HomeMy WebLinkAbout1586 Dull
In Re: Dennis Dull, : File Docket: 10-027
Respondent : X-ref: Order No. 1586
: Date Decided: 6/23/11
: Date Mailed: 7/8/11
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.” 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.
I.ALLEGATIONS:
That Dennis Dull, a public official/public employee in his capacity as a
Commissioner for North Versailles Township, Allegheny County, violated Sections 1103(a)
and 1105(b) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a) and 1105(b),
when he used the authority of his public office to facilitate his placement on the Township
health insurance plan at Township expense, without Board discussion or approval and
when he failed to pay costs of the premiums; when he failed to file a Statement of Financial
Interests for the 2008 calendar year; when he failed to disclose direct/indirect sources of
income on a Statement of Financial Interests for the 2009 calendar year; and when he
failed to disclose his office, directorship or employment in any business on a Statement of
Financial Interests filed for the 2009 calendar year.
II.FINDINGS:
1. Dennis Dull has served as a North Versailles Township Commissioner from January
7, 2002, to the present.
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a. Dull serves as the 5 Ward Commissioner of the Township.
b. Dull served as the Board President in 2006 and 2008.
2. Professionally, Dull is a self-employed surveyor for Dennis Dull Land Surveying.
D. Dull, 10-027
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a. Dull’s license number through the State Registration Board for Professional
Engineers, Land Surveyors, and Geologists is SU-044546-E.
3. North Versailles Township is a First Class Township governed by a seven Member
Board of Commissioners.
a. The Commissioners hold regular monthly meetings at the Township building
on the third Thursday of each month.
1. The Township holds a citizen speak-out and/or caucus meeting prior
to commencing the regular meeting.
b. Special meetings are held when necessary.
4. North Versailles Township Commissioners are compensated $3,250.00 annually for
their services.
a. Township Commissioners are not required to be present at monthly
meetings in order to receive the compensation.
5. Voting at board meetings occurs in a roll call fashion after a motion is made and
seconded.
a. All objections and abstentions are noted within the minutes.
b. The minutes of each meeting are approved for accuracy at each subsequent
meeting.
c. The Secretary is ultimately responsible for generation of the minutes.
1. Hand written notes and the meeting audio recording are utilized in
generating the minutes.
6. Bill lists are generated for review at the monthly meetings.
a. The bill list is approved at the monthly meeting as funds become available.
b. Township general fund checks are signed on an as needed basis.
1. Checks require two live signatures.
aa. Authorized signatories include the Board President, Treasurer,
and Secretary.
bb. Checks can be signed by the combination of any two
signatories.
cc. Signature stamps are not utilized.
c. Invoices are provided to Commissioners for review by the Secretary upon
request.
7. Township payroll is processed by Automated Data Processing (hereafter “ADP”).
a. ADP provides business related services for employers to include payroll
processing, human resources, and benefits.
D. Dull, 10-027
Page 3
b. Township payroll is issued on a bi-weekly basis.
8. The Secretary or Accounts Payable Clerk is responsible for submission of payroll
information to ADP for processing.
a. The Accounts Payable Clerk routinely submits the information to ADP.
b. Payroll is not itemized on the monthly bill list.
9. North Versailles Township offers health, vision and dental coverage to full-time
Township employees at Township expense as an employee benefit and
compensation package.
a. Highmark provides medical and vision insurance benefits for Township
employees via the Keystone Blue HMO and vision plan, Group #8868541.
1. Highmark invoices the Township under client #019893; bill account
#0198930001.
aa. Vision premiums are also invoiced under Highmark.
2. Highmark’s group agreement does not list provisions regarding
coverage for elected Township officials.
b. Guardian Dental provides dental benefits for Township employees.
c. Township insurance plans are processed by Robert Aretta, Aretta Insurance
Group Inc.
10. North Versailles Township Commissioners’ compensation and benefits are
governed by applicable provisions of the First Class Township Code.
a. First Class Township Code, Article VII, Section 703, states in part:
“Each township Commissioner may receive a salary, established by
ordinance, of not more than…,three thousand two-hundred fifty dollars per
year in townships having a population of ten-thousand or more but less than
fifteen thousand.…”
b. First Class Township Code, Article XV, Section 1502(63), Insurance states in
part:
“To expend out of the general township fund such amount as may be
necessary…,to make contracts of insurance with any insurance company, or
nonprofit hospitalization corporation, or nonprofit medical service
corporation, authorized to transact business within the Commonwealth,
insuring its employees or commissioners, or any class or classes thereof, or
their dependents, under a policy or policies of group insurance covering life,
health, hospitalization, medical and surgical service.…”
c. The Commissioners are authorized to deduct from the employee’s or
Commissioner’s pay, salary or compensation such part of the premium or
charge as is payable by the employee or Commissioner.
d. Such insurance shall not give eligibility preference to or improperly
discriminate in favor of Commissioners.
