HomeMy WebLinkAbout940 SchweinsbergIn Re: Dean Schweinsberg
Before:
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STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
File Docket: 93- 015 -C2
Date Decided: 09/12/94
Date Mailed: 09/14/94
James M. Howley, Chair
Daneen E. Reese, Vice Chair
Dennis C. Harrington
Roy W. Wilt
Austin M. Lee
Allan M. Kluger
The Investigative Division of the State Ethics Commission
received a complaint regarding a possible violation of the State
Ethics Act, Act 9 of 1989, 65 P.S. §401 et sea. Written notice, of
the specific allegation(s) was served at the commencement of the
investigation. A Findings Report was issued and served, upon
completion of the investigation, which constituted the Complaint by
the Investigation Division. An Answer was filed and a hearing was
waived. A consent agreement was submitted by the parties to the
Commission for consideration which was subsequently approved. This
adjudication of the Commission is hereby issued which sets forth
the individual Allegations, Findings of Fact, Discussion,
Conclusions of Law and Order.
This adjudication is final and will be made available as a
public document fifteen days after issuance. However,
reconsideration may be requested which will defer public release of
this adjudication pending action on the request by the Commission.
A request for reconsideration, however, does not affect the
finality of this adjudication. A reconsideration request must be
received at this Commission within fifteen days of issuance and
must include a detailed explanation of the reasons as to why
reconsideration should be granted in conformity with 51 Pa. Code
§21.29(b).
The files in this'case will remain confidential in accordance
with Act 9 of 1989, 65 P.S. §408(h) during the fifteen day period
and no one unless the right to challenge this Order is waived, may
violate confidentiality by releasing, discussing or circulating
this Order. However, confidentiality does not preclude discussing
this case with an attorney at law.
Any person who violates confidentiality of the Ethics Act is
guilty of a misdemeanor subject to a fine of not more than $1,000
or imprisonment for not more than one year, 65 P.S. §409(e).
Schweinsberq, 93- 015 -C2
Page 2
I. ALLEGATION:
That Dean E. Schweinsberg, as a Supervisor for Center
Township, Butler County, violated the following provisions of the
State Ethics Act (Act 9 of 1989) when he participated in decisions
to hire his son's company, Charles Schweinsberg General Repair,
without an open and public process and when he approved payments to
said company.
II. FINDINGS:
Section 3. Restricted Activities
(a) No public official or public
employee shall engage in conduct that
constitutes a conflict of interest. 65 P.S.
5403(a).
Section 3. Restricted activities
(f) 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 --
P.S. 5403(f).
1. Dean Schweinsberg (Schweinsberg) has served as an elected
Supervisor of Center Township, Butler County, since January,
1992.
2. At Reorganization Meetings of the Board of Supervisors in
1992, 1993 and 1994, Schweinsberg was appointed to the
position of Roadmaster.
Schweinsberq, 93- 015 -C2
Page 3
3. Schweinsberg was also appointed as the Township Vehicle
Inspector in 1992 and 1994.
4. Schweinsberg was first appointed to this position in November,
1991, prior to beginning his service as Township Supervisor.
5. Schweinsberg inspected township vehicles in this position.
6. The township vehicle inspector conducts state inspections on
all township vehicles.
7. At the August 12, 1992, Supervisor's monthly meeting, Dean
Schweinsberg's duties as roadmaster were extended to include
those of "part -time working foreman ", (up to 30 hours /week).
8. Schweinsberg abstained on the vote pertaining to this motion.
9. As "foreman" Schweinsberg would be responsible for the
supervision of the road department personnel and equipment,
and address complaints of residents.
10. Dean Schweinsberg has operated a business known as Dean's Auto
Body, 1165 Sunset Drive, Butler, Pennsylvania 16001, since
approximately 1970.
11. The business is owned by Dean Schweinsberg and his wife,
Joyce.
12. Schweinsberg's residence and business are located at the same
address.
13. Dean's Auto Body is located next to the township garage and
maintenance building.
14. Center Township road crews performed routine maintenance and
some repairs on the township vehicles.
15. Center Township utilized Dean's Auto Body on occasion to
service township vehicles prior to Schweinsberg's election as
Township Supervisor, especially as to emergency breakdowns of
township equipment.
16. The township conducted business with Dean's Auto Body from the
time that Schweinsberg started the business until his election
as Township Supervisor.
17. The work performed was in relation to the township's ten
vehicles which included vehicles operated by the township
water company and fire company.
18. Center Township records reflect that Dean's Auto Body did not
repair township vehicles after Dean Schweinsberg became a
supervisor in January, 1992.
Schweinsbera, 93- 015 -C2
Page 4
19. Charles Schweinsberg
20. Charles Schweinsberg
Body.
is the son of Dean Schweinsber
25. The Agreement is notarized on December 27, 1991.
26. The Agreement became effective on January 2, 1992.
g-
had previously worked for Dean's Auto
21. Charles Schweinsberg General Repair is owned and operated by
Charles Schweinsberg.
