Loading...
HomeMy WebLinkAbout32 CappabiancaMr. Patrick Cappabianca 4133 French Street Erie, PA 16504 Re: Complaint i80 -21 -C STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION April 6, 1981 No. 32 X80 -21 -C Dear Mr. Cappabianca: The State Ethics Commission has received a complaint regarding you and possible violations of Act 170 of 1978. The Commission has now completed its investigation into these allegations and finds no violation of the Act. The individual allegations and findings on which our conclusions are based are: I. A. Allegation: That while serving as City Councilman in Erie, a business with which you are associated, Campana Printing Service, performed work for the City B. Finding: We find no evidence to support the allegation that such business was obtained by the use or misuse of your public office or any confidential information obtained through this public office. Campana Printing does some printing for the City in an amount of $500. or less per year. C. Discussion: The lack of evidence of any violation of Section 3(b) or (c) of the Ethics Act is complemented by the fact that Campana Printing has discontinued serving the City in any significant capacity. However, Section 3(c) of the Ethics Act does provide that: Patric: Cappabianca April 6, 1981 Page -2- "No public official or public employee or a member of his ii:unedidate family or any business in which the person or a member of the person's immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair market value of the business shall enter into any contract valued at $500 or more with a governmental body unless the contract has been awarded through an open and public process, including prior public notice and subsequent public dis- closure of all proposals considered and contracts awarded. Any contract made in violation of this subsection shall be voidable by a court of competent juris- diction if the suit is commenced within 90 days of making of the contract." 65 P.S. 403(c). Thus, it is clear that any future contracts over $500 between your business and the City must be awarded after an open and public process. This has been defined by the Commission as a process in which a competitor has a reasonable opportunity to prepare and submit a proposal. Howard, 79 -044. This includes: (1) prior public notice; (2) public disclosure of all Proposals considered; and (3) public disclosure of the award of the contract or work. Public officials must also avoid any appearance of a conflict of interest. Section 1, 65 P.S. 401. The Commission has had several opportunities to refine this requirement. In addition to the requirements of Section 3(c), you should be advised that the rulings of the Commission clearly hold that where you know or have a reasonable expectation that you or your business will be bidding or obtaining work from the City, you should abstain from voting. The reasons for this abstention should be placed on the public record. Sowers, 80 -050. Thus, as to contracts of less than $500 or over that amount between Campana Printing or any other business with which you are associated, you should not vote or participate in the Council's discussion and place the reasons for same on the record. Patric: Cappabianca April 6, 1981 Page -3- D. Conclusion: No violation of the Ethics Act exists with relation to this allegation. Future conduct as to voting on any contract you or your business may have with the City must conform to the above discussion. Contracts in excess of $500 must meet the open and public requirements of Section 3(c). II. A. Allegation: That while serving as a City Councilman in Erie, you directed City travel business to a travel agency of which you are President and you voted on travel arrangements and payments in favor of that agency. B. Findings: 1. You are President of Cappabianca Travel Agency, Inc., and hold this position while serving on Erie City Council. 2. Travel arrangements for City employees and officials are made by the individual employee and /or official and Council does not vote to or direct these persons to one travel agency or another. 3. Although travel for City employees and /or officials is approved by Council, such approval is not accompanied by any indication of or direction to a particular travel agent. 4. Council does vote to approve payment and /or reimbursement for travel expenses by City employees and /or officials. 5. You did vote to approve such payments, on occasion,.. to Cappabianca Travel Agency. 6. Your agency makes between 55 -60% of the travel arrangements for City employees and officials. C. Discussion: There is no indication that you utilized your public office to direct City employees and /or officials to your travel agency. Neither you nor Council voted, ordered, or inferred that your agency should be utilized by City employees and /or officials for travel arrangements. Patrick Cappabianca April 6, 1981 Page -4- The fact that as a Council Member, you voted to pay these expenses once incurred, does not amount to a violation of the Ethics Act, per se. The Commission has previously ruled that ministerial actions such as these, where no legiti- mate question of payment exists, may not be vio- lative of the Ethics Act. Jorden, 80 -554 and Stewart, 79 -070. In Stewart, we concluded that a School Board Director who was employed by Bell Telephone need not refrain from voting to pay routine, undisputed bills submitted by Bell Tele- phone to the School Board. Stewart, however, is distinguishable. In your case, you hold a con- trolling interest in the travel agency. Thus, while no actual violation of the Ethics Act exists in relation to your travel agency doing business with City employees, to avoid the appearance of any conflict of interest, you should not vote on any bills presented for payment by your travel agency. In addition, we strongly urge you as a member of Council to adopt, if they do not exist already, written guidelines for employees as to travel arrangements. These guidelines could clearly indicate that no preference is to be made or assumed as to the utilization of one travel agency over another following the Council's authorization of travel. The formulation and adoption of such rules would further remove any appearance of a conflict and dispel the allegation that your travel agency was favored over any other. D. Conclusion: You should refrain from voting to pay bills to Cappabianca Travel Agency in order to avoid any appearance of a conflict of interest. All files in this case will remain confidential. However, this Order is final and will become available as a public document within 15 days unless you file documentation with the Commission which justifies reconsideration and /or challenges pertinent factual findings made. Sincerely, A 4 - Paul J mit Chairman PJS /jc