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HomeMy WebLinkAbout592 BorlandMr. William Borland 9905 Old Ridge Road Girard, PA 16417 Re: 85 -126 -C Dear Mr. Borland: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION Order No. 592 DATE DECIDED: August 31, 1987 DATE MAILED: September 8, 1987 The Ethics Commission has received the allegation(s) that you have violated the Ethics Act, Act 170 of 1978. The nature of the alleged violation(s) is as follows: I. Allegation: That you, a Girard Township Supervisor, violated Section 3(a) of the Ethics Act, which prohibits a public employee's or public official's use of office or confidential information obtained through that office to secure financial gain, when you were compensated in 1982, 1983, 1984 and 1985 for attending outside meetings other than those at the township board of supervisors. A. Findings: 1. You have served as a Girard Township Supervisor since January, 1982, and, as such, you are subject to the provisions of the Ethics Act.. 2. Minutes of the Reorganization Meetings of Girard Township Supervisors from 1982 to present disclose that you were appointed roadmaster each year. 3. Minutes of the Girard Township Auditors for the years 1980 through 1987 disclosed the following regarding compensation for township supervisors: a. January 8, 1980: Part -time supervisor salary set at $5.75 /hour. $350.00 annual salary set for supervisors attending outside meetings. Payment to be a non - taxable reimbursement for traveling expenses. Conventions, schools, and supervisor meetings shall be paid by state mandate. Mr. William Borland Page 2 b. January 6, 1981: Roadmaster salary set at $7.00 /hour; part -time supervisor wage set at $6.25 hour. $350.00 annual pay set for supervisors attending outside meetings. c. January 5, 1982: Roadmaster salary set at $13,000.00 /year. Part -time supervisor wage set at $6.50 /hour. $400.00 annual pay set for supervisors attending outside meetings. d. January 18, 1982: Auditors passed motion that the supervisor keep a written record of all meetings attended and location of meetings. Full -time qualified roadmaster salary,set at $16,965.00. e. January 14, 1983: Roadmaster pay set at $17,737.20/year. Part -time supervisor wage set at $6.80 /hour. Auditors recommend use of PennDot form MS907 by all supervisors to substantiate their pay. Outside meeting pay for supervisors set at the same . hourly rate as part -time supervisors plus $.17 /mile. Auditors motion that the supervisors appoint one person as the delegate and submit a voucher listing the name, nature of the meeting and location monthly to the township secretary/ treasurer. Insurance_ benefits: Ray Sanders: Life - $21.45 /quarter. Hospitalization $319.27 /quarter. Daniel Douglass: Life - $21.45 /quarter Hospitalization $306.56 /quarter. William Borland: Life - $21.45/quarter Hospitalization $426.55 /quarter. Pension - $500.00 /year. f. January 4, 1984: Roadmaster pay set at $362.00 /week. Outside meeting pay set at $7.20 /hour plus $.20 /mile for use of personal vehicle. Mr. William Borland Page 3 Insurance benefits: Borland - Hospitalization - $498.14 /quarter Life - $21.45 /quarter Pension - $500.00 /year. Sanders - Hospitalization - $473.24 /quarter Life - $21.45 /quarter Douglas - Hospitalization - $363.07 /quarter Life - $21.45 /quarter. g. January 8, 1985: Roadmaster pay set at $375.00 /week. Supervisors working part -time - $7.45 /hour. Outside meeting pay for supervisors designated as the township representative set at $7.45 /hour plus $.20 /mile for use of personal vehicle. Insurance Benefits: Borland - Hospitalization - $498.14/quarter- Life - $21.45 /quarter Pension - $500.00 /year Sanders - Hospitalization - $473.24 /quarter Life - $21.45 /quarter Douglas - Hospitalization - $363.07 /quarter Life - $21.45 /quarter h. January 8, 1986: Roadmaster pay and benefits to remain the same as 1985. No hospitalization or life insurance approved for non - working supervisors (Douglas, Sanders) per recommendation of Solicitor Schroeck by letter dated September 18, 1985. Supervisors to be reimbursed $.20 /mile for use of personal vehicle while on township business. i. January 6, 1987: Roadmaster pay set at $390.00 /week, plus overtime for overtime over 40 hours. Life insurance and hospitalization to terminate when full -time employment ceases pension plan disapproved. Pay for supervisor working part -time approved at $7.00 /hour. Mr. William Borland Page 4 4. Township payroll records disclose that you were paid the following amounts for outside meeting pay: a. 1982: $400.00 Check #4025 - $200.00 semi - annual pay No record of other $200.00 being paid to you. b. 1983: April 22, 1983, Check #4207 - $54.40, net $49.02 3 meetings, 8 hours: 3 -6 -83 - Planners 2 1/2 hours. 3 -15 -83 - Futures Committee - 3 hours. 3 -20 -83 - Planners - 2 1/2 hours. May 20, 1983, Check #4235 - $142.80, net $122.66. 