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Home My WebLink About1705 YuskoSTATE ETHICS COMMISSION 309 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Charles E. Yusko, File Docket: Respondent X -ref: Date Decided Date Mailed: 15 -023 Order No. 1705 1216/16 12/7/16 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick Maria Feeley Melanie DePalma 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 ,sew., 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." On July 25, 2016, a Stipulation of Findings and Consent Agreement were submitted by the parties to the Commission for consideration. That Consent Agreement was re ected. On November 10, 2016, the parties again submitted a Stipulation of Findings and Consent Agreement to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement filed November 10, 2016, has been approved. ALLEGATIONS: That Charles E. Yusko, a public official /public employee in his capacity as a Supervisor, Board Member and employee of the Municipal Authority of Washington Township, violated Section 1103(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § 1103(a), when he utilized the authority of his office for the private pecuniary benefit of himself and/or members of his immediate family, when he authorized and/or otherwise directed that he not be required to secure an additional sewer tap -in or be assessed an additional Equivalent Dwelling Unit ( "EDU ") fee for a separate living space at his residence, and /or residential structures which Yusko owns, thereby realizing a private pecuniary benefit; and when, as a Member of the Washington Township Board of Supervisors, he participated in discussions and actions of the Board of Supervisors to reappoint Members of the Washington Township Municipal Authority to their current terms, including himself, with an increase in meeting pay. II. FINDINGS: 1. Charles Yusko has served as a Member of the Municipal Authority of the Township of Washington, Fayette County, Board of Directors from January 7, 2012, to the present. a. Yusko has served as the Chairman of the Authority Board of Directors since January 9, 2016. P.O. BOX 1 1 470, HARRISBURG, PA 17108-1470 • 717 -783 -1 610 • 1 -500- 932 -0936 • www.ethics.state.pa.us Yusko, 15 -023 Page 2 b. Yusko had previously served as the Chairman of the Board of Directors from January 7, 2012, until December 17, 2013. Yusko resigned from the office of Chairman at the onset of the December 17, 2013, regular meeting of the Board of Directors. 2. Yusko has held no other office on the Authority Board of Directors during his service. 2. Yusko has also served as a Member of the Board of Supervisors for Washington Township, Fayette County since January 3, 2006.* *[Cf., Fact Finding 22.1 a. Yusko has held multiple offices and positions throughout his tenure as a Washington Township Supervisor including Chairman, Vice - Chairman, Assistant Secretary/Treasurer, Roadmaster, Assistant Roadmaster, Superintendent of Police, and Assistant Superintendent of Police. 1. Yusko currently holds no specific office with the Board of Supervisors. 3. Yusko has been employed by the Municipal Authority of the Township of Washington, Fayette County, since November 17, 1986. a. Yusko was initially employed in a full -time laborer position. b. Yusko is currently employed as a full -time certified operator. 4. The Municipal Authority of the Township of Washington, Fayette County (hereafter "Authority "), is currently governed by a five - Member Board of Directors (hereafter "Board "). a. The Authority holds one regularly scheduled legislative meeting per month on the last Tuesday of each month. 1. A workshop meeting is held on the same night immediately prior to the legislative meeting. b. The Authority holds special meetings as necessary. 5. Authority Board Members currently receive compensation for attendance at Authority meetings in the amount of $100.00 (gross) per meeting with the exception of the Authority Board Secretary and Treasurer. a. Board Members serving in the separate positions of Secretary and Treasurer receive $135.00 (gross) per meeting in the respective positions. b. Board Members must be present at the regularly scheduled monthly meetings in order to receive the compensation. 6. Voting at Authority meetings occurs in a combination of group aye/nay vote or individual roll call vote depending on the issue. a. Votes involving the spending of large sums of money or controversial issues are voted on via individual roll call vote. b. Votes involving routine or recurring motions are voted on in group aye/nay fashion. Yusko, 15 -023 ai�ge 3 C. Minutes generated for Authority meetings are approved for accuracy at subsequent meetings of the Authority Board. 7. Authority Board Members receive and/or have access to an agenda packet for review prior to the monthly legislative meeting. a. The agenda packets are prepared by Authority office personnel. b. The agenda packets are emailed to the Board with a hard copy also placed in each individual Board Member's mailbox located in the Authority office. 1. The meeting packets are routinely available to the Board Members the Friday prior to the legislative meeting. 8. The agenda packet routinely consists of the listing of checks issued for the prior month and the current month -to -date, the sign -in sheet from the prior meeting, payroll, the prior month's meeting minutes, Authority financial reports, print -outs of the Authority on -line banking balances, etc. a. The Authority generates and issues checks multiple times during the month for payment of bills received. The actual vote taken at each legislative meeting to approve bills includes after - the -fact approval of any checks issued prior to the date of the meeting. 9. Signature authority over Authority accounts is maintained by the Authority Board Chairman, Secretary, and Treasurer. a. Authority checks require the live signature of any two of the three authorized signatories. The Authority does not utilize facsimile stamps. 