OF OFFICE TO HAVE EXPENSES OF A PERSONAL NATURE FOR HIMSELF AND /OR HIS SPOUSE FOR ATTENDANCE AT VARIOUS CONVENTIONS AND SEMINARS PAID FOR BY THE HTMA. 19. HTMA board members and selected employees have regularly attended conferences, conventions, seminars, and workshops since at least 1996. a. Travel for conferences, conventions, seminars, and workshops has included but has not been limited to events sponsored by the following: Pennsylvania Municipal Authorities Association (PMAA) Water Environment Federation (WEF) American Water Works Association (AWWA) 20. Prior to August 2007, HTMA procedures for a board member or employee to attend conferences, conventions, seminars, and workshops included the following: a. Board members were provided announcements of conferences, conventions, seminars, and workshops by the HTMA General Manager. 1. The members advised the General Manager of events they were interested in attending. b. Board authorization was not required if a member wanted to attend an event of interest. 21. Registration of an HTMA board member for an event was either done by the board member himself or completed by a staff member of the HTMA. a. If registration was completed by a staff member, the staff member was directed by the Board Director as to what events the Board Director wanted to attend and who the Board Director wanted to bring to the event as a Regola, 07 -094 Page 7 guest. 1. Regola has encouraged other Board Directors and staff to bring their spouses and /or significant others to events. 22. The General Manager normally arranged hotel accommodations for those attending conferences, conventions, seminars or workshops, including spouses and guests. a. On occasion, board members arranged their own airfare /travel arrangements and hotel accommodations. 23. Expenses incurred for attending events such as registration fees, hotel expenses, airfare, mileage, tolls, etc. were paid out -of- pocket by the member, by an Authority credit card, or by an Authority check. a. The majority of a board members' out -of- pocket expenses to attend an event were paid by the member prior to 2004. 1. The member would then be reimbursed for out -of- pocket expenses. b. Only the Authority General Manager and the Finance Director had Authority credit cards prior to 2004. 1. At times prior to 2004, the General Manager's Authority credit card or the Finance Director's Authority credit card was used to pay registration fees, subsistence, and hotel room expenses. c. Board members received individual credit cards beginning in or about 2004. 24. Expense reports were to be filed by Board members with the Authority detailing out - of- pocket expenses incurred by board members while in travel status. a. Sections of the expense report were designated for the disclosure of the following information: expense date, expense description, expense location, and expense total. b. Expense reports were to be completed by the individual incurring the expense(s). c. Expenses paid via an Authority credit card were rarely documented on an expense report. 25. Conference, convention, seminar, and workshop related expenses were detailed on bill lists for approval at the HTMA legislative meetings. a. Board Member expenses were approved by Board vote after expenses were incurred. b. Regola participated in votes of the Board to approve travel expenses of all Board Members. c. Reimbursements for out -of- pocket travel expenses incurred by board members and employees were made in the form of an Authority check payable to the board member or employee incurring the expenses. d. Expenses incurred via Authority credit cards were paid by Authority checks that were sent directly to the credit card company. Regola, 07 -094 Page 8 26. In approximately mid 2004, Board members advocated for Authority credit cards to be issued to each board member. a. The board members advocated for credit cards to be issued because they felt that the process to be reimbursed for out -of- pocket expenses was taking too long. b. No Board vote was taken authorizing the HTMA to obtain credit cards on behalf of Board members. 1. The HTMA general manager was directed to obtain credit cards for members. 27. On or about August 2004, Regola was provided with a Citizens Bank Authority credit card no. )000X- )000X -)000X -0399. a. Regola's Authority credit card had a total credit line of $5,000.00. b. Regola's Authority credit card was active from August 2004 until July 13, 2007, when the account was closed. 28. After Regola and other Authority members were issued credit cards, there was a decline in the volume of receipts and /or support documentation submitted by HTMA members in association with expenses incurred in relation to attendance at conferences, conventions, seminars, and workshops. a. Regola and other Board members were made aware that receipts were needed to corroborate charges being made to credit cards. b. Regis Ranella, prior Finance Director, and current General Manager of HTMA, informed the board of the decline in support documentation and requested that receipts be provided. c. Ranella's request was not followed by Regola and other Board members who continued to make charges to their Authority credit cards without submitting support documentation. d. If the board member did not provide any verbal or written directives in regard to how [his or her] statement should be paid, management paid the statements without review. e. HTMA staff documented credit card expenses made by Members on purchase orders in order to confirm the Member and charge. 29. In 2007, HTMA member Bob Davidson began reviewing charges Board members were making in regards to attendance at conferences, conventions, seminars, and workshops. a. The review concluded that Board members, including Regola, were making substantial charges in regards to hotel expenses and subsistence; that Board members' spouses' expenses were being paid for by the Authority; and that personal expenses (such as alcohol, gas, etc.) were being charged to Authority credit cards. 30. Regola on or about July 2, 2007, sent a letter to HTMA Solicitor Alan Berk which stated the following: Regola, 07 -094 Page 9 "Recently a few news articles have been published regarding credit card charges by Hempfield Township Municipal Authority Board members. I have been mentioned regarding a few credit card charges. All charges made by me and submitted to the Authority for payment were for appropriate Authority - related business matters. However, in order to ensure that the important work of the Authority is not tainted by perceptions relating to credit card charges, I am enclosing and returning my Authority credit card. In the future, I will use my personal credit card or pay cash for any Authority - related business charges. I will then submit receipts with a stated business purpose when seeking reimbursement. I will also propose a resolution at the next Authority meeting to make that process Authority practice. Sincerely, Robert Regola, Jr." 31. On July 23, 2007, at 3:56 p.m., Regola sent the following email to the Hempfield Township Supervisors: It has been brought to my attention that despite all expenses incurred by me and reimbursed to the Authority being legal and appropriate, and despite my good faith efforts to improve Authority spending practices, it remains the intention of some Hempfield Township Supervisors to insist upon my resignation, along with that of Board Members Melenia and Hopkin. The Tribune Review reported that Mr. Pecarchik took his girlfriend, Katie Stitely, to a convention in 2005 at Authority expense and did not reimburse the Authority until recently. Despite this clearly inappropriate use of Authority funds, no call for Mr. Pecarchik's resignation has been made. If resignations are to be demanded, let the supervisors begin with seeking the resignation of Mr. Pecarchik. If it is the supervisor's intention to file a complaint with the Ethics Commission regarding my service as a board member, then I look forward to the opportunity to address any matters with the Ethics Commission, as all my convention reimbursement has been legal and appropriate." 32. Regola did not make any reimbursement to the HTMA for personal expenses at that time. 33. On August 13, 2007, the board adopted the "Hempfield Township Municipal Authority Conference Expense Policy," via a 3 -2 vote with board members Davidson and Pecarchik voting nay. a. The travel policy was proposed by Robert Regola. b. The Authority did not have a travel expense policy prior to August 13, 2007. 34. The HTMA Conference Expense Policy outlines guidelines including attendees, eligible expenses for reimbursement, itemization of expenses, maximum travel, and reimbursements and ineligible expenses. 35. Following the adoption of the Conference Expense Policy, there was a sharp decline in Regola and other Board members attending conferences, conventions, seminars, and workshops. Regola, 07 -094 Page 10 a. Regola claimed no expenses after July 2007. THE FOLLOWING FINDINGS RELATE TO REGOLA'S EXPENSES IN RELATION TO PMAA EVENTS ATTENDED IN 2002, 2003, 2004, 2005, AND 2006. 36. The PMAA is the recognized association for municipal authorities in the Commonwealth of Pennsylvania. a. The PMAA, formed in 1941, was established "to provide its members with a medium for exchange of ideas on municipal problems, to present a united and common front in advocating favorable legislation, and opposing detrimental legislation, and to otherwise promote the general welfare of municipal authorities of the Commonwealth of Pennsylvania." 37. The PMAA is divided into regions. a. Westmoreland County is considered Region 9 of the PMAA. b. The HTMA is located within the boundaries of Region 9. 38. The PMAA holds various events for the benefit of its members including the following: a. Annual Conference and Trade Show b. Legislative Day Conferences c. One day seminars d. Dinner meetings for each region 39. Regola, as an HTMA board member, has regularly attended various events hosted by the PMAA. a. Regola's wife accompanied Regola to the majority of the events he attended. b. The majority of Regola's expenses and his wife's expenses to attend PMAA events have been paid for by the Authority. 40. The PMAA holds an Annual Conference and Trade Show in or around September or October of each year. a. Regola regularly attended the annual conferences from at least 2003 through 2006. b. Regola's wife has attended the annual conferences with Regola. 41. The 2003 PMAA Annual Conference was held in Hershey, PA from Sunday, August 24, 2003 to Wednesday, August 27, 2003. a. The conference location was the Hershey Lodge and Convention Center located at West Chocolate Ave. & University Drive, Hershey, PA 17033. 42. The HTMA paid a registration fee of $195.00 for Regola to attend the conference. a. The registration fee included continental breakfasts for Regola on August 25, 2003, and August 26, 2003. Description of Event Who was Registered Amount 8 -24 -03 Hershey Park Admission and Picnic Regola and wife $67.00 8 -25 -03 "Felicita" Garden Tour & Lunch Event Regola's wife $45.00 8 -25 -03 Board Members' Luncheon Regola $23.00 8 -25 -03 Outdoor BBQ w/ Entertainment Regola and wife $98.00 8 -26 -03 Banquet Regola and wife $90.00 8 -27 -03 Family Breakfast Regola and wife $36.00 TOTAL: $359.00 Regola, 07 -094 Page 11 43. Regola and his wife, Evelyn Regola, were registered for certain events that required an additional fee to be paid as shown below: The fees to attend the additional events were initially charged to then Authority General Manager Kevin Fisher's Authority issued credit card on July 11, 2003. 1. Fisher's credit card statement reflected payment of the additional registration fees to attend the additional events via Authority check #29686 dated August 13, 2003. aa. Authority check #29686 was approved for issuance via signature by board member Hopkin and Fisher. 44. Regola and his wife were registered to stay at the Hershey Lodge located at West Chocolate Ave and University Drive, Hershey, PA 17033 while attending the 2003 conference. a. a. Regola arrived on August 24, 2003, and departed on August 27, 2003. 1. Arrival and departure times were not noted on the Hershey guest folio for Regola. b. The room rate was $165.00 /night plus taxes. c. Two people were identified in the party. 1. Lodging did not require additional expenses for the second person in the room. 45. Charges incurred to Regola's room account at the Hershey Lodge included the following: Date Description of Charge Amount 8 -24 -03 Room $165.00 8 -24 -03 Occupancy Tax $9.90 8 -24 -03 County Occupancy Tax $4.95 8 -25 -03 Lodge -Net Video /Movie $12.71 8 -25 -03 Room $165.00 8 -25 -03 Occupancy Tax $9.90 8 -25 -03 County Occupancy Tax $4.95 8 -26 -03 Hershey Grill (time 09:54) $27.36 8 -26 -03 Room $165.00 8 -26 -03 Occupancy Tax $9.90 Regola, 07 -094 Page 12 8 -26 -03 County Occupancy Tax $4.95 Total: $579.62 a. Regola's hotel charge of $579.62 was paid via then Authority General Manager Kevin Fisher's Authority issued credit card on August 27, 2003. 1. Fisher's credit card statement reflecting the hotel charge was paid via Authority check #29944 dated October 8, 2003. aa. Authority check #29944 was approved for issuance via signature by Hopkin and Fisher. 46. Payment of Regola's hotel charges included a movie rental expense in the amount of $12.71 on August 25, 2003, and a subsistence charge of $27.36 on August 26, 2003. a. The hotel folio documented the meal expense occurring at or about 9:54 a.m. on August 26, 2003. b. On August 26, 2003, a complimentary breakfast was provided by PMAA to all attendees of the conference at no charge which Regola registered to attend as reflected by his confirmation notice. c. The breakfast expense for Regola and his wife was incurred during the same time frame as conference activities. 47. Regola submitted an expense report to HTMA claiming additional expenses of $230.27 in relation to attending the 2003 PMAA Annual Conference as shown below: Date Description of Expense Expense Amount 8 -24 -03 Lunch $47.81 8 -24 -03 215 miles from Greensburg to Hershey $77.40 8 -24 -03 Turnpike Fee $ 6.85 8 -27 -03 Lunch $13.96 8 -27 -03 215 miles from Greensburg to Hershey $77.40 8 -27 -03 Turnpike Fee $ 6.85 Total: $230.27 * Mileage was calculated at a rate of $0.36 /mile a. Regola signed his report on or about November 19, 2003, in the "signature of traveler" section. b. Regola's expense report was approved by Authority staff member Regis Ranella although receipts for the expenses listed were not provided. c. The claimed expenses included receipts for Regola's wife on August 24, 2003, and August 27, 2003. 1. August 24, 2003: 1/2 of $47.81 = $23.90 2. August 27, 2003: '/ of $13.96 =$6.98 48. The HTMA paid personal expenses of $294.25 for Regola and his spouse to attend the 2003 PMAA conference. Description of Expense Nature of Expense Entertainment Amount $67.00 Hershey Park Admission for Regola and wife Fee for Regola's wife to attend the "Felicita" Garden Tour & Lunch Event Entertainment $45.00 Outdoor BBQ w/ Entertainment for wife Entertainment $49.00 Fee for Regola's wife to attend banquet with Regola Entertainment $45.00 Family Breakfast for Regola and wife (1/2 of $36.00) ** Entertainment $18.00 Movie Charged to Hotel Room Entertainment $12.71 Breakfast charged to hotel room on August 26, 2003 Free* $27.36 Spouse meals August 24, 2003, and August 27, 2003 $30.88 Total: $294.95 Description of Event Who was Registered Amount 8 -23 -04 Professional Luncheon Regola $25.00 8 -24 -04 Carnegie Science Center Regola and his wife $98.00 8 -25 -04 Family Breakfast Regola and his wife $36.00 Total: $159.00 Regola, 07 -094 Page 13 *Free = the expense claimed was complimentary * *Breakfast on August 26, 2003, provided by PMAA 49. The 2004 PMAA Conference was held in Pittsburgh, PA from Sunday, August 22, 2004, through Wednesday, August 25, 2004. a. The conference location was the Pittsburgh Westin Hotel and Convention Center located at 100 Penn Ave., Pittsburgh, PA 15222. b. The HTMA paid a registration fee of $195.00 for Regola to attend the conference. c. The registration fee was charged to Ranella's Authority issued credit card on July 16, 2004. 