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HomeMy WebLinkAbout626 GromDear Mr. Grom: Mr. Franklin L. Grom Grover Hollow Road Genesee, PA 16923 Re: 86- 140 -C, 87 -072 -C STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION Order No. 626 DATE DECIDED: DATE MAILED: 12/14/87 12/28/87 The State Ethics Commission has recen °' ^~ you and a iciss 1;:j U, 11376. i�i.J .. vuua i.:J,vii i. ,f vr, .nnfiCbCU il.J investigation. The individual allegations, conclusions, and findings on which those conclusions are based are as follows: I. Allegation: That you, a Genesee 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 gained through that office to obtain financial gain and Section 3(b) of the Ethics Act which prohibits a public employee, public official or candidate from offering, soliciting or accepting anything of value based on an understanding that the vote, official action or judgment of the public official, public employee or candidate will be influenced in that you voted to award a franchise in the township to a cable company after entering into an agreement with that company whereby you would receive free cable hook -up and monthly service in return for the right to install a cable receiver on your property. A. Findings: 1. You serve as a Township Supervisor in Genesee Township, Potter County, Pennsylvania. a. You have served in this position from 1984 to the present. 2. In 1985, the township was interested in securing a cable television service that would be available for township residents. Mr. Franklin L. Grom Page 2 3. The township explored the possibility of entering into a contract with the Genesee Cable Television Company for the provision of this service. 4. Review of the minutes of the meetings of the Genesee Township Board of Supervisors provided the following information regarding the cable television contract. a. December 1, 1985 - Records reflect that an ordinance /contract giving the Genesee Cable TV Company a franchise for Genesee Township is being reviewed by the township solicitor and will he forthcoming. b. December 28, 1985 Supervisors Schweigart addressed concerns of a citizen who thought that it might he a conflict of interest if the Genesee TV Cable Company placed its lead -in building on the property of Supervisor Franklin Grom. The minutes reflect that Schweigart contacted Solicitor Bruce Cahilly and that Cahilly assured him that there would be no conflict of interest. c. April 5, 1986 - Supervisor Franklin Grom made a motion to sign the TV Cable contract as soon as the solicitor has approved one for us to sign. This was seconded by Supervisor Slingerland. All ayes. 5. A real estate lease was executed on March 2, 1986 between Frank and Mary Grom and Dennis and Judy Cowhurn. a. The lease provided that the Groms would lease to the Cowhurns a 1/4 acre parcel of land directly behind the Grom house for a term of 99 years. b. The consideration paid for this lease is free cable service "per" month rnmm nci ng on March 15, 1986. 6. On March 8, 1986, Genesee Township entered into a contract with the Genesee Cable TV Company. a. The contract granted to Genesee Cahle TV Company an exclusive franchise to transmit television signals to township residents. E. The ter of the contract was for 10 years. c. The contract also provided a rate schedule as follows for subscribers: First TV monthly basE - $10.00 Showtime - 10.00 Mr. Franklin L. Groin Page 3 - Second TV FM Radio Service Maximum First Time Installation Charge Reconnection c . Cowburn agreed to t h i s arrangement. - 3.00 - 2.00 - 50.on - 15.00 Maximum Monthly Increase After First Year - 5% /per annum (with supervi sors approval) 7. Dennis W. Cowhurn is the principal operator of Genesee Cable TV Company. a. This company has only one contract to date, that being with Genesee Township. b. Mr. Cowburn originally sought to use the property of Mr. Louis Peangatelli to bring a lead -in cable because his was the best site. c. Mr. Peangatelli wanted $600 a year for the use of his land, free television hook-up and service fee and reimbursement for the equipment that Peangatelli already was using on his property. d. The arrangement with Peangatelli was not consummated and Mr. Cowburn, thereafter, made arrangements to use his second choice for the lead -in cable location. e. You were the owner of this property. f. Mr. Cowburn discussed a potential conflict of interest :: i th you and you stated that if such existed, you would resign your position. g. You received free cable hook- up.(worth.