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HomeMy WebLinkAbout808 MurrayIn re: Josiah A. Murray STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 : File Docket: 90- 020 -C2 : Date Decided: Julv 16, 1991 : Date Mailed: Julv 16, 1991 Before: Robert W. Brown, Chair Dennis C. Harrington, Vice Chair James M. Howley Daneen E. Reese Roy W. Wilt Austin M. Lee The State Ethics Commission received complaints regarding possible violations of the State Ethics Law, Act No. 170 of 1978 and Act No. 9 of 1989. Written notice, of the specific 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 not filed and a hearing was deemed waived. 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 fifteen days after issuance. However, reconsideration may be 'requested which will defer public release of this adjudication pending • action on the request by the Commission. A request for reconsideration, however, does not affect the finality of this adjudication. A reconsideration request must be received at this Commission within fifteen days of issuance and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code S2.38. The files in this case will remain confidential in accordance with Section 8(a) of Act 170 of 1978 and Section 8(h) of Act 9 of 1989 during the fifteen day period and no one unless the right to challenge this Order is waived, may violate confidentiality by releasing, discussing or circulating this Order. However, confidentiality does not preclude discussing this case with an attorney at law. Any person who violates confidentiality of the Ethics Act is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year, 65 P.S. 409(e). I. ALLEGATION: ADJUDICATION That you, a Supervisor in Williams Township, Northampton County, violated the following provisions of the State Ethics Act (Act 170 of 1978) and (Act 9 of 1989). The nature of the alleged violations are as follows: That you, a Supervisor for Williams Township, Northampton County, violated the following provisions of the State Ethics Act (Act 9 of 1989), when you contracted with your son to do work at the Township Building, valued in excess of $500.00, without an open and public process: Section 3. Restricted Activities. (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. That you violated the following provisions of Act 170 of 1978, when you received Blue Cross and Blue Shield coverage at the township's expense while not employed by the township; and when you failed to file Statements of Financial Interests in 1988, 1989 and 1990: Section 3. Restricted Activities. (a) No public official or public employee shall use his public office or any confidential information received through his holding public office to obtain financial gain other than compensation provided by law for himself, a member of his immediate family, or a business with which he is associated. 65 P.S. 5403(a). Section 4. Statement of financial interests required to be filed. (a) Each public employee employed by the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency or bureau in which he is employed no later than May 1, of each year that he holds such a position and of the year after he leaves such a position. Any other public employee shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. 65 P.S. S404(a). Mr. Josiah A. Murray Page 2 II. FINDINGS: 1. Josiah A. Murray served as a Supervisor in Williams Township, Northampton County, from January of 1988 to the present. a. Murray has served as Chairman of the Board of Supervisors in 1990 and 1991. 2. In January 1990, Williams Township entered into a contract with Jeff Murray, Electrical Contractor, to repair and replace heating and lighting units in the township maintenance garage. a. Jeff Murray is the son of the Williams Township Supervisor, Josiah Murray. b. The repairs to heating and lighting in the maintenance garage were not advertised. c. Jeff Murray was contracted to do the work following a discussion among Supervisors Joseph Fretz, Lloyd Frankenfield and Josiah Murray. d. The hiring was not approved at a formal meeting of the board of supervisors. 3. Williams Township records reflect that an invoice was received titled "Jeff Murray Electrical Contractor, 1777 Morgan Hill Road, Easton, PA 18042, Phone: 258 - 5747" made out to the Williams Township Board of Supervisors, 655 Cider Press Road, Customer Number 1220, dated January 2, 1990, listing the following services: Repair Conduit in Maintenance Garage Maintenance & Labor - $94.00 Install New Florescent Lights in Maintenance Garage Maintenance & Labor - $245.00 Replace Heat Unit in Garage at Cider Press Road Maintenance & Labor - $325.00 Install Florescent Lights in Garage at Cider Press Road Maintenance & Labor - $73.00 Total - $737.00 The invoice contains the notation "409 -250, #2573, Mr. Josiah A. Murray Page 3 1- 8 -90 ". 