1. Ranella's credit card statement reflected payment of the registration fee via Authority check #31391, dated August 9, 2004. aa. Authority check #31391 was approved for issuance via signature by Regola and Hopkin. d. The payment of the registration fee for Regola included breakfasts on August 23, 2004, and August 24, 2004. 50. Regola and his wife were registered for PMAA sponsored events not related to the educational functions of the conference: a. Registrations for Regola and his wife were made at his direction. b. The fees to attend the non - conference events were charged to Ranella's Authority issued credit card on July 16, 2004. c. Ranella's credit card statement reflected payment of the additional fees to attend the additional events via Authority check #31391 dated August 9, Date Room State Room Tax Parking Phone County Room Tax 8/22/2004 - - $22.00 - - 8/22/2004 $149.00 - - - - 8/22/2004 - - - - $8.75 8/22/2004 - $8.75 - - - 8/23/2004 - - - [Respondent's home telephone number] ($10.25) - 8/23/2004 - - $22.00 - - 8/23/2004 $149.00 - - - - 8/23/2004 - - - - $8.75 8/23/2004 - $8.75 - - - 8/24/2004 - - - [Respondent's home telephone number] ($5.79) - 8/24/2004 - - - [Respondent's home telephone number] ($5.79) - 8/24/2004 - - - [Respondent's home telephone number] ($16.20) - 8/24/2004 - - $22.00 - - 8/24/2004 $149.00 - - - - 8/24/2004 - - - - $8.75 8/24/2004 - $8.75 - - - Totals: $447.00 $26.25 $66.00 $38.03 $26.25 Regola, 07 -094 Page 14 2004. 1. Authority check #31391 was approved for issuance via signature by Regola and Hopkin. 51. Regola and his wife were registered to stay at the Westin Hotel located at 1000 Penn Ave, Pittsburgh, PA 15222 in order to attend the conference. a. Regola checked in on August 22, 2004, and departed on August 25, 2004. b. The room rate was $149.00 /night plus taxes. c. Two people were identified in the party. 1. Lodging did not require additional expenses for the second person in the room. 52. Charges incurred to Regola's room account at the Westin included the following: a. Regola's total hotel charge of $603.53 was paid via Ranella's Authority issued credit card on August 26, 2004. b. Ranella's credit card statement reflected payment of the hotel charge via Authority check #31516, dated September 8, 2004. Date Telephone Number Amount 24- Aug -04 [Respondent's home telephone number] $10.25 24- Aug -04 [Respondent's home telephone number] $5.79 24- Aug -04 [Respondent's home telephone number] $5.79 24- Aug -04 [Respondent's home telephone number] $16.20 Total: $38.03 Regola, 07 -094 Page 15 1 Authority check #31516 was approved for issuance via signature by Regola and Hopkin. 53. Payment of Regola's hotel charges included four personal telephone calls placed to Regola's home on August 24, 2004, that totaled $38.03, as shown below: a. The above referenced telephone number is Regola's home telephone number. 54. Regola submitted an expense report to the HTMA claiming additional expenses of $93.26 in relation to attending the 2004 PMAA Annual Conference as shown below: Date Description of Expense Expense Amount 8 -22 -04 *41 miles from Greensburg to Pittsburgh $15.38 8 -22 -04 Turnpike $ .75 8 -23 -04 Lunch $16.00 8 -24 -04 Taxi $45.00 8 -25 -04 41 miles from Pittsburgh to Greensburg $15.38 8 -25 -04 Turnpike $ .75 Total: $93.26 *Mileage was calculated at a rate of $0.37 /mile. a. Regola signed his report on or about December 1, 2004, in the "signature of employee" section. b. Regola claimed a lunch expense on August 23, 2004, of $16.00 even though the HTMA prepaid a $25.00 lunch for him as part of his conference registration. c. Regola was issued Authority check #32000 dated December 13, 2004, to reimburse him for expenses listed on his August 2004 expense report. 1. Authority check #32000 was approved for issuance via signature by Hopkin and Pecarchik. Description of Expense Nature of Expense Amount Carnegie Science Center event for Regola and wife Entertainment $98.00 Family Breakfast for Regola's wife (1/2) of $36.00 Entertainment $18.00 Telephone Calls Personal $38.03 Lunch expense claimed on report for 8- 23 -04 - $16.00 Total: $170.03 Description of Event Who was Registered Amount 9 -12 -05 A Night in Italy Event Regola and his wife $98 9 -12 -05 Christmas Tree Hill & Luncheon Regola's wife $40 9 -14 -05 Family Breakfast Regola and his wife $38 Total:$176.00 Regola, 07 -094 Page 16 55. The HTMA paid personal expenses for Regola and his wife totaling $170.03 when attending the 2004 PMAA conference. 56. The 2005 PMAA Conference was held in Hershey, PA from Sunday, September 11, 2005, through Wednesday, September 13, 2005. a. The conference location was the Hershey Lodge and Convention Center located at W. Chocolate Ave. & University Dr., Hershey, PA 17033. b. The HTMA paid a registration fee of $195.00 for Regola to attend the conference. 1. The registration fee included breakfasts on September 12, 2005, and September 13, 2005. 2. The registration fee was charged to Ranella's Authority issued credit card on July 28, 2005. 3. Ranella's credit card statement reflecting the registration fee was paid via Authority check #33270, dated September 19, 2005. 4. Authority check #33270 was approved for issuance via signature by Hopkin and Pecarchik. 57. Regola registered his wife and him for entertainment/spousal programs unrelated to official conference activities which were paid by the HTMA. a. The fees to attend the additional events were charged to Ranella's Authority issued credit card on July 28, 2005. b. Ranella's credit card statement reflecting the fees to attend the additional events was paid via Authority check #33270, dated September 19, 2005. 1. Authority check #33270 was approved for issuance via signature by Hopkin and Pecarchik. 58. Regola and his wife were registered to stay at the Hershey Lodge W. Chocolate Ave. & University Dr., Hershey, PA 17033. Date Description Amount $159.00 9 -11 -05 Room 9 -11 -05 Occupancy Tax $9.54 9 -11 -05 County Occupancy Tax $4.77 9 -12 -05 Bears Den (Time: 13:00) $44.45 9 -12 -05 Long Distance Call 724 - 454 - 4090 -7248 (Time: 18:06) $12.84 9 -12 -05 Room $159.00 9 -12 -05 Occupancy Tax $9.54 9 -12 -05 County Occupancy Tax $4.77 9 -13 -05 Forebay (Time: 20:08) $156.20 9 -13 -05 Room $159.00 9 -13 -05 Occupancy Tax $9.54 9 -13 -05 County Occupancy Tax $4.77 Total: $733.42 Date Description Amount 9 -13 -05 Forebay (Time: 20:08) $156.20 Regola, 07 -094 Page 17 a. Regola checked in on September 11, 2005, and departed on September 14, 2005. b. The room rate was $159.00 /night plus taxes. c. Two people were identified in the party. 1. Lodging did not require additional expenses for the second person in the room. 59. Charges incurred to Regola's room account at the Hershey Lodge included the following: a. Regola's total hotel charge of $733.42 was paid via Regola's Authority issued credit card on June 29, 2005 (advance payment of $173.31) and on September 15, 2005 (remainder of expenses in the amount of $560.11). 1. Regola's advance payment of $173.31 made on June 29, 2005, was paid via Authority check #32976 dated July 13, 2005. aa. Authority check #32976 was approved for issuance via signature by Regola and Hopkin. 2. The remainder of the expenses paid via Regola's credit card on September 15, 2005, in the amount of $560.11 were paid via Authority check #33430 dated October 19, 2005. aa. Authority check #33430 was approved for issuance via signature by Regola and Hopkin. 60. Payment of Regola's hotel charges also included a dinner expense as follows: a. The Forebay is a restaurant located at the Hershey Lodge. b. Regola and his wife were not registered to attend the annual PMAA banquet scheduled for September 13, 2005, as part of the conference. Regola, 07 -094 Page 18 1 The costs of $156.20 was dinner expenses for Regola and his wife on September 13, 2005, at the Forebay Lounge. 61. Regola submitted an expense report to the HTMA claiming additional expenses of $290.72 in relation to attending the 2005 PMAA Annual Conference as shown below: Date Description of Expense Expense Amount 9 -11 -05 Lunch $33.36 9 -11 -05 *209 miles from Greensburg to Hershey $101.37 9 -11 -05 Turnpike Fare $10.00 9 -12 -05 Breakfast $12.95 9 -12 -05 *7 miles (no destinations provided) $3.40 9 -13 -05 *9 miles (no destinations provided) $4.37 9 -14 -05 Lunch $13.90 9 -14 -05 *209 miles from Hershey to Greensburg $101.37 9 -14 -05 Turnpike Fare $10.00 Total: $290.72 * Mileage was calculated at a rate of $0.48 /mile a. Regola signed his report on or about September 26, 2005, in the "signature of employee" section. b. Regola's expense report was approved by Ranella even though receipts for the expenses listed were not provided by Regola. 62. Regola was issued Authority check #33450, dated October 19, 2005, for additional expenses he claimed for attendance at the 2005 PMAA Conference. a. Authority check #33450 was approved for issuance via signature by Regola and Hopkin. 63. The expense Regola claimed on his expense report for September 11, 2005, in the amount of $33.36 was for lunch for Regola and his wife while traveling to Hershey. a. Regola used his Authority issued credit card to make the $33.36 purchase at the Bob Evans Restaurant located in Breezewood, PA. 1. The expense charged to the credit card was paid via Authority check #33430, dated October 19, 2005. 2. Authority check #33430 was approved for issuance via signature by Regola and Hopkin. b. Regola also claimed this expense on the expense report and was reimbursed as part of HTMA check no. 33450. c. Regola claimed duplicate reimbursement for his and his spouse's expenses related to this meal. 64. Regola claimed a breakfast expense on September 12, 2005, totaling $12.95 even though he was provided a complimentary breakfast as a part of his registration fee to attend the conference. a. Regola did not submit a receipt for this expense. Description of Expense Nature of Expense Entertainment Amount $49.00 Regola's wife's registration for a Night in Italy Event Regola's wife's registration for the Christmas Tree Hill and Lunch Entertainment $40.00 Regola's wife's registration for the PMAA Family Breakfast Entertainment $19.00 September 11, 2005, lunch expense reported on expense report Paid* $33.36 September 11, 2005, 1/2 of lunch expense 9 -12 -06 Banquet and After Party $16.68 September 12, 2005, breakfast expense reported on expense report Free* $12.95 September 13, 2005, Forebay Lounge'/ of $156.20 - $78.10 September 14, 2005, 1 / of lunch expenses (spouse $13.90) - $6.95 Total: $256.04 Description of Event Registrants (s) Amount 9 -11 -06 Professional Lunch Regola $25.00 9 -11 -06 Lunch & Kitchen Kettle Village Regola's wife $40.00 9 -11 -06 Monday Night Football Event Regola and wife $98.00 9 -12 -06 Hershey Trolley Tour Regola's wife $ 9.95 9 -12 -06 Banquet and After Party Regola and wife $98.00 9 -13 -06 Family Breakfast Regola and wife ($49.00 per $38.00 Regola, 07 -094 Page 19 b. This expense was paid as part of HTMA check no. 33450. 65. The HTMA paid personal expenses of $256.04 for Regola's and his wife's attendance at the 2005 PMAA conference. 66. The 2006 PMAA Conference was held in Hershey, PA from Sunday, September 10, 2006, through Wednesday, September 13, 2006. a. The conference location was the Hershey Lodge and Convention Center located at W. Chocolate Ave. & University Dr., Hershey, PA 17033. b. The HTMA paid a registration fee of $195.00 for Regola to attend the conference. 1. The fee included breakfast for Regola on September 11, 2006, and September 12, 2006. 2. The registration fee was charged to Regola's Authority issued credit card on July 7, 2006. 3. Regola's credit card statement reflected payment of the registration fee via Authority check #34795, dated August 14, 2006. 4. Authority check #34795 was approved for issuance via signature by Hopkin and Pecarchik. 67. Regola and his wife were registered for entertainment events paid by the HTMA as follows: Date Description Amount $ 12.87 9 -10 -06 Long Distance Phone (Time: 17:53) [Respondent's home telephone number] 9 -10 -06 Room $165.00 9 -10 -06 Occupancy Tax $ 9.90 9 -10 -06 County Occupancy Tax $ 4.95 9 -11 -06 Room $165.00 9 -11 -06 Occupancy Tax $ 9.90 9 -11 -06 County Occupancy Tax $ 4.95 9 -12 -06 Long Distance Phone (Time: 14:01) 724 - 836- (blank) $ 15.48 9 -12 -06 Lodge -Next Video /Movie $ 11.61 9 -12 -06 Room $165.00 9 -12 -06 Occupancy Tax $ 9.90 9 -12 -06 County Occupancy Tax $ 4.95 TOTAL: $579.51 Regola, 07 -094 Page 20 person) Total: $308.95 a. The fees to attend the additional events were charged to Regola's Authority issued credit card on July 7, 2006. b. Regola's credit card statement reflected payment of the additional fees via Authority check #34795, dated August 14, 2006. 1. Authority check #34795 was approved for issuance by signatures of Hopkin and Pecarchik. 68. Regola and his wife were registered to stay at the Hershey Lodge W. Chocolate Ave. & University Dr., Hershey, PA 17033 while attending the conference. a. Regola checked in on September 10, 2006, and departed on September 13, 2006. 1. The time in which Regola arrived and departed was not indicated on the hotel folio. b. The room rate was $165.00 /night plus taxes. c. Two people were identified in the party. 69. Charges incurred to Regola's room account at the Hershey Lodge included the following: a. Regola's total hotel charge of $579.51 was paid via Regola's Authority issued credit card on June 22, 2006 (advance payment of $179.85) and on September 14, 2006 (remainder of expenses in the amount of $399.66). 1. Regola's advance payment of $179.85 made on June 22, 2006, was paid via Authority check #34795, dated August 14, 2006. Authority check #34795 was approved for issuance via signature by Pecarchik and Hopkin. 2. The remainder of the expenses paid via Regola's credit card on aa. Date Telephone Charge Amount 9 -10 -06 Long Distance Phone (Time: 17:53) [Respondent's home telephone number] $12.87 9 -12 -06 Long Distance Time 14:01 $15.48 Total: $28.35 Date Description Amount $11.61 9 -12 -06 Lodge -Next Video /Movie Regola, 07 -094 Page 21 September 14, 2006, in the amount of $399.66 were paid via Authority check #35133, dated October 18, 2006. aa. Authority check #35133 was approved for issuance via signature by Regola and Hopkin. 70. Payment of Regola's hotel charges included personal telephone calls and a movie as shown below: a. Telephone calls. 1. Telephone number [Respondent's home telephone number] is Regola's home telephone number. b. Movie expenses. d. 71. Regola submitted an expense report to the HTMA claiming additional expenses of $196.36 in relation to attending the 2006 PMAA Annual Conference as shown below: Date Description of Expense Expense Amount 9 -10 -06 *215 miles from Greensburg to Hershey $ 95.68 9 -10 -06 Tip $ 5.00 9 -13 -06 215 miles from Hershey to Greensburg $ 95.68 $196.36 * Mileage was calculated at a rate of $0.44 /mile a. Regola signed his report on or about September 20, 2006, in the "signature of employee" section. b. Regola's expense report was approved by Ranella even though receipts for the expenses listed were not provided. c. Authority staff members requested that Regola provide receipts to document expenses he listed on his reports for reimbursement on numerous occasions. 1. Regola advised Authority staff that he did not have receipts and authorized the reimbursement without all receipts. Regola was issued Authority check #35068, dated October 5, 2006. 