HomeMy WebLinkAbout857 StahlIn Re: Loren G. Stahl
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
: File Docket:
: Date Decided:
: Date Mailed:
Before: James M. Howley,
Daneen E. Reese,
Roy W. Wilt
Austin M. Lee
Allan M. Kluger
92- 046 -C2
September 15, 1992
September 18, 1992
Chair
Vice Chair
The State Ethics Commission received complaints regarding
possible violations of the State Ethics Law, Act No. 170 of 1978
and Act No. 9 of 1989. Written notice, of the specific allegations
was served at the commencement of the investigation. A Findings
Report was issued and:served, upon completion of the investigation,
which constituted the Complaint by the Investigation Division. An
Answer was filed and a hearing was waived. A Consent Order was
submitted by the parties to the Commission for consideration which
was subsequently approved. This adjudication of the Commission is
hereby issued which sets forth the individual Allegations, Findings
of Fact, Discussion, Conclusions of Law and Order.
This adjudication is final and will be made available as a
public document fifteen days after issuance. However,
may be requested which will defer public release of
this adjudication pending action on the request by the Commission.
A request for reconsideration, however, does not affect the
finality of this adjudication. A reconsideration request must be
received at this Commission within fifteen days of issuance and
must include a detailed explanation of the reasons as to why
reconsideration should be granted in conformity with 51 Pa. Code
§2.38.
The files in this case will remain confidential in accordance
with Section 8(a) of Act 170 of 1978 and Act 9 of 1989, 65 P.S.
§408(h), during the fifteen day period and no one unless the right
to challenge this Order is waived, may violate confidentiality by
releasing, discussing or circulating this Order. However,
confidentiality does not preclude discussing this case with an
attorney at law.
Any person who violates confidentiality of the Ethics Act is
guilty of a misdemeanor subject to a fine of not more than $1,000
or imprisonment for not more than one year, 65 P.S. §409(e).
Stahl, 92- 046 -C2
Page 2
I. AL4EGATION:
A. That Loren G. Stahl violated the following provision of the
Public Official and Employees Ethics Act (Act 9 of 1989), when
he, a Supervisor for Conemaugh Township, Somerset County,
received compensation not provided for by law to serve as
Pension Administrator for the township:
Section 3. Restricted activities.
(a) No public official or public employee
shall engage in conduct that constitutes a
conflict of interest. 65 P.S. §402(a).
B. That Loren G. Stahl violated the following provisions of the
State Ethics Act (Act 170 of 1978), when he received
compensation not provided for by law when the township paid
for vehicle insurance for his personal vehicle, and when he
failed to file a Statement of Financial Interest for the 1986
calendar year: .
Section 3. Restricted activities.
(a) No public official or public employee
shall use his public office for any
confidential information received through his
holding public office to obtain financial gain
other than compensation provided by law for
himself, member of his immediate family, or a.e_,
business with which he is associated. 65 P.S.
S403(a ).
Section 4. Statement of financial interest
required to be filed.
(a) Each public employee employed by the
Commonwealth shall file a Statement of
Financial Interest for the preceding calendar
year with the Department, Agency, or Bureau in
which he is employed no later than May 1st of
each year that he holds such a position and of
the year after he leaves such a position. Any
other public employee shall file a Statement
of Financial Interest with the governing
authority of the political subdivision by
which he is employed no later than May 1st of
each year that he holds such a position and of
the year after he leaves such a position. 65
P.S. $404(a).
44h1, 92- 046 -C2
Page 3
II. FINDINGS:
1. Loren Stahl has served as an elected Conemaugh Township
Supervisor since January 6, 1986.
a. Stahl was appointed roadmaster from 1986 through 1991
inclusive.
b. Stahl was also appointed township secretary /treasurer
from 1988 through 1991 inclusive.
2. Conemaugh Township records do not include daily hours worked
or start and stop times for township supervisors serving as
roadmasters.
a. Township supervisors serving as roadmasters are expected
to work at least forty hours per week.
b. Supervisor / roadmasters do not utilize a time clock.
c. Supervisoriroadmasters do not fill out daily activity
sheets indicating work performed for the township.
3. Supervisors serving as secretary /treasurer are expected to
perform their duties separate and independent of roadmaster
duties.
a. They do not utilize a time clock.
b.
They do not fill out daily activity sheets indicating
duties performed.
4. Conemaugh Township's Board of Auditor's approved compensation
for the township's supervisor /roadmaster, secretary /treasurer
and vehicle allowances at annual reorganization meetings as
follows:
a. January 7, 1986:
"A motion was made to keep (the) salaries of the
supervisors the same. The salaries will remain
$11,433.00. The truck expense will also remain the same,
$4200.00 a year. The secretary /treasurer will receive
$7800.00 a year, the same as last year. The newly
elected Supervisor, Loren Stahl, will receive $2,000.00
a year as Supervisor according to Ordinance 576 ".
Present: Grace Kaltenbaugh, Ida Firm, Shirley Kaufman.
b. January 6, 1987:
Stahl,, 92- 046 -C2
Page 4
"A motion was made to keep the salaries of the
supervisor / roadmaster the same. The salary will remain
$11,433.00/$476.37 semi - monthly. The truck expense will
remain at $4200.00 a year, $350.00 monthly. (The)
Secretary /treasurer will receive $7800.00 a year, (also)
the same as last year."
