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In Re: Phillip Kline,
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.ethics.oa.ciov
19-009
Order No. 1766
1 /22/20
1 /29/20
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
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 sh�e ., 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 Phillip Kline, a public official/public employee in his capacity as a Suppervisor
for Alsace Township, Berks County, violated Sections 1103(a), 1103(f), 1105(b)(3),
1105 b)(4), 1105(b)(5), 1105(b)(6), 1105(b)(7), and 1105(b)(10) of the State Ethics. Act
(Act 3 of 1998 when he utilized the authority of his ppublic position for the pecunary
benefit of himself/members of his immediate family and/or Security First, Inc., a business
with which he and/or his spouse and/or child are/were associated, when he, as a
Township Supervisor, entered into agreements and/or otherwise authorized/approved the
use of Security First, Inc. as a vendor of the Township; authorized payment by the
Township of public monies to Security First, Inc.; served as a Township signatory upon
checks issued to Security First, Inc.; entered into contractslagreements valued at $500 or
more between the Township and Security First, Inc., absent an open and public process;
when he failed to identify Alsace Township as a source of income upon Statements of
Financial Interests filed for the 2014, 2015 and 2017 calendar years; and when he failed
to complete any disclosures as to real estate interests, creditors, gifts,
travel/hospitality/lodging, and transfer of business interests to immediate family.
II. FINDINGS.
Phillip Kline ("Kline") served as a Supervisor for Alsace Township ("Township"),
Berks County, from approximately 1993 until 2017.
Kline served as Chairman of the Township Board of Supervisors ("Board of
Kline, 19-009
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Supervisors") from at least 2005 through 2017.
2. The Township is a Second Class Township governed by a three -Member Board of
Supervisors.
a. Supervisors receive $156.25 per month gross compensation.
b. The Supervisors generally hold two meetings a month that include a
workshop meeting and a regular meeting.
1. Bills are approved for payment at the regular meeting.
C. Supervisors are not required to be present at Township meetings in order
to receive compensation.
d. Minutes of the prior meeting of the Board of Supervisors are approved for
accuracy at each subsequent meeting of the Board of Supervisors.
3. Voting by Supervisors at Township meetings occurs via group voice vote (aye or
nay) after a motion is made and properly seconded.
a. Abstentions and/or dissenting votes are specifically documented within the
official meeting minutes.
1. If an abstention and/or dissenting vote is cast, the vote is identified
and the other Supervisors vote by roll call.
4. In order for Supervisors to be properly prepared for a meeting, meeting packets
are issued to the Supervisors approximately a few days prior to a scheduled
Township meeting.
a. Meeting packets usually included an agenda, draft minutes, bill lists, etc.
5. Copies of the bill lists were also provided to the Supervisors at the time of the
regular meeting, so that a vote for approval could be taken.
a. Invoices received by the Township and listed for approval on the bill lists
were routinely reviewed by the Supervisors at the regular Township
meetings.
b. Bill lists generally document the payee, check number, check date, and
check amount.
6. Once a bill list was approved, checks were presented to the Supervisors for
signature.
a. Township checks were usually drafted prior to the Supervisors meeting, in
anticipation of the vote to approve the payment of bills.
b. Once a bill list was approved for payment, Township checks were mailed
by the Township Secretary.
1. Instances existed in which checks were issued prior to approval of
the bill list for such things as insurance or utilities in order to avoid
late fees.
7. All three Supervisors, along with the Secretary/Treasurer, maintained signature
authority over Township financial accounts.
Kline, 19-009
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a. Township -issued checks required the live signatures of three Township
officials.
b. Checks could be signed by any combination of the three Supervisors and
the Secretary/Treasurer.
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS REGARDING SECURITY
FIRST, INC. BEING UTILIZED BY THE TOWNSHIP ABSENT AN OPEN AND PUBLIC
PROCESS AND KLINE'S AUTHORIZATION TO APPROVE BILL LISTS,
8. The records of the Pennsylvania Department of State, Bureau of Corporations
reflect that Articles of Incorporation were established for Security First, Inc.
("Security First") or around October 10, 1990.
a. The principal office or location of the business was identified as:
R. D. #1, Box 1204
Mohnton, Pennsylvania 19540
9. Security First provides the following services:
a. Installs, services and monitors electronic security and fire detection systems
as well as video surveillance systems, access control systems, intercom,
paging and mass evacuation systems.
b. Security First provides services to commercial, residential and industrial
customers.
