HomeMy WebLinkAbout1532 CONNELLYIn Re: Michael Connelly,
Respondent
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Raquel K. Bergen
Nicholas A. Colafella
Mark Volk
08 -011
Order No. 1532
9/22/09
10/6/09
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 filed and a hearing was requested. A
Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were
subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
This adjudication of the State Ethics Commission is issued under the Ethics Act and
will be made available as a public document thirty days after the mailing date noted above.
However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with the Ethics Act.
Connelly, 08 -011
Page 2
I. ALLEGATIONS:
That Michael Connelly, a public official /public employee in his capacity as a
Supervisor of Lower Southampton Township, Bucks County, violated Sections 1103(a),
1104(a), and 1105(b)(5) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a),
1104(a), and 1105(b)(5), when he used the authority of his office for the private pecuniary
gain of himself and /or a business with which he is associated by participating in actions of
the Board of Supervisors concerning Colonial Nissan during the time period when his
company was performing services for Colonial Nissan; when he failed to file a Statement of
Financial Interests for the 2006 calendar year; and when he failed to disclose all sources
of income in excess of $1,300.00 on Statements of Financial Interests filed for the 2004,
2005, 2006 and 2007 calendar years; and when he participated in discussions and actions
of the Board of Supervisors to appoint him to Township Roadmaster and approved
payments issued to him.
II. FINDINGS:
1. Michael Connelly has served as a Supervisor for Lower Southampton Township,
Bucks County since January 1994.
a. Connelly served as Chairman of the Board of Supervisors from 2006 through
2008.
2. Lower Southampton Township is a Second Class Township with a five - member
Board of Supervisors.
3. From 2004 through 2008 Michael Connelly along with three other Supervisors were
appointed Roadmaster.
a. The remaining supervisor was appointed Secretary /Treasurer.
4. On January 5, 2009, at the reorganization meeting for the Board of Supervisors,
Michael Connelly was the only supervisor appointed Roadmaster.
a. Public Works Director Randy Behmke terminated his employment with the
township on December 31, 2008, creating a vacancy.
1. Behmke had supervised the daily activities of the Township road
department.
b. A motion to appoint Michael Connelly as Roadmaster was made by
Supervisor McMinamin and seconded by Supervisor Wesley. The motion
was approved by a 4 to 1 vote with Connelly voting for his appointment.
1. Connelly had solicited support from other Board members for his
appointment prior to the actual vote.
c. Section 602 of the 2 Class Township Code provides in part with regards to
Boards of Supervisors which are designated as three - member boards, any
Supervisor who is considered by the Board for any appointed Township
position or for employment by the Township as authorized by law shall not
be excluded from voting on the issue of such appointment or employment.
5. On January 6, 2009, at the Lower Southampton Township Board of Auditors
meeting, a motion was approved to set the compensation for the interim
Roadmaster in 2009 at $72,261.00.
Connelly, 08 -011
Page 3
a. The approved compensation had a stipulation that when a new Public Works
Director was hired, the compensation for Roadmaster ceased.
b. As of April 5, 2009, Connelly has been compensated $11,177.53 as
Township Roadmaster.
c. The Township has not hired a Public Works Director as of April 16, 2009.
6. Payroll was approved as part of the 2009 budget by a vote of 4 -0 at the Township
meeting on December 10, 2008.
a. Michael Connelly participated in the process of approving the 2009 budget
that included setting the salaries for the Township employees which included
Public Works Director at a rate of $72,261.00.
7 Statements of Financial Interests filed by Connelly as a Lower Southampton
Township Supervisor from 2005 through 2008 identified his occupation or
profession as Union Electrician.
a. Connelly is a member of Local Union No. 98, International Brotherhood of
Electrical Workers.
8. In 2006 Michael Connelly established an electrical contracting business, ACI
Electric Contracting Group LLC.