Present: Grace Kaltenbaugh, Ida Firm, Shirley Kaufman
c. January 5, 1988:
"A motion was made to give a 5% increase in salary (to)
the roadmaster(s). It will be increased to
$12,004.80 from $11,433.00. The increase will be $571.65
a year, $47.63 a month. The truck expense will remain
the same, $4200.00, $350.00 a month. The salary (of) the
secretary /treasurer stays at $7800.00 a year. The
increase to $2,000.00 for meetings will be given to Mr.
Gindlesperger, the new supervisor under Ordinance 576.
Mr. Intihar receives $25.00 per meeting (while), Mr.
Stahl and Mr. Gindlesperger receive $2,000.00 yearly for
meetings."
Present: Ida Firm, Grace Kaltenbaugh, Shirley Kaufman.
d. January 4, 1989:
"The roadmasters requested a 16.66 percent raise which is
$2,000.00 more a -year. Several tax payers of Conemaugh
Township who wanted the 16.66% increase attended the
meeting. The increase was turned down. A motion was
made to give an 8.5% increase in salary to the
roadmasters. It will be increased from $12,004.80 to
$13,025.21 a year. The increase will be $1,020.41 a
year. The truck expense will remain the same at $4200.00
a year, $350.00 a month. The secretary /treasurer's
salary will remain at $7800.00 a year. Meetings are
$2,000.00 a year for Marvin Gindlesperger and Loren
Stahl, $25.00 a meeting for William Intihar. (This)
brings (the) total of all salaries to $55,975.63, plus
$7800.00 for (the) secretary."
Present: Ida Firm, Grace Kaltenbaugh, Shirley Kaufman.
e. January 3, 1990:
"A motion was made by the Conemaugh Township Supervisors
to name Marvin Gindlesperger, Loren Stahl and Robert
Barrett as Roadmasters. (A) salary was requested (of)
$16,640.00, two auditors voted for (a) 5% increase
amounting to $651.26, (for a) total (of) $13,676.47.
S., 92- 046 -C2
Page 5
William Thomas voted nay. The Secretary /treasurer was
requesting $8500.00, he received $7800.00. A $240.00
increase was given. The truck expense will remain at
$4200.00, (a) request was made for $5,000.00. The
supervisors will get a Christmas bonus not to exceed
$50.00."
Recommendation: "If wages are to be negotiated next
year, the auditors are to be
notified four weeks before the first
Tuesday after the first Monday in
1991."
Present: Grace Kaltenbaugh, Shirley Kaufman, William
Thomas, III.
f. January 8, 1991:
"The auditors approved (a) salary increase of
$600.00, 4.387% for the (supervisor /roadmasters) salary.
It will amount to a total of $14,276.47. There will be
no additional compensation for the truck allowance and no
additional compensation for secretary /treasurer. (The)
motion was made by Grace Kaltenbaugh and seconded by
William Thomas. The auditors declined the roadmaster's
request for a 10% (increase) for (the) truck allowance
and 10% for (the) secretary /treasurer."
"In 1991 the auditors are recommending the formation of
a committee to evaluate the compensation of roadmasters.
This committee is to be organized by the auditors."
Note: To date, no such committee was formed.
Present: William Thomas, III, Shirley J. Kaufman, Grace
Kaltenbaugh.
5. Township Roadmasters including Stahl receive $4200.00 per year
personal truck allowance as approved by the township auditors.
(See Finding #4).
a. This amount is paid to all full time working roadmasters.
b. Conemaugh Township does not own any light duty pick -up
trucks and relies upon the Roadmasters trucks for
township business.
c. The truck allowance is to cover all expenses associated
with the vehicles use including:
1. Maintenance and upkeep
Stithl,, 92- 046 -C2
Page 6
2. Depreciation
3. Gasoline
d. The township has no written policy regarding what the
vehicle allowance covers.
e. Conemaugh Township also pays the insurance on these
vehicles. This is separate and apart from the $4,200
vehicle allowance.
f . This allowance has been approved by the Township Board of
Auditors.
6. W -2 Wage and Tax Statements on file with Conemaugh Township
indicate the following annual disbursements were made to Loren
Stahl:
a. 1986 - $11,430.00
b. 1987 - $11,432.88
c. 1988 - $19,804.80
d. 1989 - $22,609.78
e. 1990 - $24,885.14
f. The listed amounts are for work Stahl _.performed as
one of the township roadmasters between 1986 and 1990.
Also included is additional pay he received as
secretary /treasurer from 1988 through 1990.
The above listed amounts do not include any payments
Stahl received for his vehicle allowance or as Pension
Administrator (see Finding #26).
7. Conemaugh Township maintains a pension for the Police
Department and non - uniformed employees.
8. Conemaugh Township has a Pension Board to oversee the Police
and Non - Uniform Pension Plans.
a. Board membership includes:
1. 1989:
Plan Administrator: Loren Stahl
Employee representative: Larry Zimmerman
Police representative: Ronald Imier
Resident: Wayne Naugle
2. 1990:
., 92- 046 -C2
Page 7
3. 1991:
1.
