Loading...
HomeMy WebLinkAbout1613 Bajsec In Re: Michael Bajsec, : File Docket: 11-015 Respondent : X-ref: Order No. 1613 : Date Decided: 1/28/13 : Date Mailed: 2/14/13 Before: John J. Bolger, Chair Nicholas A. Colafella, Vice Chair Raquel K. Bergen Mark Volk Mark R. Corrigan Roger Nick 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 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 Michael Bajsec, a public official/public employee in his capacity as a Councilman for Leetsdale Borough, Allegheny County violated [Sections 1103(a), 1104(a), and 1104(d)] of the State Ethics Act (Act 93 of 1998) when he participated in discussions, actions and/or other proceedings of Council including but not limited to making recommendations in relation to his wife being chosen for employment with the Borough; the creation of a new Borough position of full-time Junior Clerk and the compensation to be paid in relation thereto at the time when he knew or had a reasonable expectation that his wife would be appointed thereto; the preparation of the official motion to offer a position of full-time employment to his wife; the increase in salary paid to his spouse; approval of Borough payments for compensation and benefits paid to his spouse; and when he failed to file a Statement of Financial Interests for the 2011 calendar year by May 1, 2012. II.FINDINGS: 1. Michael Bajsec, Jr., served as a Council Member for Leetsdale Borough, Allegheny County, effective March 11, 2010, through December 31, 2011. a. Bajsec was appointed to a vacant seat on Council at the March 11, 2010, regular Borough Council meeting. 1. Bajsec was appointed to Council to replace Melanie Dunn, who had resigned her position on Council effective February 28, 2010. Bajsec, 11-015 Page 2 2. Bajsec had no official prior experience in local government service. b. Bajsec served as the Vice-President of Council from September 9, 2010, through December 31, 2011. c. Bajsec served as the Chairman of the Borough Finance Committee during his entire tenure on Council. 2. Leetsdale Borough (hereafter, “Borough”) is governed by a seven-Member Council and a Mayor. a. Borough Council holds one legislative meeting per month on the second Thursday of each month. b. Since about December 2010, Borough Council has held one workshop meeting per month on the Tuesday prior to the second Thursday of each month. 1. Borough Council did not consistently hold workshop meetings from at least January 2009 through November 2010. c. Borough Council holds special meetings on an as-needed basis. 3. All seven Members of Council, including Council President, participate in voting on motions presented for approval. a. Council President may not make or second motions on the floor. b. The Borough Mayor has voting privileges only if a tie occurs among voting Council Members. 4. Voting at Borough Council meetings primarily occurs via group “aye/nay” fashion. a. Individual roll call votes may occur depending upon the issue presented for consideration. 1. Roll call votes may be conducted for personnel issues, financial issues, controversial issues, etc. b. Any objections or abstentions cast by Council Members are specifically documented in the written meeting minutes. 1. Minutes of all meetings held are approved for accuracy by Council at subsequent meetings. 2. Council meetings are digitally recorded and retained to assist in generation of the minutes. 5. Council Members do not receive a formalized meeting packet prior to the workshop or legislative meetings. a. Council Members receive various pieces of information received at the Borough building throughout the month via e-mail transmission. Bajsec, 11-015 Page 3 1. Hard copies of the items forwarded are also available to the Council Members in each Council Member’s mailbox located at the Borough building. b. Council Members routinely receive the meeting agenda and prior month’s minutes via e-mail for review anywhere from two days prior to the meeting to the day of the meeting. 1. Hard copies of the agenda, prior month’s minutes, list of bills, and any items remaining in each Council Member’s mailbox are placed at each Council Member’s seat the night of the workshop meeting. aa. The register of bills provided documents all those bills which have been received at the Borough for payment since the prior monthly legislative meeting. 6. Meeting agendas for upcoming meetings are currently generated by the Borough Secretary/Treasurer. a. The Secretary/Treasurer automatically places any items of which she is aware that require discussion and/or action on the agenda for consideration. b. The Secretary/Treasurer routinely contacts each individual Council Member who chairs a Borough committee (e.g., public works, public safety, etc.) as well as Council President regarding any additional items which require placement on the agenda. c. The agenda is normally presented to Council President for input and approval prior to distribution. d. The Borough Manager was responsible for generation of the agenda from approximately September 2010 through December 2011. 1. The Borough Manager followed the same general procedure regarding generation of the agenda. 2. The Borough Manager position was eliminated by Borough Council at the January 3, 2012, Borough re-organization meeting. 7. Signature authority over Borough accounts is maintained by the Borough Secretary/Treasurer, Council President, the Council Member serving as the Chairman of the Finance Committee, and a third Council Member who is routinely available to sign checks. a. Two signatures are required on all Borough checks. 1. Signatures obtained can be any combination of those individuals holding signature authority. b. The Borough currently requires live signatures on Borough checks. c. Bajsec, as the Chairman of the Finance Committee during his tenure on Council, had signature authority on Borough accounts. 8. From at least December 27, 1991, until the present, the Borough has employed Elizabeth Petalino in various employee positions. Bajsec, 11-015 Page 4 a. Petalino was initially employed in the position of Borough Secretary from December 27, 1991, until October 14, 2010, and has currently held the Borough Secretary position since January 3, 2012. 1. Petalino was not officially employed as the Borough Secretary from approximately October 15, 2010, through January 2, 2012, due to the existence of a Borough Manager position during that time. aa. Petalino was officially employed in a Senior Clerk position from approximately October 15, 2010, through January 2, 2012. b. Petalino has been employed as the Borough Treasurer since at least January 5, 2004. 1. National City Bank served as the Borough Treasurer immediately prior to Petalino’s service as such. c. Petalino has served as the Borough Local Service Tax Collector since January 3, 2000. 9. From December 28, 1991, through January 11, 2006, Petalino was the only full-time individual employed in the Borough office. a. The Borough had an individual providing part-time clerical assistance for Petalino for a limited time frame on two separate occasions between the dates of December 28, 1991, and January 11, 2006. 10. Sandra Lynn Kohlmeyer (a/k/a Lynn Kohlmeyer), a Member of Borough Council from approximately January 3, 2000, through December 31, 2005, was hired by Council on January 12, 2006, as a part-time Administrative Assistant. a. Kohlmeyer’s primary duties were to serve as the Borough’s liaison and point of contact in relation to an Overpass Project and the Borough Parks Program. b. Kohlmeyer’s rate of pay was set at $12.50/hour. c. The hiring of a part-time administrative assistant was documented on the January 12, 2006, meeting agenda. 11. Kohlmeyer began assisting Petalino with limited office duties and learning the responsibilities of the Borough Secretary position while serving as the Administrative Assistant/Borough contact for the Overpass Project and other community related events. a. Kohlmeyer’s main responsibilities revolved around the Overpass Project, the Borough Parks Program, and other Public Relations Events (e.g., the Borough Fourth of July celebration, Parks and Recreation events, etc.). b. Kohlmeyer continued to work for the Borough as a part-time Administrative Assistant once the Overpass Project was completed in or about October 2007. 12. Kohlmeyer’s duties after completion of the Overpass Project continued to primarily revolve around Public Relations and organization of community related events. Bajsec, 11-015 Page 5 a. Petalino performed the majority of the daily administrative duties in the Borough office without assistance from Kohlmeyer. 1. Kohlmeyer provided limited assistance to Petalino regarding traditional office/administrative duties. 13. At the May 14, 2009, regular Borough meeting, a motion was made by Council Member Benjamin Frederick, seconded by Council Member Thomas Brown, to hire Kohlmeyer as a full-time employee in the Borough office retroactive to May 1, 2009. a. The motion passed via a 5-0 unanimous vote with two Council Members absent. b. The motion was made and approved in an effort to assist Kohlmeyer with anticipated medical costs. 1. In or about April 2009, Kohlmeyer was diagnosed with a serious medical condition. c. Kohlmeyer was eligible for Borough provided benefits, including health benefits, upon gaining full-time employment status. 1. As a part-time employee, Kohlmeyer was not eligible for benefits. d. The hiring of Kohlmeyer for a full-time position in the Borough office was documented on the Agenda for the May 14, 2009, regular Borough meeting. 14. After May 14, 2009, Kohlmeyer’s duties as a full-time Borough employee continued to primarily revolve around Public Relations and organization of community related events. a. Kohlmeyer worked full-time hours until approximately June 4, 2010, when a medical condition prevented her from continuing employment. 15. Kohlmeyer passed away unexpectedly on Wednesday, July 7, 2010, while in the hospital. a. Petalino contacted all Members of Borough Council on Wednesday, July 7, 2010, after learning of Kohlmeyer’s passing and informed them of such. 16. Petalino completed the daily tasks associated with the operation of the Borough office without assistance during the period of Kohlmeyer’s absence. a. Petalino received no verbal or written corrective action from any Member(s) of Council regarding any deficiencies in her work performance during Kohlmeyer’s absence. b. Petalino made no specific request(s) to any Council Member or Borough representative for any assistance with work to be performed in the Borough office on a daily basis as a result of Kohlmeyer’s absence. c. Council as a whole had no formal or informal discussion regarding the possibility of replacing Kohlmeyer. 