HomeMy WebLinkAbout899In Re: Joseph Budai
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
File Docket: 92- 046 -C2
Date Decided: 9/28/93
Date Mailed: 10/07/93
Before: James M. Howley, Chair
Daneen E. Reese, Vice Chair
Dennis C. Harrington
Roy W. Wilt
Austin M. Lee
Joseph W. Marshall, III
The State Ethics Commission received a complaint regarding a
possible violation of the State Ethics Act, Act 9 of 1989, 65 P.S.
§401 et seq. Written notice, of the specific allegation(s) was
served at the commencement of the investigation. A Findings Report
was issued and served, upon completion of the investigation, which
constituted the Complaint by the Investigation Division. An Answer
was not filed and a hearing was waived. A consent agreement was
submitted by the parties to the Commission for consideration which
was subsequently approved. This adjudication of the Commission is
hereby issued which sets forth the individual Allegations, Findings
of Fact, Discussion, Conclusions of Law and Order.
This adjudication is final and will be made available as a
public document fifteen days after issuance. However,
reconsideration may be requested which will defer public release of
this adjudication pending action on the request by the Commission.
A request for reconsideration, however, does not affect the
finality of this adjudication. A reconsideration request must be
received at this Commission within fifteen days of issuance and
must include a detailed explanation of the reasons as to why
reconsideration should be granted in conformity with 51 Pa. Code
§21.29(b).
The files in this case will remain confidential in accordance
with Act 9 of 1989, 65 P.S. §408(h) during the fifteen day period
and no one unless the right to challenge this Order is waived, may
violate confidentiality by releasing, discussing or circulating
this Order. However, confidentiality does not preclude discussing
this case with an attorney at law.
Any person who violates confidentiality of the Ethics Act is
guilty of a misdemeanor subject to a fine of not more than $1,000
or imprisonment for not more than one year, 65 P.S. §409(e).
Budai, 92- 046 -C2
Page 3
1991, 1992, and 1993.
a. Budai annually participated in Board actions to appoint
supervisors as roadmasters.
b. The actions were approved unanimously.
c. No official action was taken to divide the township into
road districts.
(1) The supervisors divided the township into zones
after the Reorganization Meeting each year.
(2) Budai was assigned to the Southwest Zone.
4. The Shenango Township Auditors took the following action to
approve supervisors' wages at their annual- Reorganization
Meetings:
a. January 3, 1990:
A motion was made to increase the wages of the township's
supervisors from $9.00 an hour to $9.45 per hour.
A motion was made to approve the following holidays: New
Years Day, Good Friday, Memorial Day, July 4., Labor Day,
Election Day, Thanksgiving, Christmas Day, and either the
day after or the day before.
A motion was made to approve vacation for supervisors
with either one or two years experience as roadmaster to
be granted two weeks vacation with pay at their regular
rate of hourly wages.
A motion was made to approve time and a half to be paid
for all hours worked in excess of eight hours in any work
day or forty hours in any week. There will be no
pyramiding of overtime pay.
A motion was made to approve life insurance at $5,000.00;
health and accident insurance; and hospitalization at
semi - private rate.
b. January 8, 1991:
Motion was made to increase the township's supervisors'
wages from $9.45 to $9.95 per hour.
Additional compensation in the form of holidays,
vacations, overtime, health and accident insurance and
hospitalization was approved the same as the previous year.
Budai, 92- 046 -C2
Page 5
7. In April, 1992, the supervisors /roadmasters and road crew
began using a different form of time sheet.
b. No description of work performed is provided.
8. Normal hours of operation for the Shenango Township Road
Department are Monday through Friday, 7:00 AM to 3:30 PM.
a. The auditors did not specify work hours for the
supervisors acting as roadmasters.
9. Shenango Township Bi- Weekly Time Reports include hours worked
and duties performed as reported by Joseph Budai between
January, 1990, and March, 1992.
a.
