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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