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HomeMy WebLinkAbout664-R CoronaMr. Leonard J. Corona c/o Jeffrey Apfelbaum, Esquire Apfelbaum, Apfelbaum & Apfelbaum 43 South Fifth Street Sunbury, PA 17801 Re: 87 -070 -C Dear Mr. Corona: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION ORDER NO. 664 -R Date Decided: April 19, 1989 Date Mailed: April 28, 1989 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 former Mt. Carmel Township Supervisor, violated the following provision(s) of the State Ethics Act (Act 170 of 1978), when you received compensation not provided for by law in the form of "administrative services pay" from the Township Summer Food Program fund, landfill fund and HUD fund. 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. Code S403(a). A. Findings: 1. You served as a Mt. Carmel Township Supervisor from 1972 until August 26, 1985 when you resigned. a. You also served as Secretary- Treasurer during this period. Mr. Leonard J. Corona Page 2 2. Records disclose that beginning in 1980 and continuing through 1985, Mt. Carmel Township participated in a Summer Food Service Program for children which was administered through the Pennsylvania Department of Education. a. This grant program provided funds to qualified sponsors to ensure that during school vacations, children would be able to receive quality meals. b. Grants were provided through the U.S. Department of Agriculture and the Pennsylvania Department of Education. c. Organizations qualified to sponsor the summer program are limited to public or private non - profit school food authorities, residential summer camps and state, local municipal or county government entities. d. Sponsors receive federal funds based on the number of meals served. Reimbursement rates have been established to reflect costs of preparing and serving, and administration costs. The number of eligible meals served multiplied by the appropriate reimbursement rate will be the maximum amount a sponsor may receive for either its administrative or operating costs. For administrative costs, a sponsor will receive the lesser of (1) actual administrative costs; (2) the amount of units approved administrative budget; or (3) the amount provided by the rates. For operating costs, the sponsor will receive the lesser of actual operating costs or the amount provided by the rates. e. Ronald Startzel signed:`agreements between the Department of Education and Mt. Carmel Township as Chairman of the Township Board of Supervisors. The agreement provides, in part: (i) No Member or Delegate to Congress, or Resident Commissioner, shall be admitted to any share or part of this Agreement or to any benefit that may arise therefrom; but this provision shall not be construed to extend to this Agreement if made with a corporation for its general benefit. 3. Mt. Carmel Township records disclose that you were paid the following amounts from the township's Summer Food Program account: Mr. Leonard J. Corona Page 3 a. 1980. b. 1981. c. 1982. d. 1983. e. 1984. July 7, 1980 $120.00 August 6, 1980 165.00 September 12, 1980 140.00 $425.00 July 3, 1981 August 13, 1981 October 10, 1981 July 30, 1982 August 30, 1982 September 30, 1982 July 12, 1984 August 6, 1984 October 15, 1984 $100.00 200.00 100.00 $400.00 $ 96.00 104.33 6 62.0 0 $262.33 August 3, 1983 $125.00 September 19, 1983 250.00 $375.00 $100.00 100.00 100.00 $300.00 Check No. 10 29 47 $1,000.00 164 $1,300.00 212 $2,300.00 17 -82 27 -82 36 -82 14 -83 31 -83 12 -84 25 -84 45 -84 f. 1985. July 29, 1985 $200.00 August 23, 1985 18-85 $10__ 0:00 33 -85 $300.00 4. Township records disclose that you were -paid the following amounts from the township landfill account: a. April 5, 1985 b. July 30, 1985 Mr. Leonard J. Corona Page 4 c. These checks were signed by you and Supervisor Ronald Startzel. d. You endorsed and cashed these checks. The April 5, 1985 check was cashed on April 9, 1985 and the July 30, 1985 check was cashed on August 5, 1985. e. Minutes of the April 16, 1985 supervisors' meeting disclosed that under Treasurer's Report a payment from the landfill account in an amount - $1,000 to you for administration costs was listed for approval. You voted to approve this payment. f. Minutes of the July 16, 1985 supervisors' meeting confirm that the $1,300 payment to you from the landfill account was listed for approval. You made the motion and voted to approve payment. 5. Mt. Carmel Township records disclose that a voucher dated July 22, 1985 was submitted by you to the township requesting a $1,300 payment for services performed in relation to the operation of the township landfill from January 1, 1985 to June 30, 1984. The voucher identified the following services: a. Administration of landfill. b. Planning, design and implementation of a second phase of landfill. c. Payroll keeping of landfill employees. . d. Daily record keeping of landfill account. e. This voucher contains identical language as one submitted by Supervisor Ronald Startzel and appears to have been typed on the same typewriter. f. Payment for this voucher was approved at a township meeting on July 16, 1985 (See Finding No. 4f) prior to your submitting this voucher. 6. You also received a payment from the Mt. Carmel Township Sewer fund in 1984. Records reflect as follows: a. Minutes of supervisors' meeting of December 18, 1984, under Treasurer's Report, Sewer Fund Disbursements reflect payment to you in the amount of $1,000 for administrative cost. You made the motion to pay this amount and voted on the motion. Mr. Leonard J. Corona Page 5 b. Check No. 16 drawn on the Mt. Carmel Township Sewer Fund dated December 26, 1984 payable to you in an amount of $1,000. Check signed by Supervisors Serovich and you. c. You endorsed and cashed this check on December 28, 1984. 