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HomeMy WebLinkAbout1170 SauersIn Re: Sauers File Docket: X -ref: Date Decided: Date Mailed: Before: Daneen E. Reese, Chair John J. Bolger Frank M. Brown Susan Mosites Bicket 99- 014 -C2 Order No. 1170 12/12/00 12/27/00 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was filed and a hearing was waived. The record is complete. A Consent Agreement was submitted by the parties to the Commission for consideration which was subsequently approved. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11, Act 93 of 1998, which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under Act 93 of 1998. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with Chapter 11 of Act 93 of 1998. Any person who violates confidentiality of the Ethics Law is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year. Confidentiality does not preclude discussing this case with an attorney at law. Sauers, 99- 014 -C2 Page 2 I. ALLEGATION: That James Sauers, a public official /public employee in his capacity as Chief Financial Officer for the Morrisville School District, Bucks County, violated Sections 3(a) and 3(g) of the State Ethics Act (Act 93 of 1998, 65 Pa.C.S. §1101 et seq.) when he used the authority of his position for a private pecuniary benefit of himself and /or a business with which he is associated by participating in discussions and recommendations resulting in the selection of R. J. Davey Company, a company with which he is associated, and serving as the company's representative to the school district; when he made representations before the school district on behalf of R. J. Davey Company within one year of leaving school district employment; and when he approved payments to the R. J. Davey Company in his position as Chief Financial Officer. II. FINDINGS: 1. James J. Sauers was employed as Chief Financial Officer (CFO) for the School District of the Borough of Morrisville, Bucks County, from February 18, 1998, to March 13, 1998. a. The position of Chief Financial Officer was previously titled Business Manager. 2. The duties of the Chief Financial Officer for the district included responsibility for oversight of payroll preparation, account payable functions, budget preparation and monitoring, capital budget and monitoring, preparation of the required financial reports including Pennsylvania Department of Education items, purchasing, supervision of maintenance and food service departments, and attendance at all school board meetings and budget meetings. 3. On or about February 26, 1998, Sauers informed Superintendent Gould that he was leaving the CFO position for a job in the health care field. a. Superintendent Gould did not want Sauers to resign as the school district was in the process of preparing its annual budget, a job function of the Chief Financial Officer and discussed the possibility of Sauers continuing as CFO. 4. Sauers suggested to Gould that the school district engage the services of the R. J. Davey, Inc., Company for the purpose of handling the day -to -day responsibilities of the Chief Financial Officer and the business Manager. a. The Superintendent, Board and Solicitor would consider this suggestion if Sauers were to personally continue to perform the functions of CFO. b. At the time of his discussion with Gould, Sauers had been hired as a principal of R. J. Davey, Inc. 5. The R. J. Davey, Inc., Company was incorporated under Pennsylvania statutes on October 24, 1997. a. The R. J. Davey Company is in the business of providing financial and computer consulting. 6. On March 4, 1998, Robert J. Davey, III, President and founder of R. J. Davey, Inc., sent a letter to Superintendent Gould proposing that the R. J. Davey Company provide the functions of business manager for the school district to include the following: Sauers, 99- 014 -C2 Page 3 a. Oversight of payroll preparation; b. Accounts payable functions; c. Budget preparation and monitoring; d. Capital budgeting and monitoring; e. Preparation of required financial reports including Pennsylvania Department of Education items; f. Purchasing and supervision of maintenance and food service departments; [and] g. Maintaining relationships with financial institutions, law firms, public accounting firms and other professionals required in the normal operations of the district. 7 Davey's proposal suggested that his company begin the contract on March 1, 1998, and continue on a trial basis until June 30, 1998. a. Davey added that if the board were satisfied with the services provided by the R. J. Davey Company, the engagement would be extended to June 30, 1999. 8. Davey's proposal included a monthly fee for services of $7,000.00 and further provided that James J. Sauers, CPA, would be the managing partner for the Morrisville School District engagement. 9. The proposal included a section titled "Our understanding of your situation" which stated that "Mr. Sauers had completed a preliminary review of the district's systems and controls. He believes that a full time business manager is not cost effective for a district of this size. There is a need to apply the majority of the district's resources directly to education demands with overhead expenditures kept at a minimum without sacrificing operation efficiency. And, accordingly, we are proposing that the functions of the business manager be provided by the R. J. Davey Company." a. After March 13, 1998, Sauers was employed by R. J. Davey Company to serve as CFO /Business Manager for the Morrisville School District. 