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HomeMy WebLinkAbout1776 AugustPHONE: 717-783-1610 TOLL FREE: 1-800-932-0936 In Re: Ralph T. August, Respondent File Docket: X-ref: Date Decided: Date Mailed: FACSIMILE: 717-787'-0806 WEBSITE: Mffiy_ethJcsUa& v Q_ 19-031 Order No. 1776 10/28/20 11/2/20 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 ("Etl- Act""), 5 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of its investi'atin, tIi&` 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. That Ralph August, a public official/public employee in his capacity as a Member of Re noldsville Borough Council, Jefferson County, violated Sections 1103(a), 1103 11104�a), 1104(d), 1105(b)(1), 11,05(b)(2), 1105(b�(3�, 1105(b)(5), 1105(b)(6), 1105(b)( and 11 05(b�(9) of the State Ethics Act (Act 93 o 1 98) when he utilized the authority of his public o ice to obtain a pecuniary benefit for himself and/or a business with which he is associated, namely R.T. August Services, when he engaged himself/R.T. August Services to perform tasks/services for the Borough with the intent to be compensated; when he approved payment of Borough monies to himself and/or R.T. AugusfServices for services/tasks purportedly completed; when he entered into contracts/agreements between himself/R.T. August Services and the Borough in excess of $500.00, absent an open and public process; and when he failed to file a 2017 Statement of Financial Interests with the Borough, and filed deficient Statements of Financial Interests by: failing to disclose his governmental entity (2015), failing to disclose his occupation/profession (2014, 2015, 2016), failing to disclose any real estate interests 2016), failing to disclose any reportable sources of income (2016, 2018), failing to discEe any re ortable gifts .1 15, 2016), and failing to report his office/directorship or emplo, This financial interest in R.T. August Services for calendar years 2014, 2015, 2616, and 2018. P—ag—es2, 19-031 age II. FINDINGS: 1. Ralph "Tucker" August ("August") has served as a Member of Council for Reynoldsville Borough ("Borough`), Jefferson County, from January 3, 2012, through the present. a. August served as President of Borough Council ("Council") from November 6, 2019, to December 31, 2019. 2. August previously held employment with the Borough Police Department from approximately 1968 until February 2011. a. August served as the Borough Chief of Police from approximately May 1987 to February 2011. b. August was a Patrolman from approximately 1968 until May 1987. C. Since his retirement from the Borough Police Department, August has not held any other Borough employment. 1. The Borough Code (8 Pa.C.S. § 1104(b)) prohibits a council member from serving as an employee of a borough with a population of 3,000 or more. 2. According to the 2010 federal census, the population of the Borough was 2,759. 3. The Borough is governed by a seven -Member Council and a Mayor. a. Council convenes for legislative meetings once per month on the third Wednesday of each month. 1. Legislative meetings were scheduled on the third Thursday of each month from June 2020 through September 2020. b. Council holds publicly advertised work sessions on the first Wednesday of each month. 1. Council began holding work sessions in February 2020. 2. Work sessions were scheduled on the third Monday of each month from July 2020 through September 2020. C. Committee and special meetings are called as needed. d. The Mayor possesses voting rights only in the event of a tie amongst voting Members of Council. e. Council Members serve without compensation but receive an annual payment of $500.00 for "expenses." 4. Voting at Council legislative meetings is conducted by group voice vote or individual roll call vote depending on the subject matter. a. Individual roll call votes are taken on contested matters. 1. All other votes are taken by group voice vote. August, 19-031 ap ge 3 b. The legislative meeting minutes document any votes cast in opposition or abstentions by Council Members. 1. Minutes of Council legislative meetings are approved for accuracy by Council at the following month's legislative meeting. 5. Council receives an agenda from the Borough Secretary immediately prior to legislative meetings. a. Each Council Member additionally receives a financial report via email one to three days prior to each legislative meeting. 1. Council Members began receiving financial reports prior to legislative meetings in or around 2018. 2. For each expenditure, the financial report includes, at a minimum, the check date, check number, Borough account from which pa ment is drawn, check amount, budget amount spent, budget balance, and the percentage of budget used. 6. A specific motion and vote occur at each legislative meeting to approve payment of all bills received since the day after the previous legislative meeting through the date of the current legislative meeting. a. The motion and vote regarding approval of the payment of bills occur as a single, all -encompassing voice vote. 7. Borough checks are drafted prior to each legislative meeting once a week. a. Exceptions are made for emergency situations, reimbursement for expenses personally paid, and bills received after legislative meetings have convened. Borough checks that are issued before receiving Council's approval are documented on the following monthly financial statement and are retroactively approved. b. Borough checks are issued after the financial report is approved by Council at the legislative meeting. The checks are signed by authorized Borough signatories during each legislative meeting. 8. Signature authority over the Borough General Fund account is maintained by the Council President, the Council Vice President, another Council Member as determined by Council, and the Borough Secretary/Treasurer. a. Borough checks require the signatures of any two of the authorized signatories. b. All signatures on Borough checks are live signatures. 