9. Pennsylvania Department of State Corporation Records list ACI Electric Group, LLC
being established on May 2, 2006.
a. The registered office address was as follows:
[residence address]
1. This is the home address of Michael Connelly.
b. The Officers of the business are listed as Michael Connelly as the President
and Treasurer.
c. On a Statement of Financial Interests filed for the 2007 calendar year
Connelly disclosed that he was a Member of the ACI Electric Group, LLC.
1. Connelly did not disclose any officer positions.
10. Colonial Nissan is an automobile dealership located in Lower Southampton
Township.
11. Articles of Incorporation for Colonial Nissan, Inc. list the business being
incorporated on April 22, 1985.
a. Ron Schwartz was listed at the President and William Stamps as the Vice -
President.
b. The registered office address effective February 22, 1993, was listed as
follows:
104 Bustleton Pike
Feasterville, PA 19053
Connelly, 08 -011
Page 4
12. Colonial Nissan established a realty company that was used for the purposes of
real estate and expanding [its] auto dealership.
13. Fictitious Name Registration for New Colonial Realty Co. lists the business being
established on August 12, 1985.
a. The Officers were Jeffrey Feldman and William Stamps.
b. The nature of the business was to own, lease, construct on and generally
operate real property.
c. The principal place of business was as follows:
124 Bustleton Pike
Feasterville, PA 19053
14. The same officers were associated with Colonial Nissan, Inc. and New Colonial
Realty Co.
15. Soon after ACI Electric Group, LLC was established in May 2006, Michael Connelly
solicited business from Colonial Nissan.
16. In June 2006 ACI Electric Group, LLC performed electrical work for Colonial
Nissan.
17. H.R. Benjamin, Inc. has been the contractor used by Colonial Nissan for any
electrical contracting work before and since electrical work was given to Connelly's
company.
18. No other contractors were considered by Colonial Nissan when the business was
awarded to ACI Electric Group, LLC.
19. On June 21, 2006, Invoice # E- 060005 was issued to Colonial Nissan for electrical
work that was performed under the name ACI Electric Group, LLC.
Description Hours Workers Rate Materials Amount
Trench, Pipe 3.0 2 $79.00 $200.00 $ 674.00
And Wire Service
sign
Trench, Pipe 3.0 2 $79.00 $200.00 $ 674.00
And Wire Used
Car Sign
Repair Colonial 1.0 2 $79.00 $0 $ 158.00
Sign on front
of building
Perform preventive 4.0 2 $79.00 $150.00 $ 782.00
Maintenance on equipment
in service building
Test & Inspect 1.0 2 $79.00 $0 $ 79.00
Transformer for
outside lights;
transformer bad,
proposal to follow
Repair vehicle lift 5.0 1 $79.00 $150.00 $ 545.00
in service area
Remove Aerial 1.5 2 $79.00 $0 $ 237.00
phone cable from
Connelly, 08 -011
Page 5
new car lot
Subtotal $3,149.00
Sales tax $ 188.94
TOTAL $3,337.94
20. On June 29, 2006, ACI Electric Group, LLC issued Invoice # E- 0600010 to Colonial
Nissan for the repair of a transformer.
Description Hours Workers Rate Materials 14mou t
Remove and replace 2.0 2 $79.00 $1,681.30 1,997.30
Existing lighting
transformer which
was bad, with new
45 KVA unit.
Replace 100 Amp
Disconnect feeding
Transformer. (Breaker Cracked)
Make all necessary
Connections and test
Lighting performance
Subtotal 1,997.30
Sales tax $119.84
TOTAL $2,117.14
21. On November 27, 2006, Invoice # E- 060028 -6 was issued by ACI Electric Group,
LLC to Colonial Nissan identifying the following:
Description of Work
Furnish and install New Lighting for the parking area
of the Colonial Nissan Service area.
Remove old fixtures and replace
(7) 400 watt light fixtures on the rear portion of the building and parking area.
(3) Wall Pack fixtures
(2) Time clocks
(5) New photocells sensors
(1) Repair high area light fixture
Repaired (2) parking lot pole fixtures
Replaced (8) lamps for light fixtures
Demo existing light fixtures and remove
Cleaned up all overhanging brush and tree limbs that blocked the lights along the
back Fence line
Original Price: $4,500.00 Electrical Work
$1,400.00 Tree work by others
Total: $5,900.00
Difference in line items: $2,050.00 cost for New Light Fixtures and all mounting
Hardware.
