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HomeMy WebLinkAbout1309 SnyderIn Re: Lloyd Snyder 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 Paul M. Henry 03 -016 Order No. 1309 12/17/03 12/29/03 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 not filed and a hearing was deemed waived. The record is complete. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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. Snyder 03 -016 Page 2 I. ALLEGATION: That Lloyd Snyder, a (public official /public employee) in his capacity as a member of Tullytown Borough Council and the Lower Bucks County Joint Municipal Authority violated the following provisions of the State Ethics Act (Act 93 of 1998) when he used the authority of his office for a private pecuniary gain, including but not limited to participating in actions of the authority and the borough, regarding contracts and /or issues affecting Waste Management, Inc., at a time when he was accepting gifts from Waste Management in the form of memberships to the Penn Warner Club. Section 1103. Restricted activities. (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. §1103(a). Section 2. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public f of ce or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 P.S. §1102. II. FINDINGS: 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that Lloyd Snyder violated provisions of the State Ethics Act (Act 93 of 1998). 2. Upon review of the complaint the Investigative Division initiated a preliminary inquiry on March 6, 2003. 3. The preliminary inquiry was completed within sixty days. 4. On May 5, 2003, a letter was forwarded to Lloyd Snyder, by the Investigative Division of the State Ethics Commission informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. 7001 1940 0001 2179 4745. b. The domestic return receipt bore the signature of Lloyd Snyder with a delivery date of May 8, 2003. 5. Periodic notice letters were forwarded to Lloyd Snyder in accordance with the Snyder 03 -016 Page 3 provisions of the Ethics Law advising him of the general status of the investigation. 6. The Investigative Complaint was mailed to the Respondent on October 31, 2003. 7. Lloyd Snyder has served as a member of Tullytown Borough Council since 1998. 8. As a member of council, Lloyd Snyder has served on the following committees: a. Finance Committee Personnel Committee Streets Department 9. The following chart delineates Snyder's salary as a council member for calendar years 1998 -2002 as codified by 1099 tax forms issued by Tullytown Borough Council. a. 1998 1999 2000 2001 2002 $1,875.00 $1,875.00 $1,875.00 $1,875.00 $1,875.00 10. Snyder is also a member of the Lower Bucks County Joint Municipal Authority. a. Snyder was appointed to the authority in January of 2003. b. The salary for sitting board members is $3,600 annually. 11. Snyder has been employed by K -Mart as a shipper /receiver for 25 years. 12. Tullytown Borough hosts two (2) landfills operated by Waste Management, Inc. a. The Tullytown landfills have been in operation since 1987. b. Landfill 1 is known as Tullytown Resource Recovery. 1. The landfill has been wholly owned by Waste Management since its inception. 2. Tullytown Resource Recovery encompasses 401.4 acres of approved landfill space. c. Landfill 2 is known as Grows Landfill. 1. The landfill has been wholly owned by Waste Management since its inception. 2. Grows Landfill encompasses 456.6 acres of approved landfill space. 13. Waste Management's landfill property flanks an approximate 3,000 -acre recreational facility known as the Penn Warner Club. a. Two thousand (2,000) acres of the Penn Warner Club is lake area. b. Waste Management owns a total of 5,920 acres. 14. The Penn Warner Club had been privately owned by the Warner Corporation until 1991 when the club was sold to Waste Management, Inc. Club Plan 1998 1999 2000 2001 2002 $475.00 Famil Membershi. $400.00 $435.00 $450.0 0 $4/5.00 Individual /Com. Membershi. .430.00 $465.00 $480.00 $505.00 $505.00 Individual Membership .340.00 $375.00 $390.00 $415.00 $415.00 Junior Membershi. $65.00 $75.00 $75.00 $75.00 $75.00 Boat /Sail b Foot .3.50 $3.50 $3.50 $3.50 $3.50 Boat /Power b Foot .2.00 $2.50 $2.50 $2.50 $2.50 Motor 125 h. .1.25 $1.25 $1.25 $1.25 $1.25 Mooring Service .100.00 $100.00 $100.00 $100.00 $100.00 Hunting Privilege $530.00 $540.00 $540.00 $640.00 $640.00 Snyder 03 -016 Page 4 a. The Penn Warner Club has been in existence for over 30 years. b. Waste Management retained the name of Penn Warner Club to maintain the club's popularity within the community of Bucks County. 