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HomeMy WebLinkAbout1529 CollinsIn Re: Ronald Stahley, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Nicholas A. Colafella Mark Volk 08 -046 Order No. 1529 7/22/09 8/4/09 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." A Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. Stahley, 08 -046 Page 2 I. ALLEGATIONS: That Ronald Stahley, a public official /public employee in his capacity as Supervisor for North Whitehall Township, Lehigh County, violated Sections 1103(a) and 1105(b)(5) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a) and 1105(b)(5), when he used the authority of his public office for private pecuniary benefit by receiving compensation as the Public Works Director for attending meetings of the Board of Supervisors during his regular working hours and when he failed to list all sources of income in excess of $1,300.00 on his Statement of Financial Interests form filed for the 2005 calendar year. II. FINDINGS: 1. Ronald Stahley has served as a North Whitehall Township, Lehigh County Supervisor since at least 2003. a. North Whitehall Township is designated a Township of the Second Class governed by a three (3) member Board of Supervisors. b. All three (3) Supervisors are employed by the Township on a full -time basis. 2. Stahley has been employed by the Township as the Public Works Director since at least 2003. 3. North Whitehall Township records include a job description dated January 8, 2008, for the position of Director of Public Works. Stahley has held this position since at least 2003. a. The primary functions of the Director of Public Works are to implement policies as established by the Board of Supervisors, including planning and coordinating the construction, maintenance and repair of township roads, parks, buildings and facilities, and be responsible for environmental projects, beautification and conservation projects and materials management. b. Major duties and responsibilities for the position include: 1. Creates, writes, reviews and modifies bid and contract documentation for purchase of equipment, supplies, and services. 2. Works closely with vendors and advisors, and participates in state and local co -op purchasing groups. 3. Coordinates sale of used equipment. 4. Coordinate volunteer activities such as seeding and beautification projects, roadside clean ups, and environmental preservation. 5. Work with community to resolve problems related to public works. 6. Function as grants and special projects coordinator for township improvements. 7. Contact legislators and negotiate best interest of township in public decisions and projects. 8. Propose improvements, equipment and upkeep of township properties and community facilities. 9. Propose construction projects and bid specifications by developing and identifying needed supplies, materials, equipment and labor for budget proposals. 10. Recommend hiring and coordinate training of labor crews. 11. Oversee design of parks and projects. 12. Respond to concerns and suggestions from township residents and businesses. 13. Serve as liaison to public safety and emergency management Stahley, 08 -046 Page 3 agencies. 14. Review plans as needed for the approval of land use management. 15. Administer record keeping for public works department. 16. Oversee central water and sewer projects within the township. 17. Serve as coordinator of rails to trails activities. 18. Compile and submit cost estimates for the preparation of the departmental capital and operating budget. 19. Recommend purchase of equipment or services to the Board of Supervisors. 20. Formulate policies and procedures and seek Board of Supervisors approval for improving effectiveness of township projects. 21. Assist in the decision making with weather related conditions affecting the Township. 22. Participate in township construction projects. 23. Serve as liaison to Township Engineer. 24. Conduct employee evaluation and performance improvements plans. 25. Other duties as assigned. 