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HomeMy WebLinkAbout631 CottleMr. Forrest Cottle R.D. #1 Jefferson, PA 15344 Re: 85 -158 -C Dear Mr. Cottle: f _44 ) L - R STATE ETHICS COMMISSION 305 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION Order No. 631 Date Decided: March 10, 1988 Date Mailed: March 16, 1988 The State 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. Allegation: That you, a member of the Southwestern Water Authority, 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, in that you influenced the removal of a Southwestern Water Authority member because he voted to end the bonuses that were annually awarded to the employees of the authority Which included your sons. A. Findings: 1. You have served as a member of the Southwestern Water Authority since 1981. You are currently serving a second five year term. a. You were appointed to the authority by the Jefferson Township Supervisors. b. You also have served as a Jefferson Township Auditor for the past eleven years. Fr. . f •rr > t rtt. F. The Southwe tern '•' t er Authority is compr i. ;e'd of even r or s. Four .,pc; intments are made by the Je r ferron rownsh) E:upervisort; and three rppoi;rtments are made by the Jefferson 3ornugh Council. P. You hive two sons who have been or are currently employed ')y the authority. a. Eric Cottle was hired for summer employment and 'Irked in 1982 and 1984. Starting date: June 7, 1982. Age: 24. Earnings: 1982 - $1,133.13, Pay rate: $3.50/hour. 1984 - $1,904.25, Pay rate: $3.50 /hour. b. Timothy Cottle was hired'part -time, and was prrmot.Rd to full - time. He is currently employed in a m:r;alement position. Application date: February 7, 1984. Age! 27, Date of Birth: June 30, 1963. Earnings: 1984 - not noted. 1985 - $26,382.08, pay rate fluctuates. 1986 - $28,001.62, $11.60/$11.35/x, our. r. As a management employee, Timothy Cottle's rite of pay is affected by wage increases of administrave and management personnel and by year -end bonuses. 4. The Southwestern Water Authority Board meeting minutes reflect the following in regard to the hiring of your sons and s 'ting of salaries: a. April 1, 1982 - motion was made to hire the following boys for summer work at a rate of $3.50 /hour: Rumancik, Sahady, Devecka, Zeglen, Kurtyka, Schifko, Sommers, Elliott, Confortini, Davis, Cottle (Eric), Faddis (William), and Korcheck. The motion was unanimously adopted, the following members were present: Parker, Tekavec, Harvey, Barno, Cottle, Yourcheck, Palone. -�. April 7, 1983 - motion was made to hire the following persons for summer help,at a rate of $3.50 /hour: Broadwater, Cottle (Eric), Davis, Devecka, Elliott, Faddis (William), Korcheck, Kurtya, Sahady, Sommers, Tekavec (Scott), Yod`rs, Zeglen, Dean. The motion was unanimously adopted with the following members present: Parker, Tekavec, Harvey, Barno, Yourcheck, Palone, Cottle. Mr. Forrest Cottle Page 3 c. March 1, 1984 - motion made to approve Timothy Cottle for physical and to authorize Simatic to place Cottle as a temporary employee after receiving a favorable report from the Doctor, with his wage was set at $7.00 per hour. The motion was unanimously adopted with the following members present: Parker, Tekavec, Harvey, Cottle, Barno, Faddis, Palone. d. April 10, 1984 - motion made for recommendation of the following men to be hired for the summer provided they present proof of matriculation or attendance at a college or university: Bates, Block, Broadwater, Eric Cottle, Elliott, Tim Faddis, William Faddis, Haney Mosier, Rumancik, Sahady, Scott Tekavec, Virgin, Yoders. At a rate of $3.50 /hour. The motion was unanimously adopted with the following members present: Parker, Tekavec, Cottle, Barno, Harvey, Palone. e. March 7, 1985 - motion made that Timothy Cottle be assigned to the main office as an Assistant, to be effective March 4, 1985, at a salary of $ /year. The motion was unanimously adopted with the following members present: Parker, Tekavec, Cottle, Barno, Harvey, Palone, and Faddis. 