D. Dull, 10-027
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e. First Class Township Code, Article VI, Section 603, Compensation states in
part:
“Any change in salary, compensation, or emoluments of office shall become
effective at the beginning of the next term of the elected officer.…”
11. On or prior to March 29, 2008, Dull discussed with Township Secretary Kathleen
Merolillo his enrolling in the Township’s health and vision insurance plans.
a. The Township Secretary was subordinate to Township Commissioners.
12. Merolillo consulted with a representative from the Township Solicitor’s law firm,
Brimmeier and Associates Law Firm, to determine if it was permissible for
Commissioners to participate in the Township’s health plans.
a. Merolillo solicited information from Brimmeier and Associates Law Firm for
advice on the matter of Commissioner enrollment in Township health
insurance plans.
1. A representative from Brimmeier and Associates Law Firm advised
Merolillo that Commissioners were permitted to enroll in the
Township’s health insurance plans as prescribed in the First Class
Township Code.
i. Brimmeier’s Office did not provide a written opinion.
ii. Brimmeier’s Office did not discuss with Merolillo the enrollment
process for Commissioners in the Township’s health plan or
that Commissioners would have to pay their own premiums.
13. Dull was subsequently provided with an enrollment/change form to complete in
order to be included on the Township’s health and vision plan.
14. Dull completed an enrollment/change form for Highmark health insurance dated
March 29, 2008.
a. Dull enrolled in single (individual) coverage in the Highmark HMO and vision
plan.
b. The application was signed by Dull.
c. The effective date of coverage is listed as April 1, 2008.
15. Dull returned his enrollment/change form to Merolillo’s office to be added to the
Township’s health and vision plan.
a. Dull was added to the Township’s health and vision insurance plan as a
result of his submission of the enrollment/change form.
b. Dull did not enroll in the Township’s dental plan.
16. Township health insurance enrollment/change forms require the signature of an
authorized Township official.
a. Township enrollment/change forms are routinely signed by the Township
Secretary/Manager.
D. Dull, 10-027
Page 5
1. Merolillo signed and dated Dull’s enrollment/change form on March
29, 2008.
b. Township enrollment/change forms do not require the signature of a
Commissioner.
c. Enrollment/change forms are not reviewed by the Board of Commissioners
for a vote of approval.
d. In 2008, Township enrollment/change forms were routinely forwarded by
Merolillo or Dunbar to the Township insurance agent Robert Aretta, Aretta
Insurance Group, for processing.
17. The North Versailles Township Board of Commissioners did not take action in 2008
authorizing Dull to participate in the Township’s health insurance plans.
a. The North Versailles Township Board of Commissioners did not discuss
provisions (ordinances, resolutions, etc.) regarding any Commissioners
enrolling/participating in the Township’s health plan in 2008.
b. The North Versailles Township Board of Commissioners did not formally
approve Dull’s enrollment in Township sponsored health insurance plans via
vote at a public meeting in 2008.
18. Dull has participated in North Versailles Township’s health and vision plans from
April 1, 2008, to the present.
a. The Board of Commissioners did not authorize or discuss Dull’s enrollment
in the Township’s health and vision plan during Dull’s coverage period in
2008.
19. At the time of Dull’s enrollment in the health and vision plan, the Township did not
have any provisions (resolutions, ordinances, etc.) permitting Commissioners’
participation in the Township’s health insurance plans.
a. Prior to 2008 one Commissioner, Victor Milko, was enrolled in the
Township’s health insurance plan.
20. Former North Versailles Township Commissioner Victor Milko participated in the
Township’s [health insurance] plan from September 1, 2003, to November 1, 2004.
a. Milko paid for the monthly premium pursuant to the Board of Commissioners
approval.
b. A vote approving Milko’s enrollment is not documented in the Township’s
minutes.
c. Milko enrolled in the Township’s Highmark Select-Blue Point of Service
health plan.
1. Milko’s enrollment form was signed by Milko on August 18, 2003, and
the former North Versailles Township Secretary, Patricia Logo, on
August 19, 2003.
d. Dull was a Commissioner at the time of Milko’s enrollment.
D. Dull, 10-027
Page 6
21. North Versailles Township is invoiced on a monthly basis for health, dental and
vision coverage provided to plan participants including Dull.
a. Dull, member ID #1774009900, is specifically identified by name on
Highmark invoices.
b. Vision benefit enrollees are also identified as such on the monthly Highmark
invoice.