15. The Penn Warner Club offers the following amenities for its members. a. Hunting Fishing Boating Camping Outdoor Hiking 16. The Penn Warner Club offers respective members full access to the club, with specific amenities, based upon a fee schedule which is listed below for years 1998 -2002. 17. Prospective members are granted a yearly membership card for club privileges for the plan they chose, upon receipt of payment to Penn Warner. 18. Penn Warner Club sends renewal membership applications to existing members on an annual basis. a. These renewals are sent to existing members in the month of January. 19. Prior to 1991, the Penn Warner Club, issued complimentary memberships which included the following groups: a. Law enforcement officers Elected officials Business owners Warner Company employees Warner employee families 20. Complimentary memberships were approved by Mr. Frank Branagan, club consultant. a. Branagan had been a consultant for Penn Warner from 1983 until 2002. b. Branagan inherited this duty of complimentary membership selection from executives of Penn Warner, prior to 1983. c. All complimentary memberships granted from 1983 to 2001 were approved by Frank Branagan. 21. Upon acquisition of the Penn Warner Club by Waste Management in 2001, the complimentary membership policy remained in effect until 2003. Snyder 03 -016 Page 5 a. Branagan remained an employee of the Penn Warner Club after Waste Management took over operations of the club. b. Branagan was authorized by Waste Management to continue to issue complimentary memberships at his discretion. 22. Waste Management continued this practice of issuing complimentary memberships to bolster their "good neighbor" policy. a. Waste Management's "Good Neighbor" policies, while not documented, utilizes the promotion of (1) financial assistance; (2) community aid; and (3) donations by operators of landfills to pacify public concerns of landfill negativity. 23. The complimentary memberships issued by Branagan did not include the hunting privilege. a. Individuals who desired a complimentary hunting privilege, would specify that request by requesting the privilege in writing on the renewal application form. b. Complimentary members would then receive the hunting privilege at no charge. 24. The following represents actual memberships, compared to complimentary memberships issued by Branagan for the years 1998 to present. Year Actual Paid Memberships Complimentary Memberships 1998 1,609 79 1999 1,497 58 2000 1,459 79 2001 1,410 74 2002 1,377 85 2003 1,291 56 25. Lloyd Snyder is a personal friend to Frank Branagan. 26. Lloyd Snyder had been receiving complimentary Penn Warner memberships, including hunting privileges since 1973. a. This complimentary membership pre -dates Snyder's election to council and his appointment to the Lower Bucks County Joint Municipal Authority. 27. Snyder would send annual renewal applications directly to Frank Branagan. a. Branagan would in turn approve the complimentary membership. 28. Snyder, who is an avid hunter, has specifically requested the hunting privilege in writing on his renewal application since at least 1998. a. Branagan has approved the privilege, and ordered a membership card to be issued to Snyder. b. The membership card has been produced by club manager Ginger McAllister and sent to Snyder on an annual basis. 29. In his position as a councilman and authority board member, Snyder has completed Statements of Financial Interests. 30. On Statements of Financial Interests filed by Snyder for calendar years 1998, 1999 and 2001 Snyder disclosed Penn Warner Club as a gift in excess of $250.00. Snyder 03 -016 Page 6 a. On SFIs filed for 1998 and 1999 calendar years, Snyder disclosed the value of the Penn Warner membership as $550.00. b. The actual value of membership in 1998 was $960.00 and 1999 was $1,005.00. 31. On the Statements of Financial Interests filed for the 2001 calendar year Snyder disclosed Penn Warner Club as a gift but did not disclose a value. a. The actual value of the membership in 2001 was $1,155.00. 