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HomeMy WebLinkAbout1721 BairdSTATE ETHICS HICS 4aO[' MISSION 309 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 In Re: Ronald L. Baird, File Docket: Respondent X -ref: Date Decided: Date Mailed: 16 -033 Order No. 1721 9127117 1013117 Before: Nicholas A. Colafella, Chair Roger Nick Maria Feeley Melanie DePalma 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 se g., 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." A Stipulation of Findings and a Consent Agreement were subsequently submitted b the parties to the Commission far consideration. The Stipulated Findings are set forth as the Findings in this Order. The Consent Agreement has been approved. I. ALLEGATIONS: That Ronald Baird, a public official /public employee in his capacit as a Member and President of Littlestown Borough Council, Adams County, violated Sections 1103(a), 1103(f), 1104(a), 1104(d), 1105)(1), 1105(b)(5), 1105(b)(8), 1105(b)(9), and 1105(b)(10)] of the Ethics Act when he utilized the authority of his public position for the private pecuniary benefit of himself, a member of his immediate family, and/or a business with which he and/or a member of his immediate family is associated when: • He participated in official actions of Littlestown Borough Council to approve bill listings and the issuance of payments to his son and /or a business with which his son is associated; • He served as an authorized Borough signatory on Borough checks issued to his son and /or a business with which his son is associated, as payment; • He participated in official actions of Littlestown Borough Council to approve bill listings and the issuance of payment to him and/or a business with which he is associated; • He served as an authorized Borough signatory on Borough checks issued to him and/or a business with which he is associated; • A contract or contracts valued at $500.00 or more between the Borough of Littlestown and Andrew R. Baird /Baird Heating & Cooling, Inc., were awarded absent an open and public process; P.O. BOX 11470, HARRISBURG, PA 17108 -1470 • 717 - 783 -1610 - 1- 800-932 -0936 ® www.ethics.state,pa.Us Baird, 16 -033 '1- — 2 • He failed to accurately report the correct calendar year on Statements of Financial Interests filed for the 2013 and 2015 calendar years; • He failed to provide a response to "Governmental Entity" in Box No. 5 on his Statements of Financial Interests filed for calendar years 2011 and 2013; • He failed to accurately report Baird Enterprises as an "Office, Directorship or Employment in an Business" as well as his "Financial Interest in any Legal Entity in Business for Profit" on a Statement of Financial Interests filed for the 2013 calendar year; • He failed to provide a response to "Business Interests Transferred to Immediate Family Member" on a Statement of Financial Interests filed for the 2011 calendar year; and • He failed to report all sources of income in excess of $1,300.00 on Statements of Financial Interests filed for calendar years 2012 through 2015. II. FINDINGS: Ronald Baird ( "Baird ") has served as an elected Member of Littlestown Borough Council ( "Council "), Adams County, since January 2012. a. Council is comprised of six (6) Members and a Mayor. 1. Voting by the Mayor only occurs in the event of a tie vote of Council. 2. In addition to serving as a public official, Baird is also the owner of Baird Enterprises, Inc., located at 682 St. Johns Road, Littlestown, PA 17340, a. Baird Enterprises, Inc. filed Articles of Incorporation with the Pennsylvania Department of State on June 7, 2000. Baird Enterprises, Inc. was assigned entity number 2945875 by the Pennsylvania Department of State. 2. Baird is identified as the President and Treasurer of Baird Enterprises, Inc. b. Baird Enterprises, Inc.'s business holdings currently consist of the Littlestown Laundromat. 3. Council generally holds two (2) regular meetings per month. a. The daily operations of Littlestown Borough ( "Borough ") are delegated to and/or the responsibility of the Borough Manager ( "Manager "), Charles Kellar ( "Kellar "). b. Kellar has held the appointed positions of acting manager/manager since January 10, 2012. C. Kellar has also served as the Borough's Chief of Police since approximately 2010. Kellar has simultaneously held the positions of Chief of Police and acting managerlmanager since January 10, 2012. Baird, 16-033 Tya--g—e3 d. The Borough's finances are managed by Borough Secretary/Treasurer Sandy Conrad ( "Conrad "). 4. Kellar, in his official capacity as Manager, has the authority to make purchases and enter into contracts on behalf of the Borough without prior Council authorization. a. In contracting /purchasing, Kellar adheres to the bidding guidelines outlined in the Borough Code. b. Goods and services solicited by sealed bid are approved for purchase /contract by a vote of Council. C. Purchases made by Kellar which are not part of a sealed bid process are approved by Council retroactively through the routine bill payment process. 5. Throughout Baird's tenure on Council, the Borough has utilized the following bill paying process. a. Invoices for goods and services are submitted to Manager Kellar for initial review and approval. b. Kellar will initial the invoices (signifying approval for payment) and forward them to Conrad for further processing. C. Either Kellar or Conrad will affix the appropriate budget account code to the invoice prior to payment. d. Conrad subsequently prepares a bill list identifying all of the bills to be approved for payment at the next meeting of Council. e. Bill lists are provided to Council Members for review, along with other agenda items, approximately three (3) to five (5) days prior to the Council meetings. 1. Council holds meetings the 2nd and 4th Tuesday of each month. 