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Todd Burkhart Ethics Commission Ruling 7.1.20
Todd Burkhart Ethics Commission Ruling 7.1.20
Todd Burkhart Ethics Commission Ruling 7.1.20
TOLL FREE: 1- 800- 932- 0936 FINANCE BUILDING WEBSITE: www. ethics. pa. gov
613 NORTH STREET, ROOM 309
HARRISBURG, IAA 17120- 0400
ALLEGATIONS:
1. Todd Burkhart (" Burkhart") has served as a Member of New Holland Borough
Council (" Borough Council"), Lancaster County, since approximately January
2006.
b. Burkhart has held no other New Holland Borough (" Borough") office.
3. Burkhart is the owner of Franklin Street Garage Auto Repair, LLC (" Franklin
Street Garage"), located at 129 West Franklin Street, New Holland,
Pennsylvania 17557.
a. Burkhart has been the owner of Franklin Street Garage for approximately
23 years.
b. Burkhart was an employee of the business for approximately ten years
prior to assuming ownership of the business.
C. Franklin Street Garage offers general automotive repair and
maintenance services in New Holland, Pennsylvania.
5. The Borough owns and operates various vehicles and power equipment for the
general care and maintenance of the Borough' s infrastructure and police
operations.
2. The Borough did not seek any bids, quotes, or proposals for any
vehicle repair/ services, including expenses expected to exceed
500. 00.
b. Tires were purchased from CJ Tires and Hurst Tires through the
Commonwealth of Pennsylvania' s COSTARS program.
COSTARS is the Commonwealth of Pennsylvania' s cooperative
purchasing program which allows state -affiliated entities
boroughs, townships, etc.) to make purchases from local public
procurement units ( vendors) which participate in Pennsylvania
Department of General Services contracts to provide
goods/ services to state -affiliated entities at a prenegotiated price.
C. Maintenance and re airs were primarily apportioned between Franklin
Street Garage and Npew Holland Auto Group.
7. Borough Manager Richard Fulcher (" Fulcher") viewed all vehicle/ equipment
repair work as being completed on an as -needed or emergency basis, and
therefore he did not believe that the Borough was required to seek or obtain
quotes or bids.
a. Fulcher was not required by Borough Council to seek any authorization
prior to initiating routine vehicle/equipment service and repairs.
b. The Borough continued to utilize Franklin Street Garage after Burkhart
was seated on Borough Council, since Franklin Street Garage had
serviced Borough vehicles prior to Burkhart's ownership of Franklin
Street Garage.
C. Franklin Street Garage has been providing vehicle repair/ service to the
Borough since at least 1985, prior to Burkhart holding office as a Borough
Council Member.
8. New Holland Borough Solicitor Brad Harris did not provide Burkhart or the
Borough with any legal advice regarding Franklin Street Garage continuing to
perform vehicle repair services for the Borough or Burkhart' s ability to participate
in the approval process for payment of bills/ invoices from Franklin Street
Garage.
b. Borough Council was also aware that Burkhart/ Franklin Street Garage
was submitting invoices to the Borough, seeking payment from Borough
fu nds.
9. The Borough maintains the following process for initiating repairs to Borough
equipment and vehicles.
12. The Borough apportioned repair and maintenance services among numerous
providers located in or near the Borough.
a. The primary factors in determining where Borough equipment and
vehicles were taken to be repaired/ serviced were the nature of the work
and the expected timeliness of the completion of the work.
14. Borough Council meeting minutes confirm that Burkhart routinely participated in
Borough Council actions to approve Monthly Financial Reports which contained,
amongst other Borough financial transactions, payments to his business,
Frankfin Street Garage.
15. From September 2, 2014, through December 3, 2019, the Borough approved
and issued 60 payments to Franklin Street Garage, totaling $ 70, 143. 53, for
service/ repair work completed on Borough vehicles.
Hospitality," and " Financial Interest in any Legal Entity in Business for
Profit" on his Statement of Financial Interests filed for the 2014 calendar
year.
a. Burkhart further stated that his action in approving payment of bills was
unintentional.