1. Facsimile stamps are not utilized by the Borough. THE FOLLOWING FINDINGS RELATE TO AUGUST AND/OR R.T. AUGUST SERVICES PERFORMING MOWING FOR THE BOROUGH. AAu uusst, 19-031 aP ge 4 9. R.T. August Services ("RTA") has been owned and operated by August for at least forty years. a. RTA is located at [address redacted]. 1. August utilizes his residential address for RTA. b. RTA offers services including, but not limited to, landscaping, snow plowing, demolition, excavating, brush hogging, and mowing. C. RTA has no filings or records with the Pennsylvania Department of State. d. August is the only employee of RTA. 10. August has assisted the Borough's Public Works Department ("Public Works") with the mowing of flood -control protects since prior to his retirement from the Borough Police Department. a. August's mowing services for the Borough increased about the time when Borough Streets Department employee Thomas Vanyo retired from the Borough. b. August received the same hourly rate as the Public Works employees when he performed non -police work for the Borough. 1. August's hourly rate at the Borough Police Department differed from the hourly rate he was compensated for his labor work. 2. August volunteered his labor to the Borough at no cost between his retirement from the Borough Police Department in February 2011 and in or around June 2016. 11. August is documented as having performed mowing for the Borough as early as May 23, 2012. a. Legislative meeting minutes from May 23, 2012, state, in part: "It was noted that the flood control is being mowed by August, at no charge." b. Legislative meeting minutes from July 25, 2012, further documented August's services, stating: "At this time [Jack] Matusky thanked August for all of the assistance [August] gives to the Borough." 1. Jack Matusky ("Matusky") is a former Council Member. G. August further volunteered his services during the legislative meeting held on November 25, 2013, for any "Borough Crew work. 1. August extended his assistance due to an injury suffered by a Borough Streets Department employee at that time. 12. The flood -control projects in the Borough include the waterways and areas (tributaries, banks, etc.) surrounding Sandy Lick Creek, Soldier Run, and Pitchpine Run. August, 19-031 Page 5 a. The flood -control projects were created/are regulated by either the United States Army Corps of Engineers and/or the Pennsylvania Department of Environmental Protection. b. Flood -control in the Borough dates back to at least 1996. C. The Reynoldsville/Soldier Run flood -control project consists of a drainage area of 12.7 square miles. d. The mowable bank of Soldier Run is approximately 1.22 miles. e. The mowable bank of Sandy Lick Creek is approximately 2.25 miles. 13. The Borough owns a 2006 John Deere 6420 Utility Tractor ("Tractor"). a. The Tractor is stored at the Borough Maintenance Building located at 61 S. 5th Street, Reynoldsville. b. August and/or Public Works employees use the Tractor to mow the flood - control areas. 14. At some point prior to June 24, 2016, Council Member Matusky approached August to discuss the services that August and/or RTA were performing for the Borough. a. During the conversation, Matusky suggested that August should be compensated for his work. b. Prior to that time, August was volunteering his time spent mowing the flood - control areas. C. Matusky believes that he suggested August be paid for mowing at a public meeting. 15. In or about June of 2016, August began receiving compensation from the Borough for mowing the flood -control areas. a. The mowing services performed by August and/or RTA were never the subject of a request for proposals (RFP) or public bidding. The Borough did not request telephonic quotes for the mowing services performed by August and/or RTA. 2. August has not been an employee of the Borough since his retirement from the Borough Police Department in 2011. 3. The Borough never issued an IRS Form W-2 Wage and Tax Statement to August in relation to any work that August and/or RTA performed for the Borough between 2016 and 2019. b. August and/or RTA did not hold any written contracts with the Borough for mowing or any other services (excavation, demolition, snow removal, etc.) between 2016 and the present. 16. Borough Street Supervisor Gary Troutman ("Troutman") submitted August's claimed work hours to Borough Secretary/Treasurer Jacqueline Dixon ("Dixon") in order for August and/or RTA to be paid. August, 19-031 Page 6 a. August would document/write the hours he worked on a paper calendar that he maintained at the Borough Maintenance Building. b. Troutman copied the number of hours August identified on the calendar and forwarded those total hours to Dixon. C. Troutman did not verify that August accurately recorded or actually worked the times/hours claimed. 1. Troutman does not supervise August as a Borough employee. 2. After copying/transferring August's claimed hours, Troutman initialed each sheet, signifying his approval for payment. d. August recorded/submitted the hours he worked for the Borough at the Borough Maintenance Building with a reasonable expectation that he would later be compensated by the Borough. 17. Troutman did not submit August's hours to Dixon on a regular or consistent basis. a. Troutman provided August's hours to Dixon when he remembered to do so. b. August's calendar sheets were not maintained by Troutman after he recorded August's hours. 1. Troutman threw away August's calendar sheets after he recorded/copied the hours. 2. Troutman's hand-written sheets documenting August's hours were used as the support documentation for payments made to August and/or RTA. 18. On or about June 24, 2016, the Borough issued Check No. 26858 to August/RTA as payment for mowing services performed by August and/or RTA. a. The check stub for Check No. 26858 contains handwritten information documenting the following: 1. 73 hrs. mowing; 2. Jason [Srock], Jack [Matusky], Jim [Venture], TJ [Sliwinski]; aa. Srock, Matusky, Venture, and Sliwinski were all Council Members who approved the payment/issuance of Check No. 26858 to August and/or RTA. bb. The four names written on the check stub represented the majority of Council. 