HomeMy WebLinkAbout1612 Packrall
In Re: Mike Packrall, : File Docket: 11-018
Respondent : X-ref: Order No. 1612
: Date Decided: 1/28/13
: Date Mailed: 2/13/13
Before: John J. Bolger, Chair
Nicholas A. Colafella, Vice Chair
Raquel K. Bergen
Mark Volk
Mark R. Corrigan
Roger Nick
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. A Stipulation of Findings and a
Consent Agreement 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 Michael Packrall, a public official/public employee in his capacity as a
Commissioner for East Bethlehem Township, Washington County, violated Sections
1103(a), 1103(f), 1104(a) and 1104(d) of the State Ethics Act (Act 93 of 1998), 65 Pa.C.S.
§§ 1103(a), 1103(f), 1104(a) and 1104(d), when he participated in discussions and actions
of the Board of Commissioners, which resulted in contracts being entered into for the
purchase of equipment and services from Sun Industrial, Inc., a business with which he
and/or his spouse is associated; when as a Commissioner he arranged for the purchase of
a roller by the Township at an inflated price and retained, for personal benefit, the
difference between the actual purchase price and the amount paid by the Township; when
contracts for equipment and services entered into with Sun Industrial, Inc. were done
without an open and public process; when he participated in decisions of the Board of
Commissioners to approve payments to Sun Industrial, Inc.; and when he failed to file
Statements of Financial Interests for the 2006, 2008 and 2009 calendar years.
II.FINDINGS:
1. Mike Packrall has served as a Commissioner for East Bethlehem Township
(hereafter “Township”), Washington County, since January 5, 2004.
a. Packrall has not held any officer positions on the Board of Commissioners
during his tenure.
Packrall, 11-018
Page 2
b. Packrall served as a Member of the Township Roads Committee from
January 5, 2004, through December 31, 2011.
2. East Bethlehem Township is a First Class Township governed by a five-Member
Board of Commissioners.
a. The Commissioners hold legislative meetings on the second Wednesday of
each month.
1. The Commissioners do not hold non-legislative/workshop meetings.
b. The Commissioners hold special meetings as necessary.
3. Township Commissioners are compensated a total of $800.00 (gross) annually for
their service.
a. [Commissioners] receive the stipend via quarterly payments of $200.00
(gross).
b. Attendance at monthly meetings is not required in order to receive the
stipend.
4. Board voting occurs in an aye/nay group voice vote after a motion is made and
seconded.
a. All objections and/or abstentions are noted in the minutes.
1. The minutes of each meeting are approved for accuracy at each
subsequent meeting.
5. Since about 2007, the Commissioners have received meeting packets
approximately one week prior to the legislative meetings.
a. Meeting packets included the agenda, draft minutes, bill lists, etc.
6. Bill lists included in the meeting packets represented all of the bills received by the
Township since the previous monthly meeting.
a. The bill lists identified the amounts to be paid to vendors for services
provided.
b. Bill lists presented at the monthly meetings were approved by the
Commissioners for payment via a vote at the regular monthly meetings.
7. The President and Vice President of the Board along with the Secretary/Treasurer
and the Tax Collector maintain signature authority over the Township financial
accounts.
a. Three signatures are required on all Township checks.
b. Township checks require the signatures of any three of the four authorized
signatories.
c. Facsimile stamps are not utilized.
Packrall, 11-018
Page 3
8. The President of the Board is responsible for appointing Commissioners to the
Township Roads, Police, and Parks & Recreation Committees annually.
a. Appointments occur at the Commissioners’ re-organizational meeting held in
January of each year.
1. Exceptions to this practice occur due to resignations, untimely death,
etc.
b. Committees are routinely made up of two Commissioners.
9. The Roads Committee is responsible for overseeing the activities of the Road Crew
and advising the Commissioners of any equipment and/or supplies that may be
needed.
a. Packrall and Commissioner Paul Battaglini served as Members of the Roads
Committee from January 5, 2004, through December 2011.
10. Packrall was the primary Commissioner who interacted with the Road Crew when
discussing equipment, supplies or road issues.
a. Packrall was the Commissioner who primarily interacted with the Road Crew
due to his professional construction experience.
b. Battaglini is a retired school teacher and was not as experienced as Packrall
in construction and equipment.