Revised cost for the entire project: $7,950.00
a. The invoice was written and signed by Michael Connelly and the payment
terms were upon receipt.
22. The following payments were made to ACI Electric Group, LLC by Colonial Nissan
for the electrical work that was performed at the dealership:
Invoice Number Check Number Check Date Amount of Check
E- 060005 10789 07/12/06 $5,455.08
Connelly, 08 -011
Page 6
E- 0600010
E- 0600028 -6 13205 12/20/06
$7,950.00
23. On March 15, 2006, New Colonial Realty Co. entered into an agreement to
purchase the land at 16 Dolton Road, Lower Southampton Township from Kevin
and Donna Kappes in the amount of $308,000.00.
24. New Colonial Realty Co. purchased the land in 2006 in order to submit a
subdivision plan to the Lower Southampton Township Board of Supervisors.
25. On or around April 17, 2007, New Colonial Realty Co. submitted a preliminary
subdivision plan for three parcels of land in Lower Southampton Township located
at 117 Bustleton Pike, 16 Dolton Road and 4 Village Drive.
a. The plan was submitted on behalf of Colonial Nissan.
1. The plan called [for] a relocation of the property to allow for the
expansion of the Colonial Nissan parking area.
26. Minutes of the Lower Southampton Township Board of Supervisors meeting for
June 13, 2007, confirmed discussions about the New Colonial Realty Co.
subdivision plan:
a. The proposed land development plan was going to require relief from the
requirements of the Zoning Ordinance.
b. The Board of Supervisors requested that New Colonial Realty Co. submit an
application to the Zoning Hearing Board before [it] would review [the] plan
any further.
c. The Board of Supervisors agreed until October 31, 2007, for New Colonial
Realty Co. to apply to the Zoning Hearing Board for interpretation and /or
variances of the Zoning Ordinances.
d. Connelly was present and participated in the discussion.
27. On September 6, 2007, and October 4, 2007, hearings were held by the Lower
[Southampton] Township Zoning Hearing Board on the subdivision that was being
considered by New Colonial Realty Co.
28. On October 18, 2007, the Lower Southampton Township Zoning Hearing [Board]
issued an order in connection with the Application filed by New Colonial Realty Co.
for the properties located at 117 Bustleton Pike, 4 Village Drive and 16 Dolton
Road, Feasterville, Lower Southampton Township, Pennsylvania.
a. The Board interprets the provisions for Section of Land 2003.4.A of the
Zoning Ordinance such that the proposed lot line adjustment is permitted as
of right and that provisions of the Zoning Ordinance shall not preclude
extension of the parking area onto the commercially zoned portion of the
Residential Properties.
b. The Board granted the variance request for sections of land 1402.2 and
1402.4 of the Zoning Ordinance such that a variance is granted allowing the
reduction of the side /rear yard of the Commercial Property to 20 feet of open
space, a variance is granted as to the required buffer strip on the
Commercial Property, with such planted buffer strip to be planted and
maintained on the Residential Property located on Dolton Road, and a
Connelly, 08 -011
Page 7
variance from the front yard requirements under Section 1402.2 of the
Zoning Ordinance is granted such that dumpsters and other screening may
be placed within the front yard area along Dolton Road.
29. At the Lower [Southampton] Township Board of Supervisors meeting on October
24, 2007, a motion was made to grant the preliminary and final approval for New
Colonial Realty Co.'s subdivision.
a. New Colonial Realty Co. was required to comply with each and every
requirement of the Lower Southampton Township Code of Ordinances.
b. The motion passed by a vote of 4 -0 with Township Supervisor Michael
Connelly participating in the approval process.