1. He continued to serve in the capacity until September 30, 1998. b. Sauers' employment agreement with the R. J. Davey Company called for him to be compensated at one -half of the net profit from the Morrisville School District contract. 10. During an executive session of the March 11, 1998, Morrisville School District Board meeting Gould informed the board members that Sauers was leaving his position as Chief Financial Officer for the school district and, based on the information provided by Sauers, he recommended the school board engage the services of the R. J. Davey Company. a. Sauers informed the school board, at the March 11, 1998, executive session, that he would continue to perform the duties of Chief Financial Officer, as a R. J. Davey Company employee, should the school board decide to hire the R. J. Davey Company. Sauers, 99- 014 -C2 Page 4 11. At the March 11, 1998, board meeting, the school board voted to utilize the services of the R. J. Davey Company with Sauers performing the duties of the Chief Financial Officer, until the next executive session scheduled for March 25, 1998. 12. On March 25, 1998, the Morrisville School Board approved the Memorandum of Understanding prepared by School Board Solicitor Thomson, addressed to James J. Sauers, outlining the conditions of the contract. 13. Thomson presented the Memorandum of Understanding to Sauers for his review following board approval. 14. On May 6, 1998, Sauers returned the Memorandum of Understanding containing the signatures of James J. Sauers, CPA, and Robert J. Davey, III, CPA, to Thomson. 15. The Morrisville School Board approved the Memorandum of Understanding at their May 27, 1998, meeting. a. The Memorandum of Understanding stated the board's agreement was contingent on Sauers' agreement to continue to serve as Chief Financial Officer of the district and to continue to be responsible for all duties and obligations of the District Business Manager which included oversight of payroll preparation, account payable functions, budget preparation and monitoring, capital budget and monitoring, preparation of the required financial reports, including Pennsylvania Department of Education items, purchasing and supervision of maintenance and food service departments. b. The Memorandum of Understanding further stated that the school district understood Sauers would not be on site but would remain fully responsible for all functions and work generated or required by the business office. c. The agreement also provided that R. J. Davey would provide an individual on site 220 days per year. d. The agreement was to be effective March 1, 1998, and provided that the district would pay R. J. Davey a flat monthly fee of $7,000.00. e. No payment would be made directly to Sauers by the school district. 16. Sauers was compensated by the Morrisville School District for duties related to his position as CFO, prior to his employment with R. J. Davey. a. The compensation covered the period February 16, 1998, to March 13, 1998. 17. On February 26, 1998, the Morrisville School District compensated Sauers, by check number 023619 in the amount of $2,213.19 ($3,192.31 less deductions), for work as an employee of the school district during the ten working day period of February 16, 1998, to February 20, 1998, and February 23, 1998, to February 27, 1998, inclusive. 18. On March 12, 1998, the Morrisville School District compensated Sauers, by check number 023786 in the amount of $2,213.19 ($3,192.31 less deductions), for work as an employee of the school district during the ten working day period of March 2, 1998, to March 6, 1998, and March 9, 1998, to March 13, 1998, inclusive. 19. On March 16, 1998, Sauers presented the Morrisville School District with a Sauers, 99- 014 -C2 Page 5 personal check (check number 1513, dated 03/16/98) in the amount of $5,200.00 drawn on his account at the Core States Bank. a. The memo section of the check stated it was a "Donation /Reimbursement." 20. Effective March 16, 1998, Sauers performed the duties of the school district's chief financial officer /business manager exclusively as a R. J. Davey principal while other R. J. Davey employees assisted with these duties. 21. The school district of the Borough of Morrisville made payments totaling $45,500 to the R. J. Davey Company for services provided under the March 25, 1998, Memorandum of Understanding. 22. In May of 1998 Superintendent Gould authorized the R. J. Davey Company to perform services related to the district's instructional technology program. a. Gould authorized the contract after discussions and negotiations with Sauers and R. J. Davey employees. b. The services authorized by Gould were recommended by Sauers and R. J. Davey Company. c. The proposal required the school district pay R. J. Davey $2,000.00, per month, for a five month period. 23. The R. J. Davey Company was compensated for the computer network and user support work on 10/14/98 with school district check number 12291 which in part included the payment of $10,000 for the work authorized by Superintendent Gould. 24. In June 1998 Sauers became aware of district projects planned to connect the elementary school to the computer network and to upgrade the high school computer lab. a. Sauers was also aware that the district's technology director was planning on leaving the district in June 1998. 