10. The Authority is composed of two separate facilities from which it accomplishes its mission of providing water service. a. The Authority maintains an office for administrative type services (i.e. billing, fee collection, record maintenance, etc.) at 1390 Fayette Avenue, Belle Vernon, PA 15012. b. The Authority maintains a treatment plant for treatment and distribution of water located on Route 201 South, Fayette City, Pennsylvania, approximately one mile from the Authority office. 11. At the May 29, 2012, regular Authority meeting, a motion was made by Board Member Julius Petrosky, seconded by Board Member Kyle Miller, to accept specific Rules and Regulations Governing Sewage Service in relation to the sanitary sewer system. a. The motion to accept the Rules and Regulations Governing Sewage Service carried unanimously. 1. Yusko was present at the meeting but, as Chairman, did not participate in the vote. Yusko, 15 -023 �4 12. The Rules and Regulations developed by Bankson contained multiple sections which included, in part, Definitions; Use of Sewer; Bills and Payment, and Sewage Rate Schedule as detailed, in part, below: Section 2: Definitions 1. Section 24: Building — Occupied: The term "Occupied Building" means any structure erected and intended for continuous or periodic habitation, occupancy, or use by human beings or animals, and from which structure sanitary sewage and industrial wastes, or either thereof, is or may be discharged. Section 2.8: Char es for Sewa e Service -- Multiple Billin : The term `Multiple Billing means the basis for computing c arges or sewage service in all cases where more than one premises is served through one water meter or a water meter installation ... and the basis for charges for sewage service in all cases where more than one premises is served through one premises or building sewer line; the procedure for such billing being outlined in the Rules and Regulations and summarized as follows: aa. Section 2.8.1: Number of Premises: The potential number o .premises in any bui in or group of buildings, and the charges therefor, are subject to determination by the Authority prior to original approval of the Authority to furnish water and/or sewage services, and are subject to determination subsequent to any alterations additions, or changes in the building or group of buildings. Tke customer or customers, or Township, shall notify the Authority promptly in relative to any changes the number of premises, the number at any time always being subject to determination by the Authority. 3. Section 2.13: Customer: The word "Customer" means the owner or tenant, as later a ine , contracting for and obtaining sewage service for one or more premises, and the word "Customers" means also contracting for and using service. Section 2.16: Equivalent Dwelling Unit: Equivalent dwelling unit (EDU) means a volume of water equEVa ent to the average amount of water consumed by a single family residential unit. 5. Section 2.28: Owner: The word "Owner" means the person, firm, or corporation or association having an interest as owner, or a person, firm or corporation representing itself to be the owner, whether legal or equitable, sole or only partial, in any premises which is or is about to be furnished sewage service by the Authority, and the word "Owners" means all interested. Section 2.31: Premises: The word "Premises" means the property or area including the improvements to such, to which sewage service is or will be furnished, and as used is to designate, in part: aa. A building under one roof, owned or leased by one customer and occupied as one residence or one place of business; or bb. The one side of a double house having a solid vertical partition wall; or Yusko, 15 -023 a5 cc. Each side or each part of a house or building occupied by one family, even though the closet and/or other fixtures be used in common; or dd. Each dwelling unit in a house or building. L Dwelling unit defined as a building or portion thereof with exclusive culinary facilities designed for occupancy and used by one person or by one family (household). b. Section 7: Use of Sewer Section 7.1: Required Use: All premises accessible to the public sanitary sewerage system are to be connected to the system at the expense of the user and /or property owner. C. Section 10: Bills and Payment 1. Section 10.1: Bills Rendered and Due: All sewage bills are to be rendered at the end of the service period, with residential billing normally to be on a quarterly basis. aa. All bills are payable to the Municipal Authority of the Township of Washington at any pay agency of the Authority during regular business hours or by mail. 2. Section 10.7: Char es for Active Sewage Service: All bills for sewage services furnished by the Authority will e based on the published Schedule of Rates of the Authority. aa. Section 10.7.1: Normal Char es: Each premises will be subject to a fixed minimum monthly or quarterly charge for sewage services and billed on a water use or flat rate basis. bb. Section 10.7.2: Multiple Billing: The charge for sewage service in all cases where water use is the basis of charges and more than one premises is served through one building sewer shall be determined in accordance with the general procedures set forth with respect to Multiple Billing. 3. Section 10.8: Minimum Charges for Inactive Sewage Service: A minimum charge, as set forth in the Schedule of Rates, will be made against all vacant premises that are provided with a sewer line connection; and further, minimum charges will be made against all premises that abut on Authority sewerage facilities and are located within 150 feet thereof, whether or not such premises are connected to the utility systems and whether vacant or occupied... The principle of Multiple Billing or Unit Charge is to also apply in cases of inactive service where multiple premises are involved. d. Sewage Rate Schedule: The Sewage Rate Schedule applicable effective July 1, 2012, for sewage services rendered is as follows: aa. Monthly minimum charge per EDU: $55.00 (includes 2,000 gallon allowance); and Yusko 15-023 page 6I The $55.00 monthly fee consisted of debt service fees of $41.66 and sewer service fees of $13.34. bb. Consumption charge beyond 2,000 gallons per month: $6.67 per 1,000 gallons. 