30. Michael Connelly did not disclose at the township supervisors meeting on October
24, 2007, that a business with which he was associated, ACI Electric Group, LLC
had performed electrical work for Colonial Nissan.
a. None of the other township supervisors were aware when the subdivision
was approved for New Colonial Realty Co. that ACI Electric Group, LLC had
performed electrical work for Colonial Nissan.
b. As of October 24, 2007, Connelly had not filed a Statement of Financial
Interests for calendar year 2006 disclosing his affiliation with ACI.
1. The Statement of Financial Interests for calendar year 2006 was
required to be filed by May 1, 2007.
The following findings relate to Connelly's failure to file a Statement of Financial
Interests for the 2006 calendar year; and when he failed to disclose all sources of
income in excess of $1,300.00 on his Statements of Financial Interests filed for the
2004 and 2005 calendar years.
31. As a Lower Southampton Township Supervisor, Michael Connelly is required to file
annually a Statement of Financial Interests (SFI) by May 1 of each year disclosing
financial interests for the prior calendar year.
32. An SFI compliance review was conducted by the Investigative Division of the State
Ethics Commission on April 21 and 23, 2008, for Lower Southampton Township,
and the following was determined regarding SFIs filed by Connelly:
Date Filed Calendar Year
01/07/05 2004
02/01/06 2005
a. No form was on file for calendar year 2006.
b. A Statement of Financial Interests form for Connelly for the 2007 calendar
year was filed on or about April 28, 2008, approximately five days after the
review was completed.
33. On March 27, 2009, a copy of Michael Connelly's SFI for calendar year 2006 was
mailed to the offices of the State Ethics Commission by Janet Nude, Executive
Secretary for Lower Southampton Township.
34. Connelly did not file a Statement of Financial Interests form for the 2006 or 2007
calendar years with the Township until after receiving the Notice of Investigation
Connelly, 08 -011
Page 8
dated April 28, 2008.
a. The Notice of Investigation informed Connelly of his failure to file a
Statement of Financial Interests for the 2006 calendar year.
35. Michael Connelly's SFI for calendar year 2006 filed on or about March 9, 2009, with
Lower Southampton Township included the following disclosures:
a. Calendar Year:
Filed:
Position:
Occupation:
Direct or Indirect Sources
Of Income:
Office, Directorship or Employment
In Any Business:
Financial Interest in Any Legal
Entity in Business for Profit:
36. Connelly's Statement of Financial Interests for the 2006 calendar year did not
disclose his listed offices of President and Treasurer of ACI.
37. Connelly filed SFIs for calendar years 2004, 2005 and 2007 with Lower
Southampton Township which included the following disclosures:
a. Calendar Year:
Filed:
Position:
Occupation:
Direct or Indirect Sources of
Income:
Office, Directorship or Employment
In any business:
Financial Interest in any Legal
Entity in Business for Profit:
b. Calendar Year:
Filed:
Position:
Occupation:
Direct or Indirect Sources of
Income:
Office, Directorship or Employment
In Any Business:
Financial Interest in Any Legal
Entity in Business for Profit:
c. Calendar Year
Filed:
Position:
Occupation:
Direct or Indirect Sources of
Income:
2006
3/9/09 on SEC -1 Rev. 01/09
Township Supervisor
Union Electrician
Local Union 98 IBEW
Holy Reedemer Hospital
TJU Hospital
Lower Southampton Township
ACI Electric Group, LLC, Member
ACI Electric Group, LLC, Member
2004
01/07/05
Lower Southampton Township
Supervisor
Union Electrician
Maureen P. Connelly (Spouse)
None
None
2005
02/01/06
Township Supervisor Chairman
Union Electrician
Maureen P. Connelly (Spouse)
None
None
2007
04/28/08
Supervisor
Electrician
Maureen Connelly (Spouse)
Connelly, 08 -011
Page 9
ACI Electric Group, LLC, Member
CCA Real Estate, LLC, Partner
ACI Electric Group, LLC, Member
CCA Real Estate, LLC, Partner
38. Michael Connelly is listed as President and Treasurer of ACI Electric Group, LLC
on papers on file with the Pennsylvania Department of State.
a. Connelly did not disclose these offices on Statements of Financial Interests
filed with the Township.