1/1/90 - 1/12/90
1/15/90- 1/26/90
1/29/90- 2/9/90
2/11/90- 2/23/90
2/26/90- 3/9/90
3/12/90- 3/23/90
3/26/90- 4/6/90
4/9/90- 4/20/90
4/23/90- 5/4/90
5/7/90- 5/18/90
a. Start and stop times were recorded in addition to total
hours worked.
1990:
80 regular
16 ot
1 Holiday
80 regular
80 regular
22 ot
80 regular
6 1/2 ot
80
26
80
regular
1/2 ot
regular
80 regular
80 regular
7 ot
1 Holiday
80 regular
5 ot
80 regular
3 ot
5/21/90- 6/1/90 80 regular
3 ot
6/4/90- 6/15/90 80 regular
20 1/2
6/18/90- 6/29/90 80 regular
Patch roads; cut brush; haul stone; make
catch basins.
Cut brush; flush sewers; truck maintenance;
haul stone; make signs.
Pothole repair; haul stone; repair
equipment; repair force main; replace
culverts; snow removal; cut brush.
Patched potholes; snow removal; replace
culverts - gardener Center Road, Hazen Street,
Cochran Hill.
Winter road maintenance; repair equipment;
cut brush; filled potholes.
Haul stone; repair vehicles; check lift
station; swept roads; prepare for paving.
Haul gravel from Kittanning and Vanport;
remove spreaders from trucks; food
distribution; road work.
Clean ditches; replace culverts; haul sand
and stone.
None listed.
Repair mower; stored snow plows; hauled
limestone; prepare and berm streets; install
catch basins; replace culverts.
None listed
Paving roads; organize material in buildings;
patched pot holes; mowed grass.
Replace culverts; flush storm sewers; berm
Budai, 92- 046 -C2
Page 7
sign in sheet. Each sheet is for one individual for one week; start and
stop times are listed each day and total hours worked are shown at the
bottom. Each time sheet is signed by the individual. None of the time
sheets list any duties performed.
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
Week
ending 4/10/92
ending 4/17/92
ending 4/24/92
ending 5/01/92
ending 5/17/92
ending 5/23/92
ending 5/30/92
ending 6/06/92
ending 6/19/92 -
ending 6/26/92 -
ending 9/11/92 -
Week ending 1/23/93 -
Week ending 3/19/93 -
Week ending 4/01/93 -
Week ending 6/6/93 -
11. After June 12, 1992, Joseph Budai worked for Shenango Township
on an as needed basis only.
12. W -2 Wage &. Tax Statements show that Joseph Budai was
compensated as a supervisor / roadmaster in the following
amounts between 1990 and 1992:
Check #
2430
2451
2525
2553
2629
2650
2710
2739
2812
2836
2892
2926
3008
1990: $21,882.26
1991: $21,574.52
1992: $ 9,571.25
Date
2/23/90
3/9/90
3/23/90
4/6/90
4/20/90
5/4/90
5/18/90
5/31/90
6/15/90
6/29/90
7/13/90
7/27/90
8/10/90
40 hrs.
21 hrs regular; 8 hrs. holiday
24 hrs.
34 1/2 hrs.
17 hrs regular; 24 hrs vacation
33 hrs.
21 hrs regular; 8 hrs holiday
18 hrs
37 hrs
24.5 hrs.
19 hrs.
4 hrs.
18 1/2 hrs.
18 hrs.
14 hrs.
13. Payments issued to Joseph Budai by Shenango Township for work
performed as a roadmaster include the following:
Amount
$ 695.99
897.10
628.73
618.73
702.32
670.01
660.70
650.69
643.17
628.73
618.73
628.73
618.73
Budai, 92- 046 -C2
Page 9
5313
5364
5402
5439
5503
6334
6429
6455
6543
6736
Total 1992:
Total 1993:
4/30/92
5/14/92
5/28/92
6/11/92
6/25/92
2/11/93
3/18/93
4/1/93
4/22/93
6/23/93
457.78
715.92
497.78
145.94
493.28
$7,244.89
36.07
157.78
162.29
215.38
126.24
$ 697.86
14. Shenango Township participated in a Food Distribution Program
sponsored by Lawrence County.
a. The county provided surplus food to be distributed to
eligible persons in the participating communities.