17. Sandra Bajsec is Michael Bajsec’s spouse. Bajsec, 11-015 Page 6 a. Bajsec and Sandra Bajsec reside at and own property located at [residence address redacted]. 18. Sandra Bajsec had not been actively employed in a traditional employment setting/environment from at least January 2000 through mid-July 2010. a. Income earned by Sandra Bajsec was limited to income received as a Jafra Skin Care Consultant. 1. Sandra Bajsec has been employed as a Jafra Consultant since approximately June 2005. 2. Income received by Sandra Bajsec from her employment as a Jafra Consultant varied from month to month based on commission earned. b. Compensation received by Sandra Bajsec was not material to the Bajsecs’ total monthly income. 19. Sandra Bajsec began actively seeking employment in or about July 2010 as a result of financial issues her family was experiencing. a. While in conversation with a Borough resident in Henle Park during or about June 2010, Sandra Bajsec revealed financial concerns the Bajsecs were experiencing at that time. 1. The company for which Michael Bajsec worked had gone out of business. 2. Bajsec began his own business at or about that time as a result of losing his employment. b. Sandra Bajsec revealed that she had incurred considerable medical expenses about May 2010. 20. Sandra Bajsec actively searched and submitted applications for employment at various entities contemporaneous to Bajsec’s loss of employment. a. Sandra Bajsec was unsuccessful in obtaining employment on her own due to the length of time which had passed from her last traditional employment to early to mid-2010. 1. Sandra Bajsec’s last official employment was with Traco Windows (“Traco”) in Cranberry, Pennsylvania. 2. Sandra Bajsec voluntarily left Traco’s employ in January 2000. 21. Upon learning of Kohlmeyer’s death on July 7, 2010, Bajsec subsequently discussed with Roger Nanni, Sandra Bajsec’s availability to fill the position created by Kohlmeyer’s death. a. Bajsec testified to the following during sworn testimony provided to Commission investigators on May 16, 2011: “…When Lynn died, ok, let’s, let’s, let’s look at it, I’m going to, I’m going to take off my Councilman’s hat for a second and I’m going to leave just my businessperson’s hat on.” Bajsec, 11-015 Page 7 “My wife worked for twenty-five years as a Senior Purchasing Agent. She’s well versed in contract law. She was out of the workforce for ten years because I asked her not to work.” “We, we live [location in relation to] the Borough building. She had been volunteering in the office helping out doing different mailings or different things like that and whatnot. When Lynn passed away and I already knew the problems we were in for a lack of policy procedure and thing like that. The first thing my mind went to was hey I know somebody who has all of these qualifications.” “I went to Roger. And I said, Roger, I don’t know if you know this about Sandy. Here’s her background. Here’s her (unknown). Here’s her bona fidities or whatever you want to call it.” “I think she’d be great for that. That’s how, and, and beyond that I don’t know what steps they went through. I wasn’t part of it. I didn’t, I didn’t, I kept out of it because that’s what I needed to do was to stay out of it. I don’t know what else they did. I made my recommendation and I made it as a husband and as a businessperson. That’s why I made it.” 1. “Roger” is a reference to Roger Nanni, President of Council at that time. 2. Nanni’s address is [residence address redacted]. aa. Bajsec’s home and Nanni’s home are located [next] to one another. b. Sandra Bajsec was not performing any volunteer office/administrative type duties in the actual Borough office at or contemporaneous to that time. 22. Bajsec spoke to Nanni before Council as a whole ever addressed the vacancy or discussed how to proceed with the vacancy. a. No discussion occurred among Council as a whole regarding the need to fill the vacancy or how to proceed with filling the vacancy if necessary. 1. The Borough was at that time in the process of filling a newly created Borough Manager position. aa. Once completed, the filling of the Borough Manager position would have increased the Borough Administrative Department to its normal complement of two employees. 2. The Borough had not employed more than two individuals concurrently in an administrative capacity during at least the past eighteen years. b. Bajsec recommended no individuals for the position. 23. Nanni also spoke with Councilman Paul Scimio regarding placing Sandra Bajsec in the vacant position. a. Nanni informed Scimio that Sandra Bajsec was interested in filling Kohlmeyer’s now vacant position. Bajsec, 11-015 Page 8 1. Scimio was a Member of Borough Council at that time. b. Nanni informed Scimio that he had spoken to Sandra Bajsec regarding her interest in the position. 1. Nanni informed Scimio of Sandra Bajsec’s interest at or about the time when Scimio had expressed his interest in the newly created Borough Manager position to Bajsec. aa. Bajsec was a Member of Borough Council at the time that Scimio had initially expressed interest in the Borough Manager position to Bajsec. 24. Following Kohlmeyer’s passing, the Borough took no steps to publicly solicit interest from any individuals regarding the possibility of filling the vacant position in any capacity (e.g., part-time, full-time, temporary, etc.). a. No public advertisement was placed in the Borough circular of record or any other publication identifying the vacancy, any potential intent to fill the vacancy, any potential time frame by which the vacancy may be filled, or the acceptance of applications/resumes. b. No information was posted at the Borough office identifying the vacancy, any potential intent to fill the vacancy, any potential time frame by which the vacancy may be filled, or the acceptance of applications/resumes. c. No applications/resumes were solicited and/or accepted for the vacancy. d. No interviews were conducted for the vacancy. 25. On July 15, 2010, eight days after Kohlmeyer’s passing, Council took action to hire Sandra Bajsec and to advertise for a Borough Manager. a. Neither motion was on the agenda for the meeting. b. Both motions were presented under “New Business” in official Borough meeting minutes. c. The motion to advertise for applicants for the newly created manager position was made by Bajsec and passed by a unanimous vote. d. Bajsec made the motion to advertise for applicants at a time when Scimio had expressed his interest in the Borough Manager position in conversation with Bajsec. e. The Borough Manager position was ultimately filled by the appointment of Council Member Paul Scimio at the August 12, 2010, regular Borough meeting. 1. Bajsec was a member of the Interview/Selection Committee for the Borough Manager position. 2. Bajsec endorsed Scimio for the position, made the motion to appoint Scimio to the position, and voted in favor of placing Scimio into the position at the August 12, 2010, Borough meeting. Bajsec, 11-015 Page 9 26. The next immediate motion presented at the July 15, 2010, regular Borough Council meeting under “New Business” was made by Scimio, seconded by [Council Member Osman] Awad, to hire Sandra Bajsec for part-time clerical help in the office at $12.50 per hour. a. Borough minutes of the July 15, 2010, meeting document Bajsec’s presence at the meeting. b. The motion to hire Sandra Bajsec passed 6-0-1 with Bajsec abstaining from the vote to hire Sandra Bajsec. c. The agenda for the July 15, 2010, regular Borough Council meeting did not include the subject of hiring any individual, including Sandra Bajsec, to work in the Borough office in any capacity. 1. The Borough Secretary at the time was not contacted by any Member of Borough Council and requested or directed to place the advertising for applicants for the position of part-time Borough Clerk on the agenda. d. Kohlmeyer’s position was filled by the hiring of Sandra Bajsec eight days after Kohlmeyer’s death. e. Sandra Bajsec had no employment experience in local government operations at the time that Sandra Bajsec was hired. f. No other individuals were considered for the position. 27. Four of the seven Council Members in office on July 15, 2010, were neither aware of the intent to hire any individual in a part-time clerical capacity nor aware that Sandra Bajsec was being considered for the position prior to the vote to [hire her]. a. During an interview with a Commission investigator on August 4, 2011, and March 9, 2012, Council Member Wesley James testified to the following: 1. James had no discussion(s) of any kind with any Borough representative(s) regarding the replacement of Kohlmeyer upon learning of Kohlmeyer’s passing; 2. James was not contacted nor did James participate in any discussion(s) with any other Council Members (either singularly or collectively) regarding filling Kohlmeyer’s position or the need to do so; 3. James was not presented with any information from any Council Member(s) that Kohlmeyer’s vacancy was to be filled at the July 15, 2010, meeting; and 4. James had no knowledge of how Sandra Bajsec came to be considered for the position. b. During an interview with a Commission investigator on December 19, 2011, Council Member Thomas Brown testified to the following: 1. Thomas had no knowledge that filling the vacant position was to be discussed or considered prior to coming to the meeting; Bajsec, 11-015 Page 10 2. Thomas had no knowledge that Council intended to hire anyone at the July 15, 2010, regular Council meeting; 3. Thomas had no knowledge of how Sandra Bajsec came to be the individual who was considered/chosen for the position; 4. Thomas was not contacted, nor did Thomas participate in any discussion(s) with any other Council Members (either singularly or collectively), regarding filling Kohlmeyer’s position or the need to do so; and 5. Thomas was surprised when the motion was made to hire Sandra Bajsec at the July 15, 2010, regular Council meeting due to the fact that the motion was made so quickly after Kohlmeyer’s passing. c. During an interview with a Commission investigator on December 19, 2011, Council Member Benjamin Frederick testified to the following: 1. Frederick recalled no discussion with any Borough Council Members between the dates of July 7, 2010, and July 15, 2010, regarding the need to hire a replacement for Kohlmeyer; 2. Frederick recalled no discussions prior to the vote being taken at the July 15, 2010, regular Council meeting regarding hiring a replacement for Kohlmeyer; and 3. Frederick had no knowledge regarding how Sandra Bajsec came to be the individual chosen for consideration to fill the vacant position. d. During an interview with a Commission investigator on December 19, 2011, Council Member Osman Awad testified to the following: 1. Awad had no recollection of participating in any conversations with any other Members of Council at any time between July 7, 2010, and July 15, 2010, in relation to the vacant position; 2. Awad had no recollection of participating in any conversations with any individuals between July 7, 2010, and July 15, 2010, regarding the need to replace Kohlmeyer immediately; and 3. Awad had no recollection of how Sandra Bajsec came to be considered for the position. 