39. As a Township Supervisor for Lower Southampton Township, Connelly earned the
following wages as reported on W -2 Wage and Tax Statements:
a.
b.
c.
d.
2004:
2005:
2006:
2007:
Office, Directorship or Employment
In Any Business:
Financial Interest in Any Legal
Entity in Business for Profit:
$4,124.88
$4,124.88
$4,124.88
$4,124.88
40. Connelly did not disclose income earned as a member of the Board of Supervisors
of Lower Southampton Township for calendar years 2004, 2005 and 2007.
41. During 2006 when he failed to file a Statement of Financial Interests, Connelly was
paid $4,124.88 by the Township for his service as a Township Supervisor.
III. DISCUSSION:
As a Supervisor for Lower Southampton Township ( "Township ") since January
1994, Respondent Michael Connelly, hereinafter also referred to as "Respondent,"
"Respondent Connelly," and "Connelly," 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 Connelly violated Sections 1103(a), 1104(a),
and 1105(b)(5) of the Ethics Act: (1) when he, as a Township Supervisor, used the
authority of his office for the private pecuniary gain of himself and /or a business with which
he is associated by participating in actions of the Township Board of Supervisors ( "Board ")
concerning Colonial Nissan during the time period when his company was performing
services for Colonial Nissan; (2) when he failed to file a Statement of Financial Interests
( "SFI ") for the 2006 calendar year; (3) when he failed to disclose all sources of income in
excess of $1,300.00 on SFIs filed for the 2004, 2005, 2006 and 2007 calendar years; and
(4) when he participated in discussions and actions of the Board to appoint him to the
position of Township Roadmaster and approved payments issued to him.
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:
Connelly, 08 -011
Page 10
§ 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.
Section 1104(a) of the Ethics Act provides that each public official /public employee
must file a Statement of Financial Interests for the preceding calendar year, each year that
he holds the position and the year after he leaves it.
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 Connelly has served as a Township Supervisor since January 1994.
Respondent served as Chairman of the Board from 2006 through 2008. The Board
consists of five Members.
At the Board meeting on December 10, 2008, Respondent participated in approving
the 2009 budget, which included setting the salary of the Public Works Director at a rate of
$72,261.00. On December 31, 2008, the Township Public Works Director, who supervised
the daily activities of the Township road department, terminated his employment with the
Township, creating a vacancy.
On January 5, 2009, at the Board's reorganization meeting, Respondent was
appointed Roadmaster by a 4 to 1 vote with Respondent voting for his own appointment.
Prior to the actual vote, Respondent solicited support from other Board Members for his
appointment. Respondent was the only Supervisor appointed Roadmaster in 2009. In
prior years, Respondent and three other Supervisors had been appointed Roadmaster.
On January 6, 2009, the Township Auditors set the compensation for the interim
Connelly, 08 -011
Page 11
Roadmaster at $72,261.00 with a stipulation that when a new Public Works Director was
hired, the compensation for Roadmaster would cease. As of April 5, 2009, Respondent
had been compensated $11,177.53 as Township Roadmaster. The Township had not
hired a Public Works Director as of April 16, 2009.
In a private capacity, Respondent is an electrician. In 2006 Respondent established
an electrical contracting business named "ACI Electric Contracting Group LLC" (also
referred to herein as "ACI "). Pennsylvania Department of State Corporation records list
Respondent as President and Treasurer of ACI.
Soon after ACI was established in May 2006, Respondent solicited business from
an automobile dealership named "Colonial Nissan, Inc." (also referred to herein as
"Colonial Nissan "). In 2006 ACI performed electrical work for Colonial Nissan as detailed
in Fact Findings 19 -21. Colonial Nissan paid a total of $13,405.08 to ACI for services
performed in 2006. The invoices for the work were issued June 21, 2006, June 29, 2006,
and November 27, 2006. Of the total amount paid by Colonial Nissan to ACI, $1,400.00
was for tree work performed by others.