3. Contract mowing 'orb (1); and 4. Troutman's handwritten signature. b. Dixon handwrote all information on the check stub, excluding Troutman's signature. Au, 19-031 Pa Troutman's signature was affixed to the check stub for Check No. 26858, which documented Troutman's approval of August's service hours. C. Check No. 26858 represented the initial payment made to August and/or RTA for mowing since August's retirement in 2011. 19. During the December 21, 2016, legislative meeting, Council took action as follows: "Motion by Clark, seconded by Venture to approve to pay August for the hours he has mowed on the flood control. Question on motion. Motion carried by unanimous vote." a. August was present and voted to approve payment to himself in relation to the mowing he performed for the Borough. 1. The motion specifically approved compensation to August. 2. The Borou h subsequently issued a check payable to RTA on December Y3, 2016. b. Council Members Robert Crosby and Jason Srock were absent from the December 21, 2016, legislative meeting. 20. Action taken by Council at the December 21, 2016, legislative meeting was the only official action taken by Council during any regular or special meeting which specifically addressed compensation to August and/or RTA for mowing for the Borough. a. Legislative meeting and work session minutes from January 7, 2011, through May 6, 2020, identify no other instances of Council approving compensation to August and/or RTA for services performed. b. The December 21, 2016, vote by Council approved payment to August for approximately thirty-one hours of mowing completed between August 15, 2016, and September 5, 2016. C. August and/or RTA had received payment from the Borough for other mowing that August/RTA had completed earlier in June 2016. 21. August and/or RTA received a total of eleven checks from the Borough, spanning the dates of June 24, 2016, through September 27, 2019, totaling $12,013.68 in relation to mowing and other services provided by August and/or RTA. a. August and/or RTA never held any written service contract with the Borough. Council never approved nor set an hourly rate at which to compensate August and/or RTA for services provided to the Borough during any regular or special meeting. aa. August and/or RTA were paid at the same hourly rate as the Borough laborers when using the equipment provided by the Borough. Au_ust, 19-031 Page 8 2. August and/or RTA were compensated at $65.00 per hour when August utilized his own equipment. b. August was compensated in the same manner (i.e., same rate of pay as Borough laborers) when he worked as a part-time Borough laborer while employed with the Borough Police Department. 22. As a Council Member, August signed, as an authorized signatory, at least seven g Borou h checks made payable to RTA on the Borough General Fund account [account number redacted] held at Community First Bank or Farmers National Bank. a. Farmers National Bank acquired Community First Bank on or around October 1, 2018. b. August was an authorized signatory on the Borough General Fund account from January 2, 2018, until January 6, 2020. C. August negotiated all Borough checks made payable to August and/or RTA. 1. Ralph T. August and/or R.T. August was affixed on the endorsement line of each check. 23. August participated in approving financial statements identifying at least nine checks to be issued to August and/or RTA by the Borough. a. August was present for at least nine legislative meetings at which financial statements that identified payments to August and/or RTA were presented. b. August motioned to approve at least eight financial statements which included payments to him andlor RTA. C. August voted in favor of aroving at least nine of the eleven checks issued pp to him and/or RTA by the Borough. 24. For calendar year 2020, August has performed 105.5 hours of mowing for the Borough. a. August has not sought or received payment in relation to this mowing. b. August has not sought payment pending the resolution of the instant matter. C. Presuming that August continues to receive $15.00 an hour, the value of the mowing completed for 2020 is $1,582.50 (105.5 x $15.00 = $1,582.50). THE FOLLOWING FINDINGS RELATE TO SNOW PLOWINGIREMOVAL THAT AUGUST/RTA PERFORMED FOR THE BOROUGH IN 2015. 25. August had performed snow removal for the Borough since prior to his retirement as a Borough Police Officer. a. August performed snow removal using his privately -owned equipment. b. August provided/assisted the Borough with snow removal on an as -needed basis. C. August performed snow removal when he determined there was a need to assist. AAu ust, 19-031 Page 9 The Borough never challenged or refused August's assistance with snow removal. 26. In early 2015, August and/or RTA submitted at least three invoices to the Borough in the total amount of $990.00, in relation to snow removal services. 27. August and/or RTA were issued Check No. 25242 on March 17, 2015, in the amount of $990.00 from the Borough General Fund account. a. August deposited Check No. 25242 into RTA's Community First Bank Account on March 19, 2015. b. August and/or RTA did not have any Council -approved written service contract with the Borough at the time the snow removal services were performed. 28. August participated in approving the payment of Check No. 25242 during the legislative meeting held on March 18, 2015. a. August was present and motioned and voted to approve the financial statement that included Check No. 25242 payable to RTA, which motion passed via a unanimous 6-0 vote. b. Council Member TJ Sliwinski was absent from the March 18, 2015, legislative meeting. 29. Council never formally nor retroactively approved August and/or RTA to perform snow removal services for the Borough during any regular or special meeting of Council. a. Council never publicly discussed August and/or RTA performing snow removal services during any regular or special meeting. THE FOLLOWING FINDINGS RELATE TO AUGUST FAILING TO FILE A CALENDAR YEAR 2017 STATEMENT OF FINANCIAL INTERESTS FORM WITH THE BOROUGH AND FILING DEFICIENT STATEMENT OF FINANCIAL INTERESTS FORMS FOR CALENDAR YEARS 2014, 2015, 2016, AND 2018. 