Loading...
HomeMy WebLinkAbout1765 HundertmarkPHONE: 717-783-1610 STATE ETHICS COMMISSION TOLL FREE: 1-800-932-0936 FINANCE BUILDING 613 NORTH STREET, ROOM 309 HARRISBURG, PA 17120-0400 In Re: Christine Hundertmark File Docket: Respondent X-ref: Date Decided Date Mailed: FACSIMILE: 717-787-0806 VVEBSITE: www.ethics.pa.gov 19-001 Order No. 1765 1 /22/20 1127/20 Before: Nicholas A. Colafella, Chair Mark R. Corrigan, Vice Chair Roger Nick Melanie DePalma Michael A. Schwartz Shelley Y. Simms 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 Investigative 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 Answer was filed and a hearing was requested. 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. I, ALLEGATIONS: That Christine Hundertmark, a public official/public employee in her capacity as a Member of the Bethlehem -Center School District Board of Directors, Washington County, violated Sections 1103(a), 1104(a), and 1104(d) of the State Ethics Act (Act 93 of 1998) when she utilized the authority of her public position for a private pecuniary benefit by participating in discussions and actions of the Board resulting in her nomination and subsequent appointment as the School Board Secretary, at an annual stipend of $975.00; and when she failed to file Statements of Financial Interests for calendar years 2016 and 2017 with the Bethlehem -Center School District. II. FINDINGS: Christine Hundertmark ("Hundertmark") has served as a Member of the Bethlehem -Center School District ("District") Board of Directors (`Board"), Washington County, since December 1, 2015. a. Hundertmark has served as the Secretary of the Board from July 1, 2016, through the present. 2. The District is governed by a nine -Member Board. a. The Board holds an agenda meeting and a legislative meeting on the fourth Monday of each month. Hundertmark, 19-001 Page 2 1. Agenda meetings are held immediately prior to the legislative meetings. 2. Voting occurs solely at legislative meetings. b. Special meetings are held as necessary. 3. Voting at Board legislative meetings occurs via individual roll call vote and/or group aye/nay voice vote depending on the issue before the Board. a. Voting on District business relating to the ex enditure of funds (e.g., personnel decisions, Board officer elections, etc. occurs via individual roll call vote. b. Voting on District business relating to routine and/or procedural matters occurs via group aye/nay voice vote. Any abstention or objection cast triggers an individual roil call vote. 2. Meeting minutes only reflect the individual(s) who cast an abstention or objection. 3. Affirming (aye) votes are not recorded. C. At the subsequent legislative meeting, minutes of the District's prior meetings are reviewed for accuracy, following which a vote is taken to adopt/approve the official minutes. 4. In the event of an abstention, the District utilizes abstention forms to document the individual Board Members who abstained from action/vote. a. Board Members are responsible for submitting an abstention form with the Board's Recording Secretary for any action from which they abstained. 5. On or by the Friday prior to the legislative meeting, the Board receives informational packets agenda packets) via email from the Administrative Assistant to the Superintendent. a. Examples of items contained within the informational packets include but are not limited to the upcoming legislative meeting agenda, a list of approved substitutes, [information for] applicants for District positions (e.g., resume, cover letter, letter of recommendation) and a bill list. 6. The motion and vote to approve the Treasurer's Report and bill list occur at each Board legislative meeting. a. The motion and vote regarding approval of the Treasurer's Report occur as a single, all -encompassing aye/nay group vote. b. The motion and vote regarding approval of the payment of bills occur as a separate, all -encompassing roll call vote. 7. Payment checks to vendors are held until the bill list is approved at the legislative meeting. a. An exception may be made for normal recurring bills, minor accounts that may incur penalties, and/or Board stipends. Hundertmark, 19-001 Page 3 8. Signature authority over District accounts is maintained by the Board Secretary, Board Treasurer, Board President, and Board Vice President. a. The number of signatures required on District checks is account specific. 1. The District's general fund account requires a minimum of three authorized signatories per check. b. District checks are generated electronically by the Business Office. 1. The Board Treasurer's signature is electronically printed on the checks when drafted. C. All other required signatures are live signatures. THE FOLLOWING FINDINGS PERTAIN TO HUNDERTMARK'S PARTICIPATION IN ACTIONS OF THE BOARD RESULTING IN HER NOMINATION AND ELECTION AS THE BOARD SECRETARY AND HER SUBSEQUENT COMPENSATION. 9. Section 401 of the Pennsylvania Public School Code addresses the beginning of the school year and organizational meetings. a. Section 401(b) states in part that all school districts of the second, third, and fourth class shall begin the school year on the first day of July of each year and the school directors are to meet and organize annually during the first week of December. 