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HomeMy WebLinkAbout1079 CipulloIn Re: Anthony Cipullo STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: X -ref: Date Decided: Date Mailed: 96- 045 -C2 Order No. 1079 4/30/98 5/11/98 Before: Daneen E. Reese, Chair ' Austin M. Lee, Vice Chair Allan M. Kluger Boyd E. Wolff Julius Uehlein Louis W. Fryman This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 g agg., by the above - named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was filed and a hearing was held. The record is complete. A Consent Agreement was submitted by the parties to the Commission for consideration which was subsequently approved. This adjudication of the State Ethics Commission will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date 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). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with Act 9 of 1989, 65 P.S. §408(h). Any person who violates confidentiality of the Ethics Law is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year, 65 P.S. §409(e). Confidentiality does not preclude discussing this case with an attorney at law. Cioullo, 96- 045 -C2 Page 2 I. ALLEGATION: That Anthony Cipullo, a public official in his capacity as Mayor of Bristol Township, Bucks County, violated the following provisions of the State Ethics Act (Act 9 of 1989) when he solicited something of monetary value based on the understanding that his official action, vote or judgment would be influenced thereby by pressuring the township's labor attorney to make campaign contributions and purchase insurance policies from his insurance agency in return for retaining the labor attorney's firm without reducing the hourly rate for services; and when he used the authority of his office for a private pecuniary benefit by participating in discussions, action and /or decisions of the township council to settle a lawsuit filed against him by the township's labor attorney. Section 3. Restricted Activities (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 P.S. §403(a). Section 3. Restricted activities (c) No public official, public employee or nominee or candidate for public office shall solicit or accept, anything of monetary value, including a gift, loan, political contribution, reward, or promise of future employment based on any understanding of that public official, public employee or nominee that the vote, official action, or judgment of the public official or public employee or nominee or candidate for public office would be influenced thereby. 65 P.S. §403(c). 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. Cipullo, 96- 045 -C2 Page 3 I1. FINDINGS: 1. Anthony F. Cipullo has served as the elected Bristol Township Mayor /Executive since January 3, 1994. a. Cipullo served as a Bristol Township Councilman from January of 1990 to January of 1994. b. Bristol Township Mayor /Executive is considered a part-time position with an annual salary of $14,000. 2. Bristol Township is a first -class township with a home rule charter form of government. 3. The Bristol Township Administrative Code provides that the Mayor /Executive shall have the authority to appoint the solicitor and special counsel and other professional positions, including but not limited to, insurance, engineer, auditors and pension specialists, where special expertise is required to represent the best interests of the township, and to set his or her compensation. a. These appointments are made with the advice and consent of the township council. b. The Mayor /Executive has the authority to terminate the employment of these appointees. 4. Neil Morris is a labor attorney with offices in Philadelphia. a. Morris previously represented a number of Bristol Township's department heads in an action against the township. 5. Neil A. Morris was appointed Bristol Township Labor Attorney on February 13, 1990, by a majority vote of the township council. a. Morris was selected for the appointment based largely upon the recommendation of the Township Manager, Carmen Raddi. b. Morris was appointed by then Mayor /Executive, James Gallagher. c. Cipullo was a member of Council at the time of this appointment and voted to confirm the appointment. d. The billing rate for Morris was set at $125.00 per hour. 6. On March 20, 1992, Morris informed Bristol Township Officials that he was raising his hourly rate to $140.00 per hour. a. Then Bristol Township Mayor /Executive Bob Lewis and one (1) member of Bristol Township Council verbally agreed to raise Morris' hourly rate but the increase was never approved by a formal vote of council. b. Morris' compensation was not increased at that time. 7. In December of 1993 Morris met with Mayor -elect Cipullo and a number of newly elected council members at Cipullo's house. Cipullo, 96- 045 -C2 Page 4 a. Council members present at the meeting included John Annunziato, John Geida, Herbert Fiocco, Jack Kelly and Samuel Fenton. b. Cipullo and the newly elected members of council were interviewing professionals for possible appointment to township positions. c. Morris told Cipullo and the newly elected members of council that he would like to continue as township labor attorney but wanted an increase in his hourly rate to $140.00 per hour. 8. It has been a practice in Bristol Township that professionals appointed to various township positions are expected to make contributions to political parties. 