HomeMy WebLinkAbout905 DeemerIn Re: William P. Deemer
5TATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
File Docket: 92- 067 -C2
Date Decided: 9/28/93
Date Mailed: 10/07/93
Before: James M. Howley, Chair
Daneen E. Reese, Vice Chair
Dennis C. Harrington
Austin M. Lee
Joseph W. Marshall, III
The State Ethics Commission received a complaint regarding a
possible violation of the State Ethics Act, Act 9 of 1989, 65 P.S.
§401 et seq. Written notice, of the specific allegation(s) 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. The record is complete. This
adjudication of the Commission is hereby issued which sets forth
the individual Allegations, Findings of Fact, Di
Conclusions of Law and Order.
This adjudication is final and will be made available as a
public document fifteen days after issuance. However,
reconsideration 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
§21.29(b).
The files in this case will remain confidential in accordance
with 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. 5409(e).
Deemer, 92- 067 -C2
Page 2
I: ALLEGATION:
That William P. Deemer, as engineer for the Slippery Rock
Municipal Authority, Butler. County, violated the following
provisions of the State Ethics Act (Act 9 of 1989) , when in his
capacity as Authority Engineer, he approved development plans
including sewer and water modules, which he designed for private
clients.
II. Findings:
Section 3. Restricted Activities:
(a) No public official or public employee shall
engage in conduct that constitutes a conflict of
interest. 65 P.S. 5403(a).
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 of his immediate family, or a business
with which he or .a member of his immediate family is
associated. 65 P.S. §402.
1. William P. Deemer serves, as the appointed engineer for
Slippery Rock Borough and Slippery Rock Municipal Authority.
a. He served in both positions from 1973 through September,
1990.
2. From September, 1990, to the present, Deemer has served as the
appointed engineer for the Slippery Rock Municipal Authority.
3. Prior to this time, the Authority had a Lease -Back Agreement
with the borough to operate the Authority's system.
a. In September, 1990, the Authority floated a bond issue,
and became an operating Authority.
4. Minutes of the September 24, 1990, Authority meeting indicate
Deemer, 92- 067 -C2
Page 3
that a resolution was passed to order the borough to deliver
a peaceable possession of the water and sewer system to the
Municipal Authority. The resolution signaled the beginning of
the Authority as an operating Authority. Actions to ratify
the new agreement occurred at the October 3, 1990, meeting.
5. William P. Deemer is a registered professional engineer.
6. William P. Deemer & Associates is a consulting engineer firm
located in Butler, Pennsylvania.
a. William P. Deemer is owner of William P. Deemer &
Associates.
7. Records of the Slippery Rock Municipal Authority reflect that
William P. Deemer was appointed Authority Engineer at the
following meetings.
a. January 6, 1988
b. January 2, 1991
c. January 8, 1992
d. January 11, 1993
8. William Deemer was compensated by the Slippery Rock Municipal
Authority by a monthly retainer and hourly rates for engineer,
engineer support, drafting and secretarial.
a. Between October, 1990, and December, 1992, Deemer was
compensated by the Authority as follows:
b. 1993:
Monthly retainer
Principal engineer
Engineering support
Drafting
Secretarial
Monthly retainer
Principal Engineer
Engineer support and calculations
Drafting
Secretarial
Misc. Blue prints
Reproducible Mylar Sepia
Photocopies
Phone /fax costs
Mileage
$ 250.00
$ 50.00 /hr.
$ 25.00 /hr.
$ 12.00 /hr.
$ 300.00
$ 60.00 /hr.
$ 30.00 /hr.
$ 25.00 /hr.
$ 15.00 /hr.
$ 4.00 /ea.
$ 8.00 /ea.
$ .15 /sheet
Cost & 25%
$ .20 /mile
Portal to portal
Deemer, 92- 067 -C2
Page 4
(1) The Authority Board ,approved the rate increase when
Deemer was re- appointed consulting engineer.
c. During an executive session held during the June, 1993,
meeting, the Board required Deemer to obtain professional
liability insurance. As a result of the additional cost
to Deemer, the Board approved an additional increase in
his rates.
(1) Hourly rate for principal engineer increased $10.00
from $60.00 to $70.00 /hour.
(2) Hourly rate for other services as listed increased
$5.00 with the exception of miscellaneous items.
(3) The minutes do not reflect specific motion
approving the increase.
(4) The minutes do not reflect discussion or motion
regarding the requirement for Deemer to obtain
professional liability insurance.
d. Prior to December, 1990, Deemer's retainer was paid by
Slippery Rock Borough.
e - . Deemer received payment from the Authority for
engineering services on special projects funded by
grants.
9. Minutes of.the Slippery Rock Borough Council meetings reflect
that William P. Deemer was reappointed the borough engineer at
the December 5, 1989 meeting.
10. In 1985 Slippery Rock Township, Slippery Rock Borough and the
Slippery Rock Municipal Authority entered into an agreement
known as "The -Comprehensive Plan for the Expansion and
Extension of the Slippery Rock Municipal Authority's Water
System ".
a. The agreement was adopted on October 2, 1985.
b. A similar agreement was adopted for the sewer system on
January 7, 1987, as a result of a request for sewer
service in the township.
c. The agreements were revised and combined into one
agreement that was adopted on June 3, 1992.
11. As part of the Comprehensive Plans, developers generally
entered into an agreement with the Authority assuming
responsibility for complying with all required specifications
Deemer, 92- 067 -C2
Page 5
and reimbursing the Authority for expenses relating to the
inspection and approval of such projects.
12 The Comprehensive Plans require specific services to be
performed by the Authority engineer in relation to
applications for the extension of the Authority's systems.
a. The application shall be reviewed by the Authority
engineer, and if deemed feasible, the Authority engineer
will prepare a preliminary design and layout of the
proposed line(s).
b. The installation shall be in accordance with the designs,
specifications and layouts of the Authority engineer.
c. The Authority's engineer shall be the resident inspector.
13. During the course of his service as the Engineer for Slippery
Rock Municipal Authority, and Slippery Rock Borough, William
P. Deemer reviewed, inspected, and approved plans submitted to
the Authority and borough by individuals regarding projects
with which he or William P. Deemer & Associates was involved
in a private capacity, and for which compensation was paid.
14. Plans for the Extension of Water and /or Sewer Lines into
Slippery Rock Township, on file with the borough and
Authority, indicate that William P. Deemer of William P.
Deemer & Associates, was the engineer of record for the
following developments between 1985 and 1992, for which
borough and /or Authority action was required:
Date
1985
1987/1993
1987
1989
1989
1991
1992
1993
Development
Allegheny Valley Schools
Applewood Meadows - Gary McKnight
Poplar Forest Nicholas Borgfeldt
Arrowhead Place - Walter Fowler
College Garden Apartments - JGame Properties
LeBanno
Davcol, Inc. /Bronder
Basta /Messer
The following findings relate to the Allegheny Valley Schools Water
Line Extension:
15. The Allegheny Valley Schools opened a group home in
approximately 1985/1986.
a. A requirement of opening the home was that public water
service was available.
Deemer, 92- 067 -C2
Page 6
16. The Water line extension plans were prepared by William Deemer
and Associates and submitted to the Slippery Rock Municipal
Authority for approval.
17. Minutes of the Slippery Rock Municipal Authority meetings
reflect the following action in relation to the Allegheny
Valley School water line extension.
a. March 7, 1984:
Deemer presented the borough's request from Slippery Rock
High School to extend their water line to the high school
receiving barn at the high school's expense. Same to be
of a minimum 6" line of material meeting the borough's
specifications. Motion to approve the construction was
seconded and approved.
b. April 3, 1985:
After a lengthy discussion, a motion was made to approve
providing water to the William Fennick property on Route
173, South of Slippery Rock, if regulations being written
by the Authority solicitor are approved by the borough.
All expenses including installation and construction fees
are the responsibility of the developer.
(1) Allegheny Valley Schools placed the group home on
the Fennick property.
c. May 1, 1985: •
The proposed agreement between Slippery Rock Municipal
Authority, Slippery Rock Borough Council, and Allegheny
Valley School to provide water service to the William
Fennick property on Route 173, South of Slippery Rock
Borough, was reviewed point by point.
Deemer advised that the agreement included everything
that will be included in the proposed overall policy for
providing water service outside the borough property
lines.
The total cost of preparing this agreement will be the
responsibility of Allegheny Valley School since it is a
special agreement so that they could get water in the
near future, and the Comprehensive Policy is not written
at this date.
A motion was approved to authorize the signing of the
agreement, and to recommend the plan to the borough
council and the township.
Deemer, 92- 067 -C2
Page 7
18. An invoice from William P. Deemer & Associates dated July 5,
1985 to the Allegheny Valley School District indicates that
engineering services for a water line extension plan were
provided for a total cost of $800.00.
a. The invoice was contained in the Allegheny Valley School
file at the Authority.
b. The invoice, number 2013, reflects sixteen hours at
$50.00 per hour.
c. The invoice is signed by William P. Deemer, P. E.
Consulting Engineer.
d. A handwritten notation indicates that the services
performed included work in relation to the "Comprehensive
Plan ".
(1) This work included design specifications and
layouts and inspections.
19. The Allegheny Valley Schools used Deemer because they believed
the project would go quicker and smoother.
a. Deemer never held the project up or asked for or charged
extra money for his services. Deemer offered his full
cooperation to Allegheny Valley Schools in this project.
The following findings relate to the Applewood Meadows water and
sewer line extension project.
20. Applewood Meadows was a project
McKnight (G. L. McKnight, Inc.).
a. The project was submitted in
all at the same time.
b.
c.
that was proposed by Gary
three phases, and approved
Phase I was developed in 1987.
Phases II and III are currently being developed.
21. Applewood Meadows water and sewer line plans were prepared by
William P. Deemer & Associates and submitted to the Slippery
Rock Municipal Authority for approval.
22. Records of the Slippery Rock Municipal Authority indicate that
the plans for Applewood Meadows were prepared by William P.
Deemer & Associates.
a. The plans are dated March 31, 1987.
Deemer, 92- 067 -C2
Page 8
b. Revisions were made on December 23, 1992, and May 12,
1993.
c. The plans were prepared for the Slippery Rock Municipal
Authority.
d. These water and sewer line plans were prepared by William
P. Deemer & Associates and sealed by William P. Deemer.
23. The following actions occurred at Slippery Rock Municipal
Authority meetings in relation to the Applewood Meadows plans
for water and sewer line extension.
a. June 4, 1986:
McKnight was present to explain his proposed development
of the old Steele farm and asked the Authority to draw up
a plan to extend the sewage line to the property. A
motion was approved to have the solicitor start on a
Comprehensive Plan (similar to the water plan), to extend
the sewer lines into the township.
b. September 3, 1986:
Deemer showed the Authority a map with the proposed
Steele Farm housing development on it. Alternative plans
for placement of the sewer lines from the development to
the treatment plant were discussed.
c. October 1, 1986:
A motion was approved to allow McKnight to proceed with
the proposed plan for the sewage, and contact the school
board for their consent.
(1) The . feasibility of the sewer line plan was
determined by Deemer. (See finding #24).
d. November 5, 1986:
Deemer was directed to send a letter to the Slippery Rock
School Board explaining the proposed joining of the sewer
line from the old Steele Farm (McKnight Development), at
the manhole near the high school.
e. January 7, 1987:
Deemer reported that the township had approved the
Comprehensive Plan for extending sewer service beyond
borough lines.
Deemer, 92- 067 -C2
Page 9
Deemer reported that the school board is considering
allowing the sewer line from the McKnight project to tap
into their manhole. They have asked in return, if any
future buildings could tap in with no service connection
fee. No formal motion was made, but the Authority seemed
in favor of it.
A formal letter from Gary McKnight to ask for sewer
extension onto his proposed development was presented.
The secretary was instructed to put it on file.
f. April 1, 1987:
Copies of the revised plan module of Applewood Meadows
were given to the Municipal Authority to file.
A motion was approved to authorize preparation of a draft
agreement by the engineer that would meet with the
approval of council and the Municipal Authority, as
required by the Comprehensive Plan.
A motion was approved to have the engineer finalize plans
for the water and sewer lines, and make applications for
permits as may be required by DER and PennDOT.
A letter from the Butler County Planning Commission to
David Emmert of DER', stated that they had approved the
preliminary plan. for Applewood Meadows at their March 18,
1987 meeting.
g. May 6, 1987:
Deemer reported that the revised plan module for
Applewood Meadows had been submitted to DER for their
approval. Deemer to check to see if this report can be
used in other cases, the expense of redoing it each time
new customers are added is cost prohibitive.
h. June 3, 1987:
The changes in the agreement between McKnight and the
Municipal Authority were discussed. A motion was
approved to formally adopt the agreement with the
specified changes.
i. October 7, 1987:
Deemer reported that the sewers are installed in
Applewood Meadows, and the pump station is on site.
Also, Allegheny Valley Schools have tapped into the sewer
line.
Deemer, 92- 067 -C2
Page 10
j. November 4, 1987:
Gary McKnight was present to report that the sewer
project was completed and to present his maintenance bond
for acceptance. The motion was approved to accept the
project as complete and to accept the performance bond in
the amount of $207,375.76, subject to (1) approval of the
Authority's legal counsel, and (2) the provision by G. L.
McKnight, Inc., of proper conveyance of property and
equipment to the Municipal Authority.
k. March 2, 1988:
The deeds for the right -of -way and pump station, the Bill
of Sale, and a letter from G. L. McKnight were presented
to the Municipal Authority. A motion was made that the
Authority accept these items subject to the approval of
the attorney. Motion was seconded and approved.
1. May 4, 1988:
A motion to release G. L. McKnight from his performance
bond on off -site construction was seconded and approved.
m. February 3, 1993:
A letter was received from William Rosenbaum of Aqua
Terra stating that they have completed the review of
McKnight Phase II Plan with some minor comments. No
drawing revision will be required at this time.
n. April 7, 1993:
Deemer reported that McKnight plans to start installing
his sewer lines next week. He said McKnight is planning
some changes on his plan that will add four additional
lots. Deemer said the changes will not affect the water
and sewer lines, and will not require a revision to the
Act 537 Plan for the development.
o. June 2, 1993:
Deemer reported that McKnight is considering using a
private right -of -way for his line as opposed to using the
highway right -of -way as PennDOT is placing too many
conditions on the Highway Occupancy Permit, making it
cost prohibitive.
