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HomeMy WebLinkAbout1423 GorrIn Re: Thomas Gorr, Respondent File Docket: X -ref: Date Decided: Date Mailed: Before: Louis W. Fryman, Chair John J. Bolger, Vice Chair Donald M. McCurdy Paul M. Henry Nicholas A. Colafella Reverend Scott Pilarz 06 -004 Order No. 1423 1/8/07 1/23/07 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 ( "Ethics Act "), 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 allegations. Upon completion of its investigation, 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 waived. A Stipulation of Findings and a Consent Agreement were submitted by the parties to the Commission for consideration. The record is complete. The Stipulation of Findings is quoted as the Findings in this Order. The Consent Agreement has been approved. This adjudication of the State Ethics Commission is issued under the Ethics Act 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 the Ethics Act. Any person who violates such confidentiality commits a misdemeanor and, upon conviction, may be 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. Gorr, 06 -004 Page 2 I. ALLEGATION: That Thomas Gorr, a public official /public employee, in his capacity as a Supervisor for Upper Macungie Township, Lehigh County violated Sections 1103(a) and 1105(b) provisions of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. § §1103(a) and 1105(b) when he used the authority of his public position for the private pecuniary gain of himself and /or a member of his immediate family when he claimed expenditures and received reimbursement from the township for spousal expenses for attendance at conventions and seminars; and when he has been compensated for duties not related to any township position; when he utilized a township credit card to make purchases of a personal nature; and when he failed to disclose on Statements of Financial Interests filed for the 2001, 2002, 2003, and 2004 calendar years all sources of income in excess of $1,300 annually. II. FINDINGS: 1. Thomas Gorr served as a Supervisor for Upper Macungie Township from approximately January 1994 to July 28, 2006. a. Upper Macungie Township is a second class township with a three member board. b. Gorr also served as the secretary /treasurer and Roadmaster during this time frame. c. Gorr served as Business Administrator for the township from January 1994 to January 2001, and then from December 2005 till July 28, 2006. d. Gorr resigned as supervisor effective July 28, 2006. 2. As the Secretary /Treasurer for the Board of Supervisors of Upper Macungie Township, Gorr performed the following duties. a. Attend monthly board of supervisors meetings. b. Produces and approves monthly treasurer's reports. c. Produces and approves monthly meeting minutes. d. Sign the checks on behalf of the township. 3. As business administrator, Gorr had the following responsibilities and duties. a. Overseeing and directing the daily activities of the township and its employees. b. Receive invoices and create checks to be issued. c. Produces and maintains bill list of all township expenses. d. No job description existed with the township for this position. 4. Upper Macungie Township Board of Supervisors hold [sic] one regular meeting per month. 5. In preparation for the supervisors monthly meetings, bills to be paid by the township are gathered and reviewed by the supervisors, in order to sign the payment checks. Gorr, 06 -004 Page 3 a. This review would include bills from MasterCard. b. This review occurs prior to the formation of a formal bill list and treasurer's report. c. The township issues checks to pay all bills that are received for purchases, utilities, and other expenditures. d. Gorr was responsible for preparing the monthly bill lists and treasurers report. 6. Following the review of bills, the payment checks are signed by two of the township supervisors. a. All three supervisors have signature authority on the township's general fund account. b. A majority of all township checks are signed by Supervisor Thomas Gorr and Porter Krisher. c. The final approval of township checks occur [sic] at monthly supervisors meeting. 7 The treasurer's report is given by Supervisor Gorr at each meeting. a. The treasurer's report details the balances in each township account, as well as a reading of the bill list. b. Township bill lists include all expenditures for the month, including the check amount, check numbers, and recipient. c. The bill list includes a monthly check for purchases from all three MasterCard invoices. d. A copy of the bill list is provided to each supervisor along with the prior months meeting minutes for review before the supervisors vote to approve them at the meeting. 