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In Re: Vince Arcurio,
Respondent
STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120-0400
File Docket:
X-ref:
Date Decided:
Date Mailed:
FACSIMILE: 717-787-0806
WEBSITE: www.efhlcs.pa.aOV
18-005
Order No. 1764
1 /22/20
1 /27/20
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePaima
Michael A. Schwartz
Shelley Y. Simms
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding possible violation(s) of the Public Official and Employee Ethics
Act ("Ethics Act"), 65 Pa-C.S. § 1101 et se ., 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." A Stipulation of Findings and a Consent Agreement were
subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
ALLEGATIONS:
That Vincent Arcurio, a public official/public employee in his capacity as a Member
of the Greater Johnstown School District Board of Directors, Cambria County, violated
Sections 1103(a) and 1105(b)(3) of the State Ethics Act (Act 93 of 1998) when he utilized
the authority of his public pose ion for the private pecuniary benefit of himself, a member
of his immediate family, and/or a business with which members of his immediate family
are associated, when he participated in discussions and actions of the Board of Directors
to create positions of employment in the District at a time when he knew his wife was an
applicant which then enabled the hiring andlor promotion of his wife to multiple positions
o em toymeat within the District; when he participated in discussions and actions of the
Boardpof Directors to approve/acquire funding/contracts between the District and the
Cambria County Child Develo merit Corporation, a business with which his father is
associated; and when he failedpto complete and/or disclose any real estate interests, as
required byy the Ethics Act, on Statements of Financial Interests filed for calendar years
2013 and 2014.
II. FINDINGS:
1. Vincent Arcurio ("Arcurio") served as a School Director for the Greater Johnstown
School District ("District"), Cambria County, from December 5, 2005, through
August 7, 2018.
a. Arcurio served as Vice Chairman of the Buildings & Operations Committee
from December 5, 2005, to December 4, 2006.
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b. Arcurio served as Chairman of the Buildings & Operations Committee from
December 5, 2006, to August 7, 2018.
C. Arcurio voluntarily resigned from the District School Board ("Board") on
August 7, 2018,
2. The District is governed by a nine -Member Board.
a. Members of the Board are appointed to various Board Committees
("Committees") during the reorganizational meeting held in December of
each year.
1. The Committees in existence at the District are:
aa. Personnel & Negotiations;
bb. Education;
cc. Cafeteria;
dd. Athletic & Student Activities; and
ee. Buildings & Operations.
2. The President of the Board is responsible for appointing the
Members of the Board to the various Committees.
3. Committees are typically comprised of two Board Members.
a. The Chairman and Vice Chairman of the Board also serve on Committees.
4. The Committees hold one joint meeting per month on the first Tuesday of each
month.
a. The purpose of the joint Committee meeting is to verbally present the
Committee agendas to the public.
1. Each Committee Chairman is responsible for reading aloud the
agenda prepared for that Committee.
aa. The Committee Vice Chairman is responsible for reading the
agenda in the Chairman's absence.
b. The Committee agendas are utilized to guide action which is to occur during
the Board's legislative meetings.
5. The Board holds an executive session immediately upon the conclusion of the joint
Committee meeting.
a. The executive session is held to discuss any personnel matters that are
documented on the Personnel & Negotiations Committee agenda for action
at the legislative meeting.
1. Pending personnel matters are routinely documented on the
Personnel & Negotiations Committee agenda.
6. The Board's regularly scheduled legislative meeting is held immediately after the
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conclusion of the executive session.
a. Prepared motions documented on the Committee agendas are formally
voted on by the Board during the legislative meeting.
1. Each motion scheduled for action is designated by a letter/number
combination.
7. The Board holds special meetings as necessary.
a. A joint Committee meeting is held prior to the start of any special legislative
meeting.
8. Voting at Board meetings occurs via a group aye/nay voice vote.
a. Any abstention or objection cast triggers an individual roll call vote.
9. The District utilizes abstention forms to document abstentions by individual Board
Members.
a. Board Members do not verbalize the reason for casting an abstention.
10. Board Secretary Debora Crowder ("Crowder") reviews the Committee agendas
prior to the start of each joint Committee meeting to identify whether a Board
Member may have a potential conflict of interest based on the motions
documented within the agendas.
a. Crowder completes abstention forms for any Board Members she believes
might have a conflict of interest.
b. Crowder occasionally consults with the District Solicitor if she is unsure
whether an abstention form should be completed for a Member of the
Board.
11. The District's abstention form requires that the abstaining Board Member disclose
the following information:
a. The Board Member's name;
b. The date of the legislative meeting at which the abstention was cast;
C. The motion from which the Board Member abstained; and
d. The reason(s) for the abstention(s).
12. Crowder provides the completed abstention form(s) to the applicable Board
Member(s) immediately prior to the start of each joint Committee meeting.
a. Board Members determine which motions require abstentions based on the
abstention forms provided by Crowder.
b. The Board Members sign and date their respective abstention form(s) and
return them to Crowder after each Board meeting.
C. Crowder includes the completed abstention forms with the corresponding
approved meeting minutes.
d. Crowder completed abstention forms as a matter of convenience for
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Members of the Board.
e. Regardless of whether or not Crowder provided an abstention form, it is the
individual Board Member's responsibility to abstain from action and/or
comport with applicable provisions of the Ethics Act.
13. The Board Members typically did not consult with former District Solicitor John
Kuzmiak ("Kuzmiak") regarding the motions and/or votes from which they must
abstain.
a. Kuzmiak served as District Solicitor from approximately December 1998 to
December 3, 2017.
14. The Board directed Kuzmiak to provide legal advice onlywhen specifically
requested by the Board and not to voluntarily provide legal advice.
a. Kuzmiak routinely informed Board Members verbally of potential conflicts of
interests, including not voting to hire their own family members, and not to
approve payments to themselves or their family members via an official
vote, even though Board Members did not specifically request such legal
advice.
15. Between 2005 and 2018, Members of the Board, including Arcurio, Cindy Ahlborn,
Daniel Tomak, Gene Pentz, and Richard Unger ("Unger"), filed multiple abstention
forms.
a. The abstention forms related to the employment of immediate and/or
secondary family members and payments to be made to themselves and/or
businesses with which they or immediate family members arelwere
associated.
16. The Board approves the Committee meeting minutes and legislative meeting
minutes for accuracy at each subsequent legislative meeting.
a. The District does not audio or video record the Committee and/or legislative
meetings.
b. Crowder generates the Committee meeting minutes and legislative meeting
minutes based on her notes.
17. Board Members receive a meeting packet the Friday before each legislative
meeting.
a. The meeting packet contains draft meeting minutes, Committee agendas,
correspondence, etc.
b. The meeting packets are delivered to each Board Member's residence by a
District employee.
18. A bill list is voted on for approval at each regularly scheduled legislative meeting.
a. The bill list details all the bills received by the District for payment since the
last regularly scheduled legislative meeting.
b. The bill list documents the payee, a description of the bill, and the amount
to be paid.
C. Certain bills related to education are approved separately from the bill list
Arcurio, 18-005
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during the Education Committee portion of the meeting.
19. Signature authority over the District's financial accounts rests with the Board
President, the employed Board Secretary, and the Business Manager.
a. District checks require the signatures of at least two of the three authorized
signatories.
b. The majority of the District checks are automatically printed with the
computer -generated signatures of the authorized signatories.
C. The majority of the District's payroll is issued via direct deposit.
THE FOLLOWING RELATES TO EVIDENCE OBTAINED BY THE INVESTIGATIVE
DIVISION OF THE STATE ETHICS COMMISSION CONCERNING THE BOARD'S
PRACTICE OF MEETING AT THE UNION SOCIAL CLUB TO DISCUSS AND TO
REVIEW PERSONNEL MATTERS OUTSIDE OF REGULAR BOARD MEETINGS.
