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HomeMy WebLinkAbout1707 Ginnick� r s STATE ETHICS COMMISSION 309 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Thomas L. Ginnick, : File Docket: Respondent X -ref: Date Decided: Date Mailed: 15 -041 Order No. 1707 1124117 1127117 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick 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 seg., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was filed 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. ALLEGATIONS: That Thomas L. Ginnick, a public official /public employee in his capacity as a Supervisor and Secretary/Treasurer for Southampton Township, Cumberland Countyy, violated Sections 1 103 a) and 1104(a) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a) and 1104(a), when he utilized the authority of his public position for a private pecuniary benefit when he participated in discussions and actions of the Township Board of Supervisors to appoint and /or modify the working hours of his wife and immediate family member, in her position as a Township employee, such that her employment status was modified from part -time to full -time employee; when, in his capacity as Secretary/Treasurer, he issued and approved payroll for himself and his wife, as Township employees, and served as a signatory on Township issued payroll checks; and when, in his capacity as Supervisor, he utilized the authority of his office to reappoint himself to the Franklin Cumberland Joint Municipal Authority, a compensated position; and when as Supervisor, he failed to file a 2013 calendar year Statement of Financial Interests with the Township. Il. FINDINGS: Thomas Ginnick has served as a Member of the Southampton Township, Cumberland County Board of Supervisors since approximately January 5, 2004. Southampton Township, Cumberland County is a Second Class Township governed by a three (3) Member Board of Supervisors. Ginnick was employed as the Township Secretary/Treasurer from approximately 2004 through 2015 and as Treasurer since 2015. P.O. BOX 1 14701, HARRISBURG, PA 17108 -1470 ° 717 - 703 -1610 ® 1- 800 - 932 -0936 • www.ethics.state.pa.us Ginnick, 15 -041 Page 2 Ginnick was annually appointed Secretary/Treasurer by the Board of Supervisors between 2004 and 2014. 2. In 2015, Ginnick was appointed Township Treasurer and Jerry Swope was appointed Township Secretary. 2, Since September 2010, the Board of Supervisors has consisted of Thomas Ginnick, George Bauserman and Charles O'Donnell. a. Members of the Board of Supervisors receive $2,500.00 annually for the performance of the duties of supervisors. 3. Compensation for Southampton Township employees is annually set by the Board of Supervisors each January during the reorganizational meetings. a. Compensation for working supervisors is annually approved by the Township's Board of Auditors. b. Since at least 2010, Supervisors Thomas Ginnick and George Bauserman both have been employed by the Township on a full -time basis. Ginnick has been employed as Secretary/Treasurer and Treasurer. 2. Bauserman has been employed as the Township Roadmaster. 4. Southampton Township financial records reflect that Thomas Ginnick received the following hourly rates of pay, approved by the Township Board of Auditors, between 2011 and 2015, in his capacity as Secretary/Treasurer and Treasurer: a. 2011: $20.21 2012: $20.92 2013: $21.55 2014: $22.87 2015: $23.33 b. This is the same hourly rate of pay set for George Bauserman, the Township's other full -time working supervisor. THE FOLLOWING FINDINGS RELATE TO GINNICK'S PARTICIPATION IN THE PROCESS THAT RESULTED IN HIS WIFE, KATHLEEN GINNICK, BEING HIRED TO A FULL -TIME POSITION WITH THE TOWNSHIP, 5. Between December 2007 and May 2008, the Southampton Township Board of Supervisors held discussions and took official action implementing a Township -wide solid waste collection program. a. The Township would be responsible for customer billings and collect payments while contracting with a single hauler who would be responsible for Township -wide garbage collections. b. Actions taken by the Board of Supervisors during this timeframe included soliciting bids for a hauler, establishing fees and hiring a part-time billing clerk to handle the administrative portion of the contract. C. Thomas Ginnick routinely participated in these discussions and official actions as a Member of the Township's Board of Supervisors. Ginnick, 15 -041 a)-ge 3- 6. During the Board of Supervisors' March 10, 2008, meeting, Ginnick participated in Board actions to award the trash collection and hauling contract to IWS, the low bidder on the contract. a. During that March 10, 2008, meeting, Ginnick participated in Board action to advertise for the position of a part-time billing clerk to issue bills and process payments. 7. On March 19, 2008, a legal ad soliciting applications for the billing clerk position appeared in the Carlisle Sentinel. The legal ad included the following position description: "Southampton Township — Cumberland is seeking applications for the pposition of a part -time billing clerk. Responsibilities include, but are not limlted to creatin,9 and processing bills, all collections, addressing delinquent accounts and filing charges for delinquent accounts. Clerk also will be responsible for cash deposits, reconciliations and balancing of all accounts. Accounting and billing experience is desirable. Clerk may be required to be bonded. Duties also include all customer contacts and handling customer disputes. Both daytime and evening hours will be required." 8. Between April 28, 2008, and May 12, 2008, Supervisors Ginnick, Bauserman and Gruver reviewed applications and conducted interviews with approximately four (4) of the six (6) applicants for the billing clerk position. a. The need to conduct interviews was discussed during the April 28, 2008, meeting of the Board of Supervisors. b. All three (3) Members of the Board of Supervisors participated in the interview process. C. Township records are incomplete as to the date(s) of interviews. 