30. On October 8, 2019, a Statement of Financial Interests compliance review was conducted for the Borough at the Borough Municipal Building, located at 460 E. Main Street, Reynoldsville, Pennsylvania 15851. a. August's Statement of Financial Interests forms for calendar gears 2014, 2015, 2016, and 2018 were obtained from the Borough Municipal Building on October 8, 2019. 1. The Borough had no record of August's calendar year 2017 Statement of Financial Interests form. 31. August filed Statement of Financial Interests forms for calendar years 2014, 2015, 20% and 2018 in compliance with Section 1104(a) of the Ethics Act as follows: Date Filed Calendar Year 01 /29/2015 2014 02/02/2016 2015 02/23/2017 2016 03/11/2019 2018 Au ust, 19-031 aFa f0 32. August did not maintain a Statement of Financial Interests form for calendar year 2017 at the Borough Office as required by Section 1104(a) of the Ethics Act. 33. August filed deficient Statements of Financial Interests as follows: a. August neglected to disclose the Borough as the governmental entity for which he held public office on his Statement of Financial Interests form filed for calendar year 2015. b. August neglected to complete any disclosure regarding his occupation or profession on his Statement of Financial Interests forms filed for calendar years 2014, 2015, and 2016. C. August neglected to complete any disclosure regarding any real estate interests on his Statement of Financial Interests form filed for calendar year 2016. d. August neglected to complete any disclosure regarding all direct or indirect sources of income totaling $1,300 or more on his Statement of Financial Interests forms filed for calendar years 2016 and 2018. e. August neglected to complete any disclosure regarding any gifts on his Statement of Financial Interests forms filed for calendar years 2015 and 2016. f. August neglected to complete any disclosure regarding any office, directorship, and/or employment in any business on his Statement of Financial Interests forms filed for calendar years 2014, 2015, 2016, and 2018. III. DISCUSSION: As a Member of Council for Reynoldsville Borough ("Borough"), Jefferson County, from January 3, 2012, through the present, Respondent Ralph T. August, also referred to hereinafter as "Respondent," "Respondent August," and `August,' has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et sqq. The alleggations are that August violated Sections 1103(a), 1'103(f), 1104(a), 1104 d 1105(b)(1), 1105(b) 2), 1105(b)(3), 1'105(b)(5), 1105(b)(6), '1105(b)(8), and 1105�b�(9) of the Ethics Act: {1� when he utilized the authority of his public office to obtain a pecuniary benefit for himself and/or a business with which he is associated, namely R.T. August Services, when he engaged himself/R.T. August Services to perform tasks/services for the Borough with the intent to be compensated; (2) when he approved the payment of Borough monies to himself and/or R.T. August Services for services/tasks purportedly completed; (3) when he entered into contracts/agreements between himself/R.T. August Services and the Borough in excess of $500.00 absent an open and public process; (4) when he failed to file a calendar year 2017 Statement of Financial Interests ("SFI") with the Borough; and (5) when he filed deficient SFIs by failing to disclose his governmental entity (calendar year 2015), failing to disclose his occupation/profession (calendar years 2014, 2015, and 2016), failing to disclose any real estate interests (calendar year 2016), failing to disclose any reportable sources of income calendar years 2016 and 2018), failing to disclose any reportable gifts (calendar years 015 and 2016), and failing to report his office, directorshipp or empployyment and his financial interest in R.T. August Services (calendar years 2014, 2015, 2016, and 2018). August, 19�-031 aP ge 11 Per the Consent Agreement, the Investigative Division has exercised its prosecutorial discretion to nol pros the allegation under Section 1104(d) of the Ethics Act. Based upon the nol pros, we need not address the Section 1104(d) allegation that is no longer before us. Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is prohibited from engaging in conduct that constitutes a conflict of interest: § 1103. Restricted activities (a) Conflict of interest. —No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined in the Ethics Act as follows: § 1102. Definitions "Conflict" or "conflict of interest."" Use by a public official or public employyee 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. Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or "conflict of interest," 65 Pa.C.S. § 1102, pursuant to Section 1103(a) of the Ethics Act, a public officiallpublic employee is prohibited from using the authority of public office/employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official/public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting: § 1103. Restricted activities (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 AAu ust, 19-031 aP ge 12 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 1104(a) of the Ethics Act provides that each public official/public employee must file an SFI for the preceding calendar year, each year that he Folds the position and the year after he leaves it. 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)1) of the Ethics Act requires the filer to disclose on the SFI his name, address, and public position. Section 1105(b)(2) of the Ethics Act requires the filer to disclose on the SFI his occupation or profession. 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 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) 5) of the Ethics Act requires the filer to disclose on the SFI the name and address OT 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. Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any office, directorship or employment in any business entity. Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any financial interest in any legal entity enciaed in business for profit. The term "financial interest" is defined in the Ethics Act as"[aIny 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. August, 19-031 Page 13 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 Borough is governed by a seven -Member Council and a Mayor. August has served as a Member of Borough Council ("Council") from January 3, 2012, through the present. August served as President of Council from November 6, 2019, to December 31, 2019. August was previously employed as the Borough Chief of Police from approximately 1987 until February 2011, when he retired from the Borough Police Department. Council convenes for legislative meetings once per month. Borough checks are documented on a monthly financial statementlreport that is approved by Council during each legislative meeting. Borough checks are signed by authorized Borough signatories during each legislative meeting. Signature authority over the Borough General Fund account is maintained by the Council President, the Council Vice President, another Council Member as determined by Council, and the Borough Secretary/Treasurer. Borough checks require the signatures of any two of the authorized signatories. August has owned and operated R.T. August Services ("RTA") for at least forty years. RTA offers various services, including landscaping, snow plowing, demolition, excavating, brush hogging, and mowing. August is RTA's only employee. Before August retired from the Borough Police Department in February 2011, he began assisting the Borough with snow removal on an as -needed basis. August performed snow removal for the Borough when he determined there was a need for assistance, and he used his privately -owned equipment. In early 2015, August and/or RTA (also referred to herein as "August/RTA") submitted at feast three invoices totaling $990.00 to the Borough for performing snow removal services. August/RTA did not have a Council -approved written service contract with the Borough at the time the snow removal services were performed. On March 17, 2015, Check No. 25242 in the amount of $990.00 was issued to August/RTA from the Borough General Fund. At the March 18, 2015, legislative meeting of Council, August motioned and voted to approve the monthly financial state ment/report that included Check No. 25242. The performance by August/RTA of snow removal services was never publicly discussed or formally approved by Council at a legislative or special meeting. Before August retired from his Borough employment in February 2011, he began assisting the Borough Public Works Department with the mowing of the Borough's flood - control areas, which include the banks surrounding Sandy Lick Creek, Soldier Run, and Pitchpine Run, Between February 2011 and approximately June 2016, August volunteered his labor to the Borough. At some point prior to June 24, 2016, Council Member Jack Matusky ("Matusky") approached August to discuss the mowing services that were being performed for the Borough by August/RTA. During the conversation, Matusky suggested that August should be compensated for the mowing work. In or about June 2016, August/RTA began receiving compensation from the Borough for mowing the flood -control areas. The mowing services performed by August/RTA were never the subject of a request for proposals or public bidding, and the Borough never requested telephonic quotes for the mowing services. August/RTA did not hold any written contracts with the Borough for mowing or any other services between 2016 and the present. August wrote the hours he worked for the Borough on a paper calendar that he maintained at the Borough Maintenance Building. August recorded the hours he worked August, 19-031 aP ge 14 with a reasonable expectation that he would later receive compensation from the Borough. Borough Street Supervisor Gary Troutman ("Troutman", submitted August's work hours to Borough Secretary/Treasurer Jacqueline Dixon ('Dixon") in order for AugustlRTA to be paid. Troutman did not submit August's hours to Dixon on a regular or consistent basis. On or about June 24, 2016, the Borough issued Check No. 26858 to AugustlRTA as payment for 73 hours of mowing services performed by AugustlRTA. Check No. 26868 represented the initial payment made to AugustlRTA for mowing. At the December 21, 2016, legislative meeting of Council, August participated in a unanimous vote of Council that approved payment to him for approximately thirtyy one hours of mowing completed between August 15, 2016, and September 5, 2016. Leg islative meeting and work session minutes from January 7, 2011, through May 6, 2020, identify no other instance where Council specifically approved compensation to AugustlRTA for mowing for the Borough. From approximately June 24, 2016, through September 27, 2019, AugustlRTA received eleven Borough checks totaling $12,013.68 as payment for mowing and other services that AugustlRTA performed for the Borough. Council did not approve or set an hourly rate at which to compensate AuggustlRTA for services performed for the Borough. Compensation was paid to AugustlRTA at the hourly rate for Borough laborers when AugustlRTA utilized Borough-providedequipment and at the hourly rate of $65.00 when AugustlRTA utilized August's own equipment. At legislative meetings of Council, August made motions to approve at least eight monthly financial statementslreports that included payment to AugustlRTA, and he voted to approve at least nine monthly financial statements/reports that included payment to AugustlRTA. August signed, as an authorized Borough signatory, at least seven Borough checks that were issued to AugustlRTA from the Borough General Fund account. For calendar year 2020, August has performed 105.5 hours of mowing for the Borough. August has not sought or received payment in relation to this mowing. As for August's SFIs, an SFl compliance review was conducted at the Borough Municipal Building on October 8, 2019. August's