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Home My WebLink About970 FornwaltIn Re: Richard Fornwalt STATE ETHICS CQMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 • File Docket: 94- 003 -C2 Date Decided: 05/04/95 Date Mailed: 05/16/95 Before: Daneen E. Reese,. Chair Austin M. Lee, Vice Chair Roy W. Wilt Boyd E. Wolff The Investigative Division of the State Ethics C ' Lission conducted an investigation regarding a possible violatiln of the State Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S: §401,et sec. Written notice of the specific_allegation(s) was Served at the commencement of the investigation. A Findings Report wds ,issu8d and served upon completion of the investigation which cox'istituted Y a the Complaint by the Investigation Division. An Answer r`Iva.N: filed and a hearing was waived. A consent agreement was submitted by th parties to the Commission for consideration which was subsequeatI approved. This adjudication Of the Commission is iereby. issued which sets forth the individual Allegations, Fixidifgs bf Fact, Discussion, Conclusions of Law and Order: This adjudication . is final and will be made availabl e e ,a public document fifteen days after isstiafice. ; w Hower' reconsideration may be requested which will defer public. reIeage Z5t this adjudication pending action on the request by sid% A request for reconsideration does not affect the finality 8f WS adjudication. A reconsideration request must be.receivdd atIaie Commission within, fifteen days of issuance and must inc1ude a detailed explanation of the reasons as to why reconsi4eratxozl should be granted in conformity with 51 Pa. Code §21.29(b). The files in this case will remain confidential in accordance with Act 9 of 1989, 65 P.S. §408(h). Any person who violatee confidentiality of the Ethics Law is guilty of a mi:demearior subject to a fine of not more than $1,000 or imprisonment for no more than one year, 65 P.S. §409(e). Confidentiality does not preclude discussing this case with an attorney at law. Fordwalt, 94-003-C2 Page 2 1. Thag ichdFd Fornwalt, a public 00±61Ai &eeL ±R his cafpaek & ,;.member Of the Alt884a #ty, 0 County,. V4.00:04,PrPYiqion4 of the State Ethics fSk*t,gaf when hi$ccelited compensation for atteaddnce it meeti the approval of the appointing authority. SedtiOn j. Restricted xx. rimaimds: • (a) NO ,public offidiai eft puIRlic employee sia1. n gage Laa ob4atict ;fit constituteM a conflict o intrt 65 PA: 5403(a). Section 2.'Definitiand 4 _ "Conflict" or official public eMiloiee Of the authority of hi i ciffie0 Or emr405riaent at any confidential infOilitioi racitved k#idir0 his holding public offi8g Oi eiployient,fOr the piivate peeuitidry bfiliefiX Of litimeif, ; member of his iimedidte,fimily di a.bileifidig with which he ,r a member of hi_4 immediate family is associei4d. "Conflict"-or of il doe d ind]:td a action havi44 1 afiidimid ecoftemiE impact pi wkiich f;eati 64,iamiii degree a class eonaidtin 8f ,the at4iiat. pUiia or a ibbelaid,860sidEing cS 1i oipatiod of otter gi84 iiiciudes the publid affiCiii 25r. employe, a m6ber of hii immediate iiMili busi4eis, witil Which h or ,a EiEW of immediate family is aligoaiiied. rt P.. §402: 1. RiOhard Fornwalt served as mi appointed m et_oi.4..# Alteksia 4 1 City Authority from Jahuary, 1985; Iiiiil March, 194: 2. r il i i t iOviciel a41.44i. asdi6i .i.g The Altoorw City ,..uthor ,‘ driril municilitied. for Elie City f Alton d oe, t zie.ghlo a. iiiabi tRe. Ciii i6ittit;i:ii :Liii;iiii ixe ieia'te seWiti iid 1;iii%I. d1Vih18hi. 3: ille AlEbSa City kir ii' 6ii''raiea bi i fiVa 'keitiiai iresid 116156iiited by City Council. 1: Ala4ii are 4 r htea to five * ieir i4a1 ;41til one term Fornwalt, 94- 003 -C2 Page 3 ex,pirng annually. b. Altoona City Authority became an operating Authority effective February 1, 1981. 