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HomeMy WebLinkAbout609 TantlingerMr. Irvin W. Tantlinger c/o Murray I. Horewitz, Esquire C.R.H. Building 1600 Morrell Avenue -Box C Connellsville, PA 15425 Re: 85 -156 -C STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION Order No. 609 DATE DECIDED: October 14, 1987 DATE MAILED: October 20, 1987 Dear Mr. Tantlinger: The 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. Alle ation: That you, a Supervisor in Fairfield Township Section 3 a of the Ethics Act which prohibits a public employee's l or ep public official's use of office or confidential information gained through that office to obtain financial gain, when you were paid for services in relation to budget preparation when you were not employed by the township other than as a supervisor, and which compensation was not fixed by the township board of auditors. A. Findings: 1. You serve as a supervisor of Fairfield Township, Westmoreland County, Pennsylvania. a. You were appointed on June 6, 1983, to fill a vacancy. 2. All three Fairfield Township Supervisors were appointed roadmasters at the January, 1984 reorganizational meeting of the supervisors. 3. Hospitalization, disability /accident, and life insurance for township employees is administered by the Columbia Life Insurance Company, R.D. #5, Bloomsburg, Pennsylania, 17815. 4. Columbia Life Insurance Company invoices record the following payments by the township for your hospitalization, disability /accident and life insurance coverage: a. 1983 - $1,749.33, for coverage from June through December. Mr. Irvin W. Tantlinger Page 2 b. 1984 - $3,515.48, for coverage January through December. c. 1985 - coverage cancelled in March. 5. You are employed as a full -time teacher for the Eastern Westmoreland Vocation School and receive full medical benefits as a result of this position. 6. Minutes of the Fairfield Township Supervisors' meetings indicate: a. June 6, 1983 - a letter is read from Judge Richard E. McCormick appointing you as Supervisor. b. November 14, 1983 - John St. Clair made motion to pay the bills and you seconded the motion. c. January 3, 1984 - reorganizational meeting, the supervisors were all appointed as roadmasters. Supervisors present: Burkett, St. Clair, and you. d. January 3, 1984 - regular meeting. The insurance policies were discussed. Decision to be given on January 6, 1984, during a continuation of the regular meeting. Solicitor Welty gave his approval for this continuation. January 6, 1984 - continuation of January 3 meeting. Additional discussion of the township insurances resulted in Burkett making the motion to accept PNI Insurance company for 1984, you seconded the motion to accept the insurance and the vote was unanimous, e. February 4, 1985 - you stated that you had been receiving certain insurance benefits since you had been appointed supervisor because it had been the accepted practice in the past. As of March 1, 1985, you stated that you were stopping the benefits due to questions raised by the Pennsylvania State Association of Township Supervisors. Welty stated that you are entitled to a share of the pension annuity proportionate to the hours you worked for the township. f. March 4, 1985 - Solicitor Welty spoke in regard to the surcharge against you for hospitalization insurances and pension annuity payments. Mr. Irvin W. Tantlinger Page 3 g. 1. The supervisors have the power to purchase insurance for employees and their families. 2. You were appointed roadmaster and did work as roadmaster in 1984. 3. It is the duties of the auditors to set compensation for the supervisors, roadmasters and employees which they did in 1984. 4. Since the auditors audited the 1983 books, they were aware of the benefits you were receiving, they therefore approved the benefits. 5. A letter from the Pennsylvania Department of Community Affairs was read to support this conclusion. 6. The total of the surcharge against you for hospitalization insurances and pension annuities was $3,257.74. May 6, 1985 - you hired your own attorney for the accusations made against you by the auditors for the surcharges. h. July 1, 1985 - The supervisors have no documentation for the time spent in their homes for the audit. i. December 2, 1985 - Discussion of resolution #7 to hire a special counsel, Murray I. Horewitz, nunc pro tunc, with regard to the report of the auditors of Fairfield Township at No. 2097 of 1985 in Court of Common Pleas of Westmoreland County. It was noted in the minutes "Irvin did not participate in voting on Resolution #7 of 1985. St. Clair made a motion to accept Resolution #7 of 1985, Burkett seconded. 7,, Minutes of the Fairfield Township Auditors' meetings show the following: a. 1982: Wage rate set at $50.40 a day for an eight hour day. Meeting pay set at $25.00 each. b. 1983: Supervisors pay raised from $50.40 to $54.40 per day. Meeting pay remained the same rate of $25.00 each. Mr. Irvin W. Tantl i nc r Page 4 c. 1984: All fringe benefits received by the union employees will also apply to the roadmasters. Sickness and health insurance benefit:, and pension benefits received during 1983 will be continued at the ?ame level for 1984. All fringe benefits received by the union employees will also apply to the roadmasters. Sickness and health insurance benefits and pension benefits received during 1983 will be continued at the same level for 1984. d. 1985: Supervisor pay raised fifty cents an hour to $7.80 per hour. Fringe benefits remain the same as contract states for prior years. Hospitalization remains the same, as do vacations. Holidays to remain the same as contract states. Road inspections raised to $62.40 per day. 8. The Fairfield Township auditors surcharged you for the benefits that the township had paid for in your behalf. 9. A CONSENT DECREE was approved on November 22, 1985, by Judge Charles H. Loughran which provided as follows: That surcharge No. 2 against Supervisor Irvin W. Tantlinger has been satisfied in full by the fact that Irvin W. Tantlinger has caused Life of Maryland to return ONE THOUSAND FIVE HUNDRED SIXTY -TWO DOLLARS AND SIX CENTS ($1,562.06) from his pension fund account to the Township of Fairfield and by the fact that he has repaid the sum of ONE HUNDRED SEVENTY -TWO DOLLARS AND SIXTY -FOUR CENTS ($172.64) for 1984 disability insurance and SIXTY -ONE DOLLARS AND TWENTY CENTS ($61.20) for 1984 life insurance to the Township of Fairfield. a. Township records disclose that $1,562.06 represents payments made on your behalf to Life of Maryland as follows: 1. May 18, 1984 - $375.00 August 17, 1984 - $375.00 November 23, 1984 - $375.00 $1,125.00 2. An additional $375.00 was paid sometime in 1983 but no records of payment could be located. Mr. Irvin W. Tantlinger Page 5 10. You did repay to Fairfield Township the amounts of $172.64 and $61.20 on November 22, 1985. a. Township records indicate that this payment was deposited into - the Fairfield Township bank account on that date. b. The above payments represented the township payment on your behalf for disability and life insurance. c. The payment to the township of $1,562 by Life of a pension program in which you were enrolled. 11. By order of the Court of Common Pleas of Westmoreland Township paid the attorney fees of your counsel, Murray I. 1984 surcharge action which amounted to $950.00. 12. The township expended a total of $5,264.81 for your hospitalization, disability and life insurance benefits in 1983 and 1984. (See finding 4). a. You repaid the township $233.84 for these benefits. b. The township thus expended $5,030.97 which has not been reimbursed. c. As a township supervisor, you approved these expenditures. d. As a township supervisor, you signed several of the checks representing payments of your insurance and benefits premiums. 13. You were an appointed roadmaster, but due to your full -time employment a teacher you worked very limited hours for the township. 14. You were not required to repay the township for the hospitalization benefits provided through Columbia Life Insurance Company due to an agreement between the attorneys at the time of the surcharge. This was based on the idea that you could not benefit from this coverage since you were identically covered in your full -time employment. 15. In 1983, the Fairfield Township weekly, bi- weekly or semi - monthly payroll show that you were paid for 31 1/4 hours in addition to other means of compensation provided to a Supervisor in the form of meetings and road inspections. Maryland related to County, Fairfield Horewitz, in the 16. The pay rate for supervisors in 1983 was established at the F a i r f i e l d Township auditors reorganizational meeting at $54.40 per day, or $6.80 per hour. as Mr. Irvin W. Tantlinger Page 6 a. Week of July 16, 1983 - July 29, 1983; 10 1/4 hours; check #7015; gross $69.70. b. Week of November 28, 1983 — December 9, 1983; 17 hours; check #7140; gross - $115.60. c. Week of December 24, 1983 - December 31, 1983; 4 hours; check #759; gross - $27.20. 17. According to the Fairfield Township disbursements and expenditure ledgers for June, September, November and December, 1983, show that the above hours were charged to department #438 which is work on "maintainence and repairs of roads and bridges." 18. In a letter which you submitted to the State Ethics Commission, you state that all work was either actual work on the roads as directed by the other supervisors or time spent in the township building as directed by the other supervisors, and that time was completed on township workdays during your time off from teaching. You submitted with this letter hand sheets of some of the hours worked in 1983: a. June 21, 1983 - 2 1/2 hours; meeting with solicitor. b. June 24, 1983 - 1 hour; planning session. c. June 28, 1983 - 2 1/2 hours; looked roads with Homer. d. July 1, 1983 - 1/2 hours; drafted letters. e. July 12, 1983 - 3/4 hours; Ackney's shell with Spark. f. July 13, 1983 - 1/2 hours; letter of compliance. g. July 14, 1983 - 1 1/2 hours; Mosso letter (crime watch). h. July 26, 1983 - 1 hour; Planning session. i. December 15, 1983 - 1 hour; township discussion, Burkett and St. Clai r. J. • December 23, 1983 - 3 hours; township discussion, Mosso, Swartzlander. This totals 14 1/4 hours. Mr. Irvin W. Tantlinger Page 7 19. According to hand written sheets found in the records at the township building representing hours you worked and signed by you for 1983: a. October 31, 1983 - Clai r, Crusan. b. November 2, 1983 - c. November 23, 1983 building. d. November 23, 1983 - 3 hours; discussion at Solicitor Welty's office. e. November 30, 1983 - 3.5 hours; for work on the budget. f. December 6, 1983 - 2.5 hours; for work on the budget. December 7, 1983 - 3.5 hours; for work on the budget and a letter. h. December 13, 1983 - 1 hours; for a sewage authority meeting. 20. You submitted with your letter to the Commission several type written sheets of some of the hours worked in 1984: a. April 6, 1984 - 9 1/2 hours; roads - 439 - 998. b. May 8, 1984 - 6 1/2 hours; roads 895. c. July 25, 1984 - 8 hours; roads 862 -863. d. July 26, 1984 - 5 1/4 hours; roads 437. e. September 7, 1984 - 7 1/2 hours; roads 448 - 984. f. November 30, 1984 - 10 hours; roads 986 - 984 -944. g. December 28, 1984 - 3 hours; roads 984. 21. According to hand written sheets found in the records at the township building representing hours you worked and signed by you for 1984. a. July 25, 1984 - 8 hours; no accounting. b. July 26, 1984 . - 5 1/2 hours; no accounting. 9. 1 1/2 hours; discussion on sewage, Burkett, St. 1 hour; meeting on sewage with Richard Mosso. - 1 hour; meeting on revenue sharing at township Mr. Irvin W. Tantl i nge r Page 8 c. November 12, 1984 - 6 hours; no accounting. d. November 23, 1984 - 4 hours; no accounting. e. April 23, 1984 - 2 1/2 hours; state meeting; Lidding procedure. f. April 24, 1984 - 2 hours; township discussion on motors, trucks, . flood plain. g. April 30, 1984 - 7 hours; reviewed bills, discussion of township matters. 22. Township weekly, bi- weekly or semi- weekly payroll report indicate that you did not sign in for hours that you claimed you worked for the following dates: a. Pay period March 26, 1984 - April 6, 1984; check #7296, gross - $69.35, net - $61.61, for 9 1/2 hours you claimed you were working on roads #998, department 439. b. Pay period May 5, 1984 - April 18, 1984; check #7338, gross - $47.45, net - $42.59, for 6 1/2 hour you claimed you were working on roads #895. 23. The pay rate for supervisors in 1984 was established at the Fairfield Township auditors reorganizational meeting at $54.90 per day, and road inspections at $58.40. You received compensation in the amount of $365.00 in 1984. a. April 3, 1984; 9 1/2 hours; check #7296; gross - $69.35. b. May 8, 1984; 6 1/2 hours; check #7338; gross - $47.45. c. July 20, 1984; 13 1/2 hours; check #7466; gross - $98.55. d. September 7, 1984; 7 1/2 hours; check #7524; gross - $54.75. e. December 28, 1984; 3 hours; check #7677; gross - $21.90. f. November 30, 1984; 10 hours; check #7618; gross - $73.00. 24. You have stated that all work and services rendered was assigned by the other two supervisors and was work you actually performed on the roads or in the township building related to the roads. Mr. Irvin W. Tantl i nger Page 9 a. That you perceive that there is a difference between the duties of roadmaster and the duties of a supervisor. b. You claim that you did work on the budget on the instruction of the other two supervisors. c. That the time you spent working on the budget, was all related to the budget for the roads and, therefore, comes under the duties of a roadmaster. d. You have stated that you never charged the township for preparation of the budget not connected with the roads. e. Things that pertained to the budget for the roads were those dealing with supplies needed for a particular project such as asphalt, gravel etc. f. That you did perform work as a roadmaster, cleaning up roads, etc. That while you may not have actually touched the budget, you went out on the road and talked about what would be needed next year, and what would have to be allowed for in next years budget, with the direction of the other supervisors. h. That the three supervisors decided that you should spend time relative to the budget and the other two supervisors recommended that you turn in your hours. i . That the other supervisors didn't want anything to do with the budget, and that the township secretary had always done the budget in previous years. g. J. That you worked on the township budget many hours and did not charge the township for them. k. You stated that you only used the township medical insurance coverage a few times in the form of the Prescription benefit. 