5 meetings, 21 hours: 4 -4 -83 - Planners 4 -13 -83 - N. West Sewer 4 -26 -83 - Futures Committee 4 -27 -83 - N. West Sewer - 4 -30 -83 - Planners Meet & School 3 hours. 3 hours. 2 1/2 hours. 2 1/2 hours - 10 hours. June 17, 1983, Check #4272 - $54.40, net $49.02 2 meetings, 8 hours: 5 -26 -83 - Exeuctive Meeting Anity Township - 5 hours. 6 -9 -83 - Erie County Planning Committee - 3 hours. October 21, 1983, check #4401, $52.70, net $47.16. 2 meetings, 6 hours, 45 miles at .17 miles: 10 -13 -83 - Testify Leg. Com. Landfill - 3 hours. 10 -13 -83 - Erie County Planning Committee - 3 hours. mileage 7.65 4 -4 -83 - Planners - 3 hours. 4 -13 -83 - N. West Sewer - 3 hours. 4 -26 -83 - Futures Committee - 2 1/2 hours. 4 -27 -83 - N. West Sewer - 2 1/2 hours 4 -30 -83 - Planners Meet & School - 10 hours. December 16, 1983, check #4450 - $54.40, net $49.02. Mr. William Borland Page 5 3 meetings, 8 hours. c. 1984: 10 -13 -83 - Leg. Com. Re: Landfill - 3 hours. 10 -13 -83 - Erie County Planning Committee - 3 hours. . 10 -27 -83 - Park Committee - 2 hours September 21, 1984, check #4738, $280.00, net $238.32 (includes $75.00 for regular meeting pay). 7 meetings, 17 hours, 40 miles at .20 miles ($8.00) 9 -5 -84 - Park Committee - 2 1/2 hours 9 -4 -84 - Park Committee - 3 hours 9 -12 -84 - Park Committee - 2 1/2 hours . 9 -11 -84 - Penelec Adv. Committee - 1 1/2 hours 9 -12 -84 - Penelec Adv. Committee - 1 1/2 hours 9 -13 -84 - Park Committee - 2 1/2 hours 9 -25 -84 - Erie County Planning Committee - 3 hours (40 miles) 9 -5 -84 - Park Committee - 3 hours December 28, 1984, check #4837 - $21.60, net $17.26. 1 meeting 13 hours 12 -18 -84 - Solid Waste Management, Erie County - 3 hours. d. 1985: March 22, 1985, check #4924.- $48.43 (for 2 meetings) total check $223.43 included 7 regular meetings. 2 meetings, 6 1/2 hours: 12- 18 -84 - - Solid Waste Management - 3 hours. 1 -30 -84 - Solid Waste Management - 3 1/2 hours. June 28, 1985, check, #5029 - $134.11 gross, (6 meetings). "Total check $259.11 includes 5 regular meetings. 6 meetings, 18 hours: 2 -14 -85 - Erie County Planning Committee - 2 1/2 hours. 3 -27 -85 - Solid Waste Management - 3 1/2 hours. 4 -3 -85 - Park Committee - 3 hours. 4 -17 -85 - Park Committee - 3 hours. 4 -24 -85 - Park Committee - 3 hours. 5 -16 -85 - Park Committee - 3 hours. Mr. William Borland Page 6 5. Outside meeting pay was overpaid for three dates which were duplicated on a second check: a. October 13, 1983 - Legislative Erie Courthouse, 3 hours was paid to you on October 21, 1983, check #4401 and on December 16, 1983, check #4450. b. October 13, 1983 - Erie County Planners 3 hours was paid to you on october 21, 1983, check #4401 and on December 16, 1983, check #4450. c. December 18, 1984 - Solid Waste Attendance, 3 hours was paid to you on December 28, 1984, check $4837 and on March 22, 1985, check #4924. 6. You provided the following information to a State Ethics Commission i nvestigator: a. You were elected supervisor in 1982 and became roadmaster at that time. b. You were given a lot of responsibilities by the supervisors, and at that time, compensation was given to supervisors serving on committees. You were not aware there was compensation related to the additional duties that you were given when elected. c. The auditors authorized attending meetings that pertain to township business but were not regular supervisors' meetings. d. There were times when there were two separate meetings on the same day at the township building within minutes of each other.. Supervisors attending would collect pay for both. e. You were a member of the Executive Board of Township Supervisors and Girard Township Planning Committee. You also appeared to testify about a hazardous waste dump, as instructed by the Board of Supervi sors. f. You did not question the pay since it was handled by the auditors. You have not collected outside meeting pay in some time. You could not remember when you found out that was it disallowed. h. You did not use your office for financial gain and do not believe that any financial gain was realized by you in any years you received the outside meeting pay. g • Mr. William Borland Page 7 B. Discussion: Township supervisors in townships of the second class are public officials as that term is defined in the State Ethics Act. 65 P.S. §402. As such, their conduct must conform to the requirements of the State Ethics Act. See, Sowers, 80 -050. The State Ethics Act provides as follows: 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. §403(a). Within the above provision of law, this Commission has already determined that township superviors may not approve or accept any compensation for themselves that is not in accordance with the compensation set forth in the Second Class Township Code. This determination has been affirmed by the Commonwealth Court of Pennsylvania. See McCutcheon v. State Ethics Commission, 77 Pa. Commw. 