22. Monthly premiums for Dull’s health care plan are reflected on Highmark’s invoices
as follows:
Year Health Vision Total
2008 $284.14 $4.26 $288.40
2009 $389.29 $4.52 $393.81
2010 $585.18 $4.52 $589.70
1. Commissioners are provided the Township health insurance invoice
upon request to the Township Secretary/Manager.
23. North Versailles Township invoices for health and vision insurance benefits from
Highmark verify Township payment in the amount of $14,397.72 for health and
vision insurance benefits for Dull from April 1, 2008, to December 31, 2010.
a. In 2008, Dull’s monthly health and vision insurance premiums were $288.40.
1. Although Dull first appeared on the monthly Highmark invoice as a
newly added member in June 2008, his effective coverage began
April 1, 2008.
2. Dull’s total 2008 health/vision insurance premium cost North
Versailles Township $2,595.60 (nine months coverage multiplied by
$288.40 monthly premium).
b. In 2009, Dull’s health and vision insurance monthly premium increased to
$393.81.
1. Dull’s total 2009 health/vision insurance premium cost North
Versailles Township $4,725.72 (twelve months coverage multiplied by
$393.81 monthly premium).
c. In 2010, Dull’s health and vision insurance premium increased to $589.70
per month.
1. Dull’s total 2010 health/vision insurance premium cost North
Versailles Township $7,076.40 (twelve months coverage multiplied by
$589.70 monthly premium).
24. Payments for Township provided health insurance coverage are approved by the
North Versailles Township Board of Commissioners via approval of the monthly bill
listing.
a. Township payments to Highmark are documented on monthly bill lists as one
lump sum.
b. Township health insurance invoices are not reviewed by the Board of
Commissioners.
D. Dull, 10-027
Page 7
25. Dull, as a North Versailles Township Commissioner, participated in actions of the
Board to approve bill lists on which payment to Highmark was documented, which
included payment for his monthly health insurance premiums.
a. Dull was present for thirty-three meetings and voted thirty-two times in favor
to approve the monthly bill lists on which payment to Highmark is
documented.
1. The January 2009 minutes do not list a vote of approval of the bill
listing.
26. At the Township’s March 19, 2009, regular meeting the subject of Commissioners
receiving Township provided health insurance was discussed by those Board
members in attendance.
a. A motion was made by Commissioner George Beswick, seconded by
Commissioner Frank Bivins, to permit all Commissioners to participate in the
Township health plan with the following qualifications:
1. Commissioners must reimburse the Township for the costs.
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2. Payments must be received at the Township by the 10 of every
month.
3. The policy/coverage for those enrolled would be cancelled if payment
was not received.
b. The motion passed with Dull dissenting.
27. In April 2009, Dull began to make reimbursements to the Township for the health
and vision coverage as a result of the March 19, 2009, motion as shown in the chart
below.
Check Check No. Amount Invoice Month Deposit
Date
4-8-09 1019 $393.81 April 2009 4-30-09
5-7-09 1072 $393.81 May 2009 5-14-09
6-8-09 1086 $393.81 June 2009 7-6-09
7-9-09 1114 $393.81 July 2009 7-17-09
Cash Cash $393.81 Aug. 2009 -
9-10-09 1191 $393.81 Sept. 2009 9-24-09
10-9-09 1235 $393.81 Oct. 2009 10-23-09
11-10-09 1273 $393.81 Nov. 2009 11-13-09
12-10-09 1292 $398.50 Dec. 2009 12-11-09
1-11-10 1340 $393.84 Jan. 2010 1-13-10
2-10-10 1354 $399.00 Feb. 2010 2-19-10
3-15-10 1 $398.80 Mar. 2010 3-18-10
*3-10-10 36303365 $529.22 April 2010 -
4-26-10 1010 $251.38 Balance of 4-27-10
March/April 2010
7-15-10 1076 $589.70 July 2010 7-26-10
Total $6,110.92
Reimbursement
*: Township payroll check signed over by D. Dull back to Township.
-: Information was not received.
D. Dull, 10-027
Page 8
28. Dull did not pay the total monthly premium costs of $3,777.03 for the period from
April 2008 to March 2009 (nine months coverage multiplied by $288.40 monthly
premium and three months coverage multiplied by $393.81 monthly premium).
a. Dull failed to pay the total monthly premium cost of $7,022.16* in 2010.
