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HomeMy WebLinkAbout1724 HenckelRHONE: 717 -783 -1610 TOLL FREE: 1 -600- 932 -0936 In Re: Judith L. Henckel, Respondent 1'Se� rtS .Q v "L STATE ETHICS COMMISSION FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120 -0400 File Docket: X -ref: Date Decided Date Mailed: FACSIMILE: 71 7- 787 -0806 WEBSITE: www.ethics.oa.aov 16 -028 Order No. 1724 11/28/17 12/4/17 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick Maria Feeley Melanie DePalma Monique Myatt Galloway Michael A. Schwartz This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et se ., by the above -named Respondent. At the commencement of its investigation, the nlnvvestigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answerwas not filed and a hearing was deemed waived. A Stipulation of Findings and a Consent Agreement were subsequently submitted by the parties to the Commission for consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. ALLEGATIONS: That Judith Henckel, a public official /public employee in her capacity as a Supervisor for Upper Mt. Bethel Township, Northampton County, violated [Sections 1103(a), 1104(d), and 1105(b)(5)1 of the State Ethics Act (Act 93 of 1998) when she utilized the authority of her publlic position for the private pecuniary benefit of a member of her immediate family and/or a business with which a member of her immediate family is associated, to wit: When she participated in discussions and official actions of the Township Board of Supervisors to authorize and /or engage /continue to engage Urban Research & Development Corporation to apply for grants on behalf of the Township, at a time when her son was an employee of Urban Research & Development Corporation; When she participated in actions of the Township Board of Supervisors by voting to approve and Issue payments to Urban Research & Development Corporation, at a time when her son was an employee of Urban Research & Development Corporation; and When she failed to identify the Township as a source of [income exceeding] $1,300 in the aggregate, on Statements of Financial Interests filed for the 2011, 2012, and 2013 calendar years. Henckel, 16028 a II. FINDINGS: Judith Henckel ( "Henckel ") served as a Member of the Upper Mt. Bethel Township Board of Supervisors from approximately 2008 through 2013. a. Upper Mt. Bethel Township ( "Township ") is a Township of the Second Class governed by a five- Member Board of Supervisors ( "Board "). b. Henckel served as the Board's Vice - Chairman during 2011 and as Chairman during 2012 and 2013. C. Township Supervisors receive compensation totaling $2,500.00 annually for their supervisory duties. 2. As Chairman of the Board, Henckel's duties included conducting regular meetings, work session meetings, and special meetings, as well as signing official Township correspondence and Resolutions. a. During 2012 and 2013, the Township generally held one regular and one work session meeting per month. b. Special meetings and public hearings were held on an as- needed basis. 3. Leonard Policelli ( "Policelli ") is Henckel's son. a. Policelli is a Registered Landscape Architect by profession. b. Policelli has been emplo ed by Urban Research & Development Corporation, 28 W. Broad Street, Bethlehem, PA 18018 for approximately 25 years. Policelli is compensated via salary and earns no bonus, commission, etc., related to his work on any project, including any Township project(s). 4. Urban Research & Development Corporation ( "URDC ") offers various consulting services to govern me nt/no n-p rofit sector businesses primarily in Pennsylvania and Maryland. a. Information contained on the company's website reflects that URDC provides comprehensive planning and zoning, as well as economic development and special studies, GIS mapping, graphic designs and park master plans, park and recreation and open space plans, site planning, and design. b. URDC filed Articles of Incorporation with the Pennsylvania Department of State Corporation Bureau on January 21, 1970. Current corporate officers are Martin G. Gilchrist, President/Treasurer, Thomas Palmer, Vice- President, and Charles Schmehl, Secretary. C. Policelli is identified as a project manager on URDC's website. URDC is a business with which Policelli (a member of Henckel's immediate family) is associated, as that term is defined by the Pennsylvania Public Official and Employee Ethics Act (65 Pa.C.S. § 1101 et sec..). 2. Policelli was, and remained, associated with URDC throughout his mother's tenure on the Board (2008 - 2013). Henckel, 16 -028 Page 5 3. At no time while Henckel was a Member of the Board did Policelli hold any officer [position] or ownership interest in URDC. d. Within his company profile, the "Upper Mount Bethel Township Park: Master Plan, Construction Plans' are credited to him, among various other municipal projects. 5. On June 5, 2003, the Township received a land donation of approximately 92 acres from Reliant Energy Mid Atlantic Power Holdings, LLC. a. The donation consisted of two parcels of approximately 90.0567 and 1.8074 acres in size. b. The intended use of the donated land was to develop it for use as a community park and for open space preservation. C. The donation /land transfer occurred approximately four and one -half years prior to Henckel becoming a Member of the Board in 2008. 