4. Compensation for Supervisors working for the Township on a full -time basis was annually set by the Township Board of Auditors consistent with the employee handbook. a. Compensation was set at the following hourly rates per position: Year Position 2009 Community Services Coordinator Director of Community Affairs & Recreation Director of Public Works 2008 Community Services Coordinator Director of Community Affairs & Recreation Director of Public Works 2007 Facilities Foreman Director of Community Affairs Director of Public Works 2006 Facilities Foreman Director of Community Affairs Director of Public Works 2005 Facilities Foreman Director of Community Affairs Director of Public Works 2004 Facilities Foreman Director of Community Affairs Director of Public Works 2003 Facilities Foreman Director of Community Affairs Director of Public Works b. & Recreation & Recreation & Recreation & Recreation & Recreation Rate 25.17 $27.21 $29.41 $25.17 $27.21 $29.41 $24.56 $26.35 $28.28 $23.84 $25.58 $27.39 $22.92 $24.64 $26.34 $22.20 $23.86 $25.51 $21.45 $23.05 $24.65 Supervisor Ronald Heintzelman Terry Stoudt Ronald Stahley Ronald Heintzelman Terry Stoudt Ronald Stahley Ronald Heintzelman Terry Stoudt Ronald Stahley Ronald Heintzelman Terry Stoudt Ronald Stahley Ronald Heintzelman Terry Stoudt Ronald Stahley Ronald Heintzelman Terry Stoudt Ronald Stahley Ronald Heintzelman Terry Stoudt Ronald Stahley Other approved compensation included in the employee handbook was medical coverage, life insurance, retirement programs, workers compensation, and paid sick, personal and vacation days. Stahley, 08 -046 Page 4 5. Supervisors may not receive compensation as a working Township employee for the performance of duties as an elected official. 6. Members of the North Whitehall Township Board of Supervisors, including Stahley, received annual compensation of approximately $3,250.08 for their service as elected Township Supervisor. a. The $3,250.08 in annual compensation is to cover all aspects of the position of Supervisor, including attendance at workshop sessions, bid openings, executive sessions, and regular and special meetings of the Board of Supervisors. 7 The North Whitehall Township Board of Supervisors typically held at least one regular and one workshop session meeting per month through September 2008. a. Special meetings, bid openings, and executive session meetings are held on an as needed basis. b. Workshop sessions were generally held during normal business hours of the Township. 1. Supervisors employed by the Township generally worked a 7:00 a.m. to 3:00 p.m. schedule Monday through Friday. 8. Since 2003 the North Whitehall Township Board of Supervisors has routinely held bid openings, workshop sessions and emergency meetings during normal business hours. a. The practice of holding workshop sessions during normal business hours was discontinued after September 10, 2008. 9. Township employees including the working supervisors record their daily start and end times using a time clock. a. Employee time cards are compiled by Secretary /Treasurer Brenda Norder. b. The normal work hours for the Supervisors working on a full -time basis for the Township is Monday through Friday, 7:00 a.m. to 3:30 p.m. with a one - half hour lunch break. 10. Since 2003 Stahley routinely attended Township bid openings, special meetings, and other Supervisory related meetings held while simultaneously being compensated as an hourly Township employee. a. Stahley did not clock out to attend these meetings. b. Stahley received his hourly wage as a Township employee in addition to his wages as a Supervisor to attend these meetings. c. Stahley discontinued this practice in September 2008. 11. Between August 2003 and September 10, 2008, Stahley attended at least 107 meetings during Stahley's normal working hours resulting in compensation of at least $8,869.49. Total meetings and compensation per year is as follows: Calendar 2003 August on Meetings Compensation 9 $ 653.24 Stahley, 08 -046 Page 5 2004 21 $1,313.80 2005 24 $1,916.29 2006 15 $1,588.63 2007 24 $2,191.70 2008 through September 14 $1,205.83 107 $8,869.49 12. The issue of compensation received by the working supervisors was reviewed by Township Solicitor Lisa A. Young in 2005. This review was done by Young for the Township Board of Auditors. Young's research included compensation and benefits the Township's working supervisors could receive. 13. On December 28, 2005, Township Solicitor Lisa A. Young, Esq. issued a Solicitor's Opinion to the Board of Auditors regarding "compensation and benefits" to address compensation issues raised regarding the working supervisors. Young's opinion provided information she took from the Second Class Township Code relating to compensation and other benefits for the working supervisors. a. Solicitor Young made specific reference to her belief that the Auditors can offer and set compensation including salary, vacation time, sick days and personal days. 14. Township Solicitor Lisa A. Young did not provide the Township Board of Supervisors or Auditors with any advice or opinion on whether a working Supervisor could receive compensation as an hourly employee to attend meetings relating to [his or her] position of Supervisor. a. Young's opinion related primarily to health insurance coverage for the Supervisors and their spouses. 