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In Re: Evelyn Klein, : File Docket: 09-030
Respondent : X-ref: Order No. 1573
: Date Decided: 10/19/10
: Date Mailed: 10/26/10
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Raquel K. Bergen
Nicholas A. Colafella
Mark Volk
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. 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.
Klein, 09-030
Page 2
I.ALLEGATIONS:
That Evelyn Klein, a public official/public employee in her capacity as a Member of
the South Pymatuning Township Municipal Authority, violated Sections 1103(a) and
1104(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a) and 1104(a), when
she used the authority of her office for private pecuniary benefit, including but not limited to
increasing her rate of compensation as a Board Member without approval of the South
Pymatuning Township Board of Supervisors, the appointing authority; and then
subsequently participating in actions of the Authority Board to issue payments to her; and
when she failed to file Statements of Financial Interests for the 2006, 2007 and 2008
calendar years.
II.FINDINGS:
1. Evelyn Klein has served as a Member of the South Pymatuning Township Municipal
Authority (hereafter Authority) from approximately May 1981 through the present.
a. Klein served as the Chairman of the Authority Board from January 7, 2003,
until January 4, 2007.
b. Klein has served as the Assistant (a/k/a Vice Chairman) from January 4,
2007, through the present.
2. The South Pymatuning Township Supervisors created the Authority via Ordinance
presented at a meeting of the Township Supervisors on September 30, 1968.
a. The Township Supervisors created the Authority pursuant to the authority
granted them in the Pennsylvania Municipality Authorities Act.
b. The Authority provides sewage service for approximately sixty percent of
South Pymatuning Township.
3. The South Pymatuning Township Supervisors are responsible for appointing the
Members of the Authority Board and setting Board Member compensation.
a. Authority Board Members serve five year terms.
b. Pursuant to the provisions of the Municipality Authorities Act, compensation
provided for Authority Board Members must be established by the appointing
authority.
1. Board Members are not permitted to receive an increase or decrease
in compensation during their existing terms.
2. Any increase or decrease in salary becomes effective only upon the
beginning of a new term after the increase/decrease is enacted.
4. The original Articles of Incorporation associated with the Authority provided for a
five Member Board of Directors.
a. The Articles of Incorporation specifically mandated that the Authority was
limited to the undertaking of only those projects which it was directed to
undertake by resolution or ordinance of the Board of Supervisors.
5. The Authority is currently governed by a five Member Board of Directors.
a. The Authority Board holds one regularly scheduled meeting per month on
Klein, 09-030
Page 3
the first Tuesday of each month.
1. Special meetings are held as necessary.
b. The Township Supervisors appointed a specific alternate Member to the
Authority Board in March 2003, January 2007, January 2008, and January
2009.
1. The initial alternate Board Member appointed served as such from
March 2003 until December 2005.
2. No alternate Board Member was specifically appointed by the
Township Supervisors in 2007.
6. Voting at Authority meetings is normally conducted via group “aye/nay” vote after a
motion is made and properly seconded.
a. All Board Members, including the Board Chairman, vote on motions
presented.
b. If any Authority Member objects during the group vote, an individual roll call
vote is taken and recorded.
c. Any objections or abstentions cast are specifically noted in the minutes.
1. Minutes of Authority Board meetings are approved for accuracy at
subsequent meetings.
7. No specific meeting packets are compiled for Authority Board Members to review
prior to Authority Board meetings.
a. Documents provided to the Authority Board Members at each meeting
include an agenda developed by the Board Chairman, a report developed by
the Authority engineer, and a Treasurer’s report generated by the recording
secretary.
b. The recording secretary also compiles a bill list which is presented to the
Board for review at the regular monthly meeting.
1. The bill list represents all those bills received by the Authority since
the prior legislative meeting.
8. Signature authority over Authority accounts is maintained by all five Members of the
Authority Board.
a. Authority checks require two live signatures.
b. Facsimile stamps are not utilized by the Authority.
9. The Township Board of Supervisors set Authority Board Members’ compensation at
the rate of $50.00 (gross) per meeting.
a. The Board of Supervisors set this compensation in December 2002 (Finding
No. 18).
1. Prior to this time Authority Members were not compensated.
Klein, 09-030
Page 4
b. Board Members must be present in order to receive the $50.00 payment.
c. The $50.00 per meeting payment is applicable to Authority meetings as well
as any meetings attended which relate to Authority business.