2. Although not specified on the Sewage Rate Schedule, the top -in fee for customers to hook into the sanitary sewer system was $625.00 per tap. 13. Yusko is a resident of Washington Township ( "Township "), Fayette County. a. Yusko owns and resides in a two story residential structure located at [residence address redacted]. 1. Yusko's property falls within the Authority's service area. 2. Yusko's property at [residence address redacted], is assigned Authority customer number [customer number redacted]. 3. The structure was a one story garage when originally constructed. b. Yusko also owns property (a vacant lot) on Rose Street in Belle Vernon, Pennsylvania. The Tax Map Number associated with the property is 41- 07- -0001. 2. The property falls within the Authority's service area. 3. Yusko's property on Rose Street, Belle Vernon, Pennsylvania, is assigned Authority customer number [customer number redacted]. aa. Although the lot is vacant, Yusko paid the $625.00 tap fee associated with the sanitary sewer system to the Authority on January 18, 2011, via personal check number 1583. 14. Yusko continued to be assessed only one EDU for his property located at [residence address redacted], although engineers ultimately recommended to the Board that the Authority remain consistent in its application of EDU determination /assignment to Township properties. a. Yusko was charged one sewage tap fee for his property at [residence address redacted], in the amount of $625.00 which was paid on or about October 27, 2009, via personal check number 1122. b. Yusko was charged $73.90 per month (paid quarterly) for water service, sewage service, and debt service fees spanning the time period of July 2012 through March 2016. 1. Fees associated with one EDU assignment total $73.90 per month as follows: aa. Water Service: $18.90 bb. Sewage Service: $13.34 cc. Debt Service: $41.66 Yusko, 15-023 a�7 15. From July 11, 2012, through March 2016, Yusko had consistently issued payment to the Authority for fees associated with water, sewage, and debt collection services for one EDU. 16. On or about March 24, 2016, a notice from the Township Zoning Officer was received by Jan Amoroso ( "Amoroso "), the Authority's Office Manager, referencing an anonymous complaint received by the Zoning Officer regarding the number of living units at [ Yusko's residential propertyladdress]. a. The notice identified the Fayette County Assessment Office reporting two separate buildings on the property. [Residence address redacted] is classified as a raised ranch. 2. [Residence address redacted] (Rear) is classified as a duplex. b. The Zoning Officer attached to the notice a copy of Section 2, "Definitions" of Township Ordinance No. 0- 01.01 defining a dwelling unit. 17. Amoroso subsequently sent correspondence to Yusko dated March 28, 2016, which identified Yusko having one water meterwhich serviced two dwellings (referencing a second floor apartment). a. The correspondence notified Yusko that he would be responsible for a double service beginning with the subsequent month's bill. 1. The correspondence identified the total billing amount for a double service as $147.80 allowing for 4,000 gallons usage per month. 18. Yusko replied to the Authority's correspondence through Attorney John M. Purcell via letter dated April 5, 2016, which included, in part, the following: a. Yusko disagreed with the Authority's contention that his property should be subject to two EDUs; b. Yusko's request that the change in his account be rescinded; C. A request for a local agency hearing before the Authority Board if the rescinding was not done voluntarily; and d. Any payments made at the higher rate would be made under protest. 19. Yusko's Authority service billing for April 2016 documented payment due in the amount of $110.00 for sewage service (fees plus debt service) and $37.80 for water service. a. The fees charged represented the Authority assessing double service fee to Yusko's property at [residence address redacted] (Rear). b. Yusko's Authority Customer History File documented Yusko's payment of $147.80 to the Authority on or about April 6, 2016. 20. The second floor apartment in Yusko's residence located at [residence address redacted] fell within the criteria historically utilized by the Authority for assignment of a second EDU. Yusko, 15-023 �S a. Yusko has opposed the assignment of a second EDU at his residence since discussed at an Authority Board meeting on or about at least October 2014. 21. Since the April 2016 billing, Yusko has paid the charges for two (2) EDUs. a. Yusko's request for a local agency hearing before the Authority to challenge the fee is pending. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT YUSKO, IN HIS CAPACITY AS A TOWNSHIP SUPERVISOR, PARTICIPATED IN DISCUSSIONS AND ACTIONS OF THE BOARD OF SUPERVISORS TO REAPPOINT MEMBERS OF THE AUTHORITY, INCLUDING HIMSELF, TO THEIR CURRENT TERMS WITH AN INCREASE IN MEETING PAY. 22. Yusko has served as a Township Supervisor from January 3, 1996,` through the present. *[Cf., Fact Finding 2.] 23. Yusko has also served as a Member of the Authority from January 7, 2012, through the present. 24. The Township is a second class township governed by a three - Member Board of Supervisors. a. The Township Supervisors hold one legislative meeting per month on the second Wednesday of each month. 1. A workshop meeting is held immediately prior to the start of the regular legislative meeting. b. The Township holds special meetings as necessary. 25. Voting at Township meetings occurs via group aye or nay vote after a motion is made and properly seconded. a. Any abstentions or objections cast during the vote are specifically documented within the minutes. 