HomeMy WebLinkAbout626-R GromMr. Franklin L. Grom
c/o Daniel F. Glassmire
Glassmire & Shaffer Law Offices, P.C.
5 East Third Street, P.O. Box 509
Coudersport, PA 16915
Re: 86- 140 -C, 87 -072 -C
Dear Mr. Grom:
A. Findings:
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
ORDER OF THE COMMISSION
Order No. 626 -R
Date Decide: August 18, 1988
Date Mailed: September 13, 1988
The State Ethics Commission has received a complaint regarding
you and a possible violation of Act 170 of 1978. On June 15, 1988, a
hearing on the matter was conducted and relevant evidence and
testimony was presented. The Commission has now completed its
investigation. The individual allegations, conclusions, and findings
on which those conclusions are based are as follows:
I. Allegation: That you, 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.
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 1905, the township was interested in securing a cable
television service that would be available for township residents.,
Mr. Franklin L. Grom
sage c
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 thc
cable television contract.
a. December 1, 1985 - records reflect tha•'. an
ordinance /contract giving the Genesee Cable TV Costp. any a
franchise for Genesee Township is being reviewed by ths_ .
township solicitor and will be forthcoming.
b. December 28, 1985 - Supervisor Schweigart addressed
concerns of a citizen who thought that it might be a
conflict of interest if the Genesee TV Cable Company placed
its lead -in building on the property of Supervisor Franklf
Grom. The minutes reflect that Schweigart rontacted
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 h.ss
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 Gram and Dennis and Judy Cowburn.
a. The lease provided that the Grams would lease to the
Cowburns a 1/4 acre parcel of land directly behind the $t
house for a term of 99 years.
The consideration paid for this lease is free cable service
"per" month commencing on March 15, 1986.
6. On March 8, 1986, Genesee Township entered into a contract with
the Genesee Cable TV Company.
a. The contact granted to Genesee Cable TV Company an
exclusive franchise to transmit television signals to
township residents.
b The term of the contract was for 10 years.
c. The contract also provided a rate schedule as follows for
subscribers:
Mr. Franklin L. Grom
Page 3
First TV monthly base - $10.00
Showtime - $10.00
Second TV - $ 3.00
FM Radio Service - $ 2.00
Maximum First Time Installation Charge - $50.00
Reconnection - $15.00
Maximum Monthly Increase After First Year - 5% /per annum
(with supervisors approval)
7. Dennis W. Cowburn 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 with
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.
Mr. Franklin L. Gram
Page 4
h. Peangatelli wantec $6OO yearly vental fee, free cable hook-
up and monthly service.
c. Cowburn agreed to this -arrangement.
d. Mr. Peangatelli later amended his request to include
reimbursement for his current television reception
equipment.
e. " As a result of Mr. Peangat;elli's request, Mr. Cowburn did
not finalize the lease with him.
f. Mr. Peangatelli advised that your property was the second
best site and your lease terms were more favorable.
9. William A. Schweigart, Chairman of the Township Board of
Supervisors advised that he contacted the township sty ?icitor and was
assured that there was no conflict of interest on your port.
10, You provided the following information in relation to this
s: teat ion:
Mr. Cowburn, owner of Genesee Cable TV Company origin. -11y
attempted to negotiate a lease for tLe use of L.,ui.s
Peangatelli's land.
He was unable to consummate this lease and, thereafter,
approached you.
c. At a township meeting on December 7, 5985, a township
citizen questioned whether you had a conlict of interest.
d. You responded that you would resign if necessary so that the
township could secure the cable service.
e. Chairman of the Hoard 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
stated that he presented the matter to the solicitor who
assured him that this was no conflict of interest.
9-
You, thereafter, entered into the lease with Mr. Cowburn.
h. You asserted that you placed no pressure or influence on Mr.
Cowburn regarding his choice to lease your property.
Mr. Franklin L. Gram
Page 5
B. Discussion: As a Township Supervisor in Genesee Township, you are
a "public official" as that term is defined in the Ethics Act. See
Szymanowski, Opinion 87 -002. Accordingly, your conduct must conform
to the requirements of the Ethics Act and the restrictions therein
apply 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).
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; including a gift, loan,
political contribution, reward, or promise of
future employment based on any understanding that
the vote, official action, or judgment of the
public official or public employee or candidate
for public office would be influenced thereby. 65
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 two 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
Mr. Peangatelli who was the owner of the most suitable site for the
cable lead -in. Although Mr. Cowburn and Mr. Peangatelli 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
Mr. Franklin L. Grom
Page 6
use of your props: - t■ - as the 7. e. -d -in. After a cont•- :ct was entered
into between Mr. Cowburn and you and your wife, the matter tc provide
an exclusive franchise to the Genesee Cable TV Company came up for
motion before the township on April 5, 1986. At that time, you made
'he motion to sign the Cable TV Company contract which wcs seconded
and then unanimously approved by all the supervisors.
