CommissionconductedaninvestigationregardingpossibleviolationsofthePublicOfficialandEmployeeEthicsActEthicsAct65PaCS1101etseqbytheabovenamedRespondentAtthecommencementofitsinvestigationtheInvestigativeDivisionserveduponRespondentwrittennoticeofthespecificallegationsUponcompletionofitsinvestigationtheInvestigativeDivisionissuedandserveduponRespondentaFindingsReportidentifiedasanInvestigativeComplaintAStipulationofFindingsandaConsentAgreementweresubsequentlysubmittedbythepartiestotheCommissionforconsiderationTheStipulatedFindingsaresetforthastheFindingsinthisOrderTheConsentAgreementhasbeenapprovedIALLEGATIONSThatJamesEllisonapublicofficialpublicemployeeinhiscapacityasaMemberofTheHarrisburgAuthorityviolatedSections1103aand1103foftheStateEthicsActAct93of199865PaCS1103aand1103fwhenheparticipatedindiscussionsandactionsoftheAuthorityresultingincontractsbeingenteredintowithabusinesswithwhichheisassociatedRhoadsandSinonlawfirmandwhenthecontractswereenteredintowithoutanopenandpublicprocessandwhenhesubsequentlyparticipatedinAuthorityBoardactionsresultinginpaymentsbeingissuedtoRhoadsandSinonIIFINDINGS1JamesEllisonservedasaMemberoftheBoardofDirectorsBoardofTheHarrisburgAuthorityTHAfromAugust2007untilMarch122010aEllisonwasappointedtotheTHABoardbyHarrisburgCityCouncilinJanuary2007butwasnotseatedasaTHABoardMemberuntilAugust2007duetocourtchallengestotheappointmentbyHarrisburgMayorStephenReed2EllisonservedasChairmanandChairpersonoftheBoardforTHAfromAugust2007untilMarch122010whenheresignedfromhispositionwithTHA3EllisonwasnotcompensatedasaMemberoftheTHABoard

In Re James Ellison File Docket 10 046 Respondent X ref Order No 1600 Date Decided 4 12 12 Date Mailed 4 27 12 Before Louis W Fryman Chair Donald M McCurdy K Raquel Bergen Nicholas A Colafella Mark Volk This is a adjudication final of the State Ethics Commission Procedurally the Investigative Division of the State Ethics

areaofpracticehasincludedCivilCommercialLitigationSchoolPersonnelLawandLaborEmploymentLawdEllisonisanequitypartnerinRhoadsSinon5THAwasformedbytheCityofHarrisburginMay1957pursuanttotheMunicipalityAuthoritiesActof19456ArticlesofIncorporationforTHAhavebeenamendedbyHarrisburgCityCouncilbywayofordinanceperiodicallyfrom1957throughthepresentaWhenfirstestablishedin1957THAwasknownastheHarrisburgSewerageAuthoritybOnJuly171978thetermsofTHAsexistencewereextendedthroughMay312028cOnDecember11987theHarrisburgSewerageAuthoritybecameknownastheHarrisburgWaterandSewerAuthoritydOnJanuary231990theHarrisburgWaterandSewerAuthoritychangedtoitscurrentnameTheHarrisburgAuthority7ArticlesofIncorporationforTHAprovideasfollowsToengageinacquiringholdingconstructingfinancingimprovingmaintainingandoperatingowningandleasingprojectsofthekindandcharactercontemplatedbylawforageneralpurposeauthorityasauthorizedandpermittedbyandalsoaslimitedbyprovisionsoftheMunicipalityAuthoritiesActtheActofMay21945PL382asamendedorsupplementedandbyanyotherapplicablestatuteorlaw8TheTHABoardconsistsoffiveMembersservingstaggeredtermsaAppointmentsarecurrentlymadebytheMayorsubjecttotheapprovalofHarrisburgCityCouncilbPriorto2007theHarrisburgMayormadeappointmentswithoutCityCouncilapproval9THAbylawscreatedtheofficerpositionsofChairmanViceChairmanSecretaryTreasurerandoneormoreAssistantSecretaryTreasurers10ThebylawsofTHAeffectiveOctober42007pursuanttoTHAResolutionNo2007022underArticleIIISection2identifiedthefunctionsofChairmanasfollowsChairmanaTheChairmanshallfunctionastheChiefExecutiveOfficeroftheAuthorityexercisingtheexecutiveandadministrativepowersofthe

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046 Page 2 4 Ellison has been employed as an attorney with the law firm of Rhoads Sinon LLP since August 25 1997 a Ellison served as an as ociate attorney from 1997 until January 2005 b Ellison became a partner at Rhoads Sinon on or about January 1 2005 c As an attorney with Rhoads Ellison Sinon s

TheChairmanshallappointallmembersofcommitteesestablishedbyresolutionoftheAuthorityTheChairmanshallnotifyHarrisburgCityCouncilatleastonemonthinadvanceoftheexpirationofthetermofofficeofanymemberoftheAuthorityInadditiontheChairmanshallnotifyHarrisburgCityCouncilofanyresignationofamemberoftheAuthoritystatingtheunexpiredtermthereofHeshallintheintervalsbetweenmeetingsconsultwiththevariousofficersandemployeesoftheAuthorityregardingthebusinessoftheAuthorityandperformsuchotherdutiesasdirectedbytheAuthority1OnOctober242007thebylawsofTHAwereamendedbytheTHABoardunderResolutionNo2007024inthatalllanguageinthecurrentamendedandrestatedbylawsofTHAbecamegenderneutralaaAsaresulttheChairmanbecameknownasChairperson2OnDecember222008theTHABoardbymotionauthorizedtheExecutiveDirectortonotifyHarrisburgCityCounciloftheexpirationofthetermofanyofficeofanyMemberoftheAuthorityatleastonemonthinadvance11AsaBoardMemberEllisonparticipatedinapprovingTHAResolutionsonOctober4and242007amendingthebylawsbychangingthefunctionsofChairmanandmakingtermsgenderneutral12ThroughoutitsexistenceTHAhasutilizedtheservicesofvariouslawfirmstoprovidelegalservicesaTHAhasappointedaGeneralCounselSolicitorformostlegalservicesbTHAhasretainedoutsidefirmsforspecializedlegalservices13ThelawfirmofRhoadsSinonhasbeenprovidinglegalservicestoTHAsinceapproximately1997aThefirmservedasGeneralCounselforTHAfrominoraround1997through20041EllisonasaRhoadsSinonassociatewasTHAsAssistantGeneralCounselfrom1997untilabout200014Fromabout1997throughJanuary2008RhoadsSinonprovidedlegalservicestoTHAinvolvingamongstothersanissuewithaConrailrailroadtracklineandaTHAwaterline15In1994ConrailreceivedapprovalfromthePublicUtilityCommissionPUCtorecovercostsfromtheCityofHarrisburgandTHAforrelocatingatracklineundertheMaclayStreetBridgeduetothetrackimpactingawaterlineaRhoadsSinonwasretainedbyTHAtorepresentTHA

