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HomeMy WebLinkAbout1234 CataloneIn Re: Susan Catalone File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Frank M. Brown Susan Mosites Bicket Donald M. McCurdy Michael Healey 01- 040 -C2 Order No. 1234 5/2/02 5/16/02 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 Act, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., as codified by Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101 et seq., by the above -named Respondent. At the commencement of its investi9ation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investi9ation, 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 and Stipulation of Findings were submitted by the parties to the Commission for consideration. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement was subsequently approved. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. §1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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 Act 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. Catalone 01- 040 -C2 Page 2 I. ALLEGATION: That Susan Catalone, a public official in her capacity as a member and secretary /treasurer for the Jay Township Authority Elk County, violated the Sections 3(a)/1103(a), 3(f)/1103(f), and 4(a)/1104(a) of the Ethics Act (Act 93 of 1998, 65 Pa.C.S. §1101 et seq.) when she used the authority of her office for the private pecuniary benefit of a member of her immediate family by participating in actions of the Authority resulting in payments to her husband for sewer line tap -in inspections and other repairs; when she used the authority of her office for the private pecuniary benefit of her immediate family by participating in actions of the authority resulting in payments to her husband for sewer tap -in inspections and other repairs/ when the Authority entered into a contract with Catalone's husband in excess of $500.00 without an open and public process, including prior disclosure; and when she failed to file Statements of Financial Interests with Jay Township for calendar years 1998 and 1999. II. FINDINGS: 1. Susan Catalone has served as a board member of the Jay Township Authority since August 1996. 2. Susan Catalone has also served as the secretary /treasurer for the Jay Township Authority, Elk County, since June 26, 1994. a. Catalone receives an hourly rate of pay for serving as the part -time secretary /treasurer. 3. The Jay Township Authority Board consists of five members. a. Authority board members are appointed by the Jay Township Board of Supervisors. b. Authority board members do not receive any compensation for serving on the board. c. Authority board members can receive compensation at an hourly rate for performing labor for the authority. 4. As secretary /treasurer, Catalone is responsible for the following duties: a. Accounts payable and receivable, payroll, billing, taxes, answering the phone and filing, and serving as secretary for the authority board, signing checks authorizing payments. b. There is no written job description for the position of secretary /treasurer. 5. As secretary /treasurer, Catalone is one of three signatores [sic] for the authority bank accounts. a. The authority chairman and vice - chairman also have signature authority. b. Authority checks require two signatures. 6. Catalone has been authorized by the Authority board to process and issue payroll checks and checks for goods and services without prior approval from the authority board. Catalone 01- 040 -C2 Page 3 7. Catalone submits a bill list to the authority board for its approval at regular monthly meetings. a. The bill list outlines the checks issued subsequent to the previous authority board meeting. b. The official action to approve the bill list is a blanket motion /vote. 8. The Authority constructed the Jay Township sewer system in two phases. a. The authority completed the first phase of its sanitary sewer system in 1993. b. The first phase was constructed in the Weedville area of Jay Township. c. Phase two of the sewer system was approved in 1995, started in 1998 and completed in Spring 1999. 1. The second phase connected the Byrnedale and Force areas of Jay Township to the first phase in the Weedville area. The second phase included a pump station constructed in Force. 9. In early 1999, the authority began looking for individuals to work for the authority conducting building lateral inspections for Phase II of the construction project. a. Buildings laterals are the portions of the sewer line connecting buildings to the sewer main line. b. Building lateral inspections include checking building lateral sites for the slope of the lateral; piping, ports and clean -outs; and type of back fill. 1. An inspector also needs to be present when the sewer mainline is uncovered by the contractor. 10. John Forster, Jay Township Authority Chairman, inquired at neighboring municipalities of the availability of sewer plant operators to conduct lateral inspections for Jay Township. 