20. From 2004 to 2017, Board President Unger regularly scheduled/organized
meetings with multiple Board Members at the Union Social Club ("Social Club") to
discuss the matters identified on the Committee agendas.
a. The Social Club is a members -only establishment located at 57 Clinton
Street, Johnstown, PA 15901.
21. The Board Members attending the Social Club meetings discussed multiple topics,
including but not limited to applicants for employment with the District.
a. Unger would inform the Board of applicants for employment after meeting
with then -Superintendent Gerald Zahorchak ("Zahorchak") to discuss the
Committee agendas.
22. During the meetings at the Social Club, the Board routinely agreed to hire
applicants who were related to a Board Member and/or an individual known by a
Board Member.
a. The Board Members supported the hiring of each other's family members
and/or associates based on their understanding and expectation of
reciprocity for future hires.
b. Members of the Board who did not have a family member and/or associate
recently employed by the District were given preferential treatment to
present who they wanted the Board to hire.
23. The Board Members' understanding in relation to voting to hire each other's family
members and/or associates of a Board Member existed for over twenty years.
a. The Board believed that family members and/or associates of a Board
Member should be given preferential treatment in hiring since they could be
vouched for by a Board Member.
b. The understanding included that a Board Member would abstain from voting
for his/her family member's employment and in return would vote for other
Board Members' family member(s) when a vote was needed.
c. This "quid pro quo" understanding has enabled Board Members to abstain
from the hiring of their respective family members and/or associates to give
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the appearance that they did not effectuate the hiring of their respective
family members and/or associates.
d. The Board utilized this "quid pro quo" relationship to give the appearance
that the District's hiring process was impartial.
24. Although the Investigative Division obtained evidence of the foregoing, it did not
obtain evidence that the hiring or promotion of Amy Arcurio was discussed or was
the subject of any Social Club meetings.
a. The Investigative Division did not obtain evidence that the hiring or
promotion oT Amy Arcurio was in response to any quid pro quo action by
Arcurio.
THE FOLLOWING FINDINGS RELATE TO AMY ARCURIO'S EMPLOYMENT/
EDUCATIONAL HISTORY DURING THE TIME PERIOD OF 2002 TO THE PRESENT.
25. Amy Arcurio ("Ms. Arcurio") is Arcurio's spouse.
26. Ms. Arcurio was initially employed by the District from July 1, 2002, to August 9,
2010.
a. Ms. Arcurio began employment with the District prior to Arcurio's service as
a Board Member.
b. Ms. Arcurio served as a Third Grade Teacher at East Side Elementary
School from the 2002/2003 school year until the 2003/2004 school year and
served as a First Grade Teacher at East Side Elementary School from the
2004/2005 school year through the 2007/2008 school year.
C. Ms. Arcurio served as an Assistant Principal at East Side Elementary
School from the 2008/2009 school year until August 9, 2010.
I. Ms. Arcurio resigned as the Assistant Principal at East Side
Elementary School on August 9, 2010, in order to pursue
employment at Blacklick Valley School District.
27. Ms. Arcurio was employed at Blacklick Valley School District as the Elementary
Principal from August 10, 2010, to June 30, 2012.
a. Ms. Arcurio resigned from Blacklick Valley School District effective June 30,
2012, in order to accept a position of employment as the Principal of the
Freshman Academy at the District.
28. Ms. Arcurio has been continuously employed by the District since July 2, 2012.
a. Ms. Arcurio served as the District's Freshman Academy Principal from July
2, 2012, to July 1, 2015.
b. Ms. Arcurio served as an Assistant to the Superintendent from July 1, 2015,
to June 5, 2017.
C. Ms. Arcurio's title changed from Assistant to the Superintendent to Assistant
Superintendent on June 6, 2017,
Ms. Arcurio served as the Assistant Superintendent from June 6,
2017, to November 13, 2018.
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d. Ms. Arcurio has served as the District's Superintendent since November 13,
2018.
29. Ms. Arcurio's promotions with the District from 2012 through 2017 occurred while
Arcurio was a Board Member, and her promotion to Superintendent occurred after
Arcurio's resignation from the Board.
THE FOLLOWING FINDINGS RELATE TO THE EVENTS RESULTING IN MS.
ARCURIO BEING APPOINTED TO THE POSITION OF FRESHMAN ACADEMY
PRINCIPAL.
30. Beginning in or about early 2012, Unger and Arcurio met independently with
Zahorchak on multiple occasions to determine Zahorchak's interest in returning to
the District to serve as the Superintendent.
a. Zahorchak previously served as the Superintendent from July 1, 1997, to
April 7, 2003.
b. Zahorchak left in 2003 to take a position with the Pennsylvania Department
of Education ("Department of Education"), and he served as the
Pennsylvania Secretary of Education from February 7, 2006, until May 7,
2010.
C. Zahorchak returned to the District to serve as the Superintendent from July
1, 2012, to June 12, 2015.
31. At the time that Zahorchak was returning to the District, the District had been
receiving yearly "School Improvement Grants" from the Department of Education.
a. School Improvement Grants are given to Pennsylvania's lowest performing
schools to substantially raise the achievement of their students.
b. The District relied heavily on the yearly School Improvement Grants as a
funding source in order to meet its budget.
32. Although the District was receiving yearly School Improvement Grants, the District
was not meeting the achievement goals required by the Department of Education.
33. In order for the District to continue to receive the School Improvement Grant
funding, the Department of Education set forth stipulations within the District's
School Improvement Grants requiring the District to take certain actions.
a. One of the stipulations required the District to remove certain administrators
from the middle school and to hire outside personnel.
34. As part of the stipulation, Zahorchak contacted Ms. Arcurio to determine her
interest in leaving her position as the Elementary Principal at Blacklick Valley
School District to serve as the District's Freshman Academy Principal.
a. During Zahorchak's prior tenure as Superintendent (1997-2003), the District
had utilized a Freshman Academy, but it was phased out by District
Superintendent Barbara Parkins due to funding.
35. Ms. Arcurio expressed to Zahorchak that she had an interest in the position.
36. Ms. Arcurio discussed accepting the Freshman Academy Principal position with
Arcurio at or about the time she informed Zahorchak of her interest.
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37. On April 25, 2012, Ms. Arcurio submitted her letter of resignation to the Blacklick
Valley School District Superintendent.
38. At the May 29, 2012, Board meeting, the Board voted to create the position of
Freshman Academy Principal.
39. Ms. Arcurio submitted her letter of interest to Zahorchak on May 30, 2012.
40. Ms. Arcurio was hired as the District's Freshman Academy Principal at the June 5,
2012, Board meeting.
a. Arcurio abstained from the vote.
41. Ms. Arcurio held the position of Freshman Academy Principal from July 1, 2012,
until June 30, 2015.
42. Ms. Arcurio's compensation as the Freshman Academy Principal was as follows:
2012-2013 $87095.00 (As of July 1, 2012)
2013-2014 $90:579.00
2014-2015 $94,202.16
THE FOLLOWING FINDINGS RELATE TO THE PROMOTION OF MS. ARCURIO TO
THE POSITION OF ASSISTANT TO THE SUPERINTENDENT.
43. On or about June 5, 2012, Zahorchak organized a group of administrators
identified as the Executive Team.
a. The Executive Team consisted of the following administrators who
Zahorchak considered to be essential:
1.
Amy Arcurio
2.
Frank Frontino
3.
Doug Henry
4.
Michael Vuckovich
5.
Justin Zahorchak
6.
John Zahorchak
7.
Ray Arcurio
8.
James Cekada
9.
Darren Buchko
10.
Richard Lucas
11.
Michael Dadey
12.
Amy Lumadue
b. These individuals were employed as administrators, principals, and
department heads by the District.
