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HomeMy WebLinkAbout86-604 EberlyMs. Tita Eberly 143 West Main Street Mechanicsburg, PA 17055 STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 September 19, 1986 ADVICE OF COUNSEL 86 - 604 Re: Borough Councilperson, Purchase of Borough Property Dear Ms. Eberly: This responds to your letter „of September 3, 1986, wherein you requested the advice of the State Ethics Commission. Issue: Whether the spouse of a borough councilperson may purchase a piece of property that is being sold by the borough. Facts: You have advised that you are currently serving as a borough councilperson in Mechanicsburg, Pennsylvania. The borough is interested in selling a parcel of property that it owns. Your husband, who is not associated with the borough, is interested in placing a bid on this property. Sealed kids are to be received by the borough. You have advised that you have already informed the members of the borough council at a meeting on September 2, 1986, that your h'isband may intend to hid on the property. This disclosure was made during a public meeting of the borough council. You have, in addition to that disclosure, requested the advice of the State Ethics Commission in relation to this matter. Discussion: There is no doubt that as a member of a borough council, you are a public official as that term is defined in the State Ethics Act. 65 P.S. §402. As such, your conduct must conform to the requirements of that law. See, Domalakes, 85 -010. Generally, the State Ethics Act provides as follows: Section 3. Restricted activities. (a) No public official or public employee shall use his public office or any confidential information received through his holding public office to obtain financial gain other than compensation provided by law for himself, a memher of his immediate family, or a business with which he is associated. 65 P.S. 403(a). Ms. Tita Eberly September 19, 1986 Page 2 Within the above provision of law, no public official may use their position in order to obtain a financial gain for themselves or for a member of their immediate family. No public official may use confidential information for similar purposes. The Act defines member of one's immediate family as follows: Section 2. Definitions. "Immediate family." A spouse residing in the person's household and minor dependent children. 65 P.S. 402. Your spouse is clearly a member of your immediate family within the above definition and, as such, you may not use your public position or any confidential information obtained in that position in order to obtain a financial gain for your husband. As such, and within the above provision of law, you may not participate in the council's actions regarding the sale of this property. This would include participating in any decision regarding how much the council will accept for such property, or the terms and conditions regarding the sale of this property. You should abstain from fixing specifications if such is to be done regarding the sale of this property. You must also abstain from participating in reviewing the bids and deciding which bid will be accepted. In addition to the foregoing, you may not use any confidential information obtained by the borough in order to aid your husband in submitting his bid. For example, if the borough council has obtained an estimated value of the property or if the borough council has already decided that a minimum bid must be received in order for the sale to be consumated, you may not inform your husband as to the borough's decisions in this matter if you have been privy to them. If this information is confidential in nature and if this information is only within the purview of the officials of the borough, then you would be in violation of the State Ethics Act if you were to use this information in aid of your husband's bid. The Ethics Act, however, does not place any per se prohibition upon your husband's submission of a sealed bid. The Ethics Act, in addition to all of the foregoing, also provides as follows: Ms. Tita Eberly September 19, 1986 Page 3 Section 3. Restricted activities. (c) No public official or public employee 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 process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. Any contract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of making of the contract. 65 P.S. 403(c). If a contract will be entered into between your husband and the borough, then the contract must be awarded through an open and public process. From the information that you have provided, it appears as though the process required, under the Ethics Act, is being followed. Specifically, you have indicated that the borough has requested, publicly, that bids be submitted for this property. Such has been done through an open and public process and has been accomplished in a sufficient amount of time in order to allow members of the general public ample opportunity to submit their proposals. You have also advised that the bids will be opened and discussed and a final bid accepted by the borough council. As long as the bids received, considered and the one finally accepted are publicly announced, the provisions of the above section of the Ethics Act will have been met. You, of course, must continue to abstain from all of the borough's actions in this matter. Such abstention should be publicly noted and recorded. Conclusion: The State Ethics Act places no per se prohibition upon the purchase of property by an individual whose spouse is a member of the governmental body selling such property. As a public official, your conduct must conform to the requirements of the law as set forth above. 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. Ms. Tita Eberly September 19, 1986 Page 4 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. Si ncer onti no Gen .1 Counsel