1. You stated that when you questioned the township paying for medical benefits for you since you were already covered in your full -time employment, the other supervisor told you to accept it since they wanted it to be there for the next person in office. Mr. Irvin W. Tantl i nger Page 10 25. Supervisor St. Clair stated that it was his opinion that you w ^re, in his opinion, doing work on the whole budget. a. That you were the only supervisor who got paid for this work because they threw this all at you and told you to work it out. b. That his definition of the budget is "what you did get in, what you anticipated getting in - that's the budget." c. That you did work on the roads with him sometimes doing tree removals, etc. 26. Supervisor Burkett stated that all three supervisors agreed that you should be paid for your time of working on the budget. a. That it was the only time you were paid for the budget in December, 1983, as far as he recalls. b. That he was not sure what account the budget work was charged to, probably some type of roadwork such as snow removal. c. His definition of budget is the township budget which includes where they hope to spend money and what they have spent, which is worked on in September and October to be finished by December for the following year. d. That everybody worked on the budget together, and that he has always had a part in it. e. He thinks the work that you did on the budget was in regard to the roads, although he was not positive. f. The supervisors did appoint you to work on the budget and agreed to pay you for that work. g. That the budget was worked on several times a year for the roads; they would look at each project and determine whether it was going to cost what they had originally planned that it would. h. That you did work on the roads when there had been high winds and bad rains and snowstorms, and there was alot of work to do. B. Discussion: As a Township Supervisor in Fairfield Township, you are a public official as that ,term is defined under the Ethics Act. Accordingly, Mr. Irvin W. Tantlinger Page 11 you are subject to the provisions of the Ethics Act and the restrictions therein are applicable to you. Section 3(a) of the Ethics Act provides: 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). Section 3(a) basically provides that a public official may not use his public office or confidential information to obtain a gain other than compensation provided for by law. The compensation which is allowed for a supervisor is strictly regulated by statutory and decisional law. See the discussion under Allegation III infra. Under Section 3(a) of the Ethics Act, this Commission has previously . determined that a township supervisor may not receive at the township's expense, health, hospitalization, medical and life insurance benefits when such supervisor acts only in the capacity of a supervisor. Krane, 84 -001; Cowie, 84 -010. Additionally, even if such a supervisor is employed by the township as a superintendent, secretary /treasurer, roadmaster or laborer in accordance with the Second Class Township Code, such benefits are considered compensation and must, therefore, be fixed as such by the township board of auditors. See Synoski v. Hazle Township, 93 Pa. Commw. 168, 500 A.2d 1282, (1985); In re: Appeal of the Auditors Report of Muncy Creek Township, Pa. Commw. Ct. , 520 A.2d 1241, (1987); Hunt, No. 348 -R. The foregoing principle was recently reaffirmed by Pennsylvania Commonwealth Court in Yocabet v. State Ethics Commission, Pa. Commw. A.2d (1987) filed at 834 C.D. 1986 on September 18, 1987. In the cited case, the Court held inter alia that a township supervisor violated Section 3(a) of the Ethics Act when he received a salary for the position of secretary /treasurer which had not been set by the auditors. The Court, in affirming the Order of the Ethics Commission which required a restitution of the financial gain, noted on page 5 of its Opinion: Section 7 of the Ethics Act instructs the Commission to investigate situations where there is a reasonable Mr. Irvin W. "Pant l i nger Page 12 belief that financial conflict may exist, and if conflict is found, to require the offender to remove himself from the conflict without gain. Any benefits received other than as provided for above, would constitute a financial gain obtained in violation of the State Ethics Act. See, McCutcheon v. State Ethics Commission, 77 Pa. Commw. 529, 466 A.2d 283, (1983); Conrad v. Exeter Township, 27 D & C 3d 253, (1983). These principles of law are now well settled and constitute the law under which this situation must be reviewed. See In Re: Report of Audit of South Union Township, 47 Pa. Commw. 