44. The purpose of the Executive Team was to engage in team building exercises and
to create a vision for the District through various employee experiences.
a. The Executive Team met at least once a month to discuss various topics
and to participate in trainings.
b. Zahorchak individually met with members of the Executive Team in order to
review their job performance with them.
45. In or about January 2013, Zahorchak invited Charles Gounaris ("Gounaris''), owner
of Charles Gounaris and Associates, to provide training to the Executive Team.
Arcurio, 18-005
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a. Gounaris' consulting expertise relates to executive team development
through personality testing and other methods.
46. Gounaris provided multiple trainings to the Executive Team between January 2013
and December 2014.
a. The trainings related to executive team building and strategic planning.
The executive team building exercises related to improving the
performance of employees in their current positions.
2. The strategic plan related to setting goals for the District and
determining how to achieve them.
b. The training provided by Gounaris did not relate to succession planning for
the Superintendent position.
47. Zahorchak's contract was scheduled to expire at the conclusion of the 2014/2015
school year and he was not interested in renewing his contract.
a. Zahorchak privately informed the Board that he was not interested in
renewing his contract several months prior to publicly announcing his
retirement on June 28, 2014.
b. Zahorchak discussed his plan of succession with the Executive Team at
various times prior to his actual retirement.
48. Zahorchak informed the Board of his recommendations regarding the succession
plan for administration of the District upon his retirement.
a. Zahorchak recommended that Assistant Superintendent James Cekada
transition to the position of Superintendent upon Zahorchak's retirement.
b. Zahorchak recommended that Ms. Arcurio transition to the position of
Assistant Superintendent upon Zahorchak's retirement.
49. Zahorchak was aware through his individual meetings with Ms. Arcurio that she
did not yet have her certification to be an Assistant Superintendent and therefore
could not serve as the Assistant Superintendent until she received her certification.
[_However, Section 12-1214 of the Public School Code permits the Department of
Education to grant a waiver of certification requirements under certain
circumstances:]
§ 12-1214. Department waiver of certification requirements
(a) The department may grant a waiver of certification requirements for a period
not to exceed one year fora certificated professional employe currently
employed by or on suspension from a school entity when the school entity
submits a written waiver request containing the following:
(i) the reason for the waiver;
(ii) a program of study being followed by the employe to secure
certification in the new position;
(iii) the period of time necessary for the employe to secure certification
in the new position;
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(iv) a statement showing the employe's application for placement in the
new position; and
(v) a statement that the employe has completed twelve (12) semester
credit hours in the area for which the waiver is requested.
(b) The employe for whom the waiver is granted shall pursue certification as
outlined in the school entity's waiver request. Failure to do so shall result in
a revocation of the waiver.
(c) A professional employe for whom a waiver is granted shall not be permitted
to fill a position vacated by a suspended employe.
24 PS. § 12-1214.
50. Despite having served as the Pennsylvania Secretary of Education from February
7, 2006, until May 7, 2010, Zahorchak did not inform the Board of this option
concerning Ms. Arcurio's appointment as the Assistant to the Superintendent as
opposed to the Assistant Superintendent.
51. Zahorchak ultimately spoke to Ms. Arcurio about her interest in serving as the
Assistant to the Superintendent in or about early 2014, prior to his June 28, 2014,
public retirement announcement.
a. Zahorchak and Ms. Arcurio agreed that if she accepted the Assistant to the
Superintendent position, she would need to pursue the educational
requirements necessary to obtain her certification.
1. There were no additional educational requirements for Ms. Arcurio
to serve as the Assistant to the Superintendent.
b. At that time, the position of Assistant to the Superintendent had been vacant
for a number of years.
52. Ms. Arcurio discussed accepting the Assistant to the Superintendent position with
Arcurio.
a. Arcurio was supportive of her serving as the Assistant to the
Superintendent.
53. Zahorchak did not recommend to the Board any other person to serve as the
Assistant to the Superintendent.
54. In the spring of 2014, then -Board President Unger informed the Board
(immediately prior to the start of a Board meeting) of the possibility of Ms. Arcurio
serving as the Assistant to the Superintendent.
a. Although the District previously maintained the position of Assistant to the
Superintendent on record, Unger nonetheless informed the Board that the
Assistant to the Superintendent position would have to be created.
b. Unger advised the Board that Ms. Arcurio could not yet serve as the
Assistant Superintendent because she did not have her certification, but
she was going to obtain the certificationleducation necessary to serve as
the Assistant Superintendent.
55. The Board was in favor of hiring Ms. Arcurio as the Assistant to the Superintendent.
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56. On March 24, 2014, at 8:20 a.m., Ms. Arcurio submitted an online application to
Indiana University of Pennsylvania ("IUP") to enroll in a program to obtain the
educational credits necessary to serve as the Assistant Superintendent.
a. The application was submitted after Zahorchak's discussion with Ms.
Arcurio regarding her promotion to Assistant to the Superintendent.
b. Included with Ms. Arcurio's application was a document dated "March 2014"
that Ms. Arcurio generated detailing the reasons why she submitted said
application.
C. The classes at IUP that Ms. Arcurio needed to obtain her certification for
Assistant Superintendent started in March/April 2014. Ms. Arcurio asserts
that she believed she needed to enroll at that time to avoid the risk of
missing the certification deadline.
57. At the time she submitted her online application in March 2014, Ms. Arcurio had a
reasonable expectation based on her conversations with Zahorchak that she was
to be selected to serve as the Assistant to the Superintendent.
a. Ms. Arcurio's application narrative included the following:
"I have been given the opportunity to embrace the next
level of service in my organization and without the
continuation of learning that cannot happen. Seamless
transitions, one of many goals within our organization,
and my movement from our high school to the central
office is as well."
58. On June 28, 2014, Zahorchak publicly announced his intent to retire at the
conclusion of the 2014/2015 school year.
a. Minutes of the June 28, 2014, meeting disclose the following:
PERSONNEL AND NEGOTATIONS COMMITTEE
Daniel Tomak moved that the Board of School
Directors accept the Superintendent's announcement
of a full retirement from the Greater Johnstown School
District and the Public School Employees' Retirement
System, effective at the end of the 2014-2015 school
year, the end of his contract, (and plans for a more
detailed public announcement of this intent to retire be
addressed in September 2014). The motion was
seconded by Cynthia Ahlborn, and upon being put to a
vote, passed, the vote being polled as all ayes. (PN-
274-14).
Eugene Pentz moved that the Office of the
Superintendent be created, for a one-year period
creating a succession plan during the 2014-2015
School -Year. (The Plan will be presented in the fall of
2014.) The motion was seconded by Thomas C.
Dadey, and upon being put to a vote, passed, the vote
being polled as all ayes. (PN-275-14).
b. Arcurio was present at the June 28, 2014, Board meeting and participated
in the votes.
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59. During the July 24, 2014, Board meeting, the Board unanimously appointed James
Cekada ("Cekada") to the position of Superintendent of Schools, for a five-year
term at an annual salary of $145,000.00, effective July 1, 2015.
a. Meeting minutes state as follows:
John Berzinsky moved that Dr. James Cekada be
appointed to the position of Superintendent of Schools,
for a five-year (5) term, at an annual salary of
$145,000, effective July 1, 2015. The motion was
seconded by Cynthia Ahlborn, and upon being put to a
vote, assed, the vote being polled as all ayes. (PN-
17-14�
b. The Board did not discuss filling the vacancy of Assistant Superintendent
triggered by Cekada's appointment.
60. The Executive Team meeting of August 6, 2014, included the topic for discussion
"Succession Planning -- Update."
a. This was the last time that succession planning was documented as a topic
of discussion for the Executive Team.
b. During the topic of succession planning, Zahorchak declared that Ms.
Arcurio would be named the Assistant to the Superintendent.
