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HomeMy WebLinkAbout82-589 McCulloughMr. Robert B. McCullough Suite 416 Marine Bank Building Erie, Pennsylvania 16501 -1478 Mailing Address: STATE ETHICS COMMISSION P.O. BOX 1 179 HARRISBURG, PA 17108 TELEPHONE: (717) 783 -1610 November 30, 1982 ADVICE OF COUNSEL 82 -589 RE: Township, School District Administrator, Sale of Building Dear Mr. McCullough: This is in response to your letter of August 5, 1982 in which you, as the Solicitor of the Township of Lawrence Park, requested advice from the Ethics Commission on behalf of one of the Township Commissioners. Issue: You request advice as to whether a Township Commissioner who also serves as the Business Administrator of the Iroquois School District may engage as a Commissioner in negotiations with the School District for the purchase of a piece of property currently owned by the School District. Facts: Mr. Pete Ogden was elected to the Lawrence Park Township Board of Commissioners, hereinafter, the Township, in November of 1981. In addition to this, Mr. Ogden is also a full -time employee of the Iroquois School District, hereinafter, the School District, which serves the Township of Lawrence Park and an adjoining Borough. Mr. Ogden is the School District Business Admini- strator and as such, his duties include complete budgetary control of the School District funds, supervising all non - instructional personnel, being in- charge of transportation and all purchasing matters, and being responsible for all school buildings and grounds, including their upkeep and maintenance. The School District now has an elementary school building which has been declared surplus property by its Board of Directors. The School District would like to sell the property, and has engaged in various actions indicating that desire. Recently, the Township considered the purchase of the school building for possible use as a township administration building and has had informal conversation with the School District relative to its purchase. At the present time, there is no agreement for the sale and purchase of the property, nor is there presently in existence an office for purchase by the Township. State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania Mr. Robert B. McCullough November 30, 1982 Page 2 It is presumed that negotiations may take place in the future between the Township and the School District, and Mr. Ogden is concerned as to what part he may play in this regard. Discussion: Mr. Ogden is a public official within the meaning of the Ethics Act, 65 P.S. 401 et seq., and must conform his conduct to the requirements of the statute. The purpose of the statutory standards is to insure the integrity of public servants by eliminating even the appearance of a conflict of interest. The Ethics Commission has found that a conflict of interest exists when an individual represents two or more persons whose interests are adverse to each other. Alfano, 80 -007. In this matter, the Township and the School District haveadverse interests. The Township's interest lies in minimizing the price it will pay for the school building and grounds, while the School District's interest lies in maximizing the price it will receive from the sale of that same property. Mr. Ogden, as Business Administrator and employee of the School District, would be circumventing his duties as a Township Commissioner if he attempted to aid the District in getting the highest price possible for the property. Likewise, as a Township Commissioner, Mr. Ogden would be circumventing his duties as Business Administrator if he bargained or voted as a Township official on the question of purchasing the building and attempting to minimize the price paid for the property. Knox, 81 -009. For these reasons, Mr. Ogden, in order to avoid the appearance of a conflict of interest, must abstain from taking part in negotiations with the School District for the purchase of the property in question. This prohibition extends to negotiations, discussions, and votes on this issue. The reason for Mr. Ogden's abstention must be placed on the public record. Conclusion: Mr. Ogden, as a Township Commissioner negotiating for the purchase of a piece of property and as Business Administrator for a School District presumably trying to get a maximum price for that property, represents conflicting interests. He must therefore abstain from participation in discussions, negotiations, and votes as a Township Commissioner relating to the purchase of the property in question in order to avoid the appearance of a conflict of interest. The reasons for this abstention must be placed on the public record. Mr. Robert B. McCullough November 30, 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. KW /rdp 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 will be scheduled and a formal Opinion from the Commission will be issued. Any such appeal must be made, in writing, to the Commission within 15 days of service of this Advice pursuant to 51 Pa. Code 2.12. Sincerely, Sandra S. Chr' tianson General Counsel