9. One of the applicants interviewed for part-time employment was Kathleen Ginnick. a. Kathleen Ginnick is the wife of Thomas Ginnick. b. Thomas Ginnick participated in the interview of Kathleen Ginnick and the other applicants. 10. During the May 12, 2008, meeting of the Southampton Township Board of Supervisors, Kathleen Ginnick was hired as a part-time billing clerk for garbage collections by a 2-0 vote with Respondent Thomas Ginnick on record as abstaining. 11. Full -time Southampton Township employees receive benefits including health insurance coverage, paid time off, pension plan participation and ten (10) paid holidays. a. Part -time employees are not eligible to receive health care coverage or pension plan participation, and they receive only six (6) of the ten (10) paid holidays that full -time employees receive. b. Compensation for full and part--time employees is determined by the Township's Board of Supervisors. 12. Kathleen Ginnick's responsibilities as the part-time billing clerk included customer billings and payments from Township residents for trash collection. Ginnick, 15 -041 Page 4 a. Township collection records indicate the first billing date as July 1, 2008. 13. Kathleen Ginnick's compensation as the Township's part -time billing clerk was processed as part of the Township's regular employee payroll. a. Kathleen Ginnick's compensation in 2008 was $11.00 per hour as set by the Board of Supervisors. b. There was no formal vote of the Board of Supervisors approving the rate of compensation. 14. Between January 1, 2009, and October 1, 2012, seven (7) additional municipalities joined Southampton Township in the same contractual agreement forthe collection of solid waste. a. The agreements between Southampton Township and the other municipalities included the same Township -wide collector, with billings and collections to be processed by the Southampton Township billing clerk. 15. The additional seven (7) municipalities joining the contract in stages between January 1, 2009, and October 1, 2012, are as follows: South Newton Township 01/01/09 Shippensburg Township 06/01/09 Penn Township 01/01/10 Newville Borough 07/01/11 Cooke TownshLi 01/01/12 North Newton Township 01/01/12 West Penn Township 10/01/12 16. The contracts for the trash collections established a flat rate per house, on a quarterly basis. a. The flat rate included the curbside collection of solid waste from residents in all of the covered municipalities. b. Residents of Southampton Township, Cumberland County paid an additional fee of $2.00 per quarter for the billing and payment collection process. This amount is retained by Southampton Township, with the Township forwarding to the hauler the quarterly collection fee owed. C, The other seven (7 ) municipalities participating in the arrangement as to quarterly billings included a $3.00 fee for Southampton Township to process the billings and collections plus an additional fee of $2.00 per quarter, per billing, which is returned to each municipality as a revenue generator. 17. Kathleen Ginnick has been the sole Southampton Township employee responsible for the billing, collection and payment process, including distribution of payments to the hauler and other municipalities. 18. With the increase in the number of municipalities participating in the agreement between 2009 and 2012, the volume of work required to process the billings and payments also increased. 19. In or about September 2011, Thomas Ginnick discussed with Southampton Supervisors Charles O'Donnell and Charles Bauserman making Kathleen Ginnick a full-time Township employee due to the increased workload. Ginnick, 15 -041 p gem a. At the time, Thomas Ginnick was employed as a full -time Secretary - Treasurer and was aware of the increased workload for Kathleen Ginnick s position. b. Thomas Ginnick's request coincided with the additions of Cooke Township and North Newton Township to the program, effective January 1, 2012. 20, Supervisor O'Donnell informed Ginnick that he agreed with increasing Kathleen Ginnick's hours to full -time status but thought the Board needed to vote on the change at a public meeting. a. Ginnick disagreed and felt that it did not need Board approval, since there was only an increase in the number of hours worked. b. Supervisor George Bauserman does not specifically recall giving any authorization to increase Kathleen Ginnick to full -time status. Ginnick asserts he discussed the increase of Kathleen Ginnick's hours with Bauserman and that Bauserman was not opposed. 21. Both Supervisors O'Donnell and Bauserman agreed that the change from part -time to full -time was necessary based on the increased amount of work required of the position, due to increased municipal participation. 22. The Southampton Township Board of Supervisors did not take any formal actions changing the employment status of Kathleen Ginnick from part-time to full -time effective January 1, 2012, a. O'Donnell took no further action based on Ginnick's opinion that a vote was not needed. b. Ginnick, in an interview with an Ethics Commission investigator, believed increasing Kathleen Ginnick's hours to full -time would be discussed and voted on at the January 2012 Township reorganization meeting when salaries are set and appointments made. C. Ginnick did not attend the 2012 reorganization meeting due to back surgery. 23. While serving as Southampton Township Secretary and Treasurer, Thomas Ginnick's responsibilities have included the preparation of an annual Minimum Municipal Obligation ( "MMO ") report. a. The MMO document includes the name of each full -time employee participating in the pension plan and his/her anticipated salary for the upcoming year. 1. Part -time employees are not included as they are ineligible to participate in the pension plan. b. Each September Thomas Ginnick, in his official capacity as Township Treasurer, prepares an MMO for the Board to approve for the next calendar year. 24. The Southampton Township MMO prepared by Thomas Ginnick in September of 2011 for the 2012 calendar year included Kathleen Ginnick's name with the other full -time Township employees. Ginnick, 15 -041 aagge 6 a. The document was prepared by Thomas Ginnick as the Township Secretary[Treasurer and reflects a date of 1/1/2012 representing the date Kathleen Ginnick was to become a full -time employee and eligible to participate in the Township pension plan. b. Kathleen Ginnick's hourly wage for 2012 was projected at $12.49 per hour with estimated annual wages of $25,987.31 based on a 40 -hour workweek. 