10. Payment issued to Authority Board Members for meeting attendance is specifically
documented on the bill list presented for review and approval.
a. The Authority secretary sends an e-mail message to every Board Member on
a monthly basis in order to determine the amount of compensation to issue
to each respective Board Member.
1. The e-mail requests each respective Board Member to inform the
secretary of the number of meetings which were attended during the
prior month.
b. The Authority secretary generates checks for each respective Board Member
based on the response received.
c. The Authority secretary transports the checks to the Authority meeting for
required signatures and subsequent distribution.
11. The desire of Authority Board Members to receive compensation for service on the
Board was first presented to the Township Supervisors for consideration at least as
early as December 17, 2001.
a. Authority Board Members had historically served as unpaid volunteers in
their positions through that time.
12. Minutes of the December 17, 2001, Supervisors Special Meeting document then
Authority Board Member Mark Presley questioning the Supervisors regarding
Authority Board Members receiving compensation.
a. The entire Authority Board and Authority solicitor were in attendance at the
meeting with the exception of Board Member David Sopko.
b. The Township did not approve compensation for Authority Board Members
at that time.
13. At the January 2, 2002, Authority meeting, the Authority Board requested its
solicitor to inform the Township Supervisors of the Authority’s position on various
issues under consideration.
a. Issues under consideration included the size of the Board, appointment of
new Board Members, and salaries for Board Members.
14. In correspondence dated January 4, 2002, to the Township Supervisors, the
Authority solicitor noted the following regarding compensation for Authority
Members:
a. The Authority Board was renewing its request that its Members be paid for
each regular meeting attended at the rate of fifty dollars per meeting.
1. The correspondence identified extra Board Member responsibilities
regarding the Authority beyond regular meeting attendance including
managing finances, answering concerns of the public, attending
meetings with the Borough of Clark Sewer Committee, and attending
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meetings of the Upper Shenango Valley Water Pollution Control
Authority (USVWPCA).
2. The correspondence documented that all extra responsibilities would
remain uncompensated including attending special meetings or
meetings with the Township Supervisors.
b. The Township Supervisors did not approve compensation for Authority
Board Members as a result of the second request made on January 4, 2002.
c. Authority Board Members continued to serve as unpaid volunteers in their
positions through 2002.
15. At the November 14, 2002, Authority meeting, the Authority Board again requested
its solicitor to inform the Township Supervisors of the Authority’s position on various
issues under consideration by both the Authority and the Supervisors.
a. Issues under consideration again included the size of the Authority Board,
appointment of new Board Members, and salaries for Board Members.
16. In correspondence to the Township Supervisors dated November 19, 2002, the
Authority solicitor presented the Authority’s position on multiple issues, including:
a. The reappointment of Evelyn Klein to the Authority Board for a five year term
expiring on December 31, 2007.
b. [Approval] for establishment of a salary for Authority Members at the rate of
fifty dollars per regular meeting attended.
17. A motion was made at the November 22, 2002, Supervisors meeting by DeVries,
seconded by Nashtock, to appoint Nashtock to the Authority Board.
a. The motion passed via unanimous 2-0 vote.
1. Supervisor Derr was not present at the meeting.
18. At the December 4, 2002, meeting of the Board of Supervisors, a motion was made
by Nashtock, seconded by DeVries, to set compensation for Authority Board
Members to be paid from Authority accounts as designated by the Authority Board.
a. The motion called for Authority Board Members to receive compensation in
the amount of $50.00 per meeting.
1. The $50.00 per meeting payment was documented as being effective
January 1, 2003, for Board Members starting their term on or after
this date.
b. The motion passed via 2-0 unanimous vote.
c. The motion did not specify if Authority Board Members were entitled to
receive the $50.00 per meeting attended for meetings outside regular
Authority meetings (i.e., meetings with the Authority engineer, attendance at
USVWPCA meetings, etc.).
19. Prior to December 2002, the South Pymatuning Township Supervisors had never
approved Members of the Authority Board to receive compensation for their
service/meeting attendance.
Klein, 09-030
Page 6
a. The Authority Board had initiated requests to the Township Supervisors to
approve compensation for Board Members as early as, if not prior to,
December 2001.
b. Individuals serving as Board Members had done so as unpaid volunteers
from the inception of the Authority.