9. Appointees are solicited to make contributions to the Bristol Township Democratic Committee, and other political entities - representing various party organizations, candidates, and /or political officials. 10. The Bristol Township Democratic Committee was formed to fund and support the candidacies of individuals on the Democratic ticket seeking public office in Bristol Township. 11. On January 3, 1994, during the reorganization meeting of council, Cipullo placed the name of Neil A. Morris, Esquire in nomination for the position of labor attorney. a. Councilman Annunziata questioned Cipullo concerning Morris' compensation and the effective date. b. Cipullo stated Morris' hourly tate would be $140.00 per hour and the effective date was January 3, 1994. c. The motion to approve Morris' appointment, Resolution 13 -94, was passed by a 5 -0 vote of council. 12. On October 20, 1994, Cipullo called Morris at his office and informed him that the Bristol Township Democratic Party needed contributions. a. Cipullo advised Morris that Cipullo had been asked to raise funds for the party. b. Cipullo asked Morris to contribute an amount larger than Morris wanted to give. c. Discussions between the two over contributions continued and after Morris and Cipullo disagreed over how much to contribute, Morris agreed to contribute $250.00. 13. On October 28, 1994, Morris sent a check (number 326) in the amount of $250.00 to the Bristol Township Democratic Party. 14. In January of 1995, councilman Herbert Fiocco questioned the retainer paid to the Township Solicitor, Marcel Groen. Cioullo, 96- 045 -C2 Page 5 a. Groen agreed to council's idea of eliminating his retainer but requested his hourly rate be increased from $85.00 per hour to $115.00 per hour. b. Groen had been paid a $7,000.00 a month retainer which covered certain work for the township, not to exceed 80 hours a month, and $85.00 an hour for any additional work. c. Councilman Fiocco sought to eliminate the $7,000 retainer paid to Groen. Fiocco negotiated the new hourly rate to be paid to Groen at the amount of $1 15 /hour. d. During the discussions that took place regarding this issue, Fiocco also expressed the belief that no attorney working for the township should be paid more than $115.00 per hour. e. Councilman Samuel Fenton, who also served as a member of Bristol Township Council at the time of the events in question, also stated that in his recollection, there was an executive session, during which Councilman Fiocco raised and promoted the idea of lowering the fees paid to attorneys serving the township. Fenton further stated that Fiocco proposed a cap on fees that would impact all attorneys serving the township, including Solicitor Groen and Attorney Morris. 15. As part of the overall process regarding the lowering of solicitor fees, Cipullo formally proposed the action that had been initiated by council in executive session about capping the hourly rates of all solicitors at $115.00 per hour. That proposal was made during the January 10, 1995, meeting of council. a. This meeting was on the same date on which the above - referenced executive session took place, which was previously described by Fiocco and Fenton. 16. Based upon these discussions, council voted 4 to 0 to establish a cap of $1 15.00 per hour for any township attorney and to eliminate the monthly retainer previously paid to Solicitor Groen. 17. Morris was not informed prior to the meeting of the Township's intention to reduce his hourly rate. 18. Morris informed Cipullo, by letter dated January 27, 1995, that he was unhappy with the reduction of his hourly rate from $140.00 per hour to $115.00 per hour. 19. Following receipt of Morris' letter, Cipullo instructed Township Managing Director Carmen Raddi to direct a memo to Cipullo any time there was a need for labor counsel in the township. a. Raddi notified Police Chief John Tegzes of Cipullo's directive as the Police Department was the source of most of the township's legal work on labor problems. b. Cipullo directed that legal matters relating to the township's labor problems were to be reviewed by Cipullo and Township Solicitor Groen, who would then make a determination about whether the case would be handled by Morris or Groen. Cipullo, 96- 045 -C2 Page 6 20. After January of 1995, Morris refused to accept any new cases where he would be paid at the rate of $115.00 per hour. a. After Morris refused to accept any new cases, all new labor matters were handled by Township Solicitor Groen at the rate of $115.00 per hour. b. Even though Morris continued to handle cases previously assigned, Morris got no new labor cases in 1995. 