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HomeMy WebLinkAbout873 GericSTATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG. PENNSYLVANIA 17120 In re: James Geric File Docket: 91- 004 -C2 Date Decided: Decemb 10, 1992 Date Mailed: Decemb 15, 1992 Before: James M. Howley, Chair Daneen E. Reese, Vice Chair Dennis C. Harrington Roy W. Wilt Austin M. Lee Allan M. Kluger The State Ethics Commission received complaints regarding possible violations of the State Ethics Law, Act No. 170 of 1978 and Act No. 9 of 1989. 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 held. The record is complete. 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 rifteen 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 §2.38. The files in this case will remain confidential in accordance with Section 8(a) of Act 170 of 1978 and 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. 5409(e). Geric, 91- 004 -C2 Page 2 I. ALLEGATION A: That James Geric, a member of East Pittsburgh Borough Council, Allegheny County, violated the following provisions of the State Ethics Act (Act 170 of 1978), when he participated in actions as a borough councilman to obtain business for Tri- Valley Automotive, a business with which he is associated. Section 3. Restricted Activities. (a) No public official or public employee shall use his public office or any confidential information received through his holding public office r to 'obtain financial gain other than compensation provided by law for himself, a member of his immediate family, or a business with which he is associated. (c) No public official or public employee or a member of his immediate family or any business in which the person or a member of the person's immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair market value of the business shall enter into any contract valued at $500 or more with a governmental body 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. Any contract made 'in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of making of the contract. 65 P.S. §S403(a), (c). And James Geric violated the following provisions of Act 9 of 1989 when he participated and voted to pay bills to Tri - Valley Automotive, a company owned by his brother: Section 3. Restricted Activities (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 P.S. S403(a). Geric, 91- 004 -C2 Page 3 ALLEGATION B: That James Geric, a Council person for the Borough of East Pittsburgh, violated the following provisions of the State Ethics Act (Act 170 of 1978), when you failed to file Statements of Financial Interest for the calendar years 1987 and 1989. Section 4. Statement of financial interests required to be filed. (a) Each public employee employed by the Commonwealth shall file a statement of financial interests for the preceding calendar year with the department, agency or bureau in which he is employed no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. Any other public employee shall file a statement of financial interests with the governing authority of the political subdivision by which he is employed no later than May 1 of each year that he holds such a position and of the year after he leaves such a position. 65 P.S. §404(a). II. FINDINGS: A. PLEADINGS: 1. James Geric serves as a member of the East Pittsburgh Borough Council, Allegheny County, Pennsylvania. a. He has served in said position since January, 1986. b. He served as Chairman of the Public Safety Committee from January, 1986, through December, 1989. c. In January, 1990, he was made Chairman of the Property, Zoning and Ordinance Committee. 2. The Public Safety Committee was responsible for police supplies and equipment, police desk, police and car maintenance. a. The Committee Chairman is responsible for approving bills by initialling same for the entire committee with major bills being approved by the entire committee as well as reporting to the Committee and making recommendations to the full Council. Geric 91- 004 -C2 Page 4 3. Repairs were never put out for bid. a. Bills would include those relating to the police car repairs. 4. The Public Safety Committee has officially been responsible for the maintenance of all police vehicles since May 10, 1988. a. The May 10, 1988 motion to place all Public Safety Department equipment including said vehicles under the Public Safety Committee was made by James Geric. b. The Borough owns two police cars and two trucks. 5. Tri- Valley Automotive is a garage which performs automobile repairs; state inspections; emission inspections; and towing and flatbed service. 6. Tri - Valley Automotive is operated by Patrick J. Geric, 603 Main Street, East Pittsburgh, Pennsylvania 15112. a. Patrick Geric is the brother of James Geric, Councilman. 7. Tri - Valley Automotive, 409 Center Street, East. Pittsburgh, Pennsylvania performed vehicle repair and maintenance service for vehicles owned by East Pittsburgh Borough from 1987 through December 1989. a. Tri - Valley Automotive on South Street, North Braddock, did similar work in 1978, 1980 and 1981. 8. Records of Great American Federal Savings & Loan Association, 4750 Clairton Boulevard, Pittsburgh, Pennsylvania, identify a checking account ( #02- 0200630) for the business known as Tri - Valley Automotive. a. Signatories on the account are Patrick Geric or James W. Geric. 9. Tri - Valley Automotive utilizes a property in North Braddock, to store wrecked vehicles. a. The property is titled as in subfinding (b) in the names of Patrick and James Geric and :was purchased in 1976. 1). Lot and Block #375 -N -192. 2). Location, Terrace Street,, North Braddock. 3). Description, vacant land. Geric, 91- 004 -C2 Page 5 4). Size, 175 x 157.43 x 135. b. Conditions of the deed for this property specify "as tenants in co- partnership for uses and purposes of co- partnership and not as tenants in common ". c. The property is used for the storage of vehicles. 1). Said storage is in conjunction with the operation of Tri- Valley Automotive Towing Service. 2). Storage fees are charged for use of this facility. d. Records of the Recorder of Deeds Office, Pittsburgh, PA show that taxes on this property come to Patrick Geric and James W. Geric, 513 Main Street, East Pittsburgh, Pennsylvania which address was the family home of their parents. 1). The deed for this property includes a Certificate of Residence for James W. Geric and Patrick J. Geric. e. The property is blacktopped, fenced, and secured. 10. At the February 8, 1988, Borough of East Pittsburgh Council Meeting, James Geric acknowledged that the North Braddock property is jointly owned by Patrick Geric and himself, but that was going to be changed in March, (1988). a. The deed transfer was not effected. b. The property is still owned as titled in the deed as indicated in subfinding 9(b). 11. James Geric has driven the Tri - Valley Automotive tow truck. 12. Prior to 1987, the borough towing work was given to OBee's Garage in Turtle Creek Borough owned by Robert Seath. a. When O'Bee's Garage had the towing, they also repaired the borough vehicles although some repairs were sub- contracted to others. 1). = O'Bee's .did not charge the borough for any labor performed on borough vehicles although some labor was performs by sub - contractors. 2). Parts were purchased with a business discount and charged directly to the borough. There was no mark up charged by Obee's on the purchase of new parts. Geric, 91- 004 -C2 Page 6 3). Used parts were supplied at no cost to with the one exception as to a used en b. The relationship between O'Bee's Garage and of East Pittsburgh had existed for more years. c. O'Bee's Garage did not generally repair trucks. the borough gine. the Borough than thirty the borough d. On occasion, other garages in the area would perform repairs on borough vehicles. 