1, 407 A.2d 906, (1979). In the instant situation, while you were an appointed township roadmaster and, therefore, eligible to receive the benefits in question, there would have to be the requisite approval by the township board of auditors for this to be considered part of your authorized compensation. See McCutcheon v. State Ethics Commission, supra. In 1984, the auditors, in fact, did fix insurance pension and hospitalization benefits as part of the compensation for working supervisors. For this year, there would have been no violation of the State Ethics Act. For the year 1983, the auditors make no mention of these benefits and thus, such would not have been receiveable through your public position. The amount of benefits paid out by the township for that year totaled, $1,749.33. We must note that for that year, you were surcharged and thus repaid the township $1,795.84. Thus, while there may have been a violation of the State Ethics Act, we do not believe that any further action should ensue in relation to your receipt of these benefits. We now must turn to your receipt as a "supervisor" of payments from township funds for work other than that relating to the township roads. Once again, referring to the foregoing "compensation analysis" it is clear that a supervisor, while eligible to be compensated for work relating to the position of roadmaster, may not receive compensation other than that specifically outlined in the law for performing the duties of an "elected supervisor." Here the findings show that in 1983, you claimed and were reimbursed for 28.5 hours for working on such things as the budget, meeting with the solicitor, discussions with other supervisors and correspondence. (Finding 18, 19). In 1984, you similarly received compensation for 7 hours for reviewing bills and discussions. (Finding 21g). Your rate of pay, at that time, was $54.40 per day or $6.80 /hour. You,_thus, used your position to receive $241.40 in compensation not provided by law. Mr. Irvin W. Tantl i nge r Page 13 It also should be noted that even if these benefits had been received in good faith, such would not be controlling. Good faith receipt of such benefits, even when based upon a solicitor's advice, will not alleviate the necessity of a public official reimbursing his governmental body for the receipt of a financial gain for which he was not entitled. See Allegheny County v. Grier, 179 Pa. 639, 36 A. 353, (1897); McCutcheon v. State Ethics Commission, supra; Kestler Appeal, 66 Pa. Comm. 1, 444 A.2d 761, (1982). As a result, this Commission believes that you must reimburse the township for this financial gain. The State Ethics Act provides 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). In addition to the above, the State Ethics Act provides that the Commission may forward the results of any investigation to the appropriate prosecuting authority unless the alleged offender removes himself from the conflict of interest by divesting himself of any financial gain received in violation of the State Ethics Act. 65 P.S. §407 9(iii). See also McCutcheon v. State Ethics Commission, supra; the Commission may order restitution of financial gains received in violation of the law. Yocabet v. State Ethics Commission, Supra. In view of all of the circumstances set forth above, you did receive a financial gain in violation of the Act, totaling $241.40, and that sum must be returned to the governmental body from which it was received. C. Conclusion and Order: 1. As a Township Supervisor in Fairfield Township, you are a "public official" subject to the provisions of the Ethics Act. Mr, Irvin. W, Tantlinger Paget /4 2. 'NO violated Section 3(a) of the Ethics Act by receiving $241.40 for work which was not compensation provided for by law because that work, was part of your official duties as township supervisor. 3. There was no violation of Section 3(a) of the Ethics Act regarding the insurance benefits as such were approved by the auditors in 1984. 4. While there was a violation for 1983, you did reimburse the township for that year and as such, we will take no further action in this matter. 5. You are hereby directed to remit to the State Ethics Commission, a check in the amount of $241.40 payable to the order of Fairfield Township within thirty (30) days of the date of this order, 6. The failure to remit the check in the amount of $241.40, to this Commission, within thirty (30) days of this order, will result in this Commission's referral of this matter to the appropriate law enforcement authority. Our files in this case will remain confidential in accordance with Section t8(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, t J.444„ -O G. Sieber Pancoast Chairman Mr. Irvin W. Tantlinger R.D. 1, Box 215 Bolivar, PA 15923 JJC /na cc: Public Binder STATE ETHICS COMMISSION 308 FINANCE BUILDING P.O. BOX 11470 HARRISBURG, PA 17108 -1470 TELEPHONE (717) 783 -1610 November 10, 1987 Re: Order No. 609, File No. 85 -156 -C Dear Mr. Tantlinger: On November 6, 1987, the State Ethics Commission received your payment for reimbursing Fairfield Township as required by Order No. 609. We have forwarded your check No. 5180 dated November 2, 1987 in the amount of $241.40 to the Fairfield Township. This letter will be made part of the Order and a public record as such. cerely S n .nt Exec ve Director