HomeMy WebLinkAbout1249 GrandelIn Re: Cory Grande)
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- 071 -C2
Order No. 1249
9/4/02
9/25/02
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Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11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.
Grandel 01- 071 -C2
Page 2
I. ALLEGATION:
That Cory Grandel, a (public official /public employee) in his capacity as a Member of
the Jefferson Morgan School District Board of Directors, Greene County, violated Section
1103(a) of the Public Official and Employee Ethics Act (Act 93 of 1998, 65 Pa.C.S. §1101 et
seq.) when he used the authority of his office for a private pecuniary benefit by participating in
actions of the board, resulting in his appointment as board treasurer at an annual stipend in
excess of $500.00; and when he participated in the process of approving payments, including
signing checks.
II. FINDINGS:
1. Cory Grandel has served as a member of the Jefferson - Morgan School District Board
of Directors since December 6, 1999.
2. Grandel has held the office of school board treasurer since December 6, 1999.
3. Grandel participated in the votes to appoint himself to the position of board treasurer on
December 6, 1999, and June 26, 2000.
a. Both motions were unanimously approved.
4. The office of school board treasurer for the Jefferson - Morgan School Board has
traditionally been a compensated position.
5. Compensation for the position has been established in Section 005 of the Jefferson -
Morgan School District Policy Manual.
"The school treasurer shall receive a stipend in an amount determined by the school
directors each year which shall be paid on a quarterly basis ".
a. The Policy Manual further states that the treasurer may be a corporation or may
be a member of the board.
b. The treasurer is to be selected by the board of directors in May to begin serving
in July for the period of one year.
6. At the time of his appointment to the position of board secretary [sic], Grandel was not
aware of the provisions of Section 005 of the policy manual or that any stipend had
been paid to the treasurer.
7. From December 1999 until June 2000, the first six months that Grandel served as
board treasurer, he did not receive any compensation for the position.
a. No discussion of the treasurer's stipend occurred at the December 6, 1999
Reorganization /regular board meeting, or the continuation of that meeting held on
December 21, 1999.
8. During the June 26, 2000, meeting of the school board of directors, Grandel was re-
appointed to the position of board treasurer.
a. The vote was unanimous with Grandel participating.
9. Following the discussion regarding a stipend to be paid to Grandel as board treasurer,
the board agreed to pay Grandel a $600.00 stipend.
a. No vote was taken on the amount of the stipend.
Grandel 01- 071 -C2
Page 3
b. Grandel was present for the discussion and agreed to accept the stipend.
10. Grandel received a retroactive payment for treasurer services for the period of
December 1999 through June 2000 in the amount of $300.00, representing one -half of
the full year stipend of $600.00.
a. No vote of the board was taken approving this payment.
11. Grandel, as board treasurer, is responsible for signing district checks.
a. District checks require the signatures of the business administrator and the
board treasurer.
b. In the board treasurer's absence, the board president has signature authority.
12. Grandel signed four checks issued by the school district as compensation for the
stipend of school board treasurer between July 2000 and July 2001 totaling $899.00.
13. Grandel participated in school board actions approving payment of the bills which
included payments to himself as board treasurer on July 17, 2000, January 17, 2001,
and April 30, 2001.
a. The payments totaled $750.00.
b. Grandel voted no on the payment of the bills on June 18, 2001, which included
a $149.00 payment to him.
14. At the June 18, 2001 board meeting, Grandel abstained during the vote to re -elect him
board treasurer for the 2001/2002 school year.
a. Grandel's abstention on the vote to elect him board treasurer on June 18, 2001,
was based on him becoming aware of State Ethics Commission Order #1188
relating to the activities of Leann Marcolini, a Bethlehem- Center School District
Board member found in violation of the Ethics Act for participating in votes to
elect herself to the compensated positions of board secretary or treasurer.
b. Jefferson - Morgan and Bethlehem- Center are adjoining school districts.
15. Subsequent to June 18, 2001, Grandel participated in unanimous board votes to
approve payments of the bills which included payments to himself as board treasurer,
on November 19, 2001, and March 18, 2002.
a. No abstentions are recorded.
16. Grandel signed two checks issued to him totaling $300.00 for the position of school
board treasurer.
a. Check #1824 was signed by Board President Ellen Hildebrand.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Cory Grandel, hereinafter Grandel,
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."