25. Sauers and Davey employees discussed with Superintendent Gould the possibility of R. J. Davey Company managing instructional technology resources, including the position of technology director. 26. Robert J. Davey subsequently submitted a proposal to Gould dated June 17, 1998, which outlined the Davey Company's approach to managing the technology department for a monthly fee of $4,000.00. a. The proposal listed Sauers as one of the company's principals who would be performing the service. 27. During the June 17, 1998, school board meeting executive session, Davey outlined his proposal that the R. J. Davey Company provide the school district with managerial services for the Instructional Technology Department on various school district projects. 28. On August 4, 1998, the school board approved a motion which awarded the R. J. Davey Company a contract to provide service related to instructional technology projects outlined in Robert Davey's proposal of June 17, 1998. a. The approved contract was for the R. J. Davey Company to provide Sauers, 99- 014 -C2 Page 6 technology services for a three month period at a monthly charge of $4,000 per month. 29. The School District of the Borough of Morrisville made payments to the R. J. Davey Company totaling $29,600 for services provided under the June 17, 1998, proposal: ($4,000 of this payment was for October's technology service) 30. On August 10, 1998, Superintendent Gould discussed with James Sauers and Robert Davey the installation of 42 new Dell computers and 4 HP laser jet printers in district schools. 31. On August 10, 1998, the R. J. Davey Company submitted an invoice for $6,675.00, to Gould, as payment for the installation. a. Gould approved payment of the invoice by school district check no. 11958, dated August 10, 1998, in the amount of S6,675.00. 32. Between June and September 1998, Sauers approached Gould regarding potential contracts for additional services R. J. Davey Co. could provide to the school district. 33. Based on discussions with Sauers and the Davey Co., Gould authorized additional computer network related services with R. J. Davey Company. 34. On September 22, 1998, Superintendent Gould negotiated a contract with Robert Davey and James Sauers for the R. J. Davey Company to perform the following work: a. Wiring /conversion /network administration for Grandview Elementary School computer lab - $9,250.00. b. Trouble shoot, secure memory and software licenses and installation at the Holy Trinity School - $3,250.00. c. Wiring and business office support for conversion of business office system for Y2K compliance - $4,500.00. Total: $17,000 35. On September 22, 1998, the R. J. Davey Company submitted invoices to Superintendent Gould for the above work. 36. On September 23, 1998, Superintendent Gould authorized the payment of check no. 12254 in the amount of $21,600.00, which included the $17,000.00 payment for the above invoice. 37. The work described in the Grandview Elementary School invoice had previously been contracted out to the IT Partners Company of Lansdale, PA, in June of 1998 and the company was paid, in advance, to perform the work. 38. On September 23, 1998, Superintendent Gould signed personnel documentation terminating James Sauers as Chief Financial Officer /Business Manager and discontinuing the Memorandum of Understanding between the School District and R. J. Davey. 39. On September 23, 1998, the board approved the motion to accept the resignation of Mr. James Sauers, Chief Financial Officer, and to discontinue the Memorandum of Sauers, 99- 014 -C2 Page 7 Understanding between the School District of Morrisville Borough and R. J. Davey & Company, Inc., effective September 30, 1998. 40. On or about October 13, 1998, Superintendent Gould discussed with R. J. Davey & Company employees of the school district's computer system and technology development. a. Gould advised the Davey Company to submit a proposal for managing the district's instructional technology resources. 41. On October 13, 1998, the R. J. Davey Company submitted a proposal to Morrisville School District Superintendent Gould outlining a number of services they would provide to the School District for management of the Instructional Technology resources needed [to] upgrade and maintain the District's computer system. a. The proposal was signed by Robert J. Davey, III, CPA, President, and James J. Sauers, CPA, Director. 42. Davey's proposal highlighted the company's work on the district's computer system pursuant to a prior contract authorized by Gould in May 1998. a. Davey's proposal noted a lack of cooperation from one of the district's other vendors in upgrading the district's computers. b. The proposal also highlighted design problems, hardware and software problems, lack of maintenance contracts and inadequate security. c. Davey's proposal required a fee of $6,000.00 per month. 43. On October 28, 1998, the Morrisville School Board approved a motion to contract with the R. J. Davey Company to provide technical services to the District at a rate of $6,000.00 per month for the remainder of the 1998 -1999 school year. 44. The school district of the Borough of Morrisville made payments to the R. J. Davey Company totaling $14,000 for services provided under the October 13, 1998, proposal: (The balance of the January bill was paid by a credit issued because of an overpayment of $4,000.00 paid on check number 12291). 