HomeMy WebLinkAbout83-534 GreeneMr. Kenneth - J. Greene
2144 Ducane Avenue
McKeesport, PA 15132
Mailing Address:
STATE ETHICS COMMISSION
P.O. BOX 1179
HARRISBURG, PA 17108
TELEPHONE: (717) 783 -1610
April 12, 1983
ADVICE OF COUNSEL
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RE: Former Public Employee /Representation /Redevelopment Authority
Dear Mr. Greene:
This responds to your letter of December 17, 1982, in which you requested
advice from the State Ethics Commission.
Issue: You are the former Executive Director of the Redevelopment Authority
of the City of McKeesport and you would like the Commission to determine what
actions may or may not be taken by you relative to a developer associated with
the redevelopment project under the control of the Redevelopment Authority of
McKeesport (RAM).
Facts: The Redevelopment Authority of the City of McKeesport was created
under the Redevelopment Law of 1945, Act 385, May 24, 1945, 35 P.S. §1701 et
seq. On December 1, 1978, you were hired by RAM to serve as the Executive
Director.
One of the projects under RAM control at that time was the Flood Disaster
Project PA R -442. In June of 1979, RAM advertised the sale of and
subsequently sold, its Youghiogheny Riverfront property (located within the
R -442 project). The property was sold to a Georgia firm, Shlapack Builders,
Inc., which worked with RAM staff and the Board of Directors for the next two
and a half to three years toward commencement of a private development. Due
to funding difficulties, construction has not yet been begun.
On January 1, 1980, former RAM Relocation Officer, Louis Washowich,
became the Mayor of the City of McKeesport. Prior to this, he had served
under you at RAM. He subsequently effected changes to the membership of the
Board of Directors of RAM as terms expired. On September 27, 1982, the RAM
Board of Directors voted to replace you as Executive Director of RAM with a
Consultant Company, Pittman - Starrett.
State Ethics Commission • 308 Finance Building • Harrisburg, Pennsylvania
Mr. Kenneth J. Greene
April 12, 1983
Page 2
Since termination of your employment with RAM, you have been unemployed,
but have been seeking employment`in the field of government affairs. The City
Council of the City of McKeesport, through its President, Sameul Vidnovic,
requested your assistance in insuring the success of the Shlapac Development.
Shlapac Builders, Inc., through its President, Milton Shlapac, has also
requested your assistance, especially because of your knowlege of and
familiarity with the details of the project.
Since October 1, 1982, have performed the following functions
pertaining to the McKeesport Project for Shlapac Builders:
1. acted in a clerical capacity concerning correspondence of Allegheny
Department of Development relative to future grant applications.
2. acted as an information gatherer relative to future grant
applications to the Federal Department of Housing and Urban
Development.
3. acted as an advisor to Shlapac Builders pertaining to details of the
project property relative to utilities, physical appearance, and
future construction.
4. acted as a gatherer of documents, maps and correspondence between
the Redevelopment staff and Shlapac.
5. acted as a resource person at meetings between Shlapac, HUD, and the
Allegheny County Department of Redevelopment.
6. acted at all times with no compensation from Shlapac Builders or any
other source for work performed on this project.
You state that you realize that you are covered by the Ethics Act and
that your intentions are not to circumvent the law in any way but only to
assist the developer and the City as a committed public servant to insure the
success of the project. You also state that you have never, nor do you
intend, to represent Shlapac before RAM.
Discussion: The Ethics Act, 65 P.S. §401 et seq., defines "public employee"
as any person employed by the Commonwealth who is responsible for taking or
recommending official action of a non - ministerial nature with regard to
contracting or procurement, regulating any person before any other activity
where the official action has a greater than de minimus impact on the interest
of any person. Id. §402. As Executive Director of RAM you were a "public
employe" within the coverage of the Ethics Act, and your conduct must conform
to the requirements of the Ethics Act. These requirements include complying
with the provisions of Section 3(e) of the Ethics Act, 65 P.S. 403(e).
Section 3(e) provides that:
Mr. Kenneth J. Greene
April 12, 1983
Page 3
(e) No former official or public employee shall represent
a person, with or without compensation, on any matter
before the governmental body with which he has been
associated for one year after he leaves that body.
65 P.S. §403(e).
The Commission has determined that the concept of the "governmental body"
with which an individual has been associated is that entity with which he or
she may have exerted "influence." In your case, as Executive Director of RAM,
your "influence" appears to be limited to RAM. Accordingly, you nay not
represent any person with or without compensation before RAM for the one -year
period following your termination of service with the Commonwealth.
The term "representation" has also been further interpreted by opinions
of the Commission. Specifically, this term has been held to preclude, for the
one -year period, the following activities:
1. personally appearing before the governmental body with which you
were associated, including but not limited to negotiations on
contracts;
2. attempting to influence that body;
3. participating in any manner in a specific case, matter or contract
over which you had supervision, direct involvement or responsibility
while employed with the governmental body;
4. lobbying, that is representing the interest of any person, before
that governmental body as to legislation, regulations, etc. See
Morris, 80 -039 and Russell 80 -048;
5. Signing and submitting under your own signature proposals,
contracts, or other items to the RAM;
6. including your name on a bid proposal as an individual who would be
involved in administering any contract to provide technical
assistance which is subject to the proposal. See Dalton, 80 -056 and
Kilareski, 80 -054.
While these restrictions are imposed you may, however, engage in the
following activities:
A. You may administer, rather than negotiate, any contract that is to
be awarded to any future employer or client by RAM so long as that
contract is awarded without your name being included as noted in
items 5 and 6 above.
Mr. Kenneth J. Greene
April 12, 1983
Page 4
B. You may make general informational inquiries of RAM so long as no
attempt is made to influence RAM as noted above.
C. You may utilize the knowledge and expertise gained curing your
tenure as public employee vis -a -vis other entities or clients,
except as set forth above.
D. You may appear and represent any person on behalf of any person,
company or a new employer before any governmental agency other than
RAM except as set forth in Number 3 above.
The Commission notes that you have worked with Shlapac Builde 's in its
dealings with HUD and with the Allegheny Department of Development. While no
3(e) restrictions are applicable with regard to your representation before
those bodies, you should note that Section 3(a) of the Act, 65 P.S. 403(a),
prohibits the use of any confidential information gained as a result of your
holding public office with RAM. This caution is as set forth not as an
indication of any violation on your part, but as a guide for your conduct.
The Commission also notes the letter of November 9, 1982, which you
enclosed your request for advice. While that letter seems to imply that you
are acting before RAM as an agent, although uncompensated, for Shlapac
Builders, the Commission is confident that, in light of this advice and your
familiarity with the Ethics Act, 65 P.S. 401 et seq., and also in light of
your desire not to circumvent the law in any way, you are not "representing"
Shlapac Builders before RAM. The Commission would emphasize that Section 3(e)
prohibits representation of any kind before RAM with or without compensation,
but allows you to act in any capacity for Shlapac Builders before any body
other than RAM as set forth above.
Conclusion: As a former public employee your conduct should be guided by this
advice. The prohibitions and the allowable activities are noted above and
should be followed.
In addition, as a former public employe you are required to file a
Financial Interest Statement for each year that you hold office and the year
following your termination of service. Accordingly, such a Financial Interest
Statement should be filed no later than May 1, 1983.
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.
Mr. Kenneth J. Greene
April 12, 1983
Page 5
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.
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Enclosure
Sincerely,
oau
andra S. Chr i'stianson
General Counsel