28. The position for which Sandra Bajsec was hired was not publicly advertised. a. Sandra Bajsec was the only individual considered. b. The motion to hire Sandra Bajsec was made by Councilman Scimio after Bajsec made the motion to advertise for the Borough Manager position. c. Bajsec subsequently voted to hire Scimio as Manager approximately one month later at the August 12, 2010, meeting. 29. Sandra Bajsec’s first day of work for the Borough was July 19, 2010. a. Sandra Bajsec’s schedule was initially proposed to total approximately twenty-four hours per week (three eight-hour days). Bajsec, 11-015 Page 11 1. Sandra Bajsec’s initial weekly hours were set by Nanni. 30. Although hired as a part-time employee to work twenty-four hours per week, Sandra Bajsec’s hours worked per pay period (two-week period) increased to full-time hours in September 2010 as shown below: Pay Period Regular Hours Extra Hours Total Hours 07/17/2010---07/30/2010 56.0 0.0 56.0 07/31/2010---08/13/2010 63.0 0.0 63.0 08/14/2010---08/27/2010 78.5 1.5 80.0 08/28/2010---09/10/2010 72.0 0.0 72.0 09/11/2010---09/24/2010 76.5 0.0 76.5 09/25/2010---10/08/2010 80.0 6.0 86.0 10/09/2010---10/22/2010 80.0 3.0 83.0 a. Sandra Bajsec was supervised directly by Nanni as the President of Council. 1. Even though employed as part-time clerical help, Sandra Bajsec did not report to the Secretary/Treasurer. 31. Sandra Bajsec’s work hours gradually increased from 63 hours per pay period up to 80 hours per pay period after Paul Scimio began working as the full-time Borough Manager on August 23, 2010. a. No more than two full-time employees were utilized at the same time in the Borough Administrative Department for at least the past twenty years. b. Scimio had oversight responsibility for Sandra Bajsec after being named Borough Manager. 32. After Scimio began employment as the Borough Manager, questions arose among Borough representatives if keeping minutes of Borough Council meetings was the lawful responsibility of the Borough Manager or the Borough Secretary. a. Scimio ultimately requested an opinion from Attorney Richard F. Start, then Borough Solicitor, regarding the appropriate person (Secretary or Manager) to take minutes of the Borough meetings. 33. Start provided a written response to Scimio, dated August 31, 2010, regarding the topic which documented the following: a. The Borough Code, 53 P.S. § 4611, described the duties of the Borough Secretary, which included “…keep full minutes of its proceedings…”; b. The provision noted conflicted with the provisions . . . of the Borough Manager Ordinance; c. The Borough Code superseded the Borough Manager Ordinance because it was a State Statute; and d. Only in the event that the Borough Secretary position was abolished or became vacant would the provisions . . . of the Borough Manager Ordinance regarding the keeping of minutes become operative. 34. Subsequent to receipt of the Solicitor’s August 31, 2010, opinion, Nanni and Bajsec decided to institute a restructuring of the Borough Administrative Department which would allow for the transfer of the statutory duties of the Borough Secretary to Bajsec, 11-015 Page 12 Scimio as Borough Manager and allow for the establishment of two new administrative office positions. a. The restructuring was to include the determination/distinction and assignment of duties to be performed by the Borough Manager which had previously been completed by the Borough Secretary. b. The restructuring was also to involve the research of positions present in similar municipalities, wages received in the positions, etc. c. The Borough Auditors had also recommended a restructuring and cross- training of Borough administrative personnel. 35. No additional Council Members other than Bajsec and Nanni were involved in the concept to restructure the Borough Administrative Department. a. Bajsec was involved in conversations with Nanni regarding the restructuring of the Borough Administrative Department at a time when his spouse was employed in the Administrative Department in a part-time capacity. b. Bajsec was an active participant in meetings with Nanni and Start regarding the restructuring of the Borough Administrative Department at a time when his spouse was employed in the Administrative Department in a part-time capacity. c. Bajsec and Nanni met with Solicitor Start on at least two occasions (October 7, 2010, and October 12, 2010) to discuss the potential restructuring of the Borough Administrative Department. 1. Start’s Solicitor billings confirm the meetings. 36. Bajsec, as Financial Chairman, was the Council Member primarily responsible for completion of the research for the restructuring of the Administrative Department as related to determination of positions needed, position status (e.g., part-time or full- time), position wages, etc. a. Nanni’s involvement in the restructuring was limited to initiating the idea and discussing the subject with Bajsec and ultimately with Solicitor Start. b. No additional Council Members were involved in any significant research for the restructuring. 1. No additional Council Members were aware of the intent to present the motion to restructure the Administrative Department until Bajsec presented the subject in executive session at the October 14, 2010, regular meeting. 37. The agenda for the October 14, 2010, regular meeting of Borough Council did not mention the restructuring of the Borough Administration. a. Bajsec and Nanni were aware of the intent to present the restructuring and accompanying motions as early as October 12, 2010. 38. An executive session was convened by Council approximately five minutes after the October 14, 2010, regular meeting was called to order. Bajsec, 11-015 Page 13 a. Minutes of the October 14, 2010, regular meeting document Bajsec’s presence at the meeting. b. Minutes of the October 14, 2010, regular meeting document a motion by Bajsec, seconded by Frederick, to adjourn to executive session at approximately 7:05 p.m. for personnel reasons. 1. The personnel issues to be discussed included employment and compensation for Bajsec’s spouse, Sandra Bajsec. 39. During the executive session, Bajsec presented his intention to make a motion in the regular public session for the restructuring of the Borough Administrative Department and presented his recommendation/proposal for the restructuring. a. Bajsec and Nanni made the presentation and recommendation in the executive session. 1. Bajsec presented changes to be made to the Administrative Department, including the abolishment of the Borough Secretary position, reassignment of traditional Borough Secretary duties to the Borough Manager, the establishment of two clerical positions, and the nature of the positions. 2. Bajsec proposed recommended salaries for the new positions and verified that he had personally researched the salaries associated with the Borough Secretary positions. b. Bajsec relayed the information and his recommendation to Council at the executive session based on the research he had conducted and from three previously prepared documents by Solicitor Start. 1. The documents were prepared by Start. c. Bajsec explained that Sandra Bajsec was to be offered the Junior Clerk position and Petalino (then Borough Secretary) was to be offered the Senior Clerk position. 1. Bajsec specifically stated that Sandra Bajsec’s salary was to remain at $26,000.00 annually in association with the restructuring. aa. Sandra Bajsec’s wage of $12.50 per hour as the part-time Borough Clerk equated to an annual salary of $26,000.00 based on a forty hour work week. bb. Sandra Bajsec’s wage was not to change in association with the offer of employment as the Borough Junior Clerk. 2. Bajsec specifically stated that Petalino’s salary was to be reduced to $37,500.00 annually in association with the restructuring. aa. Petalino’s wage as the Secretary/Treasurer as of October 14, 2010, was approximately $21.89 per hour ($45,671.00 annually). bb. Petalino’s wage was to be reduced by approximately $8,171.00 in association with the offer of employment as the Borough Senior Clerk. Bajsec, 11-015 Page 14 c. Council reconvened the regular session at approximately 7:19 p.m. 40. The restructuring of the Borough office and administrative personnel as discussed during the executive session was initiated under the “New Business” portion of the October 14, 2010, regular Borough meeting. a. The agenda for the October 14, 2010, meeting documented no items for discussion under “New Business.” 41. Bajsec presented a motion for vote at the October 14, 2010, regular Borough meeting from one of the prepared documents, seconded by Frederick, to restructure the Borough’s Administrative Office as follows: a. To abolish the separate office of Borough Secretary and to incorporate the statutory duties of the Office of Borough Secretary with the duties of the Borough Manager; b. To appoint the Borough Manager as the Open Records Officer; c. To not provide any increase in compensation or benefits to the Borough Manager as a result of the restructuring; and d. To establish two clerical positions titled Senior Clerk and Junior Clerk with compensation payable for the Senior Clerk set at $37,500.00 per year and compensation payable for the Junior Clerk set at $26,000.00 per year with duties of both positions to be clerical and financial in nature. 1. The duties associated with the positions were to be specifically defined in the policies and procedures being developed at that time. 2. Individuals in both positions were to report to the Borough Manager. 3. Both the Senior Clerk and Junior Clerk positions were established as full-time positions although not specified within the motion. aa. The intent was that both positions were to be full-time positions. 42. At the time Bajsec presented the above motion to establish the Senior and Junior Clerk positions and the salaries for the positions, Bajsec had in his possession a prepared motion for subsequent reading which documented the offer of employment to Sandra Bajsec for the Junior Clerk position. 