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HomeMy WebLinkAbout401-R DombroskiMr. Joseph Domhroski 577 Highland Avenue Turtle Creek, PA 15145 Re: 85 -03 -C Dear Mr. Domhroski: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF THE COMMISSION Fehruary 18, 1986 Order No. 401 -R 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 hased are as follows: I. Allegation: That you, a Wilkins Township Commissioner, violated Section 3(a) of the Ethics Act, Act 1978 -170, hy having the township pay for a hospitalization /medical plan in which you participate. A. Findings: 1. You are an elected puhlic official serving in Wilkins Township; you have served as township commissioner for the past 18 years and, as a township commissioner, are subject to the provisions of the State Ethics Act. You are _ the current president of the hoard and make road and sewer checks and monitor sewer and other projects. 2. Wilkins Township has a population of 8,472 (1980 census). 3. You are not employed hy the township except in the capacity of commissioner. 4. You received 51,200 salary per year as commissioner. 5. Medical and hospitalization insurance for township employees and commissioners is administered hy the Municipal Employers Insurance Trust, Administrative Office, 1514 Onion Rank Ruilding, Pittshurqh, Pennsylvania 15227. (Hereinafter MEIT). 6. PIEIT invoices record the following payments for your Rlue Cross /Shield coverage. (a) 1 S1617.84; for Rlue Cross, Rlue Shield, major Medical and fl ntal and drug prescription coverage from July thru pecemher. Mr. Joseph fomhroski February 18, 1986 Page 2 (h) 1984: $3200.52 for Blue Cross, Blue Shield, Major Medical , Dental and flrug prescription from January thru December. (c) 1985: $798.2.1 for Blue Cross, Blue Shield, Major Medical, Rental and flrug Prescription frail January thru March. The township is continuing to make these payments. (d) The investigation of the State Ethics Commission in this matter continued through the first quarter of 1985. Investigative activity ceased after that point in time. (e) You did not take the health care package until June, 1983 because you were covered as an employee of U.S. Steel. (f) The solicitor, John Means, stated that he believes you are entitled to Blue Cross and Blue Shield coverage according to the Township Ordinance and First Class Township Code. 7. On February 13, 1978, Wilkins Township adopted Resolution No. 5 -78 "Authorizing the inclusion of the members of the Board of Commissioners as subscribers to the Township Group Hospitalization Plan." It stated the fol l owi ng : (a) The commissioners were eligible to participate in the township's Group Hospitalization Plan pursuant to Act 72 of 1977. (h) Several commissioners had expressed their desire to became members of the plan. 8. Act 72 -1977, in part, provides that each commissioner shall "receive a salary of not more than ... twelve hundred dollars per year in townships having a population of four thousand and not more hut less than ten thousand." 9. Act 72 -1977 was signed into law by the Governor on November Q, 1977 and was effective immediately. It amended Section 703 of the First Class Township Code as follows : (a) By re the phrase "as full compensation" from the last sentence; "Such salaries shall he payahle monthly or quarterly [as full compensation) for the duties imposed by the provision of this Act." in. The November 11, 1977 edition of the Legislative Newsletter of the Pennsylvania State Association of Township Commissioners included the following Statement: Township commissioners would he permitted to receive other forms of compensation in addition Mr. Joseph Dombroski Fehruary 18, 1986 Page 3 to their salaries under House Rill 571. Section 703 of the First Class Township Code would be amended by removing the words "as full compensation" from the paragraph...the amendment would thus allow among other things township commissioners to receive such henefits as health, life insurance, and pensions paid for by their township. a. The Legislative Newsletter was prepared under the guidance of the Executive Director of the Borough's Association and its Director of Governmental Services, Dr. Charles F. Lee Becker and John C. Goodwin, both of whom had substantial experience in local governmental affairs. 11. On or about Fehruary 12, 1985, Fir. Wilmer K. Baldwin, Secretary- Manager of Wilkins Township, forwarded to the State Ethics Commission a copy of a letter which he indicated had been received by him. (a) The letter which was dated November 30, 1977, was written by David B. Glancey, Legislative Assistant in the Pennsylvania Senate, and was written to the Honorable Amos K. Hutchinson, a member of the Pennsylvania House of Representatives. (b) Mr. Glancey stated that " in [hiss opinion, (emphasis added) the effect of the amendment to Section 703 ... deleting the 'full' before the term 'compensation' will permit compensation for the commissioners to be more comprehensive and to .include more than mere remuneration for service in the elected position of commissioner. For example, ... health and life insurance . and death and pension henefits." 