32. Snyder did not disclose the Penn Warner membership on the Statement of Financial Interests filed for the 2000 calendar year. a. The value of the gift was $930.00. 33. In or about February 2003 questions were publicly raised in local newspapers that Snyder did not disclose Penn Warner Club on his calendar year 2000 and 2001 Statements of Financial Interests. 34. Snyder, as a result, filed an amended form for calendar year 2000, disclosing Penn Warner with a gratuity value of $1,000.00. a. Snyder filed the amended form for calendar year 2000 on February 19, 2003. b. The actual value of the membership in 2000 was $930.00. 35. Snyder filed an amended form for calendar year 2001, disclosing Penn Warner Club on his calendar year 2001 Statement of Financial Interests with a value of $1,000. a. Snyder filed the amended form for calendar year 2001 on February 19, 2003. b. The actual value of the membership in 2001 was $1,155. 36. Snyder filed a Statement of Financial Interests for the 2002 calendar year on January 25, 2003. a. Snyder disclosed Penn Warner Club as a gift and determined the value at $1,000. 37. Snyder underreported the value of the membership privileges from Penn Warner from calendar years 1998 to 2001. 38. Beginning in 2003, Penn Warner Club no longer extended gratuities to government officials within the Commonwealth of PA, the State of New Jersey, the State of Delaware and the State of Maryland. 39. Waste Management has had issues before Tullytown Council regarding matters involving landfill expansions, parcel subdivisions, land acquisitions and open space plans to further enhance their landfill enterprise. 40. Snyder, in his capacity as Councilman had voted at least four (4) times since 2000 concerning matters involving Waste Management, while receiving complimentary memberships to the Penn Warner Club, which is owned by Waste Management. a. Votes to approve matters and openly participated in discussions involving Waste Management by Snyder enabled Waste Management to expand the Date Purpose Official Action 04/1 / Discussion on landfill expansion Present 02/06/01 Votes on Waste Management Parcel Subdivision In Favor 10/02/01 Land Acquisition Seconds 02/04/03 Vote on Waste Management Subdivision In Favor Snyder 03 -016 Page 7 landfill enterprise. 41. The following chart represents votes by Snyder relating to matters involving Waste Management. 42. As a member of the Lower Bucks County Joint Municipal Authority (LBCJM), Snyder voted to award a contract to Waste Management on February 19, 2003. a. This contract was titled WWTP -217. b. This contract was for the removal of dewatered sludge for the Bucks County Wastewater Treatment Plant. c. The contract was awarded to Waste Management at $61.51 per ton. d. LBCJMA Engineer Vijay Rajput recommended the contract award to Waste Management after his review of the contract. e. Waste Management was the low bidder for the contract. f. Snyder voted to approve the contract to Waste Management. 43. At the April 16, 2003, meeting, Authority Solicitor James Downing stated that Snyder, as a newly appointed member of the Lower Bucks County Joint Municipal Authority, was unaware that he could not vote on matters involving Waste Management. a. The original motion to approve contract WWTP -217 was retracted. b. Snyder abstained on the newly motioned award of contract to Waste Management. c. The motion passed with Snyder abstaining. III. DISCUSSION: At all times relevant to this matter, the Respondent, Lloyd Snyder, hereinafter Snyder, 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 Snyder, a public official in his capacity as a member of Tullytown Borough Council and the Lower Bucks County Joint Municipal Authority (LBCJMA) violated Section 1103(a) of the Ethics Act when he participated in actions of the authority and the borough, regarding contracts and /or issues affecting Waste Management, Inc., at a time when he was accepting gifts from Waste Management in the form of memberships to the Penn Warner Club. Pursuant to Section 3(a)/1103a) of the Ethics Act quoted above, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest. Snyder 03 -016 Page 8 Section 3(a)/1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Having noted the issues and applicable law, we shall now summarize the relevant facts. Snyder has been a Tullytown Borough Council member since January of 1998 and a member