HomeMy WebLinkAbout677 AngeliniMs. Jane Angelini
c/o John F. Meck, Esquire
Houston, Houston & Donnelly
2510 Center City Tower
Pittsburgh, PA 15222
Re: 86 -114 -C
7
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
ORDER OF THE COMMISSION
ORDER NO. 677
DATE DECIDED: September 28, 1988
DATE MAILED: October 13, 1988
Dear Ms. Angelini:
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 Ben Avon Councilmember, violated Section
3(a) of the Ethics Act which prohibits a public employee or public
official's use of office or confidential information gained through
that office to obtain financial gain and
Act which prohibits a public employee Section 3(c) of the Ethics
his immediate family or any busies in which which personoormammember
of the person's immediate family is a director, officer, owner or
holder of stock exceeding 5% of the equity at fair market value of the
business shall enter into any contract valued at $500 or more with a
governmental body unless the contract has been awarded through an open
and public process in that you participated in the process and voted
to award to Mellon Bank, a firm where you are employed a Tax
Anticipation Note, a capital expenditure loan, and set -up a safety
deposit box.
a ; . Jane rL.geiini
rage
A. Findings:
1. You were ay3ointed to the Ben Avon Borough C uncil in
December 1984, and began serving in that position in January
1985.
You were elected to council in 1985 and began serving
that term in January 1986.
b. You served as Chairman of the Finance Com-ittee from
the time you were appointed to Council.
c. You were recently re- appointed to that 'dosition in
January 1988.
. You have been employed with Mellon Bank since October 1975.
Z. Your current position is that of Relationship
Representative IV, Community Banking Department.
b. You have held this position since May 1986.
c. Your previous position was that of Manager, Training
Division, Credit Policy Department, from 1/84 through
5/86.
d. You were made an Assistant Vice - President in April
1980; and Vice - President in February 1983.
3. Statements of Financial Interests on file at Ben Avon Borough
for you indicate as follows:
Date Filed Occupation Employer Office or Dir.
a. 4/4/86 Vice President Mellon Bank none
b. 4/14/87 Vice President Mellon Bark none
4. The Mellon Bank Employee Profile, in your name, lists the
following pay increases from 1985 to the present:
a. Merit Raises Date Amount Percent
1/1/85 $2,900 5.9
1/1/86 3,600 7.0
1/1/87 .1 2.P
;p. Profit Bonus Program Date Amount
2/85 $3,000
_i,87 2,000
Total $7,000
Ms. Jane Angelini
Page 3
c. Performance Reviews: 4/82
7/82 -
4/87
5. In a cover letter dated 1/22/88, from Linda Gill Jones, Human
Resources Manager for Mellon Bank, N.A., the following is listed
regarding your employment with the bank from 1985 to the present:
a. You have not received a promotion during this time.
b. You have not received any commission payments.
c. You were nominated to participate in the Profit Bonus
Program in December 1984.
(i) This program is for senior managers of the Bank.
(ii) You were nominated by the Credit Policy
Department, Human Resources Committee of the Board
of Directors approved your nomination in January
1985 in the amount of $7,000.00.
d. You were not reviewed from July 1982, until April 1987.
6. Performance Planning documents dated 1/20/87 reflect the
following regarding your job description:
a. Market /Product Analysis develop a list of 5 customer
prospects. develop a list of
3 key prospects. develop 2
new customer relationships.
25 calls on existing
customers /quarter. 17 calls
on prospects /quarter. 6 calls
on referral sources /quarter.
4 cold calls /quarter. 6 calls
with Section Manager /quarter.
6 calls with Senior
Manager /quarter. submit at
least one market intelligence
memo per quarter. assure
that all customers are called
on at least once in 1987.
7. Performance Planning and Appraisal dated 4/15/87 reflect the
following regarding your job description.
a. Position title - Relationship Representative IV,
Community Banking department.
Trs . Jaye Angelini
21efe 4
b. Job Definition: Develop and promote ortunities
to generate and maintc!> profitable
relationships with m!ddle market
customers and prospects of the
Pittsburgh Commercial Banking
Office consistent we_th policies, in
order to contribute to the
achievement of the Office's profit
objectives within Allegheny Count`g
and the contiguous five cor•nt'r
area.
