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Home My WebLink About202 GlowackiMr. Robert Glowacki, Jr. President, Erie City Council 3943 Myrtle Street Erie, PA 16508 Re: #82 -92 -C Dear Mr. Glowacki: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION June 17, 1983 Order No. 202 The State Ethics Commission has received a complaint regarding you and a possible violation of Act 170 of 1978. The Commission has now completed its investigation. The individual allegations, conclusions, and findings on which those conclusions are based are as follows: I. Allegation: That you are associated with a business, Assessment Evaluations, and in this business present appeals for a fee to obtain property assessment /valuation reductions which, if granted, will adversely affect the tax base of the City of Erie where you serve as a member of City Council and that as such you voted to dissolve the City's Assessment Bureau and this violates Section 3(a) or Section 1 of the Ethics Act. A. Findings: 1. You were elected to the Erie City Council in November, 1977 and currently serve as President of City Council and as such you are a public official subject to the provisions of the Ethics Act. 2. In 1978, City Council began consideration of the abolition of the City's Assessment Bureau. a. During the December, 1978 budget sessions Council voted unanimously to discontinue funding for the City Assessment Bureau. Robert G■owacki, Jr. June 17, 1983 Page 2 b. The main motivation for this abolition were the high costs of reassessing City property which had last occurred in 1954 and the reasonableness of accepting more recent (1968) County assessment figures. c. At a Council meeting of May 30, 1979, Council File Ordinance No. 12,845, dissolving the City Bureau of Assessment and accepting the County of Erie's assessment figures at 100% was read for the first time. d. At a Council meeting of June 13, 1979, Council File Ordinance No. 12,845 was again reviewed by Council. Councilman Cappabianca moved and Council Meredith seconded the motion to accept the Ordinance on the first reading. The motion passed by a vote of 6 to 1; you voted in favor of passage. e. A public hearing was held in June, 1979'in relation to this Ordinance. f. On June 27, 1979 Councilman Cappabianca introduced Council File Ordinance No. 12,845 now known as Pending Official File Ordinance No. 57 -1979 entitled, "An Ordinance Dissolving the Bureau of Assessment of the City of Erie and Accepting the County of Erie Assessment figures at 100% of Assessment." On motion by Cappabianca and seconded by Councilman Crishock, Council File Ordinance No. 12,845 known as Pending Official File Ordinance Mo. 57 -1979 was passed by a vote of 4 to 3. Voting in favor of passage were Councilmen Cappabianaca, Crishock, Glowacki and Meredith. The Ordinance was approved and signed by Mayor Louis J. Tullio on July 3, 1979. The Ordinance was duly filed with the Department of State of the Commonwealth on December 19, 1979. 3. In February, 1982 you and a Mr. John Shaffer decided to form a partnership. a. The purpose of this business /partnership was to appeal tax assessments to the Erie County Board of Assessment Appeals (ECBAA) to obtain property tax reductions. b. A corporation, known as Assessment Evaluation, Inc. (AEI) filed for and received articles of incorporation from the Commonwealth of Pennsylvania on May 4, 1982. Robert Gloweocki, Jr., June 17, 1983 Page 3 c. AEI names you and John Shaffer as shareholders with the titles of secretary and president respectively and is the business entity designed to carry out the purpose referred to in (a) above. d. AEI employs persons to process property assessment appeals which are presented to ECBAA. AEI solicits business from property owners subject to the County Assessment process, including owners of property located within the City of Erie. f. Information used by AEI to solicit this business is obtained through public records, including compilations of real estate transfers, Tax Assessment Office records and filings made with the Register and Recorder of Deeds of the County. g. AIE filed appeals for 134 property owners as to 1983 real estate assessments before the ECBAA and the majority of these appeals related to property within the City. The ECBAA granted assessment reductions in 90 of the 134 appeals filed by AEI. Most appeals filed by AEI rested on arguments derived from a Pennsylvania Supreme Court ruling issued in July, 1981 which created a different standard by which to calculate a taxing district's common level ratio of assessment to fair market values. h. AEI charges two - thirds of the tax savings in one year resulting from a successful appeal and subsequent reduction in property tax. 4. Neither the City or City Council is legally responsible for establishing the assessment for any property. The ECBAA is not part of the City administration and operates independently from the City. B. Discussion: As a public official your conduct must conform to the requirements of the Ethics Act, in particular Section 3(a) of the Act, which states that: 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. 403(a). Robert Glowacki, Jr. June 17, 1983 Page 4 In the present case, we find no evidence that you used your public office, ie. your votes to abolish the City Bureau of Assessment, with the aim of creating AEI or to otherwise benefit your own interests. The business AEI was designed to and did undertake, ie. filing appeals to ECBAA, could have been undertaken without violation of the Ethics Act, even if the City had not abolished its Assessment Bureau. Therefore, your actions as Council President in relation to this abolition do no constitute a violation of the Ethics Act. It is true that the reduced assessments garnered through appeals successfully prosecuted by AEI may affect the City's tax base. However, the question here under the Ethics Act is not the effect your actions /business might have, but whether you can engage in such activities. As stated above, the Ethics Act does not prohibit such a business, particularly where your position as a City Council member and Council itself is not related to the County entity (ECBAA) where that business is conducted. However, the Commission must also consider the requirements of Section 1 of the Ethics Act which states: "The Legislature further declares the people have a right to be assured that the financial interests of holders of or candidates for public office present neither a conflict nor the appearance of a conflict with the public trust." 65 P.S. 401. As an Erie City Councilperson, you have an obligation to the citizens of the city to assure them that your council service is impartial and honest. We must assume that your vote to transfer assessment responsibilities to the county was cast because you believed it was in the best interest of the city. However, you have a continuing responsibility to assure the citizens that your AEI - business relationships county do not conflict or appear to conflict with your public trust as a councilperson. While we find no violation of the Ethics Act, your business relationships with the county in prosecuting appeals as to property in the City which may result in reduction of the City's tax base create the appearance of a conflict of interest and this appearance must be removed. C. Conclusion: There is no violation of Section 3(a) of the Ethics Act. However, we do find an appearance of a conflict of interest. You must remove this appearance by having other members of your AEI handle all matters, correspondence, appearances, and meetings with ECBAA and county officials associated with ECBAA. You must also abstain from city council actions relating to ECBAA. However, you may prepare AEI documents for presentation as long as you do not use your office or confidential information gained from that office in that preparation and your name does not appear on the documents being presented. Robert L. Glowacki, Jr. June 17, 1983 Page 5 Our files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 408(a). However, this Order is final and will be made available as a public document 15 days after service unless you file documentation with the Commission which justifies reconsideration and /or challenges pertinent factual findings. See 51 Pa. Code 2.38. During this 15 -day period, no one, including the Respondent unless he waives his right to challenge this Order, may violate this confidentiality by releasing, discussing or circulating this Order. Any person who violates the confidentiality of a Commission proceeding is guilty of a misdemeanor and shall be fined not more than $1000 or imprisoned for not more than one year or both, see 65 P.S. 409(e). PJS /jc ' By the Commission,