HomeMy WebLinkAbout1621 Thomas
In Re: Sandra Thomas, : File Docket: 12-012
Respondent : X-ref: Order No. 1621
: Date Decided: 10/8/13
: Date Mailed: 10/11/13
Before: John J. Bolger, Chair
Nicholas A. Colafella, Vice Chair
Raquel K. Bergen
Mark R. Corrigan
Roger Nick
Kathryn Streeter Lewis
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 allegation(s). Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an “Investigative Complaint.” An Answer was filed, and a hearing was requested. A
Stipulation of Findings and a Consent Agreement 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 Sandra Thomas, a public official/public employee in her capacity as a Member
of Yeadon Borough Council, violated Sections 1103(a) and 1104(a) of the State Ethics Act
(Act 93 of 1998), 65 Pa.C.S. §§ 1103(a) and 1104(a), when she used the authority of her
public position to obtain a private pecuniary benefit for herself and/or members of her
immediate family by using her position to receive payment from the Borough for the cost of
private health insurance; when she subsequently participated in actions of Council to
approve payments issued to her for private health care insurance costs; and when she
failed to file a Statement of Financial Interests for the 2011 calendar year.
II.FINDINGS:
1. Sandra Thomas served as a Council Member for Yeadon Borough, Delaware
County, from January 4, 2010, through December 2011.
a. Thomas was elected to Council during a special election held in November
2009.
1. Thomas was a candidate during the special election to fill a vacancy
due to a previously elected Council Member being ineligible to
continue service due to a felony conviction.
b. Thomas served as Vice-President of Yeadon Borough Council from January
2010 through December2011.
Thomas, 12-012
Page 2
c. Thomas also served as the Chairperson of the Borough Finance Committee
from January 2010 through September 2011.
1. Thomas informed the Council President of her resignation as the
Chairperson of the Yeadon Borough Finance Committee verbally in
July 2011 and then in writing in September 2011.
2. Thomas reports that her decision to resign was based, in part, on her
belief that proper legal guidance had not been obtained when the
practice of insurance reimbursements to Council was initiated.
Thomas also reports that prior to her term on Borough Council, there
was already in place the practice of insurance reimbursement.
d. Thomas’ service as a Borough Council Member ended in 2011 when her
term expired.
2. Yeadon was incorporated as a Borough in Delaware County, Pennsylvania, on
March 9, 1893.
a. According to the United States Census Bureau, the population of Yeadon
Borough was 11,443 at the 2010 census.
3. Yeadon Borough is governed by a seven-Member Council and Mayor.
a. Historically, Council will hold two (2) meetings each month.
1. Council holds workshop meetings on the first Monday of each month.
i. Thomas believes that a Solicitor or representative of such is
typically present at these meetings.
2. Council holds legislative meetings on the third Thursday of each
month.
3. Council holds special meetings as necessary.
4. Compensation to be received by Members of Borough Council is capped by the
Borough Code, 53 P.S. § 45101 et seq.
a. Borough Council Member compensation is determined by the Borough’s
population.
b. Specifically, the Borough Code reads:
Members of council may receive compensation to be fixed by ordinance as
follows:
(1) In boroughs with a population of less than five thousand, a maximum of
eighteen hundred seventy-five dollars ($ 1875) a year.
(2) In boroughs with a population of five thousand or more but less than ten
thousand, a maximum of two thousand five hundred dollars ($ 2500) a year.
(3) In boroughs with a population of ten thousand or more but less than
fifteen thousand, a maximum of three thousand two hundred fifty dollars ($
3250) a year.
Thomas, 12-012
Page 3
(4) In boroughs with a population of fifteen thousand or more but less than
twenty-five thousand, a maximum of four thousand one hundred twenty-five
dollars ($ 4125) a year.
(5) In boroughs with a population of twenty-five thousand or more but less
than thirty-five thousand, a maximum of four thousand three hundred
seventy-five dollars ($ 4375) a year.
(6) In boroughs with a population of thirty-five thousand or more, a maximum
of five thousand dollars ($ 5000) a year.
The salaries shall be payable monthly or quarterly for the duties imposed by
the provisions of this act.
Benefits provided to members of council under section 1202(26) shall not be
considered pay, salary or compensation, but payment for all or a part of the
premiums or charges for the benefits shall be in accordance with section
1202(26).
Any change in salary, compensation or emoluments of the elected office
shall become effective at the beginning of the next term of the member of
council.
