Loading...
HomeMy WebLinkAbout980 PerinoIn Re: Deborah K. Perino STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: 93- 040 -C2 Date Decided: 08/03/95 Date Mailed: 08/14/95 Before: Daneen E. Reese, Chair Austin M. Lee, Vice Chair Roy W. Wilt Allan M. Kluger John R. Showers Rev. Joseph G. Quinn Boyd E. Wolff The Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the State Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 et sea. 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 public hearing was held at the request of respondent. The record is complete. This adjudication of the Commission is hereby issued which sets forth the individual Allegations, Findings of Fact, Discussion, Conclusions of Law and Order. This adjudication is final and will be made available as a public document thirty 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 does not affect the finality of this adjudication. A reconsideration request must be received at this Commission within thirty 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). Perino, 93- 040 -C2 Page 2 I. ALLEGATION: That Deborah K. Perino, a Supervisor for Salem Township, Westmoreland County, violated provisions of the State Ethics Act (Act 9 of 1989) when she was compensated as Township Roadmaster without performing duties related to that position; when she collected expense reimbursement for attending a 1992 convention of Township Supervisors in excess of expenses incurred; when her company contracted with the Township without an open and public process; when she failed to disclose sources of income on a Statement of Financial Interests for the 1991 calendar year; when she continued to have the Township pay health insurance premiums for her son who was not eligible for coverage; when she received compensation and vacation pay for the same days; when she failed to disclose all of her creditors on Statements of Financial Interests filed for the calendar years 1991, 1992, and 1993; and when she received Roadmaster compensation and meeting pay for attending Board of Supervisor meetings scheduled during regular hours as Roadmaster. Section 3. Restricted Activities (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. (f) No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. Perino, 93- 040 -C2 Page 3 A. PLEADINGS: Section 5. Statement of financial interests II. FINDINGS: (b) The statement shall include the following information for the prior calendar year with regard to the person required to file the statement. (5) The name and address of any direct or indirect source of income totalling in the aggregate $1,000 or more. However, this provision shall not be construed to require the divulgence of confidential information protected by statute or existing professional codes of ethics or common law privileges. 65 P.S. §§403(a), (f) ; 405 (b) (5) . 1. Deborah K. Perino serves as a Supervisor of Salem Township, Westmoreland County. a. Perino has served in this position since January, 1992. 2. A Fictitious Name Registration filed for Deb -Tone Printing with the Pennsylvania Department of State Corporation Bureau, 308 North Office Building, Harrisburg, PA, on December 5, 1983, discloses the following: a. Nature of Business: All types printing- copies; b. Individuals interested in the business: Anthony M. and Debbie K. Perino; c. Authorized Agent(s): Anthony M. & Debbie K. Perino; d. Approval Date: December 8, 1983; e. Corporation No. 791812 3. Deb -Tone Printing conducted business with Salem Township after Perino became a Township Supervisor in January, 1992. a. Township records disclosed that Deis -Tone Printing conducted business with Salem Township prior to Perino Perino, 93- 040 -C2 Page 4 taking office. 4. No single invoice from Deb -Tone Printing to Salem Township was in excess of $500.00. 5. Perino signed the front side of four township checks payable to Deb -Tone Printing. Check # Date Amount 300 04/16/92 $147.56 656 10/20/92 10.00 124 02/18/93 40.00 201 03/18/93 100.00 $297.56 6. Perino never abstained from voting to approve the bills which included payments to Deb -Tone Printing. a. No single payment was in excess of $500.00. b. Perino cast the deciding vote to approve bills at the April 15, 1993, meeting which included an invoice from Deb -Tone Printing in the amount of $20.00. 7. Perino participated in board action to approve the bills which contained payments to Deb -Tone Printing as part of the following meetings: Meeting Date Official Action Recorded Vote 01/16/92 Vote 3 -0 03/19/92 Vote 3 -0 04/16/92 Vote 3 -0 06/18/92 Vote 3 -0 11/19/92 Vote 3 -0 12/17/92 Vote 3 -0 01/21/93 Vote 3 -0 03/18/93 Vote 3 -0 04/15/93 Second Vote 2 -0 8. Perino attended the Pennsylvania State Association of Township Supervisor's Annual Conventions in 1992, 1993, and 1994. 9. The Board of Supervisors approved attendance at the annual conventions at the Reorganization Meeting for the entire Board. 10. Resolution 138, passed April 11, 1988, authorized reimbursement of actual expenses for township supervisors attending the Annual State Convention which included the Perino, 93- 040 -C2 Page 5 registration fee, mileage, food, and lodging (based on a single person rate) a. Itemized accounts of all expenses were required. b. Wages would be paid at the regular rate, not to exceed eight hours per day for more than four days, including travel time. 11. Minutes of the January 6, 1992, Reorganization Meeting, indicated the following regarding attendance at the 1992 PSATS Convention. a. Motion made by Mr. Mazzoni, seconded by Mrs. Perino for the entire board to attend the 1992 State Convention. Mr. Mazzoni, Mrs. Perino and Mr. Pavlovich voted yes. 12. Minutes of the March 19, 1992 meeting include a motion to authorize a $300.00 advance to Supervisors Mazzoni and Perino for the State Convention on April 5th, 6th, 7th and 8th at Hershey, PA. a. Check #215, dated 03/19/92, was issued from the Salem Township Board of Supervisor's General Fund as an advance for the State Convention. b. All three Supervisors, Mazzoni, Pavlovich, and Perino signed the check. 13. Perino submitted a PSATS Convention Expense Report for her attendance in 1992: Mileage: 482 miles @ $.20 1/2 cents /mile = $ 98.81 Meals: = 140.04 Lodging: $216.24 + $10.00 tip = 226.24 Miscellaneous: Turnpike tolls = 11.80 Total = $ 476.89 Less $300.00 advance = 300.00 = $ 176.89 14. Township General Fund check #291, dated April 16, 1992, was issued to Deborah Perino in the amount of $176.89 as reimbursement of expenses. a. Perino voted to approve payment of the bills at the meeting held on the same date which included the reimbursement of her expenses. b. The bills were approved by a 3/0 vote. 15. Township weekly, bi- weekly or semi - monthly Payroll Reports Perino, 93- 040 -C2 Page 6 show that Deborah Perino received compensation as a Roadmaster on April 6, 7, and 8, 1992. April 6, 1992 - 8 hours @ $103.00 /day April 7, 1992 - 8 hours @ $103.00 /day April 8, 1992 - 8 hours @ $103.00 /day Total $309.00 16. Minutes of the January 4, 1993, Salem Township Board of Supervisor's Reorganization Meeting indicated the following regarding attendance at the 1993 PSATS Convention. a. Motion made by Mr. Mazzoni, seconded by Mr. Pavlovich for the entire board to attend the 1993 convention. Mr. Mazzoni, Mr. Pavlovich and Mrs. Perino voted yes. 17. The PSATS Delegate Registration Form for the Annual State Convention held April 4 -7 in Hershey, Pa., for Deborah Perino showed the following pre - payments made by the township: Delegate Registration - $ 80.00 Room deposit - 90.00 Total - $170.00 18. Perino submitted a PSATS Convention Expense Report for her attendance in 1993: Mileage: 482 miles @ $.20 1/5 [sic] cents /mile Meals: Lodging: $200.34 + $10.00 tip Miscellaneous: Turnpike tolls Total: Less Advance = $ 98.81 79.83 210.34 11.00 399.98 300.00 = $ 99.98 19. Township General Fund check #334, dated May 10, 1993, was issued to Deborah Perino in the amount of $99.98 as reimbursement of expenses. a. Perino voted to approve payment of the bills at the May 20, 1993, meeting which included the reimbursement of her expenses. b. The bills were approved by a 2/0 vote, Perino and Pavlovich were present. 20. Township weekly, bi- weekly, or semi- monthly Payroll Reports show that Deborah Perino received compensation as a roadmaster on April 5, 6, 7, 1993. Perino, 93- 040 -C2 Page 7 April 5, 1993 - 8 hours @ $108.00 /day April 6, 1993 - 8 hours © $108.00 /day April 7, 1993 - 8 hours © $108.00 /day Total $324.00 21. Minutes of the January 3, 1994, Reorganization Meeting indicated the following regarding attendance at the 1994 PSATS Convention. a. Motion made by Mrs. Perino seconded by Mr. Mazzoni for the entire Board to attend the 1994 State Convention. Mr. Pavlovich, Mr. Mazzoni, and Mrs. Perino voted yes. 22. The PSATS Delegate Registration form for the Annual State Convention held April 17 -20, 1994, in Hershey, PA., for Deborah Perino showed the following pre - payments made by the township: Delegate Registration - $80.00 Total $80.00 a. The township did not pay a room deposit. 23. Perino submitted a PSATS Convention Expense Report for her attendance in 1994: Mileage: 482 miles @ $.20 1/2 cents /mile = $ 98.81 Meals: = 124.07 Lodging: $190.80 + $10.00 tip = 200.80 Miscellaneous: Turnpike tolls = 12.40 Total $436.08 24. Township General Fund check #410, dated May 19, 1994, was issued to Deborah Perino in the amount of $436.08 as reimbursement of expenses. a. Perino voted to approve payment of the bills at the 5/19/94 meeting, which included the reimbursement of her expenses. b. The bills were approved by a 2/0 vote, with Mazzoni absent. 25. A lodging receipt from the Simmons' Motel indicates that a total of $190.80 was charged for three nights, April 17, 18, 19, 1994. a. Perino's Expense Report listed the lodging cost at $200.80. b. In past years, Perino had included a $10.00 tip in the Perino, 93- 040 -C2 Page 8 lodging total, which would account for the difference between the lodging receipt and the expense report. 26. Township weekly, bi- weekly or semi - monthly Payroll Reports show that Deborah Perino received compensation as a roadmaster on April 18, 19, and 20, 1994. April 18, 1994 - 8 hours @ $108.00 /day April 19, 1994 - 8 hours @ $108.00 /day April 20, 1994 - 8 hours @ $108.00 /day Total $324.00 27. Township General Fund check #265, dated April 10, 1992, was issued to Deborah Perino in the amount of $40.50 as reimbursement for attending the 1992 County Convention. $35.00 Attendance pay 5.50 Mileage (25 miles @ $.22 cents /mile). $40.50 Total 28. A Certificate of Attendance for the County Convention held 3/19/93 at the Sheraton Inn, Greensburg, shows that Perino was entitled to mileage and $35.00 attendance pay. 29. Municipal Weekly, Bi- Weekly or Semi - Monthly Payroll Report for March 16 -31, 1993, reflect that Perino received roadmaster pay and truck allowance in the amount of $122.00 while attending the County Convention. Roadmaster pay $108.00 /day Truck allowance 14.00 /day Total $122.00 30. A Certificate of Attendance for the County Convention held March 18, 1994, at the Sheraton Inn, Greensburg, shows that Perino was entitled to mileage and $35.00 attendance pay. 31. Township General Fund check #328, dated April 21, 1994, was issued to Deborah Perino in the amount of $39.40, as reimbursement for attending the 1993 [sic] County Convention. $35.00 Attendance pay 4.40 Mileage (20 miles @ $.22 cents /mile) $39.40 32. Municipal Weekly, Bi- Weekly or Semi- Monthly Payroll Report for March 16 -31, 1994, reflect that Perino scheduled a vacation day on March 18, 1994, when she attended the County Convention. Vacation pay $108.00 /day Perino, 93- 040 -C2 Page 9 Total: $108.00 33. The Department of Community Affairs Bureau of Local Government Services Municipal Training Division held workshops on January 25, and February 15, 1992, at the Sheraton Inn, Greensburg, PA. a. The registration fee was $30.00 for one or $45.00 for both sessions which covered material and refreshments. b. Both sessions were held on Saturday. c. Lunch was not provided. 34. The Salem Township Auditor's approved benefits for the supervisor /roadmasters which included vacation and sick days. a. The number of vacation days approved was 21. b. The number of sick days approved was 21. c. Holidays approved included 14 specifically named days and one floating day (to be agreed upon by the employees). 35. The Salem Township road workers are represented by the UAW (International Union, United Automobile, Aerospace & Agricultural Implement Workers of America) Local, 204. 36. Benefits are set forth in agreements between the UAW Local 204 and the Salem Township Board of Supervisors. a. Agreements cover a three year time period. b. The Agreement signed 02/21/91 covered 1991, 1992, and 1993. c. The Agreement signed 12/21/93 covers 1994, 1995 and 1996. 37. Perino received vacation pay and pay for working as a roadmaster on four days in 1993. 