Lat1tud. -.
Tharpose
(i)
The incumbent is responsible for
establishing and negotiating credit
terms, pricing structures and loan
covenants and may approve any loans
within the assigned lending
authority, within the constraints
of bank credit policy.
Mellor. National Corporation - Exempt Job Evaluation
Quastionnaira reflects the following regarding your previous
po;�it.i.on.
a, Job Title - Manager Training Division
Manage, dire't and coordinate the
entry level credit training program
and the continued education
programs of commercial lenders to
ensure the analytical skills
training of all potential and
present lending personnel.
Other Pertinent Dimensions /Training 'rograms:
(i) Lending to PA municipalities 2 day seminar, 3
times per year, up to 30 monthv).
(ii) Branch management Credit Orientation °rogr-am-
every six weeks for a four week period, 40
participants per year.
Banking Departments serviced in Edu,.:ation Programs:
Community Banking Department; Credit Policy
Department; Millon Financial Services; National
Banking Department; International Banking
Department; Leasing Servic s Department; Real
Estate Department.
Ms. Jane Angelini
Page 5
9. Minutes of the Ben Avon Borough Council Meetings reflect the
following:
a. 1/3/84 - Equibank, Avalon Branch was appointed
Depository of all Borough funds for a two year period.
1. Secretary, Assistant Secretary and Chairman of the
Finance Committee shall have access to the Safe
Deposit Box in the Mellon Bank, Bellevue Branch,
with the provision that two of them shall be
present when the box is opened. It was decided to
move the Safe Deposit Box to Equibank, Avalon
Branch, when the present lease on the box is
expired.
b. 1/17/84 - Thomas, Finance Committee Chairman,
requested authorization for one hundred thousand dollar
loan from Equibank. The Solicitor read the terms of
the Resolution to Council. On motion by Thomas,
seconded by Trent, accepted the conditions of the
resolution.
c. 1/8/85 - on Tax Anticipation Note. Trent offered a
proposal from Equibank which is passed in the form of a
resolution. A roll call vote is taken.
Present: Miller, Angelini, Weitz, Trent, Mathison,
Hamilton, McKain.
d. 5/14/85 - Angelini is Chairman of the Finance
Committee.
e, 8/22/85 - Angelini reports on a $52,000.00 loan which
the Borough is looking into. She had contacted four
banks: Melon, Union National, Pittsburgh National, and
Equibank.
f. 9/10/85 - road resurfacing loan is considered.
Angelini reports findings from four banks:
Mellon - 80% of Prime =
Union National - no tax
Pittsburgh National - 8
Equibank - no tax free,
8.4% fluctuating loan;
free loans, Prime + 2;
1/2 fixed;
Prime at 9 1/2;
Trent moves to sign the loan with Mellon Bank, Bellevue
Office. The motion is carried.
Angelini abstained from the vote.
1.1 ' . ,pine Angelini
7e 6
g. 10/15/85 - Angelini reports that Mellon Bank has
approved the loan for $67,000.00. Notion I$3 made ty
Angelini to give the Finance Committee approval tr
execute the required documentation for the bank, a roll
call vote is taken, the vote is unanimous.
j
Present: Miller, Angelini, Weitz, Trent, ' *Ithisoii,
Hamiltion, McKain.
h. 11/12/85 - Capital Expenditure Resolution p ~epared by
the Solicitor, for transmitting to the Mellon. Bank N.A.
in connection with the loan, was necessary. On motion
Angelini, seconded by Mathieson, the Resolution was
?proved with a roll call vote.
Present: Miller, Angelini, Weitz, Trent, Hamilton,
Mathison, and McKain.
12/10/85 - Letters are sent to several banks in regard
to r'a.x Anticipation Note. Angelini reported that a
loan of $50,000.00 has been consummated with Mellon
Bank.
1/6/86 - Angelini reports that she is not ready to
recommend the appointment of a bank depository. It
will depend on a number of situations, and will be made
later.
