HomeMy WebLinkAbout79-526 ReederTO:
Harvey B. Reeder
311 Penn Street
Huntingdon, PA 16652
STATE ETHICS COMMISSION
HARRISBURG, PA.
September 21, 1979
ADVICE OF CHIEF COUNSEL
RE: Section 3(c), Conflict of Interest
FACTS:
On September 11, 1979, we were advised by Harvey
B. Reeder, Solicitor for the Borough of Mt. Union, that
it has no facilities for storing unleaded gasoline for use
in the Borough police cars. There are within the Borough
of Mt. Union only two gas stations. The borough requested
bids for persons interested in supplying the borough with
gasoline for use in the police vehicles, but no bids were
received from anyone. The only station within the Borough
of Mt. Union which will allow direct credit billing to the
borough for gasoline purchase has as one of its principle
officers a member of the Borough Council.
DISCUSSION:
Advice Number 79 -526
Section 3(c) prohibits a public official, such as a
member of a borough council, from being an officer in a
corporation which does business with that officer's
governmental body unless a 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. Under the facts supplied, there was
prior public notice, bids were requested, and subsequent
public disclosure of the results of an attempt to obtain bids
was disclosed. Section 3(c) of the Act was therefore complied
with.
Section 3(c) does not require bidding, but permits
negotiation in circumstances as above. Section 3(c) was
therefore complied with in full.
In order to avoid the appearance of a conflict of
interest, that member of the borough council who is an
officer within the corporation should refrain from taking
part in any discussion with respect to the purchase of
unleaded gasoline for the two police cars. He should not
represent the company in negotiating a contract, nor should
he take part in the discussions within the borough council
for the purchase.
HARVEY B. REEDER
September 21, 1979
page 2
This may be waived in the event that the member
of borough council is the only officer in the corporation.
In such cases, scrupulous attention should be paid to the
Sunshine Act.
CONCLUSION:
Where a bidding process results in no bids, a
corporation of which a borough council member is an
officer may negotiate with that borough council. In such
event, the corporate officer /borough council member shall
have no part in the negotiation. This may be waived if the
borough council member is the only officer of the corporation
or business.
This letter is a public record and will be made avail-
able as such.
David Rittenhouse Morrison
Chief Counsel