13. Minutes of the Borough of East Pittsburgh Council Meetings between January, 1987, and June, 1989, show the following sequence of events, including James Geric's voting and participation, which led up to Tri- Valley Automotive doing certain other business with the borough. a. January 12, 1987: Mr. Patrick Geric, owner' of the Tri - Valley Automotive Garage, addressed council and asked if consideration would be given to him relative to the borough's towing and vehicle repairs since he is a resident of the borough. Chairman Payne stated there is a listing of the borough tower's at the police desk. Mr. Patrick Geric asked if there is a set procedure. Mr. Sharp stated O'Bee's is the first to be called for towing if he is available, Tri- Valley and then Shubock. Chairman Payne stated it would be taken before committee and discussed. Mr. Pribanic stated O'Bee's has been doing repairs to borough vehicles at no cost to the borough and he cannot see how anyone is going to under bid O'Bee's for the repair work. Mr. Sharp agreed with Mr. Pribanic. Present: Absent: b. March 23, Geric, Passmore, Payne, Polacek, Pribanic, Visco, McFeely 1987: Geric, 91- 004 -C2 Page 7 Mr. Patrick Geric addressed council and requested the towing for the borough to be put on a rotation basis between his garage, Tri- Valley, and O'Bee's Garage and a log be kept on each call. Motion by Polacek and Passmore the borough's towing be put on a rotation basis between O'Bee's Garage and Tri- Valley. Roll call: Yeas - Geric, Passmore, Payne, Polacek. Nays:.Mceely, Pribanic, Sharp and Visco. There being a tie vote Mayor Simon cast his vote and voted nay. Motion defeated. Present: Geric, McFeely, Passmore, Payne, Polacek, Pribanic, Sharp, Visco. c. October 12, 1987: Motion by Geric and Berklich the following properly authorized bills be paid which included among others: Patrick Geric police car repairs $48.00 Roll call: Yeas - Geric, Berklich, McFeely, Passmore, Payne, Polacek, Sharp, Visco. Motion carried. Present: Geric, McFeely, Passmore, Payne, Polacek, Visco. Late: Berklich, Sharp. Absent: Pribanic -d. January 11, 198&8: Motion by Geric and Polacek the properly authorized bills be paid which included among others: Patrick Geric Vehicle repairs $253.06 Roll call vote: Yeas - Geric, Payne, Polacek, Ruane, Sharp, Visco, Whitney. Nays - Pribanic. Motion carried. Present: Geric, Payne, Polacek, Pribanic, Ruane, Visco, Geric, 91- 004 -C2 Page 8 Whitney, Sharp. Absent: McFeely e. February 8, 1988: Mr. Patrick Geric addressed council and requested he be considered to do the borough's towing since he is a tax payer. Chairman Payne referred to the March, 1987 minutes in which the motion made to put towing on a rotation basis was defeated. Mr. Whitney stated he was in agreement with Pat Geric to do the towing but not to do the repair work. Mr. McFeely stated just because Pat Geric built the garage does not mean we have to turn the towing over to him. Motion by Whitney to turn the towing in the borough over to Pat Geric. There being no second the motion was not entertained. Motion by Polacek and Ruane to rotate the towing between O'Bee's and Pat Geric. Roll call: Yeas - Payne, Polacek, Ruane. Nays - McFeely, Sharp, Visco, Whitney Abstained - Geric Motion defeated. Mr. (James) Geric stated traditionally, O'Bee's gives monetary Christmas gifts to the police dispatchers and officers. This angered Chief Cassidy who stated O'Bee's donate $5.00 each year and he does not take money from anyone. Mr. (James) Geric stated donations should not be taken from any purveyors. Mr. (James) Geric stated O'Bee's purchased various parts including six batteries; three or four alternators, fan belts and transmission fluid. O'Bee's never came to defend himself or his purchases. He does not have an inspection station. He also received two old police cars worth $9,000.00 in parts. McFeely replied to Councilman Geric's remarks that it was Geric, 91- 004 -C2 Page 9 only his (Geric's) guess as to the value of the parts in the old police cars. The engine in various parts were originally given free to the borough by O'Bee's and he never charges any labor to install the engines in the cars. Council passed and properly voted on the motion to turn the cars over to O'Bee's with the engines he had originally given to the borough. Mr. McFeely asked Pat Geric where he stores the cars which he tows. Mr. Geric stated he has a locked storage area. McF.eely: asked if it was jointly owned by his brother Councilman Geric and himself. Pat Geric replied "yes" but only until March and then he added that the borough was getting free labor from O'Bee's. McFeely agreed that O'Bee's never charged the borough for labor or towing of any borough vehicle. Chairman Payne stated O'Bee's was good to the borough and he never charged enough. Simon stated O'Bee's always did it for nothing. Pat Geric asked who is running the police force? Who stopped the police from coming into Tri- Valley Garage? Mayor Simon stated the police used to stop and drink coffee at O'Bee's. This was stopped before his garage was opened. The police were ordered not to stop at any garage. Whitney asked if Mr. Pribanic takes care of the maintenance relative to the police cars. Councilman Geric stated Wayne Johnson takes care of the cars now. McFeely stated the Mayor is in charge of the desk and if there is any problem with the police cars the desk personnel should contact Mayor Simon. Motion by. Polacek and Ruane the following properly authorized bills be paid: Patrick J. Geric Repairs to vehicle $21.18 (The vote is illegible in the minutes). Present: Geric, McFeely, Payne, Polacek, Ruane, Sharp, Visco, Whitney. Absent:- Pribanic. f. April 11, 1988: Motion by Whitney and Ruane to split the towing of motor Geric, 91- 004 -C2 Page 10 g. vehicles between O'Bee's and Tri- Valley with O'Bee's having the first six months and Tri - Valley the last six months. Under remarks Mr. Pribanic stated the borough has used O'Bee's for the past forty years and there is no need to change. Chairman Payne stated there has been friction but the point is the owner of Tri- Valley is a tax payer of the borough. Roll call: Yeas - Geric, Payne, Ruane, Whitney. Nays - Pribanic, Visco Motion carried. Present: Payne, Pribanic, Ruane, Visco, Whitney, Geric. Absent: McFeely, Polacek, Sharp. July 11, 1988: Mr. Geric reported on behalf of the Public Safety Committee the following: Car number 9 was checked and it is blowing oil out the exhaust. Approximate repair cost would be $350.00. Pressure in the air conditioning unit is slowly being lost; compressor pulley is out of order. Front seat has an 8" hole. Valve stem seals should be replaced, approximate . cost is. $350.00. Motion by Geric and Visco to have the valve stem seals replaced and a used air conditioning compressor purchased for car #9. Motion carried. (Pribanic and Sharp reported as voting no). Motion by Polacek and Ruane upon the request of O'Bee's Garage not to pay the bills submitted for towing the police car. Motion carried. (Geric recorded as voting no). Motion by Polacek and Geric—the following properly authorized bills be paid: Patrick J. Geric Repairs to.cars $1,115.80 Roll call vote: Yeas - Geric, Payne, Polacek, Ruane, Whitney Nays - Pribanic, Visco Geric,, 91- 004 -C2 Page 11 Motion carried. (Whitney questioned staples bill). Present: Geric, Payne, Polacek, Pribanic, Ruane, Sharp, Visco, Whitney. Absent: McFeely h. February 13, 1989: Motion by Geric and Ruane the following properly authorized bills be paid: Patrick Geric Vehicle repairs $186.76 Roll call vote: Yeas - Geric, Payne, Polacek, Pribanic, Whitney, Ruane Nays - Visco Absent: McFeely, Sharp i. March 13, 1989: (James) Geric asked for permission to fix the front seat and purchase a factory mat for car #9. Motion by Geric and Polacek authorizing the Public Safety Committee to make the necessary repairs and purchases for car #9. • Motion carried. Present: Geric, Payne, Polacek, Pribanic, Ruane, Visco, Whitney. Motion carried. Geric stated council should consider purchasing a new police car. Motion by Geric and Polacek authorizing the police committee to get Chevrolet and Ford bid quotations for a new police car. Motion carried. Present: Geric, McFeely, Payne, Polacek, Pribanic, Ruane,'Visco, Whitney. Absent: Sharp April 10, 1989: Geric, 91- 004 -C2 Page 12 Geric reported on behalf of the Public Safety Committee: Received an estimate of $130.00 to repair the radiator on car #8. Motion by Geric and Ruane to have the radiator repaired on car 8 at a cost of $130.00. Motion carried. The interior of car 9 needs the front seat repaired and reupholstered and the car also needs new floor mats. On behalf of the Public Works Committee, Mr. Geric reported that the old borough truck will not pass inspection. It is in need of a new engine, doors and running boards which can be repaired for $750.00. Pribanic stated if we need a second truck we should consider fixing it, if not, get rid of the truck. (No motion or vote). Motion by Geric and Polacek the following properly authorized bills be paid: Patrick Geric Vehicle repairs $689.11 Roll call: Yeas - Geric, Payne, Polacek, Pribanic, Roane, Visco, Whitney. Motion carried. Present: Geric, Payne, Polacek, Pribanic, Ruane, Visco, Whitney. Absent:,. McFeely, Sharp k. May 8, 1989: Motion by Geric and Ruane the following properly authorized bills be paid: Patrick Geric Vehicle repairs $619.11 Roll call: Yeas Geric, Payne, Polacek, Pribanic, Ruane, Visco. Present: Geric, Payne, Polacek, Pribanic, Ruane, Visco. Absent: McFeely, Sharp, Whitney. 