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HomeMy WebLinkAbout93-002 FenicleSTATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 OPINION OF TH COMMISSION Before: James M. Howley, Chair Daneen E. Reese, Vice Chair Dennis C. Harrington Roy W. Wilt Austin M. Lee Allan M. Kluger DATE DECIDED: May 7, 1993 DATE MAILED: May 20, 1993 93 -002 Thomas A. Laser c/o Linus E. Fenicle, Esquire Hetrick, Zaleski, Ernico & Pierce 10 South Market Square, Suite 500 P.O. Box 1265 Harrisburg, PA 17108 -1265 Re: Conflict, Public Official, Second Class Township, Supervisor, Use of Authority of Office, Proposed Development, Real Estate Interest, Immediate Family, De Minimis, Class, Subclass, Affect to the Same Degree, Facts, Appeal of Advice. Dear Mr. Laser: This Opinion is issued pursuant to the appeal of the Advice of Counsel, No. 93 -527 issued on March 19, 1993. I. ISSUE: Whether under the Public Official and Employee Ethics Law a township supervisor would have a conflict of interest or would be within the "subclass" exclusion to the statutory definition of "conflict of interest," in matters pertaining to a proposed development which would be adjacent to the supervisor's residential property as well as other properties. II. FACTUAL BASIS FOR DETERMINATION: The presented issue was originally processed as a request for an Advice of Counsel and as a result Advice of Counsel, No. 93 -527 Thomas A. Laser May 20, 1993 Page 2 was issued on March 19, 1993. That Advice concluded that as a Township Supervisor for Freedom Township in Adams County, Pennsylvania, Thomas A. Laser (Laser) is a "public official" subject to the Ethics Law, and that based upon the submitted facts, he would have a conflict of interest as to a proposed development of a Bible conference and retreat center on approximately 500 acres of land which abuts his residential property. The Advice further concluded that the submitted facts failed to meet the burden to demonstrate that he would fit within the "subclass" exclusion to the definition of "conflict of interest." He was further advised that in each instance of a conflict of interest, he would be required to abstain and to satisfy the disclosure requirements of Section 3(j) of the Ethics Law. On April 5, 1993, this Commission received his letter of March 31, 1993, wherein he appealed the above Advice. By letter dated April 15, 1993, he was notified of the date, time, and location of the public meeting. The appeal of advice does not delineate any specific objection to the Advice. Rather, the appeal simply requests the opportunity to provide the full Commission with additional information or evidence necessary for a complete and final ruling. In this regard, it is noted that the appeal of Advice itself does not contain any factual submissions, nor does it contest the facts as set forth in Advice of Counsel No. 93 -527, which facts are therefore incorporated herein by reference as if more fully set forth. Prior to the hearing on the appeal, the Freedom Township Solicitor submitted a letter dated April 30, 1993 . arguing that Laser is a member of a class /subclass so as to be excepted from the . definition of conflict. Freedom Township has the smallest population (692) of the 21 townships in Adams County. The development of a conference /retreat center designed to accommodate 1300 people per night is perceived to affect Township residents in three different areas. First, citizens in two Townships reside on 22 properties that directly abut the development and reside on 25 properties that are directly across the road from the development. Of those properties that are in Freedom Township, 44 citizens, based upon a 90% joint ownership, would live in the immediate vicinity of the development. Second, since the development is located in the northwest corner of the Township, a location that is the farthest point from the main roads, the development traffic would have to travel the length or breadth of the Township. It is argued that the cars and trucks hauling food, supplies and waste to or from the development could affect 99 properties and 187 citizens. Third, since the development straddles the Middle Creek Trout Stream, which spans half the length of the Township, a proposed sewage treatment plant for the development could empty up Thomas A. Laser May 20, 1993 Page 3 to 75,000 gallons of effluent into the trout stream daily. It is asserted that 47 citizens from 25 properties with stream frontage could be affected. It is argued that Laser is affected as one of the 44 landowners in the vicinity and as an acreage landowner, he is affected equally noting that he is not close or far from the development, is the owner of an average size lot of 1.3 acres and is the owner of an average size or value house. Laser is affected far less as to transportation or the trout stream in that he does not live on the three roads that would handle the main traffic and does not own frontage on Middle Creek. Since appraisals were not obtained, neither Laser nor the Township Solicitor would speculate as to the impact of the development on the value of Laser's property. Additional commentary was provided by one of the