HomeMy WebLinkAbout1262 RiceIn Re: Gordon Rice
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Daneen E. Reese
Frank M. Brown
Donald M. McCurdy
Michael Healey
01- 049 -C2
Order No. 1262
12/4/02
12/16/02
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Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11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.
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I. ALLEGATION:
That Gordon Rice, a public official /public employee, in his capacity as a council
member for ) Elkland Borough, Tioga County, violated Sections 1103(a), 1103(, 1105(b)(5),
(8) and (9) provisions of the State Ethics Act (Act 93 of 1998) 65 Pa.C.S. §1103(a), (f);
§§1105(b)(5), (8) and (9) when he used the authority of his office for a private pecuniary
benefit by utilizing borough employees and equipment to have top soil and fill taken to property
owned by him; when he participated in actions of council resulting in a business with which he
is associated being awarded contracts in excess of $500.00 without an open and public
process; and when he failed to list all sources of income and business interests on
Statements of Financial Interests filed for the 1999 and 2000 calendar years.
II. FINDINGS:
1. Gordon Rice has served as an Elkland Borough Council Member since
November 20, 2000.
2. Rice has owned and operated an automobile repair business known as Gordy's
Garage, located at 102 Coates Hill Road, Elkland, PA since 1996.
a. Gordon Rice is the sole proprietor of Gordy's Garage.
3. Repairs to borough vehicles are initiated by Borough Public Works Supervisor Peter
VanGorden, after receiving approval for the work from Council President Donald
Carman.
a. Funds are annually budgeted for the general care and maintenance of borough
vehicles.
4. Elkland Borough has not sought competitive bids for the general care and maintenance
of its vehicles.
a. The borough has utilized the services of a number of vendors for repair and
general maintenance of borough vehicles.
b. In addition to Gordy's Garage, the borough has utilized Learn Ford, Bounce's
Auto Body, Martin Chevrolet, Elkland Exxon and Western Auto for repairs and
maintenance to borough vehicles.
5. Gordy's Garage has been utilized by the borough for maintenance repairs to borough
vehicles, including but not limited to oil changes, state inspections, tire repairs and
other emergency repairs, since approximately 1996.
a. Gordy's Garage's business relationship with Elkland Borough predates his
appointment to council.
6. Gordy's Garage continued to perform work on borough vehicles after Rice became a
councilman.
7. Total repairs performed by all facilities since January 2000 on borough vehicles were
as follows:
Garage No. of Repairs Total Paid
Gordy's Garage 27 $3,303.82
Martin Chevrolet 9 $ 811.13
Learn Ford 7 $ 980.24
Bounces Auto Body 1 $ 200.00
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8. Elkland Borough business records confirm receipt of 22 business invoices for repairs
performed by Gordy's Garage since November 20, 2000.
9. According to Gordon Rice, Gordy's Garage operates on a 10% profit margin.
10. The total profit for the 20 invoices under $500 for the repairs performed by Gordy's
Garage for Elkland Borough was $505.
11. In or about November 25, 2000, Rice discussed tire purchases for the borough truck
with Council President Carman and Public Works Superintendent VanGorden.
12. Gordy's Garage obtained the tires and tubes sold to Elkland Borough from K &W Tire
Company, Inc., Williamsport, PA, on November 25, 2000.
a. The total cost to Gordy's for the tires and tubes was $815.46.
13. On November 28, 2000, Gordy's Garage was issued borough check number 5573 in
the amount of $1,113.42 for these repairs [sic].
a. This check is signed by William Scoonover and Deborah Fish.
b. This check was deposited into the business account of Gordy's Garage on
November 28, 2000.
c. This payment was approved by Elkland Borough council during their December
12, 2000, meeting.
1. Rice was present and participated in the vote to approve payment which
passed 6 -0.
14. The difference between the cost to Gordy's Garage ... and the charge to the borough
was $297.96.
15. Elkland Borough did not seek any competitive bids for the tires sold by Gordy's Garage
on November 27, 2000.
16. In or about May 31, 2001, Rice discussed another tire purchase with Council President
Carman and Public Works Superintendent VanGorden.
17. Elkland Borough did not seek any competitive bids for the tires sold by Gordy's Garage
on May 31, 2001.
18. On May 21, 2001, Rice purchased 6W1 1511 Y960 Cooper 235 /85R16 tires from K &W
Tire Company, Williamsport, Pennsylvania for resale to Elkland Borough.
a. K &W Tire invoice number 02214216 was issued to Gordy's Garage for these
tires in an amount of $540.90.