53 P.S. § 46001.
5. Council Members are compensated at a scale of $150.00 monthly ($1,800.00
annually) for their service.
a. The population of Yeadon Borough is 11,443, which would make Council
Members eligible to receive compensation of $3,250 per year.
b. Attendance at the monthly Council meeting is not required in order for
Council Members to receive compensation.
c. Per the Borough Code (53 P.S. § 46001), Council Members of Yeadon
Borough could be compensated a maximum of $3,250.00.
6. In addition to compensation allowed for by law, Members of Borough Council are
eligible to participate in Borough-funded insurance programs.
a. The pertinent portion of the Borough Code regarding Council Members’
participation in Borough-funded insurance plans is found at 53 P.S. §
46202(26), which reads:
(26) OTHER INSURANCE.
(i) Workers’ compensation insurance. To appropriate an amount as
may be necessary to secure insurance or compensation in
accordance with Article VI of the act of June 2, 1915 (P.L. 736, No.
338), known as the “Workers’ Compensation Act,” for:
(A) volunteer fire fighters of companies duly recognized by the
borough, by motion or resolution, killed or injured while going
to, returning from, or attending fires, or while performing their
duties as special fire police; and
Thomas, 12-012
Page 4
(B) other borough employes as “employe” is defined in section 601
of the “Workers’ Compensation Act.”
(ii) Life and health insurance. To make contracts of insurance with any
insurance company, association or exchange, authorized to transact
business in the Commonwealth, insuring borough employes, or any
class or classes of employes, or mayor and council, or their
dependents, under a policy or policies of insurance covering life,
health, hospitalization, medical and surgical service or accident
insurance.
(iii) Pension contracts. To contract with an insurance company, granting
annuities or pensions, for the pensioning of borough employes, or any
class, or classes of employes, and to agree to pay part or all of the
premiums or charges for carrying the contracts, and to appropriate
moneys from the borough treasury for such purposes.
(iv) Liability insurance. To make contracts with any insurance company,
association or exchange, authorized to transact business in this
Commonwealth, insuring any public liability of the borough, and to
appropriate moneys from the borough treasury for such purpose.
(v) Nothing in this clause shall affect any contract, right or coverage of
insurance vested or existing on the effective date of this clause.
Contract, as used in this clause, includes an annuity contract,
provided that the option to renew continues to provide the same rights
to the annuitant that existed on the effective date of this clause.
53 P.S. § 46202(26) (emphasis added).
7. Yeadon Borough provides health insurance coverage for its employees through a
policy managed by Independence Blue Cross.
a. Participants in the Borough’s insurance plan pay no insurance premium.
b. The Borough policy consists of two (2) groups: the Police policy group, and
all other Borough employees.
1. The Borough’s Employee (non-police) group consists of no less than
fourteen (14) members.
8. Upon amendment of the Borough Code in 2001, which amongst other provisions,
allowed the participation of Council Members in a Borough-funded health insurance
program, Yeadon Borough permitted elected officials to receive/participate in the
same insurance benefit program that was otherwise provided to Borough
employees.
a. During calendar year 2010, only the Council President participated in the
Borough’s health insurance plan.
9. In or around 2008, Council reviewed the Borough’s health insurance costs, and
noted that the cost for Council Members’ health insurance was projected to exceed
$64,000.00 for fiscal year 2009.
a. Yeadon Borough Council adopted a budget for fiscal year 2008 at the end of
calendar year 2007, that included a total of $22,762 for Borough-provided
health insurance benefits.
Thomas, 12-012
Page 5
1. Actual costs for health insurance benefits for the year 2007 were
$29,521.84.
b. The costs exceeded budgeted funds due to some Council Members
participating in a family coverage plan.
10. In 2008, Council directed the Interim Borough Manager to prepare a Resolution for
Borough adaptation which limited/capped the costs of benefits provided to Yeadon
Borough Council Members.
a. All matters involving a financial expenditure with Yeadon Borough are first
presented and reviewed by the Interim Borough Manager/Borough Manager
and Finance Director.
11. All Members of Council present at a meeting are to participate in voting on motions
presented.
a. The Mayor votes only in the case of a tie.
12. Council’s voting procedures on matters involving financial expenditures or accounts
payable occur in roll call fashion.
a. All objections and/or abstentions are noted within the minutes.