20. Between 2005 and 2008, the Authority increased Member compensation on three
separate occasions.
a. Evelyn Klein is reflected in Authority records as voting on two occasions in
2006 and 2008, to increase Member compensation.
b. Klein did not vote in 2005 to initially increase the compensation for Authority
Members.
c. Minutes of the Authority meetings confirm the following regarding increases
to Member compensation:
January 5, 2005:
The Authority went into executive session. The Authority returned
from executive session. Vince DeJulia made a motion to increase
Lori Gill’s salary to $1,000.00 per month, Dave Haywood seconded.
All Members approved. Dave Haywood made a motion [to] increase
the Board Members pay per meeting to $75.00 per meeting, Vince
DeJulia seconded. All Members approved.
1. Board Member Klein was not present for this meeting.
Members voting were Nashtock, DeVries, DeJulia and
Haywood.
January 4, 2006:
Dave Haywood made a motion to pay the Authority Members $100.00
per meeting for the South Pymatuning Municipal Authority and $75.00
per meeting for the USVWPCA, Vince DeJulia seconded. All
Members approved.
1. Members present and voting were Nashtock, DeVries,
DeJulia, Klein and Haywood.
January 18, 2008:
At 6:00 p.m. the Board went into Executive Session to discuss
personnel matters and reconvened at 6:10 p.m.
A motion was made by Mr. DeVries, seconded by Mrs. Klein to set the
regular monthly meeting pay for all Board Members to $150.00 and
reduce the extra meeting and continued meeting pays to $50.00 per
meeting. Any Member that attends a USVWPCA meeting will be
credited with an extra meeting pay. The rate increase is effective
February 1, 2008. Motion carried.
1. Board Members voting were DeJulia, DeVries, Klein,
Nashtock and Schenker.
21. The following reflects the actions by the Authority Board to increase compensation
between 2005 and 2008.
Klein, 09-030
Page 7
Meeting Date Members Meeting Compensation Meeting Compensation Approved by Vote
Present Established by Authority
Supervisors
January 5, 2005 M. Nashtock $50.00 per meeting $75.00 per meeting 4-0
B. DeVries
V. DeJulia
D. Haywood
January 4, 2006 M. Nashtock $50.00 per meeting $100.00 per Authority meeting 5-0
B. DeVries
V. DeJulia $75.00 per USVWPCA meeting
E. Klein
D. Haywood
January 18, M. Nashtock $50.00 per meeting $150.00 per Authority meeting 5-0
2008 B. DeVries
V. DeJulia $50.00 per extra and continued
E. Klein meetings
J. Schenker
a. None of the increases in compensation were presented to the South
Pymatuning Township Supervisors for consideration or approval prior to
enacting.
1. Two of the five Authority Members voting to increase compensation
either were, or had been, Members of the Township Board of
Supervisors.
b. Nashtock did not inform the Township Supervisors of Authority Board actions
to increase Board Member compensation in 2005, 2006 or 2008 although
serving as both a South Pymatuning Township Supervisor and Authority
Board Member during those years.
22. When compensation was increased at the above listed meetings, Members of the
Board of Supervisors were also serving as Authority Members.
a. Supervisors DeVries and Nashtock were present at the 2005, 2006 and 2008
meetings.
b. The Board of Supervisors would have approved increases if requested by
the Authority.
23. At the times of the votes to increase compensation, Authority Members believed
that since a majority of the Board of Supervisors voted to increase compensation,
no other formal action was required.
a. The Authority Solicitor did not advise the Authority that separate Board of
Supervisor approval was required.
b. Supervisors DeVries and Nashtock, who also served as Authority Members,
did not believe any additional action of the Supervisors was required.
24. Klein was not present at the January 5, 2005, Authority meeting when the Authority
Board first increased Member compensation.
a. Klein participated in the January 4, 2006, and January 18, 2008, votes to
increase Member compensation believing that it was acceptable as a result
of the 2005 vote and that two current or former Members of the Board of
Supervisors were Members of the Authority and also voted for the increases.
Klein, 09-030
Page 8
1. Klein only participated in the 2006 and 2008 votes to increase Board
Member compensation because it had been previously voted on in
2005 and she followed the past practice.
b. Klein believed that since Township Supervisors Nashtock and DeVries
participated in the action to increase the compensation the increases were
legal.