529, 466 A.2d 283, (1982). Compensation awarded or received by a township supervisor that is not in accordance with the provisions of law could constitute a violation of the above cited Section of the State Ethics Act. The Second Class Township Code provides that township supervisors shall receive the following compensation: Compensation of Supervisors -- .Supervisors may receive from the general township fund, as compensation, an amount fixed by ordinance not in excess of the following: Township Population Not more than $,9999 5,000 to 9,999 10,000 to 14,999 15,000 to 24,000 25,000 to 34,999 Annual Maximum Compensation Fifteen hundred dollars Two thousand dollars Twenty -six hundred dollars Thirty -three hundred dollars Thirty -five hundred dollars Such salaries shall be payable monthly or quarterly for the duties imposed by the provisions of this act. The population shall be determined by the latest available official census figures. The compensation of supervisors, when acting as superintendents, roadmasters or laborers, shall be fixed by the township auditors either per hour, Mr. William Borland Page 8 per day, per week, semi - monthly or monthly, which compensation for the use of a passenger car, or a two axled four - wheeled motor truck having a chassis weight of less than two thousand pounds when required and actually used for the transportation of road and bridge laborers and their hand tools and for the distribution of cinders and patching material from a stock pile, as the auditors shall determine and approve; but no supervisor shall receive compensation as a superintendent or roadmaster for any time he spends attending a meeting of supervisors. 65 P.S. §65515, as amended Act 68, 1985. (Prior to the above amendment, the above provision provided for a set fee of $50 per meeting). In reference to the meetings for which supervisors may receive compensation, the code, as applied for the time period in question further provided as follows: The township supervisors shall meet for the transaction of business at least once each month, at a time and place to be fixed by the board, but they shall not be paid for more than sixteen meetings in any one year, except in any township where, on account of the exercise of governmental functions other than those relating to roads, more meetings are necessary, in which case, the number of meetings for which the supervisors may be paid may be increased to any number, not exceeding fifty meetings in any year which shall include hearings of a judicial or quasi - judicial nature. Two members shall constitute a quorum. Except as otherwise provided in this act, an affirmative vote of a majority of the entire board of supervisors shall be necessary in order to transact any business. Necessary expenses incurred in such meetings, including office rent, stationery, light and fuel, shall be paid out of the general township fund. 53 P.S. §65512. (The above provision was amended in 1985) The duties that a supervisor is responsible for performing are also regulated by statute. As can be seen from the foregoing, the compensation to be paid for a supervisor who is not otherwise employed by the township is strictly regulated by the Second Class Township Code. A supervisor may only receive compensation, as set forth above, for supervisor meetings regarding the transaction of township business. The type of meetings for which a township supervisor may be compensated must be one at which official township business is transacted. Additionally, the township code provides for Mr. William Borland Page 9 compensation at the specific meetings outlined in §65512, above. The code does not appear to permit the compensation of a townshp supervisor for attending other types of meetings or for performing the administrative functions of his office. Any other compensation must be earned in and as part of the services performed while serving in one of the statutory authorized positions. if the township supervisors were to award to themselves compensation for attendance at meetings that are not official township meetings of the board of supervisors, or for performing duties not authorized by law such would violate the provisions of the State Ethics Act as such payment would not constitute compensation provided by law. The above interpretation of the Second Class Township Code is a view that has also been expressed by the State Association of Township Supervisors which specifically indicated that supervisors may not be compensated for meetings with engineers, solicitors, planning commissions, authorities, or recreation boards. See Township News, May, 1985, Page 66. The township code sets forth clearly when supervisors may receive compensation other than as set forth above. Generally, township supervisors may be employed by the township as a roadmaster, laborer, or secretary /treasurer. 53 P.S. §65410. The compensation to be paid to supervisors working in such positions is to be fixed by the township board of auditors. 