22. Charles Schweinsberg General Repair
business in January, 1992.
23. Charles Schweinsberg General Repair is operated from the same
location as that of Dean's Auto Body.
24. Charles Schweinsberg and Dean Schweinsberg entered into a
rental agreement whereby Charles Schweinsberg would be paid a
portion of any work that was subcontracted to him by Dean's
Auto Body. The monthly rental fee was $225.00, which
included: utilities, liability insurance coverage, the use of
major equipment and the use of one stall. Charles
Schweinsberg would provide all other tools necessary to
conduct his business. Charles and Dean Schweinsberg signed
the Agreement on December 27, 1991.
began operating as a
27. In March, 1992, Charles Schweinsberg General
performing repairs on Center Township vehicles.
28. Schweinsberg did not direct Center Township
Charles Schweinsberg General Repair for repair.
29. Charles Schweinsberg General Repair invoiced Center Township
four times during 1992.
30. The invoice dates and amounts are as follows:
Date Amount
March and April, 1992 $ 606.50
May and June, 1992 201.00
August and September, 1992 102.25
October, November and December, 1992 235.00
$1144.75
Repair began
vehicles to
31. Center Township pays bills on a monthly basis.
32. Supervisors approved the payments of bills "subject to audit"
and the bills were approved as a "lump sum" without individual
invoices being listed on the meeting agendas for voting.
33. When the invoices from Charles Schweinsberg to Center Township
were submitted, they were included in the bills list that were
Schweinsberq, 93- 015 -C2
Page 5
approved by the township supervisors that month, but were not
listed as an individual bill on any list provided to the
supervisors prior to voting.
34. Minutes confirm that Schweinsberg voted to pay bill lists on
the following dates:
a. May 13, 1992.
b. June 10, 1992.
c. July 8, 1992.
d. August 12, 1992.
e. September 12, 1992.
f. October 21, 1992.
g. December 9, 1992.
h. January 4, 1993.
35. Schweinsberg voted to approve bills lists in a total amount
for the months in which Charles Schweinberg's invoices were
paid, but said invoices were not itemized on said lists.
36. The bills lists which included the invoices from Charles
Schweinsberg were approved for payment by unanimous vote of
the Center Township Supervisors.
37. Dean Schweinsberg signed the front of the check issued to
Charles Schweinsberg General Repair: check #797, dated
07/09/92, in the amount of $201.00.
38. The payment of the August /September invoice of Charles
Schweinsberg was paid prior to the October, 1992 meeting where
it was approved.
• III. DISCUSSION:
As a Supervisor for Center Township, Butler County, Dean E.
Schweinsberg, hereinafter Schweinsberg, is a public official as
that term is defined under Act 9 of 1989. 65 P.S. §402. As such,
his conduct is subject to the provisions of the Ethics Law and the
restrictions therein are applicable to him.
Initially, it is noted that Section 9 of Act 9 of June 26,
1989 provides, in part, as follows:
This amendatory act shall not apply to
violations committed prior to the effective
date of this act, and causes of action
Schweinsbera, 93- 015 -C2
Page 6
initiated for such violations shall be
governed by the prior law, which is continued
in effect for that purpose as if this act were
not in force. For the purposes of this
section, a violation was committed prior to
the effective date of this act if any elements
of the violation occurred prior thereto.
Since the occurrences in this case transpired after the
effective date of Act 9 (June 26, 1989), we must apply the
provisions of Act 9 to determine whether the Ethics Act was
violated.
Under Section 3(a) of Act 9 of 1989 quoted above, a public
official /employee shall not engage in conduct that constitutes a
conflict of interest.
The term "conflict of interest" is defined under Act 9 of 1989
as follows:
Section 2. Definitions
"Conflict" or "conflict of interest."
Use by a public official or public employee of
the authority of his office or employment or
any confidential information received through
his holding public office or employment for
the private pecuniary benefit of himself, a
member of his immediate family or a business
with which he or a member of his immediate
family is associated. "Conflict" or "conflict
of interest" 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 or his immediate family or
a business with which he or a member of his
immediate family is associated. 65 P.S. §402.
Ia addition, Section 3(f) of Act 9 of 1989 specifically
provides in part that no public official /employee or spouse or
child or business with which he or the 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 /employee is associated unless the contract is awarded
through an open and public process including prior public notice
and subsequent public disclosure.
The issues before us are whether Schweinsberg violated Section
3(a) of Act 9 of 1989 (conflict provision) or Section 3(f)
Schweinsberg, 93- 015 -C2
Page 7
(contracting provision ) as to the allegation that he participated
in decisions to hire his son's business, Charles Schweinsberg
General Repair, without an open and public process and participated
in the approval of payments to that business.
The record reflects that Schweinsberg has served as a Centre
Township Supervisor since January, 1992, as a roadmaster in 1992
through 1994, and as Township Vehicle Inspector in 1992 and 1994.
In a private capacity, Schweinsberg operates a business known
as Dean's Auto Body which is owned by Schweinsberg and his spouse.