1. Dull did not pay the entire monthly premium amount due from January
to June and from September to December resulting in a difference of
$3,124.76 due to the Township.
b. The Board of Commissioners did not attempt to recover from Dull the health
plan expenses paid for by the Township in relation to his participation
covering the previously listed time period.
* [sic] [See, Fact Findings 23 c 1, 34 c].
29. The auditing firm of Horovitz, Rudoy, and Roteman, LLC (hereafter, “HHR”) was
hired in October 2008 to complete the Township’s 2007 and 2008 audits.
a. The Independent Auditor’s Communication of Significant Deficiencies and
Material Weakness Required Pursuant to Statement on Auditing Standards
112 letter, signed by HHR and dated April 13, 2009, to the North Versailles
Board of Commissioners and Management, indicates the following:
1. Medical insurance premiums were paid on behalf of certain
Commissioners with the expectation that those Commissioners would
reimburse the Township.
2. Commissioner reimbursements were not made during the year 2007.
aa. Commissioner reimbursements were made in years prior to
2007.
bb. It could not be determined which Commissioners HHR referred
to in the April 13, 2009, letter as no Commissioners were
enrolled in the Township’s health plans in 2007.
b. The Independent Auditor’s Communication of Significant Deficiencies and
Material Weakness Required Pursuant to Statement on Auditing Standards
112 letter, signed by HHR and dated December 23, 2009, to the North
Versailles Board of Commissioners and Management, confirmed the
following regarding health insurance premiums paid by the Township:
1. Medical insurance premiums were paid on behalf of certain
Commissioners with the expectation that those Commissioners would
reimburse the Township.
2. Commissioner reimbursements were not made during the year 2008.
aa. Commissioner reimbursements were made in years prior to
2008.
30. The HHR auditors notified the Township Commissioners that some of the
Commissioners, including Dull, had enrolled in the Township’s health insurance
plan and had not reimbursed the Township.
D. Dull, 10-027
Page 9
a. The HHR auditors had identified that previous Commissioners had enrolled
in the plan and had paid for their enrollment.
31. At the Township’s August 19, 2010, regular meeting, Ordinance No. 1050 was
approved by the Board regarding Commissioner participation in Township
sponsored health insurance plans.
a. The ordinance authorizes the placement of Township Commissioners on the
municipal health care plan at the same cost as is paid by the majority of all
Township employees.
1. The Township currently covers full costs of health insurance
premiums for full-time employees.
b. Dull voted in favor of the ordinance.
32. A memorandum provided to the Board of Commissioners, dated August 24, 2010,
by the North Versailles Township Solicitor advised that Ordinance No. 1050 permits
Commissioners to be eligible for health insurance benefits immediately and
Commissioners do not need to wait to be re-elected.
a. The memorandum was in response to a question made by Commissioner
George Beswick at the August 2010 meeting.
b. This memorandum appears to conflict with the provisions of the First Class
Township Code dealing with Commissioners’ receipt of health insurance
benefits.
c. The Solicitor later advised the [Township] Secretary that Dull should
continue paying the monthly premium pending a State Ethics Commission
review of the matter.
d. Dull maintains that he relied on the Solicitor’s memorandum when he
stopped making payments.
33. Dull continued to make monthly reimbursements to the Township for the
health/vision benefits subsequent to the approval of Ordinance No. 1050 as shown
below:
Check Check Amount Receipt # Receipt Invoice
Date No. Date Month
8-26-10 1130 $589.70 - - Aug. 2010
9-27-10 1003 $800.00 - - Sept. 2010
Total $1,389.70
34. Dull failed to reimburse the Township, in total and/or in part, for various monthly
premiums associated with his benefits received from the Township in 2008, 2009,
and 2010 totaling $6,901.79.*
a. Reimbursement due the Township in 2008 for health and vision insurance
benefits received by Dull totaled $2,595.60.
1. Dull issued no reimbursement to the Township in 2008.
b. Reimbursement due the Township in 2009 for health and vision insurance
benefits received by Dull totaled $4,725.72.
D. Dull, 10-027
Page 10
1. Dull issued reimbursement totaling $3,548.98 in 2009.
c. Reimbursement due the Township in 2010 for health and vision insurance
benefits received by Dull totaled $7,076.40.
1. Dull issued reimbursement totaling $3,951.64 in 2010.
* [sic]. [See, Fact Finding 35. Calculated based upon the above listed
amounts, Respondent failed to reimburse the Township for monthly
premiums totaling $6,897.10 during the relevant time periods].
35. Dull realized a private pecuniary gain of $6,897.10 when he used the authority of
his public position to facilitate his placement on the Township health insurance plan
at Township expense, obtain receipt of Township provided health insurance without
Board discussion or approval, when he participated in votes to approve payment of
health insurance benefits, and when he failed to pay costs for the premiums.
