Requester also challenges the Department's withholding of certain records under the privilege of attorney-client communications and, relatedly, the attorney work-product doctrine. However, at oral argument, the Department's Counsel represented, and Requester's Counsel agreed, that the records withheld as privileged attorney-client communications and under the attorney work-product doctrine had been disclosed to Requester. Therefore, we conclude that, as a result of that disclosure, Requester's challenges based on the attorney-client communications privilege and attorney work-product doctrine have been rendered moot, and none of the exceptions to the mootness doctrine apply.
I. Factual Background
Since 1996, pursuant to the Municipalities Financial Recovery Act
A. The Request under the RTKL and the Department's Responses
On November 28, 2017, the Department received, via email, a request from Requester, a paralegal with the law firm of Conrad O'Brien, P.C., under the RTKL. The request consisted of 20 subparts and requested, inter alia , copies of specific records, including documents exchanged between EConsult, Fairmount, and McNees, relating to the potential monetization or privatization of the Chester Water Authority (CWA).
B. Requester's Appeal to OOR
Requester filed an appeal under the RTKL with OOR, arguing that the Department had not provided sufficient information to meet its burden of showing that the withheld records were exempt from disclosure. (Id. at 4a-5a.)
In response, the Department submitted an agency affirmation from Jennifer Fogarty (Fogarty Affirmation), the Department's Open Records Officer, who affirmed as follows. McNees was hired by EConsult to provide legal services under the Contract. (Id. at 69a.) The Department and EConsult, Fogarty stated, were the clients of McNees. The Department paid McNees' legal bills for the work it performed under McNees' subcontract with EConsult. (Id. ) As to the EConsult Report, Fogarty explained redactions were made to it pursuant to the internal, predecisional deliberation exception for the following reasons:
[The Department] redacted a section of the [EConsult] Report entitled "Use of Borrowing Proceeds" as internal predecisional deliberations of [the Department] .... This redacted section of the [EConsult] Report includes Act 47 Coordinator Team recommendations for how the City should prioritize its payments to vendors and other obligations that were based in part on input from McNees attorneys.
[The Department] redacted a small portion of a section of the [EConsult] Report entitled "Pension Minimum Municipal Obligation Payments". The redaction was made on the basis that it contains internal predecisional deliberations between the Act 47 Coordinator and [the Department] containing recommendations pertaining to the proposed City budget ....
[The Department] redacted portions of a section of the [EConsult] Report entitled "Remaining Short and Long Term Financial Challenges" in which the Act 47 Coordinator sets out a proposed strategy for the City to reach a balanced budget, because this text reflects internal predecisional deliberations between [the Department] and its contractors ....
[The Department] redacted portions of the section of the [EConsult] Report entitled "Financial Developments Concerning Key Revenue Sources". The redacted text consists of impressions and analysis of the Act 47 Coordinator and McNees with respect to financial outlook, legal conclusions of McNees attorneys, and contains recommendations for future action as to maximize the City's revenue sources. Accordingly, the text contains internal predecisional deliberations of [the Department] with its contractors ....
[The Department] redacted a two-sentence portion of the part of the [EConsult] Report entitled "Financial Audits", in which the Act 47 Coordinator identifies a problem and proposes a solution. This information is exempt as internal predecisional deliberations between [the Department] and its contractor ....
[The Department] redacted the first two sentences from the section entitled "Grants Coordinator". This redacted text includes Act 47 Coordinator recommendations for future action to improve the City's grants process. The redacted text reflects internal agency deliberations of [the Department] with its contractors.
[The Department] redacted portions of the section entitled "Financial Outlook and 2018 Budget". These sections contain Act 47 Coordinator impressions, conclusions and recommendations to be given to the City toward reaching a balanced budget. The redactions were made on the basis that they reflect internal agency deliberations between [the Department] and the Act 47 Team, its contractors.
(Id. at 70a-71a.) Fogarty stated that the EConsult Report "was created solely for" the Department, and the Department "does not share the [EConsult] Report ... with outside parties." (Id. at 70a.) As for the Email Attachment, Fogarty explained that the Department withheld it because it "is a proposed response letter addressed to [the CWA's] counsel in draft form." (Id. at 71a-72a.) Fogarty noted that the Email Attachment "was submitted to [the Department's] staff for review and comment for an action to be taken" and, therefore, was not provided pursuant to the internal, predecisional deliberation exception. (Id. at 72a.)