2. Agenda items include bill lists (alkla payables), prior meeting minutes, employee payroll, and relevant correspondence. Bill lists are [approved] by Council through a single motion /vote accounting for all of the payments to be issued. 1. Bill lists provided to Council for approval include the payee's name, check number and amount. 2. Paper copies of the actual invoices are not provided to Council for review unless specifically requested. g. Although separate from the bill list, payroll is approved by a separate vote of Council. h. Checks representing payment are then signed by the Council President, Council Vice - President, Manager, or Borough Secretary/Treasurer, with three (3) signatures required. 1. Only two (2) signatures are required for employee payroll. 6. Baird's son, and immediate family member, Andrew Baird, owns and operates Baird Heating & Cooling, Inc. located at 895 Hanover Pike, Littlestown, PA 17340. Baird, 16 -033 '4 a. Baird Heating & Cooling, Inc. filed incorporating documents with the Pennsylvania Department of State on December 28, 2001. b. Baird Heating & Cooling, Inc. was assigned entity number 3044022 by the Pennsylvania Department of State. C. Andrew Baird is listed as President, Secretary, and Treasurer of Baird Heating & Cooling, Inc. d. Baird Heating & Cooling, Inc. is not affiliated with Baird Enterprises, Inc. e. Baird does not maintain any ownership or employment interest/status with Baird Heating & Cooling, Inc. THE FOLLOWING FINDINGS RELATE TO BAIRD'S PARTICIPATION IN THE APPROVAL OF PAYMENTS TO BAIRD HEATING & COOLING, INC. 7. Baird Heating & Cooling, Inc. has been utilized as a vendor to provide heating, air conditioning, and electrical repair services to the Borough since approximately October 21, 2008. a. Baird, the father of Andrew Baird (the owner of Baird Heating & Cooling, Inc.), did not become a Member of Council until January 2012. 1. At the time Baird was seated as a Council Member, Baird Heating & Cooling, Inc. had served as a vendor to the Borough for in excess of three (3) years. b. Borough employees perform some electrical repair work, on an as- needed basis, within the scope of their abilities. 1. Borough employees are not qualified to perform heating, air conditioning, or major electrical repairs. 2. Manager Kellar hires /contracts with outside vendors /companies to perform maintenance and repair work that he deems to be beyond the qualifications of Borough employees. C. In addition to Borough -owned and /or leased facilities, the Borough operates and is responsible for maintaining] public water and wastewater treatment facilities.... 8. At least three (3) heating and cooling businesses are located within the Borough geographic area, in addition to Baird Heating & Cooling, Inc. a. Those other HVAC companies include: • George W. Strevig & Sons: 815 W. King Street, Littlestown. • Key Services Heating & Cooling: 175 St. Johns Road West, Littlestown. • Buckley's Plumbing & Heating: 3737 Baltimore Pike, Littlestown. b. Baird Heating & Cooling, Inc. is the only HVAC company that advertises electrical repair service in addition to heating and cooling repairs. Baird, 16 -033 T'age 5 9. Council did not take any official action to hire or designate a specific HVAC or electrical contractor for Borough repair work. a. Manager Kellar maintained the authority to select vendors consistent with bidding thresholds set forth in the Borough Code. 10. Invoices on file with the Borough reflect regular business dealings with Baird Heating & Cooling, Inc. during 2011, the year prior to Baird taking office as a Member of Council. a. During 2011, the Borough issued approximately eleven (11) checks totaling $4,393.27 to Baird Heating & Cooling, Inc. specific to repair work. b. Invoiced amounts ranged from $65.00 to $2,233.26. C. Each invoice and/or accompanying purchase requisition included the initials "DGW," representing David G. Wheeler ( "Wheeler "). 1. Wheeler was the President of Council during 2011. 2. The position of Manager was vacant during 2011. 3. By affixing his initials on the invoices and purchase orders, Wheeler authorized payment to be made by the Borough. d. The initial contract and/or specified work order was arranged with Baird Heating & Cooling, Inc. by Borough employees on an as- needed basis. 1. No prior Council authorization or vote was obtained for any of the work performed by Baird Heating & Cooling, Inc. during calendaryear 2011. 11. The Borough continued to use Baird Heating & Cooling, Inc. as a vendor during Baird's service as a Council Member. a. Since 2012, repair and service work completed was initiated by Manager Kellar. b. Council did not engage in discussions or authorizations prior to Baird Heating & Cooling, Inc. being selected as a vendor. C. Kellar continued to use Baird Heating & Cooling, Inc. as a vendor based on satisfaction with Baird Heating & Cooling, Inc.'s response time and quality of work. d. Neither Kellar nor Members of Council were aware of the contracting restriction contained within the State Ethics Act, Section 1103(f) of Act 93 of 1998. 12. Between 2012 and 2016, Baird signed payment checks and voted to approve bill lists which included payments issued to Baird Heating & Cooling, Inc. a. Baird took this action in his official capacity as a Member of Council. b. Baird ceased taking any action associated with Baird Heating & Cooling, Inc. as of January 2017, in response to the preliminary inquiry in this matter. 13. Every check issued to Baird Heating & Cooling, Inc. from the Borough included Baird, 16 -033 Page 6 three (3} signatures of officials having signature authority, which included the Council President, Council Vice - President, Nanage r, and Secretary/Treasurer. a. Payments issued to Baird Heating & Cooling, Inc. were included as part of the bill lists provided to Council Members for approval prior to each meeting. b. Council then votes to approve the payment of routine bills by a single motion, accounting for all of the bills presented at the meeting, excluding employee payroll. 