Description Amount
2008 health/vision insurance $2,595.60
2009 health/vision insurance $1,176.74
2010 health/vision insurance $3,124.76
Total $6,897.10
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT DULL FAILED TO
FILE A STATEMENT OF FINANCIAL INTERESTS FOR THE 2007 CALENDAR YEAR;
FAILED TO DISCLOSE DIRECT/INDIRECT SOURCES OF INCOME FOR THE 2009
CALENDAR YEAR; AND FAILED TO DISCLOSE HIS OFFICE, DIRECTORSHIP OR
EMPLOYMENT IN ANY BUSINESS ON A STATEMENT OF FINANCIAL INTERESTS
FILED FOR THE 2009 CALENDAR YEAR.
36. Dull was aware of the requirement to file Statements of Financial Interests (SFIs) in
his position as a Commissioner.
a. Applicable Township officials/employees are annually provided blank SFI
forms for completion.
37. An SFI compliance review was conducted by the Investigative Division of the State
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Ethics Commission at the North Versailles Township municipal building on July 15
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and 21 of 2010.
38. Dull filed Statements of Financial Interests (SFIs) in his position as a North
Versailles Township Commissioner for the 2004, 2005, 2006, 2007 and 2009
calendar years as noted below:
Calendar Year Date Filed Position
2005 2/2/06 Public Official
2006 3/4/07 Candidate
2006 6/16/07 Candidate/Public Official
2007 4/10/09 Public Official
2009 3/4/10 Public Official
39. No SFI for calendar year 2008 for Dull is on file with the Township.
40. Section 1105(b)(5), Required Information, of the State Ethics Act sets forth, in part,
the disclosure of the name and address of any direct or indirect source of income
totaling in the aggregate $1,300.00 or more.
D. Dull, 10-027
Page 11
a. Dull received compensation in the amount of $3,250.00 from the Township in
2009 but did not disclose the receipt of this income.
41. Section 1105(b)(8) of the State Ethics Act sets forth that the filer reports any office,
directorship or employment of any nature whatsoever in any business entity.
a. Dull failed to disclose employment [with] Dennis Dull Land Survey[ing] on
his calendar year 2009 SFI.
42. Dull maintains that he acted in good faith when he enrolled in the insurance
program based upon the solicitor’s advice, and when he did not pay the premiums
until the Board of Commissioners required him to do so.
III.DISCUSSION:
As a Commissioner for North Versailles Township (“Township”) from January 7,
2002, to the present, Respondent Dennis Dull, hereinafter also referred to as
“Respondent,” “Respondent Dull,” and “Dull,” 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 Dull violated Sections 1103(a) and 1105(b) of the Ethics
Act: (1) when he used the authority of his public office to facilitate his placement on the
Township health insurance plan at Township expense, without discussion or approval by
the Township Board of Commissioners (“Board”), and when he failed to pay costs of the
premiums; (2) when he failed to file a Statement of Financial Interests (“SFI”) for the 2008
calendar year; (3) when he failed to disclose direct/indirect sources of income on an SFI
filed for the 2009 calendar year; and (4) when he failed to disclose his office, directorship
or employment in any business on an SFI filed for the 2009 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
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
D. Dull, 10-027
Page 12
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.
Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any
office, directorship or employment in any business entity.
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 Dull has served as a Township Commissioner from January 7, 2002, to
the present. Dull served as President of the Board in 2006 and 2008. Professionally, Dull
is a self-employed surveyor for Dennis Dull Land Surveying.
The Township is a First Class Township. The Board consists of seven
Commissioners. The Township Commissioners are compensated $3,250.00 annually for
their services and are not required to be present at monthly meetings in order to receive
such compensation.
The Township Commissioners’ compensation and benefits are governed by the First
Class Township Code. With respect to insurance coverage, the First Class Township
Code authorizes a township board of commissioners:
To expend out of the general township fund such amount as
may be necessary…to make contracts of insurance with any
insurance company, or nonprofit hospitalization corporation, or
nonprofit medical service corporation, authorized to transact
business within the Commonwealth, insuring its employes or
commissioners, or any class or classes thereof, or their
dependents, under a policy or policies of group insurance
covering life, health, hospitalization, medical and surgical
service….
53 P.S. § 56563. A township board of commissioners is authorized to deduct from an
employee’s or commissioner’s pay, salary or compensation such part of the insurance
premium or charge as is payable by the employee or commissioner. Id.