11. Foster contacted Vince Skrzypek and Victor Catalone to conduct the inspections. a. Vince Skrzypek agreed to conduct building lateral inspections for the authority. 1. Skrzypek worked for neighboring Fox Township Sewer Authority during that municipality's installation of a sanitary sewer system. 12. Victor Catalone, the husband of Susan Catalone, owns and operates a construction and excavation business. a. Victor Catalone began operating his business full time in 2001. 1. Victor Catalone operated his business part time for several years prior to 2001. b. Victor Catalone installed sewer laterals in Jay Township during the first phase of the sewer installation. c. Victor Catalone also performed work for the Authority to correct the infiltration problems of the first phase. Catalone 01- 040 -C2 Page 4 1. This occurred prior to his wife serving on the authority board. d. Victor Catalone also has served as a Jay Township supervisor since January 1998. 13. Forster was interested in utilizing Victor Catalone as an inspector due to Catalone's excavation and construction experience and his familiarity with the township sewer system. 14. Victor Catalone agreed to serve as an inspector for the authority rather than install laterals. a. Catalone could have made more money serving as contractor to residents installing laterals from residences to trunk lines. 15. Victor Catalone took a voluntary lay -off from his full time employment, at The Carbide /Graphite Group, St. Marys, PA, to complete lateral inspections for the authority. a. The layoff was prior to Catalone operating his excavation business on a full -time basis. b. Victor Catalone was laid off for the period of April 1, 1999, through February 15, 2000. c. Victor Catalone terminated his employment with The Carbide /Graphite Group on June 2, 2000. 16. Meeting minutes from the February 14, 1999, authority board meeting reflect that the board voted to set the rate of compensation for lateral inspections at $25.00 per inspection and that inspections would be conducted between the hours of 9:00 a.m. and 4:00 p.m. on weekdays or as directed by the authority. a. Susan Catalone was not present at this meeting and did not participate in the vote. 17. During the February 22, 1999, authority board meeting, Victor Catalone and Skrzypek were officially hired as lateral inspectors for the authority. a. Susan Catalone abstained from the vote to hire her husband. 18. The authority board also authorized members of the authority board and authority employees to conduct lateral inspections as needed. 19. The contractor guidelines outlined the policies and regulations for inspectors and contractors relating to the installation of building laterals. a. The contractor guidelines were distributed to contractors during a contractor meeting held on February 23, 1999. b. The guidelines require contractors to contact the authority secretary so that she could schedule all inspections. 20. The section of the contractor guidelines titled Inspection states, in part: Catalone 01- 040 -C2 Page 5 "You must notify the authority secretary 24 hours in advance for inspection. The authority secretary will schedule all inspections." 21. Susan Catalone, in her capacity as the authority secretary, is responsible for scheduling lateral inspections when contacted by contractors. 22. Meeting minutes confirm that the authority board did not officially vote to adopt the contractor guidelines regarding the scheduling of lateral inspections. a. Authority board members could not verify that any changes were made to the contractor guidelines regarding building lateral inspections. 23. All of the contractors who installed laterals during phase -two verified that they followed the authority's established policy, regarding notifying the authority secretary to schedule inspections, with the exception of James Hetrick. 24. James Hetrick is a contractor who completed approximately one -third of all of the building lateral installations. a. Hetrick also served as an authority board member from October 7, 1999, through December 1999. b. Hetrick and the Catalones are close personal friends. 25. Hetrick used the services of Victor Catalone to inspect all 108 lateral installations completed by Hetrick. 26. Hetrick contacted Victor Catalone directly for nearly all of the inspections of his laterals. a. Hetrick did this for his own convenience so that he would not be delayed in completing installations. b. Hetrick was aware that this was contrary to the authority's established procedure. c. Hetrick was never directed by Susan Catalone or any other authority member or representative to follow the authority's established procedure. 