25. Checks issued to Authority Board Members as compensation for meeting
attendance originated from Authority Account Numbers XXXX406 and XXXXX526 at
First National Bank (FNB).
26. Klein, between May 2004 and August 2009, participated in actions as an Authority
Board Member in approving monthly bill lists which included payments to Klein for
attendance at Authority and additional outside meetings.
a. Klein voted to approve monthly bill lists on forty-eight (48) of fifty-five (55)
occasions on which payment to Klein was documented to which Klein was
not wholly entitled.
1. A total of fifty-five (55) regular Authority meetings were held from
February 2005 through August 2009.
27. From February 2006 through August 2009, Klein received compensation as an
Authority Board Member approved by the Authority Board which was $3,900 higher
than initially set by South Pymatuning Township Board of Supervisors.
Meeting Check Check Check No. of Amount Unapproved
Date No. Date Amt. Mtgs Due Compensation
(Gross)
02/07/06 2406 02/01/06 100.00 1 50.00 50.00
03/07/06 2424 03/07/06 175.00 2 100.00 75.00
04/04/06 2440 04/04/06 325.00 4 200.00 125.00
05/02/06 2457 05/01/06 175.00 2 100.00 75.00
06/06/06 2477 06/06/06 250.00 3 150.00 100.00
07/05/06 2491 07/01/06 100.00 1 50.00 50.00
08/01/06 2496 08/01/06 250.00 3 150.00 100.00
09/05/06 0003 09/07/06 325.00 4 200.00 125.00
10/03/06 1014 10/03/06 175.00 2 100.00 75.00
10/03/06 1019 10/03/06 75.00 1 50.00 25.00
11/06/06 1043 11/06/06 100.00 1 50.00 50.00
12/05/06 1057 12/05/06 325.00 4 200.00 125.00
01/04/07 1088 01/04/07 175.00 2 100.00 75.00
02/06/07 1113 02/06/07 175.00 2 100.00 75.00
03/06/07 1137 03/06/07 75.00 1 50.00 25.00
04/03/07 1152 04/03/07 175.00 2 100.00 75.00
05/01/07 1180 05/01/07 175.00 2 100.00 75.00
06/05/07 1205 06/05/07 100.00 1 50.00 50.00
07/09/07 1221 07/09/07 250.00 3 150.00 100.00
08/01/07 1243 08/01/07 250.00 3 150.00 100.00
09/04/07 1268 09/04/07 225.00 3 150.00 75.00
10/02/07 1282 10/02/07 250.00 3 150.00 100.00
11/07/07 1319 11/07/07 250.00 3 150.00 100.00
12/04/07 1342 12/04/07 400.00 5 250.00 150.00
01/09/08 1367 01/09/08 175.00 2 100.00 75.00
02/05/08 1394 02/01/08 300.00 4 200.00 100.00
Klein, 09-030
Page 9
03/05/08 1413 03/04/08 100.00 1 50.00 50.00
04/01/08 1436 04/01/08 250.00 3 150.00 100.00
05/06/08 1468 05/06/08 250.00 3 150.00 100.00
06/03/08 1486 06/03/08 200.00 2 100.00 100.00
07/01/08 1509 07/01/08 250.00 3 150.00 100.00
08/05/08 1529 08/05/08 150.00 1 50.00 100.00
09/02/08 1547 09/02/08 250.00 3 150.00 100.00
10/07/08 1561 10/07/08 150.00 1 50.00 100.00
11/03/08 1582 11/02/08 250.00 3 150.00 100.00
12/02/08 1604 12/02/08 250.00 3 150.00 100.00
01/06/09 1624 01/06/09 300.00 4 200.00 100.00
02/03/09 1652 02/03/09 200.00 2 100.00 100.00
03/03/09 1667 03/03/09 200.00 2 100.00 100.00
04/07/09 1690 04/07/09 250.00 3 150.00 100.00
05/05/09 1713 05/05/09 200.00 2 100.00 100.00
06/02/09 1742 06/02/09 200.00 2 100.00 100.00
07/07/09 1762 07/07/09 200.00 2 100.00 100.00
08/04/09 1771 08/04/09 150.00 1 50.00 100.00
Total $9,150.00 $5,250.00 $3,900.00
28. From February 2006 through August 2009, Klein received forty-four (44) checks
from Authority accounts which included payment of approximately $3,900.00 in
compensation for attendance at Authority and additional outside meetings not
specifically set by the Board of Supervisors.