Plan Administrator: Loren Stahl
Employee representative: Larry Zimmerman
Police representative: Ronald Imler
Resident: Wayne Naugle
Plan Administrator: Loren Stahl
Employee representative: Larry Zimmerman
Police representative: Ronald Imler
Resident: Wayne Naugle
b. Pension Board meetings were held on:
Tuesday, July 19, 1989, 1:00 PM
Wednesday, November 21, 1990, 8:00 AM
Tuesday, December 4, 1990, 9;00 AM
Wednesday, January 23, 1991, 9:00 AM
c. Loren Stahl was in attendance at all of the above
mentioned meetings.
d. Meetings were held during times Stahl was being
compensated for either secretary /treasurer or roadmaster
duties.
Stahl did not receive any additional pay for
attending Pension Board meetings.
9. Conemaugh Township records include a job description for
the position of township administrator. Township
Administrator is synonymous with secretary /treasurer.
a. From January, 1988 through December, 1991, Stahl
assumed these duties.
b. Duties for the position of township administrator
include:
1. Supervision of office staff
2. Approval of leave requests
3. Evaluation of work performance
4. Assist supervisors in carrying out
administrative tasks.
5. Collating information on Ordinances, purchasing
requests and union business
6. Manaaina township insurance plans and benefit
oackaaes.
,Stahl, 92- 046 -C2
Page 8
7. Act as liaison to insurance carriers.
8. Responsible for all financial matters of the
township.
9. Payroll and specified accounts.
10. Posting and paying all authorized expenditures.
11. Investment accounts.
10. Conemaugh Township Board of Supervisors took action to appoint
the township secretary /treasurer to the position of. Pension
Plan Administrator annually between 1986 and 1991.
a. Toath served in this capacity during 1986 and 1987.
b. Loren Stahl served in this capacity from 1988 through
1991.
11. Minutes of the Conemaugh Township Pension Board include the
discussions regarding Loren Stahl collecting annual
administrative fees:
a. November 21, 1990:
The annual administrator fee for Loren Stahl was
discussed and approved by the committee. It was noted
that Mr. Stahl submitted documentation of dates and hours
expended for committee purposes. (This) documentation
shall remain with the original minutes of the committee . "
Present: Naugle, Imler ,,Zimmerman
Plan Administrator: Stahl
b. December 4, 1990:
"It was pointed out by Mr. Imler and Mr. Zimmerman that
some township employees were questioning the legality or
necessity of paying Mr. Stahl the required administrator
fee. Mr. Naugle pointed out that he would try to secure
a written opinion concerning this from Mochenhaupt,
Mochenhaupt, Cowden & Parks."
Present: Zimmerman, Naugle, Imler
Plan Administrator: Stahl
c. January 23, 1991:
"Mr. Naugle was asked to obtain a letter from
Mochenhaupt concerning the legality of paying an
administrator fee to the township secretary /treasurer
since the question has been raised by several township
employees."
S ;ahl, 92- 046 -C2
Page 9
Present: Naugle, Zimmerman, Imler
Plan Administrator: Stahl
12. Conemaugh Township Pension Board records include
correspondence dated April 19, 1991 between Loren G. Stahl,
Pension Administrator and Luke Michelbacher, Assistant Vice
President, B. T. Management Trust Company.
This letter contains a listing of hours worked by Loren Stahl
during the first quarter of 1991. Hours worked include a
total of 16.75 for a total wage of $250.00. This corresponds
to an hourly wage of $14.93. Days worked include the
following:
Notation: The total hours worked above should be 17.75
instead of the 16.75 indicated on the letter.
13. Compensation received by Loren Stahl was publicly
discussed at township meetings. Township records include
correspondence dated July II, 19 8 9 , from Loren G. Stahl to the
Conemaugh Township Board of Supervisors. This letter seeks a
determination on the positions he holds.
Positions held are listed as roadmaster, secretary /treasurer,
pension administrator and union liaison. Stahl request that
a decision be made by the supervisors August 3, 1989 meeting.
The letter further indicates that Stahl's willing to resign
any and all positions if required to do so.
a. No official action was taken on Stahl's request.
14. Minutes of the Conemaugh Township Board of Supervisor's
Meetings indicate that discussions took place relative to
Loren Stahl collecting wages for the position of township
secretary, roadmaster, and pension administrator
simultaneously:
a. July 13, 1989:
Date Worked Hours Day
1/16/91 2 Wednesday
1/21/91 1.5 Wednesday
1/30/91 1 Wednesday
2/9/91 4 Saturday
2/10/91 3 Sunday
2/25/91 2.75 Monday
3/12/91 1 Tuesday
3/13/91 1 Wednesday
3/26/91 1.5 Tuesday
Stahl, 92- 046 -C2
Page 10
Correspondence: "A letter from Loren Stahl regarding (a)
determination on the several positions he holds in the
township. His positions are roadmaster, township
secretary /treasurer, pension administrator and union
liaison.
The letter suggests that with job descriptions
there would be little or no discord or dissension. At
the Board's request Stahl would resign any or all
positions, however with the Board approval he is also
willing to continue in these capacities. The letter
continues suggesting the possible future of the township
and Mr. Stahl' s ideas for the township. After the letter
was read, Mr. Intihar said he would give Mr. Stahl a vote
of confidence as secretary /treasurer, but some of the
other jobs listed are usually held by that position. Mr.
