HomeMy WebLinkAbout1584 Schell
In Re: Jonas Schell, : File Docket: 09-041
Respondent : X-ref: Order No. 1584
: Date Decided: 6/23/11
: Date Mailed: 7/6/11
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Raquel K. Bergen
Nicholas A. Colafella
Mark Volk
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding possible violation(s) of the Public Official and Employee Ethics
Act (“Ethics Act”), 65 Pa.C.S. § 1101 et seq., by the above-named Respondent. At the
commencement of its investigation, the Investigative Division served upon Respondent
written notice of the specific allegations. Upon completion of its investigation, the
Investigative Division issued and served upon Respondent a Findings Report identified as
an “Investigative Complaint.” An Answer was filed and a hearing wasrequested. A
Stipulation of Findings and a Consent Agreement waiving an evidentiary hearing were
subsequently submitted by the parties to the Commission for consideration. The
Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement
has been approved.
I.ALLEGATIONS:
That Jonas Schell, a public official/public employee in his capacity as a Supervisor
for Foster Township, Luzerne County, violated Sections 1103(a), 1103(f) and 1105(b) of
the State Ethics Act (Act 93 of 1998), 65 Pa.C.S. §§ 1103(a), 1103(f) and 1105(b), when
he used the authority of his public position for private pecuniary benefit, including
but not limited to participating in discussions and actions of the Board of Supervisors to
award contracts to him and/or his private business, J.A. Schell Contractor; when he
participated in approving payments to J.A. Schell Contractor; when contracts were entered
into between the Township and J.A. Schell Contractor in excess of $500.00 without an
open and public process; when he failed to disclose on Statements of Financial Interests
for the 2005, 2006, 2007 and 2008 calendar years all direct and/or indirect sources of
income, financial interests in any legal entity engaged in business for profit and any office
directorship or employment or [sic] any nature whatsoever in any business entity.
II.FINDINGS:
1. Jonas Schell served as a Supervisor of Foster Township, Luzerne County, from or
about 1998 until October 13, 2008.
a. Schell resigned from his position as Foster Township Supervisor on October
13, 2008, due to health problems.
Schell, 09-041
Page 2
2. Foster Township is a Second Class Township governed by a three Member Board
of Supervisors.
a. Supervisors in Foster Township serve 6 year terms.
3. Voting at Foster Township Supervisor meetings occurs by roll call vote after a
motion is made and properly seconded.
a. Any abstentions or objections made to the motion are specifically noted in
the minutes.
4. Motions are made at regular monthly meetings to pay bills for invoices received.
a. Bill lists are provided at each meeting.
1. Each bill is available for review by the Supervisors prior to approval.
5. Signature authority over Township accounts is held by all three Supervisors.
a. Checks require the signature of two Supervisors.
6. Schell was a 50% partner in J&A Schell General Contractor with his brother, Allen
Schell.
a. Due to Schell’s declining health, Allen Schell assumed full control of the
business in late 2008.
b. Types of work performed by J&A Schell General Contractor include general
contracting and construction work.
c. During the winter months, J&A Schell has also performed snow plowing
services for several property developments in Foster Township.
7. In January 2005, J&A Schell performed snow/ice removal services for the
Township.
a. J&A Schell performed the services without public notice or bidding and
without vote of the Board of Supervisors.
8. From January 7, 2005, to January 9, 2005, a severe ice storm occurred in the
Foster Township area.
a. The ice storm damaged many trees in the Township, causing branches and
limbs to fall onto and along Township roads and on power lines and phone
lines.
9. Jonas Schell made the decision to utilize his private business, J&A Schell
Contractor, to perform storm cleanup work in the Township.
a. At the time that the storm hit, Supervisor Robert Lesko was out of town and
Supervisor Thomas Potoskie was ill and sick at home.
1. Schell did not discuss his decision to perform the work with Potoskie
until after the work was completed.
2. Schell did not contact Lesko until he had already begun the work.
Schell, 09-041
Page 3
b. Schell did not advise Potoskie and Lesko of the rates J&A Schell would be
charging the Township until after the work had been completed.
10. At the time Schell made the decision to utilize J&A Schell to perform storm cleaning
work, the road crew was available to complete the work.
a. Normally, the Township road crew would be utilized to clean up damage to
Township roadways caused by a storm.
1. The road crew had completed storm cleanup work in the past.
2. Some of the Township road crew workers were temporarily laid off
when the ice storm struck the Township.
3. It is customary for the Township road crew to be laid off due to lack of
work during the winter months.
b. Neither the Township nor Schell sought or solicited any bids from other
contractors or businesses prior to J&A Schell performing the work for the
Township.
11. During the same time frame that J&A Schell was performing storm cleaning work for
the Township, road workers were also performing similar work for the Township.
a. Township road crew members’ time sheets show the following hours were
worked from January 10, 2005, to January 13, 2005, by the road crew:
Hours
Date Name Worked Project(s)
1/10/2005 Walter Jones 5.5 Clear Fallen Trees
1/10/2005 Christopher Spock 5.5 Clean Up Fallen Trees
1/10/2005 Michael Searfoss 5.5 Clean Up Fallen Trees
1/10/2005 Merritt Sheaman 5.5 Clean Up Fallen Trees
Salt and Cinder Road
1/11/2005 Walter Jones 8 and Work on F350
1/11/2005 Christopher Spock 4 Salt Township Roads
Salt and Cinder Township Roads
1/11/2005 Michael Searfoss 8 and Repairs to Tools and Machinery
1/11/2005 Merritt Sheaman 4 Salt Township Road
1/12/2005 Walter Jones 4 Salt and Cinder Road
1/12/2005 Christopher Spock 4 Salt Township Roads
1/12/2005 Michael Searfoss 4 Salt and Cinder Township Roads
1/12/2005 Merritt Sheaman 4 Salt Township Road
1/13/2005 Walter Jones 0 None
Clean F550, fix F350,
1/13/2005 Christopher Spock 4 grease Cat Loader
1/13/2005 Michael Searfoss 0 None
1/13/2005 Merritt Sheaman 0 None
b. Only Walter Jones and Michael Searfoss worked a full 8 hour day of work
during the 4 day time period that J&A Schell performed the cleanup work for
the Township.