1. June 18, 1989: Geric, 91- 004 -C2 Page 13 Motion by Ruane and Geric all properly authorized bills be paid: Patrick Geric Maintenance & repairs $2,386.92 Roll call vote: Yeas - Geric, McFeely, Payne, Polacek, Pribanic, Sharp, Ruane, Visco. Motion carried. Present: Geric, McFeely, Payne, Polacek, Pribanic, Ruane, Sharp, Visco. Absent: Whitney 14. James Geric contacted Council members including Frank Pribanic and tried to garner his support for Tri- Valley Automotive's request to repair borough vehicles or other motions of Geric. 15. There was no official Borough action between March 23, 1987 (when the motion to do business with Tri - Valley Automotive was defeated) and October 12, 1987 (when a motion to pay a bill from Patrick Geric was approved) authorizing the borough to use Tri - Valley Automotive for Borough vehicle repair work with the exception of the approval of a Tri - Valley Automotive bill in May 11, 1987. a. The Borough Council never took any official action authorizing Tri - Valley to do the borough vehicle repair work. 16. Wayne Johnson was employed by East Pittsburgh Borough since 1985: a. As a truck driver /laborer, part of his responsibilities included performing weekly maintenance on borough trucks and cars. b. This maintenance included changing oil, rotation of tires and tune ups. 17. James Geric as Committee Chairperson with the authority and support of the Committee and /or majority of Council's approval directed Wayne Johnson to take the police vehicles to Tri - Valley Automotive for repair work and maintenance. a. At the time that Geric,told him this, he advised Johnson that all such work was to be brought to his brother's garage. b. Tri - Valley Automotive was to do all of the maintenance Geric, 91- 004 -C2 Page 14 work that Johnson did. 18. James Geric as Chairman of the Public Safety Committee told the East Pittsburgh Borough Chief of Police that the police vehicles were to be taken to his brother's garage. 19. At some point prior to June, 1989, former East Pittsburgh Borough Solicitor, Thomas Shearer, advised James Geric that he could vote to pay the bills which included payments to Tri- Valley Automotive only if the following conditions were met: a. Patrick Geric was not a.. member of James Geric's household. b. James Geric had no interest in the business known as Tri- Valley Automotive. 20. Minutes of the Borough of East Pittsburgh Council Meetings between July, 1989, and October, 1990, show the following in regard to James Geric's participation and voting on matters relating to Tri- Valley Automotive and /or Patrick Geric. a. July 10, 1989: Motion by Geric and Whitney the following authorized bills be paid: b. Patrick Geric - Repairs $850.11 Roll call vote: Yeas Geric, McFeely, Polacek, Pribanic, Ruane, Sharp, Visco, Whitney Motion carried. Present: Absent: August 14, 1989: Motion carried. Geric, McFeely, Polacek, Pribanic, Ruane, Visco, Whitney Payne, Sharp Motion by McFeely and Visco the minutes of the July 11, 1989 meeting be received and filed. Motion by Pribanic and Geric the authorized bills be paid: Patrick J. Geric Car maintenance following properly $989.06 Geric, 91- 004 -C2 Page 15 Vote: Yeas - Geric, McFeely, Polacek, Pribanic, Visco, Whitney. Motion carried. Present: Geric, McFeely, Polacek, Pribanic, Visco, Whitney. Absent: Payne, Sharp, Ruane c. September 11, 1989: Motion by Geric and Polacek that all properly authorized bills be paid: Patrick Geric Vehicle repairs $654.31 Roll call vote: Yeas - Geric, McFeely, Payne, Polacek, Ruane, Visco, Whitney Motion carried. Present: Geric, McFeely, Payne, Polacek, Ruane, Visco. Absent: Pribanic, Sharp, Whitney. d. October 9, 1989: Mr. Whitney stated that he received a telephone call from an owner whose car broke down and was charged to have it towed by the Tri- Valley Garage. Mr. Whitney asked if the owner had the right to request who should tow his car. Mayor Simon stated the owner of the car definitely has that right. Motion by Polacek and Geric the following properly authorized bills be paid: Patrick Geric Repairs to vehicles $295.23 Roll call vote: Motion carried. Present: Absent: Geric, McFeely, Payne, Polacek, Pribanic, Visco, Whitney Ruane, Sharp. Yeas - Geric, McFeely, Payne, Polacek, Pribanic, Sharp, Visco, Whitney Geric, 91- 004 -C2 Page 16 e. November 13, 1989: On behalf of the Property Committee Mr. Pribanic reported that he checked the prices of truck tires with four different companies. Motion by Pribanic and Geric to purchase six truck tires from Frydrych Tire Company. Motion carried. Motion by Geric and Polacek the following properly authorized bills be paid: Patrick Geric - Auto maintenance & repairs $328.32 Roll call vote: Yeas - Geric, McFeely, Payne, Polacek, Pribanic, Ruane, Whitney. Motion carried. Present: Geric, McFeely, Payne, Polacek, Pribanic, Ruane, Whitney Absent: Sharp, Visco f. December 11, 1989: Mr. McFeely reported he went over the repair bills and suggest the towing and repairs be turned over to O'Bee's Garage. O'Bee's will not charge labor for minor repairs but only for the parts used. Motion by McFeely and Sharp to turn over the towing and repairs to O'Bee's Garage. Motion carried. Whitney asked to see that O'Bee's Garage offer is put in writing. Motion by Geric and Ruane to table the motion and get an agreement from O'Bee's Garage in writing. Motion carried. (McFeely, Sharp voted no). Whitney stated the average cost for towing is $45.00. Motion by Whitney and Polacek to put a ceiling price of $50.00 on towing within the boundaries of the borough no matter who does the towing. Geric, 91- 004 -C2 Page 17 g- Motion carried. Motion by Whitney and Polacek authorizing the solicitor to revoke the old ordinance on towing. Motion carried. Motion by Ruane and Sharp the following properly authorized bills be paid: Patrick Geric Car repairs $291.35 Roll call vote: Yeas - Geric, McFeely, Payne, Polacek, Ruane, Sharp. Nays - Whitney Motion carried. Present: Absent: January 2, 1990: Geric, McFeely, Payne, Polacek, Ruane, Sharp, Whitney. Pribanic, Visco A letter dated December 30, 1989 from O'Bee's Garage stating he is willing to do the towing for the borough. Also, he will repair all minor repairs free of labor charges, the borough to pay for the parts used. Major repairs will cost the borough half of the usual charge plus parts. Present: Geric, Absent: Ruane, h. January 8, 1990: McFeely, Payne, Polacek, Pribanic, Visco, Whitney. Sharp. McFeely asked that the December 11, 1989 minutes be corrected under "new business" to read that the towing and police car repairs be turned over permanently to O'Bee's Garage. Geric stated since the motion was tabled, the statement "motion carried" should also be stricken. James Geric reported on behalf of the Public Safety Committee. eric, 91- 004 -C2 Page 18 Chief Cassidy reported there is a problem with car 8 and something should be done about it. Patrick Geric stated the anti - freeze is getting into the oil. Any money put into the vehicle is a waste. The car should be scrapped. Ford parts are hard to get. Routine maintenance was done on car 9 daily. He recommended the purchase of a new car. McFeely requested the motion that was tabled at the December 11, 1989 meeting under "new business" granting O'Bee's Garage the towing and repairs permanently be taken from the table. Pat Geric made reference to the letter sent by O'Bee stating he would do minor repairs and major repairs was vague and should be bid on at an hourly rate. Mr. Whitney questioned why Wayne Johnson did not do the minor repairs. Pribanic stated he was told