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