43. During the October 14, 2010, meeting, Bajsec provided two documents, prepared by the Borough Solicitor, with prepared motions to Councilman James for James to present to Council for consideration. a. Bajsec gave the documents to James prior to the vote on Bajsec’s restructuring motion. b. James sat to Bajsec’s immediate left at the Council table at that time. c. James interpreted Bajsec’s actions to be representative of Bajsec’s desire for James to present the remaining motions after the vote on the restructuring motion occurred. Bajsec, 11-015 Page 15 d. The documents were motions to offer Petalino the Senior Clerk position and Sandra Bajsec the Junior Clerk position. 44. The October 14, 2010, [motion] to restructure the Borough office and administrative personnel was approved by a 5-1 vote of Council Members present. a. Bajsec voted in favor of the motion to restructure the Borough office and administrative personnel. 1. Bajsec voted in favor of the restructuring which included the establishment of a full-time Junior Clerk position at a time when Bajsec had provided a prepared document to James for presentation which detailed a motion to offer Bajsec’s spouse the newly created Junior Clerk position. 2. Bajsec voted in favor of the restructuring which included the establishment of a full-time Junior Clerk position at a time when Bajsec had a reasonable expectation that his spouse would be offered and accept the position. 3. At the time of the restructuring vote in which he participated, Bajsec had in his possession a written motion to offer the newly created full- time Junior Clerk position to his wife. b. James cast the lone dissenting vote to the motion. 1. James dissented due to the fact that the approved salary for the Senior Clerk position to be offered to Petalino established a wage for Petalino of approximately $8,171.00 less than she had been earning as the Borough Secretary/Treasurer. 45. Bajsec retrieved the prepared motions from James after James voted against the restructuring of the Borough office and administrative personnel. a. Bajsec then motioned, seconded by Frederick, to offer the position of Senior Clerk to Petalino in addition to Petalino maintaining her position as Borough Treasurer and Local Services Tax Collector. 1. Bajsec read the motion as memorialized on the prepared document. 2. The motion to offer the position to Petalino passed via 6-0 unanimous vote. 46. After the vote to appoint Petalino as Senior Clerk, James reached for and took the document from Bajsec on which the prepared motion to offer the Junior Clerk position to Sandra Bajsec was memorialized. a. James motioned, seconded by Awad, to offer the Junior Clerk position to Sandra Bajsec. b. The motion to offer Sandra Bajsec the Junior Clerk position passed by a 5-0- 1 vote of Council. 1. Bajsec abstained from the vote. c. The motion to hire Sandra Bajsec as Junior Clerk was in Bajsec’s possession immediately prior to being read by James. Bajsec, 11-015 Page 16 47. Bajsec’s intent at the October 14, 2010, meeting was to have another Member of Council make the motion to offer the position to Sandra Bajsec as Junior Clerk. a. James read the prepared motion to appoint Sandra Bajsec as Junior Clerk because he knew Bajsec could not make the motion without having a conflict of interest. b. James would not have made the motion to offer Sandra Bajsec the Junior Clerk position if he had not been provided with the prepared motion documenting such. 48. Sandra Bajsec was formally offered the full-time position of Junior Clerk for Leetsdale Borough at a salary of $26,000.00 per year via correspondence dated October 15, 2010. a. The correspondence identified the “creation” of the position at the October 14, 2010, meeting, the position title, its full-time classification, and the annual salary for the position. b. The correspondence provided a section for Sandra Bajsec to sign in order to accept or reject the position. 1. Sandra Bajsec acknowledged her acceptance of the position via signing and dating the correspondence on October 15, 2010. 49. Nanni announced during the audience participation portion of the November 11, 2010, regular Borough meeting that the Senior and Junior Clerk positions were newly created positions and not changes in position titles. a. In response to a citizen question regarding the justification for the reduction in Petalino’s salary, Nanni stated that Council did not reduce Petalino’s salary or demote Petalino. 1. Nanni claimed that Petalino was offered a new position at a different rate of pay. b. Additional discussion occurred at which point Nanni stated that Council had created a new position and had eliminated another position. 50. Citizens in attendance at the November 11, 2010, meeting questioned the advertising of and qualifications for the Junior Clerk position, who made the decision to hire Sandra Bajsec, and what criteria were used in the hiring. a. Nanni responded that there was no advertisement for the position and that the prior employee (Kohlmeyer) had been replaced. b. Nanni claimed that “Council” had hired Sandra Bajsec and that Council was looking for someone to “help out” after Kohlmeyer passed away. c. Citizen comment during the audience participation portion of the November 11, 2010, meeting also questioned why other individuals who may have been interested in the position were not given the chance to interview. 1. No response to the comment was provided by any Members of Borough Council. Bajsec, 11-015 Page 17 51. Bajsec publicly acknowledged his role in the restructuring of the Borough office and administrative personnel and that he recommended his spouse for initial part-time employment with the Borough at separate points during the audience participation portion of the December 7, 2010, workshop meeting. a. Bajsec responded to a request from resident Joseph McGurk to restore Petalino’s wages to what they previously were as follows: 1. The funds were available to put back and the reduction in salary was never punitive or budget related. 2. Bajsec looked at forty-one municipalities similar to the Borough in either population or budget size in researching the realigning of the duties. aa. Bajsec restricted budget comparisons to municipalities with budgets greater than one million dollars but no greater than five million dollars and discovered that the average salary for a senior clerical position in the municipalities referenced was $32,000.00. 3. Bajsec did not believe the $32,000.00 wage figure was fair and Bajsec was the individual that formulated the proposed wage amounts. aa. Bajsec informed Council in executive session where the numbers came from and did not think the average Senior Clerk wage was fair because Petalino had been with the Borough for nineteen years regardless of what every other municipality was paying. b. Bajsec later referenced in the audience participation portion of the meeting that comments had been made from the audience at prior meetings regarding Sandra Bajsec’s employment with the Borough to which Bajsec responded as follows: 1. Bajsec stated that his wife was well trained in what she does, that she had twenty-five years experience in the purchasing department for companies like Traco Windows, and that the Junior Clerk position was a “huge step down for her” but it was close to their house and she liked to contribute to the community. 2. Bajsec further stated that, “…All I did was suggest that maybe she would be a good catch, a good person who would fill this slot that was going to be filled anyway.” 52. Although Bajsec claimed the position was a “huge step down” for his spouse, Bajsec expressed interest in the position on Sandra Bajsec’s behalf within seven days after Kohlmeyer had died. a. No other individuals were provided the knowledge that the Borough intended to replace Kohlmeyer or the opportunity for consideration. b. At that time, Sandra Bajsec had not secured employment with any company/business other than the Borough. Bajsec, 11-015 Page 18 53. Sandra Bajsec was initially hired as a part-time Borough employee as a result of Nanni’s conversations with her. a. Absent Bajsec’s position on Borough Council, Sandra Bajsec had no independent means by which to know that Kohlmeyer’s position may be filled. b. No other individuals were given the opportunity for consideration of employment with the Borough. c. Bajsec made the initial suggestion to consider his wife at a time when the Bajsecs were experiencing financial difficulties. d. Bajsec’s spouse was hired as a Borough employee within 4 months of his taking office as a Borough Councilman; prior to that time she had no other employment. 54. Bajsec and Sandra Bajsec currently maintain signature authority over an account at Clearview Federal Credit Union (“FCU”). a. Bajsec and his spouse maintain joint signature authority for this account. 1. A Savings Account and a Free Checking Account exist in association with this account. b. This account is the Bajsecs’ primary shared personal account. c. Bajsec also maintains sole signature authority over two accounts at First Commonwealth Bank. d. One account is classified as a Home Free Checking Account in Bajsec’s name. 1. This account documented limited activity in relation to funds deposited and withdrawn between the dates of December 28, 2009, and January 26, 2012. aa. From December 28, 2009, through January 26, 2012, deposits totaling $3,509.72 and expenses totaling $3,365.87 were made to and withdrawn from the account, respectively. e. The other account is classified as a Free Business Checking Account in the name of MSB Funding, Michael Bajsec, Jr. Proprietor. 1. This account was opened on April 29, 2010, in conjunction with Bajsec starting his own business. aa. From April 29, 2010, through January 31, 2012, deposits totaling $53,138.33 and expenses totaling $53,137.73 were made into and withdrawn from the account, respectively. 55. During or about the time frame of September 1, 2010, to December 1, 2010, Bajsec, along with Nanni and Scimio, participated in the development of separate Agreements for the Public Works Department as well as the Administrative Department which resulted in pay increases for Borough employees, including Sandra Bajsec. Bajsec, 11-015 Page 19 a. Bajsec took the lead to update the prior Public Works Agreement as well as create an Agreement for Administrative Department employees. b. The language and format of the new Agreements were based on prior Public Works Agreements. c. These agreements resulted in a 3% pay increase for all Non-Uniformed Borough employees, including Sandra Bajsec. 