After ACI performed the aforesaid services in 2006, Colonial Nissan used a different
electrical contractor and no longer used the services of ACI.
New Colonial Realty Co." is a realty company that was established by Colonial
Nissan and that was used for the purpose of expanding Colonial Nissan's auto dealership.
On or around April 17, 2007, New Colonial Realty Co. submitted a preliminary subdivision
plan for three parcels of land in the Township. The plan was submitted on behalf of
Colonial Nissan to allow for the expansion of the Colonial Nissan parking area.
At the Board meeting on June 13, 2007, Respondent participated in the Board's
discussion about the New Colonial Realty Co. subdivision plan. The proposed land
development plan was going to require relief from the requirements of the Zoning
Ordinance. The Board requested that New Colonial Realty Co. submit an application to
the Lower Southampton Township Zoning Hearing Board ( "Zoning Hearing Board ") for
interpretation and /or variances of the Zoning Ordinances before any further review of the
plan by the Board.
On October 18, 2007, the Zoning Hearing Board issued an Order interpreting the
provisions of the Zoning Ordinance as to certain aspects of the plan and also granting
certain variances, as detailed at Fact Findings 28 -28 b.
Subsequently, at the Board meeting on October 24, 2007, a motion was made to
grant the preliminary and final approval for New Colonial Realty Co.'s subdivision. The
motion passed by a vote of 4 -0 with Respondent participating in the approval process.
Respondent did not disclose at the October 24, 2007, Board meeting that a business with
which he was associated, ACI, had performed electrical work for Colonial Nissan. At the
time the subdivision was approved for New Colonial Realty Co., none of the other
Township Supervisors were aware that ACI had performed electrical work for Colonial
Nissan. As of October 24, 2007, Respondent had not filed an SFI for calendar year 2006
disclosing his affiliation with ACI. The SFI for calendar year 2006 was required to be filed
by May 1, 2007.
On April 21 and 23, 2008, an SFI compliance review was conducted for the
Township by the Investigative Division of the State Ethics Commission. It was determined
that Respondent had timely filed SFIs for calendar years 2004 and 2005. No SFI was on
file for Respondent for calendar year 2006. An SFI for Respondent for the 2007 calendar
year was timely filed on or about April 28, 2008, approximately five days after the
compliance review was completed.
Connelly, 08 -011
Page 12
Respondent did not file an SFI for calendar year 2006 with the Township until after
he received the Notice of Investigation dated April 28, 2008. On or about March 9, 2009,
Respondent's SFI for calendar year 2006 was filed with the Township.
Respondent's SFIs for calendar years 2004, 2005, 2006, and 2007 did not disclose
Respondent's offices as President and Treasurer of ACI.
Additionally, Respondent did not disclose the Township as a source of income on
his SFIs for calendar years 2004, 2005 and 2007. As a Township Supervisor, Respondent
received income from the Township in the amount of $4,124.88 in each of the aforesaid
calendar years. Respondent's SFI for calendar year 2006 included the Township as a
source of income. Fact Finding 35 a.
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 no violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1103(a), occurred in relation to Connelly's
participation in the review and approval of the
subdivision application submitted on behalf of
Colonial Nissan, as the services performed by
the business with which Connelly was
associated were conducted approximately one
year prior to the submission of such application.
b. That an unintentional violation of Section
1103(a) of the Public Official and Employee
Ethics Act, 65 Pa.C.S. §1103(a), occurred when
Connelly participated in actions to appoint
himself as Township Roadmaster.
c. That a violation of Section 1104(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1104(a), occurred when Connelly failed to
timely file a Statement of Financial Interests with
the Lower Southampton Township for calendar
year 2006.
d. That technical violations of Section 1105 of the
Public Official and Employee Ethics Act, 65
Pa.C.S. §1105, occurred when Connelly failed to
disclose Lower Southampton Township as a
source of income in excess of $1,300.00 on
Statements of Financial Interests filed for the
2004, 2005, and 2007 calendar years.