10. Kline and his wife, Mary Lou Kline, incorporated Security First in 1990.
a. Kline serves as the President.
b. Security First has had approximately five employees since its inception,
including Kline's son, Steve Kline.
11. In or around 2013, Kline began to divest himself of his financial interest in Security
First.
a. Between 2013 and 2015, Kline conveyed 10% of his business interest each
year to his son, Steve Kline.
12. In 2017, ownership in Security First was as follows:
a. Phillip Kline 35%.
b. Mary Lou Kline 35%.
C. Steve Kline 30%.
13, Security First began providing security monitoring work for the Township in or
around the late 1990s.
a. No record exists of the Township ever obtaining any bids or quotes.
b. At the time Security First began providing the security system and
monitoring, Kline was a Member of the Board of Supervisors.
14. The Township utilized Security First to provide security monitoring for the
Township building and the Alsace Manor Fire Company as well as the Alsace
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Manor Fire Company Social Hall.
a. The Alsace Manor Fire Company provided fire services for the Township
from 1946 through 2018.
15. Beginning in or around 1995, five-year contracts were established between
Security First and the Township.
a. In part, the contracts specified that Security First would provide the security
alarms and monitoring of the system.
b. Kline, as a representative of Security First, most recently entered into
contracts with the Township on June 7, 2016, and June 22, 2017.
C. At the time the Township entered into the contracts with Security First, no
other vendors were considered nor were bids sought.
16. Gary Swavely, Esqquire ("Swavely") has served as the Township Solicitor since
approximately 200'f .
17. In or around 2012, Swavely provided a verbal legal opinion to Kline regarding
Security First doing business with the Township.
a. Swavely advised Kline that his business could not do work for the Township
if the scope of work was more than $500.00.
b. Swavely further advised Kline that in order to have a "cleaner arrangement"
Security First should not do any work for the Township.
1. Swavely only provided Kline advice on one occasion.
2. Swavely never provided Kline with a written opinion.
18. After Swavely provided the verbal legal opinion to Kline, Security First continued
to provide security system slmonitoring to the Township.
a. Kline continued to provide services as Security First to the Township based
on his belief that the work was less than $500.00 and that he/Security First
was providing a discount to the Township by not charging for all service
calls.
19. In or around 2011, Security First began to divest itself of its security business by
entering into contracts with My Alarm Center, LLC ("My Alarm Center").
a. The divestiture began with Security First transferring security monitoring
accounts to My Alarm Center.
20. My Alarm Center, formally known as Alarm Capital Alliance II, LLC, was first
incorporated on May 29, 2001, in the state of Delaware.
a. My Alarm Center is a nationwide security company that provides advanced
security systems to homes and businesses.
21. On or around April 29, 2011, My Alarm Center acquired approximately 1201
accounts from Security First through an Account Purchase and Sale Agreement.
a. Security First transferred residential and commercial security alarm
monitoring and maintenance agreements to My Alarm Center.
Kline, 19-009
page 5
b. The transfers included accounts for the Township Building and the Alsace
Manor Fire Company and Social Hall.
22. As part of the agreements between Security First and My Alarm Center, Security
First continued to provide maintenance and service calls to the accounts, including
the Township and the Alsace Manor Fire Company and Social Hall accounts.
23. On March 7, 2014, an Independent Contractor Service Agreement entered into by
Security First and My Alarm Center provided that Security First would act on behalf
of My Alarm Center to handle service calls.
a. Security First agreed that all calls received from customers for maintenance
and service were forwarded to My Alarm Center for approval.
b. This agreement did not include maintenance and service calls for] the
Township and the Alsace Manor Fire Company and Social Hall.
24. A verbal agreement between Security First and My Alarm Center provided that all
service calls for the Township and the Alsace Manor Fire Company and Social Hall
would be directly the responsibility of Security First.
a. My Alarm Center was responsible for the security monitoring, while Security
First handled service calls.
25. My Alarm Center billed the Township for the security monitoring of the Township
buildings.
a. No payments made to My Alarm Center from the Township for the security
monitoring were to be distributed or provided to Security First.
26. Service calls and maintenance involving the Township were billed directly by
Security First to the Township.
a. None of the payments for maintenance or service work for the Township
performed by Security First were shared or forwarded to My Alarm Center.