38. During the time period December 1 -15, 1993, Perino received dual compensation for a vacation day and a work day on December 15, 1993. a. Eleven regular work days fell during this time period. b. Perino was compensated for 16 days which included: 12/4 - vacation day scheduled on Saturday 12/5 - vacation day scheduled on Sunday Perino, 93- 040 -C2 Page 10 12/11- vacation day scheduled on Saturday 12/15- vacation day /regular day 39. During the time period December 16 -31, 1993, Perino received dual compensation for a vacation day and a work day on December 16, 17 and 20, 1993. a. Twelve regular work days fell during this time period. b. Perino was compensated for 16 days which included: 12/16 - vacation /regular day 12/17 - vacation /regular day 12/18 - vacation day scheduled on Saturday 12/20 - vacation /regular day 40. Perino and the other supervisor /roadmasters regularly scheduled vacation days on Saturdays and Sundays. 41. The Salem Township Recreation Board sponsored a bus trip to Harrisburg and Atlantic City on September 24 -25, 1992. a. The bus departed from Delmont, PA., to Harrisburg, PA., and then to Atlantic City, New Jersey. 42. Minutes of the October 5, 1992, Recreation Board meeting includes the following reference to the trip: Dorothy Steele reported on Harrisburg - Atlantic City trip. `All participants enjoyed trip.' Mrs. Steele also submitted roster of Salem Township residents who went on the trips" 43. The roster attached to the minutes of the Recreation Board's 10/05/92 meeting identifies "D. Perino" as one of the forty - four participants. a. The roster is identified at the top "Harrisburg- Atlantic City." 44. A Greensburg Tribune- Review newspaper article, dated September 3, 1993, titled "Official Told She's Subject of Probe" references the State Ethics Commission investigation into alleged misconduct of Perino. 45. The article states that the reporter attempted to contact Perino for a comment on the investigation, and received the following response: She could not be reached yesterday for comment on the investigation. A family member said she was en route to South Carolina for a vacation. Perino, 93- 040 -C2 Page 11 46. Municipal Weekly, Bi- Weekly or Semi- Monthly Payroll Report for the period September 1 -15, 1993, show that Perino was compensated for the following sick days: September 2, 1993 $108.00 /day September 3, 1993 108.00 September 7, 1993 108.00 September 8, 1993 108.00 September 9, 1993 108.00 September 10, 1993 108.00 September 13, 1993 108.00 Total $756.00 a. September 6, 1993, was a paid holiday. b. September 4, 5, 11, 12, 1993, were weekend days. 47. Deborah Perino received dual compensation for vacation days scheduled on regular work days when she was compensated as a roadmaster in the amount of $638.00. 1992 2 days @ $103.00 /day = $ 206.00 1993 4 days @ $108.00 /day = $ 432.00 48. Deborah Perino is enrolled on the Salem Township Health Insurance Policy through Blue Cross /Blue Shield of Western Pennsylvania, Group #75463 -00. a. The employees /roadmasters and their families are entitled to participate. b. The township was billed annually for this coverage. c. A supplemental policy included dental, eye and prescription coverage. 49. A supplemental coverage information card dated 01/07/92, identified Joseph J. Perino as a dependent of Deborah Perino. a. Joseph Perino is identified as a full -time student at Westmoreland County Community College. b. His date of birth is shown as 12/15/69. c. The effective date of coverage for Joseph Perino was 01/06/92. 50. Salem Township was not responsible for premium payments of dependents participating in the COBRA Extension. 51. Joseph Perino was enrolled on the township health plan in Perino, 93- 040 -C2 Page 12 January, 1992, at the age of twenty -two years old. a. The township paid a pro -rated premium for this coverage because the policy renewal date was 11/1/91. 52. Joseph Perino continued to participate on the township policy at a cost to the township through 11/1/93. a. Joseph Perino was removed from the policy as of this date. 53. Township records indicate that the premium for Joseph Perino's coverage for the policy period 11/01/93 through 10/31/94, was paid by the township. 54. On November 17, 1993, correspondence was forwarded by facsimile to Blue Cross /Blue Shield Representative, Lisa Fischer, by Salem Township Secretary Sara Ott, requesting that coverage for full -time students be included in the family plan coverage. a. Employees with dependents who were full -time students were listed: Deborah Perino ( Roadmaster) and Joseph Perino (student) David Galando (roadworker) and Melissa Galando (student) John Mazzoni (roadmaster) and Rachel Mazzoni (student) Nancy Shusko (clerk) and Robert Shusko, Jr. (student) b. The facsimile cover sheet directed to Charles Taggert was signed by Debbie Perino. 55. As of 11/01/93, the township plan included full -time students between the ages of 19 and 23 under family coverage. a. This resulted in a slight increase in the cost of the premium of each employee, but an overall savings to the township. 56. Deborah Perino's wages and benefits as township roadmaster were annually set by township auditor's minutes of the Salem Township Board of Auditors include the following action setting wages and benefits: a. January 8, 1991: Wages - $3.00 per day increase to $103.00 per day. Truck allowance - $2.00 per day increase to $14.00 per day. Life insurance - $3,000.00 increase to $13,000.00. Retirement Medical benefits increased from 2 years to 3 Perino, 93- 040 -C2 Page 13 years including Blue Cross, Blue Shield, Major Medical and prescription drug coverage or until age 65 at two person rate. All other benefits - same as previous year. Present: Charles Dominick, Mary McMahon, Mary Ann Backos. b. January 7, 1992: Wages - same as 1991 Life insurance - increased to $16,000.00 No other compensation set Present: Charles Dominick, Mary McMahon, Mary Ann Backos. c. January 5, 1993: Wages - $5.00 per day increase to $108.00 per day Life insurance - increased to $20,000.00 All benefits - approved Present: Charles Dominick, Mary McMahon, Mary Ann Backos. Approved benefits not defined. 57. Salem Township Supervisors received $2,000.00 annually for their attendance at township meetings. 58. Bi- weekly time sheets of the Salem Township Road Department indicate Perino claimed an eight hour work day on each and every day she attended a 9:30 a.m. supervisor's meeting. 59. Township Solicitor Leslie J. Mlakar provided the Board of Supervisors with an opinion dated November 18, 1993, on the issue of supervisors attending public meetings during normal roadmaster hours. Solicitor Mlakar provided the following advise: 2 would suggest that the daily rate be calculated on an hourly rate for the computation of how much time is actually spent at a township meeting during the normal working hours of the roadmaster. Therefore, for any meeting held during the normal working hours, exact time should be kept, and this amount should be deducted from the daily rate paid to the supervisor acting as roadmaster. The supervisor, however, would receive his compensation as an elected township supervisor Perino, 93- 040 -C2 Page 14 for the meetings he attends, pursuant to the existing practice of the Township of Salem. I would also suggest that the regular monthly meeting and meetings scheduled after the normal work day of a supervisor should not be deemed as an offset against their wages, since we are only computing the rate of pay on an hourly basis for the normal work day. 60. Subsequent to the solicitor's advice, the supervisors day time meetings were changed to 3:30 p.m. to coincide with the normal finishing time for the township's road department. 61. The Pennsylvania Department of a project which involved the including the section in Salem Ambulance Property was located Transportation was initiating widening of U.S. Route 22, Township where the Slickville (referred to as Section B -06) . 62. Deborah Perino and her husband entered into the Article of Agreement with Slickville Ambulance Service, Inc. prior to taking office as a Salem Township Supervisor. 63. The date of the Articles of Agreement precedes the alteration of the U.S. Route 22 road widening project by PennDOT that affected the Slickville Ambulance Property. a. There is no indication that PennDOT was aware of the historical significance of the Congruity Stagecoach Inn, in January, 1991, or before. 64. Statements of Financial Interests on file with Salem Township include the following filings for Perino: a. Calendar year: 1993 Filed: 04/29/94 Position: Supervisor /Roadmaster Creditors: S &T, Greensburg 8 %; PNC Monroeville 12% Direct /Indirect Income: Salem Township; Deb -Tone Printing Office /Directorship /Employment in any business: Owner Deb -Tone Printing *A11 other Financial Interests: None *Perino made the following disclosure regarding her real estate interests: I have a Lease Hold and an equitable interest in parcel #5714000242, which is located on Rt. 22, R.D. #4, Greensburg. I am aware that PennDOT may begin condemnation proceedings in 1994 on this parcel. Perino, 93- 040 -C2 Page 15 b. Calendar Year: 1992 Filed: 04/28/93 on SEC Form 1/93 Position: Supervisor Creditors: S &T, Delmont 8 %; PNB Monroeville 12% Direct /Indirect Income: Salem Twp., Deb -Tone Printing Office /directorship /employment in any business: Owner Deb -Tone Printing All other Financial Interests: None c. Calendar Year: 1991 Filed: 04/23/92 on SEC Form 1/92 Position: Supervisor Creditors: S &T Savings, Greensburg, 10.7 %; PNB, Monroeville, 12.0% Direct /Indirect Income: Salem Twp., Deb -Tone Printing Office /directorship /employment in any business: Owner, Deb -Tone Printing All other Financial Interests: None d. Calendar Year: 1990 Filed: 01/21/91 on SEC Form 1/91 Position: Supervisor candidate Creditors: None Direct /Indirect Income: Ted McWilliams, Inc. Financial Interest in any business: Husband /wife proprietor; Deb -Tone Printing All other Financial Interests: None 65. Perino failed to list Ted McWilliams, Inc. as a source of income on her Statement of Financial Interests for calendar year 1991. 66. Perino filed an amended Statement of Financial Interests form for calendar year 1991 on September 2, 1993. a. This form was filed after receiving written notification of alleged violations of the State Ethics Act (Act 9 of 1989), dated August 24, 1993. b. Perino's failure to list sources of income for calendar year 1991 were included as part of the August 24, 1993, correspondence. 67. Perino's amended Statement of Financial Interests form for calendar year 1991 contained the following information: a. Calendar Year: 1991 Filed: 09/02/93 on SEC Form 1/91 Position: Blank Creditors: Blank Direct /Indirect Income: Ted McWilliams, Inc. Perino, 93- 040 -C2 Page 16 All other Financial Interests: Blank b. Attached to the amended 1991 filing is correspondence dated September 2, 1993, from Perino to John J. Contino, Executive Director, State Ethics Commission advising the following: Enclosed is Pennsylvania Interest for B. STIPULATIONS: a copy of my amended Commonwealth of SEC -1 REV 1/92, Statement of Financial 1991. I erroneously listed Salem source of income for the year Ted McWilliams, Inc. as the My employment as a Supervisor start until January 1, 1992. Township as an additional 1991. I should have listed source of income for 1991. with Salem Township did not 68. A signed, sworn Complaint was received by the Investigative Division of the State Ethics Commission on June 3, 1993, alleging that Respondent, Deborah K. Perino, violated the provisions of the Ethics Law. 69. Upon review of the Complaint by the Director of Investigations of the Investigative Division of the State Ethics Commission, a recommendation was made to the Executive Director of the State Ethics Commission to commence a preliminary inquiry. 70. At the direction of the Executive Director of the State Ethics Commission, the Investigative Division of the State Ethics Commission instituted a preliminary inquiry. 71. The preliminary inquiry was completed within sixty days. 72. Upon completion of the preliminary inquiry, the matter was reviewed by the Executive Director of the State Ethics Commission. 73. On August 23, 1993, a letter was forwarded to Respondent by the Executive Director of the State Ethics Commission informing Respondent of the fact that a Complaint against him was received by the Investigative Division of the State Ethics Commission and that a full investigation was being commenced. 74. The full investigation was commenced at the direction of the Executive Director of the State Ethics Commission. 75. On December 7, 1993, the Executive Director of the State Ethics Commission requested a ninety -day extension of time to complete the investigation and such request was granted on Perino, 93- 040 -C2 Page 17 Invoice Invoice Date Amount December 7, 1993. 76. On March 21, 1994, the Executive Director of the State Ethics Commission requested a second ninety -day extension of time to complete the investigation and such request was granted on April 29, 1994 77. On August 15, 1994, an additional letter was forwarded to the Respondent by the Executive Director of the State Ethics Commission informing Respondent of additional allegations that the investigation will encompass. 78. Letters were forwarded to the Respondent and Complainant in this matter advising each as to the general status of the instant investigation on the following dates: a. November 24, 1993; b. February 24, 1994; and c. May 24, 1994. 79. Perino has served as a roadmaster since January, 1992. a. The township is divided into three geographic areas, for maintenance purposes. b. Perino was assigned to the area which includes Salemville and William Penn Estates. c. The geographic areas are not identified by specific districts. 