11. From 2004 through 2011, Packrall was responsible for providing the Roads
Committee reports at the Township meetings.
a. Packrall reported to the Commissioners the road projects completed and
what equipment and/or supplies were needed.
12. Township paving projects begin during the spring of each year.
a. In 2006, the Road Crew completed the paving projects via the utilization of
equipment which included a 1980 Mauldin roller.
1. The 1980 Mauldin roller was the only roller owned by the Township at
that time.
13. The 2006 paving projects often were not efficiently completed due to the Mauldin
roller malfunctioning/breaking down during use.
a. The Township Road Crew made Packrall aware of the issues related to the
Mauldin roller.
b. The Road Crew recommended to Packrall that the Mauldin roller be replaced
before the start of the 2007 paving season.
1. The Road Crew’s recommendation was based on the roller continuing
to breakdown/malfunction and no longer being considered safe to
operate.
14. Packrall advised the Commissioners at the December 11, 2006, Township meeting
that the Township’s Mauldin roller needed to be replaced prior to the start of the
2007 paving season.
Packrall, 11-018
Page 4
a. The Board of Commissioners, including Packrall, discussed the possibility of
purchasing a roller in the spring of 2007.
b. The Board of Commissioners, including Packrall, did not vote and/or
specifically decide at the Township meeting how to resolve the roller issue.
15. Sun Industrial Inc. (hereafter “Sun Industrial”) is a construction company based in
Richeyville, Pennsylvania.
a. Sun Industrial was incorporated within the Commonwealth of Pennsylvania
under entity number 3058320 on March 11, 2002.
b. Sun Industrial specializes in the construction of commercial structures.
c. Sun Industrial utilizes various construction grade equipment in the
completion of its day-to-day operations.
16. Packrall and his wife, Kathy Packrall, have been associated with and have operated
Sun Industrial since the inception of the business on March 11, 2002.
a. Packrall has served as Vice President of Sun Industrial at all times during
Sun Industrial’s existence.
b. Kathy Packrall has served as President of Sun Industrial at all times during
Sun Industrial’s existence.
17. Richie Bros. Auctioneers (hereafter “Richie Bros.”) is a business that provides
auctioning services for construction equipment.
a. Richie Bros.’ locations include one at 3201 West Pulaski Highway, North
East, Maryland 21901.
18. During or about late fall/early winter 2006, Packrall researched the possibility of
purchasing rollers for his business.
a. Packrall determined that Richie Bros. was a viable option from which to
purchase construction equipment.
19. On December 13, 2006, Packrall submitted electronic bids to purchase two 2004
Multiquip AR13H Tandem Vibratory Smooth Drum Rollers (serial numbers 240305
and 240304) that were available through auction by the North East, Maryland,
Richie Bros. location.
a. The Multiquip roller identified by serial number 240305 had 743 hours of
usage registered on it prior to the electronic bid.
b. The Multiquip roller identified by serial number 240304 had 587 hours of
usage registered on it prior to the electronic bid.
20. Packrall won the auction on December 13, 2006, via a $9,500.00 bid (total) for the
purchase of both rollers.
a. Packrall bid on the rollers as a representative of Sun Industrial.
b. Packrall/Sun Industrial was identified as bidder #38100.
Packrall, 11-018
Page 5
21. On or about December 13, 2006, Richie Bros. issued an invoice to Sun Industrial at
P.O. Box O, Richeyville, PA 15358 in the amount of $10,174.50 for the purchase of
the rollers, as detailed below:
Lot No. Description Price
285 2004 Multiquip AR13H Tandem Vibratory Smooth Drum Roller $4,750.00
s/n: 240305
286 2004 Multiquip AR13H Tandem Vibratory Smooth Drum Roller $4,750.00
s/n 240304
Internet Purchase Fee (2% up to 500 per lot) $190.00
Tax1 9,500.00 @ 5% $475.00
Tax3 190 @ 5% $9.50
Total $10,174.50
a. The total cost for each roller, including an internet purchase fee and
applicable taxes, was $5,087.25 ($10,174.50 / 2 = $5,087.25).
b. The invoice was made out/issued to Sun Industrial.
c. No reference to East Bethlehem Township was documented on the invoice.