27. For the security monitoring and service calls, the Township was billed separately
by My Alarm Center and Security First.
a. All payments made to My Alarm Center and/or Security First were by
separate checks from the Township.
28. Between
2014 and
2017, Security
First billed the Township for the following
services:
Invoice Date
Number Amount
Description
5/8/2014
No Number
$282.02
Panic button for Secretary's desk
8/1/2014
28779
$133.00
Site visit and labor
8/11/2014
No Number
$277.04
Replacement of door strike on ladies
bathroom door at Twp. Park Pavilion and
test security system
1/30/2015 29959 $66.34 12V 7 AH battery for UPS and Rate of
Rise
Kline, 19-009
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Heat det
7/20/2015 31089 $358.00 Service Call
6/2/2016 33112 $350.00 Installation Services 4G Upgrade
6/20/2016 33237 $178.00 RC1 Electric Strike
1/1/2017 35044 $360.00 Fire Company - Monitoring
Recurring Services
5/9/2017 35965 $597.50 Reconnection of Security System
TOTAL $2,601.90
29. Between 2014 and 2017, Kline, as a Supervisor, participated in approving twelve
(12) payments and signing eight (8) Township checks to Security First.
30. My Alarm Center billed the Township for the security monitoring separate from any
of the maintenance or service calls completed by Security First.
a. Any payments that My Alarm Center received from the Township for the
security monitoring were only for the benefit of My Alarm Center.
31. After Kline left service as a Supervisor in 2018, efforts were made by the Board of
Supervisors to remove Security First and My Alarm Center from providing security
monitoring and maintenance to the Township.
32. Security Service Company, Inc., from Fleetwood, Pennsylvania, provided a
security proposal on September 21, 2018, for a three-year period that included:
a. Cost to set up a new system, $1,112.00; and
b. A monthly fee of $144.00 for services that included commercial fire, Vital
Link Fire radio, opening and closing reports, and annual fire inspection.
33. The Board of Supervisors determined that the costs proposed by Security Service
Company, Inc. were more than the [costs for the] services currently being provided
by Security First and My Alarm Center.
THE FOLLOWING FINDINGS RELATE TO KLINE'S FILING OF DEFICIENT
STATEMENTS OF FINANCIAL INTERESTS FOR THE 2014, 2015, AND 2017
CALENDAR YEARS.
34. As a Supervisor, Kline was required to file a Statement of Financial Interests by
May 15t of each year disclosing financial interests for the prior calendar year.
35. Kline failed to include income from the Township as a Member of the Board of
Supervisors on his Statements of Financial Interests filed for calendar years 2014,
2015, and 2017.
a. On the Statement of Financial Interests filed for calendar year 2014, Kline
failed to complete any disclosures for real estate interests, creditors, gifts,
travellhospitalityllodging, and transfer of business interests to immediate
family.
Ill. DISCUSSION:
As a Supervisor for Alsace Township "Township"), Berks County, Pennsylvania,
from approximately 1993 until 2017, Respondent Phillip Kline, also referred to herein as
"Kline," `Respondent Kline," and "Kline," was a public official subject to the provisions of
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the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq.
The allegations are that Kline violated Sections 1103(a), 1103 f), 1105(b)(3),
1105{b)(4), 1105(b)(5), 1105(b)(6), 1105(b)(7), and 1105(b)(10) of the Ethics Act when
he utillized the authhority of his public position for the pecuniary benefit of himself/members
of his immediate family and/or Security First, Inc., a business with which he and/or his
spouse and/or child are/were associated, when he, as a Township Supervisor, entered
into agreements and/or otherwise auth o rizedlapp roved the use of Security First, Inc. as
a vendor of the Township; authorized payment by the Township of public monies to
Security First, Inc.; served as a Township signatory upon checks issued to Security First,
Inc.; entered into contracts/agreements valued at $500 or more between the Township
and Security First, Inc., absent an open and public process; when he failed to identify the
Township as a source of income upon Statements of Financial Interests ("SFIs") filed for
the 2014, 2015, and 2017 calendar years; and when he failed to complete any disclosures
as to real estate interests, creditors, gifts, travel/hospitality/lodging, and transfer of
business interests to immediate family.