4. At the January 11, 1990 meeting of the Williams Township Supervisors, payment of the Jeff Murray invoice was approved. a. The official minutes indicate that Josiah Murray made a motion, seconded by Frankenfield, to approve a list of paid invoices which were presented to the Supervisors. b. The list of invoices contain a payment, item #31, in the amount of $737.00, on check #2573, to Jeff Murray. 5. Williams Township paid the Murray invoice by township check no. 2573. a. The check was made payable to Jeff Murray in the amount of $737.00. b. The check was dated January 8, 1990. c. The check was signed by Williams Township Supervisors, Joseph Fretz, Lloyd Frankenfield and Jess Murray. 6. At the 1988 reorganization meeting of the Williams Township Supervisors, all supervisors were appointed roadmasters. a. The motion was approved unanimously with Supervisors, Fretz, Frankenfield and Murray voting. b. Supervisor Fretz was appointed Active Roadmaster. 7. Minutes of the January 11, 1988 Williams Township Board of Auditors Meeting indicate the Auditors set the following salaries and benefits for the Board of Supervisors: a. Rate for Roadmaster - $9.50 /Hour b. Rate for Inspection of Roads - $9.50 /Hour c. Commission for Secretary /Treasurer - 3% d. Vacation 1 Year to 5 Years - 1 week vacation; thereafter, 1 day for each year of service. Mr. Josiah A. Murray Page 4 e. There was no mention of Blue Cross and Blue Shield coverage. 8. Williams Township records show Supervisor Murray was compensated for working the following hours in 1988: a. April 27, 1988 - 4 hours for performing the road check. b. April 28, 1988 - 1 hour for interviewing Gail Helm, a candidate for the Township Clerk position. c. September 9, 1988 - 3 hours for attending an Insurance Conference and checking Dan Hampton's complaint. 9. Josiah Murray received health insurance at township expense through Blue Cross and Blue Shield from January 1988 through October 1988. a. Murray's coverage was part of the township's group coverage which included township employees. 10. The total cost of the insurance premiums for the period January to October 1988 was $1,673.70. 11. Williams Township records confirm that as of October 30, 1990, Josiah Murray had not filed Statements of Financial Interests for the 1987, 1988 and 1989 calendar years. 12. On December 11, 1990, the State Ethics Commission received Statements of Financial Interest for Jess A. Murray, 1765 Morgan Hill Road, Easton, PA, for the calendar years 1987, 1988 and 1989. a. The forms were all dated December 6, 1990. b. Sources of Income: - Jess Murray Electrical Contractor - Apartments 300A -300B Morvale Road, Easton, PA - Apartments 1470, 1773, 1771, 1775, 1777 Morgan Hill Road, Easton, PA c. Office of Directorship or Employment in any Business: Jess Murray Electrical Contractor - Owner Mr. Josiah A. Murray Page 5 III. DISCUSSION: d. Financial Interest in any Entity in Business for Profit: Jess Murray Electrical Contractor - Owner 13. Josiah Murray is the owner and operator of Jess Murray Electrical Contractor. a. The business operates out of 1765 Morgan Hill Road, Easton, PA. b. Murray was in the electrical contracting business with his son, Jeff Murray, until approximately 1988. c. Jeff Murray's business operates out of 1777 Morgan Hill Road, Easton, PA. 1) This is rental property of Josiah Murray. Initially, it is noted that of the three allegations in this case, the first relates to Act 9 of 1989, and the other two relate to Act 170 of 1978. Under both Act 170 of 1978 and Act 9 of 1989, Josiah A. Murray as a supervisor for Williams Township is a public official as that term is defined in Section 2 of both Acts. Volpe, Order 579 -R, Means, Opinion 90 -007. As such, his conduct is subject to the provisions of both laws and the restrictions therein are applicable to him. Under Section 3(a), quoted above, this Commission has determined that use of office by a public official to obtain a financial gain for himself or a member of his immediate family or a business with which he is associated which is not provided for in law transgresses the above provision of law. Thus, use of office by a public official to obtain a financial gain which is not authorized as part of his compensation is prohibited by Section 3(a): Hoak /McCutcheon v. State Ethics Commission, 77 Pa. Commw. Ct. 529, 466 A.2d 283 (1983); Yacobet v. State Ethics Commission, 109 Pa. Commw. Ct. 432 531 A.2d 536 (1987). Similarly, Section 3(a) of the Ethics Act would prohibit a public official /employee from using public office to advance his own interests; Koslow v. State Ethics Commission, 116 Pa. Commw. Ct. 19, 540 A.2d 1374 (1988). Likewise, a public official /employee Mr. Josiah A. Murray Page 6 may not use the status or position of public office for his own personal advantage; Huff, Opinion 84 -015. As to Section 3(a) of Act 9 of 1989, a conflict is defined 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. This provision of law in part restricts a public official /employee from using the authority of office or confidential information for a private pecuniary benefit for himself, a member of his immediate family or business with which he or a member of his immediate family is associated. Under Section 4(a) of the Ethics Law quoted above, this provision of law requires that each public employee and public official (Kremer v. SEC, 56 Pa. Cmwlth. 