5. Minutes. -of the authority meetings and board members further disclose that in 1985, considerations were given to changing the salary structures for management personnel. Minutes confirm the following :, a. June 6, 1985 - Chairman Parker appoints Harvey and Tekavec to a committee to review the manager's suggested increases in administrative and secretarial salaries. (Note: this would directly affect the salary of your son, Timothy). b. July 10, 1985 - Motion is made by you and seconded by Faddis to adopt the management salary recommendations, and that Simatic be granted a $2,600.00 raise for each year for the next two years, and that Shelly Gmutza receive an additional $500.00 over and above that which Mr. '"orresst Cottle rage 4 N, recommended by the management c. rrcomme"ndations. The above recommendations allowed fo tLe following ¢.salary adjustments for Timothy Cottl, Base salary: $20,800.00. Proposed increase: $4,620.00. New salary: $25,420.00. Voting for the motion: Cottle and Faddis. Voting against the motion: Palone, Tekavec, Barra and P rker. Motion denied. c. Au;ust 1, 1985 - After discussion, a motion is made by Harvey and seconded by Barno to adopt the salary schedule contained in the report of the salary committee as shown in Exhibit "A." The new salary recommendations allowed for the same salary adjustments for Timothy Cottle as proposed in the July recommendations. Voting for the motion: Barno, Harvey, Palone:, Parker Voting against the motion: Faddis.• Abstaining: Cottle. d. December 5, 1985 - After considerable discussion concerning the extraordinary efforts of the management -, rsonnel of the authority. throughout 1985, and those 'fforts related to the flood emergency, it was resolved to pay an additional month's salary by way of a bonus to the management personnel for the aor oment;.oned services. (1) The amount of bonus that Timothy Cottle received as a result of the above motion: $2,118.34. The motion was unanimously adopted with the following members present: Parker, Barno, Faddis, Harvey and Palone. e, December 4, 1986 - motion made for the following supervisory personnel to receive an extra month's salary in the form of a'bonus: Bartoletti, Belan, Buskirk, Coneybeer, Tim Cottle, Gacek, Holupka, Simatic. The following members voted in favor of the motion: Parkr'r, Barno, Faddis, Hannigan, Palone, Harvey. Mr. Forrest Cottle Page 5 6. As a result of Chairman Parker's appointment at the June 6, 1985 meeting of a committee to review administrative salaries, (refer to finding 5(a)) a committee meeting was scheduled before the next authority meeting of July 10, 1985. 7. Interviews with authority members Tekavec, Harvey and Parker, and Authority Manager Simatic, confirmed the following regarding the committee and meetings: a. Prior to the motion, the minutes reflect that Cottle departed for the expressly stated purpose of not taking part in any discussions concerning the grant of payment to supervisory personnel. The minutes also reflect that member Cottle was absent and, therefore, did not vote. When committees are formed, usually only the chairman and the committee members attend and participate in the discussions. b. The meeting occurred sometime in June, 1985. In attendance were you, board members Faddis, Tekavec, Harvey and Joseph Simatic. No minutes of that meeting were kept. c. Chairman Parker did not attend this meeting. d. Tekavec, Harvey and Simatic agreed that you and Faddis participated in the discussions regarding the salaries of all non -union personnel. This was considered urlusua l . e. The salary discussions would have affected any increases for your son. 8. Minutes of the Southwestern Water Authority Board meetings also disclosed the following: a. May 6, 1982 - discussion to eliminate overtime at the plant. b. November 3, 1983 - upon-the manager's recommendation, a motion was made and unanimously adopted for management personnel to be paid a one month bonus for overtime worked. c. November 1, 1984 - a motion was made to pay a month's salary for overtime to Bartoletti, Belan, Buskirk, Holupka, Coneybeer, Gacek and Simatic. 11„ Mr. Forre ;t �uttie Nnve7:ber 7, 1985 - Chairman inforL0•d John HavA gan tha'. ''ursuant to the Pennsylvania Municipal Authority Act o P.L. 382, amended by Act No. 7, `.978, Mr H�.rrnicc:n YES not able to be seated as a member of the bL,=.rd Until after the Jefferson Township organizationa'. meeting to be held in January of 1986. It if noted that the term of Joseph Tekavec extends to D■ . be: 31 185. Joseph Tekavec was appointed to the Southwestern Water :'.athority by the Jefferson Township Supervisors. He served three five-year terms. He was not reappointed to the authority by the :efferson Township Supervisors when his term expired at the end of December, 1985. 