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 1103(f) of the Ethics Act imposes certain restrictions as to contracting:
§ 1103. Restricted activities
Kline 19-009
8
(f) Contract. --No public official or public employee or
his spouse or child or any business in which the person or his
spouse or child is associated shall enter into any contract
valued at $500 or more with the governmental body with which
the public official or public employee is associated or any
subcontract valued at $500 or more with any person who has
been awarded a contract with the governmental body with
which the public official or public employee is associated,
unless the contract has been awarded through an open and
public process, including prior public notice and subsequent
public disclosure of all proposals considered and contracts
awarded. In such a case, the public official or public employee
shall not have any supervisory or overall responsibility for the
implementation or administration of the contract. Any contract
or subcontract made in violation of this subsection shall be
voidable by a court of competent jurisdiction if the suit is
commenced within 90 days of the making of the contract or
subcontract.
65 Pa.C.S. § 1103(f).
Section 1103(f) of the Ethics Act provides in part that no public official/public
employee or his spouse or child or business with which the public official/public employee
or his spouse or child is associated may enter into a contract with his governmental body
valued at five hundred dollars or more or any subcontract valued at five hundred dollars
or more with any person who has been awarded a contract with the governmental body
with which the public official/public employee is associated unless the contract is awarded
through an open and public process including prior public notice and subsequent public
disclosure of all proposals considered and contracts awarded.
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 SFl any
direct or indirect interest in any real estate which was sold or leased to or purchased or
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.
Subject to certain statutory exceptions, Section 1105(b)(4) of the Ethics Act
requires the filer to disclose on the SFI the name and address of each creditor to whom
is owed in excess of $6,500 and the interest rate thereon.
Subject to certain statutory exceptions, Section 1105(b)(5) of the Ethics Act
requires the filer to disclose on the SFI the name and address off any direct or indirect
source of income totaling in the aggregate $1,300 or more.
Subject to certain statutory exceptions, Section 1105(b)(6) of the Ethics Act
requires the filer to disclose on the SFI the name and address of the source and the
amount of any gift or gifts valued in the aggregate at $250 or more and the circumstances
of each gift.
Subject to certain statutory exceptions, Section 1105(b)(7) of the Ethics Act
requires the filer to disclose on the SFI the name and address of the source and the
amount of any payment for or reimbursement of actual expenses for transportation and
lodging or hospitality received in connection with public office or employment where such
actual expenses exceed $650 in an aggregate amount per year.
Kline, 19-009
Tage 9
Section 1105(b)(10) of the Ethics Act requires the filer to disclose on the SFI any
financial interest in a business with which he is or has been associated in the preceding
calendar year which has been transferred to a member of his immediate family. The term
"financial interest" is defined in the Ethics Act as 1a]ny financial interest in a legal entity
engaged in business for profit which comprises more than 5% of the equity of the business
or more than 5% of the assets of the economic interest in indebtedness." 65 Pa.C.S. §
1102.
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 Township Board of Supervisors ("Board of Supervisors") consists of three
Members. Township Supervisors receive gross compensation in the amount of $156.25
per month. The Supervisors and the Township SecretarylTreasurer maintain signature
authority over the Township's financial accounts.
Kline served as a Township Supervisor from approximately 1993 until 2017. Kline
served as Chairman of the Board of Supervisors from at least 2005 through 2017. As a
Township Supervisor, Kline was one of the Township officials who maintained signature
authority over the Township's financial accounts.
Kline and his wife, Mary Lou Kline, incorporated Security First, Inc. ("Security
First")in 1990. Security First installs, services, and monitors various types of systems,
including electronic security and fire detection systems, for commercial, residential, and
industrial customers. Between 2013 and 2015, Kline annually conveyed ten percent of
his financial interest in Security First to his son, Steve Kline. In 2017, Kline and Mary Lou
Kline each had a 35% ownership interest in Security First, and Steve Kline had a 30%
ownership interest in Security First.
In or around the late 1990s, the Township began utilizing Security First to provide
security monitoring for the Township building. The Township also utilized Security First
for securionitoring services for the Alsace Manor Fire Company, which provided fire
services Zrfothe Township, as well as the Alsace Manor Fire Company Social Hall.
Beginning in or around 1998, the Township and Security First entered into five-year
contracts which specified that Security First would provide the security alarm systems and
monitor the systems. At the time the Township entered into the contracts with Security
First, bids were not sought, and no other vendors were considered.