15. Shenango Township Supervisors /Roadmasters assisted the road
crew in the pick -up and distribution of the food.
a. The county notified the township when there was food
available.
b. The township road crew and truck were used to pick up
food from the county.
c. Each distribution began at 7:00 AM and ended at
approximately 10:30 AM.
d. Left -over food was inventoried and returned to the
county.
16. The bi- weekly time sheets show that Joseph Budai picked up and
distributed food while being paid as a roadmaster.
a. The road crew and other supervisors worked with Budai on
this.
17. According to the township bi- weekly time sheets, Budai
participated in food pick -up and distribution on the following
dates:
3/30/90 - food distribution - 8 hours
6/28/90 - food pickup, clean ditches - 8 hours
6/29/90 - (distribution) - 8 hours
Budai, 92- 046 -C2
Page 11
Date Description Hours
1/19/90 flush sewers 8
1/20/90 flush sewers 8
2/19/90 flusher to clean lift stations 8
2/20/90 flusher to clean and flush storm sewers 8
3/23/90
4/18/90
6/20/90
6/21/90
6/22/90
3/4/91
3/13/91
3/14/91
3/15/91
1/17/92
checked lift station 8
checked and cleaned lift stations 8
flushed storm sewers Willowhurst Circle 8
flushed storm sewers (Boro) 8
flushed storm sewers (Boro) 8
cleared pumps 8
sewer main break 8
sewer main break 8
sewer main break 8
- tap sewer, Gratton Pool (morning) 8
- snow removal (afternoon)
1/28/92 - Sunday, union, flushes truck 1.5
2/27/92 clean lift stations, sweep 8
3/16/92 - talked to inspectors on waterline about possible 8
interference with sewer
- meeting with police
- Mike Marburger in on camera use -
Cascade - Savanah Roads (sewer lines)
3/19/92 sewer maintenance, Penna. Avenue 8
3/20/92 sewer maintenance, Penna. Avenue 8
3/25/92 Camera sewer lines Cascade Dam, Savannah Rd. 8
2:30 AM
Walsh's Equipment open house
met with Bruce Sikora Contractor on problems
with sewers
25. Budai received $1,552.15 in compensation as a roadmaster for
work performed on sewer related work.
a. 1990: 72 hrs x $9.45 per hr = $680.40
b. 1991: 32 hrs x $9.95 per hr = $318.40
c. 1992: 24 hrs x $10.20 per hr = $244.80
1.5 hr x $15.30 per hr = $ 22.95
Budai, 92- 046 -C2
Page 13
30. Budai's compensation for work performed on the township park
while being compensated as a roadmaster totaled $557.20.
31. Former Shenango Township Supervisor, Andrew Piccuta, refused
to sign the time sheets for September, October, November,
1991, because Supervisor Golba and Budai were not working for
the township.
a. Bi- weekly Time Sheets show that Joseph Budai worked an
average of eight hours per day between January, 1990, and
March 20, 1992.
(1) . Time sheets for the period 6/30/90, through
12/31/90, were not available.
(2) Time sheets for the period 1/1/91, through 10/6/91,
were not available.
32. Joseph Budai usually works on the projects which involve sewer
line work. Budai has been known to drive the mowing machines
and clean driveway pipe.
33. The Federal Surplus Property Program is administered by the
General Services Administration under the Federal Property and
Administrative Services Act of 1949, as amended.
34. The Pennsylvania Department of General Services, Bureau of
Supplies and Surplus Operations, is the agency designated to
distribute surplus federal property, and ensure compliance
with Federal regulations within the state.
35. Federal law determines eligibility as "non- profit, tax - exempt
organizations that serve the public good in the areas of
health or education, and to government agencies, political
subdivisions, and organizations funded by and under the
direction of political subdivisions ".
36. The Federal Surplus Property Program is not open to the
general public.
37. Shenango Township had participated in the Federal Surplus
Property Program since 1981.
a. Its application for eligibility to the Commonwealth of
Pennsylvania, Department of General Services Surplus
Federal Property Division, was made November 30, 198i.
b. The application was made in the name of Shenango
Township, 1000 Willowbrook Road, New Castle, Pennsylvania
16101.