Schell, 09-041
Page 4
1. Both Jones and Searfoss worked the full 8 hour day on January 11,
2005, which included 4 hours of work on equipment repair.
c. Foster Township road crew members are unionized, and pursuant to a
clause in the union agreement with the Township, road crew members must
be called to do work when it is available.
d. Schell alleges that the road crew members were completing storm cleanup in
another area of the Township, and the amount of the damage was more than
they could handle.
12. Cleanup work was completed by J&A Schell on the following dates:
Date Description of Work Hours
1/10/2005 Cut trees and brush along Township roads 11
1/11/2005 Cut trees and brush along Township roads 12
1/12/2005 Cut trees and brush along Township roads 12
1/13/2005 Cut trees and brush along Township roads 5
Total 40
a. J&A Schell billed Foster Township at the rate of $95.00 per hour for a total
bill of $3,800.00 for the 40 hours of work.
13. J&A Schell used Foster Township equipment including a loader to complete the
cleanup work in the Township.
a. Fuel for the equipment was also furnished by the Township.
b. Supervisors Potoskie and Lesko were not aware that Township equipment
was used by Schell to complete the work.
14. No quotes were solicited by Schell or the Township from other vendors to provide
tree removal services.
a. Section 68102(b) of the Second Class Township Code, 53 P.S. § 68102(b),
requires that written or telephonic price quotations from at least three
qualified and responsible contractors [be] requested for all Township
contracts that exceed four thousand dollars ($4,000).
b. Schell asserts that he did not obtain formal quotes from other vendors
because of the emergency nature of the work.
c. J&A Schell billed the Township $3,800 for cutting the brush and trees, which
was just under the $4,000 threshold requiring quotes from three contractors
as set forth in the Second Class Township Code.
15. On or about January 14, 2005, J&A Schell submitted an invoice totaling $3,800.00
to the Township for the storm cleanup.
a. The invoice was for a total of 40 hours of work at the rate of $95.00 per hour.
16. Foster Township records confirm that J&A Schell was issued check number 4656 in
the amount of $3,800.00 from the Township’s General Fund Account on February
14, 2005.
a. Check number 4656 was signed by Supervisors Jonas Schell and Robert
Schell, 09-041
Page 5
Lesko as authorized Township signatories.
b. On February 16, 2005, check number 4656 was deposited into a PNC Bank
account maintained by J&A Schell.
17. The $3,800.00 payment to J&A Schell for the storm cleanup work was approved at
the February 14, 2005, Board of Supervisors meeting as shown below:
Check Check Action By
Date No. Amount Meeting Date Jonas Schell Recorded Vote
2/14/2005 4656 $3,800.00 2/14/2005 abstain 2 to 0
a. Schell abstained from voting on the approval of Township bills at the
February 14, 2005, meeting.
18. J&A Schell did storm cleanup work at the same time that four Township road crew
workers were available to do the work.
19. The total amount received by J&A Schell for road cleanup work in January
2005 was $3,800.00.
THE FOLLOWING FINDINGS RELATE TO THE ALLEGATION THAT SCHELL USED
HIS PUBLIC POSITION TO AWARD A CONTRACT TO J&A SCHELL TO CONSTRUCT
A TOWNSHIP BUILDING.
20. In 2002, the Foster Township Supervisors began discussions regarding the
construction of a new municipal building.
a. The proposed construction included the building of offices for Township
employees and the construction of a conference room for meetings to be
held.
b. At the time discussions to build a new municipal building began, meetings
were being held in a Township garage that was located on Township
property.
c. The new building was to be built beside the previously existing Township
garage.
d. Jonas Schell was an advocate of building a new municipal building in Foster
Township.
21. On August 16, 2002, the Foster Township Supervisors held a Special Meeting to
act on plans for construction of a municipal building.
a. Meeting minutes from the August 16, 2002, Special Meeting contain the
following:
“Mr. Schell made the motion to advertise for bids for the Municipal Building
Renovation Project. Mr. Potoskie seconded the motion.
Roll Call: Mr. Potoskie – Yes; Mr. Lesko – Yes; Mr. Schell – Yes”
22. On September 16, 2002, the Foster Township Supervisors held a Special Meeting
to open bids that were received for the municipal building project.
Schell, 09-041
Page 6
a. Meeting minutes from the September 16, 2002, Special Meeting contain the
following:
“Opening of bids for the addition and renovation of the Municipal Building.
Bids were opened for General Construction:
Power Builders $175,000.00
Bognet, Inc. $211,200.00
Apollo Group, Inc. $219,000.00
G.C. Wall, Inc. $179,000.00
Electrical Construction:
Hayden, Inc. $24,220.00
Mechanical Construction:
Bognet, Inc. $48,700.00
Mr. Potoskie made the motion to table the bids until October 16, 2002 at
which time the board will make their decision. Mr. Schell seconded the
motion.
Roll Call: Mr. Potoskie – Yes; Mr. Schell – Yes; Mr. Lesko – Yes”
23. At the October 16, 2002, Foster Township Supervisors Special Meeting, the Board
decided to reject all of the bids for the municipal building project.
a. Meeting minutes from the October 16, 2002, Special Meeting contain the
following:
“Mr. Lesko stated that after careful review of the bids for the different work
disciplines the Board of Supervisors decided that they are quite high so he
entertained a motion to reject all of the bids and take no further action. Mr.
Schell made the motion to reject all the bids. Mr. Lesko seconded the
motion.
Roll Call: Mr. Schell – Yes; Mr. Lesko – Yes”
24. A special meeting was held on July 18, 2003, for the approval of the municipal
building project and for the authorization to advertise for bids for the project.
a. Meeting minutes from the July 18, 2003, meeting confirm that the project was
approved with the Board of Supervisors serving as general contractor and
Schell serving as project manager as noted below:
“Mr. Lesko stated the first order of business is the authorization of
construction of the Township building. Mr. Lesko made the motion to
approve the construction of the new Foster Township municipal building, the
Foster Township Supervisors are to serve as general contractors for the
project, Township Supervisor Jonas Schell will serve as the project manager
and where necessary bids will be solicited for various phases of the project.
Mr. Schell seconded the motion.