6. In or about June 2003, the Board engaged URDC to design a Comprehensive Recreation Park and Open Space Plan `Comprehensive Plan ") for the donated land. a. Henckel was not a Member of the Board at this time. b. Policelli was the URDC employee primarily responsible for developing the Comprehensive Plan for the Township. C. Township Manager Maureen Sterner was Policelli's primary point of contact at the Township. Sterner was responsible for overseeing the day -to -day operations of the project and providing updates to the Board. 7. The Comprehensive Plan for the donated land was funded through a Pennsylvania Department of Conservation and Natural Resources ( "DCNR ") project grant. a. Documents reflect that between September 30, 2003, and August 23, 2004, URDC submitted invoices totaling $42,800.00 for the Comprehensive Plan. b. The Comprehensive Plan was completed approximately three years prior to Henckel becoming a Member of the Board. 8. Following completion of the Comprehensive Plan, the Township decided to utilize URDC to complete a site master plan. a. A "master agreement" between the Township and URDC engaged URDC to complete the Upper Mt. Bethel Township Recreation Park and Open Space Site Master Plan ( "Site Master Plan "). b. On April 13, 2006, the master agreement was executed between the Township and URDC. 9. The April 2006 "master agreement" states that upon completion of the Comprehensive Plan, the Township desires to im lement the improvements designated in the plan, with the consultant (URDC to provide the necessary services for the preparation of construction plans, and specifications for the Henckel, 16 -028 Page 4 construction of phases 1, 2, and 3 of the master plan. a. The Site Master Plan was designed such that work would be completed in phases as funding became available. Project funding has /had originated from a combination of grants, donations, and general Township appropriations. b. The stated scope of services to be provided as the Site Master Plan included, in part, the following: 1. To prepare final construction plans, specifications, and bid forms necessary for each phase of improvements to the Upper Mt. Bethel Community park. 2. To prepare an Erosion and Sedimentation Control Plan including Pennsylvania Diversified Index (PNDI) search and follow -up and prepare an NPDES permit application as required for each phase. It is envisioned the PNDI work will be needed for the first construction phase only. 3. To prepare and submit to the Pennsylvania Department of Conservation and Natural Resources (PA DCNR) Part fl and Part III construction and bidding documents for funding approval under the community conservation partnership program it needed and desired for each phase. 4. To provide key project administration and construction observation services required for the successful completion of bidding, construction, and closing out the grant project for each phase. 5. The consultant will meet with the Township as needed to lay out the size, scope, and elements of each construction phase before the start of the preparation of plans, specifications, and bid documents for that construction phase. 6. Phases I, 11, and III are to be completed by December 31, 2007, otherwise the consultant and Township mutually agree to adjust total costs of the project. Fees for construction phase $50,000.00; fees for Master Plan Phases I, 11, and 111, $220,000.00. C. The agreement also provided an itemized listing of hourly rates for work from secretarial to principal, ranging between $38.00 and $98.00 per hour. d. This agreement was signed by Maureen Sterner on behalf of the Township, and Martin G. Gilchrist, President, URDC. e. Both the Site Master Plan and actual construction in response to the Site Master Plan were initiated in 2003, at least four years prior to Henckel becoming a Member of the Board in 2008. 10. Following its execution, the Site Master Plan was amended by three addendums, extending the required date of completion and scope of work to be completed. a. Addendum No. 1, issued January 18, 2008, extended the scheduled completion date for Phase la and Phase lb & 1c plans to the end of ,tune 2005. Henckel, 16028 a' ge 5-- b. Addendum No. 2, issued March 11, 2009, established the project time frame for Phase 2 work from June 2009 to November 2010. C. Addendum No. 3, issued May 19, 2010, stated that construction for the next Phase (Phase 3 not specifically listed) should be completed by June 2012. 11. By the time Henckel became a Member of the Board in January of 2008, the Township had issued payments totaling at least $138,471.09 to URDC for work related to the Site Master Plan /Upper Mt. Bethel Township Recreation Park and Open Space project. a. Annual amounts were follows: 2003 -2004 Site Master Plan $42,800.00 2005 Site Master Plan preparation /implementation $31,120.00 2006 Invoices $14,956.98 2007 Invoices $49,594.11. 