15. After September 16, 2008, the North Whitehall Township Board of Supervisors discontinued the practice of holding workshop meetings during normal working hours when they simultaneously were receiving wages as a Township employee. 16. Stahley issued two (2) personal checks totaling $11,232.71 to reimburse the Township for wages he received for attending meetings not consistent with the Second Class Township Code. a. Stahley issued personal check number 1026 in the amount of $11,000.00 to the Township on December 3, 2008. b. Stahley issued personal check number 5209 in the amount of $232.71 to the Township on February 24, 2009. c. Stahley did not identify how he calculated the amount to reimburse the Township. 17. Stahley's $11,000.00 check was part of a $32,459.66 deposit made into a Township account number ending in 8220 at Neff's National Bank on December 4, 2008. 18. Stahley's $232.71 check was part of a $60,313.21 deposit made into a Township account number ending in 8220 at the Neff's National Bank on February 26, 2009. 19. Minutes from the North Whitehall Township Board of Supervisors meeting held on December 3, 2008, included the following recorded discussion on the reimbursement of wages by the Supervisors: Stahley, 08 -046 Page 6 a. As a result of discovering that attending dayti workshops, while punched in as an employee, was in conflict with the 2" Class Township Code, each Supervisor remitted a check for repayment of wages earned. Supervisor Heintzelman paid $10,109.66 and Supervisors Stahley and Stoudt each paid $11,000.00 on account until the exact amount is determined. All Supervisors apologized for the conflict noting it was not done intentionally, but as a service to residents and many of the meetings were directly related to their working titles." THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT STANLEY FAILED TO LIST ALL SOURCES OF INCOME IN EXCESS OF $1,300.00 ON HIS STATEMENT OF FINANCIAL INTERESTS FORM FILED FOR THE 2005 CALENDAR YEAR. 20. Ronald Stahley in his official capacity as a North Whitehall Township Supervisor was annually required to file a Statement of Financial Interests form by May 1 of each year containing information for the prior calendar year. 21. Statement of Financial Interests Forms on file with North Whitehall Township include the following filings for Stahley covering calendar years 2003 through 2007: Calendar Year: 2007 Filed: 01/22/08 on SEC Form SEC -1 REV. 01/08 Position: Supervisor Occupation: Dir. of Public Works Creditors: None Direct /indirect income: North Whitehall Township All other financial interests: None Calendar Year: 2006 Filed: 02/03/07 on SEC Form SEC -1 REV. 01/07 Position: Board of Supervisors Chair Occupation: Dir. of Public Works Creditors: None Direct /indirect income: North Whitehall Township All other financial interests: None Calendar Year: 2005 Filed: 02/06/06 on SEC Form SEC -1 REV. 01/06 Position: Board of Supervisors Chairman Occupation: Dir. Of Public Works Creditors: None Direct /indirect income: None All other financial interests: None Calendar Year: 2004 Filed: 02/15/05 on SEC Form SEC -1 REV. 01/05 Position: Board of Supervisor Occupation: Dir. Of Public Works Creditors: None Direct /indirect income: North Whitehall Township All other financial interests: None Calendar Year: 2004 Filed: 03/03/05 on SEC Form SEC -1 REV. 01/05 Position: Supervisor /Candidate Occupation: Dir. Of Public Works Creditors: None Stahley, 08 -046 Page 7 Direct /indirect income: North Whitehall Township All other financial interests: None Calendar Year: 2003 Filed: 03/18/04 on SEC Form SEC -1 REV. 01/04 Position: Chair Board of Supervisors Occupation: NWT Dir. Of Public Works Creditors: None Direct /indirect income: North Whitehall Township All other financial interests: None 22. Stahley failed to list all sources of income in excess of $1,300.00 on his SFI filed for the 2005 calendar year. a. Stahley received wages in excess of $1,300.00 annually as an employee of and Supervisor for the Township, during each calendar year including 2005. 23. On March 16, 2009, the State Ethics Commission received an amended Statement of Financial Interests form filed by Stahley for calendar year 2005. a. This amended form was filed to address the above noted deficiency. III. DISCUSSION: As a Township Supervisor for North Whitehall Township ( "Township "), Lehigh County, since at least 2003, Respondent Ronald Stahley (hereinafter also referred to as "Respondent," "Respondent Stahley," and "Stahley ") has been a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Respondent Stahley violated Sections 1103(a) and 1105(b)(5) of the Ethics Act when he, as a Township Supervisor, used the authority of his public office for private pecuniary benefit by receiving compensation as Public Works Director for attending meetings of the Township Board of Supervisors ( "Board ") during his regular working hours and when he failed to list all sources of income in excess of $1,300.00 on his Statement of Financial Interests ( "SFI ") form filed for the 2005 calendar year. 