Wayne Johnson was taken off to do other borough work. Pat Geric stated he is willing to bid the repair work for borough vehicles. McFeely stated O'Bee's gives the borough the discount price on parts purchased at Valley Auto Parts. Pat Geric accused McFeely of having a starter purchased at Valley Auto Parts put on his truck and. the borough paid for the starter. McFeely asked how did he know this. Geric replied he had a copy of the bill for the starter and McFeely is the only one associated with the borough who owned a vehicle the starter would fit. Motion by McFeely and Polacek towing and police car repairs are to be turned over permanently to O'Bee's Garage. Roll call: Yeas - Gosik, Pribanic. Nays - Geric, Abstained: Visco Motion carried. McFeely, McGuire, Polacek, Whitney. Motion by Polacek and Geric the following properly authorized bills be paid: geric, 91- 004 -C2 Page 19 Patrick Geric Repairs to vehicles $389.77 Roll call vote: Yeas - Geric, Gosik, McFeely, McGuire, Polacek, Pribanic, Visco, Whitney. Motion carried. Present: Geric, Gosik, McFeely, Polacek, Pribanic, Visco, McGuire. Absent: Payne i. February 12, 1990: Letter dated February 7, 1990 from O'Bee's Garage asking permission to address council to answer any questions relative to the repair and maintenance of police cars. Mr. Geric referred to Mr. Pat Geric's letter in which he submitted his proposal, a 10% saving in the repair work of the police vehicles and desired to bring the matter up for discussion. Motion by Geric to accept Tri- Valley's proposal savings 10% of the labor costs on police car repairs. After meeting outside the meeting hall, McFeely asked if Mr. Seath was still present in the audience and asked him what he would charge for labor. Mr. Seath stated the same as it has always been, he does not charge anything. Mr. Whitney referred to Mr. Seath's original proposal which Mr. Seath stated was amended not to charge anything for labor on a major or minor'size of the job and will use only new parts. No second to the motion so it was not considered. McFeely asked council to refer to the bills for repairs which was $53.67. Motion by McFeely and Polacek the following properly authorized bills be paid: Robert Seath Parts $6.00 Roll call vote: Yeas - Geric, McFeely, McGuire, Payne, Placek, Pribanic, Visco, Whitney. Motion carried. Present: Geric, Gosik, McFeely, McGuire, Payne, Geric, 91- 004 -C2 Page 20 j Polacek, Pribanic, Visco, Whitney. August 13, 1990: Mr. Geric reported Pemar charged $650.00 to remove and replace an automatic transmission complete with a rebuilt converter in the 1986 Caprice police car, O' Bee agreed to do all maintenance at no charge for labor. The transmission could have been benched for $350.00 at Stans in McKeesport. O should have removed and replaced the transmission at no cost. Chairman Whitney stated he called Stans and was quoted a price of $750.00 for a transmission with a converter. Present: Absent: Geric, Gosik, Polacek, Pribanic, Visco, Whitney. McFeely, McGuire, Payne. k. September 10, 1990: Mr. Pat Geric stated the main reason he wished to speak to council is an individual came to council several months ago and stated he would do all repairs to the police cars free of labor charges, the borough is to pay only for the parts used. Mr. Geric added he could not compete with such an arrangement. Last month one of the cars needed a transmission overhauled. The transmission job was sublet to another garage. If the borough is going to do that then he wants his month's towing business returned to him. He thinks this is a fair request since he backed away from the new arrangement. He said he has lived in the borough for many years, participating in borough affairs, answering fire whistles and participating as much as he can. So, why should he be discriminated against. McFeely stated he would explain the situation as follows: He was informed the transmission was in bad shape so he contacted Mr. Visco and Mr. Whitney who made several phone calls and the cheapest 'price he - could get was $700.00 for this type of transmission. This is a police package transmission. The committee decided to have the work done for $650.00. Earlier this month there was an alternator and glass broken on the police cars which were replaced at no cost to the borough. Geric, 91- 004 -C2 Page 21 Acting Chairman McGuire stated council would take the request under advisement. Mr. Geric stated he did not want a fast shuffle. Mr. James Geric stated Pat feels there is a discriminatory action being taken against him. It is a violation or a breech of verbal contract by Mr. O'Bee or Mr. Seath who said he would do the labor at a zero charge. If he would have pulled the transmission there would have been a savings of $350.00 to the borough. McFeely stated a second time it is a police package transmission and the lowest price Chairman Whitney could get was $700.00. Acting Chairman McGuire asked for a motion relative to the situation but received no response. Motion by Visco and Geric to override the motion passed January 9, 1990 granting all the towing and repairs to O'Bee's Garage and split the towing, giving Pat Geric towing for a period of six months. Mr. McFeely stated Mr. Jim Geric can not second the motion or vote on the motion as it is a conflict of interest according to the Ethics Commission. Motion by Pribanic and McFeely to table the motion. Roll call: Yeas - Gosik, McFeely, McGuire, Pribanic. Nays - Geric, Visco. Motion to table carried. Present: Absent: 1. October Geric, Gosik, McGuire, Pribanic, Visco, McFeely. Payne, Polacek, Whitney. 8, 1990: Mr. McFeely asked the solicitor if he checked about conflicts of interest. Mr. Shearer stated the Act has been amended on the date you cited to make it improper fora councilman to vote on any matters effecting his brother. They did this by including brothers and sisters and made them part of the immediate family. Present: Geric, McFeely, McGuire, Polacek, Pribanic, Visco, Whitney. Geric 91- 004 -C2 Page 22 Absent: Gosik, Payne 1). From that date forward, James Geric abstained on matters involving his brother Patrick or the business. 21. Invoices were submitted by Tri- Valley Automotive for a month at a time and were approved at the following month Council Meeting. a. James Geric as Chair of the Public Safety Committee approved and initialed invoices from Tri - Valley Automotive. b. This was usually done on a monthly basis approximately 30 minutes before the public meeting, however, James Geric did initial and approve individual invoices from Tri - Valley. c. This was done from December, 1987 through December, 1989. 22. Each Committee Chairman received a folder with the bills pertaining to his committee, the night of the council meeting. 23. Records of the Borough of East Pittsburgh include the following invoices submitted for payment by Tri - Valley Automotive, a business owned by Patrick Geric, between December, 1987, and December, 1989. a. November - December, 1988 - $253.06 11/20/87 - 1976 Ford dump truck 12/19/87 - Car 8 1/5/88 - Car 8 1/5/88 - Car 8 ($8.00) Car 9 ($21.80) 1/4/88 - 1983 Ford 1/8/88 - Car 9 b. January, 1988 - $231.18 1/13/88 - 1975 Ford Tk 1/22/88 - 1975 Ford tk c. February, 1988 - $237.30 4/22/88 - Car 9 3/1/88 1986 Ford tk - $ 20.00 - $ 18.80 - $ 21.80 - $ 29.80 - $114.20 - $ 48.46 - $ 67.60 - $163.58 - $208.80 - $ 28.50 d. May, 1988 - $18.00 6/9/88 Car 8 - $ 18.00 e. June, 1988 - $186.00 Geric, 91- 004 -C2 Page 23 1989 5/12/88 1976 Ford Tk - $186.00 f. July, 1988 - $1,115.00 6/10/88 Car 8 6/30/88 Car 8 7/5/88 Car 8 7/5/88 Car 9 g. August, 1988 - $268.30 7/30/88 Car 8 7/23/88 Car 9 h. September, 1988 - $94.75 8/16/88 Car 9 - $ 94.75 i. November, 1988 - $166.90 9/26/88 Car 8 9/26/88 Car 9 10/24/88 Car 8 j. December, 1988 - $478.27 11/15/88 Car 8 11/23/88 Car 9 12/9/88 Car 8 k. February, 1989 - $186.76 2/5/89 Car 9 2/7/89 Car 8 1. March, 1989 - $689.11 3/14/89 Car 8 3/16/89 86 Ford dump 3/17/89 86 Ford dump 3/18/89 Car 8 3/31/89 Car 9 4/3/89 Car 9 4/3/89 Car 8 4/4/89 Car 9 m. April, 1989 - $619.11 Monthly Maintenance Car 8 and 9 4/6/89 Car 9 4/10/89 76 Ford dump 4/19/89 Car 9 4/19/89 Car 8 4/21/89 Car 8 4/22/89 Car 8 4/24/89 Car 8 4/28/89 Car 9 - $ 33.60 - $989.90 - $ 49.80 - $ 42.50 - $ 65.60 - $191.30 - $ 14.00 - $ 14.00 - $138.90 - $ 39.95 - $357.37 - $ 80.95 - $ 40.65 - $126.11 - $ 50.35 - $ 54.77 - $ 57.90 - $ 45.24 - $ 56.10 - $227.00 - $ 15.30 - $182.45 - $ 9.50 - $ 15.05 - $ 88.98 - $ 24.90 - $ 82.56 - $281.66 - $ 40.30 - $ 40.50 - $ 35.66 Geric, 91- 004 -C2 Page 24 n. May, 1989, $2,386.92 Monthly Maintenance 4/8/89 Car 9 5/2/89 Car 9 5/14/89 76 Ford dump 5/14/89 76 Ford dump 5/19/89 Car 8 5/30/89 Car 9 5/30/89 Car 8 o. June, 1989 - Monthly 6/3/89 6/3/89 6/5/89 6/7/89 6/8/89 6/9/89 6/9/89 p. q. $850.11: oil Car 8 and 9 - Car 9 .: 76 Ford dump - Car 8 86 Ford dump Car 8 Car 9 Car 8 July 1989 - $987.06 Monthly oil Car 8 and 9 7/8/89 - Car 8 7/14/89 - Car 8 7/18/89 - Car 8 7/31/89 - Car 8 August, 1989 - Oil, etc 8/2/89 8/3/89 8/18/89 8/20/89 8/20/89 8/21/89 $654.31: Car 8 & 9 - Car 8 - Car 9 Car 9 Car 8 Car 9 - Car 9 r. September, 1989 - $295.23: Monthly fluids -Car 8 & 9 9/2/89 - Car 9 9/5/89 - Car 9 9/26/89 - Car 9 9/29/89 - Car 9 s. October 1989, - $328.32: Monthly oil, fluids Car 8 & 9 10/6/89 - Car 9 10/12/89 ,- Car 8 10/16/89 - 86 Ford dump 10/24/89 - 76 Ford dump 10/31/89 - Car 8 - $ 13.30 - $428.48 - $ 93.40 - $750.00 - $938.72 - $ 82.47 - $ 31.91 - $48.64 - $ 25.20 $ 65.62 $160.80 $ 69.40 $348.21 - $ 92.21 - $ 60.61 - $ 28.00 - $ 20.90 - 143.36 - 87.35 565.20 170.25 - $ 13.10 $ 94.60 - $261.70 - $ 24.71 - $ 19.00 - $148.60 - $ 92.60 - $ 19.95 $ 31.08 $119.40 - $ 36.40 - $ 88.40 - $ 19.00 - $ 33.20 - $ 28.00 - $147.86 - $ 86.76 - $ 13.50 Geric, 91- 004 -C2 Page 25 t. November, 1989 - $291.35: Monthly fluids -Car 8 & 9 11/1/89 - Car 8 11/7/89 - Car 8 11/21/89 - Car 8 December, 1989 - $389.77: Monthly fluids -Car 8 & 9 12/1/89 - Car 8 12/1/89 - Car 8 12/7/89 - Car 8 - $ 11.40 - $ 31.10 - $217.75 - $ 31.10 - $ 7.60 - $288.17 - $ 51.60 - $ 42.40 Total $7,678.05 24. The total cost of all vehicle repair work performed by Tri - Valley Automotive between July, 1989, and December, 1989 was $2,946.04. a. A total for all of 1989 was $7,678.05. b. The total for 1988 was $3,009.96. c. The total for November and December, 1987, was $86.80. d. Towing and police car repairs were transferred permanently to O'Bee's Garage in January, 1990. 25. Council person James Geric as Chairman of the Public Safety Committee initialed, as approval for payment, all of the groups of invoices submitted by Tri- Valley Automotive between July, 1989, and December, 1989. 26. Records of the Borough of East Pittsburgh include checks paid to Patrick J. Geric for repairs performed on borough vehicles between December, 1987, and December, 1990. a. All of the checks were made out to Patrick J. Geric, 409 Center Avenue, East Pittsburgh, Pennsylvania. b. All of the checks are stamped for "deposit only Tri - Valley Automotive (02020063 -0)." James Geric has signature authority for this account. c. The following checks were deposited at Great American Federal Savings & Loan, 4750 Clairton Boulevard, Pittsburgh, Pennsylvania 15236. These checks correspond with the monthly balance due Tri - Valley Automotive. (See Finding 24). Date Check # Amount 9/23/87 00552 $ 48.00 1/14/88 00701 253.06 eric, 91- 004 -C2 Page 26 2/10/88 00753 231.18 5/12/88 00888 237.30 6/15/88 00921 18.00 6/17/88 00940 186.00 7/13/88 00969 1,115.80 8/10/88 01008 268.30 Date Check # Amount 9/4/88 01049 94.75 11/16/88 01127 166.90 12/15/88 01167 478.27 2/16/89 00160 186.76 4/13/89 00248 689.11 5/10/89 00291 619.11 6/14/89 00298 2,386.00 7/12/89 00350 850.11 8/17/89 00394 989.06 9/15/89 00435 654.31 10/12/89 00483 295.23 11/15/89 00526 328.32 12/13/89 00573 291.35 1/12/90 00116 389.77 3/23/90 00233 363.70 d. All of the monthly totals whereby payment is approved bear the handwritten initials "JWG" or "OK JWG." 27. Invoices from Tri Valley Automotive show that the following amounts were charged for labor between May, 1988 and December, 1989. 1988 1989 Month Monthly Labor January $ 238.00 April $ 38.00 May $. 175.00 June $ 391.00 July $ 145.00 August $ 26.80 September $ 28.00 October $ 92.00 November $ 74.00 December $ 14.00 Total: $1,221.00 Total: $11,140.39 Genic, 91- 004 -C2 Page 27 Total Labor Charges: 28. Invoices on file at the Borough of East Pittsburgh indicate that Tri- Valley Automotive charged the borough for repair work in the following manner. a. Labor rate: $20.00 /hour b. Parts: List price or more than list. 1). Patrick Geric usually purchased parts for use on the borough vehicles at a discounted price or wholesale cost. c. Some used parts were sold to the borough at a profit. 29. Between March and December 1, 1989, as shown on the Tri - Valley Automotive invoices: Substantial and Major repairs were preformed by Patrick Geric even though the mileage did not increase dramatically. a. Police car #8 Date Mileage 12/19/87 1/5/88 1/5/88 6/9/88 February March April May June July August September October November December 1989 Total: not listed not listed not listed not listed 6/10/88 not listed 6/30/88 126,841 7/5/88 127,013 $ 108.00 $ 157.00 $ 480.00 $ 128.00 $ 340.50 $ 140.00 $ 164.00 $ 146.00 $ 146.00 $ 40.00 $ 152.00 $2,001.00 $3,222.00 Repair repair wipers replace if headlight assembly and focus R &R and Patch repair head lamp circuit in low and high beam Repair Battery holder soddering wire for main circuit.two H.O. end term /flange R &R engine assembly R &R crank shaft, replace Repair oil cooling circuit Geric, 91- 004 -C2 Page 28 7/15/88 127,750 7/18/88 128,028 1/16 - 20/88 not listed 7/30/88 128,588 9/26/88 131,375 10/24/88 not listed 11/15/88 12/9/88 2/7/89 3/14/89 3/18/89 4/3/89 4/19/89 4/21/89 4/22/89 4/24/89 5/19/89 5/30/89 6/5/89 6/8/89 7/8/89 7/14/89 7/18/89 7/31/89 8/2/89 8/20/89 10/31/89 11/1/89 11/7/89 11/21/89 12/1/89 12/7/89 b. Car #9 Date 1/5/88 134,771 136,016 137,691 not listed 38,848 not listed not listed 39,422 not listed not listed 40,351 41,142 41,497 41,547 43,144 not listed not listed not listed 44,550 45,075 47,075 not listed 47,290 48,499 48,785 49,214 Mileage 138,950 hoses 1 qt. oil 1 qt. oil 4 qt. ATF $1.90 ea. Repair alternator, replace voltage reg. wiring, oil Rotate tires, install new tires and balance front Replace line assembly for transmission cooler, seal kit, fluid, tire Replace parking brake; vacuum control switch Repair battery, chk, cooling Repair power steering, leaking; housing; battery holder; air cleaner; Pressure check cooling system replace hose Replace lower radiator hose Check fluids Repair blower motor and wiring Replace heater core & radiator Recharge air conditioning unit Replace door lock pivot Repair PA system Replace ignition switch Repair wiring, replace voltage regulator Replace front brake caliper & hoses Replace battery & regulator Replace weather striping Replace carburetor Replace water pump Replace front brakes Tire repair, adjust brake Change, repair tire Replace headlight Replace Exhaust Replace right low beam Replace tie rod & control arm shaft, rear brakes Replace universal joint Repairs Repair stop lamps, R &R housing plug, spare tire Gepic, 91- 004 -C2 Page 29 1/8/88 139,008 4/22/88 144, 859 7/5/88 not listed 7/16 -20/88 not listed 7/23/88 150,131 8/16/88 9/26/88 11/23/88 2/5/89 3/31/89 4/3/89 not listed 154,058 155,536 not not not 4/4/89 164,840 4/6/89 not listed 4/8/89 165,136 4/19/89 not listed 4/28/89 166,474 5/2/89 166,771 5/30/89 168,659 6/3/89 168,721 6/9/89 169,287 8/3/89 171,858 8/18/89 172,935 8/20/89 173,002 8/21/89 173,150 9/2/89 174,106 9/5/89 174,472 listed listed listed 9/26/89 not listed 9/29/89 176,422 10/6/89 176,974 12/1/89 178,957 12/7/89 179,071 c. 1986 Ford truck Date Mileage 3/17/87 not listed Lube, change oil repair spot light Inspection, replace steering center link, idler arm R &R 4 wheel adj. lubricate oil, filter repair stop lamps 4 qts. of oil $1.90 ea. Repair power steering R &R pump assembly, hoses Voltage output; battery tray install battery Rotate tires, install new tires balance on front Repair hood damage; replace alternator, assembly, replace battery system, replace fluids Replace both low beams; lamps Replace window regulator Replace rear brakes, resurface drums, fix parking brake re- lease Replace oxygen sensor Repairs to lights Replace radiator and upper and lower hose Repair headlights Lube and oil change Replace starter Repair stop light switch Repair lock and switch Mount tires /change oil Replace weather striping, repair spot lamp Lube and oil change Replace starter Replace brake pads Repair stop light Replace steering assembly bearing Repair wiring spot lamp Replace heater hose Repair replace lights Repair dome light wiring Reline rear brakes Repairs State Inspection eric, 91- 004 -C2 Page 30 d. 11/20/87 1/13/88 1/22/88 5/12/88 6/7/89 not listed not listed not listed not listed not listed 10/16/89 12,784 1/8/90 not listed 1976 Ford dump Date 5/12/88 not listed 4/10/89 40,368 5/14/89 47,597 6/3/89 not listed 10/24/89 49,495 a. Car No. 9 Repair Mileage Repair rear brakes Resurface drums Fix parking brake Release State Inspection replace high pressure house on p/s pump R &R exhaust pipe, R &R steering box, pitman arm R &R intake manifold; both cylinder heads, exhaust flange fluids Flush fuel tanks and replace parking brake cable and control module Replace tie -rod ends Replace belts and hoses Repairs R &R intake manifold gaskets repair flange gasket Replace fuel pump Replace engine, belts, hoses clutch, radiator, exhaust State Inspection, stop light repair State Inspection, adjust brakes e. James Geric questions subfindings (a) through (d) based upon variances in mileage. 