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shall submit to the Authority such recom endation and information as the Chairman may consider proper Except as otherwise authorized by resolution of the Authority the Chairman shall execute all contracts deeds bonds or other instruments made by the Authority in its name and 046 Page 3 Authority The Chairman shall preside at all meetings of the Authority

forthecostsofrelocatingatrackline16InJanuary2005thelawfirmofRhoadsSinonwasreplacedbyBruceForemanofForemanForemanasGeneralCounselofTHAaForemanservedasGeneralCounselofTHAthroughOctober201017AttorneyJBruceWalterofRhoadsSinoncontinuedtoprovidelegalguidancetoTHAontheConrailmatteraftertheappointmentofBruceForemanasTHAGeneralCounselSolicitor18OnAugust292007theTHABoardappointedRoyceMorrisofGoldbergKatzmanPCasSpecialCounseltoTHAThemotionapprovedbytheTHABoardappointingMorrisincludedthefollowingaInparttheservicesheprovidedincludedallareasandaspectsofallnegotiationsstudiesreportslegalandotheropinionscorrespondencediscussionsfromortoanypersonorpersonsincludingtheCityofHarrisburgrelatedinanymannertoagreementscontractsandamendmentstheretoincludinganydraftsenteredintobytheHarrisburgAuthorityandCovantaHarrisburgIncandrelatedentitiesaswellasallfinancialreportsandanalysisandproposedtransactionsrelatedtosuchagreementscontractsandamendments19RoyceMorriswaslaterappointedGeneralCounselofTHAbytheTHABoardinOctober201020Inorabout2007THAwasintheprocessofalandfillexpansionprojectatTHAsResourceRecoveryFacilityaApprovalwasrequiredfromthePennsylvaniaDepartmentofEnvironmentalProtectionDEP21MicheleTorreswasemployedbyTHAfromAugust292007untilMay32011aInoraboutAugust2007TorreswashiredasaSpecialAdministrativeAssistantbTorreswassubsequentlyappointedasActingExecutiveDirectoreffectiveSeptember142007andaspermanentExecutiveDirectoreffectiveJanuary12008bytheTHABoardcJamesEllisonwhileservingasSolicitorfortheHarrisburgSchoolDistrictHSDbecameacquaintedwithTorresandencouragedhertoapplyforapositionwithTHA1TorreswasemployedbyHSDfrom1995through200022OnDecember282007MicheleTorreswhileservingasActingExecutiveDirectorofTHAadvisedtheBoardthatameetinghadbeenscheduledwithDEPfor

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046 Page 4 b J Bruce Walter of Rhoads Sinon was involved in multiple proceedings on behalf of THA to contest this ruling beginning in or around 2000 and continuing through January 2008 1 The Com onwealth Court of Pen sylvania ruled on January 18 2008 that the City of Harrisburg and THA were required to compensate Conrail

aTorreshadweeklymeetingswiththeTHABoardChairmanduringtheearlypartofhertenureasExecutiveDirector24TorresalsocontactedTHASpecialCounselRoyceMorrisseekinginformationastolawfirmsattorneysskilledinhandlingenvironmentalmattersaMorriswasnotabletoprovideTorreswiththenamesofanyattorneyswhohandledenvironmentalmatters25SometimebetweenDecember282007andJanuary32008TorrescontactedattorneyPaulBruderofRhoadsSinontoassistherinpreparationforthemeetingwithDEPaTorreswasprovidedwithBrudersnamebyJamesEllisonbTorreswasmadeawareofBruderhandlingenvironmentalmattersbyEllisoncTorrescontactedBruderafterconsultingwithEllison26BruderhasbeenanattorneywithRhoadsSinonsince1998aBruderhasbeenapartnerwithRhoadsSinonsinceapproximately2004bBruderpreviouslywasemployedbyDEPfrom1995through199827BrudersbillingstoTHAreflectthathetelephonicallyspokewithTorresonJanuary32008aBruderalsolistedthathemetwithEllisonandresearchedChesapeakeBayissuesandcredittradingbBruderalsobilledTHAforadiscussionwithEllisononJanuary7200828OnFebruary142008RhoadsSinonsubmittedBrudersbillablehoursreferencedasGeneralEnvironmentalCounselingtoTHAaspartofInvoice26414229BrudersbillablehoursforJanuary2008regardingservicesrenderedtoTHAtotaled4367hoursaBrudersbillablehoursincludedmeetingsanddiscussionswithJamesEllisononJanuary32008andJanuary72008bBrudersbillablehourlyratewas27000perhourcThetotalofBrudersbillablehourswas1179590basedonthefollowing27000x4367500forcopierservice1179590

January 15 2008 regarding the landfill expansion project at the Resource Recovery Facility for THA a Torres wanted to have legal counsel present for the meeting 23 Torres consulted with James Ellison in his capacity as THA Board Chairman on or about December 28 2007 as to how to proceed with the DEP matter 5 046 Page