45. From March 16, 1998, until September 30, 1998, the period that Sauers served as CFO /Business Manager for the school district, the following payments were made to R. J. Davey Co. by the school district. a. CFO /Business Manager $45,000.00 03/25/98 Contract (Finding No. 12) b. May 1998 agreement $10,000.00 (Finding No. 22) c. June 17, 1998, agreement $25,000.00 (Finding No. 27) d. September 22, 1998, agreement $17,000.00 (Finding No. 34) $98,100.00 46. Davey was paid an additional $14,000.00 by the school district after the agreement Sauers, 99- 014 -C2 Page 8 to serve as CFO /Business Manager for the school district was terminated. 47. R. J. Davey Company was paid a total of $112,100.00 for services by the Morrisville School District. 48. During the period that R. J. Davey Company served as the school district's CFO, Sauers was compensated by the R. J. Davey Company, in the amount of $31,375 for services related to his role as Morrisville School District Chief Financial Officer /Business Manager. 49. Sauers was also compensated by the Morrisville School District for the period March 2, 1998, to March 13, 1998, while simultaneously being employed by the R. J. Davey Company. 65 P.S. §402. a. Sauers received a net payment of $2,213.19 for this period. III. DISCUSSION: At all times relevant to this matter, the Respondent, James J. Sauers, hereinafter Sauers, has been a public employee subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq. as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 P.S. §1101 et seq., which Acts are referred to herein as the "Ethics Act." The issue is whether Sauers violated Sections 3(a) and 3(g) of the Ethics Act as to the allegation that he used the authority of his office as Chief Financial Officer (CFO) of the Morrisville School District (School District) for the private pecuniary benefit of himself and /or R. J. Davey, Inc. Company (R. J. Davey), a business with which he is associated, when he participated in discussions and recommendations resulting in the selection of R. J. Davey to provide management services to the School District, served as R. J. Davey's representative to the School District, and approved payments to R. J. Davey in his capacity as CFO; and when he represented R. J. Davey before the School District within one year of leaving School District employment. Pursuant to Section 3(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest. The term "conflict of interest" is defined under Act 9 of 1989 as follows: Section 2. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. Sauers, 99- 014 -C2 Page 9 Section 3(a) of the Ethics Law prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Under Section 3(g) of Act 9 of 1989, a former public official /public employee is prohibited from representing a person for compensation on any matter before the governmental body with which he was associated for a period of one year after he leaves that body. The terms "governmental body ", "person ", and "represent" are defined in the Ethics Law as follows: facts. Section 2. Definitions "Governmental body." Any department, authority, commission, committee, council, board, bureau, division, service, office, officer, administration, legislative body, or other establishment in the Executive, Legislative or Judicial Branch of a state, a nation or a political subdivision thereof or any agency performing a governmental function. "Person." A business, governmental body, individual, corporation, union, association, firm, partnership, committee, club or other organization or group of persons. "Represent." To act on behalf of any other person in any activity which includes, but is not limited to, the following: personal appearances, negotiations, lobbying and submitting bid or contract proposals which are signed by or contain the name of a former public official or public employee. 65 P.S. §402. Having noted the issues and applicable law, we shall now summarize the relevant Sauers was employed as the CFO for the School District from February 18, 1998, to March 13, 1998. The CFO position was previously titled Business Manager. As the School District CFO, Sauers was responsible for overseeing the preparation of payroll, performing accounts payable functions, preparing and monitoring the budget and capital budget, preparing the required financial reports including Pennsylvania Department of Education items, purchasing, supervising the maintenance and food service departments, and attending all school board and budget meetings. In February 1998, Sauers informed Superintendent Gould (Gould) that he would be leaving the School District to take a job in the health care field. Gould did not want Sauers to resign because the School District was in the process of preparing its annual budget. When Gould discussed the possibility of Sauers continuing his job as CFO, Sauers suggested that the School District engage the services of R. J. Davey, a company that provided financial and computer consulting services, to handle the daily responsibilities of the School District CFO and Business Manager. At the time of the discussion between Gould and Sauers, Sauers was a principal of R. J. Davey. On March 4, 1998, Robert J. Davey, III (Mr. Davey), the President of