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HomeMy WebLinkAbout81-632 RogalaDonald J. Rogala, Esquire City Solicitor Municipal Building Erie, PA 16501 Mailing Address: STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 October 30, 1981 ADVICE OF COUNSEL RE: Conflict of Interest, Abstention Dear Mr. Rogala: 81 -632 This responds to your letter of April 17, 1981, in which you, Solicitor of the City of Erie, requested an opinion from the Ethics Commission on behalf of a member of the Erie City Council. Issue: You requested advice as to whether a member of City Council may participate in a development project financed by the city, the state and the federal govern- ment. Facts: You informed us that the City of Erie, the fed- eral government and the Pennsylvania Department of Community Affairs have entered into a Urban Development Action Grant (UDAG) program with the Erie Insurance Exchange and a local organization known as B.E.S.T. The Erie City Council approved the UDAG project. One of the votes for the project was cast by Councilman Robert Glowacki. Glowacki is also a real estate broker and a shareholder in John W. Schaefer Builders, Inc., a building corporation. B.E.S.T. approached Schaefer Builders, Inc., to develope the parcel of land it ac- quired. The development will consist of five single family residential units. Discussion: The Ethics Act, 65 P.S. Section 401 et seq., was intended to insure that persons serving in public State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Donald J. Rogala, Esquire October 30, 1981 Page 2 office and holding a public trust would in no way receive personal financial gain from holding public office other than that provided by law. 65 P.S. Section 401. To achieve that end certain regulations were imposed upon persons deemed to be "public officials" or "public employees." As a member of the Erie City Council, Glowacki is a public official within the meaning of the Act. See 65 P.S. Section 402. Therefore he must domply with the restrictions Act 170 imposes and avoid conflicts of interest or the appearance of a conflict of interest. Prior decisions of the Ethics Commission indicate that a public official may not vote on a project before him for approval when he has a reasonable expectation of being asked to work on the project. Sowers, 80 -050. If a public official votes on a project that he expects to receive employment from, it creates at least the appearance of a conflict of interest or the use of office for personal gain. Accordingly, Glowacki may have to abstain from voting on any matter relating to the UDAG project and B.E.S.T. if, because of his present or potentially continuing business relationship with B.E.S.T., he now has a reasonable expectation of being asked to do further work on the development. In addition, he should place the reasons for his abstention on the public record. See Sowers (copy attached). From your letter we cannot say that Mr. Glowacki had an expectation of being employed by B.E.S.T. at the time of his ori- ginal vote to approve the grant, so this vote would not appear to be in violation of the Act or create an appearance of a conflict of interest. Conclusion: As a public official, Glowacki must avoid the appearance of a conflict of interest by abstaining from voting on projects when he has a reasonable expecta- tion of being asked to work on the project. Because Glowacki apparently did not have any such expectation with regard to the UDAG project or B.E.S.T. at the time of the vote in question, his vote for the project did not violate the Ethics Act. Donald J. Rogala, Esquire October 30, 1981 Page 3 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 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. SSC /lma Attachment 7843 Sincerely, ndra S. General C ristianson unsel