In a memorandum of law, Requester argued that the internal, predecisional deliberation
The OOR Appeals Officer (Appeals Officer) requested supplemental submissions addressing, inter alia , whether records created or received by third-party subcontractors were internal to the agency. (Id. at 323a-24a.)
In the Department's supplemental submission, the Department argued that the internal, predecisional deliberation exception applied because the withheld records involved the Department's communications with both EConsult and McNees and were generated at the Department's express direction for the purpose of discussing, studying, and weighing various approaches to the challenges facing the City. (Id. at 333a.)
In further support, the Department offered affidavits from Adam L. Santucci, an attorney and member with McNees, and Stephen Mullin, the President and Principal of EConsult, which were almost identical. Santucci and Mullin stated that when the RFP was issued, EConsult and Fairmount, "the then-current Act 47 Coordinator team," "invited McNees to contribute to a joint response to the RFP, whereby McNees would provide the necessary legal experience." (Id. at 336a, 340a.) With McNees part of the Act 47 Coordinator team, "it was believed that a full-service Recovery Coordinator would be created to provide all aspects of municipal finance, public policy, legal counsel and economic development consultation throughout the implementation of the recovery plan." (Id. at 336a, 340a.) McNees' role was to advise the Department on the Recovery Plan's compliance with Act 47, providing "guidance, legal advice, legal strategy and recommendations to EConsult and Fairmount," who are the Department's agents, so that the Department could help the City implement the Recovery Plan and exit its financially distressed municipality status. (Id. ) In particular, McNees was expected first to consult with EConsult and Fairmount in order to identify and recommend legal options for reducing the past and future liability of the City. In addition, McNees was to evaluate recommendations from other members of the Act 47 team to ensure they complied with the law. In other words, legal and financial matters were intertwined. In order to make recommendations and analyze the recommendations of others, McNees had to "obtain and consider feedback from EConsult, Fairmount," and the Department. (Id. )
In a supplemental memorandum of law from Requester, he argued that records shared by an agency with its contractors, subcontractors, third parties, or consultants were not internal to the agency. Requester argued that EConsult and Fairmount were not agents of the Department because the Department and EConsult have divergent interests and asserted that the Contract expressly disclaimed any agency relationship between the Department and EConsult.
C. OOR's Final Determination
After conducting an in camera review of certain records, OOR granted Requester's appeal in part and denied it in part, concluding, as relevant here, that some of the withheld records were exempt from disclosure because they reflected internal, predecisional deliberations. OOR agreed with Requester that EConsult, McNees, and Fairmount were not agencies within the meaning of the RTKL, but determined the withheld records were still internal to the
Requester now petitions this Court for review.
II. Appeal to this Court
A. Arguments of the Parties
Requester argues that OOR erred in concluding that the Department properly invoked the internal, predecisional deliberation exception because records shared with outside contractors cannot be considered internal to the agency. Requester notes that the RTKL "is silent as to contractors of a non-agency in a manner similar to the relationship between McNees and Fairmount Capital to E[C]onsult," but that because exceptions under the RTKL should be interpreted narrowly, internal records should be limited to records shared within the agency or among several agencies. (Requester's Brief at 21.) Further, OOR's own case law that considers records shared where there is a contractual relationship between the agency and a contractor is inapposite as McNees and Fairmount were EConsult's contractors, not the Department's. While the internal, predecisional deliberation exception has been extended to agents of the agency, "OOR did not and could not conclude that E[C]onsult, McNees and/or Fairmount Capital were agents of the Department." (Id. at 22-23.) Rather, EConsult is an independent contractor of the Department, while McNees and Fairmount have some "unknown and unclear" relationship with EConsult. (Id. at 23.) As such, Requester asserts that OOR erred in insulating the withheld records from disclosure under the internal, predecisional deliberation exception.
The Department argues that records are internal if the agency has a contractual relationship with the party with whom communications are shared. The Department asserts that a contractual relationship exists between it, EConsult, Fairmount, and McNees, as they are all bound by the Contract, which obliges them to assist the Department with the financial and legal aspects of the Recovery Plan. It would serve no compelling public interest and undermine the purpose of the internal, predecisional deliberation exception to require disclosure of records shared between an agency, a contractor, and an essential subcontractor. Therefore, the Department argues OOR correctly concluded that the
B. The Internal, Predecisional Deliberation Exception
Before us is a question of statutory interpretation. Thus, we first set forth the well-settled principles for interpreting a statute. "The object of all interpretation and construction of statutes is to ascertain and effectuate the intention of the General Assembly." Section 1921(a) of the Statutory Construction Act of 1972, 1 Pa. C.S. § 1921(a). The best indicator of legislative intent is the plain language of the statute. Clearwater Constr., Inc. v. Northampton Cty. Gen. Purpose Auth. ,
Therefore, beginning, as we must, with the text of Section 708(b)(10)(i) of the RTKL, it exempts from disclosure:
[a] record that reflects ... [t]he internal, predecisional deliberations of an agency, its members, employees or officials or predecisional deliberations between agency members, employees or officials and members, employees or officials of another agency, including predecisional deliberations relating to a budget recommendation, legislative proposal, legislative amendment, contemplated or proposed policy or course of action or any research, memos or other documents used in the predecisional deliberations.