R. J. Davey, sent a letter to Gould proposing that R. J. Davey perform all the responsibilities of the School District CFO and maintain relationships with financial institutions, law firms, public Sauers, 99- 014 -C2 Page 10 accounting firms, and other professionals who would be needed in the normal operations of the School District. The proposal provided for a $7,000.00 monthly fee and stated that James J. Sauers, CPA would be the managing partner for the School District engagement. On March 11, 1998, the School District voted to utilize the services of R. J. Davey on the condition that Sauers continue to perform the functions of CFO until the School District's next executive session. On March 16, 1998, Sauers began to perform the duties of School District CFO /Business Manager exclusively as a principal of R. J. Davey. On May 27, 1998, the School Board approved a Memorandum of Understanding (Memorandum) executed by Sauers, Mr. Davey and the School Board Solicitor that provided, among other things, that the School Board's agreement to engage R. J. Davey would be contingent upon Sauer continuing his responsibilities as the Business Manager. The Memorandum also provided that the Board would make no direct payment to Sauers, but would pay R. J. Davey a flat monthly fee of $7,000.00. The School District paid R. J. Davey $45,500.00 for services provided under the Memorandum. In May 1998, Gould authorized R. J. Davey to perform services related to the School District's instructional technology program after discussing the matter with Sauers and R. J. Davey employees. R. J. Davey proposed to provide services to the School District for $2,000.00 per month for five months. On October 14, 1998, the School District paid R. J. Davey $10,000.00 for computer network and user support services. In June 1998, Sauers and R. J. Davey employees discussed with Gould the possibility of R. J. Davey managing the School District's instructional technology resources and fulfilling the functions of the School District's Technology Director who was planning to leave that month. R. J. Davey submitted a proposal to Gould outlining the company's approach to managing the technology department for a monthly fee of $4,000.00. The proposal listed Sauers as one of the company's principals who would be performing the services. On August 4, 1998, the School Board awarded a contract to R. J. Davey pursuant to which the latter agreed to render technology services to the School District for $4,000.00 per month for a period of three months. Under the August 4, 1998, agreement, the School District paid R. J. Davey $29,600.00 for technology services. On August 10, 1998, Gould, Sauers and Mr. Davey discussed the installation of 42 new computers and 4 laser printers in the district schools. That same day, R. J. Davey submitted an invoice to the School District and was paid $6,675.00 for installation services. Between June and September 1998, discussions between Sauers, R. J. Davey and Gould resulted in a contract for additional computer related services for which the School District paid R. J. Davey $21,600.00. On September 23, 1998, Gould terminated Sauers as CFO /Business Manager and discontinued the Memorandum between the School District and R. J. Davey. The following month, Sauers and Mr. Davey signed a proposal to the School District outlining various services that R. J. Davey would provide to the School District to manage the Instructional Technology resources needed to upgrade and maintain the School District's computer system. The School District accepted the proposal and entered into a contract with R. J. Davey for technical services at the rate of $6,000.00 per month for the remainder of the 1998 -1999 school year. Per the contract, the School District paid R. J. Davey $14,000.00. During the time that R. J. Davey served as the School District's CFO /Business Manager, it received $112,000.00 from the School District for computer related services while Sauers received $31,375.00 as an R. J. Davey employee for his role in such services to the School District. Sauers, 99- 014 -C2 Page 11 Having highlighted the facts and issues, we must now determine whether the actions of Sauers violated Sections 3(a) and 3(g) of Act 9 of 1989. The parties have submitted a Consent Agreement together with a Stipulation of Findings wherein they propose to resolve the case by finding no violation of Section 3(a) of the Ethics Act in relation to the selection of R. J. Davey Company to provide management services to the School District or with regard to the approval of payments thereto, as there was no use of authority of office by Sauers when he served as the School District's CFO; violations of Section 3(g) of the Ethics Act in relation to the various occasions when Sauers represented his employer, R. J. Davey Company, before the School District within one year of leaving his employment with the School District; and a payment of $4,000.00 by Sauers within 30 days of the issuance of this Order through this Commission to the Commonwealth of Pennsylvania. With regard to the allegation that Sauers violated Section 3(a) of the Ethics Act by participating in discussions and recommendations resulting in the selection of R. J. Davey to provide services to the School District, serving as R. J. Davey's representative to the School District, and approving payments to R. J. Davey in his