12. The Township continued to use URDC for services related to the land project throughout Henckel's tenure on the Board. a. At no time (either before, during, or after Henckel's service as a Township Supervisor) did the Board ever consider using a company other than URDC for engineering /architectural design. b. The Township believed that a change from URDC would result in additional costs to the Township. C. This belief was based on the amount of work URDC had already completed, combined with services URDC had provided and would continue to provide at no cost to the Township. 13. At no time while Henckel served on the Board did she publicly disclose at a meeting of the Board that URDC employee Policelli was her son. a. Henckel did publicly disclose her relationship to Policelli during a Township meeting held in 2016, as part of discussions on the park and land preservation issues. 1. Henckel's disclosure occurred approximately three years after she ceased serving on the Board. b. While serving on the Board, Henckel took official action in her public position as a Township Supervisor regarding issues between the Township and URDC, knowing that a member of her immediate family was an employee of URDC. 1. Henckel never abstained from discussions or voting on matters related to services provided by URDC. 14. Between January 2008 and December 2014, URDC was a bidder and/or successful bidding company for nine (9) projects associated with the Township. a. Those projects included: Project 1646 -4, February 2008 Eastern Industries Property Master Plan: Not awarded. Henckel, 16 -628 p gem 2. Project 1646 -5, April 2009 DCNR Grant Application: $1,350.00. 3. Project 16466, March 2012 E &S Corrective Measures and NPDES Permit Renewal: No specific price listed, identified as a continuing service.* 4. Project 2554 -1, September 2012, Economic Development Study: $5,000.00. Unrelated to the park project according to Policelli.* 5. Project 1646 -7, April 2013, DCNR Grant Application - Playground: No charge.* 6. Project 1646 -8, May 2013, Grant Work, $5,000.00 Proposal: Not awarded. 7. Project 1646 -9, March 2014, Playground Construction Plans and Oversight: No contract. 8. Project 1646 -10, July 2014, DCED Act 13 Legacy Grant, $227,124.00: Paid $2,750.00. 9. Project 1646 -11, October 2014, Phase 2 CENS Plans and NPDES Revisions: $8,400.00. " These projects occurring during 2012 and 2013, while Henckel was a Memberof the Board, are within the Ethics Act's five -year statute of limitations. 15. Between 2012 -2013, the following grants were sought by URDC on behalf of the Township, specifically for projects which, if /when grants were awarded, would result in URDC being engaged in additional /continued work: DCNR Keystone Recreation Park and Conservation Fund, Agreement No. BRC- PRD -19 -122: Awarded December 2013 in the amount of $119,000.00 for playground construction and ADA parking beginning January 1, 2014 through December 31, 2017. URDC Project No. 1646 -9. Delaware and Lehigh National Heritage Corridor, Inc.: Awarded fall 2013 in the amount of $7,400.00 of $14,811.00 beginning January 1, 2013, through May 31, 2015. Included with this is other funding in the amount of $1,288.00 Upper Mt. Bethel Township, $1,378.00 Upper Mt. Bethel Township EAC, $4,395.00 UMB Community Park f=oundation, and $350.00 R &R Lawn Service. Northampton County Open Space Initiative Grant, Resolution No. 2013- 10: Identified as a closed grant. Awarded March 11, 2013, $112,616.92 identified as funds being received December 1, 2015, for URDC Project No. 16 -46 -9. Other funding partners $972.00 UMBT EAC, $5,000.00 UMB Community Park Foundation, and $2,000.00 Martins - Jacoby Watershed Association. a. The preceding grant applications were all in relation to continuation of the Site Master Ian /Upper Mt. Bethel Township Recreation Park and Open Space project. 16. On July 9, 2012, Henckel, as Chair of the Board, signed Township Resolution No. 2012 -32 requesting a local share account grant of $77,917.00 from the Commonwealth Financing Authority's Pennsylvania Gaming Local Share Account. Henckel, 16 -028 a a. The intended use of this grant funding was for a "playground area to include excavation, installation, and playground equipment consisting of a play structure, slide, two bay swings, and matting. b. Supervisor Robert Gerwig and Manager Maureen Sterner were authorized to execute all documents and agreements between the Township and the Commonwealth Financing Authority on the grant. C. Henckel's actions regarding Township Resolution No. 2012 -32 were to seek additional funding for the Upper Mt. Bethel Township Recreation Park and Open Space project. Funds were necessary to continue the project, including continuing payments to URDC. 17. As Chair of the Board, Henckel signed correspondence dated March 11, 2013, in support of a grant application for the community park. a. This letter of support was included with the Township's application for a DCNR grant. b. This letter of support was similar to several others included with the application signed by representatives of the Upper Mt. Bethel Community Park Foundation and the Upper Mt. Bethel Township Planning Commission. C. Included with the grant appplication was a project cost estimate of $245,795.31 prepared by Policelli of URDC, on March 28, 2013. 