1 Authority check #35068 was approved for issuance via signature by Regola and Hopkin. Description of Expense Nature of Expense Amount Regola's wife's registration for the lunch & Kitchen Kettle Village Entertainment $40.00 Regola's wife's registration for the Monday Night Football Entertainment $49.00 Regola's wife's registration for the Hershey Trolley Tour Entertainment $9.95 Regola's wife's registration for the Banquet and After Party Entertainment $49.00 Regola's wife's registration for the PMAA Family Breakfast Entertainment $19.00 Telephone calls made on 9 -10 -06 Personal $28.35 Movie Rental on 9 -12 -06 Entertainment $11.61 Total: $206.91 Regola, 07 -094 Page 22 72. The HTMA paid personal expenses of $206.91 for Regola's and his wife's attendance at the 2006 PMAA conference. 73. The PMAA holds Region 9 dinner meetings in or around April and /or November of each year. a. Regola regularly attended the dinner meetings from 2003 through 2005. b. Regola's wife attended the dinner meetings with Regola from 2003 through 2005. c. The majority of Regola's expenses and his wife's expenses to attend the dinner meetings were paid for by the HTMA. d. Regola regularly incurred hotel expenses for Seven Springs dinner gatherings even though such expenses were never approved by the HTMA Board and the nature of the hotel expenses was unrelated to any official function. 74. The 2003 Region 9 Spring Dinner meeting was held in Champion, PA on Saturday, April 12, 2003. a. The dinner meeting location was at Seven Springs Resort located at 777 Waterwheel Drive, Champion, PA 15622. 75. The agenda for the 2003 Region 9 Spring Dinner meeting included the following. a. Cost of the dinner was $37.00 per meal. b. The HTMA paid meal costs of $74.00 for Regola and his wife to attend the dinner. 1. The fee was paid by Authority check #29018 dated March 26, 2003. 2. Authority check #29018 was signed by Hopkin and Melenia. 76. Regola and his wife were registered to stay at the Seven Springs hotel located at the resort even though the event was held less than one hour from his home. a. Regola checked in on April 12, 2003, and departed on April 13, 2003. Date Description Amount 4 -12 -03 Room Rental $85.00 4 -12 -03 State Hotel Occupancy Tax $ 5.10 4 -12 -03 County Hotel Occupancy Tax $ 2.55 4 -13 -03 Dining Room $47.44 Total: $140.09 Regola, 07 -094 Page 23 b. The room rate was $85.00 /night plus taxes. 77. Charges incurred to Regola's room account at the Seven Springs hotel included the following: Date a. Regola paid the total hotel charge of $140.09 via his personal credit card on April 13, 2003. 78. Seven Springs Resort receipt records reflect that the $47.44 dining room charge Regola incurred on April 13, 2003, was for adult breakfast buffets. a. The receipt indicated that the five individuals were served between 8:53 a.m. and 9:37 a.m. b. Board Member Brian Melenia and his wife had breakfast with Regola. c. Regola signed the receipt and directed that the charges for him and Melenia be billed to his room. 79. Regola submitted an expense report to the HTMA claiming total expenses of $169.15 in relation to attending the 2003 PMAA dinner meeting as shown below: Description of Expense Expense Amount 4 -12 -03 Hotel $92.65 4 -12 -03 *38 miles from Greensburg to Seven Springs $13.68 4 -12 -03 Turnpike $ 0.85 4 -13 -03 Meal $47.44 4 -13 -03 *38 miles from Seven Springs to Greensburg $13.68 4 -13 -03 Turnpike $ 0.85 Total: $169.15 * Mileage was calculated at a rate of $0.36 /mile. a. Regola signed his report on or about April 15, 2003, in the "signature of employee" section. b. Regola's reimbursements included charges incurred on behalf of Board Member Brian Melenia and his wife of $23.72. c. Regola was issued Authority check #29628 dated July 30, 2003, as reimbursement for expenses, including those for which Regola did not produce receipts. 1. Authority check #29628 was approved for issuance via signature by Hopkin and Fisher. 80. Regola was reimbursed by the HTMA for personal expenses related to the 2003 Description Description of Expense CP Double Nature of Expense Amount Matterhorn Lounge Wife's registration fee Personal $37.00 Breakfast buffets Personal $23.72 Room & Tax - $92.65 Total: $153.37 Date Description Amount CP Double $150.00 4 -17 -04 Matterhorn Lounge $ 34.50 Total: $184.50 Regola, 07 -094 Page 24 Region 9 Spring Dinner totaling $153.37. 81. The 2004 Region 9 Spring Dinner meeting was held at Seven Springs Resort, Champion, PA on Saturday, April 17, 2004. a. The dinner meeting location was at Seven Springs Resort located at 777 Waterwheel Drive, Champion, PA 15622. b. The HTMA paid a fee of $70.00 for Regola and his wife to attend the dinner. c. The fee paid by Authority check #31826 dated November 3, 2004, included the $35.00 cost of Regola's spouse's dinner. 1. Authority check #31826 was signed by Hopkin and Pecarchik. 82. On March 31, 2004, Ranella sent a fax to Seven Springs indicating that his (Ranella's) Authority issued credit card could be used for "any and all incidentals" related to Regola's stay. a. Ranella was directed to send the fax so that expenses incurred in relation to the PMAA event were paid for by the Authority. b. This occurred prior to HTMA Board Members receiving credit cards. 83. Regola and his wife were registered to stay at the Seven Springs hotel located at the resort. a. Regola checked in on April 17, 2004, and departed on April 18, 2004. b. The room rate was $150.00 /night plus taxes. 84. Charges incurred to Regola's room account at the Seven Springs hotel included the room costs of $150.00 and a $34.50 charge at the Matterhorn Lounge. a. Regola's hotel charge of $184.50 was paid via Ranella's Authority issued credit card on two separate occasions. 1. On March 31, 2004, an advance payment of $150.00 was made. 2. The remainder of the charges ($34.50) were paid on April 18, 2004. b. The initial payment on March 31, 2004, in the amount of $150.00 as well as the payment made on April 18, 2004, in the amount of $34.50 were paid by Authority check #31037, dated May 10, 2004. Description of Charge Amount Amount LIQ $3.50 BEER $3.00 LIQ $3.25 BEER $3.00 LIQ $3.25 BEER $3.00 Undistinguishable (drink) $3.25 Undistinguishable (drink) $4.00 LIQ $3.25 Tip $5.00 TOTAL: $34.50 Description of Expense Nature of Expense Amount Wife's registration fee Personal $ 35.00 Alcoholic Drinks Personal $ 34.50 Room Personal $150.00 Total: $219.50 Regola, 07 -094 Page 25 1. Authority check #31037 was approved for issuance via signature by Regola and Hopkin. 85. The $34.50 Matterhorn Lounge charge Regola incurred on April 17, 2004, was primarily for alcoholic beverages for himself and Board Members Brian Melenia and Matt Pecarchik. a. The receipt details Regola's purchase in the amount of $34.50 for the following: b. The receipt indicated that Regola kept his bar tab open from 12:59 a.m. to 1:51 a.m. c. Regola signed the receipt and directed that the charge be billed to his room. 86. Regola did not submit an expense report for 2004 Region 9 Spring Dinner meeting. 87. Personal expenses for Regola totaling $219.50 were charged to the HTMA credit card for his attendance at the 2004 Region 9 Spring Dinner meeting. 88. The 2004 Region 9 Fall Dinner meeting was held in Penn Hills, PA on Thursday, November 11, 2004. a. The dinner meeting location was at Tivoli Restaurant located at Rodi Road, Penn Hills, PA. b. The HTMA paid a fee of $70.00 for Regola and his wife to attend the dinner. 1. The cost for each meal was $35.00. c. The fee was paid by Authority check #31826 dated November 3, 2004. Description of Expense Nature of Expense Amount Refer to Finding(s) Wife's registration fee Personal $ 40.00 201 [sic] Room Personal $154.00 Total: $194.00 Regola, 07 -094 Page 26 1. Authority check #31826 was signed by Hopkin and board member Matt Pecarchik. 89. The 2005 Region 9 Spring Dinner meeting was held in Champion, PA on Saturday, April 2, 2005. a. The dinner meeting location was at Seven Springs Resort located at 777 Waterwheel Drive, Champion, PA 15622. b. The HTMA pre -paid a fee of $80.00 to cover meal costs for Regola and his wife. 1. The fee was paid by Authority check #32494 dated March 23, 2005. 2. Authority check #32494 was signed by Hopkin and prior Manager Michael Sherrieb. 90. Regola and his wife were registered to stay at the Seven Springs hotel located at the resort. a. Regola checked in on April 2, 2005, and departed on April 3, 2005. b. The room rate was $154.00 /night. 1. No additional expenses were assessed for the second person in the room. c. Regola's hotel charge of $154.00 was paid via Ranella's Authority issued credit card on March 16, 2005. d. The Authority issued check #32577 in the amount of $1,967.31 dated April 11, 2005, to pay for the hotel expense. 1. Authority issued check #32577 was approved for issuance via signature by Hopkin and Pecarchik. 91. The HTMA paid personal expenses of $194.00 for Regola's attendance at the 2005 Region 9 Spring Dinner. 92. The 2005 Region 9 Fall Dinner Meeting was held in Pittsburgh, PA on Saturday, November 5, 2005. a. The dinner meeting location was at the Edgewood Country Club located at 100 Churchill Road, Pittsburgh, PA 15235. b. The HTMA paid meal costs of $80.00 for Regola and his wife to attend the dinner, which included a $40.00 meal cost for Regola's wife. c. The fee was paid by Authority check #33493 dated November 2, 2005. Regola, 07 -094 Page 27 1. Authority check #33493 was approved for issuance via signature by Hopkin and Matt Pecarchik. 93. The PMAA holds Management Workshop Meetings in or around April each year. a. Regola attended the Management Workshop Meetings held in 2005 and 2006. b. The 2005 and 2006 workshops were held at Nemacolin Woodlands Resort, Farmington, Pennsylvania. c. Regola's wife attended both the 2005 and 2006 Management Workshop Meetings with Regola. d. Registration fees to attend the events in 2005 and 2006 were $85.00 for a PMAA Member and $100.00 for a non - member. e. Regola's expenses to attend the Management Workshop Meetings in 2005 and 2006 were paid for by the HTMA. 1 Regola's wife's expenses to attend the Management Workshop meeting in 2006 were paid for by the Authority. f. Regola used HTMA credit cards to incur hotel and entertainment expenses on behalf of himself, his spouse, and other Board Members and their guests. g. Workshop sessions would begin at 9:00 a.m. and concluded by 3:15 p.m. with a one hour break for lunch. 94. The 2005 PMAA Spring Management Workshop was held in Farmington, PA on April 5, 2005. a. The HTMA paid a registration fee of $85.00 for Regola to attend the workshop at Regola's direction. 1. The registration fee was charged to Ranella's Authority issued credit card on February 21, 2005. b. Ranella's credit card statement documenting the registration fee was paid via Authority check #32456 dated March 14, 2005. 1. Authority check #32456 was approved for issuance via signature by Hopkin and Pecarchik. c. Regola's wife was not registered to attend the event. 95. Regola and his wife were registered to stay at the Nemacolin Woodlands Resort Hotel on April 4, 2005. a. The meeting site was (36) miles from Regola's home and the event began at approximately 9:00 a.m. on April 4, 2005 *. *[sic]. [Cf., the date at Fact Findings 94, 98.] b. The room was reserved using HTMA Manager Regis Randella's credit card. c. Regola checked in on April 4, 2005, and departed on April 5, 2005. Date Description of Charge Amount $189.00 4 -4 -05 Room Charge in 1501 4 -4 -05 Tax 2 $ 11.34 4 -4 -05 Golden Trout Restaurant $469.63 4 -4 -05 Tavern Behind the Green $ 62.00 4 -5 -05 Servi Bar $ 8.75 4 -5 -05 Servi Bar $ 25.00 Total: $765.72 Charge Amount $18.00 2 GL Lincourt Char Merlot 1 Open Wine $10.00 Regola, 07 -094 Page 28 d. The room rate was $189 /night plus taxes. e. Two people were identified in the party. 96. Charges incurred to Regola's room account at the Nemacolin hotel included the following: a. Regola's hotel charges of $765.72 were paid using both Ranella's Authority issued credit card and Regola's Authority issued credit card. 1. On January 13, 2005, an advance payment of $220.34 was made via Ranella's Authority issued credit card used to reserve Regola's room. aa. Ranella's credit card statement reflecting the advance payment was paid via Authority check #32370, dated February 23, 2005. bb. Authority check #32370 issued to pay Ranella's credit card, was signed by Regola and Hopkin. 2. The remainder of the expenses ($565.38) were charged to Regola's Authority issued credit card on April 5, 2005. aa. Regola's credit card statement reflecting the additional [charges] made on April 5, 2005, was paid via Authority check #32746, dated May 18, 2005. bb. Authority check #32746 issued to pay Regola's credit card, was signed by Regola and Hopkin. 97. On the evening of April 4, 2005, Regola, along with Board Members Brian Melenia, Kathy Hopkin, and Matt Pecarchik, had dinner at the Golden Trout Restaurant. a. Accompanying them were the spouses of Regola, Hopkin, and Melenia and the girlfriend of Pecarchik. 98. A Nemacolin Woodlands Resort receipt details a $469.63 charge at the Golden Trout Restaurant between 8:24 p.m. and 10:30 p.m. on April 4, 2005, the night prior to the workshop. a. The receipt documents the following charges: 2 Bloody Marys $16.00 2 Fountain Drinks $ 4.00 2 MD Crab Bisque $20.00 2 House Salads $16.00 1 Caesar Salad $ 9.00 1 Lobster Alfredo $34.00 1 12oz NY Strip $34.00 1 5oz Lobster Tail $18.00 2 Filet of Beef $70.00 1 Lamb Chop $39.00 1 Lobster Tail $38.00 1 Open Wine $10.00 2 Choc Mousse $20.00 2 Creme Brulee $20.00 1 Choc Pudding $10.00 1 Coffee $ 3.50 Tax $20.13 Gratuity $60.00 Total: $469.63 Regola, 07 -094 Page 29 a. The merge meals cost was $59.38 based on total meal cost of $415.63 ($469.63 - $54.00 alcohol). 99. The Golden Trout Restaurant bill of $469.63 included the following: a. Alcoholic beverages $ 54.00 b. Food, tax, tip $415.63 $469.63 c. The average cost per meal including tax and tip was $51.95. 100. Regola used his Authority issued credit card to pay for the entire dinner bill. a. Regola signed the receipt and directed that the charge be billed to his hotel room. b. The dinner expenses were unrelated to any workshop function and were for the personal benefit of the Board Members and their guests. 101. A Nemacolin Woodlands Resort receipt confirms that a $62.00 charge incurred at the Tavern Behind the Green on April 4, 2005, was billed to Regola's room. a. Board Director Brian Melenia signed the receipt. b. Melenia directed that the charge be billed to his room. c. Charges Melenia incurred were mistakenly billed to Regola's room. 1. Although the charges were incurred by Melenia, Regola paid for the charges via his Authority issued credit card. d. The expenses incurred at the Tavern Behind the Green were for alcohol purchases which included Melenia, Regola, Hopkin, and Pecarchik and their spouses and /or girlfriend. Date Description of Charge Amount 4 -10 -06 Room Charge in 1530 $245.00 4 -10 -06 Tax 2 $ 14.70 4 -11 -06 Servi Bar $ 25.00 Total: $284.70 Regola, 07 -094 Page 30 102. Personal expenses for Regola totaling $337.99 were paid by the HTMA in relation to his attending the 2005 PMAA Workshop as noted below: Room $200.34 Mini -bar $ 33.75 Meals $103.90 103. The 2006 PMAA Spring Management Workshop was held at Nemacolin Woodlands Resort, Farmington, PA on April 11, 2006. a. Regola's registration fee of $85.00 as well as a registration fee for his wife of $100.00 was paid for by the HTMA. 1. The registration fees were charged to Ranella's Authority issued credit card on April 5, 2006. b. Ranella's credit card statement reflecting the registration fees was paid via Authority check #34432, dated May 17, 2006. 1. Authority check #34432 was approved for issuance via signature by Regola and Hopkin. 104. Regola and his wife were registered to stay at the Nemacolin Woodlands Resort Hotel. a. Regola checked into the hotel on April 10, 2006, and checked out on April 11, 2006. b. The room rate was $245 /night plus taxes. c. Two people were identified in the party. d. The HTMA Board never authorized this expense. 