8. In 2000 the board of supervisors for the township decided to obtain credit cards to be used to make purchases of supplies and other small items for the township. a. The cards were obtained to make procurement of every day items more cost effective. b. The cards were obtained to be used to make purchases only related to official township business. c. The township never used credit cards prior to 2000. 9. On March 18, 2000, Thomas Gorr, on behalf of Upper Macungie Township, obtained five (5) MasterCard credit cards through East Penn Bank, Emmaus, PA. a. Each credit card had its own account number with a $5,000 limit. b. The cards were in the name of Upper Macungie Township, and the township Gorr, 06 -004 Page 4 official who had signature authority. c. The following five township officials had sole signature authority of the corresponding credit card. Thomas Gorr, Supervisor )000X- )000X -)000X -5645 Porter Krisher, Supervisor )000X- )000X -)000X -5652 Scott Faust, Public Works Dir. )000X- )000X -)000X -5686 Richard Henderson )000X- )000X -)000X -5660 Michael Salovay )000X- )000X -)000X -5678 d. The MasterCard issued to Henderson (5660) is paid separately out of the Township's Sewer Authority account. e. Salovay's MasterCard was closed out at the end of 2001 after his death. f. The limits of cards 5645, 5652, and 5686 were increased to $6,000 in 2004. 10. The township issued MasterCards are maintained by the individual with signature authority on the particular account. a. Gorr maintained his MasterCard either in his desk or in his wallet. b. At no time was Gorr's card ever taken or used without his knowledge or consent. 11. The township board of supervisors never enacted a policy regarding the use of the credit cards. a. No township policy exists which sets guidelines for appropriate use of the credit cards. b. No township policy exists which sets guidelines for reimbursement of personal expenses. 12. Purchases made on each of the credit cards appear on individual MasterCard bills which are mailed to the township's office for payment. a. Bills submitted from MasterCard to the township are processed the same way as the other township bills. 13. Between January 2001 and May 2006, Upper Macungie Township Supervisor Gorr used his township issued credit card, )000X- )000X -)000X -5645, to make purchases relating to both township and personal business. a. Purchases on the card made by Gorr included but were not limited to: Lodging Computer Equipment Convention Expenses Meals Office Supplies Health Items 14. Gorr routinely made purchases of meals from local restaurants on his township issued credit card. Meal purchases locally included the following: Statement Date Date Amount Description 6/26/2001 23 -Jun $43.39 Chriss Family Restaurant: Allentown, PA Gorr, 06 -004 Page 5 8/27/2001 1 -Aug 9/27/2001 14 -Sep 1/25/2002 28 -Dec 3/26/2002 15 -Mar 4/24/2002 27 -Mar 5/24/2002 24 -Apr 5/24/2002 24 -Apr 5/24/2002 14 -May 9/26/2002 15 -Sep 12/26/2002 27 -Nov 2/26/2002 27 -Jan 2/26/2002 12 -Feb 4/24/2003 25 -Mar 1/26/2004 20 -Jan 2/25/2004 13 -Feb 3/24/2004 25 -Feb 4/26/2004 30 -Mar 5/26/2004 21 -May 6/24/2004 12 -Jun 11/24/2004 29 -Oct 12/27/2004 3 -Dec 12/27/2004 19 -Dec 11/25/2005 5 -Nov 2/24/2006 17 -Feb $26.55 $118.65 $109.49 $26.94 $23.27 $52.40 $72.00 $57.69 $27.47 $52.01 $37.19 $86.12 $29.69 $35.89 $134.17 $37.19 $137.47 $137.94 $227.60 $299.98 $129.70 $36.47 $44.35 $142.06 Total $2,125.68 Holiday Inn: Breinigsville, PA Trivet Family Restaurant: Breinigsville, PA Chriss Family Restaurant: Allentown, PA O'Haras: Allentown, PA Trivet Family Restaurant: Breinigsville, PA Clarion Hotels F &B: Allentown, PA Ringers Roost: Allentown, PA Red Robin: Allentown, PA Trivet Family Restaurant: Breinigsville, PA 1760 House Restaurant: Trexlertown, PA 1760 House Restaurant: Trexlertown, PA 1760 House Restaurant: Trexlertown, PA Holiday Inn: Breinigsville, PA Starlight Diner: Allentown, PA Starlight Diner: Allentown, PA Starlight Diner: Allentown, PA Starlight Diner: Allentown, PA Starlight Diner: Allentown, PA Bellissimo Restaurant: Allentown, PA Maxx Regal Bar & Grill- Trexlertown, PA Starlight Diner: Allentown, PA Maxx Regal Bar & Grill- Trexlertown, PA Starlight Diner: Allentown, PA Starlight Diner: Allentown, PA 15. Gorr asserts that purchases of breakfast were made by Gorr for the road crew. a. Gorr further asserts that the [sic] purchased meals and alcoholic beverages at retirement parties for township employees. b. Gorr asserts that he purchased meals for himself and others as part of meetings with township officials. 