Intihar suggested talking about this later and perhaps
discussing guidelines. Mr. Gindlesperger (asked if) Mr.
Intihar (would) like to make that into a motion, Mr.
Intihar declined. Mr. Stahl stated that the letter was
brought about because several times it was suggested that
he was not doing his job. Mr. Gindlesperger stated that
in his opinion there was no need to break up the status
of Mr. Stahl this year.
Mr. Dirienzo stated that in years past, everyone was a
roadmaster but each person did what they had to do.
Perhaps in the future, the Board could restructure each
position. Mr. Gindlesperger then made a motion to allow—
the status of each job as is until next year. Mr.
Intihar seconded the motion, motion carried with Mr.
Stahl abstaining."
Present: Stahl, Intihar, Gindlesperger
b. May 9, 1991:
"Mr. Albert Zuccolotto questioned whether Mr. Stahl
received any earnings from the pension fund, and if so,
what amount. Mr. Stahl replied that he receives a total
yearly salary of $1,000.00 for Administration of the
Fund."
Present: Gindlesperger, Zimmerman, Stahl
15. Conemaugh Township records include a Resolution dated 1/88
which authorizes the township secretary /treasurer to serve as
the Administrative Officer for the township's police and non-
uniform pension funds. This Resolution is signed by
Supervisor Marvin Gindlesperger, William Intihar and Loren
Stahl.
Stahl, 92- 046 -C2
Page 11
a. Resolution 1/88 was approved at the Supervisor's January
4, 1988, meeting.
16. As early as 1983, the Conemaugh Township Supervisors became
aware of a potential problem with the pension fund.
a. Conemaugh Township Insurance Agent, Wayne Naugle has
correspondence dated August 16, 1983, between he and the
Board of Supervisors. Naugle's correspondence contains
personal comments on the township's pension fund through
Huebner Associates. Naugle advised the township against
whole life policies and recommended they convert to group
or term insurance.
The letter goes on to indicate that Naugle volunteered to
serve on a pension committee with one supervisor and a
representative from the police department. Naugle
further advised that he would have no connection with any
pension companies dealing with the plan.
b. This occurred prior to Stahl taking office.
17. Conemaugh Township had a pension fund with Huebner Associates,
RD #1, Box 141 AA, Boswell, PA 15531 -9646, from 1968 until
approximately August 3, 1989.
a. This pension plan used life insurance policies as its
primary form of investment.
b. Loren Stahl was not compensated for any duties performed
as Plan Administrator while the plan was handled by
Huebner Associates.
18. An Audit of the Conemaugh Township Pension Plans by the
Pennsylvania State Auditor General's Office for the period
1/1/87 through 12/31/88 determined that inappropriate
expenditures occurred when investments were made in the form
of insurance policies.
19. The State Auditor General's Office provides municipalities
with municipal pension bulletins.
20. Municipal Pension Bulletin No. 1/88 dated November 1, 1988,
includes commentary on allowing administration expenses to be
paid from the assets of the plan.
21. Minutes of the Conemaugh Township Pension Committee Meeting of
July 18, 1989, indicate that the Board received pension
proposals from the following companies:
The Equitable, Johnstown Bank & Trust, Peoples Bank & Trust
Stahl, 92- 046 -C2
Page 12
Company, Cenwest, Principle Financial Group and the
Pennsylvania Local Government Investment Trust.
In attendance at this meeting was Loren Stahl, Wayne Naugle,
Larry Zimmerman, Ronald Imler and William Asay, representing
Mochenhaupt, Mochenhaupt, Cowden and Parks. Minutes further
indicate that Zimmerman and Imler did not participate in the
discussion on the proposals.
22. Stahl was responsible for handling the paperwork involved with
switching pension funds from Huebner to Johnstown Bank &
Trust.
23. Conemaugh Township Pension records include correspondence
between Loren Stahl and several financial institutions the
township had dealings with under the old pension plan. All of
Stahl's correspondence was on stationary that contained the
Conemaugh Township Supervisor's letterhead.
Correspondence letters were inquiries on Stahl's part as to
the cash surrender value of various insurance policies and a
subsequent request to cash them in.
Correspondence indicates that Loren Stahl was performing work
on the pension plan during weekdays while also employed as the
township's roadmaster and secretary /treasurer. The
correspondence file included the following inquiries:
a. February -23 - 1989 .(Thursday) -
World Life . & Health Insurance
of Prussia, PA 19406
Transamerican Occidental Life,
Angeles, California 90015
Volunteer State Life, P.
Tennessee 37401
b. May 15, 1989: (Monday)
World Life & Health Insurance,
Transamerican Occidental Life,
0. Box
550 West DeKalb Pike, King
1149 South Broadway, Los
1369,Chattanooga,
(same address as above)
(same address as above).
Volunteer State Life, (2 letters) (same address as
above).
This correspondence indicates that Loren Stahl was
performing work on the pension plan during weekdays while
also employed as the township's roadmaster and
Stahl, 92- 046 -C2
Page 13
secretary /treasurer.