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 ether
hand, it is equally clear that you did make a motion and voted in
favor of that motion to award Genesee Cable TV an exclusive cable
franchise with the township. Based upon the foregoing circumst
this Commission finds that there is a technical violation of Section
Z(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 ovidence t*�
indicate that you solicited or accepted anything of value based on the
understanding that your vote, official acticn or judgement, as
public official, would be influenced thereby. AccorCingly, tLis
Commission finds that there is no violation of Section 3(b) of the
Ethics Act. It should be noted that if the value of tte 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. Findings:
11. Finding No. 1 is incorporated herein by reference.
12. You wife, Mary C. Gram,
Secretary /Treasurer.
is employed as the Genesee Township
a. She has served in this position since April 7, 1984.
13. Review of the minutes of the meetings of the Genesee Township
Supervisor provided that following pertinent information regarding the
appointment of your wife as township secretary /treasure:.
a. April 7, 1984 - Township supervisors voted to terminate the
appointment of Francis Wadsworth as township
Mr. Franklin L. Grom
Page 7
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 Schewigart and Burrell.
c. Mr. Wadsworth then asked for a roll call vote on the above.
Supervisors Schweigart said that a roll call vote was not
necessary because there 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 made
a motion to set Mary Grom's salary at $230.00 per month.
Records indicated that Supervisor Franklin Gram 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.
(ii) 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.
g
January 5, 1987 - Minutes reflect the following motions
being made:
trr. Franklin L. Grom
Page 8
(i) Supervisor Slingerland made a motion to non . r '-, ,°ary
Groin as temporary secretary. Supervisor Sc:Iwr rt
seconded this motion. All aye:.
(ii) Supervisor Schweigart made a motion to nominate Nary
Grom as permanent secretary /tre<:surer. Supervisor
Singerland seconded the motion. All ayes.
(iiiD Supervisor Schweigart made a motion to confirm the
appointments of the aforesaid persons to the o`fices to
which they were appointed. Supervisor Franklin Grom
seconded this motion.
(iv) .upervisor Schweigart made a motion to leave the
secretary /treasurer's salary the same as last year,
which was $250.00 per month. Supervisor Slim _rland
seconded this motion. All ayes.
14. Township payroll records for Mary Groin reflect the following
:Iertinent information:
a. 1984
b. 1985
" EAR DATE GROSS PAY NET PAY
April 7 thru May 5 $200.00
May 5 thru June 9 $200.00
July 7, 1984 5200.00
August 4, 1984 $200.00
September 8, 1984 $200.00
October 6, 1984 $200.00
November 10, 1984 $200.00
December 8, 1984 $200.00
January 7, 1985
February 9, 1985
March 8, 1985
April 3, 1985
May 1, 1985
June 5, 1985
July 6, 1985
August 7, 1985
September 3, 1985
October 5, 1985
November 6, 1985
December 4, 1985
$200.00
$230.00
$230.00
$230.00
$230.00
$230.00
$230.00
$230.00
$230.00
$230.00
$230.00
$230.00
$101.30
$181.30
$131.50
$181.50
$181.50
$131.50
$181.50
$181.50
$181.00
$206.14
$206.14
$206.14
5206.14
$206.14
$206.14
$206.14
$206.14
$206.14
$206.14
$206.14
Mr. Franklin L. Grom
Page 9
c. 1986
d. 1987
January 6, 1986
February 8, 1986
March 5, 1986
April 1, 1986
May 6, 1986
June 4, 1986
July 9, 1986
August 6, 1986
September 8, 1986
October 6, 1986
October 31, 1986
December 8, 1986
5230.00
3250.00
$250.00
$250.00
$250.00
$250.00
$250.00
5250.00
$250.00
$250.00
$250.00
$250.00
January 5, 1987 $250.00
February 4, 1987 $250.00
March 3, 1987 $250.00
April 1, 1987 $250.00
May , 1987 $250.00
June 2, 1987 3250.00
July 7, 1987 $250.00
August 5, 1987 $250.00
September , 1987 $250.00
October 6, 1987 $250.00
15. William Schweigart provided the following:
$206.26
5222.37
$222.37
$222.37
$222.37
$222.37
$222.37
3222.37
$222.37
$222.37
$222.37
$222.37
$222.37
5222.37
$222.37
$222.37
$222.37
5222.37
$222.37
$222.37
$222.37
$222.37
a. The following information was given to a State Ethics
Commission Investigator:
(1) He was instrumental in seeking the termination of the
previous township secretary /treasurer.
(2) The minutes of the supervisors' meeting accurately
reflect what took place.
(3) He and Mr. Grom made unwitting mistakes because they
did not know when they should abstain from voting.
(4) In many situations "all ayes" would be reflected in the
minutes because no township supervisor overtly opposed
a motion.
b. The following testimony was given at a hearing before the
State Ethics Commission:
Mr. Franklin L. 3c'om
Page 10
(1) That he and supervisor Burrell were primarily
dissatisfied with the former secretary /treasurer of the
township.
:2) That you did not comment upon the matter because he anc'
Mr. Burrell were familiar with the secretary /treasurer
p:
(3) Following the vacancy of the position of
secretary /treasurer, four or five people were asked to
fill the position but refused.