$50.00) and free monthly service (worth $26.50) for the lease of your land. 8. Mr. Peangatelli provided the following information in relation to this situation: a. Mr. Cowburn approached him seeking to lease his land for a lead -in cable TV site. - b. Peangatelli wanted $600 yearly rental fee, free cable hook -up and monthly service. Mr. Fr ankl i :1 L. Grom rage 4 d. Mr, Peangatelli later amended his request to include reimbursement for hi c tele :i sion reception equipment e.• As a result of Mr. Peangatelli's request, Mr. Cowburn did no; finalize the lease with him. f. Mr. Peangatelli advised that your property was the second b site and your lease terms were more favorable. 9. William A. Schweigart, Chairman of the Township Board of Supervisors advised that he contacted township solicitor and was assured that there was no conflict of interest on your part. 10. You provided the following information in relation to this situation: a. Mr. Cowburn, owner of Genesee Cable TV Company originally attempted to negotiate a lease for the use of Louis Peangatelli's land. b. He was unable to consummate this lease and, thereafter, approached you. c. At a.township meeting on December 7, 1985, a township citizen questioned whether you had a conflict of interest. d • You responded that you would resign if necessary so that the township could secure the cable service. e. Chairman of the Board of Supervisors, William Schweigart, offered to contact the township solicitor as to whether this situation presented any conflict of interest. f. At a township meeting of December 28, 1985, Mr. Schweigart statgd that he presented the matter to .the solicitor who assured him that this was no conflict of interest. g Yen thereafter. entered into the lease with Mr. Cowburn. Vu 11\.1 l.Ul bCl , e 111.V1 �. �. into bill, lease III I,h 1 • Con b,rl n. h. You asserted that you placed no N 1 e.»ure or influence on Mr. Cowburn regarding his choice to lease your property. B. Discussion: As a Township Supervisor in Genesee Township} you are a "pub Tic f f i 111 that term Act. �S. See Sz N 1.,,�1 c official" ,ci al as �ha� germ i s defined i n the Ethics nc�. JCC J�ymanuW5k 7 , 87 -002. Accordi ngly, your conduct must conform to the requirements of the Ethics Act and the restrictions therein apply to you. Per. Franklin L. Grom Page 5 • rte n yt 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). It is further provided in Section 3(b) of the Ethics Act: Section 3. Restricted activities. (b) No person shall offer or give to a public official or public employee or candidate for public office or a member of his immediate family or a business with which he is associated, and no public official or public employee or candidate for public office shall Solicit or accept, anything of value in,clu inn gift, loa t, poi _'jai contribution, reward, or promise of future employment based on any understanding that the vote, official action, or judgment of the p u b l i c official or public employee or candidate for public office would be influenced thereby. . 6s P.S. 403(b). In the instant situation, you made a motion and voted in favor of giving the Genesee Cable TV Company a sole franchise to the township after you leased a portion of your premises to the said Cable TV Company in return for free cable service for yourself. The facts reflect that there were Iwo suitable sites for the cable service lead -in and that your property was the second suitable site. Mr. Cowburn, who is the operator of the Genesee Cable TV Company, negotiated with r-ir. Peangatelli who was the owner of the most. suitable site for the cable lead -in. Although Mr. Cowburn and Mr. Peangateili preliminarily entered into an agreement, the matter was not consummated because Mr. Peangatelli then imposed an additional condition that Mr. Cowburn reimburse him for his existing television reception equipment. It was only after the failure to finalize a contract occurred between Peangatelli and Cowburn that Mr. Cowburn approached you regarding the use of your property as the lead -in. After a contract was entered into between Mr'. Cowburn and you and your wife, the matter to provide an exclusive franchise to the Genesee Cable IV Company came up for a motion before the township on April 5, 1986. At that time, you made the motion to sign the Cable TV Company contract which was seconded and then unanimously approved by all of the supervisors,." Mr. Fra :ikl i n L. Grom Page 6 In this case, it is clear that you would not have been involved in this case but for the fact that the Peangatelli /Cowburn negotiations fell through and but for the fact that your land was the second alternate suitable site for the cable lead -in. On the other hand, it is equally clear that you did make a motion