1. Minutes of Township meetings are approved for accuracy at each subsequent meeting. 26. The Township Supervisors receive a meeting packet for review prior to the convening of the regularly scheduled legislative meeting. a. The packets are assembled by the appointed Township Secretary/Treasurer. b. The packets are placed on the table in the Township meeting room the day of the regularly scheduled meeting. 27. The meeting packet routinely consists of the upcoming meeting agenda, a written copy of the prior month's meeting minutes, a listing of all bills received since the prior month's meeting, correspondence, reports, etc. a. The list of bills documents all bills received by the Township for payment since the prior legislative meeting. Yusko 15 -023 Page -b 28. Signature authority over the Township financial accounts is maintained by all three Supervisors. a, Township checks require the live signature of any two of the three authorized signatories. 1. The Township does not utilize facsimile stamps. 29. The Township Supervisors created the Authority via Ordinance presented at a meeting of the Township Supervisors on August 4, 1952. a. The Township Supervisors created the Authority pursuant to the authority granted them in the Pennsylvania Municipality Authorities Act. 1. Per the Municipality Authorities Act, compensation provided for Authority Board Members must be established by the appointing authority. aa, Board Members are not permitted to receive an increase or decrease in compensation during their existing terms. i. Any increase or decrease in salary becomes effective only upon the beginning of a new term after the increaseldecrease is enacted. 30. The Township Supervisors are responsible for appointing the Members of the Authority Board and setting Board Member compensation. a. The Authority is governed by a five- Member Board of Directors. 1. Authority Board Members serve five -year terms. 31. Authority Board Members receive a monthly stipend /salary for service on the Authority Board. a. Board Members must be present at the scheduled legislative meeting to receive the stipend /salary. b. The stipend /salary covers all Authority business conducted by the Board Members during the applicable month. 1. Board Members do not receive additional payment for special meetings, other Authority business, etc. G. The Board Member stipends /salaries are automatically processed within one of the payroll runs completed for Authority employee salaries every month. 1. Payroll for Authority employees is processed and issued every two weeks. 32. In 2011, the Authority Board consisted of Julius Petrosky, Ken Klancher, Kyle Miller, Joe Walko, and Bob Campbell. a. In 2011, Authority Board Members were eligible to receive $75.00 per month for their service on the Authority Board, Yusko, 15 -023 I e10 33. At the November 9, 2011, regular meeting, the Township Supervisors appointed David Samek and Timothy Naulty to fulfill the unexpired terms of Walko and Campbell respectively. a. Campbell and Walko resigned their seats on the Authority Board effective September 27, 2011. b. Yusko was present and voted in favor of appointing Samek and Naulty to the Authority Board. 1. Samek was the Township consulting engineer at the time of his appointment. 2. Naulty was the Township Code Enforcement Officer at the time of his appointment. C. Immediately after the appointments, Yusko motioned and voted in favor of increasing the current rate of pay for the Authority Board Members to $100.00 per meeting. 1. The motion passed unanimously 3-0. 34. At the December 14, 2011, regular meeting, the Township Supervisors addressed the subjects of term expiration and compensation for Samek and Naulty under the "Old Business" portion of the meeting agenda. a. Samek's and Naulty's terms were documented as expiring at the conclusion of 2012 and 2013 respectively. b. The Township Supervisors re-established the "meeting pay" for new Board Members to be set at the original amount of $75.00 and $110.00 for the Treasurer. 1. The minutes of the December 14, 2011, meeting documented compensation for the existing Board at $75.00 "per meeting" at that time. 2. The minutes further noted an increase in compensation to $100.00 "per meeting" when and if a member was reappointed. C. Yusko was present at and participated in the vote setting the compensation for Authority Board Members. 35. At the Township's January 3, 2012, re- organization meeting, Supervisor Arnold Dull motioned, seconded by Supervisor Jamie Miller, to appoint Yusko to a five -year term on the Authority Board. a. The motion carried 2 -0 -1 with Yusko abstaining from the vote. 1. Yusko was appointed to the vacancy caused by the expiration of Ken Klancher's term at the conclusion of December 2011. b. No specific salary was set at the re- organization meeting for Yusko in his position as an Authority Board Member. 36. At the Township's regular meeting of January 3, 2012, held immediate)y following the re- organization meeting, a motion was made by Miller, seconded by Dull, to set the "meeting pay" for Yusko at $100.00 per meeting. Yusko, 15 -023 X11 a. The motion carried 2 -0 -1 with Yusko abstaining from the vote. b. Yusko subsequently expressed his intention to donate his Authoritywages to establish a hardship fund for those customers requiring assistance with their water/sewage bills. 37. Setting wages in the amount of $100.00 per meeting for Yusko differed from the wage amounts established by the Township Supervisors at the December 14, 2011, regular Township meeting. a. Wages were established at $75.00 for new Board Members with an increase to $100.00 when and if a Member was "re- appointed." 1. Yusko had not previously served on the Authority Board. 2. Yusko was newly appointed to the Authority Board in January 2012. b. Remaining Board Members (with the exception of the Board Treasurer) continued to receive $75.00 per meeting in January 2012. 