G. Ms. Arcurio was routinely meeting with Zahorchak at this time in preparation
of her appointment as the Assistant to the Superintendent.
61. As early as September 15, 2014, Ms. Arcurio was attending draft agenda meetings
with Zahorchak, Cekada, Business Manager John Zahorchak, and Confidential
Secretary to the Superintendent Crystal Hasselbauer ("Hasselbauer").
a. These meeting were typically attended by the Superintendent, Assistant
Superintendent, Business Manager, and Confidential Secretary to the
Superintendent.
62. At the November 24, 2014, draft agenda meeting attended by Zahorchak, Cekada,
John Zahorchak, Hasselbauer, and Ms. Arcurio, draft committee agendas for the
December 5, 2014, Board meeting were reviewed and discussed during the
meeting.
a. This included personnel actions.
b. This draft committee agenda did not document any motions related to Ms.
Arcurio being appointed to serve as the Assistant to the Superintendent.
63. Zahorchak privately met with Hasselbauer at the conclusion of the November 24,
2014, draft agenda meeting to provide her with changes he wanted made to the
agendas.
a. Zahorchak directed Hasselbauer to add the following motions to the
Personnel & Negotiations Committee agenda:
1. Ms. Arcurio be appointed to the position of Assistant to the
Superintendent for a five-year term effective July 1, 2015, at a salary
of blank).
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2. Zahorchak's revised retirement date of March (blank), 2015 be
effective at the end of the workday.
3. Cekada be appointed interim Superintendent until June 30, 2015.
64. On November 25, 2014, a second draft agenda meeting was held and attended by
Zahorchak, Hasselbauer, and Board President Unger.
a. The draft committee agendas for the December 5, 2014, Board meeting
were reviewed and discussed during the meeting.
b. The Personnel & Negotiations Committee agenda included nine actionable
items.
1. The draft agenda did not include any action regarding the creation of
the Assistant to the Superintendent position.
C. Unger approved the dissemination of the agendas as reviewed by him on
November 25, 2014.
65. The final version of the Personnel & Negotiations Committee agenda which was
disseminated to the Board on or about November 25, 2014, documented motions
to be made during the December 5, 2014, meeting.
a. The final agenda included 33 actionable items.
1. The final agenda included the creation of the Assistant to the
Superintendent position.
2. The final agenda also included an appointment to the Assistant to
the Superintendent position.
b. Notes taken contemporaneously with the drafting of the meeting agenda
establish that "Am A" was to be appointed to the position of Assistant to
the Superintenden .
1. "Amy A" was deleted from the actual draft to conceal that the
appointment was predetermined.
2. "Amy A" referred to Ms. Arcurio.
66. At the outset of the December 5, 2014, Board meeting, the Board went into
executive session to discuss Zahorchak's succession plan.
a. Arcurio asserts that he excused himself from this executive session
because Ms. Arcurio was to be discussed as part of the succession plan.
67. During the Board's December 5, 2014, regular meeting, Zahorchak's succession
plan was implemented by the Board with a series of votes as shown below:
a. Thomas C. Dadey moved that the position of Assistant to the
Superintendent of Schools be created, and the job description be approved.
The motion was seconded by Cynthia Ahlborn, and upon being put to a
vote, passed, the vote being polled as all ayes. (PN-146-14).
1. Arcurio participated in the unanimous vote.
b. Eugene Pentz moved that Amy Arcurio be appointed to the position of
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Assistant to the Superintendent of Schools, effective July 1, 2015 with a five
5) year Contract, until June 30, 2020, at a salary of $107,627, with a
ontract to be forthcoming at a subsequent meeting, contingent upon
receipt of necessary Clearance documents with no violations noted. The
motion was seconded by Cynthia Ahlborn, and upon being put to a Roll Call
vote, passed, the vote being polled as follows: Seven ayes (Ahlborn,
Berzinsky, Dadey, Mikesic, Pentz, Tomak and Unger) and one abstention
(Arcurio-Mr. Arcurio's "Record of Abstention Votes' form is attached. (PN-
147-14).
The Board unanimously approved the motion with Arcurio abstaining
from the vote.
C. John Berzinsky moved that Dr. Gerald L. Zahorchak's revised retirement
date, effective the end of the workday on June 12, 2015 of the [2014-2015]
School Year, be approved, and accept the attached conditions. The motion
was seconded by Eugene Pentz, and upon being put to a vote, passed, the
vote being polled as all ayes. Note the motion was revised as read to
include "and accept— conditions') (PN-148-14).
1. Arcurio participated in the unanimous vote.
d. Edwin J. Mikesic moved that Gerald Zahorchak be permitted to volunteer
his services to the District, contingent upon receipt of necessary clearance
documents with [no] violations noted, per Board Policy #916 and
established building guidelines (PN-149-14).
Dr. James Cekeda be appointed to the position of Acting Superintendent of
Schools effective June 13, 2015 for the remainder of the 20'14-2015 School
Year, at a prorated salary consistent with Dr. Cekeda's salary for the
position of Superintendent of Schools, commencing July 1, 2015 (PN-150-
14).
1. The motion was seconded by Eugene Pentz, and upon being put to
a vote, passed, the vote being polled as all ayes. (PN-149 and 150-
14).
2. Arcurio participated in the unanimous vote.
68. At the time Arcurio voted in favor of the motion to create the position of Assistant
to the Superintendent, he was aware that his wife was being considered for the
position and, therefore, had a reasonable expectation the position of Assistant to
the Superintendent was being created for his wife.
a. An abstention form was not prepared in advance for Arcurio to complete
regarding the vote to create the position of Assistant to the Superintendent.
69. Upon her promotion to Assistant to the Superintendent, Ms. Arcurio realized an
increase in her compensation from the District.
THE FOLLOWING FINDINGS RELATE TO ARCURIO APPROVING THE DISTRICT'S
UTILIZATION OF CAMBRIA COUNTY CHILD DEVELOPMENT CORPORATION AND
PAYMENTS TO SAID ENTITY.
70. Cambria County Child Development Corporation ("CCCDC") is a nonprofit
corporation that was created within the Commonwealth on August 24, 1973.
a. Articles of incorporation document that CCCDC was created to:
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"promote comprehensive child development services
throughout Cambria County, and in that regard, (a) To
promote, provide, and coordinate comprehensive child
development services including, but not limited to, the
following: family planning, parental care, education and
counseling in child care, (undistinguishable)
information and education, medical and diagnostic and
treatment, mental health and psychological services,
day care, foster care, (undistinguishable) services,
rehabilitation, and special education for handicapped
children, legal advisory services, mental and economic
counseling. (b) To acquire, construct, lease, rent and
occupy child development centers or facilities suited to
the special needs and requirements of children. (c) To
provide these services without regard to race, color,
creed, national origin, sex or economic status. (d) To
employ professional, paraprofessional, technical and
clerical personal necessary to provide a
comprehensive child development program. (e) To
enter into contracts or agreements with agencies,
institutions or consultants as may be necessary to
provide a comprehensive child development program.
(f) To receive and expend funds from state, federal,
and local governments, individuals, agencies,
foundations, and other organizations which may have
funds available to provide comprehensive child
development services. (g) To (undistinguishable)
�undistinguishable for carrying out and
undistinguishable) undistinguishable) foregoing
purposes and powers.`
b. CCCDC is located at 300 Prave St. #1, Ebensburg, PA 15931.
71. CCCDC is governed by a five -Member Board of Directors and an Executive
Director.
a. Ron Kikta ("Kikta") served as the Executive Director during the time period
of approximately August 1973 to June 2018.