1. This amount represented an increase in her hourly rate of pay from her 2011 $12.13 per hour rate. C. Kathleen Ginnick has been included on annual Township MMOs approved by the Board of Supervisors each year since 2012. 25. Ginnick prepared the MMO for 2012 after discussions with Supervisors Bauserman and O'Donnell, and [the MMO] was unanimously approved by a vote of the Board of Supervisors on September 26, 2011. a. Ginnick participated in the unanimous vote. 26. Thomas Ginnick, in his official capacity as a Member of the Southampton Township Board of Supervisors, also participated in Board actions approving MMOs for calendar years 2013 through 2015. a. Each of these votes passed by a 3-0 margin. Votes occurred as follows: 2013 MMO: September 24, 2012 2014 MMO: September 13, 2013 2015 MMO: September 8, 2014 b. Ginnick did not make or second any motions to approve the annual MMOs. 27. From 2009 through 2015, Kathleen Ginnick received Board - approved raises consistent with those given by the Board to other Township employees. a. All Township employees typically receive a 3% increase each year approved by the Board. b. Kathleen Ginnick was paid less per hour than any of the other office personnel employed by the Township. C. Respondent Thomas Ginnick has abstained from Board actions taken on employees' raises annually since 2012. d. Kathleen Ginnick's hourly wages as set by the Board of Supervisors have been as follows: 2009: $11.33 2010: $11.67 2011: $12.13 2012: $12.49 2013: $13.36 2014: $14.01 2015: $14.71 28. Township financial records confirm that Kathleen Ginnick has received the following gross wages since becoming a full -time Township employee in 2012: Ginnick, 15 -041 age 7 a. 2012: $25,031.20 2013: $29,183.55 2014: $30,503.83 2015: $32,126.64 29. Thomas Ginnick has processed Kathleen Ginnick's weekly payroll in his capacity as Supervisor/Treasurer. a. Township payroll is processed on a weekly basis by Ginnick as the Township Treasurer. b. The Board of Supervisors does not vote to approve the weekly employee payroll. 30. As Treasurer, Thomas Ginnick regularly signed the front side of Township payroll checks issued to his wife, Kathleen Ginnick, since January 2011, the year prior to her full -time employment status with the Township. a. All Township checks are required to be signed by at least two Members of the Board of Supervisors. b. Between 2008 and 2016, checks were typically signed by Ginnick and Bauserman, as both were employed full -time by the Township and readily available. C. Since March 2016, the Board has implemented a policy that Ginnick does not sign checks issued to him or Kathleen Ginnick. 31. Between January 2011 and February 2016, Thomas Ginnick signed the front side of at least 251 checks issued to his wife Kathleen Ginnick, totaling approximately $100,869.70. a. Ginnick signed all but [three (3) checks issued to his wife]. 32. Kathleen Ginnick's change in employment status from part -time to full -time was questioned by former Supervisor James Gruver during the Board's May 26, 2015, and June 8, 2015, meetings. a. Gruver was a Member of the Township's Board of Supervisors in 2008 and participated in the hiring of Kathleen Ginnick as the part -time billing clerk for the garbage collections. Gruver was not a Member of the Board of Supervisors when Kathleen Ginnick was made a full -time employee. 33. Minutes from the Southampton Township Board of Supervisors meetings held on May 26, 2015, and June 8, 2015, include the following recorded discussions on Kathleen Ginnick becoming a full -time Township employee: a. May 26, 2015 "Jim asked when did Kathy get hired full time a commented that he could not find where in the minutes. Tom commented that she went full time when she was added to the MMO in September 2011 as full time. The need for that was after the number of Townships on the trash program increased. Discussion was held." Present: Ginnick, Bauserman, O'Donnell Ginnick, 15 -041 a> eT Kil 35. b. June 8, 2015 "Tom indicated that when Kathy was approved full time was when the MMO was approved. Jim asked Butch (O'Donnell) if when he signed the MMO if he was aware that by approving this he was aware that he was hiring Kathy full time. Butch commented that he assumed that when it was approved but also said he did not know when she became full time. Jim then asked George (Bauserman) the same 'question and he stated no." Present: Ginnick, Bauserman, O Donnell Kathleen Ginnick's projected pay had she continued as part -time billing clerk in comparison to full -time, is as follows: Full -Time 2012: $25,031.20 2013: $29,183.55 2014: $30,503.83 2015: $32,126.64 $116,845.22 Part -Time (50 %) $12,515.60 $14,591.77 $15,251.91 $16,063.32 5-9, —42-2-. At no time was Kathleen Ginnick paid more than she was owed for the hours that she worked. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT GINNICK PARTICIPATED IN THE PROCESS OF REAPPOINTING HIMSELF TO A COMPENSATED POSITION ON THE CUMBERLAND FRANKLIN JOINT MUNICIPAL AUTHORITY BOARD. 36. The Cumberland Franklin Joint Municipal Authority ("CFJMA") was formed in 1972 and provides sewer service in the Borough of Orrstown and Southampton Township in Franklin County, and Southampton Township and Shippensburg Township in Cumberland County. a. The CFJMA Board consists of seven (7) Members. b. [Southampton Township, Cumberland County, Southampton Township, Franklin County, and Shippensburg Township each appoint two (2) Members to the CFJMA Board,] and one (1) Member is appointed to represent Orrstown Borough. 37. Compensation for CFJMA Board Members is $25.00 per meeting attended, with one meeting held per month. a. The CFJMA Board Chairman receives additional compensation of $25.00 per month, also based on meeting attendance. 