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HomeMy WebLinkAbout07-004 MCGILLOPINION OF THE COMMISSION Eugene McGill PennDOT District 3 -0 715 Jordan Avenue Montoursville, PA 17815 Dear Mr. McGill: I. ISSUE: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Raquel K. Bergen Nicholas A. Colafella Reverend Scott Pilarz DATE DECIDED: 1/9/07 DATE MAILED: 1/23/07 You seek a determination as to whether, in your capacity as a Real Estate Specialist with PennDOT, you would be considered a "public employee" subject to the Ethics Act and the Regulations of the State Ethics Commission. See, 65 Pa.C.S. §1102; 51 Pa. Code §11.1. You specifically question 07 -004 This Opinion is issued in response to the appeal of Advice of Counsel, 06 -588, which was issued on October 2, 2006. Whether a Real Estate Specialist with the Commonwealth of Pennsylvania, Department of Transportation ( "PennDOT "), would be considered a "public employee" subject to the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq., and the Regulations of the State Ethics Commission, and particularly, the requirements for filing Statements of Financial Interests. II. FACTUAL BASIS FOR DETERMINATION: By faxed letter dated October 30, 2006, you appealed Advice of Counsel, 06 -588, which was issued on October 2, 2006. Your initial advisory request presented facts and arguments that were summarized in the Advice of Counsel as follows: McGill, 07 -004 January 23, 2007 Page 2 whether you are required to file Statements of Financial Interests. You have submitted copies of your job description and the job classification specifications for your position, which are incorporated herein by reference. Your duties and responsibilities include the following: • Negotiating with property owners for the settlement of complex acquisition projects, including partial acquisitions that involve property improvements or have an impact on the remaining value of the affected property and acquisitions that involve major right of way projects and major roadway widening in commercial and industrial areas. • Resolving acquisition issues, the preparation of relocation plans, and the determination of relocation payments. • Recommending administrative settlements. • Identifying excess property, maintaining an inventory of leased property, negotiating lease terms, preparing lease agreements, collecting monies due for rental of property, and making arrangements for repairs to be performed of leased property. • Conducting bid openings and auction sales in connection with handling all sales of excess right of way. • Seeking alternate ways of redesigning and /or conducting a project in order to minimize the amount of funds being expended. • Reviewing requests to dispose of excess land owned by PennDOT. • Reviewing all types of relocation assistance claims prepared by the districts and reviewing contracts and leases. You state that your position does not allow you to make unsupervised decisions in the office or field. You do not have the authority to make any final decisions or to stop recommendations from being sent to a person or department within PennDOT that has the authority to make a decision concerning any claim on any project assigned to District 3 -0. The nature of your daily work does not put you in a position wherein you might be required to operate in a management position or in an out -of -class or acting management /supervisory capacity. You state that Management Directive 205.10 does not include your job classification or duties in the definition of a "public employee." McGill, Advice of Counsel 06 -588 at 1 -2. Advice of Counsel 06 -588 determined that in your position as a Real Estate Specialist for PennDOT, you would be considered a "public employee" subject to the Ethics Act and Regulations of this Commission. The Advice of Counsel determined that McGill, 07 -004 January 23, 2007 Page 3 you have the ability to take or recommend official action of a nonministerial nature that satisfies subparagraph (5) of the statutory definition of "public employee" (pertaining to any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person" (65 Pa.C.S. § 1102)), as well as the criteria set forth in this Commission's Regulations for determining status as a public employee, specifically at 51 Pa. Code § 11.1, "public employee," subparagraph (ii). The Advice of Counsel specifically noted your power /authority to: negotiate with property owners for the settlement of complex acquisition projects, including partial acquisitions that have an impact on the remaining value of the affected property and acquisitions that involve major roadway widening in commercial and industrial areas; resolve acquisition issues; resolve the preparation of relocation plans and the determination of relocation payments; recommend administrative settlements; identify excess property; conduct bid openings and auction sales in connection with handling all sales of excess right of way; maintain an inventory of leased property; negotiate lease terms and prepare lease agreements; make arrangements for repairs to be performed of leased property; seek alternate ways of redesigning and /or conducting a project in order to minimize the amount of funds being expended; review requests to dispose of excess land owned by PennDOT; review all types of relocation assistance claims prepared by the districts; and review contracts and leases. With regard to your arguments that your position does not allow you to make unsupervised decisions in the office or field, to make final decisions or stop recommendations from being sent to a person or department within PennDOT that has the authority to make such decisions, or to act in any type of management /supervisory capacity, the Advice of Counsel noted that the definition of public employee is not limited to taking official action but also encompasses merely recommending official action. The Advice of Counsel finally determined that as a "public employee" subject to the Ethics Act and the Regulations of this Commission, you are required to file Statements of Financial Interests pursuant to the Ethics Act. By faxed letter dated October 30, 2006, you appealed Advice of Counsel 06 -588. Your appeal letter did not state any particular basis for the appeal, but merely exercised the right to appeal the Advice of Counsel. By letter dated November 8, 2006, you were notified of the date, time and location of the public meeting at which your request would be considered. The position description and the job classification specifications for your position (job code 17148) are incorporated herein by reference. III. DISCUSSION: It is initially noted that pursuant to Sections 1107(10) and 1107(11) of the Ethics Act, 65 Pa.C.S. §§ 1107(10), (11), advisories are issued to the requester based upon the facts that the requester has submitted. In issuing the advisory based upon the facts that the requester has submitted, this Commission does not engage in an independent investigation of the facts, nor does it speculate as to facts that have not been submitted. It is the burden of the requester to truthfully disclose all of the material facts relevant to the inquiry. 