19. Gordy's Garage invoice number 1451 was issued to Elkland Borough on May 21,
2001, in an amount of $610.96.
a. The invoice included charges for the tires, an oil change and state inspection.
20. Gordy's Garage invoice number 1451 included the following breakdown of items sold.
a. (6) Cooper LT 235- 85R -16 (tires) $540.96
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Mounting and Balancing $ 30.00
Oil Change and Filter $ 25.00
State Inspection $ 15.00
Total $610.96
21. On May 31, 2001, Gordy's Garage was issued borough check no. 6068 in the amount
of $610.96 for these repairs.
a. This check is signed by Donald Carman and Deborah Fish.
b. This check was deposited into the business account of Gordy's Garage on
June 1,2001.
c. This payment was approved by Elkland Borough Council during their June
11, 2001, meeting.
1. Rice was present and participated in this vote which passed 6 -0.
22. Gordy's Garage did not receive a private pecuniary gain as a result of the sale of these
tires to the borough.
23. Payments of expenses incurred by the borough, are issued upon the approval of
monthly bill lists and treasurer's reports.
a. Bill lists and treasurer's reports are provided to council members several days
prior to a council meeting for review.
b. Bill lists and treasurer's reports are voted on in their entirety.
24. Rice regularly participated in council actions to approve payments on the monthly
accounts payable list, which included payments to Gordy's Garage.
a. Rice also regularly participated in council actions to accept and approve the
treasurer's report which includes payments to Gordy's Garage.
25. Elkland Borough meeting minutes confirm Rice's participation in nine (9) actions taken
by council to approve accounts payable and treasurers reports which included
payments to Gordy's Garage totaling $3,254.49.
26. Rice ceased doing any repair work for the borough after September 6, 2001.
(The following Findings relate to the allegation that Gordon Rice utilized borough
equipment and employees to deliver and spread fill material at his property.)
27. Elkland Borough has a policy of renting its equipment out to private citizens for non -
borough work provided the work does not conflict with normal borough activities.
a. This practice pre -dates Rice's tenure on the board.
b. The borough also offers for sale topsoil and gravel to residents.
c. Elkland Borough does not actively advertise or promote the availability of its
equipment, gravel or topsoil.
28. Since 1996, Elkland Borough established rental rates for the personal use of borough
equipment, topsoil and gravel delivery as follows:
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Labor per man:
Backhoe with operator:
Dump truck with operator:
Top Soil (small truck):
River Gravel:
$ 20.00 per hour
$ 50.00 per hour
$ 45.00 per hour
$ 25.00
$ 25.00
29. During the summer of 2001 the Elkland Borough road crew was widening High Street,
a borough road.
a. As part of the project, a large quantity of fill was removed from a bank located
on the side of High Street.
b. Borough employees Peter VanGorden, Dennis Loucks and Delbert Gee all
worked on this project.
30. In the past, the borough has utilized two sites to dump excess fill material, including the
Metamora property (a local business) and property owned by the local fire company.
a. Fill material also would be provided to residents who requested it.
b. Depending upon the quality of the fill material, a fee for topsoil may be charged
to the resident receiving the material.
31. Material removed from the High Street road project consisted of clay, rocks, tree roots
and fill dirt and was not deemed to be topsoil quality.
32. Some of this fill was dumped at the site of Gordy's Garage.
a. Gordy's Garage is situated on a portion of Rice's residence at 102 Coates Hill
Road, Elkland, PA.
33. Rice arranged through Public Works Superintendent VanGorden to have the fill
removed from High Street delivered to his property.
a. VanGorden directed borough employees Delbert Gee and Dennis Loucks to
haul the fill to Rice's property.
34. Road workers Loucks and Gee, hauled the excess fill approximately one mile to
Gordy's Garage and dumped the fill at Gordon Rice's property.
a. A five ton borough dump truck was used to haul the fill.
35. Once all the fill was dumped at Rice's property, the borough's backhoe, operated by
borough road workers, was used to level the fill dirt.
a. The backhoe was used for approximately one hour to do this work.
b. The borough's rental fee for a backhoe with operator was $50.00 per hour.
36. It took approximately 30 minutes to load, haul and unload one truckload of surplus fill
from High Street to Rice's property.
a. Two trips were made each hour.
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b. Rice further confirmed, to Ethics Commissions investigators, that the road
department delivered over 100 loads of material to his property.
