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HomeMy WebLinkAbout1442 Complainant AIn Re: Complainant A, File Docket: Respondent 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 ID # 06 -024 LD # 06- 024 -WUA (A &B) Order No. 1442 6/11/07 6/29/07 The Investigative Division of the State Ethics Commission conducted an investigation regarding a possible wrongful use of act under the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1101 et seq., by the above -named "Complainant." Written notice of the specific allegations was served at the commencement of the investigation. Upon completion of the investigation, the Investigative Division issued and served upon Complainant a Findings Report identified as an "Investigative Complaint," which constituted the Investigation Division's Complaint against the Complainant. An Answer was filed and a hearing was held. The record is complete. Upon issuance, this adjudication and Order shall constitute the "preliminary determination" of this Commission as to wrongful use of the Ethics Act. Per the Commission Regulations at 51 Pa. Code § 25.3(d), this Commission shall notify the Complainant and the "Subjects" (the persons against whom the original Complaints were filed) of the Commission's preliminary determination in this case. If no appeal is filed with this Commission within thirty days after the mailing date noted above, the preliminary determination will become absolute, will constitute the final determination of this Commission as to wrongful use of the Ethics Act (51 Pa. Code § 25.4), and will be made available in redacted form as a public document. If the final determination of this Commission is that the Complainant has wrongfully used the Ethics Act, then upon receiving a written request from a Subject, this Commission shall provide to such Subject the name and address of the Complainant, together with a copy of the final determination of this Commission. 65 Pa.C.S. § 1110(c). The files in this case will remain confidential in accordance with Section 1108 of the Ethics Act, 65 Pa.C.S. § 1108. 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, 65 Pa.C.S. § 1109(e). Confidentiality does not preclude discussing this case with an attorney at law. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 2 I. ALLEGATION: That Complainant "A," a (private citizen) violated the following provisions of the State Ethics Act (Act 93 of 1998) when he /she filed, or caused to be filed, a complaint against Respondent "B" as a Borough "C" [sic] Mayor knowing that the complaint that was filed was frivolous and without basis and [sic] law and fact. Section 1110. Wrongful use of chapter (a) Liability. - -A person who signs a complaint alleging a violation of this chapter against another is subject to liability for wrongful use of this chapter if: (1) the complaint was frivolous, as defined by this chapter, or without probable cause and made primarily for a purpose other than that of reporting a violation of this chapter. 65 Pa. C. S. §1110(a). II. FINDINGS: A. Pleadings 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that an unknown individual violated provisions of the State Ethics Act (Act 93 of 1998). 2. Upon review of the complaint the Investigative Division initiated a preliminary inquiry on April 19, 2006. 3. The preliminary inquiry was completed within sixty days. 4. On June 15, 2006, a letter was forwarded to Complainant "A," by the Investigative Division of the State Ethics Commission informing him /her that a complaint against him /her was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, [no.] 7004 2890 0004 1229 2882. b. The domestic return receipt bore the signature of Complainant "A," with a delivery date of June 24, 2006. 5. Periodic notice letters were forwarded to Complainant "A" in accordance with the provisions of the Ethics Law advising him /her of the general status of the investigation. 6. The Investigative Complaint was mailed to the Respondent on December 1, 2006. 7. Complainant "A" is a private citizen and resident of Borough "D ", County "E." 8. Complainant "A" had been active, along with Individual "F," in protesting actions of Borough "D" Council they opposed. a. Complainant "A" frequently attended meetings to voice his /her opinions and opposition. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 3 b. Complainant "A" was opposed to council actions relating to [the] hiring of Borough "D" Mayor Respondent "B" to the position of road supervisor. c. Complainant "A" also opposed the hiring of Council Person "G" as assistant secretary- treasurer [sic]. 9. Borough "D" records confirm that Respondent "B" was hired as the part -time supervisor for the road department on [date 1]. 10. Complainant "A," a regular attendee at borough council meetings, verbally challenged council and the solicitor as to the legality of hiring Respondent "B" as road supervisor while simultaneously serving as Mayor. a. On at least two occasions Borough "D" Solicitor "H" advised Complainant "A" that Section 1104 of the Borough Code was not applicable to the hiring of Respondent "B." 11. Borough "D" meeting minutes confirm Council Person "G" was hired as Assistant Secretary of the Borough at the [date 3] regular meeting of Borough Council. a. Complainant "A" was present at the meeting. b. Complainant "A" questioned the solicitor, is it possible for a council person to fill in as an assistant secretary, to do the job..." 12. [A] lawsuit [filed by Complainant "A" and Individual "F "] alleged that a violation of Section 1104 of the Borough Code occurred when Respondent "B" was compensated as both Mayor and road supervisor. a. The lawsuit was filed with the Arbitration Division and assigned [Docket Number 1]. b. [Another] lawsuit filed by Complainant "A" and Individual "F" alleged that a violation of Section 1104 of the Borough Code occurred when Council Person "G" was hired as Assistant Secretary. 