(4) He and Mr. Burrell had considered Mary Grom whn had
bookkeeping experience.
(5) As to the motion to hire Mary Grom, a motion was made,
everyone was agreeable and she was hired.
16. You provided the following:
a. The following information was given to a State Ethics
Commission Investigator:
(1) You voted to terminate the former township
secretary /treasurer.
(2) You acknowledge that the minutes for 1 °84 through x.986
accurately reflect your actions in relation to your
wife.
(3) You were not aware of any significance in taking
action as township official that related to your wife
in 1984 through 1986.
(4) In January, 1987, you were silent during the meeting
when your wife was appointed secretary /treasurer.
(5) You assert that you did not vote for your wife at that
meeting even though the minutes reflect the vote as
"all ayes
(6) You did not intend to violate the Ethics Act.
b. The following testimony was given at a hearing before the
State Ethics Commission:
(1) That you were not involved in the initial
consideration of your wife for the position of
secretary /treasurer and that you were not interested in
having her accept the position.
Mr. Franklin L. Gram
Page 11
(2) That you realize now that you should not have voted for
your wife, that you have learned the word "abstain" and
what it means and that you will never vote, but
abstain, on anything that would cause a conflict of
interest.
(3) You thought that the prior secretary /treasurer was
doing a good job but Mr. Schweigart and Mr. Burrell
believed that a replacement should be found.
17. Mary Grom provided the following:
a. The following information was provided to a State Ethics
Commission Investigator:
(1) She stated that you did not make or second the motion
to appoint her at the January 5, 1987 meeting of the
township supervisors.
(2) She stated that she erred in recording "all ayes" in
the minutes.
(3) She became aware of this error after the supervisors
approved the minutes at a subsequent meeting.
b. The following testimony was given at a hearing before the
State Ethics Commission:
(1) Bill Schweigart approached her regarding the position
of secretary /treasurer in light of her accounting
training.
(2) That you did not try to get her to take the job and
that you would have probably preferred that she did not
take the position.
(3) That she worked hard in the position and put in much
time.
B. Discussion: As previously noted, you are a public official
subject to the provisions of the State Ethics Act. Section 3(a)
quoted above, specifically 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.
"Immediate family." A spouse residing in the person's
household and minor dependent children. 65 P.S. 402.
Franklin L. Groat
Page 12
In the instant situation, after the termination of the Irmer
township secretary /treasurer, the minutes of the G Township
Supervisors reflect that on April 7, 1984, your wife was appointed by
unanimous vote to fill the vacancy of township secretary treasur .
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 'cu
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 month.
ror the following 1986 year, you again made 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 month 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
:°per 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.
Instead of abstaining from voting on the annual appointments of
your wife to a township position, you used public office by making
m2tions, seconding motions, voting to appoint and voting to confirm
the appointment of your wife and fix her salary for her position. As
a result of your actions, you received a financial gain r 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, Order 356 -R, this Commission specifically found a violation
of Section 3(a) of the Ethics Act when the mayor of 71 borough voted
against limiting his wife's salary as building inspector. See also,
Rueinski, Order 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
"imoadiate family ". See also O'Reilly /Johnston, Opinion 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,
Mr. Franklin L. Grom
Page 13
the confirmation of her appointment and the setting of her salary. In
1987, the official documents do reflect you as participating in the
township decisions regarding your spouse.
You argue that there was no intent to obtain a financial gain in
violation of the Ethics Act. In Yocabet v. State Ethics Commission, _
Pa. Commw. Ct. ___, 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 noted on page 539 of its Opinion:
"Petitioner next argues that since it was not his
intention to use his office to obtain financial
gain, he could not be in violation of Section 3(a)
of the Ethics Act. This argument does not
withstand analysis"
"...the Commission did not err in determining
Petitioner violated Section 3(a), even if he did
not intend to."
You also argue that your vote was not the deciding vote. The
foregoing argument was made, considered and rejected in McCaigue,
Order 392 wherein this Commission noted that abstention is required
under Section 3(a) of the Ethics Act. You voted and that action
transgressed Section 3(a).
C. Conclusion and Order:
1. As a Township Supervisor for Genesee Township, you are a
public official subject to the provisions of the State
Ethics Act.
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. The 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,
Mr. Franklin L. G om
Page 14
confirming her appointment and setti. her • .glary as
temporary or permanent secretary/treasurer o-° the township
for the years 1984 through 1987.
4. This matter will be referred to the appropriate authority
for review and determination as to whether any further
z-tion should be initiated.
Our files in this case will remain confidential in accordance
t -°ith Section 8(a) of the Ethics Act, 65 P.S. 408(a). However, this
ii! der is final and will be made available as a public c#ocum nt 5
business days after service (defined as mailing).
Any person who violates the confidentiality of a Commission
proceeding is guilty of a misdemeanor and shall be fined "'.r:t more than
to ;I,000 or imprisoned for not more than one year or both, sc..�e 65 P-.S.
409(e). The confidentiality provision does not restrict rc3pondents
-;onsultation with legal counsel.
By the Commission,
v \L
Joseph W. Marshall, YII
Chairman