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HomeMy WebLinkAbout1623 Tvardzik In Re: Andrew Tvardzik, : File Docket: 13-002 Respondent : X-ref: Order No. 1623 : Date Decided: 10/8/13 : Date Mailed: 10/22/13 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 allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an “Investigative Complaint.” A Stipulation of Findings and a Consent Agreement 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 Andrew Tvardzik, a (public official/public employee) in his capacity as a Supervisor for Paint Township, Somerset County, violated [Sections 1103(a) and 1105(b)(5)] of the State Ethics Act (Act 93 of 1998) when he used the authority of his office for a private pecuniary gain by appointing himself as a consultant/liaison for the Township pertaining to various Township sewer and real estate development projects, including, but not limited to, the renovation/construction of the Township Police department building; and when he claimed compensation for duties related to his position as Supervisor, including but not limited to attendance at construction/project meetings, signing checks, [and] meeting with the public, developers, and Township engineers; and when he subsequently approved his compensation for hours submitted related to administrative duties; and when he failed to disclose all direct/indirect sources of income on Statement[s] of Financial Interests for the 2008, 2009, 2010 and 2011 calendar years. II.FINDINGS: 1. Andrew Tvardzik has served as a Supervisor for Paint Township (hereafter “Township”), Somerset County, since January 2008. a. Tvardzik has served as the Vice-Chairman of the Board of Supervisors from September 18, 2012, to the present. Tvardzik, 13-002 Page 2 1. Tvardzik previously served as the Vice-Chairman from January 2008 through December 2009. b. Tvardzik served as a Secretary/Treasurer from January 2010 to September 18, 2012. 1. The position of Secretary/Treasurer was not specified as being Secretary/Treasurer for the Board or for the entire Township. c.Tvardzik previously served on the Township Planning Commission from 2004 to 2007. 1. Tvardzik reviewed and approved various development plans while serving on the Planning Commission, including residential subdivision project plans. 2. Professionally, Tvardzik had managed his own building/remodeling business, “Andrew Tvardzik Building and Remodeling,” since 1975. a. Tvardzik retired approximately fourteen (14) years ago. 3. Paint Township is a Second Class Township, governed by a three (3) Member Board of Supervisors (hereafter “Board”). a. The Board re-organizes each year to appoint a Chairman, Vice-Chairman, and Secretary/Treasurer. 4. The Board holds regular monthly meetings at the Township Municipal Building on the third Tuesday of each month. a. Special meetings are held on an as-needed basis. 5. Voting at Township meetings occurs via a roll call or group aye/nay fashion depending on the issue at hand. a. A roll call vote is utilized upon request. b. A group aye/nay vote is utilized for routine approval of minutes and monthly expenditures. c. All objections and abstentions are noted within the minutes. 6. The Second Class Township Code (hereafter “Code”), Section 65606- Compensation for Supervisors, sets the provision of the supervisors’ salaries based upon population of the respective township (see 53 P.S. § 65606). a. The population of Paint Township is 3,300. b. The annual maximum salary for a Supervisor of Paint Township based on population per the Code is $1,875.00. c. In addition to setting maximum supervisor compensation, Section 65606 also directs that compensation of Supervisors, when employed as Roadmasters, Laborers, Secretary, Treasurer, Assistant Secretary, Assistant Treasurer or in any employee capacity not otherwise prohibited, shall be determined by the Board of Auditors, at an hourly, daily, weekly, semi-monthly or monthly Tvardzik, 13-002 Page 3 basis, and shall be comparable to compensation paid in the locality for similar services. 7. Paint Township Supervisors are compensated $25.00 for each regular and/or special Township meeting attended. a. Meeting pay is a separate form of compensation from wages earned by Supervisors in an employee capacity. b. Meeting pay is not issued to Supervisors for attending Planning Commission, Sewer/Water Authority, training seminars/conferences, etc. c. The meeting pay was not established via ordinance. 8. Tvardzik received meeting pay throughout his tenure as a Supervisor for his attendance at Township Board meetings. a. Tvardzik received meeting pay for attending regular and special Board meetings, without exceeding the maximum compensation threshold set for Supervisors per the Second Class Township Code, Section 65606. 9. The Township employs an office staff, Police Department, Public Works Department, and Emergency Management Coordinator. a. The office staff consists of a full-time Office Secretary (Wendy Senior) and (since January 2011) a full-time Office Clerk (Linda Taormina). 1. The office staff reports directly to the Board of Supervisors. b. Township employees are members of a collective bargaining unit and adhere to contractual agreements between the unit and the Township. 10. The office staff has historically performed the duties of a Township Secretary/Treasurer/Administrator with the exception of signing Township checks. a. A Member of the Board of Supervisors has held the official title of Secretary/Treasurer. 11. Signature authority over Township financial accounts is maintained by all three (3) Supervisors. a. Township checks require the combined live signatures of any two authorized signatories. 1. Signature stamps are not utilized. 12. The office staff is responsible for the generation of Township meeting minutes. a. Handwritten notes taken contemporaneous with the meeting are utilized to assist in drafting meeting minutes. 1. Township meetings are not audio recorded. b. The previous meeting’s minutes are provided to the Supervisors for review prior to the next regular monthly meeting. Tvardzik, 13-002 Page 4 1. The minutes of each meeting are approved for accuracy at the subsequent regular meeting. 13. The office staff is responsible for the timely payment of Township bills. a. Upon receipt of an invoice, a Township check will be drafted, sometimes between meeting dates, in preparation for signing by a Township Supervisor. b. Invoices are generally reviewed by the Supervisors signing the check at the time it is presented by Township staff. 1. Invoices are available for Supervisors to review prior to signing any check. 2. Invoices are not reviewed by the entire Board prior to a check being issued for payment. 14. The office staff compiles a meeting packet for each Supervisor prior to each regular monthly meeting, that is made available by the day of meeting. a. The packet includes a meeting agenda, the previous month’s minutes, a financial report, police report, and various correspondences. b. The packet is placed by staff in the Supervisor’s mailbox located in the office. c. The packet does not include payroll information. 15. The office staff is responsible for the generation/distribution of Township payroll. a. Township employees submit timesheets to the office staff for payroll purposes. 1. Timesheets represent work completed for the past two (2) week period. b. The office staff inputs information from timesheets into a Quickbook program for issuance of paychecks. c. Paychecks are issued to employees on a bi-weekly basis. 16. Payroll checks are approved upon review of the respective timesheet(s) and the signing of the checks by any two (2) of the three (3) Supervisors. a. Supervisors are to review and initial employee timesheets for each pay period falling between regularly scheduled meetings. b. Paychecks are signed by any available Supervisor, upon review of the timesheets. c. Payroll is not approved as a line item/regular motion at Township Board meetings. 17. The Board may appoint Supervisors to serve as Township employees, per the Township Code, Section 65602. Tvardzik, 13-002 Page 5 a. Historically, the Board has appointed any Supervisors who will serve in an employee capacity for the Township during the annual Supervisors re- organization meeting. b. The Board typically appoints a Supervisor(s) to serve as the Township Roadmaster. c. The Board appoints the remaining Supervisors to work on an “as-needed” basis for the Township, via a motion separate from the appointment of the Roadmaster. 1. The Board does not identify the type of work the Supervisor(s) are to perform in order to receive compensation. 2. The Board likewise does not limit the number of hours a Supervisor can claim while working on an “as-needed” basis. d. The Township does not have a job description for the Roadmaster or the "as-needed” working Supervisors. 18. The Second Class Township Code, Section 65901-Township Auditors, Meetings, Duties, and Quorum, states that the board of auditors shall determine the compensation for any Supervisor employed by the township. 19. The Auditors have annually established the compensation for Supervisors working as Township employees at the Auditors’ annual re-organization meeting. a. The Township Auditors have consistently set the wage and benefits for the Roadmaster pursuant to a specific motion. b. The Auditors’ minutes identify the Supervisors as having the option of accepting the Township labor wages for any time worked “as-needed.” 1. The Auditors do not identify or discuss the type of work the Supervisor(s) are to perform in order to receive hourly compensation. 2. The Auditors do not limit the number of hours a Supervisor can claim for compensation. c. Tvardzik, as a Township Supervisor, attended the Auditors meetings from 2009 to 2012. 20. The Auditors have specified that, in order for a Supervisor to be compensated, the remaining two (2) Supervisors must approve the hours/timesheet. a. The requirement is consistently noted in the annual minutes of the Auditors’ re-organization meetings. b. The Board has not consistently followed the Auditors’ requirement regarding Supervisor approval of working Supervisor timesheets prior to issuance of a paycheck. c. The Auditors have not enforced those requirements regarding approval of working Supervisor timesheets prior to receipt of compensation. 21. The Board regularly appoints a Supervisor to serve as the Township Secretary/Treasurer, in accordance with Sections 65701 and 65802 of the Code. Tvardzik, 13-002 Page 6 a. The Township does not have a specific job description for the Supervisor appointed as Secretary/Treasurer. 22. Section 65802 of the Code lists the Township Secretary’s duties as follows: a. Record the proceedings of the board of supervisors and all court orders relative to the laying out, opening and vacating of roads in a minute book. b. Preserve the minute book and other records and turn them over to the successor in office. c. With the consent of the board of supervisors and in conformity with other laws governing the retention and disposition of municipal records, have the authority to destroy records and papers of the township other than the minute book and account book after the lapse of six (6) years from the date of the records. d. Inform supervisors of all township meetings, including special meetings of the board of supervisors. 23. Section 65704lists the Township Treasurer's dutiesas follows: a. Receive all moneys due the township and deposit them promptly in a designated depository in the name of the township. b. Keep distinct and accurate accounts of all sums received from taxes and other sources, which accounts shall be open to the inspection of the board of supervisors and any citizen of this Commonwealth. c. Pay out all moneys of the township only on direction by the board of supervisors. d. Annually state the accounts and make them available to the board of auditors for settlement. e. Preserve the account books, papers, documents and other records of the office and turn them over to the successor in office. 