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HomeMy WebLinkAbout1360 MartzIn Re: Ronald Martz File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Daneen E. Reese Donald M. McCurdy Paul M. Henry Raquel K. Bergen 03 -023 Order No. 1360 2/28/05 3/14/05 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 investigation, the Investigative Division served upon Respondent written notice of the specific allegation(s). Upon completion of its investigation, 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 Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending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. Martz, 03 -023 Page 2 I. ALLEGATIONS: That Ronald Martz, a (public official /public employee) in his capacity as a Supervisor of Salem Township, Westmoreland County, violated Sections 1103(a) provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §1103(a) when he used the authority of his office for a private pecuniary gain, including but not limited to claiming and receiving compensation for attending meetings of the township which were held during his regular working hours as township roadmaster, and claiming and receiving compensation as township roadmaster for administrative duties related to his position as township supervisor; and when he used the authority of his public office and /or confidential information obtained from holding public office to solicit business for his private excavating company from individuals seeking sewer permits and who needed excavation type services in relation to these permits. II. FINDINGS: 1. Ronald Martz has served as a Supervisor for Salem Township, Westmoreland County, since January 2002. 2. Martz has served as the full -time roadmaster since 2002. a. The other members of the board of supervisors are appointed roadmaster and serve on an as- needed basis. 3. The Salem Township Auditors established compensation for the supervisors serving in employment positions with the township as follows: 2002 - $23.00 /hr — full time and part time 2003 - $22.00 /hr — full time and part time 2004 - $22.00 /hr — full time; $22.00 /hr + 12% — part time (in lieu of vacation, sick, and holiday pay) 4. At the April 18, 2002 meeting of the Board of Supervisors, the roadmaster job description was adopted to in part include the following: 1. Report to the Board of Supervisors any information that may be required by Board and by the Department of Transportation. 2. Do or direct all work necessary to carry out the responsibilities imposed by the Board of Supervisors with respect to the maintenance, repair, and construction of Township roads, such work to include but not be limited to, the following: a. Constructing and repairing, together with the supervision of the construction and repair of surface subsurface drainage systems to control water on roadways. b. Overseeing the actual construction of bridges which includes acquiring permits, estimating project costs, soliciting bids, consulting with the township engineer and arranging manpower. c. Directing and participating in, and supervising when necessary, snowplowing, cindering, and salting operations when weather conditions require. d. Make recommendations to township supervisors regarding Martz, 03 -023 Page 3 specifications for contracted road repair and construction work when necessary, make recommendations for the purchase or rental of equipment. e. Make recommendations to township supervisors regarding equipment and supply needs for road maintenance, and order supplies and equipment as may be necessary. f. Keep maintenance records, time worked logs, proposed weekly work schedules, usage reports for vehicles and materials, and other required reports and records. Interview and make recommendations on hiring of new road crew members. Train new employees, assign and evaluate their work, and recommend disciplinary actions if required. g. h. Assist in the preparation of the operating budget. Meet with the union committeeman to attempt to resolve grievances or disputes according to the grievance procedure outlined in the union contract. J. Perform related work as required, including but not limited to reviewing and approving invoices associated with expenditures of the road department; executing checks and paying invoices on behalf of the township for expenditures that have been approved, when necessary by the Board of Supervisors; reviewing plans, drawings and related materials associated with road projects; contacting and responding to calls of residents or other members of the public concerning road conditions and projects within the township. The following findings relate to Martz's solicitation of work for his private business while at the township office and while being paid as a roadmaster 5. Martz operates Martz Construction, a general contracting and excavating business from his home. a. Equipment owned includes: three high lifts; two backhoes; a dump truck; and a lowboy trailer. b. Martz is knowledgeable in septic system design and installation. 6. In 2002, Benedict and Jeanne DeMaria intended to develop property they owned in Salem Township for the purpose of building a home. 7 On April 4, 2002, Jeanne DeMaria visited the township building to obtain information regarding the township requirements for developing property. 8. On her initial visit to the township office, Jeanne DeMaria was provided with information regarding septic and building permit applications as well as general information. a. DeMaria was provided with information by secretary /treasurer Toni Ritchey. b. DeMaria was told that the initial step would be to apply for a sewage permit. Martz, 03 -023 Page 4 c. Ritchey provided her with a list of phone numbers, which included that of Sewage Enforcement Officer James Michny. 9. During the initial DeMaria visit, she met Martz who introduced himself and stated that he would be able to answer her questions and that he was capable of helping with site preparation. 