22. Packrall and other employees/representatives of Sun Industrial traveled to the
North East, Maryland Richie Bros. [location] on December 20, 2006, to take
possession of and transport the Multiquip rollers to Sun Industrial.
a. Packrall signed two Richie Bros. release tickets on December 20, 2006,
acknowledging the receipt of the Multiquip rollers and the keys to the rollers.
b. Packrall signed the release tickets as a representative of “Sun Industrial.”
1. The release tickets had a designated section for the identification of
the “name” of the representative transporting the rollers in which
space Packrall indicated “Sun Industrial.”
23. Packrall authorized the issuance of Sun Industrial check #1148, dated December
20, 2006, to Richie Bros. in the amount of $10,174.50.
a. Both Multiquip rollers were paid in full via issuance of check #1148.
b. Packrall signed the check as an authorized signatory of Sun Industrial.
24. From approximately December 2006 to approximately March 2007, the Road Crew
obtained several phone/written quotes related to the purchase of a new or used
roller.
a. Quotes received ranged from $20,000.00 to $40,000.00.
b. Copies of the quotes were given to the Commissioners as they were
received.
c. The Board of Commissioners, including Packrall, informed the Road Crew
that the Township was unable to afford a roller at a price range of
$20,000.00 to $40,000.00.
d. The Township did not advertise for bids regarding the purchase of a roller.
25. In or about March 2007, Packrall invited Township Road Employees Peter Hayges
Jr. and Gerald Kite to examine the Multiquip rollers that Sun Industrial had
Packrall, 11-018
Page 6
purchased from Richie Bros. to determine if either of the rollers could be utilized by
the Township.
a. Packrall invited the Road Employees to Sun Industrial approximately three
months after Sun Industrial purchased the Multiquip rollers from Richie Bros.
26. Packrall personally showed the two Multiquip rollers to Hayges Jr. and Kite at Sun
Industrial’s business location.
a. Packrall informed Hayges Jr. and Kite that he had mistakenly bid on two
Multiquip rollers and explained that Sun Industrial did not have a need for
one of them.
b. Hayges Jr. and Kite determined that the Multiquip roller identified by serial
number 240304 was the better of the two rollers and would meet the need of
the Township.
27. Packrall subsequently informed the Commissioners at the March 12, 2007,
Township meeting that Sun Industrial had purchased a roller for $6,500.00 and that
Sun Industrial would be willing to sell the roller to the Township for $6,500.00.
a. Packrall did not inform the Board that his purchase price averaged
$5,087.25 for each roller.
b. Packrall informed the Commissioners that the price was a “good price for the
amount of hours on the equipment.”
c. The Commissioners questioned Hayges Jr. and Kite on their opinion of the
proposed purchase.
1. Hayges Jr. and Kite informed the Commissioners that the purchase
was reasonable after having inspected the roller.
d. The meeting minutes from the March 12, 2007, [Township] meeting
incorrectly identify the roller as a “spreader.”
28. Battaglini subsequently made a motion at the March 12, 2007, meeting, seconded
by Commissioner Mike Bogol, to purchase a “spreader” from “Mike Packrall” for the
amount of $6,500.00.
a. The minutes incorrectly identify the Multiquip roller as a “spreader” and the
seller as “Mike Packrall” instead of Sun Industrial.
b. Minutes reflect that the “Motion Carried.”
1. Packrall was present at the meeting.
2. Meeting minutes do not reflect that Packrall abstained from the vote,
nor was any abstention memorandum filed and/or attached to the
minutes for that meeting.
29. Packrall, as a Member of the Roads Committee, instructed the Road Crew to
transport the Multiquip roller (serial number 240304) from Sun Industrial to the
Township shortly after the Commissioners voted to approve the purchase.
a. The Road Crew obtained the roller at the Sun Industrial business address of
100 Richeyville Road, Richeyville, PA 15358.
Packrall, 11-018
Page 7
1. Packrall resides at an address separate from Sun Industrial.
b. Township personnel and equipment were utilized to transport the roller from
Sun Industrial to the Township.
30. On or about March 12, 2007, Sun Industrial invoice #2007-476 was issued to the
Township for the purchase of the Multiquip roller (serial number 240304).
a. The amount of the invoice was $6,500.00.
b. The invoice noted that the roller had 590 hours of registered usage.
31. Township check #1186, dated July 9, 2007, was issued to Sun Industrial in the
amount of $6,500.00 as payment for the Multiquip roller (serial number 240304).
a. Township check #1186 was signed by Commissioner Mark Giovanelli,
Secretary/Treasurer Christine Evans, and Tax Collector Cindy Bundy as
authorized Township signatories.
b. Packrall was not an authorized Township signatory.