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thegeneralenvironmentalcounselingwasdepositedintothefirmsBusinessCheckingAccountonoraroundFebruary28200831In2008paymentsissuedfromTHAsSolidWasteRevenueFundrequiredtwosignaturesaTheChairmanandtheExecutiveDirectorAssistantSecretaryTreasurersicoftheAuthoritywerethesignatureauthorityontheaccount1EllisonservedasChairmanin2008bNostamporfacsimilesignatureswereused32FromthetimeBruderbeganaccruingbillablehoursonJanuary32008throughFebruary262008noBoardactionwastakenbyTHAtoauthorizeBruderandorRhoadsSinontoprovidelegalservicesaNocontractwassignedandnorateswereapprovedbytheTHABoard33ThepaymentissuedtoRhoadsSinonwasauthorizedasaresultofResolutionNo2007030approvedbytheTHABoardonDecember282007whichauthorizedthe2008ResourceRecoveryFacilityOperatingExpenseBudgetaTheSolidWasteRevenueFundwaspartoftheResourceRecoveryFacilityOperatingExpenseBudgetbEllisonvotedasaMemberoftheTHABoardtoapprovetheResourceRecoveryFacilityOperatingExpenseBudget34OnJune302008RhoadsSinoninvoicedTHAforbillablehoursofBruderforprofessionalservicesrenderedforthemonthsofFebruaryMarchandAprilof2008inregardtotheResourceRecoveryFacilityforatotalof993500aBrudershourlyratefortheabovelistedbillablehourswas25000perhourbIncludedinBrudersbillablehoursweretelephoneconversationswithJamesEllisononFebruary52008andcorrespondencewithEllisonandTorresonFebruary11200835PaymentwasissuedtoRhoadsSinononAugust122008byTHAintheamountof993500viaCheck1364fromtheSolidWasteRevenueFundforBrudersbillablehoursfromFebruarythroughApril2008aThecheckwassignedbyTHABoardChairmanJamesEllisonandExecutiveDirectorMicheleTorres36InMarch2008BruderRhoadsSinonwasselectedbyTHAtoprovideadditionallegalservicesincludingcounselonsewerrelatedmatters

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046 Page 6 30 Payment was issued to Rhoads Sinon on February 26 2008 by THA in the amount of 11 795 90 by Check 1258 from THA s Solid Waste Revenue Fund a The check was signed by Board THA Chairman James Ellison and Executive Director Michele b Torres The payment issued to Rhoads Sinon by THA for

HarrisburgAuthorityherebyappointsPaulBruderEsqasagentonbehalfoftheAuthoritytoemploythelawfirmofHallAssociatesasspecialcounseltotheHarrisburgAuthoritytoperformsuchlegalandrelatedservicesasmayberequestedordirectedfromtimetotimebytheChairmanorbyamajorityvoteofthemembersoftheHarrisburgAuthoritysuchservicestoincludebutnotbelimitedtoallareasandaspectsofallnegotiationsstudiesreportslegalandotheropinionscorrespondencediscussionsfromortoanypersonorpersonsincludingtheCityofHarrisburgrelatedtothematterofPaxtonCreekTMDLsSewerRelatedFinancialtermsandconditionsforsuchservicesshallbesubjecttomutualagreementofCounselandtheBoardThemotionwasapprovedwithEllisonabstainingfromthevoteaNoabstentionmemosettingforththereasonsforhisabstentionwassubmittedbyEllison1ItwascommonknowledgeamongBoardMembersofEllisonsassociationwithRhoadsSinonandhisintentiontoabstainfrommattersrelatedtothatfirm38NoTHArecordsexistwhichidentifythatanyotherlawfirmswereconsideredorthatthecontractwaspubliclyadvertised39OnApril172008PaulBrudersubmittedtoMicheleTorresanAgreementofRepresentationidentifyingthebasisfromwhichthefirmwouldprovidelegalservicesandbillforthoseservicesTheagreementprovidedinpartthefollowingaTherepresentationwouldconsistofadvisingandcounselingTHAonmatterspertainingtosewageandstormwatercollectionconveyanceandtreatmentwatertreatmentanddistributionwasteincinerationanddisposalcompliancewiththeChesapeakeBayTributaryStrategyandissuesrelatedtothesemattersbPaulBruderwouldbetheprimaryattorneyassignedtothematterandhishourlyratewouldbe25000OtherattorneysandparalegalswouldbebilledatstandardhourlyratesaswellThehourlyrateswouldprevailuntilDecember312008atwhichtimetheywouldbereviewedandadjustedcInadditiontothefeesstatementsforserviceswouldincludechargesforfilingfeesanddisbursementsincludingphotocopyingtraveltransportationlodgingandmealscomputerizedlegalresearchtranscriptspostagemessengerandcourierserviceslongdistancetelephonechargesetcdNoretainerwasrequiredorrequestedeStatementswouldbesubmittedonamonthlybasisidentifyingtheworkdoneandtimeexpendedfTHAhadtherighttoterminateservicesatanytimeSimilarlyifTHAdidnotcooperatewithreasonablerequestsordisagreedwiththecourseofaction

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7 a These services were separate from the services being provided by Bruder related to the Resource Recovery Facility 37 Minutes of THA s March 26 2008 meeting Board confirm the fol owing regarding the appointment of Bruder A motion was made by Mr House seconded by Ms Bryce that the Board of Directors of The 046 Page

CounselTHAapprovedamotionauthorizingTorresasExecutiveDirectortoissueaRequestforProposalRFPforSpecialEnvironmentalCounsel41MinutesoftheTHABoardmeetingofApril232008confirmthefollowingmotionwasapprovedbyunanimousvoteTheBoardofDirectorsofTheHarrisburgAuthorityauthorizingtheExecutiveDirectortoissueRFPsforSpecialEnvironmentalCounselSpecialEnvironmentalCounselwillperformsuchlegalandrelatedservicesasmayberequestedordirectedfromtimetotimebytheChairmanorbyamajorityvoteofthemembersofTHASuchservicestoincludebutnotlimitedtoallareasandaspectsofallnegotiationsstudiesreportslegalandotheropinionscorrespondencediscussionsfromortoanypersonorpersonsrelatedinanymannertoagreementscontractsandamendmentstheretoincludingalldraftsenteredintobyTHAtorepresentTHAsinterestswithrespecttoenvironmentalmattersrelatingtoAdvancedWastewaterTreatmentWaterandResourceRecoveryFacilitiesandanypermittingorenforcementissuesrelatingtosuchmattersaJamesEllisonwaspresentatthemeetingThevotetoapprovethemotionwasunanimouswithnoabstentionsnoted42TheRFPsissuedforSpecialEnvironmentalCounselbyTHAoccurredsixdaysafterBruderhadsubmittedanAgreementofRepresentationtoTHAtoserveasEnvironmentalCounsel43TheRFPsoccurredafterBruderhadbeensubmittingbillablehoursrelatedtoenvironmentalmatterstoTHAfromJanuary2008throughApril2008totaling217300044TorresforwardedRFPstonolessthanseven7lawyerslawfirmsinthegreaterHarrisburgareaseekingSpecialEnvironmentalCounselforTHA45OnJune242008PaulBruderofRhoadsSinonsubmittedaresponsetoTorresfortheRFPforSpecialEnvironmentalCounselthathighlightedthefollowingaStatementofQualificationsbCommitmenttoServetheCapitalRegioncAttorneysdesignatedtoserveTHAdFeesandcosts1Therateforallattorneyswouldbeafixedrateof24000perhourTheywouldmaximizetheuseofparalegalsat12000perhour