24. Stahl has received pay for his services as Pension Plan
Administrator from B. T. Financial Corporation, as detailed in
Finding #26.
a. Payments were made to Stahl for serving as Pension Plan
Administrator.
b. No job description exists for this position.
c. Compensation for duties involved as plan administrator
are included with the position of Township Administrator
or Secretary Treasurer.
25. Conemaugh Township Pension Records maintained by B. T.
Management Trust Company, 551 Main Street, Johnstown, PA
15907, include annual summaries for the police non - uniform
and supervisor's pension plans. Disbursements to Stahl are
accounted for in these reports. Disbursements made to Stahl
are broken down accounts according to year and plan. Said
disbursements are:
Disbursement
Year Account #
1989 12001529010
12021529016
120211529018
1990 120015290J1
120115290J9
120215290J7
1991 120015290J1
120115290J9
120215290.16
Account To Stahl
Supervisor's Pension .00
Non Uniform $ 300.00
Police 1700.00
Pension .00
Police Pension 500.00
Non Uniform 500.00
Supervisor's Pension 14.57
Police 189.03
Non Uniform 46.40
26. Total payments to Stahl as Pension Plan Administrator were
$3,250.00.
a. Total payments to Stahl in excess of $500.00 per
occurrence were $2,700.
28. The township auditors never fixed the payments to Stahl for
the administration of the pension program as part of his
salary.
a. The function of the service as pension plan adminintrator
was part of the duties of the Secretary /Treasurer
for which the auditor had fixed a salary.
St{t1, 92- 046 -C2
Page 14
29. It has been a long standing practice for Conemaugh Township
to provide insurance on roadmasters vehicles.
a. Between 1986 and the present, township auditors did not
approve this expense.
30. Conemaugh Township does not own any light duty trucks.
Supervisor /roadmasters private trucks are utilized.
Supervisor / roadmasters receive $4200.00 annually for a vehicle
allowance.
a. Re insurancae payment was not part of the $4,200
allowance.
31. Conemaugh Township has township vehicle insurance from the
Pennsylvania Mutual Insurance Company, P. 0. Box 2361,
Harrisburg, PA. 17105.
a. Policy #AU90004384 was issued by Pennsylvania National
Insurance Company for Conemaugh Township.
b. This policy was in effect prior to Stahl becoming a
township supervisor.
c. The annual policy period is from September 1st through
September 1st of the following year.
d. Wayne Naugle, owner of Naugle Insurance Company, Route
219 and 403, PA.,is_the agent of record on
this policy.
32. Business records of the Naugle Insurance Company indicate
premiums for Stahl's vehicles as follows:
a. Period:
Vehicle:
Premium:
b. Period
Vehicle:
Premium
c. Period
Vehicle:
Premium
d. Period
Vehicle:
Premium:
e. Period
1/6/86 - 9/1/86
1985 Ford
$240.00
9/1/86 - 9/1/87
1985 Ford
$281.00
9/1/87 - 9/1/88
1985 Ford
$306.00
9/1/88 - 9/1/89
1985 Ford
$5$1.00
9/1/89 - 9/1/90
, 92- 046 -C2
Page 15
Vehicle: 1988 Ford F250
Premium: $847.00
f. Period
Vehicle:
Premium:
g. Period
Vehicle:
Premium:
9/1/90 - 9/1/91
1988 Ford
$770.00
9/1/91 - 1/8/92
1988 Ford
$257.00
33. Total premiums paid on Stahl's vehicles from 1/6/86 through
1/8/92 were $3,282.00.
34. Statements of Financial Interest on file. with Conemaugh
Township include the following filings for Loren Stahl:
a. Calendar Year: 1984
Filed: 2/21/85 on SEC Form 7/84
Position: Candidate Supervisor
Occupation: Trucking
Creditors: None
Direct /Indirect Income: Homer Sleek & Son
All other Financial Interests: None
b. Calendar Year: 1985
Filed: April 30, 1986 on SEC Form 11/84
Position: Supervisor
Creditors: -- None
Direct /Indirect Income: None
All other Financial Interests: None
c. Calendar Year: 1986
No Statements of Financial Interest on file
d. Calendar Year: 1987
Filed: 4/26/88 on SEC Form 1/88
Position: Supervisor
Occupation: Township Roadmaster
Creditors: None
Direct /Indirect Income: None
All other Financial Interests: None
e. Calendar Year: 1988
Filed: 5/1/89 on SEC Form 1/89
Position: Roadmaster
Creditors: None
Direct /Indirect Income: None
All other Financial Interests: None
S Ahl, 92- 046 -C2
Page 16
f. Calendar Year: 1989
Filed: 4/30/90 on SEC Form 1/90
Calendar Year: 1990
Filed: 2/21/91 on SEC Form 1/87
Position: Supervisor /Candidate
Occupation: Roadmaster, Secretary /Treasurer
Creditors: None
Direct /Indirect Income: None
All other Financial Interests: None
NOTE: Loren Stahl filled the wrong year in on the
box listed for calendar year.
35. Stahl filed Statements of Financial Interest for all years in
office with the exception of calendar year 1986, which should
have been filed by May 1, 1987.
g.