24. In a- letter dated November 5, 1986, to the Slippery Rock
School Board, Deemer presented proposals regarding a request
for the extension of sanitary sewer lines to property being
Deemer, 92- 067 -C2
Page 11
developed by Gary L. McKnight along Route 173 and West Liberty
Road in Slippery Rock Township. This property is adjacent to
the borough and the school district property.
a. Deemer detailed three alternates which the Authority
considered in providing sewer service to this property.
b. For each alternate, Deemer presented the pros and cons to
both the Authority and the developer.
c. Deemer described the advantages to the school district
which include additional tax base resulting from
development.
d. Deemer advised that the Authority prefers Alternate C,
and would be interested in entering the proper
agreements.
25. A planning module for land development for Applewood Meadows
was prepared by William P. Deemer, Consulting Engineer, on
February 9, 1987 and submitted to Slippery Rock Township.
a. The planning module was signed and sealed by William P.
Deemer on March 8, 1987.
26. As part of this planning module for land development, Deemer
prepared a Narrative Report supporting a resolution to revise
the Act 537 Sewage Plan for Slippery Rock Township. The
report details the three proposals considered in planning the
sewer line extension to service the McKnight development.
a. Deemer estimated that the total project would serve an
equivalent of 150 residences, and the portion of the
project serviced by the proposed pump station would serve
the equivalent of approximately 100 residences.
27. By way of letter dated April 29, 1987, to the Department of
Environmental Resources, Deemer explains that his client is
anxious to apply for construction permits, and requests that
the DER Permit be issued promptly so that the project may be
completed in good construction weather. The letter was in
response to a request from DER for additional information
explaining the Narrative prepared by Deemer, and attached to
the planning module for land development.
28. Deemer notified Slippery Rock Township on April 30, 1987, . by
way of letter, that the Authority intends to apply to the
Department of Environmental Resources for a permit to
construct sanitary sewers to serve the G. L. McKnight, Inc.,
at the Applewood Meadows Plan.
Deemer, 92- 067 -C2
Page 12
a. Deemer advised that the client wished to be in a position
to immediately apply for the construction permit.
b. Deemer needed the township to countersign a copy of the
letter and return it as proof of receipt as required by
DER.
29. An agreement was entered into on May 31, 1987, between the
Slippery Rock Municipal Authority, the Borough of Slippery
Rock, the Township of Slippery Rock, and G. L. McKnight, Inc.
a. The agreement established the requirements for providing
water and sewage to real estate owned by G. L. McKnight,
Inc.
b. The agreement was entered into pursuant to the
Comprehensive Plan.
c. Pursuant to said document, it is agreed in part that:
All work shall be done in compliance with the rules and
regulations of the Authority pursuant to the design and
plan approved by the Authority Engineer, William P.
Deemer, and under said engineers supervision, control and
inspection.
d. Developer agrees to pay 'for all costs associated with
such supervision and inspections.
e. After the construction, connection, final inspection and
approval, by the Authority engineer, as evidenced by his
certificate to the Authority, the Authority will accept
sewage transported from developers property into its
existing system, and maintain, repair and /or replace and
keep in generally good operating condition at the
Authority's expense.
30. An application for Part II Water Quality Management Permit and
related documentation was submitted to Pennsylvania Department
of Environmental Resources on behalf of the Slippery Rock
Municipal Authority sewer extension for Applewood Meadows
Subdivision, by William P. Deemer. The application was
accompanied by the following documents:
a. Filing fee check drawn on the account of G. L. McKnight,
Inc., #691, dated May 28, 1987, in the amount of $500.00.
b. Two sets of a single plan folio of 17 sheets entitled
"Applewood Meadows Sewer & Water Lines ".
c. Two copies of the specifications entitled, "Construction
of Sewer and Water Lines, Applewood Meadows, Slippery
Deemer, 92- 067 -C2
Page 13
Rock Township, Butler County ".
d. Two copies of the Comprehensive Plan for the Expansion
and Extension of the Slippery Rock Municipal Authority
Sanitary Sewer System.
e. Two copies of the following letters: West Penn Power
letter dated May 20, 1987, regarding power outages; a
signed acknowledgement of a letter to Slippery Rock
Township regarding Act 14; a letter from Butler County
regarding Act 14; and a letter from DER dated May 19,
1987, approving the planning modules for land
development.
f. A Soil Erosion and Sedimentation Control Plan in
duplicate, prepared by William P. Deemer & Associates.
g. An application for Part II Water Quality Management
Permit for Sewerage signed and sealed by William P.
Deemer.
31. By way of letter dated July 2, 1987, Deemer provided the
Department of Environmental Resources with additional
information regarding the Part II Permit #1087410, for
the Applewood Meadows Subdivision.
a. Deemer detailed changes made in the original application,
including an upgrade from a 4" diameter force main to a
6" diameter.
b. Revised copies of several drawings which include changes
made to serve additional residences. Deemer advised that
there is plenty of capacity in all facilities to handle
the minor additions being made.
32. In a letter to the Authority's Solicitor, Richard McCandless,
dated November 3, 1987, Deemer advised that a maintenance bond
for the McKnight Development had been received.
a. Deemer recommended that the Authority accept the bond
subject to McCandless' approval.
b. He recommended to the Authority that they accept the
water and sewer line along with the pumping station, and
begin the maintenance period of one year on November 4,
1987.
c. Some legal aspects in reference to the plan need to be
completed, including furnishing "as- built" drawings of
the installed facilities.
Deemer, 92- 067 -C2
Page 14
d. Deemer would work with McKnight in developing and
certifying the costs of the water and sewer facilities to
determine a per foot cost for reimbursement should anyone
wish to connect to any of the facilities in the next ten
years.
33. On November 25, 1987, Deemer responded to a letter he received
from McCandless regarding the McKnight Plan on November 18,
1987. He advised McCandless of the additional steps being
taken to complete all aspects of the requirements of the
Comprehensive Plan.
34. William Deemer prepared and submitted an application for
Highway Occupancy Permit to the Pennsylvania Department of
Transportation Engineering District 10 -0, on behalf of the
Slippery Rock Municipal Authority. The application was made
in reference to water and sewer lines being installed in
relation to the G. L. McKnight, Inc. development. Attached to
the permit application is a Narrative Report prepared by
William P. Deemer & Associates and a topographical mapping of
the project location.
a. The application was made on April 26, 1993.
b. The application number is listed as 593096.
35. On January 19, 1993, Mr. William Rosenbaum, Aqua Terra, Inc.,
directed a letter regarding the plan review of the McKnight
Phase II Development to Laura Andrusis, Executive Secretary of
Slippery Rock Municipal Authority. Rosenbaum had reviewed
four plan sheets numbered 66 -25 -W. S. -2, 3, 4, 6. Standard
drawings numbered STD -S -2, and STD -W -1, were not included, and
were requested for review by Rosenbaum.
a. Rosenbaum noted several comments, but advised that the
comments are minor and require no drawing revisions.
b. Aqua - Terra, Inca was hired after the Slippery Rock
Municipal Authority solicitor McCandless's December 1992
opinion (see finding #106).
36. Aqua Terra, Inc. submitted invoices to the. Slippery Rock
Municipal Authority for work performed in relation to the
review of the Phase II portion of the Applewood Meadows
Development.
a. The Slippery Rock Municipal Authority subsequently
invoiced G. L. McKnight, Inc. for the services provided
by Aqua Terra, Inc. in relation to the Applewood Meadows
Phase II Development.
Deemer, 92- 067 -C2
Page 15
37. Deemer inspected the installation of the water and sewer lines
in relation to Phase I of the Applewood Meadows Sewer and
Water Line Extension Project in his capacity as Slippery Rock
Municipal Authority engineer.
38. William P. Deemer & Associates was paid directly by McKnight
for all engineering services provided in regard to the
Applewood Meadows Development and Sewer and Water Line
Extension.
a. No payments were made by McKnight to the Authority for
any type of engineering services related to this
development.
b. A number of the payments made to William P. Deemer &
Associates by McKnight were made through Lucas
Engineering & Associates.
(1) Lucas Engineering & Associates performed surveying
work in relation to the Applewood Meadows sewer and
water line extension project, and development.
(2) William P. Deemer invoiced Lucas Engineering who
invoiced G. L. McKnight, Inc., including Deemer's
charges on the invoice to McKnight.
The following findings relate to the sewer and water line extension
for the Arrowhead Place Development.
39. Arrowhead Place was a development that was being proposed by
Walter Fowler.
a. The plans were submitted as one complete development.
b. Walter Fowler is a member of the Slippery Rock Municipal
Authority Board.
40. The Arrowhead Place sewer and water line extension plans were
prepared by William P. Deemer & Associates and submitted to
the Slippery Rock Municipal Authority.
a. The proposed plan and profile for water was prepared
March 7, 1990, and revised on December 4, 1990.
,.41. Minutes of the Slippery Rock Borough Council meetings confirm
the following in regard to the Arrowhead Place sewer and water
line extension.
a. September 5, 1989:
Walter Fowler discussed his intention to develop plans
Deemer, 92- 067 -C2
Page 16
for property which he owned in. Slippery Rock Township.
He approached council to request approval to tie into the
borough lift station and hook onto the West Water Street
water line.
b. October 3, 1989:
Extensive discussion regarding Walter Fowler's request
for sewer and water hookup to the Authority's lines took
place because Fowler had not developed any plans for the
extension of the water and sewer to his property. The
Comprehensive Plan required that detailed plans be
submitted and a written application with drawings of the
plan must be submitted six months prior to the expansion.
William P. Deemer participated in the discussion and
explained that Fowler had not developed plans since he
did not want to spend money on the project if council was
not going to approve it. Deemer explained to council
that no subdivision approval had been obtained by Fowler
as of that time, and that as per the Comprehensive Plan,
an agreement with the township on the proposed extension
would be obtained.
c, October 17, 1989:
Deemer asked council if they would approve Fowler's plan
for the extension of the line if all the requirements of
the Comprehensive plan were met. Council questioned
Fowler making _ a request for the approval of council long
before he submitted plans for their review. Deemer
advised council that an agreement had been drafted for
Fowler to sign in relation to the requirements of the
Comprehensive Plan.
Council subsequently voted to provide water and sewer
service to Fowler's property once he had met the
provisions of the Comprehensive Plan.
d. November 30, 1989:
Discussion was held regarding the request of Walter
Fowler to extend the water and sewer lines to his
development. Deemer explained that Phase I of the
Comprehensive Plan allows the borough the flexibility of
restricting the amount of extensions at any one time in
any one direction. Deemer explained that the plan
provides for the orderly extension of the line, and does
limit the extension as per the specific plans that are
filed for that development.
Deemer advised that the size of the existing lines would
Deemer, 92- 067 -C2
Page 17
not have to be changed in order for Fowler to extend from
them. Deemer explained that there will be all new
facilities in the township which will not require much in
the way of maintenance. This would allow the borough to
build a fund with revenues from the township and have
less burden on borough residents to replace the borough
lines.
Deemer was appointed to a smaller committee which would
include two members of council, two members of the
Authority, two members of the planning commission, and
two township supervisors along with the solicitors of the
respective boards. The committee was organized to
discuss development both in and outside the borough, and
how it would benefit borough residents.
e. March 7, 1990:
Walter Fowler submitted an Application for Water and
Sewer Line Extension for the Walter R. Fowler Property
Development, later named Arrowhead Estates (Place).
f. April 4, 1990:
Deemer submitted a report on behalf of the Slippery Rock
Municipal Authority regarding the Application for Water
and Sewer Service Extensions for Arrowhead Estates, as
developed by Walter Fowler. Deemer referenced Fowler's
letter of application. That letter and attached plans
were turned over to him for his review to report back to
the Authority for the purpose of determining the
feasibility of the project from an economic and
engineering standpoint.
(1) Deemer advised that Fowler's development would not
task the existing water and sewer system.
(2) Fowler's development would assist the Authority in
reaching several goals in relation to those things
which would help improve the Authority's lines and
water service capability. Deemer recommended that
the Authority approve Fowler's application. He
found no reason from an engineering or economic
standpoint for the Authority not to accept Fowler's
plan.
Deemer advised that Fowler had petitioned the Slippery
Rock Township Supervisors to revise their Act 537
Official Sewage Plant; change the means of disposing of
sewage in the area to a public sewage system. The
supervisors had approved the application and the
Deemer, 92- 067 -C2
Page 18
Department of Environmental Resources had issued a Part
I Sewage Permit. Deemer advised that the Authority must
make application for the Part II Construction Permit,
because they own the system. Fowler is still responsible
for paying the cost of the application fee.
(1) Deemer advised that the project was properly
designed; met the present and future needs in the
watershed; met the requirements of the Authority;
and also met the Pennsylvania Department of
Environmental Resources regulations.
(2) Deemer advised that adequate capacity was available
in the existing system to serve the area covered by
the proposal.
g. June 5, 1990:
Deemer questioned the Board as to whether Fowler's
proposal would be reviewed by the Water and Sewer
Committee for consideration. No action was taken by the
Board and no comment was made at that time.
42. Minutes of the Slippery Rock Municipal Authority confirm the
following actions regarding the Arrowhead Place sewer and
water line extension.
a. March 7, 1990:
Deemer presented Fowler's Application for Water and Sewer
Extension to his proposed development that would include
thirty -two half acre home sites and an industrial area on
Route 108 West.
b. April 4, 1990:
The Fowler application had been accepted at the last
meeting and the plan had been referred to the engineer
for his Economic and Feasibility Report.
In regards to the Fowler Project, Deemer explained the
water extension would be a start that would eventually
loop the New Castle Street and the West Water Street dead
end, thereby improving the quality of water and the
increasing flow for fire hydrants. The sewage would be
gravity flow to the pump station, and from there be
pumped to the Conways Pump Station. An application must
be made to DER because of the construction of a pump
station.