and voted in favor of that motion to a;;ard Genesee Cable TV an exclusive cable franchise with the townhip. Based upon the foregoing circumstances, this Commission finds that there is a technical violation of Section 3(a) of the Ethics Act but will take no further action in relation thereto. As to Section 3(b) of the Ethics Act, there is no evidence to indicate that you solicited or accepted anything of value based on the understanding that your vote, official action or judgement, as a public official, would be influenced there by. Accordingly, this Commission finds that there is no violation of Section 3(b) of the Ethics Act. It should be noted that if the value of the services and other benefits received from the Cable TV Company as rent for your land are in excess of $500 in any given year you must report such as income on your Statement of Financial Interests. II. Allegation: That you, a Genesee 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 gained through that office to obtain financial gain, when you voted to appoint your wife to the position as township secretary /treasurer and subsequently, voted to set her salary and salary increases. A. i ndi ngs : 11. Finding No. 1 is incorporated herein by reference. 12. Your wife, Mary C. Grom, is employed as the Genesee Township Secretary /Treasurer. a. She has served in this position since April 7, 1984. 13. Review of the minutes of the meetings of the Genesee Township Supervisors provided the following pertinent information regarding the appointment of your wife as township secretary /treasurer. a. April 7, 1984 - Township supervisors voted to terminate the appointment of Francis Wadsworth as township secretary /treasurer as of 12:30 p.m., April 7, 1984 on motion by Supervisors Schweigart and Burrell. b. Township Supervisors then voted to appoint Mrs. Mary Grom as township secretary /treasurer as of 12:30 p.m., April 7, 1984 on motion of Supervisors Schweigart and Burrell. Mr. Franklin L. Grom Page 7 - c. Mr. Wadsworth then asked for a roll call vote on the above. Supervisors Schweigart said that a roll call vote was not necessary + "f "'2 had been no nay vote. Records indicated that Mr. Wadsworth then asked if the vote was unanimous. Records indicated that Supervisors Schweigart answered affirmatively to this question. Records indicated there was no dissent thereafter. d. January 7, 1985 - At a township organization meeting, Supervisors Schweigart said nominations are now open to appoint a temporary secretary. Records reflect that Supervisor Franklin Grom made a motion to appoint Mary Grom as temporary secretary. Supervisor Burrell seconded this motion. All ayes. e. Supervisors Schweigart said motions are now open to set the salary for the secretary/treasurer, Supervisor Burrell mad, Mary u r Supervisor Franklin Grom seconded this motion. All ayes. f. January 6, 1986 - Organizational meeting. The following township appointments were made: (i) Franklin Grom made a motion to appoint Mary Grom as temporary secretary. Supervisor Slingerland seconded this motion. All ayes. Supervisor Slingerland moved to appoint Mary Grom as secretary /treasurer. Supervisor Franklin Grom seconded this motion. All ayes. Supervisor Franklin Grom made a motion that all the aforementioned appointments be confirmed. Supervisor Slingerland seconded this motion. All ayes. (iii) Supervisor Slingerland made a motion to set the secretary /treasurer's salary at $250.00 per month. Supervisor Schweigart seconded the motion. All ayes. j. January 5, 1987 - Minutes reflect the following motions being made: (i) Supervisor Slingerland made a motion to nominate Mary Grom as temporary secretary. Supervisor Schweigart seconded this motion. All ayes. (ii) Supervisor Schweigart made a motion to nominate Mary Grom as permanent secretary /treasurer. Supervisor Slingerland seconded the motion. All ayes. (iii) Supervisor Schweigart made a motion to confirm the appointments of the aforesaid persons to the offices to which they were appointed. Supervisor Franklin Grom seconded this motion. Mr. Franklin L. Grom Page 8 , (iv) Supervisor Schweigart made a motion to leave the secretary /treasurer's salary the same as last year, which was $250.00 per month. Supervisor Slingerland seco this motion. All ayes. 14. Township payroll records for Mary Grom reflect the following pertinent information: YEAR DATE GROSS PAY NET PAY a. 1984 b. 1985. c. 1986 April 7 thru May 5 $200.00 $181.30 May 5 thru June 9 200.00 18130 July 7, 1984 200.00 181.50 August 4, 1984 200.00 181.50 September 8, 1984 200.00 181.50 October 6, 1984 200.00 181.50 November 10, 1984 200.00 181.50 December 8, 