13. On December 18, 2008, the Yeadon Borough Council President requested Council
to consider a Resolution which would limit Council health insurance costs to less
than $5,000.00.
a. Meeting minutes for December 18, 2008, reflect the following:
The President asked Council to receive and consider a
resolution to restrict the compensation Borough Council
members can receive as part of Borough paid health benefits
to $5,000.
Upon Motion of the Vice President and Seconded by a
councilor the adoption of a resolution to restrict the
compensation Borough Council members can receive as part
of Borough paid health benefits to $5,000 was accepted
unanimously by a vote of 6 to 0.
b. Actual language of the approved Resolution No. 2008-12 reads, in pertinent
part:
NOW, THEREFORE, BE IT RESOLVED
that the Yeadon Borough Council,
Delaware County, Pennsylvania, hereby restricts the costs which Councilors
and the Mayor may incur utilizing benefits as an elected official to $5,000 per
TH
RESOLVED AND ENACTED THIS 18 DAY OF
official per year, and
DECEMBER 2008.
c. It is Thomas’ statement that a Solicitor or representative of such typically
reviews all Resolutions initiated by Council.
14. Resolution No. 2008-12 does not authorize elected officials of Yeadon Borough to
be reimbursed for their private insurance or insurance provided through an
employer or other entity.
Thomas, 12-012
Page 6
a. It is Thomas’ statement that “[t]hose who started the practice of reimbursing
council members for their portion of the cost for insurance benefits or
otherwise paid by the elected officials directly for such coverage that they
receive through their employer or retirement plan or otherwise, before
Thomas’ term on council, seem to have been [sic] based their position in part
on this very resolution. The Interim Borough Manager signed the resolution
in 2008 and asked Thomas, in 2010, council members, and the Mayor for
their portion of the costs for insurance benefits payments so that Thomas
could be reimbursed.”
b. Thomas also states that “[t]he practice of Yeadon Borough officials having
insurance payments sent directly to their union/provider was initiated prior to
Ms. Thomas’ term and tenure as a councilwoman.”
15. Yeadon Borough never enacted or established any type of policy that authorized
elected officials to be reimbursed for their private insurance or insurance provided
through an employer or other entity in lieu of enrolling/participating in a Borough-
funded health insurance program.
16. Following the 2009 special election, and prior to Thomas taking office, aCouncil
Member approached Thomas and informed her that as a newly-elected Council
Member, Thomas was entitled to receive compensation as delineated in the
Borough Code, including the option of participating in the Borough’s health
insurance program.
17. Following Thomas’ installment as a Council Member for Yeadon Borough, a Council
Member again informed Thomas that as an elected official of Yeadon Borough, she
(Thomas) had the option of receiving insurance benefits at Borough expense.
a. A Council Member informed Thomas that she (Thomas) could either
participate in the Borough-funded health insurance plan or be reimbursed by
the Borough for her portion of the cost she incurred for health insurance
expenses, up to $5,000.00 annually.
b. Thomas opted not to participate in the Borough-provided health insurance
benefit plan offered to employees/elected officials.
1. Thomas was not an employee of Yeadon Borough and was scheduled
to participate on Council from January 2010 through December 2011.
c. Thomas did opt to be reimbursed for her portion of the cost she incurred for
health insurance benefits through payroll deductions.
18. In a non-governmental capacity, Thomas is employed with a private business entity.
a. In her non-governmental employment capacity, Thomas received as part of
her compensation a salary and benefits, including health insurance.
Thomas incurred part of the costs of insurance benefits through payroll
deductions.
b. Thomas’ insurance benefits were provided to her as an employee by way of
payroll deductions.
19. The costs of Thomas’ health insurance benefits, as deducted from her pay, totaled
$350.00 bi-weekly as of December 2009.
Thomas, 12-012
Page 7
20. Following her installment as a Borough Council Member in January 2010, Thomas
provided Yeadon Borough officials copies of her payroll and employer-provided
benefit information.
a. Thomas purports that “[a]s it was explained to Thomas by the Interim
Borough Manager that council members could either obtain borough health
care benefits (in the same manner as employees) or be reimbursed for
insurance benefits (in the same manner as what he called the Yeadon
employee “buy-back” program), Thomas provided an Annual Benefits
Enrollment Statement prepared by her employer identifying Thomas’
insurance coverage to Yeadon Borough Interim Manager. The Interim
Borough Manager explained the type of documentation needed to support
the insurance reimbursement.”
