Loading...
HomeMy WebLinkAbout1766 KlinePHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 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 2 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 Fa- ge 3 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 Kline, 19-009 l e4 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 Fage 6 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 Kline, 19-009 f e7 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 ' g 10 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 Kline, 19-009 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,