105. Charges incurred to Regola's room account at the Nemacolin Woodlands Resort included the following: a. Regola's hotel charges were paid via Hopkin's Authority issued credit card and Regola's Authority issued credit card. 1. On February 25, 2006, an advance payment of $259.70 was charged to Hopkin's Authority issued credit card. aa. Hopkin's credit card statement reflecting the advance payment of 259.70 was paid via Authority check #34191 dated March 22, 2006. 1. Regola's hotel arrangements were organized and reserved by Hopkin with Hopkin's Authority issued credit card. Quantity Expense Cost Total 4 Four Course Meal $72.00 each $288.00 4 Five Course Meal $94.00 each $376.00 1 Espresso $4.00 $ 4.00 1 Small Press French Coffee $6.50 $ 6.50 1 PS Riesling Reserve Sonoma $60.00 $ 60.00 1 Open Wine $50.00 $ 50.00 Gratuity $125.00 Tax $ 40.47 Total: $949.97 Transaction Date Transaction Description Amount 4 -10 -06 NWL Lautrec Rest Farmington, PA $949.97 4 -11 -06 NWL Tavern & Pool Farmington, PA $121.58 Total: $1,071.55 Regola, 07 -094 Page 31 bb. Authority check #34191 was signed by Regola and Hopkin. 2. The remainder of the hotel expenses ($25.00) for Regola's use of the room mini -bar were charged to Regola's Authority issued credit card on April 11, 2006. aa. Regola's credit card statement reflecting the payment of $25.00 was paid via Authority check #34432 dated May 17, 2006. bb. Authority check #34432 was signed by Regola and Hopkin. b. Regola did not submit a hotel folio or receipts to the Authority to document expenses incurred at the resort. 106. Regola's Authority credit card statement covering the time period April 2006 documents two additional expenses that occurred at Nemacolin Woodlands Resorts during the Spring 2006 PMAA Spring Workshop: a. Regola did not provide receipts to document the expenses incurred on April 10, 2006, and April 11, 2006. b. Check no. 34432 dated May 17, 2006, signed by Regola was issued to pay these expenses. 107. The $949.97 charge to Regola's credit card at the Lautrec Restaurant between 8:34 p.m. and 11:28 p.m. on April 10, 2006, was for dinners for Board Members Regola, Hopkin, Pecarchik, and Melenia and their spouses and /or girlfriend. a. The dinner expenses were incurred the day prior to any official workshop activity. 1. The workshop began at 9:00 a.m. on April 11, 2006. 2. As Chairman, Regola authorized this expense. b. Expenses incurred at the Lautrec Restaurant included the following: 108. The Lautrec Restaurant charges to Regola's credit card included the following: Charge Amount 3 Fountain Drinks $ 6.00 1 Logo $ 2.50 2 Coors Light DRFT SPEC $ 8.00 1 Open Food $12.00 2 CP Clam Chowder $12.00 1 Caesar w /Steak $17.00 1 STK Sandwich Onion Rings $15.00 1 Burger, Cheddar, Fruit $11.00 1 9" 3- Cheese $ 8.00 1 9" 3- Cheese $ 8.00 Mushrooms $ 0.75 Pepperoni $ 0.75 Tax $ 5.58 Tip $15.00 Total:$121.58 Regola, 07 -094 Page 32 a. Alcohol Food, tax, tip $100.00 $ 839.97 $949.97 b. The average cost per meal, less alcohol, was $105.00. 109. The Nemacolin Woodlands Resort receipt dated April 11, 2006, reflected $121.58 in subsistence at the Tavern & Pool between 12:37 p.m. and 2:45 p.m. on April 11, 2006, during the time frame of the workshop. a. The workshop lunch break was from 12:00 p.m. to 1:00 p.m. and the conference concluded by 3:15 p.m. on April 11, 2006. b. Expenses incurred at the Tavern & Pool that Regola charged to his Authority credit card included the following: c. Regola signed the receipt and directed that the expense be billed to his Authority issued credit card. d. The charges included meals for Regola, Melenia, and his wife and Hopkin and her husband. e. The average cost per meal, less the $8.00 beer charge, was $24.32 per person. 110. Regola submitted an expense report to the HTMA claiming additional expenses of $71.63 in relation to attending the PMAA 2006 Management Workshop as shown below: Date Description of Expense Expense Amount 4 -10 -06 *60 miles from Greensburg to Nemacolin $26.70 4 -10 -06 Tips $ 7.00 4 -11 -06 *65 miles from Nemacolin to Greensburg $28.93 4 -11 -06 Turnpike Fee $ 1.00 4 -11 -06 Tips $ 8.00 Total: $71.63 *Mileage was calculated at a rate of $0.45 /mile Regola, 07 -094 Page 33 a. Regola signed his report on or about April 15, 2006, in the "signature of employee" section. b. Regola offered no explanation or receipts for the tips listed on the expense report. c. Regola was issued Authority check #34479 dated May 31, 2006, in the amount of $71.63. d. Authority check #34479 was signed by Regola and Hopkin. 111. Regola charged and /or authorized charges to HTMA credit cards personal expenses totaling $736.42 in relation to his attendance at the 2006 PMAA workshop. Room & mini -bar Spouse registration Alcoholic beverages Meals (2) Meals (1) $284.76 $100.00 $118.00 $210.00 $ 23.72 $736.42* *[sic] [There is a minor error in the calculation, which does not affect the outcome of this case.] THE FOLLOWING FINDINGS RELATE TO REGOLA'S EXPENSES IN RELATION TO AWWA CONFERENCES. 112. Regola and other Members of the HTMA Board of Directors have attended annual conferences of the American Water Works Association (AWWA). a. The AWWA is an authoritative resource on safe water, providing knowledge, information and advocacy to improve the quality and supply of water in North America and beyond. b. Regola attended the AWWA Annual Conference held in 2005. 1. Regola did not attend any other AWWA Conferences between 2003 and 2008. 113. The 2005 AWWA Annual Conference was held in San Francisco, California, from June 12, 2005, to June 16, 2005. a. The annual conference was held at the Moscone Center located at 747 Howard Street, San Francisco, CA 94103. 114. Registration fees had to be paid in order to attend the daily activities scheduled or be admitted to the exhibit hall. a. The cost for a municipal official to attend the exhibit hall was $100.00. b. The cost for a guest of a municipal official to attend the exhibit hall was $30.00. c. The HTMA paid registration fees of $100.00 for Regola and $30.00 for his wife to attend the exhibit hall portion of the annual conference. Regola, 07 -094 Page 34 d. The registration fees were charged to Board Member Hopkin's Authority issued credit card on March 19, 2005. 1. Hopkin made the reservation for Regola and other Members to attend the AWWA Conference, and all registration fees were charged to her Authority issued credit card. e. Hopkin's credit card statement reflecting Regola's registration fee was paid via Authority check #32633 dated April 20, 2005. 1. Authority check #32633 was signed by Regola and Pecarchik. 115. The payment of the exhibit hall registration fee permitted Regola and his wife to access the exhibit hall during the annual conference. a. Regola and his wife were not registered to attend any other AWWA scheduled events. 116. Regola's and his wife's air transportation to San Francisco, CA was charged to Hopkin's Authority issued credit card on February 22, 2005. a. The airline ticket costs for Regola and his wife totaled $234.80 [$229.80 (ticket price) + $5.00 (service fee) = $234.80] each. b. Total cost for Regola and his wife to fly to San Francisco, CA was $469.60 ($234.80 x 2 = $469.60). 117. Regola and his wife's airfare costs were paid for via Authority check #32456 dated March 14, 2005. a. Authority check #32456 was approved for issuance via signature by Hopkin and Pecarchik. 118. Regola's wife issued personal check #8584 dated May 9, 2005, to the Authority in the amount of $229.80. a. Regola's wife provided a handwritten note with her check which stated "Enclosed check for $229.80. Airfare for San Francisco. Thank You." b. The check was deposited into the Authority's bank account on May 11, 2005. 119. The airfare travel itinerary for Regola and his wife was as follows: Leave Pgh International Airport Arrive Atlanta Airport Leave Atlanta Airport Arrive San Francisco Airport Leave San Francisco Airport Arrive Atlanta Airport Leave Atlanta Airport Arrive Pgh International Airport 06/11/05 06/11/05 06/11/05 06/11/05 06/15/05 06/15/05 06/15/05 06/15/05 8:05 a.m. 9:47 a.m. 10:35 a.m. 12:33 p.m. 7:00 a.m. 2:35 p.m. 4:11 p.m. 5:49 p.m. 120. Regola's Authority issued credit card statement covering the time period of June 2005 confirms two Wyndham Hotel expenses at the Pittsburgh airport charged to Regola's credit card for hotel stays prior to and after the convention. Date Description of Charge Amount 6 -11 -05 EXT - #3885 1 000 -0000 15:37 $ 1.00 6 -11 -05 Lobby Bar $106.42 6 -11 -05 Guest Room $195.00 6 -11 -05 California Tourism Tax $ 0.09 6 -11 -05 City Occupancy Tax $ 27.30 6 -12 -05 Cafe $ 76.19 6 -12 -05 Lobby Bar $ 44.06 6 -12 -05 Movie $ 14.06 6 -12 -05 Guest Room $195.00 6 -12 -05 California Tourism Tax $ 0.09 6 -12 -05 City Occupancy Tax $ 27.30 6 -13 -05 Cafe $ 87.04 6 -13 -05 EXT - #3885 000 -0000 10:33 $ 1.00 6 -13 -05 EXT- #3885 1 410 -0000 13:12 $ 1.00 6 -13 -05 CITYSCAPE $540.00 6 -13 -05 Guest Room $195.00 6 -13 -05 California Tourism Tax $ 0.09 6 -13 -05 City Occupancy Tax $ 27.30 6 -14 -05 Cafe $ 41.35 6 -14 -05 EXT- #3885 1 000 -00 00 13:49 $ 1.00 6 -14 -05 Lobby Bar $ 53.00 6 -14 -05 Guest Room $195.00 6 -14 -05 California Tourism Tax $ 0.09 Transaction Date Transaction Description Amount Charged 6 -10 -05 Wyndham Pittsburgh, PA Airport $ 72.14 6 -12 -05 Wyndham Pittsburgh, PA Airport $112.86 Total: $185.00 Regola, 07 -094 Page 35 a. The charges incurred are detailed below: 121. Regola resides at [residence address of Regola]. a. Regola's residence is located approximately 54.59 miles from the Pittsburgh International Airport. b. Approximate travel time from Regola's residence to the Pittsburgh International Airport is one hour and ten minutes in non -rush hour traffic. c. Regola stayed at the Wyndham on June 10, 2005, the evening prior to the flight, due to the early departure time on June 11, 2005. 122. Regola and his wife were registered to stay at the Hilton hotel, 333 O'Farrell Street, San Francisco, CA 94102 for the duration of the conference. a. Regola checked in on June 11, 2005, and departed on June 15, 2005. b. The room rate was $195.00 /night plus taxes. c. Two people were identified in the party. 123. Charges incurred to Regola's room account at the Hilton included the following: Date Description of Charge Amount 6 -11 -05 Lobby Bar $106.42 6 -12 -05 Cafe $ 76.19 6 -12 -05 Lobby Bar $ 44.06 6 -13 -05 Cafe $ 87.04 6 -13 -05 CITYSCAPE $540.00 6 -14 -05 Cafe $ 41.35 6 -14 -05 Lobby Bar $ 53.00 Total: $948.06 6 -14 -05 City Occupancy Tax $ 27.30 Total: $1,855.68 Regola, 07 -094 Page 36 a. Regola's hotel charge of $1,855.68 was paid via Regola's Authority issued credit card. 1. Regola's credit card statement reflecting the hotel charge was paid via Authority check #32976 dated July 13, 2005. 2. Authority check #32976 was signed by Regola and Hopkin authorizing payment. b. Regola did not submit a hotel folio or receipts for expenses incurred at the Hilton to the Authority. 124. Regola's charges to his room account included the hotel bar and restaurants as follows: a. Hotel lobby bar charges on June 11, 2005, June 12, 2005, and June 14, 2005, included charges of drinks for Board Members Regola, Melenia, Hopkin, Pecarchik, and spouses and /or girlfriend. 1. The bar charges totaled $203.48 b. Cityscape is a hotel restaurant where dinner charges totaled $540.00. 1. Board members Regola, Pecarchik, Melenia, and Hopkin, along with spouses and guest participated in the dinner. 2. The average cost per meal was $67.50. 125. On June 13, 2005, Regola and his wife along with Board members Hopkin and Melenia and their spouses took a tour booked through PRA Destinations. 1. The tour was titled The California Wine Collection: The Mediterranean Comes to Caveneos" with box lunch. 2. This was a tour of the Sonoma Valley. b. The tour was charged to Hopkin's HTMA credit card at a cost of $81.00 per ticket per person including Regola and his wife. c. Upon return from the tour, Regola incurred a $540.00 restaurant expense at City Scape, the hotel restaurant. 126. Regola submitted an expense report to the HTMA claiming additional expenses of Regola, 07 -094 Page 37 $443.69 in relation to attending the 2005 AWWA Annual Convention as shown below: Date 6 -10 -05 6 -10 -05 6 -10 -05 6 -11 -05 6 -11 -05 6 -12 -05 6 -13 -05 6 -14 -05 6 -15 -05 6 -15 -05 6 -15 -05 6 -15 -05 6 -15 -05 Description of Expense 61 miles from Greensburg to Pitt Airport Turnpike Taxi Breakfast Taxi Taxi Taxi Taxi Breakfast Lunch 61 miles from Pitt Airport to Greensburg Turnpike Taxi Expense Amount $ 24.71 $ .75 $ 10.00 $ 6.30 $102.00 $ 35.00 $ 12.00 $120.00 $ 12.65 $ 9.82 $ 24.71 $ .75 $ 85.00 Total: $443.69 a. Regola signed his report on or about June 22, 2005, in the "signature of employee" section. b. Regola's expense report was approved by Ranella even [though] Regola would not submit receipts for the expenses listed. c. Authority staff members requested that Regola provide receipts to document expenses he listed on his reports for reimbursement on numerous occasions. 1. Regola advised Authority staff that he did not have receipts and authorized the reimbursement without all receipts. 127. Regola was issued Authority check #32931 dated June 29, 2005, in the amount of $443.69. a. Authority check #32931 was signed by Regola and Hopkin. 128. Regola charged a restaurant expense at Scoma Restaurant to his Authority issued credit card while in San Francisco, CA. a. Board Member Regola, along with Hopkin, Melenia, and Pecarchik and their spouses /guest attended the dinner. b. Regola charged the $426.94 dinner expense to his Authority issued credit card on June 11, 2005. c. Regola's credit card statement reflect the payment made to Scoma's Restaurant was by Authority check #32976. 1. Authority check #32976 was approved for issuance by signatures of Regola and Hopkin. 129. A Scoma's Restaurant receipt confirms a charge of $426.94 which included $31.50 between 7:10 p.m. and 8:40 p.m. on June 11, 2005. a. The receipt documents the following charges: Description of Expense Amount Registration (Regola's wife) $ 30.00 Hotel (Pittsburgh area) $ 112.86 City Scape (spouse) $ 67.50 Scoma Restaurant (meal, alcohol) $ 87.99 Lobby bar $ 203.48 Total: $501.83 Regola, 07 -094 Page 38 Item Purchased Amount 2 Budweiser @ $4.00 $ 8.00 1 D Miller Light $ 4.00 2 Benzger Cnard @ $7.00 $14.00 1 Daiquiri $ 5.50 4 Bisque Cup @ $4.50 $18.00 1 Petite Filet $29.95 1 Filet & Lobster $63.95 1 Salmon Blk $26.95 1 Halibut $26.95 1 Crab Cake Din $27.95 1 Lobster Newburg $30.95 1 Snapper $22.95 1 Dinner Salad $ 8.95 1 Din Sal Shrimp $11.95 3 Iced Tea @ $2.25 $ 6.75 1 Cola $ 2.25 1 Lemon Tart $ 6.75 2 Cream Caramel @ $6.75 $13.50 1 Chop Marc uise $ 6.75 3 Coffee @ 52.25 $ 6.75 Charge Tips $55.00 Tax $29.14 Total: $426.94 b. The meal expense for each individual averaged $56.49 based on $395.44 meal cost ($426.94 - $31.50 alcohol costs). 130. The HTMA incurred $501.83 in personal expenses for Regola and his wife to travel to San Francisco during the time frame June 10, 2005, through June 15, 2005, when attending the AWWA Conference. a. Personal expenses paid by the HTMA included the following: THE FOLLOWING FINDINGS RELATE TO EXPENSES CLAIMED BY REGOLA IN RELATION TO WEFTEC CONFERENCES 131. Regola, as a member of the HTMA, has attended annual conferences hosted by the Water Environment Foundation (WEF). a. Regola has attended two annual conferences since 2004. 