80. Deb -Tone Printing is a business owned by Deborah K. and Anthony M. Perino. a. The business address is RD #2, Box 505, New Alexandria, Pennsylvania, 15670. b. The business address is the same as the personal residence of the Perinos. c. The business is located in Salem Township, Westmoreland County. 81. Deb -Tone Printing invoices reflecting purchases by Salem Township include the following: Item Check Check Check l Date Amount Signature Perino, 93- 040 -C2 Page 18 02/04/92 $120.00 3,000 cards 221 03/19/92 $120.00 Mazzoni, Pavlovich * Letter attached from Mazzoni and Pavlovich authorizing the purchase from Deb -Tone. 12/26/91 121.00 3500 wage tax final return forms 01/15/92 43.90 * Letter attached from Mazzoni and Pavlovich authorizing the purchase from Deb -Tone. Items ordered by Tax Collector Garofola; 12/26/91 invoice total split with the school district. 03/12/92 126.56 Envelopes 03/18/92 21.00 11 Bldg. Permit Forms * Items on 03/12/92 invoice ordered by invoice ordered by township. 06/11/92 42.00 Road Occupancy 404 06/18/92 42.00 Mazzoni, and applications Pavlovich for road occupancy 09/25/92 10.00 500 envelopes 656 * Items ordered by Tax Collector 12/92 186.00 Wage Tax Forms and cards 12/03/92 5.00 50 copies 12/29/92 50.00 2500 envelopes 45 34 01/16/92 104.40 Mazzoni, Pavlovich 11 11 300 04/16/92 147.56 11 � 11 Tax Collector; items on 03/18/92 10/20/92 10.00 772 12/17/92 93.00 * Items ordered by Tax Collector; total split with school district. Mazzoni, Pavlovich, Perino Mazzoni, Pavlovich Perino Mazzoni, Pavlovich 773 12/17/92 5.00 Mazzoni, Pavlovich 01/19/93 25.00 Mazzoni, Pavlovich * $25.00 included the township's share of the cost of the envelopes which were used for the 4th quarter wage tax. Perino, 93- 040 -C2 Page 19 01/22/93 40.00 500 letterhead 124 02/18/93 40.00 Mazzoni, Pavlovich, Perino 03/01/93 100.00 5000 #10 201 03/18/93 100.00 Mazzoni, envelopes Pavlovich, Perino * These envelopes were used for the 1993 real estate and per capita tax. This represented the township share, the items were received by Tax Collector Anthony Garofola. 03/18/93 20.00 1000 envelopes 277 04/15/93 20.00 Mazzoni, Pavlovich * Items used for the first quarter wage tax, represents township share. TOTALS: Township School District Year Total Amount Portion Portion 1992 $675.46 $521.96 $153.50 1993 210.00 185.00 25.00 82. Action on township bills are included as part of the supervisor's monthly meetings. a. Bill lists are voted on in their entirety at that time. b. Bill lists are generally unanimously approved. c. Checks are personally signed by the supervisors. 83. The Pennsylvania State Association of Township Supervisor's Delegate Registration Form for the Annual State Convention held April 5 -8, 1992, in Hershey, PA., for Deborah Perino showed the following pre - payments made by the township: Delegate Registration $ 70.00 a. Anthony M. Perino was listed as the guest of Deborah Perino. 84. Minutes of the April 8, 1993, Board meeting include a motion to authorize a $300.00 advance to Supervisors Mazzoni and Perino for the State Convention on April 4th, 5th, 6th, and 7th, at Hershey, PA. a. Check #235, dated April 2, 1993, was issued from the Salem Township Board of Supervisor's General Fund as in Perino, 93- 040 -C2 Page 20 advance for the State Convention. b. Two Supervisors, Pavlovich and Perino signed the check. 85. The Simmons Motel confirmed that Perino stayed there on April 4th, 5th, and 6th, 1993. 86. Perino was compensated in the amount of $324.00 for attending the PSATS Convention in 1993. 87. Deborah Perino received compensation in the amount of $414.00 in relation to her attendance at the 1993 Annual PSATS Convention: $324.00 Wages for 3 of the 4 days of the convention 88. Perino was compensated in the amount of $324.00 for attending the PSATS Convention in 1994. 89. Deborah Perino received compensation in the amount of $324.00 in relation to her attendance at the 1994 Annual PSATS Convention: $324.00 Wages for 3 of the 4 days of the convention. 90. Deborah Perino received $35.00 for attending the Westmoreland County Association of Township Officers in 1992, 1993, and 1994, and was also compensated at her regular daily rate as a roadmaster by using a vacation day. 91. A Certificate of Attendance for the County Convention held 3/17/92 at the Sheraton Inn, Greensburg, shows that Perino was entitled to mileage and $35.00 attendance pay. 92. Municipal Weekly, Bi- Weekly or Semi- Monthly Payroll Report for March 16 -31, 1992, reflect that Perino received roadmaster pay and truck allowance in the amount of $117.00 on March 17, 1992, while attending the County Convention. Roadmaster pay $103.00 /day Truck allowance 14.00 /day Total $117.00 93. Township General Fund check #272, dated April 15, 1993, was issued to Deborah Perino in the amount of $40.50, as reimbursement for attending the 1993 County Convention. $35.00 Attendance pay 5.50 Mileage (25 miles Q $.22 cents /mile) $40.50 Total Perino, 93- 040 -C2 Page 21 94. Deborah Perino was paid her regular roadmaster rate and was reimbursed for meal expenses and mileage. a. January 25, 1992: Rate: 7.5 hrs @ $12.88/hr. = $ 96.60 (gross pay) Meal: (receipt submitted) = 5.28 Mileage: 25 miles @ $.22 cents /mile = 5.50 Total: $107.38 b. February 15, 1992: Rate: 7.5 hrs @ $12.88/hr. = $ 96.60 Meal: (receipt submitted) = 4.31 Mileage: 25 miles @ .22 cents /mile 5.50 Total: $106.41 c. Withholding taxes were deducted from the gross pay. Net pay $85.25 for each day. d. Perino's wage was prorated reflecting 7.5 hours, @ $12.88 /hour. e. Perino's roadmaster rate was $103.00 /day based on an 8 hours day. 95. Perino received compensation in the amount of $213.79 when she was reimbursed for wages and expenses in relation to her attendance at the DCA Workshops in 1992. January 25, 1992 - $107.38 February 15, 1992 $106.41 Total: $213.79 96. Vacation benefits outlined in the collective bargaining Agreement covering the road workers stipulates that employees are required to take vacation time off. 97. On December 30 and 31, 1992, Perino received dual compensation for a vacation day and a work day. a. This is reflected on the time sheets by both of the symbols "V" (vacation) and "D" (day worked) appearing in the space for the 30th and 31st. b. Twelve regular working days fell during the time period 12/16 - 12/31/92. c. Perino was compensated for 15 days which included: 12/19/92 Vacation day scheduled on Saturday 12/30/92 Vacation day plus regular day Perino, 93- 040 -C2 Page 22 12/31/92 Vacation day plus regular day 98. Deborah Perino received compensation in the form of sick pay in 1992 when she went on a trip sponsored by the Recreation Board, and in 1993 when she took a vacation to South Carolina. 99. Perino was compensated for two sick days, which she took as vacation days in the amount of $206.00. September 24, 1992 $103.00 September 25, 1992 - $103.00 Total: $206.00 100. In 1993, Perino was compensated for 4 vacation days on workdays that she was also compensated as a roadmaster. a. The remaining 2 vacation days were scheduled during the regular work week, and were taken as time off. 101. At the Salem Township Board of Auditor's Reorganization meeting of January 13, 1994, the issue of vacation and sick time was discussed. a. Vacation days are the same for supervisors as for hourly workers; they are to be taken during the week and they are for vacation days. b. Sick days are for sickness. 102. By way of letter dated February 28, 1994, the Salem Township Auditors informed the supervisors that the practice of scheduling vacation days on weekends was to stop immediately. a. Scheduling vacation time on weekends was not permissible and went against the intent of the vacation policy. b. Vacation days were to be scheduled Monday through Friday. c . d. Vacation days are not to be scheduled on weekdays when a holiday falls on that day. Vacation days are not to be scheduled with other legitimate reimbursable days such as bereavement or sick days. 103. The February 28, 1994, letter from the auditors also clarified sick days as time off for sickness and not to supplement vacation and other time off. 104. Deborah Perino received compensation for vacation day scheduled on weekends in the amount of $3,577.00. Perino, 93- 040 -C2 Page 23 1992 19 days @ $103.00 /day = $1,957.00 1993 15 days @ $108.00 /day = $1,620.00 105. Deborah Perino is enrolled on the Salem Township Health Insurance Policy through Blue Cross /Blue Shield of Western Pennsylvania, Group #75463 -00. a. The employees /roadmasters and their families are entitled to participate. b. The township was billed annually for this coverage. c. A supplemental policy included dental, eye and prescription coverage. 106. Westmoreland County Community College Records Department confirmed that Joseph J. Perino was enrolled as a full -time student from January, 1991, through December, 1993. 107. Salem Township participated in a Blue Cross /Blue Shield health plan that did not provide coverage under the family plan for dependents of employees who were full -time college students. a. Dependents were covered up to the age of 19. b. Full -time college students were eligible up to the age of 23. c. Full -time college students were added to the policy as individuals. 108. Dependents who were full -time college students were listed as individuals under the plan at a significant cost to the township. a. At the end of the month when dependent college students turned 23, they were no longer eligible to be included in the township coverage. b. On turning 23, dependents were eligible to extend their coverage under the township plan by participating in the COBRA Extension Provision. 109. Joseph Perino was eligible to participate on the township plan through December, 1992, when he turned twenty -three years old. a. The township policy was renewed in 11/1/92. b. Joseph Perino was eligible for two months coverage (November and December), under the policy renewed on 11/1/92. Perino, 93- 040 -C2 Page 24 110. Blue Cross /Blue Shield invoices reflect that Salem Township continued to pay the policy premium for the coverage of Joseph Perino after he was no longer eligible. a. Policy period - 11/01/92- 10/31/93: Blue Cross - $ 1,108.92 Dental $114.00 Blue Shield - 661.20 Drugs 281.88 Major Medical- 335.76 Eye 30.00 $ 2,105.88 $425.88 Pro -rated for 10 months $ 1,754.90 $354.90 Total: $2,109.80 b. Policy Period 11/01/93- 10/31/94: Dental - $115.80 Drugs - 304.44 Eye - 30.00 $450.24 Total: $450.24 111. As of 01/26/94, Blue Cross /Blue Shield issued a refund check to Salem Township in the amount of $7,717.15, for overpayment of the anticipated increase in the premium when students were included under family coverage. a. The township had already received and paid the annual invoice for the premium prior to the change in the student coverage. b. The township estimated the increased cost of the premium and forwarded that amount to Blue Cross /Blue Shield. c. The increase in the premium was much less than what the township had anticipated it would be. d. Reimbursement included Blue Cross /Blue Shield Major Medical premiums paid by the township for Joseph Perino. 112. Salem Township Supervisors held at least two public meetings per month. a. Meetings were held both during the day and evening hours. b. Daytime meetings started at 8:15, 9:00 or 9:30 a.m. while evening meetings started at 7:00 p.m. Perino, 93- 040 -C2 Page 25 c. Meeting start times are recorded. Finishing times are not listed. 113. Perino attended the following Salem Township Supervisor's meetings held during daylight hours: 01/06/92 01/04/93 02/10/92 01/11/93 03/10/92 02/10/93 04/10/92 02/26/93 (8:15 a.m.) 04/27/92 (9:00 a.m.) 03/10/93 05/11/92 04/08/93 06/10/92 05/10/93 07/10/92 06/10/93 08/10/92 07/09/93 09/10/92 08/10/93 10/09/92 10/08/93 11/10/92 11/25/92 (9:00 a.m.) 12/10/92 12/23/92 114. Salem Township Supervisors held 27 meetings during normal road department hours between January 6, 1992, and October 8, 1993. a. Perino attended 26 of the 27 meetings held. b. Perino was compensated at a rate of $103.00 a day/$12.875 hr. during 1992. c. Perino was compensated at a rate of $108.00 a day /$13.50 hr. during 1993. 115. Perino attended fifteen daytime meetings during 1992. 116. Perino attended eleven daytime supervisor's meetings during 1993. 117. On January 26, 1990, Slickville Ambulance Service, Inc., entered into a Listing Contract with Coldwell Banker Real Estate Agent, Beverly Markland, to sell the Slickville Ambulance Property. a. Slickville Ambulance was represented by Charles Kravetsky. 118. On January 28, 1991, Slickville Ambulance Service, Inc., represented by Charles Kravetsky, signed an Articles of Agreement with Anthony and Deborah Perino for the purchase of the Slickville Ambulance Property. Perino, 93- 040 -C2 Page 26 a. The agreed upon sale price was $23,000.00. b. An addendum to the Articles outlined additional details of the sale. 119. Also signed on January 28, 1991, by Slickville Ambulance Service, Inc., and the Perino's was a "Lease with Option to Purchase Agreement." a. The Perino's paid a monthly lease amount which was applied to the sale price. b. If the Perino's defaulted or cancelled the lease, they forfeited any claim to the property or the monies they had already paid. 120. Slickville Ambulance Service, Inc., incorporated as a non- profit corporation on August 18, 1970, for the purpose of providing emergency medical services. a. The original address was RD #4, Greensburg, Westmoreland County, PA. 121. On March 3, 1981, Slickville Ambulance Service, Inc., purchased a piece of property for the consideration of $1.00, located on the corner of U.S. Route 22 and Quary Road, Salem Township, Westmoreland County (hereinafter referred to as the Slickville Ambulance Property). a. A concrete block building was located on the property. b. The property had been used as a gasoline service station. 