4. During the early 1980's, the City Authority undertook several capital ventures which put extra time demands on Authority members. Most notably was the acquisition of the lair Zep Water "System: 5. In 1986, the City of Altoona transferred operational control of its - sewer system to the City Authority. yG a. Since 1986, the City Authority has handled sewer and Ovate - r strvrrice exclusively. 6. The Altoona City, Authority employs approximately 116 people. Employees" 'perform `both administrative and oFera.tional functions. • 7. Between ;9,$, and 19,93 , William Cochran served as .chive Director; Ro , Shimmed as Controller; and Karen And9raon as Executive Secretary, a. Cochran was responsible for overseeing the thy t.0, cal. operation of the Authority. b. Shimmel was responsible for handling the fixiaial aspects of Authority operation. c. Anderson recorded- and prepared board meeting minutes :and other ilisignited administrative duties. 8. The Altoona City Authority holds one regularly sghesitQ.ed monthly_nteeting to conduct Authority business. a. Special meetings and work sessions are held on an as needed basis. "'' 9. By -laws of the Altoona City Authority, in part, define officers of. the Authority as Chairman, Vice Chairman, Secretary /Treasurer, and officers that may from time to time be selected by the Board, 10. By -laws of the Altoona City.,Authority provide the following definition of dut.e's of ,officers: a. Chairman: The Chairman shall - conduct all meetings of the board, shall jointly with the secretary execute all contracts and shall jointly, with the treasurer, sign all checks, and shall have general and active management of F9rnwalt, 94-00T3-c; Page 4 the akfairg, of the corporation. b. Vice Chairman: The Vice Chairman shall have all the powers of the chairman in his absence. c. Secretary: The secretary shall act as clerk of all meetings of the board; shall record all the proceedings of such meetings in a book kept for that purpose; Shell glye proper notice of all meetings; shall recorcCaii wtes, and shall have custody of all the books' aria 9f the authority, except those kept bf treasurer .414 shall jointly, with the chairman, iltectlee all centrvt§ and a11 other duties as maiifY6M time to time be as1f4ne4 to him. d. Treasurer; The treasurer shall jointly with the chairman iigir andkeep'the finindial redisrdsu6fr/1ie auttority, vr9vide for - the d'uOta4y of the fiii2di ancf•btfier prpperty 9f the al4hority a#O all othfir incides# Vzi his 9ffice. e. Other 'Officers: Such other officers as may ,from time to t344e7be by the board to:perform su9A'autiee my opecificafly assigrieirto them by th4 board 11. Members of the City Aut4ority Board have annually been appoipted .to officer positions s at least 1381. 2.2. During his L teanire_onthe City Authority ,Board, Fornwalt held clficer positions including . 1(Saiitant Secretary tv=and gecXetarY4TreaRuzier.- a. F9rnwalt was the Assistant Secretary during calendar • lrlev:s 1985 and 1986. . b. tornwalt was .the Secretary/Treasurer during the calendar .. ' -- 4 . .... _.,... ...? . , years 1987 through 1993. .. 13. Meeting minutes •of the Altoona City Authority Annual Regrganizational Meetings include action appoinViiig all members to officer positions. ----' -'- 1:-4 tILI • p•S. ;leorganizptional_meeting minutes reflect board members wwere appointed to tfie,Aollowtng . pfic6 t pcisifioilWtIkar"a •- - • :term of one .year: 'MA.2.04EDate ) Officer-g'svOtion Member 12/28/81 chairman _FrankSmith yiqe Ref Xlqa7TY/1°F.€3s1.1.571r 'i*Ble r .wa "1t,, .94-111101-C2 Page 5 01/28/83 01/27/84 01/25/85 01/31/86 01/29/87 01/28/88 01/27/89 01/3,90, :Assistant Treasurer Assistant Secretary Chairman Vice Chairman S ere tart' /Treasure- Assistant Secretary Assistant Treasure* Chairman Vice Chairman Secretary /Treasurer Assistant Secretary Assistant Treasurer Chairman Vice Chairman Secretary /Treasurer Assistant Secretary Assistant Treasurer Chairman Vice Chairman Secretary /Trsastirer Assistant Secretary As sistant treasurer Chairman Vice Chairman- Secretary /Treasxieer Assistant Treasure" Assistant Secretary" Chairman Vice, Chanan Secretor.