16. Upper Macungie records do not include receipts breaking down the nature of the meal expenses detailed in finding number 14. a. Gorr never submitted receipts to justify payments. b. No accounting exists to identify if the expenses were incurred by the road workers, as part of working meetings or for retirement parties. 17. Prior to the issuance of the credit cards, the township never paid for meals and hospitality for township officials and employees. Gorr, 06 -004 Page 6 a. The township never authorized the purchase of meals and alcohol for township employees. b. All such purchases were personally incurred by Gorr but paid for with township funds. 18. From January 2001 through May 2006, Gorr used his township issued credit card to pay for lodging and other expenses from various hotels. Room charges occurred as follows: Statement Date Date Amount Description 1/25/2001 21 -Jan $371.80 Doubletree Hotels Club: Largo, MD 12/27/2001 18 -Dec $307.32 Holiday Inns: Breinigsville, PA 2/26/2002 10 -Feb $129.71 Hilton Harrisburg 2/26/2002 10 -Feb $103.10 Hilton Harrisburg 4/24/2002 15 -Apr $530.22 Hershey Lodge & Conven. Holiday Inns: Breinigsville, PA - 4/25- 5/27/2003 25 -Apr $111.25 4/25 5/27/2003 8 -May $200.00 Holiday Inn: Breinigsville, PA - 5/8 -5/8 12/24/2003 2 -Dec $213.26 Holiday Inn: Breinigsville, PA - 12/2 -12/2 1/26/2004 25 -Jan $168.71 Hilton Harrisburg - 1/23 -1/24 3/24/2004 3 -Mar $290.50 Holiday Inn: Breinigsville,PA - 3/3 -3/3 4/26/2004 21 -Apr $682.23 Hershey Lodge & Conven. - 4/17 -4/20 4/26/2004 22 -Apr $651.31 Hershey Lodge & Conven. - 4/17 -4/21 4/26/2004 22 -Apr $196.60 Hershey Lodge & Conven. - 4/19 -4/21 4/26/2006 24 -Apr $111.15 Hershey Lodge & Conven. - 4/22 -4/23 a. Gorr purchased the rooms at the Holiday Inn for use by the road crew during winter storm clean up and to hold retirement parties and other township functions. 1. These functions were for the benefit of township employees and not open to the general public. 2. The township never approved the lodging for township employees. b. Gorr's hotel expenses also include stays for attendance at PSATS conventions. 19. Supervisors Gorr and Krisher annually attended PSATS annual convention and trade show held in Hershey, PA. a. Supervisor Gorr stayed at the Hershey Lodge and Convention Center for conferences held during 2001 through 2006. b. Gorr's wife accompanied him to the conferences in 2001 through 2006. 20. PSATS required [sic] a registration fee be paid by all those who attend the annual convention and trade show in Hershy [sic], PA. Gorr, 06 -004 Page 7 a. An additional fee is required to be paid for the registration of guests at the annual conventions. b. Guest fees annually set by PSATS were as follows: a. 2001: $45 2002: $45 2003: $45 21. Supervisor Gorr authorized the payment of his wife's registration fee for his attendance at conventions held from 2001 through 2006. a. The following amount [sic] were paid by the township for Gorr's wife [sic] attendance. Year Amount 2001 $45.00 2002 $45.00 2003 $45.00 2004 $45.00 2055 [sic] $50.00 2006 $55.00 $285.00 2004: $45 2005: $50 2006: $55 22. Supervisor Gorr used his township issued credit card to pay for all expenses that he and his wife incurred during the conferences. a. Gorr and Krisher took turns billing annual convention expenses to their credit cards. 23. Gorr admitted to State Ethics Commission Investigators that the township issued credit card ending in 5645 was used to pay for all of his wife's expenses at the conferences. 24. MasterCard records for the township issued credit card ending 5645 issued to Gorr confirm the following charges by Gorr of hotel stays and other expenses at the Hershey Lodge between 2002 and 2006. Statement Date Date Amount Description 4/24/2002 15 -Apr $530.22 Hershey Lodge & Conven. Hershey Lodge & Conven. - 4/17- 4/26/2004 21 -Apr $682.23 4/20 4/26/2004 22 -Apr $651.31 Hershey Lodge & Conven - 4/17 -4/21 Hershey Lodge & Conven. - 4/19- 4/26/2004 22 -Apr $196.60 4/21 Hershey Lodge & Conven. - 4/22- 4/26/2006 24 -Apr $111.15 4/23 b. These charges included expenses for Supervisor Krisher which were billed to this card. 25. Hotel folios from the Hershey Lodge confirm expenses incurred by Gorr and his wife Gorr, 06 -004 Page 8 during 2002, 2004, 2005, and 2006. a. # of Date People Description Total 4/12/02 - 4/14/02 2 Room & Tax $ 390.22 2 Lebbie's Food $ 26.10 Forebay 2 Lounge $ 66.47 4 Room Service $ 47.43 $ Total: 530.22 4/17/04- 4/20/04 2 Room & Tax $ 425.10 2 Lebbie's Food $ 30.34 Forebay 10 Lounge $ 326.79 Total: $ 782.23 4/16/05 - 4/18/05 2 Room & Tax $ 438.18 4/22/06 - 4/23/06 2 Room & Tax $ 149.33 Bears Den 2 Food $ 29.36 2 Lebbie's Food $ 32.46 Total: $ 211.15 b. Business records of the Hershey Lodge were not available for Gorr's room and related expenses in 2001 and 2003. 