10. The DeMaria's did not know anyone else in the area who did excavation and septic system work. 11. Benedict DeMaria contacted Martz on or about April 6, 2002, and advised Martz they wanted to pursue their intent to development of their property. a. Martz met the DeMaria's at their property to discuss the best location to install the septic system; give advice on where to install the driveway; and provide general advice about the property. b. Martz provided the DeMaria's with information on various types of septic systems during the initial consultation with him. c. Benedict DeMaria paid Martz $50.00 in cash for Martz's time and advice. 12. During the meeting on or about April 6, 2002, Martz informed the DeMaria's that they needed to have a soil test performed. 13. The DeMaria's agreed to pay Martz $250 to conduct the soil test. 14. On or about April 29, 2002, Jeanne DeMaria completed a Salem Township Application For An On -Lot Sewage Disposal System Permit. 15. Sometime between April 29, 2002 and May 21, 2002, Martz performed the soil test on the DeMaria's property to locate a place suitable for the septic system. 16. On or about August 3, 2002, Martz met with DeMaria to discuss additional work that was needed on their property. a. Upon agreeing to a date and time for the meeting, Martz advised DeMaria that he was owed an additional four hundred dollars ($400.00) for a percolation test. 17. Martz provided the DeMaria's with a written estimate for the work discussed at the August 3, 2002 meeting. a. The estimate, in the amount of $33,000.00, included the following: 1. Exv. of diversion along driveway up to gate 2. Exv. of bank to change grade of driveway Est. appox. $3300.00 3. Ditch for elect & ph & extra line & backfill Exv & labor Est. appox 5500.00 pipe material not in Est. your price on pvc. was much better then I can get 4. Storm watercross over pipe Martz, 03 -023 Page 5 18. The DeMaria's had not made a decision about which system to install prior to being informed that the property had passed the perk test. a. Although no decision had been made about who would design or install the system, Martz was in consideration. 19. For various reasons, the DeMaria's postponed the development of their property until February /March 2003. 20. In February /March 2003, the DeMaria's contracted with Wayne Homes to build a house on their property. a. Wayne Homes recommended an excavator by the name of Merle Harr, owner of Devil Dog Excavating. b. The DeMaria's purchased a design for a sand mound septic system from Merle Harr. 21. On March 19, 2003, the DeMaria's met with a representative from Madison Engineering & Surveying, Inc. to submit the necessary paperwork as the next step in their application for a septic system permit. a. b. #3 needed Mach time labor & mat. Est. appox. 4200.00 5. Septic At Grade Echo Flow Bed size double Est. appox. 20,000.00 Est 33,000.00" Madison Engineering had prepared the Sewage Facilities Planning Module which the DeMaria's signed on 3/18/03. Salem Township SEO Jim Michny signed the Planning Module on 3/21/03. 1. Supervisor Anders Johnson's signature on the Planning Module is undated. 22. On March 19, 2003, Martz reviewed the septic system design the DeMaria's had prepared by Merle Harr, and advised that the design would not work and that the SEO would not approve the design. a. Martz advised the DeMaria's that he designed septic systems. b. Martz's review of the design plan and discussion with the DeMaria's took place during their visit to the township office on 3/19/03. 23. The DeMaria's chose to have their septic system design prepared by Ronald Andrasko based on the recommendation they received from Madison Engineering. 24. On June 11, 2003, Salem Township SEO David Jobe issued Permit #1 -03 for Installation of Sewage Disposal System, to the DeMaria's. a. By way of letter dated 6/3/03, the Department of Environmental Protection advised that the Salem Township SEO was authorized to issue permits in regard to the DeMaria's Planning Module. Martz, 03 -023 Page 6 25. In or about March 2003 the DeMaria's were addressing the issue of installing various utility services to their property, including electric, telephone and cable. a. Martz provided Benedict DeMaria with an estimate of $4,900.00 for underground installation of the utilities. 26. DeMaria attended the May 22, 2003 regular monthly meeting of the board of supervisors, to obtain information relating to the specifications for burying utility lines along a township road. a. As a result of the discussion, the board agreed to allow the underground line installation in accordance with the utility company requirements: 2" of sand above and below the conduit, refill with dirt (material excavated from the ditch), 12" of shale, compaction. 1. Supervisor Johnson specified that the use of shale rock was contingent upon its acceptability. 2. Johnson had suggested the use of shale as a less expensive option to sand and stone. b. The board approved the Road Occupancy Permit for Alltel in relation to the DeMaria's installation of underground utilities. 27. After the May 22, 2003 meeting, DeMaria contacted Martz to discuss Martz's estimate for installing the underground utilities and whether it could be reduced by using shale instead of sand and /or stone. a. DeMaria was considering utilizing Martz to do the work due to Martz's familiarity with roads and what was typical for the area. b. Martz advised DeMaria that his estimate increased based on the discussion at the 5/22/03 meeting. c. DeMaria determined not to utilize Martz. 28. Martz, as township roadmaster, performed an inspection of the work during the installation and required Harr to place stone on the section of road along which the utility lines were buried resulting in an additional $600.00 in cost to the DeMaria's. The following Findings relate to Martz's receipt of roadmaster pay for performing duties related to his position as a supervisor. 