In or around 2011, Security First began to divest itself of its security business by
entering into contracts with My Alarm Center, LLC ("My Alarm Center"), a nationwide
security company that provides advanced security systems to homes and businesses.
The divestiture began with Security First transferring security monitoring accounts to My
Alarm Center. On or around April 29, 2011, My Alarm Center acquired approximately
1201 accounts, including accounts for the Township Building and the Alsace Manor Fire
Company and Social Hall, from Security First through an Account Purchase and Sale
Agreement. A verbal agreement between Security First and My Alarm Center provided
that with respect to the Township and the Alsace Manor Fire Companyand Social Hall,
Security First was responsible for handling service calls, while My Alarm Center was
responsible for security monitoring. Security First billed the Township for service calls
and maintenance involving the Township, and My Alarm Center billed the Township for
security monitoring work.
Kline, as a representative of Security First, most recently entered into contracts
with the Township on June 7, 2016, and June 22, 2017. By nine invoices dated between
Ma yy 8, 2014, and May 9,. 2017, Security First billed the Township the total amount of
$2,601.90 for various services provided to the Township. In pertinent part, three invoices
for 2014 totaled $692.06, two invoices for 2016 totaled $528.00, and two invoices for
Kline, 19-009
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2017—including one invoice in the amount of $597.50----totaled $957.50. See, Fact
Finding 28. Between 2014 and 2017, Kline, as a Township Supervisor, participated in
approving twelve payments to Security First and signing eight Township checks to
Security First.
As for Kline's SFIs, Kline: (1) failed to disclose the Township as a source of income
on his SFIs for calendar years 2014, 2015, and 2017; and (2) failed to disclose any real
estate interests, creditors, gifts, travel/hospitality/lodging, or transfer of business interests
to immediate family on his SFI for calendar year 20T4.
Having highlighted the Stipulated Findings and issues before us, we shall now
apply the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Phillip Kline, as a
Supervisor for Alsace Township, utilized the
authority of his public office to enter into
agreements [with] and/or otherwise authorized/
approved the use of Security First, Inc., a
business with which he and/or members of his
immediate family are associated, as a vendor of
the Township.
b. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred when Phillip Kline, as a
Supervisor for Alsace Township, utilized the
authority of his public office to authorize
payment by the Township of public monies to
Security First, Inc., a business with which he
and/or members of his immediate family are
associated.
C. For purposes of this Consent Agreement ONLY,
the allegations concerning violation(s) of
Section 1103(a) of the Public Official and
Employee Ethics Act, 65 Pa.C.S. § 1103(a),
when Phillip Kline, as a Supervisor for Alsace
Township, utilized the authority of his public
office to serve as a Township signatory upon
checks issued to Security First, Inc., merge with
Subparagraph (b) above.
That a violation of Section 1103(f) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(f), occurred when Phillip Kline, as a
Supervisor for Alsace Township, utilized the
authority of his public office to enter into
contracts/agreements valued at $500 or more
between the Township and Security First, Inc. a
business with which he, his spouse and/or chiid
Kline, 19-009
age 11
are/were associated) absent an open and public
process.
e. That technical violation(s) of Section 1105(b)(3),
4), (5), (6), 7) and (10) of the Public Official and
mployee thics Act, 65 Pa.C.S. § 1105(b)(3),
(4), (5), (6), (7) and (10), occurred when PPhillip
Kline, as a Supervisor for Alsace Township,
failed to identify Alsace Township as a source of
income upon Statements of Financial Interests
filed for the 2014, 2015 and 2017 calendar
years; and when he failed to complete any
disclosures as to real estate interests, creditors,
gifts, travel/hospitalityllodging, and transfer of
usiness interests to immediate family.
4. Kline agrees to make payment in the amount of $2,601.90 in
settlement of this matter payable to Alsace Township, Berks
County, and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Kline agrees to file complete and accurate amended
Statements of Financial Interests with Alsace Township,
Berks County, throw h the Pennsylvania State Ethics
Commission, for calendar years 2014, 2015, and 2017 within
thirty (30) days of the issuance of the final adjudication in this
matter.
6. Kline agrees to not accept any reimbursement, compensation
or other payment from Alsace Township, Berks County
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 recommendation of the
parties for a finding that a violation of Section 1103(a) of the Ethics Act occurred when
Kline, as a Township Supervisor, utilized the authority of his public office to enter into
agreements with and/or otherwise authorizedlapproved the use of Security First, a
business with which he and/or members of his immediate family are associated, as a
vendor of the Township.