21. The Interim Borough Manager reviewed the information provided by Thomas and
initiated monthly payments to Thomas.
a. Either the Interim Borough Manager or the Finance Director calculated
Thomas’ payment in order to keep Thomas’ payment from exceeding the
$5,000.00 annual limit per Resolution No. 2008-12.
22. Payments made to Borough Council Members, including Thomas, and the Mayor for
reimbursement of their portion of the costs they incurred for health insurance were
presented to Borough Council for approval.
a. Payments for health insurance reimbursements were placed on monthly
accounts payable lists for Council approval at a regular meeting of Council.
1. Council receives accounts payable lists prior to monthly meetings in
meeting packets.
2. The accounts payable lists represent expenditures not yet paid by the
Borough.
3. There is also a listing presented to Council of prepaid expenses to be
approved during regular Council meetings.
23. From January 22, 2010, to May 20, 2011, Thomas received 17 monthly payments
from Yeadon Borough, representing reimbursement for her employer-provided
insurance benefits.
a. On at least twelve (12) occasions from March 18, 2010, to June 16, 2011,
Thomas, as a Yeadon Borough Council Member, voted to approve the
accounts payable lists that included payments to her for reimbursement of
her portion of the costs incurred for employer provided insurance benefits at
regular legislative Yeadon Borough Council meetings.
1. Thomas’ last payment for reimbursement of her portion of the costs
for insurance benefits was in May 2011.
b. No minutes for regular legislative meetings were on file with the Borough
Manager, Custodian of Records at Yeadon Borough for the year 2010 that
included the months of February, June and July.
1. Thomas purports that the typical process of documentation of minutes
from Yeadon Borough Council meetings had been delayed for several
Thomas, 12-012
Page 8
months during the year 2010; thus, the Solicitor or representative of
such was engaged to prepare some of those minutes.
c. At the suggestion of the Council President, during the regular legislative
meetings of Yeadon Borough Council for April 21, 2011, and May 19, 2011,
separate motions were made to approve the reimbursements for each
Council Member including Thomas in which Thomas abstained from voting.
24. Thomas continued to receive “reimbursement” payments on a monthly basis, as a
result of Borough Council actions approving the accounts payable lists at the
monthly meetings.
a. At the suggestion of the Council President, beginning on April 21, 2011,
Yeadon Borough Council initiated the practice of approving separate
motions regarding the voting to approve reimbursement of employer-
provided insurance benefits, in order to allow the affected Councilperson to
abstain from voting.
1. Thomas abstained from voting to approve Borough payments issued
to her during/after the April 21, 2011, Yeadon Borough Council
meeting.
25. [Redacted due to confidentiality requirements of the Ethics Act.]
b. It is Thomas’s statement that “as well, none of the fiscal year end
independent audits conducted while Thomas was on council uncovered or
disclosed of any accounting or other violations pertaining to the propriety of
Yeadon Borough Elected officials being paid for their portion of the costs
they incurred for insurance benefits or otherwise paid by the elected officials
directly for such coverage that they receive through their employer or
retirement plan or otherwise.”
c. The Investigative Division has no knowledge as to the veracity of Thomas’s
statement.
26. [Redacted due to confidentiality requirements of the Ethics Act.]
27. Council enacted Resolution No. 2011-09, on July 21, 2011, to allow Councilpersons
electing to receive the Borough-provided health care benefits to obtain those
benefits in an amount equal to that of the annual costs of that insurance, which read
in part:
NOW THEREFORE BE IT RESOLVED
, effective for the Calendar year of 2011 and
going forward, the Yeadon Borough Council shall restrict the value of the health
insurance, accident insurance, and life insurance benefits per official per year to an
amount not to exceed the single rate (no children) premium of the health insurance
ST
RESOLVED THIS 21 DAY OF
plan provided to non-union Borough employees.
JULY 2011.
a. Resolution No. 2011-09 regarding health care costs for Council Members
and the Mayor was approved at the regular legislative meeting on July 21,
2011, by a 6-0 vote in which Thomas participated.
,
28. Effective in or about May 2011Thomas opted not to be included as part of the
Yeadon Borough insurance plan available to officials and employees of the
Borough.
Thomas, 12-012
Page 9
,
a. Effective in or about May 2011Thomas opted to not continue to collect the
monthly “payment” from the Borough.
29. [Redacted due to confidentiality requirements of the Ethics Act.]