32. Although Township check #1186 was issued on or about July 9, 2007, check #1186
was listed on the May 14, 2007, bill list for approval.
a. The bill list documenting issuance of check #1186 was approved at the May
14, 2007, Board meeting via a unanimous vote.
b. Packrall was present at the May 14, 2007, Board meeting and voted in favor
of approving the bill list on which check #1186 was documented.
33. Sun Industrial, a business with which Packrall and his wife are associated, realized
a private pecuniary gain of $1,412.75 by selling the Multiquip roller to the Township
as shown below:
Description Cost
Multiquip roller sold to the Township $6,500.00
Multiquip roller cost to Sun Industrial (including taxes) - $5,087.25
$1,412.75
THE FOLLOWING FINDINGS RELATE TO PACKRALL’S FAILURE TO FILE
STATEMENT OF FINANCIAL INTERESTS FORMS FOR THE 2006, 2008 AND 2009
CALENDAR YEARS.
34. Statement of Financial Interests filing requirements for public officials and public
employees are mandated by Section 1104 of the State Ethics Act.
a. Section 1104(a) mandates in part, the following:
“…Any other public employee or public official shall file
a statement of financial interests with the governing
authority of the political subdivision by which he is
employed or within which he is appointed or elected no
later than May 1 of each year that he holds such a
position and of the year after he leaves such a
position.”
Packrall, 11-018
Page 8
35. Packrall, in his official capacity as a Commissioner for East Bethlehem Township,
st
was required to file a Statement of Financial Interests form by May 1 annually
containing information for the prior calendar year.
a. The Commissioners are annually provided with blank Statement of Financial
Interests forms by the Secretary/Treasurer for completion.
b. Packrall asserts that he never received the forms for completion.
36. On September 12, 2011, a Statement of Financial Interests Compliance Review
was conducted for East Bethlehem Township by the Investigative Division of the
State Ethics Commission.
a. No Statements of Financial Interests for Packrall for calendar years 2006,
2008, and 2009 were on file with the Township.
b. Packrall completed calendar years 2006, 2008, and 2009 Statements of
Financial Interests on or about September 24, 2012, and provided originals
of those documents to the Investigative Division of the State Ethics
Commission.
III.DISCUSSION:
As a Commissioner for East Bethlehem Township (“Township”), Washington
County, since January 5, 2004, Respondent Mike Packrall (hereinafter also referred to as
“Respondent,” “Respondent Packrall,” and “Packrall”) has been 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 Packrall violated Sections 1103(a), 1103(f), 1104(a), and
1104(d) of the Ethics Act: (1) when he participated in discussions and actions of the
Township Board of Commissioners which resulted in contracts being entered into for the
purchase of equipment and services from Sun Industrial, Inc., a business with which he
and/or his spouse is associated; (2) when as a Commissioner, he arranged for the
purchase of a roller by the Township at an inflated price and retained, for personal benefit,
the difference between the actual purchase price and the amount paid by the Township;
(3) when contracts for equipment and services entered into with Sun Industrial, Inc. were
done without an open and public process; (4) when he participated in decisions of the
Township Board of Commissioners to approve payments to Sun Industrial, Inc.; and (5)
when he failed to file Statements of Financial Interests (“SFIs”) for the 2006, 2008, and
2009 calendar years.
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
Packrall, 11-018
Page 9
"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.
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.
Packrall, 11-018
Page 10
Section 1104(a) of the Ethics Act provides that each public official/public employee
must file a Statement of Financial Interests for the preceding calendar year, each year that
he holds the position and the year after he leaves it.
Section 1104(d) of the Ethics Act provides that no public official shall be allowed to
take the oath of office, or enter or continue upon his duties, nor shall he receive
compensation from public funds, unless he has filed a Statement of Financial Interests as
required by the Ethics Act.
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.
The Township is governed by a five-Member Board of Commissioners (“Board”).
Packrall has served as a Township Commissioner since January 5, 2004.
Township committees are routinely made up of two Township Commissioners.