18. As Chair of the Board, Henckel also signed Township Resolution No. 201310 affirming the Township's required matching funds totaling $112,616.92 to participate in the Northampton County Municipal Park Acquisition and Development Program. a. Henckel's actions regarding Township Resolution No. 2013 -10 sought additional funding for the Upper Mt. Bethel Township Recreation Park and Open Space project. 1. Funds were necessary to continue the project resulting in continued payments to URDC. 19. In addition to seeking funding from alternative sources, including grants, park funding was included as line items for both the 2012 and 2013 Township fiscal year budgets. a. Throughout her service as a Board Member, Henckel consistently participated in the Township's budget approval process which included funding for the park project. b. The Township's recreation fund had an annual budgeted amount in excess of $100,000.00 for 2012 and 2013. C. Two separate park funds each had an annual budget ranging from $11,544.00 to $15,545.00 during 2012 and 2013. 20. The Township utilizes the following process for the approval and payment of bills. a. During each month's meeting, a bill list is provided to Members of the Board for review and subsequent approval. Henckel, 16 -628 P gF b. Bill lists include action taken approving all bills by a single motion. C. Included in the minutes are totals for monthly general fund and interim /ACH payments, road machinery fund, recreation fund /interim ACH payments, squid fuels fund, and a capital reserve fund. d. Upon approval of the bills, checks are signed by three Supervisors. 21. During 2012 and 2013, URDC invoices to the Township were submitted for payment to Township Manager Maureen Sterner. a. These invoices were reviewed and initially approved by Sterner and/or Supervisor Joe Battillo. 1. Battillo reviewed and approved the invoices relating to the Economic Development Strategy Study performed by URDC for the Township. b. Invoice amounts would be included as a line item on the bill list for the month that the payment was to be made. C. These invoices were approved as part of the Township's normal bill paying process as previously detailed within the findings. 22. Between 2008 and 2011, the Township issued payments totaling $132,520.20 to URDC for various projects /services which are beyond the statute of limitations [as pertaining to] this investigation. a. Payment totals by year were as follows: 2008: $56,620.61 2009: $45,593.09 2010: $16,614.50 2011: $13,692.00. b. Henckel participated in approving those payments. 23. Between 2012 and 2013, Township payments totaling $45,027.00 were made to URDC. a. Payment totals by year were as follows: 2012: $9,339.00 2013: $35,688.00 Total: $45,027.00. b. These payments were for services related to the Site Master PlanlUpper Mt. Bethel Township Recreation Park and Open Space project, as well as an Economic Development Strategy Study for the Route 611 corridor. 1. The study related to potential economic development along Route 611, specifically extension /installation of a sewer line to promote development. C. Henckel was a Member of the Board and participated in the approval of these payments as a Supervisor. 24. The following chart details Henckel's participation as a Supervisor to approve payments to URDC. Henckel, 16028 al e9- Invoice Date rolect Identifi- cation Township Invoice Approval Township Check Date owns rp Check No. Check Amount Henckel's Signature Township Meeting Date Henckel's Action Vote March 2012 1646 MS 06/11/12 14366 $2,412.00 No 06/11/12 Vote 5-0 11/20/12 1646 MS 11/26/12 14771 $6,927.00 Yes 12/10/12 Vote 5 -0 01/23/13 1646 MS 02/11/13 14922 $9,865.00 Yes 02/11/13 Vote 5 -0 04/16/13 1646 MS 05/13/13 15122 $9,954.00 Yes 05/13/13 Vote 5 -0 05/31/13 2555 NONE 06/10/13 15188 $735.00 Yes 06/10/13 Vote 5 -0 07/10/13 2555 JB 07/30/13 15268 $2,099.00 Yes 08/12/13 Vote 4 -0 08/05/13 1646 JB/MS 08/12/13 15317 $345.00 Yes 08/12/13 Vote 4 -0 07/24/13 2555 JB 08/12/13 15317 $11,220.00 Yes 08/12/13 Vote 4 -0 10/01/13 2555 JB 09/10/13 15377 $637.00 Yes 09/09/13 Vote 5 -0 09/05/13 2555 J13 10/14/13 15434 $833.00 Yes 10/14/13 Vote 5 -0 $45,027,00 JB -- Supervisor Joe Battillo MS - Township Manager Maureen Sterner 1646 — Park Master Plan 2555 -- Economic Development Plan 25. As depicted in the chart above, during 2012 and 2013 Henckel signed eight of nine checks made payable to URDC totaling $42,615.00. a. Each of these checks was signed by Henckel and two other Township officials. b. During the same time frame, Henckel also voted eight times to approve payments to URDC totaling $45,027.00. 26. In addition to approvin payments to URDC in 2012 and 2013, Henckel participated dIn votes and other ac ions of the Board regarding park initiatives and economic evelopment issues involving URDC as ighgighted below: 01/23/12 Board discussion on barn rehab, project priority list, and trails. Henckel suggested grant funding for trails and grants or fund raising for barn rehab. 07/09/12 Signed Township Resolution No. 2012 -32 using Pennsylvania Gaming Local Share Account grant funds for playground equipment and installation; participated in a 5 -0 Board vote to approve Township Resolution 1 2012 -32. 08/13/12 Henckel questioned the status of park. Township Manager Sterner informed the Board that the 2009/2010 gaming grant work was completed. 