1984 200.00 181.50 January 7, 1985 200.00 181.00 February 9, 1985 230.00 206.14 March 8, 1985 230.00 206.14 April 3, 1985 230.00 206.14 May 1, 1985 230.00 206.14 June 5, 1985 230.00 206.14 July 6, 1985 230.00 206.14 August 7, 1985 230.00 206.14 September 3, 1985 230.00 206.14 October 5, 1985 230.00 206.14 November 6, 1985 230.00 206.14 December 4, 1985 230.00 206.14 January 6, 1986 230.00 206.26 February 8, 1986 250.00 222.37 March 5, 1986 250.00 , 222.37 April 1, 1986 250.00 222.37 May 6, 1986 250.00 22.2.37 June 4, 1986 250.00 222.37 July 9, 1986 250.00 222.37 August 6, 1986 250.00 222.37 Mr. Franklin L. Grom Page 9 d. 1987 September 8, 1986 250.00 222.37 October 6, 1986 250.00 222.37 October 31, 1986 250.00 222.37 December 8, 1986 250.00 222.37 January 5, 1987 250.00 222.37 February 4, 1987 250.00 222.37 March 3, 1987 250.00 222.37 April 1, 1987 250.00 222.37 May , 1987 250.00 222.37 June 2, 1987 250.00 222.37 July 7, 1987 250.00 222.37 August 5, 1987 250.00 222.37 September , 1987 250.00 222.37 October 6, 1987 250.00 222.37 15. William Schweigart advised as follows: a. He was instrumental in seeking the termination of the previous township secretary /treasurer. b. The minutes of the supervisors' meeting accurately reflect what took place. c. He and Mr. Grom made unwitting mistakes because they did not know when they should abstain from voting. d. In many situations "all ayes" would be reflected in the minutes because no township supervisor overtly opposed a motion. 16. You provided the following information in relation to this situation: a. You voted to terminate the former township secretary /treasurer. b. You acknowledge that the minutes for 1984 through 1986 accurately reflect your actions in relation to your wife. c. You were not aware of any significance in taking action as a township official that related to your wife in 1984 through 1986. d. In January, 1987, you were silent during the meeting when your wife was appointed secretary /treasurer. e. You were aware that you should abstain because of a similar situation that occurred at that time in Potter County. Mr. Franklin L. Grom Page 10 f. You assert that you did not vote for your wife at that meeting even though the minutes reflect the vote as "all ayes ". g. You did not intend to violate the State Ethics Act. 17. Mary Grom stated that you did not make or second the motion to appoint her at the January 5, 1987 meeting of the township supervisors. a. She stated that she erred in recording "all ayes" in the minutes. b. She became aware of this error after the supervisors approved the mi nutes at a subsequent meeting. B. Discussion: As previously noted, you are a public official subject to the provisions of the State Ethics Act. Section 3(a), quoted above, basically provides that a public official shall not use his public office to obtain a financial gain other than compensation provided for by law for himself or for a member of his "immediate family ". Section 2. Definitions. "Immedi ate family." A spouse residing in the person's household and minor dependent children. 65 P.S. 402. In the instant situation, after the termination of the former township secretary /treasurer, the minutes of the Genesee Township Supervisors reflect that on April 7, 1984, your wife was appointed by a unanimous vote to fill the vacancy as township secretary /treasurer. This was shortly after you became a township supervisor. Your wife had not previously been employed by the township. Thereafter, on January 7, 1985, you made and then voted in favor of a motion to appoint your wife as temporary secretary. You also seconded and voted in favor of a motion which fixed your wife's salary at $230 per mor'ith. For the following 1986 year, you again ma -de the motion to appoint your wife as temporary secretary and voted in favor of that motion. Thereafter, you made a motion and voted in favor of that motion which confirmed the appointments. You also voted in favor of setting your wife's monthly salary at $250 per month. Lastly, for the 1987 year, you not only voted in favor of the motion which nominated your wife as temporary secretary but you also voted in favor of the nomination to appoint your wife as permanent secretary /treasurer. You also seconded and voted for the motion to confirm the appointments which included your wife; you also voted in favor of the $250 per rponth salary of your wife. Parenthetically, although you state that you were silent in the January 1987 meeting regarding your wife's appointment and although your wife states that you did not second a motion regarding her appointment to the position, the minutes of the township