36. Stahl failed to list Conemaugh Township as a
income in excess of $1,500 in 1987, 1988 and 1990
37. Stahl failed to list B -T Management Company as a
income in excess of $500 in 1989 and in excess of
1990.
III. DISCVSSION:
Position: Township Supervisor
Occupation: Roadmaster
Creditors: None
Direct /Indirect Income: Conemaugh Township
All other Financial Interests: None
source of
($1100)
source of
$1,000 in
Initially, it is noted that the allegations in this case
relate to both Act 9 of 1989 and Act 170 of 1978. In this regard,
Section 9 of Act 9 of 1989, P.L. 26 , provides, in part, as follows:
"This amendatory act shall not apply to
violations committed prior to the effective
date of this act, and causes of action
initiated for such violations shall be
governed by the prior law, which is continued
in effect for that purpose as if this act were
not in force. For the purposes of this
section, a violation was committed prior to
the effective date of this act if any elements
of the violations occurred prior thereto."
Under both Act 170 of 1978 and Act 9 of 1989, as a Supervisor
for Conemaugh Township in Somerset County, Pennsylvania, Loren G.
Stahl, hereinafter Stahl is a public official /employee as that term
is defined under both acts. See also 51 Pa. Code. As such, his
=, 92- 046 -C2
Page 17
conduct is subject to the provisions of both laws and the
restrictions therein are applicable to him.
Under Section 3(a) of Act 9 of 1989 quoted above, a public
official shall not engage in conduct that constitutes a conflict of
interest.
The term "conflict of interest" is defined under Act 9 of 1989
as follows:
Section 2. 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. "Conflict" or "conflict of
interest" 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 or his immediate family or
a business with which he or a member of his
immediate family is associated. 65 P.S. 5402.
Under Section 3(a), of Act 170 of 1978 quoted above, this
Commission has determined that use of office by a public official
to obtain a financial gain for himself or a member of his immediate
family or a business with which he is associated which is not
provided for in law transgresses the above provision of law. Thus,
use of office by a public official to obtain financial gain which
is not authorized as part of his compensation is prohibited by
Section 3(a): Hoak /McCutcheon v. State Ethics Commission, 77 Pa.
Commw. Ct. 529, 466 A.2d 283 (1983); Yacobet v. State Ethics
Commission, 109 Pa. Commw. Ct. 432 531 A.2d 536 (1987). Similarly,
Section 3(a) of the Ethics Act would prohibit a public official/
employee from using public office to advance his own financial
interests; Koslow v. State Ethics Commission, 116 Pa. Commw. Ct.
19, 540 A.2d 1374 (1988).
The issue before us is whether Stahl as a Conemaugh Township
Supervisor violated either Section 3(a) of Act 9 of 1989 regarding
his receipt of compensation for serving as Township Pension
Administrator, or Section 3(a) of Act 170 of 1978 regarding his
receipt of township paid vehicle insurance for his personal
Stahl, 92- 046 -C2
Page 18
vehicle, and lastly whether Stahl violated Section 4(a) of Act 170
of 1978 regarding his failure to file a Statement of Financial
Interests (SFI) for the 1986 calendar year.
Factually, Stahl served as an elected Conemaugh Township
Supervisor since January 6, 1986, but also served as appointed
roadmaster from 1986 through 1991 and as appointed township
secretary /treasurer from 1988 through 1991. The practice in
Conemaugh Township is for the elected Supervisors who are township
employees to work at least forty-hours per week with the Supervisor
who is both roadmaster and secretary /treasurer performing both the
duties of each of those office separately and independently.
The Conemaugh Township Board of Auditors approved compensation
for the township Supervisors as working township employees in the
positions of either roadmaster or secretary /treasurer as well as
provided vehicle allowances for the Supervisor utilizing their
personal vehicles for township work since the township did not have
its own vehicles. (Fact Finding 4). However, the vehicle
allowances which were approved by the Auditors were to cover
expenses associated with the vehicles such as maintenance, upkeep,
depreciation, and gasoline, (Fact Finding 5c), but the Auditors did
not approve an expense for insurance on the roadmaster's vehicles.
(Fact Finding 30).
Conemaugh Township also maintains a pension for its police
department and non - uniformed employees. Stahl served on the board
in the position of plan administrator for the years 1989 through
1991. (Fact Finding 8). Stahl received compensation for the
working positions of secretary /treasurer or roadmaster. Although
Stahl did not receive any pay for attending pension board meetings,
(Fact Finding 8d), he was paid an annual administrator fee of
$1,000 per year for acting as pension plan administrator. (Fact
Findings lia, 14b).
The minutes of the Conemaugh Township Board of Supervisors do
reflect that there were discussions regarding Stahl's compensation
for the various positions of township secretary, roadmaster and
pension administrator. (Fact Finding 14). Stahl requested a
decision by the Supervisors as to the positions he held and
indicated that he was willing to resign any and all positions if so
required. (Fact Finding 13). A Conemaugh Township Resolution
dated January 1988 was enacted which authorized the township
secretary /treasurer to serve as the administrative officer for the
township's police and non - uniformed pension fund; the Resolution
was signed by Stahl and the other two Supervisors. (Fact Finding
15). The total compensation received by Stahl for serving as the
pension plan administrator was $3,250. (Fact Finding 26).