- /Tr-eastre Assistant Treasurer. Assistant Secretary Chairman Vice Chairman Secretary /Treasurer Assistant Treasurer Assistant Secretary Chairman Vice Chairman- Sec retary /Treasurer Assistant Treasurer Assistant Secretary' Robert Sheets Robert Freeburn Mak Siti t1. tiToa &'rh i1y Ardi D.ttern R ►`ei' lieted5ui& P`ob eiS i ah'k Roher t Wt Ao4ast: . i(9:— Andronis ?ap' as 5'03441 5'os41 R4ii1i Robei Snn kAaibni6 iappas Robert Freeburni Lichard 'ornwalt Ues ph Reilly Rcibeit Snti � c Auidianic apps Robert P' Richi & l"ar iWalt JOsiepli 124111y Ardroni°c Pappas P Bert % t•Yr Rc�ia�r3 �'orlt Joseph Reilly Maurice LavOrtik- Andronic Pappas Maurice Lawruk Richard Foriwalt Joseph Reilly William Geis Andronic Pappas Maurice Lawruk Richard Fornwalt Joseph Reilly William Geis Andronic Pappas Maurice Lawruk Richard Fornwalt Joseph Reilly William Geis- Fernwalt, 94- 003 -C2 paid; 6 1'S . 01/30/91 01/29/92 01/22/93 Chairman Vice Chairman Secretary /Treasurer Assistant Treasurer Assistant Secretary Chairman Vice Chairman Secretary/Treasurer Assistant Treasurer Assistant Secretary Ghairban Vice Chairman secretary /Treasurer Assistant Treasurer Aa eistant Secretary Andror io: PA?Pae MauriMil A,4 Richard &* Itatricit `iQa W 1I am ' Andre $a7$ Maurice Lamvmk Richard f1011t Patr .chic nor, William Geis Andronic Pappas Maurice Lawruk Richard Foruwa1t Patrick Fiore William Geis 14. BflIitta of f kltodha City Authority provide that city council can fiat a ialary Sr H board Members attendance at meetings and that the board aaa mit 'eo ,ensatia n for - members who swerve as . officers. 1S1 iy= .adios Zi tie Altbbna City Authority include the following s pecific giiirelii es for ateiers receipt of compensation: I ear% of the Tabard t�ta1l receive such a salary as be tiet'ermin�e�ci � by tit toisndi1 of the City of :Altoona but no salary of 'any i.aiabei shall be i. creased , tzsr diminished by the said eo43rici§ ehirgng the term fbr `which the members . Fec:e. . 4ng the same siia3:1 have been appointed. ALL officers anti .air , t s of this iuth city ;shall retail)* suet. .compensation as =shall be determined and =fixed by the members :of' the :Board." By 'way of Resolution #744.5 , adopted. October 10,, '1550, , Altoc -•z City, Council "set coMpenS tiOn for 'City Authority !members at $20.00 per meeting. a °. A meeting pay fee of $20..00 per :ems -wad ,the only compensation approved by:Altozna amity Coon i 1 'fsrr,ateiabers of the Authority. 17. The Altoona City Authority held a speci 1 EZCEacsztive SAlastissn,ort Irfa'rch 17, 1981. A ±ecomMendation was mare -that me bee s 1-he caiapensated as follows: $10 per meeting atteended by =authnii4y f•$3'4 41f0 1!: •rem ewer EPA 'lrt Fund and $70.'0 - f Water :131visioai .•perating funds )• . ,$260.40 'per Month -fdr tai thdrity -secretary ($100.00 €rom . EPA tra "z t Fund 'and '$100 'f Bits Mater - Division _£unids) . Fornwalt, 94- 003 - .C'�2 Page 7 per committee meeting attended any duly called Water Division meeting." Present: Smith, Reilly, Sillen, Freeburn. 18. At the City Authority's March 27, 1981, Regular meeting, the recommendations approved at the Mares 17, 19$1, $pedia1' Wdit Session were approved as follows: a. Compensation for Authority members for regular meetings attended $100 ($30 from EP.A grant' funds $70 from ' 4eet Division) $50 per committee meeting attended (fg tt j n* tir Division) pia c' .: *1 b. Compensation for Authority Secretary $200 per month ($x,00 from EPA grant fund, $100 from Water Division)* PFesen t Smi Reilly, Dillet., Freeburn, Sheetz . 19. No salaries were set by the Authority for the officer pgsitions of Chairman, Vice Chairman, Treasurer, Secretary and Assistant Treasurer. 