38. The Township Supervisors subsequently adJusted Authority Board Member meeting pay at the February 8, 2012, regular Township meeting as a result of the discrepancy in compensation set for Yusko and the remaining Authority Board Members. a. Yusko motioned, seconded by Dull, to, "... re- appoint the current Municipal Authority Board members to their current terms with an adjusted meeting pay of $100.00 per meeting." 1. The motion passed 3 -0 with Yusko voting in favor of the motion. 2. Yusko again stated his intention to establish a hardship fund for those customers requiring assistance with their water/sewage bills. b. Yusko participated in the vote to re- appoint the entire Authority Board to their current terms while Yusko was an active Authority Board Member at that time. c. The Stipulation of Findings states that] Yusko effectively re- appointed himself to a paid position on the Authority Board by virtue of his motion and subsequent vote. d. Yusko took this action after he received oral advice from counsel that it was proper. 39. At the February 28, 2012, regular Authority meeting, the Authority Board acknowledged the increase in Board Member salaries as approved by the Township Supervisors. a. Under New Business, a motion was made by Board Member Kyle Miller, seconded by Naulty, to increase Board Member meeting pay by $25.00 to $100.00 for regular Board Members and $135.00 for the Board Treasurer & Secretary positions. 1. The motion passed unanimously. aa. Yusko was present for the meeting. Yusko 15 -023 age i 2 bb. Yusko did not vote on the motion. i. Yusko held the office of Chairman of the Board at that time. 40. From February 2012 through March 2016, Yusko was issued payments from the Authority for his service as an Authority Board Member totaling approximately $5,500.00 as detailed in the chart below: Check Check Amount Amount Meeting Yusko Yusko's Final Date Number (Gross) (Net) Approval Date Present Vote Vote 01/20/12 00556 $100.00 $88.47 02/28/12 Yes None - Chairman 4 *0 02/03/12 00565 $100.00 $88.47 03/28/12 Yes None- Chairman 4 *0 03/02/12 22579 $100.00 $88.74 04/24/12 Yes None - Chairman 4 *0 03/30/12 00593 $100.00 $88.47 04/24/12 Yes None - Chairman 4 *0 04/27/12 00607 $100.00 $88.47 05/29/12 Yes None - Chairman 4 *0 06/08/12 00626 $100.00 $88.47 07/31112 Yes None- Chairman 4 *0 07/06/12 00640 $100.00 $88.47 08/28/12 Yes None - Chairman 4 *0 08/03/12 00654 $100.00 $88.47 09/25/12 Yes None - Chairman 4 *0 08/31/12 00668 $100.00 $88.47 09/25/12 Yes None- Chairman 4 *0 09/28/12 00682 $100.00 $88.47 10/30/12 Yes None - Chairman 4 *0 11/09/12 00700 $100.00 $88.47 12/18/12 Yes None- Chairman 3 *0 12/07/12 00714 $100.00 $88.47 01/29/13 Yes None- Chairman 4 *0 12/21/12 00723 $100.00 $88.47 01/29/13 Yes None - Chairman 4 *0 01/18/13 00737 $100.00 $86.67 02/26/13 Yes None- Chairman 4 *0 02/01/13 00747 $100.00 $86.67 03/21/13 Yes None - Chairman 3 *0 03/01/13 00760 $100.00 $86.67 04/30/13 Yes None - Chairman 4 *0 03/28/13 00772 $100.00 $86.67 04/30/13 Yes None - Chairman 4 *0 05/10/13 00788 $100.00 $86.67 06/25/13 Yes None- Chairman 4 *0 06/07/13 00800 $100.00 $86.67 07/23/13 Yes None - Chairman 4 *0 07/05/13 00812 $100.00 $86.67 08/27/13 Yes None - Chairman 4 *0 08/02/13 00824 $100.00 $86.67 09/24/13 Yes None - Chairman 3 *0 08/30/13 00836 $100.00 $86.67 09/24/13 Yes None - Chairman 3 *0 09/13/13 00844 $100.00 $86.67 10/22/13 Yes None - Chairman 3 *0 09/27/13 00852 $100.00 $86.67 10/22/13 Yes None - Chairman 3 *0 10/25/13 00864 $100.00 $86.67 11/26/13 Yes None - Chairman 3 *0 12/06/13 00880 $100.00 $86.67 01/27/14 Yes Motion/Yes 3 *0 01/31/14 00908 $100.00 $86.86 02/24/14 Yes Second/Yes 4 *0 01/31/14 00909 $100.00 $86.86 02/24/14 Yes Second/Yes 4 *o 02/28/14 00921 $100.00 $86.86 03/31/14 Yes SecondNes 3 *0 04/11/14 00937 $100.00 $86.86 05/19/14 Yes Yes 4*0 05/09/14 00949 $100.00 $86.86 06/30/14 Yes SecondNes 3 *0 05/23/14 00957 $100.00 $86.86 06/30/14 Yes SecondlYes 3 *0 07/03/14 00972 $100.00 $86.86 08/25/14 No Minutes NIA Unk 08/01/14 00984 $100.00 $86.86 09/29/14 Yes Yes 4 *0 *1 Yusko, 15 -023 X13 Check Check Amount Amount Meeting Yusko Yusko's f=inal Date Number (Gross) (Net) Approval Date Present Vote Vote 08/29/14 00995 $100.00 $86.86 09/29/14 Yes Yes 4 *0 *1 10/10/14 01011 $100.00 $86.86 11/24/14 Yes Motion/Yes 3 *0 11/07/14 01023 $100.00 $86.86 12/29/14 Yes Yes 3 *0 *1 12/19/14 01039 $100.00 $86.86 01/26/15 Yes SecondNes 4 *0 01/02/15 01047 $100.00 $87.06 02/23/15 Yes Second/Yes 3 *0 01/16/15 01054 $100.00 $87.06 02/23/15 Yes SecondNes 3 *0 01/30/15 01061 $100.00 $87.06 02/23/15 Yes Second/Yes 3 *0 02/27/15 01072 $100.00 $87.06 03/30/15 No Minutes N/A Unk 04/10/15 01088 $100.00 $87.06 05/18/15 Yes Second/Yes 3 *0 05/08/15 01101 $100.00 $87.06 06/29/15 Yes Second/Yes 3 *0 05/22/15 01108 $100.00 $87.06 06/29/15 Yes Second[Yes 3 *0 07/03/15 01124 $100.00 $87.06 08/25/15 No Minutes NIA Unk 07/17/15 01131 $100.00 $87.06 08/25/15 No Minutes NIA Unk 08/28/15 01146 $100.00 $87.06 09/29/15 Yes Motion/Yes 3 *0" 09/11/15 01153 $100.00 $87.06 10/27/15 Yes MotionNes 3 *0 12/04/15 01180 $100.00 $87.06 12/29/15 Yes Motion/Yes 3 *0 12/31/15 01191 $100.00 $87.06 12/29/15 Yes Motion/Yes 3 *0 01/15/16 01198 $100.00 $86.86 01/26/16 Yes None - Chairman 3 *0 01/29/16 01205 $100.00 $86.86 01/26/16 Yes None- Chairman 3 *0 02/26/16 01216 $100.00 $86.86 02/23/16 Yes None - Chairman 3 *0 04/08/16 01236 $100.00 $86.86 04/26/16 Yes None - Chairman 4 *0 Total $5,500.00 $4,798.63 airman participated in vote; only three Members present a. Yusko was present for at least 37 of 41 Authority Board meetings at which votes to approve bill lists were taken which included payroll. b. Yusko voted to approve monthly bill lists which included payment to himself as an Authority Board Member on seventeen separate occasions. 1. Yusko did not participate in any of the votes to approve monthly bills while serving as the Chairman of the Authority Board. 41. In or about February 2012, Yusko directed the establishment of a "Hardship Fund" at the Authority into which his Authority Board Member wages were to be deposited for the purpose of assisting customers having difficulty in paying their water and sewage bills. a. The hardship fund was accounted for in the Authority budget under Line Item 9552. 