30. Virtually every major system was replaced in car #8 during the above time period. a. James Geric questions whether every major systems was replaced and asserts that several major repairs were made. 31. A number of the repairs performed by Tri- Valley Automotive to the borough's vehicles appear to be repetitive including: Date Mileage 4/3/89 64,800 Genic, 91- 004 -C2 Page 31 Reline rear brakes Replace starter Replace starter Replace upper & lower hoses Replace heater hose b. Car No. 8 Repair Replace voltage regulator 7/30/88 128,588 Replace voltage regulator 6/5/89 141,497 Replace battery & regulator 7/8/89 143,144 Replace front brake caliper 6/8/89 141,547 Replace front brakes 8/2/89 144,550 Repair battery holder 6/10/88 not listed Repair battery hold down 7/7/89 not listed 32. Three of the four borough vehicles had cooling system work performed within one month including the replacement of radiators as follows: Date Vehicle Repairs 3/14/89 Car 8 Repairs pressure tests system and replace hose 3/18/89 Car 8 Check system and replace hose 4/8/89 Car 9 Replace radiator 4/21/89 Car 8 Replace " radiator, replace heater core 5/14/89 1976 truck Replace radiator 33. Invoices from Tri- Valley Auto to East Pittsburgh Borough indicate headlight and wiring repairs being performed on East Pittsburgh Borough vehicles on the following occasions: 3/16/89 10/24/89 6/5/89 7/8/89 11/1/89 11/21/89 4/3/89 1986 Ford Repair lights and turn signal 1976 Ford Truck Car #8 Car #8 Car #8 Car #8 Car #9 12/7/89 79,071 5/2/89 66,771 8/20/89 73,002 4/8/89 65,136 9/29/89 76,422 Date Mileaae Repair lights Repair lights, wiring and voltage regulator Replace battery and voltage regulator Replace headlight Replace low beam Replace turn signal switch eric, 91- 004 -C2 Page 32 4/6/89 4/19/89 5/30/89 8/3/89 9/2/89 9/26/89 10/6/89 12/1/89 Car #9 Car #9 Car #9 Car #9 Car #9 Car #9 Car #9 Car #9 Repairs to lights Replace sealed beam Repair stoplight switch Repair spot lamp Repair stop light Repair spot light, wiring and dash light Repair and replace lights Repair dome light wiring 34. Tri- Valley Automotive performed work on the Borough of East Pittsburgh's 1976 Ford truck in May, 1989, which was initially proposed as a $750.00 repair job, and resulted in $1,639.03 worth of repairs and a $50.00 overcharge to the borough. a. At the April 10, 1989 Council meeting, James Geric, reporting on behalf of the Public Safety Committee, advised that the old borough truck would not pass inspection. It needed a new engine, doors and running boards which can be repaired for $750.00. No motion or vote was taken. b. A May 14, 1989 Tri - Valley Automotive invoice lists the following repairs to the 1976 borough Ford truck: Install engine assembly Transfer necessary parts, adjust to spec's. 1 engine $750.00 Labor included Parts only, no labor for engine 1 P.S. Belt $ 13.60 1 Alternator belt 12.10 1 Upper radiator hose 9.46 1 Lower radiator hose 5.60 3 gals. coolant 9.00 ea. 27.00 10 hose clamps @ 1.05 10.05 4' 5/8 H hose @ .80 3.20 4' 3/4 H hose @ .85 3.40 8 qts. H.D. oil @ 1.90 15.20 1 H.D. filter 8.21 1 clutch plate 1 pressure plate 1 bry 1 sil APV 1 Reconditioned radiator Old radiator was not repairable 1 exhaust Y pipe 2 pcs. 2 clamps @ 3.60 141.16 249.10 39.90 4.10 248.10 69.10 22.10 7.20 $1,688.72 Geric, 91- 004 -C2 Page 33 c. The total $1,688.72 is $49.69 more than the correct total which should be $1,639.03. 1). James Geric asserts the above error was not noticed by either Tri- Valley Automotive or the Borough Secretary. d. James Geric initialed, as approval for payment, the group of invoices which included the work on the 1976 Ford truck. e. James Geric voted to approve the bills (total $2,386.92), which included the truck repairs, at the June 18, 1989 Council meeting. This included payment of the $49.69 overcharge which was never refunded. f. Parts used by Patrick Geric in the repair of the borough truck were used parts from a tow truck which he owned. The body of the tow truck was junk, the mechanical parts, with 35,000 miles or less on them, were usable. The used parts include, but may not be limited to: 1 clutch plate $141.16 1 pressure plate 249.10 1 throw out bearing (bry) 39.90 1 radiator 248.10 1 engine 750.00 $1,428.26 to recondition radiator 100.00 - $1,328.26 Profit 35. Tri- Valley Automotive invoices, on file with the Borough of East Pittsburgh show that the borough was charged for mounting and balancing tires on both cars the day after tires were purchased at Goodyear. a. On June 9, 1989, Tri - Valley Automotive charged the borough $28,00 for the mounting and balancing tires for car 8. b. On June 9, 1989, Tri - Valley Automotive charged the borough $28.00 for the mounting and balancing of four new tires for_car 9. c. An invoice from the Goodyear Auto Service Center, Jonet Plaza Shopping Center, Monroeville, Pennsylvania, dated 6/8/89, shows that 4 Eagle GT tires were purchased at $46.62 each, total $186.48. 1). The price of the tires includes mounting. Geric, 91- 004 -C2 Page 34 2). Goodyear charges $7.00 to balance each tire. d. Borough records show no other purchase of tires around 6/9/89. e. A second Goodyear Auto Service Center invoice, dated 10/12/89, show the purchase of 4 new tires for car #8. f. A Tri- Valley Automotive invoice, dated 10/12/89, reflects a $28.00 charge for the mounting and balancing of four new tires for car 8. 36. Tri - Valley Automotive charged the borough of East Pittsburgh for mounting and balancing eight tires, even though only four tires were purchased. a. James Geric approved Tri - Valley's invoices for payment, which included the additional balancing charge. b. Tri - Valley mounted and balanced the tires even though the Goodyear Service Center could have done this work. Tires are normally mounted and balanced at the time of purchase. 37. James Geric instructed borough employees to pick up the tires and take them to Tri- Valley to be mounted and balanced. a. Rear brakes were installed on 4/3/89 and again on 12/7/89 (14,000 miles). b. Front brake pads were replaced on car #8 on 8/2/89; and on car #9 on 8/20/89. 38. Tri - Valley Automotive records determined that the Borough of East Pittsburgh was charged for the following parts for which Tri - Valley has no purchase record: Price Invoice date Vehicle Part Charged 3/16/89 1986 Ford Turn Signal $ 4.87 3/31/89 Car #9 Window regulator Guide 14.40 1 ADV (unknown Part) 3.70 4/3/89 Car #9 Brake release parts 14.90 Pedal pads 6.90 Rear brake shoes 39.90 4/4/89 Car #9 Oxygen Sensor 64.99 4/10/89 1976 Ford Truck Fuel Pump 39.90 4/19/89 Car #8 Wiring harness 8.48 Genic, 91- 004 -C2 Page 35 4/21/89 4/22/89 4/24/89 4/28/89 4/8/89 5/2/89 5/14/89 5/30/89 5/30/89 6/3/89 6/3/89 6/5/89 6/7/89 7/8/89 7/14/89 8/2/89 8/3/89 8/20/89 8/21/89 9/5/89 9/26/89 9/29/89 10/16/89 10/24/89 12/1/89 12/7/89 12/7/89 1/4/90, 39. Patrick Geric borough vehic Car #8 Heater Core 66.66 Used radiator 75.00 Car #8 Freon 8.40 2 0 -rings 1.80 Flange nut 2.10 Car #8 Lock pivot 4.90 Used door handle 6.00 Lock rod 5.60 Car #9 Pedal pad 5.40 Sil adv (unknown part) 2.75 Car #9 Radiator 352.59 Car #9 Rebuilt starter 69.40 1976. truck Clutch Plate 141.16 Pressure Plate 249.10 B 39.90 Engine 750.00 Car #8 Ignition switch 28.64 Car #9 Stop light switch 12.91 Car #9 Lock 22.80 Switch 14.82 Ford dump Light assembly 39.40 Light switch 9.60 Car #8 HD Regulator 39.60 Ford dump Brake cable 39.10 Control module 130.10 Car #8 Battery 66.95 Regulator 30.31 Solenoid 14.10 Car #8 Weather striping 59.25 Car #8 Brake pads 48.60 Car #9 Weather striping if 79.40 Weather striping rf 79.40 Car #9 Rebuilt high torque Starter 124.60 Car #9 Brake pads 48.60 Car #9 Upper bearing kit 28.60 Lower bearing kit 10.80 Spot lamp 16.40 Heater valve 28.9 Tie - rods /drag link 111.86 Car #9 Car #9 Ford Truck 1976 Ford Truck Car #8 Car #8 Car #9 Not listed Rear seal Brake lining Universal joint Brake lining Hardware kit Unknown Part 19.61 33.60 14.40 39.40 19.40 26.90 would determine what repairs were needed on the les. Geric, 91- 004 -C2 Page 36 a. James Geric had instituted a general maintenance program whereby the vehicles would be brought to his brother's garage on a daily basis. b. Based on this daily review, Patrick Geric would initiate work on the vehicles. 