developers, Mrs. Crowley, and her counsel. The site was selected for development as a rural area for a Bible conference /retreat center. The goal is for a retreat which is rural, beautiful and near to its natural state. Another development has operated for over 20 years and it is believed that the property value there did not decrease as a result of that retreat conference. Lastly, the developer's counsel believes that, although not an issue before the Commission, there exists a bias or prejudice by Laser regarding the development. III. DISCUSSION: As a Supervisor in Pennsylvania, Thomas A. Laser term is defined under Act 9 of the Commission. Freedom Township, Adams County, (Laser) is a public official as that 1989 and the current regulations of We must determine whether as a Township Supervisor residing on one of various properties adjacent to the lands of a proposed development, Laser would have a conflict of interest under Section 3(a) of the Ethics Law so as to prohibit his participation in matters pertaining to the proposed development, or whether he would fit within the "subclass" exclusion to the definition of "conflict of interest" as set forth in Section 2 of the Ethics Law, 65 P.S. 5402. "`Section 3(a) of the Ethics Law provides: Section 3. Restricted Activities. (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. Thomas A. Laser May 20, 1993 Page 4 The following terms are defined in the Ethics Law as follows: Section 2. Definitions. "Conflict or conflict of interest." Use by a public official or public employee of the authority of ILLs office or employment or any confidential_Wetmation 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. "Authority of office or employment." The actual power provided by law, the exercise of which is necessary to the performance of duties and responsibilities unique to a particular public office or position of public employment. Section 3(j) of the Ethics Law provides as follows: Section 3. Restricted activities. (j) Where voting conflicts are not otherwise addressed by the Constitution of Pennsylvania or by any law, rule, regulation, order or ordinance, the following procedure shall be employed. Any public official or public employee, who in the discharge of his official duties, would be required to vote on a matter that would result in a conflict of interest shall abstain from voting and, prior to the vote being taken, publicly announce and disclose the nature of his interest as a public record in a written memorandum filed with the person responsible for recording the minutes of the meeting at which the vote is taken, provided that whenever a governing body would be unable to take any action on a matter Thomas A. Laser May 20, 1993 Page 5 before it because the number of members of the body required to abstain from voting under the provisions of this section makes the majority or other legally required vote of approval unattainable, then such members shall be permitted to vote if disclosures are made as otherwise provided herein. In the case of a three- member governing body of a political subdivision, where one member has abstained from voting as a result of a conflict of interest, and the remaining two members of the governing body have cast opposing votes, the member who has abstained shall be permitted to vote to break the tie vote if disclosure is made as otherwise provided herein. If a conflict exists, Section 3(j) requires the public official /employee to abstain and to publicly disclose the abstention and reasons for same, both orally and by filing a written memorandum to that effect with the person recording the minutes or supervisor. In the event that the required abstention results in the inability of the governmental body to take action because a majority is unattainable due to the abstention(s) from conflict under the Ethics Law, then in that event participation is permissible provided the disclosure requirements noted above are followed. lee, Mlakar, Advice 91-523-S. For an appropriate disposition of these types of cases involving conflict issues with proferred de minimis or class/ subclass exclusions, it is imperative that the requestor of an advisory submit sufficient facts for the Commission to determine whether there is a pecuniary benefit and the amount, and if so, whether the conflict is de minimis or affects to the same degree a class /subclass. Advice of Counsel No. 93 -527 applied the above provisions of the Ethics Law to the facts which Laser presented in his initial letter of inquiry, and determined that the statutory elements for a conflict of interest would be present. Those elements are found within the definition of "conflict of interest" itself, set forth above, and exist where a public official /public employee uses the authority of his public position or confidential information received by being in that position 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. Although Laser did not specifically appeal from the conclusion that the statutory elements for a conflict of interest exist in Thomas A. Laser May 20, 1993 Page 6 this case, additional facts and argument have been presented in an attempt to establish the applicability