65 Pa.C.S. §§ 1107(10), (11). An advisory only affords a defense to the extent the requester has truthfully disclosed all of the material facts. Our review of this matter is de novo (Clarke, Opinion 04 -012; Spear, Opinion 04- 011): "De novo review entails, as the term suggests, full consideration of the case anew. The reviewing body is in effect substituted for the prior decision maker and redecides the case." D'Arciprete v. D'Arciprete, 323 Pa. Super. 430, 470 A.2d 995 (1984) (citations omitted). See also, Hayes v. Donohue Designer Kitchen, Inc., 2003 Pa. Super. 84, 818 A.2d 1287 (2003); Commonwealth v. Krut, 311 Pa. Super. 64, 457 A.2d 114 (1983); In re McGill, 07 -004 January 23, 2007 Page 4 Audit of School District, 354 Pa. 232, 47 A.2d 292 (1946). We shall begin our analysis by reviewing the relevant provisions of the Ethics Act and the Regulations of this Commission. The Ethics Act defines the term "public employee" as follows: § 1102. Definitions "Public employee." Any individual employed by the Commonwealth or a political subdivision who is responsible for taking or recommending official action of a nonministerial nature with regard to: (1) contracting or procurement; (2) administering or monitoring grants or subsidies; (3) planning or zoning; (4) inspecting, licensing, regulating or auditing any person; or (5) any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person. The term shall not include individuals who are employed by this Commonwealth or any political subdivision thereof in teaching as distinguished from administrative duties. 65 Pa. C. S. § 1102. The Regulations of this Commission similarly define the term "public employee" and set forth the following additional criteria: (ii) The following criteria will be used, in part, to determine whether an individual is within the definition of "public employe ": (A) The individual normally performs his responsibility in the field without onsite supervision. (B) The individual is the immediate supervisor of a person who normally performs his responsibility in the field without onsite supervision. (C) The individual is the supervisor of a highest level field office. (D) The individual has the authority to make final decisions. (E) The individual has the authority to forward or stop recommendations from being sent to the person or body with the authority to make final decisions. (F) The individual prepares or supervises the preparation of final recommendations. (G) The individual makes final technical recommen- McGill, 07 -004 January 23, 2007 Page 5 dations. (H) The individual's recommendations or actions are an inherent and recurring part of his position. (1) The individual's recommendations or actions affect organizations other than his own organization. (iii) The term does not include individuals who are employed by the Commonwealth or a political subdivision of the Commonwealth in teaching as distinguished from administrative duties. (iv) Persons in the following positions are generally considered public employes: (A) Executive and special directors or assistants reporting directly to the agency head or governing body. (B) Commonwealth bureau directors, division chiefs or heads of equivalent organization elements and other governmental body department heads. (C) Staff attorneys engaged in representing the department, agency or other governmental bodies. (D) Engineers, managers and secretary- treasurers acting as managers, police chiefs, chief clerks, chief purchasing agents, grant and contract managers, administrative officers, housing and building inspectors, investigators, auditors, sewer enforcement officers and zoning officers in all governmental bodies. (E) Court administrators, assistants for fiscal affairs and deputies for the minor judiciary. (F) School superintendents, assistant superintendents, school business managers and principals. (G) Persons who report directly to heads of executive, legislative and independent agencies, boards and commissions except clerical personnel. (v) Persons in the following positions are generally not considered public employes: (A) City clerks, other clerical staff, road masters, secretaries, police officers, maintenance workers, construction workers, equipment operators and recreation directors. (B) Law clerks, court criers, court reporters, probation officers, security guards and writ servers. (C) School teachers and clerks of the schools. 51 Pa. Code § 11.1. The following terms are relevant to your inquiry and are defined in the Ethics Act as follows: § 1102. Definitions McGill, 07 -004 January 23, 2007 Page 6 "Ministerial action." An action that a person performs in a prescribed manner in obedience to the mandate of legal authority, without regard to or the exercise of the person's own judgment as to the desirability of the action being taken. "Nonministerial actions." An action in which the person exercises his own judgment as to the desirability of the action taken. 65 Pa.C.S. § 1102. Status as a "public employee" subject to the Ethics Act is determined by an objective test. The objective test applies the Ethics Act's definition of the term "public employee" and the related regulatory criteria to the powers and duties of the position itself. Typically, the powers and duties of the position are established by objective sources that define the position, such as the job description, job classification specifications, and organizational chart. The objective test considers what an individual has the authority to do in a given position based upon these objective sources, rather than the variable functions that the individual may actually perform in the position. See, Phillips v. State Ethics Commission, 470 A.2d 659 (Pa. Cmwlth. 