09/10/12 Henckel participated in a 5 -0 Board vote to approve a county gaming grant application. 11/12/12 Henckel participated in a 5 -0 Board vote to authorize the EDC Committee to meet with Martin Gilchrist of URDC. 12/27/12 Henckel voted yes (3 -1 recorded vote) to approve the Township's 2013 budget. Henckel, 16 -028 aT'�i'i 02/25/13 Henckel reviewed and discussed the barn committee master plan with the Board; open space grant and DCNR grant for playground equipment; Supervisor Battillo indicated that URDC's proposed 151 Phase of the Economic Development Strategy Project is the Act 537 service to the 611 corridor as well as the 1 -2 fndustnal Zone South of Portland; Township Manager Sterner reported URDC has agreed to write the DCNR application for the community park at no cost. 03/11/13 Henckel participated in a Board discussion that the Martin - Jacoby Watershed Association will be giving a donation of $2,000.00 to the community park for the playground; the Board reviewedldiscussed URDC's 3111113 proposal and scope of work for economic development. 03/25/13 Henckel participated in a 5 -0 Board vote to table URDC's Economic Development Strategy Project proposal. 04/08/13 Martin Gilchrist reviewed URDC's Economic Development Strategy Project proposal with the Board. Henckel participated in a 5 -0 Board vote to approve Phase A of project to URDC at a cost of up to $5,000.0 06/10/13 Henckel participated in Board deliberations on grant writing proposals submitted by DeGenaro Design and URDC and a subsequent 5 -0 Board vote to award to DeGenaro Design. 08/12/13 Henckel participated in a 4 -0 Board vote to authorize Township Manager Sterner to move forward with the gaming grant for 2013- 2014. 10/14/13 Henckel participated in Board discussions on Economic Development Strategy Project; meeting minutes include a motion /second with no vote recorded to release Phase B funds to URDC up to $5,500.00. 12/30/13 Henkel voted yes to approve the Township's budget for 2014 (4 -1 recorded vote). 27. In April of 2016, the Board directed Township Solicitor Ronald J. Karasek, Esquire to review whether a conflict of interest occurred during the time that Henckel was a Supervisor by "voting on Urban Research and Development Corporation (URDC) contracts and/or grants where her son, Leonard Poficelli, was an employee of URDC." a. Due to a paucity of records on file with the Township, Karasek was unable to conclude if Henckel had a conflict of interest. Henckel did not disclose her relationship to Policelli to Karasek while Henckel served as a Member of the Board. 28. During 2012 and 2013 Henckel, as a Supervisor, participated in actions of the Board concerning work performed by URDC for the Township, including but not limited to the following: a. Participated in Board discussions and official actions on park initiatives and economic development plans. b. Participated in Board actions authorizing applications for grant funding. Henckel, 16 -028 Page 1 C. Signed Township correspondence as Chair of the Board. d. Signed Township Resolutions as Chair of the Board. e. Signed the front side of Township checks issued to URDC. Voted to approve monthly bill lists which included payments to URDC. 29. During an investigative interview conducted with Henckel on July 14, 2017, Henckel confirmed regularly participating in Board discussions and taking official action involving URDC matters, including voting to approve contracted work and payment for services provided and signing corresponding Township payments. THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT HENCKEL FAILED TO REPORT ALL DIRECT /INDIRECT SOURCES OF INCOME IN EXCESS OF $1,300.00 ON STATEMENT OF FINANCIAL INTERESTS FORMS FILED FOR CALENDAR YEARS 2011, 2012, AND 2013. 30. Henckel, as a Member of the Board, was annually required to file a Statement of Financial Interests form by May 1St of each applicable year, reporting information for the prior calendar year. 31. The Township is annually provided with blank Statement of Financial Interests forms to be completed by its elected and appointed officials. a. Blank Statement of Financial Interests forms are annually provided by the State Ethics Commission to the Township Secretary for distribution. 32. Statement of Financial Interests forms on file with the Township include the following filings for Henckel for the 2011, 2012, and 2013 calendar years. a. Calendar Year: 2013 Dated: 01/28/14 on form SEC -1 Rev. 01/14 Position: Supervisor Creditors: None Direct/Indirect Income: None All other financial interests: None. b. Calendar Year: 2012 Dated: 03/06/13 on form SEC -1 Rev. 01/12 Position: Supervisor /Candidate Creditors: None Direct/lndirect Income: None All other financial interests: None. C. Calendar Year: 2011 Dated: 03/13/12 on form SEC -1 Rev. 01/12 Position: Supervisor Creditors: None Direct/Indirect Income: None All other financial interests: None. 33. Henckel failed to report the Township as a direct/indirect source of income on Statements of Financial Interests filed for the 2011, 2012, and 2013 calendaryears. a. As a Member of the Board, Henckel received compensation in the amount of $2,500.00 annually. Henckel, 16 -028 p ge T2 34. During an interview conducted by a Commission Investigator on July 14, 