Roll call: Mr. Lesko –Yes; Mr. Schell –Yes.”
b. Schell was appointed as project manager for the municipal building project,
tasking him with the responsibility to solicit bids when necessary for the
project.
Schell, 09-041
Page 7
25. As project manager, Schell solicited quotes for various aspects of the project.
26. Quotes were presented by Schell to the Board for the framing of the building and for
the shingling of the roof at the July 18, 2003, special meeting. The meeting minutes
contain the following:
a. “Mr. Schell stated he had three quotes for the framing of the building:
Dennison Development - $9,670.00
Bulls Eye Construction - $9,925.00
Eagle Construction - $9,850.00
Mr. Schell made the motion to award the bid for the framing of the building to
Dennison Development in the amount of $9,670.00. Mr. Lesko seconded the
motion.
Roll call Mr. Lesko – Yes; Mr. Schell – Yes.”
b. “Mr. Schell stated he had three quotes for the shingling of the roof:
Dennison Development - $4,250.00
Eagle Construction - $4,685.00
Bull Eyes Construction - $4,565.00.
Mr. Lesko made the motion to award the bid for the shingling of the roof to
Dennison Development in the amount of $4,250.00. Mr. Schell seconded
the motion.
Roll call: Mr. Lesko –Yes; Mr. Schell – Yes.”
c. The bids presented to the Board by Schell were [submitted] in response to a
notice printed in the Hazleton Standard Speaker, a local newspaper.
27. Further action was taken at the July 18, 2003, special meeting by the Board to
solicit bids for materials for the project. Meeting minutes contain the following:
“Mr. Schell stated the Township is supplying the materials and will advertise
for quotes on the various lumber and materials needed in the construction of
the building. Mr. Schell made the motion to advertise for quotes for the
building materials for the construction of the new Foster Township municipal
building. Mr. Lesko seconded the motion.
Roll call: Mr. Lesko – Yes; Mr. Schell – Yes.”
a. Following a brief discussion, the decision was made for Township Solicitor
Albert Maier to prepare a stipulation [against] liens document listing the
Township as contractor. Meeting minutes contain the following:
“Attorney Maier stated he would prepare, file, and record a stipulation
against liens. Mr. Schell made the motion for attorney Maier to prepare, file,
and record a stipulation against liens. Mr. Lesko seconded the motion.
Roll call: Mr. Lesko – Yes; Mr. Schell – Yes.”
28. The bid for the material for the municipal building project was awarded to Shelly
Enterprises, Inc. of Perkasie, Pennsylvania, at the August 8, 2003, Supervisors
Schell, 09-041
Page 8
meeting.
a. Meeting minutes from the August 8, 2003, meeting contain the following:
“Opening of bids and awarding the material contracts for the municipal
building project - Bids were open and read.
Murphy Lumber - $30,298.37
Shelly Enterprise - $28,612.68
Mr. Schell made the motion to award the material contract to Shelly
Enterprise for $28,612.68. Mr. Lesko seconded the motion.
Roll call: Mr. Lesko – Yes; Mr. Schell – Yes.”
29. A stipulation [against] liens contract between owner Foster Township and contractor
Foster Township dated July 18, 2003, shows that on the same date Foster
Township entered into an agreement with Foster Township to provide materials and
perform labor necessary for the construction of a new 40’ x 60’ municipal building.
a. The document was signed on July 18, 2003, by Robert Lesko, Chairman of
the Board of Supervisors, as both owner and contractor.
30. A Foster Township building permit for the new municipal building was approved by
the Foster Township Code Enforcement Officer on July 18, 2003.
a. Schell signed the application as owner on July 18, 2003.
31. A Foster Township zoning application for the purpose of building a 40’ x 60’
municipal building with dimensions of 60’ x 40’ x 18’ was approved by the Foster
Township Zoning Officer on July 19, 2003.
a. The application was signed by Jonas Schell on July 18, 2003, as owner.
32. No other actions regarding the construction of a municipal building were taken by
the Board until or about March 2005, when Schell solicited quotes for interior
aspects of the project and other finish work.
33. In or about March 2005, Schell, acting as project manager, solicited local
contractors to provide estimates for various aspects of the Township building
construction.
a. The solicitations were not formally advertised.
b. Schell contacted owners of local contracting companies to inform them that
the Township was seeking estimates for work on the Township building.
1. The contractors would later meet Schell at the Township building, and
Schell would then outline the various stages of the projects and the
specifications to the company representatives.
34. In March 2005, Foster Township received the following estimates for work related to
the municipal building:
Date Amount Company Description
Dennison Labor only to install drop ceilings throughout
3/7/2005 $6,689.00 Development the building
Schell, 09-041
Page 9
Clause Labor to install drop ceilings throughout the
3/14/2005 $7,000.00 Construction building
Dennison 8' x 14' rear PT deck, stairs, and roof, labor
3/7/2005 $4,032.00 Development only
Clause
3/14/2005 $4,200.00 Construction 8' x 14' rear deck, stairs, and roof, labor only
Dennison Labor only to install all interior doors and trim,
3/7/2005 $7,762.00 Development window trim, and chair rail
Clause Labor to install all interior doors and trim,
3/14/2005 $7,900.00 Construction window trim, and chair rail
Dennison Labor only to construct a 6' x 6' PT deck and
3/7/2005 $1,890.00 Development stairs on side of building
Clause Labor to construct pressure treated 6' x 6' deck
3/14/2005 $2,000.00 Construction and stairs - side deck
Dennison Front porch columns and railings and handicap
3/7/2005 $8,678.00 Development ramp to front porch and side door, labor only
Clause Front porch columns and railings and handicap
3/14/2005 $8,920.00 Construction ramp to front porch and side door, labor only
R.A. Bachman Sub Floor: 46 shts 4x8 1/4" plywood, labor to
4/28/2005 $1,495.54 Sales install, 2 bgs misc materials and floor leveling
Joe Farko Sub Floor: 47 4'x'8' plywood 1/4", labor and
5/2/2005 $1,555.00 Flooring misc exp
a. No [estimates/quotes] from J&A Schell were found on file with Foster
Township for work on the municipal building.
b. Schell asserts that J&A Schell did in fact submit quotes for work on the
municipal building about the first week of March 2005 and that these quotes
were filed at the Township building in 2005.