1. The majority of Borough checks are only issued after a vote by Council to approve payment. 2. Routine bills such as utilities or bills with penalties for late payments are [paid] prior to approval. 14. Since 2012, invoices to the Borough from Baird Heating & Cooling, Inc. were approved for payment by Manager Kellar. a. Kellar initialed each invoice, representing approval for payment, in addition to affixing the date and budget account code or codes. b. Account coding numbers are used for internal budgeting purposes and can be affixed to the invoices by either Kellar or Secretary/ Treasurer Conrad. C. Once this process is completed, Conrad prepares the check and places the payment for approval on the bill list for the next Council meeting. 15. Baird did not take any action on invoices from Baird Heating & Cooling, Inc. to the Borough, other than voting to approve bill lists and subsequently serving as a Borough signatory. 16. Between January 2012 and December 2016, when Baird served as a Borough signatory, he signed the front side of forty -two (42) checks, totaling $17,850.73, which were issued to Baird Heating & Cooling, Inc. for services rendered. a. By year, the checks signed by Baird total as follows: Year Number Total 2012 7 $2,093.12 2013 7 $759.23 2014 9 $3,781.32 2015 9 $5,016.66 2016 10 $6,200.40 42 7,85. 3 17. At the same time Baird was serving as a Borough signatory, he participated in approximately thirty -five (35) separate Council actions to approve bill lists which contained payments to Baird Heating & Cooling, Inc. totaling approximately $15,519.52. a. Votes by Baird to approve bill lists by year are as follows: Year Votes Total 2012 5 $1,742.87 2013 6 $1,045.36 2014 8 $3,689.85 2015 7 $3,220.04 Baird, 16 -033 l e7 2016 9 5,821,40 35 $15,519.52 THE FOLLOWING FINDINGS DETAIL THE AWARDING OF CONTRACT(S) VALUED AT $500.00 OR MORE TO BAIRD HEATING & COOLING, INC., ABSENT AN OPEN AND PUBLIC PROCESS. 18. Between January 18, 2012, and December 5, 2016, Baird Heating & Cooling, Inc. submitted at least fourteen (14) invoices to the Borough which exceeded $500.00 per invoice. a. Competitive quotes were obtained for at least three jed 3) of the instances when Baird Heating & Cooling, Inc. was utilized, as detai below: • Invoice number 8913, dated January 18, 2012, in the amount of $1,850.45. Invoice number 12746, dated October 21, 2015, in the amount of $1,250.00. • Invoice number 5128, dated December 30, 2015, in the amount of $1,250.00. b. The quotes obtained were not presented to Council for any review or official action prior to the work being awarded. 1. The decision to utilize Baird Heating & Cooling, Inc. was made by the Manager. C. Council's role was limited to approving the invoices for payment after the contract(s) were awarded and work was completed. 19. All of the invoices exceeding $500.00, with the exception of Invoice No. 5128 for the servicing of five (5) generators, dated December 30, 2015, were for services deemed to be of an urgent or emergency nature. a. Baird Heating & Cooling, Inc. submitted a quote to the Borough, through Kellar, dated October 24, 2014, for the servicing of the five (5) generators. 1. Kellar did not authorize completion of work quoted in the October 24, 2014, quote until December 30, 2015, approximately fourteen (14) months after the quote was received. 20. Baird did not participate in the decisions made by Kellar to authorize repairs performed by Baird Heating & Cooling, Inc. which were in excess of $500.00. a. Baird's use of his office as a Council Member concerning repairs exceeding $500.00 included signing Borough checks and participating in Council's routine approval of bill lists. THE FOLLOWING FINDINGS RELATE TO BAIRD PARTICIPATING IN THE PROCESS OF APPROVING PAYMENTS TO HIM CONCERNING THE RENTAL OF PROPERTY TO THE BOROUGH. 21. On March 23, 2010, a lease agreement was executed between Ronald L. Baird and Jill A. Baird, husband & wife, and the Borough of Littlestown for property owned by the Bairds, located at 232 North Queen Street, Littlestown, Adams County, PA, as recorded in Adams County Recorder of Deeds Book 5456, Page 363. Baird, 16 -033 age 8 a. The Borough's intended use of the property was to house a branch library as part of the Adams County Library System. b. The lease was for 99 years at $750.00 per month, effective July 1, 2010. 1. As part of the lease agreement, the Borough reserved the right to purchase the property for $1.00 upon the death of the last surviving spouse. 2. Lease terms further provided that the Borough was responsible for the payment of all utilities, with the Bairds being responsible for any and all property taxes. 3. The lease agreement was signed by Richard Adams, Council President, and Ronald L. Baird and Jill A. Baird. C. This lease was executed nearly two (2) years prior to Baird becoming a Member of Council. 22. Rental payments issued by the Borough to Baird were approved through the same process as other Borough bills, as detailed in this report. a. Baird routinely served as a Borough signatory from 2012 through 2016 on Borough checks issued to Baird as rental payments. b. During this same time, Baird also routinely participated in the vote to approve bill lists which included the rental payments. 23. Between January 2012 and December 2016, Baird served as a Borough signatory on fifty -five (55) checks, each in the amount of $750.00, totaling $41,250.00, issued to him as rental payments. a. Baird served as a Borough signatory on all but four (4) checks issued to him for rent between January 2012 and December 20166. b. Baird also voted fifty -six (56) times to approve rental payments to him, totaling $42,000.00, between February 28, 2012, and December 13, 2016. 24. No changes have been made to the terms and conditions of the lease agreement since Baird has been a Member of Council. 