27. Inspectors completed a lateral inspection report for each inspection and submitted it to Susan Catalone. a. Susan Catalone generated payment to the inspectors from the inspection reports. b. Victor Catalone submitted lateral inspection reports to his wife. 28. A review of lateral inspection reports with the authority confirmed that 317 building lateral inspections were completed during phase two of the Jay Township sewer project as follows: Victor Catalone: 272 (86.0% Dave Pirazzi: 33 (10.5% Vince Skrzypek: 5 1.5% John Forster: 5 1.5% Susan Catalone: 2 0.5% Bill List D Approval Date Check No. Vote Sign Check 04 -19 -99 04 - 20 - 99 1958 Second Yes 05 -28 -99 -- 1971 -- Yes 05 -28 -99 2008 1996 -- Yes 06 -25 -99 07 -01 -99 2008 Second Yes 06 -25 -99 07 -01 -99 2018 Second Yes 06 -25 -99 -0 1 -9 -9 2031 Second Yes 07 -31 -99 0 8 -05 9 2047 Second Yes 07 -31 -99 08 -05 -99 2080 Second Yes 11 -29 -99 12 -02 -99 2201 Yes Yes 01 -28 -00 2247 -- Yes Check Date Check No. Explanation Amount $ 675.00 04 -02 -99 1958 Lateral Inspections (27) 04 -19 -99 1971 Lateral Inspections (31) 775.00 05 -07 -99 1996 Lateral Inspections (40) 1,000.00 05 -20 -99 2008 Lateral Inspections (40) 1,000.00 06 -04 -99 2018 Lateral Inspections (40) 1,000.00 06 -18 -99 2031 Lateral Inspections (40) 1,000.00 07 -06 -99 2047 Lateral Inspections (45) 1,125.00 07 -29 -99 2080 Lateral Inspections (8) 200.00 01 -12 -00 2247 Lateral Inspection (1) 25.00 Total: $6,800.00 Catalone 01- 040 -C2 Page 6 a. Dave Pirazzi is a part -time employee of the authority who typically works at the sewage treatment plant. 1. Pirazzi was taking college courses part-time during this period that limited his availability to complete inspections. b. Skrzypek terminated his employment with the authority shortly after the inspections began due to personal reasons. c. Susan Catalone and John Forster are authority members and were authorized by the authority to conduct inspections. d. Victor Catalone was the individual most available to conduct inspections. 29. Victor Catalone was paid $6,800.00 by the authority for completing building lateral inspections as follows: 30. Susan Catalone signed checks and participated in authority actions approving bill lists that included payments issued to her husband for lateral inspections as follows: a. There is no vote or approval noted in the authority meeting minutes for the 05/28/99 and 01/28/00 bill lists that included checks to Victor Catalone for inspections. 1. As secretary /treasurer, Catalone is responsible for preparing and presenting the bill lists to the board and recording official actions in the board meeting minutes. 31. Victor Catalone has also performed maintenance and repairs for the Jay Township Authority after his wife was appointed to the Authority. Check Date Check No. Invoice No Explanation Amount $ 400.00 01 -13 -99 1880 10499 Sand Removal 02 -09 -99 1909 12599 Drying Bed Repairs 300.00 05 -03 -99 1989 30199 Maintenance & 800.00 32099 Drying Beds 43099 50399 08 -12 -99 2100 073199 Sludge Hauling & 200.00 080799 Excavation 12 -08 -00 2573 120800 Waterline Repair 1,260.00 Total: $2,960.00 Catalone 01- 040 -C2 Page 7 a. Authority Member John Forster is typically the individual who authorized Victor Catalone to do repair work. b. Forster contacted Catalone due to Catalone's familiarity with the system and prior work for the Authority. 32. Victor Catalone invoiced the Jay Township Authority and was paid for maintenance and repairs from 1999 through 2000 as follows: 33. The Jay Township Authority never formally voted to approve Victor Catalone to perform any maintenance or repairs, except in relation to water line repairs detailed in Invoice No. 120800. a. Forster gave verbal authorization to Catalone to proceed with the work. b. Susan Catalone had no role with this authorization. 34. All of the work completed by Victor Catalone with the exception of sand removal was generally discussed by the authority board and noted in the authority meeting minutes as follows: a. April 1, 1999: Operator's Report- The second half of the drying beds are being repaired and should be ready for use in the next week or two. b. April 20, 1999: Operator's Report- The drying bed repairs have been completed. c. August 5, 1999: Operator's Report- Sludge hauling is scheduled for Saturday morning. d. September 2, 1999: Operator's Report- Sludge hauling will need to take place again in the near future. e. Victor Catalone was never identified as the individual who was going to or did complete any of the work. 35. The authority members were aware that Victor Catalone was performing maintenance and repairs for the authority. 36. During the November 2, 2000, authority board meeting, the authority voted to hire Victor Catalone to repair a waterline at the Force pump station (Inv. No. 120800). a. Susan Catalone was present for this meeting and abstained from the vote to hire her husband. Bill List Date Approval Date Check No. Amount Vote Sign Check 01 -18 -99 1880 $ 400.00 -- Yes 02 -12 -99 02 -16 -99 1909 300.00 Yes Yes 05 -28 -99 -- 1971 800.00 Yes 08 -27 - 09 -0 2 -99 2100 200.00 Yes Yes 12 -31 -00 01 -04 -01 2 573 $ 1,260.00 Abstained Yes Catalone 01- 040 -C2 Page 8 b. The vote was unanimous. c. The estimated cost of the repair was not discussed during this meeting. 