1. Regola attended the 2004 conference held in New Orleans, LA and the 2005 conference held in Washington, D.C. b. Regola's wife attended both conferences with Regola. Regola, 07 -094 Page 39 132. The WEF is a not - for - profit technical and educational organization consisting of 32,000 individual members and 80 member associations representing approximately 50,000 water quality professionals. a. WEF holds annual meetings /conferences to provide a forum for knowledge and technical exchange within the water and waste water fields. b. WEFTEC is the Water Environment Federation's Annual Technical Exhibition Conference. c. 1. The conference offers water quality education and training, water quality exhibitions through an expansive show floor for access to advanced technologies in the field and serves as a forum for domestic and international business opportunities. Training and educational seminars provided throughout the conferences are highly technical and directed towards environmental engineers, water and waste water treatment professionals, local, state, and federal regulators, water and waste water utility managers and operators and equipment manufacturers and representatives. 133. The 2004 WEFTEC Conference was held at the Ernest N. Morial Convention Center in New Orleans, LA from October 2, 2004 through October 6, 2004. a. Fees were required to be paid in order for individuals to be able to attend the events held at the convention. b. Badges are provided which authorize entrance to specific seminars. c. Access to seminars is denied without a badge. 134. The HTMA paid a fee of $125.00 for Regola to tour the EXPO Hall for the October 2, 2004, through October 6, 2004, time period. a. The $125.00 fee was charged to Hopkin's Authority issued credit card on September 10, 2004. 1. Fees were charged to Hopkin's Authority credit card as she made Regola's travel arrangements. b. Hopkin's credit card statement documenting the $125.00 fee was paid via Authority check #31728 dated October 20, 2004. 1. Authority check #31728 was authorized for issuance via signature by Regola and Hopkin. 135. Regola's and his wife's air fares to New Orleans, LA were charged to Hopkin's personal American Express Gold Delta SkyMiles credit card on June 1, 2004. a. The fares were charged to Hopkin's card to enable her to obtain personal bonus miles. b. The airline tickets for Regola and his wife cost $221.90 each. c. Regola's and his wife's airfare costs were paid for via Authority check #31090 dated May 27, 2004. Date Description of Charge Amount $229.00 10 -2 -04 Room 10 -2 -04 Room Tax $ 29.77 10 -2 -04 Occupancy Tax $ 3.00 10 -2 -04 724 - 838 -7177 (17:21) $ 20.75 10 -2 -04 724 - 836 -0246 (17:28) $ 12.35 10 -2 -04 Club Lounge $ 2.00 10 -3 -04 Room $229.00 10 -3 -04 Room Tax $ 29.77 10 -3 -04 Occupancy Tax $ 3.00 10 -3 -04 Roux Bistro $ 44.40 10 -3 -04 724 - 836 -2426 $ 12.35 10 -3 -04 Roux Bistro $ 58.29 10 -4 -04 Room $229.00 10 -4 -04 Room Tax $ 29.77 10 -4 -04 Occupancy Tax $ 3.00 10 -4 -04 Club Lounge $ 2.00 10 -4 -04 [Respondent's home telephone number] (13:51) $ 22.85 10 -5 -04 Room $229.00 10 -5 -04 Room Tax $ 29.77 10 -5 -04 Occupancy Tax $ 3.00 10 -5 -04 Roux Bistro $ 60.45 10 -5 -04 [Respondent's home telephone number] (13:54) $ 27.05 10 -6 -04 Club Lounge $ 3.00 Total: 1,312.57 Regola, 07 -094 Page 40 1. Authority check #31090 was approved by Regola and Hopkin. 136. Regola's wife issued personal check #7674 dated June 21, 2004, to the Authority in the amount of $221.90. a. The memo section of the check stated "airfare New Orleans." the Sheraton Hotel, 500 Canal 137. Regola and his wife were registered to stay at Street, New Orleans, LA 70130. a. Regola checked in on October 2, 2004, October 6, 2004, at 9:53 a.m. b. The room rate was $229.00 /night plus taxes. c. Two people were identified in the party. 138. Charges incurred to Regola's room account at the Sheraton included the following: at 1:25 p.m. and departed on a. Regola's hotel charge of $1,312.57 was paid via Regola's Authority issued credit card. 1. Regola's credit card statement reflecting the hotel charge was paid via Authority check #31874 dated November 17, 2004. 2. Authority check #31874 was signed by Regola and Pecarchik. Date Telephone Charge Amount 10 -2 -04 724- 838 -7177 (17:21) $20.75 10 -2 -04 724 - 836 -0246 (17:28) $12.35 10 -3 -04 724 - 836 -2426 (17:28) $12.35 10 -4 -04 [Respondent's home telephone number] (13:51) $22.85 10 -5 -04 [Respondent's home telephone number] (13:54) $27.05 Total: $95.35 Regola, 07 -094 Page 41 b. Regola did not submit a hotel folio or receipts to document expenses incurred at the Sheraton Hotel. 139. Meal expenses at the Roux Bistro, a hotel restaurant, were incurred by Regola as follows: a. 10/03/04 9:15 a. m. $ 44.40 2 persons b. 10/03/04 2:13 p.m. $ 58.29 2 persons c. 10/05/04 1:11 p.m. $ 60.45 3 persons 1. Regola charged Board Member Brian Melenia's meal to his room account. d. The average cost per meal was: a. 10 -2 -04 10 -2 -04 10 -2 -04 10 -2 -04 10 -2 -04 10 -3 -04 10 -4 -04 10 -4 -04 1. 10/03/04 2. 10/03/04 3. 10/05/04 $22.20 $29.15 $20.15 e. Average total cost of meals for Regola's wife was $71.50. 140. Payment of Regola's hotel charges included personal telephone calls placed from Regola's room at the Sheraton. Regola confirmed that [Respondent's home telephone number] is his home telephone number and that the other numbers dialed were related to him contacting either his son, daughter, or were related to his personal business (724- 838 -7177, 724 - 836 -0246, 724 - 836- 2426). 141. Regola submitted an expense report to the HTMA claiming additional expenses of $286.52 in relation to his attendance at the 2004 WEFTEC Convention Expo Hall: Date Description of Expense 61 miles from Greensburg to Pitt Airport 61 miles from Pitt Airport to Greensburg Turnpike Taxi Parking Taxi Lunch Dinner Expense Amount $22.88 $22.88 $ 1.50 $79.00 $ 8.00 $22.00 $10.00 $30.00 Regola, 07 -094 Page 42 10 -4 -04 Taxi $36.00 10 -5 -04 61 miles from Greensburg to Pitt Airport $22.88 10 -5 -04 61 miles from Pitt Airport to Greensburg $22.88 10 -5 -04 Turnpike $ 1.50 10 -5 -04 Parking $ 7.00 Total: 286.52 a. Regola signed his report on or about December 1, 2004, in the "signature of employee" section. b. Regola was issued Authority [check] #32000 dated December 13, 2004, in the amount of $286.52. 1. Authority check #32000 was approved for issuance via signature by Hopkin and Pecarchik. c. Regola's expense report was approved by Ranella even though Regola did not provide receipts for the expenses listed. d. Regola advised Authority staff that he did not have receipts and authorized the reimbursement without expense documentation. 142. Regola charged restaurant expenses for himself, his wife, and Board Members Hopkin and Melenia and their spouses to his Authority issued credit card while in New Orleans, LA. a. The subsistence expense was incurred at Chef Duke's Cafe Giovanni located at 117 Rue Decatur, New Orleans, LA 70130. b. Regola charged the $148.00 expense at Chef Duke's Cafe Giovanni to his Authority credit card on October 5, 2004. 1. Regola's credit card statement reflecting the payment made to Chef Duke's Cafe Giovanni was paid via Authority check #31874. 2. Authority check #31874 was approved by Regola and Pecarchik. c. The average cost per meal was $24.67. 143. The HTMA paid personal expenses totaling $191.49 for Regola's attendance at the 2004 WEFTEC event. a. Spouse meals $ 96.17 b. Personal telephone $ 95.32 Total $191.49 144. The 2005 WEFTEC Conference was held at the Washington Convention Center from October 29, 2005, through November 1, 2005. a. The HTMA paid a fee of $145.00 for Regola to access the EXPO Hall. b. The EXPO Hall contains vendor displays and technology advancements. c. The $145.00 fee was charged to Ranella's Authority issued credit card on October 5, 2005. Date Description, of Charge Amount 10 -29 -05 Parking $ 28.00 10 -29 -05 Room $389.00 10 -29 -05 Room Tax $ 56.41 10 -30 -05 Local Tax $ 1.00 10 -30 -05 Local Tax $ 1.00 10 -30 -05 Parking $ 28.00 10 -30 -05 Room $439.00 10 -30 -05 Room Tax $ 63.66 10 -31 -05 Avenue $ 71.38 10 -31 -05 Avenue $ 36.90 10 -31 -05 Parking $ 28.00 10 -31 -05 Room $439.00 10 -31 -05 Room Tax $ 63.66 11 -1 -05 Avenue $ 38.00 11 -1 -05 1331 $ 79.95 11 -1 -05 Parking $ 28.00 11 -1 -05 Room $439.00 11 -1 -05 Room Tax $ 63.66 Total: $2,293.62 Regola, 07 -094 Page 43 d. Ranella's credit card statement documenting the $145.00 fee was paid via Authority check #33572 dated November 16, 2005. 1. Authority check #33572 was approved by Regola and Hopkin. 145. Regola and his wife were registered to stay at the Marriott hotel located at 1331 Pennsylvania Avenue, Washington, DC 20004. a. Regola checked in on October 29, 2005, and departed on November 2, 2005. 1. Regola's hotel folio did not detail specific arrival or departure times. b. The room rate was $439.00 /night plus taxes. c. Two people were identified in the party. 1. Additional expenses were not assessed for an additional person in the room. 146. Charges incurred to Regola's room account at the Marriott included the following: a Regola's hotel charge of $2,293.62 was paid via Regola's Authority issued credit card 1. Regola's credit card statement reflecting the hotel charge was paid via Authority check #33772 dated December 21, 2005. 2. Authority check #33772 was approved for issuance via signature by Regola and Pecarchik. 147. Regola did not submit an expense report to the HTMA claiming expenses in relation to attending the 2005 WEFTEC Convention. Regola, 07 -094 Page 44 148. Regola charged a restaurant expense to his Authority issued credit card while in Washington, DC. a. The expense was incurred at Ristorante i Ricchi located at 1220 19th Street N.W., Washington, DC 20036. b. Regola charged the $456.00 expense at Ristorante i Ricchi to his Authority credit card on October 31, 2005. c. Regola's credit card statement reflecting the payment made to Ristorante i Ricchi was paid via Authority check #33772. 1. Authority check #33772 was signed by Regola and Pecarchik. 149. The restaurant expense at Restorante 1 Ricchi was for dinners for Board Members Regola, Melenia, and Hopkin, and their spouses. a. The average cost per meal was $76.00 for each person including spouses. THE FOLLOWING FINDINGS RELATE TO REGOLA CHARGING PERSONAL EXPENSES TO HIS AUTHORITY ISSUED CREDIT CARD THAT DO NOT PERTAIN TO REGOLA ATTENDING FUNCTIONS CONSIDERED AUTHORITY BUSINESS. 150. On March 29, 2006, Regola incurred a $22.97 expense at Mr. P's Restaurant located at 915 East Pittsburgh Street, Greensburg, PA 15601. a. The $22.97 expense was charged to Regola's Authority issued credit card on March 29, 2006. b. The expense was incurred while meeting with legal counsel for the HTMA regarding a pending lawsuit while Regola was a subpoenaed witness. c. Regola's credit card statement reflecting the $22.97 expense was paid for via Authority check #34432 dated May 17, 2006. 1. Authority check #34432 was authorized for issuance by signatures of Regola and Hopkin. 151. On March 20, 2006, Regola was not scheduled to attend any Authority related business that would require the expense to be paid by the Authority. a. Regola did not reimburse the Authority for the personal expense paid for by the HTMA. 152. On April 5, 2006, Regola incurred a $27.23 expense at Kings Family Restaurant located at RR 17, Box 3, Greensburg, PA 15601. a. The $27.97 expense was charged to Regola's Authority issued credit card on April 5, 2006. b. The expense was incurred during an all day meeting at the HTMA which included lunch with the HTMA Manager. c. Regola's credit card statement reflecting the $27.23 expense was paid for via Authority check #34432 dated May 17, 2006. 1. Authority check #34432 was authorized for issuance by signatures of Meeting Date Checks Approved Vote 9 -9 -03 29686 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 10 -14 -03 29944 Motion by Springer, seconded by Hopkin, motion passed 4 -0 (Regola in attendance) 12 -9 -03 30226 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 8 -9 -04 31391 Motion by Hopkin, seconded by Pecarchik, motion passed 5 -0 Description of Expense Nature of Expense Amount Refer to Findings) Mr. P's Restaurant Personal $22.97 313, 314 Kings Family Restaurant Personal $27.23 315, 316 Parkwood Restaurant Personal $45.28 317, 318 [sic] Total: $95.48 Regola, 07 -094 Page 45 Regola and Hopkin. 153. On April 5, 2006, Regola was not scheduled to attend any Authority related business that would require the expense to be paid by the Authority. a. Regola did not reimburse the Authority for the personal expense paid for by the HTMA. 154. On October 26, 2006, Regola incurred a $45.28 expense at Parkwood Restaurant located at 1002 Cribbs Street, Greensburg, PA 15601. a. The $45.28 expense was charged to Regola's Authority issued credit card on October 26, 2006. b. The lunch expense was incurred while meeting with another HTMA Board Member and legal counsel concerning litigation involving the HTMA. c. Regola's credit card statement reflecting the $45.28 expense was paid for via Authority check #35247 dated November 15, 2006. 1. Authority check #35247 was authorized for issuance by signatures of Regola and Hopkin. 155. On October 26, 2006, Regola was not scheduled to attend any Authority related business that would require the expense to be paid by the Authority. a. Regola did not reimburse the Authority for the personal expense paid for by the HTMA. 156. Regola incurred personal expenses of $95.48 which were charged to his HTMA credit card. 157. Regola voted to approve all Authority bill lists in which Authority checks were isted regarding payment of his expenses and /or his wife's expenses in relation to attending the PMAA Annual Conferences held from 2003 through 2006, as shown below: Meeting Date Checks Approved Vote 4 -8 -03 29018 Motion by Springer, seconded by Ream, motion passed 5 -0 8 -12 -03 29628 Motion by Melenia, seconded by Hopkin, motion passed 5 -0 5 -10 -04 31037 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 11 -8 -04 31826 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 4 -11 -05 32494, 32577 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 5 -9 -05 32661 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 11 -14 -05 33493 Motion by Melenia, seconded by Ream, motion passed 5 -0 12 -12 -05 33584 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 9 -13 -04 31516 Motion by Melenia, seconded by Hopkin, motion passed 5 -0 12 -13 -04 32000 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 8 -8 -05 32976 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 9 -19 -05 33270 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 11 -14 -05 33430, 33450 Motion by Melenia, seconded by Ream, motion passed 5 -0 8 -14 -06 34795 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 10 -16 -06 35068 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 11 -13 -06 35133 Motion by Hopkin, seconded by Pecarchik, motion passed 5 -0 Meeting Date Checks Approved Vote 3 -14 -05 32370, 32456 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 6 -6 -05 32746 Motion by Melenia, seconded by Hopkin, motion passed 5 -0 5 -9 -05 32661 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 4 -3 -06 34191 Motion by Hopkin, seconded by Melenia, motion Regola, 07 -094 Page 46 158. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the PMAA Dinner Meetings held from 2003 through 2005, as shown below: 159. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the PMAA Workshop Meetings held from 2005 through 2006, as shown below: Meeting Date Checks Approved Vote 6 -14 -04 31090 Motion by Hopkin, seconded by Ream, motion passed 5 -0 11 -8 -04 31728 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 12 -13 -04 31874, 3200 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 12 -12 -05 33572 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 1 -9 -06 33772 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 Meeting Date Checks Approved Vote 3 -14 -05 32456 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 5 -9 -05 32633 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 7 -11 -05 32931 Motion by Hopkin, seconded by Melenia, motion passed 5 -0 8 -8 -05 32976 Motion by Melenia, seconded by Pecarchik, motion passed 5 -0 Meeting Date Checks Approved Vote 6 -12 -06 34432, 34479 Motion by Hopkin, seconded by Ream, motion passed 4 -0 (Regola was in attendance) 12 -11 -06 35247 Motion by Hopkin, seconded by Pecarchik, motion passed 5 -0 Regola, 07 -094 Page 47 160. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the 2005 AWWA Annual Conference, as shown below: 161. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the WEFTEC Conferences in 2004 and 2005, as shown below: 162. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to having personal expenses charged to his Authority credit card paid for by the Authority, as shown below: III. DISCUSSION: As a Member of the Hempfield Township Municipal Authority (hereinafter also referred to as "HTMA" or "Authority "), Westmoreland County, from July 12, 1990, until resigning from the Board on November 3, 2008, Respondent Robert Regola (hereinafter passed 5 -0 6 -12 -06 34432 Motion by Hopkin, seconded by Ream, motion passed 4 -0 (Regola was in attendance) 6 -12 -06 34479 Motion by Hopkin, seconded by Ream, motion passed 4 -0 Regola, 07 -094 Page 47 160. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the 2005 AWWA Annual Conference, as shown below: 161. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the WEFTEC Conferences in 2004 and 2005, as shown below: 162. Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to having personal expenses charged to his Authority credit card paid for by the Authority, as shown below: III. DISCUSSION: As a Member of the Hempfield Township Municipal Authority (hereinafter also referred to as "HTMA" or "Authority "), Westmoreland County, from July 12, 1990, until resigning from the Board on November 3, 2008, Respondent Robert Regola (hereinafter Regola, 07 -094 Page 48 also referred to as "Respondent," "Respondent Regola," and "Regola ") was a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Respondent Regola violated Section 1103(a) of the Ethics Act when he, as a Member of the HTMA, used the authority of his office for private pecuniary gain including but not limited to using the Authority credit cards to incur expenses of a personal nature for himself and /or his spouse for attendance at various conventions and seminars; and when he participated in the process to approve the use of Authority funds to pay his personal legal fees. 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. Robert Regola served as a member of the HTMA from July 12, 1990, until resigning from the Board on November 3, 2008. Regola held the position of Board chairman of the HTMA from January 13, 1998, until January 13, 2008. HTMA checks require the signature of two authorized signatories. All five HTMA Regola, 07 -094 Page 49 Board Members and the General Manager have signature authority over the financial accounts of HTMA. Since at least 1996, HTMA Board Members and selected employees have regularly attended conferences, conventions, seminars, and workshops. Such travel has included events sponsored by the following: Pennsylvania Municipal Authorities Association (PMAA); Water Environment Federation (WEF); and American Water Works Association (AWWA). Prior to August 2007, Board authorization was not required if a Member wanted to attend an event of interest. Registration of an HTMA Board Member for an event was either done by the Board Member or by an HTMA staff member. If registration was completed by a staff member, the staff member was directed by the Board Member as to what events the Board Member wanted to attend and whom the Board Member wanted to bring to the event as a guest. Regola encouraged Board Members to bring their spouses and /or "significant others" to events. Prior to August 13, 2007, the Authority did not have a travel expense policy. HTMA management requested that Members provide receipts for verification of expenses. HTMA Board Members who traveled at Authority expense were to file expense reports with the Authority detailing expenses incurred. Expense reports were to be completed by the individual incurring the expense(s). Expenses paid via an Authority credit card were rarely documented on an expense report. Prior to 2004, only the General Manager and the Finance Director of the HTMA had Authority credit cards. In approximately mid -2004, HTMA Board Members also received Authority credit cards to utilize for travel expenses. Regola's Authority credit card was active from August 2004 until July 13, 2007, when the account was closed. Conference, convention, seminar, and workshop related expenses were included on bill lists for approval at HTMA Board meetings. Board Member expenses were approved by Board vote after expenses were incurred. Regola participated in votes of the Board to approve travel expenses of all Board Members. Authority staff members requested that Regola provide receipts to document expenses incurred on numerous occasions. Regola informed the Authority staff that he did not have receipts and authorized the reimbursement without all receipts. In 2007, Board Member Bob Davidson began reviewing charges the Board Members were making with regard to their attendance at conferences, conventions, seminars, and workshops. The review concluded that certain Board Members, including Regola, were making substantial charges for hotel expenses and subsistence; that Board Members' spouses' expenses were being paid for by the Authority; and that personal expenses (such as alcohol, gas, etc.) were being charged to Authority credit cards. On August 13, 2007, the Board adopted the "Hempfield Township Municipal Authority Conference Expense Policy." The HTMA Conference Expense Policy outlines guidelines including attendees, eligible expenses for reimbursement, itemization of expenses, maximum travel, and reimbursements and ineligible expenses. Since the adoption of the Conference Expense Policy, there has been a sharp decline in Board Members attending conferences, conventions, seminars, and workshops. The parties have stipulated that Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the following events discussed below: (1) the PMAA Annual Conferences held from 2003 through 2006; (2) the PMAA Dinner Meetings held from 2003 through 2005; (3) the PMAA Workshop Meetings held from 2005 through 2006; Regola, 07 -094 Page 50 (4) the 2005 AWWA Annual Conference; and (5) the 2004 and 2005 WEFTEC Conferences. The parties have further stipulated that Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to having additional personal expenses charged to his Authority credit card paid for by the Authority, as detailed in Fact Findings 150 -156 and 162. During his tenure as Chairman, Regola signed numerous HTMA checks including those issued as payment of expenses for him. We shall now review the material facts pertaining to the PMAA events, the 2005 AWWA Conference, and the 2004 and 2005 WEFTEC Annual Conferences attended by Regola. PMAA Events Regola, as an HTMA board member, has regularly attended various events hosted by the PMAA. Regola's wife accompanied Regola to the majority of the events he attended. The majority of Regola's expenses and his wife's expenses to attend PMAA events have been paid by the Authority. a. PMAA Annual Conferences Regola attended the 2003 PMAA Annual Conference held in Hershey, Pennsylvania, from Sunday, August 24, 2003, to Wednesday, August 27, 2003. The HTMA paid a registration fee of $195.00 for Regola to attend the conference, which included breakfasts on August 25, 2003, and August 26, 2003. The HTMA paid personal expenses of $294.25 in relation to Regola's attendance at the 2003 PMAA Annual Conference as detailed in Fact Finding 48. Such personal expenses included admission to Hershey Park for Regola and his wife as well as other entertainment events, spousal meals, a movie rental charge, and a breakfast expense for Regola on August 26, 2003, when his breakfast that day was already included in his conference registration paid by the HTMA. These charges were billed to the General Manager's Authority credit card. Board Member Kathy Hopkin and the General Manager signed the HTMA checks paying the General Manager's Authority credit card statements that included these charges. Regola submitted an expense report to the HTMA claiming additional expenses including mileage and turnpike fees in relation to attending the 2003 PMAA Annual Conference, as detailed at Fact Finding 47. Regola attended the 2004 PMAA Conference held in Pittsburgh, Pennsylvania, from Sunday, August 22, 2004, through Wednesday, August 25, 2004. Registrations for Regola and his wife were made at his direction. The HTMA paid a registration fee of $195.00 for Regola to attend the conference, which included breakfasts on August 23, 2004, and August 24, 2004. The HTMA paid personal expenses totaling $170.03 in relation to Regola's attendance at the 2004 PMAA Annual Conference as detailed in Fact Finding 55. Such personal expenses included entertainment events for Regola and his wife, personal telephone calls totaling $38.03, and a $16.00 lunch expense for Regola on August 23, 2004, when the HTMA had prepaid a $25.00 lunch for him as part of conference registration. All of these charges except for the aforesaid lunch expense were billed to an Authority staff member's Authority credit card. Regola and Hopkin signed the HTMA checks paying the staff member's Authority credit card statements that included these charges. The lunch expense was included in an expense report that Regola submitted to HTMA, together with additional claimed expenses for mileage, turnpike fees and a taxi fare, as detailed at Fact Finding 54. Regola signed his Regola, 07 -094 Page 51 report on or about December 1, 2004, in the "signature of employee" section. Regola was issued Authority check #32000 dated December 13, 2004, to reimburse him for expenses listed on his August 2004 expense report. Authority check #32000 was approved for issuance via signatures of Hopkin and Pecarchik. Regola attended the 2005 PMAA Conference held in Hershey, Pennsylvania, from Sunday, September 11, 2005, through Wednesday, September 13, 2005. The HTMA paid a registration fee of $195.00 for Regola to attend the conference, which included breakfasts on September 12, 2005, and September 13, 2005. The HTMA paid personal expenses of $256.04 in relation to Regola's attendance at the 2005 PMAA Annual Conference, as detailed in Fact Finding 65. Such personal expenses were for entertainment events, spousal meal expenses, a September 11, 2005, lunch expense discussed below, and a breakfast expense for September 12, 2005, when his breakfast that day was already included in his conference registration paid by the HTMA. Some of these charges were billed to an HTMA staff member's Authority credit card. Hopkin and Board Member Pecarchik signed the HTMA check paying the Finance Director's Authority credit card statement that included such charges. Some of the spousal meal expenses were paid via Regola's Authority credit card. Regola and Hopkin signed the HTMA check paying Regola's Authority credit card statement that included such charges. Regola submitted an expense report to HTMA claiming expenses of $290.72 for 3 meals, mileage, and turnpike fees in relation to attending the 2005 PMAA Annual Conference, as detailed at Fact Finding 61. Regola signed his report on or about September 26, 2005, in the "signature of employee" section. Regola's expense report was approved by an HTMA staff member even though receipts for the expenses listed were not provided by Regola. Regola was issued Authority check #33450, dated October 19, 2005, for expenses he claimed for attendance at the 2005 PMAA Conference. Authority check #33450 was approved for issuance via signatures of Regola and Hopkin. One of the expenses Regola claimed on his expense report was a September 11, 2005, lunch expense in the amount of $33.36 for Regola and his wife while traveling to Hershey. As noted above, Regola used his Authority issued credit card to make the $33.36 purchase. The expense charged to the credit card was paid via Authority check #33430, dated October 19, 2005. Authority check #33430 was approved for issuance via signatures of Regola and Hopkin. Regola also claimed this expense on the expense report and was reimbursed for it as part of HTMA check #33450. Thus, Regola claimed duplicate reimbursement for his and his spouse's expenses related to this meal. Regola attended the 2006 PMAA Conference held in Hershey, Pennsylvania, from Sunday, September 10, 2006, through Wednesday, September 13, 2006. The HTMA paid a registration fee of $195.00 for Regola to attend the conference, which included breakfasts on September 11, 2006, and September 12, 2006. The HTMA paid personal expenses of $206.91 in relation to Regola's attendance at the 2006 PMAA Annual Conference, as detailed in Fact Finding 72. Such personal expenses were for entertainment events, spousal meal expenses, personal telephone calls in the amount of $28.35, and a movie rental in the amount of $11.61. All of these charges were billed to Regola's Authority credit card. The HTMA checks paying the Authority credit card statements that included these charges were signed by Board Members Pecarchik and Hopkin, and Regola and Hopkin, respectively. Regola submitted an expense report to HTMA claiming additional expenses of $196.36 for mileage and a tip in relation to attending the 2006 PMAA Annual Conference, as detailed at Fact Finding 71. Regola signed his report on or about September 20, 2006, in the "signature of employee" section. Regola's expense report was approved by an Regola, 07 -094 Page 52 HTMA staff member even though receipts for the expenses listed were not provided by Regola. Regola was issued Authority check #35068, dated October 5, 2006. Authority check #35068 was approved for issuance via signatures of Regola and Hopkin. b. PMAA Dinner Events The PMAA holds Region 9 Dinners in or around April and /or November of each year. In 2003, 2004, and 2005, the Spring Dinner meetings were held at Seven Springs Resort, Champion, Pennsylvania. Fall Dinner meetings were held at various locations. Regola regularly attended the dinner meetings from 2003 through 2005. Regola's wife attended the dinner meetings with Regola from 2003 through 2005. The majority of Regola's expenses and his wife's expenses to attend the dinner meetings were paid for by the HTMA. Regola regularly incurred hotel expenses for Seven Springs dinner gatherings even though such expenses were never approved by the HTMA Board and the nature of the hotel expenses were unrelated to any official function. The 2003 Region 9 Spring Dinner meeting was held on Saturday, April 12, 2003. The cost of the dinner per person was $37.00. The HTMA paid meal costs of $74.00 for Regola and his wife to attend the dinner. The fee was paid by Authority check #29018 dated March 26, 2003. Authority check #29018 was signed by Hopkin and Melenia. Regola and his wife were registered to stay at the Seven Springs hotel located at the resort even though the event was held less than one hour from Regola's home. Regola checked in on April 12, 2003, and departed on April 13, 2003. Charges to Regola's room account at the Seven Springs hotel totaled $140.90 for room rental, taxes, and a dining room charge of $47.44. Regola paid the total hotel charge of $140.09 via his personal credit card on April 13, 2003. The $47.44 dining room charge was for breakfast buffets for adult individuals, including Board Member Brian Melenia and his wife. Regola signed the receipt and directed that the charges be billed to his room. As detailed at Fact Finding 79, Regola submitted an expense report to HTMA claiming expenses of $169.15 for hotel ($92.65), mileage, turnpike fees, and a meal ($47.44) in relation to attending the 2003 Region 9 Spring Dinner. Regola signed his report on or about April 15, 2003, in the "signature of employee" section. Regola's reimbursements included charges of $23.72 incurred on behalf of Board Member Brian Melenia and his wife. Regola was issued Authority check #29628 dated July 30, 2003, as reimbursement for expenses, including those for which Regola did not produce