26. The expenses from Gorr's hotel folios included meal expenses for Gorr, his spouse and others, and drink expenses at the hotel lounge. a. Meal and drink expenses for Gorr's wife and others totaled as follows: Year Amount 2002 $81.86 2004 $15.17 2006 $30.91 Total: $127.94 b. Gorr also purchased drinks at the hotel lounge totaling $326.79. 27. In addition to charging room, meal, and drink expenses to the township credit card, Gorr also received payments from the township to cover meal and travel expenses. a. Gorr, and other supervisors, each received $100 /day expenses when attending PSATS conventions. 28. Gorr requested and was issued expense checks for expenses he incurred at the Gorr, 06 -004 Page 9 annual PSATS conference in 2001, 2003, and 2005. a. Gorr was issued the following three checks as reimbursement for his attendance at the PSATS conference. Date 4/17/01 4/5/03 4/10/05 Check # 26999 30385 33400 * Check No. 26999 includes $385.40 medical expense reimbursement. b. No record exists of an expense payment being made to Gorr in either 2002, 2004, or 2006. 29. Other expenses incurred by Gorr were charged to Krisher's credit card. 30. In January 2005, Supervisor Gorr took classes in human resources and contract negotiations at De Sales University. a. Gorr took the classes with the intent of gaining knowledge to negotiate township police contracts. 31. The Township's Board of Supervisors did not take any official action authorizing Gorr to enroll in the classes. a. Gorr took it upon himself to enroll and charge it off to the township in his official capacity as township manager and secretary /treasurer. 32. Gorr used his township issued credit card ending in 5645 to pay for class fees, text books, and other expenses associated with his classes. Gorr incurred educational costs on the following dates: a. Statement Date Date 12/27/2004 12/27/2004 12/27/2004 12/27/2004 1/26/2005 1/26/2005 4/26/2005 4/26/2005 4/26/2005 4/26/2005 6/24/2005 7/27/2005 7/27/2005 14 -Dec 14 -Dec 21 -Dec 23 -Dec 11 -Jan 11 -Jan 13 -Apr 31 -Mar 31 -Mar 20 -Apr 27 -May 24 -Jun 25 -Jul Amount $785.40 $400.00 $400.00 Amount Description $100.00 $130.00 $186.00 $1,510.00 $158.94 $53.28 $359.00 $855.00 $855.00 $206.00 $423.77 $47.90 $900.00 De Sales University De Sales University De Sales University De Sales University Duenow.com Inc. Edmonton, AB Duenow.com Inc. Edmonton, AB Thompson Publishing Gr. De Sales University De Sales University De Sales University TC Amst Print Lith Personnel Concepts De Sales University Gorr, 06 -004 Page 10 7/27/2005 25 -Jul $900.00 De Sales University 8/24/2005 18 -Aug $119.83 De Sales University 9/26/2005 1 -Sep $571.86 Staples: Allentown, PA Total $7,376.58 33. In response to questions raised about these expenses, Gorr made personal reimbursements to Upper Macungie Township for the classes and other expenses associated with the schooling. a. Two personal checks from Gorr were issued to Upper Macungie Township totaling $7,256.72. Check # Date Amount 2127 12 -7 -05 $4,631.72 2129 12 -12 -05 $2,625.00 $7,256.72 b. Gorr's reimbursement was $119.83* short of the school expenses the township initially paid. *[sic]. [There is a $.03 error in the calculation, in favor of the Respondent. We accept the amount as stipulated by the parties.] 34. Gorr reimbursed the township for the classes and other expenses after talking to the township's auditor. a. Gorr made the reimbursement since he did not receive prior authorization from the Board of Supervisors for the schooling. 35. In March of 2003, Supervisor Gorr used his township issued credit card to purchase two desktop computers for Emmaus Borough. a. Gorr's wife at the time was a township official for the Borough of Emmaus. b. As an Upper Macungie Township Supervisor, Gorr has no official responsibilities in Emmaus Borough. 36. Gorr's credit card statement reflects a charge in the amount of $2,967.97 from Circuit City, Whitehall, PA for the purchase of two laptop computers made on or about April 24, 2003. 