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or did not pay the statements in a timely manner Rhoads Sinon could terminate the relationship The termination would be in writing g The agreement was not formally approved by THA 40 On April 23 2008 six days after Bruder forwarded the Agre ment of Representaion to Torres for his service as Environmental 8 recommended 046 Page

ratecTheaveragehourlyrateofallrespondingpartiesnotincludingthediscountedratewas24500anhour47DuringtheTHABoardmeetingofOctober12008motionswerepresentedtotheBoardforapprovaltoauthorizeTorresasExecutiveDirectortoappointaSpecialEnvironmentalCounselfromthelistofattorneyssubmittingproposalsinresponsetotheApril232008RFPandamotiontoappointPaulBruderasSpecialEnvironmentalCounselaThemotionswerelistedunderNewBusinessaspartofagroupofmotionslabeledAthroughRbThemotiontoauthorizeTorrestoappointSpecialEnvironmentalCounselwasMotionDcThemotiontoappointBruderasSpecialEnvironmentalCounselwaslistedasMotionF48MinutesfortheOctober12008BoardmeetingreflecttheapprovalofmotionsasfollowsaMotionmadebyHousesecondedbyKurowskitoapproveItemsAthroughEGHJNthroughRwasunanimouslyapproved1MotionDTheBoardherebyauthorizestheExecutiveDirectortoappointSpecialEnvironmentalCounselformattersarisingintheSewerWaterorResourceRecoveryfacilitiesfromthelistofattorneysthatsubmittedproposalsinresponsetotheAuthoritysmotionforrequestforqualificationapprovedonApril232008SaidlistingofresponsivelegalcounselisattachedasExhibitAThemotionwasunanimouslyapprovedEllisonwaspresentandnotrecordedasabstainingbMotionbyBrycesecondedbyKurowskithatItemFbeapprovedasfollowsTheBoardratifiestheappointmentofPaulBruderEsquireofRhoadsSinonasSpecialEnvironmentalCounselonthematteroftheAuthoritysNPDESPermitandtheTMDLPaxtonCreekissueeffectiveJanuary22008Ellisonabstainedfromthevotetoapprovethemotion49ThemotionmakingBrudersappointmenteffectiveJanuary22008includedallaspectsofenvironmentalissuesaffectingTHAaPaulBruderRhoadsSinonhadbeensubmittingbillablehourstoTHAsinceJanuary32008forseveraldifferentenvironmentalissues

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046 Page 9 46 Torres received responses from no less than six 6 other lawyers law firms to whom RFPs were forwarded a Hourly rates ranged from 150 00 to 325 00 an hour for legal services b The rate of 150 00 per hour was noted as being discounted from the responding attorney s normal hourly

200812581179590Counseling081220081364993500NoneEnvironmentalCounseling09082008137537500Matter2aChecksissuedbyTHAweresignedbyEllisonbThedifferencebetweentheratebilledbyBruderandtheaverageofpartiesrespondingtotheRFPSeeFindingNo46was129795AverageRespondingBrudersSubmittedHoursPartyFeeofInvoice245004367hours@1179090106991527000hour3974hours@99350097363025000hour15hours@375003675025000hourTotal22100902080295Difference129795SeeFindingNo46c51SubsequenttoTHAsappointmentofPaulBrudertoserveasEnvironmentalCounselforTHAthefollowingprocedureswereusedbyTHAinapprovinginvoicesforRhoadsSinonPriorto309aOfficeManagerreceivedandreviewedinvoicesOfficeManagerwoulddeterminebasedupontheworkperformedwhichutilitywastobechargedWaterSewerRRForAdminbInvoiceswerethensenttoExecutiveDirectorandorConstructionorEngineeringDirectorforreviewandapprovalcWaterandAdminOfficeManagerwouldentertheinvoicesintoAPandpreparethechecksfromtherespectiveaccountsdSewerandRRFInvoicestobepaidfromthesefundsrequireboardapprovalofrequisitionsviathetrustIndenturesOfficeManagerwouldpreparetheproperrequisitionsandaddthemtothelistingforboard

046

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b Bruder billed no less than 84 91 hours for all legal services rendered to THA between February and 2008 July 2008 50 Payments issued to Rhoads Sinon as a result of Page 10

workthe

Bruder performed for THA prior to the on vote October 1 2008 were as follows Check Date Number Amount Memo Environmental 02 26