Budai, 92- 046 -C2
Page 15
County.
a. Employees picked out clothing, tools, gloves, and other
small items to be used in conjunction with their jobs at
the township.
b. A supervisor signed for these items.
c. Township employees regularly reimbursed the Township for
the cost of these items.
d. The Hermitage site operated 1 and 1/2 days, twice a
month.
43. Between January, 1990, and April 21, 1992, Joseph Budai signed
eight receipts for items obtained from a Federal Surplus
Property Program. These receipts are detailed as follows:
Receipt # Date Item Cost Total
41025 7/17/90 Fittings (1) $ .75 $ 21.75
Tool box (3) 21.00
41081 9/26/90 Chain saw (1) 60.00 78.75
Cable (1) 18.00
Trousers (1) .75
41470 10/11/90 Wrench (2) 1.00 37.27
Puller(2) 8.00
Screw (5) 1.90
Plumbing (1) 3.75
Bags (2) 2.00
Shovel (2) 3.00
Axe (1) 5.62
Unreadable (1) 12.00
Total 1990: $137.77
42133 3/5/91 Saw receipt (1)
Unreadable (1)
Unreadable (2)
Heaters (2)
Wrench (1)
Scraper (1)
Caliper (1)
Sander belt (1)
43253 5/22/91 Tool cabinet (2)
Tool box (1)
43727 9/1/91
Brown paint
$ 20.00
3.00
3.75
37.50
5.00
1.50
.75
100.00
60.00
1.75
3.75
171.50
61.75
7.76
Budai, 92- 046 -C2
Page 17
township.
48. An audit was conducted by the Pennsylvania Department of
General Services, Bureau of Supplies and Surplus Operations,
as the agent for the General Services Administration, which
administers the Federal Surplus Property Program. The Bureau
of Supplies and Surplus Operations is responsible for
allocating federal surplus items and enforcing complaints with
federal regulations within the State of Pennsylvania.
49. On April 21, 1992, the Director of the Bureau of Supplies &
Surplus Operations, Pennsylvania Department of General
Services, advised the Shenango Township Board of Supervisors,
by letter, that the township was immediately suspended from
participation in the Federal Surplus Property Program.
50. The recommendations of the Director of the Bureau of Supplies
and Surplus Operations were as follows:
a. Ronald Golba be banned from conducting business with the
Federal Surplus Property Program on behalf of the
township.
b. The township should return all items which they did not
intend to put into service immediately.
c. The township should be assessed a fair market value for
the items which could not be located during the
inventory, payable to the U. S. Treasury.
d. The township should be reinstated as an eligible donee
organization and allowed to participate in the program
only when the above conditions are complied with.
e. The township should adopt a policy prohibiting the sale
of federal surplus property.
51. Budai purchased three items from the Federal Surplus Property
Program which were not specifically meant for township use.
a. He purchased a sleeping bag for his own personal use, but
has since returned it to the township. He did not recall
the cost of the item.
b. He purchased a ball valve for the Athletic Association.
He said the valve was to rig up a watering system for the
ball field. The valve is still in use.
c. He purchased mess kits (dinnerware) for his son's boy
scout troop. The kits are in the possession of the
township and never left the building. He believed these
Budai, 92- 046 -C2
Page 19
certain items from a government surplus program for his own
personal use and that he received compensation for duties which
were not authorized in law.
Budai has served as a Shenango Township Supervisor and as
appointed roadmaster since 1990.
The Auditors of Shenango Township at their yearly
reorganizational meetings set the compensation for the supervisors
as township employees wherein they fixed the hourly rate, overtime,
vacation, holidays as well as various insurance benefits. (Fact
Finding 4.)
As to the usage of bi- weekly time sheets by employees in the
township, the reporting requirements varied in terms of the
information that had to be listed by the township employees. Until
April 1992, the time sheets had to contain the dates and hours
worked as well as a general description of the work performed and
payroll information. After that date, start and stop times had to
be recorded but not a description of work performed.