Grandel 01- 071 -C2
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The allegations are that Grandel, as a Jefferson Morgan School District Board
Director, violated Section 1103(a) of the Ethics Act when he participated as to his appointment
to the compensated osition of board treasurer, the approval of payments, and the co- signing
of checks to himself.
Pursuant to Section 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 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 Pa.C.S. § 1102.
Section 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.
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.
Grandel has been a Jefferson Morgan School District (School District) Board Member
since December of 1999. In addition, Grandel was appointed treasurer by a unanimous
School District Board vote in December of 1999 and June of 2000.
Although the position of school board treasurer for the School District has been a
compensated position, Grandel was not aware that the treasurer received a stipend at the time
of his appointment. In fact, from December of 1999 to June of 2000, Grandel served as
treasurer without receiving any compensation for that position. At a June 2000 board meeting
of the School District, there were discussions about a stipend for the osition of treasurer.
The board then agreed to pay Grandel $600 a year as compensation for that position. The
board took no vote and Grandel accepted the stipend. In addition, the board granted Grandel
a retroactive payment of $300 for the six month period from December of 1999 through June
2000 without taking a vote on the matter.
Since Grandel, as board treasurer, is responsible for co- signing School District checks,
he signed four School District checks payable to himself as compensation in his position as
school board treasurer for the period July 2000 to July 2001. In addition, Grandel participated
Grandel 01- 071 -C2
Page 5
in school board actions as to three of the four bills in payment for his services as school board
treasurer. However, Grandel specifically voted no on the payment of one of the bills.
At a June 2000 board meeting, Grandel abstained from the board vote to reelect him as
board treasurer for the 2001 -2002 school year. Thereafter, Grandel participated in unanimous
board votes to approve the payments of bills which included payments to him as board
treasurer. Finally, Grandel signed two checks issued to him totaling $300 as the school board
treasurer.
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' Consent Agreement proposes that this Commission find: unintentional
violations of Section 1103(a) of the Ethics Act when Grandel participated in actions of the
school board of directors on December 6, 1999, and June 20, 2000, appointing him to the
position of board treasurer; an unintentional violation of Section 1103(a) of the Ethics Act
when Grandel participated in approving payments and co- signing checks issued to him; and a
payment of $700 by Grandel through this Commission to the Commonwealth of Pennsylvania
within 30 days of the mailing date of this Order.
In applying the provisions of Section 1103(a) of the Ethics Act to the instant matter,
Grandel's actions of participating as to his appointment to the position of school board
treasurer, his voting to approve bills for his compensation in that position, and his co- signing
checks for his compensation as school board treasurer were uses of authority of office. See,
Juliante, Order 809. Such uses of authority of office resulted in private pecuniary benefits to
Grandel consisting of the compensation that he received as school board treasurer. Lastly,
those private pecuniary benefits inured to Grandel himself. Accordingly, Grandel
unintentionally violated Section 1103(a) of the Ethics Act when he participated in actions of
the school board to appoint himself to the compensated position of board treasurer. In
addition, Grandel unintentionally violated Section 1103(a) of the Ethics Act when he
participated in approving payments and co- signing checks to himself as school board
treasurer. See, Marcolini, Order 1188.
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. Accordingly, Grandel is directed to pay $700 within
30 days of the mailing date of this Order to the Commonwealth of Pennsylvania through this
Commission. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV. CONCLUSIONS OF LAW:
1. Grandel, as a Member of the Jefferson Morgan School District Board of Directors, is a
public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998.
2. Unintentional violations of Section 1103(a) of the Ethics Act occurred when Grandel
participated in actions of the school board of directors appointing him to the
compensated position of school board treasurer.
3. An unintentional violation of Section 1103(a) occurred when Grandel participated in
approving payments and co- signing checks issued to him as the school board
treasurer.
In Re: Cory Grande)
ORDER NO. 1249
File Docket: 01- 071 -C2
Date Decided: 9/4/02
Date Mailed: 9/25/02
1. Grande), as a Member of the Jefferson Morgan School District Board of Directors,
unintentionally violated of Section 1103(a) of the Ethics Act when he participated in
actions of the school board of directors appointing him to the compensated position of
board treasurer.
2. An unintentional violation of Section 1103(a) occurred when Grande) participated in
approving payments and co- signing checks issued to him as the school board
treasurer.
3. Per the Consent Agreement of the parties, Grande) is directed to pay $700 within 30
days of the mailing date of this Order to the Commonwealth of Pennsylvania through
this Commission.
a. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission.
b. Non - compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
Louis W. Fryman, Chair