29. Meeting pay received by Klein not specifically approved by the Township Board of
Supervisors, by year, is noted as follows:
Year Amount Not Approved
a.
2006 $ 975.00
2007 $1,000.00
2008 $1,125.00
2009 $ 800.00
Total $3,900.00
b. Klein did not vote to approve the 2005 increase in Board Member
compensation.
30. Ongoing payment to Authority Board Members was suspended by the Authority
Board at the October 6, 2009, Authority Board meeting.
a. Noted under “New Business” was that the Board hold payment for October
and future meetings until informed by the Commission of a resolution to the
potential conflict of Members adjusting their own compensation.
1. Commission refers to the State Ethics Commission.
b. The motion passed unanimously.
1. Klein was present at the meeting and participated in the unanimous
vote.
31. Between October 2009 [sic], Klein was eligible to receive compensation for meeting
attendance as an Authority Member totaling $450.00 (9 meetings @ $50/meeting)
which she has not received.
Klein, 09-030
Page 10
32. During a sworn statement with a Commission investigator conducted on September
8, 2009, Klein stated the following:
a. Authority Board Members are appointed by the Township Supervisors;
b. Authority Board Members received no compensation in their positions until
approximately 2003.
c. Klein verbally objected to raising the amount of compensation from $100.00
to $150.00 in January 2008.
1. Klein was of the opinion that receipt of $150.00 was excessive for
attendance at one meeting.
d. Klein did not recall any caution presented by the Authority solicitor at any
time regarding the Authority Board taking action to increase its own
compensation.
e. All Board Members began receiving the increase in compensation
immediately after the meeting at which the Authority Board approved the
increase.
f. Klein was aware that Authority Board salaries were required to be set by the
Township Supervisors.
1. Klein was of the belief that the Authority Board could set its own
compensation after compensation was initially approved due to the
fact that a Township Supervisor was serving as an Authority Board
Member.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT KLEIN FAILED TO
FILE STATEMENTS OF FINANCIAL INTERESTS IN HER POSITION AS A MEMBER OF
THE SOUTH PYMATUNING TOWNSHIP AUTHORITY BOARD FOR CALENDAR YEARS
2006, 2007, AND 2008.
33. On May 20, 2009, and August 26, 2009, a review of various records including
Statements of Financial Interests was conducted at the South Pymatuning
Township municipal building.
a. No Statements of Financial Interests were on file for Klein in her position as
an Authority Board Member for calendar years 2006, 2007, or 2008.
34. Klein filed amended Statements of Financial Interests for calendar years 2006,
2007, and 2008 in her position as an Authority Board Member, which were received
by the State Ethics Commission on October 28, 2009.
III.DISCUSSION:
As a Member of the South Pymatuning Township Municipal Authority (“Authority”)
from approximately May 1981 through the present, Respondent Evelyn Klein, hereinafter
also referred to as “Respondent,” “Respondent Klein,” and “Klein,” 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 Klein violated Sections 1103(a) and 1104(a) of
the Ethics Act: (1) when she used the authority of her office for private pecuniary benefit,
including but not limited to increasing her rate of compensation as a Board Member without
Klein, 09-030
Page 11
approval of the South Pymatuning Township (“Township”) Board of Supervisors, the
appointing authority, and then subsequently participating in actions of the Authority Board
to issue payments to her; and (2) when she failed to file Statements of Financial Interests
(“SFIs”) for the 2006, 2007 and 2008 calendar years.
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.
Section 1104(a) of the Ethics Act provides that each public official/public employee
must file an SFI for the preceding calendar year, each year that he holds the position and
the year after he leaves it.
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.
The Authority was created in 1968 pursuant to the Municipality Authorities Act. The
Members of the Authority Board are appointed by the Township Board of Supervisors.
Pursuant to the Municipality Authorities Act, compensation provided for Authority Board
Members must be established by the Township Board of Supervisors as the appointing
authority. Authority Board Members are not permitted to receive an increase or decrease
in compensation during their existing terms. Any increase or decrease in salary becomes
effective only upon the beginning of a new term.