122. On July 27, 1989, Slickville Ambulance Service, Inc., entered into a Cooperative Agreement with Lifestat Ambulance Service, Inc. a. Lifestat assumed the liabilities of Slickville Ambulance including the mortgage on land and buildings and outstanding vehicle loans. b. Lifestat assumed the ongoing costs of all Slickville equipment including insurance, maintenance and repair. 123. The Articles of Agreement and Addendum outlined the following requirements on the part of the Perinos: a. They were responsible for all taxes that may be levied upon the land "from and after" the date of the agreement; b. pay the agreed upon amount of $23,000.00; Perino, 93- 040 -C2 Page 27 c. default of payment of the principal or interest or taxes for a period of 60 days would result in the entire principal, interest and costs becoming due. 124. The terms of the lease outlined in the Addendum are in part as follows: a. Monthly lease payment of $425.00. b. Term - 62 months (5 years and 2 months). c. Credit toward principal - $15,945.43, plus payment of balance in whole $7,054.57, or in monthly payments with interest. d. Leasing costs to be divided between the buyer and seller. e. Seller to maintain adequate insurance on the building. f. Improvements are at the cost of the lessee ( Perinos). 125. The deed for the property remained in the name of Slickville Ambulance Service, Inc., from January 28, 1991, through May 23, 1994, at which time the Pennsylvania Department of Transportation filed a Notice of Condemnation. a. The Notice of Condemnation was pursuant to the Department of Transportation reaching an agreement with Slickville Ambulance Service, Inc. representative Charles Kravetsky, on a price for the property ($29,200.00). b. The Schedule of Property lists Slickville Ambulance Service, Inc. as the record owner and the Perinos as purchasers under an Article of Agreement. 126. Conditions of the Articles of Agreement required that the Perinos were responsible for paying all taxes applicable to the Slickville Ambulance Property from the date of the agreement, January 28, 1991. a. Slickville Ambulance Service, Inc., had applied for and received tax exempt status with Westmoreland County on 06/16/81. 127. Perino did not list Slickville Ambulance Inc. as a creditor on her Statement of Financial Interests form for calendar years 1991, 1992, and 1993. 128. Perino entered into a Land Sale Agreement on January 28, 1991, with Slickville Ambulance Inc. Terms of the Agreement include a purchase price of $23,000.00. Perino, 93- 040 -C2 Page 28 129. Perino paid $425.00 a month against the $23,000.00 purchase price. 130. Perino had an unpaid balance in excess of $5,000.00 during calendar years 1991, 1992 and 1993. 131. The $35.00 guest registration fee and $90.00 room deposit as to the attendance by Perino at the 1992 PSATS Convention are stipulated as no longer in issue. 132. As to the allegation that Perino violated Section 5(b) (5) of the Ethics Law by failing to disclose sources of income on her 1991 calendar year Financial Interests Statement (FIS), it is stipulated that no further action is taken on that charge. a. Perino filed an amended FIS dated 9/02/93 which listed Ted McWilliams, Inc. as a source of income. C. TESTIMONY: 133. Sara Ott was the Salem Township secretary /treasurer from 1971 to December, 1993. a. The duties of the secretary /treasurer are to keep the treasurer's book, maintain records and payroll sheets. (1) Nancy Shusko shared the responsibility of the payroll records with Ott. b. Payroll was done for all township employees including the supervisors. (1) From the time cards, taxes are determined and the payroll checks are prepared. c. For time cards, a " -" means no pay for the day, "D" means a day's wages and "V" means a vacation day." d. Roadworkers are paid on an hourly basis whereas roadmasters are paid on a daily basis. e. Perino on 12/19/92 received a paid vacation day. (1) 12/19/92 was a Saturday. f. For 12/30 and 12/31/92, Perino received both a paid vacation and a paid workday for each of those two days. g. A "V" and "D" in the same payroll block means a township employee was doubly paid for that day. Perino, 93- 040 -C2 Page 29 h. The Salem Township minutes reflect the date, start time and attendance but not the length of the meetings. q. J. • (1) An average meeting could last five minutes to an hour. i. The supervisor /roadmasters would start working hours around 7:00 to 7:30 a.m. (1) The supervisor /roadmasters would come off the roads to attend board meetings. Salem Township had Blue Cross (Blue Shield) (BC /BS) coverage to an extent for employees and their dependents. k. For township payroll records, a "P /H" signifies a paid holiday. 1. If an employee were called in from an off day to work, the number listed on the leave card would reflect the number of hours worked. m. Ott had discretion in purchasing a small amount of office supplies. n. It was the practice of the Salem Township Supervisors/ roadmasters to use vacation days on weekends. o. Ott is unaware of any conditions that the auditors imposed as to the usage of sick or vacation days. p. According to Ott, the submission by Perino of a certificate of attendance for a convention entitles Perino to receive $35.00 plus mileage. When the township purchased items from Deb -Tone Printing, no competitive pricing was involved. (1) Deb -Tone Printing was convenient, being a few minutes distance from the township. (2) Salem Township made purchases from Deb -Tone before Perino became a supervisor. 134. Nancy Shusko is the secretary /treasurer of Salem Township. a. Shusko started employment in 1979 as a township clerk. b. The minutes book of Salem Township for 1990 through April 1995 was reviewed by Shusko. Perino, 93- 040 -C2 Page 30 c. As to the time cards of supervisors and roadmasters, a "D" indicates a work day and a "V" means a vacation day. (1) A " -" means nothing occurred on that day. d. In general, the work time for a roadmaster was 7:00 to 3:30 but 6:00 to 2:30 during the summer. e. Normal work days in Salem Township were Monday through Friday. g. 7 (1) The minutes reflect no authorization for Perino to attend a 01/25/92 and 02/15/92 DCA workshop. (1) Saturday and Sunday were not normal work days unless there were storms, snows, ice or downed trees. (a) The payroll would reflect a day or number of hours. f. For payroll records in the township, "P /H" designates a paid holiday. Shusko became Salem Township secretary in 1994. h. As to BC /BS, the duty of the township was to pay the bills. (1) New township employees were given cards to fill out so that they would have coverage. (2) Any information from BC /BS would be sent to the township secretary who would disseminate that information to the employees. i. The township BC /BS group plan included employees, supervisors, secretaries and dependents. (1) Shusko believes that dependents are eligible until age 19 unless students in which case until age 23. (2) A township employee must fill out the card or submit a name for BC /BS coverage. Since 1979, supervisors would interchange sick and vacation days. (1) Supervisors would take all sick and vacation days by the end of a year. Perino, 93- 040 -C2 Page 31 (a) Sometimes supervisors would take vacation days on weekends. (b) Supervisors near year's end would take both a work and vacation day for the same day. (c) Such practice stopped in 1994 when the auditors changed the policy. k. Although the January and February 1992 supervisor board minutes do not contain any authorization for attendance at a government training session, the minutes reflect payment for the registrations for such sessions. 1. Morning township meetings of the board of supervisors typically would last up to an hour. m. Shusko was a regular township employee who did not take vacation days on Saturday. (1) At one point Shusko did take vacation days on the same days which were working days. 135. Judy Walker is a supervisor at Blue Cross of Western Pennsylvania (BCWP). a. One of Walker's duties is to oversee membership areas. (1) That duty requires keeping track of payments and membership files. b. ID 32 -A is a copy of a contract between BCWP and Salem Township dated 11/27/78. (1) The contract was a basic community contract with coverage for the employee, spouse and dependent children under 19. (a) The new contract which was effective 11/93 did allow for dependent coverage. (2) Students could be included in the contract as independent subscribers. (a) Coverage could extend only to age 23. (b) As a community contract, it was the group responsibility to place the student on the agreement and to notify as to when to remove the student. Perino, 93- 040 -C2 Page 32 [1] The above was not reflected in writing in the 1978 contract. c. ID 32 -B is a BC /BS flier that was added to the township contract. (1) Because the contract did not indicate benefits for students until age 23, the flier was included. (a) The benefit was not available until it was provided in 1993. (b) The contract does not differentiate between an employee or student as to included individuals. [1] A covered individual is listed as a name but not a classification such as student. d. ID 32 -C is a brochure as to the benefits in the Blue Shield 100 Program (BSP). (1) Every subscriber with an identification card would receive the brochure along with the program group administrator. (2) Both Perino and her son Joseph, being on the policy, would have received brochures. e. ID 32 -D is a copy of a standard BC hospital coverage program. (1) Anyone on the contract with an identification card would receive the brochure. f. ID 32 -E is a flier that would be inserted into the township medical insurance booklet as to anyone who had coverage extended to 365 days. g. ID 32 -F is a regular subscription agreement detailing the policy and patient benefits. h. ID 32 -G is the major medical contract for the township. (1) Information is provided as to coverage under major medical and deductibles. (2) Everyone who has coverage and receives an identification card would get the brochure. i. ID 32 -H is the major medical contract for Salem Township Perino, 93- 040 -C2 Page 33 7 which went into effect on 11/01/93. (1) Under this policy, there was coverage for full -time students up to age 23. (a) If a person were not a full -time student, there would be no coverage unless under age 19. (b) This contract was the first time Salem Township listed the coverage as students rather than individuals. [1] Students were previously covered as individuals. In order for persons to receive coverage, they would have to qualify under the township rules for being placed on the policy. (1) The township would give notice to add persons for coverage. (2) Termination of coverage for an individual would be done on an invoice which would list the reason for canceling coverage. k. The insurance company would normally handle dependent termination for age because it would have that information. (1) Three months advance notice is given by the company with an offer for coverage on a direct pay basis. (2) The same procedure would occur under the new contract as to students reaching age 23. 1. Prior to 1993, students were not listed as students but as individuals for insurance coverage. (1) This was not in writing. (2) The insurance company needed to have the township notify them of elimination of coverage because the person was listed as a subscriber and not a student. m. ID -31 consists of a series of documents as to medical, dental and vision coverage. n. ID 33 -A is a printout on the status of one subscriber to Perino, 93- 040 -C2 Page 34 the township medical insurance, Joseph Perino. (1) Coverage was from 01/01/92 to 11/01/93 for major medical. o. ID -32B is a supplemental program for dental, drug and vision for Joseph Perino from 02/01/92 to 08/01/94. p. If a person who was ineligible remained on a policy, the company would continue coverage, unless the ineligibility were reported to the company. (1) No refund would be made for the ineligible period because the company would have been liable for any submitted claim. q As to ID 32 -A, page 10, coverage for Joseph Perino was not automatically terminated because he was listed as a subscriber and not as a child dependent. r. The group administrator's manual would describe the process for adding and removing people from the contract. 