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
The term " conflict of interest" is defined in the Ethics Act as follows:
Burkhart, 19- 023
a
gem
1102. Definitions
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 official/ public 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 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 pu lic position.
Subject to certain statutory exceptions, Section 1105( b)( 6) of the Ethics Act
requires the filer to disclose on the SFI the name and address of the source and the
amount of any gift or gifts valued in the aggregate at $ 250 or more and the
circumstances of each gift.
Subject to certain statutory exceptions, Section 1105( b)( 7) of the Ethics Act
requires the filer to disclose on the SFI the name and address of the source and the
amount of any payment for or reimbursement of actual expenses for transportation and
lodging or hospitality received in connection with public office or employment where
such actual expenses exceed $ 650 in an aggregate amount per year.
Section 1105( b)( 9) of the Ethics Act requires the filer to disclose on the SFI any
financial interest in any legal entity engaged in business for profit.
Section 1105( b)( 10) of the Ethics Act requires the filer to disclose on the SFI
any financial interest in a business with which he is or has been associated in the
preceding calendar year which has been transferred to a member of his immediate
family.
The term " financial interest" is defined in the Ethics Act as "[ a] ny financial
interest in a legal entity engaged in business for profit which comprises more than 5%
of the equity of the business or more than 5% of the assets of the economic interest in
indebtedness." 65 Pa. C. S. § 1102.
Burkhart, 19- 023
Page 9
The Borough owns various vehicles and pieces of power equipment that are
used for police operations and the general care and maintenance of the Borough' s
infrastructure. The Borough utilizes various businesses located in or near the Borough
to repair and maintain Borough vehicles/ equipment. The Borough began utilizingg
Franklin Street Garage to repair and maintain Borough vehicles by no later than 1985.
The Borough continued to utilize Franklin Street Garage after Burkhart began serving
as a Member of Borough Council in January 2006. Burkhart did not direct any Borough
official or employee to utilize or patronize Franklin Street Garage to service or repair
Borough vehicles. It was common knowledge among Borough Council Members that
Burkhart was the owner of Franklin Street Garage and was providing repairs and
maintenance for Borough vehicles.
During the time frame relevant to this matter, the Borough did not solicit bids,
quotes, or proposals for repairs and maintenance of Borough - owned
vehicles/ equipment. Repairs and service for Borough police vehicles were initiated by
the Borough Police Chief, and repairs and service for Borough public works
vehicles/ equipment were initiated by the Borough Manager or the public works
department head. The Borough Police Chief, the Borough Manager, or the public
works department head decided which business would be utilized to perform the
necessary repairs/ maintenance work.
The Borough Police Chief and the Borough Manager reviewed invoices for
repairs/ maintenance work performed on Borough vehicles/ equipment to ensure that
the Borough was paying a fair rate for the work. The invoices were subsequently
placed on the Monthly Financial Report, which detailed Borough financial activi ies for
the prior month. Borough Council approved the Monthly Financial Report in its entirety
by a single vote that covered all transactions.
Between September 2, 2014, and December 3, 2019, Burkhart participated in
55 unanimous votes of Borough Council that approved Monthly Financial Reports
which included payments totaling approximately $ 65, 334. 53 to Franklin Street Garage
for servicing/ repairing Borough vehicles. On nine occasions during the aforesaid time
period, Burkkhart made or seconded the motion to approve a Monthly Financial Report
that included payment( s) to Franklin Street Garage. From September 2, 2014, through
December 3, 2019, the Borough paid Franklin Street Garage a total of $ 70, 143. 53 for
service/ repair work that was performed on Borough vehicles.
With regard to Burkhart' s SFIs, Burkhart:( I) failed to provide a response to
Gifts," "Transportation, Lodging, Hospitality" and " Financial Interest in any Legal Entity
in Business for Profit" on his SFI for calendar year 2014; ( 2) failed to provide a response
to " Address" on his SFI for calendar year 2015; and ( 3) failed to provide a response to
Business Interests Transferred to Immediate Family Member" on his SFIs for calendar
years 2016 and 2017.
