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Tuesday, April 15, 2014

Dolan on Thin Ice With Ethics Act

In recent posts, I've told you about Bethlehem City Council member Karen Dolan. She has used the authority of her public office, as well as confidential information received through her holding public office, to benefit a nonprofit at which she's the paid Executive Director. That, according to the state Ethics Act, is a conflict of interest. But it's an admonition she has repeatedly ignored. According to informed sources, she did precisely what the law condemns this past weekend, in an email to the Mayor. She threatened to prevent Council from reviewing a proposed lease for the Illick's Mill. One that would actually require her to pay utilities and rent. Let me tell you the story.

Dolan, a City Council member since 2006, is the paid Executive Director of what is known as the Gertrude B. Fox Environmental Center. That's a nonprofit known to most of us as Illick's Mill. She failed to file nonprofit tax returns (990s) for three years in a row, which ultimately resulted in the revocation of her nonprofit status with the IRS. While working to get it back, she continued accepting grants and public assistance. While her status was revoked, she gave a misleading interview to The Express Times. She touted a $170,000 budget and announced wedding receptions at the site.

Most of her old board members abandoned ship. The ones she has now were not around when the 501c3 status was pulled.

At a recent Parks Committee meeting, where she conveniently happens to be the Chair, she advocated easing up on booze restrictions in City parks, where Illick's Mill hosts wedding receptions. That's an ethical conflict, though she countered that all nonprofits in City parks would benefit.

In the meantime, questions have begun to arise. Why is there no recent record of Illick's Mill paying any utilities? Why did the City suddenly start providing her with free heating oil? Why does she pay no rent? Why was the $127,000 owed to the City just "written off", according to an independent audit of City finances.

When I met with her in February, she told me she had a valid lease and was paying utilities. That was untrue. I have learned recently that she stopped paying utilities several years ago, in 2011, or perhaps even earlier. She has told others that utilities are not being paid until there's a new lease.

As Right to Know requests have descended upon Bethlehem like a plague of locusts, the City decided it's time for a new lease at Illick's Mill. It was on the agenda for Wednesday night's City Council meeting, and you can see it yourself under "back up documents." (Sublease Agreement Illicks Mill).

This proposed lease is pretty much like the old lease, with two major exceptions. This one calls for monthly rent of $300 and requires the nonprofit to pay for utilities.

Even heating oil.

Dolan, who really should have no public role in the finances of an entity that pays her a salary, nevertheless had to weigh in.

Over the weekend, she sent several emails to the Mayor, in which she specifically stated she would prevent the lease from being considered by Council.

Quite clearly, she is in violation of the Ethics Act.

Section 1103(a) of the Ethics Act states, "No public official or public employee shall engage in conduct that constitutes a conflict of interest." The Act defines "conflict of interest" as the "[u]se by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated."

As recently as this weekend, Dolan was using the authority of her public office and confidential information she obtained by virtue of her public office, to threaten to keep the proposed lease from Council.

Dolan is now telling The Express Times that she met with the Mayor concerning a lease earlier this year. That's a violation of the Ethics Act.  She acknowledges that she somehow talked former Mayor John Callahan into waiving utilities completely and to even start supplying heating oil. Of course, that's her third story now. She told me she was paying utilities and told someone else she was waiting for a new lease. Now it's blame Callahan time. It's also another conflict of interest by her. Maybe Callahan was getting hounded. Or maybe there's a fourth story.

One Express Times reader sums things up quite nicely:

"So, let me get this straight. The organization for which a city councilwoman is a paid employee gets a special break on rent and utilities while taxpayers and businesses have to pay their taxes, which she has no doubt voted yes to increase? Something smells about this entire situation. Maybe she personally would be willing to pay my utilities. Sounds like a fair trade to me."

What smells is a conflict of interest.

So who cares about an Ethics Act violation? The Commission will make a ruling ten years after everyone is dead right? Wrong. Whether Dolan knows it or not, that conflict of interest provision in the Ethics Act is exactly what then Attorney General Corbett used to go after state representatives who were using state employees to run their political campaign. The Court noted three elements to the offense: " (1) the defendant was a public official;  (2) the defendant knowingly or intentionally used the authority of his or her office for private pecuniary gain;  and (3) the gain was more than de minimis."