1. Rice did not keep an exact count.
37. On October 24, 2001, Rice assisted an investigator from the State Ethics Commission
measure the fill he received at his property. Fill received by Rice had the following
dimensions:
a. Height:
b. Length:
c. Width:
5 ft. 6 inches
160 feet
33 feet
38. William Bosche, engineer for the Pennsylvania Department of General Services
Engineering Division, Harrisburg, PA, was provided with the measurements of the fill
taken to Rice's property.
a. Bosche calculated that approximately 1,184 tons of material would be required
to fill in an area 5 ft 6 in. high, 160 feet long, and 33 feet wide.
b. Using a five ton truck such as the one used by Elkland Borough, 236.8 loads of
fill would be required to fill in this space.
39. Borough workers spent approximately 118 hours hauling dirt to Rice's property.
a. One hundred eighteen (118) hours is based on 236 loads at thirty (30) minutes
per load.
40. Gordon Rice did not pay the borough for the equipment rental, labor, or surplus fill that
was dumped at his property.
41. During an interview with investigators of the State Ethics Commission, Rice estimated
the value of the fill he received of at least $3,000.
(The following Findings refer to the allegation that Rice failed to report all sources of
income on Statements of Financial Interests.)
42. Rice, in his official capacity as an Elkland Borough Councilman, annually filed a
Statement of Financial Interests as follows.
a. Calendar Year:
Filed:
Position:
Real Estate Interests:
Creditors:
Direct /Indirect Income:
Office, Directorship or Emp. in any Business:
Financial Int. in any Business for Profit:
b. Calendar Year:
Filed:
Position:
Real Estate Interests:
Creditors:
1999
11/20/00
Council Person
None
None
Self- Employed
None
Gordy's Garage
2000
01/08/01
Council Person
None
None
Rice 01- 049 -C2
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Direct /Indirect Income:
Office, Directorship or Emp. in any Business:
Financial Int. in any Business for Profit:
c. Calendar Year:
Filed:
Position:
Real Estate Interests:
Creditors:
Direct /Indirect Income:
Office, Directorship or Emp. in any Business:
Financial Int. in any Business for Profit:
Self- Employed
None
None
2000
02/07/01
Council Person
None
None
Self- Employed
None
Gordy's Garage
43. Rice did not disclose his office, directorship or employment position in Gordy's Garage
on Statements of Financial Interests he filed on January 8, 2001, and February 7,
2001, for calendar year 2000 and November 20, 2000, for calendar year 1999.
a. Rice owned and was the sole employee of Gordy's Garage during these
calendar years.
44. Rice failed to disclose Gordy's Garage as a business in which he has a financial
interest on his Statement of Financial Interests he filed on January 8, 2001, for
calendar year 2000.
a. Rice discloses this interest on Statements of Financial Interests filed by him
dated November 29, 2000, and February 8, 2001.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Gordon Rice, hereinafter Rice, 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 Rice, as an Elkland Borough Council Member, violated
Sections 1103(a), 1103(f) 1105(b)(5), (8) and (9) of the Ethics Act when he: utilized borough
employees and equipment to have top soil and fill taken to property owned by him; participated
in actions of council resulting in a business with which he is associated being awarded
contracts in excess of $500.00 without an open and public process; and failed to list all
sources of income and business interests on Statements of Financial Interests (SFI's) filed for
the 1999 and 2000 calendar years.
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
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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.
Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting.
Section 1103(f) of the Ethics Act provides:
Section 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 Pa.C.S. § 1103(f).
Section 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 1105(b) of the Ethics Act requires that every public official /public employee and
candidate list the name and address of any direct or indirect source of income totaling in the
aggregate of $1,300 or more.
§ 1105. Statement of financial interests
(b) Required information. - -The statement shall include the
following information for the prior calendar year with
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regard to the person required to file the statement:
(5)
The name and address of any direct or indirect
source of income totaling in the aggregate $1,300
or more. However, this provision shall not be
construed to require the divulgence of confidential
information protected by statute or existing
professional codes of ethics or common law
privileges.
(8) Any office, directorship or employment of any
nature whatsoever in any business entity.
(9) Any financial interest in any legal entity engaged in
business for profit.
65 Pa.C.S. § 1105(b)(5), (8), (9).
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.
Rice has been an Elkland Borough Council Member since November 2000. In a
private capacity Rice owns and operates Gordy's Garage as a sole proprietorship.
When there is a need to repair borough vehicles, the public works supervisor initiates
action after receiving approval from council president. The borough does not solicit
competitive bids for the general care or maintenance of its vehicles but rather uses the
services of several repair shops. Gordy's Garage has provided such services to the borough
even before Rice was appointed to council. A breakdown as to the number of repair orders and
the total price paid to the various repair shops is reflected in Fact Finding 7.