However, the duties of plan administrator are included within the
duties and responsibilities of township adminstrator or secretary/
treasurer. (Fact Finding 24c). In this regard, the township
Stahl, 92- 046 -C2
Page 19
Auditors never approved any payment to Stahl for the administration
of the pension program. (Fact Finding 28).
Finally, as to the SFI's, the record reflects that Stahl did
not file an SFI for the calendar year 1986 (Fact Finding 34c),
failed to list Conemaugh Township as a source of income in his
1987, 1988, and 1990 calendar year SFI's and failed to list B -T
Management Company as a source of income on his 1989 and 1990
calendar year SFI's.
In determining whether the actions of Stahl violated Section
3(a) of Act 170 of 1978 and Section 3(a) of Act 9 of 1989, we must
review the pertinent provisions of the Second Class Township Code.
Although we do not have jurisdiction to interpret the provisions of
the Second Class Township Code per se, it is necessary to review
those provisions of law in order to make a determination as to
whether the financial gain was compensation other than provided for
by law under Section 3(a) of Act 170 of 1978.
The Second Class Township Code provides that township
supervisors shall receive the following compensation:
Compensation of Supervisors
Supervisors may receive from the general
township fund, as compensation, an amount
fixed by ordinance not in excess of the
following:
Township Population
Not more than 4,999
5,000 to 9,999
10,000 to 14,999
15,000 to 24,000
25,000 to 34,999
35,000 or more
Annual Maximum Compensation
Fifteen hundred dollars
Two thousand dollars
Twenty -six hundred dollars
Thirty -three hundred dollars
Thirty -five hundred dollars
Four thousand dollars
Such salaries shall be payable monthly or
quarterly for the duties imposed by the
provisions of this act. The population shall
be determined by the latest available official
census figures. The compensation of
supervisors, shall be fixed by the township
auditors either per hour, per day, per week,
semi - monthly or monthly, which compensation
shall not exceed compensation paid in the
locality for similar services, and such other
reasonable compensation for the use of a
passenger car, or a two axled four - wheeled
motor truck having a chassis weight of less
than two thousand pounds when required and
actually used for the transportation of road
Stahl, 92- 046 -C2
Page 20
and bridge laborers and their hand tools and
for the distribution of cinders and patching
material from a stock pile, as the auditors
shall determine and approve; but not
supervisor shall receive compensation as a
superintendent or roadmaster for any time he
spends attending a meeting of supervisors. 53
P.S. S65515.
In reference to the meetings for which supervisors may receive
compensation, the Code further provides as follows:
The township supervisors shall meet for
the transaction of business at least once each
month, at a time and place to be fixed by the
board, but they shall not be paid for more
than sixteen meetings in any one year, except
for any township where, on account of the
exercise of governmental functions other than
those relating to roads, more meetings are
necessary, in which case, the number of
meetings for which the supervisors may be paid
may be increased to any number, not exceeding
fifty meetings in any year which shall include
hearings by aggrieved parties under the
Pennsylvania Sewage Facilities Act and other
hearings by aggrieved parties hearings of a
judicial quasi - judicial nature. Two
members of any board of supervisors consisting
of three members shall constitute a quorum and
three members shall constitute a quorum.
Except as otherwise provided in this act, an
affirmative vote of a majority of the entire
board of any supervisors shall be necessary in
order to transact any business. Necessary
expenses incurred in such meetings, including
office rent, stationery, light and fuel, shall
be paid out of the general township fund. 53
P.S. S65512.
The duties that a supervisor is responsible for performing are
regulated by statute. As can be seen from the foregoing, the
compensation to be paid for a supervisor who is not otherwise
employed by the township is strictly regulated by the Second Class
Township Code. A supervisor may only receive compensation, as set
forth above, for supervisor meetings regarding the transaction of
township business. The type of meeting for which a township
supervisor may be compensated must be one at which official
township business is transacted. Additionally, the Second Class
Township Code provides for compensation at the specific meetings
outlined in 565512, above. The Code does not appear to permit the
Stahl, 92- 046 -C2
Page 21
compensation of a township supervisor for attending other types of
meetings or for performing the administrative functions of his
office. Any such other compensation must be earned in and as part
of the services performed while serving in one of the statutory
authorized positions. Thus, if the township supervisors were to
award to themselves compensation for attendance at meetings that
are not official township meetings of the board of supervisors, or
for performing duties not authorized by law, such would violate the
provisions of the State Ethics act as such payment would not
constitute compensation provided by law. The above interpretation
of the Second Class Township Code is a view that has also been
expressed by the State Association of Township Supervisors which
specifically indicated that supervisors may not be compensated for
meetings with engineers, solicitors, planning commissions,
authorities, or recreation boards. See Township News May, 1985,
Page 66.
The Code sets forth clearly when supervisors may receive
compensation other than as set forth above. Generally, township
supervisors may be -employed by the township as a roadmaster,
laborer, or secretary /treasurer. 53 P.S. §65410. The compensation
to be paid to supervisors working in such positions is to be fixed
by the township board of auditors. 53 P.S. § §65515; 65531, 65540.
Township supervisors may not receive any other compensation except
as provided above. This concept has been upheld by various courts
in the Commonwealth. In Coltar v. Warminister Township, 8 pa.