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 Stahley, 08 -046 Page 8 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. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. 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. Respondent has served as a Township Supervisor since at least 2003. All three Township Supervisors are employed by the Township on a full -time basis. Respondent has been employed as the Township's Public Works Director since at least 2003. The Township Auditors have set the hourly rates of compensation for the Township Supervisors as Township employees as detailed in Fact Finding 4 a. Each Township Supervisor, including Respondent, has received annual compensation of approximately $3,250.08 for service as an elected Township Supervisor. Since 2003 Respondent routinely attended Township bid openings, special meetings, and other Supervisor related meetings while simultaneously being compensated as an hourly Township employee. Respondent did not clock out to attend these meetings. Respondent discontinued this practice in September 2008. Between August 2003 and September 10, 2008, Respondent attended at least 107 meetings during his regular working hours, for which he received compensation as a Township employee of at least $8,869.49. Respondent issued two personal checks totaling $11,232.71 to the Township to reimburse the Township for wages he received as a Township employee for attending meetings as a Township Supervisor. Respondent issued personal check number 1026 in the amount of $11,000.00 to the Township on December 3, 2008. Respondent issued personal check number 5209 in the amount of $232.71 to the Township on February 24, 2009. Respondent's check in the amount of $11,000.00 (check number 1026) was part of a $32,459.66 deposit made into a Township account on December 4, 2008. Respondent's check in the amount of $232.71 (check number 5209) was part of a $60,313.21 deposit made into a Township account on February 26, 2009. Stahley, 08 -046 Page 9 Minutes from the Board meeting held on December 3, 2008, included the following recorded discussion regarding the reimbursement of wages by the Supervisors: As a result of discovering that attending daytime workshops while punched in as an employee, was a conflict with the 2" Class Township Code, each Supervisor remitted a check for repayment of wages earned. Supervisor Heintzelman paid $10,109.66 and Supervisor Stahley and Stoudt each paid $11,000.00 on account until the exact amount is determined. All Supervisors apologized for the conflict noting it was not done intentionally, but as a service to residents and many of the meetings were directly related to their working titles. Fact Finding 18 a. As for Respondent's SFI forms, the parties have stipulated that Respondent failed to list all sources of income in excess of $1,300.00 on his SFI filed for the 2005 calendar year. Respondent received wages in excess of $1,300.00 from the Township in 2005, but Respondent did not list the Township as a source of income on his SFI for the 2005 calendar year. In March 2009 this Commission received an amended SFI form for calendar year 2005 filed by Respondent to address the above noted deficiency. 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 an unintentional violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1103(a), occurred in relation to Stahely's [sic] receipt of compensation as Public Works Director for attending meetings of the Board of Supervisors during his regular working hours. b. That an unintentional violation of Section 1105(b)(5) of the Public Official and Employee Ethics Act, 65 Pa.C.S. §1105(b)(5), occurred when Stahley failed to list all sources of income in excess of $1,300.00 on his Statements of Financial Interests form for calendar year 2005. 4. The Investigative Division of the State Ethics Commission will recommend that no restitution be paid as Stahley has repaid North Whitehall Township an amount in excess of the amount which was alleged as his private pecuniary gain. 5. The Investigative Division of the State Ethics Commission will recommend that no amended Statement of Financial Interests form for calendar year 2005 need be filed as Stahley has already filed an amended form with North Whitehall Township. Stahley, 08 -046 Page 10 6. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no recommendations to any law enforcement or other authority to take action in this matter. Consent Agreement, at 1 -2. In considering the Consent Agreement, we accept the parties' recommendation for a finding that an unintentional violation of Section 1103(a) of the Ethics Act occurred in relation to Respondent's receipt of compensation as Township Public Works Director for attending meetings of the Board during his regular working hours. But for the fact that Respondent was a Township Supervisor, he would not have been in a position to claim hours and receive wages as the Township Public Works Director for duties that were related to his position as a Township Supervisor. Such uses of authority of office resulted in a private pecuniary benefit to Respondent consisting of unauthorized compensation as a Township employee of at least $8,869.49. Although intent is not a requisite element of a violation of the Ethics Act, see, Yocabet v. State Ethics Commission, 531 A.2d 536 (Pa. Commw. Ct. 1987), it would appear that the aforesaid violation was unintentional. Accordingly, we hold that an unintentional violation of Section 1103(a) of the Ethics Act occurred in relation to Respondent's receipt of compensation as Township Public Works Director for attending meetings of the Board during his regular working hours. See, R.H. v. State Ethics Commission, 673 A.2d 1004 (Pa. Commw. Ct. 1996); Mendez, Order 1481; Hahn, Order 1480; Harton, Order 1421; Seamans, Order 1411; Johnson, Order 1187. We also accept the recommendation of the parties for a finding that an unintentional violation of Section 1105(b)(5) of the Ethics Act occurred when Respondent failed to list all sources of income in excess of $1,300.00 on his SFI form for calendar year 2005. The parties have stipulated that Respondent failed to list all such sources of income on the form, but that Respondent has since filed an amended form to address such deficiency. We hold that an unintentional violation of Section 1105(b)(5) of the Ethics Act occurred when Respondent failed to list all sources of income in excess of $1,300.00 on his SFI form for calendar year 2005. The Investigative Division has recommended that no restitution be ordered because Respondent has already repaid the Township an amount in excess of the amount alleged as his private pecuniary gain. The Investigative Division has further recommended that there be no requirement for the filing of an amended SFI form for calendar year 2005 as Respondent has already filed such an amended form with the Township. 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. In that Respondent has already repaid the Township an amount in excess of the amount alleged as his private pecuniary gain and has already filed with the Township an amended SFI for calendar year 2005, we will take no further action in this case, which is closed. IV. CONCLUSIONS OF LAW: 1. As a Township Supervisor for North Whitehall Township ("Township "), Lehigh County, since at least 2003, Respondent Ronald Stahley ( "Stahley ") has been a Stahley, 08 -046 Page 11 public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Stahley unintentionally violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to Stahley's receipt of compensation as Township Public Works Director for attending meetings of the Township Board of Supervisors during his regular working hours. 3. An unintentional violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Stahley failed to list all sources of income in excess of $1,300.00 on his Statement of Financial Interests form for calendar year 2005. In Re: Ronald Stahley, Respondent ORDER NO. 1529 File Docket: 08 -046 Date Decided: 7/22/09 Date Mailed: 8/4/09 1 As a Township Supervisor for North Whitehall Township ( "Township "), Ronald Stahley ( "Stahley ") unintentionally violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to his receipt of compensation as Township Public Works Director for attending meetings of the Township Board of Supervisors during his regular working hours. 2. An unintentional violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Stahley failed to list all sources of income in excess of $1,300.00 on his Statement of Financial Interests ( "SFI ") form for calendar year 2005. 3. In that Stahley has already repaid the Township an amount in excess of the amount alleged as his private pecuniary gain and has already filed with the Township an amended SFI for calendar year 2005, this Commission will take no further action in this case, which is closed. BY THE COMMISSION, Louis W. Fryman, Chair