In November 2000, Rice discussed tire purchases for a borough truck with the council
president and the public works superintendent. The tires for the borough vehicle were
purchased from Gordy's Garage which made a profit of $297.96. The borough did not seek
competitive bids for the tires and council approved payment by a 6 -0 vote with Rice
participating.
In May of 2001, Rice discussed another tire purchase with council president and the
public works superintendent. Without the borough seeking bids, Gordy's Garage sold the tires
to the borough as well as performed an oil change and state inspection for $610.96. Payment
was approved by a 6 -0 vote of council with Rice participating. Gordy's Garage did not receive
any financial gain as a result of the sale of those tires. In total, Rice participated in nine
actions taken by council to approve payments which included Gordy's Garage. Rice ceased
doing any repair work for the borough after September 2001.
Separate and apart from the above, Rice utilized borough equipment and employees for
personal purposes. The borough has a policy of renting its equipment to private citizens,
which practice predates Rice's tenure on council. The borough has developed a rental rate for
labor, equipment, and materials, such as topsoil or river gravel. In the summer of 2001, the
borough crew was widening a street which resulted in the removal of a large quantity of fill
consisting of clay, rocks, tree roots and dirt which was not topsoil quality. Although the
borough had two sites for dumping fill materials, this particular fill was dumped at the site of
Gordy's Garage. Rice had arranged with the public works superintendent to have the fill
delivered to his property. Two road workers hauled the fill approximately one mile to Gordy's
Garage and dumped the fill there utilizing a five -ton borough dump truck. It took a half hour
per load to load, haul and dump the fill at Rice's property. After the fill was dumped on Rice's
Rice 01- 049 -C2
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property, borough road workers spent one hour's time utilizing the borough backhoe to level
the fill. There were over 100 loads of material trucked to Rice's property. With the use of 118
man -hours by borough employees, approximately 1,184 tons of material were delivered to
Gordy's Garage. Rice did not pay the borough for the equipment rental, labor, or fill that was
dumped on his property which is estimated at $3,000.
Lastly, the findings reflect that Rice filed deficient SFI's for calendar years 1999 and
2000. The information that Rice supplied on his SFI's for the calendar years 1999 and 2000
is reflected in Fact Finding 42. Rice failed to disclose his office, directorship or employment in
Gordy's Garage on SFI's filed for the calendar years 1999 and 2000. In addition, Rice failed
to disclose Gordy's Garage as a business in which he has a financial interest on his SFI for
the calendar year 2000. Rice disclosed his business interest on SFI's dated November 29,
2000 and a subsequent calendar year 2000 filing of February 7/8, 2001. Compare, Fact Findings
42.c. and 44.a.
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 sets forth a proposed resolution of the allegations: an
unintentional violation of Section 1103(a) of the Ethics Act when Rice utilized borough
employees and equipment to have top soil and fill taken to property owned by him; a technical
violation of Section 1103(f) Ethics Act when Rice participated in actions of council resulting in
his business being awarded contracts, on two occasions, in excess of $500.00 without an
open and public process; no violation of Section 1103(a) Ethics Act when Rice participated in
actions of council to pay bills for services rendered by his business as such actions were de
minimis; and a technical violation of Section 1105(b)(5) of the Ethics Act when he failed to list
all sources of income and business interests on SFI's filed for the 1999 and 2000 calendar
years. In addition, Rice agrees to make payment in the amount of $1,350 to the
Commonwealth of Pennsylvania through this Commission within thirty (30) days of the
issuance of the final order.
In applying Section 1103(a ) of the Ethics Act to this case, we find that there were uses
of authority of office by Rice. But for the fact that he was a borough council member, he could
not have directed borough employees and utilized borough equipment to have topsoil and fill
taken to property that he owned. These actions were uses of authority of office. See,
Juliante, Order 809. The uses of authority of office resulted in pecuniary benefits consisting
of the out of pocket expenses that Rice did not have to pay by utilizing borough personnel and
equipment to do personal services. The pecuniary benefits were private because there is no
provision in law allowing a borough council member to utilize borough equipment and
personnel for private personal services. Lastly, the private pecuniary benefits inured to Rice
or Gordy's Garage, a business with which Rice is associated as that term is defined under the
Ethics Act. Accordingly, Rice unintentionally violated Section 1103(a) of the Ethics Act when
he utilized borough employees and equipment to have topsoil and fill taken to his private
property. See, Burchfield, Order 1207.