13. Included as Motion !Hof the Preliminary Objections [filed by Borough Solicitor "H "] was a Motion to Strike for the following reasons: III. MOTION TO STRIKE AND DEMURRER PURSUANT TO PA. R.C.P. 1028(a)(4) Plaintiffs' Complaint is deficient pursuant to PA. R.C.P. 1028(a)(4) for its failure to state a claim upon which relief may be granted. Borough Code §1104, 53 P.S. §46104 does not permit elected borough officials of boroughs with a population of 3,000 or more to serve as an employee of that borough. [Borough "D's "] population is [number below 3, 000]. For the foregoing reasons, Plaintiffs' Complaint fails to state a cause of action upon which relief may be granted justifying the entry of a demurrer pursuant to PA. R.C.P. 1028(a)(4). 14. On [date] 2006 *, the County "E" Court of Common Pleas issued an Order of Court dismissing Complainant "A's" complaint with prejudice based on the Preliminary Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 4 Objections filed by Solicitor "H." *[At the hearing in this matter, it was noted that this date should have been [date] 2004. (Tr. at 14 -15). The Complainant receives the benefit of the later averred date. Bartholomew v. State Ethics Commission, 795 A.2d 1073 (Pa. Cmwlth. 2002).] 15. On or about November 18, 2005, Complainant "A" filed a sworn complaint with the State Ethics Commission against Borough "D" Mayor Respondent "B." a. Complainant "A" had the complaint notarized on 10/07/05 by Individual "F." 16. In the complaint Complainant "A" alleged that Respondent "B," in his /her public position as Mayor of Borough "D," had violated the State Ethics Act when he /she accepted compensation as the borough road supervisor while simultaneously serving as borough mayor. 17. Upon review of the complaint the Investigative Division initiated a preliminary inquiry on December 14, 2005, and assigned case no. 05 -058. 18. On or about January 20, 2006, Complainant "A" filed a complaint with the State Ethics Commission alleging that Respondent "B" and Council Person "G" violated provisions of the State Ethics Act. a. The complaint was assigned complaint no. 27. b. Complainant "A's" handwritten attachment to the complaint asserted as follows regarding Respondent "B ": ... We also have a mayor who holds multiple positions - Mayor, [fire company officer]- and Boro Road Supervisor at [rate] an hour. Once again I refer to boro code #1104 which says [he /she] can do the job but cannot as mayor, be compensated therefor." ... It is wrong from [sic] them to have that power and work as boro employees on an hourly payroll." 19. The State Ethics Commission Executive Director responded to Complainant "A's" complaint no. 27 on January 23, 2006, as follows: ... The information you submitted regarding [Respondent "B "] was previously submitted by you and is being investigated to case no. 05 -058. Therefore, no additional investigation will be initiated." 20. Article XI, Section 1104 of the Borough Code, Appointments; Incompatible Offices, states: "Unless there is incompatibility in fact, any elective or appointive officer of the borough shall be eligible to serve on any board, commission, bureau or other agency created or authorized by statute and may accept appointments thereunder, but no mayor or councilman shall receive compensation therefore. No elected borough official of a borough with a population of 3,000 or more may serve as an employee of that borough." 21. In an interview with a SEC investigator on 1/23/06, in regard to the complaint he /she filed against Respondent "B," Complainant "A" confirmed his /her knowledge of the population of the Borough as less than [number below 3,000]; and that the solicitor had advised that the hiring of Council Person "G" as Assistant Secretary Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 5 was legal. a. Complainant "A" alleged that there was a conflict in Respondent "B" holding the three positions of Mayor, Road Supervisor and [fire company officer]. b. Complainant "A" believed it was inappropriate for Respondent "B" to use borough personnel and equipment on borough time to perform work on the [type of memorial] owned by the fire company where Respondent "B" serves as [fire company officer]. 22. The reverse side of the SEC complaint forms filed by Complainant "A" on November 18, 2005, and January 20, 2006, includes a reprint of Sections 1110 (a) and 1110(b) of the Ethics Act regarding a wrongful use of the act. a. Section 1110(a) provides: A person who signs a complaint alleging a violation of this act against another is subject to liability for wrongful use of this act if: 1. The complaint was frivolous * *, as defined by this act, or without probable cause and made primarily for a purpose other than that of reporting a violation of this act; or 2. He publicly disclosed or caused to be disclosed that a complaint against a person had been filed with the commission. b. Section 1110(b) provides: A person who signs a complaint alleging a violation of this act has probable cause for doing so if he reasonable [sic] believes in the existence of the facts upon which the claim is based and either: 1. Reasonably believes that under those facts the complaint may be valid under this act; or 2. Believes to this effect in reliance upon the advice of counsel, sought in good faith and given after full disclosure of all relevant facts within his knowledge and information. ** "Frivolous Complaint" - A complaint filed in a grossly negligent manner without basis in law or fact. 23. Complainant "A" filed three complaints with the State Ethics Commission within a four month period of time alleging that Respondent "B," Borough "D" Mayor, violated provisions of the Ethics Act. a. All four [sic] complaints alleged a conflict for Respondent "B" to hold the position of mayor and be compensated as borough road supervisor. b. Complainant "A" filed the complaints even after being advised by the borough solicitor of specific provisions of the borough code which authorized the mayor to hold and receive compensation as road supervisor. c. Complainant "A" also filed a civil action regarding the mayor's simultaneous service which was dismissed in part, due to the provisions of the borough code authorizing the holding of both positions. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 6 B. Testimon 24. Solicitor "H" has served as solicitor of Borough "D" since [month, year]. a. Solicitor "H" testified that there is a specific Section of the Borough Code that permits borough officials to serve in borough employee positions if the borough population is less than 3,000. b. It was the opinion of Solicitor "H" that Council Person "G" could serve as Borough Assistant Secretary, and Solicitor "H" so indicated at the Borough "D" Council meeting on [date 3]. (ID 5 -15). c. Solicitor "H" testified that over a period of time, there were multiple legal matters and lawsuits that had been filed by either Individual "F," Complainant "A," or both against the Borough or elected Borough officials. (ID 5 -19; ID 5- 23; ID 5 -26; ID 5 -30; ID 5 -34; ID 5 -38). d. The lawsuits filed by Individual "F" and Complainant "A" against Borough "D" under docket numbers [Docket Number 1] and [Docket Number 2] were consolidated. e. ID 6 -40 -52 consists of Preliminary Objections and a supporting Brief filed on behalf of the Borough with respect to the amended complaint filed by Individual "F" and Complainant "A" under the consolidated cases at [Docket Number 1] and [Docket Number 2]. f. Based upon Preliminary Objections filed by the Borough, the lawsuits filed by Individual "F" and Complainant "A" against Borough "D" under [Docket Number 1] and [Docket Number 2] were dismissed with prejudice by a one - sentence Court Order, which indicated that the Plaintiffs had not appeared. (ID 6 -53; see, Fact Finding 31 e). g. h. Solicitor "H" testified that as Borough road supervisor, Respondent "B" was considered an employee of the Borough. J. Solicitor "H" testified that the position of road supervisor is not a Borough office. Solicitor "H" testified that Fire Company "I" ( "Fire Company ") is a completely separate organization set up outside of the Borough "D" structure. Solicitor "H" testified that Respondent "B's" position with the Fire Company is not a Borough office. k. The population of Borough "D" is less than 3,000. I. Solicitor "H" testified that Individual "F" and Complainant "A" knew the population of the Borough was less than 3,000, based upon petitions they had filed to reduce the size of Council. 25. Robert Caruso is the Deputy Executive Director and Director of Investigations for the State Ethics Commission. a. ID 2 -1 -5 consists of a complaint with attachment filed by Complainant "A" with the State Ethics Commission. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 7 (1) This complaint was assigned number 315 and was received by the Investigative Division of the Commission on November 18, 2005. (2) This complaint was filed against Respondent "B." (3) By letter dated December 9, 2005, Complainant "A" was informed that no investigation would be commenced as to this complaint for the stated reason that the complaint failed to provide sufficient specific information to allow a determination as to whether these matters should be further processed. (ID 2 -6). b. ID 3 -1 -11 consists of a complaint with attachments filed by Complainant "A" with the State Ethics Commission. (1) This complaint was assigned number 327 and was received by the Investigative Division of the Commission on November 18, 2005. (2) This complaint was filed against Respondent "B." (3) On December 14, 2005, a preliminary inquiry was opened as to this complaint and the matter was assigned docket number 05 -058. (ID 3- 13). (4) By letter dated February 27, 2006, Respondent "B" was notified that following a preliminary inquiry, a full investigation would not be commenced based upon a lack of sufficient evidence to support a finding of probable cause that the Ethics Act had been violated and based upon the fact that the activity in question appeared to be permitted under the Borough Code. (ID 3 -14). (a) A copy of this letter was provided to Complainant "A." c. ID 4 -1 -16 consists of the third complaint with attachments filed by Complainant "A" with the State Ethics Commission. (1) This complaint was assigned number 27 and was received by the Investigative Division of the Commission on January 20, 2006. (2) This complaint was filed against Council Person "G" and Respondent (3) By letter dated January 23, 2006, Complainant "A" was informed: (1) that the information submitted as to Respondent "B" had previously been submitted by Complainant "A" and was being investigated under case number 05 -058, such that no additional investigation would be initiated; and (2) that the complaint as to Council Person "G" did not provide any evidence of a use of the authority of public office by Council Person "G" and failed to provide sufficient specific information to allow a determination as to whether the matter should be further pursued. (ID 4 -17). 26. Complainant "A" is a private citizen and resident of Borough "D." (See, Fact Finding 7). a. Complainant "A" testified that he /she and Individual "F" were the Borough watchdogs and looked out for the public's interests at Borough meetings. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 8 b. Complainant "A" testified that in response to requests for ordinances or resolutions authorizing the positions held by Respondent "B" and Council Person "G," he /she was informed that the documents did not exist. (1) It was the view of Complainant "A" that in the absence of such ordinances or resolutions, the positions for which Respondent "B" and Council Person "G" were being compensated did not exist. c. Complainant "A" testified that he /she did receive a resolution referring to the Section of the Borough Code providing for the Assistant Secretary to perform the duties of the Secretary in the event of the absence or disability of the Secretary. d. Complainant "A" testified that the last two employees hired by the Borough were individuals involved with the Fire Company. (1) Complainant "A" testified that these positions were filled without being publicly advertised. (2) Complainant "A" testified that by giving members of the Fire Company jobs, Respondent "B" was getting their votes for re- election to office. e. The Fire Company sells water to people living in Borough "D." f. Complainant "A" testified that Respondent "B" drove the Fire Company tanker selling water to residents when he /she was supposed to be working on Borough time as road supervisor. (1) Complainant "A" testified that the tanker was damaging the Borough roads, which had a six -ton weight limit by