37. The Borough of Emmaus issued a check for $1,800.00 to Upper Macungie Township for reimbursement of the computer. a. Reimbursement was received by the township on October 14, 2003. b. The reimbursement was $1,167.97 less than the price of the computer. 38. Gorr admitted to State Ethics Commission Investigators that he only reimbursed the borough $900 each for the two computers. a. Gorr indicated to State Ethics Commission Investigators that purchasing the computers for his wife did not relate to Upper Macungie Township business and was for the benefit of his spouse. Gorr, 06 -004 Page 11 39. Gorr used his township credit card ending in 5645 to make personal purchases which did not relate to his duties and responsibilities to Upper Macungie Township including the following: a. Statement Date Date Amount Description 8/27/2001 3 -Aug $1,547.45 LA Weight Loss Center: Whitehall, PA 3/26/2002 22 -Mar $69.95 Full Tilt Marine Inc.: Long Neck, DE 1/26/2004 26 -Dec $195.00 Bi- Weekly Payment Program- 800 - 868 -6571 3/24/2004 24 -Feb $43.90 Coral Calcium, MA Total: $1,856.30 b. These purchases were for various personal products that Gorr retained for his own use. 40. From January 2001 through May 2006, Gorr in his official capacity as Upper Macungie Township Secretary /Treasurer, received and reviewed MasterCard bills, produced and signed checks, and created bill lists for purchases made by him on his township issued credit card. 41. From January 2001 through May 2006, Gorr in his official capacity as supervisor was aware and voted to approve Treasurer's reports which included payments to MasterCard at all meetings that he was present at. a. Gorr was absent from the following meetings. Meeting Date Month Bills From 05/03/01 April 12/05/01 November 06/05/02 May 09/04/02 August 2/5/04 January 7/01/04 June 42. Township payments issued to MasterCard covered monthly charge expenses incurred by Gorr, Krisher, and Faust. a. All three (3) account statements are totaled and merged into a single payment. b. This includes charge card statements which included personal expenses of Gorr and his wife. THE FOLLOWING FINDINGS RELATE TO THE ALLEGATIONS CONCERNING GORR FAILING TO LIST INCOME EARNED FROM UPPER MACUNGIE TOWNSHIP ON HIS STATEMENTS OF FINANCIAL INTERESTS FORMS. 43. As supervisor for Upper Macungie Township, Gorr was required annually to file a Statement of Financial Interests form by the May 1 deadline, containing information for the prior calendar year. 44. Statements of Financial Interests forms on file with Upper Macungie Township Gorr, 06 -004 Page 12 include the following filings by Gorr. a. Calendar Year: 2000 Filed: 3/6/01 on SEC form 1/01 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: None All other Financial Interests: None b. Calendar Year: 2001 Filed: 1/2/02 on SEC form 1/99 Position: Supervisor /Executive Administrator Creditors: None Direct /Indirect Sources of Income: None All other Financial Interests: None c. Calendar Year: 2002 Filed: 12/4/02 on SEC form 1/99 Position: Township Supervisor /Executive Administrator Creditors: None Direct /Indirect Sources of Income: None All other Financial Interests: None d. Calendar Year: 2003 Filed: 1/19/04 on SEC form 1/03 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: County of Lehigh — 17 S. 7 th Street, Allentown, PA All other Financial Interests: None e. Calendar Year: 2004 Filed: 12/30/04 on SEC form 1/05 Status: Candidate, Public Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: Saucow Valley School District — 2097 Polk Valley Road, Hellerton, PA All other Financial Interests: None f. Calendar Year: 2005 Filed: 2/28/05 on SEC form 1/05 Status: Candidate Position: Township Supervisor /Director of Operations Creditors: None Direct /Indirect Sources of Income: Saucow Valley School District — 2097 Polk Valley Road, Hellerton, PA All other Financial Interests: None 45. Gorr did not disclose income received from his position with Upper Macungie Township on SFI's filed for the [sic] 2001, 2002, 2003, 2004, and 2005. 46. Gorr received income in excess of $1,300 from the township annually from calendar years 2001 through 2005. 47. On August 23, 2006, Gorr filed amended Statements of Financial Interests forms Gorr, 06 -004 Page 13 with the State Ethics Commission which disclose Upper Macungie Township as a direct source of income. 