Klein, 09-030
Page 12
Respondent Klein has served as a Member of the Authority Board from
approximately May 1981 through the present. Klein served as Chairman of the Authority
Board from January 7, 2003, until January 4, 2007. Klein has served as the Board’s
“Assistant,” a/k/a Vice Chairman, from January 4, 2007, through the present.
In December 2002 the Township Board of Supervisors set the compensation of
Authority Board Members at the rate of $50.00 gross per meeting attended. The $50.00
per meeting payment was documented as being effective January 1, 2003, for Board
Members starting their term on or after that date. Although the approved motion did not
specify whether Authority Board Members would be entitled to compensation for meetings
outside regular Authority meetings (Fact Finding 18 c), the parties have stipulated that the
$50.00 per meeting payment is applicable to Authority meetings as well as any meetings
attended that relate to Authority business (Fact Finding 9c).
At Authority Board meetings held on January 5, 2005, January 4, 2006, and January
18, 2008, the Authority Board voted to increase its Members’ compensation as detailed in
Fact Findings 20-21. None of these increases in compensation were presented to the
Township Board of Supervisors for consideration or approval prior to enactment. The
Authority Solicitor did not advise the Authority that separate Board of Supervisor approval
was required. Supervisors DeVries and Nashtock, who also served as Authority Members,
did not believe any additional action of the Supervisors was required. The parties have
stipulated that the Township Board of Supervisors would have approved increases if
requested by the Authority.
Klein was not present at the January 5, 2005, Authority Board meeting when the
Authority Board first increased Member compensation. However, Klein participated in the
January 4, 2006, Authority Board vote and seconded the motion and participated in the
January 18, 2008, Authority Board vote to increase Authority Board Member
compensation. The parties have stipulated that Klein only participated in the 2006 and
2008 votes to increase Board Member compensation because an increase had been
previously voted on in 2005 and Klein followed the past practice. Klein believed that the
increases were legal because two current or former Members of the Township Board of
Supervisors (DeVries and Nashtock) were also Members of the Authority and voted for the
increases.
Between May 2004 and August 2009, Klein participated in actions as an Authority
Board Member in approving monthly bill lists that included payments to Klein for
attendance at Authority and additional outside meetings. Klein voted to approve monthly
bill lists on 48 of 55 occasions on which payment to Klein was documented to which Klein
was not wholly entitled.
As detailed in Fact Findings 27-29a, from February 2006 through August 2009,
Klein received 44 Authority checks that included a total of $3,900 of compensation not
approved by the Township Board of Supervisors. By year, the meeting pay received by
Klein that was not specifically approved by the Township Board of Supervisors was as
follows: $975 in 2006; $1,000 in 2007; $1,125 in 2008; and $800 in 2009.
At the October 6, 2009, Authority Board meeting, Klein participated in a unanimous
vote of the Board to suspend further meeting payments to Authority Board Members until
informed by this Commission of a resolution to the potential conflict of Members adjusting
their own compensation. As a result of the suspension of meeting payments, Klein did not
receive certain meeting pay to which she was entitled.
On May 20, 2009, and August 26, 2009, a review of SFIs was conducted at the
Township municipal building. No SFIs were on file for Klein as an Authority Board Member
for calendar years 2006, 2007, or 2008. The parties have stipulated that Klein filed
Klein, 09-030
Page 13
amended SFIs for calendar years 2006, 2007, and 2008 in her position as an Authority
Board Member, which forms were received by this Commission on October 28, 2009.
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 when
Klein participated in increasing her rate of
compensation, as a Board Member, without
approval of the South Pymatuning Township
Board of Supervisors, the appointing Authority;
and her receipt of said compensation.
b. That a violation of Section 1104(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1104(a), occurred in relation to Klein’s failure to
file Statements of Financial Interests for the
2006, 2007 and 2008 calendar years with the
South Pymatuning Township Municipal
Authority.
4. Klein agrees to make payment in the amount of $500.00 in
settlement of this matter payable to the South Pymatuning
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. Klein has filed amended Statements of Financial Interests for
calendar years 2006, 2007 and 2008 with the South
Pymatuning Township Municipal Authority, and forward[ed]
copies to this Commission.