Dolan is a public official. She is knowingly and intentionally using the authority of her office to avoid rent and utilities at a nonprofit that pays her a salary. The gain is certainly more than de minimis.

The ice beneath her is cracking.

According to a Morning Call account, Board Chair Andrew Bollinger is now speaking for Fox Environmental, not Dolan. He and the Mayor have talked. No threats. The Mayor is willing to negotiate terms, but the free ride is over. Bollinger and his Board appear to be tired of the hole Dolan is digging for them.

Someone needs to relay that message to Dolan.

This nature center should continue, thanks to the hard work of many people over the years, not just Dolan. If she cared about its mission, she'd resign. In fact she needs to leave City Council as well.

51 comments:

Anonymous said...

You hate this but it is merely the first of many scabs that could be scratched off of the Callahan years. Of course they set her up, she was a vote. At times she was a pain in the butt but when the Mayor called, she did what she was told.

If you wanted to dig you could retell this story with numerous actors all leading back to his former royal eminence the Prince of Casino and his cabinet.

She is certainly the poster child of bad government but someone else bought the poster.

Dolan should be held accountable but I will bet you that you could put this n the paper the day before her next election and the Bedlum shepple would still pull her lever. Also even though he is from a different royal camp don't count on Bobby D. to shake the boat to much. it I snow his guys turn to milk the cow.

Why do you think they call it Bedlum.

Bernie O'Hare said...

You don't really know what you are talking about. You are so blinded by hatred, you condemn everyone with no evidence. I prefer to see the evidence. If Donchez is such a pushover, why is he insisting on rent and utilities? Why is Dolan lashing out at him? Could this implicate Callahan? It might but he has no conflict of interest. She does, and is continuing to abuse her office. It has to stop.

Bernie O'Hare said...

One other point. I am the person who has now posted three stories about this nonprofit. And I sign my name. I am calling the shots as I see them, and am motivated by a disdain for an elected official who uses her office for private gain. What motivates people like you? You don't say who you are, crawl out from under a rock to attack everyone with no evidence, then slink away.

Anonymous said...

Not sure about Waldron and the new lady yet. However, other than Eric Evans don't have much use for the rest of the members of council. They really should be voted out.
They should be but they won't be.

Anonymous said...

The next board meeting of the Fox Center should be very interesting.

Anonymous said...

In the Mcall, Willie again refuses to address the situation and only tries to make Donchez look bad. When is Willie going to start taking responsibility for the roles he was elected to serve (council/President) and stop whining about Donchez. Only makes him look bad. And young. And whiney. And immature.

Anonymous said...

Am I missing something? has the AG been notified. Is the AG looking into this. If she resigns her position with the Fox environmental Center does this all go away? It will cetainly help with the AG investigation.

Anonymous said...

"Of course they set her up,"

oh, for fuck sake, get over yourself

Anonymous said...

BO, the whole of council knew, DR knew, the auditors knew, no matter how you stir it..............

Anonymous said...

no comment, no comment, cover up and hide, hope this doesn't affect our artsquest tickets

this little matter was brought up a couple of years ago at a council meeting. Evans shut the man who complained down

Anonymous said...

Bernie
When everyday folk donate to a local group such as the former
mill they believe it is being well managed and if told it is tax exempt believe it. If she lied, she should resign.

Anonymous said...

Motives aside, Bernie, you can take away one salient point from 12:16 am -

Those who supplied the oil, authorized the write-off, allowed her to not pay rent, are deserving of equal scrutiny and criticism.

No way she pulled off all of this without the help of those in position to do so.

Have a happy quince de Abril, or, as we say in Los Estados Unidos, "You-must-deliver-your-tribute-by-midnight-so-we-can-fund-another-year-of-this-shit-day!"

-Clem

Anonymous said...

Dude, it's a historic building that the city relinquished. Tear the thing down. Is it worth wasting people's time and money on?

And its a stretch to correlate the Harrisburg scandal and some puny historic outfit in Bethlehem that no one cares about.

Anonymous said...

When everyday folk donate to a local group such as the former
mill they believe it is being well managed and if told it is tax exempt believe it. If she lied, she should resign.


You are naive. This was a rinky dink operation operated on a shoestring, No one cares.

John Blankstein said...

I think its worth noting that the Mill is now an asset to the city of roughly a million dollars where 15 years ago it was a condemned derelict building that might have cost, what, 100k to tear down?

So unless the city has paid more than a million dollars in heat I think we all slow down a bit, get whatever irregularities exist sorted out, and move on to some more pressing problems the city faces.

Bernie O'Hare said...

The fact that the Mill is an assset, and it is an asset because of a lot of work by a lot of people, is no justification for a violation of the conflict of interest law in the Ethics Code. Dolan needs to resign. Nobody is out to hammer the Mill. But it is time to stop her nonsense, and that's the reason for a new lease. Yes, be fair to the Mill. But send a message that Dolan has no say in this decision. She is conflicted.

Bernie O'Hare said...

"BO, the whole of council knew, DR knew, the auditors knew, no matter how you stir it.."

I doubt many knew or gave it much consideration until Steve Antalics started raising questions. I doubt any of them know her 501c3 status had been revoked. But you are quick to condemn everyone.

Bernie O'Hare said...

"Those who supplied the oil, authorized the write-off, allowed her to not pay rent, are deserving of equal scrutiny and criticism."

Read the law Clem. If the evidence points elsewhere, so be it.

Bernie O'Hare said...

"You are naive. This was a rinky dink operation operated on a shoestring, No one cares."

A lot of people care. Especially those who gave Dolan their money or time. She needs to go.

Bernie O'Hare said...

"And its a stretch to correlate the Harrisburg scandal and some puny historic outfit in Bethlehem that no one cares about."

It's no stretch at all. It is the exact same law. Because "no one cares" about the Mill, that justifies blatant conflicts of interest that violate the Ethics Act? OK. Try that defense.

zoid said...

Great article Bernie, stay on it, there is probably more there than we know.

Anonymous said...

http://www.portal.state.pa.us/portal/server.pt/document/1021262/sec_-_3_ethics_complaint_form_pdf

here is the form, file away

Bernie O'Hare said...

I have no intention of filing a complaint and then being barred from discussing the matter. I suspect that if this goes further, it won't be with the Ethics Commission.

I just received evidence that Dolan voted for a budget that included a fuel oil line item for Illicks Mill.$5000. She also voted for last year's budget, which included a $6,000 line item for heating oil at Illick's Mill. These votes are two other conflicts of interest.

Anonymous said...

Another good story, Bernie. I admit I visited your blog today to see if you posted some poop on the UMBT shitstorm that Angle is poised to unleash, based on last night's meeting. I'm a little disappointed, honestly. I was hoping to get the real scoop. Back to the topic at hand, there does appear to be a conflict of interest here - it happens all over the place, and it's good to see someone cover it.

Anonymous said...

Bernie? How can city council and city government in general support this behavior? Are they not ALL violating the Ethics Code by not removing her from council after finding out she is in violation? Why does it seem these stories hit and then nothing happens to these abusers of power?

Anonymous said...

If money was raised while she was lying about tax exempt status, a crime may have been committed. Good thing she's a Democrat in Morganelli's county and Kathy Kane's state.

Anonymous said...

@9:03 is a low life trick to muddy the water and promote a defense for Councilwoman Dolan.
I'm struck by the weak and whining nature of her defenders (defender?).
The councilwoman has behaved arrogantly for years and treated others dismissively. The last administration's inside players shared a haughty attitude. Yes,some nice work was done at the Mill and all involved deserve thanks, still it is deeply disturbing to see the irregularities that are being uncovered
and the fact that there are people that think this is somehow acceptable.

C said...

You have to be so careful with public money...no one wins here. I hope it all works out, I have had nothing but good dealings with Karen.

Anonymous said...

If the Director of this organization wants to preserve the integrity and future of this valuable center, one that her hard work and vision largely produced,she must graciously step aside.
This is the one sure way to insure this organization can continue (and paradoxically the best chance of saving the Councilwoman's political career). Barring a dignified and principled resignation,the board must act and remove her.
Small organizations like this are the lifeblood of a functioning livable community. This group can and should be redeemed.

Bernie O'Hare said...

I agree that the Mill is a worthwhile effort and should continue. Dolan deserved credit for her countless hours there. But she mismanaged it, engaged in conflicts, and is ruining the very organization she hoped to see blossom. She needs to go, not just from the Mill,but from Council.

Anonymous said...