10. Minutes of the Jefferson Township Supervisors disclose the following regarding Tekavec's replacement. a. July 25, 1985 - White made a motion to appoint John Hannigan to Water Board in October when Mr. Tekavec's term expires. Bane seconded, Mitchell disagreed at this time. October 10, 1985 - White made a motion to re -a appointment of John Hannigan to the water board. Bz seconded the motion, Mitchell disagreed. By unanimous decision, Hannigan was appointed to the w` board. (1) White stated that he had heard from former Supervisor Dick Faddis that Tekavec had called him about a year ago ar.d told him that if they could find someone else for his position, it would be alright with him. (2) White stated that when Tekavec came to the July meeting to request a re appointtlient, he was already committed to Hannigan. (3) White stated that the July vote to appoint Hannigan was a mistake. Joseph Tekavec advised as follows: He was appointed to the Southwestern Water Authority by the Jefferson Township Supervisors. b. !ie served on the board for approximately (15) years. Mr. Forrest Cottle Page 7 c. In June, 1985, he was appointed to serve on a committee to adjust the wages of authority employees. Also appointed was Albert Harvey. d. Standard practice of the authority was that only appointed committee members attend and participate in committee meetings. e. A committee meeting was scheduled for mid -June, 1985. You and Faddis attended and attempted to dominate the meeting and encourage large salary increases. f. At the next regular meeting of the authority, the salary increments were defeated. Another committee meeting was scheduled for July 24, 1985. Salaries again were discussed, but increments as advocated by you and Faddis were defeated. h. On July 25, 1985, you met with Township Supervisor, Charles Mitchell and authority member Art Palone who informed that you and Faddis went to the township shed to complain to the supervisor about his (Tekavec's) vote to eliminate bonuses. g. i. Township Supervisor, Bill White, previously stated that he did not like what Tekavec did regarding the vote to eliminate bonuses. j• He believes he was removed, because of this, to eliminate bonuses which affected the sons of Cottle and Faddis. 12. Ben Parker, Southwestern Water Authority Chairman for approximately ten years, advised as follows: a. He has served on the authority since 1953 and has been appointed by Jefferson Borough Council. b. Prior to June, 1985, management personnel were paid bonuses for overtime hours. All bonuses were the same except the manager who received more. c. The overtime policy was'done away with several years ago after salaries increased. d. In 1985, a committee was appointed to work out a wage recommendation. The committee was comprised of Harvey and Tekavec. The meeting was held when Parker was out of town. When he returned, he learned that Cottle and Mr. Forrest Cottle Page 8 Faddis had attendee the committee meet n , As long as h- can remember, only the board chairman and the clmmittee members could contribute. Crtlle and Faddis took over the meeting because they waned to r. ve u('tlandish raises. e. At the second committee meeting, they set the secretarial and management wage increa =cs, v:' ich included Tim Cottle's salary. The plaF was "fir Cottle and Coneybeer to be at the same salary; the tw- foremen the same; the chief bookkeeper at another salary; ..nd the manager at the highest salary. Cottla's i, brought him closer to Coneybeers. f. Cottle wasn't just after getting his son a raise., what he wanted was to give everybody a big raise to balance the salaries. Mr. Parker opined that the benefit to Cottle's son was an indirect consequence. At the second meeting that he attended, Faddis declared to the board that he wanted to know when his sjr, was going to be hired on the Authority. He was thc only one who ever asked to have his son hired. g- 13. Jel'ferson Township Supervisor, William White, provide; the following information: a. He has served as a township supervisor for approximately sixteen years. U. Appointments to the authority are made by oropo r :ing a representative from the various precincts in t.le township. Regarding Tekavec's appointment, Tekavec called Dick Faddis the year before (1984) and asked if he could get someone else for his position on the water authority board. They started checking into getting someone else. Tekavec was replaced by Hannigan. Jest before the July meeting, Tekavec expressed his desire to remain on the Board. d. The July 25, 1985 Supervisors' meeting was a mistake. He thought they could re appoint or remove someone from the board three months before the end of the term. He doesn't recall Cottle and Faddis coming down to the township building and talking about the pay raises at the authority. Mr. Forrest Cottle Page 9 e. John Hannigan asked to be put on the board. He told Palone and Tekavec that Hannigan and someone else had asked to be considered for a position on the board. Tekavec never asked to retain his position until that night at the supervisors' meeting. At that point, he had already told Hannigan that he would vote for him. f. When asked why he did not consider Tekavec when he asked to remain on the Authority Board, he stated that he was already obligated to Hannigan. He stated that he and Clay Faddis already decided that