SFIs for calendar years 2014, 2015, 2016, and 2018 were on file with the Borough. The Borough had no record of August's SFI for calendar year 2017. August filed deficient SFIs for calendar years 2014, 2015, 2016, and 2018 by: (1) neglecting to disclose the Borough as the governmental entity for which he held public office on his SFI for calendar year 2015; (2) neglecting to complete any disclosure reggardIn his occupation or profession on his SFIs for calendar years 2014, 2015, and 2016; (33 neglecting to complete any disclosure regarding any real estate interests on his SFI for calendar year 2016; (4) neglectin to complete any disclosure regarding all direct or indirect sources of income totaling $ 200 or more on his SFIs for calendar years 2016 and 2018; (5) neglecting to complete any disclosure regarding any gifts on his SFIs for calendar years 2015 and 2016; and (6) neglecting to complete any disclosure regarding any office, directorship, or employment in any business on his SFIs for calendar years h14, 2015, 2016, and 2018. 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: August, 19-031 aige 75 a. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. 1103(a), occurred in relation to August utilizing the authority of his public office to obtain a pecuniary benefit for himself and/or a business with which he is associated, namely R.T. August Services, when he engaged himself/R.T. August Services to perform tasks/services for the Borough with the intent to be compensated, in that evidence suggests Borough officials tacitly approved August performing work for compensation. b. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to August approving payment of Borough monies to himself and/or R.T. August Services for servicesltasks completed to the benefit of the Borough. C. That a technical violation of Section 1103(f) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(f), occurred in relation to August entering into contractslagreements between himselflR.T. August Services and the Borouggh in excess of $500.00 absent an open and public process, in that no formal arrangement between the Borough and August/R.T. August Services existed. d. That a violation of Section 1104(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(a), occurred in relation to August failing to maintain a 2017 calendar year Statement of Financial Interests with the Borough. e. That a technical violation of Sections 1105(b)(1), (2), (3), (5), (6), (% (9} of the Public Official and Employee Ethics Act, 65 Pa.C.S. §§ 1105(b)(1), (2), (3), (5), (6), (8), (9), occurred in relation to August filing deficient Statements of Financial Interests b : failingto disclose his governmental entity (2015), failing to disclose his occupatio nlprofession (2014, 2015, 2016), failing to disclose any real estate interests (2016), failing to disclose any reportable sources of income (2016, 2018), failing to disclose any reportable gifts (2015, 2016), and failing to report his office, directorship or employment and his financial interest in R.T. Auggust Services for calendar years 2014, 2015, 2016, and 2018, in that the omissions were negligent as opposed to intentional. f. That no action will be undertaken pursuant to Section 1104(d) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(d). AAu u�st, 19-031 Page 16 August agrees to make payment in the amount of $500.00 in settlement of this matter payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. August further agrees to forego and neither seek nor accept any remuneration from either the Borough of Reynoldsville, or any other person or entity, for mowing services performed by August and/or R.T. August Services, on behalf of the Borough of Reynoldsville, Jefferson County, during calendar year 2020. 5. August agrees to file complete and accurate amended Statements of Financial Interests with the Reynoldsville Borough Council, Jefferson County, through the Pennsylvania State Ethics Commission, for calendar years 2014, 2015, 2016, 2017, and 2018 within thirty (30) days of the issuance of the final adjudication in this matter. 6. August agrees to not accept any reimbursement, compensation or other payment from the Reynoldsville Borough Council, 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, the parties have recommended we find that no violation of Section 1103(a) of the Ethics Act occurred in relation to the allegation that August utilized the authority of his public office to obtain a pecuniary benefit for himself and/or a business with which he is associated, namely RTA, when he engaged himself/RTA to perform tasks/services for the Borough with the intent to be compensated. The parties' reasoning is that evidence suggests Borough officials tacitly approved August performing work for compensation. We recognize the prosecutorial discretion of the Investigative Division to opt to not further pursue such alleged violation as part of a negotiated settlement agreement. Without adopting any particular reasoning of the parties, we accept the parties' recommendation and hold that as part of a negotiated settlement agreement, no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to the allegation that August utilized the authority of his public office to obtain a pecuniary benefit for himself and/or a business with which he is associated, namely RTA, when he engaged himself/RTA to perform tasks/services for the Borough with the intent to be compensated. We accept the recommendation of the parties for a finding that a violation of Section 1103(a) of the Ethics Act occurred in relation to August approving payment of AAu ust, 19-031 aP ge 17 Borough monies to himself and/or RTA for services/tasks completed to the benefit of the Borough. In early 2015, August/RTA submitted at least three invoices totaling $990.00 to the Borough for snow removal services performed by August/RTA. August used the authority of his public office when, at the March 18, 2015, legislative meeting of Council, he motioned and voted to approve the monthly financial statement/report that included a check