As of approximately 2013, Kline, his wife, and his son were the owners of Security
First, which handled service calls and maintenance involving the Township's security
systems. Although the Stipulated Findings do not identify any specific action by Kline as
a Township Supervisor as to authorizing or approving the Township's use of Security First
to provide security -related services to the Township, per the Consent Agreement, the
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12
parties are in agreement that Kline did utilize the authority of his public office to enter into
agreements with and/or otherwise a utho rizelap prove the use of Security First as a vendor
of such services.
Based upon the Stipulated Findings and the Consent Agreement, we hold that a
violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Kline,
as a Township Supervisor, utilized the authority of his public office to enter into
agreements with and/or otherwise authorizedlapproved the use of Security First, a
business with which he and/or members of his immediate family are associated, as a
vendor of the Township.
We accept the parties` recommendation for a finding that a violation of Section
1103(a) of the Ethics Act occurred when Kline, as a Township Supervisor, utilized the
authority of his public office to authorize payment by the Township of public monies to
Security First, a business with which he and/or members of his immediate family are
associated.
Between 2014 and 2017, Security First billed the Township the total amount of
$2,601.90 for various services provided to the Township. Kline used the authority of his
public office as a Township Supervisor when he participated in approving twelve
payments to Security First and signing eight Township checks to Security First from 2014
through 2017.
We hold that a violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a),
occurred when Kline, as a Township Supervisor, utilized the authority of his public office
to authorize payment by the Township of public monies to Security First, Inc., a business
with which he andlor members of his immediate family are associated.
We accept the recommendation of the parties for a finding that a violation of
Section 1103(f) of the Ethics Act occurred when Kline, as a Township Supervisor, utilized
the authority of his public office to enter into contractslagreements valued at $500 or more
between the Township and Security First, a business with which he, his spouse and/or
child are/were associated, absent an open and public process.
The Stipulated Findings establish that beginnin in or around 1998, the Township
and Security First entered into five-year contracts, bu?that Kline, as a representative of
Security First, most recently entered into contracts with the Township on June 7, 2016,
and June 22, 2017. Therefore, it is not clear from the Stipulated Findings whether the
services Security First provided to the Township from 2014-2017, as detailed in Fact
Finding 28, were pursuant to five-year contract(s) or yearly contracts commencing at
some point in June of each year. However, either way, for at least some of those years —
including 2016 and 2017—the services provided pursuant to an individual contract
exceeded $500.00, and one particular service billed in May 2017 itself exceeded $500.00.
Althou.9h the Stipulated Findings do not reflect the particular process by which
such contracting occurred, per the Consent Agreement, the parties are in agreement —
and we hold —that a violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f),
occurred when Kline, as a Township Supervisor, utilized the authority of his public office
to enter into contracts/agreements valued at $500 or more between the Township and
Security First, a business with which he, his spouse and/or child are/were associated,
absent an open and public process.
We accept the recommendation of the parties, and we hold, that technical
violation(s) of Section 1105(b)(3), (4), (5), (6), (7) and (10) of the Ethics Act, 65 Pa.C.S.
Pailed
1105(b)(3), (4), (5), (6), (7) and (10), occurred when ��line, as a Township Supervisor,
to identify the Township as a source of income upon SFIs filed for the 2014, 2015,
and 2017 calendar years; and when he failed to complete any disclosures as to real estate
Kline, 19-009
la e13
interests, creditors, gifts, travel/hospitality/lodgging, and transfer of business interests to
immediate family upon his SFI filed for the 2014 calendar year.
As part of the Consent Agreement, Kline has agreed to make payment in the
amount of $2,601.90 payable to Alsace Township, Berks County, and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Kline has agreed to not accept any reimbursement, compensation or other payment from
the Township representing a full or partial reimbursement of the amount paid in settlement
of this matter. Additionally, Kline has agreed to file complete and accurate amended SFIs
with the Township, through this Commission, for calendar years 2014, 2015, and 2017
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.
Accordingly, per the Consent Agreement of the parties, Kline is directed to make
payment in the amount of $2,601.90 payable to Alsace Township, Berks County, and
forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date
of this adjudication and Order.
Kline is directed to not accept any reimbursement, compensation or other payment
from the Township representing a full or partial reimbursement of the amount paid in
settlement of this matter.