48. Amended Statements of Financial Interests forms filed with the State Ethics Commission include the following information: a. Calendar Year: 2001 Filed: 8/23/06 on SEC form 01/06 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: Upper Macungie Township, 8330 Schantz Rd., Breinigsville, PA 18031 All other Financial Interests: None b. Calendar Year: 2002 Filed: 8/23/06 on SEC form 01/06 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: Upper Macungie Township, 8330 Schantz Rd., Breinigsville, PA 18031: County of Lehigh, 17 S. 7 th Street, Allentown, PA 18101 All other Financial Interests: None c. Calendar Year: 2003 Filed: 8/23/06 on SEC form 01/06 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: Upper Macungie Township, 8330 Schantz Rd., Breinigsville, PA 18031: County of Lehigh, 17 S. 7 th Street, Allentown, PA 18101 All other Financial Interests: None d. Calendar Year: 2004 Filed: 8/23/06 on SEC form 01/06 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: Upper Macungie Township, 8330 Schantz Rd., Breinigsville, PA 18031: County of Lehigh, 17 S. 7 th Street, Allentown, PA 18101 All other Financial Interests: None e. Calendar Year: 2005 Filed: 8/23/06 on SEC form 01/06 Position: Township Supervisor Creditors: None Direct /Indirect Sources of Income: Saucon Valley School District, 2097 Polk Valley Rd., Hellertown, PA 18055: Upper Macungie Township, 8330 Schantz Rd., Breinigsville, PA 18031: All other Financial Interests: None Gorr, 06 -004 Page 14 49. Gorr realized a private pecuniary gain of $6,009.51 as a result of the use of his pubic position to charge items of a personal nature to the township credit card and then participated in board actions to approve payments. a. Private pecuniary gain determined as follows: 1. Convention expenditures Spouse and others $127.94 Hotel Lounge $326.79 2. Spouse Registration Fee $285.00 3. Computer Purchases $1,167.97 (difference between actual cost and reimbursement) 4. School Expenses $119.83 (difference between actual cost and reimbursement) 5. Meals /Hospitality $2,125.68 6. Personal Expenses $1,856.30 $6,009.51 III. DISCUSSION: Respondent Thomas Gorr (hereinafter also referred to as "Gorr "), as a Supervisor for Upper Macungie Township from approximately January 1994 to July 28, 2006, was a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. The allegations are that Gorr, as an Upper Macungie Township Supervisor, violated Sections 1103(a) and 1105(b) of the Ethics Act when he claimed expenditures and received reimbursement from the township for spousal expenses for attendance at conventions and seminars; when he received compensation for duties not related to any township position; when he utilized a township credit card to make purchases of a personal nature; and when he failed to disclose all sources of income in excess of $1,300 on Statements of Financial Interests (SFIs) filed for the 2001, 2002, 2003, and 2004 calendar years. Pursuant to Section 1103(a) of the Ethics Act, a public official /public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 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 Gorr, 06 -004 Page 15 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. The term 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. Section 1105(b) of the Ethics Act requires, inter alia, that a public official /public employee disclose the name and address of any direct or indirect source of income totaling in the aggregate $1,300 or more. 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. Gorr served as a Supervisor of Upper Macungie Township ( "Township ") from January 1994 to July 28, 2006. Gorr also served as Township Secretary /Treasurer and Roadmaster during this time frame. Gorr served as the Township Business Administrator from January 1994 to January 2001 and from December 2005 to July 28, 2006. The Township Board of Supervisors ( "Board ") is a three - member board. Prior to the monthly meetings of the Board, bills are compiled and reviewed by the supervisors. Following the review of the bills, checks are prepared and then signed by two of the three supervisors, all of whom have signature authority for the Township's general fund account. The final approval of Township checks occurs at the monthly Board meeting. In 2000, the Board decided to obtain credit cards in order to make purchases of supplies and small items for the Township. Five credit cards, each with a separate identification number, were obtained for Gorr, another supervisor, and three other Township staff members. No Township policy exists which sets guidelines for appropriate use of the credit cards. No