29. As the full time roadmaster, Martz is responsible for maintaining the road crew time records. a. Martz completes two different forms of time records which include work schedules and time sheets. 1. The Salem Township Road Manager and Crew Work Schedules provide descriptions of the work performed on a daily basis. 2. The Time Sheets reflect the number of hours worked by each employee, as well as any leave used. 30. The Salem Township Road Crew work hours are Monday through Friday 6:30 a.m. to 2:30 p.m. Meeting Date Meeting Time Hours Martz Claimed Type of Mtg. Hours/ Rate Total 03 -08 -02 9:00 -9:24 a.m. 8.0 Special .5 hr./ $23.00 $ 11.50 09 -11 -02 7:37 -7:40 a.m. 8.0 Special .25 hr./ $23.00 $ 5.75 01 -06 -03 9:00 -10:45 a.m. 8.0 +5.50.T. Organizational 1.75 hr./ $23.00 $ 40.25 01 -05 -04 9:00 -10:00 a.m. 7.5 + .5 O.T. Organizational .5 hr/ $22.00 $ 11.00 TOTAL 3.5 Hours $ 68.50 Martz, 03 -023 Page 7 a. The employees are paid for eight hours, with no designated lunch period. b. Lunch is eaten on the road. c. Martz generally worked the same hours as the road crew, with no designated lunch period. 31. Martz began receiving compensation as a roadmaster beginning in February 2002. a. Martz received no wages during the month of January 2002. 32. Between March 2002 and February 2004 Martz was compensated as roadmaster for attending meetings related to his position as township roadmaster [sic]. a. Township solicitor invoices document meetings Martz attended. b. The township Sign -In Sheets document dates and names of individuals visiting the township office for various meetings. c. The Road Manager and Crew Work Schedules reference meetings Martz attended. d. The minutes of the board of supervisor's meetings list the dates of various meetings held and those who attended. 33. Martz has been compensated as township roadmaster for the following meetings related to his position as township supervisor. - meetings with the solicitor - township meetings, special meetings, reorganization meetings - union negotiations, meetings with the solicitor - pension plan meetings - applicant interviews 34. The Salem Township Board of Supervisors conducted four Special Meetings and /or Reorganization Meetings during the same hours that Martz was being compensated as a roadmaster. a. Martz claimed his hourly rate as roadmaster for attending these meetings. b. These meetings were not related to Martz's position as roadmaster. 35. Martz was compensated as a roadmaster for attending reorganization and special meetings of the board of supervisors, as listed below *: DATE DESCRIPTION HOURS DAILY HOURS 03/01/02 Attend meeting at Dept of Agriculture with UTMA, HTMA, Dept of Agriculture Reps, DEP Reps and Supervisors 1.5 8.0 03/08/02 Conf w/ Supervisors re: looking at Pension Agreements 1.0 8.0 03/28/02 Conference with R Martz and Jon Cochran re: potential encroachment and easement 1.0 8.0 Meeting with Supervisors and UAW Reps re: Tony 05/17/02 Moonis retirement; meeting with Supervisors re: Wolf 2.5 8.0 Lake Rd and Salandro matters (8:30 a.m.) 05/10/02 TC with R Martz re: sewage matters, People's Dominion, Massage Ordinance, T Mooni's retirement 0.4 8.0 05/03/02 Conference re: subdivision procedures within Salem Twp, Climax and Beehive inspections and Harr matter 1.3 8.0 06/21/02 Conference with Supervisors, Joyce Summers and Don Pepe re: Wal -Mart and related matters 1.5 8.0 TCs w /Ritchey /Martz re: T Moonis, Exec Sessions, Hult 8 + 1.5- 06/17/02 Resolution, Ofc Policies, E &O coverage for Code Enforcement Ofcr /SED, Massage Ord Compliance 0.5 O.T. Conf w /Supervisors, B Comisak & M Danillo re: M Harr 06/13/02 and D Washington grievances /insurance grievances 3.0 8.0 (10:00 a.m.); mtg w /Supers and T Ritchey re: ofc policy Meeting with Supervisors re: Tom Clip issues; 0.5 06/27/02 Meeting with E Gieselman and R Martz re: Answer and 8.0 New Matter (2:00 p.m.-2:30 p.m.) 0.5 Review proposed Answer and New Matter with 0.3 06/25/02 Supervisors Johnson and Martz; 8.0 Conference with Johnson and Martz reviewing Answers 1.5 Martz, 03 -023 Page 8 a. Martz deducted .5 hours from his regular 8 -hour day on 1/5/04 to compensate for his attendance at the Organizational Meeting. 1. The duration of the meeting was 1.0 hour. 2. The .5 hours used in the above calculation reflects the difference between the 1.0 hour meeting and the .5 hours deducted from his time on 1/5/04. 36. Martz attended meetings with township Solicitor Gary Falatovich which were related to his position as a supervisor for which he claimed compensation as a roadmaster. a. Meetings are documented on invoices Solicitor Falatovich submitted to the township. b. Falatovich submits invoices to the township for his legal services on a monthly basis. c. The invoices reflect the date the service was performed, a description of the service and the amount of time. d. The purposes of the meetings were unrelated to Martz's position as roadmaster and included such subjects as easements, subdivisions, grievances, lawsuits, union negotiations and other non -road related matters. 37. Martz was compensated as township roadmaster for attending meetings with the township solicitor as enumerated below *: DATE DESCRIPTION HOURS DAILY HOURS to Interrogatories 07/12/02 Conf w /Supervisors re: Ord.41 Amendments; revise Amendments; TC w /Ritchey re: ad; email to Ritchey & Gieselman re: same 2.0 8.0 07/17/02 Conf w /Supervisors Johnson and Martz re: Auditor's Litigation, draft Ans. And New Matter 2.0 8.0 07/02/02 Conf w /Supervisors Johnson and Martz 1.0 8.0 07/17/02 Conf w /Supervisors reviewing revises application and Linkosky Ltr 1.5 8.0 07/12/02 Conf w /Supervisors, TC w /T. Clipp, Memo to Clipp & Linkosky re: info to be submitted for renewal; emails to Ritchey & Gieselman re: same 4.0 8.0 07/11/02 TC w /R. Martz & T. Clipp re meeting on Beehive 0.2 8.0 08/15/02 Conf w /Supervisors RE: Ordinance 41(Massage Parlors- 8:00 a.m.) 0.5 8.0 08/27/02 Meeting w /A. Johnson & R. Martz; Attend Collective Bargaining Session (7:00 a.m.) 