receipts. Authority check #29628 was approved for issuance via signatures of Hopkin and the HTMA General Manager. Regola was reimbursed by the HTMA for personal expenses totaling $153.37 related to the 2003 Region 9 Spring Dinner, including his wife's registration fee of $37.00, breakfast buffets in the amount of $23.72, and room and tax in the amount of $92.65. The 2004 Region 9 Spring Dinner meeting was held on Saturday, April 17, 2004. The HTMA paid dinner fees totaling $70.00 for Regola and his wife to attend the dinner. The fee paid by Authority check #31826 dated November 3, 2004, included the $35.00 cost of Regola's spouse's dinner. Authority check #31826 was signed by Hopkin and Pecarchik. Regola, 07 -094 Page 53 On March 31, 2004, an HTMA staff member sent a fax to Seven Springs indicating that his Authority issued credit card could be used for "any and all incidentals" related to Regola's stay. The staff member was directed to send the fax so that expenses incurred in relation to the PMAA event were paid for by the Authority. This occurred prior to HTMA Board Members receiving credit cards. Regola and his wife were registered to stay at the Seven Springs hotel located at the resort. Regola checked in on April 17, 2004, and departed on April 18, 2004. The room rate was $150.00 /night plus taxes. Charges to Regola's room totaled $184.50 and included the room charge and a lounge charge of $34.50 for alcoholic beverages for Regola and Board Members Melenia and Pecarchik. Regola signed the receipt and directed that the charge be billed to his room. Regola's hotel charges totaling $184.50 were paid via the HTMA staff member's Authority credit card. The credit card statement including these charges was paid by Authority check #31037, dated May 10, 2004. Authority check #31037 was approved for issuance via signatures of Regola and Hopkin. Regola did not submit an expense report for the 2004 Region 9 Spring Dinner meeting. Personal expenses for Regola totaling $219.50 were charged to the HTMA credit card for his attendance at the 2004 Region 9 Spring Dinner meeting, and included his wife's registration fee of $35.00, alcoholic beverages in the amount of $34.50, and room charges in the amount of $150.00. The 2004 Region 9 Fall Dinner meeting was held in Penn Hills, Pennsylvania, on Thursday, November 11, 2004. The HTMA paid dinner charges totaling $70.00 for Regola and his wife to attend the dinner. The cost of each meal was $35.00. The fee was paid by Authority check #31826 dated November 3, 2004. Authority check #31826 was signed by Hopkin and Pecarchik. The 2005 Region 9 Spring Dinner meeting was held on Saturday, April 2, 2005. The HTMA paid a dinner fee of $80.00 for Regola and his wife to attend the dinner. The fee was paid by Authority check #32494 dated March 23, 2005. Authority check #32494 was signed by Hopkin and an HTMA manager. Regola and his wife were registered to stay at the Seven Springs hotel located at the resort. Regola checked in on April 2, 2005, and departed on April 3, 2005. The room rate was $154.00 /night. Regola's hotel charge of $154.00 was paid via an HTMA staff member's Authority credit card on March 16, 2005. The HTMA issued Authority check #32577 dated April 11, 2005, to pay for the hotel expense. Authority check #32577 was approved for issuance via signatures of Hopkin and Pecarchik. The HTMA paid personal expenses of $194.00 for Regola's attendance at the 2005 Region 9 Spring Dinner, including his wife's registration fee and room charges. The 2005 Region 9 Fall Dinner Meeting was held in Pittsburgh, Pennsylvania, on Saturday, November 5, 2005. The HTMA paid meal costs totaling $80.00 for Regola and his wife to attend the dinner, which included a $40.00 meal cost for Regola's wife. The fee was paid by Authority check #33493 dated November 2, 2005. Authority check #33493 was approved for issuance via signatures of Hopkin and Pecarchik. c. PMAA Management Workshop Meetings Regola, 07 -094 Page 54 Regola attended PMAA Management Workshop Meetings held in 2005 and 2006. Workshop sessions would begin at 9:00 a.m. and concluded by 3:15 p.m. with a one hour break for lunch. The 2005 and 2006 workshops were held at Nemacolin Woodlands Resort, Farmington, Pennsylvania. Regola's wife attended both the 2005 and 2006 Management Workshop Meetings with Regola. Registration fees to attend the events in 2005 and 2006 were $85.00 for a PMAA Member and $100.00 for a non - member. Regola's expenses to attend the Management Workshop Meetings in 2005 and 2006 were paid by the HTMA. Regola's wife's expenses to attend the Management Workshop meeting in 2006 were paid by the HTMA. Regola used HTMA credit cards to incur hotel and entertainment expenses on behalf of himself, his spouse, and other Board Members and their guests. The 2005 PMAA Spring Management Workshop was held on April 5, 2005. The HTMA paid the registration fee of $85.00 for Regola to attend the workshop. Regola and his wife were registered to stay at the Nemacolin Woodlands Resort Hotel on April 4, 2005, even though the meeting site was only 36 miles from Regola's home and the event began at approximately 9:00 a.m. on April 5, 2005. Regola checked in on April 4, 2005, and departed on April 5, 2005. The room rate was $189 /night plus taxes. Regola's hotel charges totaled $765.72 and included room charges, taxes, "Servi Bar" charges totaling $33.75, a charge totaling $469.63 at the "Golden Trout Restaurant," and an additional charge of $62.00 at the "Tavern Behind the Green." These charges were paid using both an HTMA staff member's Authority credit card and Regola's Authority credit card. The Authority checks that were issued to pay the credit card statements containing these charges were signed by Regola and Hopkin. The $469.63 charge at the Golden Trout Restaurant was for alcoholic beverages and meals for Board Members Regola, Melenia, Hopkin, and Pecarchik, the spouses of Regola, Hopkin, and Melenia, and the girlfriend of Pecarchik. The charge was incurred on April 4, 2005, the night prior to the workshop. Regola signed the receipt and directed that the charge be billed to his hotel room. Regola used his Authority credit card to pay for the hotel charges that included this bill. The dinner expenses were unrelated to any workshop function and were for the personal benefit of the Board Members and their guests. The $62.00 charge at the Tavern Behind the Green was also incurred on April 4, 2005, and was billed to Regola's room. Melenia had signed the receipt and directed that the charge be billed to his room. However, the charges were mistakenly billed to Regola's room. Although the charges were incurred by Melenia, Regola paid for the charges via his Authority credit card. The expenses incurred at the Tavern Behind the Green were for alcohol purchases for Melenia, Regola, Hopkin, and Pecarchik and their spouses and /or girlfriend. The HTMA paid personal expenses totaling $337.99 for Regola in relation to his attending the 2005 PMAA Workshop as calculated at Fact Finding 102. The 2006 PMAA Spring Management Workshop was held at Nemacolin Woodlands Resort, Farmington, Pennsylvania, on April 11, 2006. Regola's registration fee of $85.00 and a registration fee for Regola's wife of $100.00 were paid by the HTMA. The registration fees were charged to an HTMA staff member's Authority credit card on April 5, 2006. The credit card statement that included the registration fees was paid via Authority check #34432, dated May 17, 2006. Authority check #34432 was approved for issuance Regola, 07 -094 Page 55 via signatures of Regola and Hopkin. Regola and his wife were registered to stay at the Nemacolin Woodlands Resort Hotel. Regola checked into the hotel on April 10, 2006, and checked out on April 11, 2006. The room rate was $245 /night plus taxes. The HTMA Board never authorized this expense. Regola's hotel charges totaled $284.70 and included room charges, taxes, and a "Servi Bar" charge totaling $25.00. These charges were paid using both Hopkin's and Regola's Authority credit cards. The Authority checks that were issued to pay the credit card statements containing these charges were signed by Regola and Hopkin. Regola did not submit a hotel folio or receipts to the Authority to document expenses incurred at the resort. Regola's Authority credit card statement covering the time period April 2006 documents two additional expenses that occurred at Nemacolin Woodlands Resorts during the Spring 2006 PMAA Spring Workshop, specifically, a $949.97 charge at the Lautrec Restaurant, and a $121.58 charge at the Tavern & Pool. Check no. 34432 dated May 17, 2006, signed by Regola, was issued to pay these expenses. Regola did not provide receipts to document these expenses. The $949.97 charge at the Lautrec Restaurant was for alcoholic beverages and dinners for Board Members Regola, Hopkin, Pecarchik, and Melenia and their spouses and /or girlfriend on April 10, 2006. The dinner expenses were incurred the day prior to any official workshop activity. The workshop began at 9:00 a.m. on April 11, 2006. As Chairman, Regola authorized this expense. The Tavern & Pool receipt dated April 11, 2006, reflected $121.58 in subsistence at the Tavern & Pool between 12:37 p.m. and 2:45 p.m. on April 11, 2006, during the time frame of the workshop. The workshop lunch break was from 12:00 p.m. to 1:00 p.m. and the conference concluded by 3:15 p.m. on April 11, 2006. Expenses incurred at the Tavern & Pool that Regola charged to his Authority credit card included alcoholic beverages and food. Regola signed the receipt and directed that the expense be billed to his Authority credit card. The charges included meals for Regola, Melenia, and his wife, and Hopkin and her husband. Regola submitted an expense report to HTMA claiming additional expenses of $71.63 for mileage, turnpike fees, and tips in relation to attending the PMAA 2006 Management Workshop, as detailed at Fact Finding 110. Regola signed his report on or about April 15, 2006, in the "signature of employee" section. Regola offered no explanation or receipts for the tips listed on the expense report. Regola was issued Authority check #34479 dated May 31, 2006, in the amount of $71.63. Authority check #34479 was signed by Regola and Hopkin. Regola charged and /or authorized charges to HTMA credit cards personal expenses totaling $736.42 in relation to his attendance at the 2006 PMAA workshop, as calculated at Fact Finding 111. The 2005 AWWA Annual Conference Regola attended the 2005 AWWA annual conference, which was held in San Francisco, California, from June 12, 2005, to June 16, 2005. The HTMA paid registration fees of $100.00 for Regola and $30.00 for his wife to attend the exhibit hall portion of the annual conference. The registration fees were charged to Board Member Hopkin's Authority credit card on March 19, 2005. Hopkin's credit card statement that included these registration fees was paid via Authority check #32633 dated April 20, 2005. Regola, 07 -094 Page 56 Authority check #32633 was signed by Regola and Pecarchik. The payment of the exhibit hall registration fee permitted Regola and his wife to access the exhibit hall during the annual conference. Regola and his wife were not registered to attend any other AWWA scheduled events. Regola's and his wife's air transportation to San Francisco was charged to Hopkin's Authority issued credit card on February 22, 2005. The airline ticket costs for Regola and his wife were $234.80 each, for a total of $469.60. Regola's and his wife's airfare costs were paid via Authority check #32456 dated March 14, 2005. Authority check #32456 was approved for issuance via signatures of Hopkin and Pecarchik. In May 2005, Regola's wife reimbursed the HTMA for the cost of her airfare less the $5.00 service fee. The airfare travel itinerary for Regola and his wife provided for their departure from Pittsburgh on June 11, 2005, at 8:05 a.m., and return to Pittsburgh on June 15, 2005, at 5:49 p.m. Regola's Authority issued credit card statement covering the time period of June 2005 confirms two Wyndham Hotel expenses totaling $185.00 at the Pittsburgh airport location, which were for hotel stays prior to and after the convention. Regola's residence is located approximately 54.59 miles from the Pittsburgh International Airport. Approximate travel time from Regola's residence to the Pittsburgh International Airport is one hour and ten minutes in non -rush hour traffic. Regola stayed at the Wyndham on June 10, 2005, the evening prior to the flight, due to the early departure time on June 11, 2005. Regola and his wife were registered to stay at the Hilton hotel, 333 O'Farrell Street, San Francisco, CA 94102 for the duration of the conference. Regola checked in on June 11, 2005, and departed on June 15, 2005. The room rate was $195.00 /night plus taxes. Two people were identified in the party. Charges incurred to Regola's room account at the Hilton totaled $1,855.68 and included room and tax fees, bar charges, cafe charges, and a movie charge of $14.06 as detailed at Fact Finding 123. Regola's hotel charge of $1,855.68 was paid via Regola's Authority credit card. Regola's credit card statement that included the hotel charge was paid via Authority check #32976 dated July 13, 2005. Authority check #32976 was approved for issuance via signatures of Regola and Hopkin. Regola did not submit to the Authority a hotel folio or receipts for expenses incurred at the Hilton. Regola's charges to his room included bar charges on June 11, 2005, June 12, 2005, and June 14, 2005, for drinks for Board Members Regola, Melenia, Hopkin, Pecarchik, and spouses and /or girlfriend. The bar charges totaled $203.48. Regola's charges to his room also included a $540.00 restaurant charge for dinners for Board members Regola, Pecarchik, Melenia, and Hopkin, along with spouses and guest. On June 13, 2005, Regola and his wife along with Board members Hopkin and Melenia and their spouses took a tour of the Sonoma Valley, booked through PRA Destinations. The tour was charged to Hopkin's HTMA credit card at a cost of $81.00 per ticket per person including Regola and his wife. Regola submitted an expense report to HTMA claiming additional expenses of $443.69 for mileage, turnpike fees, taxi fares, and three meals in relation to attending the 2005 AWWA Annual Convention, as detailed at Fact Finding 126. Regola signed his report on or about June 22, 2005, in the "signature of employee" section. An HTMA staff member approved Regola's expense report even though Regola would not submit receipts for the expenses listed. Regola was issued Authority check #32931 dated June 29, 2005, Regola, 07 -094 Page 57 in the amount of $443.69. Authority check #32931 was signed by Regola and Hopkin. Regola charged a restaurant expense at Scoma Restaurant to his Authority issued credit card while in San Francisco. Board Member Regola, along with Hopkin, Melenia, and Pecarchik and their spouses /guest attended the dinner. Regola charged the $426.94 dinner expense to his Authority credit card on June 11, 2005. Regola's credit card statement that includes the charge was paid by Authority check #32976. Authority check #32976 was approved for issuance by signatures of Regola and Hopkin. The HTMA incurred $501.83 in personal expenses for Regola and his wife to travel to San Francisco during the time frame June 10, 2005, through June 15, 2005, when attending the AWWA Conference as calculated at Fact Finding 130. WEFTEC Annual Conferences At WEFTEC conferences, fees are charged for attendance at specific events. Badges are provided that authorize entrance to specific seminars. Access to seminars is denied without a badge. As a member of the HTMA, Regola attended the 2004 WEFTEC conference held in New Orleans, Louisiana, and the 2005 WEFTEC conference held in Washington, D.C. Regola's wife attended both conferences with Regola. The 2004 WEFTEC Conference was held from October 