ordinance. (a) Complainant "A" testified that the Fire Company profited by Respondent "B's" failure to enforce the weight -limit ordinance. (2) Complainant "A" testified that the damage to the Borough roads caused by the Fire Company tanker had to be repaired at taxpayer expense. g. Complainant "A" did not include in his /her complaints an allegation that Respondent "B" drove the Fire Company tanker selling water to residents when he /she was supposed to be working on Borough time as road supervisor. (a) Complainant "A" testified that he /she did not have proof for such an allegation, as he /she and Individual "F" were not able to access the necessary logs. Complainant "A" testified that Respondent "B" used the Borough truck and road crew at taxpayer expense to do work on the [type of memorial] on property owned by the Fire Company. h. Complainant "A" testified that when the last lawsuit filed by Complainant "A" and Individual "F" against Respondent "B" was dismissed with prejudice, the only avenue remaining was the Ethics Commission. (3) (1) Complainant "A" testified that Complainant "A" and Individual "F" had been found to have no standing to bring their charges forward in Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 9 C. Documents 27. ID 2 -1 -5 consists of a complaint with attachment filed by Complainant "A" with the State Ethics Commission. a. This complaint was assigned number 315 and was received by the Investigative Division of the Commission on November 18, 2005. b. This complaint was filed against Respondent "B." c. The complaint alleges that Respondent "B" used his /her position as Borough "D" Mayor to have a Councilperson sell [sponsor items] for a private [type of memorial] owned by a fire company where the Mayor also serves as [fire company officer]. d. The complaint alleges that Respondent "B" and a Councilperson misued their Borough positions by getting involved in a fund raising event for a memorial owned by the fire company where the Mayor serves as [fire company officer]. e. The complaint alleges that Respondent "B" used a Borough truck and personnel to move the [sponsor items] and material to the memorial owned by the fire company where the Mayor serves as [fire company officer]. (1) The complaint avers that Borough equipment and personnel should not have been used on private property for a private memorial. f. The complaint alleges that it is improper for Respondent "B" to simultaneously hold the positions of Mayor, road supervisor, and [fire company officer]. By letter dated December 9, 2005, Complainant "A" was informed that no investigation would be commenced as to this complaint for the stated reason that the complaint failed to provide sufficient specific information to allow a determination as to whether these matters should be further processed. (ID 2 -6). g. litigation. 28. ID 3 -1 -11 consists of a complaint with attachments filed by Complainant "A" with the State Ethics Commission. a. This complaint was assigned number 327 and was received by the Investigative Division of the Commission on November 18, 2005. b. This complaint was filed against Respondent "B." c. This complaint alleges improper simultaneous service by Respondent "B" as Mayor, compensated road supervisor, and [fire company officer]. d. The complaint cites the Borough Code as prohibiting a mayor from being compensated for holding another borough office. e. The complaint notes the potential for someone holding all three of the aforesaid positions to veto ordinances including the annual tax ordinance if he /she feels there is not enough money given to the fire company or to the road department. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 10 f. On December 14, 2005, a preliminary inquiry was opened as to this complaint and the matter was assigned docket number 05 -058. (ID 3 -13). By letter dated February 27, 2006, Respondent "B" was notified that following a preliminary inquiry, a full investigation would not be commenced based upon a lack of sufficient evidence to support a finding of probable cause that the Ethics Act had been violated and based upon the fact that the activity in question appeared to be permitted under the Borough Code. (ID 3 -14). g. 29. ID 4 -1 -16 consists of the third complaint with attachments filed by Complainant "A" with the State Ethics Commission. a. This complaint was assigned number 27 and was received by the Investigative Division of the Commission on January 20, 2006. b. This complaint was filed against Council Person "G" and Respondent "B." c. With regard to Council Person "G," the complaint objects to the procedure by which Council Person "G" was elected to a four -year seat without resigning his /her two -year seat. d. With regard to Council Person "G," the complaint alleges that as a Council Person holding the position of Borough Assistant Secretary, Council Person "G" receives compensation in the latter position contrary to the Borough Code. e. With regard to Respondent "B," the complaint alleges simultaneous service by Respondent "B" as Mayor, compensated road supervisor, and [fire company officer]. (1) The complaint alleges that as Mayor, Respondent "B" is prohibited under the Borough Code from being compensated as road supervisor. f. By letter dated January 23, 2006, Complainant "A" was informed: (1) that the information submitted as to Respondent "B" had previously been submitted by Complainant "A" and was being investigated under case number 05 -058, such that no additional investigation would be initiated; and (2) that the complaint as to Council Person "G" did not provide any evidence of a use of the authority of public office by Council Person "G" and failed to provide sufficient specific information to allow a determination as to whether the matter should be further pursued. (ID 4 -17). 30. ID 5 -1 -38 consists of certified copies of Borough "D" Council meeting minutes for Regular Council Meetings held the following dates: [date 1]; [date 2]; [date 3]; [date 4]; [date 5]; [date 6]; [date 7]; [date 8]; and [date 9]. a. The Borough "D" Council meeting minutes for the Regular Council Meeting on [date 1 ] include approval of a motion to hire Respondent "B" as the part - time supervisor for the road department at [rate] per hour. (ID 5 -4). b. The Borough "D" Council meeting minutes for the Regular Council Meeting on [date 2] included commentary by Individual "F" that Council would be voting on a multi -year agreement with the Road Department and a question of whether the agreement would include the Mayor /Road Department Supervisor. (ID 5 -6). Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 11 (1) Individual "F" was informed that the agreement would include the Mayor /Road Department Supervisor. (ID 5 -6). (2) A resolution was adopted authorizing the proper Borough officials to sign the agreement with the Road Department. (ID 5 -9). c. The Borough "D" Council meeting minutes for the Regular Council Meeting on [date 3] include approval of a motion to adopt a resolution naming Council Person "G" as Assistant Secretary at the current rate." (ID 5 -15). (1) Complainant "A" questioned if a Councilperson could hold this position, and Solicitor "H" stated that according to the Borough Code, this was allowed. (ID 5 -15). (2) Council Person "G" abstained from the vote. (ID 5 -15). d. The Borough "D" Council meeting minutes for the Regular Council Meeting on [date 4] include a Solicitor's report in which Solicitor "H" stated that a Judge had dismissed a complaint from Individual "F" and Complainant "A" about the Mayor and ordinance enforcement. (ID 5 -19). (1) The minutes also refer to another meeting with a Judge regarding issues raised by Individual "F" and Complainant "A." (ID 5 -19). (2) The minutes refer to an October 20, 2003, executive session at which four lawsuits filed by Individual "F" and Complainant "A" were discussed, including three lawsuits against the Borough and one lawsuit against Respondent "B." (ID 5 -19). e. Council Person "G" prepared all of the Borough meeting minutes in evidence commencing with the minutes for the Regular Council Meeting on [date 3] -- when Council Person "G" was first appointed Assistant Secretary -- forward. (ID 5 -16, ID 5 -19, ID 5 -23, ID 5 -26, ID 5 -30, ID 5 -34, ID 5 -38). 31. ID 6 -1 -54 consists of copies of dockets and various filings in two lawsuits filed by Individual "F" and Complainant "A" against Borough "D" under [Docket Number 1] and [Docket Number 2]. a. ID 6 -22 -26 consists of the Complaint filed by Individual "F" and Complainant "A" against Borough "D" under [Docket Number 1], which complaint pertained, inter alia, to Council Person "G" serving as the Borough's compensated Assistant Secretary (ID 6 -24). b. ID 6 -3 -7 consists of the Complaint filed by Individual "F" and Complainant "A" against Borough "D" under [Docket Number 2], which complaint pertained to Respondent "B" serving as Mayor and being compensated for the position of Borough road supervisor. (ID 6 -5). c. These lawsuits under [Docket Number 1] and [Docket Number 2] were consolidated. d. ID 6 -40 -52 consists of Preliminary Objections and a supporting Brief filed on behalf of the Borough with respect to the amended complaint filed by Individual "F" and Complainant "A" under the consolidated cases at [Docket Number 1] and [Docket Number 2]. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 12 (1) The Preliminary Objections included assertions of Plaintiffs' lack of standing; the permissibility under the Borough Code of elected borough officials serving as borough employees where the population of the borough is less than 3,000; and the permissibility under the Borough Code of Council Person "G's" service as Borough Assistant Secretary. (ID 6- 40 -45). (2) The Brief includes the following statement: "Further, to the extent that the Borough has improperly compensated the Assistant Secretary, this issue could be addressed and resolved through the audit procedures pursuant to the Borough Code." (ID 6 -47; ID 6 -50). e. Based upon the Preliminary Objections filed by the Borough, the lawsuits filed by Individual "F" and Complainant "A" against Borough "D" under [Docket Number 1 ] and [Docket Number 2] were dismissed with prejudice by a one - sentence Court Order. (ID 6 -53). (1) (2) The Order indicated that the Plaintiffs had not appeared. (ID 6 -53). From the face of the Order (ID 6 -53), it cannot be determined whether the Order was issued based upon lack of standing or any other particular Preliminary Objection. 32. ID 8 -1 consists of a copy of 53 P.S. § 46104, which provides, in pertinent part, as follows: § 46104. Appointments; incompatible offices Unless there is incompatibility in fact, any elective or appointive officer of the borough shall be eligible to serve on any board, commission, bureau or other agency created by or for the borough, or any borough office created or authorized by statute and may accept appointments thereunder, but no mayor or member of council shall receive compensation therefor. No elected borough official of a borough with a population of 3,000 or more may serve as an employe of that borough.... 53 P.S. § 46104. 33. ID 8 -2 consists of a copy of 53 P.S. § 46112, which provides as follows: § 46112. Assistant secretary Every borough council may, by resolution, appoint an assistant secretary who shall, in the absence or disability of the secretary, perform the duties and exercise the powers of the secretary. The assistant secretary may be appointed from the membership of the borough council, but shall not be any other officer thereof. 53 P.S. § 46112. III. DISCUSSION: Complainant "A" is a private citizen who filed complaints with this Commission against Respondent "B," Mayor of Borough "D" ( "Borough "), and Council Person "G," a Member of Borough Council. As a Complainant, Complainant "A" is subject to the wrongful use of act provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), and Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 13 particularly 65 Pa.C.S. § 1110(a)(1). The allegation before us is that Complainant "A" violated Section 1110(a)(1) of the Ethics Act when he /she filed, or caused to be filed, a complaint against Respondent "B" knowing that the complaint that was filed was frivolous and without basis in law and fact. Section 1110(a)(1) of the Ethics Act provides that a wrongful use of the Ethics Act occurs: (1) if a complaint was frivolous; or (2) if a complaint was filed without probable cause and was made primarily for a purpose other than reporting an Ethics Act violation. See, 65 Pa.C.S. § 1110(a)(1); 51 Pa. Code § 25.1(1) -(2); In Re: Ms. A, Order 1056. The term "frivolous complaint" is defined in the Ethics Act as "[a] complaint filed in a grossly negligent manner without basis in law or fact." 65 Pa.C.S. § 1102. This Commission's Regulations define the term "gross negligence" as "[t]he failure to perform a manifest duty in reckless disregard of the consequences or a gross want of care and regard for the rights of others as to justify the presumption of willfulness and wantonness." 