24. Both Sections 65703 and 65803 require that the Board of Auditors set compensation for a Supervisor performing the duties of the Township Secretary/Treasurer. a. The Township Auditors were not familiar with provisions of the Second Class Township Code, specifically related to Supervisors compensation. b. The day-to-day operations (i.e. meeting packet preparation, accounts payable/receivable, retrieving mail, payroll processing) are completed by the office staff. 25. Despite a requirement in the Code, between 2008 and 2012 the Township Auditors did not set the compensation for a Supervisor appointed as Secretary/Treasurer. a. The Township Supervisor appointed as Secretary/Treasurer historically has not claimed or received an hourly wage for performing Supervisor[sic]/Treasurer duties. Tvardzik, 13-002 Page 7 b. Traditionally, the appointment of the Secretary/Treasurer position was merely a naming of a Board officer position, and was not an appointment to a Township employment position. THE FOLLOWING FINDINGS ARE IN RELATION TO TVARDZIK ASSUMING THE POSITION OF TOWNSHIP CONSULTANT/LIAISON FOR VARIOUS TOWNSHIP DEVELOPMENTS. 26. Tvardzik and Supervisor Kenneth Holsopple were appointed by the Board as part- time or “as-needed” working Supervisors at the January 2008 Supervisors re- organization meeting. a. The Township does not have a job description for a part-time working Supervisor. 1. Part-time working Supervisors were to work “as-needed” by the Township. b. Holsopple also served as the appointed Township Secretary/Treasurer in 2008. 1. Holsopple did not submit timesheets or receive compensation as a part-time working Supervisor, nor was he compensated in relation to his position as the appointed Township Secretary/Treasurer. 27. The Township Auditor minutes covering the time period of 2008 to 2012 identify the wages set by the elected Auditors for the Township Supervisors, including Tvardzik, as listed below: Year Approved Supervisor Wages 2008 Roadmaster David Blough-$15.90/hour, with benefits. Auditors: Edythe F. Zschoche Wages for other Supervisors Ken Holsopple and Tvardzik have the option to accept labor’s wages for their time if so Lorraine Hissong desired. Each Supervisor submitting hours for compensation must have two other Supervisors approve the hours before Walter Boziak being paid. (absent) 2009 Roadmaster David Blough-$16.40/hour, with benefits. Auditors: Edythe F. Zschoche Wages for other Supervisors Ken Holsopple and Tvardzik have the option to accept labor’s wages for their time if so Lorraine Hissong desired. Each Supervisor submitting hours for compensation must have two other Supervisors approve the hours before Vacancy being paid. 2010 Roadmaster David Blough-$16.90/hour, with benefits. Auditors: Edythe F. Zschoche Wages for other Supervisors Joseph Huff and Tvardzik are the same as labor wages for their time if so desired Lorraine Hissong ($15.18/hour). Each Supervisor submitting hours for compensation must have two other Supervisors approve the Michael McCracken hours before being paid. 2011 Roadmaster David Blough-$17.40/hour, with benefits. Auditors: Edythe F. Zschoche Wages for other Supervisors Joseph Huff and Tvardzik are (absent) the same as labor wages at $15.68/hour. Each Supervisor submitting hours for compensation must have two other Tvardzik, 13-002 Page 8 Year Approved Supervisor Wages Lorraine Hissong Supervisors approve the hours before being paid. Michael McCracken 2012 Roadmaster David Blough-$716.00/weekly, with benefits. Auditors: Lorrie Polash Wages for other Supervisors Huff and Tvardzik are the same as labor wages at $16.18/hour. Each Supervisor submitting Lorraine Hissong hours for compensation must have two other Supervisors approve the hours before being paid. These wages go in Michael McCracken effect February 2012. 28. In 2008, the Auditors approved an hourly wage for Tvardzik and Holsopple equivalent to the laborer wage. a. The Township’s non-supervisor laborer wage set in 2008 for Tvardzik and Holsopple was $14.18. b. The Auditors did not specify whether the hourly wage was set in regards to working Supervisor compensation or as the Secretary/Treasurer. 1. The Auditors did not approve a separate hourly wage for Holsopple in regard to his appointment as the Secretary/Treasurer. 29. The Auditors approved an hourly wage for Tvardzik in 2008, with the expectation Tvardzik would be compensated for performing “as-needed” work for the Township. a. The Auditors did not set any parameters regarding the specific type of work for which Tvardzik could claim compensation. 30. Between 2000 and 2008, several residential subdivision projects were initiated within the Township. a. Any residential subdivision project would require the approval of development plans by the Planning Commission and the Board of Supervisors. b. Residential subdivision projects prior to 2008 were administered collectively by the Township Engineers, Supervisors, and the respective developers. 1. At the time of the last residential subdivision project, all three (3) Supervisors were appointed Roadmasters. 31. As of January 2008, there were two (2) major residential subdivision projects (Winchester Estates and RidgeView Estates/Ramblin Hills) pending within the Township. a. Ground breaking had not begun on either project as of January 2008. 32. The Township Sewer Disposal System Rules and Regulations (hereafter “Township Sewer Rules”), adopted July 30, 1990, and revised March 2008, set the fees, rates, and testing/inspection parameters of Township sewer systems for new and existing developments. a. Township Sewer Rules, Article XII-Section 1214 to 1218, require the developer of a sewage line to reimburse the Township for all costs associated with the plan review, inspections, testing, and legal fees. Tvardzik, 13-002 Page 9 33. The Township Sewer Rules were applicable to the Winchester Estates and RidgeView Estates/Ramblin Hills residential subdivision projects. a. Tvardzik had notified and discussed the inspection requirements/fees with the project developers for Winchester Estates and RidgeView Estates/Ramblin Hills prior to construction. b. The residential subdivision projects required inspections of the developments’ infrastructure, specifically sewer/water lines, manholes, and roads. 1. The Township was responsible for the inspections of the sewer lines, manholes, and roads, while the local water authority (Windber Authority) inspected the waterlines. 2. Any one of the available Supervisors/Roadmasters was authorized to perform sewer inspections. 3. Tvardzik participated in Board discussions regarding visual inspection of the gravel depth and grade requirements in early 2008. c. The Township ultimately assumed ownership of the sewer system and roads upon completion of the subdivision projects. 34. Tvardzik had extensive knowledge of the Winchester Estates residential subdivision project in 2008, as a result of reviewing project plans and designs while serving on the Township Planning Commission. 35. The Board had discussed the Township and developer requirements pertaining to the residential subdivision projects during regular Township public meetings in early 2008. a. In discussions with the Board, Tvardzik offered to serve as a consultant/liaison between the developers/investors and the Township Engineer for the residential subdivision projects. b. The other Supervisors informally accepted Tvardzik’s offer and agreed that Tvardzik would serve as the consultant/liaison between the Township and respective parties associated with the projects (i.e., developers, contractors, engineers). 1. The Board took no official action to appoint Tvardzik as the consultant/liaison. c. As consultant/liaison, Tvardzik would also conduct inspections of sewer lines, manholes, etc. 1. The Board considered hiring an inspector, but concerns surrounding the financial costs and availability of an inspector influenced the Board to utilize Tvardzik. 2. Tvardzik’s services were believed to cost less than that of a contracted inspector. Tvardzik, 13-002 Page 10 3. The remaining Board Members agreed during a public meeting to have Tvardzik perform sewage inspections, and for him to be compensated at the Roadmaster hourly wage. 4. The Board did not take official action on Tvardzik serving as the Inspector or project consultant/liaison. 36. The Board was not actively advertising or soliciting for applicants to serve as a consultant/liaison for the project(s) at the time in 2008 when Tvardzik assumed the role. a. The Supervisors were in agreement that a consultant/liaison for the project(s) would be beneficial to the Township. b. The Supervisors expected Tvardzik to submit timesheets and receive compensation for any of Tvardzik’s work associated with the subdivision projects. 37. At the February 4, 2008, regular meeting of the Township, Tvardzik reported as having met with Winchester Estates developer John Rugg to discuss inspection requirements for the development. a. Tvardzik specifically discussed the visual inspection requirements, construction drawings, as-built drawings, Inspector’s responsibilities, and inspection fees. b. Tvardzik, acting as the Township consultant/liaison with the project developers, was the only Supervisor who met with Rugg regarding the inspection requirements. 38. Between May 19 and November 22, 2008, Tvardzik, acting as the Township consultant/liaison with the project developers, performed visual inspections of sewer lines and manholes at Winchester Estates and RidgeView Estates residential subdivision projects with the expectation of being compensated. a. The visual inspections were agreed upon between the respective project developers and the Board in accordance with the Township Sewer Rules. 1. Project developers/contractors regularly contacted the Township building to inform Tvardzik when the visual inspections were needed. 2. Tvardzik completed the inspections with the developers/contractors based on his availability. b. The daily visual inspections consisted of a visual check of the gravel depth and grade surrounding the sewer lines. 1. The daily visual inspections were not required to be performed by a certified Engineer or Inspector. 39. From January to May 2008, Tvardzik performed various administrative duties without compensation, in addition to consultant/liaison services, for the residential subdivision projects, at the Township building on a daily basis. a. Making/receiving phone calls for Township business; b. Signing Township checks; Tvardzik, 13-002 Page 11 c. Monitoring resident complaints/questions; d. Generating Township correspondences; e. Reviewing Township related paperwork; and f. Arranging and/or attending meetings with State Representatives, project developers, and Township Engineers. 40. Tvardzik regularly provided updates and answered questions at Township meetings throughout 2008, relating to various Township projects/issues, including PENN Vest grant application status regarding funding of a sewer expansion project, which was a separate project being pursued by the Township and was not related to any of the ongoing residential subdivision projects. 41. Tvardzik typically worked at the Township building from approximately 8:00 a.m./8:30 a.m. to noon. a. The remaining Supervisors were aware of Tvardzik working at the Township building. b. Tvardzik worked at the Township building without being directed to do so by the Board. c. At times, Tvardzik worked past noon based on work load or scheduled inspections. 42. Tvardzik did not submit timesheets or receive compensation from January through May 18, 2008, for any laborer or administrative duties. 43. Starting on or about May 19, 2008, Tvardzik began submitting timesheets for various duties, including performing the daily visual inspections for the Winchester Estates and RidgeView Estates residential subdivision projects, as well as other administrative functions. a. Administrative tasks for which Tvardzik sought compensation from the Township include, but are not limited to, the following: 1. Obtaining and providing project plans to DEP and county representatives for review. 