136. Frank Pavlovich has been a Salem Township Supervisor for the last eighteen years. a. Pavlovich has always served as a roadmaster. b. Prior to 1994, supervisors sometimes took vacation days on Saturdays and Sundays. (1) This practice continued back to at least 1964. (2) Pavlovich has taken vacation days on Saturdays/ Sundays. c. In the last eighteen years, Pavlovich may have taken 4 to 6 sick days when he was not sick. d. Roadworkers and employees took vacation days on weekends back in the 1960's. e. In 1992/93, several supervisor board meetings occurred at approximately 9:00 a.m. (1) According to Pavlovich, normal working hours for a roadmaster were 7:00 to 3:30 which changed to 6:00 to 2:30 on June 1. (2) On average, morning meetings lasted 45 minutes. Perino, 93- 040 -C2 Page 35 f. Pavlovich might have taken a few days where he received vacation /work day pay for the same day. g. If it were necessary to work on a vacation day or holiday, the time cad would reflect the vacation or holiday, plus a number representing the hours that were worked. h. Since there was no policy to carry vacation days forward, the roadmasters took vacation on workdays or weekends. i. Sick days could not be accumulated until allowed in 1995. 137. Anthony M. Perino is the spouse of Debbie Perino. a. Deb -Tone Printing has been doing printing for the township since 1986 or 1987. (1) Perino took office in 01/92. (2) Sara Ott, the township secretary, placed the printing orders with Deb -Tone. b. Deb -Tone did printing work for Anthony Garofola, the tax collector. (1) Garofola placed his own printing orders. c. Anthony Perino stopped doing printing work for Salem Township because he is not interested in doing such work. d. Perino's function at Deb -Tone is clerical paperwork and bill paying. e. ID -17 reflects Deb -Tone invoices for Salem Township and the tax collector. f. Anthony Perino had an agreement as to the Slickville Ambulance Property in 01/91. (1) When PennDOT started condemnation proceedings, Anthony Perino entered his name to the action as an interested party. 138. Deborah K. Perino (Perino) has been a Salem Township Supervisor since 1/92. a. As a roadmaster, Perino meets with the township crew, does scheduling, runs equipment, and oversees operations. b. When Perino became a roadmaster, the other roadmasters, Perino, 93- 040 -C2 Page 36 Sara Ott and Nancy Shusko gave Perino information as to the daily procedures in the township. c. Perino asked Supervisors Mazzoni and Pavlovich to do the authorizations for services of Deb -Tone if they wanted such services. d. The tax collector submitted his printing bills from Deb - Tone to the township since the township is obligated to pay a portion of the costs to the tax collector. (1) As to Exhibit 43, page 3, Perino states that no tax collector nor township purchase from Deb -Tone exceeded $500.00. e. Perino did sign certain township checks that were issued to Deb -Tone. (1) Two signatures were required but if any supervisors were there, all supervisors and a secretary signed the checks. (2) Perino admits she signed four checks to Deb -Tone. f. Perino and the other supervisors attended PSATS and county conventions in 1992, 1993 and 1994. g- (2) Perino received dual compensation for certain days in 12/92 and 12/93 for which she also took vacation days. (a) This was the practice of the current and prior supervisors. h. After the auditors in 1994 issued a stop letter as to sick /vacation day usage, Perino only used sick /vacation days for those purposes. 7 (1) Resolution 138 of Salem Township related to attendance at conventions /schools. Perino used vacation days on weekends in 1992 and 1993. (1) The roadmasters used sick days first, then took vacation days on Saturdays, Sundays or at the end of the year. i. Perino used sick days to go on a 1992 December Rec Board trip. Sick days were used by Perino for a South Carolina Perino, 93- 040 -C2 Page 37 k. Exhibit 31, pg. 1 is a BC registration document completed in part by Perino. P. vacation in 1993. (1) Perino applied for township medical coverage for herself, her husband and her son sometime after January 5, 1992. (a) Perino's son received township paid BC /BS insurance. (2) Perino states that she only received the identification cards from BC but not any booklets, pamphlets, procedural listings or agreements. 1. Perino states that she is unaware of a requirement that the township notify BC /BS of status changes. m. Scheduled daytime supervisor meetings were attended by Perino for which she received a normal wage. (1) The practice of daytime meetings has now been discontinued. (a) Perino states that the daytime meetings lasted anywhere from 5 minutes to 2.5 hours. (b) Perino testified that daytime meetings averaged 15 to 20 minutes. n. Supervisors, other than Perino, took vacation and regular compensation on the same dates. (1) A payroll sheet for 12/16/89 to 12/31/89 reflects that Supervisors Trombetta and Pavlovich took a regular workday and vacation day on 12/29/89. o. The reorganizational meetings of supervisors is the time whenever attendance at conventions might be authorized. For the 1992, 1993 and 1994 county conventions, Perino received a paid day vacation in 1994 and paid workdays in 1992 and 1993. (1) Perino also received $35.00 for attending the meetings. (2) Perino was compensated twice for her attendance at those meetings. Perino, 93- 040 -C2 Page 38 q. D. DOCUMENTS: For payroll, Perino submitted a time card and signed each payroll sheet. 139. Exhibit 9 consists of copies of Salem Township checks issued to Deb -Tone Printing. Date Amount Perino as Co- endorser 01/16/92 $104.40 No 03/19/92 $120.00 No 04/16/92 $147.56 Yes 06/18/92 $ 42.00 No 10/20/92 $ 10.00 Yes 12/17/92 $ 93.00 No 12/17/92 $ 5.00 No 01/19/93 $ 25.00 No 02/18/93 $ 40.00 Yes 03/18/93 $100.00 Yes 04/15/93 $ 20.00 No 140. Exhibit 10 consists of Salem Township bi- weekly payroll report and related documents. a. Perino received paid vacation days for the following Saturdays or Sundays among others during 1992 and 1993: Date Gross Amount per Day Saturday, January 11, 1992 $103.00 Sunday, January 12, 1992 $103.00 Saturday, February 22, 1992 $103.00 Saturday, February 29, 1992 $103.00 Saturday, March 7, 1992 $103.00 Saturday, April 4, 1992 $103.00 Saturday, April 25, 1992 $103.00 Saturday, May 9, 1992 $103.00 Saturday, May 16, 1992 $103.00 Saturday, May 23, 1992 $103.00 Saturday, June 6, 1992 $103.00 Saturday, June 20, 1992 $103.00 Saturday, June 11, 1992 $103.00 Saturday, August 8, 1992 $103.00 Saturday, August 22, 1992 $103.00 Saturday, November 7, 1992 $103.00 Saturday, November 21, 1992 $103.00 Saturday, December 19, 1992 $103.00 Saturday, January 2, 1993 Saturday, January 16, 1993 Saturday, May 1, 1993 $108.00 $108.00 $108.00 Perino, 93- 040 -C2 Page 39 Saturday, September 18, 1993 Saturday, September 25, 1993 Saturday, October 2, 1993 Saturday, October 16, 1993 Saturday, October 23, 1993 Saturday, November 6, 1993 Saturday, November 13, 1993 Saturday, November 20, 1993 Saturday, December 4, 1993 Sunday, December 5, 1993 Saturday, December 11, 1993 Sunday, December 12, 1993 Saturday, December 18, 1993 b. Perino received paid sick days on the following days: Date Thursday, September 24, 1992 Friday, September 25, 1992 Thursday, September 2, 1993 Friday, September 3, 1993 Tuesday, September 7, 1993 Wednesday, September 8, 1993 Thursday, September 9, 1993 Friday, September 10, 1993 Monday, September 13, 1993 c. Perino received paid work days the following identical dates: Date Wednesday, December 30, 1992 Thursday, December 31, 1992 Wednesday, December 15, 1993 Thursday, December 16, 1993 Friday, December 17, 1993 Monday, December 20, 1993 and paid vacation days on Gross (Singular) $103.00 $103.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 Gross Amount per Day $103.00 $103.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 $108.00 Gross (Double) $206.00 $206.00 $216.00 $216.00 $216.00 $216.00 (1) The Board of Supervisors, of which Perino was a member, at the 1992, 1993 and 1994 reorganizational meetings, voted 3 -0 with Perino listed as voting yes, for payroll payments approved on the 5th and 20th of each month. (a) Check No. 8 of 1993 of Salem Township, with Perino as one of the three co- endorsers, is a check in the amount of $1,238.33 which includes in part the double payment for 12/30 and 12/31/92. (b) Check No. 166 of 1993 of Salem Township, with Perino, 93- 040 -C2 Page 40 Perino as one of the three co- endorsers, is a check in the amount of $1,282.55 which includes in part the double payment for 12/15/93. (c) Check No. 7 of 1994 of Salem Township, with Perino as one of the three co- endorsers, is a check in the amount of $1,491.07 which includes in part the double payment for 12/16, 12/17 and 12/20/93. 141. Exhibit 11 consists of minutes of the Salem Township Board of Supervisors for the period 1/06/92 to 5/19/94. a. 1/06/92 -- (1) Perino appointed as roadmaster (2) Motion by Mazzoni, second by Perino for entire board to attend 1992 state convention. Motion carried by 3 -0 vote with Perino voting yes. b. 1/16/92 -- Motion by Mazzoni, second by Perino to approve expenditures for 1/92. Motion carried by 3 -0 vote with Perino voting yes. c. 2/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. d. 3/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. e. 3/19/92 -- (1) Motion by Mazzoni, second by Perino to approve expenditures for month of 3/92. Motion carried by 3 -0 vote with Perino voting yes. (2) Motion by Mazzoni, second by Perino to advance $300.00 to Mazzoni and Perino for state convention on 4/5, 4/6, 4/7 and 4/8 at Hershey, Pennsylvania. Motion carried by 3 -0 vote with Perino voting yes. f. A special meeting of the board was held which commenced at 9:30 a.m. g. 4/16/92 -- Motion by Perino, second by Mazzoni to approve expenditures for the month of 4/92. Motion carried by 3- 0 vote with Perino voting yes. h. 4/27/92 -- A special meeting of the board was held which Perino, 93- 040 -C2 Page 41 commenced at 9:00 a.m. i. 5/11/92 -- A special meeting of the board was held which commenced at 9:30 a.m. J. 6/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. k. 6/18/92 -- Motion by Perino, second by Mazzoni to approve expenditures for the month of 6/92. Motion carried by 3- 0 vote with Perino voting yes. 1. 7/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. m. 8/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. n. 9/10/92 -- q. (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Motion by Mazzoni, second by Pavlovich to sign agreement with BCWP and Pa. BS and Salem Township for the period 11/1/92 to 10/31/93 and agreement as to BC prescription drug coverage. Motion carried 2 -0 by vote of Mazzoni and Pavlovich. Perino listed as being present. o. 10/09/92 -- A special meeting of the board was held which commenced at 9:30 a.m. p. 11/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. 11/19/92 -- Motion by Perino, second by Mazzoni to approve expenditures for the month of 11/92. Motion carried by 3 -0 vote with Perino voting yes. r. 11/25/92 -- A special meeting of the board was held which commenced at 9:00 a.m. s. 12/10/92 -- A special meeting of the board was held which commenced at 9:30 a.m. t. 12/17/92 -- Motion by Mazzoni, second by Perino to approve expenditures for the month of 12/92. Motion carried by 3-0 vote with Perino voting yes. u. A special meeting of the board was held which commenced Perino, 93- 040 -C2 Page 42 at 9:30 a.m. v. 1/4/93 -- (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Perino is appointed roadmaster. (3) Motion by Mazzoni, second by Pavlovich for the entire board to attend the 1993 convention. Motion carried 3 -0 vote with Perino voting yes. w. 1/11/93 -- A special meeting of the board was held which commenced at 9:30 a.m. x. 1/21/93 -- Motion by Mazzoni, second by Pavlovich to approve expenditures for the month of 1/93. Motion carried by 3 -0 vote with Perino voting yes. y. 2/10/93 -- A special meeting of the board was held which commenced at 9:30 a.m. z. 2/26/93 -- A special meeting of the board was held which commenced at 8:15 a.m. aa. 3/10/93 -- A special meeting of the board was held which commenced at 9:30 a.m. bb. 3/18/93 -- Motion by Mazzoni, second by Pavlovich to approve expenditures for the month of 3/93. Motion carried by 3 -0 vote with Perino voting yes. cc. 4/8/93 -- (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Motion by Pavlovich, second by Perino to ratify advance of $300.00 to Mazzoni and Perino on 4/02/93 for state convention on 4/05/93, 4/06/93, and 4/07/93 at Hershey, Pa. Motion carried by 3 -0 vote with Perino voting yes. dd. 4/15/93 -- Motion by Mazzoni, second by Perino to approve expenditures for month of 4/93. Motion carried by 3 -0 vote with Perino voting yes. ee. 5/10/93 -- A special meeting of the board was held which commenced at 9:30 a.m. Perino, 93- 040 -C2 Page 43 ff. 6/10/93 -- A special meeting of the board was held which commenced at 9:30 a.m. gg• 7/09/93 (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Ed Gieselman questioned the board concerning usage and record keeping as to roadmasters working hours, vacation, sick and personal days. The response was 21 vacation, 21 sick and no personal days. (3) A discussion occurred between Gieselman and Perino relative to her FIS as to the Slickville Ambulance Building, Deb -Tone Printing creditors and permits. hh. 8/10/93 -- ]] (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Gieselman makes inquiries as to Slickville Ambulance, closed meetings, the need for Perino to abstain as to litigation, certain possible omissions in the prior meeting minutes. Henderson seeks an explanation as to roadmasters pay, duties and responsibilities. ii. 9/10/93 -- A special meeting of the board was held which commenced at 9:30 a.m. 10/08/93 -- (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Motion by Mazzoni, second by Pavlovich to sign agreement between BCWP and Salem Township for group coverage for next 12 months to provide medical coverage and to sign agreements with BC prescription drug coverage for next 12 months. Motion carried 3 -0 with Perino voting yes. kk. 1/03/94 -- (1) A special meeting of the board was held which commenced at 9:30 a.m. (2) Perino is appointed roadmaster. Perino, 93- 040 -C2 Page 44 (3) Motion by Perino, second by Mazzoni for entire board to attend 1994 state convention. Motion carried 3 -0 with Perino voting yes. 11. 