therequisitiontothevendorRhoadsSinonfThetrusteemadethepaymenttoRhoadsSinononceallrequiredsignaturesandBoardapprovalwereobtainedAfter309aInvoicescomeintotheAccountingDepartmentandaresenttotheFinanceDirectorforapprovalandcodingbInvoicesarecirculatedforapprovalandsignedoffbyvariousdepartmentsaccountingengineeringandExecutiveDirectorandorthefacilityDirectorbasedontheutilitybeingchargedcOnceallapprovalsarereceivedthefollowingoccursSewerAccountingAssistantpreparestherequisitionsandprovidesthemalongwithalistingofrequisitionstobevotedonbytheBoardatthenextmonthlymeetingtotheOfficeManagerRRFInvoicesareprocessedfromtheSolidWasteRevenueFundandpaidstthonthe1and15ofeachmonthWaterInvoicesareprocessedfromtheWaterRevenueFundandstthpaidonthe1and15ofeachmonthAdminInvoicesareprocessedfromthebusinesscheckingaccountandpaidstthonthe1and15ofeachmonth52AfterMarch2009TorresandTHAdepartmentheadshadmorecontrolandinvolvementinapprovingandreviewingtheinvoicesforRhoadsSinon53AspartofTHAsprocessofapprovingpaymentstoRhoadsSinonrequisitionsweretobeapprovedbytheTHABoard54FollowingTHABoardapprovalrequisitionswerethensignedbytheChairmanTreasurerorAssistantTreasurerandConsultingEngineerofTHAtoauthorizepaymenttoRhoadsSinon55AfterEllisonresignedfromtheTHABoardonMarch122010THAdiscontinuedutilizingPaulBruderasEnvironmentalCounsel56OnSeptember222010theTHABoardappointedStevenHannofHamburgRubinMullinMaxwellLupinasSpecialEnvironmentalCounselforenvironmentalissuesrelatingtowastewaterissuesonlyaTheappointmentofHannwasmadefromthelistofapprovedlawfirmsauthorizedbytheTHABoardattheTHAmeetingonApril232008

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signatures from the Chairman Secretary Treasurer Legal Counsel and or Consulting Engine r dependent upon the name of the account being drawn upon and prepare a transmit al letter to the appropriate trustee for proces ing the payment of all 046 Page 11 approval at the next regular monthly meeting e After Boar the d Members approved the requistions the Office Manager would obtain

BruderEsquirewhowasatthetimeemployedbyRhoadsSinonLLPtoserveasEnvironmentalCounselforTHAaBetweenDecember282007andJanuary32008ExecutiveDirectorTorresdiscussedwithEllisonandotherstheselectionofcounselregardinganissuewithDEPbEllisonidentifiedthenameofPaulBrudertoTorres1TorresthenselectedPaulBruderofRhoadsSinoncEllisonvotedonApril232008asaMemberoftheTHABoardtoauthorizeTorrestoissueRFPsforSpecialEnvironmentalCounsel1ThevoteoccurredoneweekafterTorresreceivedanAcceptanceofAgreementfromBrudertoprovideSpecialEnvironmentalCounselservicesdOnOctober12008EllisonparticipatedinthediscussionandvoteoftheTHABoardauthorizingTorrestoappointSpecialEnvironmentalCounsel59EllisonasaMemberandChairmanoftheTHABoardsignedchecksissuedtoRhoadsSinonaEllisonsignedTHAchecksissuedtoRhoadsSinonLLPonFebruary262008priortoanyactionbytheBoardauthorizingBrudersservicesbEllisonsignedTHAchecksissuedtoRhoadsSinononAugust122008forservicesprovidedbyBruderfromFebruarythroughApril2008cEllisonsigned29of35requisitionsasChairmanforpaymentstobemadetoRhoadsSinon60EllisonmaintainsthatatthetimehespokewithTorresregardingthehiringofSpecialEnvironmentalCounselhewasunawarethathisactionsmayviolatetheEthicsAct65PaCS1101etseqandfurtherassertsthathewasunawarethatthesigningofchecksinhisroleasaTHABoardMemberaftertheTHABoardvotedtoapprovepaymentwouldviolatetheEthicsAct65PaCS1101etseqIIIDISCUSSIONAsaMemberoftheBoardofDirectorsBoardofTheHarrisburgAuthorityTHAfromAugust2007untilMarch122010RespondentJamesEllisonhereinafteralsoreferredtoasRespondentRespondentEllisonandEllisonwasapublicofficialsubjecttotheprovisionsofthePublicOfficialandEmployeeEthicsActEthicsAct65PaCS1101etseqTheallegationsarethatEllisonviolatedSections1103aand1103foftheEthicsAct1whenheparticipatedindiscussionsandactionsoftheAuthorityresultingincontractsbeingenteredintowithabusinesswithwhichheisassociatedtheRhoadsandSinonlawfirm2whenthecontractswereenteredintowithoutanopenandpublic

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046 Page 12 57 As an equity partner in Rhoads Sinon James Ellison would have shared in income and or profits of Rhoads Sinon which would have included any payments Rhoads Sinon received from THA from 2008 through 2010 58 Ellison as Chairman of THA the Board participated in discussions which resulted in the hiring of Paul

Section1103fallegationthatisnolongerbeforeusPursuanttoSection1103aoftheEthicsActapublicofficialpublicemployeeisprohibitedfromengaginginconductthatconstitutesaconflictofinterest1103RestrictedactivitiesaConflictofinterestNopublicofficialorpublicemployeeshallengageinconductthatconstitutesaconflictofinterest65PaCS1103aThetermconflictofinterestisdefinedintheEthicsActasfollows1102DefinitionsConflictorconflictofinterestUsebyapublicofficialorpublicemployeeoftheauthorityofhisofficeoremploymentoranyconfidentialinformationreceivedthroughhisholdingpublicofficeoremploymentfortheprivatepecuniarybenefitofhimselfamemberofhisimmediatefamilyorabusinesswithwhichheoramemberofhisimmediatefamilyisassociatedThetermdoesnotincludeanactionhavingademinimiseconomicimpactorwhichaffectstothesamedegreeaclassconsistingofthegeneralpublicorasubclassconsistingofanindustryoccupationorothergroupwhichincludesthepublicofficialorpublicemployeeamemberofhisimmediatefamilyorabusinesswithwhichheoramemberofhisimmediatefamilyisassociated65PaCS1102Section1103aoftheEthicsActprohibitsapublicofficialpublicemployeefromusingtheauthorityofpublicofficeemploymentorconfidentialinformationreceivedbyholdingsuchapublicpositionfortheprivatepecuniarybenefitofthepublicofficialpublicemployeehimselfanymemberofhisimmediatefamilyorabusinesswithwhichheoramemberofhisimmediatefamilyisassociatedAsnotedabovethepartieshavesubmittedaConsentAgreementandStipulationofFindingsThepartiesStipulatedFindingsaresetforthaboveastheFindingsofthisCommissionWeshallnowsummarizetherelevantfactsascontainedthereinEllisonservedasaMemberoftheTHABoardfromAugust2007untilMarch122010whenheresignedfromhispositionontheBoardEllisonwasappointedtotheTHABoardbyHarrisburgCityCouncilinJanuary2007buthewasnotseatedasaTHABoardMemberuntilAugust2007duetocourtchallengestotheappointmentbyHarrisburgMayorStephenReedEllisonservedasChairmanChairpersonoftheTHABoardfromAugust2007untilMarch122010