42. From the period of at least February 2012 through November 2012, Yusko returned his Authority Board Member wages to the Authority for deposit into the Hardship Fund as shown below: Date Deposit/Check Credit Debit Balance Number 02/29/12 a osit $300.00 - $300.00 Yusko, 15 -023 ag_el 4 Date Deposit/Check Credit Debit Balance 04/02/12 Number e}i� posit $100.00 - $400.00 04/24/12 Deposit $100.00 - $500.00 06/01/12 Deposit $100.00 - $600.00 06/27/12 Deposit $100.00 - $700.00 08/02/12 Deposit $100.00 - $800.00 08/30/12 Deposit $100.00 - $900.00 09/28/12 Deposit $100.00 - $1,000.00 10/31/12 Deposit $100.00 - $1,100.00 11/29/12 Deposit $100.00 - $1,200.00 No debits were made from the Hardship Fund during the time frame of February 2012 through November 2012. 43. Concerns relating to the Hardship Fund were raised including, in part, how the funds were to be distributed, selection of whom the funds were to be distributed tolfor, etc. As a result of the concerns raised, the Authority issued Yusko General Fund Check Number 5917, dated December 20, 2012, in the amount of $1,200.00 as reimbursement for his Authority Board Member wages previously deposited into the fund. 1. The $1,200.00 represented all deposits made into the account. 2. Yusko was the only individual who made any deposits into the account. The Hardship Fund was closed after the reimbursement check was issued to Yusko. C. Yusko continued to receive his monthly Authority wages after the closing of the Hardship Fund. 44. [The Stipulation of Findings states that] Yusko, in his position as a Township Supervisor, realized a financial gain of approximately $5,500.00 (gross) when he participated in actions and decisions of the Township Board of Supervisors to re- appoint all existing Members of the Authority, including him, to their existing terms and to set the salary for those Board Members re- appointed at a time when Yusko was serving as a Member of the Authority Board. Ill. DISCUSSION: As a Member of the Board of Supervisors of Washington Township ( "Township "), Fayette County, since at least January 3 2006, and as a Member of the Board of Directors ( "Board ") of the Municipal Authority of the Township of Washington, Fayette County "Authority ") from January 7, 2012, to the present, Respondent Charles E. Yusko, hereinafter also referred to as `Respondent," "Respondent Yusko," and "Yusko," 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 seg. The allegations are that Yusko violated Section 1103(a) of the Ethics Act: 1) when he utilized the authority of his office for the private pecuniary benefit of himself and/or members of his immediate family, when he authorized and /or otherwise directed that he not be required to secure an additional sewer top -in or be assessed an additional Equivalent Dwelling Unit ( "EDU ") fee for a separate living space at his residence, and/or residential structures which Yusko owns, thereby realizing private pecuniary benefit; and (2) when, as a Member of the Township Board of Supervisors, he participated in discussions and actions of the Board of Supervisors to reappoint Members of the Authority to their current terms, including himself, with an increase in meeting pay. Yusko, 15 -023 -f age 15 Pursuant to Section 1103(a) of the Ethics Act, a public officiallpublic 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. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest," 65 Pa.C.S. 5 1102, a public official/public employee is prohibited from using the authority of public office /employment or confidential information received by holding such a public position for the private ecuniary 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. In each instance of a conflict of interest, the public official/public employee would be required to abstain from participation. The abstention requirement would extend to any use of authority of office including, but not limited to, discussing, conferring with others, and lobbying for a particular result. Juliante, Order 809. Per the Pennsylvania Supreme Court's decision in Kistler v. State Ethics Commission, 610 Pa. 516, 22 A.3d 223 (2011), in order to violate Section 1103(a) of the Ethics Act, a public official/public employee: ... must act in such a way as to put his office /public position] to the purpose of obtaining for himself a private pecuniary benefit. Such directed action implies awareness on the part of the [public official/public employee] of the potential pecuniary benefit as well as the motivation to obtain that benefit for himself. Kistler, supra, 610 Pa. at 523, 22 A.3d at 227. To violate Section 1103(a) of the Ethics Act, a pu co iciallpublic employee "must be consciously aware of a private pecuniary benefit for himself, his family, or his business, and then must take action in the form of one or Yusko, 15 -023 X16 more specific steps to attain that benefit." Id., 610 Pa. at 528, 22 A.3d at 231. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings.. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. The Township is a second class township governed by a three - Member Board of Supervisors. Respondent Yusko has served as a Member of the Township Board of Supervisors since at least January 3, 2006. See, Fact Findings 2 and 22. Pursuant to the Municipality Authorities Act, the Township Board of Supervisors is responsible for appointing the Members of the Authority Board and setting Authority Board Member compensation. Authority Board Members are not permitted to receive an increase or decrease in compensation during their existing terms. Any increase or decrease in salary becomes effective only upon the beginning of a new term after the increase /decrease is enacted. Authority Board Members serve five -year terms. Yusko has served as a Member of the Authority Board from January 7, 2012, to the present. Yusko has served as the Chairman of the Authority Board since January 