20. Members of the for attending sessions based Altoona City Authority board were compensated regular meetings, special meetings ari' `Ork r .. • on the resolution passed March 17, 198Z. 21. Meeting compensation is paid to the Altoona City Authority Board Members on a quarterly basis. a. Payments are made from both the sewer and water divisions operating accounts. b. The Board Secretary /Treasurer provides Controller Shimmel with a list of meetings attended by board members during each quarter. c. Board members are compensated for attending meetings based on these quarterly reports. d. Checks were signed by Executive Director William Cochran. e. Executive Director William Cochran was authorized by the City Authority to issue checks in amounts less than $ f . Board action was not required for the issuance of meeting pay. 22. Since March 27, 1981, Authority Board members received $100.00 per _regular meeting attended and $50 .-0 for each special Fornwalt, 94- 003 -C2 Page 8 meeting or work session attended. During 1992 and 1993, some special meetings ',era paid at a rate of $100.00 per meeting. a. Members received $80.00 in excess pay for each regular meeting attended. b. Members received $80 in excess pay for special meetings held during 1992 and 1993 paid at a rate of $100.00 per meeting. c. Members received $30.00 in excess pay for each special meeting or work session attended paid at a rate of $50.00 per 'melting. 23. 1099 MiscellameQus Income $ on file with the City Authori't('''fef`1 t the following aggregate disbursements to Fo'rnwalt for Itt attendance at meetings during the specified cal4ndai ye4r: 1989 $1,400.00 19.9,0 $1,650.00 1991 $1,800.00 1992 $2,900.00 1993 81,450.(0 24. Around October, 1993, the compensation #or City Authority Bard' hampers was questioned by Altoona gity Cocil., 25. Ety wax of correspondence dated November 4, 19g9%, William C'cchi; , ' Director off: the Altoona City,, Authority a iiv'iaed, N. 1* Casanave,, Altaga91 City Solicitor- Cu' tgaji that " ltdoiia °`C y '`Authority' Board mentors are p id $r1;,0O 0?0 for rear "board meetin:gs and $50 for work sesitotm ., Each is ,i dual "hoard member xmist be, in, attendat a toe r-eo 've the alSt tre iiexi tioxied i.rec.tQr'.a,. £ess . "' 2 8 r way. of memorandum, datsi December. 4,, 1 ., Rpk,ertt F. ex iui III, C�. Mai er; req�}ested a wri.t#a}l op li . • " s� o lyed3 *V e; �i�x Solici � r.e ga � c�i.ng., t:hg 1�gati7- i�.tt� i�c witti "the current fee s.,trurtu a uti�7sized by appp- iitect, bard memberi 'bf - the "City A,uthor,ity. fox.. a_tte .n board meer4ng 27. City,Solicitor ..N. John., Casanave,prn iciedi City- 01:63,Actig, virei air Opit - lirin 'dared; - Decexa}b?r. 21, 1993 off c ?aiaation- issue: " f ,er researcjtii.ng_. th e. M ,�,np A Act;, and reviewing', the o£: tlie Ap.qaArity.i tate resolutions of tie: Cats o _ A txir3 ,a I; itlarie csKasaugiedA a$` fo_10 si Year Amount Zorgraj 94 OEO3 --C2 Pfitgw It is my ju ement- and opinion that tie, Autlicyrity Board #' no, fntkzor:ity. to unilaterally. raise their" fees for wt e- 4t: meetings b Qz l ,Y, �,* City '6041.1 of tbre City o . AL toox has tl a �author1 "y; to `i4crea " those few.. ...__. Reference* to the following section of the Municipal Authorities Act governs this issue in. it ; s` entirety +' - "'Members of an Authority shall hold office until q.eir successors have been appointed, and may suceited themselves and shall receive such salaries as , be determined by the governing body of the municipals' {it none of such salaries shall be increased or diminhebp such governing body during the term for which the i'iber receiving same shall be appointed." With regard to the instant matter, the only governmenta action taken by the City of Altoona was a react ti$n dated October 10, 1950, a copy of which is attac11ed` to this opinion, wherein the compensation of the members the Altoona City Authority was determined and fi$et. at 'TWENTY DOLLARS ..($20.00) , per member per meeting.' Thus, it appears that the only valid consideration .tor the current members of the Altoona City Authority . wotiiid be TWENTY DOLLARS ($20.00) per meeting as heretofore established by the governing body of the City as far `a'�s the official records of the City are concerned. 