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046 Page 13 process and 3 when he subsequently participated in THA Board resulting actions in payments being issued to Rhoads and Sinon Per Consent the Agreement the Investigative Division has exercised its prosecutorial discretion to nol pros the allegation under Section 1103 f of the Ethics Act Based upon the nol pros we need not address the

servicesTHAhasappointedaGeneralCounselSolicitorformostlegalservicesandhasretainedoutsidefirmsforspecializedlegalservicesRhoadsSinonhasbeenprovidinglegalservicestoTHAsinceapproximately1997Frominoraround1997through2004RhoadsSinonservedasGeneralCounselforTHAInJanuary2005RhoadsSinonwasreplacedasGeneralCounselforTHAbyBruceForemanForemanofForemanForemanAfterForemanwasappointedasTHAGeneralCounselJBruceWalteranattorneywithRhoadsSinoncontinuedtoprovidelegalguidancetoTHAonamatterinvolvingaConrailrailroadtracklineandaTHAwaterlineEffectiveSeptember142007theTHABoardappointedMicheleTorresTorresasActingExecutiveDirectorofTHATheTHABoardappointedTorresaspermanentExecutiveDirectoreffectiveJanuary12008OnDecember282007TorresasActingExecutiveDirectoradvisedtheTHABoardthatameetinghadbeenscheduledwiththePennsylvaniaDepartmentofEnvironmentalProtectionDEPforJanuary152008regardingalandfillexpansionprojectatTHAsResourceRecoveryFacilityTorreswantedtohavelegalcounselpresentforthemeetingBetweenDecember282007andJanuary32008TorresdiscussedwithEllisoninhiscapacityasChairmanoftheTHABoardandotherstheselectionofcounselregardingtheDEPmatterEllisonprovidedTorreswiththenameofPaulBruderBruderanattorneywithRhoadsSinonandmadeTorresawarethatBruderhandledenvironmentalmattersTorresalsocontactedTHASpecialCounselRoyceMorrisofGoldbergKatzmanPCseekinginformationastolawfirmsattorneysskilledinhandlingenvironmentalmattersbuthewasnotabletoprovideherwiththenamesofanyattorneyswhohandledenvironmentalmattersSometimebetweenDecember282007andJanuary32008afterconsultingwithEllisonTorrescontactedBrudertoassistherinpreparationforthemeetingwithDEPOnFebruary142008RhoadsSinonsubmittedaninvoicetoTHAthatincludedBrudersbillablehoursreferencedasGeneralEnvironmentalCounselingforservicesrenderedtoTHAinJanuary2008Brudersbillablehourstotaled4367hoursandincludedatelephoneconversationwithTorresonJanuary32008researchandmeetingsanddiscussionswithEllisononJanuary32008andJanuary72008TheamountbilledtoTHAtotaled1179590baseduponBrudersbillablehourlyrateof27000perhourfor4367hours27000x43671179090plus500forcopierserviceTHAissuedacheckintheamountof1179590toRhoadsSinononFebruary262008ThecheckwasfromTHAsSolidWasteRevenueFundandwassignedbyEllisonastheTHABoardChairmanandTorresOnJune302008RhoadsSinoninvoicedTHAatotalof993500forBrudersbillablehoursforprofessionalservicesrenderedfromFebruary2008throughApril2008withregardtotheResourceRecoveryFacilityBrudershourlyrateforthebillablehourswas25000perhourTelephoneconversationswithEllisononFebruary52008andcorrespondencewithEllisonandTorresonFebruary112008wereincludedinthehoursbilled

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046 Page 14 Ellison has been employed as an attorney with the law firm of Rhoads Sinon LLP Rhoads Sinon since August 25 1997 On or about January 1 2005 Ellison became a partner at Rhoads Sinon Ellison is an equity partner in Rhoads Sinon Throughout its existence THA has utilized various law firms provideto legal

counselonsewerrelatedmattersTheseserviceswereseparatefromtheservicesbeingprovidedbyBruderrelatedtotheResourceRecoveryFacilityMinutesoftheTHABoardmeetingonMarch262008confirmthatEllisonabstainedfromaBoardvotetoappointBrudertoperformlegalservicesrelatedtothematterofPaxtonCreekTMDLsSewerRelatedOnApril172008BrudersubmittedtoTorresanAgreementofRepresentationAgreementtoserveasEnvironmentalCounselforcertainmattersTheAgreementprovidedinpartthatBruderwouldbetheprimaryattorneyassignedtothemattersandthathishourlyratewouldbe25000TheAgreementwasnotformallyapprovedbyTHAAtameetingonApril232008theTHABoardapprovedamotionauthorizingTorrestoissueaRequestforProposalRFPforSpecialEnvironmentalCounselEllisonwaspresentatthemeetingandvotedtoapprovethemotionSixdaysafterBruderhadsubmittedanAgreementofRepresentationtoTHAtoserveasEnvironmentalCounselTHAissuedRFPsforSpecialEnvironmentalCounselTheRFPswereissuedafterBruderhadbeensubmittingbillablehoursrelatedtoenvironmentalmatterstoTHAfortheperiodfromJanuary2008throughApril2008TorresforwardedRFPstonolessthansevenlawyerslawfirmsinthegreaterHarrisburgareaseekingSpecialEnvironmentalCounselforTHAOnJune242008BrudersubmittedaresponsetoTorresfortheRFPforSpecialEnvironmentalCounselindicatingthattherateforallattorneyswouldbeafixedrateof24000perhourTorresreceivedresponsesfromnolessthansixotherlawyerslawfirmstowhomRFPswereforwardedTherespondinglawyerslawfirmshourlyratesforlegalservicesrangedfrom15000whichwasnotedasbeingdiscountedfromtherespondingattorneysnormalhourlyrateto32500Withoutincludingthediscountedratetheaveragehourlyrateofthoserespondingwas24500perhourAttheTHABoardmeetingonOctober12008EllisonparticipatedinthediscussionandvoteoftheTHABoardtoauthorizeTorrestoappointaSpecialEnvironmentalCounselformattersarisingintheSewerWaterorResourceRecoveryfacilitiesfromthelistofattorneyswhosubmittedproposalstotheApril232008RFPTheBoardfurthervotedtoratifytheappointmentofBruderasSpecialEnvironmentalCounselonthematteroftheAuthoritysNPDESPermitandtheTMDLPaxtonCreekissueeffectiveJanuary22008EllisonabstainedfromtheBoardsvoteregardingBrudersappointmentSinceJanuary32008BruderRhoadsSinonhadsubmittedbillablehourstoTHAforseveraldifferentenvironmentalissuesBruderbillednolessthan8491hoursforalllegalservicesrenderedtoTHAbetweenFebruary2008andJuly2008THAissuedthreecheckstoRhoadsSinonasaresultoftheworkthatBruderperformedforTHApriortotheTHABoardvoteonOctober12008EllisonasChairmanoftheBoardsignedthecheckswhichwereintheamountsof1179590993500and37500EllisonasChairmanoftheBoardalsosigned29of35requisitionsforpaymentstobemadetoRhoadsSinonInvoicessubmittedtoTHAfor8491hoursbilledbyBruderathisrespectivehourlyrate27000perhouror25000perhourtotaled2210090SeeFactFinding50bThe8491hoursbilledbyBruderwouldhavecost129795lessiftheyhadbeenbilledat