2. Managing resident complaints/issues associated with a storm water run-off at RidgeView Estates. 3. Authorizing and/or arranging the release of necessary permits associated with RidgeView Estates. 44. In 2008, Tvardzik submitted two invoices (#1206 and #1222) totaling $3,124.35 (excluding mileage) to the Township office, seeking payment for the daily visual inspections he performed at Winchester Estates covering the time period of May 19 to August 16. a. The information from the invoices was utilized by the office staff to bill Winchester Estates for inspection costs incurred by the Township, and to generate Tvardzik’s paychecks. Tvardzik, 13-002 Page 12 b. The invoices listed the description of work, hours claimed, hourly rate, mileage reimbursement, and total amount owed. 45. Tvardzik listed on invoices submitted to the developers the Roadmaster’s hourly wage and not the laborer’s hourly wage as was approved for him by the Auditors. a. The invoices were not initialed or signed by any of the remaining Supervisors as having been reviewed/approved. b. The remaining Supervisors were aware that Tvardzik performed the daily inspections, with the expectation Tvardzik would be compensated for the work. 46. The Winchester Estates ownership group, Wessley LLC, issued two (2) payments to the Township via check #10022 and #10023, both dated October 28, 2008, in the total amount of $3,303.18. a. The checks were deposited into the Township’s general fund account. b. The check payments memo listed “Inspection fee for subdivision.” c. The payment by Wessley LLC is not exclusive to Tvardzik’s submitted invoices, and accounts for the approved overpayment. 47. Tvardzik submitted two (2) undated invoices totaling $975.80 to the Township office staff associated with work performed specifically for RidgeView Estates which included telephone calls and meeting with developers, and obtaining and providing project plans for DEP and county representatives, in addition to performing inspections. a. Information from the invoices was utilized by the office staff to bill RidgeView Estates for costs incurred by the Township and to generate Tvardzik’s paychecks. b. The invoices listed the work performed and the total amount of hours to complete the work. c. The specific amount of time in performing the inspections was not detailed on the invoices. d. The invoices were not initialed or signed by any of the remaining Supervisors as having been reviewed/approved. e. The invoices were not dated or numbered. f. The invoices were billed at the 2008 Roadmaster’s hourly rate of $15.90. g. Tvardzik made a mathematical error on the invoices, resulting in an invoice total of $975.80; however, the actual fee should have been listed as $985.80. 48. RidgeView Estates made payment to the Township via check #4, dated January 9, 2009, in the amount of $1,178.00. a. The check was deposited into the Township’s general fund account by the office staff. Tvardzik, 13-002 Page 13 b. The check payment memo lists “Andy’s Time.” c. The payment made by RidgeView Estates is not exclusive to Tvardzik’s submitted invoices and accounts for the approved overpayment. 49. During 2008, Tvardzik was issued a total of three (3) paychecks from the Township totaling $4,110.15 for hours claimed on invoices submitted in relation to the Winchester Estates and RidgeView Estates residential subdivision projects, as detailed below: Check Pay Period Check No. Signatures Gross Hours Mileage/ Date Amount Reimbursement 08-06-08 7/20-8/2 20497 DB/AT 2,830.20 178 409.45 09-23-08 8/31-9/13 20615 DB/AT 294.15 18.5 69.69 11-24-08 11/09-11/22 20798 DB/AT 985.80 62 106.05 Total $4,110.15 258.5 $585.19 Signatures: DB-David Blough; AT-Andy Tvardzik a. Tvardzik was compensated at the hourly wage of the Township Roadmaster in 2008 ($15.90) and not his set “as-needed” hourly wage of $14.18 as set by the Auditors. 1. Tvardzik listed the Roadmaster’s 2008 hourly wage of $15.90 on his invoices submitted for payment. b. The paychecks issued to Tvardzik totaling $4,110.15 did not include mileage reimbursement. 50. Tvardzik’s total compensation at the Auditors’ approved 2008 “as-needed” hourly rate would have been $3,665.53 (258.5hrs. X $14.18/hr). a. Tvardzik received an additional $444.62 ($4,110.15 - $3,665.53) by receiving the Roadmaster’s hourly wage as opposed to his “as-needed” working Supervisor wage in 2008. 1. Tvardzik was not appointed Roadmaster by the Board of Supervisors in 2008 but claimed the Roadmaster hourly rate when submitting invoices. b. The office staff processed Tvardzik’s pay at the Roadmaster’s hourly rate, without having been instructed by any remaining Supervisor to do so. 1. The office staff did not question Tvardzik about the information listed on the invoices, including the Roadmaster’s hourly wage he claimed. 2. The office staff did not receive or process paychecks for any other Supervisors in the past for performing inspections or administrative services similar to the work that had been completed by Tvardzik. c. The Board of Supervisors had informally agreed that Tvardzik be compensated at the Roadmaster rate. 51. Tvardzik consistently signed paychecks issued to himself in 2008, as an authorized Township signatory, even though the hourly rate he received ($15.00) was not the approved hourly rate ($14.18) set by the Auditors. Tvardzik, 13-002 Page 14 a. Tvardzik endorsed Township paychecks issued to him in 2008, and deposited the paychecks into his personal bank account at Slovenian Savings and Loan Association (account #[number redacted]), or paychecks were cashed by Tvardzik at the Slovenian Savings and Loan Association, Windber, Pennsylvania branch location. 1. Tvardzik and his spouse are the authorized signatories for Slovenian Savings and Loan Association account #[number redacted]. b. Tvardzik did not question any Township officials as to what hourly wage he should be compensated. c. In 2008, Tvardzik claimed hourly wages that were not authorized by the Auditors and subsequently approved the respective paychecks that compensated him at an unauthorized hourly rate. 52. In 2008, Tvardzik received compensation totaling $4,110.15asa result of his submission of invoices for hours worked, which included inspection duties, permitting, development plans and managing residential complaints. a. 2008 W-2 Wage and Tax Statements issued to Tvardzik confirmed compensation totaling $4,110.15. 53. At the January 2009 Supervisors re-organization meeting, the Board appointed Supervisor David Blough as the only Township-employed Supervisor. a. In 2009, the Board of Supervisors did not specifically appoint Tvardzik or any other Supervisor as a Township employee. 1. The 2009 re-organization minutes only list the appointment of Blough as a full-time/part-time/as-needed Township employee in the position of Roadmaster. 54. In 2009, the Auditors approved an hourly wage for Tvardzik equivalent to the Township laborer’s wage. a. The Township laborer’s wage in 2009 was $14.68. 55. The Auditors approved an hourly wage for Tvardzik in 2009, in the event that Tvardzik was appointed to perform “as-needed” Township duties. a. The Auditors approved an hourly wage for Tvardzik in 2009, without specifically identifying the type of work he could claim to be compensated or the number/limit of hours he could claim. b. The Auditors do not regularly review the Board of Supervisors re- organization minutes, nor do they receive any additional information from the Supervisors that may assist in determining which Supervisors are appointed as Township employees. c. The Auditors believed the two (2) remaining Supervisors were considered part-time/as-needed Township employees. 56. In 2009, Tvardzik worked from the Township building on weekdays and continued to perform administrative functions relating to various Township projects, including consultant/liaison work relating to the residential subdivision projects, and the day- to-day operations of the Township. Tvardzik, 13-002 Page 15 a. Tvardzik typically worked from approximately 8:00 a.m./8:30 a.m. to noon. 57. In 2009, Tvardzik regularly submitted descriptive bi-weekly timesheets that listed his work performed, which included but was not limited to the following: a. Visual inspections of sewer lines and manholes; b. Making/receiving phone calls for Township business; c. Signing Township checks; d. Monitoring resident complaints/questions; e. Generating Township correspondences; f. Reviewing Township paperwork and bills; g. Arranging and/or attending meetings with State Representatives, project developers, and Township Engineers; and h. Researching/reviewing grant applications. 58. Tvardzik claimed on his descriptive timesheets in 2009 as having worked a total of 697.15 hours. a. The timesheets documented that Tvardzik performed a total of 85.5 hours of inspections at RidgeView Estates and Ramblin Hills in 2009. 59. Tvardzik regularly gave updates at Township meetings in 2009 relating to Township projects/issues, including financial assistance for local fire companies, and PENN Vest grant application status for funding of the sewer expansion project. a. At the February 17, 2009, regular Township meeting, Tvardzik and Blough reported as having met with officials from local fire companies regarding the Township providing financial assistance. b. At the May 4, 2009, regular Township meeting, Tvardzik reported that he would arrange meetings with county and state legislatures [sic] in regard to obtaining grant funding for the sewer expansion project. c. At the June 15, 2009, regular Township meeting, Tvardzik reported that he met with Representative Richard Kasunic in regard to applying for PENN Vest and H2O grants. d. The above listed items were consistent with the duties and responsibilities of a Township Supervisor. 60. In 2009, Tvardzik submitted nineteen (19) timesheets to the office personnel detailing the work he performed throughout each pay period. a. Eighteen (18) of the nineteen (19) timesheets were not initialed/signed by the other two (2) Supervisors for approval as was required by the Auditors. 1. Tvardzik routinely initialed/signed his own timesheets that were submitted for payroll processing. Tvardzik, 13-002 Page 16 61. In 2009, Tvardzik was issued a total of nineteen (19) paychecks, in the total amount of $11,160.47, for claimed hours worked, which included administrative work performed at the Township. a. Tvardzik received compensation at the hourly rate set by the Auditors for Township laborers. b. Tvardzik’s compensation did not include mileage reimbursement. 62. Tvardzik signed all nineteen (19) paychecks issued to himself in 2009, as an authorized Township signatory. a. Tvardzik endorsed all nineteen (19) Township paychecks issued to him in 2009. b. Tvardzik’s paychecks were deposited into Tvardzik’s Slovenian Savings and Loan Association personal bank account or cashed by him at the Slovenian Savings and Loan Association, Windber, Pennsylvania branch location. 63. Tvardzik’s 2009 Township compensation totaled $10,235.63 as a result of his submission of bi-weekly timesheets for hours worked which included time related to his position as a Township Supervisor and his role as the consultant/liaison for the residential subdivision projects. a. 2009 W-2 Wage and Tax Statements issued to Tvardzik confirmed compensation totaling $10,235.63. 64. At the January 2010 Supervisors re-organization meeting, Tvardzik was appointed as the Township Secretary/Treasurer. 65. Supervisors who served as the Township Secretary/Treasurer prior to Tvardzik’s appointment were not compensated for performing duties as the Secretary/Treasurer. a. Supervisors appointed as Secretary/Treasurer usually performed few duties related to the position that would require compensation. b. The Auditors historically have not set a wage/benefits specific for the Township Secretary/Treasurer. 