5/19/94 -- Motion by Perino, second by Pavlovich to approve expenditures for month of 5/94. Motion carried by 3 -0 vote with Perino voting yes. 142. Exhibit 12 consists of the minutes of the Salem Township Board of Auditors for the 1991, 1992, 1993 and 1994 reorganizational meetings. a. 1/08/91 -- (1) Motion to raise daily wage of roadmaster by $3.00 to a total of $103.00 and raise the truck allowance by $2.00 to $14.00 per day. Motion carried. (2) Benefits, other than for retirees, same as previous year. Motion carried. b. 1/07/92 -- Motion carried to maintain the wages the same as for the year 1991. Motion carried. c. 1/05/93 -- (1) Motion to raise the "Supervisors" daily wages by $5.00. Motion carried. (2) Motion to approve all benefits. Motion carried. d. 1/13/94 -- (1) Motion to keep same number of sick (21), vacation (21) and paid holidays (15) . (2) Notation that auditors typed a letter to Salem Township Supervisors outlining that vacation and sick days be taken on weekdays and not on weekends effective 2/28/94. 143. Exhibit 13 consists of minutes of the Salem Township Recreation Board and other documents. a. Item 7 of the minutes is a report on a Harrisburg - Atlantic City trip which references the roster of the township residents who went on the trip. (1) Perino's name is listed on the roster. 144. Exhibit 14 is a copy of Salem Township Resolution 138 of Perino, 93- 040 -C2 Page 45 4/11/88. a. The Resolution allows for a supervisor to receive, for attending institutes, conferences or schools, relative to elected township official functions and duties, actual expenses limited to the registration fee, mileage of 20.5 per mile for personal vehicle use to and return, food and lodging at a single person rate with "any Township employee" authorized to attend to be compensated at their regular employee rate during attendance at said meeting but for a time not to exceed eight hours. b. Attendance at county association meetings entitles the receipt of the following expenses for the supervisor: actual registration fee, mileage of 20.5=; per mile for personal vehicle use to and from the meeting, actual expenses limited to food and lodging expense for a single person rate and "a Township employee" authorized to attend, entitlement to receive regular employee rate during attendance not to exceed eight hours for any one day while attending. c. Attendance at the annual state convention entitles the authorized delegate to receive: the actual registration fee plus 20.5 per mile for personal vehicle use to and from the convention, actual expenses limited to food and lodging based upon a single person rate with "an Township Employee" authorized to attend being compensated at their regular employee rate of pay for attendance not to exceed eight hours per day. d. Limitations on such attendance includes expenses for not more than four days including traveling time and reimbursement limited to filing an itemized expense voucher with the township. 145. Exhibit 17 consists of invoices issued from Deb -Tone Printing to Salem Township. Date 02/04/92 $120.00 12/26/91 $121.00 (Prior to Perino's service as a supervisor) Amount Notation Issued to tax collector with statement that school and Twp. each pay $60.50. 01/15/92 $ 43.90 subtotal listing Perino, 93- 040 -C2 Page 46 03/12/92 $126.56 Issued to tax collector with statement for Twp. to pay 03/18/92 $ 21.00 06/11/92 $ 42.00 subtotal listing 09/25/92 $ 10.00 Issued to tax collector with statement for Twp. to pay 12/92 $186.00 Issued to tax collector - Twp. payment $93.00 School payment $93.00 12/03/92 12/29/92 01/22/93 03/01/93 $ 5.00 $ 50.00 $ 40.00 $100.00 Issued to tax collector - School payment $25.00 - Twp. pay $25.00 Issued to tax collector with statement for twp. to pay 03/18/93 $ 20.00 Issued to tax collector with statement for twp. to pay 146. Exhibits 18 and 19 consist of groups of documents relative to the attendance by Perino at the 1992, 1993 and 1994 PSATS conventions. 147. Exhibit 20 consists of certificates of attendance for Perino as to 1992, 1993, 1994 conventions of township officers. 148. Exhibit 21 reflects in part compensation received on a monthly basis by Perino in 1992 for meetings of the Board of Supervisors. a. For the months January, 1992 through December, 1992, Perino, 93- 040 -C2 Page 47 excluding May, June and July, Perino received monthly gross amounts of $166.67 and net amounts as follows: (1) For the month of January, 1992 through April, 1992, the net amount is $143.08. (2) For the month of May, 1992, the net amount is $142.68. (3) For the month of June, 1992, the net amount is $143.00. (4) For the month of July, 1992, through December, 1992, the net amount is $143.50. 149. Exhibit 22 consists of a statement for Perino's attendance at DCA workshops on 1/25/92 and 2/15/92 together with two receipts. a. The computation reflects two days of compensation at 7.5 hours per day. (1) The payment per 7.5 hour day is $96.60. (2) The gross for two days ($193.20) is reduced by withholding of $22.70 to a net of $170.50. b. Lunches and mileage for the two days is reflected at a total of $20.59. c. The submitted amount is $191.09 consisting of a net as to compensation of $170.50 plus lunch and mileage of $20.59. 150. Exhibit 24 consists inter alia of an Article of Agreement dated 1/28/91 between Slickville Ambulance, Inc. and Anthony M. and Deborah K. Perino for the sale to the Perinos of property for $23,000.00 described in Deed Book 2380 at page 486 and located at the intersection of US Route 22 and township route 950 on the south side of Route 22; and a lease with an Option to Purchase Agreement of said property dated 1/28/91 between the Slickville Ambulance Service, Inc. as Lessor and Anthony M. and Deborah K. Perino as Lessee. a. An Addendum to the Article of Agreement reflects a monthly lease payment of $425.00 for 62 months with a credit toward principal of $15,945.43 and a balance payment of $7,054.57 (principal). b. The Article of Agreement contains a standard acceleration clause as to the full balance becoming due in the event of a default. Perino, 93- 040 -C2 Page 48 c. Slickville Ambulance, Inc. was a creditor of Anthony M. Perino and Perino. 151. Exhibit 25 is documents consisting of a Indenture dated 3/03/81 conveying property referenced in Exhibit 24 from Adrienne R. Riethmiller to the Slickville Ambulance Service, Inc. as appearing in Deed Book 2380 at p. 479; and a Notice of Condemnation filed at 3917, 1994 in the Court of Common Pleas of Westmoreland County with a Schedule of Property Condemned listing Anthony M. Perino and Deborah K. Perino as record owners. 152. Exhibit 27 is a letter dated 2/28/94 from Salem Township Auditors to Frank Pavlovich, Chairman of the Salem Township Board of Supervisors which states in part: Please be advised that the practice of scheduling vacation days on weekends is not permissible and goes against the intent of the vacation policy. This practice is to stop immediately. All vacation days are to be scheduled Monday through Friday. No vacation days are to be scheduled on weekdays when a holiday falls on that day. Also, vacation days shall not be scheduled in conjunction with other legitimate reimbursable days such as bereavement or sick days. As a point of clarification, sick days are to be used only when the employee is sick and not to supplement vacation and other time off. 153. Exhibit 28 is a memo from the law firm of Loughran, Mlakar & Bilik to the Salem Township Supervisors dated 11/18/93. 154. Exhibit 30 is a statement from Westmoreland County Community College dated 4/10/95 that Joseph J. Perino was a full -time student from Spring, 1991 through the Fall, 1993. 155. Exhibit 31 is a group of documents relative to coverage of medical benefits to Joseph J. Perino. a. A supplemental coverage information card is signed by Joseph J. Perino on 1/07/92 to include Joseph J. Perino for township paid coverage. (1) The card reflects the birth date of Joseph J. Perino as 12/15/69. (2) In the box for "Date Employed" and "Name of Employing Company," the notation of "Full time student" appears. Perino, 93- 040 -C2 Page 49 b. A letter dated 11/17/93 from the Secretary for the Salem Township board requests coverage for full -time students who are listed. (1) The list includes Joseph Perino. 156. Exhibit 32A is an agreement between Salem Township and Pa. BS dated 11/27/78. a. Exhibit 32B is an endorsement to the subscription agreement that provides student coverage up to age 23. b. III. DISCUSSION: 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 effective date of Act 9 (June 26, 1989), we must apply provisions of Act 9 to determine whether the Ethics Act violated. and BCWP standard dependent Exhibit 32H is the Major Medical Contract between the Salem Township Board of Supervisors and BCWP and Pa. BS effective 11/01/93. 157. Exhibit 33A reflects a cancellation of BC /BS major medical for Joseph J. Perino on 11/01/93 under the Salem Township policy. a. Exhibit 33B reflects a cancellation of dental /drug /vision coverage for Joseph J. Perino on 8/01/94 under the Salem Township policy. As a Supervisor for Salem Township, Westmoreland County, Deborah K. Perino, hereinafter Perino, is a public official as that term is defined under Act 9 of 1989. 65 P.S. §402. As such, her conduct is subject to the provisions of the Ethics Law and the restrictions therein are applicable to her. Initially, it is noted that Section 9 of Act 9 of June 26, 1989 provides, in part, as follows: the the was Perino, 93- 040 -C2 Page 50 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 term "conflict of interest" is defined under Act 9 of 1989 as follows: Section 2. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member or his immediate family or a business with which he or a member of his immediate family is associated. 65 P.S. §402. In addition, Section 3(f) of Act 9 of 1989 specifically provides in part that no public official /employee or spouse or child or business with which he or the spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. Section 5(b) of Act 9 of 1989 requires that every public official /employee and candidate list the name and address of any direct or indirect source of income totalling in the aggregate of $1,000 or more. We will now consider the following allegations against Perino seriatim as they appear above: the receipt of compensation as roadmaster without performing associated duties; excessive reimbursement as to expenses incurred for attending a 1992 convention; the contracting of Deb -Tone with the township without an open and public process; the failure to list sources of income on the 1991 calendar year FIS; the continuation of township paid Perino, 93- 040 -C2 Page 51 health insurance premiums for an ineligible son; the receipt of vacation pay and work pay for the same days; failing to list creditors on FIS's for calendar years 1991, 1992, 1993; and the receipt of roadmaster compensation and supervisor board meeting pay for board meetings held during roadmaster working hours. Initially, we shall merely highlight the Fact Findings in separate groupings so as to correlate them with the order of the allegations. Preliminarily, Perino has been a Supervisor in Salem Township, Westmoreland County, since January, 1992. In a private capacity, Perino is part owner of a business known as Deb -Tone Printing which began doing business with Salem Township before Perino became a supervisor and continued to provide such services until April, 1993. During the reorganizational meetings of the Township Board of Supervisors in 1992, 1993 and 1994, the Board authorized the attendance of Perino and others at the "annual conventions" (Fact Finding 9). In addition, Salem Township Resolution 138 of April 11, 1988, purports to authorize in part reimbursement for actual expenses for township supervisors attending annual state conventions as well as wages to be paid at the regular rate not to exceed eight hours per day for four days (Fact Findings 10, 144). In 1992, 1993 and 1994 Perino did attend both the Pennsylvania State Association of Township Supervisors (PSATS) and annual county conventions (Fact Findings 8, 27 -32). For the conventions attended, Perino received in some cases certain expense reimbursements as well as daily roadmaster wages, recorded as work days or vacation. As to the 1992 County Convention, Perino did receive, in addition to the daily wage and $35.00 for attendance, expenses of $5.50 for mileage as well as a truck allowance of $14.00 (Fact Findings 27, 92). On January 25 and February 15, 1992, Perino also attended workshops of the Department of Community Affairs (DCA). Although both of these sessions were held