160, 424 A.2d 968 (1981), affirmed 503 Pa. 358, 469 A.2d 593 (1983)), must file a Statement of Financial Interests for the preceding calendar year of each year that he holds a public position as well as for the year after he leaves such a position. The issues before us are threefold: whether Murray violated Section 3(a) of Act 9 of 1989 regarding the award of a contract, valued in excess of $500.00 without an open and public process, to his son to do work at the township building; secondly, whether he violated Section 3(a) of Act 170 of 1978 regarding the receipt of Blue Cross /Blue Shield Insurance at township expense while not in the employment of the township; and lastly, whether Murray violated Section 4(a) of the Act 170 of 1978 regarding the failure to timely file Statements of Financial Interests in 1988 through 1990. Mr. Josiah A. Murray Page 7 In the instant matter, Murray served as a Williams Township Supervisor from January 1988 to the present. In January of 1990, the township entered into a contract with Jeff Murray, an electrical contractor and son of Murray, to repair and replace heating and lighting units in the township maintenance garage. There was no advertisement or bid process for the contract which was awarded following a discussion among the three supervisors, including Murray. The hiring was not approved at a formal meeting. The township records reflect that various services were subsequently performed by Jeff Murray, who submitted an invoice in the amount of $737.00 which was approved at a January 11, 1990 meeting. Murray voted at that meeting in favor of a successful motion to approve a list of invoices which included the invoice of Jeff Murray. A check in the amount of $737 dated January 8, 1990 and signed by all supervisors was then forwarded to Jeff Murray, Separate and apart from the matter of the township repair contract, all supervisors were appointed road masters at a 1988 reorganizational meeting of the township with Supervisor Fritz being appointed as "Active Roadmaster." At a January 11, 1988 auditor's meeting of Williams Township, the minutes reflect that there was no mention of Blue Cross /Blue Shield coverage. In 1988, Murray did receive compensation for four hours of work for performing a road check, one hour for interviewing an employment applicant and three hours for attending an insurance conference. However, Murray received health insurance at township expense from January 1988 through October 1988, the cost of which totalled $1,673.70. As to the matter of the Financial Interests Statements, although no statements were on file for Murray for the 1987 through 1989 calendar years, this Commission received on December 11, 1990 statements of Murray for said calendar years. However, the category for sources of income, does not reflect any receipt of income from Williams Township. In applying the provisions of Section 3(a) of Act 9 of 1989 to the matter of the services provided by Murray's son to the township, we find a violation of Section 3(a) of the law. Clearly, there was a use of authority of office on the part of Murray when he and the other two supervisors awarded the contract to Jeff Murray to do the repair or replacement work as to the heating and lighting units in the township maintenance garage. In addition, Murray made and voted in favor of a successful motion to approve the invoice for the work done by Jeff Murray. The use of the authority of office resulted in a private pecuniary benefit in the amount of $737 which was the payment received by Jeff Murray to perform the services under the contract. Such private pecuniary benefit did enure to a member of Murray's immediate Mr. Josiah A. Murray Page 9 IV. CONCLUSIONS OF LAW: 1. Josiah A. Murray as a Williams Township supervisor is a public official subject to the provisions of Act 170 of 1978 and Act 9 of 1989. 2. Murray violated Section 3(a) of Act 9 of 1989 when he and the other supervisors awarded a contract to his son to repair and replace heating and lighting equipment in a township building. 3. Murray violated Section 3(a) of Act 170 of 1978 when he as a non - working supervisor received township paid Blue Cross /Blue Shield insurance for the period January through October 1988. 