2017, Henckel advised that her failure to report income from the Township was an oversight. a. Henckel also confirmed regulZC participating in Board discussions and taking official action involving matters, including voting to approve contracted work and payment for services provided and signing corresponding Township payments. III. DISCUSSION: As a Supervisor for Upper Mt. Bethel Township ( "Townshi "), Northampton Countyy, from approximately 2008 through 2013, Respondent Judith L. Henckel, also referred fo herein as "Respondent," "Respondent Henckel," and "Henckel," was a public official sub11' ect to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Henckel violated Sections 1103(a), 11040), and 1105(b)(5) of the Ethics Act when she utilized the authority of her public position for the private pecuniary benefit of a member of her immediate family and/or a business with which a member of her immediate family is associated, to wit: • When she participated in discussions and official actions of the Township Board of Supervisors to authorize and/or engagelcontinue to engage Urban Research &Development Corporation to apply for grants on behalf of the Township, at a time when her son was an employee of Urban Research & Development Corporation; • When she participated in actions of the Township Board of Supervisors by voting to approve and issue payments to Urban Research & Development Corporation, at a time when her son was an employee of Urban Research & Development Corporation, and • When she failed to identify the Township as a source of income exceeding $1,300 in the a gregate on Statements of Financial Interests filed for the 2011, 2012, and 20'f3 calendar years. Per the Consent Agreement, the Investigative Division has exercised its prosecutorial discretion to nol pros the allegation under Section 1104(d) of the Ethics Act. Based upon the no[ pros, we need not address the Section 1104(d) allegation that is no longer before us. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a) Conflict of interest. --No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest." Use by a public Henckel, 16 -028 age 1-3 official or public employyee of the authority of his office or employment or any conf�dential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. The term does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. § 1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private ecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure that a person required to file the Statement of Financial Interests ( "SFI ") form must provide. Subject to certain statutory exceptions not applicable to this matter, Section 1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. The Township is governed by a five- Member Board of Supervisors ( "Board "). Supervisors receive compensation totaling $2,500.00 annually for performing Supervisor duties. During each month's regular meeting of the Board, a bill list is provided to the Supervisors for review and approval by a single motion and vote. Upon approval of the bills, Township checks are signed by three Supervisors. Henckel served as a Supervisor from approximately 2008 through 2013. Henckel served, in pertinent part, as Chair of the Board during 2012 and 2013. Leonard Policelli ( "Policelli ") is Henckel's son. Policelli is a Registered Landscape Architect by profession, and he has been employed by Urban Research & Development Corporation ( "URDC ") for approximately 25 years. URDC offers various consulting services to governments and non - profit sector businesses, primarily in Pennsylvania and Maryland. URDC provides consulting services pertaining. to comprehensive planning and zoning, park and recreation and open space plans, site planning, and other matters. URDC's website identifies Policelli as a project manager. On June 5, 2003, the Township received a donation of approximately 92 acres of land (the "Donated Land ") from Reliant Energy Mid Atlantic Power Holdings, LLC. The Donated Land was intended to be used as a community park and for open space preservation. In or about June 2003, the Board engaged URDC to design a Comprehensive Recreation Park and Open Space Plan for the Donated Land (the "Comprehensive Plan "). Policelli was the URDC employee primarily responsible for Henckel, 16 -028 aTrge�� developing the Comprehensive Plan, which was funded through a Pennsylvania Department of Conservation and Natural Resources project grant. The Comprehensive Plan was completed approximately three years before Henckel became a Member of the Board. Following completion of the Comprehensive Plan, the Township decided to utilize URDC to complete a site master plan for the Donated Land. In April 2006, the Township and URDC executed a "master agreement" that engaged URDC to complete the Upper Mt. Bethel Township Recreation Park and Open Space Site Master Plan ( "Site Master Plan "), which pertained to a project involving the Donated Land (the "Donated Land Project "). Funding for the Donated Land Project originated from a combination of grants, donations, and general Township appropriations. The Site Master Plan was designed such that work would be completed in phases as funding became available. URDC was to provide various services related to the