25. Baird has ceased serving as a Borough signatory on checks made payable to him as rental payments and has abstained from Council action approving payment of same since January 2017. 26. Council meeting minutes do not reflect any objection to Baird's participation in approving bill lists and signing checks issued to Baird Heating & Cooling, Inc. for repairs, nor any objection to checks issued to Baird as library rental payments. a. Baird has voluntarily taken action to abstain from voting on payments and serving as a Borough signatory on checks issued to Baird Heating & Cooling, Inc. and/or him. THE FOLLOWING FINDINGS RELATE TO BAIRD'S DEFICIENT STATEMENT OF FINANCIAL INTERESTS FORMS FILED FOR CALENDAR YEARS 2011 THROUGH 2016. Baird, 16 -033 Tage 9 27. Baird, as a Member of Council, is annually required to file a Statement of Financial Interests form by May 15t reporting financial information for the prior calendar year. 28. Each January, Secretary/Treasurer Conrad provided Baird with Statement of Financial Interests forms to complete. 29. Baird failed to report the correct calendar year on Statements of Financial Interests filed for the 2013 and 2015 calendar years. a. Baird listed the current calendar year on each filing, instead of the required prior calendar year. 30. Baird failed to provide a response to "Governmental Entity" in Box No. 5 on his Statements of Financial Interests filed for calendar years 2011 and 2013. a. The correct [response] would have reported the Borough on both of these filings. 31. Baird failed to accurately report Baird Enterprises, Inc. as an "Office, Directorship or Employment in any Business," as well as his "Financial Interest in Any Legal Entity in Business for Profit," on a Statement of Financial Interests filed for the 2013 calendar year. a. Baird checked the box "None" as his response for both of these line items. 32. Baird failed to provide a response to "Business Interests Transferred to Immediate Family Member" on a Statement of Financial Interests filed for the 2011 calendar year. a. Based on interview statements provided by Baird and his son, Andrew Baird, Baird should have replied "none" to this item. 33. Baird failed to report all sources of income in excess of $1,300.00 on Statements of Financial Interests filed for calendar years 2012 through 2015. a. Baird failed to report the Borough as a direct/indirect source of income in excess of $1,300.00 on each of these filings. 1. Baird received rental payments from the Borough in the amount of $750.00 per month each of these years ($9,000.00 annually). 2. Baird received $1,200.00 per year from the Borough as a Member of Council. b. Baird failed to report Baird Enterprises, Inc. as a direct/indirect source of income in excess of $1,300.00 of his Statement of Financial Interests filed for the 2012 calendar year. 1. Baird reports [Baird Enterprises, Inc. as a direct/indirect source of income in excess of $1,300.00] on Statements of Financial Interests filed for calendar years 2011, 2013, 2014, and 2015. 111. DISCUSSION: As a Member of Council for Littlestown Borough ( "Borough "), Adams County, since January 2012, Respondent Ronald L. Baird, also referred to hereinafter as "Respondent," "Respondent Baird," and "Baird," has been a public official sub'ect to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), 65 Pa.C.S. § 1101 et seq. Baird, 16 -033 Page 10 The allegations are that Baird violated Sections 1103(a), 1103(f), 1104(a), 1104(d), 1105(b)(1), 1105(b)(5), 1105(b)(8), 1105(b) ,9), and 1105(b)(10) of the Ethics Act when he utilized the authoritty of his public position ffor the private pecuniary benefit of himself, a member of his immediate family, and/or a business with which he and/or a member of his immediate family is associated when: He participated in official actions of Borough Council to approve bill listings and the issuance of payments to his son and /or a business with which his son is associated; He served as an authorized Borough signatory on Borough checks issued as payment to his son and/or a business with which his son is associated; • He participated in official actions of Borough Council to approve bill listings and the issuance of payment to him and/or a business with which he is associated; He served as an authorized Borough signatory on Borough checks issued to him and/or a business with which he is associated; A contract or contracts valued at $500.00 or more between the Borough and Andrew R. Baird /Baird Heating & Cooling, Inc., were awarded absent an open and public process • He failed to accurate)y report the correct calendar year on Statements of Financial Interests ( "SFIs "filed for the 2013 and 2015 calendar years; • He failed to provide a response to "Governmental Entity" in Box No. 5 on his SFI filed for calendar years 2011 and 2013; He failed to accurately report Baird Enterprises as an "Office, Directorship or Employment in any Business" as well as his "Financial Interest in any Legal Entity in Business for Profit" on an SFI filed for the 2013 calendar year; He failed to provide a response to "Business Interests Transferred to Immediate Family Member" on an SFI filed for the 2011 calendar year; and He failed to report all sources of income in excess of $1,300.00 on SFIs filed for calendar years 2012 through 2015. Per the Consent Agreement, the Investigative Division has exercised its prosecutorial discretion to not pros the allegation under Section 1104(d) of the Ethics Act. Based upon the nol pros, we need not address the Section 1104(d) allegation that is no longer before us. 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). Baird, 16 -033 age 11 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 employyee 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 ublic 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 ecuniary 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 Baird, 16 -033 Page 12 through an open and public process including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. Section 1104(a) of the Ethics Act provides that each public official /public employee must file an SFI for the preceding calendar year, each year that he holds the position and the year after he leaves it. 