4. Connelly agrees to make payment in the amount of
$1,000.00 in settlement of this matter payable to the
Commonwealth of Pennsylvania and forwarded to the
Pennsylvania State Ethics Commission within thirty (30)
Connelly, 08 -011
Page 13
days of the issuance of the final adjudication in this
matter. Said amount represents a payment of $250.00
for each calendar year that Connelly either failed to
timely file Statements of Financial Interests or filed a
deficient Statement of Financial Interests with the
Township.
5. Connelly agrees to file amended Statements of
Financial Interests for calendar years 2004, 2005,
2006, and 2007 disclosing all required information as
appropriate, including but not limited to Lower
Southampton Township as a source of income as well
as his officer positions in ACI Electric Group LLC.
Copies of said forms shall be forwarded to the State
Ethics Commission for compliance purposes.
6. The Investigative Division will recommend that the
State Ethics Commission take no further action in this
matter; and make no specific recommendations to any
law enforcement or other authority to take action in this
matter. Such, however, does not prohibit the
Commission from initiating appropriate enforcement
actions in the event of Respondent's failure to comply
with this agreement or the Commission's order or
cooperating with any other authority who may so
choose to review this matter further.
Consent Agreement, at 2.
In considering the Consent Agreement, we agree with the parties that no violation of
Section 1103(a) of the Ethics Act occurred in relation to Respondent's participation in the
Board's 2007 review and approval of the subdivision application submitted on behalf of
Colonial Nissan. Although a client /customer relationship may form the basis for a conflict
of interest (see, e.g., Kannebecker, Opinion 92 -010; Miller, Opinion 89 -024), in the instant
matter, the services performed for Colonial Nissan by ACI were conducted in 2006, prior to
the submission of the subdivision application on or about April 17, 2007. Additionally, in
2007, Colonial Nissan was no longer using the services of ACI.
Therefore, we hold that no violation of Section 1103(a) of the Ethics Act occurred in
relation to Respondent's participation in the Board's 2007 review and approval of the
subdivision application submitted on or about April 17, 2007, on behalf of Colonial Nissan,
as the services performed for Colonial Nissan by ACI, an electrical contracting business
with which Respondent is associated, were conducted in 2006, and in 2007, Colonial
Nissan was no longer using the services of ACI.
We accept the recommendation of the parties for a finding that an unintentional
violation of Section 1103(a) of the Ethics Act occurred when Respondent participated in
actions to appoint himself as Township Roadmaster. Respondent used the authority of his
public position when he solicited support from other Board Members for his appointment
and subsequently voted to appoint himself Township Roadmaster in 2009. The resulting
private pecuniary benefit consisted of the compensation Respondent received in 2009 as
Township Roadmaster. There is no authorization in the Second Class Township Code for
a supervisor serving on a five - member board to participate in appointing himself to a
compensated employment position with the township.
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), the parties are
Connelly, 08 -011
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in agreement that the aforesaid violation was unintentional.
We hold that an unintentional violation of Section 1103(a) of the Ethics Act occurred
when Respondent participated in actions to appoint himself as Township Roadmaster in
2009.
As for the allegation that Respondent approved payments issued to him, it appears
that the Investigative Division in the exercise of its prosecutorial discretion has elected to
non pros that particular allegation.
A violation of Section 1104(a) of the Ethics Act occurred when Respondent failed to
timely file an SFI with the Township for calendar year 2006. As a Township Supervisor,
Respondent was required to file the form with the Township by May 1, 2007. Respondent
did not file an SFI for calendar year 2006 with the Township until on or about March 9,
2009.
We hold that a violation of Section 1104(a) of the Ethics Act occurred when
Respondent failed to timely file an SFI with the Township for calendar year 2006.
Finally, we agree with the parties that technical violations of Section 1105 of the
Ethics Act occurred when Respondent failed to disclose the Township as a source of
income in excess of $1,300.00 on SFIs filed for the 2004, 2005, and 2007 calendar years.
As a Township Supervisor, Respondent received income from the Township in the amount
of $4,124.88 in each of the aforesaid calendar years.