35. Schell presented the estimates to the other Members of the Board of Supervisors
for review and discussion.
a. The estimates were not presented or discussed at public meetings.
b. Schell explained the scope of the estimates to the other two Supervisors and
offered his recommendation as to which contractor should complete each
subcontracted job.
1. This included recommending that his company, J&A Schell, be
utilized.
i. Schell asserts that the Supervisors chose J&A Schell to complete the
work because J&A Schell had the lowest estimates.
36. Schell also presented prices to the Board that J&A Schell would charge to complete
various phases of the project.
a. Although no written estimates were on file with the Township, Schell asserts
that he submitted written estimates to the Township for the work in March
2005.
Schell, 09-041
Page 10
b. If J&A Schell’s quote for a portion of the project was lower than a competing
contractor, the Board agreed to authorize J&A Schell to complete that
portion.
37. No official actions were taken at public meetings to authorize J&A Schell to perform
work on the municipal building.
a. All discussions and decisions to utilize J&A Schell occurred outside public
meetings.
38. The following chart compares bids received by Foster Township for municipal
building work with the amounts that were invoiced by J&A Schell:
J&A
Schell Description
Bid Date Bid Amount Contractor Invoice Date Amount of Work
Dennison
3/7/2005 $1,890.00 Development 4/05 $1,600.00 Side deck
Clause
3/14/2005 $2,000.00 Construction
Dennison
3/7/2005 $4,032.00 Development 5/3/2005 $3,900.00 Rear deck
Clause
3/14/2005 $4,200.00 Construction
R.A. Bachman
4/28/2005 $1,495.54 Sales 5/30/2005 $1,100.00 Sub floor
Joe Farko
5/2/2005 $1,555.00 Flooring
Dennison
3/7/2005 $7,762.00 Development 8/5/2005 $6,800.00 Interior work
Clause
3/14/2005 $7,900.00 Construction
Dennison Handicap ramp,
3/7/2005 $8,678.00 Development 11/9/2005 $8,400.00 railing, porch posts
Clause
3/14/2005 $8,920.00 Construction
a. Although J&A Schell charges, as outlined above, were a total of $2,057.00
less than the lowest bidder’s charges, Schell had solicited the quotes/bids
submitted by other contractors and had access to such quotes/bids prior to
him advising the Board that his company could do the work for less.
1. Schell and the other Supervisors reviewed the submitted quotes.
39. J&A Schell began submitting invoices to Foster Township for work on the municipal
building in February 2005, prior to the time that he asserts he filed quotes/bids with
the Township.
a. J&A Schell invoiced Foster Township a total of $30,500.00, between
February 2005 and November 2005, for work completed on the Foster
Township municipal building as shown below:
Date Invoice Amount Description
2/27/2005 $2,400.00 26' chimney and concrete work
April 2005 $7,500.00 wall angles, ceiling tiles, deck stairs and railings side of
Schell, 09-041
Page 11
bldg
5/3/2005 $4,300.00 back deck, kitchen cabinet, countertop
5/30/2005 $1,100.00 1920 sq. ft. subfloor
8/5/2005 $6,800.00 interior work
11/9/2005 $8,400.00 handicap ramp - railing - porch posts
40. No bids from any contractors are on file with Foster Township for the following work
that was performed by J&A Schell:
Date Invoice Amount Description
2/27/2005 $2,400.00 26' chimney and concrete work
5/3/2005 $400.00 Kitchen work
a. J&A Schell invoiced Foster Township $2,800.00 for services for which no
estimates were solicited.
41. All materials for work completed by J&A Schell on the municipal building were
furnished by Foster Township.
a. Invoices submitted by J&A Schell were for labor only.
b. Foster Township also purchased tools that were used by J&A Schell for work
in the municipal building.
42. Foster Township Supervisors meeting minutes do not contain any official votes to
authorize J&A Schell to complete any work on the Foster Township municipal
building.
43. J&A Schell Contractors [was] compensated a total of $30,500.00 for invoices
submitted in relation to municipal building work with the following checks:
Check Date Check No. Amount Signed
3/14/2005 4715 $2,400.00 Schell, Potoskie
4/11/2005 4757 $7,500.00 Schell, Potoskie
5/9/2005 4799 $4,300.00 Lesko, Potoskie
6/13/2005 4849 $1,100.00 Schell, Potoskie
8/8/2005 4924 $6,800.00 Schell, Lesko
11/14/2005 5061 $8,400.00 Schell, Lesko
a. Schell signed 5 of 6 checks that were issued to J&A Schell for work on the
municipal building.
44. Schell voted to approve 5 of 6 payments totaling $26,200.00 to J&A Schell
Contractors for work on the Foster Township municipal building as shown below:
Check Date Check No. Amount Meeting Date Action Recorded Vote
3/14/2005 4715 $ 2,400.00 3/14/2005 motion, vote 2 to 0
4/11/2005 4757 $ 7,500.00 4/11/2005 motion, vote 3 to 0
5/9/2005 4799 $ 4,300.00 5/9/2005 absent 2 to 0
6/13/2005 4849 $ 1,100.00 6/13/2005 motion, vote 3 to 0
8/8/2005 4924 $ 6,800.00 8/8/2005 motion, vote 2 to 0
11/14/2005 5061 $ 8,400.00 11/14/2005 motion, vote 3 to 0
Schell, 09-041
Page 12
45. J&A Schell Contractor filed a Federal Income Tax Return for calendar year 2005.
a. J&A Schell reported total income of $67,865.00, which reflected [its] gross
receipts or sales minus the cost of goods sold.
b. J&A Schell reported deductions of $36,785.00, for a total ordinary business
income of $31,080.00.
c. J&A Schell realized a profit percentage of 45.8% from total income reported
for 2005, calculated as follows:
Total income: $ 67,865.00
Ordinary business income: $ 31,080.00
Profit percentage: 45.8%
46. For the storm cleanup and the construction on the Foster Township Building, J&A
Schell received a profit of $15,709.40.
47. Jonas Schell and/or J&A Schell Contractor, a business with which Jonas Schell is
associated, realized a private pecuniary gain of at least $15,709.40 when Schell
participated in approving contracts in excess of $500.00 between Foster Township
and J&A Schell which were not awarded through an open and public process, and
when Jonas Schell used the authority of his public position as Foster Township
Supervisor to approve payments to J&A Schell Contractor for work done on the
Township building.