51 Pa. Code § 11.1. The criteria pertaining to probable cause are set forth in the Ethics Act as follows: Section 1110. Wrongful use of chapter (b) Probable cause. - -A person who signs a complaint alleging a violation of this chapter has probable cause for doing so if he reasonably believes in the existence of the facts upon which the claim is based and either: (1) reasonably believes that under those facts the complaint may be valid under this chapter; or (2) believes to this effect in reliance upon the advice of counsel, sought in good faith and given after full disclosure of all relevant facts within his knowledge and information. 65 Pa.C.S. § 1110(b). Factually, Complainant "A" considers himself /herself a watchdog of Borough "D" government. Complainant "A" and Individual "F" have been active in protesting certain actions of Borough "D" Council. Complainant "A" and Individual "F" have filed multiple lawsuits against the Borough or Borough officials. Borough "D" records confirm that Respondent "B" was hired as the part -time supervisor for the Borough road department on [date 1]. Complainant "A" challenged the legality of hiring Respondent "B" as road supervisor while Respondent "B" simultaneously served as Mayor. The Borough Code provides, in pertinent part, as follows: § 46104. Appointments; incompatible offices Unless there is incompatibility in fact, any elective or appointive officer of the borough shall be eligible to serve on any board, commission, bureau or other agency created by or for the borough, or any borough office created or authorized by statute and may accept appointments thereunder, but no mayor or member of council shall receive compensation therefor. No elected borough Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 14 official of a borough with a population of 3,000 or more may serve as an employe of that borough.... 53 P.S. § 46104 (Emphasis added). The evidence before us establishes that the population of the Borough is less than 3,000 and that at all times relevant to this matter, Complainant "A" has been aware of that fact. On at least two occasions, Borough Solicitor "H" advised Complainant "A" that Section 1104 of the Borough Code was not applicable to the hiring of Respondent "B." During the time period relevant to this case, in addition to serving as Borough Mayor and Borough road supervisor, Respondent "B" has also served as [fire company officer] of Fire Company "I" ( "Fire Company "). Solicitor "H" testified that the Fire Company is a completely separate organization set up outside of the Borough "D" structure. Borough "D" meeting minutes confirm that Council Person "G" was hired as Assistant Secretary of the Borough at the [date 3] regular meeting of Borough Council. Complainant "A" was present at the meeting. Complainant "A" asked the solicitor whether it would be possible for a council person to fill in as an assistant secretary. The Borough Code provides, in pertinent part, as follows: § 46112. Assistant secretary Every borough council may, by resolution, appoint an assistant secretary who shall, in the absence or disability of the secretary, perform the duties and exercise the powers of the secretary. The assistant secretary may be appointed from the membership of the borough council, but shall not be any other officer thereof. 53 P.S. § 46112. Prior to filing complaints with this Commission, Complainant "A" and Individual "F" filed lawsuits under [Docket Number 1] and [Docket Number 2] alleging violations of the Borough Code with respect to Respondent "B's" simultaneous service as Mayor and compensated road supervisor and Council Person "G's" service as the Borough's compensated Assistant Secretary. These lawsuits were consolidated. Preliminary Objections and a supporting Brief were filed on behalf of the Borough. The Preliminary Objections included assertions of Plaintiffs' lack of standing; the permissibility under the Borough Code of elected borough officials serving as borough employees where the population of the borough is less than 3,000; and the permissibility under the Borough Code of Council Person "G's" service as Borough Assistant Secretary. ID 6- 40 -45. The Brief included a statement that could have been construed as supporting Plaintiffs' position regarding Council Person "G." Based upon the Preliminary Objections, the aforesaid lawsuits were dismissed with prejudice by a one - sentence Court Order, which indicated that the Plaintiffs had not appeared. (ID 6 -53). From the face of the Order (ID 6 -53), it cannot be determined whether the Order was issued based upon lack of standing or any other particular Preliminary Objection. It was Complainant "A's" testimony that it had been determined that he /she and Individual "F" lacked standing to file such lawsuits. Per admitted Fact Finding 23 c, the dismissal was partially due to the provisions of the Borough Code authorizing Respondent "B" to simultaneously hold both positions as Borough mayor and road supervisor. The court filings within the record before us do not include any analysis by the Court on the merits of Complainant "A's" and Individual "F's" substantive claims in these lawsuits. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 15 It was Complainant "A's" testimony that when the last lawsuit filed by Complainant "A" and Individual "F" against Respondent "B" was dismissed with prejudice, this Commission was the only avenue available to Complainant "A." On November 18, 2005, Complainant "A" filed two complaints with this Commission against Respondent "B" as detailed in Fact Findings 27 -28. On January 20, 2006, Complainant "A" filed a complaint with this Commission against both Council Person "G" and Respondent "B," as detailed in Fact Finding 29. The Complaint filed against Respondent "B" in evidence as ID 2 -1 -5 alleged, inter alia, that it is improper for Respondent "B" to simultaneously hold the positions of Mayor, road supervisor, and [fire company officer]. The Complaint further alleged that Respondent "B" used a Borough truck and personnel to move [sponsor items] and material to the memorial owned by the fire company where the Mayor serves as [fire company officer]. By letter dated December 9, 2005, Complainant "A" was informed that no investigation would be commenced as to this complaint for the stated reason that the complaint failed to provide sufficient specific information to allow a determination as to whether the matters referenced in the complaint should be further processed. (ID 2 -6). The Complaint filed against Respondent "B" in evidence as ID 3 -1 -11 alleged improper simultaneous service by Respondent "B" as Mayor, compensated road supervisor, and [fire company officer]. The complaint cited the Borough Code as prohibiting a mayor from being compensated for holding another borough office. The complaint noted the potential for someone holding all three of the aforesaid positions to veto ordinances including the annual tax ordinance if he /she would feel there was not enough money given to the fire company or to the road department. On December 14, 2005, a preliminary inquiry was opened as to this complaint and the matter was assigned docket number 05 -058. (ID 3 -13). By letter dated February 27, 2006, Respondent "B" was notified that following a preliminary inquiry, a full investigation would not be commenced based upon a lack of sufficient evidence to support a finding of probable cause that the Ethics Act had been violated and based upon the fact that the activity in question appeared to be permitted under the Borough Code. (ID 3 -14). A copy of this letter was provided to Complainant "A." The January 20, 2006, Complaint filed against both Council Person "G" and Respondent "B" (ID 4 -1 -16) alleged, inter alia, that as a Council Person holding the position of Borough Assistant Secretary, Council Person "G" received compensation in the latter position contrary to the Borough Code. With regard to Respondent "B," the complaint alleged simultaneous service by Respondent "B" as Mayor, compensated road supervisor, and [fire company officer]. The complaint alleged that as Mayor, Respondent "B" was prohibited under the Borough Code from being compensated as road supervisor. By letter dated January 23, 2006, Complainant "A" was informed: (1) that the information submitted as to Respondent "B" had previously been submitted by Complainant "A" and was being investigated under case number 05 -058, such that no additional investigation would be initiated; and (2) that the complaint as to Council Person "G" did not provide any evidence of a use of the authority of public office by Council Person "G" and failed to provide sufficient specific information to allow a determination as to whether the matter should be further pursued. (ID 4 -17). The reverse side of the SEC complaint forms filed by Complainant "A" with this Commission included a reprint of Sections 1110(a) and 1110(b) of the Ethics Act regarding wrongful use of the Ethics Act. Both parties have filed briefs. The Investigative Division contends that Complainant "A" filed complaints with this Commission knowing that his /her position had Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 16 little basis. The Complainant contends that the Borough never created the positions of road supervisor and Assistant Secretary; that the Borough Code prohibits Council Person "G" and Respondent "B" from being compensated in such positions; and that Borough resources have been used for the benefit of the fire company. The Complainant also notes Advice of Counsel [number], which addressed certain conflict of interest questions posed under the Ethics Act as to Council Person "G," but which expressly did not address the Borough Code. Having highlighted the facts, we must now determine whether Complainant "A" wrongfully used the Ethics Act when he /she filed the three aforesaid complaints with this Commission. A violation of the Ethics Act must be based upon clear and convincing proof. 65 Pa.C.S. § 1108(g). Clear and convincing proof is "so `clear, direct, weighty, and convincing as to enable the trier of fact to come to a clear conviction, without hesitance, of the truth of the precise facts in issue." In Re: Charles E.D.M., 550 Pa. 595, 601, 708 A.2d 88, 91 (Pa. 1998) (Citation omitted). In Yakin, Order 999, we interpreted the Ethics Act's definition of the term "frivolous complaint" as follows: Id. at 14 -15. As to probable cause, we stated: Within the meaning of the Ethics Law, we find that probable cause is a reasonable ground of suspicion which is supported by circumstances sufficient to warrant an ordinary prudent person in the same situation to believe that the individual against whom the complaint was filed violated the Ethics Law. Id. at 15. Id. We determine that the Ethics Law's definition of "frivolous complaint," i.e., "A complaint filed in a grossly negligent manner without basis in law or fact," means a complaint which is filed based upon mere suspicion or speculation and an indisputably meritless legal theory, and which has been filed with substantially more than ordinary carelessness, inadvertence, laxity or indifference, and a reckless disregard for the consequences. We further stated: The standard is stringent. It was meant to be stringent. In drafting this provision, the Legislature was necessarily mindful of the chilling effect which wrongful use of Act cases would bring to the filing of complaints with this Commission. The Legislature clearly intended that findings of wrongful use of Act be restricted to egregious situations. We determine that the stringent standard for establishing a wrongful use of act under Section 1110(a)(1) of the Ethics Act has not been met in this case. Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 17 We initially note that in the litigation under [Docket Number 1 ] and [Docket Number 2], which preceded the filing of complaints with this Commission, the Complainant did not receive a judicial analysis of the merits of Complainant's claims. Additionally, each complaint subsequently filed with this Commission contained some factual basis and a legal theory that was not indisputably meritless. The Complaints filed against Respondent "B" alleged, inter alia, that: (1) it was improper for Respondent "B" to simultaneously hold the positions of Mayor, compensated road supervisor, and [fire company officer]; and (2) that Respondent "B" used a Borough truck and personnel to move [sponsor items] and material to the memorial owned by the fire company where the Mayor serves as [fire company officer]. As to the former, a reasonably prudent person might not grasp the nuances of legal distinctions between positions of employment and offices. As to the latter, there are numerous Commission precedents holding that the use of government staff, time, equipment, facilities, or property for non - governmental purposes — including business, personal, or political purposes —is generally prohibited and may form the basis for a violation of Section 1103(a) of the Ethics Act. See, e.q., Heck, Order 1251, Holt, Order 1153 (business purposes); Moore, Order 1317, Meduka, Order 1277, Sullivan, Order 1245, Dovidio, Order 1202 (personal purposes); Habay, Order 1313, Livingston, Order 1030, Rockefeller, Order 1004, Freind, Order 800 (political purposes). This Commission has long held that government offices, facilities, equipment, and personnel are to be used for governmental purposes and not for private, business or campaign /re- election activities. See, Smythe, Order 1121; Rakowsky, Order 943; Eck, Order 787; Freind, supra; Ferlo, Opinion 97 -005. The Complaint filed against both Respondent "B" and Council Person "G" alleged, inter alia, that as a Council Person holding the position of Borough Assistant Secretary, Council Person "G" received compensation in the latter position contrary to the Borough Code. Given: that 53 P.S. § 46104 on its face prohibits a borough council person from being compensated for holding another borough office; that 53 P.S. § 46112 provides that "[t]he assistant secretary may be appointed from the membership of the borough council, but shall not be any other officer thereof "; and that a statement in a brief filed on behalf of the Borough in the aforesaid litigation could have been construed to support the Complainant's position, we find that the Complainant's legal theory was not indisputably meritless. Additionally, we determine that based upon all of the above, the complaints were supported by circumstances sufficient to warrant an ordinary prudent person in the same situation to believe that the individuals against whom the complaints were filed had violated the Ethics Act, and that the complaints were not filed primarily for a purpose other than reporting a violation of the Ethics Act. We find that the Complainant was sincere in his /her perceived role as a Borough watchdog, and that he /she believed the Ethics Act afforded a basis for his /her complaints. Based upon the above analysis, we find no wrongful use of act as to the three particular complaints before us for review. However, we strongly caution the Complainant that this Commission is not a filing location for every grievance a Borough citizen might have against Borough government. The Complainant would do well to seek legal advice as to the merits of his /her claims prior to filing any future complaints with this Commission. IV. CONCLUSIONS OF LAW: 1. Complainant "A," a private citizen and resident of Borough "D" who on November 18, 2005, and January 20, 2006, filed certain complaints with this Commission against Respondent "B," Mayor of Borough "D" ( "Borough "), and Council Person Complainant A, 06 -024 ID # 06 -024; LD # 06- 024 -WUA (A &B) Page 18 "G," a Member of Borough Council, is a Complainant subject to the wrongful use of act provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), and specifically Section 1110(a)(1) of the Ethics Act, 65 Pa.C.S. § 1110(a)(1). 2. Complainant "A" did not violate Section 1110(a)(1) of the Ethics Act as to the filing of a frivolous complaint with this Commission in that the aforesaid complaints filed by Complainant "A" were not filed in a grossly negligent manner without basis in law or fact. 3. Complainant "A" did not violate Section 1110(a)(1) of the Ethics Act as to the filing of a complaint without probable cause and primarily for a purpose other than that of reporting a violation of the Ethics Act, in that the complaints were supported by circumstances sufficient to warrant an ordinary prudent person in the same situation to believe that the individuals against whom the complaints were filed had violated the Ethics Act, and the complaints were not filed primarily for a purpose other than that of reporting a violation of the Ethics Act. In Re: Complainant "A," Respondent File Docket: ID # 06 -024 LD # 06- 024 -WUA (A &B) Date Decided: 6/11/07 Date Mailed: 6/29/07 ORDER NO. 1442 1 Complainant "A," a private citizen and resident of Borough "D" who on November 18, 2005, and January 20, 2006, filed certain complaints with this Commission against Respondent "B," Mayor of Borough "D" ( "Borough "), and Council Person ," a Member of Borough Council, did not violate Section 1110(a)(1) of the Ethics Act as to the filing of a frivolous complaint with this Commission in that the aforesaid complaints filed by Complainant "A" were not filed in a grossly negligent manner without basis in law or fact. 2. Complainant "A" did not violate Section 1110(a)(1) of the Ethics Act as to the filing of a complaint without probable cause and primarily for a purpose other than that of reporting a violation of the Ethics Act, in that the complaints were supported by circumstances sufficient to warrant an ordinary prudent person in the same situation to believe that the individuals against whom the complaints were filed had violated the Ethics Act, and the complaints were not filed primarily for a purpose other than that of reporting a violation of the Ethics Act. BY THE COMMISSION, Louis W. Fryman, Chair