65 P.S. § 67.708(b)(10)(i). As the text of the statute sets forth, in order to claim the internal, predecisional deliberation exception, the agency, which bears the burden of proof by a preponderance of the evidence, must show: "(1) the information is internal to the agency; (2) the information is deliberative in character; and, (3) the information is prior to a related decision, and thus 'predecisional.' " McGowan ,
Here, the parties dispute only the first element of the internal, predecisional deliberation exception, whether the withheld records were "internal to the" Department since the Email Attachment was sent by a McNees attorney to the Department's staff and staff of EConsult and Fairmount, while EConsult shared its Report with the Department. In the past, we have held that "[r]ecords satisfy the 'internal' element when they are maintained internal to one agency or among governmental agencies." Smith ex rel. Smith Butz, LLC v. Pa. Dep't of Envtl. Prot. ,
"The RTKL is remedial in nature and is designed to promote access to official government information in order to
With these purposes in mind, we turn to the facts at hand. As the Appeals Officer determined, a contractual relationship exists among the Department, EConsult, McNees, and Fairmount. The evidence the Department presented showed that in September 2015, the Department issued a RFP seeking, consistent with Section 221 of Act 47, 53 P.S. § 11701.221, to continue the services EConsult had been providing as the Act 47 Coordinator, that is, to continue the implementation of EConsult's Recovery Plan for the City. (R.R. at 139a-41a.) EConsult filed a response that specifically noted that it would be subcontracting legal and financial work associated with the Recovery Plan to, respectively, McNees and Fairmount, and that McNees and Fairmount would be paid by the Department through EConsult. (Id. at 144a.) Indeed, according to EConsult's budget, more than half of it was allocated toward paying McNees and Fairmount. (Id. at 154a.) This response was incorporated into the Contract. Further, Santucci and Mullin confirmed in their affidavits that McNees and Fairmount were part of the Act 47 team with EConsult, and that McNees and Fairmount performed, respectively, legal services and financial services for EConsult who, again, was hired to implement the Recovery Plan. (Id. at 334a-41a.) Thus, the record clearly establishes a contractual relationship between the Department and EConsult, McNees, and Fairmount for the purposes of implementing, pursuant to Act 47, the Recovery Plan.
Given this contractual relationship and the purpose for which it was formed, we conclude that it serves, rather than hinders, the RTKL to interpret "internal to the agency" as including the predecisional, deliberative information that was exchanged between the Department and EConsult, McNees, and Fairmount. In reaching this conclusion, we are guided by the fact that state "agencies occasionally will encounter problems outside their ken, and it clearly is preferable that they enlist the help of outside experts skilled at unravelling ... knotty complexities." Nat'l Inst. of Military Justice v. U.S. Dep't of Justice ,
Our interpretation is consistent with OOR's interpretation which, while not binding, we may consult in discerning the intent of the General Assembly. 1 Pa. C.S. § 1921(c) ; see Pennsylvanians for Union Reform v. Pa. Office of Admin.,
Our interpretation is also guided by the Freedom of Information Act (FOIA)
Although, here, we are not faced with as broad an application of the RTKL as the D.C. Circuit faced with FOIA in National Institute of Military Justice - there was evidently no contract between DOD and the non-governmental lawyers, DOD merely sought comments from them - we are persuaded by the D.C. Circuit's reasoning. As the D.C. Circuit emphasized in National Institute of Military Justice , much as we have emphasized in our case law, McGowan ,
Given the foregoing, we conclude that OOR correctly determined that the Department properly invoked the internal, predecisional deliberation exception to the withheld records. The evidence established that there was a contract between the Department, EConsult, McNees, and Fairmount. The Department engaged EConsult, McNees, and Fairmount, pursuant to Act 47, to assist the Department in implementing the Recovery Plan to relieve the distressed status of the City. The withheld records contain communications between Department, EConsult, McNees, and Fairmount that were internal to the Department, and Requester does not otherwise challenge those communications as either not deliberative or predecisional. As such, the Department satisfied its burden of proof on the internal, predecisional deliberation exception to the withheld records, and, thus, we affirm OOR's Final Determination concluding that the Department properly invoked the internal, predecisional deliberation exception to the withheld records.