9, 2016. Yusko previouslyy served as the Chairman of the Authority Board from January 7, 2012, until December 17, 2013. Yusko has been employed by the Authority since November 17, 1986. Yusko owns two properties that fall within the Authority's service area. One of these properties is where Yusko resides (hereinafter also referred to as the `Residential Property "). Although the Residential Property includes a second floor apartment, from July 11, 2012, through March 2016, Yusko consistently issued payments to the Authority for only one EDU at the Residential Property. In or about March 2016, the Authority Office Manager notified Yusko that he (Yusko) would be responsible for a double service beginning with the subsequent month's bill. Yusko is currently disputing the Authority's contention that the Residential Property should be subject to two EDUs. Yusko has requested a local agency hearing before the Authority Board, which request is pending. Each month, the Authority Board holds one regularly scheduled legislative meeting, which is immediately preceded by a workshop meeting. The Authority holds special meetings as necessary. In 2011 , prior to Yusko's appointment to the Authority Board, Authority Board Members were eligible to receive $75.00 per month for their service on the Authority Board. At a November 9, 2011, meeting of the Township Board of Supervisors- -prior to Yusko's service on the Authority Board- -the Board of Supervisors appointed two individuals to the Authority Board to fulfill unexpired terms. Yusko voted in favor of the appointments. Immediately after the appointments, Yusko motioned and voted in favor of increasing the current rate of pay for the Authority Board Members to $100.00 per meeting. The motion passed by a unanimous vote of 3 -0. At the December 14, 2011, regular meeting, the Township Supervisors re- established the meeting pay for new Authority Board Members. The minutes of the December 14, 2011, meeting documented compensation for the existing Board at $75.00 per meeting at that time. The minutes further noted an increase in compensation to $100.00 per meeting when and if a Member was reappointed. Yusko was present at and participated in the vote setting the compensation for Authority Board Members. At the January 3, 2012, re-organization meeting of the Township Board of Supervisors, the two Supervisors other than Yusko voted to appoint Yusko to a five -year term on the Authority Board. The motion carried 2 -0 -1 with Yusko abstaining from the vote. No specific salary was set at the re- organization meeting for Yusko in his position as an Authority Board Member. However, at the January 3, 2012, regular meeting of the Yusko, 15 -023 l e17 Township Board of Supervisors --held immediately following the re- organization meeting- - the two Supervisors other than Yusko voted to set the meeting pay for Yusko at $1 00.00 per meeting. The motion carried 2 -0 -1 with Yusko abstaining from the vote. Yusko subsequently expressed his intention to donate his Authority Board Member wages to establish a hardship fund for those customers requiring assistance with their water/sewage bills. The $100.00 per meeting wages set for Yusko differed from the wage amounts established by the Township Supervisors at the December 14, 2011, regular Township meeting for new Board Members, specifically, $75.00 per meeting with an increase to $100.00 per meeting when and if a member was "re- appointed." Yusko had not previously served on the Authority Board. Yusko was newly appointed to the Authority Board in January 2012. As a result of the discrepancy in compensation set for Yusko and the remaining Authority Board Members, the Township Supervisors subsequently adjusted Authority Board Member meeting ay at the February 8, 2012, regular Township meeting. Yusko motioned, seconded by Supervisor Dull, to "...re-appoint the current Municipal Authority Board Members to their current terms with an adjusted meeting pay of $100.00 per meeting." The motion passed 3 -0 with Yusko voting in favor of the motion. Yusko again stated his intention to establish a hardship fund for those customers requiring assistance with their water/sewage bills. The parties have stipulated that Yusko participated in the vote to re- appoint the entire Authority Board to their current terms while Yusko was an active Authority Board Member. Yusko took this action after he received oral advice from counsel that it was proper. At the February 28, 2012, regular Authority meeting, the Authority Board acknowledged the increase in Board Member salaries as approved by the Township Supervisors. Authority Board Members other than Yusko voted to increase Board Member meeting pay by $25.00 to $100.00 for regular Board Members and $135.00 for the Board Treasurer & Secretary positions. The motion passed unanimously. Yusko did not vote on the motion. Yusko held the office of Chairman of the Authority Board at that time. From February 2012 through March 2016, Yusko was issued payments from the Authority for his service as an Authority Board Member totaling approximately $5,500.00 as detailed in the chart at Fact Finding 40. Yusko voted to approve monthly bill lists which included payment to himself as an Authority Board Member on seventeen separate occasions. Yusko did not participate in any of the votes to approve monthly bills while serving as Chairman of the Authority Board. In or about February 2012, Yusko directed the establishment of a "Hardship Fund" at the Authority into which his Authority Board Member wages were to be deposited for the purpose of assisting customers having difficulty in paying their water and sewage bills. From the period of at least February 2012 through November 2012, Yusko returned his Authority Board Member wages totaling $1,200.00 to the Authority for deposit into the Hardship Fund, as detailed at Fact Finding 42. No debits were made from the Hardship Fund during the time frame of February 2012 through November 2012. Concerns relating to the Hardship Fund were raised including, in part, how the funds were to be distributed and selection of recipients of the funds. As a result of the concerns raised, the Authority issued Yusko General Fund Check Number 5917, dated December 20, 2012, in the amount of $1,200.00 as reimbursement for his Authority Board Member wages previously deposited into the fund. The $1,200.00 represented all deposits made into the account. Yusko was the only individual who made any deposits into the account. The Hardship Fund was closed after the reimbursement check was issued to Yusko. Yusko, 15 -023 Fa e98 Yusko continued to receive his monthly Authority wages after the closing of the Hardship Fund. 