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046 Page 15 THA issued a check in the amount of 935 9 00 to Rhoads Sinon on August 12 2008 The check was from THA s Solid Waste Revenue Fund and was signed by Ellison as the THA Board Chairman and Torres In March 2008 THA selected Bruder Rhoads Sinon to provide ad it onal legal services including

thatasanequitypartnerinRhoadsSinonEllisonwouldhavesharedinincomeandorprofitsofRhoadsSinonwhichwouldhaveincludedanypaymentsRhoadsSinonreceivedfromTHAfrom2008through2010HavinghighlightedtheStipulatedFindingsandissuesbeforeusweshallnowapplytheEthicsActtodeterminetheproperdispositionofthiscaseThepartiesConsentAgreementsetsforthaproposedresolutionoftheallegationsasfollows3TheInvestigativeDivisionwillrecommendthefollowinginrelationtotheaboveallegationsaThataviolationofSection1103aofthePublicOfficialandEmployeeEthicsAct65PaCS1103aoccurredwhenEllisonasChairmanofTheHarrisburgAuthorityparticipatedindiscussionswhichresultedinthehiringofalawyeremployedbyRhoadsandSinonLLPtoserveascounselforTheHarrisburgAuthorityatatimewhenEllisonwasbothaMemberofTheHarrisburgAuthorityandanequitypartnerofRhoadsandSinonLLPAviolationof1103aalsooccurredwhenEllisonsignedchecksresultinginpaymentsbeingissuedtoRhoadsandSinonLLPbAspartofanegotiatedsettlementagreementtheallegationsarisingunder1103fofthePublicOfficialandEmployeeEthicsAct65PaCS1103fnamelythataviolationoccurredwhenEllisonasaMemberofTheHarrisburgAuthorityenteredintocontractswithabusinesswithwhichheisassociatedwithoutanopenandpublicprocessareherebynolprossed4Ellisonagreestomakepaymentintheamountof229795insettlementofthismatterasfollowsa129795payabletotheCommonwealthofPennsylvaniaandforwardedtothePennsylvaniaStateEthicsCommissionwithinthirty30daysoftheissuanceofthefinaladjudicationinthismatterb100000inreimbursementrepresentingaportionoftheexpensesandcostsincurredbytheStateEthicsCommissionintheinvestigationandadministrativeprosecutionoftheinstant

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046 Page 16 the average hourly rate of the lawyers law firms that responded to THA s aforesaid RFP for Special Environmental Counsel 245 00 per hour See Fact Findings 46 c 50 b After Ellison resigned from the THA Board on March 12 2010 THA discontinued utilizing Bruder as Environmental Counsel The parties have stipulated

theStateEthicsCommissiontakenofurtheractioninthismatterandmakenospecificrecommendationstoanylawenforcementorotherauthoritytotakeactioninthismatterSuchhoweverdoesnotprohibittheCommissionfrominitiatingappropriateenforcementactionsintheeventofRespondentsfailuretocomplywiththisagreementortheCommissionsorderorcooperatingwithanyotherauthoritywhomaysochoosetoreviewthismatterfurtherConsentAgreementat12InconsideringtheConsentAgreementofthepartiesweaccepttherecommendationofthepartiesforfindingsthataviolationofSection1103aoftheEthicsActoccurredwhenEllisonasChairmanofTHAparticipatedindiscussionswhichresultedinthehiringofalawyeremployedbyRhoadsSinontoserveascounselforTHAatatimewhenEllisonwasbothaMemberofTHAandanequitypartnerofRhoadsSinonandthataviolationofSection1103aalsooccurredwhenEllisonsignedchecksresultinginpaymentsbeingissuedtoRhoadsSinonRhoadsSinonisabusinesswithwhichEllisonisassociatedThepartieshavestipulatedthatEllisonisanequitypartnerinRhoadsSinonandthatEllisonbecameapartnerofRhoadsSinononoraboutJanuary12005BetweenDecember282007andJanuary32008EllisoninhiscapacityasChairmanoftheTHABoarddiscussedwithTorrestheActingExecutiveDirectorExecutiveDirectorofTHAtheselectionofcounseltoattendameetingscheduledwithDEPforJanuary152008regardingalandfillexpansionprojectEllisonprovidedTorreswiththenameofBruderanattorneywithRhoadsSinonandmadeTorresawarethatBruderhandledenvironmentalmattersAfterconsultingwithEllisonTorrescontactedBrudertoassistherinpreparationforthemeetingwithDEPOnFebruary142008RhoadsSinonsubmittedaninvoicetoTHAthatincludedBrudersbillablehoursforservicesrenderedtoTHAinJanuary2008TheamountbilledtoTHAtotaled1179590OnJune302008RhoadsSinoninvoicedTHAatotalof993500forBrudersbillablehoursforprofessionalservicesrenderedfromFebruary2008throughApril2008EllisonusedtheauthorityofhisofficewhenhesignedasanauthorizedsignatoryforTHAthreeTHAchecksintheamountsof1179590993500and37500whichTHAissuedtoRhoadsSinonasaresultofworkthatBruderperformedforTHApriortoOctober12008ThehoursbilledbyBruderwouldhavecost129795lessiftheyhadbeenbilledattheaveragehourlyrateofotherlawyerslawfirmsthatrespondedtoTHAsaforesaidRFPforSpecialEnvironmentalCounselBasedupontheStipulatedFindingsandConsentAgreementweholdthataviolationofSection1103aoftheEthicsAct65PaCS1103aoccurredwhenEllison