in the amount of $990.00 which was issued to August/RTA from the Borough General Fund account. In addition to receiving payment from the Borough for performing snow removal services, from approximately June 24, 2016, through September 27, 2019, August/RTA received eleven Borough checks totaling $12,013.68 as payment for mowing and other services performed for the Borough. August further used the authority of his public office when he: (1) made a motion to approve at least eight monthly financial statements/reports that included payment to August/RTA for mowing/other services; (2) voted to approve at least nine monthly financial statements/reports that included payment to August/RTA for mowing/other services; and (3) signed, as an authorized Borough signatory,, at least seven of the eleven Borough checks that were issued to August/RTA for mowing/other 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 in relation to August approving payment of Borough monies to himself and/or RTA for services/tasks completed to the benefit of the Borough. We accept the recommendation of the parties for a finding that a technical violation of Section 1103(f) of the Ethics Act occurred in relation to August entering into contracts/agreements between himselflRTA and the Borough in excess of $500.00 absent an open and public process, in that no formal arrangement between the Borough and August/RTA existed. In March 2015, August/RTA received $990.00 from the Borough for performing snow removal services. The performance by August/RTA of snow removal services was never publicly discussed or formally approved by Council at a legislative or special meeting. From approximately June 24, 2016, through September 27, 2019, August/RTA received $12,013.68 from the Borough for performing mowing and other services. The mowing services performed by August/RTA were never the subject of a request for proposals or public bidding, the Borough never requested telephonic quotes for the mowing services, and August/RTA did not hold any written contracts with the Borough for mowing or any other services. We hold that a technical violation of Section 1103(f) of the Ethics Act, 65 Pa. C.S. 1103(f�, occurred in relation to August enteringinto contracts/agreements between himselflRTA and the Borough in excess of $500.00 absent an open and public process, in that no formal arrangement between the Borough and August/RTA existed. We agree with the parties, and we hold, that a violation of Section 1104(a) of the Ethics Act, 65 Pa-C.S. § 1104(a}, occurred in relation to August failing to maintain an SFI for calendar year 2017 with the Borough. As for the allegations regarding Au ust's SFIs for calendar years 2014, 2015, 2016, and 2018, it is clear that August: (1} neglected to disclose the Borough as the governmental entity for which he held public office on his SFI for calendar year 2015; neglected to complete any disclosure regarding his occupation or profession on his S�.2) Is for calendar years 2014, 2015, and 2016; (3) neglected to complete any disclosure regarding any real estate interests on his SFI for calendar year 2016; (4) neglected to complete any disclosure regarding all direct or indirect sources of income totaling $1,300 & ust, 19-031 Page 18 or more on his SFIs for calendar years 2016 and 2018; (5) neglected to complete any disclosure regarding any gifts on his SFIs for calendar years 2015 and 2016; and (6) neglected to complete any disclosure regarding any office, directorship, or employyment in any. business on his SFIs for calendar years 2014, 2015, 2016, and 2018. Although there is no indication in the Stipulated Findings that August neglected to disclose his financial interest in RTA on his SFIs for calendar years 2014, 2015, 2016, and 2018, based upon the Consent Agreement, it would appear the parties are in agreement that August did in fact neglect to do so. Accordingly, we hold that a technical violation of Sections 1105(b (1), (2), (3), (5), (6), (8), (9) of the Ethics Act, 65 Pa.C.S. §§ 1105(b)(1), (2), (3), (5), (6), �8), (9), occurred in relation to August filing deficient SFIs by failing to disclose his governmental entity (calendar year 2015), failing to disclose his occupation/profession (calendar years 2014, 2015, and 2016), failing to disclose any real estate interests (calendar year 2016), failing to disclose any reportable sources of income (calendar years 2016 and 2018), failing to disclose any reportable gifts (calendar years 2015 and 2016), and failing to report his office, directorship or employment and his financial interest in RTA (calendar years 2014, 2015, 2016, and 2018), in that the omissions were negligent as opposed to intentional. As part of the Consent Agreement, August has agreed to make payment in the amount of $500.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. August has agreed to not accept any reimbursement, compensation or other payment from Council representing a full or partial reimbursement of the amount paid in settlement of this matter. August has further agreed to forego and neither seek nor accept any remuneration from either the Borough or any other person or entity for mowing services performed by August and/or RTA on behalf of the Borough during calendar year 2020. August has additionallyy aggreed file complete and accurate SFIs/amended SFIs for calendar years 2014, 2015, 2016, 2017, and 2018 with Council, through this Commission, 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, August is directed to make payment in the amount of $500.