53 P.S. §65515; §65531; §65410. Township supervisors may' not receive any other compensation except as provided above. This concept has been upheld by various courts in the Commonwealth. In Coltar v. Warminster Township, 8 Pa. Commw. Ct. 163, 302 A.2d 859, (1973), the Commonwealth Court of Pennsylvania held that a second class township supervisor may not appoint himself to positions other than those set forth in the township code (roadmaster, laborer, or secretary /treasurer), and receive compensation therefor. See also Conrad v. Exeter Township, 27 D & D 3d 253, (Berks 1983). It is clear, therefore, that the duties for which a township supervisor may be compensated are strictly regulated by the township code, and when performing in the positions set forth in the code, the supervisors' pay must be specifically set forth by the township board of auditors. This Commission's review of this matter indicated that the "outside meetings" for which you were compensated were not related to the roadmaster position but were related to the office supervisor.- See Sanders, No. 572. You, thus, received compensation that was not part of that provided for by law. With relation to the fact that the auditors approved this compensation, this Commission has already held that township auditors have no authority to fix compensation for township supervisors who are performing duties outside of those fixed by law or for working in positions not established in the township code. Nanovic, 85 -005. Thus, even though the auditors may have indicated an approval for the "outside meetings" such was of no effect as the auditors did not have the power to fix a compensation that was not allowed by law and that was regulated by statute (compensation as a supervisor). M. William Borland Page 10 As a result, this Commission finds that you received compensation in the form of "outside meeting" pay that was not in accordance with that set forth by law. Generally, the State Ethics Act privides as follows: Section 9. Penalties. (a) Any person who violates the provisions of Section 3(a) and (b) is guilty of a felony and shall be fined not more than $10,000 or imprisoned for not more than five years, or be both fined and imprisoned. 65 P.S. 409(a). (c) Any person who obtains financial gain from violating any provision of this act, in addition to any other penalty provided by law, shall pay into the State Treasury a sum of money equal to three times the financial gain resulting from such violation..65 P.S. 409(c). Additionally, this Commission may make recommendations to appropriate law enforcement authorities for the initiation of criminal charges or the dismissal of such charges rising out of violatios of the State Ethics act Prior judicial decisions have also determined that this Commission may offer an individual who has obtained a financial gain in violation of the law the opportunity to divest himself of financial gain prior to the issuance of a recommendation to a law enforcement authority. See, McCutcheon v. State Ethics Commission, supra; 65 P.S. Section 407(9)(ii). In the instant situation, upon a review of all of the facts, the latter course may be appropriate. Thus, if the financial gain obtained in violation of the State Ethics Act plus 10% is returned to the governmental body from which it is obtained, you will have removed yourself from a violation of the Act without having received a financial gain. In this respect, this Commission's calculations indicate that you received financial gain in the form of "outside meeting" pay as follows: Year Amount 1. 1982 $400.00 2. 1983 $316.88 3. 1984 $180.58 4. 1985 $182.54 This Commission's calculations indicates that you, thus, received $1,080.00 in financial gain that was not part of the compensation authorized by law. The aforesaid amount plus 10% equals $1,118.00. Upon return of this financial gain to Girard Township, no further action will be taken in this matter and the files will be closed. Mr. William Borland Page 11 C. Conclusion and Order: As a township supervisor in a township of the second class, you are a public official and subject to the provisions of the State Ethics Act. Your receipt of "outside meeting pay" in and through that position was a violation of the State Ethics Act. As such, you used your public office to receive a financial gain other than the compensation provided by law. The amount of gain received total $1,118.00. You are hereby ordered to remit to the State Ethics Commission, within thirty (30) days of the date of this order, the amount of $1,118.00 made payable to Girard Township as restitution for the financial gain that you received. Failure to comply with the provisions of this order will result in a referral of this matter to the appropriate authority for further civil or crimi nal proceedi ngs. 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 (defined as mailing) 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 $1,000 or imprisoned for not more than one year or both, see 65 P.S. 409(e). By the Commission, G. Sieber Pancoast Chairman