56. Prior to December 2010, no agreement had ever existed for administrative employees. a. Bajsec had previously testified under oath for a separate Commission matter of his desire to implement a current Public Works Agreement and to develop a similar Agreement for the Administrative Department in an effort of fairness. b. Bajsec testified under oath as follows: -- He was the individual who worked on the Administrative Agreement to ensure that the administrative side of things of the actual document was taken care of and prepared properly. -- He was the individual who actually developed and put together the Administrative Agreement. -- Borough Manager Scimio may have acted as his typist for a number of things. -- In reference to development and putting the document together Bajsec testified, “But yeah, it was me.” 57. Sandra Bajsec was part of the Administrative Department as the full-time Junior Clerk at the time when Bajsec participated in the development of the Administrative Agreement. 58. Included in the Administrative Agreement developed by Bajsec, Nanni and Scimio, among other terms and conditions, was a three percent (3%) wage increase per year for each Administrative Department employee for the effective term of the Agreement as well as information on Administrative employee bonuses to be received. a. The Agreement noted the effective salary of the Junior Clerk as $26,780.00 annually effective January 1, 2011. 1. The wage documented in the Administrative Agreement as effective January 1, 2011, represented a three percent increase in the wage approved for the Junior Clerk (e.g., Sandra Bajsec) at the October 14, 2010, meeting. b. The Agreement called for a bonus of $350.00 to be issued to each st Administrative Department employee on or about December 1 of each year with increases of an additional $25.00 every two years for the length of the Agreement. Bajsec, 11-015 Page 20 c. The wage increases and bonuses called for via the Administrative Agreement, including Sandra Bajsec’s, were equivalent in percentage and amount respectively to those documented in the Public Works Agreement. 59. At the December 9, 2010, regular Borough meeting, a motion was made by Frederick, seconded by Bajsec, to accept the Public Works Labor Agreement and the Administrative Staff Agreement. a. The motion passed unanimously 5-0 with Brown and Council Member Robert Cobourne absent. 1. Bajsec voted in favor of the motion. b. No discussion occurred at the December 9, 2010, meeting or any other Council meetings in 2010 regarding the terms of the agreements. 60. Although specifically approved at the December 9, 2010, regular Council meeting, the Administrative and Public Works Department Agreements were signed by Borough officials on December 1, 2010. a. The Administrative Agreement was signed by Nanni as Council President and attested to by Bajsec on behalf of Council. b. The Public Works Agreement was not signed by any Member of Council on Council’s behalf. 1. The Public Works Agreement was attested to by Scimio as the Borough Manager. c. No public meeting of any kind was held by Council on December 1, 2010. 61. Sandra Bajsec received varying bi-weekly wages in her part-time capacity and received bi-weekly wages as the full-time Junior Clerk in the amount of $1,000.00 (gross) in calendar year 2010 and $1,030.40 (gross) in calendar year 2011. a. Sandra Bajsec’s bi-weekly compensation at times included reimbursement for a cellular telephone allowance beyond her Junior Clerk salary. b. Most of Sandra Bajsec’s wages were deposited into her and Bajsec’s shared account at Clearview FCU. 1. Sandra Bajsec did have some monies direct deposited to a SHACOG account. 62. From August 5, 2010, through January 17, 2012, Sandra Bajsec received forty-one payments from the Borough totaling $39,800.66 (gross) in compensation received in association with her position as the part-time clerk/Junior Clerk. a. Gross wages are representative of Sandra Bajsec’s salary only (regular and overtime when applicable). 1. Gross wages noted do not include reimbursement for any cell phone allowance or any other reimbursements received. c. All funds received by Sandra Bajsec as wages for service as a Borough employee were electronically deposited directly into the Bajsecs’ account at Clearview FCU with the exception of the August 19, 2010, deposit, the Bajsec, 11-015 Page 21 December 3, 2010, Christmas Bonus deposit, and the November 23, 2011, Christmas Bonus deposit as well as funds deposited directly into the Bajsecs’ SHACOG account. 1. Sandra Bajsec was issued physical Check Number 11032 dated August 19, 2010, in the amount of $692.57 from the Borough General Fund as wages for service as a part-time clerk. 2. Sandra Bajsec was issued physical Check Number 11358 dated December 3, 2010, in the amount of $301.69 from the Borough General Fund representative of the 2010 bonus. aa. Check number 11358 was deposited into the Bajsecs’ Savings Account (Suffix 0000) at Clearview FCU. 3. Sandra Bajsec was issued physical Check Number 13205 dated November 23, 2011, in the amount of $313.70 from the Borough General Fund representative of the 2011 bonus. d. Sandra Bajsec received payment on December 20, 2011, for forty hours of accumulated vacation time in addition to her regular hours worked for the applicable pay period. 1. The Administrative Agreement documented no information regarding the permissibility or impermissibility of receiving pay-out for vacation time accrued. 2. Minutes of the December 8, 2011, January 10, 2012, and January 11, 2012, Borough meetings document no presentation, vote, or approval to pay anyone for unused vacation days accrued. aa. Documented on Sandra Bajsec’s Daily Attendance Record for 2011 was, “…V 40 pay in lieu per p. scimio.” 63. In addition to her compensation as Junior Clerk, Sandra Bajsec was also provided health insurance benefits at Borough expense. 64. The Borough currently offers various benefits to full-time employees through the Municipal Employers Insurance Trust (“MEIT”) under Group No. 0223-048700. a. MEIT is a multiple employer group insurance trust specializing in the needs of municipalities, authorities, and councils of government throughout Pennsylvania. b. Benefits offered through MEIT include medical benefits, dental benefits, vision benefits, disability income, and life insurance. c. From at least October 2010 through December 31, 2010, Borough employees were enrolled in the Keystone Blue HMO Plan. d. Effective January 1, 2011, through the present, Borough employees have been enrolled in the Healthy Savings PPOBlue Q$1,500 Qualified High Deductible Health Plan. 65. Actual benefits offered to Borough employees through MEIT include health care, dental, vision, term life insurance, accidental death insurance and weekly disability income. Bajsec, 11-015 Page 22 a. All full-time Borough employees are eligible to receive benefits as provided by the Borough through MEIT. b. Borough employees are eligible for receipt of benefits as of their effective date of hire. 1. Coverage offered by the Borough extends to the employee’s eligible family members. c. The entire monthly premium associated with employee benefits received is paid by the Borough. d. Premium costs associated with each individual employee vary dependent upon the number of family members covered via each employee’s plan. 1. The Borough pays all premium costs associated with the coverage for each employee and his/her eligible family members. 66. Sandra Bajsec was eligible to receive benefits offered by the Borough through MEIT in her position of full-time Junior Clerk as a result of the restructuring of the Borough office and administrative personnel. a. Sandra Bajsec obtained Borough provided benefits for Bajsec and herself effective November 1, 2010. b. Sandra Bajsec maintained Borough provided benefits for Bajsec and herself at all times from November 2010 through January 2012. c. Sandra Bajsec’s enrollment application documented the reason for the application as, “NEW HIRE.” 1. Sandra Bajsec’s signature and the date of October 25, 2010, appear on the application. d. Bajsec and his spouse did not have health insurance benefits for at least six months prior to Sandra Bajsec’s hiring as the full-time Junior Clerk. 67. MEIT, currently through CW Breitsman Associates, invoices/bills Leetsdale Borough monthly for payment of premiums due in association with insurance benefits provided to Borough employees. a. From at least November 2010 through December 2011, the Borough Manager reviewed and initialed invoices upon receipt, including MEIT invoices, to signify the Borough’s receipt of the invoice/bill and his review of the information documented on the invoice/bill. 1. The Borough Manager then forwarded the invoice to the appropriate department head for additional review and initialing. 2. Once reviewed by the department head, the invoices/bills were presented to the Chairman of the Finance Committee for final review and verification. b. Any administrative and/or general government invoices/bills received were presented directly to the Chairman of the Finance Committee by Scimio for Bajsec, 11-015 Page 23 additional review, verification, and initialing prior to placement on the list of bills to be approved. 1. The Chairman of the Finance Committee served as the de facto department head for the Borough Administrative Department. c. Bajsec served as the Chairman of the Finance Committee at all times during the time frame of November 2010 through December 2011. 68. The Borough received a total of fifteen invoices from MEIT/CW Breitsman spanning the coverage months of November 2010 through January 2012, which documented Sandra Bajsec’s receipt of insurance benefits through the Borough. a. Bajsec initialed seven of the invoices received for placement on the list of bills to be approved in his position as Chairman of the Finance Committee. b. The remaining seven invoices bore neither Bajsec’s signature nor the signature of the Borough Manager. 69. Sandra Bajsec, as the Junior Clerk, received multiple benefits (health care, dental, insurance, etc.) from the Borough during the time period of November 2010 through January 2012 valued at approximately $15,947.87. a. Sandra Bajsec’s insurance coverage through the Borough is first documented on the MEIT invoice received by the Borough for coverage month December 2010. 1. Although first documented on the MEIT invoice received for December 2010, the December 2010 invoice documented Sandra Bajsec having been added for coverage as of November 2010. 