28. With respect to Authority Board members compensation, correspondence was submitted to Altoona City Council by former city officials on December 7 and 8, 1993. a. The former officials, including the Mayor and four former council members, believed authority members should receive an increase in meeting compensation. b. They requested council to consider granting a retroactive increase. 29. Altoona City Council took no action on the request from the former administration requesting a retroactive approval of City Authority Board member meeting compensator. 30. At the Altoona City Authority's February 18,.1994,meeting, discussion and action took place regarding restructuring the meeting pay received by City Authority Board:memberd. a. Mr. Lawruk motioned to formalize the job descriptions_as distributed by the Chairman in. accordance with the By- Fornwalt, 94- 003 -C2 P age`r 10 1.) Laws of the Altoona City Authority providing a legal basis for the fees established in 1981 when the Authority ,became a fully operating Authority. Motion was seconded by Mr. Geis and carried 4 -1, with Mr. Wilkin oppoa$ing. 31. Attacie4 to the Authority's February 18, 1994, meeting minutes, is the following uqlarfioatien of Board meeting minutes' February 18, 199.4. In ordef to clarify the Resolution adopted by the Board dusting its FOr ry 18, 1994, meeting concerning the payment Of ofgicers 9Qppensat o1, the f q shall be incorporated into Ma.aute9 _ited Fe 18, 1994, The f911owing.compensation eat1 be received: A. M ers of the Board a11 receive Twenty Dollars ($14b:60,-per sh month far the e their cervices as Board Members as appro by city C,u toil. B. The Offic,ers of the Authori:tyt• shall. receive Eighty Dollars, ($80.00) per mo3?th. for the services which they render as an Officer -. 2) . Recogn.izing that the Board. Membe S, may from time tot time be required to attend Special meetings! concerning Iauthor .ty`,busa.ness, the fee of F.&fty, Dollars: (+,$ 0'0 "): per meeting, shall be paid to those Board Members, required` to at tex such meetings. 32 . Any,, oc}t- ofrpocket. costs- that are incurred by, any Board shall be .documented and present t• the A ft. i:ty. Once determined by Altoona-. City Authority Sta . ,: t6, be incurred for. the benefit., of the=Altoona °. City Ab•fhiotit y, costs shall be promptly reimbursed. 4) .. Any, Board Member may, at their discretibmt waive` tiie payment: - cif any or- all_of the compensa,t bated. - ,above." 32. City Authority Solicitor David Halpern .,p CQYided the":f 001411.0i1 ' tp, City . Solicitor.. Ni John Ca4ss�ave., . dated-- 1, 1 94, on City - _Authority;. Board member.- cowPeneat.on:. "In response to.•- youz;, inquiry ,of ', June. 165, 19944 be advised that when , I was 7 , presented? with.i the. == issue concerning the .compensation- of tote members of*the- : Altoona City ,Authority., I .did conclude c • of t4r _, reeearch... thatt the • mariner in which. the , compe aeation -. wee, increased from $20 .'0 to: $10•0 . per mci 1.h in -198$ j was.. teehftcally ii'i Q ;es I utilized t}�iec:term,, "technidall.r)-- assuming t4af � i ..w s the ,imt;en ; .of al1 ° concerned;', including- • ropor r.34 City Council-, to increase. the compensation of Authority Board Members -to take into account the eddit duties and responsibilities-that would be naturally. Incident to their-obligations as members of the Board an operating authority witi, the expanded system as ' Opposed to that required members of aunding authorzt)`r I have made no independent investigation relative to this added compensation, but have begin presented with statements which would indicate that it may have been the intention of City Council, at the time to increase the compensation of the Beard members and the error lay. in the manner in which the inch ;ease was accomplished. Either City. Council srhou1d have increased the ` Boa Members stipend to $100,00 per meeting or the Resolution passed in 1981 by the Authority Hoard should have reflected that