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