preparation of construction plans and specifications Tor the construction of phases 1, 2, and 3 of the Site Master Plan. The scheduled completion date for phases 1, 2, and 3 of the Site Master Plan was December 31, 2007. The Site Master Plan was subsequently amended to extend the time frame to complete the various phases to June 2012. By the time Henckel became a Member of the Board in January 2008, the Township had issued payments totaling at least $138,471.09 to URDC for work related to the Site Master Plan/Donated Land Project. The Township continued to use URDC for services related to the Site Master Plan/Donated Land Project throughout Henckel's tenure on the Board from 2008 through 2013. At no time while Henckel served on the Board did she publicly disclose at a meeting of the Board that URDC employee Policeili was her son. During 2012 and 2013, Henckel, in her public position as a Member of the Board, took official action pertaining to work that URDC performed for the Township.' On July 9, 2012, Henckel participated in a unanimous Board vote to approve Township Resolution No. 2012 -32, which requested a grant of $77,917.00 from the Commonwealth Financing Authority's Pennsylvania Gaming Local Share Account for a Y ayground area for the Donated Land Project. Henckel, as Chair of the Board, signed ownship Resolution No. 2012 -32. Henckel, as Chair of the Board, also signed Township Resolution No. 2013 -10, which affirmed the Township's required matching funds totaling $112,616.92 to participate in the Northampton County Municipal Park Acquisition and Development Program. Henckel's actions as to the aforesaid Township Resolutions sought additional funding that was necessary for the continuation of the Donated Land Project and the resultant payments to URDC. Between approximately March 2012 and September 2013, URDC submitted ten invoices to the Township for services related to the Site Master Plan/Donated Land Project and an Economic Development Strategy Study for the Route 611 corridor. between .tune 11, 2012, and October 14, 2013, Henckel participated in multiple unanimous Board votes that approved bill lists containing payments totaling $45,027.00 to URDC. Henckel signed eight of nine Township checks that were issued to URDC upon approval of the aforesaid bilf lists. The checks`to URDC that were signed by Henckel totaled $42,615.00. As detailed in Fact Finding 26, in addition to approving payments to URDC in 2012 and 2013, Henckel participated in various discussions and votes of the Board regarding park initiatives and economic development issues involving URDC. 1 Based upon the Stipulated Findings, the parties are in agreement that due to the five -year statute of limitations set forth at Section 1108(m) of the Ethics Act, 65 Pa.C.S. 1108(m), our review in this matter is limited to the time period from 2012 forward. See, Fact Findings 14, 22. Henckel, 16 -028 Page With regard to Henckel's SFIs, Henckel failed to disclose the Township as a direct or indirect source of income totaling in the aggregate $1,300.00 or more on her SFIs filed for the 2011, 2012, and 2013 calendar years. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Judith Henckel, in her capacity as a Supervisor for Upper Mt. Bethel Township, Northampton County, utilized the authority of her public position which resulted in a pecuniary [benefit] to a business with which a member of her immediate family is associated. b. That a violation of Section 1105(b)(5) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Judith Henckel, in her capacity as a Supervisor for Upper Mt: Bethel Township, Northampton County, failed to identify the Township as a source of direct or indirect income on Statements of Financial Interests filed for the 2011, 2012, and 2013 calendar years. C. That no action will be undertaken pursuant to Section 1104(d) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(d). 4. Henckel agrees to make payment in the amount of $1,500.00 in settlement of this matter as follows: a. $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. b. $500.00 which represents a portion of the expenses and costs incurred by the State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. 5. Henckel agrees to file complete and accurate amended Statements of Financial Interests with Upper Mt. Bethel Township, through the Pennsylvania State Ethics Commission, Henckel 16 -028 P gel for calendar years 2011, 2012, and 2013 within thirty (30) days of the issuance of the final adjudication in this matter. 