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 While her status was revoked, she gave a misleading interview to The Express Times.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.