Packrall and Commissioner Paul Battaglini (“Battaglini”) served as Members of the Roads
Committee from January 5, 2004, through December 2011. The Roads Committee is
responsible for overseeing the activities of the Township Road Crew (“Road Crew”) and
advising the Commissioners of any equipment and/or supplies that may be needed. Due
to his professional construction experience, Packrall was the Commissioner who primarily
interacted with the Road Crew when discussing equipment, supplies or road issues.
From 2004 through 2011, Packrall was responsible for providing the Roads
Committee reports at Board meetings. Packrall reported to the Commissioners the road
projects completed and what equipment and/or supplies were needed.
Township paving projects begin during the spring of each year. In 2006, the Road
Crew completed the paving projects via the utilization of equipment which included the
only roller owned by the Township at that time, a 1980 Mauldin roller (“the Mauldin
Roller”). The 2006 paving projects often were not efficiently completed due to the Mauldin
Roller malfunctioning/breaking down during use, and the Mauldin Roller was no longer
considered safe to operate. The Road Crew made Packrall aware of the issues related to
the Mauldin Roller and recommended to Packrall that the Mauldin Roller be replaced
before the start of the 2007 paving season.
Packrall advised the Commissioners at the December 11, 2006, Board meeting that
the Mauldin Roller needed to be replaced prior to the start of the 2007 paving season. The
Board, including Packrall, discussed the possibility of purchasing a roller in the spring of
2007. The Board did not vote and/or specifically decide at the meeting how to resolve the
roller issue.
Sun Industrial Inc. (“Sun Industrial”) is a construction company based in Richeyville,
Pennsylvania. Packrall and his wife, Kathy Packrall, have been associated with and have
operated Sun Industrial since it was incorporated in Pennsylvania on March 11, 2002.
Packrall has served as Vice President and Kathy Packrall has served as President of Sun
Industrial at all times during its existence. Sun Industrial specializes in the construction of
commercial structures and utilizes various construction grade equipment in the completion
of its day-to-day operations.
Richie Bros. Auctioneers (“Richie Bros.”) is a business that provides auctioning
services for construction equipment. During or about late fall/early winter 2006, Packrall
researched the possibility of purchasing rollers for his business. Packrall determined that
Richie Bros. was a viable option from which to purchase construction equipment.
Packrall, 11-018
Page 11
On December 13, 2006, Packrall, as a representative of Sun Industrial, submitted
electronic bids to purchase two 2004 Multiquip AR13H Tandem Vibratory Smooth Drum
Rollers (the “Multiquip Rollers”) that were available through auction by Richie Bros.
Packrall won the auction via a bid of $9,500.00 for the purchase of both rollers. On or
about December 13, 2006, Richie Bros. issued an invoice in the amount of $10,174.50 to
Sun Industrial for the purchase of the rollers. The total cost for each Multiquip Roller,
including an internet purchase fee and applicable taxes, was $5,087.25.
On December 20, 2006, Packrall and other employees/representatives of Sun
Industrial traveled to Richie Bros. to take possession of the Multiquip Rollers and transport
them to Sun Industrial. Packrall, as a representative of Sun Industrial, signed two Richie
Bros. release tickets acknowledging the receipt of the Multiquip Rollers and the keys to the
rollers. Sun Industrial paid for the rollers via a check that was signed by Packrall.
From approximately December 2006 to approximately March 2007, the Road Crew
obtained several phone/written quotes, ranging from $20,000.00 to $40,000.00, related to
the purchase of a new or used roller. Copies of the quotes were given to the
Commissioners as they were received. The Board, including Packrall, informed the Road
Crew that the Township was unable to afford a roller at a price range of $20,000.00 to
$40,000.00. The Township did not advertise for bids regarding the purchase of a roller.
In or about March 2007, Packrall invited Township Road Employees Peter Hayges
Jr. (“Hayges”) and Gerald Kite (“Kite”) to examine the Multiquip Rollers that Sun Industrial
had purchased from Richie Bros. to determine if either of the rollers could be utilized by
the Township. Packrall informed Hayges and Kite that he had mistakenly bid on two
rollers and explained that Sun Industrial did not have a need for one of them. Packrall
personally showed the two Multiquip Rollers to Hayges and Kite, who determined that one
roller was the better of the two rollers and would meet the need of the Township.