Township policy exists which sets guidelines for reimbursement of personal expenses. Between January 2001 and May 2006, Gorr used his Township credit card to not only make various purchases for the Township but also for his own personal business. Gorr routinely charged meals at local restaurants on his Township credit card. See, Fact Finding 14. Gorr asserts that such purchases on the Township credit card were to pay for meals for the road crew, meals and alcoholic beverages at Township employee retirement parties, and meals for himself and others as part of meetings with Township officials. Before the Township credit cards were obtained, the Township never paid for meals for Township officials or employees. Gorr, 06 -004 Page 16 Gorr used his Township credit card to pay for lodging and expenses at various hotels from 2001 through 2006. Such hotel expenses related to housing the road crew during a winter storm cleanup, holding Township functions for employees, and attending the PSATS conventions. Gorr authorized payment of his spouse's registration fees at the PSATS conventions for the years 2001 through 2006. Gorr also used the Township credit card to pay for expenses for his spouse, others and himself at the PSATS conferences. The details of such expenses are set forth in Fact Findings 18 -22, 24 -26. In addition to charging expenses to the Township credit card during the PSATS conventions, Gorr also received $100 /day from the Township for expenses while attending the conventions. From December 2004 through September 2005, Gorr used his Township credit card to pay for expenses associated with classes that he took at DeSales University. The Board did not take any official action to authorize Gorr to enroll in those classes. The parties have stipulated that subsequently, Gorr reimbursed the Township for all but $119.83 of the expenses the Township had paid relative to such courses. See Fact Findings 32, 33. In March of 2003 Gorr used the Township credit card to purchase two computers for Emmaus Borough, where his spouse served as a public official. Although Emmaus Borough issued a check for $1,800.00 to the Township, the reimbursement was $1,167.97 less than the purchase price that the Township had paid for the computers. Gorr admitted that only a partial reimbursement was made. Gorr used the Township credit card to make other personal purchases totaling $1,856.30, as detailed in Fact Finding 39. From January 2001 through May 2006, Gorr as a Township Supervisor participated in voting to approve Treasurer's reports that included charge card payments. The parties have stipulated that the financial gain that Gorr received from using the Township credit card for personal expenses and participating in Board actions to approve Township credit card payments totaled $6,009.51. See, Fact Finding 49. As a Township Supervisor, Gorr was required to file SFIs. Although Gorr filed SFIs for the calendar years 2000 through 2005, he failed to list the Township as a source of income in excess of $1,300 for calendar years 2001 through 2005. Cf., Fact Findings 44, 45, 46. 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 allegation as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Gorr used a township credit card to make purchases for himself of a personal nature. b. That no violation of Section 1103(a) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Gorr when [sic] was compensated for duties not related to any township position. Gorr, 06 -004 Page 17 c. That a technical violation of Section 1105(b) of the Public Official and Employee Ethics Law, 65 Pa.C.S. §1105(b) occurred when Gorr failed to disclose on Statements of Financial Interests filed for the 2001, 2002, 2003, and 2004 calendar years income in excess of $1,300 received from the township annually. 4. Gorr agrees to make payment in the amount of $4,000.00 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. 5. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter, and make no specific recommendations 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. 