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. Section 1105(b)(1} of the Ethics Act requires the filer to disclose on the SFI his name, address, and pubblic position. 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 en aged in business for profit. The term "financial interest" is defined in the Ethics Act as "?Ia]ny financial interest in a legal entity engaged in 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. Section 1105(b)(19) of the Ethics Act requires the filer to disclose on the SFI any financial interest in a business with which he is or has been associated in the preceding calendar year which has been transferred to a member of his immediate family. 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. Baird has served as a Member of Borough Council (also referred to herein as "Council ") since January 2012. Council is comprised of six Members and a Mayor. The Borough's finances are managed by Borough Secretary/Treasurer Sandy Conrad ( "Conrad "). The daily operations of the Borough are delegated to or the responsibility of the Borough Manager. Charles Kellar ( "Kellar ") has served as the acting Borough Manager /Borough Manager since January 10, 2012. Kellar, in his official capacity as the Borough Manager, has the authority to make purchases and enter into contracts on behalf of the Borough without prior Council authorization. Kellar adheres to the bidding guidelines outlined in the Borough Code when making purchases and contracting. Goods and services solicited by sealed bid are approved for purchaselcontract by a vote of Council. Purchases made by Kellar which are not part of a sealed bid process are approved by Council retroactively through the routine bill payment process. Invoices for goods and services are submitted to Kellar for initial review and approval. Kellar initials the invoices, signifying approval for payment, and forwards them to Conrad for further processing. Conrad then prepares a bill list identifying all of the bills to be approved for payment at the next meeting of Council. Bill lists are provided to Council Members for review approximately three to five days prior to Council meetings. The bill lists include the payees' names, check numbers, and amounts. Council approves bill lists through a single motion and vote that accounts for all Baird, 16 -033 X13 of the pa ments to be issued. Checks are then signed by the Council President, the Council Vice- President, the Borough Manager, or the Borough Secretary/Treasurer, with three signatures required. In a private capacity, Baird is the owner of Baird Enterprises, Inc. Articles of Incorporation filed with the Pennsylvania Department of State identify Baird as the President and Treasurer of Baird Enterprises, Inc. Baird's son, Andrew Baird, owns and operates Baird Heating & Cooling, Inc., which is not affiliated with Baird Enterprises, Inc. Articles of Incorporation filed with the Pennsylvania Department of State list Andrew Baird as President, Secretary, and Treasurer of Baird Heating & Cooling, Inc. Baird does not maintain any ownership interest in or employment status with Baird Heating & Cooling, Inc. Borough employees are not qualified to perform heating, air conditioning, or major electrical repairs, and Kellar hires or contracts with outside vendors /companies to perform maintenance and repair work that he deems to be beyond the qualifications of Borough employees. At least four HVAC businesses, including Baird Heating & Cooling, Inc., are located within the Borough's geographic area. Baird Heating & Cooling, Inc. is the only HVAC company that advertises electrical repair service in addition to heating and cooling repairs. Council did not take any official action to hire or designate a specific HVAC company or electrical contractor for Borough repair work. Since approximately October 2008, the Borough has utilized Baird Heating & Cooling, Inc. as a vendor to provide heating, air conditioning, and electrical repair services. After Baird began serving as a Council Member in 2012, Kellar continued to use Baird Heating & Cooling, Inc. as a vendor based on satisfaction with Baird Heating & Cooling, Inc.'s response time and quality of work. Kellar initiated repair and service work by Baird Heating & Cooling, Inc., without prior authorization by Council, and he approved invoices from Baird Heating & Cooling, Inc. for payment. Between January "' 20'12, and December 5, 2016, Baird Heating & Cooling, Inc. submitted to the Borough at least fourteen invoices that exceeded $500.00 per invoice. All but one of the invoices were for services deemed to be of an urgent or emergency nature. Baird did not participate in decisions made by Kellar to authorize repairs in excess of $500.00 that were performed by Baird Heating & Cooling, Inc. Between January 2012 and December 2016, Baird participated in thirty -five Council votes to approve bill lists which contained payments totaling $15,519.52 to Baird Heating & Cooling, nc. During that time period, Baird signed forty -two Borough checks totaling $17,80.73 that were issued to Baird Heating & Cooling, Inc. for services rendered. As of January 2017, Baird ceased taking any action associated with Baird Heating & Cooling, Inc. in response to the preliminary inquiry in the instant matter. Nearly two years before Baird became a Council Member in January 2012, a lease agreement was executed between the Borough and Baird and his wife, Jill A. Baird, for property owned by the Bairds. The Borough intended to use the Bairds' property to house a branch library as part of the Adams County Library System. The lease agreement was for 99 years at $750.00 per month, effective July 1, 2010. No changes have been made to the terms and