10. Section 404 of the Pennsylvania Public School Code requires that each district of the third class elect a secretary to a four-year term beginning on July 15t a. Vacancies in the office of secretary are to be filled for the unexpired term. 11. The Board Secretary and the Board Treasurer each receive an annual stipend of $975.00 for the additional duties and responsibilities associated with their respective positions. a. The Board Secretary, in part, is responsible for the following: 1. Keeping a correct and proper record of all proceedings of the Board and preparing such reports and keeping such accounts as required by law; 2. Preparing and signing orders on the treasury for payment of bills, contracts, etc.; and [3] Serving as an authorized District signatory on District checks issued to vendors. 12. At the Board's December 1, 2015, reorganization meeting, the Board elected Valarie Caprini ("Caprini") as the Board Secretary. a. Caprini was elected to fill the unexpired Board Secretary term of Dana Packrall ("Packrall"). 1. Packrall's term as an elected Board Member expired on November 30, 2015. b. Caprini's term as an elected Board Member also expired on November 30, Hundertmark, 19-001 Page 2015. 1. Although she was no longer a Board Member, the Board appointed Caprini as the Board Secretary. 2. Caprini's stipend as the Board Secretary was prorated for the remainder of the term. 13. At the Board's May 23, 2016, legislative meeting, Board President Donald Crile 2Crile") for nominations for candidates to fill Caprini's expiring term as the rd Secretary. a. Board Member Laura Frost ("Frost") nominated Hundertmark for the position. b. Board Member Karen Drill ("Drill") nominated Caprini for the position. C. No other individuals were nominated. d. Hundertmark and Caprini accepted their respective nominations. 14. Upon closing the nominations, the Board conducted a roll call vote regarding the nominees for the position of Board Secretary. a. The initial vote resulted in a 4-4 tie. 1. Board Member Thomas Gustovich was absent. 2. Board Members Crile, Drill, John Greenlee, and James Gwyer cast votes for Caprini. 3. Hundertmark and Board Members Frost, Katruska, and Trump cast votes for Hundertmark. aa. Hundertmark utilized the authority of her public office when she cast a vote for herself in furtherance of her appointment as the Board Secretary. bb. The vote would not have resulted in a tie had Hundertmark abstained from the vote and Caprini would have had the majority of votes for the position. b. Caprini withdrew herself from consideration for the Board Secretary position as a result of the tie vote. 15. The Board conducted a second vote to elect Hundertmark as the Board Secretary upon Caprini withdrawing herself from consideration. a. Hundertmark was elected to serve as the Board Secretary for a four-year term beginning July 1, 2016, and terminating June 30, 2020, at an annual stipend of $975.00 via 7-0-1 vote, with Board Member Drill abstaining. 1. Drill abstained from the second vote for the stated reason of believing the candidate(s) should have more experience. 2. Drill abstained despite casting a vote in favor of Caprini in the vote that occurred immediately before. Hundertmark, 19-001 page b. Hundertmark was present at the meeting and participated in a Board vote in favor of her election to the compensated position of Board Secretary. 16. Hundertmark participated in the approval of District bill lists which identified compensation to be issued to her as the Board Secretary. a. Hundertmark was present for all five legislative meetings where District bill lists that issued payment to her as the Board Secretary were approved. b. Hundertmark voted in favor of approving all five District bill lists authorizing payment to her as the Board Secretary. C. Hundertmark's use of office in approving paychecks issued to herself is detailed in the following chart. 17. As the Board Secretary, Hundertmark received annual compensation from the District totaling $2,925.00 for the period from 2017 through January 2019. LEGISLATIVE ROLL MEETING HUNDERTMARK CALL HUNDERTMARK'S APPROVED DATE PRESENT VOTE VOTE STIPEND AMOUNT 0212812017 es 8-0 Aye $487.50 06/26/2017 Yes 8-0 Aye $487.50 01/22/2018 Yes 9-0 Aye $487.50 08/20/2018 Yes 8-0 Aye $487.50 01/22/2019 Yes 8-1 Aye $975.00 a. Hundertmark served as a District signatory on each check in her capacity as the Board Secretary. 1. Hundertmark, as the Board Secretary, possesses signature authority on all District accounts. b. Hundertmark endorsed and deposited each of the District paychecks into her private bank account. THE FOLLOWING FINDINGS PERTAIN TO HUNDERTMARK'S STATEMENT OF FINANCIAL INTERESTS FORMS FILED WITH THE DISTRICT FOR CALENDAR YEARS 2016 AND 2017. 18. On January 23, 2019, a Statement of Financial Interests compliance review was conducted for the District at the District. a. Initially the District could not locate any Statement of Financial Interests forms pertaining to calendar year 2016. b. The District subsequently located calendar year 2016 Statement of Financial Interests forms and provided them to the Investigative Division on April 8, 2019. 