37. The work completed by Victor Catalone authorized by the Authority resulting in payment to him in excess of $500.00 was not advertised, bid, or awarded through an open and public process. a. No other contractors were contacted or solicited for bids. 38. Susan Catalone signed checks and participated in council actions approving bill lists that included payments issued to her husband for maintenance and repairs as follows: a. There 's no vote or approval noted in the authority meeting minutes of the bill lists that included checks [sic] nos. 1880 and 1971 to Victor Catalone for various maintenance and repairs. 1. As secretary /treasurer, Catalone is responsible for preparing and presenting the bill lists to the board and recording official actions in the board meeting minutes. 39. Susan Catalone's husband, Victor Catalone, received a private pecuniary gain of $2,960.00 as a result of performing maintenance and repairs for the Jay Township Authority. a. The repair to the water line was in excess of $500.00 and was awarded without an open and public process. b. Susan Catalone voted to approve two (2) of the payments and signed all four (4) checks issued to Victor Catalone. 40. As a member and secretary /treasurer for the Jay Township Authority, Catalone filed Statements of Financial Interests (SFI) for calendar year 1997 on February 4, 1998. 41. Catalone did not timely file SFI's for calendar years 1998 and 1999. a. Catalone did not file a SFI for calendar year 1998 by the May 1, 1999 filing deadline. b. Catalone did not file a SFI for calendar year 1999 by the May 1, 2000 filing deadline. 42. Catalone filed her delinquent Statements of Financial Interests for the 1998 and 1999 calendar years on April 18, 2001. 43. Susan Catalone participated in actions of the authority board, including voting to approve payments and signing checks resulting in payments to her husband, Victor Catalone 01- 040 -C2 Page 9 Catalone, totaling $9,760.00 for performing building lateral inspections and other maintenance and repairs for the Jay Township Authority as follows: $ 6,800.00 (Lateral Inspections) $ 2,960.00 (Maintenance and Repairs) Total: $ 9,760.00 44. Catalone states she admits participating in voting to approve payments by the Jay Township Authority, which included payments to her husband, but did not believe her actions were wrong. 45. Catalone states she never intentionally tried to financially benefit from the Authority. III. DISCUSSION: At all times relevant to this matter, the Respondent, Susan Catalone, hereinafter Catalone, has been a public official 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 Pa.C.S. §1101 et seq., which Acts are referred to herein as the "Ethics Act." The allegations are that Susan Catalone, as a member and secretary /treasurer for the Jay Township Authority (Authority) violated Sections 3(a)/1103(a), 3(f)/1103(f), and 4(a)/1104(a) of the Ethics Act by participating in actions of the Authority resulting in payments to her husband for sewer line tap -in inspections and other repairs; by her spouse contracting with the Authority in excess of $500.00 without an open and public process; and by failing to file Statements of Financial Interests (SFI's) for calendar years 1998 and 1999. Pursuant to Section 3(a)/1103(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/Act 93 of 1998 as follows: Section 2/1102. 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 f of ce 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. 65 P.S. §402/65 Pa.C.S. §1102. Section 3(a)/1103(a) of the Ethics Act 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. Catalone 01- 040 -C2 Page 10 Section 3(f)/1103(f) of the Ethics Act imposes certain restrictions as to contracting. Section 3(f)/1103(f) of the Ethics Act provides: Section 3/1103. Restricted activities (f) No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 P.S. §403(f)/65 Pa.C.S. §1103(f). In addition, Section 3(f)/1103(f) of the Ethics Act specifically provides in part that no public official /public employee or spouse or child or business with which he or the spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. Section 4/1104. Statement of financial interests required to be filed. (a) Public official or public employee. Each public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the commission no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Each public employee and public official of the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency, body or bureau in which he is employed or to which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee or public official shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed or within which he is appointed or elected no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Persons who are full -time or part -time solicitors for political subdivisions are required to file under this section. 