conditions of the lease agreement since Baird became a Council Member. Between January 2012 and December 2016, Baird voted fifty -six times to approve bill lists that included rental payments to him under the lease agreement for the Bairds' propert . Baird also served as a Borough signatory on fifty -five checks, each in the amount of $7500, issued to him as rental payments under the lease agreement. Baird has ceased serving as a Borough signatory on checks issued to him as rental payments under the lease agreement and has abstained from Council action to approve the rental payments since January 2017. Baird, 16 -033 age 14 With regard to Baird's SFIs, Baird failed to list the correct calendar year on SFIs that he filed for the 2013 and 2015 calendar years. Baird failed to provide a response to Governmental Entity „ in Box No. 5 on his SFIs filed for the 2011 and 2013 calendar years. Baird failed to accurately report Baird Enterprises, Inc. in relation to "Office, Directorship or Employment in any Business” and "Financial Interest in any Legal Entity in Business for Profit' on his SFI filed for the 2013 calendar year. Baird failed to provide a response to "Business Interests Transferred to Immediate Family Member" on his SFI filed for the 2011 calendar year. Baird failed to list all reportable sources of income on SFIs filed for the 2012 through 2015 calendar years. Baird failed to report the Borough as a direct/indirect source of income in excess of $1,300.00 on his SFIs filed for the 2012 through 2015 calendar years. Baird failed to report Baird Enterprises, Inc. as a direct/indirect source of income in excess of $1,300.00 on his SFI filed for the 2012 calendar year. 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: The Investigative Division will recommend the following in relation to the above allegations: That a technical violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Baird's participation in official actions of Littlestown Borough Council, [including) approving bill listings, and serving as an authorized Borough signatory upon Borough checks issued as payment to his son and/or a business with which his son is associated. That no violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Baird approving bill listings, and serving as an authorized Borough signatory upon Borough checks issued as payment to himself and /or a business with which he is associated, pursuant to the Commission's holding in Krushinski, Order 168. C. That no violation of Section 1103(f) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(f), occurred in relation to contracts valued at $500.00 or more between the Borough of Littlestown and Andrew R. Baird /Baird Heating & Cooling, Inc., being awarded absent an open and public process, in that Baird did not participate in the awarding or consideration of said agreement/contract. d. That violation(s) of Section 1105(b) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1105(b), occurred in relation to the following Baird, 16 -033 X15 deficiencies upon Baird's Statements of Financial Interests filed for the 2011 through 2015 calendar years: 1. Inaccurate calendar year(s) identified upon Statements of Financial Interests filed for the (2013 and] 2015 calendar years. 2. Neglect to respond to "Governmental Entity in Box No. 5 upon Statements of Financial Interests filed for calendar years 2011 and 2013. 3. Inaccurate reporting of "Baird Enterprises" as an Office, Directorship or Employment in any Business, as well as a Financial Interest in any Business [on] a Statement of Financial Interests filed for the 2013 calendar year. 4. Neglect to indicate a response to any business interest transferred to immediate family member on a Statement of Financial Interests filed for the 2011 calendar year. 5. Failure to report all sources of income in excess of $1,300.00 on Statements of Financial Interests filed for calendar years 2012 through 2015. e. That no action will be undertaken pursuant to Section 1104(d) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1104(d). 4. Baird agrees to make payment in the amount of $1,500.00 in settlement of this matter payable as follows: a. $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. b. $500.00 which represents a portion of the expenses and costs incurred by the State Ethics Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Baird agrees to file complete and accurate amended Statements of Financial Interests with Littlestown Borough through the Pennsylvania State Ethics Commission, for the 2011, 2012, 2013, 2014, and 2015 calendar years within thirty Baird, 16 -033 X16 (30) days of the issuance of the final adjudication in this matter. Baird agrees to not accept any reimbursement, compensation or other payment from Littlestown Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. 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 allure 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 A regiment, at 2 -4. 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(a) of the Ethics Act. In considerin the Consent Agreement, we accept the recommendation of the parties for a findingg Tat a technical violation of Section 1103(a) of the Ethics Act occurred in relation to Bair 's participation as a Council Member with regard to the issuance of payments to his son and/or a business with which his son is associated. Baird's son, Andrew Baird, owns and operates Baird Heating & Cooling, Inc. Since approximately 2008, the Borough has utilized Baird Heating & Cooling, Inc. as a vendor to provide heating, air conditioning, and electrical repair services. Baird used the authority of his office as a Council Member when, between January 2012 and December 2016, he: (1) participated in thirty -five Council votes to approve bill lists which contained payments totaling $15.519.52 to Baird Heating & Cooling, Inc.; and (2) siggned forty -two Borough checks totaling $17,850.73 that were issued to