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HomeMy WebLinkAbout81-553 ForrestSTATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 April 17, 1981 ADVICE OF COUNSEL Denis E. Forrest Suite 200 Kirk Mill Building Barley Mill Plaza 4305 Lancaster Pike Wilmington, DE 19805 RE: Township Supervisor, Contracting Dear Mr. Forrest: 81 -553 This responds to your letter of March 28, 1981, in which you as Chairman of the East Goshen Township Board of Super- visors, requested an opinion from the Ethics Commission. Issue: In your letter you request advice as to whether your business could contract with the Homeowners Association in East Goshen Township to provide sewage management services. You also request advice as to whether your business could contract with the Township to provide sewage management services. Facts: You informed us that you are Chairman of the East Goshen, Pa., Township Board of Supervisors. You have an interest in Denis E. Forrest Associates, a Pennsylvania corporation providing sales, management, and engineering consultant services. Another of your interests is the Sewage Management Company, a service area of Denis E. Forrest Associates, Inc., Sewage Management offers sewage operations and administration service. East Goshen Township is a suburban /rural community that has many on -lot sewage systems. Your business will provide sewage management services to a Homeowners Association and to sewage management districts created by the Township. Discussion: The Ethics Act, 65 P.S. §401 et se q., defines public official as "Any elected or appointed official in the Executive, Legislative or Judicial Branch of the State or any political subdivision thereof..." 65 P.S. §402. As an elected Township Supervisor you are a public official subject to the Ethics Act. Denis E. Forrest April 17, 1981 Page 2 The Ethics Act does not, however, forbid you or your business from providing sewage management services to a Home- owners Association or individual homeowners. .. the Ethics Act was not designed to preclude public officials from engaging in business with the public, in general." Sowers, 80 -050. The statute does place restrictions on your conduct as a public official. You may not use your position as Township Supervisor or confidential information received through holding that position to obtain work for you or your business with local home- owners. 65 P.S. §403(a); Sowers, 80 -050. No one may give anything of value including the promise of future employment, to you, your family or business, based on any understanding that your official acts as Supervisor would be influeced thereby. 65 P.S. §403(b); Sowers, 80 -050. No homeowner could offer you employment as a sewage management service based on any understanding that your actions as Supervisor would be influenced by the proffered employment. The Ethics Act does not prevent you or your business from becoming sewage managers for the Township. Again, you may not use your official position or confidential information received throug your office to obtain such employment with East Goshen Township. 65 P.S. §403(a). The Act further states that: "No public official...or a member of his immediate family or any business in which the person or a member of the person's immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair market value of the business shall enter into any contract valued at $500 or more with a governmental body unless the contract has been awarded through an open and public bid process." 65 P.S. §403(c).. You and your companies may not contract with East Goshen Township unless the contract valued at more than $500 is let through a process that provides for: (1) Prior public discussion; and (2) public disclosure of all proposals considered; and (3) public disclosure of the award of the contract. A prudent competitor of yours should have enough time to prepare and submit a bid. Howard, 70 -044. If these standards are met there is no prohibition in the Ethics Act against you or your business contracting to provide sewage management service to the Township. L1 C:lllb L.. LVL 1CJL April 17, 1981 Page 3 The Act authorizes the Commission to address areas of potential conflict of interest. 65 P.S. §403(d). In order to avoid even the appearance of a conflict of interest proscribed by Section 1 of the Act, 65 P.S. §401, you should abstain from voting on matters, however, that would affect your business. Specifically, you should not vote on the award of any contract between the Township and your businesses, for example. Sowers, 80 -050. You should place the reason for your abstention on the public record. Id Conclusion: A Township Supervisor is a public official subject to the Ethics Act. As Supervisor, you and your business may provide sewage management services to homeowners in the Township if you did not use your office or confidential information received in office to obtain such employment. You may not accept nor may anyone offer anything of value, including employment as a sewage manager, based on any understanding that your official actions would be influenced thereby. You and your business may enter into contracts valued at greater than $500 with East Goshen Township if the contract is awarded in an open and public process meeting the following criteria: (1) Prior public discussion; and (2) public disclosure of all proposals considered; and (3) public disclosure of the award of the contract. A prudent competitor must have time to prepare and submit a proposal. To avoid the appearance of a conflict of interest you should abstain from voting on matters affecting your businesses and place the reason for your abstention on the public record. Pursuant to Section 7(9)(ii), this Advice is a complete defense in any enforcement proceeding initiated by the Commission, and evidence of good faith conduct in any other civil or criminal proceeding, providing the requestor has disclosed truthfully all the material facts and committed the acts complained of in reliance on the Advice given. This letter is a public record and will be made available as such. Finally, if you disagree with this Advice or if you have any reason to challenge same, you may request that the full Commission review this Advice. A personal appearance before Denis E. Forrest April 17, 1981 Page 4 the Commission may be scheduled and a formal Opinion from the Commission will be issued. You should make such a request or indicate your disapproval of this Advice within the next 30 days. SW /rdp Sin erely, a dra S. ri • ianson General Couns