HomeMy WebLinkAbout82-545 GaffneyMr. John F. Gaffney
Timoney, Knox, Hasson & Weand
12 East Butler Avenue
P.O. Box 119
Ambler, Pennsylvania 19002
Mailing Address:
STATE ETHICS COMMISSION
P.O. BOX 1179
HARRISBURG, PA 17108
TELEPHONE: (717) 783 -1610
May 25, 1982
ADVICE OF COUNSEL
82 -545
RE: Public Official - Borough Ambler -, Councilman - Private
Contract with Borough's Contractor
Dear Mr. Gaffney:
This responds to your letter of February 17, 1982 in
which you, as Solicitor for the Borough of Ambler, requested
an opinion from the State Ethics Commission.
Issue: May a Borough Councilman, who is also the President
and primary stockholder of a home oil delivery corporation,
provide that service to a residence occupied by the wife of
a corporation President and receive payment from the corpo-
ration, when the Borough in which the Councilman serves has
already entered into a sewage plant construction contract
with the same corporation?
Facts: Ambler Borough has hired a corporate contractor
(hereinafter, plant contractor) to construct a large -scale
sewage treatment plant. The plant contractor receives
progress payments throughout its course of performance under
the contract. Members of the Borough Council will vote on
the final payment when the plant contractors completes the
project. Council members will also vote on whether or not
to continue the contract, should any problem justifying
termination for cause arise.
State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania
Mr. John F. Gaffney
May 25, 1982
Page 2
An Ambler Borough Councilman is also President and
primary stockholder of a corportion engaged in the delivery
of oil and gas, and in the sales and service of heating
equipment. An employee of the plant contractor has asked
the Councilman to repair and subsequently deliver home
heating oil to a residence occupied by the wife of the plant
contractor's corporate President. The plant contractor will
accept the billing for the services. The corporation of
which the Councilman is President and primary stockholder,
would provide the service and the fuel oil at a rate equal
to that charged to other customers.
Discussion: In his capacity as Ambler Borough Councilman,
the President and primary stockholder of the heating fuel
sales and service corporation is a public official subject
to the Ethics Act, 65 P.S. 401 et seq. Pursuant to Section
3 of the Act, he may not use his office as a Borough Council-
man to obtain work, including the contract to deliver home
heating oil. Similarly, the plant contractor may not attempt
to influence the corporate President's vote as a Council
member, in connection with the public sewage plant contract,
by promising the Council member future employment. 65 P.S.
403(a), (b) .
However, the Ethics Act was not designed to preclude
public officials from engaging in business with the public
in general. Sowers, 80 -050. Furthermore, a private contract
between the C lean and the plant contractor to deliver
home heating oil would be independent of and distinct from
the public contract between the Borough and the plant
contractor. The private contract would not be subject to
review, approval, etc. by the Councilman as a public official
nor by the Borough Council itself.
Conclusion: As a public official, the Councilman's conduct,
even as a private businessman, must conform to the restric-
tions delineated in Section 3 of the Ethics Act and discussed
above. Therefore, as discussed above, the Borough Councilman
must not:
1. use his public office position to obtain employ-
ment for the corporation in which he is President
and primary stockholder; or
2. use confidential information gained in his official
capacity to secure such employment;
Mr. John F. Gaffney
May 25, 1982
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 /rdp
Sincerely,
andra istianson
General Co•nsel