4. Murray received a financial gain in the amount $1,673.70 which was other than compensation provided for by law when he received township paid Blue Cross /Blue Shield insurance in 1988. 5. A technical violation of Section 4(a) of Act 170 of 1978 occurred when Murray failed to timely file his Statements of Financial Interests for the calendar years 1987 through 1989. Mr. Josiah A. Murray Page 8 family since the term "immediate family" is defined under Act 9 of 1989 as follows: Section 2. Definitions. "Immediate family." A parent, spouse, child, brother or sister. Turning to the matter of the receipt of township paid Blue Cross /Blue Shield insurance by Murray, the findings do reflect that although Murray was technically appointed roadmaster, no duties were performed by him in that capacity; and therefore, he would not be considered as a working township employee. Act 41 of 1988, which amended the Second Class township Code, does allow under certain circumstances for supervisors who are working employees of the township to receive township paid insurance benefits; however, non - working supervisors may only be included in a group plan if they pay their pro -rata share of the premium. It is clear under the Second Class Township Code that Murray was not entitled to receive the insurance premiums amounting to $1,673.70. In addition, it is noted that the receipt of the township paid insurance did not occur within the amnesty period set forth in Act 41 of 1988. Since a non - working supervisor is not entitled to township paid insurance benefits, the receipt by Murray of these benefits in 1988 was a financial gain other than compensation provided for by law, and as such, received in violation of Section 3(a) of Act 170 of 1978. Finally, as to the filings of the Financial Interests Statements, the 1987 through 1989 calendar year FIS's for Murray were not timely filed but were subsequently received at this Commission on December 11, 1990. Since there was not a timely filing of the FIS's, we find a technical violation of Section 4(a) of Act 170 of 1978 when Murray failed to timely file his Statements of Financial Interests. A review of the filings reflect that Murray did not list Williams Township as a source of income. If Williams did in fact receive income of $500 or more from Murray Township in any of the three years, he is directed within 30 days of the issuance of this Order to file amended Statements of Financial Interests listing such income. As to the $1,673.70 in premiums paid by the township, Commonwealth Court in Yacobet v. SEC, supra, has upheld the right of the Commission to order restitution of a financial gain received in contravention of Section 3(a) of the Ethics Law by a public official /employee from his governmental body. Accordingly, we order Murray to make restitution through this Commission to Williams Township in the amount of $1,673.70. Failure to comply with the forgoing will result in the referral of this matter for an order enforcement action. In re: Josiah A. Murray ORDER No. 808 : File Docket: 90- 020 -C2 : Date Decided: July 12, 1991 : Date Mailed: July 16. 1991 1. Josiah A. Murray as a Williams Township supervisor violated Section 3(a) of Act 9 of 1989 when he and the other supervisors awarded a contract to his son to repair and replace heating and lighting equipment in a township building. 2. Murray violated Section 3(a) of Act 170 of 1978 when he as a non - working supervisor received township paid Blue Cross /Blue Shield insurance for the period January through October 1988 amounting to $1673.70. 3. Murray is hereby directed to make restitution in the amount of $1,673.70 to Williams Township for the insurance premiums by the Township in 1988. 4. A technical violation of Section 4(a) of Act 170 of 1978 occurred when Murray failed to timely file his Statements of Financial Interests for the calendar years 1987 through 1989. 5. If Murray received income of $500 or more from Williams Township in any of the years 1987 through 1989, he is directed to file amended Financial Interests Statements within 30 days listing such income as a direct or indirect source of income. 6. Failure to comply with the provisions of paragraph 3 will result in the referral of this matter for an order enforcement action. BY THE COMMISSION, i Atgb./ ROBERT W. BROWN, CHAIR Mr. Josiah Murray 1765 Morgan Hill Road Easton, PA 18042 Re: Order No. 808, File No. 90- 020 -C2 Dear Mr. Murray: STATE ETHICS COMMISSION 309 FINANCE BUILDING PO. BOX 11470 HARRISBURG, PA 1 71 08 -1 470 TELEPHONE (717) 783 -1610 August 13, 1991 On August 13, 1991, the State Ethics Commission received a letter from Deborah L. Ellis stating that a check in the amount of $1,673.70 was forwarded directly to Williams Township for full restitution payment regarding the above - mentioned matter. such. JJC /slj This letter will be part of the Order and a public record as cc: Public Binder Sinc xecut' e Director