6. Henckel agrees to not accept any reimbursement, compensation or other payment from Upper Mt. Bethel Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. The Investigative Division will recommend thatthe State Ethics Commission take no further action in this matter; and make no specific recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further. Consent Agreement, at 2 -3. In considering the Consent Agreement, we accept the parties' recommendation for a finding that a violation of Section 1103(a) of the Ethics Act occurred when Henckel, in her capacity as a Supervisor, utilized the authority of her public position, which resulted in a pecuniary benefit to a business with which a member of her immediate family is associated. URDC is a business with which Henckel's son is associated as an employee. Prior to Henckel becoming a Supervisor in 2008, the Township enggaged URDC to complete the Site Master Plan, which pertained to the Donated Land Project. Henckel utilized the authority of her public position with regard to various matters financially impacting URDC, including: (1) when she participated in multiple unanimous Board votes in 2012 and 2013 that approved bill lists containing payments totaling $45,027.00 to URDC for services related to the Site Master Plan /Donated Land Project and an Economic Development Strategy Study for the Route 611 corridor; and (2) when she signed eight Township checks totaling $42,615.00 that were issued to URDC upon approval of the aforesaid bill lists. Based upon the Stipulated Findings and the Consent Agreement, we hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Henckel, in her capacity as a Supervisor, utilized the authority of her public position, which resulted in a pecuniary benefit to a business with which a member of her immediate family is associated. We agree with the arties, and we hold, that a violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Henckel, in her capacity as a Supervisor, failed to identify the Township as a direct or indirect source of income on SFIs filed for the 2011, 2012, and 2013 calendar years. As part of the Consent Agreement, Henckel has agreed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Henckel has further agreed to make payment to this Commission in the amount of $500.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Henckel, 16 -028 Page t7 Henckel has agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. Henckel has also agreed to file complete and accurate amended SFIs with the Township, through this Commission, for the 2011, 2012, and 2013 calendar years within thirty (30) days of the issuance of the final adjudication in this matter. We determine that the Consent Agreement submitted by the parties sets forth a proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, per the Consent Agreement of the parties, Henckel is directed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Henckel is further directed to make payment to this Commission in the amount of $500.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made ayable to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Henckel is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent she has not already done so, Henckel is directed to file complete and accurate amended SFIs with the Township, through this Commission, for the 2011, 2012, and 2013 calendar years by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. As a Supervisor for Upper Mt. Bethel Township ( "Township "), Northampton Count, from approximately 2008 through 2013, Respondent Judith L. Henckel ( "Henckel') was a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Henckel violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when, in her capacity as a Township Supervisor, she utilized the authority of her public position, which resulted in a pecuniary benefit to a business with which a member of her immediate family is associated. 3. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred when Henckel, in her capacity as a Township Supervisor, failed to identiffy the Township as a direct or indirect source of income on Statements of Financial Interests filed for the 2011, 2012, and 2013 calendar years. In Re: Judith L. Henckel, File Docket: 16 -028 Respondent : Date Decided: 11/28/17 Date Mailed: 12/4/17 ORDER NO. 1724 1. Judith L. Henckel ( "Henckel ") violated Section 1103(a) of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1103(a), when, in her capacity as a Supervisor for Upper Mt. Bethel Township ( "Township ), Northampton County, she utilized the authority of her public position, which resulted in a pecuniary benefit to a business with which a member of her immediate family is associated. 2. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105�b)(5), occurred when Henckel, in her capacity as a Township Supervisor, failed to identi y the Township as a direct or indirect source of income on Statements of Financial Interests filed for the 2011, 2012, and 2013 calendar years. 3. Per the Consent Agreement of the parties, Henckel is directed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no laterthan the thirtieth (30ih) day after the mairing date of this Order. 4. Per the Consent Agreement of the parties, Henckel is further directed to make payment to the Pennsylvania State Ethics Commission in the amount of $500.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. 5. Per the Consent Agreement of the parties, Henckel is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 6. To the extent she has not already done so, Henckel is directed to file complete and accurate amended Statements of Financial Interests for the 2011, 2012, and 2013 calendar years with the Township, througgh the Pennsylvania State Ethics Commission, by no later than the thirtieth (30th) day after the mailing date of this Order. 7. Compliance with paragraphs 3, 4, 5, and 6 of this Order will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION, ,� 4 �c o as o a e a, air