7. Former Mt. Carmel Township Supervisor, Joseph Serovich, advised as follows in regards to payments from the Sewer and landfill accounts: a. He did not exactly know why he a $1,000 check from the sewer fund, but he recalled checking workers at a construction site on a few occasions. He received the check from you and indicated that you said the payment was legal. b. He did perform duties over a number of years at the landfill and this was the reason he received a payment in April, 1985. He did not know why he did not receive any payments during previous years. He was never told anything by you or Startzel as to why the payment was being made in 1985, the matter was never discussed at any public meeting. Startzel told you to make out the checks in amounts of $1,000 for each supervisor. c. Both Startzel and you said the payments were legal and indicated that a township solicitor had made a ruling. 8. Ronald Startzel, former supervisor and former board chairman advised as follows: a. The work he performed in the Summer Food program included picking up food and supplies, participating in preparation of the food and also using his car when required. The amount of reimbursement provided by the Pennsylvania Department of Education was determined by a formula which used the number of meals served at the township times a percentage of so much money in its computation. He dealt with projected amounts in this project. Several college students were employed in this summer food program as counselors. The counselors would supervise the recreational activities for children including kickball games and in the case of inclement weather, activities in the basement of a church. b. The landfill began to operate sometime around October, 1984. His duties at the landfill included operating a compactor, bookkeeping, billings and also handling problems that the users of the landfill would run into. He worked many Saturdays and many late in the day hours at the landfill. Mr. Leonard J. Corona Page 6 c. In April, 1985, he received a check from the township in the amount of $1,000 for what he considered to be duties that he performed at the landfill during 1984. A few months later, he received a check from the township in the amount of $1,300 for duties he performed at the township during the period January, 1985 to May, 1985. The reason for the closeness of the two payments he received from the landfill fund was because prior to those payments, the landfill fund was broke. Prior to 1985, the township had very little money. d. His duties concerning the sewer fund required you to attend meetings, to prepare reports concerning the sewage line, to work with members of the Pennsylvania Department of Community Services and an engineering firm, and to prepare invoices for the project. This sewer line was to run from the township to an industrial park. On December 26, 1984, you received a check in the amount of $1,000 from the township sewer fund. At this time, the sewage project was completed and he then submitted an invoice requesting the payment of $1,000. Former Supervisors Serovich and you also worked on the sewer project and also submitted invoices for their checks of $1,000. e. Former Supervisors Serovich and you submitted your requests for payment invoices separately and he never reviewed what work you performed to receive payment from the sewage fund. He could not explain why he and the other two former supervisors each received a like amount of $1,000 payment for services. 9. Minutes of the Mt. Carmel Township Board of Auditors Reorganization Meetings for the years 1981 through 1987 disclosed that the only compensation approved for the supervisors was the salary for secretary- treasurer and hourly wages for a supervisor acting as superintendent, roadmaster and for working on township roads in any other capacity. a. No wages or compensation was set for administrative duties in regards to the Summer Food program, Sewer, Landfill, or HUD program. b. Auditors who served from 1981 through 1985 advised that the salaries set during that period were mainly applicable to snow removal and road related duties. The salaries set were not open -ended provisions to do any other township work. There was never compensation set for services performed in the Summer Food Program, Landfill, Sewer or HUD program. Mr. Leonard J. Corona Page 7 They were never aware of a solicitor opinion which stated such payments were legal. 10. You provided the following information to investigators of the State Ethics Commission: a. You performed bookkeeping services and also shared some administrative duties with Startzel. You organized some of the program and did quite a bit of paperwork. Startzel prepared the daily menu. b. No record or log of hours worked was maintained but that you would inform Startzel of your hours worked, and he would make a determination of the amount to be paid to you. c. Since Startzel was a school teacher and had the summer off, he would write the checks for the program. Funds were made available through the Pennsylvania Department of Education as they were completed in this program. d. You had no knowledge of whether or not the township auditors ever approved compensation for the supervisors in regard to this program. e. You received a check in April, 1985 for working at the landfill. You started working during October, 1984, on Saturdays, Sundays and weekly after you regular job was completed. You forwarded a voucher to the township prior to being paid. When calendar year 1985 came around the landfill started to make money, and therefore, you and the other