(1) Council has heretofore rented a Safe. Deposit bo
at a local bank. On motion by Angelini, second
by Trent, it was decided to cancc J. this box in PL
much as no money and no important gapers have eve
been in the box.
Present: Miller, Angelini, Weitz, "rent,
Weingartz, Hamilton, and McKain
1/14/86 j Three of the four banks responded to the
Borough's request for bids on the Tax Anticipatio:
Note. Union National was the only bank that did not.
respond. Finance Committee to study the bids and make
a recommendation to Council.
l.. 2/11/86 - Angelini reported that the Finance Committee
recommends the acceptance of the proposal of Mellon
Bank N.A. at a fixed rate of 5.7 %, this being the
lowest bid economically. On motion by Ange?.i :. j.,
seconded by McKain, this acticn was app:oved ard tte
proposal of Mellon Bank accepted.
Ms. Jane Angelini
Page 7
m. 3/11/86 - Angelini made the motion, seconded by McKain,
resolutions necessary for Council to establish our
depository accounts with Melon Bank, were approved.
Present: Miller, Angelini, Trent,
McKain.
n. 5/13/86 - Angelini to rent a small Safe
the Bellevue Office of Mellon Bank as a
financial papers and insurance policies.
Present: Trent, Angelini, Weitz, Weingartz,
and McKain.
o. 6/10/86 - Angelini made a motion that Council adopt the
following Resolution for the sole purposes of Act 205-
that the Finance Committee Chairman be designated as
the chief administrative officer of both the Borough
and its pension plans; seconded by McKain. Motion
carried.
Present: Angelini, Weitz, Trent,
Miller and McKain.
p. 1/13/87 - Angelini moved to
designating all signers for Mellon
three signatures being mandatory
checks.
Signers include: Mrs. Snively, Mrs. Angelini, Mr.
Trent, Mr. Hamilton, Dr. Miller, Mr. Ewing and Mr.
Abernathy.
Meeting date set to open bids on a Tax
Anticipation Note for $100,000.00 to cover the
void in real estate taxes not coming in.
Present: Miller, Angelini, Weitz, Trent, Beswick,
Hamilton and McKain.
(1)
(1) The same motion approved a Resolution by the
Solicitor authorizing such borrowing. Roll call
vote taken.
Present: Miller, Angelini, Trent, Weingartz,
Hamilton and McKain.
Hamilton, and
Deposit Box in
repository for
Hamilton
Weingartz, Hamilton,
pass a resolution
Bank Signature cards
for signing Borough
Mr. Jane 1.1r,;elini
?are 8
c . 1/29/87 - L'zge 1 ini named the four banks to -:- ic' she
had sent letters to bid: Equibank, Mellon. PNB, and
Union National. Nothing was received from Union
National. Responding banks submitted the following
bids:
Interest 1986
Bank Fixed Rate Floating rate Cost Bid
PNB 4% plus $599 55% of Prime (7 -1 -2 %) Fixed= $4,500 5.7% of
(1/2 of 1 %) = 4.128% plus $599 Prime
upfront fee (1/2 of 1 %) up front Float= $4,725 Plus
at time of at time of closing 3- of
closing 1%
Mellon 4.35% - no 63% of Prime (7 -1 /2%) Fixed = $4,350 6.3% of
fee = 4.725% Prime
Float= $4,725 or
5.7%
Fixed
Equibank Did not bid 70% of Prime $5,250 7.0% of
fixed rate 7 -1/2% = 5.25% Primey
(i) As an employee of Mellon Bank, Angelini declined to mak
any motion. Beswick moved, McKain seconded that the
Borough accept Mellon Bank's 1/26/87 proposal of 4. =5%
fixed rate loan.
Roll call vote was unanimous. Angelini abstained.
Present: Miller, Angelini, Beswick, Hamilton, McKain,
Trent, Weiss.
2/10/87 - McKain moved that council formally accept the proposal
to purchase the Tax Anticipation Loan as proposed by Mellon Bank
for $100,000.00 at 4.35% fixed, due 12/31/87. Motion carried,
no abstentions
(i) Solicitor Meck advised that loan can be paid off before
12/31/87 without taxes, unlike last year's provision.