5.5 8.0 08/06/02 Conf. w /A. Johnson & R. Martz; Attend Collective Bargaining Session (7:00 a.m. - 10:00 a.m.) 3.0 8.0 08/02/02 Attend meeting with Supervisors re positions on Collective Bargaining with UAW (8:30 a.m.) 2.0 8.0 08/26/02 T /C's w /R. Martz, T. Ritchey & A. Johnson re: Wal -mart, new massage business application and collective bargaining session respectively 0.4 8.0 08/08/02 Conf w/ R. Martz; view Steiner property 1.0 8.0 08/05/02 Conf with Murrysville team and Supervisors re Wal -Mart issues (9:00 a.m. - 11:00 a.m.) 2.0 8.0 08/20/02 Conf w /Supervisors Martz & Johnson to review Answer, New Matter and Affirmative defenses ; Email to E. Gieselman re Ridilla resignation; Conf w /Supervisors Johnson & Martz re same 1.3 0.7 8.0 09/13/02 Conf w /R. Martz; Attend collective Bargaining Session 5.0 8.0 09/30/02 TC w /T. Ritchey re Ad for Ag Sec Area appointees; TC w /R. Martz re comp time 0.3 8.0 09/19/02 TCs w /Ritchey, Martz & DeFrances re agenda, ag security cmte, St. Aid for pension & Surface water discharge Agmnt 0.5 8.0 09/28/02 Conf w/ J. McDada, T. Ritchey, R. Martz and Anders Johnson re response to Merle's Complaint 2.5 8.0 10/18/02 TC w /M. Daniello re joint exhibits; conf w /Supervisors Johnson and Martz to prepare for hearing; Conf w /Supervisors Johnson and Martz re Ag Security Zone, Tilford and Kerns Subdivisions 2.3 1.0 8.0 10/15/02 Attend meeting w /Supervisors Johnson & Martz & T. Ritchey to prep for Bargaining session (1:30 p.m.) 1.0 8.0 11/22/02 TCs w /J. Naylor, T. Ritchey and Supervisors Johnson & Martz re Iapalucci insurance coverage; email to E. Gieselman re same 1.1 8.0 11/13/02 Conference w /Supervisors and T. Ritchey; attend Collective Bargaining Session (8:30 a.m.) 6.0 8.0 11/18/02 Meeting w /Supervisors and representatives of PNC re 2.5 8.0 Martz, 03 -023 Page 9 DATE DESCRIPTION HOURS DAILY HOURS budget, lease options and TAN for 2003 Budget year 0.6 12/30/02 Attend meeting w /supervisors and N. Frantangelo re changing Climax hours of operation 1.0 8.0 12/11/02 Conf w /supervisors (8:30 a.m.); attend collective bargaining session (9:00 a.m. -11:30 a.m.) 3.0 8.0 2002 TOTAL: 62.8 hours @ $23.00 /hr. = $1,444.40 0.5 01/24/03 Conference w /R. Martz re sewage permits, etc. 1.0 8.0 + 1.5 -O.T. 01/15/03 TCs w /R. Martz & T. Ritchey re building permits 0.3 8.0 01/14/03 TC w /R. Martz & A. Johnson re Murrysville, Wal -Mart, Townhall & Holiday Inn Express 0.4 8.0 + 1.0 -O.T. 02/07/03 Conf w /R. Martz & T. Ritchey re BOCA Ord & 10 acre exemptions; Conf w /R. Martz & B. Comisak re insurance reimbursements 1.5 8.0 + 2.5 -O.T. Conf. w /supervisors re Cortina - Lamplighter case and calculation of tap in fees; 0.6 Conf w /supervisors re subdivisions (9:00 a.m.); Piasecky Permit & Ag Security Area 3.5 03/17/03 recordings; 8.0 Review renewal application and related docs; Conf w /supervisors re same; 0.5 Conf w /supervisors re new UAW language; TC w /P. Watkins re same 0.6 03/31/03 Conference w /supervisors, Ritchey, DeFrances and representatives of DeLisi's office re Audit 1.3 8.0 03/28/03 Conference w /supervisors re Piasecky Permit and execution of UAW Agreement 1.5 8.0 03/20/03 TC w /R. Ritchey, R Martz and B. Whitling re Walmart subdivision 0.3 8.0 03/10/03 TC w /R. Martz re Ag Security Areas 0.1 8.0 04/28/03 TC w /Supervisor's Johnson & Martz re dissolution; TC w /Supervisors Johnson & Martz re Massimo 0.3 0.1 8.0 05/20/03 Complete review of Brucker materials; review regs; conf w /R. Martz and D. Regola (7:30 a.m.) 3.50 8.0 05/30/03 Conf w /RM re Hohman Subdvsn, Mack purchase & Delmont Intermunicipal Agmnt (7:30 a.m.) 0.7 8.0 05/21/03 Meeting w /R. Martz re subdivision requests and agenda; travel t/f same (7:30 a.m.) 1.5 8.0 05/01/03 Attend executive session on STMA issues 0.8 8.0 06/25/03 Conf w /supervisors re Bamboo license; review and reply to EG emails 0.7 8.0 Attend meeting w /supervisors re Beehive /Bamboo 06/16/03 licenses (7:30 a.m.); St Police (9:00 a.m.) VFD matters and Tap In Fees; travel t /f. 3.7 8.0 Conf w /R. Martz & TR re subdivisions, 10 acre 07/15/03 exemptions, side lot additions; Totter Ridge & bike trail; travel t/f (7:30 a.m.) 2.0 8.0 Conf. w /R. Martz re: snow removal agrmt Delmont 10/23/03 Rd /Sewer lines, conf. w /RM & EG re WLR Appeal, conf. w. AJ & RM re: STMA records (7:45 a.m.- 9:30 a.m.); TC w. TR re: same 2.0 8.0 10/09/03 Conf w /RM & TR re Subdivision Charges, Vaia Liens & water sewage extensions 3.5 8.0 Martz, 03 -023 Page 10 DATE DESCRIPTION HOURS DAILY HOURS 12/16/03 TC's w /RM, AJ & TR re: Peasecky /McCalmont DEP Permit; Delmont matters & agenda 0.8 8.0 01/27/04 Conf. w/ Supervisors & D. Regola re: Implementation of Storm Water Mgmt Ord. and UCC & UAW concerns (8:10 a.m. -10:15 a.m.) 2.0 8.0 + 7.0- O.T. 02/19/04 Conf. to discuss Salvatore Lti., Ord. 41 Enforcement, Strm. Wtr. Mgt. Fee resolution and hiring travel T/F 1.5 8.0 02/12/04 TC's w /TR, AJ, RM & BZ re: Comments on Storm water management Ord. Protecting Twp. Email and Ord 41 0.6 8.0 2003/2004 TOTAL: 35.3 Hours @ $22.00 /hr. = $ 776.60 Martz, 03 -023 Page 11 38. Between May 20, 2002, and February 11, 2003, Martz participated in miscellaneous meetings related to his position as a supervisor for which he was compensated as a roadmaster. a. The meetings took place between 6:30 a.m. and 2:30 p.m., Martz's regular working hours as township roadmaster. 