30. Thomas realized a private pecuniary benefit in her capacity as a Yeadon Borough
Council Member, as a result of being reimbursed by Yeadon Borough for her
portion of the costs she incurred for health insurance benefits that were provided to
Thomas through her employer.
a. Thomas opted not to participate in the health insurance plan offered by the
Borough as Thomas was only elected to serve on Council from January
2010 through December 2011.
b. Thomas’ statement is that “it was explained to Thomas by the Interim
Borough Manager that council members and the Mayor could either obtain
borough health care benefits (in the same manner as employees) or be
reimbursed for health care benefits (in the same manner as what he called
the Yeadon employee “buy-back” program), Thomas provided an Annual
Benefits Enrollment Statement reflecting her portion of the costs she
incurred for health insurance benefits issued to her by her employer, to
Interim Borough Manager with the intent of being reimbursed by Yeadon
Borough for her portion of the costs she incurred for health insurance
benefits through her employer.”
c. [Redacted due to confidentiality requirements of the Ethics Act.]
The following findings relate to Thomas failing to file a Statement of Financial
Interests for the 2011 calendar year.
31. Pursuant to the Statement of Financial Interests filing requirements for public
officials and public employees of Section 1104 of the State Ethics Act, Thomas was
required to file an accurate and complete Statement of Financial Interests (“SFI”) by
st
May 1 annually, in her capacity as a Yeadon Borough Council Member.
32. Thomas did not file an SFI for calendar year 2011 with Yeadon Borough by May 1,
2012.
33. Thomas filed an SFI for calendar year 2011 on July 31, 2012.
34. Within Thomas’ filed 2011 calendar year SFI, Block #10 was not completed.
a. As to Block #10, Thomas neglected to list income in excess of $1,300.00
from Yeadon Borough.
b. Thomas filed an amended SFI on May 24, 2013, to include the income from
Yeadon Borough.
III.DISCUSSION:
As a Council Member for Yeadon Borough (“Borough”), Delaware County, from
January 4, 2010, through December 2011, Respondent Sandra Thomas, also referred to
hereinafter as “Respondent,” “Respondent Thomas,” and “Thomas,” 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.
Thomas, 12-012
Page 10
The allegations are that Thomasviolated Sections 1103(a) and 1104(a) of the
Ethics Act when she used the authority of her public position to obtain a private pecuniary
benefit for herself and/or members of her immediate family by using her position to receive
payment from the Borough for the cost of private health insurance; when she subsequently
participated in actions of Borough Council to approve payments issued to her for private
health care insurance costs; and when she failed to file a Statement of Financial Interests
(“SFI”) for the 2011 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
member of his immediate family or a business with which he or
a member of his immediate family is associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official/public employee from
using the authority of public office/employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official/public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1104(a) of the Ethics Act provides that each public official/public employee
must file a Statement of Financial Interests for the preceding calendar year, by May 1 of
each year that he holds the position and the year after he leaves it.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
The Borough is governed by a seven-Member Council and a Mayor. Thomas was
elected to Borough Council during a special election held in November 2009. Thomas
served as a Member of Borough Council from January 4, 2010, through December 2011,
when her term expired. Thomas served as Vice-President of Borough Council from
Thomas, 12-012
Page 11
January 2010 through December2011. Borough Council Members are compensated
$1,800.00 annually for their service and are not required to be in attendance at monthly
meetings in order to receive such compensation.
With respect to insurance coverage for members of a borough council, the Borough
Code authorizes a borough to “make contracts of insurance with any insurance company,
association or exchange, authorized to transact business in the Commonwealth, insuring
borough employes, or any class or classes of employes, or mayor and council, or their
dependents, under a policy or policies of insurance covering life, health, hospitalization,
medical and surgical service or accident insurance.” 53 P.S. § 46202(26)(ii).
After the Borough Code was amended in 2001 to allow the participation of borough
council members in a borough-funded health insurance program, the Borough permitted
elected officials to receive/participate in the same insurance benefit program provided to
Borough employees. The Borough provides health insurance coverage for its employees
through a policy managed by Independence Blue Cross. Participants in the Borough’s
insurance plan pay no insurance premium.
In or around 2008, Borough Council reviewed the Borough’s health insurance costs
and noted that the cost for Council Members’ health insurance was projected to exceed
$64,000.00 for fiscal year 2009. Borough Council directed the Interim Borough Manager to
prepare a Resolution which limited/capped the costs of benefits provided to Borough
Council Members.