(ii) McKain moved a resolution be passed authorizing borrowing
anticipation loan for taxes and current revenue based on
Angelini's reading of the terms and conditions listed :„
Mellon Bank's propcsai. Weitz seconded, motion carries::
Meck to send ap rov c resolution to Mellon Bank. No
abstentions recorc:e,l
Ms. Jane Angelini
Page 9
Present: Miller, Angelini, Weitz, Trent, Hamilton and
McKain.
s. 1/4/88 - Bank depository is currently Mellon Bank /Bellevue.
Agreed to defer this appointment to appropriate committee who
will make their recommendation at next regular meeting.
(i) President Miller appointed the following councilmembers as
Chairpersons:
(ii) Finance - Jane Angelini
Administration and Employee Relations - Ed McGee
Public Health, Safety and Fire Protection - Bill Harford
Borough Planning and Ordinance - Tim Scheall
Public Works /Service, Building and Property - Ed McGee
t. 1/12/88 - Angelini brought up the Tax Anticipation Note.
Proposals from local banks have been solicited for submittal by
next meeting, 1/20/88. Current interest rate paid is 5.6 %.
Rates vary and the Borough seeks the lowest prevailing
competitive rate.
(i) President Miller . appointed the following committee members
to serve:
Finance - Angelini, Hamilton, Harford, McGee and Scheall
u. 1/20/88 - Angelini reported that the three banks who were
interested in serving as the Borough's depository were Equibank,
Mellon Bank and Pittsburgh National Bank.
(i) Angelini stated that due to her relationship as an employee
of Mellon Bank, she did not want to make a recommendation
in favor of any of the three banks.
(ii) Harford pointed out that problems and complexities of
changing banks and moved that Mellon Bank be retained as
the Borough's depository.
Motion carried. Angelini abstained.
(iii) Angelini moved that since Mellon Bank was appointed
depository, Mellon Bank should also be retained as
treasurer. Tim Scheall seconded.
(a) Mrs. Angelini withdrew her motion and the same motion
was then made by Dr. Miller. Scheall second. Motion
carried unanimously. Angelini abstained.
Ms. Jane Angelini .
l' ge 10
(!_17) Based on analysis by Angelini and review of docuiw nt w'atch
she discussed with Council concerning loan terms C' e
banks, Hamilton moved, seconded by Miller, that Pitts'_
National Bank be awarded the Borough's Tax Anticip.''
Note. Angelini abstained.
Motion carried unanimously. Angelini abstained.
(v) Angelini recommended adoption of a resolution that
authorizes the institution of a Tax Anticipation Not in
the amount of $100,000 at 5.2% rate of interest. Miller
seconded.
Roll call vote resulted in Angelini, McGee, Hazfcri,
Hamilton, Scheall and Miller voting in favor of '1ia
resolution.
Resolution passed unanimously.
Present: Angelina., Hamiltor, ,. Harford., Mille ::, McGee,
Scheall, and Walter Miller.
10. Records obtained from Ben Avon Borough inaicatc. that rLIuests fol
proposals were forwarded as follows:
a. "/24/85 - Regarding the general obligation term loan Note of
$52,000.00 from Jane Angelini, Finance Committee Chairman:
Pittsburgh National Bank - Mr. Fabian, Manager
b. 12/18/85 - Regarding the tax anticipation note of $100,000.00
from Jane Angelini, Finance Chairman, to:
Equibank - Art Werner, Manager
Mellon Bank - John Abernathy, Manager
Pittsburgh National Bank - Robert Fabian, Manager
Union National Bank - Karen Schneider, Manager
cr 1/7/87 - Regarding the tax anticipation note of $100,000.00 from
Jane Angelini, Finance Committee Chairman to:
Equibank - Ronald E. Gionta, Manager
Mellon Bank - Keith Hughes
Pittsburgh National Bank - Veronica Hazen, Manager
��.