Commw. Ct. 163, 302 A.2d 859, (1973), the Commonwealth Court of
Pennsylvania held that a second class township supervisor may not
appoint himself to positions other than those set forth in the
township code (roadmaster, laborer, or secretary /treasurer), and
receive compensation therefore. See also Conrad v. Exeter
Township, 27 D & C 3d 253, (Berks 1983). It is clear, therefore,
that the duties for which a township supervisor may be compensated
are strictly regulated by the code, and when performing in the
positions set forth in the Code, the supervisor's pay must be
specifically set forth by the township board of auditors.
In applying the above provisions of law to the instant matter,
we find that Stahl violated Section 3(a) of Act 170 of 1978. Stahl
used public office to obtain financial gain consisting of the
$3,250 in compensation which constitutes a financial gain and which
is not compensation provided for by law. The foregoing
compensation received by Stahl was for activities which did not
relate to the working position as Township Roadmaster. The
function of pension plan administrator was encompassed within his
duties as secretary /treasurer for which he was already compensated;
likewise, the Auditors did not approve any compensatiopn for Stahl
for working as plan administrator. Since Stahl received a
financial gain of $3,250, he is ordered to make restitution through
this Commission payable to the order of Conemaugh Township in that
amount.
Stahl, 92- 046 -C2
Page 22
We likewise find a violation of Section 3(a) of Act 170 of
1978 regarding the receipt by Stahl of the township paid vehicle
insurance on his personal vehicle. Although we do note that the
township Auditors did authorize a vehicle allowance for the
roadmasters since the the township did not have its own vehicles
and the working Supervisors utilized their personal vehicles, the
approval for the vehicle allowance did not include township paid
vehicle insurance. Accordingly, since the vehicle insurance was
not approved by the Auditors, we find a violation of Section 3(a)
of Act 170 of 1978 for the reasons noted above.
Lastly, we find a technical violation of Section 4(a)
regarding Stahl's failure to file an SFI for the 1986 calendar
year. We do note that Stahl has filed for the calendar years 1984,
1985, 1987 through 1990. In addition, we note deficient filings as
to the failure to list Conemaugh Township and B -T Management
Company as sources of income for the calendar years noted in Fact
Findings 36 and 37. Although we do not find any violation as to
these deficiencies since they are not part of the allegation, we do
direct Stahl within thirty (30) days of issuance of this Order to
file amended SFI's to correct the deficiencies note in Fact
Findings 36 and 37 as well as to file the 1986 calendar year SFI.
Failure to comply with this filing and amended filings will result
in a directive of this Commission to institute an order enforcement
action.
Because there is no evidence to indicate that there was any
intent by Stahl to violate the act and based upon the totality of
the facts and circumstances in this case, we will take no further
action provided Stahl makes restitution of $3,250 to Conemaugh
Township in a timely fashion as well as file the 1986 calendar year
SFI and amended SFI filings as noted above.
IV. CONCLUSIONS OF LAW:
1. Loren G. Stahl as a Conemaugh Township Supervisor is a public
official as that term is defined under Act 170 of 1978 and Act
9 of 1989.
2. Stahl violated Section 3(a) of Act 9 of 1989 when he received
compensation as a pension plan administrator which was a
private pecuniary benefit not approved by the township Board
of Auditors.
3. The private pecuniary benefit received by Stahl while serving
as pension administrator for the township amounted to $3,250.
4. Stahl violated Section 3(a) of Act 170 of 1978 when he
received township paid vehicle insurance as to his personal
vehicle which he used for township business in that the
vehicle allowance approved by the township Board of Auditors
Stahl, 92- 046 -C2
Page 23
did not include insurance for the roadmaster's vehicles.
5. A technical violation of Section 4(a) of Act 170 of 197$
occurred when Stahl failed to timely file a Statement of
Financial Interests for the 1986 calendar year.
In Re: Loren G. Stahl : File Docket: 92- 046 -C2
: Date Decided: September 15, 1992
: Date Mailed: September 18, 1992
ORDER NO. 857
1. Loren G. Stahl as a Conemaugh Township Supervisor violated
Section 3(a) of Act 9 of 1989 when he received compensation as
a pension plan administrator which was a private pecuniary
benefit not approved by the township Board of Auditors.
2. Stahl is directed to make restitution of the $3,250 private
pecuniary benefit referenced in Paragraph 1 by making timely
payments through this Commission to Conemaugh Township.
3. Stahl violated Section 3(a) of Act 170 of 1978 when he
received township paid vehicle insurance as to his personal
vehicle which he used for township business in that the
vehicle allowance approved by the township Board of Auditors
did not include insurance for the roadmaster's vehicles.
4. A technical violation of Section 4(a) of Act 170 of 1978
occurred when Stahl failed to timely file a Statement of
Financial Interests for the 1986 calendar year.
5. Stahl is directed within thirty (30) days of issuance of this
Order to file a Statement of Financial Interests for the 1986
calendar year as well as file amended Statements of Financial
Interests correcting the deficiencies noted in Fact Findings
36 and 37.
6. Failure to comply with Paragraph 5 will result in a directive
of this Commission to institute an order enforcement action.
BY THE COMMISSION,
JAMES M. HOWLS