Baird Heating & Cooling, Inc. for services rendered. Based upon the Stipulated Findings and the ConsentAggreement, we hold that Baird technically violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his participating in official actions of Council to approve bill listings containing payments to his son and/or a business with which his son is associated and his serving as an authorized Borough signatory on Borough checks issued as payment to same. We accept the recommendation of the parties for a finding that no violation of Section 1103(a) of the Ethics Act occurred in relation to Baird approving bill listings containing payments to him and/or a business with which he is associated and serving as an authorized Borough signatory on Borough checks issued as payment to same. Nearly two years before Baird became a Council Member, a lease agreement was executed between the Borough and Baird and his wife for pproppert owned by the Bairds. The lease agreement provided for rental payments of $750.00 per month for 99 years. From January 2012 through December 2016, Baird voted to approve bill lists that included rental payments to him under the lease agreement, and he served as a Borough signatory on checks issued to him as rental payments under the lease agreement. The Borough's obligation to make such payments was contractually pre -fixed and uncontested. This Commission has held that the approval of pre - fixed, routine, uncontested bills does not in and of itself rise to the level of a violation of Section 1103(a) of the Ethics Act. See, Baird, 16 -033 X17 Krushinski, Order 168; Yezzi, Order 825 at 58; Brooks, Opinion 89 -023; Maholick, Opinion 90-010;.P izon ka/Ried6_rTRit_t6 n house, Opinion 09 -007. Accordingly, we hold that no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Baird approving bill listings containing payments to him and/or a business with which he is associated and serving as an authorized Borough signatory on Borough checks issued as payment to same, in that the Borough's obligation to make such payments was contractually pre -fixed and uncontested. We accept the recommendation of the parties for a finding of no violation as to the Section 1103(f) allegation. In Bixler v. State Ethics Commission, 847 A.2d 785 (Pa. Cmwlth. 2004), the Commonwealth our# of Pennsylvania held that a township supervisor did not violate Section 1103(f) of the Ethics Act when a business that employed him entered into a contract in excess of $500 with his township without an open and public process, but the supervisor himself was neither a party to the contract nor a principal of the contracting business. The Court determined that Section 1103(f) of the Ethics Act prohibited the conduct of entering into the contract under such circumstances. The Court concluded that although a violation of ecti( n 110 (f) of the Ethics Act would be established under such circumstances, it would not be the public official who would be in violation of the law. Id. See also, Means, Opinion 04 --007. In the instant matter, although contracts valued at $500.00 or more were entered into by the Borough and Andrew Baird /Baird Heating & Cooling, Inc. without an open and Eprocess, Baird was neither a party to such contracts nor a principal of the contracting business. Accordingly, we hold that Baird did not violate Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), when contracts valued at $500.00 or more were entered into by the Borough and Andrew Baird /Baird Heating & Cooling, Inc. absent an open and public process, in that Baird was neither a party to such contracts nor a principal of the contracting business. Turning to the allegations regarding Baird's SFIs, we hold that violation(s) of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in relation to the following deficiencies on Baird's SFIs filed for the 2011 through 2015 calendar years: (1) inaccurate calendar year(s) identified on SFIs filed for the 2013 and 2015 calendar years; (2) neglect to respond to "Governmental Entity" in Box No. 5 on SFIs filed for the 2011 and 2013 calendar years; (3) inaccurate reporting of `Baird Enterprises" in relation to "Office, Directorship or Employment in any Business" as well as "Financial Interest in any Legal Entity in Business for Profit" on an SFI filed for the 2013 calendar year; (4) neglect to indicate a response to "Business Interests Transferred to Immediate Family Member" on an SFI filed for the 2011 calendar year; and (5) failure to report all sources of income in excess of $1,300.00 on SFIs filed for the 2012 through 2015 calendar years. As part of the Consent Agreement, Baird has agreed to make ayment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Baird has further agreed to make payment to this Commission in the amount of $500.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission within thirty (30) days of the issuance of the final adjudication in this matter. Baird, 16 -033 18 Baird has agreed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. Baird has also agreed to file complete and accurate amended SFIs with the Borough, through this Commission, for the 2011, 2012, 2013, 2014, and 2015 calendar years 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, Baird is directed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Baird is further directed to make payment to this Commission in the amount of $500.00, representing a portion: of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this adjudication and Order. Per the Consent Agreement of the parties, Baird is directed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Baird is directed to file complete and accurate amended SFIs with the Borough, through this Commission, for the 2011, 2012, 2013, 2014, and 2015 calendar years by no later than the thirtieth (30th) 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 Member of Council for Littlestown Borough Ord") orough "), Adams County, since January 2012, Respondent Ronald L. Baird (" 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. Baird technically violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in relation to his participating in official actions of Borough Council to approve bill listings containing payments to his son and/or a business with which his son is associated and his serving as an authorized Borough signatory on Borough checks issued as payment to same. 3. No violation of Section 1103(a ) of the Ethics Act, 65 Pa.C.S. %I 103(a , occurred in relation to Baird approving bill listings containing payments to im and or a business with which he is associated and serving as an authorized Borough signatory on Borough checks issued as payment to same, in that the Borough's obligation to make such payments was contractually pre -fixed and uncontested. 