A.motion was made by Thomas John to authorize the
Deemer, 92- 067 -C2
Page 19
Chairman to sign the application to DER for the 537 Plan
for the Fowler Project. It was seconded by Elliott and
passed, with Fowler abstaining.
c. May 2, 1990:
Deemer ,presented the application for Arrowhead Estates
and explained the history to date.
Fowler was asked to leave the room before a vote was
called for on extension of water and sewer to Arrowhead
Estates. The remaining members unanimously approved it.
Fowler then returned to the meeting.
d. July 11, 1990:
Deemer reported that Pennsylvania Department of
Environmental Resources approval of Arrowhead Estates and
College Gardens had been received.
A motion was approved to issue a Sales Tax Exemption and
to authorize the execution thereof for the College
Gardens and Arrowhead Estates Project.
e. October 3, 1990:
A motion was passed to ratify the new agreement between
College Gardens and the Municipal Authority, and the
agreement between Fowler and the Municipal Authority.
The motion was passed with Fowler abstaining.
f. December :5 1990:
Fowler reported that the water line to Arrowhead Estates
had been completed and pressure tested. A motion was
approved to accept ownership and the responsibility of
maintenance and operation of the water line installed by
Fowler. The motion passed with Fowler abstaining.
A motion was approved to certify the proportionate cost
to anyone wishing to connect to the water line along the
portion of West Water Street as being $11.32 per lineal
frontage foot. The motion was seconded by Bloom and
passed with Fowler abstaining.
43. A Planning Module for Land Development was submitted to the
Department of Environmental Resources by William P. Deemer on
September 21, 1989, on behalf of property owned by Walter
Fowler in Slippery Rock Township.
a. William P. Deemer submitted a resolution for Act 537 Plan
Deemer, 92- 067 -C2
Page 20
Revision regarding the Walter Fowler property in Slippery
Rock Township.
b. Deemer's report determined that the existing Conway
Sewage Pump Station had the capacity to receive the
sewage from the .proposed sewage pump station to be
installed in the Fowler development. Deemer additionally
noted that the water line proposed by Fowler would assist
the Authority in looping the dead end distribution mains
on West Water Street and New Castle Street, thereby
providing upgraded service to all those on the line.
44. On June 21, 1990, the Department of Environmental Resources
advised the Authority that Sewage Permit #1090404 had been
issued to the Authority for the construction of a sewer
extension and pump station to serve the Arrowhead Estates
Project located in Slippery Rock Township.
45. On October 3, 1990, Walter and Dorothy Fowler entered into an
agreement with the Slippery Rock Municipal Authority and the
Township of Slippery Rock. The terms of the agreement are the
same as those set forth in the Comprehensive Plan.
a. On November 21, 1990, Walter and Dorothy Fowler sold the
Authority, for the sum of $1.00, the right -of -ways or
easements specifically for water lines installed by
Fowler.
b. On that same date, Walter and Dorothy Fowler signed a
Bill of Sale transferring ownership of the water line
installed by Fowler on his property, to the Authority.
c. Walter Fowler maintains ownership of the sewage line and
pump station as of this date.
46. On December 5, 1990, William P. Deemer issued a letter to the
Slippery Rock Municipal Authority regarding the Arrowhead Plan
owned by Walter and Dorothy Fowler in regard to the water line
installed by Fowler.
a. Deemer certified that the water line had been completed
and that he had inspected the line installation
frequently.
b. Deemer also approved the Irrevocable Letter of Credit
issued by the First National Bank of Slippery Rock on
behalf of Walter and Dorothy Fowler in the amount of
$60,000.00.
c. Deemer acknowledged the Executed Bill of Sale for the
water line in the amount of $1.00, and advised that it
Deemer, 92- 067 -C2
Page 21
was necessary to obtain a Deed of Dedication to use the
rights -of -way for the proposed streets and water lines
since the Fowlers had not recorded their plan of lots.
d. Deemer advised that he had certified the itemized cost of
the project as submitted by Fowler to be $22,746.12, for
that section of water line. Deemer established a cost of
$11.32 per lineal foot for anyone who wishes to tap into
the water line along West Water Street installed by
Fowler.
e. Deemer certified that all items that are necessary are
complied with and recommended that the Authority accept
the facilities as part of their water distribution
system. Deemer signed and sealed the Letter of
Certification.
47. William P. Deemer and Associates invoiced Walter Fowler for
engineering services in relation to Arrowhead Place
Development.
a. March 8, 1990:
Service period: 09/24/89
Services performed: Meetings
Act 537, Part I - Modules 2
water extensions, submission
Authority.
Specific Services:
Principal engineer: 19.75 hrs @ $50.00
Drafting and engineering
support: 72.5 hrs. @ 20.00
Secretarial: 3.5 hrs. @ $10.00
Prints and Photo
copies:
b. April 30, 1990:
Service period:
Services performed:
Specific Services:
Principal engineer: 18 hrs. @ $50.00
Drafting and engineering
support: 48.5 hrs. @ $20.00
Prints:
through 03/07/90
with owners, revisions to
and 4, design of sewer and
to Slippery Rock Municipal
$ 987.50
$1,450.00
$ 35.00
$ 48.00
$2.520.50
08/08/90 through 04/30/90
Meetings with owners, revisions to
plans and design of sewer and water
extensions, meetings with Slippery
Rock Municipal Authority.
$ 900.00
$ 970.00
$ 276.00
Deemer, 92- 067 -C2
Page 22
c. July 7,1990:
Service period:
Services provided:
Specific Services:
Principal engineer: 10.5 hrs. @ $50.00
Drafting and engineering
support: 18.5 hrs @ $20.00
Prints, copies and miscellaneous:
Recording fee advance
Fax Service
Prints and copies
d. October 2, 1990:
Service period:
Services provided:
Specific Services:
Principal engineer: 35 hrs.
Drafting and engineering
support: 7.0 hrs
Prints: 32 @ $4.
e. December 10, 1990:
Service period:
Services performed:
$2,146.00
05/01/90 through 07/06/90
Meetings and consultation with
owner, state and local officials and
contractors for the issuance of the
Water Quality Management Permit Part
II, construction of the sewer and
water extensions.
@ $50.00
. @ $20.00
00 each
$ 525.00
$ 370.00
$ 17.50
$ 2.00
$ 72.00
$ 986.50
07/07/90 through 10 /01/90
Meetings with owner, review and
certification of pump station plans,
inspection and consultation on -site
during construction, work on final
drafts, execution of Slippery Rock
Municipal Authority extension
agreements.
$1,750.00
$ 140.00
$ 128.00
$2,018.00
10/02/90 and 12/10/90
Preparation of as built" water
drawings and agreements with
Slippery Rock Municipal Authority,
Deed of Dedication, Bill of Sale,
cost certification, proportionate
charge calculations, inspection.
Specific Services:
Principal engineer: 22.5 hrs. @ $50.00 $1,125.00
Deemer, 92- 067 -C2
Page 23
Drafting and
support:
Secretarial:
Prints:
f. August 7, 1991:
Service period:
Services performed:
a.
engineering
4 hrs. @ $20.00
3.5 hrs. @ $10.00
12 @ $4.00
12/11/90 and 08/06/91
Inspections and work on final "as
built" drawings, meetings with
contractor.
Specific Services:
Principal engineer: 6 hrs. @ $50.00
Drafting and engineering
support: 13.75 hrs. @ $20.00
Prints: 12 @ $4.00 each
a. The plans
signature
b. Revisions
P. Deemer
1990, and
c. The plans
Profile ",
Municipal
August 5, 1987:
$ 80.00
$ 35.00
$ 48.00
$1,288.00
300.00
275.00
48.00
623.00
The following findings relate to the Poplar Forest Water & Sewer
Line Extension:
48. The Poplar Forest Sewer and Water Line Extension was a project
proposed by Nicholas R. Borgfeldt.
a. The project was submitted and developed in three phases.
49. Records of the Slippery Rock Municipal Authority show that the
Poplar Forest Water and Sewer Line Extension plans were
prepared by William P. Deemer & Associates, Consulting
Engineers.
dated June 2, 1989, do not include the seal and
of William P. Deemer.
to the original plans were prepared by William
& Associates on July 17, 1989, February 5,
August 6, 1991.
are titled "pressure sewer and water: Plan and
and were prepared for the Slippery Rock
Authority.
50. Minutes of the Slippery Rock Municipal Authority confirm the
following regarding Poplar Forest Sewer and Water Line
Extension.
Deemer, 92- 067 -C2
Page 24
Nick Borgfeldt presented the proposed plan for acreage
between Kelly Boulevard and Kennametal. Borgfeldt stated
that he would like to have the land zoned for
residential, as well as light industrial use. Also, he
would like to purchase a tract of land owned by the
borough, which is in the middle of it.
b. April 5, 1989:
Deemer reported that Borgfeldt is ready to install the
water line through his property. He is to use a 8" line.
Deemer recommended that a 10" line be used instead,
citing the advantage of a 10" attached to 8" parallel
lines would s on power. When asked whether the
advantage would be worth the expenditure, Deemer advised
that he would rather spend it where it is needed now, not
thirty years from now. The consensus of the Authority
was to stay with the 8" line.
c. July 5, 1989:
A motion was approved giving the chairman authorization
to sign the necessary construction permits for the
Borgfeldt, and Campbell projects.
d. August 2,A.989:
e. November 1, 19189:
Deemer- reported that the:537 Plan Revision on the
Borgfeldt plan has never been returned by DER. Borgfeldt
has no sewage permit, although representatives from DER
had given verbal agreement at the June 29, 1989 meeting.
f.. December 6, 1989:
g.
Deemer reported that approximately 700 feet of sewer line
has been installed in the Borgfeldt project, and the road
is in past Renick's house.
Deemer reported that nothing more has been heard
concerning the Borgfeldt 537 Plan. It has been returned
from Meadeville to New Castle for more processing. With
the water line through the Borgfeldt project, soon there
will be parallel -feed lines to the borough.
January 3, 1990:
Deemer reported that he had talked to DER and that he
should hear about the 537 Plan for Borgfeldt in a week or
Deemer, 92- 067 -C2
Page 25
two. The parallel feed line is not in operation yet
since the cold water forced the delay of installing the
necessary fire hydrants.
h. February 7, 1990:
J
Deemer reported that the 537 Sewage Plan for Borgfeldt
has been approved.
i. March 7, 1990:
Deemer reported that a letter dated January 23, 1990,
from DER approved the Borgfeldt 537 Plan, and informed
him that under the new Act 40, there would be no need to
file any more permits for that plan since no pump station
is needed in it. The parallel feed line for water from
the plant has to be charged and put into service this
week.
July 10, 1991:
A letter was received from Robb, Leonard & Mulvihill,
representing Nick Borgfeldt, stating that the water and
sewer lines in Poplar Forest up to Lot 205, have been
installed in accordance with the Municipal Authority's
requirements. Deemer reported that the lines should be
ready for the Authority to accept by the next meeting.
The Authority agreed that they should require a
maintenance bond in the amount of 15% for eighteen
months.
k. August 7, 1991:
Deemer reported that the water and sewer lines in Phase
I and II of the Poplar Forest Plan are complete and that
Borgfeldt is requesting the Authority to accept these
lines. Following considerable discussion, a motion was
made, seconded and approved, to accept the lines in Phase
I and II with the following provisions:
(1) Borgfeldt provides the Authority with a maintenance
bond in the amount of 15% of the construction cost
for a period of eighteen months;
(2) Borgfeldt provides the Authority with a performance
bond (100% of construction cost) on Phase III.
(The current performance bond is in the name of the
borough for the water and sewer lines).
(3) Borgfeldt installs a valve on the sewer line at the
end of Phase II.
Deemer, 92- 067 -C2
Page 26
1. September 4, 1991:
Nick Borgfeldt addressed the Authority, requesting they
accept the water and sewer lines for his entire project
in the Poplar Forest (Phase I, II, and III). He stated
that in turning over the entire project, it would enable
him to enter into a right -of -way agreement with Zedmark
to tie them into the Authority sewer line. Borgfeldt
stated he would be responsible for any modifications to
the lines. A motion was made to accept the water and
sewer lines in Poplar Forest upon receipt of a
maintenance bond in the amount of 15% for a period of
eighteen months. The amount of the bond will be
$18,680.78. The motion was approved.
m. January 8, 19
Paul Dickey, Water Supervisor, reported that he and
Deemer were planning to do an evaluation of pump size for
each lot in the Poplar Forest Plan. He said it would
take approximately half of a day of Deemer's time.
n. May 5, 1993:
A letter was read from Robb, Leonard & Mulvihill
requesting the release of the Letter of Credit posted as
maintenance bond by Nick Borgfeldt for the water and
sewer lines in Poplar Forest. A motion made to
release the Letter of Credit was seconded and approved.
51. By way of letter dated July 17, 1989, to the Butler County
Planning Commission, William Deemer, as Authority Engineer,
submitted copies of the planning modules pertaining to the
Application for Sanitary Sewer Extension for the Poplar Forest
Project. (See finding #54).
a. Deemer requested that the Planning Commission review the
modules and provide a letter including comments that are
applicable to the extension and the area under
development as required under 14.
b. The planning modules were also submitted to DER as
required under Act 14, and the application process for a
Water Quality Management Permit to cover the construction
of this extension to the Slippery Rock Municipal's
Authority sewer system.
52. In response to Deemer's letter of July 17, 1989, Margaret
Ford, Planning Directbr of the Butler County Planning
Commission responded on August 17, 1989.
Deemer, 92- 067 -C2
Page 27
a. Ford advised that the Planning Commission approved the
development based on the availability of sewage treatment
by the Municipal Authority.
b. The Planning Commission reviewed the planning module for
Poplar Forest Development and approved the revision of
the official plan of the Borough of Slippery Rock for
these developments.
c. The same letter covered the review of planning modules
submitted for the Zedmark, Incorporated development. The
Zedmark Development utilized the lines installed by Nick
Borgfeldt for Poplar Forest.