THE FOLLOWING FINDINGS RELATE TO THE ALLEGATIONS THAT SCHELL FAILED
TO DISCLOSE ON STATEMENTS OF FINANCIAL INTERESTS FOR THE 2005, 2006,
2007, AND 2008 CALENDAR YEARS ALL DIRECT AND/OR INDIRECT SOURCES OF
INCOME, FINANCIAL INTERESTS IN ANY LEGAL ENTITY ENGAGED IN BUSINESS
FOR PROFIT, AND ANY OFFICE, DIRECTORSHIP, OR EMPLOYMENT OF ANY
NATURE WHATSOEVER IN ANY BUSINESS ENTITY.
48. As a Supervisor for Foster Township, Jonas Schell was annually required to file a
Statement of Financial Interests form by the May 1 deadline containing information
for the prior calendar year.
49. A Statement of Financial Interests compliance review conducted by the
Investigative Division of the State Ethics Commission on October 6, 2009, revealed
the following filings by Schell:
a. Calendar Year: 2004
Filed: 3/8/05 on SEC form 01/05
Position: Supervisor
Occupation or Profession: Self-employed contractor
Creditors: None
Direct/Indirect Income: Foster Township
Office, directorship or employment in any business: None
All Other financial interests: None
b. Calendar Year: 2005
Filed: 01/17 on SEC form 01/05
Position: Supervisor
Creditors: None
Direct/indirect sources of income: None
Office, directorship or employment in any business: None
Schell, 09-041
Page 13
All other financial interests: None
c. Calendar year: 2006
Filed: 3/15/07 on SEC form 01/06
Position: Supervisor
Creditors: None
Office, directorship or employment in any business: None
All other financial interests: None
d. Calendar Year: 2007
Filed: 1/10/08 on SEC form 01/08
Position: Supervisor
Creditors None
Direct/indirect Income: J&A Schell Contracting
Office, directorship or employment in any business: None
All other financial interests: None
e. Calendar Year: 2008
Filed: 3/10/09 on SEC form 01/09
Position: Supervisor
Creditors: None
Direct/indirect sources of income: None
Office, directorship or employment in any business: None
All other financial interests: None
50. Schell failed to list all sources of direct or indirect income on his Statement of
Financial Interests forms for calendar years 2005, 2006, 2007, and 2008.
a. Schell did not list income received from Foster Township and from J&A
Schell Contractors on his 2005 calendar year form.
1. Schell’s tax return documents show that he received $15,540.00 in
income from J&A Schell and $6,360.00 in income from Foster
Township in 2005.
b. Schell did not list income received from Foster Township and from J&A
Schell Contractors on his 2006 calendar year form.
1. Schell’s tax return documents show that he received $13,113.00 in
income from J&A Schell and $1,500.00 in income from Foster
Township in 2006.
c. Schell did not list income received from Foster Township on his 2007
calendar year form.
1. Schell’s tax return documents show that he received $1,500.00 in
income from Foster Township in 2007.
d. Schell did not list income received from Foster Township and from J&A
Schell Contractors on his 2008 calendar year form.
1. Schell’s tax return documents show that he received $22,825.00 in
income from J&A Schell and $4,989.12 in income from Foster
Township in 2008.
51. Schell did not list his office, directorship, or employment in J&A Schell Contractors
and his financial interest in any legal entity engaged in business for profit in J&A
Schell, 09-041
Page 14
Schell Contractors on his 2005, 2006, 2007, and 2008 calendar year forms.
a. Schell’s tax return documents from each calendar year show that Schell
received income from J&A Schell Contractors during each calendar year.
b. Schell’s tax return documents further confirm that Schell was a 50% partner
in J&A Schell Contractors throughout each calendar year, from 2005 through
2008.
III.DISCUSSION:
As a Supervisor of Foster Township (“Township”), Luzerne County, from or about
1998 until October 13, 2008, Respondent Jonas Schell, hereinafter also referred to as
“Respondent,” “Respondent Schell,” and “Schell,” was a public official subject to the
provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1101
et seq.
The allegations are that Schell violated Sections 1103(a), 1103(f) and 1105(b) of
the Ethics Act: (1) when he used the authority of his public position for private pecuniary
benefit, including but not limited to participating in discussions and actions of the
Township Board of Supervisors (“Board”) to award contracts to him and/or his private
business, J .A. Schell Contractor; (2) when he participated in approving payments to J.A.
Schell Contractor; (3) when contracts were entered into between the Township and J.A.
Schell Contractor in excess of $500.00 without an open and public process; and (4) when
he failed to disclose on Statements of Financial Interests (“SFIs”) for the 2005, 2006, 2007
and 2008 calendar years all direct and/or indirect sources of income, financial interests in
any legal entity engaged in business for profit, and any office, directorship, or employment
of any nature whatsoever in any business entity.
Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a)Conflict of interest.—
No public official or public
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest."
Use 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. The term does not include an action
having a de minimis economic impact or which affects to the
same degree a class consisting of the general public or a
subclass consisting of an industry, occupation or other group
which includes the public official or public employee, a
member of his immediate family or a business with which he or
a member of his immediate family is associated.
Schell, 09-041
Page 15
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official/public employee from
using the authority of public office/employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official/public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting:
§ 1103. Restricted activities
(f)Contract.—
No public official or public employee or
his spouse or child or any business in which the person or his
spouse or child is associated shall enter into any contract
valued at $500 or more with the governmental body with which
the public official or public employee is associated or any
subcontract valued at $500 or more with any person who has
been awarded a contract with the governmental body with
which the public official or public employee is associated,
unless the contract has been awarded through an open and
public process, including prior public notice and subsequent
public disclosure of all proposals considered and contracts
awarded. In such a case, the public official or public employee
shall not have any supervisory or overall responsibility for the
implementation or administration of the contract. Any contract
or subcontract made in violation of this subsection shall be
voidable by a court of competent jurisdiction if the suit is
commenced within 90 days of the making of the contract or
subcontract.
