McMaster v. Department of Community Affairs

610 A.2d 525, 148 Pa. Commw. 206, 1992 Pa. Commw. LEXIS 391
Commonwealth Court of Pennsylvania·Decided May 27, 1992·No. No. 1639 C.D. 1991·Published·Cited by 5 cases

Opinion

PALLADINO, Judge.

James M. McMaster appeals an order of the Department of Community Affairs (Department) which dismissed McMaster’s complaint filed pursuant to the Local Government Unit Debt Act (Debt Act), Act of July 12,1972, P.L. 781, as amended, 53 P.S. §§ 6780-101—6780-609.

The facts of this case are as follows. McMaster, a taxpayer of Bensalem Township (Township), Bucks County, filed with the Department a four-count complaint, in the form of a letter, which alleged violations of law by the Township in its enactment of an ordinance authorizing a $5,800,000 bond issue.

Specifically, McMaster alleged: (1) that a copy of the proposed ordinance approving the bond issue, including provisions regarding bond maturity dates and interest rates, was not available for public inspection prior to its adoption; (2) that the Township’s decision to pass the ordinance was made prior to the June 10, 1991 meeting at which the Township council enacted the ordinance; (3) that the Bensalem Township Economic Development Corporation, which will supply the land and manage the construction to be paid for from bond proceeds, failed to provide public access to its records relating to the construction; and (4) that two of the five members of the Township council had conflicts of interest when voting on the bond ordinance.

The Township filed a motion to dismiss in the nature of a demurrer, and the Department appointed a presiding officer. After conducting a hearing, the presiding officer concluded that the Department was without jurisdiction to consider counts 2, 3, and 4 of McMaster’s complaint.

As to the remaining count (public accessibility to a complete copy of the proposed ordinance approving the Township’s bond issue), the presiding officer found that “the document available for public inspection ... contains blank spaces where exact financial details are to be added. Interest rate calculations and figures calculated from such rates are not provided.” [209] Report of the Presiding Officer, at 2. Nevertheless, the presiding officer concluded that because the missing information is ordinarily not available until the actual passage of the ordinance, and because the Debt Act contemplates amendments to bond ordinances, count 1 of McMaster’s complaint should also be dismissed.

After receipt of the presiding officer’s report, the Department Secretary entered an order dismissing McMaster’s complaint.

On appeal,1 McMaster argues that: (1) the Department violated the Rules of Administrative Practice and Procedure, 1 Pa.Code §§ 35.1-35.251, by issuing its order and serving the report of the presiding officer simultaneously, thereby precluding McMaster from filing exceptions with the agency head (here, the Department Secretary) pursuant to 1 Pa.Code § 35.211; (2) the Department erred by concluding it did not have jurisdiction to consider counts 2, 3, and 4 of McMaster’s complaint; and (3) the Department erred by concluding that the copy of the proposed ordinance made available by the Township satisfied the strictures of the Debt Act.2

As to the first issue, McMaster argues that the Department in effect precluded him from filing exceptions because it filed its order at the same time it served him with the report of the presiding officer.

Section 35.207 of Title 1 of the Pennsylvania Code provides that:

Proposed reports shall be filed with the office of the agency, which shall serve copies thereof upon all parties----

1 Pa.Code § 35.207. Section 35.211, in turn, provides that participants desiring to appeal to the agency head shall, [210] “within 30 days after the service of a copy of a proposed report or other such time as may be fixed by the agency head,” file exceptions to the proposed report.

In Luckhardt v. State Employees’ Retirement Board, 74 Pa.Commonwealth Ct. 393, 459 A.2d 1347 (1983), where an agency failed to serve a copy of a proposed report of a hearing examiner on the petitioner therein, we declined to reverse or remand because the hearing examiner’s conclusion was in petitioner’s favor, and therefore petitioner was not harmed by the failure of service.

In the current case, McMaster was served with the report, albeit in a timeframe that, he argues, precluded his filing of exceptions. However, as in Luckhardt, McMaster has not asserted that he was harmed by the failure of the agency (here, the Department), except to allege that “Perhaps if the proper procedure had been followed, McMaster would have been able to persuade the [Department’s] Secretary that the Motion to Dismiss should have ben [sic] denied----” McMaster’s Brief, at 6. Such an argument calls for speculation.

Moreover, we can find no regulation that explicitly precludes the filing of exceptions even where an agency files its order during the thirty-day timeframe for filing exceptions specified in section 35.211.

Furthermore, even if the actions of the Department precluded McMaster from arguing his case directly to the Department Secretary by way of exceptions to the report of the presiding officer, there is no indication that McMaster filed an application for rehearing or reconsideration with the Secretary pursuant to section 35.241 of Title 1 of the Pennsylvania Code, 1 Pa.Code § 35.241. Such an application would have enabled McMaster to argue his case directly to the agency head. However, McMaster elected instead to pursue directly an appeal before this court.

Significantly, McMaster raises before this court both of the substantive issues of law he argues he would have raised to the Department Secretary, namely, the issues of the Depart[211] ment’s jurisdiction and the sufficiency of the proposed ordinance made available by the Township.

In sum, while “we do not condone the [Department’s] deficiency” in failing to follow applicable regulations, Luckhardt, 74 Pa.Commonwealth Ct. at 396, 459 A.2d at 1348, we conclude that the Department’s failure caused McMaster no harm, and that remand on this ground is not warranted in the circumstances of this case.

As to the second issue, McMaster argues that the Department erred by dismissing counts 2, 3, and 4 on the ground that the Department lacked jurisdiction to consider them. McMaster concedes that his position on this issue is contrary to Property Owners, Residents, and/or Taxpayers of Pleasant Valley School District v. Pleasant Valley School District, 100 Pa.Commonwealth Ct. 513, 515 A.2d 85 (1986), but argues that that case should be overruled.

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McMaster v. Department of Community Affairs, 610 A.2d 525, 148 Pa. Commw. 206, 1992 Pa. Commw. LEXIS 391 (Pa. Ct. App. 1992).

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