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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