38. Since 2009, Members of the CFJMA Board have served 5 -year terms. a. Prior to 2009, CFJMA Board Members were appointed to 3 -year terms. 39. Ginnick was initially appointed by the Southampton Board of Supervisors to serve on the CFJMA Board effective December 31, 2004. a. Ginnick was reappointed to an additional three (3) year term effective December 2007. b. No action was taken by the Southampton Board of Supervisors to reappoint Ginnick to the CFJMA Board until November 24, 2014. Ginnick, 15 -041 p g 9- 1. Ginnick continued to serve on the CFJMA after his 2007 reappointment expired. 40. On November 24, 2014, Ginnick participated in the action taken by the Southampton Township, Cumberland County Board of Supervisors reappointing him to the CFJMA Board. a. This reappointment passed by a 3-0 vote of the Township's Board of Supervisors. 41. During interviews with a State Ethics Commission investigator, Supervisors George Bauserman and Charles O'Donnell advised that Ginnick would have been reappointed to the CFJMA even if Ginnick would have abstained from the reappointment vote. 42. During the January 8, 2015, meeting of the CFJMA Board of Directors, Ginnick was appointed as Chairman. a. Minutes from that meeting reflect Ginnick participated in the unanimous Board action appointing him to the position of CFJMA Board Chairman. b. This action resulted in an additional $25.00 payment to Ginnick per meeting attended. 43. Ginnick's maximum compensation for 2015 as a Member and Chairman of the CFJMA would be $600.00, if he attended every meeting. 44. Ginnick's participation in the Southampton Board of Supervisors' vote to reappoint him to the CFJMA Board resulted in payments totaling $275.00 in 2015. a. An additional $25.00 per month was received by Ginnick as Board Chairman during 2015. b. Ginnick was paid a total of $550.00 in 2015 as he did not attend the May 2005 [sic] meeting. 45. Ginnick's maximum annual payments as a Board Member of the CFJMA will be $300.00 annually during the remaining four (4) years of his term. a. As Chairman, Ginnick would receive maximum compensation of $300.00 each year he served as Chairman of the CFJMA. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT GINNICK FAILED TO FILE A REQUIRED STATEMENT OF FINANCIAL INTERESTS FORM BY MAY 1, 2014, FOR THE 2013 CALENDAR YEAR. 46. Statements of Financial Interests are required to be filed annually by elected and appointed public officials of the Commonwealth. a. The forms are required to be filed by no later than May V of each year that a public official holds public office. b. The Statement of Financial Interests requires filers to report financial information pertaining to the preceding calendar year. Ginnick, 15 -041 aI-0 47. Statement of Financial Interests forms have been annually mailed to Southampton Township since at least 2012 by the Administrative Division of the State Ethics Commission. a. n or around December 26, 2013, blank Statement of Financial Interests OOms bearing the designation "SEC -1, Rev. 01114" were mailed to all municipalities in the Commonwealth, including Southampton Township.] 1. The [Statement of Financial Interests forms bearing the designation "SEC -1, Rev. 01/14"] were to be utilized in reporting financial interests for calendar year 2013. 48. Thomas Ginnick, Southampton Township Supervisor and Secretary/Treasurer during 2014, was responsible for the distribution of Statement of Financial Interests forms to Southampton Township public officials and employees who are required to file Statements of Financial Interests. a. Ginnick provided blank Statement of Financial Interests forms to all Southampton Township officials, including himself, in or around January of each year. b. Ginnick, in his official capacity as Southampton Township Secretary /Treasurer, was the official records custodian for the Township during 2014. 49. On November 10, 2015, a Statement of Financial Interests Compliance Reviewwas conducted in Southampton Township, Cumberland County covering the 2012, 2013 and 2014 calendar year filings. a. At that time Ginnick, as custodian of the records, provided access to all Statement of Financial Interests forms on file with the Township for the 2012 and 2014 calendar years. b. No Statements of Financial Interests for any Township official for calendar year 2013 were located in Township records. 50. Statements of Financial Interests filed by Ginnick as a Member of the CFJMA Board include filings for calendar years 2011 through 2014. a. Ginnick's filing for the 2013 calendar year was dated March 13, 2014. b. This filing included his public positions of Township Supervisor and CFJMA Board Member. C. A copy of this Statement of Financial Interests is now on file with Southampton Township.... 51. Ginnick's Statement of Financial Interests filed with the CFJMA for the 2013 calendar year included the following information: a. Calendar year: 2013 Dated: 03/13/14 on form SEC -1 REV. 01/14 Position: CFJMA Director, Township Supervisor Creditors: None Direct/indirect income: Southampton Township, Sprint Office, Directorship or Employment in any Business: CFJMA, Director Financial interest in any business for profit: Frogin Rentals, 50% All Other Financial Interests: None Ginnick, 15 -041 a1-1 52. Ginnick used the authority of his public position as Southampton Township Supervisor, Secretary/Treasurer and/or Treasurer for the private pecuniary gain of a member of his immediate family, his wife, Kathleen Ginnick, by participating in discussions and decisions with other Members of the Board to change his wife's employment status from part-time to full -time, and when he signed checks issued to her, including the following: a. Ginnick voted to approve the Township's 2012 MMO including Kathleen Ginnick in the Township's pension plan for 2012. b. Ginnick signed the front side of approximately 251 Township payroll checks issued to Kathleen Ginnick since 2011. 53. Ginnick also realized a private pecuniary gain of $550.00 as a result of re- appointing himself to the CFJMA Board on November 24, 2014. 