of the "subclass" exclusion found in the definition of "conflict of interest." In reviewing this matter, we believe that the Advice of Counsel is overly broad in its determination that Laser would have a conflict as to all future matters involving this development. However, in disposing of the appeal from the Advice, we face a conundrum in that the four individuals who made presentations did not provide any factual documentation as to the question of whether the value of Laser's property would be affected by the development, whether such economic impact would consist of an increase or decrease in land values, taxation or some other economic factor(s). Laser and his counsel indicated that they did not want to speculate on value while Mrs. Crowley, a developer, indicated that in one of her other developments, she did not believe that property values decreased as a result of that retreat /conference center. Under these circumstances, we are not in a position to say that a conflict exists since we have no evidence as to whether there is a private pecuniary benefit. The Advice assumed that the location of Laser's property would create a private pecuniary benefit. We are not prepared to say that, if one lives adjacent to a development, a pecuniary benefit would automatically follow. The same concern exists as to the question of whether the action of Laser would have a de minimis economic impact or whether . it would affect to the same degree a class or subclass. Thus, even if we had facts to determine whether a conflict existed, we still would need facts to determine whether the de minimis or class/ subclass exclusions apply. Our result should not be construed to suggest that an incomplete or deficient factual submission will supply a requestor with what he perceives to be a favorable result. All that we have determined is that the facts are insufficient to conclude that a conflict exists. If, in the instant matter, there are facts which though not presented would establish that there would be a private pecuniary benefit, then this Opinion will not accord Laser a defense under Section 7(10) of the Ethics Law. Additionally, it should be noted that during the course of Laser's presentation, it was mentioned that in the future a number of issues may arise regarding the development including fire and police protection, taxation, zoning and other matters. Our Opinion in no way relates to Laser's participation as to those issues which must be addressed as they arise. We reverse Advice of Counsel 93 -527 because there was not a Thomas A. Laser May 20, 1993 Page 7 factual basis to establish that there was a private pecuniary benefit as to Laser. We do not conclude that Laser is without a conflict based upon the same factual insufficiency. Our action merely solidifies our conclusion that there are not sufficient facts present to establish a conflict or lack thereof and without those facts we cannot say that Laser does or does not have a conflict. Summarizing the above, we are unable to find that a conflict exists in this case based upon the limited facts. Second, as to future matters involving the development before the Township Board, it is suggested that factual data, based upon competent opinion relative to the private pecuniary benefit issue, be presented so that we have sufficient facts to make a definitive determination. Lastly, the propriety of the proposed conduct has only been addressed under the Ethics Law; the applicability of any other statute, code, ordinance, regulation or other code of conduct other than the Ethics Act has not been considered in that they do not involve an interpretation of the Ethics Law. Specifically not addressed herein is the applicability of the Second Class Township Code. Advice of Counsel 93 -527 is reversed. IV. CONCLUSION: A Township Supervisor is a "public official" subject to the provisions of the Ethics Law. With regard to a proposed development on approximately 500 acres adjacent to a supervisor's residential property as well as other properties, Advice of Counsel 93 -527 is reversed in that there are not sufficient facts under the Ethics Law to conclude that a private pecuniary benefit exists so as to find a conflict of interest. Such does not constitute a general approval as to the supervisor that he may participate in all matters in connection with the developer. Each matter will have to be resolved on a case by case basis under the Ethics Law to determine whether there is a conflict. Pursuant to Section 7(10), the person who acts in good faith on this opinion issued to him shall not be subject to criminal or civil penalties for so acting provided the material facts are as stated in the request. This letter is a public record and will be made available as such. Finally, any person may request the Commission to reconsider its Opinion. The reconsideration request must be received at this Commission within fifteen days of the mailing date of this Opinion. Thomas A. Laser May 20, 1993 Page 8 The person requesting reconsideration should present a detailed explanation setting forth the reasons why the Opinion requires reconsideration. By the Commission, es M H� Chair