1. The Auditors routinely set wage/benefits for the Township Roadmaster and Supervisors who are considered as an “as-needed” employee. 2. The Auditors approve an hourly wage for Supervisors working on an “as-needed” basis with the understanding the Supervisor can receive compensation for work relating to the Township. 66. The Auditors did not approve a specific wage/benefit for Tvardzik in his position as the Secretary/Treasurer. a. The Auditors approved an hourly wage for Tvardzik at the same hourly wage as received by Township laborers, $15.18/hour. 1. The Auditors approved an hourly wage for Tvardzik in 2010, with the expectation Tvardzik would be compensated by the Township for related work. Tvardzik, 13-002 Page 17 b. The Auditors approved an hourly wage for Tvardzik in 2010 in the event Tvardzik was appointed as a Township employee at the Board’s 2010 re- organization meeting. 67. Throughout 2010, Tvardzik continued to work on weekdays at the Township building performing work related to various Township projects, including residential subdivision projects and a PENN Vest funded sewer expansion project as the Township’s consultant/liaison. a. Tvardzik typically worked from approximately 8:00 a.m./8:30 a.m. to noon. 68. The type of duties completed by Tvardzik throughout 2010 was similar to the work he had completed in 2008 and 2009, including: a. Visual inspections of sewer lines and manholes; b. Making/receiving phone calls for Township business; c. Signing Township checks; d. Monitoring resident complaints/questions; e. Generating Township correspondences; f. Arranging and/or attending meetings with State Representatives, project developers, and Township Engineers; and g. Researching/reviewing grant applications. 69. From 2008 to 2010, the Township Engineering firm, The EADS Group, arranged and monitored the technical pressure tests of the sanitary sewer system for the Winchester Estates and RidgeView Estates/Ramblin Hills developments. a. The technical pressure tests were required to be completed in accordance with the Township Sewer Rules. b. The tests were arranged after Tvardzik completed the visual inspections. c. Tvardzik was not certified to perform the technical pressure tests. d. Tvardzik included time observing the technical pressure tests on behalf of the Township on his 2008 and 2009 invoices and timesheets. 70. Project developers of Winchester Estates and RidgeView Estates/Ramblin Hills made payments to the Township, throughout the project, to cover Township costs (i.e., legal and engineering fees, inspections costs), in accordance with the Township Sewer Rules, Article XII-Section 1214 to 1218. a. Payments were received at the Township building and deposited by the office staff into the Township’s general fund account. b. Payments received by the Township from the developers included the costs of the daily inspections performed by Tvardzik. 71. Total payments received by the Township from the developers covering the time period of 2008 to 2010 are as follows: Tvardzik, 13-002 Page 18 Year Payments 2008 $6,545.39 2009 $14,000.00 2010 $4,000.00 Total $24,545.39 a. The $24,545.39 paid to the Township includes amounts the Township paid to Tvardzik for completing inspections at Winchester Estates and RidgeView Estates and various administrative tasks relating to RidgeView Estates. 72. By early 2010, the Board had discussed and agreed to pursue an addition to the Township’s Police building. a. Tvardzik was present at the Board meeting and participated in the discussions, expressing his interest in pursuing the project. 73. Tvardzik contacted Pawlowski and Haman Architects sometime prior to April 22, 2010, requesting development designs for the addition to the Township’s Police building. a. Pawlowski and Haman Architects responded to Tvardzik’s request on or about April 22, 2010, with schematic and development designs for the addition to the Township’s Police building. b. Pawlowski and Haman Architects had provided the architectural drawings for the initial Township and Police buildings in the early 2000s. 74. In addition to the schematic and development designs, Pawlowski and Haman Architects offered to perform administrative services for the Township for the project, which included but were not limited to: a. Observe, review and report on construction progress; b. Attend scheduled project meetings; c. Review shop drawings as requested; d. Review payment and process change requests; and e. Assist in obtaining final project closeout documents. 75. Pawlowski and Haman Architects charged a fee of approximately twenty-five percent (25%) of their total costs for administrative services. a. Pawlowski and Haman Architect estimated an administrative fee for the Paint Township Police building project of approximately $6,000.00. 1. Pawlowski and Haman estimated that total costs for the project were $23,160.00. 76. Tvardzik informed Eash (Project Manager for JPT) that he (Tvardzik) would be Project Administrator due to his construction background. 77. In or about April 2010, Tvardzik began performing the administrative duties for the Police building project, in addition to the various other administrative duties he was Tvardzik, 13-002 Page 19 performing for the Township, at or about the same time that Pawlowski and Haman Architects offered to perform administrative services in relation to the project. a. The remaining Supervisors were aware of and permitted Tvardzik to perform the administrative duties for the project, with the expectation Tvardzik would be compensated. 1. The Supervisors did not take any official action in approving/ appointing Tvardzik to be the project administrator. 78. During 2010, Tvardzik submitted non-descriptive, bi-weekly timesheets to the Township which documented only the hours he worked each day, without detailing the specific work performed. a. Tvardzik claimed to have worked a total of 1,062.5 hours in 2010. b. Tvardzik approved all of his timesheets in 2010. 1. The other Supervisors approved timesheets on two occasions in 2010. c. Although Tvardzik did not complete descriptive timesheets in 2010, project notes of RidgeView Estates and Ramblin Hills document Tvardzik performing a total of 72 hours of inspections from November 17, 2009, to October 19, 2010. d. None of the timesheets submitted by Tvardzik detailed duties performed. 79. In 2010, Tvardzik was issued a total of twenty-five (25) paychecks totaling $16,079.00, as a result of submitting timesheets claiming hours for work performed, including administrative duties, on behalf of the Township. a. Tvardzik received compensation at his 2010 hourly rate of $15.18 as approved by the Auditors. 80. Tvardzik signed twenty-four (24) of the Township paychecks issued to himself in 2010, as an authorized Township signatory. a. Tvardzik’s paychecks were deposited into his personal bank account (account #[number redacted]) or were cashed by Tvardzik at the Slovenian Savings and Loan Association, Windber Branch. 81. For 2010, Tvardzik received compensation totaling $16,079.00, as a result of his submission of non-descriptive, bi-weekly timesheets which included hours worked that were directly related to his position as a Township Supervisor, and his role as the consultant/liaison for the residential subdivision projects, sewer expansion projects, and/or Township Police building expansion project. a. 2010 W-2 Wage and Tax Statements issued to Tvardzik confirmed compensation totaling $16,079.00. 82. Prior to 2010 the Township did not provide its residents with a public sanitary sewer system. a. Only a limited number of Township residents had access to an integrated sanitary sewer system. Tvardzik, 13-002 Page 20 1. The majority of residents utilized on lot/septic systems. b. The Township had regularly inquired about/applied for PENN Vest funding without success in the years leading up to 2010. c. The Township was notified by PENN Vest in April 2010 that it was awarded funding for a sewer expansion project. d. The Board approved the Township Engineer (The EADS Group) proposal for the PENN Vest funded sanitary sewer project at the May 18, 2010, regular meeting. e. Tvardzik performed administrative functions related to the application process for PENN Vest funding. 83. At an October 25, 2010, special meeting, the Supervisors approved Resolution 2010-10 declaring the official intent of the Township to reimburse an interim loan through First Commonwealth Bank (loan account # [number redacted]) in the amount of one million dollars for the sewer project. a. The interim loan was obtained to provide readily accessible funds in association with the sewer project. b. Tvardzik executed the Resolution as the Secretary/Treasurer and took part in the unanimous approval of Resolution 2010-10. 84. The procedures for the disbursement of funds from the interim loan were as follows: a. Requisitions were generated by the office staff at the direction of a Supervisor; b. The requisition was forwarded to First Commonwealth Bank for approval; c. Once approval was given, the office staff generated the respective check payment; d. The check payment was signed by any two of the three Supervisors. 85. Requisitions for payments from the interim loan account were completed by the Township office staff at the direction of Tvardzik, or on occasion, one of the remaining Supervisors, and then submitted to First Commonwealth Bank for the appropriate approval of disbursement of funds. a. Tvardzik was also the Township Secretary/Treasurer at the time he gave direction to staff to complete the requisitions. b. Interim loan requisitions required the signatures of the Board Chairman, Solicitor, and Township Engineer, and attestation of the Township Secretary/Treasurer. c. Interim loan requisitions were most often completed and submitted to First Commonwealth Bank by the office staff at Tvardzik’s direction. 1. Occasionally interim loan requisitions were completed and submitted to First Commonwealth Bank by the office staff at the direction of the remaining Supervisors. Tvardzik, 13-002 Page 21 d. Requisitions were subsequently reviewed and approved for submittal by the Board of Supervisors at the following regular meeting. 86. At the January 2011 Supervisors re-organization meeting, Tvardzik was re- appointed as the Township Secretary/Treasurer. a. The 2011 re-organization meeting minutes do not list the appointment of Tvardzik to any other Township position. 87. In 2011, the Auditors set Tvardzik’s wage at $15.68/hour, which was the same as the Township laborer’s hourly wage. a. The Auditors approved the hourly wage for Tvardzik with the expectation Tvardzik could perform work for the Township and be compensated. b. The Auditor minutes did not set a specific wage/benefits in relation to the Township Secretary/Treasurer. 88. During 2011, Tvardzik continued to work at the Township building on weekdays and performed consulting/liaison work related to various Township projects, to include the residential subdivisions projects, sewer expansion project, and performed the “administrative” duties associated with the Township Police building expansion project. a. Some of the duties were consistent with the position of Secretary/Treasurer. b. Tvardzik typically worked from approximately 8:00 a.m./8:30 a.m. to noon. 89. On or about January 18, 2011, Tvardzik directed Township Office Secretary Senior to complete interim loan requisition #13 (hereafter “Req. 13”) in the amount of $29,500.00. a. The $29,500.00 requisition included $16,000.00 for the wages paid to Tvardzik by the Township in 2010 for services performed in association with the sewer project, as well as other administrative duties performed by Tvardzik. 1. Tvardzik submitted Township paystub #22890 to Senior in justification of the requested amount of $16,000.00. 2. Paystub #22890 included Tvardzik’s year-to-date salary (as of November 23, 2010) as being $15,578.06. aa. Tvardzik’s 2010 earnings totaled $16,079.00. 