Kikta resigned in approximately June 2018.
b. The five -Member Board of Directors at the relevant time period consisted
of:
The Honorable David J. Tulowitzki of the Court of Common Pleas of
Cambria County;
2. Jack Makosy;
3. Doreen Torres;
4. Mary Ann Stevens; and
5. Mark Deyullus.
72. CCCDC provides child care services to families [in municipalities in] Cambria
County, Pennsylvania, including Ebensburg, Johnston, Cresson, Loretto, Patton,
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Lilly, South Fork, Ferndale, and Conemaugh Township.
73. CCCDC also provides programs to the District and other school districts in
Cambria County, including the Penn -Cambria, Conemaugh Valley, Ferndale,
Forest Hills, Central Cambria, and Cambria Heights School Districts.
74. The various programs provided by CCCDC include the following:
a. Before/After School -Age Care;
b. Infant/Toddler/Pre-School Care;
C. Nutritional Meals & Snacks;
d. High Quality Care;
e. Developmentally Appropriate Activities;
SPARK Physical Activity Program;
g. Individual & Group Play Opportunities; and
h. After -school programs.
75. In approximately 2011-2012, Kikta met with various District administrators,
including the Superintendent, to secure funding for after -school services for the
District.
a. Kikta and the District initially agreed to fund the after -school programs by
applying for 21$t Century Community Learning Centers grant money.
1. The 215t Century Community Learning Centers grant ("215t Century
Grant") is a United States Department of Education sponsored grant
related to supporting the creation of community learning centers that
provide academic enrichment opportunities during non -school hours
Tor children, particularly students that attend high -poverty and low -
performing schools.
76. A requirement of the 215t Century Grant is that the school district that is interested
in obtaining funding must submit an application that documents the communityy-
based organization that the school district plans to partner with in order to
implement the after -school services.
a. School districts cannot apply for the 215t Century Grant monies unless they
are partnered with a community -based organization.
77. The District partnered with CCCDC as its community -based organization and
permitted CCCDC to write the grant applications and formulate the funding needed
in order to implement the after -school services.
a. There was no official vote of the Board to approve the partnership with
CCCDC.
The decision was made by District administrators without objection
from the Board.
78. Under this process, the CCCDC prepared the 21 st Century Grant applications by
formulating the budgets associated with the after -school services; if successful,
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the District would be the direct recipient of the 215t Century Grant monies for the
after -school services, [which monies] in turn would be utilized by the District to pay
CCCDC for the after -school services to be provided under the grant.
79. The District was approved by the Department of Education for the (2011-2012) 215E
Century Grant and has subsequently applied for and received additional grant
funds.
80. Through the 215t CenturyGrant, since 2013 the CCCDC has provided the following
services to the District for after -school services administered at the high school
and middle schools (East Side Middle School and West Side Middle School):
a. Pride & Tradition at the High School;
b. After School Live!;
C. Trojan Learning Center;
d. Trojan After School Program (middle schools); and
e. Summer in the City.
81. Robert Arcurio served as a CCCDC Site Coordinator from approximately January
2013 until his retirement in June/July 2018.
82. Robert Arcurio is the father of Arcurio.
83. Robert Arcurio was an employee of CCCDC from February 15, 1999, until his
retirement in approximately June/July 2018 and served in various capacities during
his tenure with CCCDC.
84. As a Site Coordinator, Robert Arcurio was responsible for performing the following
duties and responsibilities as they related to services provided by CCCDC to the
District:
a. General management of the facility, including administering the program
objectives and activities, supervising the students' activities, and staff;
b. Development of an upward and downward system of communication
between the center's staff, classroom teachers, and program partner
agencies; and
C. Administration of curriculum recommended by school district administration,
advisory board, the community partners, the classroom teachers, and the
center's staff.
85. CCCDC occasionally supplied the District with an agency letter of agreement
documenting CCCDC as the District's community -based organization regarding
the implementation of after -school services.
a. CCCDC occasionally attached a detailed budget to the letter of agreement
to notify the administration of the costs associated with the after -school
services.
b. The letter of agreement was signed by Kikta and the District
Superintendent.
86. As of 2013 and pursuant to the terms of the 215t Century Grant, the Board was
Arcurio, 18-005
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aware that funds under the 21st Century Grant were utilized to pay CCCDC for
after -school services supplied under the 215t Century Grant.
a. Arcurio was a Member of the Board at that time.
b. The Board (including Arcurio) never voted to approve applications seeking
215t Century Grant funding.
C. Applying for 215t Century Grant money was viewed as a routine action taken
by District administration and did not require Board approval.
87. On June 17, 2010, the District was advised by the Department of Education that
the (FC#41strict was appproved for the 21s' after -school r program
the 2009/2 1school0 through 2012/2013 hool years Cohort 5
100052550)for
a. The Cohort 5 contract was attached to the correspondence and identified
the following funding that was to be received by the District in order to fund
the District's Pride & Tradition after -school program:
1. $62,400.00 during the 2009/2010 school year;
2. $312,000.00 during the 2010/2011 school year;
3. $312,000.00 during the 2011/2012 school year; and
4. $312,000.00 during the 2012/2013 school year.
88. The funding provided under the Cohort 5 contract was based, in part, upon the
CCCDC document titled "Cambria County Child Development Corporation,
Greater Johnstown School District, FC#4100052550 Cohort 5, Pride & Tradition,
211`t Century Grant Budget Narrative, July 1, 2010 to June 30, 201 V'
a. The document details that a total of $312,000.00 would be needed in order
to implement the Pride & Tradition after -school program atthe District's high
school during the time period of July 1, 2010, to June 30, 2011.
89. On June 18, 2010, the District also received approvals for a "fully -executed Cohort
5 contract" related to the 21st CCLC After -School Program grant (FC#4100052553)
for the middle school Trojan After School Program with funding as follows:
a. $81,120.00 during the 2009/2010 school year;
b. $405,600.00 during the 2010/2011 school year;
C. $405,600.00 during the 2011/2012 school year; and
d. $405,600.00 during the 2012/2013 school year.
90. Funding provided by the Cohort 5 contract was based, in part, upon the CCCDC's
"Cambria County Child Development Corporation, Greater Johnstown Middle
School, 21st Century Grant Budget Narrative, July 1, 2010 to June 30, 201 V'
a. The document details that a total of $405,600,00 would be needed to
implement the Trojan After School Program at the District's middle schools
during the time period of July 1, 2010, to June 30, 2011.
91. On or about February 18, 2016, the District received a 21st Century contract
(FC#4100071638) that provided the District with $399,900.00 to defray program
Arcurio, 18-005
7a—g FT 9
costs incurred from January 6, 2016, to December 31, 2018, related to After School
Live!
a. After School Live! was the District's after -school program for middle school
and high school students.
92. From 2014 through 2017, the Board voted unanimously five times confirming that
CCCDC would provide after -school services for the District under the grant.
a. Arcurio participated in two of the five unanimous votes confirming CCCDC
as the after -school provider as follows:
1. June 17, 2014 (Summer Programs), and
2. November 10, 2015 (After School Learning Center Programs).
b. Arcurio was absent when votes were taken on August 23, 2016, and June
21, 2017.
93. In connection with the services CCCDC was providing to the District under the
grant, CCCDC invoiced the District on a bi-monthly basis.
a. The invoices itemized the total to be paid by the District based on the
support documentation that was attached to the invoices.
1. Support documentation included the names of the employees to be
paid and how much they were to be compensated, employee check
stubs, reimbursement records, etc.
2. This support documentation was provided to the District but not
provided to Board Members.
b. At the time the District received the invoices, CCCDC had already issued
payment to its employees.
94. CCCDC invoices were received and processed by the District's Business Office.
a. The Business Office compiled lump sum totals to be paid to CCCDC based
on a review of the CCCDC invoices.
b. The Business Office informed Hasselbauer of the lump sum totals and
provided a check register to support the totals identified.
The check registers identified the entity to be paid, the check date,
the check number, the total of the check, and a description of the
invoices to be paid by the check.