on Saturdays, Perino received roadmaster's wages and expenses for both days (Fact Finding 95). Turning to the facts involving the services that Deb -Tone performed for Salem Township, Deb -Tone began providing printing services to the township before the election of Perino as a supervisor and continued doing so until April, 1993. Perino advised the other two supervisors that any utilization of Deb -Tone services would have to be through their authorization alone (Fact Finding 38c). Deb -Tone did complete a number of printing jobs for Salem Township varying in expense from $5.00 to $186.00. Although no particular invoice exceeded the $500.00 contracting threshold of Section 3(f) of Act 9 of 1989, the sum total of all invoices Perino, 93- 040 -C2 Page 52 exceeded $500.00 in 1992 (Fact Finding 145). Perino participated in the bill approval process as to Deb -Tone and in some cases co- endorsed the township checks made payable to Deb -Tone (Fact Findings 5 -7). Parenthetically, certain invoices were issued to the tax collector for printing expenses as to which both the township and the school district were responsible. Salem Township ceased utilizing the services of Deb -Tone Printing after April, 1993 because Perino's husband Anthony stopped doing business with the township. The next factual matter relates to Perino's 1991 calendar year FIS wherein she did not list Ted Williams, Inc. as a source of income (Fact Finding 65). Subsequently, Perino filed an amended FIS for calendar year 1991 on September 2, 1993 specifically listing Ted Williams, Inc. as a source of income for the 1991 calendar year (Fact Finding 67). Another factual area relates to township paid medical benefits for Perino's son. Shortly after Perino took office in January, 1992, she arranged to have herself, her husband and her son Joseph placed on the township paid medical insurance policies (Fact Finding 138k). The Salem Township medical insurance contract provided for inclusion as to employees, spouses and dependent children under 19. If a dependent were a full -time student, coverage was extended to age 23 (Fact Finding 135). The medical insurance provider sent various booklets or pamphlets describing the extent of coverage; however, Perino asserts that she never received such information. Under the 11/27/78 contract between the township and medical insurance company, there was no way for the medical insurance carrier to know that Perino's son was a student because persons covered were merely listed as individuals without any delineation as to status. It was not until the 1993 contract that persons were actually classified, as for example student, rather than merely listed as an individual. Because the medical insurance company would not know under the pre -1993 policy when to terminate coverage for students at age 23, it was incumbent upon the township to notify the company (Fact Finding 135 1). Since Joseph Perino's birthdate is December 15, 1969, he attained the age of 23 on December 15, 1992. However, Perino's coverage of Joseph continued even after he became ineligible (Fact Finding 110). The amount of insurance premiums that the township paid for Joseph Perino after he attained the age of 23 amounted to $2,109.80 for medical and $450.24 for dental /vision /prescription for a total of $2,560.04 (Fact Finding 110). As to the facts relating to Perino's service as a roadmaster, the record reflects various instances where Perino received double compensation for a work day and also a vacation day for the same days. In addition, there were groups of days where Perino submitted and received compensation for sick days when she went on personal trips; in one instance, Perino went on a Rec Board trip to Perino, 93- 040 -C2 Page 53 Harrisburg /Atlantic City in 1992 and in another instance on a trip to South Carolina in 1993. There were also instances where Perino submitted and received paid vacation days for weekends, that is, on Saturdays or Sundays. The dates and the respective gross amounts of pay as to the paid vacation days on weekends, the paid sick days for personal trips and the doubly paid simultaneous vacation /work days are listed in Fact Finding 140. The record does reflect a practice by the Salem Township Supervisors for submitting and receiving double pay for work /vacation days on the same day, for using paid sick days when not sick and for receiving paid weekend vacation days. The practice apparently evolved due to the inability to carry over leave to subsequent years, that is, if certain leave were not taken by year's end, it would be lost. Therefore, at some point, the supervisors apparently started the leave usage practice so as to ensure that they would receive payment for such vacation /sick days. Regular township (non- supervisor) road workers were required to take vacation time as off time (Fact Finding 96). In 1994, the Township Board of Auditors wrote a letter to the supervisors indicating that their leave practices were not permissible and that vacation days had to be scheduled Monday through Friday, vacation days could not be scheduled for reimbursable days and sick days had to be used when an employee was sick (Fact Finding 152). Thereafter, the Salem Township supervisors discontinued their prior sick /vacation leave practices. The next factual area involves the listing by Perino of creditors on her 1991 through 1993 calendar year FIS's. In 1991, Perino and her husband entered into an agreement for the lease of, with an option to purchase, certain property owned by the Slickville Ambulance, Inc. The agreement provides for lease payments of $425.00 for 62 months with a certain credit payment toward principal and a balance payment of $7,054.57 in principal. The agreement also contains a standard acceleration clause whereby the full balance would become due if a default occurred as to any payment. If the Perinos cancelled the lease or defaulted, any claim to the property or monies paid by the Perinos would be forfeited (Fact Findings 119, 150). The last factual grouping concerns the practice in Salem Township of scheduling certain meetings of the Board of Supervisors during morning road working hours (Fact Finding 113, 114). When such morning meetings occurred, the supervisors who were appointed working roadmasters left their road work to attend the supervisor board meetings. Such meetings would start typically around 9:00 a.m. or 9:30 a.m. which overlapped the work hours of the roadmasters (Fact Findings 141, 58, 114). As township employees, the roadmasters were paid on a per diem basis (Fact Finding 142). As elected supervisors, they were paid for board meetings on a monthly basis (Fact Finding 148). This practice of scheduling Perino, 93- 040 -C2 Page 54 morning meetings was discontinued after the township solicitor advised that when morning meetings occurred during roadmaster working hours, the exact time should be kept and an amount deducted from the daily rate paid to the supervisor /roadmasters. In addition, the solicitor advised that meetings scheduled after the normal work day would not have to be offset against roadmaster wages (Fact Finding 59). Thereafter, the supervisors daytime meetings were changed to 3:30 to coincide with the normal finishing time for the township's road department (Fact Finding 60). As to the morning board meetings, the minutes of those meetings provide start times but no finish times. Meetings varied in length depending upon the number of items on the agenda and the complexity of issues. Although there was various testimony as to the length of these meetings, the testimony varied. The estimates of the duration of these meetings varied from 5 minutes to 2.5 hours (Fact Findings 133, 134, 136, 138). Before we apply the above facts to the allegations before us, we note that the Investigative Division did not develop and hence pursue the first allegation; in this regard we note that there are no facts as to compensation received by Perino as roadmaster in the context of her failing to perform duties related to that position. Second, the issue of excess reimbursement as to expense items for Perino's attendance at the 1992 PSATS convention is no longer in issue (Fact Finding 131). Finally, the allegation concerning Perino's 1991 calendar year FIS as to listing a source of income was stipulated as a "no further action" item (Fact Finding 132), apparently because Perino filed an amended FIS for 1991 correcting the deficiency. The remaining allegations for consideration pertain to excessive reimbursements as to expenses for a (the county) 1992 convention, Deb -Tone contracting, Perino's son's township paid health coverage, receipt of double wages for work /vacation days on the same days, the need to list a creditor on FIS's, and the receipt of meeting and roadmaster compensation for board meetings during regular roadmaster working hours. The first issue is whether Perino violated Section 3 (a) of Act 9 of 1989 as to the receipt of expense reimbursement for attending a 1992 convention in excess of expenses incurred. Since it has been stipulated that the expenses as to the 1992 PSATS Convention are no longer in issue, we must review the expenses for the 1992 County Convention. Perino received a payment of $35.00 for attendance and roadmaster wages. As to expenses, Perino received mileage of $5.50 plus a truck allowance of $14.00. Since there appears to be an overlapping of expenses, such would be unauthorized in law. However, given the small amount involved, we find such to be de minimis and therefore not violative of Section 3(a) of Act 9 of 1989. See Schweinsberq, Order 900. Perin °, 93- 040 -C2 Page 55 Regarding the issue of whether Perino violated Section 3(f) of Act 9 of 1989, the contracting provision, we must determine whether an open and public process was required as to the contracting between Deb -Tone and Salem Township. Deb -Tone is a business with which Perino is associated. The term business with which associated is defined under Act 9 of 1989 as follows: 65 P.S. §402. Section 2. Definitions "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. Given that Perino was the co -owner of Deb -Tone (Fact Finding 80), it is a business with which Perino is associated. All of the individual contracts between Deb -Tone and Salem Township were less than the $500.00 threshold requirement of Section 3(f) (Fact Findings 4, 139). Since there is no evidence of contract fragmentation, we find no violation of Section 3(f) of Act 9 of 1989. See Astolos, Order 741. Parenthetically, the Investigative Division does not seek a Section 3(f) violation as to such contracting between Deb -Tone and Salem Township but argues for a technical Section 3(a) violation based upon the activities by Perino as to the bill approval process. As to the business between Salem Township and Deb -Tone, there was no action or use of authority of office by Perino in the award of such contracts (Fact Finding 138c) . As to the Deb -Tone bill approval process, Perino did take certain action by signing four township checks issued to Deb -Tone (Fact Finding 138e). In addition, Perino voted to approve bills which included Deb -Tone Printing. On October 15, 1993, Perino cast the deciding vote to approve bills which included a Deb -Tone invoice in the amount of $20.00 (Fact Finding 6). Perino participated in approximately nine meetings of Salem Township to approve bills which included payments to Deb -Tone Printing (Fact Finding 7). Therefore, there was a use of authority of office on the part of Perino in voting to approve bills which included Deb -Tone invoices and in co- endorsing certain checks to Deb -Tone. Perino's use of authority of office resulted in a private pecuniary benefit consisting of the contracts and contract payments to Deb-Tone, which is a business with which Perino is associated. On that basis we find a technical violation of Section 3(a) of Act 9 of 1989. See Jelliff, Order 855. The next issue before us concerns the receipt of township paid health insurance benefits for Perino's son Joseph, who was a full - time college student. As noted, shortly after Perino became a Perino, 93- 040 -C2 Page 56 supervisor in January of 1992, she took action to include herself, her husband and her son Joseph for township paid medical insurance benefits. Since Joseph was a full -time student, he was entitled to those benefits until he attained the age of 23 on December 15, 1992. However, Joseph Perino continued to receive those benefits after he was no longer eligible (Fact Finding 110). The premiums that were paid by Salem Township on behalf of Joseph Perino for medical, dental, prescription and eye coverage, from the point in time after he attained age 23 until he was removed from the policy, totaled $2,560.04. Clearly the $2,560.04 in premiums paid by the township constituted a pecuniary benefit to Joseph Perino who is a member of Perino's immediate family. 