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30t") day after the mailing date of this adjudication and Order. August is directed to not accept any reimbursement, compensation or other payment from Council representing a full or partial reimbursement of the amount paid in settlement of this matter. August is ordered to fulfill his agreement to forego and neither seek nor accept any remuneration from either the Borough or any other person or entity for mowing services performed by August and/or RTA on behalf of the Borough during calendar year 2020. To the extent he has not already done so, August is directed to file complete and accurate SFIs/amended SFIs for calendar years 2014, 2015, 2016, 2017, and 2018 with Council, through this Commission, by no later than the thirtieth (30t") day after the mailing date of this adjudication and Order. Compliance with the foreggoing will result in the closing of this case with no further action by this Commission. �foncompliance will result in the institution of an order enforcement action. Amu ust, 19-031 Page 19 IV. CONCLUSIONS OF LAW: As a Member of Council for Reynoldsville Borough ("Borough"), Jefferson County, from January 3, 2012, through the present, Respondent Ralph T. August ("August") has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et sec . 2. As part of a negotiated settlement agreement, no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to the allegation that August utilized the authority of his public office to obtain a pecuniary benefit for himself and/or a business with which he is associated, namely R.T. August Services, when he engaged himself/R.T. August Services to perform tasks/services for the Borough with the intent to be compensated. 3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to August approving payyment of Borough monies to himself and/or R.T. August Services for servicesltasks completed to the benefit of the Borough. 4. A technical violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred in relation to August entering into contractslagreements between himself/R.T. August Services and the Borough in excess of $500,00 absent an open and public process, in that no formal arrangement between the Borough and August/R.T. August Services existed. 5. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred in relation to August failing to maintain a Statement of Financial Interests for calendar year 2017 with the Borough. 6. A technical violation of Sections 1105(b)(1}, (2}, (3), (5), (6), (8), (9) of the Ethics Act, 65 Pa.C.S. §§ 1105(b)(1), {2}, { ), (), (), (8), (9), occurred in relation to August filingdeficient Stattements of Financial/ (6 (8),s( by failing to disclose his governmenal entity (calendar year 2015), failing to disclose his occupation/profession (calendar years 2014, 2015, and 2016), failing to disclose any real estate interests (calendar year 2016), failing to disclose any reportable sources of income (calendar years 2016 and 2018), failing to disclose any reportable gifts (calendar years 2015 and 2016), and failing to report his office, directorship or employment and his financial interest in R.T. August Services (calendar years 2014, 2015, 2016, and 2018), in that the omissions were negligent as opposed to intentional. In Re: Ralph T. August, File Docket: 19-031 Respondent Date Decided: 10/28/20 Date Mailed: 11/2/20 ORDER NO. 1776 As part of a negotiated settlement agreement, no violation of Section 1103(a) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1103(a), occurred in relation to the allegation that Ralph T. August ("August"), as a Member of Council for Reynoldsville Borough ("Borough"), Jefferson County, utilized the authority of his public office to obtain a ecuniarybenefit for himself and/or a business with which he is associated, namely R.T. August Services, when he engaged himself/R.T. August Services to perform tasks/services for the Borough with the intent to be compensated. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to August approving payyment of Borough monies to himself and/or R.T. August Services for servicesltasks completed to the benefit of the Borough. 3. A technical violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred in relation to August entering into contracts/agreements between himself/R.T. August Services and the Borough in excess of $500.00 absent an open and public process, in that no formal arrangement between the Borough and August/R.T. August Services existed. 4. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred in relation to August failing to maintain a Statement of Financial Interests for calendar year 2017 with the Borough. 5. A technical violation of Sections 1105 b)(1 , (2 , (3 , (5), (6), (8), (9) of the Ethics Act, 65 Pa.C.S. §§ 1105(b)(1), (2), ( ), ( ), l � { ), (9), occurred in relation to August filing deficient Statements of Financial nterests by failing to disclose his governmental entity (calendar year 2015), failing to disclose his occupation/profession (calendar years 2014, 2015, and 2016), failing to disclose any real estate interests (calendar year 2016), failing to disclose any reportable sources of income (calendar years 2016 and 2018), failing to disclose any reportable gifts (calendar years 2015 and 2016), and failingg to report his office, directorship or employment and his financial interest in F.T. August Services (calendar years 2014, 2015, 2016, and 2018), in that the omissions were negligent as opposed to intentional. 6. Per the Consent Agreement of the parties, August is directed to make payment in the amount of $500.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. 7. August is directed to not accept any reimbursement, compensation or other payment from Council representing a full or partial reimbursement of the amount paid in settlement of this matter. 8. August is ordered to fulfill his agreement to forego and neither seek nor accept any remuneration from either the Borough or any other person or entity for mowing services performed by August and/or R.T. August Services on behalf of the Borough during calendar year 2020. 9. To the extent he has not already done so, August is directed to file complete and accurate Statements of Financial Interests/amended Statements of Financial Auqust, 19-031 Pap 21 Interests for calendar years 2014, 2015, 2016, 2017, and 2018 with Council, through the Pennsylvania State Ethics Commission, by no later than the thirtieth (30th) day after the mailing date of this Order. 10. Compliance with paragraphs 6, 7, 8, and 9 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, f f it 0 . • -