95. The CCCDC lump sum totals were formulated into a generic motion for payment
of the invoice to be approved by the Board during the Education Committee portion
of the meeting.
a. Hasselbauer assigned an exhibit number to the check registers that
corresponded to the lump sum totals to be approved by the Board.
b. The motions formulated were generic payment motions and did not specify
to whom the payments were being made or to what the invoices were
related.
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96. The Members of the Board, in their meeting packets, received the Education
Committee agenda that documented generic lump sum payments to be made by
the District for educational purposes and the check registers that corresponded to
the lump sum payments.
a. Based on the information supplied in the Board's meeting packets, the
Board was notified that CCCDC bills were to be approved during the
Education Committee portion of the meeting.
97. During the time period of May 2013 to June 2016, Arcurio participated in votes
related to educational payments.
a. The payments approved did not specify payments made to Robert Arcurio.
b. The votes that Arcurio participated in were based on motions to pay
"Educational Bills" for a budgeted year and did not specify to whom they
were being paid.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT ARCURIO FAILED
TO COMPLETE OR OTHERWISE DISCLOSE ANY AND/OR ALL REAL ESTATE
INTERESTS ON STATEMENTS OF FINANCIAL INTERESTS FILED FOR CALENDAR
YEARS 2013 AND 2014 IN HIS CAPACITY AS A MEMBER OF THE BOARD.
98. Statement of Financial Interests filing requirements for public officials and public
employees are mandated by Section 1104 of the State Ethics Act.
a. Section 1104(a) mandates, in part, the following:
"...Any other public employee or public official shall file
a statement of financial interests with the governing
authority of the political subdivision by which he is
employed or within which he is appointed or elected no
later than May 1 of each year that he holds such a
position and of the year after he leaves such a
position."
99. Arcurio was required to file Statements of Financial Interests by May 1st annually
for every calendar year in which he served as a Member of the Board.
a. Arcurio served as a Member of the Board from December 5, 2005, through
August 7, 2018.
100. Information to be disclosed on Statements of Financial Interests filed by public
officials and public employees is mandated by Section 1105 of the Ethics Act.
a. Section 1105(b), Subsections 1-10 identify specific information to be
disclosed as well as exceptions to disclosure requirements when
applicable.
Section 1105(b)(3) of the Ethics Act mandates the disclosure of:
"Any direct or indirect interest in any real estate which was sold or
leased to the Commonwealth, an of its agencies or political
subdivisions or purchased or leasedfromthe Commonwealth, any
of its agencies or political subdivisions or which was the subject of
any condemnation proceedings by the Commonwealth, any of its
agencies or political subdivisions."
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101. On February 2, 2018, Arcurio's Statements of Financial Interests for calendar
years 2012 through 2016, amongst other records, were obtained from the District
by the Investigative Division of the Commission pursuant to a written request dated
January 18, 2018.
a. Arcurio filed Statements of Financial Interests as follows:
Filing Year Date Filed Calendar Year
2013
January 16, 2013
2012
2014
January 24, 2014
2013
2015
January 19, 2015
2014
2016
January 19, 2016
2015
2017
February 7, 2017
2016
102. Review of Arcurio's Statements of Financial Interests revealed that Arcurio failed
to check the "NONE" box stating that he had no real estate interests on his 2013
and 2014 calendar year forms.
a. Although the box at Section 08 on Arcurio's 2013 and 2014 calendar year
Statements of Financial Interests was not marked, Arcurio did not have any
real estate interests to report.
103. Arcurio was informed of his alleged violations of the Ethics Act via receipt of a
Notice of Investigation from the Commission's Investigative Division dated March
16, 2018.
a. Arcurio received the Notice of Investigation on March 20, 2018, via Certified
Mail (Article Number 7016 3560 0001 0041 4248).
b. The Notice of Investigation specifically documented Arcurio's failure to
disclose any real estate interests on his Statements of Financial Interests
filed for calendar years 2013 and 2014.
104. Arcurio immediately filed amended Statements of Financial Interests with the
District for calendar years 2013 and 2014 on March 20, 2018, and again on June
19, 2018.
a. Arcurio's amended Statements of Financial Interests dated March 20, 2018,
and June 19, 2018, were now complete with him marking the "NONE" box
for real estate interests.
1. Arcurio's two amended forms filed on March 20, 2018, and June 19,
2018, were identical with the exception of the June 19, 2018, filings
bearing a District "Received" date stamp.
b. Arcurio's Statements of Financial Interests that were filed contained no
other deficiencies or delinquencies.
Ili. DISCUSSION:
As a Member of the Board of Directors ("Board') of the Greater Johnstown School
District ("District"), Cambria County, Pennsylvania, from December 5, 2005, through
August 7, 2018, Respondent Vince Arcurio, also referred to herein as "Respondent,"
Arcurio, 18-005
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"Respondent Arcurio," and "Arcurio," was a public official subject to the provisions of the
Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seg.
The allegations are that Arcurio violated Sections 1103(a) and 1105(b)(3) of the
Ethics Act when he utilized the authority of his public position for the private pecuniary
benefit of himself, a member of his immediate family, and/or a business with which
members of his immediate family are associated, when he participated in discussions and
actions of the Board to create positions of employment in the District at a time when he
knew his wife was an applicant which then enabled the hiring and/or promotion of his wife
to multiple positions of employment within the District; when he participated in discussions
and actions of the Board to approve/acquire funding/contracts between the District and
the Cambria County Child Development Corporation, a business with which his father is
associated; and when he failed to complete and/or disclose any real estate interests, as
required by the Ethics Act, on Statements of Financial Interests ("SFIs") filed for calendar
years 2013 and 2014.
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
public employee shall
conflict of interest.
65 Pa.C.S. § 1103(a).
of interest. —No public official or
engage in conduct that constitutes a
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
his holding public office or employment for the private
pecuniary benefit of himself, a member of his immediate
family or a business with which he or a member of his
immediate family is associated. 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, an 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 and its subsections detail the financial disclosure
that a person required to file the SFI form must provide.
Section 1105(b)(3) of the Ethics Act requires the filer to disclose on the SFI any
direct or indirect interest in any real estate which was sold or leased to or purchased or
Arcurio, 18-005
a��3
leased from the Commonwealth, any of its agencies or political subdivisions, or which
was the subject of any condemnation proceedings by the Commonwealth or any of its
agencies or political subdivisions.
As noted above, the parties have submitted a Consent Agreement and Stipulation
of Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
The Board consists of nine Members. Arcurio served as a Member of the Board
from December 5, 2005, until August 7, 2018, when he voluntarily resigned from the
Board.
Amy Arcurio ("Ms. Arcurio") is Arcurio's spouse. Ms. Arcurio was initially employed
with the District from July 1, 2002, to August 9, 2010. Ms. Arcurio resigned from her
employment with another school district effective June 30, 2012, in order to accept the
position of Principal of the District's Freshman Academy.
Gerald Zahorchak ("Zahorchak"), who had previously served as the District
Supperintendent, once again began serving as the District Superintendent on July 1, 2012.
Z=rchak's contract was scheduled to expire at the conclusion of the 2014/2015 school
year, and he privately informed the Board that he was not interested in renewing his
contract. Zahorchak ultimately recommended to the Board that James Cekada, who was
then serving as the District Assistant Superintendent, transition to the position of
Superintendent upon Zahorchak's retirement.
In or about early 2014, Zahorchak spoke to Ms. Arcurio, who did not have the
certification required to serve as the Assistant Superintendent, about her interest in
serving as the Assistant to the Superintendent. Zahorchak and Ms. Arcurio agreed that
if she accepted the Assistant to the Superintendent position, she would need to pursue
the educational requirements necessary to obtain her certification to serve as the
Assistant Superintendent. Ms. Arcurio discussed accepting the Assistant to the
Superintendent position with Arcurio, who was supportive of her serving in the position.