54. Ginnick cooperated with the Investigative Division's investigation in this matter and has implemented remedial measures with the Township to prevent the recurrence of violations of the Ethics Act. III. DISCUSSION: As a Supervisor for Southampton Township ("Township ), Cumberland County, since approximate) January 5, 2004, and as the Township Secretary/Treasurer from approximately 2004 through 2015 and Treasurer since 2015, Respondent Thomas L, Ginnick, hereinafter also referred to as Respondent, Respondent Ginnick, and Ginnick, has been a public official /public employee subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Respondent Ginnick violated Sections 1103(a) and 1104(a) of the Ethics Act: (1) when he participated in discussions and actions of the Township Board of Supervisors ( "Board of Supervisors" to appoint and/or modify the working hours of his wife and immediate family member, in er position as a Township employee, such that her employment status was modified from part-time to full -time employee; (2) when, in his capacity as Secretary/Treasurer, he issued and approved payroll for himself and his wife, as Township employees, and served as a signatory on Township issued payroll checks; (3) when, in his capacity as Supervisor, he utilized the authority of his office to reappoint himself to the Franklin Cumberland Joint Municipal Authority, a compensated position; and (4) when, as a Township Supervisor, he failed to file a 20'13 calendar year Statement of Financial Interests ( "SF ) with the Township. 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 Ginnick, 15 -041 p e 2 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 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. Section 1104(a) of the Ethics Act provides that each public official /public employee must file an SFI for the preceding calendar year, each year that he holds the position and the year after he leaves it. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. The Board of Supervisors consists of three Members. Respondent has served as a Township Supervisor since approximately January 5, 2004. Since September 2010, the Board of Supervisors has consisted of Respondent, George Bauserman ( "Bauserman "), and Charles O'Donnell ("O'Donnell"). Respondent was employed as the Township Secretary/Treasurer from approximately 2004 through 2015. Respondent has been employed as the Township Treasurer since 2015. Respondent has been employed in such position(s) on a full -time basis since at least 2010. Compensation for Township employees other than working Supervisors is set by the Board of Supervisors each January during the reorganizational meetings. Between December 2007 and May 2008, the Board of Supervisors implemented a Township -wide solid waste collection program (hereinafter also referred to as "the Solid Waste Collection Program "). On May 12, 2008, the Board of Supervisors hired Respondent's wife, Kathleen Ginnick, as a part -time billing clerk to handle certain administrative functions under the Solid Waste Collection Program. The Township's hiring of Kathleen Ginnick occurred prior to the time period under review in this matter. See, 65 Pa.C.S. § 1108(m). Kathleen Ginnick has been the only, Township employee responsible for the billing, collection, and payment process under the Solid Waste Collection Program. Between January 1, 2009, and October 1, 2012, seven additional municipalities entered into agreements with the Township to participate in the Solid Waste Collection Program. The agreements between the Township and the other municipalities provided for the billings and collections to be processed by the Township's billing clerk. With the increase in the number of municipalities partici .pating in the SolidpWaste Collection Program, the volume of work required to process the billings and payments also increased. Ginnick, 15 -041 age geT3 In or about September 2011, Respondent discussed with fellow Supervisors Bauserman and O'Donnell making Kathleen Ginnick a full -time Township employee due to the increased workload. O'Donnell informed Respondent that he agreed with increasing Kathleen Ginnick's hours to full -time status but thought the Board needed to vote on the change at a public meeting. Respondent disagreed and felt that it did not require Board approval, since there was only an increase in the number of hours worked. Respondent asserts that he discussed the increase of Kathleen Ginnick's hours with Bauserman and that Bauserman was not opposed. Bauserman does not specifically recall giving any authorization to increase Kathleen Ginnick to full -time status (Fact Finding 20 b). Nevertheless, the parties have stipulated that both O'Donnell and Bauserman agreed that the change from part -time to full -time was necessary based on the increased amount of work required of the position (Fact Finding 21). In September 2011 Respondent, in his official capacity as Township Treasurer, prepared the Township's annual Minimum Municipal Obligation ( "MMO ") report for the 2012 calendar year for approval by the Board of Supervisors. Respondent included Kathleen Ginnick's name with the names of full -time Township employees, together with the date of 11112012, representing the date Kathleen Ginnick was to become a full -time Township employee and eligible to participate in the Township pension plan. This MMO report as prepared by Respondent projected Kathleen Ginnick's wages based upon a 40- hour work week. On September 26, 2011, Respondent participated in the unanimous vote of the Board of Supervisors to approve the MMO /MMO report for the 2012 calendar year. Kathleen Ginnick became a full -time Township employee in 2012 without the Board of Supervisors taking any formal action to specifically change her employment status from part -time to full -time effective January 1, 2012. Over the years, Kathleen Ginnick received Board - approved raises consistent with those given by the Board to other Township employees. Since 2012 Respondent has abstained from Board actions taken on employee raises. As a full -time Township employee, Kathleen Ginnick received gross wages totaling $116,845.22 from 2012 through 2015. This was approximately twice as much as the projected pay ($58,422.60) Kathleen Ginnick would have received if she had continued as a part-time billing clerk. Additionally, full -time Township employees receive benefits including health insurance coverage, paid time off, pension plan participation and ten paid holidays. Part-time employees are not eligible to receive health care coverage or pension plan participation, and they receive only six of the ten paid holidays that full -time employees receive. In his capacity as Township Supervisor/Treasurer, Respondent has processed Kathleen Ginnick's weekly payroll. The Board of Supervisors does not vote to approve the weekly employee payroll. All Township checks are required to be signed by at least two Members of the Board of Supervisors. Between January 2011 and February 2016, Respondent signed the front side of approximately 251 Township payroll checks issued to his wife, Kathleen Ginnick, which payroll checks totaled approximately $100,869.70. Respondent signed all but three checks issued to his wife. Since March 2016, the Board of Supervisors has implemented a policy that Respondent does not sign checks issued to him or Kathleen Ginnick. The parties have stipulated that Respondent used the authority of his public position as a Township Supervisor, the Township Secretary/Treasurer, and/or the Township Treasurer for the private pecuniary gain of Kathleen Ginnick, Respondent's wife and a member of his immediate family, when he participated in discussions and decisions with other Members of the Board of Supervisors to change his wife's employment status from part-time to full -time, and when he signed checks issued to her, including the following. (1) Ginnick, 15 -041 aF —geT4 Respondent voted to approve the Township's 2012 MMO including Kathleen Ginnick in the Township's pension plan for 2012; and (2) Respondent signed the front side of approximately 251 Township payroll checks issued to Kathleen Ginnick since 2011. The Cumberland Franklin Joint Municipal Authority ( "CFJMA" ) provides sewer service in various municipalities including the Township. The CFJMA Board of Directors ( "CFJMA Board ") consists of seven Members. Since 2009, Members of the CFJMA Board have served 5 -year terms. Compensation for CFJMA Board Members is $25.00 per meeting attended, with one meeting held per month. The CFJMA Board Chairman receives additional compensation of $25.00 per month, also based on meeting attendance. On November 24, 2014, Respondent participated in a 3 -0 vote of the Board of Supervisors reappointing him to the CFJMA Board. During the January 8, 2015, meeting of the CFJMA Board, Respondent was appointed as Chairman. Minutes from that meeting reflect Respondent participated in the unanimous CFJMA Board action appointing him to the position of CFJMA Board Chairman. This action resulted in an additional $25.00 payment to Respondent per meeting attended. As a Member and Chairman of the CFJMA Board, Respondent was paid a total of $550.00 in 2015. Of that amount, $275.00 was for Respondent's service as a CFJMA Board Member and $275.00 was for Respondent's service as Chairman of the CFJMA Board. The parties have stipulated that Respondent has realized a private pecuniary gain of $550.00 as a result of re- appointing himself to the CFJMA Board on November 24, 2014. See, Fact Finding 53. For the other four years of his term, Respondent will receive a maximum of $300.00 annually for service as a Member of the CFJMA Board plus a maximum of an additional $300.00 annually for each year he serves as Chairman of the CFJMA Board. As for Respondent's SFIs, on November 10, 2015, an SFI Compliance Review was conducted in the Township. No SFIs for calendar year 2013 were located in Township records for any Township official. However, the records of the CFJMA Board include an SFI for Respondent for the 2013 calendar year, which is dated March 13, 2014, and lists both of Respondent's positions as a Township Supervisor and CFJMA Board Member. A copy of that SFI is now on file with the Township. 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: The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Ginnick prepared and voted to approve the Southampton Township Minimum Municipal Obligation (' MMO "} reports for calendar years 2011 which included his wife, Kathy Ginnick, as a full -time employee when she had previously been a part -time employee; and when Ginnick signed payroll checks issued to his wife between January 2011 and February 2016. Ginnick, 15 -041 a�geT5 That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Ginnick participated in the vote of the Southampton Township Board of Supervisors to reappoint him to the Cumberland Franklin Joint Municipal Authority ( "CFJMA ") in November of 2014. C. That no violation of Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. 1104(a , occurred because Ginnick timely file his 201}3 Statement of Financial Interests with the CFJMA Board, [which form] contained his position as Southampton Township Supervisor. Ginnick agrees to make payment in the total amount of $2,000.00 in settlement of this matter. a. Ginnick agrees to make payment in the amount of $1,500.00 in settlement of this matter payable to Southampton Township and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. b. Ginnick agrees to make a payment of $500.00, representing a portion of the costs incurred by the Commission in the investigation and enforcement of this matter, which shall be made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Ginnick agrees to not accept any reimbursement, compensation or other payment from Southampton Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 6. The Investigation 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 authonty to take action in this matter. Such, however, does not prohibit the Commission from initiating apppropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 1 -2. It appears that the Investigative Division in the exercise of its prosecutorial discretion has elected to non pros the remaining portion(s) of the allegations. In considering the Consent Agreement, we agree with the parties that a violation of Section 