2. The Borough payment issued for the December 2010 coverage month documented payment of premiums associated with Sandra Bajsec’s coverage for December 2010 and a retroactive payment for November 2010 as well. b. The cost to the Borough associated with Sandra Bajsec’s premium dropped as a result of the change in health care plans from the Keystone Blue HMO Plan to the Healthy Savings PPOBlue Q$1,500 Qualified High Deductible Health Plan. c. The value of benefits received by Sandra Bajsec was based on the premium paid by the Borough for Sandra Bajsec’s coverage plan. 70. Bajsec, as a Member of Borough Council, actively participated in votes of Council to approve the payment of various monthly bills, including payment to MEIT for insurance benefits received through Sandra Bajsec’s Borough employment. a. Bajsec was present for and voted to approve the list of bills which documented payment to MEIT for insurance benefits, including benefits received by Bajsec and Sandra Bajsec as a result of her full-time Borough employment, on ten out of fourteen possible instances. 1. Bajsec was absent from the August 11, 2011, regular meeting of Borough Council. Bajsec, 11-015 Page 24 2. Borough Council held no legislative meeting in April 2011 due to the lack of a quorum. b. Bajsec signed thirteen of the fourteen checks written to MEIT for payment of insurance premiums as an authorized Borough signatory, which resulted in Bajsec’s and Sandra Bajsec’s, among others, receipt of Borough provided benefits. 71. At the January 3, 2012, Borough reorganization meeting, changes were instituted in relation to the Borough office and personnel in the Administrative Department. a. The majority on Council changed as a result of the 2011 General Election. 1. A number of Council Members, including Bajsec, were voted out of office. b. Borough Council voted to repeal the Agreement, dated December 1, 2010, between the Borough and the Leetsdale Administrative Department as illegal and inconsistent with Section 1005(1) of the Borough Code. 1. The vote to repeal the Agreement was approved via 7-0 unanimous vote. c. Borough Council voted to dissolve all positions of the Leetsdale Administrative Department as described in the December 1, 2010, Agreement between the Borough and the Leetsdale Administrative Department. 1. The vote to dissolve the positions was approved via 7-0 unanimous vote. d. Borough Council voted to authorize the Solicitor to negotiate an Employment Agreement with Petalino as Borough Secretary and to terminate the position of Borough Manager and Junior Clerk effective immediately. 1. The vote to negotiate an Employment Agreement with Petalino and terminate the position of Borough Manager and Junior Clerk passed via 5-2 majority vote. aa. Nanni and Awad voted in opposition to the motion. e. Bajsec did not participate in the above actions of Council. 1. Bajsec’s term on Council ended as of December 31, 2011. 72. Sandra Bajsec provided a sworn statement to Commission investigators on March 13, 2012, during which Sandra Bajsec testified, among other information, to the following: a. Sandra Bajsec never gave/supplied the Borough or any Borough representative with any kind of documentation expressing interest in the position. b. In May of 2009 or 2010 Sandra Bajsec had a conversation with Petalino during which Sandra Bajsec informed Petalino that she had recently experienced a medical concern; that she and Bajsec had no medical insurance; that she was going to make arrangements to make minimum Bajsec, 11-015 Page 25 payments; that she was going to try to find a job; and that Bajsec’s business was not doing well. 1. Information obtained during the course of investigation indicated that the conversation with Petalino took place in May 2010. c. Sandra Bajsec had applied for different jobs but was unable to obtain employment because of the amount of time which had passed since her last employment with Traco. 73. Bajsec provided a sworn statement to Commission investigators on April 9, 2012, during which Bajsec testified, among other information, to the following: a. Bajsec and Nanni had a conversation on Bajsec’s front porch during which Bajsec described Sandra Bajsec’s employment experience and recommended that Nanni speak to Sandra Bajsec regarding employment in the Borough office. b. Bajsec recommended no other individuals for the position. c. Sandra Bajsec had no experience working in a local municipal office setting. d. Bajsec was involved in conversations with Nanni early on in the restructuring planning that Sandra Bajsec’s salary was not to change in the new Junior Clerk position. e. Bajsec had been advised as early as July 2010 by the Borough Solicitor to distance himself from anything specific to Sandra Bajsec’s position. f. The two positions established at the October 14, 2010, regular meeting were newly created positions different from those previously held by Sandra Bajsec and Petalino. 1. Sandra Bajsec’s responsibilities were to be expanded in the newly created Junior Clerk position. 2. Petalino’s responsibilities were to be reduced in the newly created Senior Clerk position. g. Bajsec was aware that the Junior Clerk position was to be a full-time position and that Sandra Bajsec was to be offered the Junior Clerk position prior to his making the motion at the October 14, 2010, Council meeting which effectively created the new Junior Clerk position. h. Bajsec voted to approve the creation of a full-time Junior Clerk position with the knowledge that the position was subsequently to be offered to Sandra Bajsec. i. Sandra Bajsec was eligible for Borough sponsored benefits once employed in the Junior Clerk position. 1. It was Bajsec’s understanding that the only difference between full- time and part-time in the Borough was the fact that full-time employees were eligible for Borough sponsored benefits. Bajsec, 11-015 Page 26 THE FOLLOWING FINDINGS RELATE TO THE ALLEGATION THAT BAJSEC FAILED TO FILE A STATEMENT OF FINANCIAL INTERESTS BY MAY 1, 2012, FOR CALENDAR YEAR 2011. 74. Statement of Financial Interests (“SFI”) filing requirements for public officials and public employees are mandated by Section 1104 of the State Ethics Act. a. Section 1104(a) mandates, in part, the following: “…Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position.” 1. Bajsec was required to file a Statement of Financial Interests by May st 1 annually and the year after leaving office in his position as a Member of Leetsdale Borough Council. 75. On March 2, 2011, a Statement of Financial Interests Compliance Review was conducted regarding SFIs on file for public officials and public employees of Leetsdale Borough. a. The actual review was conducted at the Commission’s Pittsburgh Regional Office. b. Applicable documents required for the review had been obtained on February 28, 2011, from Scimio in his capacity as the Borough Manager at that time. 76. The results of the review were presented to Scimio and Bajsec in the conference room of the Commission’s Pittsburgh Regional Office on March 30, 2011. a. Filing requirements, including the need for public officials to file an SFI the year after leaving office representative of the prior calendar year, were explained to Scimio and Bajsec during the review. 77. Bajsec’s term on Leetsdale Borough Council expired as of December 31, 2011. a. Bajsec was required to file an SFI with Leetsdale Borough by May 1, 2012, representative of the 2011 calendar year. 78. The responsibility for the timely filing of SFIs in relation to an individual’s elected/appointed office is borne solely by the elected/appointed official. a. The governmental entity for which the elected/appointed official serves or served is not responsible to ensure that current public officials and/or individuals recently separated from public office file SFIs. 79. On May 2, 2012, Bajsec’s Statement of Financial Interests … for the 2011 calendar year was requested from Leetsdale Borough. a. Leetsdale Borough was unable to locate any SFI for Bajsec filed in 2012 representative of the 2011 calendar year. Bajsec, 11-015 Page 27 III.DISCUSSION: As a Council Member for Leetsdale Borough (“Borough”), Allegheny County, from March 11, 2010, through December 31, 2011, Respondent Michael Bajsec, also referred to herein as “Respondent,” “Respondent Bajsec,” and “Bajsec,” was 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 Bajsec violated Sections 1103(a), 1104(a), and 1104(d) of the Ethics Act: (1) when he participated in discussions, actions and/or other proceedings of Borough Council, including but not limited to making recommendations in relation to his wife being chosen for employment with the Borough, the creation of a new Borough position of full-time Junior Clerk, and the compensation to be paid in relation thereto at the time when he knew or had a reasonable expectation that his wife would be appointed thereto; the preparation of the official motion to offer a position of full-time employment to his wife; the increase in salary paid to his spouse; and approval of Borough payments for compensation and benefits paid to his spouse; and (2) when he failed to file a Statement of Financial Interests (“SFI”) for the 2011 calendar year by May 1, 2012. 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. Bajsec, 11-015 Page 28 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 1104(d) of the Ethics Act provides that no public official shall be allowed to take the oath of office, or enter or continue upon his duties, nor shall he receive compensation from public funds, unless he has filed a Statement of Financial Interests as required by the Ethics Act. 