65 P.S. §404/65 Pa.C.S. §1104. Catalone 01- 040 -C2 Page 11 Section 4(a)/1104(a) of the Ethics Act requires that each public official /public employee must file a Statement of Financial Interests for the preceding calendar year, each year that he holds the position and the year after he leaves it. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Catalone has served as an Authority Board Member and Secretary/Treasurer since 1996. Catalone, as Secretary/Treasurer, is one of the three signatories on Authority bank accounts and is authorized to process and issue checks for payroll, goods and services without prior Board approval. Although members do not receive compensation for serving on the Authority Board, those who perform labor for the Authority receive compensation at an hourly rate. When the Authority commenced the second phase of its sewer system project in 1998, there was a need for individuals who could conduct building lateral inspections to check that portion of the sewer system between buildings and the sewer main line. The Authority chairman contacted Vince Skrzypek and Catalone's spouse, Victor, to conduct the Authority inspections. Skrzypek had experience with the neighboring sewer authority in its installation of a sanitary sewer system. Victor Catalone, who owns and operates a construction and excavation business, installed sewer laterals in the township in the first phase of the sewer installation which occurred prior to Catalone's service on the Authority Board. At an Authority Board meeting on February 14, 1999, action was taken to set the compensation for lateral inspections at $25.00 per inspection. Catalone was not present at that meeting. At a February 22, 1999, Authority Board meeting at which Victor Catalone and Skrzypek were hired to perform lateral inspections, Catalone abstained as to the vote to hire her spouse. The Authority also authorized other members and employees of the Authority to conduct lateral inspections as needed. As Authority secretary, Catalone has the responsibility to generate payments to inspectors following inspections and the submission of a lateral inspection reports to her. The record reflects that Victor Catalone did approximately 86% of the building lateral inspections for phase two of the sewer project. James Hetrick, a contractor who installed lateral installations, utilized Victor Catalone for 108 inspections. Hetrick, who is a close personal friend of Victor Catalone, used his services because Victor was readily available to conduct such lateral inspections, and Hetrick would not be delayed in completing installations. For performing such inspections, Victor Catalone received $6,800 from the Authority. The actions of Catalone as to the payments to her spouse and her participation in Authority actions to approve bill lists which included payments to her spouse are set forth in Fact Finding 30. In addition to performing lateral inspections, Victor Catalone also performed maintenance and repair services for the Authority. Authority Member Forster typically was the individual who authorized Catalone to do such repair work. Forster chose Victor Catalone based upon his familiarity with the system and his prior work for the Authority. Except for a water line repair, the Authority Board never formally voted to approve Victor Catalone to perform any maintenance or repairs. Typically, Forster gave verbal authorizations to Catalone without any involvement by Catalone. Most of the work performed by Catalone was generally discussed at an Authority Board Meeting and noted in the minutes as detailed in Fact Finding 34. Catalone 01- 040 -C2 Page 12 At a November 2, 2000, Authority Board Meeting, there was official action to hire Victor Catalone to repair a water line at the Force pump station. Catalone was present at the meeting but abstained as to the vote to hire her spouse. This particular contract with Catalone was in excess of $500 but was not advertised, bid or awarded through an open and public process. Catalone's actions in co- signing checks and participating in Authority actions to approve bill lists that included payments to her spouse for maintenance and repairs are delineated in Fact Finding 38. The amount that Victor Catalone received from the Authority for performing the various maintenance and repair services totaled $2,960. Although Catalone admits that she participated in Authority actions to approve payments to her spouse, she does not believe her actions were wrong or were taken with the intent to receive a financial benefit from the Authority. Regarding SFI's, the record reflects that Catalone filed an SFI for the calendar year 1997, but failed to timely file SFI's for the calendar years 1998 and 1999. Catalone filed her delinquent SFI's for the calendar years 1998 and 1999 on April 18, 2001. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties in their Consent Agreement set forth a proposed resolution of the allegations: technical violations of Section 3(a)/1103(a) of the Ethics Act when Catalone signed checks and participated in generating and submitting bill lists for approval by the Authority which included payments issued to her spouse for sewer line inspections, maintenance and repairs; a technical violation of Section 3(f)/1103(f) of the Ethics Act when the Authority entered into a contract with Catalone's spouse to repair a pump station waterline in excess of $500 without an open and public process; and no penalty when Catalone, in response to late notices from the Commission, filed her Statements of Financial Interests for the 1998 and 1999 calendar years on April 18, 2001, so as to be in compliance with the reporting requirements of Section 1104(a) of the Ethics Act. As to Section 3(a)/1103(a) of the Ethics Act, there were various actions by Catalone as to the payments to her spouse. In particular, Catalone co- signed checks and also participated in approving bill lists which included payments to her spouse for either performing lateral inspections or maintenance and repair work for the Authority. Such actions were uses of authority of office. See, Juliante, Order 809. Such uses of authority of office resulted in private pecuniary benefits consisting of the financial gain that Victor Catalone received for performing such services for the Authority. Lastly, the private pecuniary benefits inured to Victor Catalone, who as Catalone's spouse, is a member of her immediate family as that term is defined under the Ethics Act. However, we note that Catalone did not authorize her spouse to provide any of these such services and, in fact, abstained as to the selection of her spouse to perform such services. Catalone's participation was limited to either co- signing checks or approving payments after the Authority (without her involvement) or some other Authority Member made the decision to utilize her spouse. Accordingly, we find technical violations of Section 3(a)/1103(a) of the Ethics Act when Catalone co- signed checks and participated in approving bill lists which included Authority payments to her spouse for sewer line inspections, maintenance and repairs. As to Section 3(f)/1103(f) of the Ethics Act, there was one instance where the Authority utilized Catalone's spouse to repair a water line at the Force pump station. Such contract was in excess of $500 but was not awarded through an open and public process. Accordingly, Catalone technically violated Section 3(f)/1103(f) of the Ethics Act when the Authority entered into a contract with her spouse to repair a pump station waterline which contract was in excess of $500 but was not awarded through an open and public process. Catalone 01- 040 -C2 Page 13 As to SFI's which were not timely filed by Catalone for the calendar years 1998 and 1999, the Consent Agreement by the parties reflects that the Investigative Division accepts that Catalone, after notice was given, filed the SFI's for the calendar years 1998 and 1999 so as to be in compliance with the Ethics Act. Accordingly, since it appears that the Investigative Division, through the exercise of prosecutorial discretion, is not pursuing that allegation, we accordingly need not address it. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. We will take no further action in this case which is closed. However, Catalone, as a public official, must conduct her future activities in accord with the provisions of the Ethics Act. IV. CONCLUSIONS OF LAW: 1. Catalone, as a Member and Secretary/Treasurer for the Jay Township Authority, is a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Technical violations of Section 3(a)/1103(a) occurred when Catalone co- signed checks and participated in generating and submitting bill lists for approval by the Authority which included payments to her spouse for sewer line inspections, maintenance and repairs. 3. A technical violation of Section 3(f)/1103(f) occurred when the Authority entered into a contract with Catalone's spouse to repair a pump station waterline, which contract was in excess of $500 but was not awarded through an open and public process. In Re: Susan Catalone ORDER NO. 1234 File Docket: 01- 040 -C2 Date Decided: 5/2/02 Date Mailed: 5/16/02 1. Catalone, as a Member and Secretary/Treasurer for the Jay Township Authority, committed technical violations of Section 3(a)/1103(a) when she co- signed checks and participated in generating and submitting bill lists for approval by the Authority which included payments to her spouse for sewer line inspections, maintenance and repairs. 2. A technical violation of Section 3(f)/1103(f) occurred when the Authority entered into a contract with Catalone's spouse to repair a pump station waterline, which contract was in excess of $500 but was not awarded through an open and public process. BY THE COMMISSION, LOUIS W. FRYMAN, CHAIR