39. Miscellaneous meetings attended by Martz which he claimed roadmaster compensation include the following: Meeting Meeting Date Time 05 -20 -02 1:00 - 1:20 .5 05 -30 -02 08 -15 -02 09 -17 -02 09 -19 -02 09 -24 -02 10 -10 -02 10 -16 -02 10 -21 -02 Sub -Total 02 -11 -03 12 -05 -03 12 -05 -03 Sub -Total 10:00 - 2:00 .75 2:00 - 2:30 9:00 - 11:00 9:00 - 11:30 7:30 - 8:15 8:30 - 10:00 8:30 - 12:00 10:00 - 10:30 7:30 - 8:00 8:30 - 9:25 9:25 - 10:15 Length of Meeting .5 2.5 2.5 .75 1.5 3.5 .5 13.0 hrs. 5 1.0 75 2.25 hrs. Reason for Meeting Meeting with PNC Bank, auditor summary; various administrative issues. Meeting w /ins. Co. Attorney Charles Saul RE: Washington PHRC complaint -4.0 hrs. total (individual depositions w /Martz, Gieselman, Ritchey, DeFrances, Johnson). Meeting RE: pension w /Mockenhaupt Computer demonstration Meeting RE: subdivision w /Jim McQuaide RE: Dismissal of Kim Strittmatter Meeting w /member of twp. Rec. board, Perry Miller. Union contract negotiations at twp. office (Falatovich not present). Meeting RE: Harr grievance. @ $23.00 /HR = $299.00 Executive Session RE: BOCA Meeting RE: sewage loan refinancing Meeting RE: sewage lines @ $22.00/HR = $ 49.50 40. On five occasions between October 1, 2002, and February 5, 2003, Martz attended meetings relating to union contract negotiations, grievances and arbitrations, which occurred between 6:30 a.m. and 2:30 p.m., his regular hours as roadmaster.* MEETING DATE TIME HOURS /RATE DESCRIPTION 03/12/02 11:00 a.m. 1.5 @ $23.0 /hr. Pension meeting with Mike Finnell 06/18/02 8:00 a.m. 1.5 $23. 0 /hr. Pension investments w /Mike Finnell 09/25/02 10:45 -12:30 1.75 (a, $23.00 /hr. Meeting with pension advisor 10/15/03 10:15 a.m. 1.5 $22. 0 /hr. Pension meeting Total $142.25 Martz, 03 -023 Page 12 10/01/02 9:00 -12:00 noon 10/10/02 8:30 -10:00 a.m. 10:00 -12:30 p.m. 10/16/02 8:30 -12:00 noon 11/26/02 1:00 -2:30 p.m. 02/05/03 1 Hour TOTAL 13.5 Hours UAW representatives & solicitor regarding Washington arbitration hearing Meet w /solicitor RE: Washington arbitration. Washington arbitration. Contract negotiations Union meeting Mtg. w /solicitor, discuss grievance RE: Insurance payments 3.0 hrs.@ $23.00 /hr. 4.0 hrs. @ $23.00 /hr. 4.0 hrs. @ $23.00 /hr. 1.5 hrs. @ $23.00 /hr. 1.0 hrs. @ $22.00 /hr. 41. Martz participated in meetings with Michael Finnell of HHM Financial Services, relating to the township employee pension program. a. Meetings occurred at the township office with the exception of a luncheon meeting on January 24, 2003. b. The meetings occurred during Martz's work hours as roadmaster. c. Martz claimed roadmaster pay for attending these meetings. 42. On February 19, 2004, Martz participated in interviews of applicants for the township secretary position. a. The interviews were conducted between the hours of 6:30 a.m. -2:30 p.m. b. The interviews were conducted subsequent to the resignation of Toni Ritchey and Arlene DeFrances. c. Martz claimed compensated [sic] as a roadmaster for the two hours he participated in the interviews, totaling $44.00 (2 hours @ $22.00 /hr.). 1. Interviews, which lasted approximately one hour each, were held at 7:30 a.m. and 9:30 a.m. d. Martz submitted for eight (8) hours worked as a roadmaster on February 19, 2004. Martz, 03 -023 Page 13 43. Salem Township's payroll is issued twice a month on the 15 and last day of the month. a. Payroll checks require three signatures including two supervisors and the secretary /treasurer b. Between January 2002 and December 2003, Supervisor Edward Gieselman did not sign checks from any township accounts, resulting in all payroll checks being signed by Ronald Martz, Supervisor Anders Johnson and Toni Ritchey, Secretary /Treasurer. 44. Martz participated in board actions to approve expenditures, which included the payroll fund, at the board of supervisors regular monthly meetings. a. Martz was present at all regular meetings beginning 1/17/02 through 1/15/04. b. Martz made or seconded the motions to pay bills at meetings held from 2/21/02 through 1/15/04. c. Martz cast the deciding vote to approve payment of the bills at each regular meeting held from 2/21/02 through 1/15/04. 45. Martz received a total of $2,923.25 when he claimed compensation for 132.05 hours as a roadmaster for performing duties and attending meetings that related to his position as a supervisor, and subsequently participated in actions approving payments to him. * Board of Supervisor's Meetings 3.5 hours $ 68.50 Meetings with the solicitor 106.8 hours 2,359.00 Union related meetings 13.5 hours 309.50 Pension related meetings 6.25 hours 142.25 Interviews of secretarial candidates 2.0 hours 44.00 TOTAL: 132.05 hours $ 2,923.25 *It is noted that although the calculations in the Stipulated Findings may include minor errors, the parties have stipulated to them as stated. III. DISCUSSION: Respondent, Ronald Martz, (also referred to herein as "Respondent" or "Martz "), has at all times relevant to these proceedings been a public official subject to the provisions of the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1101 et seq., which Act is referred to herein as the "Ethics Act." The allegations are that Martz, as a Supervisor of Salem Township, Westmoreland County, violated Section 1103(a) of the Ethics Act when he: (1) claimed and received compensation for attending meetings of the township which were held during his regular working hours as township roadmaster; (2) claimed and received compensation as township roadmaster for administrative duties related to his position as township supervisor; and (3) solicited business for his private excavating company from individuals seeking sewer permits and who needed excavation type services in relation to these permits. 