of the LBCJMA Board since January of 2003. Two landfills are operated by Waste Management, Inc. within the borough. The landfill property is near or contiguous to a 3,000 acre recreational facility known as the Penn Warner Club which offers hunting, fishing, boating, camping and outdoor hiking to its members. Waste Management, Inc. acquired the Penn Warner Club from the Warner Corporation in 1991. Membership privileges for the Penn Warner Club are based upon a fee schedule as delineated in Fact Finding 16. Memberships at Penn Warner Club are granted on a yearly basis with the privileges dependant upon the club plan that is chosen. Prior to 1991, the Penn Warner Club issued complimentary memberships to law enforcement officers, elected officials, business owners, Warner company employees and their families. The complimentary memberships were approved by Frank Branagan, a club consultant. The policy of issuing complimentary memberships continued after Waste Management, Inc. purchased the Penn Warner Club. Waste Management, Inc. authorized Branagan to issue complimentary memberships at his discretion as a basis for bolstering its image as a "good neighbor." For the years 1998 through 2003, the total complimentary memberships that were issued varied from a low of 56 to a high of 85. The paid memberships in that same time period varied from a low of 1,291 to a high of 1,609. In that Snyder is a personal friend of Frank Branagan and the recipient of complimentary memberships since 1973, Snyder annually would send his renewal applications to Frank Branagan who would approve the complimentary memberships. Since Snyder is an avid hunter, he requested that his memberships include hunting privileges which added an extra value to the gifts. Waste Management, Inc. discontinued its policy of providing Penn Warner Club guest memberships to government officials in the Commonwealth in 2003. Waste Management, Inc. had issues before council regarding landfill expansion, parcel subdivisions, land acquisitions, and subdivisions to further enhance its landfill enterprise. Snyder, as a council member, voted on at least four occasions on issues involving Waste Management, Inc. while receiving complimentary memberships at the Penn Warner Club. See, Fact Findings 40, 41. Snyder, as a LBCJMA Board member, voted to award a contract to Waste Management, Inc. in February 2003. That motion was retracted and then revoted as to which Snyder abstained. See, Fact Findings 42, 43. Turning to the SFI's, Snyder was required to annually file SFI's as a member of the Tullytown Borough Council and LBCJMA. Regarding the SFI's that Snyder filed with Tullytown Borough, Snyder listed the Penn Warner Club memberships on his 1998 through 2002 calendar year SFI's as follows: understated the value of the memberships in 1998 and 1999 at $550.00 rather than the actual value of $960.00 and $1,005,00 respectively; failed to list the membership for 2000; listed but failed to value the membership in 2001; and listed it at a value of $1,000 for 2002. Snyder subsequently filed amended SFI's for Tullytown Borough for the calendar years 2000 and 2001 and disclosed the Penn Warner Club memberships as gifts valued at $1,000.00 in each year; the actual value for these two years was $930.00 and $1,155.00 respectively. In applying Section 3(a)/1103(a) of the Ethics Act to the allegation concerning actions taken by Snyder as a Tullytown Borough Council member and LBCJMA Board member as to Snyder 03 -016 Page 9 Waste Management, Inc. from which he received guest memberships for the Penn Warner Club, we find no violation of Section 3(a)/1103(a) of the Ethics Act. As to Snyder's actions as a Tullytown Borough Council member, he participated in actions as to Waste Management, Inc. at the times when he was the recipient of guest memberships for the Penn Warner Club. Likewise, as to LBCJ MA, in one instance he voted to award a contract to Waste Management, Inc. Such vote at LBCJ MA for purposes of the Ethics Act was not undone by the subsequent "retracted vote]" and revote with Snyder's abstention. Thus, all such actions as to Tullytown Borough Council and LBCJ MA were uses of authority of office. See, Juliante, Order 809. However, in order to establish a violation of Section 3(a)/1103(a) of the Ethics Act, it is necessary to show that such uses of authority of