supervisors believed it was time to get paid. You received an additional check for work at the landfill a few months after the initial check. f. You received a check from the Sewer fund in an amount of $1,000 on December 26, 1984. Two local firms, Cardinal Container and Universal Packaging, were having problems disposing of waste, and thus, the township got involved. You did all the administrative and financial work for the Sewer fund, and you and the other supervisors acted as inspectors for sewer lines that were being installed. g. You were under the impression that yearly auditor approval for supervisors' salaries covered any duties the supervisors performed for the township. Mr. Leonard J. Corona Page 8 B. Discussion: Township Supervisors in townships of the second class are public officials as that term is defined in the State Ethics Act. 65 P.S. §402. As such, their conduct must conform to the requirements of the State Ethics Act. See, Sowers, 80 -050, Szvmanowski, Order No. 539. Under Section 3(a) of the Ethics Act quoted above, this Commission has already determined that township supervisors may not approve or accept any compensation for themselves that is not in accordance with the compensation set forth in the Second Class Township Code. This determination has been affirmed by the Commonwealth of Pennsylvania. See McCutcheon v. State Ethics Commission, 77 Pa. Commw. 529, 466 A.2d 283, (1982); Yocabet v. State Ethics Commission, 109 Pa. Commw. Ct. 432, 531 A.2d 536 (1987). Compensation awarded or received by a township supervisor that is not in accordance with the provisions of law could constitute a violation of the above cited Section of the State Ethics Act. The Second Class Township Code provides that township supervisors shall receive the following compensation: Compensation of Supervisors -- Supervisors may receive from the general township fund, as compensation, an amount fixed by ordinance not in excess of the following: Township Population Not more than 4,999 5,000 to 9,999 10,000 to 14,999 15,000 to 24,000 25,000 to 34,000 Annual Maximum Compensation Fifteen hundred dollars Two thousand dollars Twenty -six hundred dollars Thirty -three hundred dollars Thirty -five hundred dollars Such salaries shall be payable monthly or quarterly for the duties imposed by the provisions of this act. The population shall be determined by the latest available official census figures. The compensation of supervisors, when acting as superintendents, roadmasters or laborers, shall be fixed by the township auditors either per hour, per day, per week, semi - monthly or monthly, which compensation shall not exceed compensation paid in the locality for similar services, and such other reasonable compensation for the use of a passenger car, or a two axle four - wheeled motor truck having a chases weight of less than two thousand pounds when required and actually used for the transportation of road and grudge laborers and their hand tools and for the distribution of cinders and patching material from a stock pile, as the auditors shall determine Mr. Leonard J. Corona Page 9 and approve; but no as a superintendent attending a meeting amended Act 68, 1985 supervisor shall receive compensation or roadmaster for any time he spends of supervisors. 65 P.S. §65515, as (Prior to the above amendment, the above provision provided for a set fee of $25 per meeting). In reference to the meetings for which supervisors may receive compensation, the code further provides -as follows: The township supervisors shall meet for the transaction of business at least once each month, at a time and place to be fixed by the board, but they shall not be paid. for more than sixteen meetings in any one year, except in any township where, on account of the exercise of governmental functions other than those relating to roads, more meetings are necessary, in which the supervisors may be paid may be increased to any number, not exceeding fifty meetings in any year which shall include hearings by aggrieved parties under the Pennsylvania Sewage Facilities Act and other hearings by aggrieved parties hearings of a judicial or quasi - judicial nature. Two members of any board of supervisors consisting of three members shall constitute a quorum and three members shall constitute a quorum. Except as otherwise provided in this act, an affirmative vote of a majority of the entire board of any supervisors shall be necessary in order to transact any business. Necessary expenses incurred in such meetings, including office rent, stationery, light and fuel, shall be paid out of the general township fund. 53 P.S. 565512. The duties that a supervisor is responsible for performing are also regulated by statute. As can be seen from the foregoing, the compensation to be paid for a supervisor who is not otherwise employed by the township is strictly regulated by the Second Class Township Code. A supervisor may only receive compensation, as set forth above, for supervisor meetings regarding the transaction of township business. The type of meeting for which a township supervisor may be compensated must be one at which official township business is transacted. Additionally, the township code provides for compensation at the specific meetings outlined in §512, above. The Code does not appear to permit the compensation of a township supervisor for attending other types of meetings for performing the administrative functions of his office. Any such other compensation must be earned Mr. Leonard J. Corona Page 10 in and as part of the services performed while serving in one of the statutory authorized positions. Thus, if the township supervisors were to award to themselves compensation for attendance at meetings that are not official township meetings of the board of supervisors, or for performing duties not authorized by law, such would violate the provisions of the State Ethics Act as such payment would not constitute compensation provided by law. The above interpretation of the Second Class Township Code is a view that has also been expressed by the State Association of Township Supervisors which specifically indicated the supervisors may not be compensated for meetings with engineers, solicitors, planning commissions, authorities, or recreation boards. See Township News, May, 1985, Page 66. The Code sets forth clearly when supervisors may receive compensation other than as set forth above. Generally, township supervisors may be employed by the township as a roadmaster, laborer, or secretary /treasurer. 