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. Martz, 03 -023 Page 14 § 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). The term "conflict of interest" is defined in the Ethics Act as follows: 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 office 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. Since 2002, Martz has served as a Supervisor for Salem Township ( "Township ") and the Township's full -time Roadmaster. As a roadmaster, Martz is generally responsible for reporting to the Board of Supervisors ( "Board ") any information that may be required by the Board and the Pennsylvania Department of Transportation, and performing or directing all work necessary to carry out the responsibilities imposed by the Board with respect to the maintenance, repair, and construction of Township roads (see, Finding 4). As the Township's full -time Roadmaster, Martz is specifically responsible for maintaining the road crew time records, which entails completing Township Road Manager and Crew Work Schedules and Employee Time Sheets. The Township Road Crew working hours are Monday through Friday, 6:30 a.m. to 2:30 p.m., with no designated lunch period. As a roadmaster, Martz generally worked the same hours as the road crew. Compensation for working supervisors was set by the Township Auditors as follows: $23 /hour for full and part -time workers for calendar year 2002; $22 /hour for full and part - time workers for calendar year 2003; and $22 /hour for full time workers, and $22 /hour plus Martz, 03 -023 Page 15 12% for part -time workers in lieu of vacation, sick and holiday pay for calendar year 2004 (see, Finding 3). Between March 2002, and February 2004, Martz claimed compensation as a roadmaster for attending meetings related to his position as Township Supervisor. Specifically, Martz claimed his hourly rate as a roadmaster for attending township meetings, special meetings and reorganization meetings; meetings with the Township Solicitor to discuss easements, subdivisions, grievances, lawsuits, and other non -road related matters; meetings relating to union contract negotiations, grievances and arbitrations; meetings to discuss the township employee pension program; meetings to interview applicants for the township secretary position; and other miscellaneous meetings related to his position as a Township Supervisor. The meetings that Martz attended took place between 6:30 a.m. and 2:30 p.m. during Martz's regular working hours as a roadmaster (see, Findings 29 — 42). Martz claimed compensation for 132.05 hours as a roadmaster for performing duties and attending meetings related to his position as a Township Supervisor (see, Finding 45). The Township's payroll is issued on the 15 day and the last day of each month. Payroll checks require three signatures including two supervisors and the Secretary/ Treasurer. Between January 2002 and December 2003, all payroll checks were signed by Martz, another supervisor, and the Township Secretary /Treasurer. From January 2002 through January 2004, Martz attended all of the Township's regular meetings and participated at those meetings in approving the Township's bills, which included the Township's payroll. Martz's participation consisted of making or seconding motions to pay the bills, or voting to approve the payment of the bills. As a result of Martz's participation, he received compensation in the amount of $2,923.25 for 132.05 hours that he claimed as a roadmaster for performing supervisory duties. In his private capacity, Martz operates Martz Construction, a general contracting and excavating business. In connection with his private business, Martz is knowledgeable in septic system design and installation. In 2002, Benedict and Jeanne DeMaria (the "DeMarias ") were planning to build a home on property they owned in the Township. In April of that year, Mrs. DeMaria visited the Township building to inquire what the Township's requirements were for developing their property. The Township Secretary /Treasurer advised Mrs. DeMaria that the initial step would be to apply for a sewage permit. The Secretary /Treasurer then provided Mrs. DeMaria with a list of telephone numbers including that of the Sewage Enforcement Officer ( "SEO "). During Mrs. DeMarias initial visit, Martz introduced himself and advised Mrs. DeMaria that he would be able to answer her questions and help with site preparation. Not knowing anyone else in the area who did excavation and septic system work, Mr. DeMaria contacted Martz and advised Martz that he and his wife wished to pursue development of their property. On or about April 6, 2002, Martz met the DeMarias at their property and provided them with general advice about the property, including the best location to install the septic system, the various types of septic systems, and where to install the driveway. Martz also informed the DeMarias that a soil test would need to be performed on their property. The DeMarias paid Martz $50 cash for his time and advice. The DeMarias also agreed to pay Martz $250 to conduct the soil test. Martz, 03 -023 Page 16 On or about April 29, 2002, Mrs. DeMaria completed an application with the Township for an on -lot sewage disposal system permit. Shortly thereafter, Martz performed the soil test on the DeMarias' property to locate a suitable location for the septic system. Martz and the DeMarias agreed to set up a meeting for August 3, 2002, to discuss additional work that was needed to develop their property. Upon settling upon a date and time for the meeting, Martz advised the DeMarias that they owed him an additional $400 for a percolation test. Following the August 3 meeting, Martz provided the DeMarias with a written estimate in the amount of $33,000, which estimate included excavation and septic system work (see, Finding 17). In February or March 2003, the DeMarias contracted with Wayne Homes to build a house on their property. Wayne Homes recommended Merle Harr, owner of Devil Dog Excavating, to perform the excavation work. The DeMarias then purchased a design for a sand mound septic system from Mr. Harr. On March 18, 2003, the DeMarias signed a Sewage Facilities Planning Module ( "Planning Module ") prepared by Madison Engineering & Surveying, Inc. ( "Madison Engineering "). The Planning Module was then signed by the Township SEO and Supervisor Anders Johnson. On March 19, 2003, Martz reviewed the septic system design prepared by Merle Harr and advised the DeMarias that the design as submitted would not work and would not be approved by the Township SEO. Martz then advised the DeMarias that he designed septic systems. However, upon the recommendation of Madison Engineering, the DeMarias asked Ronald Andrasko to design their septic system. The DeMarias were later issued a permit for the installation of a sewage disposal system on their