40. The costs to the borough for the repair of borough vehicles increased after the time that Tri- Valley Automotive started to do the work. The following findings relate to Allegation B. Prior Findings are incorporated herein by reference as per the pleadings. 41. Statements of Financial Interest on file with the Borough of East Pittsburgh Secretary, for James W. Geric indicate the following: a. Filing date: February 21, 1989 For the year: 1989 Source of Income: Duquesne City Schools, Grant Street, Duquesne, Pennsylvania All other Financial Interest Categories: None b. Filing date: March 7, 1985 For the year: 1985 (Candidate) Source of Income: Duquesne City Schools All other Financial Interest Categories: None 42. A statement provided by Borough Secretary, Edward Ruane, dated October 7, 1991, certifies that Ruane reviewed the Statements of Financial Interest on file at the borough office and determine that two statements are on file for Mr. James Geric: March 7, 1985 and February 21, 1989. 43. Records of the Borough of East Pittsburgh show that James W. Geric •filed Statements of Financial Interest in 1985 and in 1989, the two years that he was a candidate for office. 44. Records of the Borough of East Pittsburgh indicate that James Geric did not file Statements of Financial Interest for the following years: 1987 - for 1986 1988 - for 1987 1990 - for 1989 1991 - for 1990 45. An audit of the Statements of Financial Interests on file with the Borough of East Pittsburgh secretary, showed that in the years 1988 and 1990, only the engineer filed. Geric, 91- 004 -C2 Page 37 B. TESTIMONY: 46. Frank Pribanic is retired but is employed part -time by the Penn Water Board. a. Pribanic served as a Councilman for East Pittsburgh Borough for 15 years from 1975 or 1976 through February, 1991. b. James Geric served on Council for 8 or 10 years while Pribanic served on Council.. (1) James Geric had a brother Patrick Geric who was a mechanic and performed inspections and repairs out of the Tri- Valley Garage. c. From 1987 through 1990, the Borough had two police cars which were used on a daily basis. (1) The Borough also had two dump trucks. d. When vendors rendered services to the Borough, invoices would be submitted to the different committees that would review particular types of bills. (1) A committee chairman would review the bills for his committee. (2) A folder of bills would be supplied by the Borough secretary. If the bills were okay after a review, the bills would be signed and returned to the Borough secretary. (4) Council could look at any bills which would be reviewed /approved on the monthly agenda. The above bill approval process was in place in the Borough between 1987 and 1990. e. The Borough used Obee's Garage between 1980 and 1987 for the repair and service of police automobiles. (1) In the 1980's the garage work was changed and given to Patrick Geric, Tri- Valley Auto Services. f. No Borough action was taken that resulted in Tri - valley doing repairs on Borough vehicles. g. Borough Council took action to rotate the towing and (3) (5) Geric, 91- 004 -C2 Page 38 j truck repairs of vehicles on a six -month basis. (1) Obee did the towing for forty years and repairs with the only cost being for parts. (2) Patrick Geric came to Borough Council to seek some of the Borough business. Council agreed to the six month rotation after three or four requests from Patrick Geric as to the towing /repair business. h. When Obee performed repairs, he did not charge for labor nor make any profit on parts. i. After Council moved to its new location, the police sent the vehicles to Patrick Geric to do the work even through Patrick Geric was not authorized to do the work. (1) Pribanic became aware of Tri- Valley repairs after big repair bills came into the Borough. (2) The care of Borough cars /trucks was under the jurisdiction of Pribanic's committee, Public Property. (3) Pribanic raised the issue at Council that he was not notified that work was being done by Tri - Valley. (4) The bills for repairs from Tri - Valley were "sky high" and "outrageous" compared to the bills from Obee which were "very, very small ". James Geric at a Council meeting indicated that his brother should perform the work for the Borough. (1) James Geric approached Pribanic outside a Council meeting and requested Pribanic to get work to Patrick Geric. (3) k. After Tri- Valley started to do the work, the issue of costs was raised at Council which took the work from Patrick Geric and gave it to Obee. 1. At a December 11, 1989 Council meeting, a motion was made to turn over towing /repairs to Obee. (1) James Geric moved to table the motion. (2) Geric's motion carried. Gstric 91- 004 -C2 Page 39 m. At a February 12, 1990 meeting, James Geric referenced a letter of Patrick Geric submitting a proposal for a 10% saving in repair work. (1) A motion which motion failed due Geric to oa accept the h proposal a second. n. Pat Geric noted that the Borough's Ford was not fit to be on the road but Obee repaired the car which ran for another year. o. At a 12/11/89 council meeting, Councilman McFeely requested that the 12 /11/89 motion tabled by James Geric be taken from the table. (1) A motion was made by McFeely and Polacek to permanently turn towing /police car repairs to Obee's garage which motion carried with Geric and Whitney voted naye. p. When Pat Geric did repairs, there were delays in the Borough getting the vehicles back whereas Obee promptly did repairs. q. Pribovic questioned Pat Geric that his repair charges were too high. (1) Pat Geric responded that he did good work. 47. Michael Trbovich served as a councilman for East Pittsburgh Borough for twenty years. a. He served as Borough secretary from January 1954 until March, 1991. b. Trbovich also served as Borough treasurer for one year. c. As secretary, Trbovich handled correspondence, prepared the minutes and received bills from vendors. (1) From 1987 through 1990, the Borough had a process of reviewing /approving bills whereby bills would be submitted to each committee chairman for approval by initialling or signing his name to the bills. (2) Bills would be listed and read so that every Council Member was aware. (3) The committee chairman would return the bills, after initialling or signing, to Trbovich. Geric, 91- 004 -C2 Page 40 g. ( (a) If the bills were approved, Trbovich would pay them. d. Several invoices of Tri- Valley contain the initials of James Geric or Pribanic. e. Motions of Council to pay "properly approved" bills meant bills which had the approval of a chairperson. (1) All bills had to be approved by Council for payment. f. As to giving towing/repairs to Patrick Geric, the discussion at Council was in the context of Patrick Geric being the brother of James Geric and a taxpayer in the Borough. A councilman did not have the power to order Trbovich to pay a bill. h. Council at one point split towing/repairs between Patrick Geric and Obee on a six month basis. i. James Geric spoke at Council meetings in support of his brother Patrick Geric getting business. In response to an inquiry by .Councilman McFeely about James Geric's interest in Tri - Valley, James. Geric responded that he was severing the partnership. (1) James Geric denied that he was a partner in the Tri- Valley Garage. 