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 Borough is governed by a seven Member Council and a Mayor. Bajsec was appointed to a vacant seat on Borough Council effective March 11, 2010, and he served as a Member of Council through December 31, 2011. Bajsec served as the Vice-President of Council from September 9, 2010, through December 31, 2011, and he served as the Chairman of the Borough Finance Committee during his entire tenure on Council. Signature authority over Borough accounts is maintained by the Borough Secretary/Treasurer, Council President, the Council Member serving as the Chairman of the Finance Committee, and a third Council Member who is routinely available to sign checks. Two signatures are required on all Borough checks. Bajsec, as the Chairman of the Borough Finance Committee, had signature authority on Borough accounts. From December 28, 1991, through January 11, 2006, Elizabeth Petalino (“Petalino”), who was then employed, in pertinent part, as the Borough Secretary, was the only full-time employee in the Borough office. On January 12, 2006, Borough Council hired Sandra Lynn Kohlmeyer (“Kohlmeyer”) as a part-time Administrative Assistant at a pay rate of $12.50 per hour. At the Borough Council meeting on May 14, 2009, Council voted to hire Kohlmeyer as a full-time employee in the Borough office retroactive to May 1, 2009. Kohlmeyer worked full-time hours until approximately June 4, 2010, when a medical condition prevented her from continuing employment, and she passed away unexpectedly on July 7, 2010, while in the hospital. Petalino contacted all Members of Borough Council on July 7, 2010, after learning of Kohlmeyer’s death, and she informed them of such. Sandra Bajsec, who is Michael Bajsec’s spouse, had not been actively employed in a traditional employment setting/environment from at least January 2000 through mid-July 2010. In or about July 2010, Sandra Bajsec began actively seeking employment as a result of financial issues which her family was experiencing, but she was unsuccessful in obtaining employment on her own. Upon learning of Kohlmeyer’s death on July 7, 2010, Bajsec discussed with Roger Nanni (“Nanni”), President of Borough Council, the availability of Sandra Bajsec to fill the position that Kohlmeyer had held. At that time, the Borough was in the process of filling a newly created Borough Manager position which, when filled, would have increased the Borough Administrative Department to its normal complement of two employees. No discussion occurred among Council as a whole regarding the need to fill the vacancy created by Kohlmeyer’s death or how to proceed with filling the vacancy if necessary, and the Borough took no steps to publicly solicit interest from any individuals regarding the possibility of filling the vacant position in any capacity. Nanni spoke with Paul Scimio (“Scimio”), who was a Member of Council at that time, and informed him that Sandra Bajsec was interested in filling the vacant position. Nanni Bajsec, 11-015 Page 29 informed Scimio of Sandra Bajsec’s interest at or about the time when Scimio had expressed to Bajsec his interest in the newly created Borough Manager position. At the Borough Council meeting on July 15, 2010, Bajsec made a motion to advertise for applicants for the newly created Borough Manager position. The motion to advertise for applicants passed by a unanimous vote. Scimio then made a motion to hire Sandra Bajsec for part-time clerical help in the Borough office at $12.50 per hour. The motion to hire Sandra Bajsec passed by a vote of 6 to 0 with Bajsec abstaining from the vote. Prior to the vote to hire Sandra Bajsec, four of the seven Council Members were neither aware of the intent to hire any individual in a part-time clerical capacity nor aware that Sandra Bajsec was being considered for the position. Bajsec was a member of the Interview/Selection Committee for the Borough Manager position. The Borough Manager position was ultimately filled by the appointment of Scimio at the August 12, 2010, Borough Council meeting, at which Bajsec endorsed Scimio for the position, made the motion to appoint Scimio to the position, and voted in favor of placing Scimio into the position. Sandra Bajsec’s first day of work for the Borough was July 19, 2010. Although hired as a part-time employee to work twenty-four hours per week, Sandra Bajsec’s work hours gradually increased to full-time hours per pay period after Scimio began working as the full-time Borough Manager on August 23, 2010. Scimio had oversight responsibility for Sandra Bajsec after being named Borough Manager. Sandra Bajsec’s wage of $12.50 per hour as the part-time Borough Clerk equated to an annual salary of $26,000.00 based upon a forty hour work week. After Scimio began employment as the Borough Manager, questions arose among Borough representatives as to whether keeping minutes of Borough Council meetings was the lawful responsibility of the Borough Manager or the Borough Secretary. After receiving an opinion on the topic from the Borough Solicitor dated August 31, 2010, Nanni and Bajsec decided to institute a restructuring of the Borough Administrative Department which would allow for the transfer of the statutory duties of the Borough Secretary to Scimio as Borough Manager and allow for the establishment of two new administrative office positions. The restructuring was also to involve the research of positions present in similar municipalities, wages received in the positions, and the like. Bajsec was involved in conversations with Nanni and was an active participant in meetings with Nanni and the Borough Solicitor regarding the restructuring of the Borough Administrative Department. Bajsec and Nanni met with the Borough Solicitor on at least two occasions to discuss the potential restructuring of the Borough Administrative Department. Bajsec, as the Chairman of the Borough Finance Committee, was the Council Member primarily responsible for completion of the research for the restructuring of the Administrative Department as related to the determination of positions needed, position status as part-time or full-time, position wages, and the like. No Council Members other than Bajsec and Nanni were involved in the concept to restructure the Borough Administrative Department. The agenda for the October 14, 2010, Borough Council meeting did not mention the restructuring of the Borough administration. Bajsec and Nanni were aware of the intent to present the restructuring and accompanying motions as early as October 12, 2010. No additional Council Members were aware of the intent to present the motion to restructure the Borough Administrative Department until Bajsec presented the subject in executive session at the October 14, 2010, Council meeting. During the executive session, Bajsec presented his intention to make a motion in the regular public session for the restructuring of the Borough Administrative Department. Bajsec presented changes to be made to the Administrative Department, including the Bajsec, 11-015 Page 30 abolishment of the Borough Secretary position, reassignment of traditional Borough Secretary duties to the Borough Manager, and the establishment of two full-time clerical positions. Bajsec proposed recommended salaries for the new positions. Bajsec explained that Sandra Bajsec was to be offered the Junior Clerk position and that her salary was to remain at $26,000.00 annually in association with the restructuring. Petalino, then Borough Secretary, was to be offered the Senior Clerk position, and her salary was to be reduced by approximately $8,171.00 annually in association with the restructuring. At the October 14, 2010, Borough Council meeting, Bajsec made a motion to restructure the Borough’s Administrative Office which proposed, in pertinent part, to establish the Senior and Junior Clerk positions and their salaries. At the time Bajsec presented the restructuring motion, he had in his possession a prepared motion for subsequent reading which documented the offer of employment to Sandra Bajsec for the Junior Clerk position. Bajsec’s intent was to have another Member of Council make the motion to offer the position to Sandra Bajsec as Junior Clerk. Prior to the vote on the restructuring motion, Bajsec provided Council Member Wesley James (“James”) with prepared motions which offered Petalino the Senior Clerk position and Sandra Bajsec the Junior Clerk position. The motion to restructure the Borough’s Administrative Office passed by a vote of 5 to 1, with Bajsec voting in favor of the motion. Bajsec voted in favor of the restructuring at a time when he had a reasonable expectation that his spouse would be offered and would accept the newly-created Junior Clerk position. James cast the dissenting vote to the motion due to the reduction in salary to be offered to Petalino. Bajsec retrieved the prepared motions from James and then made a motion to offer the Senior Clerk position to Petalino. After the motion passed by a vote of 6 to 0, James reached for and took from Bajsec the prepared motion to offer the Junior Clerk position to Sandra Bajsec. James then made a motion to offer the Junior Clerk position to Sandra Bajsec, and the motion passed by a vote of 5 to 0 with Bajsec abstaining from the vote. James would not have made the motion to offer Sandra Bajsec the Junior Clerk position if he had not been provided with the prepared motion documenting such. Sandra Bajsec was formally offered the full-time position of Junior Clerk for the Borough at a salary of $26,000.00 per year via correspondence dated October 15, 2010. Sandra Bajsec acknowledged her acceptance of the position via signing and dating the correspondence on October 15, 2010. During or about the time frame of September 1, 2010, to December 1, 2010, Bajsec, along with Nanni and Scimio, participated in the development of separate Agreements for the Public Works Department and the Administrative Department. Bajsec took the lead to update the prior Public Works Agreement as well as create an Agreement for Administrative Department employees. Included in the Administrative Agreement developed by Bajsec, Nanni and Scimio was a three percent (3%) wage increase per year for each Administrative Department employee, including Sandra Bajsec, for the effective term of the Agreement as well as information on Administrative employee bonuses to be received. On December 1, 2010, the Administrative Agreement was signed by Nanni as Council President and attested to by Bajsec on behalf of Council. At the December 9, 2010, Borough Council meeting, Bajsec seconded a motion and participated in a 5 to 0 Council vote to approve the Administrative and Public Works Department Agreements. From August 5, 2010, through January 17, 2012, Sandra Bajsec received forty-one payments from the Borough totaling $39,800.66 in salary from her employment as the Borough part-time clerk/Junior Clerk. Sandra Bajsec also at times received reimbursement for a cellular telephone allowance in addition to her Junior Clerk salary. Bajsec, 11-015 Page 31 The Borough currently offers various benefits to full-time employees through the Municipal Employers Insurance Trust (“MEIT”). A full-time Borough employee is eligible to receive benefits as provided by the Borough through MEIT as of the employee’s effective date of hire, and coverage offered by the Borough extends to the employee’s eligible family members. The Borough pays all premium costs associated with the coverage for each employee and the employee’s eligible family members. Sandra Bajsec was eligible to receive benefits offered by the Borough through MEIT in her position of full-time Junior Clerk as a result of the restructuring of the Borough office and administrative personnel. Sandra Bajsec obtained Borough provided benefits for Bajsec and herself effective November 1, 2010, and she received multiple benefits valued at approximately $15,947.87 during the time period of November 2010 through January 2012. Bajsec participated in votes of Council to approve the payment of bills which included payment to MEIT for insurance benefits received through Sandra Bajsec’s Borough employment, and he signed as an authorized Borough signatory thirteen of fourteen checks written to MEIT as payment for such benefits. We shall now review the Fact Findings pertaining to Bajsec’s SFI for calendar year 2011. Bajsec’s term on Borough Council ended as of December 31, 2011. Bajsec was required to file an SFI with the Borough by May 1, 2012, for calendar year 2011. On May 2, 2012, the Borough was unable to locate any such SFI for Bajsec. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Bajsec, as a Member of Leetsdale Borough Council, participated in actions and/or other proceedings of Council which resulted in his wife being chosen for full time employment with the Borough; including the creation of a Borough position of full-time Junior Clerk, at the time when he knew or had a reasonable expectation that his wife would be appointed to that position. 1. Bajsec acted on the advice of the Borough Solicitor and was unaware that such action(s) may be a violation of the Ethics Act. b. That a violation of Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(a) occurred when Bajsec failed to file Statements [sic] of Financial Interests for the 2011 calendar year. Bajsec, 11-015 Page 32 4. Bajsec agrees to make payment in the amount of $3,000.00 in settlement of this matter as follows: a. $2,000.00 payable to Leetsdale Borough, and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. b. $1,000.00 in reimbursement, representing a portion of the expenses and costs incurred by the State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission. 5. Bajsec agrees that he will neither seek nor hold any position of public office in the Commonwealth of Pennsylvania at any time from the date of this agreement for a period of one (1) year. 6. Bajsec agrees to not accept any reimbursement, compensation or other payment from Leetsdale Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. Consent Agreement, at 1-2. In considering the allegations and the recommendations of the Consent Agreement, it appears that the Investigative Division in the exercise of its prosecutorial discretion has elected to non pros those portions of the allegations pertaining to: (1) Bajsec’s participation in the increase in salary paid to his spouse and the approval of Borough payments for compensation and benefits paid to his spouse; and (2) Section 1104(d) of the Ethics Act. We therefore need not address those particular allegations. We accept the recommendation of the parties for a finding that a violation of Section 1103(a) of the Ethics Act occurred when Bajsec, as a Member of Borough Council, participated in actions and/or other proceedings of Council which resulted in his wife being chosen for full-time employment with the Borough, including the creation of a Borough position of full-time Junior Clerk, at a time when he knew or had a reasonable expectation that his wife would be appointed to that position. Sandra Bajsec began working as a part-time clerk for the Borough on July 19, 2010. After Scimio began working as the Borough Manager on August 23, 2010, Bajsec and Nanni decided to institute a restructuring of the Borough Administrative Department which would allow, in pertinent part, for the establishment of two new administrative office positions. Bajsec was involved in conversations with Nanni and was an active participant in meetings with Nanni and the Borough Solicitor regarding the restructuring of the Borough Administrative Department. As Chairman of the Borough Finance Committee, Bajsec was the Council Member primarily responsible for completion of the research for the restructuring of the Administrative Department as related to the determination of positions needed, position status as part-time or full-time, position wages, and the like. During the executive session at the October 14, 2010, Borough Council meeting, Bajsec presented changes to be made to the Borough Administrative Department, which included the establishment of two full-time clerical positions of Senior Clerk and Junior Bajsec, 11-015 Page 33 Clerk. Bajsec explained that Sandra Bajsec was to be offered the Junior Clerk position and that her annual salary was to remain at $26,000.00. Bajsec subsequently made a motion to restructure the Administrative Office which proposed, in pertinent part, to establish the Senior and Junior Clerk positions and their salaries. Prior to the vote on the restructuring motion, Bajsec provided James with a prepared motion which offered Sandra Bajsec the Junior Clerk position. Bajsec participated in Council’s vote to approve the restructuring of the Borough Administrative Department. The parties have stipulated that Bajsec voted in favor of the restructuring at a time when he had a reasonable expectation that his spouse would be offered and would accept the newly-created Junior Clerk position. James ultimately took the motion prepared by Bajsec and moved to offer the Junior Clerk position to Sandra Bajsec. Bajsec abstained from a 5 to 0 Council vote which approved the motion made by James. In her position of full-time Junior Clerk, Sandra Bajsec was eligible for Borough- provided benefits. Sandra Bajsec obtained Borough-provided benefits for Bajsec and herself effective November 1, 2010, and she received multiple benefits valued at approximately $15,947.87 during the time period of November 2010 through January 2012. Per the Consent Agreement, the parties are in agreement that Bajsec acted on the advice of the Borough Solicitor and was unaware that such action(s) may be a violation of the Ethics Act. Based upon the Stipulated Findings and Consent Agreement, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Bajsec, as a Member of Borough Council, participated in actions and/or other proceedings of Council which resulted in his wife being chosen for full-time employment with the Borough, including the creation of a Borough position of full-time Junior Clerk, at a time when he knew or had a reasonable expectation that his wife would be appointed to that position. As for the allegations regarding Bajsec’s SFI for the 2011 calendar year, we hold that a violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Bajsec failed to file an SFI for the 2011 calendar year. As part of the Consent Agreement, Bajsec has agreed to make payment in the amount of $3,000.00 in settlement of this matter payable as follows: (a) $2,000.00 payable to Leetsdale Borough and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter; and (b) $1,000.00 in reimbursement representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission. Bajsec has agreed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. Bajsec has further agreed that he will neither seek nor hold any position of public office in the Commonwealth of Pennsylvania at any time from the date of the Consent Agreement (November 7, 2012) for a period of one (1) year. 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. Bajsec, 11-015 Page 34 Accordingly, per the Consent Agreement of the parties, Bajsec is directed to make payment in the amount of $3,000.00 payable as follows: (a) $2,000.00 payable to th Leetsdale Borough and forwarded to this Commission by no later than the thirtieth (30) day after the mailing date of this adjudication and Order; and (b) $1,000.00 in reimbursement representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission. Per the Consent Agreement of the parties, Bajsec is directed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. Per the Consent Agreement of the parties, Bajsec is further directed that he is to neither seek nor hold any position of public office in the Commonwealth of Pennsylvania at any time from the date of the Consent Agreement (November 7, 2012) for a period of one (1) year. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV.CONCLUSIONS OF LAW: 1. As a Member of Council for Leetsdale Borough (“Borough”) Allegheny County, from March 11, 2010, through December 31, 2011, Respondent Michael Bajsec (“Bajsec”) was 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. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Bajsec, as a Member of Borough Council, participated in actions and/or other proceedings of Council which resulted in his wife being chosen for full-time employment with the Borough, including the creation of a Borough position of full- time Junior Clerk, at a time when he knew or had a reasonable expectation that his wife would be appointed to that position. a. The parties are in agreement that Bajsec acted on the advice of the Borough Solicitor and was unaware that such action(s) may be a violation of the Ethics Act. 3. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Bajsec failed to file a Statement of Financial Interests for the 2011 calendar year. In Re: Michael Bajsec, : File Docket: 11-015 Respondent : Date Decided: 1/28/13 : Date Mailed: 2/14/13 ORDER NO. 1613 1. A violation of Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), occurred when Michael Bajsec (“Bajsec”), as a Member of Leetsdale Borough (“Borough”) Council, participated in actions and/or other proceedings of Council which resulted in his wife being chosen for full-time employment with the Borough, including the creation of a Borough position of full- time Junior Clerk, at a time when he knew or had a reasonable expectation that his wife would be appointed to that position. a. The parties are in agreement that Bajsec acted on the advice of the Borough Solicitor and was unaware that such action(s) may be a violation of the Ethics Act. 2. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Bajsec failed to file a Statement of Financial Interests for the 2011 calendar year. 3. Per the Consent Agreement of the parties, Bajsec is directed to make payment in the amount of $3,000.00 payable as follows: (a) $2,000.00 payable to Leetsdale Borough and forwarded to the Pennsylvania State Ethics Commission by no later th than the thirtieth (30) day after the mailing date of this Order; and (b) $1,000.00 in reimbursement representing a portion of the expenses and costs incurred by the Pennsylvania State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission. 4. Per the Consent Agreement of the parties, Bajsec is directed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. 5. Per the Consent Agreement of the parties, Bajsec is further directed that he is to neither seek nor hold any position of public office in the Commonwealth of Pennsylvania at any time from the date of the Consent Agreement (November 7, 2012) for a period of one (1) year. 6. Compliance with Paragraphs 3, 4, and 5 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, ___________________________ John J. Bolger, Chair