III. Conclusion
For the foregoing reasons, we affirm the Final Determination of OOR concluding that the Department properly invoked the internal, predecisional deliberation exception to the withheld records.
NOW , April 25, 2019, the Final Determination of the Office of Open Records issued May 14, 2018, that the Pennsylvania Department of Community and Economic Development properly invoked the internal, predecisional deliberation exception is AFFIRMED . The remainder of Nolan Finnerty's petition for review is DISMISSED AS MOOT.
Notes
Act of February 14, 2008, P.L. 6, 65 P.S. §§ 67.101 -67.3104.
Act of July 10, 1987, P.L. 246, as amended , 53 P.S. §§ 11701.101 -11701.712.
Specifically, the request was as follows:
1. Copies of all documents, emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages concerning the potential privatization or monetization of the assets of the [CWA] from August 2017 to the present.
2. Copies of all documents, emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages concerning a bid for Aqua America to lease, purchase, operate, or otherwise privatize or monetize the assets of [CWA] from August 2017 to the present.
3. Copies of all communications, including but not limited to emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages, exchanged with Aqua America concerning the [CWA] from August 2017 to the present.
4. Copies of all communications, including but not limited to emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages, exchanged with American Water concerning the [CWA] from August 2017 to the present.
5. Copies of all communications, including but not limited to emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages, exchanged with an investor owned utility concerning the [CWA] from August 2017 to the present.
6. Copies of all records of phone calls with representatives of Aqua America, American Water, or other investor owned utilities from August 2017 to the present.
7. Copies of all documents, emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages concerning a valuation of [CWA]'s assets from August 2017 to the present.
8. Copies of all documents, emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages concerning proposals and considerations for the assets of [CWA] from August 2017 to the present.
9. Copies of all documents, emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages from the City['s] ... Act 47 Consultants/Coordinators, including but not limited to written materials exchanged between the City ... and E[C]onsult ... and/or Fairmount ... concerning the privatization or monetization of [CWA] from August 2017 to the present.
10. Copies of all documents, emails, text messages, letters, memoranda, proposals, other written materials, and voicemail messages from the City['s] ... Act 47 Consultants/Coordinators, including but not limited to written materials exchanged between the Commonwealth of Pennsylvania or the ... Department ... and E[C]onsult ... and/or Fairmount ... concerning the privatization or monetization of [CWA] from August 2017 to the present.
11. Copies of all records, including but not limited to invoices, concerning payments by the City ..., the Commonwealth of Pennsylvania or the ... Department ... to the City['s] ... Act 47 Consultants/Coordinators from August 2017 to the present.
12. Copies of all itemized legal bills from McNees ... for services related to the City ... from August 2017 to the present.
13. Copies of all itemized legal bills from David Unkovic, Esquire for services related to the City ... from August 2017 to the present.
14. Copies of all itemized bills from Fairmount ... for services related to the City ... from August 2017 to the present.
15. Copies of all itemized bills from Daniel Connelly for services related to the City ... from August 2017 to the present.
16. Copies of all itemized bills from E[C]onsult ... for services related to the City ... from August 2017 to the present.
17. Copies of all itemized bills from Stephen Mullin for services related to the City ... from August 2017 to the present.
18. Copies of all contracts between the City ... and any Act 47 Consultants/Coordinators, including but not limited to contracts with ... McNees ..., E[C]onsult ... and/or Fairmount ... from August 2017 to the present.
19. Copies of all contracts between the Commonwealth of Pennsylvania or the ... Department ... and any Act 47 Consultants/Coordinators for services related to the City ..., including but not limited to contracts with McNees ..., E[C]onsult ... and/or Fairmount ..., from August 2017 to the present.
20. Copies of all itemized bills paid by the City, the Commonwealth of Pennsylvania, and/or the ...Department ... for telephone calls made by the Mayor of [the] City and Chester City Council from August 2017 to the present.
(R.R. at 8a-10a.)
Collectively, we refer to the EConsult Report and Email Attachment as the withheld records.
Our standard of review of a final determination of OOR under the RTKL is de novo, while our scope of review is plenary. Bowling v. Office of Open Records ,