4. Baird did not violate Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), when contracts valued at $500.00 or more were entered into by the Borough and Andrew Baird, 16 -033 age 19 Baird /Baird Heating & Cooling, Inc. absent an open and public process, in that Baird was neither a party to such contracts nor a principal of the contracting business. 5. Violation(s) of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in relation to the following deficiencies on Baird's Statements of Financial Interests ( "SFIs ") filed for the 2011 through 2015 calendar years: (a) inaccurate calendar year(s) identified on SFIs filed for the 2013 and 2015 calendar years; (b) neglect to respond to "Governmental Entity" in Box No. 5 on SFIs filed for the 2011 and 2013 calendar years; c) inaccurate reporting of "Baird Enterprises" in relation to "Office, Directorship or Employment in any Business" as well as "Financial Interest in an Legal Entity in Business for Profit on an SFI filed for the 2013 calendar year; (c neglect to indicate a response to "Business Interests Transferred to Immediate Family Member" on an SFI filed for the 2011 calendar year; and (e) failure to report all sources of income in excess of $1,300.00 on SFIs filed for the 2012 through 2015 calendar years. In Re: Ronald L. Baird, : File Docket: 16 -033 Respondent Date Decided: 9127117 Date Mailed: 1013117 ORDER NO. 1721 Ronald L. Baird ( "Baird "), as a Member of Council for Littlestown Borough ( "Borough "), Adams County, technically violated Section 1103(a) of the Public Official and Employee Ethics Act, 6 § 1103(a), in relation to his participating in official actions of Borough Council to approve bill listings containing payments to his son and/or a business with which his son is associated and his serving as an authorized Borough signatory on Borough checks issued as payment to same. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. 1103(a , occurred in relation to Baird approving bill listings containing payments to %im and�or a business with which he is associated and serving as an authorized Borough signatory on Borough checks issued as payment to same, in that the Borough's obligation to make such payments was contractually pre -fixed and uncontested. Baird did not violate Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), when contracts valued at $500.00 or more were entered into by the Borough and Andrew Baird /Baird Heating & Cooling, Inc. absent an open and public process, in that Baird was neither a party to such contracts nor a principal of the contracting business. Violation(s) of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred in relation to the following deficiencies on Baird's Statements of Financial Interests ( "SFIs ") filed for the 2011 through 2015 calendar years: (a) inaccurate calendar year(s) identified on SFIs filed for the 2013 and 2015 calendar years; (b) neglect to respond to "Governmental Entity" in Box No. 5 on SFIs filed for the 2011 and 2013 calendar years; (c) inaccurate reporting of "Baird Enterprises" in relation to "Office, Directorship or Employment in any Business" as well as "Financial Interest in an Legal Entity in Business for Profit on an SFI filed for the 2013 calendar year; (d neglect to indicate a response to "Business Interests Transferred to Immediate Family Member" on an SFI filed for the 2011 calendar year; and (e) failure to report all sources of income in excess of $1,300.00 on SFIs filed for the 2012 through 2015 calendar years. Per the Consent Agreement of the parties, Baird is directed to make payment in the amount of $1,000.00 payable to the Commonwealth of Pennsylvania and forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. Per the Consent Agreement of the parties, Baird is further directed to make payment to the Pennsylvania State Ethics Commission in the amount of $500.00, representing a portion of the expenses and costs incurred by this Commission in the investigation and administrative prosecution of the instant matter, payable by certified check or money order made payable to the Pennsylvania State Ethics Commission by no later than the thirtieth (30th) day after the mailing date of this Order. Baird, 16 -033 la 21 7. Per the Consent Agreement of the parties, Baird is directed to not accept any reimbursement, compensation or other payment from the Borough representing a full or partial reimbursement of the amount paid in settlement of this matter. 8. To the extent he has not already done so, Baird is directed to file complete and accurate amended Statements of Financial Interests for the 2011, 2012, 2013, 2014, and 2015 calendar years with the Borough, through the Pennsylvania State Ethics Commission, by no later than the thirtieth (30th) day after the mailing date of this Order. 9. Compliance with paragraphs 5, 6, 7, and 8 of this Order will result in the closing of this case with no further action by this Commission. a. Noncompliance will result in the institution of an order enforcement action. BY THE COMMISSION, is o as o a e a, air Vice Chair Mark R. Corrigan did not participate in this matter.