Palone would be replaced, and who would replace him. Palone's term was up at the end of 1987. They had already talked with someone and told him that his name would be brought up and promised that person the job. g He never told any of the board members how to voted, that he never suggested to Tekavec how to vote. A lot of people came to him to try to get their sons jobs on the authority. h. He stated that Cottle did bring the minutes to the Supervisors. He wrote them down and then brought them to the supervisors. White stated that he never asked for them, he doesn't care how they run the authority as long as they follow the rules and regulations. i. He never sees Cottle, except at the school where he is employed, and he is the township auditor. 14. Carl Bane, Jefferson Township Supervisor from 1974 through 1983, advised as follows: a. He thought Hannigan would be a good man to serve on the authority. He did not know Tekavec, he never attended a'ny of the authority meetings. b. Neither Cottle nor Faddis ever talked to him about removing Tekavec from the authority or how Tekavec was voting. 15. Charles Mitchell, a Jefferson Township Supervisor from 1902 through 1987, advised as follows:. a. In regard to the removal of water authority board member Joseph Tekavec, he supported Tekavec until the final vote. As far as he was concerned the vote taken in July of 1985 to remove Tekavec was just to show Tekavec that he was not going to be reappointed. The reason that the supervisors wanted to remove Tekavec Mr. Forrct.t Cottle Page 10 from the water inth rity board wz: to g::t a " y�� man of t .e authority. b. The point with Cottle and Faddis was not tc give raises, but to give bonuses. He knows for a fact that one employee had 700 -800 hours of overtime, but he did not get paid for overtime. He looked at it as overtime; not that Cottle and Faddis were trying to influence the Board. He changed his mind about Tekavec bec 3u. ,3e he could no longer talk to him. HF' f rst voted times to retain Tekavec, and the third time changed __s vote. At one time he talked to Tekavec and asked him if he would change his vote, and Tekavec told him that it was not etched in stone. d. Faddis comes around the township building occasionally, Cottle almost never. At one time the supervisors were getting the minutes of the authority meetings and they knew what was going on. e. His main reason for changing his vote for Tekavec, was because Parker was playing dictator and he rest that the authority should operate as a unit, without having one -man control. He said there was no discussion at the meetings about Parker or Tekavec. f. Faddis came down and told the supervisors about the lopsided vote. Mitchell felt that even if they didn't get a raise they should get a bonus. 17. While in the presence of your attorney, you provided the - �ollowing information to the State Ethics Commission: a. You never voted to hire, or promote your son, or for a raise for your son. You stated that for whatever reason, the minutes do not reflect that you abstained. b. Chairman Parker made sure that they didn't vote '.f any one board member's son or relative was involved in the motion that was being made. c. You had no reason for why you failed to amend any of the above listed minutes if they were inaccurate in the recording of your vote or abstention. The minutes stated that the prior meeting minutes are sent to each board member for review, and at that next meeting are approved "as is." Mr. Forrest Cottle Page 11 • d. At the June, 1985. board meeting, a wage committee was set up to establish wage recommendations for administrative and secretarial personnel, from those drawn up by Manager Simatic, to be presented at the next board meeting. e. You and Faddis separately requested that Simatic inform you of the time and place of the committee meeting. f. g. You and Faddis separately attended the committee meeting with the appointed members present, Tekavec, and Harvey and Simatic. You and Faddis actively participated in the discussion of wage recommendations, which directly affected your son Timothy's salary. h. You attended the committee meeting because you felt there was a great inequity between the Secretaries' salaries and that Simatic's salary was not what it should be. i. You stated that you did not discuss your son's raise at the meeting. You left the committee meeting with the impression that everyone had agreed upon the recommendations. You only made the motion for the wage- recommendations after it was evident that the committee members were not going to. 1 . You first asked if you could vote separatel your son. Parker informed you that y� excluding y knew that motion would be defeated when ould n. You