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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
thegeneralenvironmentalcounselingwasdepositedintothefirmsBusinessCheckingAccountonoraroundFebruary28200831In2008paymentsissuedfromTHAsSolidWasteRevenueFundrequiredtwosignaturesaTheChairmanandtheExecutiveDirectorAssistantSecretaryTreasurersicoftheAuthoritywerethesignatureauthorityontheaccount1EllisonservedasChairmanin2008bNostamporfacsimilesignatureswereused32FromthetimeBruderbeganaccruingbillablehoursonJanuary32008throughFebruary262008noBoardactionwastakenbyTHAtoauthorizeBruderandorRhoadsSinontoprovidelegalservicesaNocontractwassignedandnorateswereapprovedbytheTHABoard33ThepaymentissuedtoRhoadsSinonwasauthorizedasaresultofResolutionNo2007030approvedbytheTHABoardonDecember282007whichauthorizedthe2008ResourceRecoveryFacilityOperatingExpenseBudgetaTheSolidWasteRevenueFundwaspartoftheResourceRecoveryFacilityOperatingExpenseBudgetbEllisonvotedasaMemberoftheTHABoardtoapprovetheResourceRecoveryFacilityOperatingExpenseBudget34OnJune302008RhoadsSinoninvoicedTHAforbillablehoursofBruderforprofessionalservicesrenderedforthemonthsofFebruaryMarchandAprilof2008inregardtotheResourceRecoveryFacilityforatotalof993500aBrudershourlyratefortheabovelistedbillablehourswas25000perhourbIncludedinBrudersbillablehoursweretelephoneconversationswithJamesEllisononFebruary52008andcorrespondencewithEllisonandTorresonFebruary11200835PaymentwasissuedtoRhoadsSinononAugust122008byTHAintheamountof993500viaCheck1364fromtheSolidWasteRevenueFundforBrudersbillablehoursfromFebruarythroughApril2008aThecheckwassignedbyTHABoardChairmanJamesEllisonandExecutiveDirectorMicheleTorres36InMarch2008BruderRhoadsSinonwasselectedbyTHAtoprovideadditionallegalservicesincludingcounselonsewerrelatedmatters
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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
Ellison 10
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