HomeMy WebLinkAbout89-577 VasiliadisMr. Constantine M. Vasiliadis
City of Bethlehem
Bureau of Law
10 East Church Street
Bethlehem, PA 18018
Dear Mr. Vasiliadis:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
P.O. BOX 11470
HARRISBURG, PA 1 71 08 -1 470
TELEPHONE (717) 783 -1610
ADVICE OF COUNSEL
October 16, 1989
89 - 577
Re: Conflict of Interest, Public Employee, Contracting with
Governmental Body, Assistant City Solicitor, Law Firm
Representing General Liability Carrier for City
This responds to your letter of September 20, 1989, in which
you requested advice from the State Ethics Commission.
Issue: Whether the Public Official and Employee Ethics Law
presents any prohibition or restrictions upon an assistant city
solicitor or a "business with which he is associated" from
contracting or subcontracting with the city.
Facts: As the City Solicitor for Bethlehem, your current
assistant, Jay Steven Kreglow, is a partner in the law firm of
Hollen, Taylor, Hollenbach and Kreglow which represents one of
the insurance carriers for the City. The general liability
carrier for the City is Crum and Forster which retains the
services of Halien, Taylor, Hollenbach and Kreglow for its
defense. At the current time there are approximately eight
active suits being handled by the law firm on behalf of the
carrier. You have apprised the carrier and the city officials
regarding Mr. Kreglow who does not supervise any active files for
the city or his firm. After noting Section 3(f) of the new
Ethics Law, you inquire as to whether such a relationship between
Mr. Kreglow and the city may continue despite the disclosure to
the parties involved. You conclude by requesting an advisory
concerning the circumstances.
Mr. Constantine M. Vasiliadis
Page 2
Discussion: As a Assistant Solicitor for City of Bethlehem, Mr.
Rreglow is a "public employee" as that term is defined in the
Ethics Law. 65 P.S. §402; 51 Pa. Code §1.1. As such, he is
subject to the provisions of the Ethics Law and the restrictions
therein are applicable to him.
Generally, the Ethics Law places no per se prohibition upon
a public official's employment in a business that contracts with
his governmental body.
Section 3(a) of the Ethics Law provides:
Restricted Activities
No public official or public employee
shall engage in conduct that constitutes a
conflict of interest.
The following terms are defined under the Ethics Law:
"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. "Conflict" or
"conflict of interest" 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
or his immediate family or a business with
which he or a member of his immediate family
is associated.
"Authority of office or employment."
The actual power provided by law, the
exercise of which is necessary to the
performance of duties and responsibilities
unique to a particular public office or
position of public employment.
"Business with which he is associated."
Any business in which the person or a member
of the person's immediate family is a
Mr. Constantine M. Vasiliadis
Page 3
director, officer, owner, employee or has a
financial interest.
Since Mr. Kreglow is a partner of Holland, Taylor,
Hollenbach, and Kreglow, it is clear that entity is a "business
with which he is associated" as that term is defined under the
Ethics Law.
Although Section 3(a) of the Ethics Law would not preclude
Mr. Kreglow or the business with which he is associated, Holland,
Taylor, Hollenbach and Kreglow, from providing the services, Mr.
Kreglow could not use the authority of office to obtain such
business and such business activity may not be conducted using
City facilities or personnel. In particular, Mr. Kreglow could
not use the telephones, postage, staff, equipment, personnel or
any other materials as a means in whole or part to carry out his
private business activities. Pancoe, Opinion 89 -011.
In addition to the foregoing, Section 3(f) of the Ethics Law
provides as follows:
(f) No public official or public
employee or his spouse or child or any
business in which the person or his spouse or
child is associated shall enter into any
contract valued at $500 or more with the
governmental body with which the public
official or public emploYee is associated or
any subcontract valued at $500 or more with
any person who has been awarded a contract
with the governmental body with which the
public official or public employee is
associated, unless the contract has been
awarded through an open and public process,
including prior public notice and subsequent
public disclosure of all proposals
considered and contracts awarded. In such a
case, the public official or public employee
shall not have any supervisory or overall
responsibility for the implementation or
administration of the contract. Any contract
or subcontract made in violation of this
subsection shall be voidable by a court of
competent jurisdiction if the suit is
commenced within 90 days of the making of the
contract or subcontract.
In relation to the above provision of law, the State Ethics
Commission has generally determined that this provision is a
procedure to be used when a public official or employee