Per the First Class Township Code, “[a]ny change in salary, compensation or
emoluments of office shall become effective at the beginning of the next term of the elected
officer.” 53 P.S. § 55603.
D. Dull, 10-027
Page 13
The Township offers health, vision, and dental coverage to full-time Township
employees at Township expense. Highmark provides medical and vision benefits for
Township employees via the Keystone Blue HMO and vision plan and invoices the
Township for such benefits. Payments to Highmark for such coverage are approved by the
Board through the approval of bill lists at regular monthly Board meetings. Township
payments to Highmark are documented on monthly bill lists as one lump sum, and
Township health insurance invoices are not reviewed by the Board. Highmark’s group
agreement for the Township does not list provisions regarding coverage for elected
Township officials.
On or prior to March 29, 2008, Dull discussed with Township Secretary Kathleen
Merolillo (“Merolillo”) his potential enrollment in the Township’s health and vision insurance
plans. Merolillo consulted with a representative from the Township Solicitor’s law firm to
determine if it was permissible for Township Commissioners to participate in the
Township’s health plans, and she was advised that Commissioners were permitted to
enroll in the Township’s health insurance plans as prescribed in the First Class Township
Code. The Solicitor’s law firm did not provide Merolillo with a written opinion and did not
discuss with Merolillo the enrollment process for Commissioners or that Commissioners
would have to pay their own premiums for enrollment in the Township’s health insurance
plans.
Enrollment/change forms for the Township’s health insurance plans require the
signature of an authorized Township official but do not require the signature of a Township
Commissioner. Enrollment/change forms are routinely signed by the Township
Secretary/Manager and are not reviewed by the Board for a vote of approval.
Dull completed and signed an enrollment/change form dated March 29, 2008, in
order to be enrolled for single (individual coverage) in the Township’s health and vision
plan. Dull returned his enrollment/change form to Merolillo’s office and on March 29, 2008,
Merolillo signed and dated Dull’s enrollment/change form. As a result of submitting the
enrollment/change form, Dull was enrolled in the Township’s health and vision plan with an
effective date of coverage of April 1, 2008.
At the time of Dull’s enrollment in the Township’s health and vision plan, the
Township did not have any provisions, such as resolutions, ordinances, or the like,
authorizing the participation of Commissioners in the Township’s health insurance plans.
The Board did not discuss or authorize Dull’s enrollment in the Township’s health
insurance plans in 2008.
At the Township’s regular meeting on March 19, 2009, the Board discussed the
subject of Commissioners receiving Township-provided health insurance. The Board
approved a motion to permit all Commissioners to participate in the Township health plan
subject to the qualifications that: (1) Commissioners would be required to reimburse the
Township for the costs; (2) payments would be required to be received at the Township by
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the 10 of every month; and (3) the policy/coverage for those enrolled would be cancelled
if payment was not received. Dull dissented to the approval of the motion. As a result of
the Board’s approval of the motion, Dull began to reimburse the Township in April 2009 for
the premiums for his participation in the Township’s health and vision coverage.
At the Township’s regular meeting on August 19, 2010, the Board approved an
ordinance authorizing the placement of Township Commissioners on the municipal health
care plan at the same cost as paid by the majority of all Township employees. The
Township currently covers the full costs of health insurance premiums for full-time
employees. Dull voted in favor of the ordinance. In a memorandum dated August 24,
2010, the Township Solicitor advised the Board that the aforesaid ordinance permitted
Commissioners to be eligible for health insurance benefits immediately and that
Commissioners did not need to wait until re-election to a new term of office.
D. Dull, 10-027
Page 14
Dull has participated in the Township’s health and vision plan from April 1, 2008, to
the present. Dull’s monthly premium for his health and vision insurance was $288.40 in
2008, $393.81 in 2009, and $589.70 in 2010. From April 2009 through September 2010,
Dull made reimbursements to the Township totaling $7,500.62 for his health and vision
coverage as detailed in Fact Findings 27 and 33. Dull did not reimburse the Township for
any of the total monthly premium costs for the period from April 2008 to March 2009. See,
Fact Finding 28. Dull failed to reimburse the Township for the total amount of the monthly
premiums due from January 2010 to June 2010 and from September 2010 to December
2010, resulting in a balance of $3,124.76 due to the Township for those time periods. See,
Fact Finding 28 a 1.
The Township paid a total of $14,397.72 for premiums for Dull’s enrollment in the
Township’s health and vision insurance benefits from April 1, 2008, to December 31, 2010,
as detailed in Fact Findings 23-23 c 1. As a Township Commissioner, Dull voted to
approve 32 out of 33 monthly bill lists that included payments to Highmark for Dull’s
monthly insurance premiums.