65 Pa.C.S. § 1103(f).
Section 1103(f) of the Ethics Act provides in part that no public official/public
employee or his spouse or child or business with which the public official/public employee
or his spouse or child is associated may enter into a contract with his governmental body
valued at five hundred dollars or more or any subcontract valued at five hundred dollars or
more with any person who has been awarded a contract with the governmental body with
which the public official/public employee is associated unless the contract is awarded
through an open and public process including prior public notice and subsequent public
disclosure of all proposals considered and contracts awarded.
Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the SFI form must provide.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address
of any direct or indirect source of income totaling in the aggregate $1,300 or more.
Section 1105(b)(8) of the Ethics Act requires the filer to disclose on the SFI any
office, directorship or employment in any business entity.
Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any
financial interest in any legal entity engaged in business for profit. The term “financial
interest” is defined in the Ethics Act as “[a]ny financial interest in a legal entity engaged in
Schell, 09-041
Page 16
business for profit which comprises more than 5% of the equity of the business or more
than 5% of the assets of the economic interest in indebtedness.” 65 Pa.C.S. § 1102.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Respondent Schell served as a Township Supervisor from or about 1998 until
October 13, 2008.
The Board consists of three Supervisors. Signature authority over Township
accounts is held by all three Supervisors. Checks require the signature of two
Supervisors.
During the time period from 2005 through late 2008, Respondent was a 50% partner
with his brother in a general contracting/construction business named “J&A Schell General
Contractor” (also referred to herein as “J&A,” “J&A Schell,” and “J.A. Schell Contractor”).
From January 7, 2005, to January 9, 2005, a severe ice storm occurred in the
Township area. From January 10, 2005, to January 13, 2005, J&A performed 40 hours of
storm cleanup work for the Township without public notice or bidding and without vote of
the Board. Respondent made the decision to utilize J&A to perform storm cleanup work in
the Township. J&A performed the storm cleanup work at the same time that Township
road crew workers were available to do the work.
At the time that the storm hit, Supervisor Robert Lesko was out of town and
Supervisor Thomas Potoskie was ill. Respondent did not contact Supervisor Lesko until
he had already begun the work. Respondent did not discuss his decision to perform the
work with Supervisor Potoskie until after the work was completed. Respondent did not
advise either of the other Supervisors of the rates J&A would be charging the Township
until after the work had been completed.
J&A used Township equipment and Township fuel to complete the cleanup work.
Supervisors Potoskie and Lesko were not aware that Township equipment was used by
Respondent/J&A to complete the work.
No quotes were solicited by Respondent or the Township from other vendors to
provide the aforesaid services. Respondent asserts that he did not obtain formal quotes
from other vendors because of the emergency nature of the work.
On or about January 14, 2005, J&A submitted an invoice to the Township in the
total amount of $3,800.00 for 40 hours of storm cleanup work at the rate of $95.00 per
hour. J&A’s charges were just under the $4,000 threshold provided by the Second Class
Township Code for requiring quotes from three contractors. (See, 53 P.S. § 68102(b)).
On February 14, 2005, Township check number 4656 was issued to J&A in the
amount of $3,800.00. Respondent signed check number 4656 as one of two authorized
Township signatories. Respondent abstained from the Board’s vote to approve the
payment to J&A for the storm cleanup work. On February 16, 2005, check number 4656
was deposited into a J&A bank account.
The following facts pertain to the Township’s construction of a new municipal
building.
In 2003--prior to the time period that is under review in this case (see, 65 Pa.C.S. §
1108(m))--Respondent participated in Board action to approve the construction of a new
Township municipal building with the Township Supervisors serving as general
Schell, 09-041
Page 17
contractors, Respondent serving as the project manager, and bids being solicited for
various phases of the project when necessary. As project manager for the municipal
building project, Respondent had the responsibility to solicit bids when necessary for the
project. In 2003 Respondent signed zoning and building permit applications for the
project, solicited quotes for various aspects of the project, and participated in Board action
relating to the project, including action to award certain bids.
During the time period that is under review in this case, Respondent, acting as
project manager, contacted local contractors in or about March 2005 to solicit estimates for
various aspects of the Township municipal building construction. The solicitations were not
formally advertised. Respondent met with the contractors and outlined the various stages
of the project and the specifications.
In March 2005, the Township received estimates for work related to the municipal
building as detailed in Fact Finding 34. Respondent presented the estimates to the other
Supervisors for review and discussion. The estimates were not presented or discussed at
public meetings. Respondent explained the scope of the estimates to the other two
Supervisors and offered his recommendation as to which contractor should complete each
subcontracted job. This included recommending that J&A be utilized. Respondent
presented to the Board the prices that J&A would charge to complete various phases of
the project. Although no written estimates from J&A were on file with the Township,
Respondent asserts that he submitted written estimates to the Township for the work in
March 2005. If J&A’s quote for a portion of the project was lower than that of a competing
contractor, the Board agreed to authorize J&A to complete that portion.
No official actions were taken at public meetings to authorize J&A to perform any
work on the municipal building. All discussions and decisions to utilize J&A occurred
outside public meetings.
As outlined at Fact Finding 38, J&A’s charges for certain work were a total of
$2,057.00 less than the lowest bids of other contractors. However, Respondent had
solicited and had access to the other contractors’ quotes/bids prior to advising the Board
that J&A could do the work for less.
J&A began submitting invoices to the Township for work on the municipal building in
February 2005, which was prior to the time Respondent asserts he filed quotes/bids with
the Township.
Between February 2005 and November 2005, J&A invoiced the Township a total of
$30,500.00 for work completed on the Township municipal building as shown in Fact
Finding 39a. Of that amount, $2,800.00 was for services for which no estimates were
solicited.
J&A’s invoices for work on the municipal building were for labor only. The Township
furnished all materials for work completed by J&A on the municipal building. The
Township also purchased tools that were used by J&A for work on the municipal building.
From March 14, 2005, to November 14, 2005, the Township issued six checks to
J&A totaling $30,500.00 in payment of the invoices submitted by J&A for work on the
Township municipal building. As a Township Supervisor and authorized Township
signatory, Respondent signed and voted to approve five of the aforesaid checks totaling
$26,200.