the additional compensation was for duties as officers of the Authority as opposed to compensation for attendance at meetings. Nbt being involved, I do not know "riich method, if any, the parties intended to utilize accomplish the increase. When the issue was presented to me by. the Authority's Chairman in December of 1993, after research, I came to the conclusion that the only manner in whi 'ph this matter could be properly assessed and resolved would be to submit the same to the State Ethics Commission for a determination. However, prior to obtaining the Board's approval to request that opinion, I learned that, in fact, the Commission had initiated an investigation pf this matter which, to the best of my knowledge, is ongoing as of the date of this letter. It was my opinion at the time, and is still my opinion, that there is only two ways in which this matter can be reasonably and properly resolved. First, await the results of the Commission's investigation . or, in the alternative, for City Council to determine, based ,upon the evidence before it or that which it may wish to elicit, that the 1981 increase was intended and to confirm that action in a proper manner, retroactively. I am not, however, opining that the la course would be proper. If that was Council's desire, I am sure you would advise .them accordingly. As to the question related to the actions ;taken by the Authority in 1394, I did advise the Board that it had the power to set the duties and compensation of its officers under the provisions of the Municipal Authorities Act of 1945 so long as, in my opinion, the duties for which that compensation was rendered was not for .duties generally :contemplated as within the .scope ,of Fornwalt, 94, -C2 Page 12 their duties as Bo,p,rd Megbers . tiIt was evident to me that thi ofa.cers of the Authority are required to expend co1sideFable time op Authority business between Board a3etingis to maintain and accomplish the business of the Al:1 or ty. Hopefully, the above addresses any questions City C&uncil ,may have concerning the opinions which I have .rendered to the Authority on this issue." 33. At the October •24, 1994, Authority meeting salaries for officers was set as follows: Chairman: Vice Chairman.: Secretary. Treasurer: •&ssi.stant Secretary/ Treasurer Present: ]Mora, G0s, Eawruk, cgvino, Wilk. Vote: to 1. Will�in votss rig 4t4ti,ng he won't accept co .PIR§Sticn . 34. Job descri;ticals far t1}e Baard gf Pirect were adopted by the Authority on October 24, 1$94, for the positions of Chairtaan, Vice chairman, gecretary, Treaanzer and Assistant SecrItax.y. 3S. Frcm Ju3►y,. 1, 1969, until Decembpr 31, 1993 Pornwelt was c ogTen:.Y4 ed as f -ol1ov IA: + 5�r tegilan meeti a C . 4 Pali t e special meet @ Ot041.O1Q Rer• meeting 46 spe mee tRaah ror], gess @ $5O.0-0 per. mee TOTAL $225 /month, $20.00 $125 /month, $20.00 $175141ol,th, $20.00 $100 /month, $20.00 $ 95 /mq ,th, $20,00 per meeting per meeting per meeting per meeting per meeting $5,50 @.00 $ 400.00 $2 $ &, 400 ..00 36. The compensation, recei:va4 by Fornvyal;t in; the form of mategeing pay. was $6,320.0,0 in excess q4Np. what was awtffiamzz& by Al.tnona City Council. a. Fornwalt was authp l.sed tr r $ 2 9 . OP per' mee tingr for 1Q4 meetings f . a total:, o $2s, O 37 FaXx t. a s xet�.ary /' i . .i..er:, r P P�:�' �00 • aQ w�? '�- `lzerf for 1' pa $ 2 , pe mole fir that po is att seir by the Cif Authg.;i.ty Board on Marci}, 2,7>,7 Peanwalt, 614,- Qq3 -1a g a0e 13 38. Fornwalt was entitled to receive $10,800.00 €or the fi -four months between July, 1989 1993, when he served as secretary /treasurer. 39. Fornwalt did not accept any compensation for secretary /treasurer. 