12. The minutes of the Wilkins Township Board of Commissioners meeting for September 10, 1984, indicate that the secretary revi ewed the following documents concerning medical insurance for the commissioners. (a) The 1984 budget for medical insurance for members of the board of commissioners which was $8,679. (b) Resolution 5 -7R of Fehruary 13, 1978 authorizing participation of programs based on State Act 72 of 1977 which amended Section 703 of the First Class Township Code. (c) Act 72 of 1977 signed by the Governor on November 9, 1977. (d) Legislative letter No. 13 of November 11, 1477 of the Pennsylvania State Association of Township Commissioners indicating the intent of legislation which began Act 72. 13. On June 10, 1984, Wilkins Township adopted Ordinance No. 560. Mr. Joseph Domhroski February 18, 1986 Page 4 a. That ordinance provided for compensation of township commissioners assuming office on or after January, 1976, and indicated that such compensation was to be in accordance with Section 603 of the First Class Township Code. 14. The township auditors questioned the legality of the payment of hospitalization and medical benefits to township commissioners in 1979 investigated the question and approved the expenditures. 15. The payments for hospitalization and medical henefits to the township commissioners has been recorded in township accounts and records for each year since 1978. 16. On November 29, 1985, Act 82 of 1985, was signed into law by the Governor. This Act is an amendment to Section 1502 of the First Class Township Code and provides for the purchase by the township board of commissioners of various types of insurance for township employees. The Act further provides as follows: AS USED IN THIS CLAUSE, THE TERMS "EMPLOYE" AND "EMPLOYES" SHALL INCLUDE_ TOWNSHIP COMMISSIONERS, IF THE COMMISSIONER WORKS ON A FULL -TIME BASIS IN HIS CAPACITY AS SUPERINTENDENT, ROAD MASTER, LABORER OR SECRETARY FOR THE TOWNSHIP. SUCH COMMISSIONERS ELIGIBLE FOR INCLUSION IN SUCH PLANS MUST PIEET THE SAME REOUIREMENTS, INCLUDING HOURS OF EMPLOYMENT, AS OTHER FULL - TIME EMPLOYES OF THE TOWNSHIP. OTHER COMMISSIONERS SHALL BE ELIGIBLE FOR INCLUSION UNDER A POLICY OR POLICIES OF GROUP INSURANCE COVERING LIFE, HEALTH, HOSPITALIZATION, MEDICAL AND SURGICAL SERVICE OR ACCIDENT INSURANCE ONLY IF THEY PAY THEIR PRO RATA SHARE OF THE PREMIUMS. SUCH INSURANCE SHALL BE UNIFORMLY APPLICABLE TO THOSE COVERED AND SHALL NOT GIVE ELIGIBILITY PREFERENCE TO, OR IMPROPERLY DISCRIMINATE IN FAVOR OF, COMMISSIONERS. ANY LIFE, HEALTH, HOSPITALIZATION, MEDICAL SERVICE OR ACCIDENT INSURANCE COVERAGE CONTRACT ENTERED INTO RY A TOWNSHIP BETWEEN JANUARY 1, 1959, AND DECEMBER 31, 1984, THAT INCLUDES OR PROVIDES COVERAGE FOR COMMISSIONERS SHALL NOT RE VOID OR UNLAWFUL SOLELY BECAUSE OF SUCH INCLUSION OF COMMISSIONERS NOR SHALL ANY PENALTY, ASSESSMENT, SURCHARGE OR DISCIPLINARY ACTION OF ANY KIND OCCUR AS A RESULT OF SUCH PARTICIPATION RY SUCH COMMISSIONERS; AND INSURANCE BENEFITS PAYABLE TO INSUREDS OR THEIR BENEFICIARIES ARISING OUT OF OR ON ACCOUNT OF DEATHS, INJURIES, ACCIDENTS OR ILLNESSES OCCURRING PRIOR TO THE EFFECTIVE DATE OF THIS AMENDATORY ACT SHALL REMAIN THE PROPERTY OF THE INSUREDS OR THEIR BENEFICIARIES. Mr. Joseph Domhroski February 18, 1986 Page 5 17. During the calendar year 1985, after you became aware of the potential question regarding the receipt of your insurance and health benefits, you terminated your participation in this program. 18. By letter dated Janurary 28, 1986, you notified the State Ethics Commission that you were going to reimburse the township S798.21 for the premiums paid on your behalf by the township for the health and medical benefits covering the period of January 1, 1985, through and including March 31, 1985. This was the period of time during with the Ethics Commission investigation was being conducted. B. Discussion: As a first class township commissioner you are a public official within the purview of the State Ethics Act. 65 P.S. §402; Dodds, 84 -011. As such, your conduct must conform to the requirements of the State Ethics Act. The State Ethics Act provides as follows: Section 3. Restricted activities. (a) No public official or public employee shall use his public office or any confidential information received - through his holding public office to obtain financial gain other than compensation provided by law for himself, a member of his immediate family, or a business with which he is . associated. 