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 accept the recommendation of the
parties for a finding that an unintentional violation of Section 1103(a) of the Ethics Act
occurred when Klein participated in increasing her rate of compensation as an Authority
Board Member, without approval of the Township Board of Supervisors, and received said
compensation.
Klein, 09-030
Page 14
Klein used the authority of her public office as an Authority Board Member when she
participated in the January 4, 2006, Authority Board vote and seconded the motion and
participated in the January 18, 2008, Authority Board vote to increase Authority Board
Member compensation. Additionally, between May 2004 and August 2009, Klein
participated in actions as an Authority Board Member in approving monthly bill lists that
included payments to Klein for attendance at Authority and additional outside meetings.
Klein voted to approve monthly bill lists on 48 of 55 occasions on which payment to Klein
was documented to which Klein was not wholly entitled. The resulting private pecuniary
benefit to Klein consisted of a total of $3,900 of unauthorized meeting pay that Klein
received (a portion of which would be offset by meeting pay that Klein was entitled to
receive but did not receive following the October 6, 2009, Board decision to suspend
meeting payments to Authority Board Members).
Intent is not a requisite element for a violation of Section 1103(a) of the Ethics Act.
See, e.g., Yocabet v. State Ethics Commission, 531 A.2d 536 (Pa. Cmwlth. 1987).
Nevertheless, based upon the Stipulated Findings, it would appear that the aforesaid
violation was unintentional. The parties have stipulated that Klein only participated in the
2006 and 2008 votes to increase Board Member compensation because an increase had
been previously voted on in 2005 and Klein followed the past practice. Additionally, Klein
believed that the increases were legal because two current or former Members of the
Township Board of Supervisors (DeVries and Nashtock) were also Members of the
Authority and voted for the increases.
We hold that an unintentional violation of Section 1103(a) of the Ethics Act occurred
when Klein participated in increasing her rate of compensation as an Authority Board
Member, without approval of the Township Board of Supervisors (the appointing authority),
and received said compensation. Cf., Russell v. State Ethics Commission, 987 A.2d 835
(Pa. Cmwlth. 2009), allocatur denied, No. 22 WAL 2010 (Pa. August 11, 2010).
We further hold that a violation of Section 1104(a) of the Ethics Act occurred in
relation to Klein’s failure to file SFIs for the 2006, 2007 and 2008 calendar years with the
Authority.
As part of the Consent Agreement, Respondent has agreed to make payment in the
amount of $500.00 payable to the South Pymatuning Township Municipal Authority and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
Klein has already filed amended SFIs for calendar years 2006, 2007 and 2008 with
the Authority and forwarded copies to this Commission.
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 Klein is
directed to make payment in the amount of $500.00 payable to the South Pymatuning
Township Municipal Authority and forwarded to this Commission by no later than the
th
thirtieth (30) day after the mailing date of this adjudication and Order.
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:
Klein, 09-030
Page 15
1. As a Member of the South Pymatuning Township Municipal Authority (“Authority”)
from approximately May 1981 through the present, Respondent Evelyn Klein
(“Klein”) 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. Klein unintentionally violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), when she participated in increasing her rate of compensation as an
Authority Board Member, without approval of the South Pymatuning Township
Board of Supervisors (the appointing authority), and received said compensation.
3. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred in
relation to Klein’s failure to file Statements of Financial Interests for the 2006, 2007
and 2008 calendar years with the Authority.
In Re: Evelyn Klein, : File Docket: 09-030
Respondent : Date Decided: 10/19/10
: Date Mailed: 10/26/10
ORDER NO. 1573
1. As a Member of the South Pymatuning Township Municipal Authority (“Authority”),
Evelyn Klein (“Klein”) unintentionally violated Section 1103(a) of the Public Official
and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), when she
participated in increasing her rate of compensation as an Authority Board Member,
without approval of the South Pymatuning Township Board of Supervisors (the
appointing authority), and received said compensation.
2. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred in
relation to Klein’s failure to file Statements of Financial Interests for the 2006, 2007
and 2008 calendar years with the Authority.
3. Per the Consent Agreement of the parties, Klein is directed to make payment in the
amount of $500.00 payable to the South Pymatuning Township Municipal Authority
and forwarded to the Pennsylvania State Ethics Commission by no later than the
th
thirtieth (30) day after the mailing date of this Order.
4. Compliance with Paragraph 3 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