On December 18, 2008, Borough Council adopted Resolution No. 2008-12, which
restricted the cost of Borough-paid health benefits for Borough Council Members and the
Mayor to $5,000 per elected official per year. Resolution No. 2008-12 does not authorize
elected officials of the Borough to be reimbursed for their private insurance or insurance
provided through an employer or other entity, and the Borough never enacted or
established any type of policy that authorized elected officials to be reimbursed for their
private insurance or insurance provided through an employer or other entity in lieu of
enrolling/participating in a Borough-funded health insurance program.
Thomas is employed with a private business entity. In her non-governmental
employment capacity, Thomas received health insurance benefits. Thomas paid part of
the costs for such health insurance benefits through payroll deductions. As of December
2009, the costs of Thomas’ health insurance benefits as deducted from her pay totaled
$350.00 bi-weekly.
After the 2009 special election, and prior to Thomas taking office, a Borough
Council Member informed Thomas that as a newly-elected Council Member, she was
entitled to receive compensation as delineated in the Borough Code and had the option to
participate in the Borough’s health insurance program. Following Thomas’ installment as a
Borough Council Member, a Council Member informed Thomas that she could either
participate in the Borough-funded health insurance plan or be reimbursed by the Borough
up to $5,000.00 annually for health insurance expenses she incurred.
Thomas opted not to participate in the Borough-funded health insurance plan and
opted to be reimbursed for the costs she incurred for her employer-provided health
insurance benefits. Following her installment as a Borough Council Member in January
2010, Thomas provided copies of her payroll and employer-provided benefit information to
Borough officials. The Interim Borough Manager reviewed the information provided by
Thomas and initiated monthly payments to her.
Although Thomas’ payroll deductions for health insurance benefits provided by her
employer totaled $350.00 biweekly as of December 2009, the Borough Interim Manager or
Thomas, 12-012
Page 12
Finance Director calculated Thomas’ reimbursement payments from the Borough so as to
keep them from exceeding the $5,000.00 annual limit per Resolution No. 2008-12.
Payments to Borough Council Members and the Mayor for health insurance
reimbursements were placed on monthly accounts payable lists for Borough Council
approval at regular Council meetings. The accounts payable lists represent expenditures
not yet paid by the Borough. On at least twelve occasions from March 18, 2010, to June
16, 2011, Thomas voted at regular legislative Council meetings to approve accounts
payable lists that included payments to her for reimbursement of the costs she incurred for
her employer-provided health insurance benefits.
From January 22, 2010, to May 20, 2011, Thomas received seventeen monthly
payments from the Borough that represented reimbursement for her employer-provided
,
health insurance benefits. Effective in or about May 2011Thomas opted not to be
included as part of the Borough insurance plan available to Borough officials and
employees, and she opted not to continue collecting the monthly reimbursement payment
from the Borough.
The parties have stipulated that Thomas realized a private pecuniary benefit in her
capacity as a Borough Council Member as a result of being reimbursed by the Borough for
the costs she incurred for health insurance benefits that were provided to her through her
employer.
We shall now review the Fact Findings pertaining to Thomas’ SFI for calendar year
2011.
As a Borough Council Member, Thomas was required to annually file a complete
and accurate SFI by May 1. Thomas did not file an SFI with the Borough for calendar year
2011 by May 1, 2012. When Thomas filed an SFI for calendar year 2011 on July 31, 2012,
she neglected to list income in excess of $1,300.00 from the Borough. Thomas filed an
amended SFI on May 24, 2013, to include the income from the Borough.
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 in relation to Thomas’ receipt
of payment from the Borough representing
reimbursement for payroll deductions of private
health insurance costs; and when she
subsequently participated in actions of Council
to approve payments issued to her for private
health care insurance costs.
b. That a violation of Section 1104(a) [of the Ethics
Act] occurred when Thomas failed to file a
Statement of Financial Interests for the 2011
calendar year by May 1, 2012.
Thomas, 12-012
Page 13
4. Thomas agrees to make payment in the amount of $1,296.49
to settle this matter, payable to the Yeadon Borough, and
forwarded to the Pennsylvania State Ethics Commission within
thirty (30) days of the issuance of the final adjudication in this
matter.
5. To the extent she has not already done so, Thomas agrees to
file a complete and accurate Statement of Financial Interests
with Yeadon Borough through the Pennsylvania State Ethics
Commission, for the 2011 calendar year within thirty (30) days
of the issuance of the final adjudication in this matter.