21. Cipullo did not officially terminate Morris, and Morris did not resign his position. 22. On December 27, 1995, Cipullo received a copy of a lawsuit Morris threatened to file in Federal Court. a. The proposed suit alleged Cipullo violated the Federal Civil Rights Act of 1971, 42 U.S.C. §1983; the Racketeer- Influenced and Corrupt Organizations Act (RICO), 18 U.S.C. §§1961-1968; Mail Fraud, Wire Fraud, Extortion and Interstate Travel or Transportation in Aid of Racketeering Enterprises, 18 U.S.C. §§1341, 1343, 1951 and 1952; Theft and Attempted Theft by Extraction, 18 Pa. C.S. § §3923, 901; Dealing in Proceeds of Illegal Activities, 18 Pa. C.S. §5111; Mailing and Conspiracy to Commit Macing, 25 P.S. §2774, 18 Pa. C.S. §903; and Public Officers /Restricted Activities, 65 P.S. §403. b. Morris alleged that Cipullo reduced his hourly rate from $140.00 per hour to $115.00 per hour on January 10, 1995 for retaliatory reasons. c. This threatened lawsuit did not name any other Bristol Township officials initially but later was amended to include members of council when the township failed to reach a settlement with Morris. 23. On December 31, 1995, Cipullo contacted Township Insurance Advisor Eric Vacca and sought his advice on the matter. a. Vacca was appointed insurance advisor by Cipullo. 1. Vacca was also an insurance agent for Phoenix Home Life and the Chubb Company, companies with which Cipullo was associated. 24. Vacca introduced Cipullo to attorneys Gerald Egan and John Elliott. a. Cipullo, Elliott and Egan met with Morris and Morris' attorney, George Bochetto, to discuss the threatened lawsuit. b. No settlement was reached at that meeting. 25. Egan then requested Raddi and Vacca to meet with Morris and to discuss a settlement. 26. Raddi and Vacca met with Morris at a Bucks County diner and asked Morris what he wanted in order to settle the matter before the lawsuit was filed. a. Morris told Raddi and Vacca that he wanted a payment of $50,000.00 to compensate him for lost earnings; reinstatement as Township Labor Attorney at the rate of $140.00 per hour; and a guarantee that he would receive legal work from the township. Cioullo, 96- 045 -C2 Page 7 b. Raddi and Vacca informed threatened lawsuit. a. b. c. 1. Cipullo wanted to settlement. c. Cipullo accepted the terms of the settlement. Cipullo of Morris' terms for a settlement of the meet with members of council to discuss 27. Vacca then contacted Bristol Township Councilmen John Annunziata, Herbert Fiocco and William Tuthill to arrange a meeting among Vacca, Mayor Cipullo and the members of council at the Londonshire Restaurant in Burlington, New Jersey. The meeting was arranged at the request of Cipullo. Councilman Tuthill also sought a meeting to - discuss appointments. Cipullo was anxious to have the matter resolved. 28. A meeting took place on January 15, 1996, at the Londonshire Restaurant in Burlington, New Jersey. a. Attending were Council members Annunziata, Fiocco and Tuthill. 1. Councilman Fenton was unable to attend. b. Cipullo also attended. 29. During the meeting, Vacca acted as spokesman for Cipullo. a. Vacca informed Annunziata, Fiocco and Tuthill of Morris' threatened lawsuit and requested their assistance in settling the matter. b. Vacca informed the councilmen that Morris was seeking a cash payment to reimburse him for earnings lost during 1995; for reinstatement as Township Labor Attorney at the hourly rate of $140.00; and for a guarantee of future legal work on township labor problems. 30. Vacca further informed Annunziata, Tuthill and Fiocco that Cipullo was willing to permit council members to pick nominations to certain township positions./ a. Cipullo would nominate individuals desired by the Council members to township positions in return for their support of the settlement. b. Vacca told the board members that Cipullo would "cooperate with such nominations in exchange for their assistance in settling the Morris matter. 31. As a result of the meeting, council members provided Cipullo with the names of individuals they wanted appointed to positions with the township. a. Annunziata informed Vacca and Cipullo that he wanted Cipullo to nominate Attorney Thomas Timby for the position of Township Solicitor, replacing Marcel Groen; to nominate Attorney Karen Quinn to the Zoning Cipullo, 96- 045 -C2 Page 8 Board; and to nominate Anthony Verducci to a position on the Lower Bucks County Joint Municipal Authority. b. Tuthill advised Vacca and Cipullo that he also wanted Attorney Thomas Timby appointed Township Solicitor and wanted Anna Rogers appointed to a position on the Lower Bucks County Joint Municipal Authority. c. Fiocco informed Vacca and Cipullo that he wanted Department of Licenses and Inspections employee William Norton to retain his position. 32. Cipullo and Vacca told Annunziata, Fiocco and Tuthill that Cipullo agreed to make the requested nominations in return for their cooperation in settling the Morris matter. 33. On January 16, 1996, Bristol Township Council met with Councilman John Annunziata, Herbert Fiocco, William Tuthill, Samuel Fenton and Jack Kelly in attendance along with Mayor Anthony Cipullo. a. Cipullo read a resignation letter from Solicitor Marcel Groen. b. Cipullo placed the name of Thomas Timby before council as the new township solicitor. c. Councilman Fiocco made the motion to approve Timby's appointment and the motion was seconded by Councilman Tuthill. 1. The motion was approved by a vote of 4-1, with Councilman Kelly opposing. d. Cipullo presented the names of William Huhn, James Pekarski, Anna Rogers and Anthony Verducci, Jr., to council for consideration of the appointment of two individuals to the Lower Bucks County Joint Municipal Authority. 1. Councilman Fiocco suggested to Cipullo that Cipullo place four names in nomination. Council could then choose its two appointments from among the four names. e. Councilman Tuthill made a motion to appoint Anthony Verducci, Jr., to a five year term on the Authority and Anna Rogers to a four year term on the Authority. 1. The motion passed by a vote of 4 -1, with Councilman Kelly opposing. 34. Sometime after that meeting, Cipullo talked with Township Managing Director Raddi about issuing a settlement check to Neil Morris, from the General Fund, in the amount of $50,000.00. a. This amount was the amount demanded by Morris to settle the threatened lawsuit. b. The $50,000 payment was not approved by council members at the January 15, 1996, meeting at the Londonshire Restaurant or any subsequent council meetings. Ciou llo, 96- 045 -C2 Page 9 35. On January 18, 1996, Neil Morris hand delivered a letter to Carmen Raddi. It stated, inter alia. the following: "This will confirm that I have agreed to settle my claims concerning my position as Township Labor Relations Counsel, without prejudice, with Bristol Township and its officials, as follows: 1. I am to be immediately reinstated and /or reactivated as Bristol Township's Labor Relations Attorney at the rate of $140.00 per hour. The working relationship will be as it was in December 1994 and before. 2. I am to be paid the sum of $50,000.00 as damages, $25,000.00 immediately and $25,000.00 to be paid out over a reasonable time. 36. Shortly thereafter, Raddi was told during a trip to Harrisburg with township officials not to write a check for $50,000.00 to Morris. 37. On January 24, 1996, the township notified their insurance agent, Patton Associates, of Morris' proposed suit. 38. Summit Risk Services, Inc. was assigned to act as Third Party Administrator on behalf of General Star Management /APEX Public Entity Insurance Program, the township's insurance carrier. a. Attorney Robert G. Hanna, Jr. of Marshall, Dennehey, Warner, Coleman and Goggin was assigned by Summit Risk Management to represent the insurance company. 39. Hanna recommended to the township and to Summit Risk Services that the matter be settled by paying Morris the $50,000 and by reinstating Morris as the township's labor attorney.. 40. Hanna recommended the insurance company provide the $50,000.00 payment needed to settle the matter and submit the matter to arbitration to determine the exact amount the township and the insurance company would each contribute to the final payment. 41. Morris was provided with a "release" which outlined the following details of the settlement: a. Payment of $50,000 no later than April 19, 1996. b. Reappointment and /or reactivation as labor counsel to represent the township in its dispute with Travelers Insurance Company at a rate of $140 /per hour for all matters. c. Releases of all defendants (Cipullo included) from any future claims and demands. d. Morris signed the release on April 9, 1996. 42. On April 9, 1996, Hanna met with Township Council, Mayor Cipullo and Solicitor Timby, in executive session, and recommended approval of the settlement with Neil Morris. Cipullo, 96- 045 -C2 Page 10 43. Township Council, at the April 9, 1996, meeting, on a motion of Councilman Fiocco, seconded by Council President Annunziata, voted to approve the settlement with Neil Morris. I11. DISCUSSION: At all times relevant to this matter, the Respondent, Anthony Cipullo, hereinafter Cipullo, has been a public official subject to the provisions of the Public Official and Employee Ethics Law ( "Ethics Law "), Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, The allegations are that Cipullo, as Mayor of Bristol Township, Bucks County, violated Sections 3(a) and 3(c) of the Ethics Law by pressuring the Township's labor attorney to make campaign contributions and purchase insurance policies from his insurance agency in return for retaining the labor attorney's firm without reducing the hourly rate for services; and by participating in actions of the Township Council to settle a lawsuit filed against him by the Township's labor attorney. Pursuant to Section 3(a) of the Ethics Law quoted above, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest. The term "conflict of interest" under Act 9 of 1989 is defined above. Section 3(c) of Act 9 of 1989 quoted above provides in part that a public official /public employee shall not solicit or accept anything of monetary value based upon any understanding that his vote, official action or judgment would be influenced thereby. Having noted the issues and applicable law, we shall now summarize the relevant facts. Cipullo served as a Council member from January 1990 to January 1994 and currently as the Mayor since January 3, 1994 in Bristol Township which is a first -class township with a home -rule charter form of government. The Mayor has the authority to appoint the solicitor, special counsel and other professional positions with the advice and consent of Council. The Mayor also has authority to terminate the employment of such appointees. One of the professional appointees in the Township was Neil Morris, who was appointed in February 1990 as the Township Labor Attorney by Mayor Lewis and confirmed by Council. Cipullo who was a Council member at that time voted to confirm the appointment of Morris. In March 1992, Morris informed the Township that he was raising his hourly fee rate from $125 to $ 140 per hour. Mayor Lewis and a member of Council verbally agreed to raise Morris' hourly fee rate. but Council never approved an increase. Consequently, Morris' fee rate was not increased at that time. In December 1993, when Morris met with Mayor -elect Cipullo and some newly - elected Council members, Morris advised that he wanted to continue as Township Labor Attorney but needed an increase in his fee rate to $140 per hour. There is a practice in Bristol Township that publicly appointed professionals are expected to make political contributions to the parties. Such appointees are solicited for contributions to the Township political committee which funds and supports local individuals seeking public office in the Township. Cipullo, 96-.045-C2 Page 11 At the January 1994 reorganizational meeting of Council, Cipullo placed the name of Morris in nomination for the position of Labor Attorney at a rate of $140 per hour. The motion to approve Morris' appointment passed by a 5 -0 vote of Council. On October 20, 1994, Cipullo called Morris at his office and informed him that the Township Democratic Party needed contributions. Cipullo asked Morris to contribute a specified amount which was larger than Morris wanted to give. Morris and Cipullo could not reach an agreement upon the amount of a contribution. Morris stated that he would only contribute $250 and sent a check to the Township Democratic Party in that amount. In January 1995, after the retainer of Township Solicitor Marcel Groen was questioned by Councilman Fiocco, Groen agreed to the elimination of his $7,000 per month retainer but requested an hourly fee rate increase from $85 to $115 per hour. During these discussions, Council member Fiocco expressed his belief that no attorney working for the Township should be paid more than $115 per hour. Cipullo proposed that action be initiated by Council to cap the hourly rate for Township attorneys at $115 per hour. Council voted 4 -0 to set a cap of $115 per hour for any Township attorney and to eliminate the monthly retainer paid to Solicitor Groen. Morris was not informed prior to the Council meeting of the Township's intention to reduce his hourly rate. Cipullo was informed by Morris in a letter dated January 27, 1995 that he was unhappy with his hourly rate reduction. After Cipullo received Morris' letter, Cipullo directed Township Manager Raddi to inform Cipullo whenever there was a need for a labor attorney in the Township. Cipullo directed that legal matters relating to labor problems be reviewed by Cipullo and Township Solicitor Groen, who would make a determination about whether the case would be handled by Morris or Groen. After January 1995, Morris refused to accept any new cases based upon the lower fee rate of $115 per hour. All new labor matters were handled by Township Solicitor Groen at a rate of $115 per hour. Morris continued to handle his previously assigned cases. Cipullo did not terminate Morris and Morris did not resign as Township labor attorney. On December 27, 1995, Cipullo received a copy of a lawsuit which Morris threatened to file in federal court, wherein Morris alleged that Cipullo violated a number of federal and state laws by reducing his hourly fee rate for retaliatory reasons. The threatened lawsuit did not name any other Township officials but later Morris amended the lawsuit to include Council members. On December 31, 1995 Cipullo contacted the Township insurance advisor, Eric Vacca, and sought his advice. Vacca introduced Cipullo to certain attorneys who met with Morris' attorney. No settlement of the unfiled lawsuit was reached. Thereafter, Raddi and Vacca met with Morris to discuss a possible settlement. Raddi and Vacca were advised by Morris that he wanted $50,000, reinstatement as Township Labor Attorney at $140 per hour and a guarantee of future legal work from the Township in order to settle his threatened lawsuit. After Raddi and Vacca informed Cipullo of Morris' terms, Cipullo wanted to meet with other Council members to discuss the possible settlement which was favorable to Cipullo. Vacca contacted certain Council members and arranged a meeting among Vacca, Cipullo and the Council members in a New Jersey restaurant. At the restaurant meeting which took place on January 15, 1996, Vacca, as Cipullo's spokesman, informed the Council members of Morris' terms for a settlement. Vacca stated that Cipullo wanted the help of the Council members in settling the threatened lawsuit and advised that Cipullo was willing to permit Council members to choose appointments to certain Township positions. Vacca told the Council members Cipullo, 96- 045 -C2 Page 12 that Cipullo would cooperate with such public appointments in exchange for their assistance in settling the threatened lawsuit. Subsequently, Council members provided Cipullo with the names of individuals they wanted appointed. Cipullo agreed to make the requested appointments in return for the cooperation of the Council members in settling the Morris case. At a January 16, 1996 Bristol Township Council meeting, Cipullo presented the names of individuals who were sought by the Council members to various appointed positions. After the meeting, Cipullo told the Township manager to issue a check to Morris from the Township general fund in the amount of $50,000. Since that payment was not approved by the Council members at the January 15, 1996 meeting, Township Manager Raddi was told by Township officials not to issue the check. On January 24, 1996, the Township notified its insurance agent about the proposed lawsuit. Attorney Robert Hanna, who was assigned to represent the insurance company, recommended to both the Township and the insurance company that the matter be settled by paying Morris $50,000 and reinstating him as the Township labor attorney. In April 1996, Hanna met with the Council members, Cipullo and Solicitor Timby in Executive Session and recommended approval of the settlement. On April 9, 1996 the Township Council approved the settlement. Having summarized the above relevant facts, we must now determine whether the actions of Cipullo violated Sections 3(a) and 3(c) of Act 9 of 1989. As to Section 3(a) of Act 9 of 1989, we find two violations of the Ethics Law. The first violation involves Cipullo's participation in the New Jersey restaurant where he agreed to make appointments desired by Council members in exchange for the Council members taking action regarding the settlement of the unfiled lawsuit by Morris. The second violation concerns Cipullo's action to make the recommendations at a Council meeting for the professional appointments consistent with the agreement reached. The actions by Cipullo in both instances constituted uses of authority of office. But for the fact that Cipullo was Mayor, he would not be in a position to enter into and effectuate such an arrangement for the public appointments. Juliante, Order 809. That use of authority of office resulted in a private pecuniary benefit in both instances to Cipullo, who could no longer be liable to Morris in the threatened lawsuit. Lastly, the private pecuniary benefit inured to Cipullo himself. We also find two violations of Section 3(c) of the Ethics Law regarding the agreement between Cipullo and Council members and the effectuation of that agreement whereby Cipullo agreed to and then subsequently appointed individuals whom Council members wanted to public positions. That agreement was based upon an understanding between Cipullo and the Council members that if they supported the settlement of the threatened lawsuit against Cipullo, Cipullo would make the appointments of individuals whom Council members wanted to various public positions. In both instances, Cipullo agreed to a course of action based upon an understanding with the Council members that Cipullo would receive something of value, namely the elimination of potential liability on his part as to the threatened Morris lawsuit, in return for his action in making public appointments desired by Council members. Kasalback, Order 993; Livingston, Order 1030. We find no violation of the Ethics Law as to Cipullo's action in lowering the hourly rate of Neil Morris. In this regard, it was the action of Council which reduced Morris' hourly fee rate. Since there was no use of authority of office on the part of Cipullo, we find no violation of the Ethics Law as to that aspect of the allegation. McNeal, Order 1001. Cipullo, 96- 045 -C2 Page 13 We also find no violation of the Ethics Law regarding discussions that Cipullo had with Morris concerning the sale of insurance in that there is insufficient evidence of record to Zink Cipullo's insurance solicitation with the subsequent lowering of Morris' hourly fee rate by Council. Yezzi, Order 825. Finally, we find no violation of the Ethics Law regarding Cipullo's direction to Township Manager Raddi to issue a Township check in the amount of $50,000 to Morris as part of the settlement of the unfiled lawsuit in that no check was issued due to the intervention of other Township officials. Section 7(13) of Act 9 of 1989, 65 P.S. §407(13), specifically empowers this Commission to impose restitution in those instances where a public official /public employee has obtained a financial gain in violation of the Ethics Law. In this case, Cipullo, through a consent agreement has obligated himself to a payment of $1,000. Therefore, Cipullo is directed to pay $1,000 in a timely manner through this Commission to the Commonwealth of Pennsylvania. Compliance with the foregoing will result in the closing of this case with no further action by the Commission. Non- compliance will result in the institution of an order enforcement action. Lastly, we note that the parties have filed a Stipulation of Findings and Consent Agreement which sets forth a proposed resolution of the allegations. We believe that the Consent Agreement is the proper disposition for this case based upon our review as reflected in the above analysis and the totality of the facts and circumstances. IV. CONCLUSIONS OF LAW: 1. Anthony Cipullo (Cipullo), as Mayor of Bristol Township, is a public official subject to the provisions of Act 9 of 1989. 2. Cipullo violated Sections 3(a) and 3 (c) of the State Ethics Act when he participated in a meeting with Council members in which Cipullo agreed to requests by the Council members present to make professional appointments, in exchange for an agreement by those council members to take official action to settle an unfiled lawsuit brought against Cipullo by the Township labor attorney. 3. Cipullo violated Sections 3(a) and 3(c) of the State Ethics Act when he made, in furtherance of the above agreement between himself and the Council members, recommendations at a Council meeting for professional appointments, consistent with the desires of the Council members. 4. Cipullo did not violate the Ethics Act as to the lowering of the hourly fee rate of the Township labor attorney which occurred by action of Council. 5. Cipullo did not violate the Ethics Act as to discussions he had with the Township labor attorney regarding the sale of insurance in that there is insufficient evidence to link Cipullo's insurance solicitation and the subsequent lowering of the labor attorney's hourly fee rate. 6. Cipullo did not violate the Ethics Act when he directed the Township manager to issue a check in the amount of $50,000 as part of the settlement of the unfiled lawsuit in that no such check was ever issued at that time, due to the intervention of other Township officials. In Re: Anthony Cipullo ORDER NO. 1079 1. Anthony Cipullo (Cipullo), as Mayor of Bristol Township, violated Sections 3(a) and 3 (c) of the State Ethics Act when he participated in a meeting with Council members in which Cipullo agreed to requests by the Council members present to make professional appointments, in exchange for an agreement by those council members to take official action to settle an unfiled lawsuit brought against Cipullo by the Township labor attorney. 2. Cipullo violated Sections 3(a) and 3(c) of the State Ethics Act when he made, in furtherance of the above agreement between himself and the Council members, recommendations at a Council meeting for professional appointments, consistent with the desires of the Council members. 3. Cipullo did not violate the Ethics Act as to the lowering of the hourly fee rate of the Township labor attorney which occurred by action of Council. 4. Cipullo did not violate the Ethics Act as to discussions he had with the Township labor attorney regarding the sale of insurance in that there is insufficient evidence to Zink Cipullo's insurance solicitation and the subsequent lowering of the labor attorney's hourly fee rate. 5. Cipullo did not violate the Ethics Act when he directed the Township manager to issue a check in the amount of $50,000 as part of the settlement of the unfiled lawsuit in that no such check was ever issued at that time, due to the intervention of other Township officials. 6. As per a consent agreement of the parties, Cipullo is directed to pay $1,000 in a timely manner through this Commission to the Commonwealth of Pennsylvania. Compliance with the foregoing will result in the closing of this case with no further action. Noncompliance will result in the institution of an order enforcement action. File Docket: 96- 045 -C2 Date Decided: 4/30/98 Date Mailed: 5/11/98 BY THE COMMISSION, A likAJ6 aug_ DANEEN E. REESE, CHAIR