19. The District had no Statement of Financial Interests on file for Hundertmark for calendar year 2017. a. Hundertmark provided a copy of her properly filed calendar year 2017 Statement of Financial Interests to Commission representatives pursuant to a meeting with Hundertmark on August 2, 2019. III. DISCUSSION: Hundertmark, 19-001 Page 6 As a Member of the Board of Directors ("Board") of the Bethlehem -Center School District ("District"), Washington County, Pennsylvania, since December 1, 2015, and as the Board Secretary from July 1, 2016, throw h the present, Christine Hundertmark, also referred to herein as "Respondent," "Respondent Hundertmark," and "Hundertmark," has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et sec,. The allegations are that Hundertmark violated Sections 1103(a), 1104(a), and 1104(d) of the Ethics Act when she utilized the authority of her public position as a Member of the Board for a private pecuniary benefit by participating in discussions and actions of the Board resulting in her nomination and subsequent apppointment as the Board Secretary at an annual stipend of $975.00; and when she failed to file Statements of Financial Interests ("SFIs") for calendar years 2016 and 2017 with the District. Per the Consent Agreement of the parties, the Investigative Division has exercised its prosecutorial discretion to withdraw the allegation under Section 1104(a) of the Ethics Act. Therefore, we need not address the Section 1104(a) allegation that is no longer before us. Pursuant to Section 1103(a) of the Ethics Act, a public officiallpublic 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 official or public employee of the authority of his office or employment or any confidential 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 pecuniary benefit of the public official/public employee himself, any member of his immediate fami , or a business with which he or a member of his immediate family is associated. Section 1104(d) of the Ethics Act provides that no public official shall be allowed to take the oath of office, or enter or continue upon his duties, nor shall he receive Hundertmark, 19-001 Page compensation from public funds, unless he has filed an SFI as required by the Ethics Act. 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 Board consists of nine Members. Hundertmark has served as a Member of the Board since December 1, 2015. The Board Secretary's duties and responsibilities include keeping a correct and proper record of all proceedings of the Board and serving as an authorized District signatory on District checks. The Board Secretary receives an annual stipend of $975.00. At the December 1, 2015, reorganization meeting of the Board, Valarie Caprini ("Caprini") was elected to serve as the Board Secretary for the remainder of the unexpired term of the prior Board Secretary. At the May 23, 2016, legislative meeting of the Board, Board President Donald Crile called for nominations for candidates to serve as the Board Secretary for a four-year term beginning July 1, 2016. Board Member Karen Drill nominated Caprini for the office of Board Secretary, and Board Member Laura Frost nominated Hundertmark for the office of Board Secretary. No other individuals were nominated for the office of Board Secretary, and each nominee accepted her nomination. After the nominations for the office of Board Secretary were closed, the Board conducted a roll call vote with regard to the nominees. Four Members of the Board, including Hundertmark, voted for Hundertmark, and four Members of the Board voted for Caprini. One Member of the Board was absent. If Hundertmark would have abstained from the vote, the vote would not have been tied 4-4, and Caprini would have received the majority of the votes. As a result of the tie vote, Caprini withdrew herself from consideration for the office of Board Secretary. The Board then conducted a second vote, and Hundertmark once again voted in favor of her election as the Board Secretary. The Board's second vote resulted in Hundertmark being elected to serve as the Board Secretary for a four-year term beginning July 1, 2016, and terminating June 30, 2020, at an annual stipend of $975.00. Between February 28, 2017, and January 22, 2019, Hundertmark, as a Member of the Board, voted to approve five District bill lists which identified compensation totaling $2,925.00 that was to be paid to her for serving as the Board Secretary. Hundertmark, as the Board Secretary and an authorized District signatory, signed each check that was issued to her for serving as the Board Secretary. Having hig hli hted the Stipulated Findings and issues before us, we shall now apply the Ethics Act10 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: That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Christine Hundertmark, as a Member of the Bethlehem - Center School District Board of Directors, participating in discussions and actions of the Board of Directors resulting in her nomination Hundertmark, 19-001 Page 8 and subsequent appointment as the School Board Secretary. b. The Investigative Division withdraws the allegation(s) as to Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(a). C. The Investigative Division seeks no disgorgement pursuant to Section 1104(d) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(d). Hundertmark agrees to make payment in the amount of $2,925.00 in settlement of this matter payable to the Bethlehem -Center School District and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Hundertmark agrees to not accept any reimbursement, compensation or other payment from the Bethlehem -Center School District representing a full or partial reimbursement of the amount paid in settlement of this matter. The Investigative Division will recommend that the 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 apppropriate 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. 