40. Fornwalt was undercompensated .a total of $4,480.00 for his services as a board member and secretary /treasurer. Approved compensation as secretary /treasurer: $10,800.00 Overpayment of meeting pay: 6,320.00 DIFFERENCE: $ 4,480.00 41. Fornwalt was not a member of the Authority at the time when the meeting compensation was increased to $100.00 per meeting. a. Fornwalt believed he was entitled to such compensation. b. Fornwalt was not advised that increases in compensation required City Council Approval. c. Fornwalt relied on the advice of the authority solicitor when receiving compensation. III. DISCUSSION: in compensation , and December, the position of As a member of the Altoona City Authority, Blair County, Richard Fornwalt, hereinafter Fornwalt, was a public official as that term is defined under Act 9 of 1989. 65 R.S. §402. As such, his conduct is subject to the provisions of the Ethics Law and the restrictions therein are applicable to him. Initially, it is noted that Section 9 of Act 9 of June 26, 1989 provides, in part, as follows: This amendatory act shall not apply to violations committed prior to the effective date of this act, and causes of action initiated for such violations shall be governed by the prior law, which is continued in effect for that purpose as if this act were not in force. Pox the purposes of this section, a violationo was committed prior to the effective date of this act if any - elements of the v plat on occurred prior thereto. Since the occurrences in this case transpired effective, date of Act 9 (June 26, 1989), we must after thel apply the: Fornwalt, 94- 003 -C2 Page 14 provisions of Act 9 to determine whether violated. the :thi3s Act ws Under Section 3(a) of Act 9 of 1989 doted above, a ppbiig official /employee shall not engage in conduct ghat constit:}}ges a conflict of interest. The term "conflict: of interest" is refined under Act 9 of 1989 in the allegations. The issue in this case is whether Fgr4wait violated Section 3(a) of Act 9 of 1989 regarding the a7.legattigA that be aapepted compensation for attending meetings wj.thoi t the approval of the appointing authority. Factually, Fornwalt served as a meter of the A14 Qi.Py Authority (ACA) from January, 1985 through . h, 1.994, The AC4 is made up of a five member board appointed by the 414. city Council (Council) to provide sewer and water services fop Ole City of Altoona and neighboring municipalities. The by - laws Rf ohs ACA provide for the officer positions of Chairman, Vjge-Chgiesan, Secretary, Treasurer and officers who may be se .e,te4 by the ACA board. During his tenure on the ACA, Fornwalt #e14 9ff4..cer' positions including Assistant Secretaa and creta y /!aae.,s4Fer. . As to the receipt of compensation by members of the ,446., t?,s by- lama provide that members shall receive a salary detevg490 by Council which salary may not be increased or diminished dRr4.•ng the term for which the members are appointed. By Res a t pp pf9. 7445 adopted on October 10, 1950, Council sot compensa.0 a for 41 9.e ACA board members at $20.00 a meeting which was the ; olr cgmppeneation ever approved. In a special _executive session of the AAA i on Maa9 i 41.7, 1981, a .recommendation was made to have the mers comPeakisa,ted at a $100.00 per meeting with the Authority . Aecretafy compe gated at $200.00 per month and attendance at committee :Ro i nwi, osimpeaisated at $50.00 per meeting. The foregoing schedule •of ccgsP4sfkat4on was approved at a regu .ar meeting of the ; ACS, pin MArob. '7 14$4., At that time no salaries were set by the Anthorj.,ty f9r the ; officer :positions of Chairman, Vice- Chairman, Treasver, lqw.j4stwat Secretary and Assistant Treasurer The hoard .14,exabef4 of 440 *CA were compensated based upon the salary,schedule apprp j1 4n March 17, 1981. In particular, ACA members received 1.1P0,. PO ff"91rreSzlarr meetings, $50.00 for special meeting p.r volPick sPPO4ogs And -the years 1992 and 1993, . $100 for some speg;ia?I.. maeti } g. In October, 1993, the amount of cation received 1py Apt, lhoard members was questioned by Couns::il After the ACA Executive Di FActor tv .se ,i the Council Solic -r or tb+A't- ACA board members were , paid $+3:10,.00 for a reguAar ?ward meetings and $50 for work seasii n the Ci~t .tin