1984); Eiben, Opinion 04 -002; Shienvold, Opinion 04 -001; Shearer, Opinion 03 -011. The Commonwealth Court of Pennsylvania has specifically considered and approved this Commission's objective test and has directed that coverage under the Ethics Act be construed broadly and that exclusions under the Ethics Act be construed narrowly. See, Phillips, supra. In applying the objective test in the instant matter, we conclude that you are a public employee subject to the Ethics Act and Regulations of this Commission. The first portion of the statutory definition of "public employee" includes individuals with authority to take or recommend official action of a nonministerial nature. 65 Pa.C.S. § 1102. Likewise, the regulatory criteria for determining status as a public employee, as set forth in 51 Pa. Code § 11.1( "public employee ")(ii), include not only individuals with authority to make final decisions but also individuals with authority to forward or stop recommendations from being sent to final decision - makers; individuals who prepare or supervise the preparation of final recommendations; and individuals who make final technical recommendations. Gilliland /Reese, Opinion 05 -005. The objective sources defining your position (job classification specifications and position description) establish that as a Real Estate Specialist with PennDOT, you have the authority, inter alia, to do the following: (Per Job Classification Specifications) • Negotiate with property owners for the settlement of complex acquisition projects, which projects may include commercial and industrial properties, partial takings involving property improvements, major right of way projects, and major roadway widening in commercial or industrial areas; • Provide relocation assistance to displaced persons; • Resolve acquisition issues, prepare relocation plans, and determine relocation payments; • Critique acquisition plans for the purpose of reducing right of way acquisition costs; • Recommend administrative settlements; • Prepare appraisal reports justifying determined real estate values and damage estimates on claims of nominal value and uncomplicated trading of unimproved land; • Identify excess property, maintain an inventory of leased property, negotiate lease terms, prepare lease agreements, and make arrangements for repairs to be McGill, 07 -004 January 23, 2007 Page 7 performed of leased property; • Conduct bid openings and auction sales; • Manage a District Outdoor Advertising and Junkyard Control Program; • Review requests to dispose of excess land owned by PennDOT; and • Review contracts and leases and all types of relocation assistance claims prepared by the districts. (Per Position Description) • Negotiate with property owners for the settlement of non complex acquisition projects, which include strip acquisitions, vacant parcels of land, minor rural easements, and smaller parcels that do not involve property improvements or impact the remaining value of the affected property; • Negotiate with property owners for the relocation of residential owner and /or tenant occupants; • Work with lien holders and /or their attorneys in an effort to get liens released or paid from just compensation; • Contact and coordinate with mortgage holders, lien holders, and judgment holders for release and payoff figures; and • Seek alternate methods of designing and conducting a project in order to minimize the amount of funds being expended. Based upon the above, we find that your authority includes responsibility for taking or recommending official action of a nonministerial nature with regard to category (5) of the Ethics Act's definition of "public employee," specifically, any other activity where the official action has an economic impact of greater than a de minimis nature on the interests of any person." 65 Pa.C.S. § 1102. There is no question that in negotiating for the settlement of acquisition projects, recommending administrative settlements, and determining relocation payments and the like, your official job duties and responsibilities would have a significant economic impact upon the interests of affected property owners as well as the interests of Pennsylvania taxpayers with regard to the expenditure of public funds for real estate acquisition. As noted above, the objective sources defining your position (job classification specifications and position description) are dispositive of your status under the Ethics Act —not claims as to actual duties performed. Having determined that you are a public employee subject to the Ethics Act and the Regulations of this Commission, it necessarily follows that you are required to file Statements of Financial Interests pursuant to the Ethics Act. Based upon the above analysis, we deny the appeal and affirm McGill, Advice of Counsel 06 -588. Lastly, the propriety of the proposed course of conduct has only been addressed under the Ethics Act. IV. CONCLUSION: A Real Estate Specialist employed by the Commonwealth of Pennsylvania, Department of Transportation ( "PennDOT "), would be considered a "public employee" subject to the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1101 et seq. ( "Ethics Act ") and Regulations of the State Ethics Commission, 51 Pa. Code § 11.1 et seq. The Real Estate Specialist would be required to file Statements of Financial Interests pursuant to the Ethics Act. Advice of Counsel 06 -588 is affirmed. The propriety of the proposed conduct has only been addressed under the Ethics McGill, 07 -004 January 23, 2007 Page 8 Act. Pursuant to Section 1107(10), the person who acts in good faith on this Opinion issued to him shall not be subject to criminal or civil penalties for so acting provided the material facts are as stated in the request. This letter is a public record and will be made available as such. Finally, a party may request the Commission to reconsider its Opinion. The reconsideration request must be received at this Commission within thirty days of the mailing date of this Opinion. The party requesting reconsideration must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code § 21.29(b). By the Commission, Louis W. Fryman Chair