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 in relation to Hundertmark, as a Member of the Board, participating in discussions and actions of the Board resulting in her nomination and subsequent appointment as the Board Secretary. Hundertmark used the authority of her office as a Member of the Board on May 23, 2016, when she participated in two Board votes regarding the election of a Board Secretary. As a result of Hundertmark voting in favor of her election as the Board Secretary during the first Board vote, the vote was a 4-4 tie between Hundertmark and the other candidate for the office of Board Secretary, which led the other candidate to withdraw herself from consideration for the office. Hundertmark then participated in a second Board vote which elected her as the Board Secretary for a four-year term beginning July 1, 2016, and terminating June 30, 2020, at an annual stipend of $975.00. Hundertmark further used the authority of her office as a Member of the Board when, between February 28, 2017, and January 22, 2019, she voted to approve five District bill lists which identified compensation totaling $2,925.00 that was to be paid to her for serving as the Board Secretary. Based upon the Stipulated Findings and Consent Agreement, we hold that Hundertmark, as a Member of the Board, violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to her participating in discussions and actions of the Board resulting in her nomination and subsequent appointment as the Board Secretary. Hundertmark, 19-001 Page 9 We note that the Investigative Division is not seeking any dis orgement of Hundertmark's Board Secretary compensation pursuant to Section 1104(d} of the Ethics Act, 65 Pa.C.S. § 1104(d). As part of the Consent Agreement, Hundertmark has agreed to make payment in the amount of $2,925.00 payable to the Bethlehem -Center School District and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Hundertmark has agreed to not accept any reimbursement, compensation or other payment from the District representing a full or partial reimbursement of the amount paid in settlement of 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, Hundertmark is directed to make payment in the amount of $2,925.00 payable to the Bethlehem -Center School District and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Hundertmark is directed to not accept any reimbursement, compensation or other payment from the District representing a full or partial reimbursement of the amount paid in settlement of this matter. 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 Member of the Board of Directors ("Board") of the Bethlehem -Center School District ("District"), Washington County, Pennsylvania, since December 1, 2015, and as the Board Secretary from July 1, 2016, through the present, Respondent Christine Hundertmark ("Hundertmark") has been a public official subJ'ect to the revisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. p§ 1101 et seg. 2. Hundertmark, as a Member of the Board, violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § I I03(a), in relation to her participating in discussions and actions of the Board resulting in her nomination andsubsequentappointment as the Board Secretary. In Re: Christine Hundertmark, Respondent File Docket: 19-001 Date Decided: 1122/20 Date Mailed: 1/27/20 ORDER NO. 1765 Christine Hundertmark ("Hundertmark"), as a Member of the Board of Directors 2"Board") of the Bethlehem -Center School District ("District"), Washington County, ennsylvania, violated Section 1103(a)) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1103(a), in relation to her participating in discussions and actions of the Board resulting in her nomination and subsequent appointment as the Board Secretary. 2. Per the Consent Agreement of the parties, Hundertmark is directed to make payment in the amount of $2,925.00 payable to the Bethlehem -Center School District and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. 3. Per the Consent Agreement of the parties, Hundertmark is further directed to not accept any reimbursement, compensation or other payment from the District representing a full or partial reimbursement of the amount paid in settlement of this matter. 4. Compliance with paragraphs 2 and 3 of this Order will result in the closing of this case with no further action by this Commission. a. Non-compliance will result in the institution of an order enforcement action BY THE COMMISSION, iolas A. '