Burkhart, 19- 023
Page 10
Having highlighted the Stipulated Findings and issues before us, we shall now
apply the Ethics Act to determine the proper disposition of this case.
Burkhart has further agreed to make payment to this Commission in the amount
of $ 100. 00,
representing a portion of the expenses and costs incurred by this
Commission in the investigation and administrative prosecution of the instant matter,
payable by certified check or money order made payable to the Pennsylvania State
Ethics Commission within thirty ( 30) days of the issuance of the final adjudication in
this matter.
Finally, Burkhart has agreed to file complete and accurate amended SFIs with
the Borough, through this Commission, for calendar years 2014, 2015, 2016, and 2017
within thirty ( 30) days of the issuance of the final adjudication in this matter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above
analysis and the totality of the facts and circumstances.
A violation of Section 1103( a) of the Ethics Act, 65 Pa. C. S. § 1103( a), occurred
when Burkhart, as a Member and Vice -President of Borough Council,
participated in decisions of Borough Council to approve the payment of invoices
for services rendered to the Borough by Franklin Street Garage Auto Repair,
LLC, a business with which Burkhart is associated.
3. A technical violation of Section( s) 1105( b)( 1), ( 6), ( 7), ( 9), ( 10) of the Ethics Act,
65 Pa. C. S. §§ 1' 105( b)( 1), ( 6), ( 7), ( 9), ( 11% occurred when Burkhart filed
deficient Statements of FFinancial Interests by failing to provide a response as to
disclosures regarding " Business Interests Transferred to Immediate Family
Member" for calendar years 2016 and 2017, failing to provide an address for
calendar year 2015, and failing to respond as to disclosures regarding gifts,
travel, hospitality, lodging, and financial interest in any legal entity in business
for profit on a Statement of Financial Interests filed for calendar year 2014.
a. For those deficiencies listed above, with the exception of failing to provide
an address, Burkhart had no disclosures to make.
In Re: Todd C. Burkhart, File Docket: 19- 023
Respondent Date Decided: 6/ 22/ 20
Date Mailed: 711120
Todd C. Burkhart (" Burkhart"). as a Member and Vice -President of Council for New
Holland Borough (" Borough'), Lancaster County, Pennsylvania, violated Section
11 03a of the Public Official and Employee Ethics Act Ethics
(" Act"), 65 Pa. C.S. 1103(
§
a),
when he participated in decisions of Borough Council to approve the payment
of invoices for services rendered to the Borough by Franklin Street Garage
Auto Repair, LLC, a busines with which Burkhart is as ociated. 2.
A technical violation of Section( s) 1105(( b)( 1), (6), ( 7), ( 9), J10 of the Ethics Act, 65
Pa. C. S. 1105( §§ 1), (6), ( 7), ( 9 , ( 10),
b)( occurred when Burkhart filed deficient Statements
of Financial Interests by failing to provide a response as to disclosures re
Interests Transferred to Immediate Family Member" for ca?
arding " Business
endar years 2016 and 2017, failing to provide an address for calendar year 2015,
and failing to respond as to disclosures re arding gifts, travel, hospitality, lodging,
and financial interest in any legal entity in busines for profit on a Staement
of Financial Interests filed for calendar year 2014. a.
For those deficiencies listed above, with the exception of failing to provide an
address, Burkhart had no disclosures to make. 3.
Per the Consent Agreement of the parties, Burkhart is directed to make payment in
the amount of 500.
$ 00 payable to the Commonwealth of Pen sylvania and forwarded
to the Pennsylvania State Ethics Commission by no later than the thirtieth (
Vh)day after the mailing date of this Order. Per
the Consent Agreement of the parties, Burkhart is further directed to make payment
00, representing
to the Pennsylvania State Ethics Commission in the amount of 100.$
a portion of the expenses and costs incurred by this Commission in the
investigation and administrative prosecution of the instant matter, payable by certified
check or money order made payable to the Pennsylvania State Ethics Commission
by no later than the thirtieth ( 30th) day after the mailing date of this Order.
Burkhart
7. Compliance with paragraphs 3, 4, 5, and 6 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,