I agree Bernie,and yet look at the shameful goings on at the Beth Steel Industral Museum and that bunch of well placed wealthy white guys are getting away with!!!!!!!!!
Absofuckinglutely outrageous.

$$$$$$$$$$$$$$$$$$$$$$$$$$$

Anonymous said...

Wide misappropriate thousands when you can misappropriate millions?

Bernie O'Hare said...

3:12, I consider Dolangate worse bc she is an elected official who abused her office.

Anonymous said...

Ethics violations cannot be undone by resigning. The Ethics Commission takes their job very serious and is likely to levy a very hefty fine.

JOHN M

Anonymous said...

The only way to "fix" Bethlehem government is to vote out every incumbent official. Replace them with slightly less inbred replacements and you may have a shot at cleaning up the incestuous nature of Bedlum government.

Anonymous said...

It's a riot to read all the whining from sheep in that one-party town. Shut the F up and go back in a pull your one lever the way you always do. Democracy is as dead in Bethlehem as it is in Allentown and Easton. Baaaa. Baaaaa. Seriously Democrats in these cities, shut the F up, stop your whining and soak in your electoral victories. This is how McDonalds employees in Easton get their wallets rifled by "I never raised taxes" Panto. This is how Callahan cooked books and covered up family scandals in Bethlehem while failing to deliver on his casino tax promise. This is how Pawlowski gets luxury box seats to hockey in Allentown after ethnically cleansing a neighborhood to eliminate unsightly dark people. Dolan is exactly what Bethlemites have voted for again, and again, and again. You so richly deserve her and every sleazy thing she's done to rip you off. Ask Morganelli to investigate! Bawhahahahaha.

Anonymous said...

John M. Anonymous . Hummmm what could that mean?

Anonymous said...

Bernie,

Saw that the express ran a piece on this, as you had predicted. That said your coverage blows theirs out if the water.

Hank_Hill

Anonymous said...

Dolan is very popular and would win in a landslide if an election were held today. She's a little crooked, but it beats being represented by Catholics or Republicans or Catholic Republicans. There's no place in Bethlehem for their kind. Carry on Karen. Don't let the fish eaters and teabaggers get you down. You'll never be prosecuted and your defenders have your back. This is our town; not theirs.

Anonymous said...

http://www.lehighvalleylive.com/bethlehem/index.ssf/2014/04/bethlehem_councilwoman_resigns.html#incart_river_default

Hank_Hill

Anonymous said...

She resigned today due to perception of conflict of interest - BOH is on the cutting edge once again.

Anonymous said...

She needed to resign from Council ! Great way to conduct yourself as a Teacher and a Elected Official, Karen !

Anonymous said...

Is she going to resign from city council? Conflict of interest is still conflict of interest. Let the ethics investigation begin. Does she serve time in county or state prison?

Anonymous said...

State prison

Anonymous said...

She survives as a council person.
Count on it.

Anonymous said...

Has a reporter asked other members of council about this? Has anyone asked Callahan, Joe Kelly or anyone else in the past administration. They all knew what was going on and they all should be help accountable for the actions!

Anonymous said...

Sorry " held"

Anonymous said...

The entire Callahan Admisntration enabled her as much as blog mentor enables Mezza. Callahan, Hanna and the others helped her with these insider deals.

Shameful.

Bernie O'Hare said...

I don't think Callahan or Hanna had much to do with it. I am continuing to dig into facts, while you sling bullshit.

Anonymous said...


It's no stretch at all. It is the exact same law. Because "no one cares" about the Mill, that justifies blatant conflicts of interest that violate the Ethics Act? OK. Try that defense.


It's like Clinton getting a blow job. Sure, technically he perjured himself. But no one cared except a partisan Congress. And no one cares about this except partisan nitpickers.

John said...

What's important to me in this matter are the public amenities - parks and facilities - along the Monocacy Creek from where it meets the Lehigh River up to Nazareth. Of particular importance are the entities responsible for them (in some order): the Delaware and Lehigh National Heritage Corridor, Historic Bethlehem Museums and Sites/HBP, the City of Bethlehem, the G. Fox Environmental Center, Northampton County's Archibald Johnston Conservation Area, and Bethlehem Township's Housenick Park. I'm seeing little coordination among these organizations for the careful management of the creek's public lands. I consider each of the organizations along the creek to be stewards of the greatest jewels of the city - and I want them to talk regularly with one another.