Turning to the aspect of the allegation involving Rice's participation in the bill approval
process as to invoices to his own business, the record reflects that Rice participated in council
actions to approve such payments. Such actions were uses of authority of office. However,
the stipulation in this case reflects that the monies received by Gordy's Garage and
derivatively Rice as a result of these individual transactions was de minimis. Since the Ethics
Act has a de minimis exclusion as to conflict, we conclude that Rice did not violate Section
1103(a) regarding participating in actions of council to approve invoices of services provided
by Gordy's Garage, a business with which Rice is associated, in that such actions were de
minimis.
Turning to Section 1103(f) of the Ethics Act, this section provides that a public official
or his business may contract with his governmental body, but if the contract is $500 or more, it
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must be awarded through an open and public process. In this case, there were two instances
regarding tire sales by Gordy's Garage to the borough which exceeded the $500 threshold of
Section 1103(f) of the Ethics Act. Consistent with borough practice, neither of these contracts
was advertised for bids. However, as noted above, the Ethics Act requires an open and public
process in such instances. Accordingly, Rice technically violated Section 1103(f) of the
Ethics Act in two instances when his business contracted with the borough for the sale of tires
which contracts were in excess of $500 but were not awarded through an open and public
process. See, Futules, Order 1231.
Lastly, as to the SFI allegation in this case, the fact findings reflect that Rice failed to
disclose his office, directorship or employment in Gordy's Garage on his SFI's for the calendar
years 1999 and 2000. In addition, Rice failed to disclose Gordy's Garage as a business which
he had a financial interest on his SFI for the calendar year 2000. Accordingly, Rice
technically violated Section 1105(b ) of the Ethics Act when he failed to list such financial
interests for the SFI's for the calendar years 1999 and 2000. See, Rinehimer, Order 1216.
Rice is directed within 30 days of the date of mailing of this order to file amended SFI's for the
calendar years 1999 and 2000 listing his financial interest in Gordy's Garage as well as any
other sources of income which exceeded the $1,300 reporting threshold.
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, Rice is directed to make payment
through this Commission to the Commonwealth of Pennsylvania in the amount of $1,350
within 30 days of the issuance of this Order. We take administrative notice that Rice made
payment of $1,350 on November 4, 2002.
Rice is also directed to file amended SFI's correcting the deficiencies noted above
within 30 days of the issuance of this Order, filing the original with Elkland Borough and a
copy with this Commission for compliance verification purposes. 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. Rice, as an Elkland Borough Council Member, is a public official subject to the
provisions of Act 9 of 1989 as codified by Act 93 of 1998.
2. Rice unintentionally violated Section 1103(a) of the Ethics Act when he used the
authority of his office for a private pecuniary benefit by utilizing borough employees and
equipment to have topsoil and fill taken to property owned by him
3. Rice technically violated Section 1103(f) Ethics Act when he participated in actions of
council resulting in a business with which he is associated (Gordy's Garage) being
awarded contracts, on two occasions, in excess of $500.00 without an open and public
process.
4. Rice did not violate Section 1103(a) Ethics Act when he participated in actions of
council to pay bills for services rendered by Gordy's Garage, as such actions were de
minimis.
5. Rice technically violated Section 1105(b)(5) of the Ethics Act when he failed to list all
sources of income and his financial interest in Gordy's Garage on Statements of
Financial Interests for the 1999 and 2000 calendar years.
In Re: Gordon Rice
ORDER NO. 1262
File Docket: 01- 049 -C2
Date Decided: 12/4/02
Date Mailed: 12/16/02
1. Rice, as an Elkland Borough Council Member, unintentionally violated Section 1103(a)
of the Ethics Act when he used the authority of his office for a private pecuniary benefit
by utilizing borough employees and equipment to have topsoil and fill taken to property
owned by him
2. Rice technically violated Section 1103(f) of the Ethics Act when he participated in
actions of council resulting in a business with which he is associated (Gordy's Garage)
being awarded contracts, on two occasions, in excess of $500.00 without an open and
public process.
3. Rice did not violate Section 1103(a) of the Ethics Act when he participated in actions of
council to pay bills for services rendered by Gordy's Garage, as such actions were de
minimis.
4. Rice technically violated Section 1105(b)(5) of the Ethics Act when he failed to list all
sources of income and his financial interest in Gordy's Garage on Statements of
Financial Interests for the 1999 and 2000 calendar years.
5. Per the Consent Agreement of the parties, Rice is directed to make payment in the
amount of $1,350 within 30 days of the issuance of this Order through this
Commission to the Commonwealth of Pennsylvania. We take administrative notice
that Rice made payment of $1,350 on November 4, 2002.
6. Rice is directed to file amended SFI's for the calendar years 1999 and 2000 listing the
financial interests as noted in paragraph 4.
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