Charles Schweinsberg, the son of Schweinsberg, owns and operates
Charles Schweinsberg General Repair which is operated from the same
location as Dean's Auto Body through a rental agreement. Although
Dean's Auto Body did not do repairs on Township vehicles after
Schweinsberg became a Supervisor, repairs on Township vehicles were
done by Charles Schweinsberg General Repair. However, Schweinsberg
did not direct Township vehicles to his son's business.
In 1992, Charles Schweinsberg General Repair submitted
invoices totalling $1144.75 to the Township for vehicle repairs.
Said invoices were submitted with other bills to the Board of
Supervisors who approved the bills in a group without an individual
breakdown or itemization. Schweinsberg did vote to approve such
unitemized bill lists which included invoices from his son's
business. Lastly, Schweinsberg did sign the front of one check
which was issued by the Township in payment to Schweinsberg' s son' s
business.
In applying the provisions of the Ethics Law to these
allegations, we find no violation of Section 3(a) as to the hiring
of Schweinsberg's son's business but a technical violation of
Section 3(f) as to the contracting between Schweinsberg's son's
business and the Township. We also find a technical violation of
Section 3(a) as to the approval by Schweinsberg as to payments to
his son's business.
As to the decision to hire Schweinsberg's son's business, it
is clear that Schweinsberg did not direct that the Township
vehicles be taken for repair to his son's business. Since there
was nb use of authority of office by Schweinsberg as to the
utilization of his son's business, there was no violation of
Section 3(a) as to such hiring. Belli, Order 923.
As to the contracting aspect of the hiring of Schweinsberg's
son's business, there was a technical violation. Charles
Schweinsberg General Repair is a business with which Schweinsberg's
son is associated as that term is defined under the Ethics Law, 65
P.S. §402. The restriction as to contracting applies to the public
official, spouse, child or business with which the public official,
spouse or child is associated. Since Schweinsberg's son is within
the enumerated family members, Section 3(f) would apply and hence
there was a technical violation as to Section 3(f) as to such
hiring which was over $500.00 and was done without an open and
Schweinsbera, 93- 015 -C2
Page 8
public process. Taylor, Order 906; Floyd, Order 929.
As to that part of the allegation regarding Schweinsberg's
participation in the approval of the payment of bills to his son's
business, we find a technical violation of Section 3(a) of Act 9 of
1989. The record reflects that Schweinsberg along with the other
Supervisors took action to approve invoices or in one instance to
sign a check for his son's business. Based upon the above, there
was a technical violation of Section 3(a) of Act 9 of 1989 because
Schweinsberg did participate in such actions which was a use of
authority of office. Juliante, Order 809. In addition, such use
of authority of office resulted in a private pecuniary benefit to
the extent of the profit received by Schweinsberg's son's business
on the repairs of the Township vehicles. We do note that the
action taken by Schweinsberg was merely to approve a group of
unitemized bills which included invoices from his son's business.
In light of the above and given the totality of the facts and
circumstances, we will take no further action in this case.
IV. CONCLUSIONS OF LAW:
1. Dean Schweinsberg, as a Centre Township Supervisor, Butler
County, is a public official subject to the provisions of Act
9 of 1989.
2. Schweinsberg did not violate Section 3(a) of Act 9 of 1989
regarding the hiring of Charles Schweinsberg General Repair,
a business with which Schweinsberg's son is associated, in
that Schweinsberg did not direct the repair of Township
vehicles to that business.
3. A technical violation of Section 3(f) of Act 9 of 1989
occurred regarding the hiring of Charles Schweinsberg General
Repair in that the contract for Township vehicle repairs
between Schweinsberg's son and the Township was in excess of
$500.00 or more and was not awarded through an open and public
process.
4. A technical violation of Section 3(a) of Act 9 of 1989
occurred when Schweinsberg approved invoices of the business
with which his son is associated when said invoices were part
of a group of unitemized bills that were submitted to and
approved by the Board of Supervisors.
In Re: Dean Schweinsberg
File Docket: 93- 015 -C2
Date Decided: 09/12/94
Date Mailed: 09/14/94
ORDER NO. 940
1. Dean Schweinsberg, as a Centre Township Supervisor, Butler
County, did not violate Section 3(a) of Act 9 of 1989
regarding the hiring of Charles Schweinsberg General Repair,
a business with which Schweinsberg's son is associated, in
that Schweinsberg did not direct the repair of Township
vehicles to that business.
2. A technical violation of Section 3(f) of Act 9 of 1989
occurred regarding the hiring of Charles Schweinsberg General
Repair in that the contract for Township vehicle repairs
between Schweinsberg's son and the Township was in excess of
$500.00 or more and was not awarded through an open and public
process.
3. A technical violation of Section 3(a) of Act 9 of 1989
occurred when Schweinsberg approved invoices of the business
with which his son is associated when said invoices were part
of a group of unitemized bills that were submitted to and
approved by the Board of Supervisors.
4. Based upon the totality of facts and circumstances, this
Commission will take no further action.
BY THE COMMISSION,
JAMES M. HO IR