65 P.S. §402. That pecuniary benefit was private as unauthorized in that Joseph Perino was not entitled to township paid benefits after he became 23. The issue is whether Perino used the authority of office to obtain this private pecuniary benefit for her son. As to the health insurance coverage, we find no violation of Section 3(a) of Act 9 of 1989. Initially, it is true that there was a use of authority of office by Perino in January, 1992, in placing herself, her husband and her son Joseph on the township' policy for paid medical insurance. At that time, coverage was specifically allowed for her son because he was a full -time student who had not attained the age of 23. Thus, the use of authority of office by Perino resulted in a pecuniary benefit to her son but it was not private because Joseph was entitled to receive such benefits at that time. Subsequently, when Joseph attained the age of 23 on December 15, 1992, he was no longer entitled to coverage. At that time, Perino should have removed Joseph from the township policies. The reason that Perino offered as to why she did not remove Joseph Perino from coverage was that she never received the brochure from the insurance carrier which stated that coverage for full -time students terminates at age 23. We note that it was the responsibility of the township to notify the medical insurance company to terminate coverage (Fact Finding 135 1). In this case we are guided by the recent Commonwealth Court decision in Marchitello and McGuire v. SEC, Opinion filed at No. 2613 and 2614 C.D. 1994 on April 18, 1995, wherein the Court held that there could be no violation under the Ethics Law as to two municipal authority members who took no affirmative action, that is, use of authority of office, when they as municipal authority members received compensation which was determined prior to their taking office, even though the compensation was in an amount in excess of that which was provided for by law: "Use" of public office requires action by a public official that in some way facilitates his receipt of compensation to which he is not entitled, such as in Yacobet where the individual voted to increase his own salary Perino, 93- 040 -C2 Page 57 without having authority to do so. Mere mistaken acceptance by a public official of a compensation check in an amount that was determined prior to his term in office is devoid of the type of action needed to constitute "use" of office for the purpose of obtaining personal financial gain. Slip Opinion, at 13, 14. In order to establish a violation, it is necessary to show a use of authority of office which resulted in a private pecuniary benefit. In this case, the only use of authority of office by Perino occurred in January of 1992 when she signed up herself, her husband and her son for coverage. However, that use of authority of office by Perino cannot be the basis of a violation because at that time coverage was authorized for herself, her husband and in particular Joseph Perino. Since there was no other use of authority of office as to the ineligible benefits, we must conclude that Perino did not violate Section 3(a) of Act 9 of 1989 as to the township paid insurance benefits received by her son Joseph Perino. The third allegation before us involves Perino's receipt of paid work /vacation days on the same days. In 1992 and 1993, there were six days where Perino received a double payment by reporting for payroll purposes those given days as both a work and a vacation day (Fact Finding 140c). Perino, as well as the other supervisors, would submit a vacation and work day on the same day, apparently as a means to deal with the Salem Township policy which prohibited any leave carry over. Such practice was discontinued in 1994 when the board of auditors advised the township supervisors that such actions were impermissible. As to the double pay for vacation and work pay for the same days, we find a violation of Section 3(a) of Act 9 of 1989. There was a use of authority of office by Perino in that she specifically reported for payroll purposes the six days in question for double pay as work /vacation days. The use of authority of office by Perino did result in a pecuniary benefit to herself consisting of double pay for each of those days. The question we must decide is whether that pecuniary benefit was a private one. The question turns upon whether there was any authorization in law to receive such double payments. We are unable to find anything in the Second Class Township Code or in Salem Township Ordinances which would authorize such double payment. In fact, regular township employees were required to take vacation days as off days. Although the Salem Board of Auditors did authorize certain vacation and sick days, a review of the minutes shows no specific authorization to take vacation /work days simultaneously (Fact Finding 142). We have been unable to find any definitive decisional law in this area. There are cases which discuss the nature of vacation days. See Perino, 93- 040 -C2 Page 58 Hahn v. City of Pittsburgh, 63 D &C 2d (1973). However, we have been unable to find case law on the question of the propriety of the receipt of both vacation and work day pay for the same day. A vacation day is normally viewed as the utilization by an employee of an off day for which compensation may be received. If we apply the ordinary meaning of the term, we must conclude that a double payment was unauthorized for the off day so as to be a private pecuniary benefit. Since Perino's use of office in submitting and receiving the double payment resulted in a private pecuniary benefit, we find a violation of Section 3(a) of Act 9 of 1989. The private pecuniary benefit as to this particular allegation amounted to $638.00 as to which we order Perino to make restitution. The fourth issue is whether Perino violated Section 5 of Act 9 of 1989 regarding the failure to list a creditor on her FIS's for calendar years 1991, 1992 and 1993. As we noted above, Perino and her husband entered into a lease of, with an option to purchase, certain property from the Slickville Ambulance, Inc. Since that agreement does provide for 62 months of lease payments in the amount of $425.00 a month with a principal balance payment of $7,054.57, we find as matter of fact that such was an obligation on the part of Perino and her husband to make those payments to Slickville Ambulance, Inc. Since the joint obligation of Perino and her husband to Slickville Ambulance Inc. exceeded the threshold reporting amount of $5,000.00, and since Perino did not list Slickville Ambulance as a creditor on her 1991 through 1993 calendar year FIS's (Fact Findings 130, 150c), we find a violation of Section 5 of Act 9 of 1989. We direct Perino to file amended FIS's for the calendar years 1991 though 1993 listing Slickville Ambulance Inc. as a creditor. The final issue relates to the receipt by Perino of monthly meeting pay and roadmaster compensation relative to morning board meetings which occurred during the regular roadmaster working hours. In order to determine whether a violation of Section 3(a) of Act 9 of 1989 occurred under such circumstances, we must review the Second Class Township Code. The Second Class Township Code provides in part: ...no supervisor shall receive compensation as a superintendent or roadmaster for any time he spends attending a meeting of supervisors. 53 Pa.C.S. §65515(a). The law is explicit that a roadmaster may not receive any compensation while attending meetings of the supervisors. The record in this case absolutely establishes that Perino was receiving her daily wage as a roadmaster during normal working hours while attending morning meetings of the Board (Fact Findings 113, 114). In this case we have a use of the authority of office Perino, 93- 040 -C2 Page 59 by Perino in submitting and receiving compensation for such days. Such receipt of compensation is clearly prohibited by the Second Class Township Code and hence the use of authority of office by Perino resulted in a private pecuniary benefit in that such compensation was not authorized in law. Accordingly, Perino violated Section 3 (a) of Act 9 of 1989 when she received roadmaster compensation and meeting pay for attending morning meetings of the board of supervisors which were held during regular roadmaster working hours. Parenthetically, we note that the board's own solicitor recognized that such practices were contrary to the Second Class Township Code. Although restitution would be clearly warranted in this case, the difficulty that we have relates to quantifying the exact amount of restitution. In this regard, the minutes of these morning meetings reflect the start time of each meeting but not the time at which any meeting concluded. In addition, the testimony of various witnesses reflect a wide range as to the length of any meeting from five minutes to two and a half hours. Since we will not use approximations, such as average meeting time, we will not impose restitution on the basis that we cannot calculate with certainty the time that these respective meetings lasted. Finally, as to the action ordered by this Commission, Perino must comply within thirty days as to the filing of amended FRCS's and as to the payment of ordered restitution. Compliance with the foregoing will result in the closing of this case with no further action; non - compliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Deborah K. Perino as a Salem Township Westmoreland County Supervisor is a public official subject to the provisions of Act 9 of 1989. 2. Perino did not violate Section 3 (a) of Act 9 of 1989 as to the receipt of excessive reimbursement of expenses as to the 1992 County Convention in that such action had a de minimis economic impact. 3. A technical violation of Section 3(a) of Act 9 of 1989 occurred when Perino used the authority of office in participating to approve certain invoices and co- endorsing checks in payment to Deb -Tone Printing, a business with which she was associated, which resulted in a private pecuniary benefit consisting of the township payments for the printing services performed. 4. Perino did not violate Section 3(f) of Act 9 of 1989 regarding Perino, 93- 040 -C2 Page 60 contracts awarded to Deb -Tone in that all such contracts were under the $500.00 threshold requirement of the Ethics Law. 5. Perino did not violate Section 3(a) of Act 9 of 1989 as to the continuation of township paid insurance benefits received by her son after he became ineligible in that there was no use of authority of office by Perino in failing to remove her son from coverage. 6. Perino violated Section 3(a) of Act 9 of 1989 when she simultaneously received both work pay and vacation pay as to the same six days. a. The private pecuniary benefit received by Perino amounted to $638.00. 7. Perino violated Section 5 of Act 9 of 1989 when she failed to list Slickville Ambulance Inc. as a creditor on her 1991, 1992 and 1993 calendar year Financial Interest Statements. 8. Perino violated Section 3(a) of Act 9 of 1989 when she received both board meeting pay and daily roadmaster wages for attending morning meetings of the board scheduled during regular roadmaster working hours. In Re: Deborah K. Perino File Docket: Date Decided: Date Mailed: ORDER NO. 980 93- 040 -C2 08/03/95 08/14/95 1. Deborah K. Perino as a Salem Township Westmoreland County Supervisor did not violate Section 3 (a) of Act 9 of 1989 as to the receipt of excessive reimbursement of expenses as to the 1992 County Convention in that such action had a de minimis economic impact. 2. A technical violation of Section 3(a) of Act 9 of 1989 occurred when Perino used the authority of office in participating to approve certain invoices and co- endorsing checks in payment to Deb -Tone Printing, a business with which she was associated, which resulted in a private pecuniary benefit consisting of the township payments for the printing services performed. 3. Perino did not violate Section 3(f) of Act 9 of 1989 regarding contracts awarded to Deb -Tone in that all such contracts were under the $500.00 threshold requirement of the Ethics Law. 4. Perino did not violate Section 3(a) of Act 9 of 1989 as to the continuation of township paid insurance benefits received by her son after he became ineligible in that there was no use of authority of office by Perino in failing to remove her son from coverage. 5. Perino violated Section 3(a) of Act 9 of 1989 when she simultaneously received both work pay and vacation pay as to the same six days. a. The private pecuniary benefit received by Perino amounted to $638.00. 6. Perino violated Section 5 of Act 9 of 1989 when she failed to list Slickville Ambulance Inc. as a creditor on her 1991, 1992 and 1993 calendar year Financial Interest Statements. 7. Perino violated Section 3(a) of Act 9 of 1989 when she received both board meeting pay and daily roadmaster wages for attending morning meetings of the board scheduled during regular roadmaster working hours. 8. Perino is directed within thirty days of the date of issuance of this order to file amended Financial Interest Statements for the calendar years 1991 through 1993 listing Slickville Ambulance Inc as a creditor as well as making restitution through this Commission to Salem Township in the amount of $638.00. a. Compliance with the foregoing will result in the closing of this case with no further action. b. Non - compliance will result in the institution of an order enforcement action. Commissioner Boyd this matter. Chair Daneen E. violation for the son. Chair Reese of 1989 and order BY THE COMMISSION DANEEN E. REESE, CHAIR E. Wolff did not participate in the decision of Reese dissents only as to the finding of no township paid insurance premiums for oerint'9 would find a violation S ection 3(a) restitution of $