90. Req. 13 was signed by Tvardzik both as the Secretary/Treasurer and as the Board Chairman. a. Blough was the Board Chairman in 2011. 91. On January 18, 2011, at approximately 2:00 p.m., Tvardzik submitted to First Commonwealth Bank, via facsimile transmission, Req. 13 in the amount of $29,500.00, which included $16,000.00 as reimbursement to the Township for wages paid to him in 2010. a. Tvardzik’s total 2010 earnings were not exclusive to work associated with the sewer project. Tvardzik, 13-002 Page 22 1. Tvardzik completed duties related to the Police building and other administrative functions for the Township. 92. Tvardzik faxed Req. 13 and the appropriate support documentation to First Commonwealth Bank without the review/signature of Board Chairman David Blough. a. The remaining Supervisors were unaware of Tvardzik submitting Req. 13 to First Commonwealth Bank. 1. The remaining Supervisors believed that the Township was permitted to submit a requisition to be reimbursed for wages incurred by Tvardzik associated with the sewer project. b. First Commonwealth Bank authorized the release of the requested funds upon receipt of the requisition along with support documentation confirming wages paid to Tvardzik. 93. The PENN Vest grant did not include an allocation for the Township to be reimbursed for Township employee wages incurred as a result of the project. a. The remaining Supervisors were informed by the Township Engineer that the PENN Vest grant could be amended to include allocations for wages paid by the Township to Tvardzik for sewer project duties. 94. On January 18, 2011, Township Office Clerk Taormina was directed by Tvardzik to generate interim loan account check #1006, dated January 18, 2011, in the amount of $29,500.00. a. Of the $29,500.00, $16,000.00 was to reimburse the Township for Tvardzik’s 2010 wages. b. Tvardzik and Blough signed the check as authorized signatories for the Township. c. Check #1006 was deposited into the Township’s general fund account by the office staff on January 19, 2011. 95. The Township received $29,500.00 from its interim loan account as a result of Tvardzik’s actions in the completion and submission of Req. 13 to First Commonwealth Bank. 96. Any interim loan requisitions were forwarded by the office staff or any one of the Supervisors to the Township Engineer for submittal of a requisition from the PENN Vest grant account. a. The Township Engineer informed the Supervisors that a request may be submitted seeking to amend the allocations from the PENN Vest grant account, in order to allot funds for wages paid by the Township in relation to the sewer project. 1. The request to alter the allocations from the PENN Vest grant account would be based on the availability of grant funds. 97. Req. 13 was forwarded to the Township Engineer for its inclusion in the PENN Vest Requisition No. 1, dated February 18, 2011. Tvardzik, 13-002 Page 23 a. The Township Engineer did not include Req. 13 within the PENN Vest Requisition No. 1, as no specific allocation existed in the PENN Vest grant to cover wages incurred by the Township. b. The Township Engineer informed Tvardzik to withhold submitting any future requisition relating to wages incurred by the Township in relation to the project. 1. The Township did not submit any other requisitions to the interim loan account or to the PENN Vest grant. 98. Tvardzik performed duties for the Township in 2011 for which he was compensated including, but not limited to, the following: a. Making/receiving phone calls for Township business; b. Signing Township checks; c. Monitoring resident complaints/questions; d. Generating Township correspondences; e. Reviewing Township paperwork and bills; f. Arranging and/or attending meetings with State Representatives, project developers, and Township Engineers; g. Researching/reviewing grant applications; and h. Overseeing the construction of the Township Police building project. i. Some of these duties were consistent with the position of Secretary/Treasurer. 99. In 2011, Tvardzik continued to submit non-descriptive, bi-weekly timesheets that listed only the hours worked each day. a. Tvardzik claimed, on timesheets, to have worked a total of 946.5 hours in 2011. 100. In 2011, Tvardzik was issued twenty-six (26) paychecks totaling $14,788.67, as a result of his submitted timesheets for work performed, including administrative duties, on behalf of the Township. a. Tvardzik received compensation at his Auditor approved 2011 hourly rate. 101. Tvardzik signed 23 of 26 paychecks issued to him in 2011, as an authorized Township signatory. a. Tvardzik endorsed all Township paychecks issued to him in 2011. b. Tvardzik’s paychecks were deposited into his personal bank account or cashed by Tvardzik at Slovenian Savings and Loan Association. 102. In 2011, Tvardzik received compensation totaling $14,791.87 for various duties including his role as the consultant/liaison for the residential subdivision projects, Tvardzik, 13-002 Page 24 sewer expansion projects, and/or Township Police building expansion project and administrative duties related to his position as Township Supervisor. a. 2011 W-2 Wage and Tax Statements issued to Tvardzik confirmed compensation totaling $14,791.87. b. No specific breakdown of hours worked related to Tvardzik’s position of Township Supervisor was available. 103. At the January 2012 Board of Supervisors re-organization meeting, Tvardzik was re-appointed by the Board of Supervisors as the Township Secretary/Treasurer. a. The 2012 re-organization meeting minutes do not list the appointment of Tvardzik to any other positions. b. The 2012 re-organization minutes do not identify the Secretary/Treasurer position as that of a Township employee. 104. In 2012, the Auditors approved an hourly wage for Tvardzik at the same rate as the Township laborer’s hourly wage of $16.18. a. The Auditors approved the hourly wage for Tvardzik in the event Tvardzik performed duties for the Township for which he could be compensated. b. The Auditor minutes did not set specific wages/benefits for Tvardzik as the Township Secretary/Treasurer. 105. Throughout 2012, Tvardzik continued to work for the Township on weekdays performing consulting/liaison work related to various Township projects, including the Township’s sewer expansion project, and performing the “administrator” duties associated with the Township Police building expansion project. a. Tvardzik typically worked from approximately 8:00 a.m./8:30 a.m. to noon. 106. Tvardzik performed various duties/tasks for the Township during 2012, including but not limited to: a. Making/receiving phone calls for Township business; b. Signing Township checks; c. Monitoring resident complaints/questions; d. Generating Township correspondences; e. Arranging and/or attending meetings with State Representatives, project developers, and Township Engineers; f. Researching/reviewing grant applications; and g. Overseeing the construction of the Township Police building project. 107. During 2012, Tvardzik submitted non-descriptive, bi-weekly timesheets that listed only the hours he worked for each day. a. Tvardzik claimed to have worked a total of 408.25 hours in 2012 as detailed on timesheets. Tvardzik, 13-002 Page 25 b. None of the timesheets completed by Tvardzik listed any specific projects or duties completed. 108. For the year 2012, Tvardzik was issued a total of eighteen (18) paychecks, in the amount of $6,571.87, as a result of his submission of timesheets. a. Tvardzik received compensation at the hourly rate approved by the Auditors for the year 2012. 109. Tvardzik signed all eighteen (18) paychecks issued to him in 2012, as an authorized Township signatory. a. Tvardzik endorsed all Township paychecks issued to him in 2012. b. Tvardzik’s paychecks were deposited into his personal bank account or cashed by Tvardzik at Slovenian Savings and Loan Association. 110. Tvardzik’s 2012 compensation totaling $6,571.87 was based on his submission of non-descriptive timesheets which included hours for various duties including his role as the consultant/liaison for the residential subdivision projects, Township Police building expansion project and administrative duties related to his position as Township Supervisor. a. 2012 W-2 Wage and Tax Statements issued to Tvardzik confirmed compensation totaling $6,571.87. 111. At the September 18, 2012, regular Board meeting, the Board accepted Tvardzik’s resignation as Secretary/Treasurer. a. The Township was experiencing financial difficulties resulting in a public petition seeking Tvardzik’s resignation. 1. The financial difficulties were related, in part, to the costs for the Township Police building expansion. b. Supervisor Joseph Huff was appointed as the Secretary/Treasurer, and Tvardzik was appointed as the Board Vice-Chairman. c. At the meeting, Tvardzik confirmed having managed the day-to-day operations of the Police building expansion project. d. Questions were raised by citizens as to the amounts paid to Tvardzik in relation to this project. 112. Between 2008 and 2012, compensation paid by the Township to Tvardzik was listed in the Township’s budget as a line item titled economic development. 113. Office Secretary Senior is responsible for drafting the Township’s preliminary budget for review by the Board of Supervisors. a. At or about the time Tvardzik was issued his first paycheck of 2008, Senior created in the 2008 Township budget line item, 463.00-Economic Development, for any wages incurred by Township officials providing services for the development of the Township. Tvardzik, 13-002 Page 26 1. Senior created the line item within the budget in response to Tvardzik submitting his timesheets. b. Senior informed the Supervisors that line item 463.00 was created to account for the wages incurred by Tvardzik. c. Line item 463.00-Economic Development did not exist as part of the approved 2008 budget. 1. Prior to 2008, Supervisors traditionally were not compensated for performing work relating to the Township’s economic development (i.e., project administrators/inspectors). 2. Prior to 2008, Senior did not budget for wages incurred by Supervisors performing project administrator/inspection services for the Township. 114. Line item 463.00-Economic Development has been included in the Township budget since 2008 as a result of Tvardzik receiving compensation for performing consulting/liaison services for the Township, as well as administrative duties. a. Tvardzik was the only Supervisor who received wages that were allocated to budgetary line item 463.00-Economic Development. b. Prior to Tvardzik, Supervisors were not compensated for performing work relating to the Township’s economic development (i.e., project administrators/inspectors). 115. The Township’s allotted budget amount for line item 463.00-Economic Development from 2008 to 2012 was as follows: Year Budgeted Tvardzik’s Actual Amount Wage 2008 -no line item- $4,110.15 2009 $1,000 $10,235.63 2010 $7,999.92 $16,079.00 2011 $10,495.19 $14,791.87 2012 $11,000.00 $6,571.87 Total $30,495.11 $51,788.52 a. From 2008 to 2012 Tvardzik was issued payments totaling $21,293.41 above the budgeted amount for line item 463.00-Economic Development. 116. Tvardzik maintained a presence at the Township building, as a Supervisor, from January 2008 to June 2008 while performing various administrative functions that are encompassed within the office of an elected Township Supervisor, without submitting timesheets or being compensated. a. Supervisors are not permitted to receive hourly wages for completing their Township duties. 117. Tvardzik’s presence did not decrease the day-to-day workload (i.e., Board meeting preparation, accounts receivable/payable, retrieving mail, answering phone calls) of the Township office staff. Tvardzik, 13-002 Page 27 118. From July 2008 to August 2012, Tvardzik consistently submitted bi-weekly timesheets claiming hours that included administrative duties associated with Township projects and the day-to-day operations of the Township. a. Tvardzik began to submit timesheets in July 2008 as the difficulty of the work became more involved and time consuming. b. Tvardzik did not perform work similar to, or the same as, the Township laborers throughout his tenure as a Supervisor. c. Tvardzik consistently performed various duties, including some that are encompassed within his Supervisor role as an elected official. d. The Auditors did not authorize a specific wage/benefit for Tvardzik to perform services in the position as the Secretary/Treasurer from 2010 to 2012. 1. Tvardzik did receive the laborer rate for each respective year. 2. Auditors were unaware a salary for the Secretary/Treasurer position should have been set. e. The remaining Supervisors were aware of and verbally approved Tvardzik receiving compensation for work completed at the Township, but did not consistently review/approve timesheets submitted by Tvardzik. f. The two remaining Supervisors performed similar administrative functions but to a lesser extent than Tvardzik from 2009 to 2012, without submitting timesheets or receiving compensation. 119. Tvardzik set hours for himself at the Township building without direction from or consultation with the Board of Supervisors. a. Tvardzik selected the type of work he claimed on his timesheets based on the amount of time and effort it took to complete. b. The Board was generally aware of the daily hours Tvardzik was working. 120. Tvardzik’s timesheets from August 2008 to January 2012 were not regularly reviewed/approved by the two remaining Supervisors prior to the issuance of the respective paycheck to Tvardzik, as was set by the Auditors. a. Tvardzik submitted timesheets and reviewed/approved his own timesheets with the expectation the office staff would issue him a paycheck. b. From August 2008 to January 2012, Tvardzik was consistently issued paychecks which were deposited and/or cashed by Tvardzik. 121. During an interview conducted by Commission Investigators on August 13, 2013, Tvardzik indicated the following: a. Tvardzik did not consider himself to be a Township employee; b. Tvardzik justified his work at the Township based on his understanding that the Code permits a Supervisor to be compensated for performing work related to a township’s infrastructure. Tvardzik, 13-002 Page 28 1. Tvardzik was not able to cite a specific section of the Code that would substantiate his understanding; c. The remaining Board members were aware of and agreed, both in a public meeting setting and outside of a public meeting, that Tvardzik could perform the various work he had claimed on his timesheets with the expectation he would be compensated; d. The Board did not take official action to appoint Tvardzik as the Administrator/overseer for the residential subdivision projects, PENN Vest funded sewer project, or Police building expansion project; e. The Board consistently discussed during Board of Supervisor public meeting sessions the work Tvardzik had been performing for the Township; f. Tvardzik selected the hours he worked at the Township and the amount of hours he claimed on his timesheets for the work performed without any restrictions or limitations from the remaining Board members; g. Since 2008, Tvardzik performed various duties associated with his position as a Supervisor but did not claim compensation; h. Tvardzik claimed compensation for performing duties that were outside the duties/responsibilities of a Supervisor; i. Tvardzik was unable to distinguish the total number of hours he claimed for performing duties related to his position as a Supervisor and duties that were outside the duties/responsibilities of a Supervisor; j. Tvardzik was unaware of the Auditors’ provision that required the two (2) remaining Supervisors to review/approve his timesheet prior to its submittal for a paycheck; k. Tvardzik reviewed and signed his timesheets and paychecks based on his availability while working on a daily basis at the Township building; l. Tvardzik was asked and agreed in 2009 to assist Supervisor Ken Holsopple in performing the various duties associated with the Secretary/Treasurer position due to Holsopple’s failing health at the time; m. The additional duties performed by Tvardzik as the appointed Secretary/Treasurer did not result in him claiming additional hours on his timesheets; n. Tvardzik submitted invoices to the office personnel in 2008 for hours/mileage related to performing inspections at Winchester Estates and for inspections and various administrative work at RidgeView Estates with the expectation the invoices would be utilized to bill the respective developers; and o. Tvardzik decided to stop completing descriptive timesheets in 2010, because he believed it was too much work. 122. As a result of Tvardzik’s use of the authority of his public position, namely approving his own timesheets and serving as a Township signatory for paychecks issued to himself, Tvardzik realized a private pecuniary benefit by claiming and receiving compensation for performing the role of Township consultant/liaison and/or project administrator for various Township projects, which included Tvardzik, 13-002 Page 29 residential subdivision projects, a sewer expansion project, and a Township Police building expansion project; while simultaneously performing administrative duties as an elected Township Supervisor and appointed Secretary/Treasurer. THE FOLLOWING FINDINGS RELATE TO DISCREPANCIES ON TVARDZIK STATEMENT OF FINANCIAL INTERESTS FORMS FOR CALENDAR YEARS 2008, 2009, 2010, AND 2011. 123. Section 1104(a) of the State Ethics Act states in pertinent part that a public employee and public official of the Commonwealth shall file a Statement of Financial Interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to 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 position. a. 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. Persons who are full-time or part-time Solicitors for political subdivisions are required to file under this Section. b. Tvardzik has served as a Paint Township Supervisor from January 2008 to the present. 124. On January 24, 2013, a Statement of Financial Interests compliance review was conducted for Paint Township. a. Maintained within Paint Township, Tvardzik had filed Statements of Financial Interests for calendar years 2007, 2008, 2009, 2010, and 2011 in regard to his position as a Township Supervisor. 125. Section 1105(b)(5), Required Information, of the State Ethics Act requires that any direct or indirect sources of income totaling in the aggregate of $1,300.00 or more shall be included in the calendar year with regard to the person required to file the statement. a. Tvardzik failed to disclose his direct or indirect source of income from Paint Township on his Statement of Financial Interests forms for calendar years 2008, 2009, 2010, and 2011. 126. W-2 Wage and Tax forms issued by Paint Township to Tvardzik confirmed the following: Year Compensation Meeting Pay 2008 $4,110.15 $350.00 2009 $10,235.65 $550.00 2010 $16,079.00 $625.00 2011 $14,791.87 $325.00 2012 $6,571.87 $350.00 127. On March 29, 2013, documentation was received by the State Ethics Commission via U.S. Mail from Tvardzik’s legal representative, Attorney William Gleason Barbin. a. Barbin provided Tvardzik’s amended Statements of Financial Interests that disclosed income received from the Township for calendar years 2008, 2009, 2010, and 2011. Tvardzik, 13-002 Page 30 b. The amended Statements of Financial Interests were provided voluntarily in response to the Commission investigation. III.DISCUSSION: As a Supervisor for Paint Township (“Township”), Somerset County, since January 2008, Respondent Andrew Tvardzik, also referred to hereinafter as “Respondent,” “Respondent Tvardzik,” and “Tvardzik,” has been a public officialsubject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. The allegations are that Tvardzik violated Sections 1103(a) and 1105(b)(5) of the Ethics Act when: (1) he used the authority of his office for a private pecuniary gain by appointing himself as a consultant/liaison for the Township pertaining to various Township sewer and real estate development projects, including but not limited to the renovation/construction of the Township Police department building; (2) when he claimed compensation for duties related to his position as Supervisor, including but not limited to attendance at construction/project meetings, signing checks, and meeting with the public, developers, and Township engineers; (3) when he subsequently approved his compensation for hours submitted related to administrative duties; and (4) when he failed to disclose all direct/indirect sources of income on Statements of Financial Interests (“SFIs”) for the 2008, 2009, 2010 and 2011 calendar years. Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a)Conflict of interest.— No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official/public employee from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public Tvardzik, 13-002 Page 31 employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the SFI form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. 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. Tvardzik has served as a Township Supervisor since January 2008. Tvardzik served as Vice-Chairman of the Board of Supervisors (“Board”) from January 2008 through December 2009 and as Secretary/Treasurer from January 2010 to September 18, 2012. Tvardzik has served as the Vice-Chairman of the Board from September 18, 2012, to the present. The Township is governed by a three-Member Board. The Board re-organizes each year to appoint a Chairman, Vice-Chairman, and Secretary/Treasurer. All three Supervisors maintain signature authority over the Township’s financial accounts. Township checks require two signatures. The Township office staff is responsible for the generation/distribution of Township payroll. Township employees submit timesheets to the office staff which represent work completed for the past two-week period. Supervisors are to review and initial employee timesheets for each pay period falling between regularly scheduled meetings. Paychecks are issued on a bi-weekly basis and are approved upon review of the respective timesheets and the signing of the checks by any two Supervisors. Payroll is not approved as a line item/regular motion at Board meetings. Township Supervisors are compensated $25.00 for each regular and/or special Township meeting attended. Meeting pay is a separate form of compensation from wages earned by Supervisors in an employee capacity. The Board has historically appointed any Supervisors who will serve in an employee capacity for the Township during the annual Supervisors re-organization meeting. See, 53 P.S. § 65602. The Board typically appoints any Supervisor not appointed as Roadmaster to work for the Township on an “as-needed” basis. The Board does not limit the number of hours a Supervisor can claim while working on an “as-needed” basis or identify the type of work the Supervisor is to perform in order to receive compensation. The Township does not have a job description for part-time or “as-needed” working Supervisors. Pursuant to the Second Class Township Code, the Township Board of Auditors (“Auditors”) must determine the compensation of a Supervisor who is employed by the Township. See, 53 P.S. §§ 65606, 65901. The Auditors have annually established the compensation for Supervisors working as Township employees at the Auditors’ annual re- organization meeting. The Auditors’ minutes identify the Supervisors as having the option of accepting the Township laborer wages for any time worked “as-needed.” The Auditors do not identify or discuss the type of work the Supervisors are to perform in order to receive hourly compensation or limit the number of hours a Supervisor can claim for compensation. Although the Auditors have specified that in order for a Supervisor to be compensated, the remaining two Supervisors must approve the hours/timesheet, the Board has not consistently followed this requirement. Tvardzik, 13-002 Page 32 The Board regularly appoints a Supervisor to serve as the Township Secretary/Treasurer. Despite a requirement in the Second Class Township Code, between 2008 and 2012 the Auditors did not set the compensation for a Supervisor appointed as Secretary/Treasurer. The Township Supervisor appointed as Secretary/Treasurer historically has not claimed or received an hourly wage for performing Secretary/Treasurer duties. The Board appointed Tvardzik as a part-time or “as-needed” working Supervisor at the January 2008 Supervisors re-organization meeting. The Auditors approved an hourly wage for Tvardzik equivalent to the Township laborer wage with the expectation that he would be compensated for performing “as-needed” work for the Township. The Auditors similarly set Tvardzik’s hourly wage for performing Township work at the Township laborer wage each year from 2009 through 2012. The Township Sewer Disposal System Rules and Regulations (“Township Sewer Rules”) set the fees, rates, and testing/inspection parameters for Township sewer systems for new and existing developments. The Township Sewer Rules require the developer of a sewage line to reimburse the Township for all costs associated with the plan review, inspections, testing, and legal fees. As of January 2008, there were two major residential subdivision projects, Winchester Estates and RidgeView Estates/Ramblin Hills (“RidgeView Estates”), pending within the Township. The Township Sewer Rules were applicable to the Winchester Estates and RidgeView Estates residential subdivision projects. The Township was responsible for the inspections of the projects’ sewer lines, manholes, and roads, while the local water authority inspected the projects’ waterlines. Any one of the available Supervisors/Roadmasters was authorized to perform sewer inspections. In early 2008, the Board discussed the Township and developer requirements pertaining to the residential subdivision projects during regular Township public meetings. Tvardzik had extensive knowledge of the Winchester Estates residential subdivision project as a result of reviewing project plans and designs while serving on the Township Planning Commission from 2004 to 2007. In discussions with the Board, Tvardzik offered to serve as a consultant/liaison between the developers/investors and the Township Engineer for the residential subdivision projects. The other Supervisors informally accepted Tvardzik’s offer and agreed that Tvardzik would serve as the consultant/liaison between the Township and the developers, contractors, and engineers associated with the respective projects. The Board took no official action to appoint Tvardzik as the project consultant/liaison. As the project consultant/liaison, Tvardzik would also conduct inspections of sewer lines, manholes, and the like. The Board considered hiring an inspector, but concerns surrounding the financial costs and availability of an inspector influenced the Board to utilize Tvardzik. The remaining Board Members agreed during a public meeting to have Tvardzik perform sewage inspections and for him to be compensated at an hourly wage. The Board did not take official action on Tvardzik serving as the inspector. The Supervisors expected Tvardzik to submit timesheets and receive compensation for any of his work associated with the subdivision projects. From January 2008 to May 2008, Tvardzik performed various administrative duties, in addition to consultant/liaison services, for the residential subdivision projects. The administrative duties included making/receiving phone calls for Township business, signing Township checks, monitoring resident complaints/questions, generating Township correspondence, reviewing Township related paperwork, and arranging and/or attending meetings with State Representatives, project developers, and Township Engineers. Tvardzik typically worked at the Township building on a daily basis from approximately 8:00 or 8:30 a.m. to noon. Tvardzik did not submit timesheets or receive compensation from January 2008 through May 18, 2008, for any laborer or administrative duties. Tvardzik, 13-002 Page 33 Between May 19, 2008, and November 22, 2008, Tvardzik, acting as the Township consultant/liaison with the project developers, performed visual inspections of sewer lines and manholes at the Winchester Estates and RidgeView Estates residential subdivision projects with the expectation of being compensated. The visual inspections were agreed upon between the respective project developers and the Board in accordance with the Township Sewer Rules. Project developers/contractors regularly contacted the Township building to inform Tvardzik when the visual inspections were needed, and he completed the inspections with the developers/contractors based on his availability. Starting on or about May 19, 2008, Tvardzik began submitting timesheets for various duties, including performing the daily visual inspections for the Winchester Estates and RidgeView Estates residential subdivision projects, as well as other administrative tasks. Tvardzik submitted two invoices totaling $3,124.35 to the Township office, seeking payment for the daily visual inspections he performed at Winchester Estates covering the time period of May 19, 2008, to August 16, 2008. The invoices listed the description of work, hours claimed, hourly rate, mileage reimbursement, and total amount owed. The information from the invoices was utilized by the Township office staff to bill Winchester Estates for inspection costs incurred by the Township and to generate Tvardzik’s paychecks. The invoices were not initialed or signed by any of the remaining Supervisors as having been reviewed/approved. The remaining Supervisors were aware that Tvardzik performed the daily inspections with the expectation that he would be compensated for the work. The Winchester Estates ownership group subsequently issued two checks to the Township in payment of the invoices. Tvardzik submitted two undated invoices totaling $975.80 to the Township office staff which were associated with work performed specifically for RidgeView Estates, including performing inspections. The invoices listed the work performed and the total amount of hours to complete the work. The invoices were not initialed or signed by any of the remaining Supervisors as having been reviewed/approved. Information from the invoices was utilized by the office staff to bill RidgeView Estates for costs incurred by the Township and to generate Tvardzik’s paychecks. RidgeView Estates subsequently issued a check to the Township in payment of the invoices. During 2008, Tvardzik was issued a total of three paychecks from the Township totaling $4,110.15 for hours claimed on invoices submitted in relation to the Winchester Estates and RidgeView Estates residential subdivision projects. Tvardzik signed, as an authorized Township signatory, the aforesaid three paychecks issued to him in 2008. In 2009, Tvardzik worked from the Township building on weekdays and continued to perform administrative functions related to the day-to-day operations of the Township and consultant/liaison work pertaining to the residential subdivision projects. Tvardzik submitted nineteen descriptive bi-weekly timesheets to Township office staff that listed his work performed, which included but was not limited to: visual inspections of sewer lines and manholes; making/receiving phone calls for Township business; signing Township checks; monitoring resident complaints/questions; generating Township correspondence; reviewing Township paperwork and bills; arranging and/or attending meetings with State Representatives, project developers, and Township Engineers; and researching/reviewing grant applications. Tvardzik claimed a total of 697.15 hours on his 2009 timesheets, and he routinely initialed/signed his own timesheets. In 2009, Tvardzik was issued a total of nineteen paychecks from the Township, and he signed, as an authorized Township signatory, all nineteen paychecks issued to him. The parties have stipulated that Tvardzik’s 2009 Township compensation totaled $10,235.63 as a result of his submission of bi-weekly timesheets for hours worked which Tvardzik, 13-002 Page 34 included time related to his position as a Township Supervisor and his role as the consultant/liaison for the residential subdivision projects. At the January 2010 Supervisors re-organization meeting, Tvardzik was appointed as the Township Secretary/Treasurer. Throughout 2010, Tvardzik continued to work on weekdays at the Township building performing work related to various Township projects, including residential subdivision projects and a PENN Vest funded sewer expansion project as the Township’s consultant/liaison. Tvardzik performed duties similar to the work that he had completed in 2008 and 2009. By early 2010, the Board had discussed and agreed to pursue an addition to the Township’s Police building. Pawlowski and Haman Architects (“Pawlowski”) provided schematic and development designs for the Police building project and offered to perform administrative services for the project for a fee of approximately $6,000.00. In or about April 2010, Tvardzik began performing the administrative duties for the Police building project in addition to the various other administrative duties he was performing for the Township. The remaining Supervisors were aware of and permitted Tvardzik to perform the administrative duties for the project, with the expectation that Tvardzik would be compensated. The Supervisors did not take any official action in approving/appointing Tvardzik to be the project administrator. During 2010, Tvardzik submitted non-descriptive, bi-weekly timesheets to the Township which documented only the hours he worked each day without detailing the specific work performed. Tvardzik claimed to have worked a total of 1,062.5 hours in 2010, and he approved all of his timesheets. Tvardzik signed, as an authorized Township signatory, twenty-four of twenty-five paychecks that were issued to him in 2010. The parties have stipulated that Tvardzik received compensation totaling $16,079.00 in 2010 as a result of his submission of non-descriptive, bi-weekly timesheets which included hours worked that were directly related to his position as a Township Supervisor and his role as the consultant/liaison for the residential subdivision projects, sewer expansion projects, and/or the Township Police building expansion project. At the January 2011 Supervisors re-organization meeting, Tvardzik was re- appointed as the Township Secretary/Treasurer. During 2011, Tvardzik continued to work at the Township building on weekdays. Tvardzik performed consulting/liaison work related to various Township projects, including the residential subdivision projects and sewer expansion project, and he performed the administrative duties associated with the Township Police building expansion project. In 2011, Tvardzik continued to submit non-descriptive, bi-weekly timesheets that listed only the hours he worked each day. Tvardzik claimed to have worked a total of 946.5 hours in 2011. Tvardzik signed, as an authorized Township signatory, twenty-three of twenty-six paychecks that were issued to him in 2011. The parties have stipulated that Tvardzik received compensation totaling $14,791.87 in 2011 for performing various duties, including his role as the consultant/liaison for the residential subdivision projects, sewer expansion projects, and/or Township Police building expansion project and administrative duties related to his position as a Township Supervisor. At the January 2012 Supervisors re-organization meeting, Tvardzik was re- appointed as the Township Secretary/Treasurer. Throughout 2012, Tvardzik continued to work for the Township on weekdays, performing consulting/liaison work related to various Township projects, including the Township’s sewer expansion project, and performing the administrator duties associated with the Township Police building expansion project. During 2012, Tvardzik submitted non-descriptive, bi-weekly timesheets that listed only the hours he worked each day. Tvardzik claimed to have worked a total of 408.25 hours in 2012. Tvardzik signed, as an authorized Township signatory, all of eighteen Tvardzik, 13-002 Page 35 paychecks that were issued to him in 2012. The parties have stipulated that Tvardzik received compensation totaling $6,571.87 in 2012 based on his submission of non- descriptive timesheets which included hours for various duties, including his role as the consultant/liaison for the residential subdivision projects and Township Police building expansion project and administrative duties related to his position as a Township Supervisor. The parties have stipulated that as a result of Tvardzik’s use of the authority of his public position, namely approving his own timesheets and serving as a Township signatory for paychecks issued to himself, Tvardzik realized a private pecuniary benefit by claiming and receiving compensation for performing the role of Township consultant/liaison and/or project administrator for various Township projects, which included residential subdivision projects, a sewer expansion project, and a Township Police building expansion project, while simultaneously performing administrative duties as an elected Township Supervisor and appointed Secretary/Treasurer. As for Tvardzik’s SFIs, on January 24, 2013, an SFI compliance review of the Township was conducted. Tvardzik failed to disclose the Township as a source of income on his SFIs filed with the Township for calendar years 2008, 2009, 2010, and 2011. On March 29, 2013, the State Ethics Commission received from Tvardzik’s legal representative Tvardzik’s amended SFIs that disclosed income received from the Township for calendar years 2008, 2009, 2010, and 2011. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a) occurred in relation to Tvardzik assuming the position of consultant/liaison for the Township, as there is insufficient clear and convincing evidence to establish that Tvardzik utilized the authority of his office to obtain this position. b. 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 Tvardzik claiming compensation for duties related to his position as an elected Township Supervisor, and when he subsequently approved timesheets submitted by himself seeking compensation for hours submitted related to administrative duties. c. That a violation of Section 1105(b)(5) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b)(5) occurred when Tvardzik failed to disclose all direct/indirect sources of income on Statements of Financial Interests filed for the 2008, 2009, 2010 and 2011 calendar years. Tvardzik, 13-002 Page 36 4. Tvardzik agrees to make payment in the amount of $3,500.00 in settlement of this matter, payable to Paint Township, 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 he has not already done so, Tvardzik agrees to file complete and accurate Statements of Financial Interests with Paint Township through the Pennsylvania State Ethics Commission, for the 2008, 2009, 2010, and 2011 calendar years within thirty (30) days of the issuance of the final adjudication in this matter. 6. Tvardzik agrees to not accept any reimbursement, compensation or other payment from Paint Township 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 2. In considering the Consent Agreement of the parties, we accept the parties’ recommendation for a finding that Tvardzik did not violate Section 1103(a) of the Ethics Act in relation to his assuming the position of consultant/liaison for the Township, as there is insufficient evidence to establish that Tvardzik utilized the authority of his office to obtain this position. The Stipulated Findings do not establish a use of authority of office by Tvardzik to obtain the position(s) of consultant/liaison for the Township for the residential subdivision projects, the PENN Vest funded sewer expansion project, or the Township Police building expansion project. Accordingly, we hold that Tvardzik did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his assuming the position of consultant/liaison for the Township, as there is insufficient evidence to establish that Tvardzik utilized the authority of his office to obtain this position. We agree with the parties that a violation of Section 1103(a) of the Ethics Act occurred in relation to Tvardzik claiming compensation for duties related to his position as an elected Township Supervisor, and when he subsequently approved timesheets submitted by himself seeking compensation for hours submitted related to administrative duties. Starting on or about May 19, 2008, Tvardzik began submitting timesheets for various duties, including performing the daily visual inspections for the Winchester Estates and RidgeView Estates residential subdivision projects, as well as other administrative tasks. During 2008, Tvardzik was issued a total of three paychecks from the Township totaling $4,110.15 for hours claimed on invoices submitted in relation to the Winchester Estates and RidgeView Estates residential subdivision projects. Tvardzik, 13-002 Page 37 In 2009, Tvardzik continued to perform administrative functions related to the day- to-day operations of the Township and consultant/liaison work pertaining to the residential subdivision projects. Tvardzik submitted nineteen timesheets to the Township office staff, and he routinely initialed/signed his own timesheets. The parties have stipulated that Tvardzik’s 2009 Township compensation totaled $10,235.63 as a result of his submission of bi-weekly timesheets for hours worked which included time related to his position as a Township Supervisor and his role as the consultant/liaison for the residential subdivision projects. During 2010, Tvardzik performed work related to various Township projects. Tvardzik approved all of his timesheets which he submitted to the Township in 2010. The parties have stipulated that Tvardzik received compensation totaling $16,079.00 in 2010 as a result of his submission of timesheets which included hours worked that were directly related to his position as a Township Supervisor and his role as the consultant/liaison for the residential subdivision projects, sewer expansion projects, and/or the Township Police building expansion project. During 2011 and 2012, Tvardzik performed work for the Township and submitted timesheets to the Township for such work. The parties have stipulated that Tvardzik received compensation totaling $14,791.87 in 2011 and compensation totaling $6,571.87 in 2012 for performing various duties, including his role as the consultant/liaison for the residential subdivision projects, sewer expansion projects, and/or Township Police building expansion project and administrative duties related to his position as Township Supervisor. Tvardzik used the authority of his office when he submitted timesheets which included hours for time/duties related to his position as a Township Supervisor, approved his own timesheets, and signed, as an authorized Township signatory, 87 of 91 paychecks that the Township issued to him from 2008 through 2012. The parties have stipulated that Tvardzik realized a private pecuniary benefit as a result of his aforesaid use of the authority of his public position as a Township Supervisor. 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 Tvardzik claiming compensation for duties related to his position as an elected Township Supervisor, and when he subsequently approved timesheets submitted by himself seeking compensation for hours submitted related to administrative duties. See, R.H. v. State Ethics Commission, 673 A.2d 1004 (Pa. Cmwlth. 1996). As for the allegations regarding Tvardzik’s SFIs, we hold that Tvardzik violated Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), when he failed to disclose all direct/indirect sources of income on SFIs filed for the 2008, 2009, 2010 and 2011 calendar years. As part of the Consent Agreement, Tvardzik has agreed to make payment in the amount of $3,500.00 payable to Paint Township and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Tvardzik has agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Tvardzik has further agreed to file complete and accurate SFIs for the 2008, 2009, 2010, and 2011 calendar years with the Township, through this Commission, within thirty (30) days of the issuance of the final adjudication in this matter. Tvardzik, 13-002 Page 38 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, Tvardzik is directed to make payment in the amount of $3,500.00 payable to Paint Township 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, Tvardzik is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Tvardzik is directed to file complete and accurate SFIs for the 2008, 2009, 2010, and 2011 calendar years with the Township, th through this Commission, 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 Supervisor for Paint Township (“Township”), Somerset County, since January 2008, Respondent Andrew Tvardzik (“Tvardzik”) has been a public official subject to the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq. 2. Tvardzik did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his assuming the position of consultant/liaison for the Township, as there is insufficient evidence to establish that Tvardzik utilized the authority of his office to obtain this position. 3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Tvardzik claiming compensation for duties related to his position as an elected Township Supervisor, and when he subsequently approved timesheets submitted by himself seeking compensation for hours submitted related to administrative duties. 4. Tvardzik violated Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), when he failed to disclose all direct/indirect sources of income on Statements of Financial Interests filed for the 2008, 2009, 2010 and 2011 calendar years. In Re: Andrew Tvardzik, : File Docket: 13-002 Respondent : Date Decided: 10/8/13 : Date Mailed: 10/22/13 ORDER NO. 1623 1. As a Supervisor for Paint Township (“Township”), Somerset County, Andrew Tvardzik (“Tvardzik”) did not violate Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to his assuming the position of consultant/liaison for the Township, as there is insufficient evidence to establish that Tvardzik utilized the authority of his office to obtain this position. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Tvardzik claiming compensation for duties related to his position as an elected Township Supervisor, and when he subsequently approved timesheets submitted by himself seeking compensation for hours submitted related to administrative duties. 3. Tvardzik violated Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), when he failed to disclose all direct/indirect sources of income on Statements of Financial Interests filed for the 2008, 2009, 2010 and 2011 calendar years. 4. Per the Consent Agreement of the parties, Tvardzik is directed to make payment in the amount of $3,500.00 payable to Paint Township and forwarded to the th Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after the mailing date of this Order. 5. Per the Consent Agreement of the parties, Tvardzik is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 6. To the extent he has not already done so, Tvardzik is directed to file complete and accurate Statements of Financial Interests for the 2008, 2009, 2010, and 2011 calendar years with the Township, through the Pennsylvania State Ethics th Commission, by no later than the thirtieth (30) day after the mailing date of this Order. 7. Compliance with paragraphs 4, 5, and 6 of this Order will result in the closing of this case with no further action by this Commission. a. Non-compliance will result in the institution of an order enforcement action. BY THE COMMISSION, ___________________________ John J. Bolger, Chair