At the March 12, 2007, Board meeting, Packrall informed the Commissioners that
Sun Industrial had purchased a roller for $6,500.00 and would be willing to sell it to the
Township for $6,500.00. Packrall informed the Commissioners that the price was a “good
price for the amount of hours on the equipment,” but he did not inform the Board that the
purchase price for the roller averaged $5,087.25. The Commissioners questioned Hayges
and Kite on their opinion of the proposed purchase, and Hayges and Kite informed the
Commissioners that the purchase was reasonable after having inspected the roller.
Battaglini subsequently made a motion at the March 12, 2007, Board meeting,
seconded by Commissioner Mike Bogol, to purchase a “spreader” from “Mike Packrall” for
the amount of $6,500.00. The Board meeting minutes incorrectly identified the Multiquip
Roller as a “spreader” and the seller as “Mike Packrall” instead of Sun Industrial. The
meeting minutes reflect that the motion carried. The meeting minutes do not reflect that
Packrall abstained from the vote, nor was any abstention memorandum filed and/or
attached to the meeting minutes.
Packrall, as a Member of the Roads Committee, instructed the Road Crew to
transport the Multiquip Roller from Sun Industrial to the Township shortly after the
Commissioners voted to approve the purchase. Township personnel and equipment were
utilized to transport the Multiquip Roller from Sun Industrial to the Township.
On or about March 12, 2007, Sun Industrial issued an invoice in the amount of
$6,500.00 to the Township for the purchase of the Multiquip Roller. At the Board meeting
on May 14, 2007, Packrall participated in a unanimous vote of the Board to approve the bill
list which documented the issuance of Township check #1186 to Sun Industrial in the
amount of $6,500.00 as payment for the Multiquip Roller.
Packrall, 11-018
Page 12
The parties have stipulated that Sun Industrial realized a private pecuniary gain of
$1,412.75 by selling the Multiquip Roller to the Township.
As for Packrall’s SFIs, on September 12, 2011, an SFI compliance review was
conducted for the Township by the Investigative Division of this Commission. No SFIs for
Packrall for calendar years 2006, 2008, and 2009 were on file with the Township. Packrall
completed SFIs for calendar years 2006, 2008, and 2009 on or about September 24, 2012,
and he provided originals of those documents to the Investigative Division of this
Commission.
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, as an East Bethlehem
Township Commissioner, Packrall participated in
actions which resulted in the purchase of
equipment from Sun Industrial, Inc., a business
with which he and/or his spouse is associated.
b. That a violation of Section 1103(f) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(f), occurred when the Township entered
into contracts for equipment and services with
Sun Industrial, Inc. in excess of $500.00 without
an open and public process.
c. That a violation of Section 1104(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1104(a), occurred when Packrall failed to file
Statements of Financial Interests for calendar
years 2006, 2008 and 2009 with East Bethlehem
Township.
4. Packrall agrees to make payment in the amount of $1,412.75
in settlement of this matter payable to East Bethlehem
Township and forwarded to the Pennsylvania State Ethics
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. To the extent he has not already done so, Packrall agrees to
file Statements of Financial Interests with East Bethlehem
Township, through the Pennsylvania State Ethics Commission,
for [the] 2006, 2008 and 2009 calendar years within thirty (30)
days of the issuance of the final adjudication in this matter.
6. Packrall agrees to not accept any reimbursement,
compensation or other payment from East Bethlehem
Township representing a full or partial reimbursement of the
amount paid in settlement of this matter.
Packrall, 11-018
Page 13
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.
We agree with the parties that a violation of Section 1103(a) of the Ethics Act
occurred when Packrall, as a Township Commissioner, participated in actions which
resulted in the purchase of equipment from Sun Industrial, Inc., a business with which he
and/or his spouse is associated.
Packrall is Vice President of Sun Industrial and his spouse, Kathy Packrall, is
President of Sun Industrial. Packrall invited Hayges and Kite to examine the Multiquip
Rollers that Sun Industrial had purchased from Richie Bros. to determine if either of the
rollers could be utilized by the Township, and he personally showed the Multiquip Rollers
to Hayges and Kite. At the March 12, 2007, Board meeting, Packrall informed the
Commissioners that Sun Industrial had purchased a roller for $6,500.00 and would be
willing to sell it to the Township for $6,500.00. Packrall further informed the
Commissioners that the price was a “good price for the amount of hours on the
equipment.” Packrall did not abstain from the Board’s vote to purchase the Multiquip Roller
from Sun Industrial for the amount of $6,500.00. At the Board meeting on May 14, 2007,
Packrall participated in a unanimous vote of the Board to approve the bill list which
documented the issuance of Township check #1186 to Sun Industrial in the amount of
$6,500.00 as payment for the Multiquip Roller. The parties have stipulated that Sun
Industrial realized a private pecuniary gain of $1,412.75 by selling the Multiquip Roller to
the Township.