property. In or around that same time period, the DeMarias were addressing the matter of installing underground utility service to the property, including electric, telephone and cable, and were considering using Martz to install the utilities because of Martz's familiarity with roads. Martz provided Mr. DeMaria with an estimate in the amount of $4,900 for the installation of underground utilities. On May 22, 2003, Mr. or Mrs. DeMaria attended the regular monthly meeting of the Board of Supervisors to obtain information with regard to specifications for burying utility lines along a Township road. Following a discussion, the Board agreed to permit installation of underground utility line(s) in accordance with the utility company's requirements, specifically, using 2 inches of sand above and below the conduit, and refilling with dirt, and 12 inches of shale, compaction (see, Finding 26). Supervisor Anders Johnson suggested the use of shale as a less expensive option to sand and stone. The Board then approved the Road Occupancy Permit for Alltel for the installation of underground utilities at the DeMaria property. Following the meeting, Mr. or Mrs. DeMaria contacted Martz to discuss Martz's original $4,900 estimate for the installation of the underground utilities, and to inquire whether the estimate could be reduced if shale would be used as fill instead of sand or stone. Martz advised that based upon the discussion at the May 22 Board meeting, his original estimate would increase, after which the DeMarias decided not to utilize Martz. During the installation of the utilities at the DeMaria property, Martz in his capacity as a Roadmaster performed an inspection of the work and required the placement of stone on the section of road where the utility lines were buried. As a result of Martz's requirement to use stone, the DeMarias' costs increased by an additional $600. Martz, 03 -023 Page 17 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, as follows: "3. The Investigative Division will recommend the following in relation to the above allegations: a. That an unintentional violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. § 1103(a) occurred in relation to Martz claiming and receiving compensation for attending meetings of the township which were held during his regular working hours as township roadmaster, and for receiving compensation as township roadmaster for duties related to his position as an elected township supervisor. b. That no violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. § 1103(a) occurred relating to the allegation that Martz solicited business for his private excavating company from individuals seeking township permits who needed excavation services in relation to these permits. 4. Martz agrees to make payment in the amount of $1,000.00 in settlement of this matter payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter and to file amended Statements of Financial Interests. 5. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no specific recommendation to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the Commission from initiating appropriate enforcement actions in the event of Respondent's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to review this matter further." Consent Agreement, paragraphs 3 -5. In considering paragraph 3(a) of the Consent Agreement quoted above, there is a fundamental distinction between a Township Supervisor as an elected public official and as a paid Township employee. The compensation that a Supervisor as an elected official receives is limited by the Second Class Township Code ( "Code "). Any legislative or administrative duties are encompassed within the duties of elected Supervisor for which the Supervisor may not receive any additional compensation beyond that authorized in the Code. As a working Township employee, the Supervisor may be compensated at the hourly rate or salary set by the Auditors for performing duties that are employee related. See, VanWhy, Order 1295; Hardinger, Order 1232; Cours, Order 1150; Yetsconish, Order 1046. In applying Section 1103(a) to the above, we find that Martz used the authority of his public office as a Township Supervisor by: (1) claiming 132.05 hours as a Roadmaster for attending meetings related to his position as a Township Supervisor; (2) signing his own paychecks; and (3) participating in the approval of Township expenditures, including the Township payroll. But for his position as a Township Supervisor, Martz would not have been able to take such actions, which resulted in a private pecuniary benefit to Martz, Martz, 03 -023 Page 18 consisting of unauthorized employee compensation in the amount of $2,923.25 for performing functions related to his elected position as Township Supervisor. Intent is not a requisite element for a violation of Section 1103(a) of the Ethics Act. See, e.q., Yocabet v. State Ethics Commission, 531 A.2d 536 (Pa. Commw. 1987). Nevertheless, based upon the Stipulated Findings and Consent Agreement, it would appear that the aforesaid violation was unintentional. Therefore, we agree with the parties that an unintentional violation of Section 1103(a) of the Ethics Act occurred when Respondent Martz claimed and received compensation for attending meetings of the Township which were held during his regular working hours as Township Roadmaster, and when he received compensation as Township Roadmaster for duties related to his position as an elected Township Supervisor. Our decision follows the ruling of Commonwealth Court which noted in R.H. and T.W. v. State Ethics Commission, 673 A.2d 1004 (Pa. Commw. 