53. A Planning Module for Land Development was submitted by
William P. Deemer to Pennsylvania Department of Environmental
Resources for the Poplar Forest Subdivision. The planning
module is signed and sealed by William P. Deemer, and dated
July 10, 1989. Included were:
a. A topographical mapping of the locations of both
developments.
b. A Narrative Report to accompany the Act
537 Sewerage Plan Revisions for Poplar Forest and
Zedmark, Incorporated.
c. A Narrative Report to accompany Act 537 Sewerage Plan
Revisions for Slippery Rock Borough and Slippery Rock
Township, Butler County, Pennsylvania.
d. The component IV for the Planning Module for Land
Development prepared by William P. Deemer, signed and
sealed on July 17, 1989.
54. A transmittal letter and a resolution for plan revision for
Poplar Forest Projects, dated June 6, 1989, was prepared by
William P. Deemer.
a. The plans were revised on September 7, 1989, and December
14, 1989.
b. The copies provided do not include the signature or seal
of William P. Deemer as engineer.
55. By way of letter dated August 5, 1991, William P. Deemer
provided the Authority with a Letter of Certification
regarding the installation of the water and sewer lines in
regard to the Poplar Forest Plan, Phases I, and II. Deemer's
letter advised as follows.
Deemer, 92- 067 -C2
Page 28
a. He had inspected the line installation frequently and is
satisfied with same.
b. Once the Letter of Credit issued by the First National
Bank of Slippery Rock, on or about August 13, 1991, is
received by the Authority, the requirements of the
Authority will have been met.
c. Other requirements of the Comprehensive Plan have been
complied with.
d. An itemized cost breakdown of the construction costs for
the water and sewer lines in Phase I and II. Deemer
recommended that the Authority accept the facilities
constructed by Nicholas Borgfeldt in Poplar Forest Plan,
Phases I and II, as part of their water distribution
system.
56. Minutes of the Borough Council meetings confirm the following
regarding the Poplar Forest project.
a. January 2, 1990:
Borgfeldt discussed Phases II and III of the Poplar
Forest Plan, council will approve the partial revision of
Phase I, Phase II, and III, of the Poplar Forest Plan,
subject to the execution of a Developer's Agreement.
(1) Borgfeldt's plans for Phase I, II, and III, had
been approved in total in 1 when Phase I was
developed.
b. August 7, 1990:
Council approved the Irrevocable Letter of Credit to
include the completion of Phase I, as well as Phase II
and III, of the Borgfeldt Poplar Forest Plan. The Letter
of Credit satisfied the requirement of the Comprehensive
Plan that a bond be posted upon the completion of the
development. The bond was held for specific time to
cover any problems with the maintenance or installation
of the water and sewer lines during that time.
57. After the January 2, 1990, Council meeting, William P. Deemer
offered his services to Borgfeldt, and advised that he could
help with the sewer and water line extension, and some of the
work on the master plan.
a. Deemer was located in Slippery Rock, and as Authority
Engineer, knew the water and sewer system.
Deemer, 92- 067 -C2
Page 29
b. Deemer never indicated in any way that hiring him could
be beneficial to Borgfeldt or his plan.
58. Borgfeldt experienced problems in 1991
to DER regulations.
in Phase III relating
a. Borgfeldt retained a new engineer, Norm Straub, who was
also the borough engineer.
b. After this time, Deemer was no longer used on the Poplar
Forest Plan.
The following findings relate to College Gardens Apartments, Water
and Sewer Line Extension, (also known as the Kiester Road
Apartments).
59. The College Gardens Apartments Water and Sewer Line Extension
was being proposed by JGame Properties, owners of the
property.
a. JGame Properties employed Arbors Management,
Incorporated, to manage College Gardens Apartments.
b. Mr. Edward Quinlan is owner of Arbors Management, Inc.,
and a partner in JGame Properties.
60. Plans for the College Gardens Apartments Water and Sewer Line
Extension were prepared by William P. Deemer & Associates.
61. Minutes of the Slippery Rock Municipal Authority reflect the
following regarding the College Gardens Apartments Water and
Sewer Line Extension.
a. April 5, 1989:
Edward Quinlan, head of the management company that
operates the Kiester Road Apartment complex, College
Gardens Apartments, expressed interest in obtaining water
and sewer service from the borough. Deemer assessed the
situation and determined how best to extend service to
the site. Also, he gave Quinlan an estimate of the cost
and the amount of tap fees under guidelines of the
Comprehensive Plan.
b. May 3, 1989:
Deemer did some work on the engineering design for the
feasibility of water and sewer to the Kiester Road
Apartments. He showed the Municipal Authority a map of
how it could possibly be handled. Quinlan is paying for
this Feasibility Report; it would be his decision on how
Deemer, 92- 067 -C2
Page 30
to proceed.
c. June 7, 1989:
The Chairman read the letter of May 5, 1989, from Ed
Quinlan concerning the extension of water and sewer to
the Kiester Road Apartments, and his request to have the
tap fees reduced. It is not the Authority's
responsibility to set and charge the tap fees, that is
the responsibility of council because of the lease -back
agreement between the Authority and the borough. The
opinion of the Authority is that Deemer should present
the situation to council. The Authority feels that there
may be some possibility in negotiation of the water tap
fees since there is not a meter for each apartment. The
Authority feels there is little room to consider
negotiating sewer tap fees.
d. September 6, 1989:
Ed Quinlan attended the school board meeting of August
28th, to request a right -of -way for a water line to the
Kiester Road Apartments. Deemer said the board appeared
favorable to his request.
e. October 4, 1989:
Deemer reported that council will act on the ordinance
that will raise the tap fees for water and sewer at their
October 17th meeting.
The school• board has asked that the right -of -way for the
water line to College Gardens Apartments on'Kiester Road
be along the road instead of across their practice field.
Deemer has drawn the plans accordingly. The question was
brought up whether the Authority should ask for the
right -of -way first, or wait to see if council approves
the extension of water and sewer. Deemer's opinion is to
ask for the right -of -way. If it is not approved, the
Authority still has the right -of -way.
A motion was approved for the Authority to send letters
to the school board and the Coopers to procure the
necessary right -of -ways to extend water and sewer lines
to College Gardens Apartments on Kiester Road.
f. January 3, 1990:
Deemer reported that Quinlan (Kiester Road Apartments),
was still interested in obtaining water and sewer
service. Quinlan had Deemer doing the engineering design
Deemer, 92- 067 -C2
Page 31
of the water line so that when the moratorium was lifted,
he could proceed.
g. March 7, 1990:
Deemer presented Quinlan's Application for Extension of
for Water and Sewer Line to the College Gardens
Apartments on Kiester Road. He showed and explained the
plans. He projects that the Authority will receive
approximately $87,500.00 annually in revenue from it with
less than $10,000.00 annually to service it. The project
has been figured into the annual report, so that without
the revenue from it, water and sewer rates would have to
be increased. The Municipal Authority, as a group,
accepted the application.
h. April 4, 1990:
Since the Arbors Management Application had been accepted
at the last meeting, the plans had been referred to the
engineer for his Economic and Engineering Feasibility
Report. Deemer passed out copies of his report and
explained that College Gardens would have to apply for a
Public Water Supply Permit. All construction for water
would be on private rights -of -way. This extension would
improve water quality in the Cross and High Street area
by flushing the dead -ends. There would be no outlay of
borough or Municipal Authority money for either water or
sewer extension. All sewage would be by gravity flow
except for the lower building and the laundry where a
grinder pump would be installed and operated by Arbors
Management. Both water and sewer lines would be extended
across the property to Harmony Road.
i. May 2, 1990:
Deemer presented the first application which was from
Arbors Management for water and sewer service to College
Gardens Apartments on Kiester Road. Their formal
application had been made by the letter March 7, 1990, to
the Authority, of which a copy had been given to council.
At the March meeting, the Authority had reviewed it and
referred the application to the engineer for his Economic
and Feasibility Report, as required under Item 8 of the
Comprehensive Plans. Deemer had given his report at the
April meeting in which he stated that the extensions were
feasible and economical and would increase the income of
the Water and Sewer Fund by approximately $87,000.00 per
year, with an outlay of two or more meters to read and
enough electricity to run the pumps about 62 minutes per
day.
Deemer, 92- 067 -C2
Page 32
j
A motion was approved unanimously allowing an extension
of water and sewer to College Gardens Apartments.
August 1, 1990:
Deemer reported that the Right -Of -Way Acquisition for the
College Gardens Apartments project is moving along.
Deemer presented two bills - one in the amount of $315.00
for surveying°the'College Gardens Right -of -Way, and the
other in the, amount of $2,932.25, for engineering
services towards "refinancing the bond issue. The motion
to pay the bills was seconded and approved.
k. October 3, 1990:
A motion was made to ratify the new agreement between
College Gardens and the Authority. The motion was
seconded and approved.
1. February 6, 1991:
Deemer reported that he understood that contracts had
been signed for the College Gardens project.
m. March 6, 1991.:
Deemer reported that work is progressing at College
Gardens Apartments and that they are nearly ready to
connect sewer lines. Laura Andrusis, Executive
Secretary, was directed to bill College Gardens for their
tap fees.
n. May 1, 1991: .
Deemer reported that the College Gardens Apartments on
Kiester Road are now 100% on line for water and sewer.
o. November 6, 1991:
Laura Andrusis reported that she had received a letter
from Mr. Quinlan of Arbors Management requesting
information on turning the public portion of the water
and sewer lines to College Gardens Apartments over to the
Authority. She had sent the necessary information to
Quinlan.
June 2, 1993:
A letter was read from Edward Quinlan of JGame requesting
Deemer, 92- 067 -C2
Page 33
the release of the Certificate of Deposit held as a
maintenance bond for the water and sewer lines for
Kiester Road Apartments. The bond expires June 4, 1993.
A motion was made to release the Certificate of Deposit
on June 4, 1994. The motion was seconded and approved.
62. Arbors Management sewer and water line extension for the
College Gardens Apartments project in Slippery Rock Township
included plans titled, "Plan and Profile of the Proposed
Sanitary Sewer and Water Extension along Kiester Road - S. R.
Township - Butler County - Pennsylvania ".
a. The plans were prepared by William P. Deemer & Associates
on March 2, and March 4, 1990.
b. Additional revisions to add "as- built" drawings were made
on October 26, 1990 by Deemer.
c. Both plans are signed and sealed by William P. Deemer,
Engineer.
63. By way of letter, dated April 18, 1986, Deemer advised Edward
Quinlan regarding his inquiry into obtaining water and sewer
service for the College Gardens Apartments, of the following:
a. The Authority had adopted a policy regarding the
extension of water service into the township, but had no
policy for sewer service extension.
b. In addition to the cost of extending an 8" line, Quinlan
would be responsible for the costs of the engineering and
legal expenses.
64. On January 4, 1989, the Act 537 Sewerage Plan Revision Module,
was submitted by Slippery Rock Township to Pennsylvania
Department of Environmental Resources, in regard to the
sewer and water line extension proposed by College Gardens
Apartments.
a. Deemer prepared a Project Narrative Report which was
submitted with the module which provided in part:
The Borough and Authority had given general
approval for the proposed extensions.
The Authority systems had the capacity to handle
the water and sewer service to the apartments.
The customer would be required to operate and
maintain those portions of the system not being
taken over by the Authority.
Deemer, 92- 067 -C2
Page 34
65. On November 14, 1989, Deemer submitted a Progress Report to
Mr. Edward Quinlan, Arbors Management, Inc. which contained
the following.
a. Deemer met with the. Slippery Rock School Board to
negotiate necessary right -of -ways for the line extension.
He had also contacted West Penn Power Company regarding
possible right -of -ways across their property.
b. Thomas Construction installed a meter so that a
determination could be made on average water consumption.
A figure of $8,750.00, per month for water and sewer
service was determined by Deemer. This would average out
to approximately $87,500.00, per year. Prior operating
costs for the old system ran about $30,000.00 per year.
The water and sewer line would represent an increase of
approximately $33.00 per month, per apartment.
c. A new rate schedule would significantly reduce the cost
for the tap fee from $35,300.00, to $7,800.00. This
included tap fees for water and sewer combined.
66. On May 2, 1989 Ed Quinlan, Arbors Management, Inc., advised
Slippery Rock Borough Council President, Caroline Miller, of
the intention to install water and sewer lines to the College
Gardens. Apartments.
a. Quinlan and William Deemer, the borough engineer, had
discussed the most economical way to install the water
and sewer lines.
b. Quinlan requested a reduced tap -in charge for the 174
units included in the proposal which Deemer determined
the cost to be $35,000.00.
c. Since all 174 units would be tapped At one time, Quinlan
proposed a reduced tap -in charge.
67. By of letter dated May 12, 1989, William Deemer advised
Edward Quinlan, Arbors Management, Inc., that he had
determined the best way to provide water and sewer service to
the College Gardens Apartments complex.
a. Deemer estimated the project cost for the sewer line
including the Feasibility Study conducted by himself;
designed drawings; permits; fees; agreements; and
inspections would total $55,530.00.
68. Arbors Management, Inc. utilized Thomas Construction, Inc. to
perform the installation of the water and sewer lines.
Deemer, 92- 067 -C2
Page 35
69. Deemer presented a request for a right -of -way for the water
and sewer line extension of College Gardens Apartments to the
Slippery Rock Area School Board by letter dated September 12,
1989.
a. Deemer advised the Board that he has represented the
Slippery Rock Municipal Authority and Slippery Rock
Borough Council, as Authority and borough engineer, for
sixteen years.
b. The letter served as a formal notification of a request
received by the Board for line extensions to College
Gardens Apartments. Deemer and Quinlan had attended the
August 28, 1989, school board meeting.
70. Based on Deemer's proposals on the benefits of the line
extensions for all parties concerned, Gladys Hilgar, Secretary
of the Municipal Authority, wrote a follow -up letter to the
school board dated October 4, 1989.
a. Hilgar advised that the project was within the guidelines
of the Comprehensive Plan, and that it would be
constructed to the satisfaction of the consulting
engineers.