Based upon the Stipulated Findings and Consent Agreement, we hold that a
violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when
Packrall, as a Township Commissioner, participated in actions which resulted in the
purchase of equipment from Sun Industrial, Inc., a business with which he and/or his
spouse is associated.
We accept the recommendation of the parties for a finding that a violation of Section
1103(f) of the Ethics Act occurred when the Township entered into contracts for equipment
and services with Sun Industrial, Inc. in excess of $500.00 without an open and public
process. Based upon the Stipulated Findings, there was no prior public notice of the
opportunity to contract with the Township regarding the purchase of a roller.
We hold that a violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f),
occurred when the Township entered into contracts for equipment and services with Sun
Industrial, Inc. in excess of $500.00 without an open and public process.
As for the allegations involving Packrall’s SFIs, we hold that a violation of Section
1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred when Packrall failed to file SFIs
for calendar years 2006, 2008, and 2009 with the Township. It appears that the
Investigative Division in the exercise of its prosecutorial discretion has elected to non pros
the portion of the allegations pertaining to Section 1104(d).
Packrall, 11-018
Page 14
As part of the Consent Agreement, Packrall has agreed to make payment in the
amount of $1,412.75 in settlement of this matter payable to East Bethlehem Township and
forwarded to this Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
Packrall 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.
To the extent he has not already done so, Packrall has further agreed to file SFIs for
the 2006, 2008, and 2009 calendar years with the Township, through this Commission,
within thirty (30) days of the issuance of the final adjudication in this matter.
We determine that the Consent Agreement submitted by the parties sets forth a
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, Packrall is directed to make
payment in the amount of $1,412.75 payable to East Bethlehem Township and forwarded
th
to 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, Packrall is 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, Packrall is directed to file SFIs for
calendar years 2006, 2008, and 2009 with the Township, through this Commission, by no
th
later than the thirtieth (30) day after the mailing date of this adjudication and Order.
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 Commissioner for East Bethlehem Township (“Township”), Washington
County, since January 5, 2004, Respondent Mike Packrall has been a public official
subject to the provisions of the Public Official and Employee Ethics Act (“Ethics
Act”), 65 Pa.C.S. § 1101 et seq.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred
when Packrall, as a Township Commissioner, participated in actions which resulted
in the purchase of equipment from Sun Industrial, Inc., a business with which he
and/or his spouse is associated.
3. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when
the Township entered into contracts for equipment and services with Sun Industrial,
Inc. in excess of $500.00 without an open and public process.
4. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Packrall failed to file Statements of Financial Interests for calendar years
2006, 2008, and 2009 with the Township.
In Re: Mike Packrall, : File Docket: 11-018
Respondent : Date Decided: 1/28/13
: Date Mailed: 2/13/13
ORDER NO. 1612
1. A violation of Section 1103(a) of the Public Official and Employee Ethics Act
(“Ethics Act”), 65 Pa.C.S. § 1103(a), occurred when Mike Packrall (“Packrall”), as a
Commissioner for East Bethlehem Township (“Township”), Washington County,
participated in actions which resulted in the purchase of equipment from Sun
Industrial, Inc., a business with which he and/or his spouse is associated.
2. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when
the Township entered into contracts for equipment and services with Sun Industrial,
Inc. in excess of $500.00 without an open and public process.
3. A violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred
when Packrall failed to file Statements of Financial Interests for calendar years
2006, 2008, and 2009 with the Township.
4. Per the Consent Agreement of the parties, Packrall is directed to make payment in
the amount of $1,412.75 payable to East Bethlehem 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.
5. Per the Consent Agreement of the parties, Packrall is 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.
6. To the extent he has not already done so, Packrall is directed to file Statements of
Financial Interests for calendar years 2006, 2008, and 2009 with the Township,
through the Pennsylvania State Ethics Commission, by no later than the thirtieth
th
(30) day after the mailing date of this Order.
7. Compliance with Paragraphs 4, 5, and 6 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,
___________________________
John J. Bolger, Chair