To the extent he has not already done so, Kline is directed to file complete and
accurate amended SFIs for calendar years 2014, 2015, and 2017 with the Township,
through this Commission, by no later than the thirtieth (30th) day after the mailing date of
this adjudication and Order.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV. CONCLUSIONS OF LAW:
1. As a Supervisor for Alsace Township ("Township"), Berks County, Pennsylvania,
from approximately 1993 until 2017, Respondent Phillip Kline ("Kline") 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 violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Kline, as a Township Supervisor, utilized the authority of his public office to
enter into agreements with and/or otherwise authorizedlapproved the use of
Security First, Inc., a business with which he and/or members of his immediate
family are associated, as a vendor of the Township.
3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Kline, as a Township Supervisor, utilized the authority of his public office to
authorize payment by the Township of public monies to Security First, Inc., a
business with which he and/or members of his immediate family are associated.
4. Per the Consent Agreement of the parties, a violation of Section 1103(f) of the
Ethics Act, 65 Pa.C.S. § 1103(f), occurred when Kline, as a Township Supervisor,
utilized the authority of his public office to enter into contracts/agreements valued
at $500 or more between the Township and Security First, Inc., a business with
which he, his spouse and/or child are/were associated, absent an open and public
process.
Kline, 19-009
Page 14
5. Technical violation(s) of Section 1105(b)(3 , (4), �5�, (6), (7) and (10) of the Ethics
Act, 65 Pa.C.S. § 1105(b))(3), (4), (5), (6), �7) an10), occurred when Kline, as a
Township Supervisor, failed to identify the Townshcp as a source of income upon
Statements of Financial Interests filed for the 2014, 2015, and 2017 calendar
years; and when he failed to complete any disclosures as to real estate interests,
creditors, gifts, travellhospitalityllodging, and transfer of business interests to
immediate family upon his Statement of Financial Interests fled for the 2014
calendar year.
In Re: Phillip Kline, File Docket: 19-009
Respondent Date Decided: 1/22/20
Date Mailed: 1/29/20
ORDER NO. 1766
1. Phillip Kline ("Kline"): as a Supervisor for Alsace Township ("Township'), Berks
County, Pennsylvania, 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 office to enter into agreements with and/or otherwise
authorized/approved the use of Security First, Inc., a business with which he and/or
members of his immediate family are associated, as a vendor of the Township.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Kline, as a Township Supervisor, utilized the authority of his public office to
authorize payment by the Township of public monies to Security First, Inc., a
business with which he and/or members of his immediate family are associated.
3. Per the Consent Agreement of the parties, a violation of Section 1103(f) of the
Ethics Act, 65 Pa.C.S. § 1103(f), occurred when Kline, as a Township Supervisor,
utilized the authority of his public office to enter into contracts/agreements valued
at $500 or more between the Township and Security First, Inc., a business with
which he, his spouse and/or child are/were associated, absent an open and public
process.
4. Technical violation(s) of Section 1105(b)(3 , (4), (5 , (6), (7) and (10) of the Ethics
Act, 65 Pa.C.S. § 1105(b)(3), (4), (5), (6}, 7) and 10), occurred when Kline, as a
Township Supervisor, failed to identify the Township as a source of income upon
Statements of Financial Interests fled for the 2014, 2015, and 2017 calendar
years; and when he failed to complete any disclosures as to real estate interests,
creditors, gifts, travel/hospitality/lodging, and transfer of business interests to
immediate family upon his Statement of Financial Interests filed for the 2014
calendar year.
5. Per the Consent Agreement of the parties, Kline is directed to make payment in
the amount of $2,601.90 payable to Alsace Township, Berks County, and
forwarded to the Pennsylvania State Ethics Commission by no later than the
thirtieth (30th) day after the mailing date of this Order.
6. Kline is directed to not accept any reimbursement, compensation or other payment
from the Township representing a full or partial reimbursement of the amount paid
in settlement of this matter.
7. To the extent he has not already done so, Kline is directed to file complete and
accurate amended Statements of Financial Interests for calendar years 2014,
2015, and 2017 with the Township, through the Pennsylvania State Ethics
Commission, by no later than the thirtieth (30 ) day after the mailing date of this
Order.
8. Compliance with paragraphs 5, 6, and 7 of this Order will result in the closing of
this case with no further action by this Commission.
Kline, 19-009
16
Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,