k r WT .ed :a "written opinion ..from . lie SS ci as to 'thre i 4k0y_ 9f receipt of suuh .coompensetion by ' 2the ACA hoard hers. In a FQ4rnwalt, 94- 003-C2 Page: 15 written opinion dated December 21, 1993, the Solicitor advised that the ACA board did not have the power to raise their salaries for attending meetings because only Council had the authority to take such action. The Solicitor concluded that the only vailid compensation for the ACA board members was $20.00 per meeting as established by the Council as the governing body. Former Cou}cil members and the Mayor wrote the Council seeking an incxeasp i=D t i� a ACA board members to be applied etroactively 4oyq;e : r, g�� c „ 4. took no such action. "' At an ACA meeting on February 18, 1994, action bras take xo restructure the meeting pay for the ACA members. Zn `a "Clarification" which wag a4tache4 to th meeting miraaz;,tes; compensation was providod for the ACA board members to =ee,a v$ $20.00 a month as board members and $8900 as officers for €eicee rendered. In addition, special meetings of the ,A.CA wo4;12.,c fb compensated at $50.00 per meeting together with Any out pt ppcke expenses. Thereafter, the AC.A Solicitor provided lii.s ana .y is ,aztd opinion to the Council ,Zolicitor dated July 1, 1994, . on ,tthe svh j eAt of the ACA board members compensation. The ACA Solicitor cono•ludea and so advised the ACA board that it had the power to set the compensation for officers under the Municipality Authorit .es Act ,as long as the duties for which the compensation .was rendered were ass officers and not as board members. At the October 24, -1994 Ate. meeting, salaries were set for officers in amounts as delineated Fact Finding :33. -' As to Fornwalt, he was not a member of the 1 CA at the time that the compensation was increased to $100.. n addition, Fornwalt believed that he was entitled to the comp 'and _tha increases in compensation did not require Counc:il approval Lastly, Fornwalt relied upon the advice of the C -,Solicitor 'Ae/A receiving such compensation. "' It is also -noted that Fornwalt was entjt]..ed.„to ,hut ,did not accept compensation for his service as Secretary /TrrAmprer. In applying the provision of Section 3(a) of ,pct 9 of 1989 to the instant matter, we find no violation as .fo the .receipt by Fornwalt of the c omp ensation for attending the ACS meetings. a In order to establish a violation of Section 3(a) of Act,9 of - 19 . we must show as to a public official that there was a use of authority of office which resulted in a private pecuniary benefit to himself. Latch, Order 823. in this case, we note that the action taken by the ACA board members . to : increase their compensation to $100.00 was taken at a time when Fornwalt was not on the board. Without the requisite use of authority o•f.:office, which in this case is lacking on the part of Fornwalt, we find that no violation of Section 3(a) of the .Law. In this regard, we also note that Fornwalt .relied on the ACA Solicitor and was never advised that his receipt -.of :compensation was in excess of the amount approved by the City of Fornwalt, 94- O83zg2 Page 16 Altoona. W. CONCLUSIONS OF LAN: 1. Richard Fornwalt as a member of the Altoona City Authority was a public official subject to the provisions of Act 9 of 1989. 2. Fornwalt did not violate aactig 3(a) of Act 9 of 1989 regarding the reggipt of compagaatioa, for attending meetings without Vh$ appro r 1 gf the governing body in that he was not a mee;n o£ the Authority when such compensation was incr In Re4. aiabowik g*Nywalt. File Docket: 94-003-C2 Date Decioyipl: 05/04/95 Dat ai1 O5/1C/95 ORDEPR Nc). 970 X. Richard Rqwwelt as a member. of t.04 Altoona Gity. Authority,' did no% '40140% aect,i9a 3 (a) of Act 9 of 1989 rOgardiniCthe reword.** cof qqmpensation for ttending meetings $ith, t1 approvAl the governing Jzody iR that he was npt iH6 erAt tho AutugriAy when such qtimpensation was increaspd. BY THE COMN;Sg/ON, DANEEN E.-EEESE;--CgAI4