reflect the contrary. Further Mr. Schweigart has stated that the minutes accurately reflect what occurred at the supervisors' meeting. Mr. Franklin L. Grom Page 11 Instead of abstaining from voting on the annual appointments of your wife to a township position, you used your public office by making motions, seconding motions, voting to appoint and voting to confirm t -- ntment of your wife and fix her salary for her position. As a result of your ..ctlon, you received a financial gain which was other than compensation provided for by law. Based upon the above, it is the decision of the Commission that there has been a violation of 3(a) of the Ethics Act. Our conclusion is in accord with prior orders and opinions of the Commission. In Rockovich, 356 -R, this Commission specifically found a violation of Section 3(a) of the Ethics Act when the mayor of a borough voted against limiting his wife's salary as building inspector. See also, Rupinski, 338, wherein this Commission found that there was an appearance of a conflict of interest with the public trust in the case where a borough councilman voted in favor of hiring his son as a borough employee in the street department, even though the son was neither a minor nor a dependent as provided in the definition of "immediate family ". See also, O'Reilly /Johnston, 83 -012. Although there are contradictory statements for the 1987 year, it is clear for the years from 1984 through 1986 that you did make, second or vote for motions relative to the appointment of your wife, the confirmation of her appointment or her salary. In 1987, the official documents do reflect you as participating in the township decisions regarding your spouse. The gain which you received for a member of your immediate family which was compensation other than as provided for by law amounts to $9,810.00. In Yocabet v. State Ethics Commission, Pa. Cmwlth. , 531 A.2d, 536 1987, Commonwealth Court held 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, affirming the Order of the Ethics Commission which required a restitution'of the financial gain, noted on page 536 of its Opinion: "Section 7 of the Ethics Act instructs the Commission to investigate situations where there is a reasonable belief that financial conflict may exist, and if conflict is found, to require the offender to remove himself from the conflict without gain." (Emphasis supplied.) See also McCutcheon v. State Ethics Commission, 77 Pa. Cmwlth-. 529, 466 A.2d 283 (1983). Accordingly, this Commission directs you to make restitution by mailing a check to this Commission within thirty (30) days of the date of this order payable to Genesee Township in the amount of $9,810.00. Failure to remit the foregoing amount will result in the referral of this matter to the appropriate law enforcement authorities for civil or criminal proceedings. Additionally, we believe that a 1U%o penalty must be assessed to this amount. Thus, the total restitution required equals $10,791.00. Mr. Franklin L. Grom Page 12 C. Conclusion and Order: 1. As a Township Supervisor for Genesee Township, you are a public official s 1 to e provisions of the State Et_:;: 2. There was a technical violation of Section 3(a) of the Ethics Act, but no violation of Section 3(b), when you voted to award an exclusive TV Cable franchise to a company after entering into a lease agreement with that company for a cable service lead -in on your real estate in return for free cable service. This Commission will take no further action on this particular violation. You must, however, report the Cable TV Company as a source of income if such is in excess of $500. 3. You violated Section 3(a) of the Ethics Act when you moved, seconded or voted in favor of appointing your wife, confirming her appointment and setting her salary as temporary or permanent secretary /treasurer of the township for the years 1984 through 1987. 4. You are hereby directed within thirty (30) days to remit a check in the amount of $10,791.00 to this Commission payable to Genesee Township which equals the amount of gain that you received as a result of your voting to appoint your wife and voting to set her salary for the years 1984 through 1987. 5. Failure to remit the sum of $10,791.00 within thirty (30) days of this order w i l l result in the referral of this matter to the appropriate law enforcement authorities for further civil or criminal proceedi ngs. Our files in this case w i l l remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 408(a). However, this Order isvfinal 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, .8 . ' 9 4's' 19.44 cara"Y G. Sieber Pancoast Chai rman