you made e it. m. Parker then presented a proposal which included raises, but would discontinue year -end bonuses. n. You insist that you never discussed Tekavec with the supervisors, nor did you go down to the township building after the July board meeting and complain to the supervisors about the wage proposal vote. o. The supervisors were not happy with the people an the board in 1984. p. You had nothing to do with the amount of the raise that your son received. It was part of the wage increase Mr. Forrest Cottle Page 12 formula, which was intended to align the salaries of ce fain groups of personnel. q Thu only reason you voted for the wage proposal in 1985 was to make sure that the manager's raise was approved. If you would have been assured that it would have been approved, you would not have voted. r. You were totally surprised to hear that Tekavec had been replaced. B. Discussion: As a member of the Southwestern Water Authority, you arn a "public official" as that term is defined in the Ethics Act. E65 P.S. §402; 51 Pa. Code §1.1; Dodaro, Order Nor 590 -R. As such, your conduct is subject to the provisions of the Ethics Act. 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 nu': use his public office or confidential information to obtain financial gain other than compensation as provided for by law for himc7 or a member of his immediate family. Under this 1 this Commission has determined that the use of office by a public official to obtain a gain or benefit for himself or r member of h'is immediate family which is not provided for in :aw constitutes a "financial gain other than compensation provided for by law." These determinations have been appealed to the Commonwealth Court of Pennsylvania which has affirmed the Orders of the Commission. See McCutcheon v. State Ethics Commission, 77 Pa. Commw. 529 466 A.2d 283 (1983). See also Yocabet v. State Ethics Commission, Pa. Commw. , 531 A.2d 536 (1987). Thus, under this provision, a public official may not use his. public position to secure any financial gain for himself or a member of his immediate family unless it is provided for by law. 7omalakes, Opinion 85 -010; Huff, Opinion, 84 -015. Mr. Forrest Cottle Page 13 Section 2. Definitions. "Immediate family." A spouse residing in the person's household and minor dependent children. 65 P.S. 5402. Since immediate family is defined to only include a spouse or minor dependent child, the provision of Section 3(a) would not include a son who has reached majority. Thus, since your son is of majority and hence, not included within the Ethics Act definition of "immediate family," the provisions of Section 3(a) of the Ethics Act are not implicated. The facts reflect that in April of 1982, 1983 and 1984, you voted to hire your adult son for summer help. You also voted in March of 1984 to appoint your son as temporary March of 1985, you voted to assign employee. In assistant. 9 your son to the office as an You made a motion and voted in July of 1985 as to the management salary recommendation which affected your son although you did abstain as to the vote on the adoption of the salary schedule. Further, you recused yourself as to the December, 1986 vote on bonuses. As to the termination or non - renewal of Mr. Tekavec, there is conflicting and contradictory statements as to the motivation and the reasons for the removal of Mr. Tekavec and his replacement by Mr. Hannigan. In any event, there is no evidence under these facts and circumstances to establish that you used your public office to exert influence as to the removal of the Southwestern Water Authority member. _ C. Conclusion and Order: 1. As a member of the Southwestern Water Authority, you are a public,official subject to the provisions of the Ethics Act. 2. There is insufficient evidence to establish that you violated Section 3(a) of the Ethics Act regarding the removal of another member of that authority. Our files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. 408(a). However, this Order is final and will be made available as a public document 15 days after service (defined as mailing) unless you file documentation with the Commission which justifies reconsideration and /or challenges pertinent factual findings. See 51 Pa. Code 2.38. During this 15-day including the respondent unless he waives hisl�ightoto challenge this Order, may violate this confidentiality by releasing, discussing or circulating this Order. Mr. Forrest Cottle Pace 14 !\ny person who violates the confidentiality of a Commission :Iroceeding is guilty of a misdemeanor and shah be fined not more than $1,000 or imprisoned for not more than onc_ year or both, see 65 P.S. 409(e). By the Commission, G. Sieber P:_:ncoa &t. Chairman