capacity as CFO, we find insufficient evidence to establish such a violation. The facts do not provide a basis for finding a use of authority of office by Sauers in his official actions as the School District CFO. A violation of Section 3(a) of the Ethics Act may not be found absent some use of authority of office for a private pecuniary benefit. Accordingly, Sauers did not violate Section 3(a) of the Ethics Act regarding the selection /provision of services by R. J. Davey for the School District based upon an insufficiency of evidence. As to the allegation regarding Section 3(g) of the Ethics Act, this provision prohibits a former public official /public employee from representing a person for compensation before his former governmental body for a period of one year after termination of service. In applying the provisions of the Ethics Act to the instant matter, we find that Sauers engaged in prohibited representation in violation of Section 3(g) of the Ethics Act within one year of leaving employment with the School District on March 13, 1998. First, written materials containing Sauers' name were submitted to or reviewed by the School District on several occasions. On March 25, 1998, and May 27, 1998, the Memorandum addressed to and signed by Sauers was presented to the School District for its approval. The Memorandum provided that the School District's agreement was contingent upon Sauers' agreement to continue to serve as CFO for the School District. On June 17, 1998, a proposal listing Sauers as one of R. J. Davey's principals who would be performing services for the School District was discussed during a School Board executive session. On October 13, 1998, a proposal signed by Sauers was submitted to the School District which outlined a number of services that R. J. Davey would provide to the School District to manage the Instructional Technology resources. Second, Sauers participated in discussions and negotiations with School District Superintendent Gould, a representative of his former governmental body, pertaining to additional work to be performed by R. J. Davey or possible contracts between the School District and R. J. Davey. As to the above, Sauers engaged in the activities for compensation before his former governmental body, the School District, within one year of terminating his employment with the School District and violated Section 3(g) of the Ethics Act. As to the Stipulation of Findings and Consent Agreement, we believe that the Consent Agreement is the proper disposition for this case based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, Sauers is directed to make the payment of $4,000.00 to the Commonwealth of Pennsylvania through this Commission within 30 days of the date of issuance of this Order. Sauers, 99- 014 -C2 Page 12 Compliance with the foregoing will result in the closing of this case with no further action. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Sauers, as Chief Financial Officer for the Morrisville School District, was a public employee subject to the provisions of Act 9 of 1989/Act 93 of 1998, Chapter 11. 2. Sauers did not violate Section 3(a) of the Ethics Act when he participated in discussions and recommendations resulting in the selection of R. J. Davey Company to provide services to the School District, served as R. J. Davey Company's representative to the School District, and approved payments to R. J. Davey Company in his capacity as CFO, based upon an insufficiency of evidence. 3. Sauers violated Section 3(g) of the Ethics Act when, within one year after he left School District employment, he signed written materials for submission to or review by the School District and when he participated in discussions and negotiations with School District Superintendent Gould, a representative of his former governmental body, pertaining to additional work to be performed by R. J. Davey Company or possible contracts between the School District and R. J. Davey Company. In Re: Sauers File Docket: Date Decided: Date Mailed: ORDER NO. 1170 99- 014 -C2 12/12/00 12/27/00 1 Sauers, as Chief Financial Officer for the Morrisville School District, did not violate Section 3(a) of the Ethics Act when he participated in discussions and recommendations resulting in the selection of R. J. Davey Company to provide services to the School District, served as R. J. Davey Company's representative to the School District, and approved payments to R. J. Davey Company in his capacity as CFO, based upon an insufficiency of evidence. 2. Sauers violated Section 3(g) of the Ethics Act when, within one year after he left School District employment, he signed written materials for submission to or review by the School District and when he participated in discussions and negotiations with School District Superintendent Gould, a representative of his former governmental body, pertaining to additional work to be performed by R. J. Davey Company or possible contracts between the School District and R. J. Davey. 3. As per the Consent Agreement, Sauers is directed to make the payment of $4,000.00 to the Commonwealth of Pennsylvania through this Commission within 30 days of the date of issuance of this Order. a. Compliance with the foregoing will result in the closing of this case with no further action by the Commission. b. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION, DANEEN E. REESE, CHAIR