2, 2004, through October 6, 2004. The HTMA paid a fee of $125.00 for Regola to tour the EXPO Hall for the October 2, 2004, through October 6, 2004, time period. The $125.00 fee was charged to Hopkin's Authority issued credit card on September 10, 2004. Fees were charged to Hopkin's Authority credit card as she made Regola's travel arrangements. Hopkin's credit card statement documenting the $125.00 fee was paid via Authority check #31728 dated October 20, 2004. Authority check #31728 was authorized for issuance via signatures of Regola and Hopkin. Regola's and his wife's air fare to New Orleans was charged to Hopkin's personal American Express Gold Delta SkyMiles credit card on June 1, 2004. The airline tickets for Regola and his wife cost $221.90 each. Regola's and his wife's airfare costs were paid for via Authority check #31090 dated May 27, 2004. Authority check #31090 was approved by Regola and Hopkin. In June 2004, Regola's wife reimbursed the HTMA for her air fare to New Orleans. Regola and his wife were registered to stay at the Sheraton Hotel, 500 Canal Street, New Orleans, LA 70130. Regola checked in on October 2, 2004, at 1:25 p.m. and departed on October 6, 2004, at 9:53 a.m. The room rate was $229.00 /night plus taxes. Charges incurred to Regola's room account at the Sheraton totaled $1,312.57 and included room charges and taxes, personal telephone calls totaling $95.35, lounge charges, and restaurant charges. The restaurant charges included a meal for Melenia and meals for Regola's wife. Regola's hotel charge of $1,312.57 was paid via Regola's Authority credit card. Regola's credit card statement that included the hotel charge was paid via Authority check #31874 dated November 17, 2004. Authority check #31874 was signed by Regola and Pecarchik. Regola did not submit a hotel folio or receipts to document expenses incurred at the Sheraton Hotel. Regola submitted an expense report to HTMA claiming additional expenses of $286.52 for mileage, turnpike fees, taxi fares, parking, and two meals in relation to attending the 2004 WEFTEC Convention Expo Hall, as detailed at Fact Finding 141. Regola signed his report on or about December 1, 2004, in the "signature of employee" section. HTMA staff approved Regola's expense report even though Regola did not Regola, 07 -094 Page 58 provide receipts for the expenses listed. Regola advised Authority staff that he did not have receipts and authorized the reimbursement without expense documentation. Regola was issued Authority check #32000 dated December 13, 2004, in the amount of $286.52. Authority check #32000 was approved for issuance via signatures of Hopkin and Pecarchik. Regola charged restaurant expenses for himself, his wife, and Board Members Hopkin and Melenia and their spouses to his Authority issued credit card while in New Orleans, LA. The subsistence expense was incurred at Chef Duke's Cafe Giovanni located at 117 Rue Decatur, New Orleans, LA 70130. Regola charged the $148.00 expense at Chef Duke's Cafe Giovanni to his Authority credit card on October 5, 2004. Regola's credit card statement that included the payment made to Chef Duke's Cafe Giovanni was paid via Authority check #31874. Authority check #31874 was approved by Regola and Pecarchik. The HTMA paid personal expenses totaling $191.49 for Regola's attendance at the 2004 WEFTEC event, as calculated at Fact Finding 143. The 2005 WEFTEC Conference was held at the Washington Convention Center from October 29, 2005, through November 1, 2005. The HTMA paid a fee of $145.00 for Regola to access the EXPO Hall, which contains vendor displays and technology advancements. The $145.00 fee was charged to an HTMA staff member's Authority credit card on October 5, 2005. The credit card statement that included the $145.00 fee was paid via Authority check #33572 dated November 16, 2005. Authority check #33572 was approved by Regola and Hopkin. Regola and his wife were registered to stay at the Marriott hotel located at 1331 Pennsylvania Avenue, Washington, DC 20004. Regola checked in on October 29, 2005, and departed on November 2, 2005. The room rate was $439.00 /night plus taxes. Charges incurred to Regola's room account at the Marriott totaled $2,293.62. Regola's hotel charge of $2,293.62 was paid via Regola's Authority credit card. Regola's credit card statement that included the hotel charge was paid via Authority check #33772 dated December 21, 2005. Authority check #33772 was approved for issuance via signatures of Regola and Pecarchik. Regola did not submit an expense report to the HTMA claiming expenses in relation to attending the 2005 WEFTEC Convention. Regola charged a restaurant expense in the amount of $456.00 to his Authority issued credit card while in Washington, DC. The expense was for dinners for Board Members Regola, Melenia, and Hopkin, and their spouses. Regola charged the $456.00 expense to his Authority credit card on October 31, 2005. Regola's credit card statement that included the charge was paid via Authority check #33772. As noted above, Authority check #33772 was signed by Regola and Pecarchik. Other Personal Expenses Charged to Regola's Authority Credit Card The parties have stipulated that Regola incurred other personal expenses totaling $95.48 that were charged to his HTMA credit card, including: (1) a $22.97 expense for a meal at Mr. P's Restaurant in Greensburg, Pennsylvania, on March 29, 2006; (2) a $27.23 expense for a meal at Kings Family Restaurant in Greensburg, Pennsylvania, on April 5, 2006; and (3) a $45.28 expense for a meal at Parkwood Restaurant in Greensburg, Pennsylvania, on October 26, 2006. Regola's credit card statements that included these charges were paid via Authority checks that were authorized for issuance by signatures of Regola and Hopkin. Regola, 07 -094 Page 59 The parties have further stipulated that Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of these expenses. The HTMA's Payment of Regola's Legal Fees Relating to Order 1373 In or about December 2002, Regola was the subject of a prior investigation by the Investigative Division of this Commission. On September 12, 2005, this Commission issued Order No. 1373 finding one unintentional violation of Section 1103(a) of the Ethics Act by Regola. Regola was directed to make a payment to the Commonwealth of Pennsylvania in the amount of $500.00. On or about October 5, 2005, Regola's wife issued a personal check in the amount of $500.00 to the Commonwealth of Pennsylvania to satisfy the aforesaid requirement. Regola was represented by Attorney Charles Means throughout the majority of the aforementioned investigation. In approximately March 2003, Means contacted Alan Berk, Solicitor of the HTMA, to determine whether the HTMA was obligated to pay Regola's legal fees in regards to the case. Berk informed Means that the Authority was obligated to pay Regola's legal fees based upon Berk's interpretation of Article VII of the by -laws adopted by the HTMA (see, Fact Finding 10). Means concurred with Berk's legal interpretation of Article VII of the Authority's by -laws. The HTMA Board paid Regola's legal fees totaling $17,922.52. Regola did not participate in the Board's executive sessions during which Regola's legal fees were discussed. Regola left the meetings and did not return until after the Board took action to approve the payment of Regola's legal fees. The Board voted to approve the invoices related to Regola due to Berk's legal advice and legal interpretation of the Authority's by -laws. Regola did not vote for the approval of any of the twenty -one invoices presented to the Board for consideration, which resulted in payment by the HTMA of his aforesaid legal fees. Regola did sign, as an authorized signatory of the HTMA, six Authority checks totaling $7,736.43, which were issued to Regola as reimbursements of legal fees he had paid. The parties have stipulated that Regola signed these checks in an administrative capacity, and that Regola's signing of these checks did not result in any payments that he would not have otherwise received. 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 violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1103(a) occurred in relation to Regola's use of Authority credit cards [for expenses] of a personal nature for himself and /or his spouse [while] attending various conventions and seminars. b. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1103(a) occurred when Regola participated in the process to approve the use of authority funds to pay his personal legal fees, as the fees paid were expenditures previously authorized by Authority by -laws Regola, 07 -094 Page 60 and vote of the Authority Board. 4. Regola agrees to make payment in the amount of $3,508.22 in settlement of this matter payable to the Hempfield Township Municipal Authority and forwarded to the Pennsylvania State Ethics Commission 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. 6. Regola agrees not to request or accept any payment from the Hempfield Township Municipal Authority for personal legal fees or payments ordered by the State Ethics Commission as a result of this agreement. Consent Agreement, at 1 -2. In considering the allegations in light of the Stipulated Findings and Consent Agreement, we conclude that the first recommended violation has been established. Cf., Matta, Order 1439; Tancredi, Order 1434; Hoover, Order 1348; Sullivan, Order 1245; Choura, Order 942. Over a course of years, Regola repeatedly used the authority of his public office for private pecuniary gain by using Authority credit cards for personal expenses of himself and his wife when attending various conventions and seminars. During the time period under review in this case, such personal charges were sometimes made to an HTMA staff member's Authority credit card, with subsequent payment by the Authority by check. Sometimes such personal charges were made to Regola's Authority credit card, with subsequent payment by Authority check. Still other personal expenses were claimed on Regola's expense reports submitted to the HTMA. Regola did not supply receipts as to his expenses, and he authorized HTMA staff to issue payment without all receipts. Regola used the authority of his public position by signing, as an authorized HTMA signatory, Authority checks in payment of such personal expenses. Regola also used the authority of his public position by voting to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to attending the following events: (1) the PMAA Annual Conferences held from 2003 through 2006; (2) the PMAA Dinner Meetings held from 2003 through 2005; (3) the PMAA Workshop Meetings held from 2005 through 2006; (4) the 2005 AWWA Annual Conference; and (5) the 2004 and 2005 WEFTEC Conferences. The parties have further stipulated that Regola voted to approve all Authority bill lists in which Authority checks were listed regarding payment of his expenses and /or his wife's expenses in relation to having additional personal expenses charged to his Authority credit card paid for by the Authority, as detailed in Fact Findings 150 -156 and 162. Per the extensive Fact Findings, Respondent engaged in an ongoing course of conduct of paying personal expenses with HTMA funds, without regard for the public trust. The parties have not stipulated to a calculation of the total private pecuniary benefit that Respondent received, but based upon the various amounts established in the Stipulated Fact Findings, it was clearly not de minimis. With each element of a violation of Section 1103(a) established, we hold that a Regola, 07 -094 Page 61 violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Regola's use of Authority credit cards for expenses of a personal nature for himself and /or his spouse while attending various conventions and seminars. As for the remaining allegation involving the HTMA's payment of Regola's legal fees as to a prior matter before this Commission (Order No. 1373), we find no violation of Section 1103(a). Per the Consent Agreement, the parties are in agreement that the fees paid were expenditures previously authorized by Authority by -laws and vote of the Authority Board. Accordingly, we hold that no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred as to the allegation that Regola participated in the process to approve the use of Authority funds to pay his personal legal fees as to a prior matter (Order No. 1373) before this Commission, as the fees paid were expenditures previously authorized by Authority by -laws and vote of the Authority Board. As part of the Consent Agreement, Regola has agreed to make payment in the amount of $3,508.22 in settlement of this matter payable to the Hempfield Township Municipal Authority and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Regola has further agreed not to request or accept any payment from the HTMA for personal legal fees or payments ordered by this Commission as a result of the Consent Agreement in this case. 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 of the parties, Regola is directed to make payment in the amount of $3,508.22 payable to the Hempfield Township Municipal Authority and forwarded to this Commission by no later than the thirtieth (30 day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Regola is further directed not to request or accept any payment from the HTMA for personal legal fees or payments ordered by this Commission as a result of the Consent Agreement in this case. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. As a Member of the Hempfield Township Municipal Authority (hereinafter also referred to as "HTMA" or "Authority "), Westmoreland County, from July 12, 1990, until resigning from the Board on November 3, 2008, Respondent Robert Regola ( "Regola ") was a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Regola violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his use of Authority credit cards for expenses of a personal nature for himself and /or his spouse while attending various conventions and seminars. 3. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred as to the allegation that Regola participated in the process to approve the use of Authority funds to pay his personal legal fees as to a prior matter (Order No. 1373) before this Commission, as the fees paid were expenditures previously authorized by Authority by -laws and vote of the Authority Board. Regola, 07 -094 Page 62 In Re: Robert Regola, Respondent ORDER NO. 1517 File Docket: 07 -094 Date Decided: 4/30/09 Date Mailed: 5/15/09 1 As a Member of the Hempfield Township Municipal Authority (hereinafter also referred to as "HTMA" or "Authority "), Westmoreland County, Robert Regola ( "Regola ") violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to his use of Authority credit cards for expenses of a personal nature for himself and /or his spouse while attending various conventions and seminars. 2. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred as to the allegation that Regola participated in the process to approve the use of Authority funds to pay his personal legal fees as to a prior matter (Order No. 1373) before this Commission, as the fees paid were expenditures previously authorized by Authority by -laws and vote of the Authority Board. 3. Per the Consent Agreement of the parties, Regola is directed to make payment in the amount of $3,508.22 payable to the Hempfield Township Mun Authority and forwarded to this Commission by no later than the thirtieth (30 day after the mailing date of this Order. 4. Per the Consent Agreement of the parties, Regola is further directed not to request or accept any payment from the HTMA for personal legal fees or payments ordered by this Commission as a result of the Consent Agreement in this case. 5. Compliance with Paragraphs 3 and 4 of this Order will result in the closing of this case with no further action by this Commission. a. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair