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HomeMy WebLinkAbout1645 Spangler In Re: Leah Spangler, : File Docket: 12-007 Respondent : X-ref: Order No. 1645 : Date Decided: 9/30/14 : Date Mailed: 10/14/14 Before: John J. Bolger, Chair Nicholas A. Colafella, Vice Chair Raquel K. Bergen Mark R. Corrigan Roger Nick Kathryn Streeter Lewis Maria Feeley This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq., by the above-named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an “Investigative Complaint.” An Answer was filed and a hearing was requested. A Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. I.ALLEGATIONS: That Leah Spangler, a public official/public employee in her capacity as Member of the Board of Directors of the Westmont Hilltop School District, violated Sections 1103(a) and 1103(f) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §1103(a) and §1103(f), when a business with which she is associated, Learning Lamp, Inc., entered into contracts with the School District in excess of $500.00 without an open and public process; and when she participated in discussions and negotiations with school district administrators resulting in the award of the contracts. II.FINDINGS: 1. Leah Spangler served as a Member of the Westmont Hilltop School District, Cambria County (hereafter “District” or “WHSD”), Board of Directors from December 3, 2007, until August 13, 2012. a. Spangler served as the Board Treasurer from December 5, 2011, until August 13, 2012. b. Spangler voluntarily resigned from her Director position effective August 13, 2012. 2. WHSD is governed by a nine Member Board of Directors. Spangler, 12-007 Page 2 a. The Board holds two regularly scheduled meetings a month. 1. Non-legislative meetings are held on the first Monday of the month. 2. Legislative meetings are held on the second Monday of the month. b. Special meetings are held as necessary. 3. Voting at WHSD Board meetings occurs via individual roll call vote. a. Each individual Board Director’s vote\[s\], including abstentions or objections, are recorded in the meeting minutes. 1. Abstention forms completed by the Directors are appended to the meeting minutes. b. Legislative and special meeting minutes are approved for accuracy by the Board at the next meeting of the Board. 1. The Board does not approve non-legislative meeting minutes. 4. Bill lists (that appear as check registers) are voted on for approval by the Board at each legislative meeting. a. The bill lists document all of the bills received by the District for payment since the last legislative meeting of the Board. 5. Signature authority over the WHSD financial accounts rests with the Board President, Board Vice President, Board Treasurer, and the Board Secretary. a. WHSD checks require the signature of any three of the four authorized signatories. b. WHSD checks are produced automatically with computer generated signatures. 1. Spangler’s computer generated signature appeared on District checks during the time period that she served as Board Treasurer. 6. Leah Spangler has been affiliated with Learning Lamp (hereafter “LL”) since or about October 2003. a. Spangler has served as the Executive Director of LL since approximately October 2003. b. Spangler, in her capacity as the Executive Director, is responsible for performing the following duties and responsibilities: 1. Staff management, 2. Recruiting/staffing, 3. Business development, 4. Communication, Spangler, 12-007 Page 3 5. Grant/fundraising research. c. As Executive Director of LL, Spangler’s duties extend beyond those listed above, and under the management structure of LL, performance of and responsibility for these duties are regularly delegated to staff members based on organizational and practical consideration. 7. Learning Lamp is a non-profit corporation which provides various educational programs to assist elementary, middle school, and high school students succeed in the classroom. a. LL also provides services other than educational programs such as professional development, grant writing, project consulting, and temporary staffing. b. Articles of Incorporation on file with the Department of State for LL reflect that LL filed for incorporation status on September 25, 2003. 1. On September 26, 2003, LL was formally registered with the Department of State as a non-profit organization within the Commonwealth. c. LL was formally established/created to do business within the Commonwealth on or about September 26, 2003. 1. LL was established as a non-profit corporation, and specifically not organized for profit under the laws of the Commonwealth of Pennsylvania. d. LL has been headquartered in the Johnstown, Pennsylvania, regional area since its establishment. 1. The headquarters of LL has changed locations over the years. 2. Currently LL is located at 2025 Bedford Street, Johnstown, PA 15904. 3. LL does not maintain any other headquarter offices in Pennsylvania. e. LL does not provide any services outside the Commonwealth of Pennsylvania. 1. Approximately seventy-seven (77) school districts utilize the services of LL within Pennsylvania. f. LL is currently an active organization within the Commonwealth. 8. LL began providing services to WHSD during the 2003-2004 school year through private tutoring services, which continued into the 2004-2005 school year and thereafter. a. WHSD contracted with LL to provide student tutoring, funded by the PA Department of Education, Accountability Block Grant (“ABG”) program. b. Spangler was not a Board Director when WHSD initially contracted with LL to provide tutoring. Spangler, 12-007 Page 4 9. WHSD continued to utilize the LL for educational services after Spangler was elected to serve on the Board of Directors in November 2007. a. The LL provided various educational services to WHSD while Spangler served as a WHSD Board Director. b. Members of the School Board knew Spangler was the Executive Director of the LL during the time Spangler served as a WHSD Board Director. 10. The WHSD does not have any formal policies that specifically address conflicts of interest, other than Policy 005 adopted on October 8, 2001, which reads: The President may request that a member of the Board excuse himself/herself on any Board committee or deliberation that could involve a potential conflict of interest. a. As a WHSD Board Director, Spangler was never requested and/or instructed to physically excuse herself from Board deliberations regarding the District’s utilization of LL. 1. Spangler does not recall any Board deliberations regarding WHSD’s use of LL services, and asserts that any discussions by the Board in the presence of Respondent regarding LL services were informational only and not deliberative. 11. In or about December 2007, as a newly elected Board Director, Spangler was informed by WHSD Superintendent Susan Anderson of the need to abstain from the approval process of District checks drafted/issued to LL, and to abstain from all votes regarding the District’s contract(s) with LL, in order to avoid any potential conflicts of interest. a. Anderson’s advice to Spangler was limited to the official action of voting on matters related to LL. 12. Between 2007, when Spangler began service as a WHSD Board Director, and late 2012, none of the contracts entered into between the WHSD and LL were publically advertised for bid. a. Not all of the contracts entered into between WHSD and LL were formally approved by the WHSD Board of Directors by way of official vote or recorded action of the Board, but invoices from LL were formally approved by the WHSD School Board before any payments were made to LL. b. Spangler was advised by WHSD officials that if the funding for services was approved in the annual budget, then the WHSD administration was authorized to obtain those services without further formal approval of the WHSD Board of Directors, other than the monthly approval of the payment of the invoices. Upon approval of the payment of the invoice by the WHSD Board of Directors, the agreement between LL and WHSD became a legally binding and enforceable contract. c. No evidence suggests that WHSD ever made payment to LL for services that were not fully provided by LL to the WHSD. d. Invoices from LL to WHSD were computed based on the same rates that LL used to compute invoices for the 76 other school districts to whom LL provided services. Spangler, 12-007 Page 5 e. Per the holding of the Pennsylvania Supreme Court, “The \[Pennsylvania Public Official and Employee Ethics Act, 65 Pa.C.S. §§ 1101-1113,\] is not a procurement statute, and there is no indication that the General Assembly intended it to constrain or modify the numerous statutory provisions … that do set forth specific procedures for awarding contracts….\[The Pennsylvania Supreme Court declines\] to infer that when the General Assembly chose to use the phrase ‘an open and public process’ in the context of subsection 1103(f) \[(65 Pa.C.S. § 1103(f)) of the Pennsylvania Public Official and Employee Ethics Act, 65 Pa.C.S. §§ 1101-1113\], its actual intent was to specify a competitive bidding process.” Kistler v. State Ethics Comm’n, 610 Pa. 516, 535 (Pa. 2011). f. The invoices of LL were part of the Board agenda which provided prior public notice, and they were part of the Board minutes which provided subsequent public disclosure. 13. Contracts between the WHSD and LL which were approved by formal vote/action of the Board were not presented to the Board in paper/document format. a. LL contracts were generally reviewed and executed by Spangler as a representative of LL and by Superintendent Anderson as a representative of WHSD. b. On some occasions, the Board was provided with cost analysis information disclosing the costs associated with the services LL would be providing. 1. Ultimately the Board would receive the exact cost of services provided by LL through the process of the Board approving the payment of the invoice. 14. WHSD administrators entered into contracts with LL after Spangler took office as a Board Director in 2007. a. WHSD administrators who contacted Spangler regarding LL services included: 1. Susan Anderson, Superintendent. 2. Steve McGee, Director of Education/Student Support. 3. Gregory Sanford, Business Manager. b. If the request for services was within the scope of LL’s expertise, Spangler recommended that WHSD administrators contact districts utilizing LL for the same/similar services in order to determine if WHSD wanted to contract with LL. c. WHSD administrators entered into agreements with LL for services after Spangler become a Board Member and at times obtained those services from LL prior to Board approval; the administrators had no authority to make a contract between LL and WHSD. 1. Any agreements made by WHSD administrators only became a legally enforceable contract when they were approved by the WHSD Board which often occurred through the Board approval of the payment of the invoice for those services. Payments to LL for Spangler, 12-007 Page 6 services provided to WHSD were never made until they were approved by the WHSD Board. 15. From 2007 to 2012, during Spangler’s tenure as a Board Director for WHSD, Spangler forwarded e-mails to WHSD administrators which highlighted LL’s services and accomplishments. 16. Spangler also emailed WHSD administrators regarding the status of contracts and inquired if the WHSD \[sic\] would be utilized for additional contracts. 17. During Spangler’s tenure as a Board Director for WHSD, Spangler instructed LL staff to contact WHSD administrators to pursue LL contracts with WHSD. a. The directives given by Spangler to LL staff were the result of contacts from WHSD administrators requesting services from LL. b. Spangler’s directives to LL employees were documented in email communications between LL representatives and WHSD administrators. c. WHSD Board Directors were not privy to the email communications between LL representatives and WHSD administrators. 18. During Spangler’s tenure as a Board Director for WHSD, Spangler made requests of WHSD administrators for support/assistance, and utilized WHSD administrators as a resource for information. a. Spangler’s requests were documented in email communications, as detailed below: 1. On March 28, 2011, Spangler emailed Sam Brunatti, Elementary Principal, WHSD, the following message: I am writing to ask for your help with our PreK EITC application. I need the attached letter on your school letterhead mailed to me. It will be submitted with our application to the PA DCED. It allows me to provide preschool scholarships for children attending our preschool at Beth Sholom in Westmont. Call or email with questions. My deadline is April 15, so any time before then would be great. Thank you! 2. On March 23, 2012, Spangler emailed Brunatti the following message: I am writing to request a curriculum alignment letter so I can renew our status as a PreK Scholarship Organization through the DCED. This will allow us to offer scholarships for the Westmont preschool, which serves 25 Westmont-Hilltop families. A sample letter is attached. Please cut and paste it on Westmont Elementary letterhead and mail it to me at: The Learning Lamp, 2025 Bedford Street, Johnstown, PA 15904. I need to turn the letter in with our renewal application. Thanks so much! 3. Spangler notes that since 2004 she annually requested this letter from WHSD and six other elementary school providers, after LL became a Pre-K scholarship organization. The support letter allowed LL to renew its status as a Pre-K scholarship organization through the DCED’s Educational Improvement Tax Credit Program (EITC), which Spangler, 12-007 Page 7 enabled LL to raise money to provide preschool scholarships to low- income students in Cambria, Somerset and Bedford counties. 4. On March 28, 2011, Spangler emailed Superintendent Anderson the following message: As you know, I am working on The Learning Lamp’s Educational Improvement Tax Credit (EITC) application for the 2011-12 school year. To renew our status as an Educational Improvement Organization (EIO), I need to gather many (sic) support from school superintendents across the region. In 2010, The Learning Lamp worked with 8,368 students from 55 school districts in Pennsylvania. Many of those children participated in our innovative in-school workshops featuring Earth Balloon, Discovery Dome and the National Geographic Giant Traveling Maps. Without support from the EITC program, those workshops would not be possible. Please help us renew our status as an EIO by placing the attached support letter draft on your school district letterhead and mailing it to me c/o The Learning Lamp, 108 College Park Plaza, Johnstown, PA 15904. Please do not mail directly to the DCED. Thank you in advance for your support of our very worthwhile work. 5. Spangler notes that she has requested this letter annually since 2005. This support letter allows LL to renew its status as an Educational Improvement Organization through DCED’s EITC program. This letter is requested from 40 superintendents each year, including \[the superintendent of\] WHSD. Response to this letter allows LL to bring innovative science and geography programs into public schools across the region at minimal cost to the school districts. 6. On March 21, 2011, Spangler emailed WHSD Business Manager Sanford the following message: Another school district asked us to put together a proposal to provide them with back-up subs. Do you have any idea what the IU charges schools per day for the teachers on the emergency sub list? I need some sort of base to start the proposal from…and the superintendent had no idea! 7. On May 31, 2011, Spangler emailed Sanford the following message: A local school district has asked us if we would be able to provide them with OT and PT services. I was wondering if you might be able to tell me the average hourly rate you pay to providers for OT and PT. Thank you! 8. Spangler notes that she was simply asking the business manager for guidance as to where to begin calculating a budget, and that it was a simple request for advice from a colleague, and that she could have requested this information from other business managers as well. Spangler, 12-007 Page 8 9. On August 31, 2011, Spangler emailed Anderson the following message: Do you know what type of certification is required to teach psychology? I need to recruit an online teacher, but am not sure what certification to look for. Thank you! 10. Spangler notes that she did not know the correct certification for this subject area, and knew the Superintendent could advise her. She notes that it was a simple request for information that she could have accessed from any superintendent or the PDE website. 11. On August 31, 2011, Spangler emailed Anderson the following message: Did Ferndale SD contact you? Word on the street is that they planned to ask if they can partner with WHSD for alt ed classroom. 12. Spangler notes that she was simply passing along a message to the Superintendent that there might be an opportunity for cost-savings for WHSD. The Following Findings Relate to WHSD Contracting with LL to Provide Tutoring Services. 19. LL provided services to the WHSD during the 2006-2007 school year. a. WHSD contracted with LL to provide tutoring through funding provided by a PA Department of Education, Accountability Block Grant (“ABG”) program. b. The intent of the program was to assist WHSD students struggling academically during the 2006-2007 school year. 20. The WHSD Board of Directors approved of LL providing the aforementioned tutoring at the April 10, 2006, and June 19, 2006, Board meetings. a. Spangler was not a Board Director when the Board voted to utilize LL to provide ABG funded tutoring. 21. On May 14, 2007, the WHSD Board of Directors voted to continue to use LL to provide tutoring during the 2007-2008 school year. a. Spangler was not a Board Director when the Board voted to approve the continuation of the tutoring service. 22. Spangler was actively serving as a Board Director when a District payment related to LL’s tutoring services was identified on a bill list for Board approval at the July 14, 2008, meeting. a. Spangler abstained from the approval of the District payment to LL presented on July 14, 2008, as shown below: Meeting Date Official Action Check # Check Amount Paid Learning Lamp Invoice # 7-14-08 Abstained 49212 $892.50 4824 (in full) Spangler, 12-007 Page 9 1. First Commonwealth Bank records for bank account \[account number redacted\] document that the $892.50 District payment to LL for tutoring during the 2007-2008 school year was deposited into LL’s account on July 8, 2008. 23. The District utilized LL for tutoring services during the 2010-2011 through 2011- 2012 school years. a. WHSD administration did not seek formal Board approval when selecting LL to provide tutoring for students, due to the number of students and the overall costs. b. The tutoring services for school years 2010-2011 and 2011-2012 were of a continuing nature in the WHSD. The services were based on a pre- established rate. Services of these types often arise on an emergency basis as a result of a student injury or illness requiring tutoring services or because of a last minute course requirement for a student looking to graduate on time. WHSD, and other districts, are legally required to provide the tutoring; the rates are established, and LL was the only practical provider for these services at the time. 1. The total charges ranged from $130.00 to $1,040.00 per student in relation to LL providing tutoring for District students. c. WHSD administration did not utilize a public bid process in relation to the selection of LL as the entity to provide the tutoring services per the Supreme Court’s ruling in Kistler v. State Ethics Commission. 1. District administrators became aware that LL could provide tutoring services based on information provided by Spangler to District staff. 24. The District received five (5) invoices for tutoring services provided by LL for the 2010-2011 through 2011-2012 school years, totaling $3,120.00. a. One of the invoices issued by the LL dated 12-31-2011 to the District related to tutoring and was from “Spangler” to “Thomas Mitchell, Assistant Principal, WHSD.” b. Of the five (5) invoices seeking payment for tutoring services provided, only two (totaling $2,340.00) were formalized via written contract. 25. On June 15, 2011, Spangler participated in email discussions with LL representatives regarding the charges the District should be assessed related to the tutoring of a student. a. On June 15, 2011, Kristi Emerick, LL Assistant Director of Tutoring and Special Services, emailed LL representatives Spangler, Diana Chestnutwood, and Heidi Rizkalla the following message: We are going to need to refund Steve McGee for the Credit Recovery with \[STUDENT 2\]. She has withdrawn from the class. We paid the teacher for two sessions. b. On June 15, 2011, Chestnutwood responded to Emerick’s email by sending an email to Spangler, Emerick, and Rizkalla stating the following: Spangler, 12-007 Page 10 Westmont has not paid the invoice for this girl yet. Are we going to charge the school for 2 sessions that we incurred? c. Subsequently on June 15, 2011, Spangler responded to Chestnutwood’s email stating: Yes on the two sessions. 26. On or about June 21, 2011, LL issued check #20250 in the amount of $468.00 to WHSD to reimburse the District for the tutoring associated with the tutoring of a student. a. Spangler did not sign the check as an LL signatory. 27. Five District payments were issued to LL in association with five separate LL invoices totaling $3,120.00 in relation to LL providing tutoring services for WHSD from 2010 through 2012. a. Spangler abstained from the vote to approve bill lists on which four of the five District checks issued to LL related to tutoring were documented. b. Spangler was absent from the meeting when the bill list documenting the issuance of check #58673 was approved by the Board. 28. First Commonwealth Bank records for bank account \[account number redacted\] document that the $3,120.00 in payments from WHSD to LL for tutoring services from 2010 through 2012 were deposited into LL’s account. The Following Findings Relate to the District Contracting with LL to Provide a Technology Coach for the Classrooms of the Future Program. 29. In or about September 2007, the Board was informed that the District was to receive monies from the PA Department of Education (“PDE”) Classrooms for the Future (“CFF”) program. a. The CFF program was established by the PDE to fund technological advancements in the classroom. 30. The WHSD contracted with LL to provide the CFF education for the 2007-2008 school year through the 2009-2010 school year. a. An LL Technology Coach was utilized to provide technology training. b. Spangler was not a Board Director when the Board decided to utilize LL Technology Coach during the 2007-2008 school year. c. School District administrators became aware that LL could provide CFF services based on information provided by Spangler. 31. The WHSD made payments totaling $17,985.00 to LL in relation to a Technology Coach during the 2007-2008 school year. a. Payments were made on three occasions between December 2007 and April 2008. b. Spangler abstained from the approval of the District payments to LL for the Technology Coaching services. Spangler, 12-007 Page 11 32. On or about May 12, 2008, Spangler, in her capacity as Executive Director of LL, engaged in contract discussions with WHSD administrators Susan Anderson and Gregory Sanford via email in regards to the District continuing to use LL’s Technology Coach during the 2008-2009 school year. a. Spangler asserts that she was contacted by WHSD administrators regarding the use of the Technology Coach and Respondent provided the requested information needed to continue the program. b. Spangler’s emails included budget figures related to the cost associated with the District contracting with LL. c. Spangler advised in her emails that she could adjust the budget figures based on input from the District. d. No Member of the Board Directors participated in the negotiations. 33. On or about October 3, 2008, WHSD received a contract from LL regarding the District’s utilization of LL to provide a Technology Coach during the 2008-2009 school year. a. The total amount of the contract was $31,213.98. 1. Neither Spangler nor Anderson signed the contract. 2. No official from either the WHSD or LL signed the contract. 34. The District’s decision to utilize an LL Technology Coach for the 2008-2009 school year was not brought before the Board of Directors for approval by vote. a. The Board was informed by the Superintendent, during a work session of the Board, of the intent to contract with LL. b. Spangler was present during the workshop session. 35. Two payments, totaling $31,213.98, were made to LL by the WHSD during the 2008-2009 school year for technology services. a. Meeting minutes of the WHSD indicate that Spangler approved of one of the two payments to be issued to LL, as shown below: Meeting Date Official Action Check # Check Amount Paid Learning Lamp Invoice # 1-12-09 Abstained 50705 $20,809.32 7557 (in full), 1004 (in full) 4-13-09 Approved bill 51315 $10,404.66 7806 (in full) Total: $31,213.98 b. While Spangler does not dispute that the records of WHSD appear to show that she voted to approve that payment, she asserts there is an error in regard to that record as she maintains that she never voted to approve a payment to LL. 1. Spangler’s vote was not a controlling vote, and the remaining members of the Board voted unanimously in favor of issuing payment to LL. 36. First Commonwealth Bank records for bank account \[account number redacted\] document that the $31,213.98 in District payments to LL for CFF Technology Coach Spangler, 12-007 Page 12 services provided during the 2008-2009 school year were deposited into LL’s account. 37. Between August 24, 2009, and August 31, 2009, WHSD Superintendent Anderson had email communications with Jennifer Heck, LL Education Director, related to the District contracting with LL to provide a Technology Coach for the 2009-2010 school year. a. Spangler was “carbon copied” on the email communications between Anderson and Heck. b. The emails between Anderson and Heck between August 24, 2009, and August 31, 2009, reflect as follows: 1. On August 24, 2009, Jennifer Heck, Education Director LL, emailed Anderson, Superintendent, WHSD, the following message: “Here are the CFF budgets for your to review. I revised the second one to accommodate your request for staff development. Please let me know once approved. I cannot write Liz’s employee letter until her days are set. Thank you” On August 31, 2009, Jennifer Heck, Education Director, LL, emailed Anderson, Superintendent, WHSD, a follow-up email that states: “Here is the revised budget and contract. Once approved, I will contact Liz with the details of her employment. The amount is a bit higher than last year. We can cut out the grant writing if you will not need those services. Please let me know if there are any final revisions. I attached the contract from last year for you to compare.” c. No other Board Directors were specifically included as recipients of the email communications between Anderson and Heck. 38. The District’s decision to utilize LL to provide a Technology Coach for the 2009- 2010 school year was not submitted to the Board of Directors for approval. a. The WHSD Board of Directors did not vote to approve LL as the Technology Coach for the 2009-2010 school years. 1. The Board was advised at a workshop meeting by the Superintendent that the District was entering into a contract with LL. b. No written contract was ever executed between LL and the District for the 2009-2010 school year Technology Coach. 39. On December 28, 2009, Spangler (via email) advised LL representatives that the District was discontinuing LL as Technology Coach, as detailed below: Westmont Hilltop SD needs to discontinue the Westmont CFF coach contract because of a change in staffing. Elisabeth Rutledge’s last day was December 21. Please do not bill for the additional installments for this contract. Once all of her training/conference charges hit the credit card, we can check the balance and then refund any money due back to the district. Thanks! 40. On April 1, 2010, WHSD Administrator Steve McGee emailed Spangler, in her capacity as LL Executive Director, to advise her that LL would need to reimburse Spangler, 12-007 Page 13 the District any unused monies paid to LL for CFF related functions. McGee’s e- mail provided as follows: We have decided for many reasons that the best use of the remaining funds in the CFF pot at Learning Lamp would be to purchase Promethean Boards at the First Grade level. a. No other LL representatives were included as recipients of McGee’s email. b. No other Board Directors were specifically listed as recipients on McGee’s email. 41. On April 2, 2010, Spangler responded to McGee via email indicating as follows: “No problem…I’ll also submit a check request to Diana to cut back the remaining CFF money to the District.” a. No other LL representatives were included as recipients of Spangler’s email. b. No other Board Directors were specifically listed as recipients on McGee’s email. 42. On or about May 6, 2010, LL issued check #16682 in the amount of $5,342.08 to WHSD as reimbursement to the District for money paid to LL for the CFF. a. Spangler did not sign the check as an LL signatory. 43. The WHSD issued payments totaling $17,105.40 to LL for providing a Technology Coach to WHSD for the 2009-2010 school year. a. Spangler abstained from the District payments to LL, as shown below: Meeting Date Official Action Check # Check Amount Paid Learning Lamp Invoice # 9-14-09 Abstained 52289 $8,552.70* 9325 (in full) 12-7-09 Abstained 52915 $8,552.70* 10539 (in full) Total: $17,105.40 Key: * = Additional LL expenses were paid via said checks; therefore, the check totals are higher than what is reflected. 44. First Commonwealth Bank records for bank account \[account number redacted\] document that the $17,105.40 in District payments to LL for CFF Technology Coach services during the 2009-2010 school year were deposited into LL’s account, as shown below: Check Check Deposit Date Check # Spangler’s Signature As a District Check Amount Date Signatory 9-14-2009 9-18-2009 52289 No $8,552.70* 12-7-2009 12-14-2009 52915 No $8,552.70* Total: $17,105.40 Key: * = Additional LL expenses were paid via said checks; therefore, the check totals are higher than what is reflected. The Following Findings Relate to the District Contracting with LL to Provide Title I Funded Education. 45. Title I is a federally funded supplemental education program that provides financial assistance to districts to improve educational opportunities for educationally deprived children. a. The District utilized its own staff to provide Title I funded education prior to the 2009-2010 school year. Spangler, 12-007 Page 14 46. LL was utilized by the WHSD to provide Title I services to the District beginning with the 2009-2010 school year. a. The Board did not formally vote to approve a contract for 2008-2009 school year. b. The Board was informed by the Superintendent, during a work session of the Board, of the intent to contract with LL. c. Spangler was present during the workshop sessions. 47. LL was selected by the District to provide Title I education services beginning on or about June 22, 2009. a. Spangler served as a Board Director at the time the decision was made to contract with LL. 48. Between August 3, 2010, and August 5, 2010, Spangler, in her capacity as Executive Director of LL, engaged in contract discussions with District administrator Steve McGee via email in regards to the District continuing to use LL to provide Title I education services during the 2010-2011 school year, as shown below: Email From Email To Date of Email Content of Email Spangler McGee 08-03-10 I am touching base to double check on the Title 1 services. We’ll need to renew the contract for this year if you plan to continue working with Andrea. Do you have an idea of how many hours of services you’ll need, and at which schools? McGee Spangler 08-05-10 McGee emails Spangler the details LL needs to create the 2010- 2011 Title I contract with the District. Spangler LL Representatives 08-05-10 Spangler forwarded McGee’s email with the following message: Here is the info on the Westmont Title 1 contract. We need to schedule a meeting to make sure that Andrea is able to serve all of the schools that are requesting her. If not, we may need to hire additional Title 1 staff. 49. The Board of Directors formally voted to utilize LL as a Title I funded education provider for the 2011-2012 school year. a. Spangler abstained from the vote taken at the August 1, 2011, Board meeting to utilize LL as the Title I funded education provider. 50. The WHSD entered into seven contracts with LL totaling $46,279.96 during Spangler’s tenure as a Board Director to provide Title I funded education, as shown below: Date of Services to be Provided Total Signed by Board Contract Contract Vote of Amount Approval 6-22-09 Temporary, part-time Title 1 position for $9,504.00 Susan Anderson as Superintendent of No 2009-2010 school year District on 6-22-09 Leah Spangler as Executive Director of LL on 6-22-09 8-6-10 Title 1 supplies and technology $8,622.00 Susan Anderson as Superintendent of No equipment for 2009-2010 school year at District on 2-14-11 Our Mother of Sorrows, Cathedral Leah Spangler as Executive Director of LL Catholic Academy, and St. Andrews on 2-14-11 8-6-10 One part-time Title 1 tutoring position for $18,106.00 Susan Anderson as Superintendent of No 2010-2011 school year at Our Mother of District on 8-6-10 Sorrows, Cathedral Catholic Academy, Leah Spangler as Executive Director of LL St. Andrews, and Johnstown Christian on 8-6-10 Schools 7-12-11 One part-time Title 1 tutoring position for $2,009.59 Susan Anderson as Superintendent of Yes the 2011-2012 school year (St. Andrews District on 8-17-11 (8-1-11) School) Leah Spangler as Executive Director of LL on 8-22-11 Spangler, 12-007 Page 15 Date of Services to be Provided Total Signed by Board Contract Contract Vote of Amount Approval 7-12-11 One part-time Title 1 tutoring position for $6,028.77 Susan Anderson as Superintendent of Yes the 2011-2012 school year (Our Mother District on 8-17-11 (8-1-11) of Sorrows School) Leah Spangler as Executive Director of LL on 8-22-11 7-12-11 One part-time Title 1 position for the $1,004.80 Susan Anderson as Superintendent of Yes 2011-2012 school year (Johnstown District on 8-17-11 (8-1-11) Christian School) Leah Spangler as Executive Director of LL on 8-22-11 7-12-11 One part-time Title 1 position for the $1,004.80 Susan Anderson as Superintendent of Yes 2011-2012 school year (Cathedral District on 8-17-11 (8-1-11) Catholic Academy) Leah Spangler as Executive Director of LL on 8-22-11 TOTAL $46,279.96 a. Spangler signed all seven contracts as a representative of LL. b. Anderson signed all seven contracts as a representative of the District. c. The Board of Directors did not review the contracts that the District entered into with LL prior to their execution. d. The Board would be made aware of the cost associated with contracting with LL. 51. The WHSD issued twelve (12) payments to LL representing payment of twenty-two (22) separate LL invoices totaling $35,227.90 for Title I services. a. Spangler abstained/did not participate in the Board’s vote to approve monthly bills which included payment to LL on twenty of twenty-two occasions in relation to Title I services. 1. The meeting minutes of the WHSD record Spangler as voting to approve the bill list at the June 21, 2010, meeting at which District check #54021, in the amount of $2,376.00, was approved to LL. b. While Spangler does not dispute that the records of WHSD appear to show that she voted to approve that payment, she asserts there is an error in regard to that record as she maintains that she never voted to approve a payment to LL. 1. Spangler’s vote was not a controlling vote, and the remaining members of the Board voted unanimously in favor of issuing payment to LL. c. Spangler was absent from two of the meetings where the Board approved District checks to be issued to LL related to Title I services. 52. First Commonwealth Bank records for bank account \[account number redacted\] document that $35,227.90 in District payments to LL for Title I services from 2009 through 2012, were deposited into LL’s account. The Following Findings Relate to the District Contracting with LL to Provide ESL (English as a Second Language) Education. 53. Pennsylvania school districts are required to provide ESL (English as a Second Language) instruction to students who have limited English proficiency or are considered an English language learner. Spangler, 12-007 Page 16 a. The WHSD utilized its staff to provide ESL instruction prior to the 2009-2010 school year. 54. The District began utilizing LL to provide its students with ESL instruction beginning with the 2009-2010 school year. a. LL was selected by the District Superintendent and administrators to provide ESL services on or about July 23, 2009. b. The WHSD did not utilize a public bid process when contracting with LL to provide ESL instruction services. c. The ESL services provided by LL were considered a professional service by school district administrators that did not require a public bid process. d. Spangler served as a Board Director during the time period between 2009 and 2010 when contracts were awarded to LL without an open and public process. 55. The WHSD administrative staff, including the Superintendent, engaged in contract negotiations with Spangler for LL to provide ESL services. a. This occurred for both the 2009-2010 and 2010-2011 school years. b. The Board was informed by School District staff, during workshop sessions, of the contracts with LL. 1. The Board did not vote to approve the contracts. 56. The Board of Directors did not formally vote to utilize LL as an ESL provider until the 2011-2012 school year. a. Spangler abstained from the vote at the August 1, 2011, Board meeting to utilize LL as the ESL provider. 57. On July 22, 2011, LL Education Director Heidi Rizkalla emailed Anderson the following message: Leah Spangler said that you are still interested in the full-time ESL position. I did send you a proposal (attached), and if you agree with proposal, I can send you an agreement. a. Rizkalla contacted Anderson about the District contracting with LL to provide ESL services for the 2011-2012 school year, only after Spangler had informed Rizkalla of the District’s interest. 58. On July 22, 2011, Spangler also emailed Anderson to inquire if the District was still interested in contracting with LL to provide ESL services during the 2011-2012 school year, as indicated below: I am double checking on this. Are you still interested in Jessica Dillon for full days next year? a. Jessica Dillon was the LL teacher that provided ESL services to the District. 59. Anderson replied, as follows, to Spangler’s email on July 22, 2011: Spangler, 12-007 Page 17 Did you send a contract for the ESL? I was on hold for a while with that budget- breaking news. I am ready now. We have our ESL tests back, and we will definitely need to continue with ESL in all three of our buildings. We still have Patti, but we will need Jessica, and ½ time will not be enough for this year unless some kiddos move, so YES, to the ESL question. I am ready to sign the contract. a. Spangler replied to Anderson’s email later that day stating: Heidi will get it to you ASAP. Jessica will be excited not to travel so much this year. Thank you! 1. “Heidi” is LL representative Heidi Rizkalla. 60. No other contractors/vendors were considered by the WHSD for the 2011-2012 ESL contract. 61. LL and the District entered into three contracts totaling $42,171.84 during Spangler’s tenure as a Board Director, related to the District contracting with LL to provide ESL education, as shown below: Date of Services to be Provided Total Contract Signed by Board Vote of Contract Amount Approval 7-23-09 Temporary, part-time ESL position for $11,312.40 Susan Anderson as Superintendent of District No the 2009-2010 school year on 7-23-09 Leah Spangler as Executive Director of LL on 8-4-09 5-12-10 Temporary, part-time ESL position for $10,954.90 Susan Anderson as Superintendent of District No 2010-2011 school year on 5-18-10 Leah Spangler as Executive Director of LL on 5-21-10 7-27-11 ESL instructor for 2011-2012 school $19,904.54 Susan Anderson as Superintendent of District Yes year on 8-7-11 (8-1-11) Leah Spangler as Executive Director of LL on 8-10-11 TOTAL $42,171.84 a. Spangler signed all three of the contracts as a representative of LL. b. Anderson signed all three of the contracts as a representative of the District. c. The Board did not formally review the 2009 and 2010 contracts that the District entered into with LL, prior to their execution. 1. The Board was made aware of the costs associated with contracting with LL by WHSD administrators during workshop sessions. 62. Twelve District payments were issued to LL in association with twelve separate LL invoices totaling $42,301.62, in relation to LL providing ESL services for WHSD, from 2009 through 2012. a. Meeting minutes of the WHSD reflect that Spangler voted to approve the bill list at the June 21, 2010, meeting at which District check #54021 was approved. b. While Spangler does not dispute that the records of WHSD appear to show that she voted to approve that payment, she asserts there is an error in regard to that record as she maintains that she never voted to approve a payment to LL. Spangler, 12-007 Page 18 1. Spangler’s vote was not a controlling vote, and the remaining Members of the Board voted unanimously in favor of issuing payment to LL. c. Spangler abstained from the Board vote to approve bill lists on which eleven of the twelve District checks issued to LL related to ESL were documented. d. Spangler was absent from the May 14, 2012, meeting at which check #58673 was documented on the bill list for approval. 63. First Commonwealth Bank records for bank account \[account number redacted\] document that the $42,301.62 in District payments to LL for ESL services from 2009 through 2012, were deposited into LL’s account. The Following Findings Relate to the District Contracting with LL to Provide On- Site Alternative Education Services. 64. Pennsylvania’s Alternative Education for Disruptive Youth (“AEDY”) Program provides a combination of intense, individual academic instruction and behavior modification counseling in an alternative setting to assist students in returning successfully to their regular classroom. a. The AEDY program can be done on-site (utilizing District facilities), or off- site resulting in the District contracting with entities to provide said service at their facilities. 1. WHSD provided its AEDY program off-site prior to the 2010-2011 school year. aa. Entities utilized by the District to provide off-site AEDY programming included Alternative Community Resource Program (“ACRP”) and Northern Point Learning (“NPL”). 65. Beginning with the 2010-2011 school \[year\], the WHSD provided AEDY program services on-site by utilizing LL. a. Currently the District is using only ACRP to provide its AEDY programming. 66. In or about 2010, the District was considering the option of providing its AEDY program on-site rather than off-site. a. The District believed that the students would benefit educationally and the District would benefit financially by providing the program on-site rather than off-site. 1. Housing the program on-site negated the District’s need to pay for busing and other expenses that coincide with off-site programming. 67. District administrator Steve McGee became aware that LL could provide on-site AEDY programming during a conversation with Spangler. a. McGee asked Spangler during the conversation if LL could provide on-site AEDY to which Spangler responded affirmatively. b. McGee and Sanford were the administrators responsible for soliciting proposals from businesses to provide services for the District. Spangler, 12-007 Page 19 c. McGee solicited a proposal from LL in relation to the on-site AEDY program. d. Proposals were not solicited from other potential bidders. 1. McGee believed that Northern Point was going out of business in late 2010, and therefore did not request a proposal from Northern Point. 2. McGee did not consider requesting a proposal from ACRP, the District’s provider of AEDY off-site programming at that time. aa. ACRP provides both on-site and off-site AEDY programming. 68. At the December 6, 2010, Board meeting, McGee informed the Board that he reviewed a proposal submitted by LL related to on-site AEDY programming and recommended to the Board that the District utilize LL to provide said service. a. A motion was made by Board Director Kamal Gella and seconded by Board Director Diana Schroeder to utilize LL to develop a pilot program for the District’s on-site AEDY program. b. The vote to approve the utilization of LL for on-site AEDY programming passed 6-0-1. c. Spangler abstained from the vote. 69. On or about March 16, 2011, LL provided the District a contract related to LL providing pilot AEDY programming/services during the 2010-2011 school year. a. Spangler signed the contract as a representative of LL on March 24, 2011. b. Anderson signed the contract as a representative of the District on March 17, 2011. 70. LL invoiced the WHSD in the amount of $16,474.27 for services related to the pilot AEDY program. 71. LL continued to provide AEDY programming for the WHSD during the 2011-2012 school year. a. The contract for the 2011-2012 school year was not publicly bid. 1. Quotes were not solicited from any vendors other than LL. 72. The Board did not vote to approve LL as the District’s provider of AEDY programming/services for the 2011-2012 school year. a. The Board was advised by the Superintendent during a workshop session prior to August 9, 2011, that LL was being contracted with for the AEDY. 73. On or about August 9, 2011, LL provided the District a contract related to LL providing AEDY programming/services during the 2011-2012 school year. a. Spangler signed the contract as a representative of LL on August 11, 2011. b. Anderson signed the contract as a representative of the District on August 10, 2011. Spangler, 12-007 Page 20 74. The contract entered into between Spangler and Anderson was not formally reviewed or approved by the WHSD Board of Directors, prior to its execution. 75. Five District payments (totaling $65,303.51) in relation to LL providing AEDY programming during the 2010-2011 through 2011-2012 school years, were documented on bill lists for Board approval during Spangler’s tenure as a Board Director. a. Spangler abstained from all five Board votes to approve bill lists on which District checks issued to the LL for providing AEDY programming during the 2010-2011 through 2011-2012 school years were documented. 76. First Commonwealth Bank records for bank account \[account number redacted\] document that the $65,303.51 in District payments to LL for AEDY programming services during the 2010-2011 through 2011-2012 school years were deposited into LL’s account. The Following Findings Relate to the District Contracting with LL to Provide a Full- Time Pennsylvania Mountain Service Corps Member. 77. The Pennsylvania Mountain Service Corps (“PMSC”) is a local initiative of AmeriCorps that provides service opportunities through non-profit or government organizations. a. PMSC provides various services including educational instruction to K-12 students. 78. Sometime prior to August 21, 2009, the WHSD Superintendent selected the LL to provide one full-time PMSC member to the WHSD for educational services during the 2009-2010 school year. a. Administrators of the WHSD were aware that LL could provide these services through interaction with Spangler. b. The decision to utilize LL to provide the PMSC member was not approved by the Board via a vote at a public meeting. 1. The Board was informed by the Superintendent and District administrative staff of the intent to utilize LL to provide the PMSC member. 79. No formal written contract was entered into between the LL and WHSD in regards to LL supplying a PMSC member to the District. 80. On or about August 21, 2009, the District received LL invoice #9234 noting that the District owed LL $6,500.00 for the PMSC member. a. At the September 14, 2009, Board meeting, the Board approved the issuance of District check #52290 dated September 14, 2009, to be issued to the LL to pay for the PMSC member. 1. Spangler abstained from the vote related to the payment of LL invoice #9234. Spangler, 12-007 Page 21 81. On September 18, 2009, District check #52290 in the amount of $15,052.70 was deposited into the LL’s First Commonwealth Bank account \[account number redacted\]. a. The District check paid for additional services provided by the LL other than the $6,500.00 charge related to the PMSC member. III.DISCUSSION: As a Member of the Westmont Hilltop School District (“School District”) Board of Directors (“Board”) from December 3, 2007, until August 13, 2012, Respondent Leah Spangler (hereinafter also referred to as “Respondent,” “Respondent Spangler,” and “Spangler”) 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 Spangler violated Sections 1103(a) and 1103(f) of the Ethics Act: (1) when a business which she is associated, “Learning Lamp, Inc.” (“LL”), entered into contracts with the School District in excess of $500.00 without an open and public process; and (2) when she participated in discussions and negotiations with School District administrators resulting in the award of the contracts. Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a)Conflict of interest.— No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official/public employee from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Spangler, 12-007 Page 22 Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting: § 1103. Restricted activities (f)Contract.— No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 Pa.C.S. § 1103(f). Section 1103(f) of the Ethics Act provides in part that no public official/public employee or his spouse or child or business with which the public official/public employee or his spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official/public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Respondent Spangler served as a Member of the Board from December 3, 2007, until August 13, 2012. Spangler served as the Board Treasurer from December 5, 2011, until August 13, 2012. Spangler voluntarily resigned from her School Director position effective August 13, 2012. The Board consists of nine Members. The Board holds two regularly scheduled meetings per month. Non-legislative meetings are held on the first Monday of the month. Legislative meetings are held on the second Monday of the month. Special meetings are held as necessary. Voting at Board meetings occurs via individual roll call vote. Each individual Board Director’s vote, abstention, or objection is recorded in the meeting minutes. Abstention forms completed by the Directors are appended to the meeting minutes. Legislative and special meeting minutes are approved for accuracy by the Board at the next meeting of the Board. The Board does not approve non-legislative meeting minutes. Spangler, 12-007 Page 23 Bill lists are voted on for approval by the Board at each legislative meeting. The bill lists document all of the bills received by the School District for payment since the last legislative meeting of the Board. Signature authority over the School District financial accounts rests with the Board President, Vice President, Treasurer, and Secretary. School District checks require the signature of any three of the four authorized signatories. School District checks are produced automatically with computer generated signatures. Respondent Spangler’s computer generated signature appeared on School District checks during the time period that she served as Board Treasurer. In a private capacity, Spangler has served as the Executive Director of LL since approximately October 2003. LL is a non-profit corporation that provides various educational programs to assist elementary, middle school, and high school students succeed in the classroom. Approximately 77 school districts utilize the services of LL within Pennsylvania. As the Executive Director of LL, Spangler’s responsibilities include staff management, business development, and communication. LL first began providing services to the School District during the 2003-2004 school year. The School District continued to utilize LL for educational services after Spangler was elected to serve on the Board in November 2007. Members of the Board knew Spangler was the Executive Director of LL during the time Spangler served on the Board. School District administrators entered into contracts with LL after Spangler took office as a School Director in 2007. Spangler was advised by School District officials that if the funding for services was approved in the annual budget, then the School District administration was authorized to obtain those services without further formal approval of the Board, other than the Board’s monthly approval of the payment of the invoices. Invoices from LL were formally approved by the Board before any payments were made to LL. Upon approval of the payment of the invoice by the Board, the agreement between LL and the School District became a legally binding and enforceable contract. School District administrators who contacted Spangler regarding LL services included: Susan Anderson (“Anderson”), Superintendent; Steve McGee (“McGee”), Director of Education/Student Support; and Gregory Sanford (“Sanford”), Business Manager. Contracts between the School District and LL were generally reviewed and executed by Spangler as a representative of LL and by Anderson as a representative of the School District. Between 2007, when Spangler began service as a School Director, and late 2012, none of the contracts entered into between the School District and LL were publically advertised for bid. The invoices of LL were part of the Board agenda, which the parties have stipulated provided prior public notice; the invoices of LL were also part of the Board minutes, which the parties have stipulated provided subsequent public disclosure. From 2007 to 2012, during Spangler’s tenure as a School Director for the School District, Spangler forwarded e-mails to School District administrators which highlighted LL’s services and accomplishments. Spangler also emailed School District administrators regarding the status of contracts and inquired as to additional contracts. Spangler instructed LL staff to contact School District administrators to pursue LL contracts with the School District. The directives given by Spangler to LL staff were the result of contacts from School District administrators requesting services from LL. During Spangler’s tenure as a School Director for the School District, Spangler made requests of School District administrators for support/assistance and utilized School Spangler, 12-007 Page 24 District administrators as a resource for information as detailed in Fact Findings 18 a(1)- (12). The Stipulated Findings focus upon the following types of services provided by LL to the School District during Spangler’s tenure as a School Director: (1) tutoring services; (2) the provision of a “Technology Coach”; (3) Title I services; (4) “English as a Second Language” (“ESL”) services; (5) on-site “Alternative Education for Disruptive Youth” (“AEDY”) program services; and (6) the provision of a “Pennsylvania Mountain Service Corps” (“PMSC”) member for educational services. Re: Tutoring Services The School District has contracted with LL to provide tutoring services through funding provided by a Pennsylvania Department of Education (“PDE”) Accountability Block Grant (“ABG”) program. When Spangler took office as a School Director in December 2007, the Board had already voted to utilize LL to provide ABG funded tutoring during the 2007-2008 school year. At the Board’s July 14, 2008, meeting, Spangler abstained from the Board’s approval of the School District’s payment to LL for such services. The School District utilized LL for tutoring services during the 2010-2011 through 2011-2012 school years. School District administration did not utilize a public bid process or seek formal Board approval when selecting LL to provide tutoring for students. The tutoring services for school years 2010-2011 and 2011-2012 were of a continuing nature and were based on a pre-established rate, and LL was the only practical provider for these services at the time. The School District received five invoices totaling $3,120.00 for tutoring services provided by LL for the 2010-2011 through 2011-2012 school years. Of these five invoices, only two (totaling $2,340.00) were formalized via written contract. Five School District payments were issued to LL in association with the aforesaid five LL invoices totaling $3,120.00 for tutoring services from 2010 through 2012. Spangler abstained from the vote to approve bill lists on which four of the five School District checks issued to LL related to tutoring were documented. Spangler was absent from the meeting when the bill list documenting the issuance of check #58673 was approved by the Board. On or about June 21, 2011, LL reimbursed the School District in the amount of $468.00 for one student who had withdrawn from tutoring. Re: Technology Coach/Classrooms of the Future Program Prior to Spangler becoming a School Director, the Board decided to use an LL “Technology Coach” during the 2007-2008 school year, with monies from the PDE “Classrooms for the Future” (“CFF”) program. For the 2007-2008 school year, the School District made payments totaling $17,985.00 to LL in relation to the Technology Coach. Spangler abstained from the approval of the School District payments to LL for the Technology Coaching services. On or about May 12, 2008, Spangler, in her capacity as Executive Director of LL, engaged in contract discussions with Anderson and Sanford via email with regard to the School District continuing to use LL’s Technology Coach during the 2008-2009 school year. On or about October 3, 2008, the School District received a contract from LL regarding the School District’s utilization of LL to provide a Technology Coach during the 2008-2009 school year. The total amount of the contract was $31,213.98. No official from either the School District or LL signed the contract. The School District’s decision to utilize an LL Technology Coach for the 2008-2009 school year was not brought before the Board Spangler, 12-007 Page 25 for approval by vote. During a work session of the Board, the Board was informed by the Superintendent of the intent to contract with LL. Spangler was present during the workshop session. Two payments totaling $31,213.98 were made to LL by the School District during the 2008-2009 school year for technology services. Board meeting minutes indicate that Spangler approved one of the two payments issued to LL, specifically, a payment in the amount of $10,404.66. See, Fact Finding 35 a. Spangler asserts that the School District’s records are erroneous in that regard as she maintains that she never voted to approve a payment to LL. The remaining Board Members voted unanimously in favor of issuing payment to LL. Spangler was “carbon copied” on email communications between Anderson and the LL Education Director related to the School District contracting with LL to provide a Technology Coach for the 2009-2010 school year. The School District’s decision to utilize LL to provide a Technology Coach for the 2009-2010 school year was not submitted to the Board for approval. The Board was advised by the Superintendent at a workshop meeting that the School District was entering into a contract with LL. No written contract was ever executed between LL and the School District for the 2009-2010 school year Technology Coach. On December 28, 2009, Spangler advised LL representatives via email that the School District was discontinuing LL as Technology Coach. The School District issued payments totaling $17,105.40 to LL for providing a Technology Coach to the School District for the 2009-2010 school year. Spangler abstained from the Board’s approval of these School District payments to LL. On or about May 6, 2010, LL issued check #16682 in the amount of $5,342.08 as reimbursement to the School District for money paid to LL for the CFF. Re: Title I Services Title I is a federally funded supplemental education program that provides financial assistance to school districts to improve educational opportunities for educationally deprived children. LL was utilized by the School District to provide Title I services to the School District beginning with the 2009-2010 school year. Between August 3, 2010, and August 5, 2010, Spangler, in her capacity as Executive Director of LL, engaged in contract discussions with McGee via email with regard to the School District continuing to use LL to provide Title I education services during the 2010-2011 school year. During Spangler’s tenure as a School Director, the School District entered into seven contracts with LL totaling $46, 279.96 to provide Title I funded education, as detailed in Fact Finding 50. Spangler signed all seven contracts as a representative of LL. Anderson signed all seven contracts as a representative of the School District. The Board did not review the contracts that the School District entered into with LL prior to contract execution. The Board formally voted to utilize LL as a Title I funded education provider for the 2011-2012 school year. Spangler abstained from the vote. The School District issued twelve payments to LL representing payment of twenty- two LL invoices totaling $35,227.90 for Title I services. Spangler abstained from/did not participate in the Board’s vote to approve monthly bills which included payment to LL on twenty of twenty-two occasions in relation to Title I services. Board meeting minutes record Spangler as voting to approve the bill list at the June 21, 2010, Board meeting, at which District check number 54021, in the amount of $2,376.00, was approved to LL. Spangler asserts that the School District’s records are erroneous in that regard as she maintains that she never voted to approve a payment to Spangler, 12-007 Page 26 LL. The remaining Board Members voted unanimously in favor of issuing payment to LL. Re: ESL Services During Spangler’s tenure as a School Director, LL and the School District entered into three contracts totaling $42,171.84 for LL to provide ESL instruction services, as detailed in Fact Finding 61. Spangler signed all three of the contracts as a representative of LL, and Anderson signed all three of the contracts as a representative of the School District. For both the 2009-2010 and 2010-2011 school years, the ESL contracts were negotiated by School District administrative staff and Spangler. The Board was informed by School District staff, during workshop sessions, of the contracts with LL. The Board did not formally review the contracts prior to contract execution. The Board did not vote to approve the contracts. For the 2011-2012 school year, the LL Education Director and Spangler contacted Anderson via email on July 22, 2011, about the School District contracting with LL to provide ESL services. Anderson replied to Spangler’s email that same day indicating that she (Anderson) was ready to sign a contract for the ESL. Spangler replied to Anderson’s email later that same day indicating that the contract would be provided to Anderson. No other contractors/vendors were considered by the School District for the 2011-2012 ESL contract. The Board formally voted to utilize LL as an ESL provider for the 2011-2012 school year. Spangler abstained from the vote. Twelve School District payments were issued to LL in association with twelve LL invoices totaling $42,301.62, in relation to LL providing ESL services for the School District from 2009 through 2012. Spangler abstained from/did not participate in the Board vote to approve bill lists on which eleven of the twelve School District checks issued to LL related to ESL were documented. Board meeting minutes reflect that Spangler voted to approve the bill list at the Board’s June 21, 2010, meeting at which School District check #54021 was approved. Spangler asserts that the School District’s records are erroneous in that regard as she maintains that she never voted to approve a payment to LL. The remaining Board Members voted unanimously in favor of issuing payment to LL. Re: AEDY Program Services Beginning with the 2010-2011 school year, the School District provided AEDY program services “on-site” (at School District facilities) utilizing LL. McGee became aware that LL could provide on-site AEDY programming during a conversation with Spangler. McGee solicited a proposal from LL in relation to the on-site AEDY program. Proposals were not solicited from other potential bidders. At the December 6, 2010, Board meeting, the Board voted to approve the utilization of LL for on-site AEDY programming. Spangler abstained from the vote. On or about March 16, 2011, LL provided to the School District a contract related to pilot AEDY programming/services for the 2010-2011 school year. Spangler signed the contract as a representative of LL, and Anderson signed the contract as a representative of the School District. LL invoiced the School District in the amount of $16,474.27 for services related to the pilot AEDY program. LL continued to provide AEDY programming for the School District during the 2011- 2012 school year. The contract for the 2011-2012 school year was not publicly bid. Quotes were not solicited from any vendors other than LL. The Board did not vote to approve LL as the School District’s provider of AEDY programming/services for the 2011- 2012 school year. The Board was advised by the Superintendent during a workshop Spangler, 12-007 Page 27 session prior to August 9, 2011, that the School District was contracting with LL for the AEDY programming/services. On or about August 9, 2011, LL provided to the School District a contract related to AEDY programming/services during the 2011-2012 school year. Spangler signed the contract as a representative of LL, and Anderson signed the contract as a representative of the School District. The contract was not formally reviewed or approved by the Board prior to contract execution. Five School District payments (totaling $65,303.51) in relation to LL providing AEDY programming during the 2010-2011 through 2011-2012 school years were documented on bill lists for Board approval during Spangler’s tenure as a School Director. Spangler abstained from all five Board votes to approve those bill lists. Re: PMSC Member Prior to August 21, 2009, the School District Superintendent selected the LL to provide one full-time PMSC member to the School District for educational services during the 2009-2010 school year. School District administrators were aware that LL could provide these services through interaction with Spangler. The decision to utilize LL to provide the PMSC member was not approved by the Board via a vote at a public meeting. The Board was informed by the School District Superintendent and administrative staff of the intent to utilize LL to provide the PMSC member. No formal written contract was entered into between the LL and the School District in regards to LL supplying a PMSC member to the School District. On or about August 21, 2009, the District received LL invoice #9234 in the amount of $6,500.00 for the PMSC member. On September 14, 2009, the Board approved the issuance of School District check #52290 dated September 14, 2009, to be issued to the LL to pay for the PMSC member and for additional services. Spangler abstained from the vote related to the payment of LL invoice #9234. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a) occurred in relation to Spangler, as Executive Director of Learning Lamp, Inc., participating in discussions with Westmont Hilltop School District administrators, which led to contracts and/or agreements for services to be provided by Learning Lamp, Inc. to Westmont Hilltop School District, at a time when Spangler was also serving as a Member of the Board of Directors of the Westmont Hilltop School District. b. That no violation of Section 1103(f) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(f) occurred when Learning Lamp, Inc., entered into contracts for services in excess of Spangler, 12-007 Page 28 $500.00 with the Westmont Hilltop School District, as it appears that an open and public process was followed, in comport with the ruling in the matter Kistler v. State Ethics Commission, 610 Pa. 516 (Pa. 2011). 4. Spangler agrees to make payment in the amount of $3,000.00 in settlement of this matter payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. Spangler agrees to not accept any reimbursement, compensation or other payment from Westmont Hilltop School District representing a full or partial reimbursement of the amount paid in settlement of this matter. 6. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 2. We accept the recommendation of the parties for a finding of a violation of Section 1103(a) of the Ethics Act. The Consent Agreement reflects the agreement of the parties that the elements of use of authority of office for a prohibited private pecuniary benefit have been established. Without adopting any particular reasoning of the parties, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to actions by Spangler which led to contracts and/or agreements for services to be provided by LL—a business with which Spangler is associated as Executive Director—to the School District, while Spangler was serving as a School Director for the School District. We also accept the parties’ recommendation for a finding of no violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f). Per the Stipulated Findings, the Board’s approval of payment of invoices from LL occurred before any payments were made to LL and resulted in the agreements between LL and the School District becoming legally binding and enforceable contracts. The invoices of LL were part of the Board agenda, which the parties have stipulated provided prior public notice. The invoices of LL were also part of the Board minutes, which the parties have stipulated provided subsequent public disclosure. Therefore, based upon the Stipulated Findings and Consent Agreement of the parties, we hold that no violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when LL entered into contracts for services in excess of $500.00 with the School District, as it appears that an open and public process was followed, in comport with the ruling in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011). Spangler, 12-007 Page 29 As part of the Consent Agreement, Spangler has agreed to make payment in the amount of $3,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Spangler has further agreed to not accept any reimbursement, compensation or other payment from the School District representing a full or partial reimbursement of the amount paid in settlement of this matter. We determine that the Consent Agreement submitted by the parties sets forth a proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, per the Consent Agreement of the parties, Respondent Spangler is directed to make payment in the amount of $3,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no th later than the thirtieth (30) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Respondent Spangler is directed to not accept any reimbursement, compensation or other payment from the School District representing a full or partial reimbursement of the amount paid in settlement of this matter. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV.CONCLUSIONS OF LAW: 1. As a Member of the Westmont Hilltop School District (“School District”) Board of Directors from December 3, 2007, until August 13, 2012, Respondent Leah Spangler (“Spangler”) 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. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to actions by Spangler which led to contracts and/or agreements for services to be provided by Learning Lamp, Inc. (“LL”)—a business with which Spangler is associated as Executive Director—to the School District, while Spangler was serving as a School Director for the School District. 3. Based upon the Stipulated Findings and Consent Agreement of the parties, no violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when LL entered into contracts for services in excess of $500.00 with the School District, as it appears that an open and public process was followed, in comport with the ruling in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011). In Re: Leah Spangler, : File Docket: 12-007 Respondent : Date Decided: 9/30/14 : Date Mailed: 10/14/14 ORDER NO. 1645 1. As a Member of the Westmont Hilltop School District (“School District”) Board of Directors, Leah Spangler (“Spangler”) violated Section 1103(a) of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to actions by Spangler which led to contracts and/or agreements for services to be provided by Learning Lamp, Inc. (“LL”)—a business with which Spangler is associated as Executive Director—to the School District, while Spangler was serving as a School Director for the School District. 2. Based upon the Stipulated Findings and Consent Agreement of the parties, no violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when LL entered into contracts for services in excess of $500.00 with the School District, as it appears that an open and public process was followed, in comport with the ruling in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011). 3. Per the Consent Agreement of the parties, Spangler is directed to make payment in the amount of $3,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the th thirtieth (30) day after the mailing date of this Order. 4. Per the Consent Agreement of the parties, Spangler is directed to not accept any reimbursement, compensation or other payment from the School District representing a full or partial reimbursement of the amount paid in settlement of this matter. 5. Compliance with paragraphs 3 and 4 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