The parties have stipulated that Dull realized a private pecuniary gain of $6,897.10
when he used the authority of his public position to facilitate his placement on the
Township health insurance plan at Township expense, obtain receipt of Township provided
health insurance without Board discussion or approval, when he participated in votes to
approve payment of health insurance benefits, and when he failed to pay costs for the
premiums.
As for Dull’s SFIs, on July 15, 2010, and July 21, 2010, the Investigative Division of
this Commission conducted an SFI compliance review at the Township municipal building.
Although Dull’s SFIs for calendar years 2004, 2005, 2006, 2007, and 2009 were on file
with the Township, no SFI for Dull for calendar year 2008 was on file with the Township.
Additionally, Dull’s SFI for calendar year 2009: (1) failed to disclose the Township as a
source of income despite the fact that Dull had received compensation in the amount of
$3,250.00 from the Township in 2009; and (2) failed to disclose his employment with
Dennis Dull Land Surveying.
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
Dull facilitated his placement on the Township
health insurance plan at Township expense
without Board discussion or approval and when
he failed to pay costs of the premiums.
b. That an unintentional violation of Section
1104(a) of the Public Official and Employee
Ethics Act, 65 Pa.C.S. § 1104(a), occurred when
Dull’s Statement of Financial Interests for the
2008 calendar year was not on file with the
Township.
D. Dull, 10-027
Page 15
c. That an unintentional violation of Section
1105(b) of the Public Official and Employee
Ethics Act, 65 Pa.C.S. § 1105(b), occurred in
relation to Dull’s failure to disclose all
direct/indirect sources of income in excess of
$1,300.00, and his office, directorship or
employment in any business, on his Statement
of Financial Interests filed for the 2009 calendar
year.
4. Dull agrees to make payment in the amount of $6,897.10 in
settlement of this matter payable to the North Versailles
Township and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Dull agrees to not accept any reimbursement, compensation or
other payment from North Versailles Township representing a
full or partial reimbursement of the amount paid in settlement
of this matter.
6. Dull agrees to file a Statement of Financial Interests for the
2008 calendar year, and file an amended Statement of
Financial Interests for calendar year 2009 disclosing all
required information as appropriate, with North Versailles
Township within thirty (30) days of the issuance of the final
adjudication in this matter. Copies of said forms shall be
forwarded to the State Ethics Commission for compliance
verification purposes.
7. 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 1-2.
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, 65
Pa.C.S. § 1103(a), occurred when Dull facilitated his placement on the Township health
insurance plan at Township expense without Board discussion or approval and when he
failed to pay costs of the premiums.
Dull used the authority of his public office as a Township Commissioner when he
arranged for and accomplished being enrolled in the Township’s health and vision plan.
But for being a Township Commissioner, Dull would not have been able to: (1) discuss his
enrollment in the Township’s health and vision insurance plans with the Township
Secretary; (2) complete and submit an enrollment/change form; (3) obtain the signature of
the Township Secretary on the enrollment/change form; or (4) be added to the Township’s
health and vision plan at Township expense.
D. Dull, 10-027
Page 16
Dull further used the authority of his public office when, as a Township
Commissioner, he voted to approve 32 out of 33 monthly bill lists that included payments
to Highmark for his monthly insurance premiums.
The parties haves stipulated that Dull realized a private pecuniary gain of $6,897.10
when he used the authority of his public position to facilitate his placement on the
Township health insurance plan at Township expense, obtain receipt of Township provided
health insurance without Board discussion or approval, when he participated in votes to
approve payment of health insurance benefits, and when he failed to pay costs for the
premiums.
The parties are in agreement that Dull’s transgression of Section 1103(a) of the
Ethics Act was unintentional. We are aware of the recent decision of the Supreme Court
of Pennsylvania that in order to violate Section 1103(a) of the Ethics Act, a public
official/public employee “must be consciously aware of a private pecuniary benefit for
himself, his family, or his business, and then must take action in the form of one or more
specific steps to attain that benefit.” Kistler v. State Ethics Commission, No. 59 MAP 2009,
slip op. at 12 (Pa. June 22, 2011). Given that the parties have entered into a
comprehensive Consent Agreement, and the parties are in agreement that an unintentional
violation of Section 1103(a) as to the aforesaid private pecuniary benefit would be
appropriate as part of an overall settlement of this case, we shall accept the parties’
proposed disposition.