The parties have stipulated that J&A received a profit of $15,709.40 for the storm
cleanup and the construction on the Township municipal building. The parties have further
stipulated that Respondent and/or J&A, a business with which Respondent is associated,
realized a private pecuniary gain of at least $15,709.40 when Respondent participated in
Schell, 09-041
Page 18
approving contracts in excess of $500.00 between the Township and J&A, which were not
awarded through an open and public process, and when Respondent used the authority of
his public position as a Township Supervisor to approve payments to J&A for work done on
the Township municipal building.
As for Respondent’s SFIs, Respondent failed to list all direct or indirect sources of
income on his SFIs for calendar years 2005, 2006, 2007, and 2008.
Respondent did not disclose on his SFI for calendar year 2005 that he had received
income from the Township and from J&A, despite the fact that Respondent’s tax return
documents show that he received $15,540.00 in income from J&A and $6,360.00 in income
from the Township in 2005.
Respondent did not disclose on his SFI for calendar year 2006 that he had received
income from the Township and from J&A, despite the fact that Respondent’s tax return
documents show that he received $13,113.00 in income from J&A and $1,500.00 in income
from the Township in 2006.
Respondent did not disclose on his SFI for calendar year 2007 that he had received
income from the Township, despite the fact that Respondent’s tax return documents show
that he received $1,500.00 in income from the Township in 2007.
Respondent did not disclose on his SFI for calendar year 2008 that he had received
income from the Township and from J&A, despite the fact that Respondent’s tax return
documents show that he received $22,825.00 in income from J&A and $4,989.12 in income
from the Township in 2008.
Respondent did not list his office, directorship, or employment in J&A and his
financial interest in J&A on his SFIs for calendar years 2005, 2006, 2007, and 2008.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1103(a), occurred when Schell participated in
the award of contracts to J.A. Schell Contractor,
a business with which Schell is associated.
b. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1103(a), occurred in relation to Schell’s
approving of payments to J.A. Schell Contractor,
a business with which he is associated.
c. That a violation of Section 1103(f) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1103(f), occurred when Schell entered into
contracts between the Township and J.A. Schell
Contractor, a business with which he is
associated, in excess of $500.00 without an
Schell, 09-041
Page 19
open and public process.
d. That a violation of Section 1105(b) of the Public
Official and Employee Ethics Act, 65 Pa.C.S.
§1105(b), occurred when Schell failed to
disclose all direct and/or indirect sources of
income; his office, directorship or employment in
J.A. Schell Contractor; and his financial interests
in J.A. Schell Contractor on his Statements of
Financial Interests filed for the 2005, 2006,
2007, and 2008 calendar years.
4. Schell agrees to make payment in the amount of $4,100.00 in
settlement of this matter payable to Foster Township and
forwarded to the Pennsylvania State Ethics Commission within
thirty (30) days of the issuance of the final adjudication in this
matter.
5. Schell agrees to not accept any reimbursement, compensation
or other payment from Foster Township representing a full or
partial reimbursement of the amount paid in settlement of this
matter.
6. Schell agrees to file amended Statements of Financial
Interests for calendar years 2005, 2006, 2007 and 2008
including all direct and/or indirect sources of income, financial
interests in any legal entity engaged in business for profit, and
any office directorship or employment or [sic] any nature
whatsoever in any business entity with Foster Township within
thirty (30) days of the issuance of the final adjudication in this
matter. Copies of said forms shall be forwarded to the State
Ethics Commission for compliance verification purposes.
7. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. Such, however, does
not prohibit the Commission from initiating appropriate
enforcement actions in the event of Respondent's failure to
comply with this agreement or the Commission's order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement, at 1-2.
In considering the Consent Agreement, we agree with the parties that a violation of
Section 1103(a) of the Ethics Act occurred when Respondent participated in the award of
contracts to J&A.
Respondent used the authority of his public office as a Township Supervisor when
he made the decision to utilize J&A to perform 40 hours of storm cleanup work in the
Township from January 10, 2005, to January 13, 2005. Respondent did not contact
Supervisor Lesko until he had already begun the work. Respondent did not discuss his
decision to perform the work with Supervisor Potoskie until after the work was completed.
Without the knowledge of the other two Supervisors, J&A used Township equipment and
Township fuel to complete the cleanup work. J&A received $3,800.00 for the 2005 storm
cleanup work.
Schell, 09-041
Page 20
With regard to the Township municipal building project, in 2005, Respondent used
the authority of his public position as the Township Supervisor designated project manager
when he: contacted local contractors to solicit estimates for various aspects of the project,
presented those estimates to the other Supervisors outside the scope of a public meeting,
and--during the course of such non-public discussions and review--recommended J&A for
various aspects of the work. Having had access to the other contractors’ estimates
through his official position, Respondent provided lower prices for J&A to do the work. If
J&A’s quote for a portion of the project was lower than that of a competing contractor, the
Board agreed to authorize J&A to complete that portion. J&A received $30,500.00 for work
on the Township municipal building in 2005.
J&A is a business with which Respondent is associated as a 50% partner. The
parties have stipulated that J&A received a profit of $15,709.40 for the 2005 storm cleanup
work and work on the Township municipal building.
With each element of a violation of Section 1103(a) established, we hold that that a
violation of Section 1103(a) of the Ethics Act occurred when Respondent participated in
the award of contracts to J&A, a business with which Respondent is associated.
In addition, the Stipulated Findings establish that a violation of Section 1103(a) of
the Ethics Act occurred in relation to Respondent’s approving of payments to J&A.
Respondent signed as one of two authorized Township signatories the Township
check paying J&A for the 2005 storm cleanup work. Respondent signed as an authorized
Township signatory and voted to approve five Township checks totaling $26,200 out of a
total of six Township checks totaling $30,500.00 issued in payment of the invoices
submitted by J&A for work on the Township municipal building.
We hold that a violation of Section 1103(a) of the Ethics Act occurred in relation to
Respondent’s approving of Township payments to J&A, a business with which he is
associated.
As for the allegation pertaining to Section 1103(f) of the Ethics Act, the parties have
stipulated that Respondent participated in approving contracts in excess of $500.00
between the Township and J&A, which contracts were not awarded through an open and
public process.