Ben'Avon Borough records indicate the following proposals from "oankE,
for the 1985 General Obligation Term Loan Note (awarded to Mellon Bank):
a, 10/1A/P5 - signed by Mellon Bank Manager, John Abernathy, with
the following terms:
Ms. Jane Angelini
Page 11
Principal sum - $67,000.00
Interest Rate - variable rate of 7.6% per anum
12. Ben Avon Borough records indicate the following proposals from banks
for the 1986 Tax Anticipation Note (awarded to Mellon Bank):
a. 1/3/86 - Mellon Bank
Fixed Rate - 5.7%
Variable Rate - 63% of Prime per annum, tax free rate.
b. 1/15/86 - Equibank
Rate - 7.0% per annum
c. 1/14/86 - Pittsburgh National Bank
Rate -5.7%
Added Fee - .75% of the principal amount
13. Ben Avon Borough records indicate the following regarding proposals
from banks for the 1987 Tax Anticipation Note (awarded to Mellon Bank):
a. 1/26/87 - Mellon Bank
Variable Rate - 63% of Prime
Fixed Rate - 4.35%
b. 2/6/87 - Equibank
Rate - 70% per annum
14. Ben Avon Borough records indicate the following regarding proposals
from banks for the 1988 Tax Anticipation Note (awarded to Pittsburgh
National Bank):
a. 1/14/88 - Mellon
Variable Rate - 85% of Prime
b. 1/19/88 - Equibank
Rate 5.86% fixed
c. 1/15/88 - Pittsburgh National Bank
Rate - 5.25%
Initial Interest Charge - .50%
15. Additional documents obtained from the Borough of Ben Avon regarding
the Tax Anticipation Note's and General Obligation Term Loan Note provide:
a. 11/1/84 - Equibank letter to Ben Avon Borough requesting the
opportunity to bid on the Tax Anticipation Note, requesting
additional information with the following notation at the top;
Ms. Jane Angelini
Page 12
Handwritten note on this letter to George
Trent- "Suggest you also get a quotation
from Mellon. They were not azked to quote
last year. Abernathy says their proposal
would have been lower than Equibank's.
(unsigned)
16. Correspondence from Solicitor John Meck to Jane Angelini regarding
the 1986 Tax Anticipation Note closing with Mellon Bank indicates that the
funds are to be wired into the Borough's account at Equibank, until the
accounts at Mellon are set up.
17. The records of Mellon Bank N.A. contained various correspondence from
officials and employees thereof to you as a borough councilperson and
chairperson of the Finance Committee regarding the boroughs capital
expenditure program loans, tax anticipation loans, the boroughs use of the
bank as a depository and for safety deposit boxes.
18. Former Solicitor John Meck, who is now your personal attorney, stated
the following:
a. That the Bank did not make a lot of money on Municipal T%~
Anticipation Loans, and estimated that the Bank might make about
$5,000.00 to $7,000.00 in revenue, not profit, on such a :.oen
with Ben Avon Borough.
b. He dealt the most with Mellon Bank, am". tie other bcnk:. He did
the paperwork in regard to the Borough loans.
O Your part was sending the initial Netter regarding the
loans, and that was it.
c. That you had no day to day dealings with t.ha Bank on . ey alf o
the Borough.
d. The Borough was under no requirement to Did for t: e varf.cos
loans. The Borough had dealt with Mel i c,r_ ) <ank for zae , y yeaa.s
prior, without bidding.
e. The Tax Anticipation Note award to Equibank in '. 2 84 end 1.85
was bid, in that Mellon over -bid.
f. Councilmember Trent always a :_culid fc-- com..arison 7rices.
g. He did not advise you to abstain fxor voting on issues which
involved Mellon Bank, your erap1yer.
h. You probably abstained in t » ( *87 ew . .1. ig o the
Anticipation Note to Mellon, nn ,y ail;7icr:_
Ms. Jane Angelini
Page 13
i. Council almost always voted unanimously.
The actual motion to approve the bank and the resolution were
one vote and not separate, you would have only voted once.
j.
1. Everything is totally outside of your control at the bank.
There was no profit or gain on your part.