In the spring of 2014, then -Board President Richard Unger ("Unger") informed the
Board of the possibility of Ms. Arcurio serving as the Assistant to the Superintendent.
Unger further informed the Board that the Assistant to the Superintendent position would
have to be created. Unger advised the Board that Ms. Arcurio could not yet serve as the
Assistant Superintendent because she did not have her certification, but she was going
to obtain the certificationleducation necessary to serve as the Assistant Superintendent.
The Board was in favor of hiring Ms. Arcurio as the Assistant to the Superintendent.
On June 28, 2014, Zahorchak publicly announced his intent to retire at the
conclusion of the 2014/2015 school year. On July 24, 2014, the Board a pointed Cekada
as the Superintendent effective July 1, 2015. The Board did not discuss f ling the vacancy
for the position of Assistant Superintendent that was created by Cekada's appointment
as the Superintendent.
An agenda that was disseminated to the Board prior to the Board's December 5,
2014, meeting included the creation of the Assistant to the Superintendent position and
an appointment to the position. On December 5, 2014, Arcurio participated in a
unanimous Board vote to create the position of Assistant to the Superintendent and
approve the job descripption for the position. Arcurio abstained from a Board vote that
appointed Ms. Arcurio to the position of Assistant to the Superintendent effective July 1,
2015, until June 30, 2020, at a salary of $107,627.00. The parties have stipulated that at
the time Arcurio voted in favor of the creation of the position of Assistant to the
Superintendent, he had a reasonable expectation that the position was being created for
his wife.
Arcurio, 18-005
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Ms. Arcurio was compensated the amount of $94,202.16 for serving as the
Freshman Academy Principal from 2014 to 2015. Upon her promotion to the position of
Assistant to the Superintendent, Ms. Arcurio realized an increase in her comppensation
from the District. Ms. Arcurio served in the aforesaid position from July 1, 2015, to June
5, 2017. Ms. Arcurio's title changed from Assistant to the Superintendent to Assistant
Superintendent on June 6, 2017. Ms. Arcurio served as the Assistant Superintendent
from June 6, 2017, to November 13, 2018. Ms. Arcurio has served as the District's
Superintendent since November 13, 2018. Ms. Arcurio's promotion to Superintendent
occurred after Arcurio's resignation from the Board.
Cambria County Child Development Corporation ("CCCDC") is a nonprofit
corporation that provides programs to the District and other school districts in Cambria
County. In approximately 2011 or 2012, Ron Kikta ('Kikta"), who was then serving as the
Executive Director of CCCDC, met with various District administrators to secure funding
for after -school services for the District. Kikta and the District agreed to fund the after -
school programs by applying for the 21st Century Community Learning Centers grant
{"21St Century Grant"), which is sponsored by the United States Department of Education.
A school district interested in obtaining funding pursuant to a 215t Century Grant must
partner with a community -based organization that will provide the after -school services.
The District partnered with CCCDC as its community -based organization and permitted
CCCDC to write the grant applications and formulate the funding needed to provide the
after -school services. There was no official Board vote to approve the partnership with
CCCDC.
The District was approved for the 2011-2012 21St Century Grant, and the District
subsequently applied for and received additional 21St Century Grant funds. The District
was the direct recipient of the 215t Century Grant funds, which were used to pay CCCDC
for the after -school services provided under the 21 st Century Grant. As of 2013, the Board
was aware that 215t Century Grant funds were being used to pay CCCDC for providing
various after -school pprograms. Applying for 21$t Century Grant funding was viewed as a
routine action taken by District administration and did not require Board approval.
Robert Arcurio is Arcurio's father. From approximately January 2013 until June or
July of 2018, Robert Arcurio was employed as a CCCDC Site Coordinator. In the
aforesaid capacity, Robert Arcurio was responsible for performing various duties and
responsibilities related to services that CCCDC provided to the District.
From 2014 through 2017, the Board voted five times to confirm that CCCDC would
provide after -school services for the District under the 215t Century Grant. Arcurio
participated in unanimous Board votes on June 17, 2014, and November 10, 2015, that
confirmed CCCDC as the provider for particular District after -school programs.
CCCDC invoiced the District on a bi-monthly basis in connection with the services
that CCCDC provided to the District under the 215t Century Grant. The invoices itemized
the total to be paid by the District based on support documentation attached to the
invoices. The support documentation, which included the names of the employees to be
paid and the amounts of their compensation, was provided to the District but not to
Members of the Board. The CCCDC invoices were received and processed by the
District's Business Office, which compiled lump sum totals to be paid to CCCDC based
on a review of the invoices. The lump sum totals were formulated into generic payment
motions to be approved by the Board.
The Members of the Board received in their meeting packets agendas that
documented generic lump sum payments to be made by the District for educational
purposes an cf check registers that identified the entities to be paid, the totals of the
checks, and descriptions of the invoices to be paid by the checks. Based on the
information suppliedinthe Board's meeting packets, the Board was notified that CCCDC
bills were to be approved during the Board's meeting. From May 2013 to June 2016,
Arcurio, 18-005
Page 25
Arcurio participated in Board votes based on motions to pay educational bills.
As for Arcurio`s SFIs, although Arcurio did not have any real estate interests to
report on his SFIs for calendar years 2013 and 2014, he failed to check "NONE" in Block
8, "Real Estate interests," on his SFI forms for calendar years 2013 and 2014. On March
20, 2018, Arcurio received the Notice of Investigation from the Investigative Division of
the Commission, which informed him of his alleged violations of the Ethics Act and
documented his failure to disclose any real estate interests on his SFIs for calendar years
2013 and 2014. Arcurio subsequently filed amended SFIs for calendar years 2013 and
2014 with the District. The amended SFIs that Arcurio filed were complete, with "NONE"
checked in Block 8, "Real Estate Interests," and they contained no deficiencies.
Having highlighted the Stipulated Findings and issues before us, we shall now
apply the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
The Investigative Division will recommend the following in
relation to the above allegations:
a. That a technical violation of Section 1103(a) of
the Public Official and Employee Ethics Act, 65
Pa.C.S. § 1103(a), occurred when Vincent
Arcurio, as a Member of the Greater Johnstown
School District Board of Directors, utilized the
authority of his public position by participating in
a vote of the Board of Directors to create the
employment position of Assistant to the
Superintendent, at a time when he possessed a
reasonable expectation that his wife was to be
immediately thereafter appointed to the
vacancy.
That a technical violation of Section 1103(a) of
the Public Official and Employee Ethics Act, 65
Pa.C.S. § 1103(a), occurred when Vincent
Arcurio, as a Member of the Greater Johnstown
School District Board of Directors, utilized the
authority of his public position by participating in
votes of the Board of Directors to approve
payment of educational funds by the District to
the Cambria County Child Development
Corporation, a business with which his father
was associated.
C. That a technical violation of Section 1105(b)(3)
of the Public Official and Employee Ethics Act,
65 Pa.C.S. § 1105(b)(3), occurred when he
failed to complete his Statement of Financial
Interests form [by failing to disclose] whether he
had any real estate interests, as required by the
Ethics Act, on Statements of Financial Interests
filed for calendar years 2013 and 2014.
4. Arcurio agrees to make payment in the amount of $2,500.00
in settlement of this matter payable to the Greater Johnstown
School District and forwarded to the Pennsylvania State
Arcurio, 18-005
ag�b
Ethics Commission within thirty (30) days of the issuance of
the final adjudication in this matter.
5. To the extent he has not already done so, Arcurio aggees to
file complete and accurate amended Statements of Financial
Interests with the Greater Johnstown School District, through
the Pennsylvania State Ethics Commission, for calendar
years 2013 and 2014 within thirty (30) days of the issuance of
the final adjudication in this matter.