53 P.S. S65410. The compensation to be paid to supervisors working in such positions is to be fixed by the township board of auditors. 53 P.S. S65515, 65531; 65540. Township supervisors may not receive any other compensation except as provided above. This concept has been upheld by various courts in the Commonwealth. In Coltar v. Warminster Township, 8 Pa. Commw. Ct. 163, 302 A.2d 859, (1973), the Commonwealth Court of Pennsylvania held that a second class township supervisor may not appoint himself to positions other than those set forth in the township code ( roadmaster, laborer, or secretary /treasurer), and receive compensation therefore. See also Conrad v. Exeter Township, 27 D & C 3d 253, (Berks 1983). It is clear, therefore, that the duties for which a township supervisor may be compensated are strictly regulated by the township code, and when performing in the positions set forth in the Code, the supervisor's pay must be specifically set forth by the township board of auditors. The "administrative services" for which you were compensated were related to the office supervisor. In this case, you received $2,062.33 in "administrative services pay" from the township Summer Food Program fund which was other than compensation provided by law. You accepted payment even though the Program Agreement specifically provided that no resident commissioner could receive "any benefit" from the Program. You used a worthwhile food program as the vehicle for obtaining an authorized gain. You also received two payments from the township landfill account: one payment in the amount of $1,000 on which you voted to approve payment and another payment in the amount of $1,300 on which you made the motion and voted to approve payment. You thus, received a total of $2,300 from the landfill account which was not part of your authorized compensation. Mr. Leonard J. Corona Page 11 Finally, you received $1,000 from the Township sewer fund on which you made and voted in favor of a motion to approve the payment. As to this payment, it does not appear that you even submitted a voucher; hence, this Commission must question whether you performed any work at all for this payment. It becomes clear that you have used and misused public office to obtain financial gain which was not part of your authorized compensation; such actions violate Section 3(a) of the Ethics Act, especially since it seems that you did not perform some of the work for which you claimed administrative pay. It is clear that the auditors did not approve this compensation; even if they had, this Commission has already held that township auditors have no authority to fix compensation for township supervisors who are performing duties outside of those fixed by law or for working in positions not established in the township code. Nanovic, 85 -005. As a result, this Commission finds that you received compensation in the form of administrative pay that was not in accordance with that set forth by law. Generally, the State Ethics Act provides as follows: Section 9. Penalties. (a) Any person who violates the provisions of Section 3(a) and 3(b) is guilty of a felony and shall be fined not more than $10,000 or imprisoned for not more than five years, or be both fined and imprisoned. 65 P.S. §409(a). (c) Any person who obtains financial gain from violating any provision of this act, in addition to any other penalty provided by law, shall pay into the State Treasury a sum of money equal to three times the financial gain resulting from such violation. 65 P.S. §409(c). The power of this Commission to order restitution or impose a penalty has been sustained by Commonwealth Court. See McCutcheon v. State Ethics Commission, supra; Yocabet v. State Ethics Commission, supra. Since you are hereby Commission payable to the order of Mt. Carmel Township in of $5,362.33. Mr. Leonard J. Corona Page 12 C. Conclusion and Order: 1. As a township supervisor in Mt. Carmel Township, you are a public official subject to the provisions of the State Ethics Act. 2. You violated Section 3(a) of the State Ethics Act by using public office to obtain a financial gain which was not compensation provided by law. 3. The amount of gain received by you referenced in paragraph 2 amounts to $5,362.33. 4. You are hereby ordered to remit to the State Ethics Commission within thirty (30) days of the date of this order, the amount of $5,362.33 payable to the order of Mt. Carmel Township. 5. This order will be referred to the appropriate law authority for review and appropriate action. 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 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 not more than $1,000 or imprisoned for not more than one year or both, see 65 P.S. 409(e). The confidentiality provision does not restrict respondents consultation with legal counsel. By th- Commission, elena G. Hughes Chair