19. George Gonzalez, your supervisor at Mellon Bank N.A. advised that you
received no bonuses or commissions regarding business received for Ben
Avon Borough.
(1) Your department does not deal with governmental entities.
20. John Abernathy, former manager of the Mellon Bank Branch Office in
Bellevue advised as follows:
(i) The Bank was doing business with the borough for 10 -15 years
before Equibank.
(ii) The Borough's business does not result in much profit for the
Bank.
(iii)There was no relationship between your position with the Bank
and your position with the Borough.
21. Current and former borough councilmembers indicated that you were
selected as chairperson of the Finance Committee because of your
background. They further advised:
a. You would make recommendations on financial matters including
loans but all councilmembers used their best judgment.
b. You did not pressure any of them in relation to the selection of
Mellon Bank.
c. They selected the lowest bidder when choosing a bank with which
to deal.
d. The Borough in the past transacted business with Mellon Bank.
The Borough thereafter used Equibank for several years and then
returned to Mellon.
22. You have provided the following information regarding this situation:
a. • You have lived in the Borough of Ben Avon since 1978.
b. You frequently attended Council meetings and you were on the
Recreation Board for about one year prior to your appointment on
Council.
Hs. Jaw Angelini
Page 14
c. You have worked at Mellon Bank since October _:975, . are
currently employed as a Relationship Representative IV, :nd have
held that position since 4/14/86.
d. it is not unusual that you were not reviewed for five Years.
e. The yearly raises you received, even though you were not
reviewed yearly, were in the discretion of the manager, and
within the guidelines of the Personnel Department.
f. You stated that you received no compensation in any w'y as a
iesult of the Borough's relationshi D with Melion Bank.
You described your current job as being within the guidelines of
the Middle Market Department, which is defined by the dollar
value of the commercial companies that department deals with.
(i) You deal with companies in the 10 to 250 million dollar.
range.
(ii) The Ben Avon Borough Budget is less than 1/2 million.
(iii)Municipal accounts are handled by anothe: department.
(iv) Ali Tax Anticipation Loans are now handled out of thF1
Thornhill Business Center.
g.
h. The merit increases you received in 1985, X986 and 1987,
actually your annual salary increases.
The profit bonus program which you receive in 1986 and 1P" ,
were earned in your previous staff positi-1. This is so
discretionary, and you assume it was givPn to you becaus.:; the
Bank was happy with your performance.
j . "''ou stated that you never had any previous Bank dealings ..__t.h
Mr. Abernathy, Manager of the Bellevue brpnch of Mellon & nk
where the Borough does business when required.
(i) You only talked with Abernathy once a year.
(ii) Your previous Bank dealings with Keith Hughes from the
Thornhill Business Center, only included the fact that he
went through your training class.
k. As Chairman of the Finance Committee for the Borough, you s ::e
the functional member. Committee members Trent and Hamilton he
very little input, and you don't recall ever having a committee
meeting.
Ms. Jane Angelini
Page 15
1. You believe you were assigned as Finance Committee Chairman
because of your finance background. You were re- appointed as
Finance Committee Chairman in January 1988.
m. When you were appointed to Council, and were made Finance
Chairman, the Borough's depository, Tax Anticipation Note and
Safe Deposit Box were with Equibank, Avalon Branch.
(
(ii) You did the same for the General Obligation Term Loan Note
made by the Borough in 1985, for sewer and street repairs.
(iii)You included, Mellon, Equibank, Pittsburgh National and
Union Bank, when you solicited bids for the different
Borough loans.
n. In 1988, the Tax Anticipation Note was awarded to Pittsburgh
National Bank, who did not specify that the Borough depository
must be included. The depository stayed at Mellon.
(i) You assume that the reason the Borough depository was moved
from Equibank to Mellon in 1986, was because it was
specified as a condition of the Tax Anticipation Proposal
submitted and subsequently awarded to Mellon Bank.
(ii) The reason the depository was kept at Mellon in 1988 was
mostly due to the pleadings of the Borough bookkeeper,
since it was easier for her not to change all the records.
o. In regard to the cancellation of the Borough's Safety Deposit
Box at Equibank in January 1986, you stated that nothing was
kept in the box.