Accordingly, we hold that an unintentional violation of Section 1103(a) of the Ethics
Act, 65 Pa.C.S. § 1103(a), occurred when Dull facilitated his placement on the Township
health insurance plan at Township expense without Board discussion or approval and
when he failed to pay costs of the premiums. Cf., Frazer, Order 1345.
Although the remaining allegations pertain to Section 1105(b) of the Ethics Act, the
parties have agreed to a finding that an unintentional violation of Section 1104(a) of the
Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Dull’s SFI for the 2008 calendar year was
not on file with the Township.
We accept the recommendation and hold that an unintentional violation of Section
1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Dull’s SFI for the 2008
calendar year was not on file with the Township.
Finally, we hold that an unintentional violation of Section 1105(b) of the Ethics Act,
65 Pa.C.S. § 1105(b), occurred in relation to Dull’s failure to disclose all direct/indirect
sources of income in excess of $1,300.00, and his office, directorship or employment in
any business, on his SFI filed for the 2009 calendar year.
As part of the Consent Agreement, Dull has agreed to make payment in the amount
of $6,897.10 in settlement of this matter payable to North Versailles Township and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
Dull has further agreed to not accept any reimbursement, compensation or other
payment from the Township representing a full or partial reimbursement of the amount paid
in settlement of this matter.
Dull has agreed to file with the Township an SFI for the 2008 calendar year and an
amended SFI for calendar year 2009, disclosing all required information as appropriate,
within thirty (30) days of the issuance of the final adjudication in this matter and to forward
copies of said forms to this Commission for compliance verification purposes.
D. Dull, 10-027
Page 17
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Dull is directed to make
payment in the amount $6,897.10 payable to North Versailles Township and forwarded to
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this Commission by no later than the thirtieth (30) day after the mailing date of this
adjudication and Order.
Per the Consent Agreement of the parties, Dull is further directed to not accept any
reimbursement, compensation or other payment from the Township representing a full or
partial reimbursement of the amount paid in settlement of this matter.
To the extent he has not already done so, Dull is directed to file with the Township
an SFI for the 2008 calendar year and an amended SFI for calendar year 2009, disclosing
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all required information as appropriate, by no later than the thirtieth (30) day after the
mailing date of this adjudication and Order and to forward copies of said forms to this
Commission for compliance verification purposes.
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 Commissioner for North Versailles Township (“Township”) from January 7,
2002, to the present, Respondent Dennis Dull (“Dull”) 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. An unintentional violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Dull facilitated his placement on the Township health
insurance plan at Township expense without discussion or approval by the
Township Board of Commissioners and when he failed to pay costs of the
premiums.
3. An unintentional violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. §
1104(a), occurred when Dull’s Statement of Financial Interests for the 2008
calendar year was not on file with the Township.
3. An unintentional violation of Section 1105(b) of the Ethics Act, 65 P.a.C.S. §
1105(b), occurred in relation to Dull’s failure to disclose all direct/indirect sources of
income in excess of $1,300.00, and his office, directorship or employment in any
business, on his Statement of Financial Interests filed for the 2009 calendar year.
In Re: Dennis Dull, : File Docket: 10-027
Respondent : Date Decided: 6/23/11
: Date Mailed: 7/8/11
ORDER NO. 1586
1. An unintentional violation of Section 1103(a) of the Public Official and Employee
Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), occurred when Dennis Dull (“Dull”),
as a Commissioner for North Versailles Township (“Township”), facilitated his
placement on the Township health insurance plan at Township expense without
discussion or approval by the Township Board of Commissioners and when he
failed to pay costs of the premiums.
2. An unintentional violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. §
1104(a), occurred when Dull’s Statement of Financial Interests (“SFI”) for the 2008
calendar year was not on file with the Township.
3. An unintentional violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. §
1105(b), occurred in relation to Dull’s failure to disclose all direct/indirect sources of
income in excess of $1,300.00, and his office, directorship or employment in any
business, on his SFI filed for the 2009 calendar year.
4. Per the Consent Agreement of the parties, Dull is directed to make payment in the
amount of $6,897.10 payable to North Versailles Township and forwarded to the
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Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after
the mailing date of this Order.
5. Per the Consent Agreement of the parties, Dull is further directed to not accept any
reimbursement, compensation or other payment from the Township representing a
full or partial reimbursement of the amount paid in settlement of this matter.
6. To the extent he has not already done so, Dull is directed to file with the Township
an SFI for the 2008 calendar year and an amended SFI for calendar year 2009,
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disclosing all required information as appropriate, by no later than the thirtieth (30)
day after the mailing date of this Order and to forward copies of said forms to the
Pennsylvania State Ethics Commission for compliance verification purposes.
7. Compliance with Paragraphs 4, 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