The contract between the Township and J&A for the 2005 storm cleanup work was
valued at $3,800.00. The contract was not awarded through an open and public process
as required by Section 1103(f) of the Ethics Act. Respondent entered into the contract
without the knowledge or approval of the other Supervisors. The contract was not
awarded at any public meeting. The work was performed from January 10, 2005, to
January 13, 2005, and J&A’s invoice for the work was submitted to the Township on or
about January 14, 2005.
The contract between the Township and J&A for the 2005 work on the Township
municipal building was valued at $30,500.00. Outside the scope of a public meeting,
Respondent presented to and discussed with the other Supervisors the estimates that had
been received from other contractors and recommended J&A for various aspects of the
work. Having had access to the other contractors’ estimates through his official position,
Respondent provided lower prices for J&A to do the work. If J&A’s quote for a portion of
the project was lower than that of a competing contractor, the Board agreed to authorize
J&A to complete that portion. No official actions were taken at public meetings to
authorize J&A to perform any work on the municipal building. All discussions and
decisions to utilize J&A occurred outside public meetings.
Schell, 09-041
Page 21
We hold that a violation of Section 1103(f) of the Ethics Act occurred when
Respondent entered into contracts in excess of $500.00 between the Township and J&A, a
business with which he is associated, without an open and public process.
As for the allegations involving Respondent’s SFIs, we hold that a violation of
Section 1105(b) of the Ethics Act occurred when Respondent failed to disclose: all direct
and/or indirect sources of income; his office, directorship or employment in J&A; and his
financial interest(s) in J&A, on his SFIs filed for the 2005, 2006, 2007, and 2008 calendar
years.
As part of the Consent Agreement, Respondent has agreed to make payment in the
amount of $4,100.00 in settlement of this matter payable to Foster Township and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
Respondent has further agreed to not accept any reimbursement, compensation or
other payment from the Township representing a full or partial reimbursement of the
amount paid in settlement of this matter.
Respondent has agreed to file with the Township, within thirty (30) days of the
issuance of the final adjudication in this matter, amended SFIs for calendar years 2005,
2006, 2007 and 2008 including all direct and/or indirect sources of income, financial
interests in any legal entity engaged in business for profit, and any office, directorship, or
employment of any nature whatsoever in any business entity. Copies of said forms shall
be forwarded to this Commission for compliance verification purposes.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Respondent is directed to
make payment in the amount of $4,100.00 payable to Foster Township and forwarded to
th
this Commission by no later than the thirtieth (30) day after the mailing date of this
adjudication and Order.
Per the Consent Agreement of the parties, Respondent is further directed to not
accept any reimbursement, compensation or other payment from the Township
representing a full or partial reimbursement of the amount paid in settlement of this matter.
To the extent he has not already done so, Respondent is directed to file with the
th
Township, by no later than the thirtieth (30) day after the mailing date of this adjudication
and Order, amended SFIs for calendar years 2005, 2006, 2007 and 2008 including all
direct and/or indirect sources of income, financial interests in any legal entity engaged in
business for profit, and any office, directorship, or employment of any nature whatsoever in
any business entity, and to forward copies of all such filings to this Commission for
compliance verification purposes.
Compliance with the foregoing will result in the closing of this case with no further
action by this Commission. Noncompliance will result in the institution of an order
enforcement action.
IV.CONCLUSIONS OF LAW:
1. As a Supervisor of Foster Township (“Township”), Luzerne County, from or about
1998 until October 13, 2008, Respondent Jonas Schell (“Schell”) was a public
official subject to the provisions of the Public Official and Employee Ethics Act
(“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
Schell, 09-041
Page 22
2. Schell violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), when he
participated in the award of contracts to J&A Schell General Contractor, a business
with which Schell is associated.
3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Schell’s approving of Township payments to J&A Schell General
Contractor, a business with which he is associated.
4. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when
Schell entered into contracts in excess of $500.00 between the Township and J&A
Schell General Contractor, a business with which he is associated, without an open
and public process.
5. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred
when Schell failed to disclose: all direct and/or indirect sources of income; his
office, directorship or employment in J&A Schell General Contractor; and his
financial interest(s) in J&A Schell General Contractor, on his Statements of
Financial Interests filed for the 2005, 2006, 2007, and 2008 calendar years.
In Re: Jonas Schell, : File Docket: 09-041
Respondent : Date Decided: 6/23/11
: Date Mailed: 7/6/11
ORDER NO. 1584
1. As a Supervisor of Foster Township (“Township”), Luzerne County, Jonas Schell
(“Schell”) violated Section 1103(a) of the Public Official and Employee Ethics Act
(“Ethics Act”), 65 Pa.C.S. § 1103(a), when he participated in the award of contracts
to J&A Schell General Contractor, a business with which Schell is associated.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Schell’s approving of Township payments to J&A Schell General
Contractor, a business with which he is associated.
3. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when
Schell entered into contracts in excess of $500.00 between the Township and J&A
Schell General Contractor, a business with which he is associated, without an open
and public process.
4. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred
when Schell failed to disclose: all direct and/or indirect sources of income; his
office, directorship or employment in J&A Schell General Contractor; and his
financial interest(s) in J&A Schell General Contractor, on his Statements of
Financial Interests filed for the 2005, 2006, 2007, and 2008 calendar years.
5. Per the Consent Agreement of the parties, Schell is directed to make payment in
the amount of $4,100.00 payable to Foster Township and forwarded to the
th
Pennsylvania State Ethics Commission by no later than the thirtieth (30) day after
the mailing date of this Order.
6. Per the Consent Agreement of the parties, Schell is further directed to not accept
any reimbursement, compensation or other payment from the Township
representing a full or partial reimbursement of the amount paid in settlement of this
matter.
7. To the extent he has not already done so, Schell is directed to file with the
th
Township, by no later than the thirtieth (30) day after the mailing date of this
Order, amended Statements of Financial Interests for calendar years 2005, 2006,
2007 and 2008 including all direct and/or indirect sources of income, financial
interests in any legal entity engaged in business for profit, and any office,
directorship, or employment of any nature whatsoever in any business entity, and to
forward copies of all such filings to the Pennsylvania State Ethics Commission for
compliance verification purposes.
8. Compliance with Paragraphs 5, 6 and 7 of this Order will result in the closing of this
case with no further action by this Commission.
a. Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
___________________________
Name, Case #
Page 24
Louis W. Fryman, Chair