1103(a) of the Ethics Act occurred when, in September 2011, Respondent Ginnick prepared and voted to approve the Township MMO report for calendar year 2012 which included his wife, Kathleen Ginnick, as a full -time employee when she had previously been Ginnick, 15 -041 age T6 a part -time employee, and when he signed payroll checks issued to his wife between January 2011 and February 2016. In or about September 2011, Respondent used the authority of office when he discussed with fellow Supervisors Bauserman and O'Donnell making Kathleen Ginnick a full -time Township employee due to increased workload. Respondent further used the authority of office in September 2011 when he prepared the Township MMO report for the 2012 calendar year which: (1) included Kathleen Ginnick's name with the names of the full -time Township employees; (2) represented the date of 1/1/2012 as the date Kathleen Ginnick was to become a full -time Township employee and eligible to participate in the Township pension plan; and (3) projected annual wages for Kathleen Ginnick based upon a 40 -hour work week. The aforesaid MMOIMMO report was unanimously approved by a vote of the Board of Supervisors on September 26, 2011, with Respondent participating in the unanimous vote. This vote was as close as the Board of Supervisors came to a formal approval for Kathleen Ginnick to become a full -time Township employee effective January 1, 2012. The resulting private pecuniary benefit to Kathleen Ginnick consisted of the change in her status from a part-time Township employee to a full -time Township employee earning approximately twice as much pay plus various benefits that she had not been eligible to receive as a part -time Township employyee. From 2012 through 2015, as a full - time billing clerk for the Township, Kathleen Ginnick received gross wages totaling $116,845.22 instead of the projected pay of $58,422.60 she would have been able to receive as a part-time billing clerk. Additionally, as a full -time Township employee, Kathleen Ginnick was eligible to receive benefits including health insurance coverage, paid time off, pension plan participation and ten paid holidays. As a part -time employee, Kathleen Ginnick was not eligible to receive health care coverage or pension plan participation, and she would have received only six of the ten paid holidays that full -time employees received. As for Kathleen Ginnick's payroll checks, the Board of Supervisors does not vote to approve the weekly employee payroll. Respondent used the authority of office as Township Supervisor/Treasurer to process those checks and to sign them as an authorized signatory for the Township. All Township checks are required to be signed by at least two Members of the Board of Supervisors. Between January 2011 and February 2016, Respondent signed the front side of approximately 251 Township payroll checks issued to his wife, Kathleen Ginnick, which payroll checks totaled approximately $100,869.70. The parties have stipulated that Respondent used the authority of his public position as a Township Supervisor, the Township Secretary/Treasurer, and/or the Township Treasurer for the private pecuniary gain of Kathleen Ginnick, Respondent's wife and a member of his immediate family, when he participated in discussions and decisions with other Members of the Board of Supervisors to change his wife's employment status from part-time to full -time, and when he signed checks issued to her, including the following: (1) Respondent voted to approve the Township's 2012 MMO including Kathleen Ginnick in t Township's pension plan for 2012; and (2) Respondent signed the front side of approximately 251 Township payroll checks issued to Kathleen Ginnick since 2011. With each element of a violation of Section 1103(a ) established, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. 5 1103(a), occurred when, in September 2011, Ginnick prepared and voted to approve the Township MMO report for calendar year 2012 which included his wife, Kathleen Ginnick, as a full -time Township employee when she had previously been a part -time Township employee; and when Ginnick signed Township payroll checks issued to his wife between January 2011 and r_1_._. _ -.- . WA n We accept the parties' recommendation for a finding that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Ginnick participated in the Ginnick, 15 -041 a7 vote of the Township Board of Supervisors to reappoint him to the CFJMA in November of 2014. On November 24, 2014, Respondent used the authority of office when he participated in a 3 -0 vote of the Board of Supervisors reappointing him to the CFJMA Board. This action resulted in Respondent receiving, as a CFJMA Board Member, $25.00 Rmeeting attended. Additionally, during the January 8, 2015, meeting of the CFJMA Board, Respondent participated in the unanimous CFJMA Board action appointing him as Chairman of the CFJMA Board. The latter action resulted in an additional $25.00 payment to Respondent per meeting attended. Although the allegations do not encompass actions taken by Respondent as a Member of the CFJMA Board, the parties have agreed to consider the pecuniary benefit Respondent received both as a CFJMA Board Member and as Chairman of the CFJMA Board in calculating the private pecuniary benefit Respondent received as to the recommended violation of Section 1103 (a). As a Member and Chairman of the CFJMA Board, Respondent was paid a total of $550.00 in 2015. Of that amount, $275.00 was for Respondent's service as a CFJMA Board Member and $275.00 was for Respondent's service as Chairman of the CFJMA Board. The parties have stipulated that Respondent has realized a private pecuniary gain of $550.00 as a result of re- appointing himself to the CFJMA Board on November 24, 2014. See, Fact Finding 53. We are mindful of the judicial decision in Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Cmwlth. 