71. On March 7, 1990, Edward Quinlan submitted a Letter of
Application to the Slippery Rock Authority on behalf of Arbors
Management, Inc. in regard to the sewer and water line
extension to College Gardens Apartments.
72. By way of letter dated June 27, 1990, the Pennsylvania
Department of Environmental Resources, Bureau of Water Quality
Management, approved of the Module for Land Development for
the College Gardens Apartments, Slippery Rock Township.
73. On October 3, 1990, the Slippery Rock Municipal Authority,
Township of Slippery Rock and JGame Properties, (care of
Arbors Management, Inc.), entered into an agreement for the
extension of water and sewer lines to the College Gardens
Apartments located in Slippery Rock Township.
a. As part of the agreement, the developer assumed the
responsibility of meeting the required specifications and
paying for all costs incurred by the Authority relating
to the review, inspection and approval of the project.
74. On October 18, 1990, William Deemer prepared a report titled
Specifications for Construction of sewer and water lines for
the College Gardens Apartments located on Kiester Road,
Slippery Rock Township, Butler County, Pennsylvania. The
specifications were revised on October 29, 1990. The cover
Deemer, 92- 067 -C2
Page 36
page for the report is signed and sealed by William P. Deemer.
75. On February 18, 1991, Deemer explained to Quinlan in a letter
that information contained in a Thomas Construction letter,
dated February 13, 1991, was misleading. Thomas Construction
indicated that "all engineering is complete and permits have
been obtained ". Deemer offered the following:
a. Enough engineering had been done to know that the
project, as proposed, would work within the scope of the
project.
b. He will be there daily to make sure it is installed in
accordance with the Authority's specifications.
c. Survey the actual facility as constructed and prepare
"as- built" drawings.
d. Describe the right -of -way across his property to include
all facilities to be turned over to the Authority.
e. Quinlan needs to dedicate the right -of -ways to Authority
ownership and maintenance and comply with the additional
requirements of the Comprehensive Plan.
76. On March 18, 1991, JGame Properties completed an application
and agreement for water and/or sewer service connections and
continued service to the Slippery Rock Municipal Authority.
a. The agreement is signed by Paul Dickey, Slippery Rock
Authority Representative, and Edward J. Quinlan on behalf
of JGame Properties.
b. The application required information regarding the
estimated flow for water and sewer, number of units being
connected, cost for connections, etc.
77. On August 8, 1991, Deemer advised Quinlan by letter, that the
construction of the project is in its completion phase. A
number of items need to be completed under the requirements of
the Comprehensive Plan, and Deemer requested a meeting after
August 20, 1991.
78. A plan (drawing) prepared by William P. Deemer & Associates on
November 27, 1991 was completed on behalf of Slippery Rock
Area Municipal Authority, and included right -of -ways for sewer
and water extension along Kiester Road (College Gardens
Apartments).
a. The plans were prepared utilizing the company heading of
William P. Deemer & Associates.
Deemer, 92- 067 -C2
Page 37
b. The seal and signature are that of Charles L. Hinds,
Lucas Engineering.
c. Hinds signed the plans as a registered Professional
Surveyor, certifying that the plan is based upon actual
field survey of the land described.
d. The signature and seal of William P. Deemer do not appear
on these plans.
79. On November 29, 1991, Deemer sent Edward Quinlan the right -of-
way Deed of Dedication and Bill of Sale requiring his
signature.
a. Deemer recommended a 15 %, eighteen month maintenance
bond, or approximately $15,000.00.
b. Deemer submitted a copy of his proposed letter to the
Authority setting forth the project cost, which the bond
was based upon, which he estimated to be $118,729.70.
c. On December 2, 1991, Edward Quinlan provided the signed
Deed of Dedication and Bill of Sale to Deemer regarding
the College Gardens Apartments.
80. By way of letter, dated December 4, 1991, William Deemer
recommended to the Slippery Rock Municipal Authority that they
accept the water and sewer lines to the College Gardens
Apartments. His letter included the following.
a. He had inspected the line installation frequently, and
was satisfied that it is an excellent addition to the
Authority's system.
b. The lines had been tested, problems rectified, and the
line had been holding the working pressure since May,
1991. The sewer system had been on line since June,
1991.
c. The Certificate of Deposit assigned to the Authority was
of acceptable form, in the proper amount, and would
satisfy the requirements of the Authority for guarantee
of maintenance of the line for an eighteen month period
at 15% of the cost of construction. Deemer recommended
that the Authority accept the amount in lieu of the 100%
cost for twelve months as set forth in the agreement.
d. All necessary legal right -of -ways and Bills of Sale had
been executed.
e. He certified the proportionate cost for the water line,
Deemer, 92- 067 -C2
Page 38
should additional development occur, which would utilize
the lines installed for College Gardens Apartments, to be
$25.10 per lineal foot.
f. On a separate page, Deemer delineated the project cost
which included engineering design and supervision, right -
of -way, inspection, etc., for the water line to be
$7,759.00. The total cost of the project was $57,917.00.
The engineering for the Sewer line was estimated to be
$7,759.00 (1/2 of the amount allocated for both the water
and sewer line costs). Total cost of the sewer line:
$60,812.70. Deemer certified that the expenses were
correct and true and represent only those costs
attributable to the public lines which are being
dedicated to the Slippery Rock Municipal Authority for
public use. Deemer signed and sealed the attached page.
81. Deemer advised the Authority by way of letter dated December
10, 1991, that he had received the proper maintenance bond
from JGame Properties, in the amount of $15,000.00.
82. A partial listing of William Deemer Associates invoices to
JGame Properties, c/o Arbors Management included the
following.
a. April 13, 1990:
Service period:
Services performed:
Total:
b. April 5, 1991:
Service period:
Services performed
Total:
c. May 6, 1991:
Same invoice as
d. December 23,; 1991:
Service period:
1989 through April 13, 1990
Submission of plans to the Slippery
Rock Municipal Authority, meetings
with borough and Slippery Rock
Municipal Authority representatives,
letters and blue prints.
$1,094.50.
Through March 31, 1991
: Engineering supervision and
inspections.
$1,975.00.
04/05/91 with
a 1.5%
surcharge.
Through December, 1991.
Deemer, 92- 067 -C2
Page 39
Services performed: Engineering and survey work to
complete requirements for final
acceptance by the Authority.
Total: $1,500.00.
83. By letter dated January 7, 1991, Deemer advised Quinlan that
his original estimate of 5/12/89 totaled $11,000 but did not
include certain increases.
84. On May 16, 1991, Quinlan advised Deemer that the invoice in an
amount of $2,004.63 would not be paid because of an error in
the design of the sewer line resulted in additional costs of
$6,000 or more.
a. Quinlan further advised that a lawsuit was being
considered.
The following findings relate to the Basta /Messer Water Sewer Line
Extension Project.
85. The Basta /Messer Sewer Line Project was a project that was
being proposed by Jeffrey and Mary Messer, and John and Joanna
Basta.
a. This project involved a short line extension to an
individual property, not a development.
86. Records of the Slippery Rock Municipal Authority indicate that
the Basta /Messer Sewer Line Extension Plan was prepared by
William P. Deemer & Associates and signed and sealed on June
3, 1992.
87. Minutes of the Slippery Rock Municipal Authority reflect the
following regarding the Basta /Messer Sewer Line Extension
Project.
a. May 6, 1992:
Deemer reported that according to DER, a 537 Plan will
not be needed for the Basta property on Kiester Road for
the sewer extension they are planning.
b. June 3, 1992:
Deemer presented plans for a sewer line extension for the
Basta and Messer property on Kiester Road. He reported
that they are in the process of obtaining a right -of -way
from JGame. A motion was approved to enter into an
agreement for the extension of the sewer line with Basta
and Messer, and to authorize the proper officials to
Deemer, 92- 067 -C2
Page 40
execute the agreement.
c. December 2, 1992:
Deemer reported the Basta /Messer Sewer Extension on
Kiester Road was complete, and he had inspected the line
and certified that it meets the construction and testing
standards of the Authority. He recommended the Authority
take ownership of the line subject to the posting of
Proper Maintenance Bond and Bill of Sale.
It was suggested that an outside engineer inspect and
certify the line, as. Deemer was also engineer for
Basta /Messer. It was recommended that the Executive
Secretary contact Aqua Terra to see if they would do
this. Discussion followed regarding the fact that since
the line had already been buried, another engineer could
not inspect it.
A motion was approved to accept ownership of the line
pending receipt of the maintenance bond and Bill of Sale.
The Executive Secretary was instructed to contact the
solicitor for advice on how certification of other
projects where Deemer was the engineer for the developers
should be handled, and to contact Aqua Terra to see if
they would be interested in this.
88. By way of letter, dated June 3, 1992, William Deemer reported
to the Slippery Rock Municipal Authority with recommendations
regarding the Basta /Messer Sewer Extension.
a. Deemer contacted the Department of Environmental
Resources relative to the need for an Act 537, Plan
Revision Filing, for the extension and was informed by
DER that such a plan revision was not necessary.
b. Deemer reviewed the plans for the owners, and checked the
requirements of the Comprehensive Plan and the agreement
between the borough and the township for sewer line
extensions.
c. Deemer certified that all requirements had been met, and
recommended that since the proposal was found to be
feasible from an economic and engineering standpoint,
that the agreement be authorized.
89. An agreement between Slippery Rock Municipal Authority,
Slippery Rock Township, Jeffrey and Mary Messer, and John and
Joanna Basta was entered into on June 3, 1992.
Deemer, 92- 067 -C2
Page 41
a. A Right -Of -Way Agreement with JGame Properties was signed
on June 17, 1992.
90. Based on information provided by Deemer, a letter was written
to Basta /Messer by Laura Andrusis, Executive Secretary of the
Slippery Rock Municipal Authority. The letter advised that
the outstanding cost of the engineering fees for the project
would not exceed $400.00.
91. In a letter to the Authority, dated December 1, 1992, Deemer
certified that he had inspected the Basta /Messer Sewer Line
Extension; tested the line and certified that it meets the
construction and testing criteria of the Authority; prepared
two copies of the "as built" drawings, showing the line as
constructed; and recommended the Authority take ownership of
the line.
a. Deemer also determined that, as per the Comprehensive
Plan, a 15% bond to be held by the Authority for a
fifteen month period, would amount to $600.00.
b. The total cost of the line extension by Thomas
Construction Company came to $4,000.00.
92. On December 1, 1992, Deemer provided the Authority with an
invoice for work performed relating to the Basta /Messer
Extension. The invoice included services relating to the
review of the design, certification of the engineering,
economic feasibility, the inspections during the construction,
the "as built" drawing, the certification of the maintenance
bond requirement, and the recommendation of acceptance of the
line by the Authority. The following costs were detailed:
Principal Engineer - 3.0 hrs @ $50.00 per hr = $150.00
Drafting - 6.0 hrs @ $ ?0.00 per hr = $120,00
Secretarial - 1.0 hrs @ $12.00 per hr = $ 12.0D
Field Survey Work "as built " - 1.5 hrs @ $55.00 per hr = $82.50
Print 4 @ $4.00 each = $ 1640
Total amount due = $380.50
93. At the December 2, 1992 Authority Board meeting, Deemer
reported on the Basta /Messer Extension. He advised the Board
he had inspected the line, and that it was completed according
to the construction and testing standard of the Authority.
Deemer recommended that the Authority take ownership of the
line subject to the posting of the maintenance bond. The
Board accepted ownership of the line.
a. One of the Board members recommended having an outside
engineer inspect and certify the line, since Deemer was
Deemer, 92- 067 -C2
Page 42
also the engineer for Basta /Messer. The problem was that
the line had already been buried.
b. Laura Andrusis was instructed to contact the solicitor
for advice on the certification of other projects where
Deemer was the engineer for the developer, and how it
should be handled. (see finding #105).
The following findings relate to the Davcol, Inc., Corporated Sewer
and Water Line Extension project.
94. The Davcol, Inc. Sewer and Water Line Extension project was
submitted by the owners, Don and Florence Bronder.
95. Records of the Slippery Rock Municipal Authority indicate that
the Davcol, Inc. /Bronder water line extension plans were
prepared by William P. Deemer & Associates.
a. The plan is titled, "Proposed Water Line Extension to the
SRMA System for Davcol, Inc. and Others."
b. The plans were drawn on August 4, 1992.
c. The plans were signed and sealed by William P. Deemer,
dated August 5, 1992.
96. In relation to the Davcol, Inc. /Bronder Water Line
Extension project, minutes of the Slippery Rock Municipal
Authority confirm the following.
a. December 4, 1985:
The Authority received a check from Davcol in the amount
of $225.00 as partial payment of the engineering and
legal fees incurred when Davcol considered tapping into
the borough water system.
b. January 8, 1986:
The check from Davcol in the amount of $225.00 is to be
transferred to the borough since they have paid Deemer
and will handle the balance of Davcol's payments.
c. April 1, 1992:
The 537 Planning Module for Davcol, Inc., for a
development of 9.7 acres on West Liberty Road, Slippery
Rock 'Township.
d. August 5, 1992:
Deemer, 92- 067 -C2
Page 43
Deemer presented plans for the extension of a water line
to service the Bronder property from West Liberty Road.
Deemer reported that the plans are in compliance with the
requirements of a Comprehensive Plan, and that the
proposal is sound from an engineering aspect and is
feasible from an economic standpoint. A motion was
approved authorizing the execution of an agreement for
the extension of the water line.
Deemer reported that the Highway Occupancy Permit has
been sent for this project in the Authority's name since
the Authority will be the owner and maintain the lines in
the future. He reported that approval from DER for the
537 Plan Revision for the extension on the sewer line for
this project has been received, and that once the owner
has determined the most beneficial way to route the sewer
lines, they will proceed with the design.
e. September 10, 1992:
Deemer reported that the Bronder Agreement for the Water
Line Extension is ready to sign, and that the Authority
has received the Highway Occupancy Permit from PennDOT
for the water line. He reported that there has been no
further action on the sewer line yet.
f. October 7, 1992:
Deemer reported that Bronder's water line on West Liberty
Road is now complete except for the final connection.
Nothing has been submitted as yet on the sewer line for
that property.
g. January 6, 1993:
Deemer reported that Bronder is working on an agreement
with McKnight for the sewer line to Bronder's property.
He reported that McKnight is ready to start Phase II of
his plan.
97. By way of letter dated August 5, 1992, William P. Deemer
advised the Authority that the approval from DER for the Act
537 Plan Revision filed for the Davcol, Inc. proposed
sewer line extension was received.
a. He further advised that the water line extension plan has
been prepared for the owners, and he has checked them for
compliance with the requirements of the "Comprehensive
Plan ", and certifies that all requirements have been met.
b. He recommended that the Authority authorize the execution
Deemer, 92- 067 -C2
Page 44
of the required agreement permitting the construction of
the extension subject to the provision of the Authority
of the necessary right -of -way, and further their
complying with the Comprehensive Plan.
c. He advised that the Authority is applying for a PennDOT
Highway Occupancy Permit. The permit is being applied
for in the Authority's name since the Authority will
ultimately maintain the line.
98. A Transmittal letter and Resolution for a Plan Revision for
New Land Development, and a Sewage Facility's Planning Module
were submitted on behalf of Davcol, Inc. and others. The
documents were prepared by William P. Deemer, and are signed
and sealed by him.
a. The named applicant on these sewage facilities planning
module is Florence Bronder.
b. The Chairman of the Authority, Thomas John, signed the
Sewage Planning Module on April 1, 1992.
c. A notarized statement accompanies the documents, and is
signed by Laura Andrusis, Executive Secretary for the
Authority, and Kenneth Bronder. The statement was
notarized on September 11 and September 16, 1992,
respectively.
99. Pursuant to the requirements" of the Comprehensive Plan, an
Administrative and Professional Services Agreement was
prepared between the Authority and Davcol, Inc. on September
8, 1992.
a. Davcol agreed to comply by the requirements of the
Comprehensive Plan for the Expansion and Extension of the
Slippery Rock Municipal" Authority's Water and Sewer
System.
b. The agreement also provided in part that the developer
agrees to pay reasonably incurred costs of the Authority
for Administrative, engineering, and legal fees necessary
to proceed with the implementation of the
Plan.
c. The agreement is signed by Catherine M. Bronder,
Secretary, and Kenneth L. Bronder, President.
d. On behalf of the Authority, the Agreement is signed by
Laura Andrusis, Executive Secretary.
100. No additional documents or invoices were available from the
Deemer, 92- 067 -C2
Page 45
Authority regarding this project.
The following findings relate to the sewer line extension project
to the LeBanno property. project that
101. The LeBanno sewer line extension project was a p ro j
was being proposed by Philip LeBanno.
that
102. Records of the Slippery Rock Municipal Authority indicat
William
the LeBanno Sewer Line Extension Plan wasp p a
P. Deemer & Associates.
plan was prepared by William P. Deemer &
a. The original P
Associates on July 8, 1991.
b. The plan and profile of the prop osed sewer
sanitary ary s s by
extension for the LeBanno property was p pared
William P. Deemer & Associates
n signed and sealed by
William P. Deemer, and is undated.
to the LeBanno property sewer line extension,
103. I n relation
minutes of the Slippery Rock Municipal Authority reflect the
following.
a . April 3, 1991:
Bud LeBanno requested permission to extend the sewer line
P his property on H a stated that he intends totduplex the
the
Phase ase I area. He st
property, and that the township will only permit the
e system.
duplex if he can tap into the public
LeBanno was informed that i e the ComprehensivemPlanwfor would have to
the procedures set forth
extension. Deemer said he would also ha o
comply with the provisions of Act 537, if that property
was not included in the 537 Plan for College to a rd e o w
ns
Apartments. There was a motion by
LeBanno to proceed with the planning of the sewer line
extension. The motion was seconded and approved.
b. May 1, 1991:
Deemer reported the LeBanno property on Ha e
not been included in the 537 Planning to
Gardens Apartments�es LeBanno hwould ahnew shorteryform
himself. He also reported there
which should take less
for minor 537 revisions (3a),
review time by DER.
c. September 4, 1991:
Deemer, 92- 067 -C2
Page 46
Deemer reported that he has completed the Feasibility
Study for the request for an extension of sewer by Bud
LeBanno on Harmony Road, and recommended the Authority
enter into a formal agreement with LeBanno to extend the
sewer line as requested. There was a motion to enter
into an agreement with LeBanno. The motion was seconded
and approved. A motion was then made to authorize the
proper officials to execute the agreement once it is
prepared by the solicitor. The motion was seconded and
approved.
The project was never completed.
104. On April 4, 1989, Slippery Rock Borough adopted a new
ordinance authorizing the installation and operation of
alternative sewer systems in Slippery Rock, subject to DER
regulations and the approval of the Slippery Rock Borough
Engineer. The following requirements apply:
a. The applicant shall submit preliminary plans and reports
to the borough for general review and recommendations;
and then prepare and submit applications, final plans,
necessary permits and reports for approval.
b. - An engineer's report setting forth a full description of
the proposed system and setting forth the basis for the
design shall be submitted.
c. The cost of all engineering, permit fees, and
construction shall be paid by the applicant.
105. In December, 1992, Authority Solicitor, Richard McCandless,
issued an Opinion regarding the Authority Engineer reviewing,
inspecting and certifying sewer and water extension plans and
installations which he prepared for private developers while
being retained as the Authority Engineer.
a. Subsequent to this Opinion, the Authority directed Deemer
to choose whether he wished to represent the Authority or
the private developer.
b. The Authority also advised Deemer that on all projects
which were currently in some phase of planning,
installation or inspection, which Deemer was employed by
the private developer, the Authority would hire an
outside engineering firm to perform the reviewing,
inspection, and certification on behalf of the Authority.
c. The Authority chose the firm Aqua Terra, Inc., Consulting
Engineers, William Rosenbaum, P.E., Principal.
106. Richard McCandless, solicitor for the Slippery Rock Municipal
Deemer, 92- 067 -C2
Page 47
Authority, issued two opinions regarding the Authority
Engineer's representation of private clients before the board
on water and sewer line extension projects.
a. January 9, 1991:
The Opinion was in regard to whether an applicant for
Extension Service is required to employ the services of
the engineer for the Authority. McCandless advised that
there was no legal requirement that the applicant must
employ the Authority's engineer to do all of the work
required under the Comprehensive Plan. However, the
Authority had a right to see that all work completed by
the applicant had been approved by the Authority's
engineer, so that lines are installed properly and in
accordance with all legal requirements of the Authority.
b. December 4, 1992:
The Opinion was in regard to whether the engineer's
representation of private clients before the Authority
was a conflict of interest. McCandless advised that the
engineer for the Authority should not perform work for a
developer who intended to extend sewage or water line
with monies out of the developer's pocket, and
subsequently to be turned over to the Authority. The
engineer should disqualify himself for any proceeding in
which he has a personal or pecuniary interest that is
immediate or direct. The engineer should disqualify
himself in regard to any approval or disapproval of lines
when they are certified to the Authority to take over
said lines.
McCandless further recommended that the Authority employ
an independent consulting engineer to review all projects
in which Deemer acted as the private engineer for the
client.
107. During the December 2, 1992, Slippery Rock Municipal Authority
meeting, Laura Andrusis, Executive Secretary, was instructed
to contact the solicitor for advice on the certification of
other projects, where Deemer was the engineer for the
developer, and how it should be handled.
a. The advice was requested after Deemer reported to the
Board on the Basta /Messer Sewer Extension, a project on
which he was the engineer for the private client.
b. Deemer had inspected the lines, certified that they were
installed to the Authority's requirements; and
recommended that the Authority take ownership of the
Deemer, 92- 067 -C2
Page 48
line.
108. Deemer no longer reviews, inspects or certifies his own work
to the Authority for developments where he has acted as the
engineer for the private client.
109. William P. Deemer & Associates acted as general contracting
engineer on several of the water and sewer line extension
projects listed in finding #14.
a. Surveying work was subcontracted to Lucas Engineering &
Associates.
b. Lucas Engineering was the general contracting engineer on
the remaining projects listed in finding #14.
c. Lucas Engineering subcontracted work on these projects to
William P. Deemer & Associates.
110. As a general practice, Deemer did not mark -up his invoices to
profit on the subcontracting work to Lucas Engineering &
Associates.
a. He has no financial interest in Lucas Engineering &
Associates.
b. Lucas Engineering & Associates rent space in a building
that Deemer owns.
111. William P. Deemer & Associates submitted costs for work
performed for the private client and the Authority on the same
invoice.
a. William P. Deemer & Associates submitted invoices for
engineering services for the private client and the
Authority directly to the private client.
b. The Authority now invoices the private client for
engineering services.
112. William P. Deemer & Associates performed engineering services
for private clients listed in Finding #14 that was unrelated
to the water and /or sewer line extension.
a. This included plot layout; road design; etc.
113. All engineering work performed on water and sewer line
extensions by William P. Deemer & Associates was done on
behalf of the Authority as per the requirements of the
Comprehensive Plan. (See Finding 12 a, b, c).
Deemer, 92- 067 -C2
Page 49
114. Deemer provided the following information:
a. The procedures and adopted policies for Slippery Rock
Borough and Municipal Authority were in effect prior to
his appointment as municipal engineer.
b. All facilities, that were to be owned or operated by the
Borough /Authority or that were constructed by agreement
with others, were designed under the direction or request
of the Borough /Authority.
c. As to three properties purchased by the Allegheny Valley
School, the approval was given by the Borough /Authority
as per existing procedures for plan development and
construction
(1) The Authority directed the solicitor to prepare the
"Comprehensive Plan for the Expansion and Extension
of the Slippery Rock Municipal Authority's Water
System" as to which Deemer had technical input as
Authority Engineer.
(a) The plan was adopted October 2, 1985.
(b) The Borough /Authority agreed in principle to a
similar plan for extending sewer service which
was not developed at that time.
(2) A Comprehensive plan for sewer extension was later
developed after the application by G.L. McKnight,
Inc., a developer as to Applewood Meadows.
d. Deemer admits designing water and /or sewer extensions for
all projects listed in Finding 14.
e. As to private clients, Deemer never worked with those
people before they approached the Authority /Borough for
service.
(1) The referrals to him were made by the
Authority /Borough or staff.
(2) Generally, the work done was limited to what was
required for sewer /water line construction.
(a) The Comprehensive plan required that such work
be done by the Authority /Borough Engineer.
f. The developers chose Deemer to coordinate the engineering
aspect of their projects to lessen the chance of
duplication.
Deemer, 92- 067 -C2
Page 50
Deemer was paid a standard hourly fee for developing the
water and sewer facilities for the developers.
h. Any person wanting water /sewer service had to comply with
the Comprehensive Plan but could retain the engineering
company of his choice.
g.
i. Several shortfalls in the original Comprehensive Plan
have been remedied.
(1) Developers now must pay for solicitor /engineering
fees directly to the Authority rather than to the
solicitor/engineer.
(2) The new plan allows other engineers to design
water /sewer service extensions which must be
approved by the Authority Engineer.
(a) When the Authority Engineer provides service
to a developer, the Authority will appoint a
substitute engineer to approve, inspect, test
and certify the facilities.
Deemer offered explanation as to certain Findings noting
generally that there was a lack of intent on his part as
to any non - compliance with the prior or current
Comprehensive Plan.
(1) It is asserted by Deemer that he would not use
public office to benefit a developer.
(2) There has been steady development over the past 20
years which has cost the public nothing.
115. Deemer provided the following supplemental information:
a. Deemer acted pursuant to standard operating procedure as
per the Comprehensive plan for the expansion /extension of
the Slippery Rock Municipal Authority Water /Sewer System
adopted by the Authority, Borough and Township upon the
advice of the respective solicitors with approvals by
individual agreement with applicants /developers.
b. Section 9(g) of the Ethics Law deals with the good faith
reliance on a written non - confidential opinion of a
solicitor publicly stated at an open meeting and recorded
in the official minutes.
c. The comprehensive plans were prepared by the solicitor
for the Slippery Rock Municipal Authority and adopted by
the Authority and municipalities at public meetings
Deemer, 92- 067 -C2
Page 51
whereby Deemer was required to perform the design
specifications and layouts and certify to the suitability
of the lines for ownership by the Slippery Rock Municipal
Authority.
d. After the comprehensive plan was amended on May 3, 1993,
the policy changed and so did the practice of Deemer.
III. DISCUSSION:
As the engineer for Slippery Rock Borough and Municipal
Authority (Authority), William P. Deemer (Deemer) is a public
employee as that term is defined under Act 9 of 1989. 65 P.S.
§402. As such, his conduct is subject to the provisions of the
Ethics Law and the restrictions therein are applicable to him.
Initially, it is noted that Section 9 of Act 9 of June 26,
1989 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 violation occurred prior thereto.
Since the occurrences in this case transpired after the
effective date of Act 9 (June 26 1989), we must apply the
provisions of Act 9 to determine whether the Ethics Act was
violated.
Under Section 3(a) of Act 9 of 1989 quoted above, a public
official /employee shall not engage in conduct that constitutes a
conflict of interest.
The issue before us is whether Deemer as the Slippery Rock
Municipal Authority Engineer violated Section 3(a) of Act 9 of 1989
relative to the allegation that he approved as Authority Engineer
development plans and sewer or water modules which he prepared for
private clients on a fee basis.
Deemer served as the appointed engineer for Slippery Rock
Borough and Slippery Rock Municipal Authority from 1973 through
September 1990. Deemer continues to serve as the appointed
engineer for the Authority. In a private capacity Deemer is a
registered professional engineer who owns William P. Deemer and
Associates, a consulting engineering firm.
Deemer, 92- 067 -C2
Page 52
In 1985, Slippery Rock Township, Borough and Municipal
Authority entered into an agreement known as "The Comprehensive
Plan for the Expansion and Extension of the Slippery Rock Municipal
Authority's Water System" whereby developers would have to enter
into an agreement with the Authority to comply with all required
specifications and to reimburse the Authority for expenses relative
to the inspection and approval of their water /sewer extension
projects. The plan required services to be performed by the
Authority Engineer in relation to the application for extensions of
the Authority systems. In particular, the applications had to be
reviewed by the Authority Engineer who would then prepare a
preliminary design and layout as to the feasibility of the
projects. In addition, the installation had to be done in
accordance with design specifications and layouts of the Authority
Engineer.
Deemer as Municipal Engineer reviewed, inspected, or approved
plans submitted by individuals relative to projects which he or
Deemer and Associates was involved in a private capacity and for
which compensation was paid.
Regarding Deemer's involvement as a Municipal Engineer as to
matters on which he provided engineering services in a private
capacity for clients, the fact findings may be summarized relative
to the following eight specific projects: Allegheny Valley Schools,
Applewood Meadows - Gary McKnight, Poplar Forest - Nicholas
Borgfeldt, Arrowhead Place Walter Fowler, College Garden
Apartments - JGame Properties, LeBanno, Davcol Inc. /Bronder and
Basta /Messer
As to the first project consisting of the Allegheny Valley
Schools (School) water line extension, the School opened a group
home which necessitated the need for public water service. After
water line extensions were prepared by Deemer and Associates and
submitted to the Authority for approval, the minutes reflect the
following action taken by Deemer as Municipal Engineer: on March 7,
1984, ,Deemer presented the request from the School which was
followed by a motion of approval as to the construction; and on May
1, 1985, during the review of the proposed agreement between the
municipalities and the School, Deemer advised that the agreement
included everything that would be incorporated for providing water
service followed by an approval motion. Deemer and Associates was
paid by the'School for services in connection with the project and
was used because the School believed that the project would go
quicker and smoother by utilizing Deemer.
The second project involved the Applewood Meadows water and
sewer line extension project which was proposed by Gary McKnight of
G.L. McKnight, . Inc. The plans were privately prepared and
submitted by Deemer and Associates for submission to the Authority
for approval. The following reflects the action of Deemer as to
Deemer, 92- 067 -C2
Page 53
the Applewood Meadows plans as per the Authority minutes: on
September 3, 1986, Deemer showed the Authority a map with the
proposed housing development as well as alternative plans for the
placement of the sewer line; on November 5, 1986 Deemer was
directed to send a letter to the Slippery Rock School Board
explaining the joining of the sewer line at a manhole near the
school; on January 7, 1987, Deemer reported that the Township had
approved the plan for extending the sewer line and that the school
board was considering the tap in of the sewer line into their
manhole; on April 1, 1987, a motion was approved to authorize the
Engineer to prepare an agreement for the water and sewer lines and
to make application for permits to DER and PennDot; on May 6, 1987,
Deemer reported that the revised plan module for Applewood Meadows
had been submitted to DER for approval; on October 7, 1987, Deemer
reported that the sewers were installed in Applewood Meadows and
the pump station was on site; on April 7, 1993 Deemer reported that
McKnight planned to start installing sewer lines in Phase II which
would soon occur with some changes due to four additional lots
which Deemer said would not affect the water and sewer lines nor
require a revision; and on June 2, 1993, Deemer reported that
McKnight was considering using a private right of way in lieu of a
highway right of way due to PennDot restrictions.
Deemer by letter dated November 5, 1986 advised the school
board as to the request for the extension of the sewer line
relative to the McKnight development wherein Deemer detailed
alternatives and advised the school district of the advantages of
an additional tax base.
The planning module for the Applewood Meadows development was
prepared by Deemer as consulting Engineer and then submitted to the
Township where it was signed and sealed by Deemer on March 8, 1987.
In response to a letter from DER requesting additional information,
Deemer wrote a letter dated April 29, 1987 explaining his client's
desire to start construction and requested that DER promptly issue
permits. Deemer notified the Township on April 30, 1987 that the
Authority intended to apply to DER for a permit to construct the
sewers to service Applewood Meadows. An agreement was entered into
on May 31, 1987 by all parties which contained a proviso that all
work would have to be done in compliance with the design and plan
as approved by the Authority Engineer Deemer, subject to his
supervision, control and inspection. When the Authority submitted
an application to DER for the sewer extension for the Applewood
Meadow subdivision, the application was signed and sealed by
Deemer. Thereafter, by letter of July 2, 1987, Deemer provided DER
with additional information relative to the permit for the
Applewood Meadow subdivision. When a maintenance bond from
McKnight development had been received, Deemer recommended that the
Authority accept the bond subject to the solicitor's approval.
Deemer also recommended to the Authority that it accept the water
and sewer line along with the pumping station. Deemer also
Deemer, 92- 067 -C2
Page 54
prepared and submitted an application for a highway occupancy
permit to PennDot on behalf of the Authority for the water and
sewer lines being installed in the McKnight development. Deemer
inspected the installation of the water and sewer lines in relation
to the Applewood Meadows sewer and water line extension project
and received payment directly from McKnight for all engineering
services provided for that development.
The third project wherein Deemer was involved both privately
and publicly was the Arrowhead Place development. The Arrowhead
Place was a development proposed by Walter Fowler who was an
Authority Board Member. The Arrowhead Place sewer and water line
extension plans were prepared by Deemer and Associates and
submitted to the Authority. Slippery Rock Borough Council minutes
reflect the following involvement by Deemer as to the Arrowhead
Place sewer and water line extension: on October 3, 1989, in
response to an inquiry as to why Fowler had not developed any plans
for the water and sewer line extensions to his property, Deemer
participated in the discussions and explained that Fowler did not
want to spend money on the project if Council was not going to
approve it; on October 17, 1989, Deemer asked Council if it would
approve Fowier's plan for an extension if there were compliance
with the comprehensive plan which was followed by an approval vote
subject to the requirement that Fowler meet the provisions of the
comprehensive plan; on November 30, 1989, Deemer explained the
first phase of the plan to the Borough as well as the positive
revenue impact for the Borough; on April 4, 1990, Deemer submitted
a report regarding the application for the water /sewer extension of
Arrowhead Estates to the Authority and advised that the plans were
turned over to him for his review and report to the Authority as to
the feasibility of the project from an economio and engineering
point of view; on the same date, Deemer advised that the
development would not tax the existing systems and recommended that
approval be given by the Authority. After Deemer advised that
Fowler had petitioned the Township which approved the application,
Deemer stated that the project was properly designed and that there
was adequate capacity in the existing system to serve the area
covered by the proposal.
The minutes of the Authority reflect the following actions by
Deemer relative to the Arrowhead Place development: on March 7,
1990 Deemer presented Fowler's application; on April 4, 1990 Deemer
explained the routing of the water and sewer system and the need to
apply to DER for a pump station followed by a successful motion to
sign the DER application; on May 2, 1990, Deemer presented the
application for Arrowhead Estates and explained the history; and on
July 11, 1990 Deemer reported DER's approval of Arrowhead Estates.
A planning module for development report e s by u Deemer wherein he
Deemer on behalf of Fowler
Deemer, 92- 067 -C2
Page 55
determined that the pump station had the capacity to receive the
sewage and that the water lines would assist the Authority in
looping dead end distribution mains.
Following DER approval, Fowler on October 30, 1990, entered
into an agreement with the Authority and Township as per the
comprehensive plan. On December 5, 1990 Deemer issued a letter to
the Authority regarding the Arrowhead plan of Fowler wherein Deemer
certified that the water line had been completed and inspected by
Deemer who also approved an irrevocable letter of credit issued by
a bank on behalf of Fowler. In addition, Deemer acknowledged an
executed bill of sale for the water line, advised and certified the
itemized cost of the project, certified compliance as to all
necessary items and recommended that the Authority accept the
facilities as part of the system. Deemer and Associates did
receive fees from Fowler relative to the engineering services for
the Arrowhead Place development.
The fourth area of involvement by Deemer concerned the Poplar
Forest water and service line extension project (Poplar Plan)
proposed by Nicholas Borgfeldt. The Authority records as to the
Poplar Plan reflect that the original plans did not include the
seal or signature of Deemer but revisions to those plans were
prepared by Deemer and Associates. The Authority minutes reflect
the following involvement of Deemer as to the Poplar Plan: on April
5, 1989, Deemer reported that Borgfeldt was ready to install the
water line through his property and Deemer recommended a ten inch
diameter line for the purpose; on August 2, 1989, Deemer stated
that seven hundred feet of the sewer line had been installed for
the Borgfeldt project; on November 1, 1989, Deemer noted that the
Borgfeldt plan had not been returned by DER and that Borgfeldt had
no sewage permit; on December 6, 1989, Deemer reported that the
Borgfeldt plan had been returned from Meadeville to New Castle for
more processing; on January 3, 1990 Deemer stated that he talked to
DER and anticipated DER's action in a few weeks; on February 7,
1990, Deemer reported that Borgfeldt's plan had been approved; on
March 7, 1990, Deemer stated that information from DER reflected
that there was no need to file a permit since no pumping station
was needed; on July 10, 1991 Deemer reported that the water lines
should be ready for the Authority's acceptance; on August 7, 1991,
Deemer noted that the water and sewer lines in the final two phases
of the Poplar Plan were completed which was followed by an approval
motion to accept the lines; and on January 8, 1992, Supervisor
Dickey reported that he and Deemer were planning to do a size
evaluation for each lot in the Poplar Plan.
By letter dated July 17, 1989 to the Planning Commission,
Deemer, as Authority Engineer, submitted copies of planning modules
relative to the Poplar Plan project noting that the planning
modules had been submitted to DER. Thereafter, the Director of the
Planning Commission on August 17, 1989 advised that approval had
Deemer, 92- 067 -C2
Page 56
been granted. The planning module which was submitted by Deemer to
DER for the Poplar Plan subdivision was under the signature and
seal of Deemer. In addition, the transmittal letter and resolution
for the plan revision for the Poplar td r d d t o t e lnclude include Deemer,
even though the copy submitted
signature or seal of Deemer as an Engineer. Deemer by letter dated
August 5, 1991 provided the Authority with the certification as to
the installation of the water /sewer lines in the Poplar Plan
development claiming that he had inspected the line installation,
lan and
that the water /sewer lines complied with t the facil ties conrehensive
that he recommended the Authority accept
by Borgfeldt as to the Poplar Plan development.
After Borough Council considered the Poplar Plan project on
January 2, 1990, Deemer offered his services to Borgfeldt and
advised that he could help with the sewer water line extension as
well as some of the work on the master plan. When Borgfeldt
experienced problems in 1991 as to the third phase of his project
with DER regulations, Borgfeldt retained a new engineer Norman
Stroud who is also the Borough fter Engineer;
at time period.
no longer used
on the Poplar Forest Plan
The fifth water and sewer line extension_ project in which
Deemer was involved both publicly and privately was the College
Garden Apartments which is also known as the Kiester Road
Apartments (Apartments). The Apartments project was proposed by
JGame Properties which utilized line extensions. Deemer and Associates to prepare
plans for the water/sewer
Minutes of the Authority reflect the following involvement of
Deemer as to the Apartments water /sewer line extension: on April 5,
1989, after the operator of the apartment complex expressed
interest in obtaining water /sewer service, Deemer devised 3 pl1n8tto
extend service together with a cost estimate; on May
Deemer did work on an engineering feasibility design as to the
water /sewer extension and showed the Authority a map to effectuate
the plan; on June 7,1989, the Authority Chairman suggested that
Deemer should present the proposal by the Apartments to have the
tap fees reduced to Council; on September 6, 1989, Deemer advised
the Authority that the School District was receptive to the request
for a right -of -way for a water line relative to the Apartments
project; on October 4, 1989, after Deemer offered his opinion as to
a request for a right -of -way, a motion carried to send letters to
the School District seeking the necessary urig had Deemer as to t he
Apartments project; on January 3, 1990,
engineering design for the water line after Deemer reported that
Quinlan was still interested in obtaining water /sewer service; on
March 7, 1990, Deemer presented Quinlan's application for an
extension of water /sewer lines to the Apartments project; on April
4, 1990, Deemer passed out copies of his engineering feasibility
report and offered explanation as to the Apartments project; on May
Deemer, 92- 067 -C2
Page 57
2, 1990, Deemer presented the application for water /sewer service
as to the Apartments project which was followed by a motion of
approval to grant the sewer /water extension to the Apartments
project; on August 1, 1990, Deemer advised of the status of the
right -of -way acquisition for the Apartments project; on February 6,
1991, Deemer reported on the status of the contracts as to the
Apartments project; on March 6, 1991, Deemer reported on the work
progress at the Apartment projects as to the sewer line connection;
and on May 1, 1991, Deemer reported that the water and sewer were
completely on line as to the Apartments project.
As to the Apartments project plan for sewer /water line
extension which was submitted to Slippery Rock Township, the plans
and revisions were prepared by Deemer and Associates with both
plans being signed and sealed by Deemer. By letter of April 18,
1986 Deemer advised Quinlan regarding his inquiry about obtaining
water /sewer service for the Apartments project.
The sewage plan revision module which was submitted by the
Township to DER on January 4, 1988 in regard to the sewer /water
line extension for the Apartments project was prepared by Deemer.
Thereafter, on November 14, 1989, Deemer submitted a progress
report to Quinlan. On May 2, 1989, when Quinlan advised the
Borough Council President of his intention to proceed as to the
installation of water /sewer lines as to the Apartments project,
Quinlan discussed the most economical way for installation with
Deemer as Borough Engineer. In addition, Quinlan requested a
reduced tap in charge for his unit in a proposal as to which Deemer
determined the cost. When Deemer advised Quinlan as to the best
way to proceed as to the water /sewer service, Deemer estimated the
project cost and included a feasibility study as well as the
designs, drawings, permits, fees, agreements and inspections. The
total cost included payments to Deemer for such services.
When Deemer presented the requests for the right of way to the
School Board for water /sewer extension of the Apartments project,
Deemer stated that he represented the Authority Council as
Engineer. Based upon Deemer's proposals, the Authority Secretary
wrote to the School District that the project was within the
guidelines of the comprehensive plan.
Following approval from DER, the formal agreement was entered
as to the extension of the water /sewer lines for the Apartments
project with the developer assuming all costs relative to the
review, inspection and approval of the project. Approximately two
weeks after the approval, Deemer prepared a Specification for
Construction report as to the sewer /water lines for the Apartments
project which was signed and sealed by Deemer.
On February 18, 1990, Deemer explained to Quinlan that the
contractor's statement, that the engineering was completed and that
Deemer, 92- 067 -C2
Page 58
permits were obtained, was "misleading ". Thereafter, on August 8,
1991, Deemer advised Quinlan that the construction of the project
was in the completion phase but other items had to be co p an t as
Deemer requested a meeting. lf of Authority which
plan ded the
prepared by Deemer on behalf
requisite right -of -way. The plans were prepared utilizing the
company heading of Deemer and Associates although the signature and
seal of Deemer did not appear on. the plans. Subsequently Deemer
sent Quinlan the right -of -way deed of dedication and bill of sale.
Deemer recommended approximately one week later that the Authority
ccept the water /sewer lines as to the Apartments project.
Contained in Deemer's recommendation under his signature and seal
were statements: that he inspected the line installation, that the
Authority accept the certificate of deposit which would act as a
guarantee of line maintenance, that he certified the proportionate
cost of the lines and that he delineated the project cost. Deemer
and Associates was paid for Ma
y hese lggluinlan advised Deemer
A partments project although on M y ,
that one invoice suit wasubeing not
consides d due to the additional costs
that a law suit
incurred as a result of design error.
The sixth project in which Deemer was ... involved both as a
public employee and .privately as an engineer was the Basta /Messer
water /sewer line extension project (Extension project) which
involved a short line - extension to an individual property, not a
development. The extension plan was prepared by Deemer and
Associates.
The minutes the Authority reflect the following activities
of Deemer as to' the extension project: on May 6, 1992, Deemer
advised that according to DER, a plan will not be needed for the
extension project; on June 3, 1992, Deemer presented plans for the
sewer line extension followed by an approval motion to enter into
the agreement;' on December 2, 1992, Deemer advised that the
extension was complete, that he inspected the line and that he
certified compliance as to construction and testing standards which
was followed by his recommendation that the Authority take
ownership subject to the posting of the - maintenance bond and bill
of sale. At that same meeting, the Executive Secretary was
instructed to contact the solicitor for advice as to how the
certification of other projects should be handled where Deemer was
the engineer for developers.
By letter dated June 3, 1992, Deemer reported to the Authority
that he contacted DER which advised that a plan revision was
unnecessary, that he reviewed the plans for the . owners and checked
the Comprehensive Plan requirements and the agreement, that he
certified that all requirements had been met and recommended that
the agreement be authorized because he determined that the proposal
was feasible from an economic and engineering standpoint. After
Deemer, 92- 067 -C2
Page 59
the agreement was entered into on June 3, 1992, a letter was
written to Basta /Messer from the Authority Executive Secretary
advising of the outstanding costs of certain engineering fees for
the project.
By letter dated December 1, 1992, Deemer certified to the
Authority that he inspected the line extension, tested the line as
to construction standards, prepared drawings and recommended to the
Authority that it take ownership of the line. On that same date
Deemer provided the Authority with an invoice for the work
performed relative to the project extension. Lastly, on December
2, 1992, Deemer reported to the Authority Board that he inspected
the line which was complete according to construction and testing
standards for the Authority. After Deemer recommended that the
Authority take ownership of the line, subject to the posting of a
maintenance bond, the Board accepted ownership. At that time, one
of the Board Members recommended that an outside engineer inspect
and certify the line since Deemer was also the engineer for
Basta /Messer.
The seventh project which Deemer was involved concerned a
sewer /water line project by Davcol Inc. submitted by Don and
Florence Bronder (Davcol). The plans were drawn, signed and sealed
by Deemer on August 5, 1992. The Authority minutes reflect the
following involvement by Deemer: on December 4, 1985, the Borough
received a check from Davcol for engineering and legal fees; on
January 8, 1986, Davcol's check was transferred to the Borough
since Davcol had paid Deemer; on August 5, 1992, Deemer presented
the plan for the extension noting that the plans were in compliance
with the requirements of the comprehensive plan and the proposal
was sound from an engineering aspect and economic standpoint
followed by an approval motion for authorization of the execution
of agreement; on the same date, Deemer further reported that a
highway occupancy permit had been sent for the project and that
DER's approval for the extension had been received and that the
design would be prepared once the owner determined the most
beneficial way to route the lines; on September 10,1992, Deemer
reported that the water line extension agreement was ready to be
signed and that the permit had been obtained from PennDOT; on
October 7, 1992, Deemer reported that the water line was complete
except for a final connection; and on January 6, 1993, Deemer
reported that Bronder was working on the agreement for the line
extension.
In Deemer's letter of August 5, 1992 to the Authority
regarding Davcol, he advised that the water line extension had been
prepared by the owners and that he checked for compliance with the
requirements of the comprehensive plan. Deemer recommended that
the Authority authorize the execution of the agreement to permit
construction of the extension and further advised the Authority to
apply for the PennDOT Highway Occupancy Permit. The transmittal
Deemer, 92- 067 -C2
Page 60
- letter and resolution for the by Deemer under hi.s
mo were submitted for D Y
ive
seal. The agreement, as
Davcol the
wo�ldu agree comply p wt h c all
plan, provided that
requirements of the plan and that the developer would pay the
reasonable cost to the Authority for various fees including
engineering fees.
The eighth matter of Deemer's involvement involved the LeBanno
red ter
the ex
reflect i the 1991, Le e B l annorequest d the
extend the sewer
on April 3, 199,
line at which time Deemer stated that there must be compliance with
provisions of Act 537; on May 1, 1991, Deemer reported that since or
e
the LeBanno property was not within the planning module f
f ; t
himse
College Garden Apartments, D emern ed have that completed a
on September 4, 1991,
feasibility study for Lebanno and recommended that the Authority
enter into a formal agreement with Lebanno for the extension which
was followed by a motion of approval to enter into an agreement.
The project however was never Completed.
Having summarized the eight different projects in which Deemer
was dually involved in both a public and capacity, opted e now
note that on April 4, 1989 Slippery Rock Borough
ordinance relative to the installation of sewer systems which
required in part that the cost of all engineering fees be paid by
applicants. On December 1992, the Authority Solicitor issued an
opinion relative to -the Authority's Engineer as to the review,
inspection and certification of sewer /water line extension plans
and installations in cases where he provided engineering services
to developers. Thereafter, the Authority directed d dev ch
between representation of the Authority �r private
was further advised that all projects in progress where
an
Deemer had been employed in a private
e Authority l to to the ereview,
outside engineering firm by
inspection and certification work on behalf of the Authority.
The Authority Solicitor in fact issued two Opinions regarding
the Authority Engineer's representation of clients as 991 Opinion,
water /sewer line extension projects. In a January 9, 1
the solicitor noted there was no legal requirement that the
applicant must employ Authority's Engineer 'to' do the work under
see
the comprehensive plan and that the Authority had the oved right
b to
the
that all work completed by an applicant was approved Y
Authority Engineer so that the lines were installed properly and in
accordance with legal requirements. In a December 4, 1992 Opinion,
the solicitor advised that the Authority Engineer should not
perform work for developers who intended to extend water /sewage
lines, that the engineer should disqualify himself from any
Deemer, 92- 067 -C2
Page 61
proceedings in which he has a personal /pecuniary interest and that
the engineer should disqualify himself in regard to any
approval /disapproval of lines when there is a certification to the
Authority to take over said lines. Lastly, the solicitor
recommended that the Authority employ an independent consulting
engineer to review all projects in which Deemer acted as a private
engineer for clients.
During a December 2, 1992 Authority meeting, the Executive
Secretary was instructed to contact the solicitor for advice on the
certification of other projects where Deemer was the engineer for
the developer after Deemer reported to the Board on the
Besta /Messer sewer extension project in which he was the engineer
for those individuals as his private clients. As noted above,
Deemer inspected the line, certified as to the installation
requirements and recommended that the Authority take ownership of
the line.
After the above restrictions were imposed upon Deemer he
desisted in reviewing, inspecting or certifying his own work to the
Authority for developers for whom he acted as a private engineer.
The engineering work performed on water /sewer line extensions by
Deemer and Associates on behalf of the Authority continues as per
the requirements of the comprehensive plan. The Authority now
invoices private clients directly for engineering services.
As a matter of explanation as to the above, Deemer admits that
he did work for private clients which he subsequently reviewed as
Municipal Engineer; however, Deemer asserts that such action was
required by the comprehensive plan and that he was required to
perform the design specification layouts and certify as to the
suitability of the lines as per that comprehensive plan.
In applying the provisions of Section 3(a) of Act 9 of 1989 to
the instant matter, we find that Deemer, as a Slippery Rock
Municipal Authority Engineer, violated Section 3(a) of Act 9 of
1989 when he approved development plans or modules which he
designed or performed services for private clients. The use of
authority of office by Deemer consisted of all of the actions,
reviews, recommendations, inspections, certifications and approvals
that he made as Municipal Engineer as to plans or modules which he
prepared or was involved in as a private engineer for clients.
As to the various sewer /water line extension projects that are
referenced above, it is not known whether Deemer was taking any
given action as Municipal Engineer or as a private engineer on
behalf of a paying client. If anyone had asked or if Deemer had a
modicum of sense to question his own conduct, no answer would
probably have been forthcoming as to whether in any given instance
Deemer was acting as the Municipal Engineer or private engineer.
To say the least, Deemer was insensitive or to say the most, Deemer
Deemer, 92- 067 -C2
Page 62
was callously materialistic as to his action at any given point of
time relative to representing the public interest as Municipal
Engineer and representing his client's interests as a private
engineer. What is certain to this-Commission is that in all these
instances Deemer had his own financial interest at heart when he
operated from both ends of the table vis -a -vis the public interest Te
and private clients' onst toted to . usehof authority of office. took in
all these cases c See
Juliante, Order, 809.
The use of authority of office by Deemer resulted in a private
pecuniary benefit consisting of the private fees that he received
as well as the compensation that he received as a Municipal
Engineer when he took such action as to the sewer /water line
extension projects. The pecuniary benefit is private in that no
authorization exists in law for the Municipal Engineer to be paid
for taking official action as to his own private work. Lastly, the
private pecuniary benefit inured to Deemer individually or to
Deemer and Associates which is a business with which Deemer is
associated as that term is defined under Section 2 of Act 9 of
1989, 65 P.S. S402.
Our analysis and commentary in Ferraro, Order 720, wherein we
found that a municipal engineer violated Section 3(a) of Act 170 of
1978 when he reviewed /approved plans that he prepared for clients
in as a private engineer, is equally applicable to the instant
matter:
Your actions in simultaneously representing the municipal
bodies and clients on the same matters is indicative of the
type of conflict that the Ethics Act was designed to prohibit.
Although public office is a public trust (65 P.S. 401) you
have used public office for your own personal financial gain
by privately working on plans for compensation which
thereafter would come before you as municipal engineer for
your review /approval. Such action on your part reflects the
highest level of insensitivity and total disregard for public
office. In several instances, there is no way of knowing whom
you are representing in your work or action - the municipal
body or the private client. One thing is clear in all of
these instances - you are ultimately representing yourself and
the advancement of your own financial aggrandizement at the
expense of the public trust. It is obvious to this Commission
that you have developed a financially secure relationship
whereby a private client can come to you for engineering
services with an implicit self- assurance that the work which
you perform for them will be later reviewed by you in your
official capacity with a future approval guaranteed.
Ferraro at 64, 65.
Deemer, 92- 067 -C2
Page 63
Deemer however argues that he was compelled or required by law
to take such action as per the requirements of the comprehensive
plan. Deemer's argument that he in effect had a Hobson's choice is
superficial and false. To the contrary, Deemer as a private
engineer could have simply refused to take work from persons as to
whom he knew he would have to review or pass upon work as Municipal
Engineer. Second, as Municipal Engineer, Deemer could have removed
himself and requested the substitution of independent engineer for
any cases that he performed work for private clients. Deemer did
not do this. Instead Deemer readily sought to serve two masters,
that is, the Authority and private clients. What Deemer
accomplished by such action was to place himself in an absolute
conflict between his public duty and trust and that of his private
clients to his own financial betterment. Such practice of Deemer
continued until the Authority came to the realization, backed up by
opinions of the solicitor, that such actions of Deemer constituted
conflicts of interest.
Consistent with our holding in Ferraro, supra, and other cases
involving municipal engineers, we find that Deemer did violate
Section 3(a) of Act 9 of 1989 when he as Municipal Engineer took
official actions as to development plans or modules on which he
performed engineering services for private clients.
IV. CONCLUSIONS OF LAW:
1. William P. Deemer as the Municipal Engineer for Slippery Rock
Municipal Authority is a public employee subject to the provisions
of Act 9 of 1989.
2. Deemer violated Section 3(a) of Act 9 of 1989 when he used the
authority of office as Municipal Engineer, after the effective date
of Act 9, to take official actions as to development plans or
modules on which he performed engineering services for private
clients which resulted in a private pecuniary benefit to himself or
the business with which he was associated, Deemer and Associates.
In Re: William P. Deemer : File Docket: 92- 067 -C2
Date Decided: 9/28/93
: Date Mailed: 10/07/93
ORDER NO. 905
1. William P. Deemer as the Municipal Engineer for Slippery Rock
Municipal Authority violated Section 3(a) of Act 9 of 1989 when he
used the authority of office as Municipal Engineer, after the
effective date of Act 9, to take 'official actions as to development
plans or modules on which he performed engineering services for
private clients which resulted in a private pecuniary benefit to
himself or the business with which he was associated, Deemer and
Associates.
BY THE COMMISSION,
JAMES M. HOWLEY, CHAIR