We hold that technical violations of Section 1105 of the Ethics Act occurred when
Respondent failed to disclose the Township as a source of income in excess of $1,300.00
on SFIs filed for the 2004, 2005, and 2007 calendar years.
As part of the Consent Agreement, Respondent has agreed to make payment in the
amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Respondent has further agreed to file with the Township amended SFIs for calendar
years 2004, 2005, 2006, and 2007, disclosing all required information including but not
limited to disclosing the Township as a source of income and his officer positions in ACI,
and to forward copies of all such filings to this Commission for compliance verification
purposes.
We determine that the Consent Agreement submitted by the parties sets forth a
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, Respondent is directed to
make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania
and forwarded to this Commission by no later than the thirtieth (30 day after the mailing
date of this adjudication and Order.
To the extent he has not already done so, Respondent is directed to file with the
Township amended SFIs for calendar years 2004, 2005, 2006, and 2007, disclosing all
required information including but not limited to disclosing the Township as a source of
income and his officer positions in ACI, and to do so by no later than the thirtieth (30 day
after the mailing date of this adjudication and Order, with copies of all such filings
forwarded to this Commission for compliance verification purposes.
Connelly, 08 -011
Page 15
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 Supervisor for Lower Southampton Township ( "Township ") since January
1994, Respondent Michael Connelly ( "Connelly ") 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.
2. Connelly did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in
relation to his participation in the Township Board of Supervisors' 2007 review and
approval of the subdivision application submitted on or about April 17, 2007, on
behalf of Colonial Nissan, Inc. ( "Colonial Nissan "), as the services performed for
Colonial Nissan by ACI Electric Contracting Group LLC ("ACI "), an electrical
contracting business with which Connelly is associated, were conducted in 2006,
and in 2007, Colonial Nissan was no longer using the services of ACI.
3. An unintentional violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Connelly participated in actions to appoint himself as
Township Roadmaster in 2009.
4. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Connelly failed to timely file a Statement of Financial Interests ( "SFI ") with the
Township for calendar year 2006.
5. Technical violations of Section 1105 of the Ethics Act occurred when Connelly
failed to disclose the Township as a source of income in excess of $1,300.00 on
SFIs filed for the 2004, 2005, and 2007 calendar years.
In Re: Michael Connelly,
Respondent
ORDER NO. 1532
File Docket: 08 -011
Date Decided: 9/22/09
Date Mailed: 10/6/09
1 As a Supervisor for Lower Southampton Township ( "Township "), Michael Connelly
( "Connelly ") did not violate Section 1103(a) of the Public Official and Employee
Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to his participation in the
Township Board of Supervisors' 2007 review and approval of the subdivision
application submitted on or about April 17, 2007, on behalf of Colonial Nissan, Inc.
( "Colonial Nissan "), as the services performed for Colonial Nissan by ACI Electric
Contracting Group LLC ("ACI "), an electrical contracting business with which
Connelly is associated, were conducted in 2006, and in 2007, Colonial Nissan was
no longer using the services of ACI.
2. An unintentional violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Connelly participated in actions to appoint himself as
Township Roadmaster in 2009.
3. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Connelly failed to timely file a Statement of Financial Interests ( "SFI ") with the
Township for calendar year 2006.
4. Technical violations of Section 1105 of the Ethics Act occurred when Connelly
failed to disclose the Township as a source of income in excess of $1,300.00 on
SFIs filed for the 2004, 2005, and 2007 calendar years.
5. Per the Consent Agreement of the parties, Connelly is directed to make payment in
the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the
thirtieth (30 day after the mailing date of this Order.
6. To the extent he has not already done so, Connelly is directed to file with the
Township amended SFIs for calendar years 2004, 2005, 2006, and 2007, disclosing
all required information including but not limited to disclosing the Township as a
source of income and his officer positions in ACI, and to do so by no later than the
thirtieth (30 day after the mailing date of this Order, with copies of all such filings
forwarded to the Pennsylvania State Ethics Commission for compliance verification
purposes.
7 Compliance with Paragraphs 5 and 6 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
Name, Case #
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