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 as to the above referenced allegations, in that on or about October 19, 2016, the State Ethics Commission had determined the following in relation to a Consent Agreement and Stipulation of Findings submitted by the parties: Inability to discern the elements of a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a). Per the Stipulated Findings, Respondent's actions as a Township Supervisor did not extend his term or increase the amount of his compensation as an Authority Board Member as previously set by the other Township Supervisors without his participation. The parties submit that the facts as contained within the previously submitted Stipulation of Findings constitute those facts that, should this matter proceed to trial, would be established through clear and convincing evidence. In as much as there are no material disputes between the parties as to any material fact, this matter is ripe [for] determination by the Commission. Consent Agreement, at 2. In considering the Consent Agreement, we hold that no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Yusko's efforts to avoid the requirement to secure an additional sewer tap -in and to avoid the assessment of an additional EDU fee because Yusko did not use the authority of his office as to same. All of Yusko's actions as to such matters were as a property owner, not as a public official. We shall now address the second allegation, involving Yusko's February 8, 2012, motion and vote to "...re- appoint the current Municipal Authority Board Members to their current terms with an adjusted meeting pay of $100.00 per meeting." On its face, Yusko's February 8, 2012, motion and vote to ".. re- appoint the current Municipal Authority Board Members to their current terms with an adjusted meeting pay of $100.00 per meeting" did not extend Yusko's term of office or authorize any increase in compensation for Yusko over what had already been authorized by the other two Township Yusko, 15 -023 X19 Supervisors without Yusko's participation. There was literally zero change in Yusko's compensation as an Authority Board Member as a result of the February 8, 2012, motion and vote. Accordingly, we hold that Yusko did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that he participated in discussions and actions of the Township Board of Supervisors to re- appoint Members of the Authority to their current terms, including himself, with an increase in meeting pay, in that Yusko's actions did not extend his term as a Board Member of the Authority or increase the amount of his compensation as an Authority Board Member that had previously been set by the other two Township Supervisors without Yusko's participation. IV. CONCLUSIONS OF LAW: 1. As a Member of the Board of Supervisors of Washington Township ( "Township "), Fayette County, since at least January 3, 2006, and as a Member of the Board of Directors ( "Board" ) of the Municipal Authority of the Township of Washington, Fayette County ("Authority") from January 7, 2012, to the present, Respondent Charles E. Yusko ("Yusko') as been a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et sec. 2. Yusko did not violate Section 1103(x) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his efforts to avoid the requirement to secure an additional sewer tap -in and to avoid the assessment of an additional Equivalent Dwelling Unit fee because Yusko did not use the authority of his office as to same. Yusko did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that he participated in discussions and actions of the Township Board of Supervisors to re- appoint Members of the Authority to their current terms, including himself, with an increase in meeting pay, in that Yusko's actions did not extend his term as a Board Member of the Authority or increase the amount of his compensation as an Authority Board Member that had previously been set by the other two Township Supervisors without Yusko's participation. In Re: Charles E. Yusko, Respondent Fife Docket: 15 -023 Date Decided: 1216116 Date Mailed: 12/7116 ORDER NO. 1 ■ O5 1. Charles E. Yusko ( "Yusko "), a public official in his capacit as a Member of the Board of Supervisors of Washington Township CTownship "�, Fayette County, and as a Member of the Board of Directors ( "Board') of the Municipal Authorit of the Township of Washington, Fayette County "Authority", did not violate ection 11 03 a of the Public official and Employee Ethics Act (' Ethics Act "), 65 Pa.C.S. § 1103(a), in relation to his efforts to avoid the requirement to secure an additional sewer tap -in and to avoid the assessment of an additional Equivalent Dwelling Unit fee because Yusko did not use the authority of his office as to same. 2. Yusko did not violate Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), as to the allegation that he participated in discussions and actions of the Township Board of Supervisors to re- appoint Members of the Authority to their current terms, including himself, with an increase in meeting pay, in that Yusko's actions did not extend his term as a Board Member of the Authority or increase the amount of his compensation as an Authority Board Member that had previously been set by the other two Township Supervisors without Yusko's participation. BY THE COMMISSION, .. W.1wens F I -