(i)
You stated that even though the minutes reflect that in May
1986, you were to establish a Safe Deposit Box at Mellon to
keep important papers in, this was never done. This was
only considered at one of the councilmembers insistence.
(ii) Currently the Borough does not have a Safe Deposit Box at
any bank, and has not incurred any expense for this, since
the box was cancelled at Equibank.
P. You gave Trent
with the bids
probably said
lowest.
You suggested that the Tax Anticipation Note be put out
bids among the local banks. You called or wrote to
local banks to solicit their interest in the Borough's
Anticipation Note.
for
the
Tax
and Hamilton slips of paper before the meetings
from the three responding banks listed. They
something like, it looks like Mellon is the
Ms. Jane Angelini ,
Page 16
g.
You do not feel that you influenced members of Council_ `o —ate
for Mellon Bank.
(i) Your mistake was that in 1986 you discussed the b 'cis anci
made the recommendation to go with Mellon, which was the
lowest bid.
(ii) You do not need any special background to be Finance
Chairman.
(iii)The motions to aplerove Mellon as the recipient of tine
Borough Tax Anticipation Note were made with the facts in
front of each councilmember. Melton's bid was so much
lower, everyone could see it.
re You abstained from voting on the awarding of the bid for the
1987 and 1988 Tax Anticipation Note.
(i) You also did not make the motion to award the above listed
bids for either year.
s: In your opinion, your vote was not motivated by who you worked
for, but that the Borough was benefiting by utilizing the
bidding process.
You never considered that there might be a conflict of inter ft:
(i)
Councilmembers in Ben Avon are a- political, and never
have thought that there was anything unethical. E v t._ `
is concerned with what is best for the Borough.
(1i) You have not received any promotion or financial -
direct result of the Borough's business with
a result of your involvement with the Borough. In la .,
your present position, you have less responsibili.y ti.aal
you did before.
u. You were made a Vice- President in 1983. This title means that
you are entitled to an extra week vacation each yeex, and an
annual physical after 40 years of age.
v. Borough Solicitor, John Meck never advised you not to vote on
issues regarding Mellon Bank.
(i) You felt that by abstaining on the initial -Tote to awa_•d
the General Obligation Term Loan Note in 1:xP5 to Melton
Bank, that it was subsequent follow up motions and votes
pertaining to this issue, made by you were alright.
Ms. Jane Angelini
Page 17
B. Discussion: As a member of the Ben Avon Council, you are a public
official subject to the provisions of the Ethics Act. 65 P.S. §402; 51
Pa. Code §1.1; Rider, Order 490 -R.
As quoted above, Section 3(a) of the Ethics Act provides that no
public official may use his public office or confidential information
received through holding public office to obtain a financial gain for
himself or a business with which he is associated. 65 P.S. §403(a). The
term "business with which he is associated" is defined under the Ethics
Act as follows:
Section 2. Definitions.
"Business with which he is associated." Any business
in which the person or a member of the person's
immediate family is a director, officer, owner,
employee or holder of stock. 65 P.S. §402.
Under Section 3(c), quoted above, no public official or any business
in which the official is a director, officer, owner or holder of stock
exceeding 5% of the equity at fair market value of the business shall
enter into a contract valued at $500 or more with his governmental body
unless the contract has been awarded through an open and public process.
As to Section 3(c) of the Ethics Act, this Commission has determined that
the above provision is a procedure to be used when a public official
contracts with his own governmental body in excess of $500. Brian,
Opinion 80 -014; Lynch, Opinion 79 -047. However, this Commission has also
determined that the above provision of law is not a general authorization
for a public official to contract with his governmental body where such is
otherwise prohibited by law.