office by Snyder resulted in a private pecuniary benefit to either himself, an immediate family member, or a business with which he or an immediate family member is associated. Since Snyder had no financial connection with Waste Management, Inc., it is clear that it is not a business with which he is associated. Hence, the question becomes whether Snyder's uses of authority of office as to matters involving Waste Management, Inc. resulted in private pecuniary benefits to himself. Although Snyder received private pecuniary benefits consisting of the gifts that he received as complimentary memberships in the Penn Warner Club, those financial gains did not occur as to his uses of authority of office regarding Waste Management, Inc. To the contrary, the record reflects that Snyder received the complimentary memberships for a number of reasons which did not relate to his uses of authority of office as to Waste Management, Inc.: his receipt of club memberships since 1973, his friendship with Frank Branagan who approved the complimentary memberships, and his inclusion in the group of government officials within Pennsylvania, New Jersey, Delaware and Maryland who received such memberships. There is not clear and convincing proof that Snyder's uses of authority of office as to Waste Management, Inc. matters resulted in private pecuniary benefits to him from Waste Management, Inc. Accordingly, Snyder did not violate Section 3(a)/1103(a ) of the Ethics Act as to his participation in matters before Tullytown Borough Council and LBCJ MA involving Waste Management, Inc. vis -a -vis his receipt of complimentary memberships in the Penn Warner Club from Waste Management, Inc., based upon a lack of clear and convincing proof. See, Reed, Order 896. Turning to the SFI matters, there is no allegation as to deficient filings. Due process requires that we do not depart from the allegations. Pennsy v. Department of State, 594 A.2d 845 (1991). Hence, we need not address issues of violations of the Ethics Act as to SFI's in that such are not part of the allegations. However, Snyder is directed within 30 days of the mailing of this order to file with Tullytown Borough amended SFI's listing the gifts of the Penn Warner Club membership together with its source, Waste Management, Inc., the address, the true amount of the gifts, that is, $960.00, $1,005.00, $930.00, and $1,155.00 for years 1998 through 2001 respectively, together with the circumstances of the gifts. Copies of the amended SFI's should be sent to this Commission for compliance verification purposes. Failure to comply with the foregoing will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Snyder, as a Tullytown Borough Councilman and Lower Bucks County Joint Municipal Authority Board Member, is a public official subject to the provisions of Act 9 of 1989 as codified by Act 93 of 1998. 2. Snyder did not violate Section 3(a)/1103(a) of the Ethics Act as to his participation in matters before Tullytown Borough Council and LBCJ MA involving Waste Management, Inc. vis -a -vis his receipt of complimentary memberships in the Penn Warner Club from Waste Management, Inc., based upon a lack of clear and convincing proof. In Re: Lloyd Snyder ORDER NO. 1309 File Docket: 03 -016 Date Decided: 12/17/03 Date Mailed: 12/29/03 1. Snyder, as a Tullytown Borough Councilman and Lower Bucks County Joint Municipal Authority Board Member did not violate Section 3(a)/1103(a) of the Ethics Act as to his Jarticipation in matters before Tullytown Borough Council and LBCJMA involving Naste Management, Inc. vis -a -vis his receipt of complimentary memberships in the Penn Warner Club from Waste Management, Inc., based upon a lack of clear and convincing proof. 2. Snyder is directed within 30 days of the mailing of this order to file with Tullytown Borough amended SFI's listing the gifts of the Penn Warner Club membership together with its source, Waste Management, Inc., the address, the true amount of the gifts, that is, $960.00, $1,005.00, $930.00, and $1,155.00 for years 1998 through 2001 respectively, together with the circumstances of the gifts. Copies of the amended SFI's should be sent to this Commission for compliance verification purposes. a. Failure to comply with the foregoing will result in the institution of an order enforcement action. BY THE COMMISSION, Louis W. Fryman, Chair