6. Thomas agrees to not accept any reimbursement,
compensation or other payment from Yeadon Borough
representing a full or partial reimbursement of the amount paid
in settlement of this matter.
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 of the parties, we accept the
recommendation of the parties for a finding that a violation of Section 1103(a) of the Ethics
Act occurred in relation to Thomas’ receipt of payment from the Borough representing
reimbursement for payroll deductions of private health insurance costs; and when she
subsequently participated in actions of Council to approve payments issued to her for
private health care insurance costs.
But for being a Borough Council Member, Thomas would not have been in a
position to provide copies of her payroll and employer-provided benefit information to
Borough officials in order to be reimbursed for the costs she incurred for her employer-
provided health insurance benefits. Thomas used the authority of her public position as a
Borough Council Member when on at least twelve occasions she voted to approve
accounts payable lists that included payments to her for reimbursement of costs she
incurred for her employer-provided health insurance benefits. The parties have stipulated
that Thomas realized a private pecuniary benefit in her capacity as a Borough Council
Member as a result of being reimbursed by the Borough for the costs she incurred for
health insurance benefits that were provided to her through her employer. Although
Thomas’ payroll deductions for health insurance benefits provided by her employer totaled
$350.00 biweekly as of December 2009, the Borough Interim Manager or Finance Director
calculated Thomas’ reimbursement payments from the Borough so as to keep them from
exceeding the $5,000.00 annual limit per Resolution No. 2008-12.
Based upon the Stipulated Findings and the Consent Agreement, we hold that a
violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to
Thomas’ receipt of payment from the Borough representing reimbursement for payroll
deductions of private health insurance costs; and when she subsequently participated in
actions of Council to approve payments issued to her for private health care insurance
costs.
Thomas, 12-012
Page 14
As for the allegation regarding Thomas’ SFI for the 2011 calendar year, we hold that
Thomas violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when she failed
to file an SFl for the 2011 calendar year by May 1, 2012.
As part of the Consent Agreement, Thomas has agreed to make payment in the
amount of $1,296.49 payable to Yeadon Borough and forwarded to this Commission within
thirty (30) days of the issuance of the final adjudication in this matter.
Thomas 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.
To the extent she has not already done so, Thomas has agreed to file a complete
and accurate SFI for the 2011 calendar year with the Borough, through this Commission,
within thirty (30) days of the issuance of the final adjudication in this matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Thomas is directed to make
payment in the amount of $1,296.49 payable to Yeadon Borough and forwarded to this
th
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, Thomas 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.
To the extent she has not already done so, Thomas is directed to file a complete
and accurate SFI for the 2011 calendar year with the Borough, through this Commission,
th
by no later than the thirtieth (30) day after the mailing date of this adjudication and Order.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
1. As a Council Member for Yeadon Borough, Delaware County, from January 4,
2010, through December 2011, Respondent Sandra Thomas (“Thomas”) 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. Thomas violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation
to her receipt of payment from the Borough representing reimbursement for payroll
deductions of private health insurance costs; and when she subsequently
participated in actions of Council to approve payments issued to her for private
health care insurance costs.
3. Thomas violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when she
failed to file a Statement of Financial lnterests for the 2011 calendar year by May 1,
2012.
In Re: Sandra Thomas, : File Docket: 12-012
Respondent : Date Decided: 10/8/13
: Date Mailed: 10/11/13
ORDER NO. 1621
1. As a Council Member for Yeadon Borough (“Borough”), Delaware County, Sandra
Thomas (“Thomas”) violated Section 1103(a) of the Public Official and Employee
Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to her receipt of payment
from the Borough representing reimbursement for payroll deductions of private
health insurance costs; and when she subsequently participated in actions of
Council to approve payments issued to her for private health care insurance costs.
2. Thomas violated Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), when she
failed to file a Statement of Financial Interests (“SFI”) for the 2011 calendar year by
May 1, 2012.
3. Per the Consent Agreement of the parties, Thomas is directed to make payment in
the amount of $1,296.49 payable to Yeadon Borough and forwarded to the
th
Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after
the mailing date of this Order.
4. Per the Consent Agreement of the parties, Thomas 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. To the extent she has not already done so, Thomas is directed to file a complete
and accurate SFI for the 2011 calendar year with the Borough, through the
th
Pennsylvania State Ethics Commission, by no later than the thirtieth (30) day after
the mailing date of this Order.
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