2004) (holding that a net profit in the amount of 561.77 resulting from business transactions between a township supervisor's employer and the township would fall within the "de minimis" exclusion to the definition of "conflict of interest "). If the parties had not determined to enter into a Consent Agreement, we could have been presented with issues as to whether, under the circumstances of this case, the de minimis exclusion would apply as to the aforesaid stipulated $550.00 private pecuniary gain that Respondent received. However, given that: (1) the parties have entered into a comprehensive Consent Agreement with the benefit of legal counsel to assist them in weighing all relevant factual and legal considerations, and (2) the parties are in agreement that the finding of a violation of Section 1'103(a) as to Respondents participation in the aforesaid vote to re- appoint him to the CFJMA Board would be appropriate as part of an overall settlement of this case, we shall accept the parties' proposed disposition. (We recognize that Respondent's ongoing receipt of compensation as a Member /Chairman of the CFJMA Board may have been a factor in the negotiation of the Consent Agreement.) We hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Ginnick participated in the vote of the Township Board of Supervisors to reappoint him to the CFJMA in November of 2014. The parties have recommended a finding that no violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred because Ginnick timely filed his 2013 SFI with the CFJMA Board, which form contained his position as a Township Supervisor. By law, Respondent's 2013 SFI form was required to be filed both with the Township and with the CFJMA Board, nevertheless, we recognize the give -and -take that is involved in the negotiation of a Consent Agreement, as well as the prosecutorial discretion of the Investigative Division. Without adoptin any particular reasoning of the parties, we hold that based upon the Consent AgreemenI of the parties, Respondent Ginnick did not violate Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), as alleged in this case. Ginnick, 15 -041 age T8 As part of the Consent Agreement, Ginnick has agreed to make payment in the amount of $2,000.00 in settlement of this matter as follows: a. $1,500.00 payable to Southampton Township and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter; and b. $500.00, which represents a portion of the costs incurred by this Commission in the investigation and enforcement of the instant matter, to be made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Respondent Ginnick has also agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 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, Ginnick is directed to make payment in the amount of $1,500.00 payable to Southampton Township and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Ginnick is directed to make payment in the amount of $500.00 payable to the Pennsylvania State Ethics Commission and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Finally, per the Consent Agreement of the parties, Respondent Ginnick is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 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. 1V. CONCLUSIONS OF LAW: As a Supervisor for Southampton Township ( "Township "), Cumberland County, since approximately January 5, 2004, and as the Township Secretary[Treasurer from approximately 2004 through 2015 and Treasurer since 2015, Respondent Thomas L. Ginnick ( "Ginnick ") has been a public officiallpublic employee subJ'ect to the provisions of the Public Official and Employee Ethics Act ('Ethics Act'), 65 Pa. C.S. § 1101 et se . 2. Ginnick violated Section 1103(a) of the Ethics Act, 65 Pa. C.S. § 1103(a), when, in September 2011, he prepared and voted to approve the Township Minimum Municipal Obligation report for calendar year 2012 which included his wife, Kathleen Ginnick, as a full -time Township employee when she had previously been a part - time Township employee; and when Ginnick signed Township payroll checks issued to his wife between January 2011 and February 2016. 3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Ginnick participated in the vote of the Township Board of Supervisors to Ginnick, 15 -041 Fa-e 9 rre0alppoint him to the Cumberland Franklin Joint Municipal Authority in November of 4. Based upon the Consent Agreement of the parties, Ginnick did not violate Section 1104(a) of the Ethics Act, 65 Pa-C.S. § 1104(a), as alleged in this case. In Re: Thomas L. Ginnick, File Docket: 15 -041 Respondent Date Decided: 1124117 Date Mailed: 1127117 ORDER NO. 1707 Thomas L. Ginnick ( "Ginnick ") ----a public official /public employee in his capacities as a Supervisor for Southampton Township ( "Township "), Cumberland County, since approximately January 5, 2004, and as the Township Secretary/Treasurer from approximately 2004 through 2015 and Treasurer since 2015 --- violated Section 11 03 a of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), when, in September 2011, he prepared and voted to approve the Township Minimum Municipal Obligation report for calendar year 2012 which included his wife, Kathleen Ginnick, as a full --time Township employee when she had previously been a part --time Township employee, and when Ginnick signed Township payroll checks issued to his wife between January 2011 and February 2016. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Ginnick articipated in the vote of the Township oard of Supervisors to 20 appoint him to the Cumberland Franklin Joint Municipal Authority in November of 3. Based upon the Consent Agreement of the parties, Ginnick did not violate Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), as alleged in this case. 4. Per the Consent Agreement of the parties, Ginnick is directed to make payment in the amount of $1,500.00 payable to Southampton Township and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. 5. Per the Consent Agreement of the parties, Ginnick is directed to make payment in the amount of $500.00 payable to the Pennsylvania State Ethics Commission and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. 6. Per the Consent Agreement of the parties, Ginnick is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. Compliance with paragraphs 4, 5 and 6 of this Order will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION,