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HomeMy WebLinkAbout1096 FarleyIn Re: R. David Farley STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: X -ref: Date Decided: Date Mailed: Before: Daneen E. Reese, Chair Austin M. Lee, Vice Chair Allan M. Kluger Julius Uehlein Louis W. Fryman John J. Bolger Frank M. Brown 97- 064 -C2 Order No. 1096 10/8/98 10/20/98 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 §eg., 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 not timely filed and a hearing was deemed waived. The record is complete. 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. Farley, 97- 064 -C2 Page 2 1. ALLEGATION: That R. David Farley, a public official /public employee, in his capacity as superintendent of the Redbank Valley School District, Clarion County, violated the following provision of the State Ethics Act (Act 9 of 1989) when he used the authority of his office for a private pecuniary benefit by using school district employees to perform services of a personal nature including, but not limited to repairing lawnmowers and automobiles, completing projects in and around his home; when he used school district equipment and supplies, including but not limited to a school district vehicle for his personal use, and when he submitted and was reimbursed for travel and conference expenses in excess of actual expenses incurred. 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 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. II. FINDINGS: 1. The Investigative Division of the State Ethics Commission received information alleging that R. David Farley violated provisions of the State Ethics Act (Act 9 of 1989). 2. Upon review of the information, the Executive Director of the State Ethics Commission authorized a preliminary inquiry on November 18, 1997. 3. The preliminary inquiry was completed within sixty days. 4. On January 8, 1998, a letter was forwarded to R. David Farley, by the Executive Director of the State Ethics Commission informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. Z 041 456 136. b. The domestic return receipt bore the signature of Ann R. Farley, with a delivery date of January 12, 1998. Farley, 97- 064 -C2 Page 3 5. Periodic notice letters were forwarded to R. David Farley in accordance with the provisions of the Ethics Law advising him of the general status of the investigation. 6. The Investigative Complaint was mailed to the Respondent on June 30, 1998. 7. R. David Farley served as superintendent of the Redbank Valley School District, Clarion County from August 1, 1986, until September 11, 1997. a. " Farley was suspended without pay on September 11, 1997, by the Redbank Valley School Board. 8. Farley's duties as superintendent included the responsibility of all of the daily operations of the school district, including teachers, support staff and maintenance personnel. a. All employees of the district were subordinates to Farley. 9. During the term of his employment as superintendent, Farley regularly directed school district maintenance personnel to perform work of a personal nature around Farley's home, on his vehicles or perform other duties of a personal nature. a. This work ranged from small repairs which took minutes to complete, to work that took several hours and required the use of school district supplies and equipment. 10. Charles Truitt is employed as the maintenance supervisor for the Redbank Valley School District. a. Truitt was hired in August, 1986, by Farley to serve as maintenance supervisor. b. Truitt's duties include supervising the district's maintenance /custodial staff. 11. The maintenance /custodial staff for the school district included Greg Termine, Tom Maginotti, Terry Moore and Larry White. 12. ° The maintenance workers work one of two shifts during the school year. a. Daylight - 7 a.m. - 3 p.m. b. Afternoon - 3 p.m. - 11 p.m. 13. During the summer months, all the maintenance /custodial workers work daylight. 14. Truitt, Maginotti and Termine were the school district employees who did the majority of the personal work for Farley. 15. From 1993 to 1997, the average hourly salary for Truitt, Maginotti and Termine were as follows: a. Truitt - $14.96/hr. Farfev, 97- 064 -C2 Page 4 b. Termine - $11.44/hr. c. Maginotti - $11.44/hr. 16. Following is a list of projects the maintenance workers did for Farley at his direction and on school district time during the period from June 1992 through June 1997. Work Hours Workers Pay Rate Total Installed ignition 3 1 $14.96 $44.88 switch in Farley's car Installed running 2 2 $11.44 $45.76 board on Farley's Jeep Building of a 3 2 $11.44 $ 68.64 wishing well for Farley Building of Adirondack chairs TOTAL $ 2 $14.96/$11.44 $183.04 16 $342.32 17. Wood from the shop at Redbank Valley High School was used to construct the Adirondack chairs. 18. The cost of the wood used to construct the wishing well and chairs is estimated at $150.00. 19. Total private pecuniary gain realized by Farley for using school district employees and materials: Labor $342.32 Material 150.02 TOTAL $492.32 20. Farley attended conferences as part of his duties as school district superintendent. 21. Farley attended a National conference of Superintendents at Ohio State University on July 16, 17, 18, 1996. a. Farley's wife and two sons accompanied Farley on this trip. 22. The Farley's stayed at the Holiday Inn On The Lane in Columbus, Ohio. a. Farley checked into. Holiday Inn at 3:25 p.m. on July 16, 1996. b. Farley stayed the nights of the 16th, 17th, and 18th. c. Farley checked out on July 19, 1996 at 10:46 a.m. 23. On June 6, 1996, the Redbank Valley School District forwarded check #2642 in the amount of $71.77 from the district's general fund to the Holiday Inn On The Lane for a one night room deposit for Farley. Farley, 97- 064 -C2 Page 5 a. This deposit was for the first night of Farley's stay on July 16, 1998. b. Room rate for each night's stay was $71.77. 24. On July 1, 1996, Redbank Valley School District issued check no. 0008968 in an amount of $495.00 to the Ohio State University Department of Education Policy & Leadership. a. This check covered the registration fee and confirmed Farley's attendance. b. Purchase Order 06695 from account #2360 -330 was written from Redbank Valley School District account. 25. Farley submitted a handwritten Travel Advance Request to the school district in the amount of $516.00 prior to July 10, 1996, requesting an advance as follows: a. 850 miles travel at $.30 a mile = $255.00 b. Three night lodging at $77.00 /night = $231.00 c. Two meals at $15.00 = $ 30.00 26. On July 10, 1996, Farley received district check no. 2669 in the amount of $5.16.00 as an advance for the superintendent's conference. a. This advance covered lodging, travel and food. 27. On August 15, 1996, Farley turned in a travel expense reimbursement form to the Redbank Valley School District Business office for an additional 258 miles traveled in relation to his Columbus trip. a. This was in addition to the $255.00 advance for 850 miles as part of the advance received on July 10, 1996. (See Finding No. 25(a)). 28. On September 3, 1996, Farley was issued a check in an amount of $111.00 from the Redbank Valley School District for the additional 258 miles submitted on August 15, 1996. a. The mileage reimbursement rate was paid at $.30 per mile. b. The portion of the check for the additional 258 miles totaled $77.40 (258 x .30). 29. In total, Farley submitted and was reimbursed for 1,108 miles for his attendance at the superintendent's conference in Columbus, Ohio. a. Reimbursement for mileage totaled $332.40 (1,108 x $.30). b. Advance $255.00 c. Excess mileage $77.40 Farley, 97- 064 -C2 Page 6 30. The round trip mileage from New Bethlehem, PA, to Columbus, OH is 522 miles. a. Farley should have been reimbursed $156.60 (522 x $.30) for mileage. 31. Farley submitted and received reimbursement for 586 miles in excess of the actual miles that were traveled from New Bethlehem to Ohio and return. a. The amount of mileage claimed by Farley, was double the mileage for the round trip from New Bethlehem to Columbus, Ohio. 32. Farley received a private pecuniary gain for his submission and subsequent overpayment of $174.80 in mileage reimbursements. 33. Farley checked into the Holiday Inn On The Lane on July 16, 1996, at 3:25 p.m. a. When Farley checked into the hotel, one nights stay had already been paid for by the $71.77 payment made by the school district on June 6, 1996. (Finding No. 23). b. At check -in, Farley paid $143.54 cash, for the remaining two nights stay of July 17th and 18th. 1. This cash was from the $231.00 advance Farley had requested for lodging prior to attending the conference. (Finding No. 25(b)). 34. The $77.00 per night lodging advance request Farley made was $5.33 per night more than the actual per night amount charged by the hotel. (See Finding No. 25(b)). 35. Farley was reimbursed for four nights stay, one night prepaid by the district at $71.77, and three nights advance of $231.00 ($77.00 x 3 nights). a. Farley was reimbursed a total of $302.77 for lodging for four nights. 36. Farley checked out of the Holiday Inn at 10:46 a.m. on July 19, 1996. a. Farley stayed a total of three (3) nights. 37. Farley's total bill was $215.31 ($71.77 x 3 nights) for lodging on the nights of July 16, 17 and 18, 1996. 38. Farley was reimbursed for one (1) additional night's lodging at $77.00 per night. 39. Farley received a private pecuniary gain of $87.46 as a result of his submission and overpayment for lodging. 40. Farley realized a total private pecuniary benefit of $262.26 as a result of his reimbursement requests for the trip to Columbus, Ohio. Farley, 97- 064 -C2 Page 7 41. Farley has received a private pecuniary benefit as a result of his use of the authority of his public position as follows: III. DISCUSSION: Mileage $174.80 (Finding No. 32) Room $ 87.46 (Finding No. 39) TOTAL $262.26 a. Cost of hours worked $342.32 b. Material - $150.00 c. Amount over charged for Columbus trip $262.26 TOTAL $754.58 Initially, we must consider a procedural issue that has arisen regarding the receipt of an Answer to the Investigative Complaint. The pleading stage in this case began with the issuance of the Investigative Complaint on June 30, 1998. On its face, the Investigative Complaint stated that an Answer had to be received at this Commission within thirty (30) days of issuance and that the Respondent should take that document immediately to an attorney. In this case, an Answer was received on July 31, 1998 which was 31 days after the issuance of the Investigative Complaint. An Application Nunc Pro Tunc was received from Farley'4 counsel on August 4, 1998. In the Application, it is argued that no prejudice has resulted to any of the parties to this matter as a result of the late filing, and that the Answer and Request for Hearing were deposited in the United States Mail on July 28, 1998 at approximately 5:15 p.m. The Investigative Division filed an Answer opposing the Respondent's Application, arguing that prejudice has or will result due to the late filing and that the post mark on the envelope in which the Respondent's Answer was contained was July 29, 1998, indicating a mailing on that date. It is clear under the Ethics Law and Regulations that a response to the Investigative Complaint must be received within 30 days. 65 P.S. §408(e); 51 Pa.Code §21.5(k). As noted above, even the face sheet of the Investigative Complaint states that an Answer must be received within 30 days. The Answer in this case was received one day late. In order for a late answer to be deemed timely filed, we apply the same standard as is applied by the courts to untimely appeals (see, Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (Pa. Commw. Ct. 1984) applying that standard in administrative proceedings to an untimely request for a hearing). The standard is that to accept the untimely filing as if it were timely, there must either have been fraud or a breakdown in the administrative process, see, West Penn Power Co. v. Goddard, 460 Pa. 551, 333 A.2d 909 (1975); Bianco v. Robinson Twp., 556 A.2d 993 (Pa. Commw. Ct. 1989), which includes the postal process (Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (1984)), or there must have been unique and compelling factual circumstances establishing non - negligent failure to file timely, Grimaud v. Dep't of Env. Resources, 638 A.2d 299 (Pa. Commw. Ct. 1994); Bass v. Com., 485 Pa. 256, 401 A.2d 1133 (1979). None of the conditions for allowing the filing of a late Answer is present in this case. In fact, there has not even been any allegation of fraud, any breakdown in the Farley, 97- 064 -C2 Page 8 administrative process or the mail delivery system, or any unique and compelling factual circumstances that would establish a non - negligent failure to timely file. No such argument is proffered. Parenthetically, we note that our Regulations allow for the filing of an application for an extension to file an Answer. 51 Pa.Code §21.5(k). No such request was made in this case prior to the filing deadline. Since the argument raised as a procedural issue by Farley has no merit, we reject the argument. The Application to File Nunc Pro Tunc is denied. Turning to the substantive aspect of the case, at all times relevant to this matter, the Respondent, R. David Farley, hereinafter Farley, has been a public 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, et fig. The allegations are that Farley as superintendent of the Redbank Valley School District (School District), Clarion County, violated Section 3(a) of the State Ethics Act (Act 9 of 1989), when he used school district supplies and employees to perform repairs on his automobiles and to complete projects around his home; and when he submitted and received reimbursement for travel and lodging expenses at a conference in excess of the actual expenses incurred. Farley served as superintendent of the School District from August, 1986 until September, 1997 when he was suspended without pay by the School District Board. As superintendent, Farley's duties included the responsibility for the daily operation of the School District, and oversight of teachers, support staff, and maintenance personnel, all of whom were subordinate to Farley. During his tenure as superintendent, Farley directed School District maintenance personnel to perform work of a personal nature around his home and on his vehicles, which was done during School District working hours. In particular, Farley directed one School District employee to install an ignition switch on his car which took three hours; directed two workers to install a running board on his Jeep which took two hours; directed two workers to build a wishing well at his home which took three hours; and directed two workers to build Adirondack chairs which took eight hours. The cost for such labor amounted to $342.32. The Adirondack chairs and wishing well were constructed from wood valued at $150 which was taken from the School District shop. As to such personal projects, Farley received a total financial gain of $492.32 ($342.32 + $150). Farley as part of his duties as School District Superintendent also attended conferences. Farley attended the National Conference of Superintendents at Ohio State University, which was held between July 16 and July 18, 1996. Farley stayed at the Holiday Inn for three nights. The School District sent a check in the amount of $71.77 to the Holiday Inn as a room deposit for Farley. In July 1996, the School District issued a check in the amount of $495 to Ohio State University to cover the registration fee and Farley's attendance at the Conference. Prior to attending the Conference, Farley submitted a travel advance request and received a School District check in the amount of $516, which consisted of $255 for 850 miles of travel at $.30 per mile, $231 for three nights' lodging at $77 per night, and $30 for two meals at $15 each. In August, 1996 Farley submitted a travel expense reimbursement form to the School District for an additional 258 miles of travel or $77.40, which was in addition to the $255 mileage advance that he had already received. In total, Farley submitted and was reimbursed for 1,108 miles for his travel to and from the Superintendents Conference in Columbus, Ohio at $.30 per mile or $332.40. Not only did the mileage Farley, 97- 064 -C2 Page 9 reimbursement that Farley received exceed the 1,108 miles he had claimed, but the mileage that Farley claimed exceeded the actual round -trip mileage between New Bethlehem, Pennsylvania and Columbus, Ohio which was only 522 miles. Since Farley was only entitled to a reimbursement of $156.60 for travel, he was overpaid $ 174.80 in excess mileage reimbursements. As to the lodging at the Holiday Inn, Farley also received payments in excess of actual expenses. In particular, the School District had already paid $71.77 for one night's lodging. As to the other two night's lodging, Farley claimed $77 per night, even though the daily room charge was $71.77 per night. Farley was reimbursed a total of $302.77 for lodging even though the total bill for his stay was $215.31, Farley received a financial gain of $87.46 for such lodging. Therefore, the private pecuniary benefit received by Farley for the Ohio Superintendents Conference totaled $262.26 ($174.80 plus $87.46). Therefore, the total documented private pecuniary benefit received by Farley in this case amounts to $754.58 which consists of $342.32 in hours worked by School District employees on Farley's personal residence and vehicles; $150 as to materials taken from the School District for Farley's personal use; and $262.26 as to over- charges for lodging and mileage reimbursement for the Ohio Superintendents Conference. Section 3(a) of the Ethics Law prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. In applying the provisions of Section 3(a) of Act 9 to the instant matter, there was a use of authority of office on the part of Farley. But for the fact that he was superintendent, he could not have directed the School District employees to take School District supplies to his home and build the wishing well, the Adirondack chairs, and repair his personal vehicles on School District time. The use of authority of office resulted in private pecuniary benefit to Farley in that he did not have any out -of- pocket expenses to have such work done at his residence or on his personal vehicles. In addition, that private pecuniary benefit inured to Farley directly. Hence, Farley violated Section 3(a) of Act 9 of 1989 when he used School District employees and materials for a private pecuniary benefit for himself consisting of repairs performed on his personal vehicles and work done at his personal residence. Rakowsky, Order No. 943. We also find a violation of Section 3(a) of Act 9 of 1989 when Farley submitted and received reimbursements in excess of his actual expenses for his attendance at the Superintendents Conference in Ohio. Because Farley was a superintendent, he was able to attend the Conference and claim an expense reimbursement. Hence, there was a use of authority of office on his part. The reimbursement that he received, to the extent that it exceeded his actual expenses, was a private pecuniary benefit because Farley was only entitled to be reimbursed for the actual expenses he incurred. Choura, Order No. 942. A review of the record indicates that Farley submitted and received reimbursement for more miles than he actually traveled and, secondly, that he received reimbursement for lodging which exceeded the actual room charges at the Holiday Inn where he stayed. Finally, since Farley pocketed the excess expense reimbursements, that private pecuniary benefit inured to him directly. Turning to the matter of restitution, 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 Farley, 97- 064 -C2 Page 10 violation of the Ethics Law. In this case, since it has been determined that a financial gain has been obtained in violation of the Ethics Law, restitution is warranted. Farley is directed, within 30 days of the date of the mailing of this Order, to forward a check to this Commission in the amount of $754,58, payable to the Redbank Valley School District. Non - compliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. R. David Farley, as a superintendent of the Redbank Valley School District, Clarion County, was a public employee subject to the provisions of Act 9 of 1989. 2. Farley violated Section 3(a) of Act 9 of 1989 when he used School District employees and materials for a private pecuniary benefit for himself consisting of repairs performed on his personal vehicles and work done at his personal residence. 3. Farley violated Section 3(a) of Act 9 of 1989 when he submitted and received reimbursements in excess of his actual expenses for his attendance at the Superintendents Conference in Ohio. 4. The private pecuniary benefit received by Farley amounted to $754.58. In Re: Farley File Docket: 97- 064 -C2 Date Decided: 10/8/98 Date Mailed: 10/20/98 ORDER NO. 1096 1. R. David Farley, as a superintendent of the Redbank Valley School District, Clarion County, violated Section 3(a) of Act 9 of 1989 when he used School District employees and materials for a private pecuniary benefit for himself consisting of repairs performed on his personal vehicles and work done at his personal residence. 2. Farley violated Section 3(a) of Act 9 of 1989 when he submitted and received travel and lodging reimbursements in excess of his actual expenses for his attendance at the Superintendents Conference in Ohio. 3. Farley is directed, within 30 days of the date of the mailing of this Order, to make restitution by forwarding payment to this Commission in the amount of $754.58, payable to the Redbank Valley School District. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, 4 ua,u 6 DANEEN E. R