1996): T.W. maintains that he is entitled to hourly wages for performing these [administrative] duties. He notes that the recent growth of the Township led to a substantial increase in demands upon the Township government and that the Supervisors have assumed responsibility for meeting much of this burden. With this argument, T.W. implies that, because the rise in activity forced him to work in excess of the stated duties of Township Supervisors, he was properly compensated for such actions with an hourly wage. We sympathize with T.W.; however, there is no question that the duties at issue were supervisory in nature. The supervisory salary was statutorily set and encompassed all of the ensuing administrative functions. Thus, T.W. violated the 1978 Act when, in addition to his Supervisor's compensation, he received hourly wages as an employee for performing administrative duties. Id. at 1011. In considering paragraph 3(b) of the Consent Agreement quoted above, based upon the stipulated findings as they have been presented to us, we find that Martz used the authority of his public office to solicit business for his private excavating company from the DeMarias who, at that time, were seeking permits /approval from the Township relative to the construction of a home on their property. The stipulated findings reflect that as a result of such solicitation, Martz was able to secure a meeting with the DeMarias at which Martz provided general advice about developing their property, and for which he received $50. The stipulated findings further reflect that the DeMarias agreed to pay Martz $250 to conduct a soil test, and that Martz did in fact conduct the soil test. Based upon these findings, we believe there is a strong inference that Martz also received $250 from the DeMarias for conducting the soil test on their property. Although Martz advised the DeMarias that he was owed an additional $400 for a percolation test, the stipulated findings do not indicate whether Martz actually conducted the test or received payment for the test. Therefore, based upon the Stipulated Findings, the total private pecuniary benefit that has been established is $300 from the DeMarias ($50 for Martz's meeting with the DeMarias, and $250 for the soil test). Ordinarily the use of the authority of public office to solicit private business opportunities constitutes a conflict of interest prohibited by Section 1103(a) of the Ethics Act. See e.q., Metrick, Order 1037; Cook, Order 1203. We emphasize this point so that Martz, 03 -023 Page 19 there is no misunderstanding that this Commission in any way condones Martz's inappropriate conduct. Nevertheless, based upon recent case law addressing the de minimis exception to the definition of "conflict" or "conflict of interest," we must conclude that the private pecuniary benefit received by Respondent in this case, specifically $300, was de minimis. See, Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Commw. 2004). Because we determine that the private pecuniary benefit Martz received was de minimis, we shall accept the parties' recommendation that Martz did not violate Section 1103(a) of the Ethics Act when he solicited business for his private excavating company from individuals seeking township permits who needed excavation services in relation to these permits. Finally, we note differences between the allegations, stipulated findings, and recommendations of the Consent Agreement with respect to Statements of Financial Interests. The allegations and stipulated findings make no mention of Respondent's Statements of Financial Interests. The recommendations of the Consent Agreement include a requirement that Respondent file amended Statements of Financial Interests for unspecified calendar years. However, we agree in principle with the Consent Agreement, and with the parties having agreed to be bound by it, we accept the Consent Agreement. 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, Martz is directed to make payment of $1,000 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days after the date of mailing of this Order. Martz is further directed to file amended SFIs as agreed by the parties within thirty (30) days after the date of mailing of this Order. 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. Ronald Martz ( "Martz "), as a Supervisor in Salem Township ( "Township "), is a public official subject to the provisions of the Ethics Act. 2. Martz unintentionally violated Section 1103(a) of the Ethics Act when he claimed and received compensation for attending meetings of the Township which were held during his regular working hours as Township Roadmaster, and when he received compensation as Township Roadmaster for duties related to his position as an elected Township Supervisor. 3. Martz did not violate Section 1103(a) of the Ethics Act when he solicited business for his private excavating company from individuals seeking township permits who needed excavation services in relation to these permits, in that the private pecuniary benefit that he received was de minimis. In Re: Ronald Martz ORDER NO. 1360 File Docket: 03 -023 Date Decided: 2/28/05 Date Mailed: 3/14/05 1 Ronald Martz ( "Martz "), as a Supervisor in Salem Township ( "Township "), unintentionally violated Section 1103(a) of the Ethics Act when he claimed and received compensation for attending meetings of the Township which were held during his regular working hours as Township Roadmaster, and when he received compensation as Township Roadmaster for duties related to his position as an elected Township Supervisor. 2. Martz did not violate Section 1103(a) of the Ethics Act when he solicited business for his private excavating company from individuals seeking township permits who needed excavation services in relation to these permits, in that the private pecuniary benefit that he received was de minimis. 3. Per the Consent Agreement of the parties, Martz is directed to file amended Statements of Financial Interests as agreed by the parties within thirty (30) days after the date of mailing of this Order. 4. Per the Consent Agreement of the parties, Martz is directed to pay $1,000 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days after the date of mailing of this Order. 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