6. Arcurio agrees to not accept any reimbursement,
compensation or other payment from the Greater Johnstown
School District representing a full or partial reimbursement of
the amount paid in settlement of this matter.
7. 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.
Consent Agreement, at 2-3.
In considering the Consent Agreement, we accept the parties' recommendation for
a finding that a technical violation of Section 1103(a) of the Ethics Act occurred when
Arcurio, as a Member of the Board, utilized the authority of his public position by
participating in a vote of the Board to create the employment position of Assistant to the
Superintendent, at a time when he possessed a reasonable expectation that his wife was
to be immediately thereafter appointed to the vacancy.
Arcurio's wife, Ms. Arcurio, was the Principal of the District's Freshman Academy
when the District Superintendent spoke to her in 2014 about her interest in serving as the
Assistant to the Superintendent. Ms. Arcurio discussed accepting the Assistant to the
Superintendent position with Arcurio, and the Board President informed the Board of the
possibility of Ms. Arcurio serving in the position. Arcurio used the authority of his office
when, on December 5, 2014, he participated in a unanimous Board vote that created the
Assistant to the Superintendent position and approved the job description for the position.
At the time Arcurio voted in favor of the creation of the Assistant to the Superintendent
position, he had a reasonable expectation that the position was being created for his wife.
The Board, in a vote from which Arcurio abstained, then appointed Ms. Arcurio to the
aforesaid position. As a result of being promoted to the Assistant to the Superintendent
position, Ms. Arcurio realized an increase in her compensation from the District.
Based upon the Stipulated Findings and the Consent Agreement, we hold that a
technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Arcurio, as a Member of the Board, utilized the authority of his public position by
participating in a vote of the Board to create the employment position of Assistant to the
Superintendent, at a time when he possessed a reasonable expectation that his wife was
to be immediately thereafter appointed to the vacancy.
We further accept the recommendation of the parties for a finding that a technical
violation of Section 1103(a) of the Ethics Act occurred when Arcurio, as a Member of the
Board, utilized the authority of his public position by participating in votes of the Board to
Arcurio, 18-005
Page 27
approve payment of educational funds by the District to CCCDC, a business with which
his father was associated.
CCCDC is a business with which Arcurio's father, Robert Arcurio, was associated
in his capacity as a CCCDC Site Coordinator from approximately January 2013 until June
or July of 2018. As a CCCDC Site Coordinator, Robert Arcurio was responsible for
erforming various duties and responsibilities related to services that CCCDC provided
o the District. As of 2013, the Board was aware that 21 st Century Grant funds being
received by the District were being used to pay CCCDC for providing various after -school
programs to the District. Arcurio used the authority of his office when, on June 17, 2014,
and November 10, 2015, he participated in unanimous Board votes that confirmed
CCCDC as the provider for particular District after -school programs. The Board approved
bills from CCCDC b voting on generic payment motions that included lump sum
payments to CCCDC. From May 2013 to .June 2016, Arcurio participated in Board votes
based on motions to pay educational bills.
Based upon the Stipulated Findings and the Consent Agreement, we hold that a
technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. 5 1103(a), occurred
when Arcurio, as a Member of the Board, utilized the authority of his public position by
participating in votes of the Board to approve payment of educational funds by the District
to CCCDC, a business with which his father was associated.
We accept the recommendation of the parties, and hold, that a technical violation
of Section 1105(b)(3) of the Ethics Act, 65 Pa.C.S. § 1105(b)(3), occurred when Arcurio
failed to complete his SA form by failing to disclose whether he had any real estate
interests, as required by the Ethics Act, on SFIs filed for calendar years 2013 and 2014.
As part of the Consent Agreement, Arcurio has agreed to make payment in the
amount of $2,500.00 payable to the Greater Johnstown School District and forwarded to
this Commission within thirty (30) days of the issuance of the final adjudication in this
matter. Arcurio has agreed to not accept any reimbursement, compensation or other
payment from the District representingg a full or partial reimbursement of the amount paid
in settlement of this matter. Additionally, to the extent he has not already done so, Arcurio
has agreed to file complete and accurate amended SFIs with the District, through this
Commission, for calendar years 2013 and 2014 within thirty (30) days of the issuance of
the final adjudication in this matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. However, given that Arcurio has already
filed amended SFIs for calendar years 2013 and 2014, and the parties are in agreement
that those forms are not deficient (Fact Findings 104-104b), we shall accept those filings
as sufficient for calendar years 2013 and 2014.
Accordingly, per the Consent Agreement of the parties, Arcurio is directed to make
payment in the amount of $2,500.00 payable to the Greater Johnstown School District
and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing
date of this adjudication and Order.
Per the Consent Agreement of the parties, Arcurio is directed to not accept any
reimbursement, compensation or other payment from the District representing a full or
partial reimbursement of the amount paid in settlement of this matter.
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.
Arcurio, 18-005
a�8
IV. CONCLUSIONS OF LAW:
As a Member of the Board of Directors {"Board") of the Greater Johnstown School
District {"District"), Cambria County, Pennsylvania, from December 5, 2005,
through August 7, 2018, Responden Vince Arcurio ("Arcurio") 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. A technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103�a),
occurred when Arcurio, as a Member of the Board, utilized the authority of is
public position by participating in a vote of the Board to create the employment
position of Assistant to the Superintendent, at a time when he possessed a
reasonable expectation that his wife was to be immediately thereafter appointed
to the vacancy.
3. A technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred when Arcurio, as a Member of the Board, utilized the authority of phis
public position by participating in votes of the Board to approve payment of
educational funds by the District to the Cambria County Child Development
Corporation, a business with which his father was associated.
4. A technical violation of Section 1105(b)(3) of the Ethics Act, 65 Pa.C.S. §
1105(b)(3), occurred when Arcurio failed to complete his Statement of Financial
Interests form by failing to disclose whether he had any real estate interests, as
required by the Ethics Act, on Statements of Financial Interests filed for calendar
years 2013 and 2014.
In Re: Vince Arcurio, File Docket: 18-005
Respondent Date Decided: 1/22/20
Date Mailed: 1127120
ORDER NO. 1764
Vince Arcurio ("Arcurio"), as a Member of the Board of Directors ("Board") of the
Greater Johnstown School District ('District"), Cambria County, Pennsylvania,
technically violated Section 1103(a) of the Public Official and Employee Ethics Act
("Ethics Act"), 65 Pa.C.S. § 1103(a), when he utilized the authority of his public
position by participating in a vote of the Board to create the employment position
of Assistant to the Superintendent, at a time when he possessedya reasonable
expectation that his wife was to be immediately thereafter appointed to the
vacancy.
2. A technical violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103{a),
occurred when Arcurio, as a Member of the Board, utilized the authority of phis
public position by participating in votes of the Board to approve payment of
educational funds by the District to the Cambria County Child Development
Corporation, a business with which his father was associated.
3. A technical violation of Section 1105(b)(3) of the Ethics Act, 65 Pa.C.S. §
1105(b)(3), occurred when Arcurio failed to complete his Statement of Financial
Interests Torm by failing to disclose whether he had any real estate interests, as
required by the Ethics Act, on Statements of Financial Interests filed for calendar
years 2013 and 2014.
4. Per the Consent Agreement of the parties, Arcurio is directed to make payment in
the amount of $2,500.00 payable to the Greater Johnstown School District and
forwarded to the Pennsylvania State Ethics Commission by no later than the
thirtieth (30#h) day after the mailing date of this Order.
5. Per the Consent Agreement of the parties, Arcurio is further directed to not accept
any reimbursement, compensation or other payment from the District representing
a full or partial reimbursement of the amount paid in settlement of this matter.
6. Compliance with paragraphs 4 and 5 of this Order will result in the closing of this
case with no further action by this Commission.
a. Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,