In the instant matter, it is noted that the Ben Avon Council entered
into a number of loans with various banks, established various bank
accounts and also transferred the borough safe deposit box. The minutes
of the Ben Avon Borough Council meeting reflect that you did participate,
make motions or second motions and vote on certain matters relating to Tax
Anticipation Loans involving Mellon Bank of which you are a Vice - President
and currently a Relationship Representative IV in the Community Banking
Department. Prior to a September 10, 1985 meeting regarding a bank loan
for road resurfacing, you reported on loan rates as to four banks, one of
which was Mellon. It is noted that you abstained as to the motion which
gave the loan to Mellon Bank. However, in a October 15, 1985 meeting,
after you advised that Mellon had approved a loan for $67,000.00, you made
a motion to give the Finance Committee approval to execute the required
documentation and you voted in favor of that motion which was carried
unanimously. Further, on November 12, 1985, you made a motion and voted
in favor: of said motion regarding a capital expenditure resolution for
transmitting same to Mellon Bank regarding the matter of the loan.
Thereafter, in a matter concerning a Tax Anticipation Note, you in a
February 11, 1986 meeting made a motion and voted in favor of a proposal
18
:Wade by Mellon BE nk as to the Tax Note. The fo : :ec ing °.gas after you
noted that Melton Bank su},mitted the lowest big. consisting cf a rate of
5.7 %. At that same meeting, y :u voted in falvIr ,f a motion Lo approve a
resolution authorizing such borrowing. In a ;!arch 11, 1986 meeting, you
riade a motion and voted in favor of a resolution which would establish
cr:pository accounts with helion Bank. You further participated in a
matter on May 13 1986, regarding the rental of a safe deposit box in the
Bellevue Office of Mellon Bank which was to se :_°ve as the depository for
financial papers and insurance policies of the borough. In a January 13,
1987 meeting concerning a $100,000.00 Tax Anticipation Note, you abstained
x:'Iaarding the voting as to the award of the loan with Mellon Bank.
_gs.,ver, on February 10, 1987, you voted in favor of a motion which
accepted the proposal to purchase the Tax Anticipation Loan from Mellon
Rank. In addition, you voted in favor of the resolution which authorized
bor :owing of the anticipation loan for taxes and current revenue.
Fi :•.ally, in a January 20, 1988 meeting, it is noted that you abstained on
the matter as to whether Mellon Bank should be retained as treasurer . -irele
it was appointed depository.
It is clear from the above that you did engage at various times in
participating, making motions, seconding motions or voting as to finanr :al
relationships between the borough and Mellon Bank. Further, it is c. ar
that Mellon Bank is a business with which you are associated.
Since you are a Vice - President and are employed in the current
position of a Relationship Representative IV in the Community Wanking
Department, it is clear that Mellon Bank under the Ethics Act is
bus'l ess with which you are associated.__ Thus, you are a public official
and you have used public office via your participation in making motions,
seconding motions or voting to obtain a financial Cain for :..lion Bank
which is a business with which you are associated and which is not part of
your compensation as provided for by law as a borough councilmember.
Accordingly, all of the necessary elements to establish a 3(a) violation
of the Ethics Act have occurred in this case. However, considering the
totality of all the facts and surrounding circumstances, this Commission
finds that your actions did not result in P.ny financial gain being
realized by you and as such this Commission will take no further action.
Turning to the matter of the possible violation of Section 3(c) of
the Ethics Act, although you are an officer of Mellon Bank which entered
into the contracts with the borough, it is noted, however, that these
contracts were awarded through an open and public process. Therefore, in
light of the fact that these contracts were put out on bids and awarded to
the lowest bidder, this Commission finds that there is no violation of
Section 3(c) of the Ethics Act..
Ms. Jane Angelini
Page 19
C. Conclusion and Order:
1. As a Ben Avon Councilmember, you are a public official subject
to the provisions of the Ethics Act.
2. There is a violation of Section 3(a) of the Ethics Act Ti'hen you
participated, made motions, seconded motions and voted
regarding various financial arrangements between Ben Avan
Borough and the Mellon Bank which is a business with which you
are associated. However, considering the totality of all the
facts and surrounding circumstances, this Commission finds that
your actions did not result in any financial gain being realized
by you and as such this Commission will take no further action.
3. You did not violate Section 3(c) of the Ethics Act when the Ben
Avon Borough entered into contracts with Mellon Bank which were
awarded through an open and public process.
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 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,
Joseph W. Marshall, III
Chairman