65 P.S. 403(a) . The State Ethics Commission has previously reviewed the question of whether these.types of insurance coverages constitute financial gain within the above provision of law. See Krane, 84 -001 and Davis, 84 -012. In Krane and Davis the Commission determined that such benefits constituted financial gain -Tre will adopt the analysis in those Opinions as applicable here and move to the question of whether these coverages are "provided by law" to be paid for by the township. We have previously considered this issue specifically within the purview of the First Class Township Code. See Dodds, 84 -(111. In Dodds, we concluded that a commissioner in a township of the firs class could not receive or secure for himself through his office, compensation, whether considered monthly payments, salary or the value of insurance premiums paid for by the township in excess of the compensation allowed and limited by law. Clearly, under this Commission's previous ruling and the provisions of the First Class Township Code as they existed prior to November, 1985, your receipt of the types of benefits that are involved in the instant matter, were clearly questionable. However, as of November 29, 1985, the First Class Township Code was amended. The amended code now provides that township commissioners may receive certain health_ medical , life and insurance benefits Mr. Joseph Dombroski February 18, 1986 Page 6 if they are also employed by the township in certain capacities. Additionally, the amended First Class Township Code provides that any insurance benefits in which commissioners were included between the years 1959 and December 31, 1984, shall not be void and said commmi ssi oner shall not be charged, or assessed any other penalty as a result of his participation in that plan. Thus, under the foregoing provision of law, even if the benefits that you have received were not in accord with the Township Code and the State Ethics Act, this Commission may not now assess any penalty for your participation in said plan and the township's payment on your behalf of the premiums, regarding the hospitalization plans. The "amnesty" provision of Act 82, however, does not go beyond December 31, 1984. As a result, any benefits paid after that period of time on behalf of township commissioners could be subject to assessment under the State Ethics Act. We note, however, that as a result of the State Ethics Commission investigation, you voluntarily terminated your participation in the township's insurance programs in 1985. Additionally, you have notified the Commission of your reimbursement of the premiums for this period of time. We further note, that even under the law as it currently exists, while you may have received a financial gain that was not provided for in the First Class Township Code, we believe that your receipt of these benefits was not an intentional violation of the State Ethics Act, but rather based upon the advice that you have received from various advisors. Good faith receipt of such benefits, however, will not alleviate the necessity of a public official reimbursing his governmental body for the receipt of compensation for which he was not entitled. See Alleghney Courity v. Grier, 179 Pa. 639, 36 A. 353 (1897), Kestler Appeal, 66 Pa. Commw. 1, 444 A.2d. 761, (1982). C. Conclusion: Under the foregoing circumstances, while there may have been a technical violation of the State Ethics Act, you are reimbursing the township $798.21 and we will, therefore, take no further action in this matter. This order is final and will be released as a public document three days after the issuance of this order. Any person who violates the confidentiality of a Commission proceeding is guilty of a misdemeanor and shall he fined not more than $1,000 or imprisoned for not more than one year or both, see 65 P.S. 409(e). JJC /sfb By the Commission, 7 Herbert B. Conner Choi fman August 13, 1986 Mr. Edward M. Seledonas Executive Director PA State Ethics Commission 308 Finance Building P 0 Box 11470 Harrisburg PA 17108 -1470 ailae K P) &d t Wilmer K. Baldwin Secretary- Manager WKB:msf cc: Mr. Dombrosky Enclosure TOWNSHIP OF WILKINS ALLEGHENY COUNTY 110 PEFFER ROAD TURTLE CREEK, PENNSYLVANIA 15145 -1192 (412) 8248650 BOARD MEETS 2nd MONDAY OF THE MONTH — 7:30 P.M. Re: Order 401R - Mr. Joseph J. Dombrosky Dear Mr. Seledones: Enclosed please find a copy of a Township receipt regarding the above noted account. Please note this account is now paid in full. Very truly yours, BOARD OF COMMISSIONERS JOSEPH J. DOMBROSKY— President, JOHN J. HANLON— Vice- President, JOHN J. HANLON— Chairman Finance, GEORGE PORADO— Chairman Recreation and Municipal Property, WILLIAM R. BOWLIN — Chairman Public Safety, IRENE J. POHL — Chairman Public Works, WILMER K. BALDWIN—Secretary- Manager, F.R. KUSZAJEWSKI — Assistant Manager, JOHN M. MEANS — Solicitor, GEORGE M. PORADO — Treasurer rn