The duties which Budai performed from January 1990 through
March 1992 are detailed in Fact Finding 9. From April 1992
forward, the duties performed are not listed by Budai, only the
weeks and hours worked. (Fact Finding 10.)
When Shenango Township participated in a food distribution
program sponsored by Lawrence County, the bi- weekly time sheets of
Budai reflect that he picked up and distributed food while being
paid as a roadmaster. (Fact Finding 15.) The dates and times for
such food distribution work by Budai are set forth in Fact Findings
17 -20.
The township road crew and roadmasters also performed
maintenance and emergency repairs on sewer lines which are operated
by the Shenango Township Sewer Authority within the township.
(Fact Finding 21.) The dates and hours as to which Budai worked on
sewer related matters as well as the compensation he received are
set forth in Fact Findings 24 and 25. Budai also performed work on
a pump house for which he was compensated. (Fact Finding 26.) In
addition, Budai claimed hours worked on the township park. (Fact
Findings 29 -30.)
Controversy arose as to Budai and Supervisor Golba working on
such projects whereupon former Shenango Township Supervisor Andrew
Piccuta refused to sign the time sheets for three months in 1991
because he believed that Budai and Golba were not working for the
township. (Fact Finding 31.)
Separate and apart from above, Shenango Township participated
in a program administered through the Pennsylvania Department of
Budai, 92- 046 -C2
Page 21
of the varied duties performed by Budai, some are clearly road
work, others are road related, while others are questionable or
arguable as to whether they are road related or administrative.
However, on the record before us we cannot discern or pinpoint any
particular activities or duties which are classifiable as
definitively administrative. Since we cannot conclude that any
compensation received was for administrative services which would
be unauthorized, we find that Budai did not receive a private
pecuniary benefit in this case. Accordingly, we find that Budai
did not violate Section 3(a) of'Act 9 of 1989 regarding the receipt
of compensation.
Turning to the second allegation concerning Budai's purchase
as a township supervisor of items from the government surplus
property program for his own personal use, we find no violation
based upon our review of Fact Findings 44, 46 and 47 . For the
most part, the items purchased by Budai were not for personal use
except for an item valued at $13.50, the sleeping bag, the ball
valve and mess kits. As to the ball valve and mess kits, these
items went to the athletic association or a boy scout troup and
hence are not encompassed within Section 3(a) in that they did not
go to Budai, a member of his immediate family or a business with
which he or a member of his immediate family was associated.
However, as to the sleeping bag which he returned to the Township
and as to the surplus item valued at $13.50, such items did go to
Budai for his personal use. Such action would constitute a
violation of the Ethics Law (Robertson, Order 767), but for the
following reason. These two items fail within the exclusionary
language of conflict relative to action having a de minimis
economic impact. The term de minimis economic impact is defined as
follows:
65 P.S. §402.
Section 2. Definitions
"De minimis economic impact." An
economic consequence which has an
insignificant effect.
In applying the de minimis economic impact exclusion, we must
note that this is not a term that we may quantify as to a set
dollar amount for all cases; to the contrary, the definition must
be applied and determined on a case by case basis since a given
dollar amount which may be de minimis in one case would not be so
in another based upon the factual circumstances.
As to the instant case, we do believe under these facts that
these two items which Budai received for his personal use have a de
minimis economic impact. On that basis, we find no violation of
Section 3(a) of Act 9 of 1989 regarding the sleeping bag and item
In Re: Joseph Budai
ORDER NO. 899
File Docket:
Date Decided:
Date Mailed:
92- 046 -C2
9/28/93
10/07/93
1. Joseph Budai as a Supervisor for Shenango Township did not
violate Section 3(a) of Act 9 of 1989 regarding the receipt of
compensation for duties which he performed as township roadmaster.
2. Budai did not violate Section 3(a) of Act 9 of 1989 regarding
his purchase of a sleeping bag and an item of property valued at
$13.50 from a government surplus property program in that such
action had a de minimis economic impact.
BY THE COMMISSION,
JAMES M. HOWLEY, CHAIR