matter 046 Page 17

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or money order made payable to the Pennsylvania State Ethics Com is ion 5 Ellison agrees to not accept any reimbursement compensation or other payment from the Harrisburg Authority representing a full or partial reimbursement of the amount paid in settlement of this matter 6 The Investigative Division will recommend that payable by certified check

signedchecksresultinginpaymentsbeingissuedtoRhoadsSinonAspartoftheConsentAgreementEllisonhasagreedtomakepaymentintheamountof229795insettlementofthismatterpayableasfollowsa129795payabletotheCommonwealthofPennsylvaniaandforwardedtothisCommissionwithinthirty30daysoftheissuanceofthefinaladjudicationinthismatterandb100000inreimbursementrepresentingaportionoftheexpensesandcostsincurredbythisCommissionintheinvestigationandadministrativeprosecutionoftheinstantmatterpayablebycertifiedcheckormoneyordermadepayabletothePennsylvaniaStateEthicsCommissionEllisonhasalsoagreedtonotacceptanyreimbursementcompensationorotherpaymentfromTHArepresentingafullorpartialreimbursementoftheamountpaidinsettlementofthismatterWedeterminethattheConsentAgreementsubmittedbythepartiessetsforthaproperdispositionforthiscasebaseduponourreviewasreflectedintheaboveanalysisandthetotalityofthefactsandcircumstancesAccordinglypertheConsentAgreementofthepartiesEllisonisdirectedtomakepaymentintheamountof229795asfollowsa129795payabletotheCommonwealthofPennsylvaniaandforwardedtothisCommissionbynolaterthantheththirtieth30dayafterthemailingdateofthisadjudicationandOrderandb100000inreimbursementrepresentingaportionoftheexpensesandcostsincurredbythisCommissionintheinvestigationandadministrativeprosecutionoftheinstantmatterpayablebycertifiedcheckormoneyordermadepayabletothePennsylvaniaStateEthicsCommissionPertheConsentAgreementofthepartiesEllisonisfurtherdirectedtonotacceptanyreimbursementcompensationorotherpaymentfromTHArepresentingafullorpartialreimbursementoftheamountpaidinsettlementofthismatterCompliancewiththeforegoingwillresultintheclosingofthiscasewithnofurtheractionbythisCommissionNoncompliancewillresultintheinstitutionofanorderenforcementactionIVCONCLUSIONSOFLAW1AsaMemberoftheBoardofDirectorsofTheHarrisburgAuthorityfromAugust2007untilMarch122010RespondentJamesEllisonEllisonwasapublicofficialsubjecttotheprovisionsofthePublicOfficialandEmployeeEthicsActEthicsAct65PaCS1101etseq2AviolationofSection1103aoftheEthicsAct65PaCS1103aoccurredwhenEllisonasChairmanofTheHarrisburgAuthorityparticipatedindiscussionswhichresultedinthehiringofalawyeremployedbyRhoadsSinonLLPtoserveascounselforTheHarrisburgAuthorityatatimewhenEllisonwasbothaMemberofTheHarrisburgAuthorityandanequitypartnerofRhoadsSinonLLPandaviolationofSection1103aalsooccurredwhenEllisonsignedchecksresultinginpaymentsbeingissuedtoRhoadsSinonLLP

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046 Page 18 as Chairman of THA participated in discussions which resulted in the hiring of a lawyer employed by Rhoads Sinon to serve as counsel for THA at a time when Ellison was both a Member of THA and an partner equity of Rhoads Sinon and that a violation of 1103 a also occurred when Elison

EllisonEllisonasChairmanofTheHarrisburgAuthorityparticipatedindiscussionswhichresultedinthehiringofalawyeremployedbyRhoadsSinonLLPtoserveascounselforTheHarrisburgAuthorityatatimewhenEllisonwasbothaMemberofTheHarrisburgAuthorityandanequitypartnerofRhoadsSinonLLPandaviolationofSection1103aoftheEthicsActalsooccurredwhenEllisonsignedchecksresultinginpaymentsbeingissuedtoRhoadsSinonLLP2PertheConsentAgreementofthepartiesEllisonisdirectedtomakepaymentintheamountof229795asfollowsa129795payabletotheCommonwealthofPennsylvaniaandforwardedtothePennsylvaniaStateEthicsCommissionbynothlaterthanthethirtieth30dayafterthemailingdateofthisOrderandb100000inreimbursementrepresentingaportionoftheexpensesandcostsincurredbythisCommissionintheinvestigationandadministrativeprosecutionoftheinstantmatterpayablebycertifiedcheckormoneyordermadepayabletothePennsylvaniaStateEthicsCommission3PertheConsentAgreementofthepartiesEllisonisfurtherdirectedtonotacceptanyreimbursementcompensationorotherpaymentfromTheHarrisburgAuthorityrepresentingafullorpartialreimbursementoftheamountpaidinsettlementofthismatter4CompliancewithParagraphs2and3ofthisOrderwillresultintheclosingofthiscasewithnofurtheractionbythisCommissionaNoncompliancewillresultintheinstitutionofanorderenforcementactionBYTHECOMMISSIONLouisWFrymanChair

In Re James Ellison File Docket 10

Date Decided 4 12 12 Date Mailed 4 27 12 ORDER NO 1600 1 A violation of Section 1103 a of the Public Official and Employe Ethics Act Ethics Act 65 Pa C S 1103 a occurred when James

046eR spondent