6. Gorr agrees to waive his rights to an evidentiary hearing and appellate rights without prejudice to so proceed in the event that the State Ethics Commission does not accept this agreement. Consent Agreement, at 2. In applying Section 1103(a) of the Ethics Act to the stipulated findings, there were uses of the authority of office on the part of Gorr. But for the fact that Gorr was a Township Supervisor, he would not have been in a position to utilize the Township credit card for personal purposes. In particular, Gorr used the Township credit card to charge unauthorized food and beverage expenses, his spouse's expenses at the PSATS conventions, and other personal expenses. Gorr used the Township credit card to pay for unauthorized education expenses. We note that Gorr did make a partial reimbursement of the education expenses. Gorr used the Township credit card to charge the purchase of two computers for another municipality where his spouse served as a public official. Gorr participated as a Board Supervisor in voting to approve Township bills that included such unauthorized credit card charges. All such actions were uses of the authority of office. See, Juliante, Order 809. Such uses of authority of office resulted in private pecuniary benefits to Gorr and to his spouse, who is a member of his immediate family as that term is defined under the Ethics Act. The charges on the Township credit card were private pecuniary benefits because such charges were not authorized in law. Accordingly, Gorr violated Section 1103(a) of the Ethics Act when he used the Township credit card to make purchases of a personal nature for himself and his spouse. See, Keeney, Order 1243; Costenbader- Jacobson, Order 1236. Regarding the allegation that Gorr received compensation for duties that did not relate to his Township position, the record before us does not present any factual basis to support that allegation. Accordingly, Gorr did not violate Section 1103(a) of the Ethics Act regarding the allegation that he received compensation for duties not related to any Township position, based upon an insufficiency of evidence. Gorr, 06 -004 Page 18 As to the allegation that Gorr failed to disclose all sources of income in excess of $1,300 on his SFIs for calendar years 2001 through 2004, the stipulated findings reflect that Gorr failed to disclose the Township as a source of income for calendar years 2001 through 2004. Because Gorr received income in excess of $1,300 from the Township for each of those calendar years, he was required to list the Township as a source of income on his SFIs for calendar years 2001 through 2004. Accordingly, Gorr technically violated Section 1105(b) of the Ethics Act when he failed to disclose on his SFIs for the calendar years 2001 through 2004 reportable income that he received from the Township. See, Rice, Order 1262. Parenthetically, we note that Gorr has filed amended SFIs for calendar years 2001 through 2005. 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, Gorr is directed to make payment in the amount of $4,000.00 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the issuance 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. Respondent Thomas Gorr ( "Gorr "), as a Supervisor for Upper Macungie Township from approximately January 1994 to July 28, 2006, was a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. 2. Gorr violated Section 1103(a) of the Ethics Act when he used the Township credit card to make purchases of a personal nature for himself and his spouse. 3. Gorr did not violate Section 1103(a) of the Ethics Act regarding the allegation that he received compensation for duties not related to any Township position based upon an insufficiency of evidence. 4. Gorr technically violated Section 1105(b) of the Ethics Act when he failed to disclose on his Statements of Financial Interests for the calendar years 2001 through 2004 reportable income that he received from the Township. In Re: Thomas Gorr ORDER NO. 1423 File Docket: 06 -004 Date Decided: 1/8/07 Date Mailed: 1/23/07 1 Thomas Gorr ( "Gorr "), as an Upper Macungie Township Supervisor, violated Section 1103(a) of the Ethics Act when he used the Township credit card to make purchases of a personal nature for himself and his spouse. 2. Gorr did not violate Section 1103(a) of the Ethics Act regarding the allegation that he received compensation for duties not related to any Township position based upon an insufficiency of evidence. 3. Gorr technically violated Section 1105(b) of the Ethics Act when he failed to disclose on his Statements of Financial Interests for the calendar years 2001 through 2004 reportable income that he received from the Township. 4. Per the Consent Agreement of the parties, Gorr is directed to make payment in the amount of $4,000.00 to the Commonwealth of Pennsylvania through this Commission within thirty (30) days of the issuance 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