48. Victoria Polacek is a Council Member for East Pittsburgh Borough for the last eight years. a. East Pittsburgh Borough has a process for paying bills. (1) Before a meeting each chairman will receive bills for that particular committee. (2) The bills are reviewed by the chair of each committee. The Council president asks problems with bills. A committee object if he If there are if - there are any person or Council Member will has a problem with a bill. no problems with bills, a motion Geric, 91- 004 -C2 Page 41 is made, seconded to approve the bills for payment. b. Pat Geric began serving on East Pittsburgh Borough Council in 1992. c. The Borough used Obee's for repairs in 1984 but the business was switched to Tri - Valley. d. Borough Council did play a role in deciding that Obee would have towing. e. Borough Council did not vote to award repair of police vehicles to Tri - Valley. f. Obee did not charge for labor in the repair of Borough vehicles. (1) Tri - Valley did charge for labor. g. Polacek compared repair costs between Obee and Tri - Valley. (1) Polacek concluded that Tri - Valley was charging "exorbitant" amounts. h. At Borough Council, James Geric suggested that towing be switched from Obee to Tri - Valley which was a new company that should be helped. (1) James Geric made similar comments regarding switching repair work on Borough vehicles. i. Polacek observed James Geric driving a Tri- Valley tow truck. As to one Borough vehicle, Pat Geric said it was not road worthy but Obee worked on it and the vehicle was on the road for about a year. k. A committee chair, within the allowances of Council, could direct where a Borough car would be taken for repair. 49. Andrew Seath is an employee at Obee's Garage. a. Seath does the towing truck for Obee's which is owned by his mother. b. From 1987 to the present, repairs at Obee's Garage were done by Seath. j . Geric, 91- 004 -C2 Page 42 (3) (1) Obee's performed maintenance work on Borough vehicles such as oil changes, brake jobs, engine replacement, front end work but not alignment. (2) Inspections were done by another garage that had a license. (3) Work was done on Borough police cars and rarely on the Borough trucks. (4) Obee's would not bill the Borough for inspections or dealer parts. c. Obee's was the primary but not the exclusive tower for the Borough. (1) The Borough was not charged by Obee's for towing. d. The Borough allowed Obee's to do towing of non- Borough vehicles. e. When Obee was doing repairs for free for Borough vehicles, others would also be doing repairs when Obee's could not handle it. f. The Borough was not bringing the cars on a normal basis to Obee's Garage. 50. Mary Albert is a special investigator for the State Ethics Commission. a. Albert obtained from the Borough, invoices of Patrick Geric of Tri- Valley Automotive for repairs on Borough vehicles. (1) A breakdown was prepared by Albert as to labor totals for each invoice. (2) Tri - Valley billed the Borough as follows: (a) $466.06 in 1987. (b) $2,796.50 in 1988. (c) $7,680.05 in 1989. (d) $363.70 in 1990. As to subfinding 50a(2), Tri - Valley billed the Borough for labor as follows: Geric, 91- 004 -C2 Page 43 (a) $362.00 in 1987. (b) $1,135.80 in 1988. (c) $2,038.97 in 1989. (d) $117.00 in 1990. b. Albert did not investigate as to whether there were any additional part charges to the Borough by Turtle Creek Supply, Valley Auto Supply or any other car dealers. 51. Daniel M. Bender is a special investigator for the State Ethics Commission. a. Bender has an educational background and degrees in the automotive field as well as in administration of justice. (1) Bender is a certified state inspection mechanic and certified physical damage appraiser. b. Bender analyzed the costs for repairs to Borough vehicles by Tri- Valley by reviewing all Borough invoices as to the repair /replacement of Borough vehicles. (1) A chart contains the parts charged to Borough vehicles, the cost of the parts to Tri - Valley and the cost charged to the Borough. (a) The difference between the price charged to the Borough and the cost to Tri- Valley was profit. (b) The profit on the parts was $618.61 to Tri - Valley. c. Tri - Valley performed duplicate or repetitive repairs on Borough Car No. 8, a Ford Crown Victoria. (1) Two universals were replaced on Car No. 8 on September 30, 1987. (a) The front universal was replaced on December 7, 1989. (b) A universal should last about 70,000 miles. (2) On June 8, 1989, a front brake caliper and brake hydraulic hose were replaced. (a) On August 2, 1989, the front brake pads were eric, 91- 004 -C2 Page 44 replaced with only 3000 additional miles being driven after June 8, 1989. (b) Brake pads must be taken off when replacing the front brake caliper. (c) It is the customary practice to replace brake pads, if there is excessive wear, when the calipers are off. Tri- Valley replaced the voltage regulator and wiring on June 5, 1989. (a) On July 8, 1989, with 1500 additional miles on the Borough vehicle, the battery and voltage regulators were replaced. (b) Tri - Valley replaced three voltage regulators in the Borough vehicle in the span of one year. (4) A battery was replaced by Tri - Valley after seven months usage. (a) The life of a car battery varies from 36 to 72 months. d. Tri- Valley performed duplicate heating /cooling repairs on East Pittsburgh Borough fleet of vehicles. (1) A radiator replacement was done on the 1976 truck on May 14, 1989. (2) On April 21, 1989, a radiator and heater coil replacement was made on Car No. 8. (3) On April 8, 1989, a radiator replacement was made on Car No. 9. (a) Three radiators were replaced in a time span of five weeks. e. Duplicate repairs were performed by Tri - valley on East Pittsburgh Borough Vehicle No. 9. (1) Brakes were repaired in eight month interval. (a) Brakes have a standard warranty of 36,000 on a new car. (b) The over - the - counter warranty is 90 days /4,000 (3) Geric, 91- 004 -C2 Page 45 miles. (2) For invoice of August 16, 1988, repairs were for belt adjustment, checking the charging system and replacing a battery. (a) On November 23, 1988, the following were replaced: the alternator, the battery and the under -hood wiring. (b) The batteries were replaced in a three -month time interval. (3) By invoice of May 2, 1989, the starter was replaced. (a) The starter was again replaced as reflected in invoice dated August 20, 1989. (b) The time span between the repair was 3 1/2 months. 52. James Geric is a Council Member in East Pittsburgh Borough since 1986. a. James Geric was appointed to the Public Safety Committee as chairman. b. After expressing concern to Council about the condition of the 1983 Pontiac police car not being in good shape, bids were solicited for a police vehicle. (1) A bid was received and awarded to Kenny Ross Chevrolet. (a) In April, 1988, Council rescinded the order. (b) At a May 12, 1986 meeting, Council reconsidered and moved to cancel the purchase of the vehicle from Kenny Ross Chevrolet. c. James Geric had a discussion with his brother concerning vehicle maintenance. (1) Geric concedes he has no mechanical ability as to vehicles. d. Although Obee's had all the towing, Qouncil took action to rotate towing among Obee's, Tri- Valley and Dookers. e. James Geric conceded that Obee's did not charge the Oulg, 91- 004 -C2 Page 46 Borough. f. Patrick Geric purchased a lot for the storage of vehicles. (1) James Geric was a grantee on the deed with his brother Patrick Geric. (a) James and Patrick Geric took title as tenants in co- partnership. g. At a October 8, 1990 Council meeting, in response to a question of possible conflict by Council Member McFeely, the solicitor advised that it was improper for a Council Member to vote on matters affecting his brother. h. McFeely in a September 10, 1990 Council meeting charged that Geric had a conflict in overriding Borough action to award towing /repairs to Obee's . i. When James Geric was appointed to Public Safety Committee, he assumed that he was responsible for police, police vehicles and public safety matters. Patrick Geric initiated the building of the garage in East Pittsburgh after he was furloughed from his job with Westinghouse. k. Based upon a six -month study of the invoices of a Borough vehicle which James Geric obtained and gave to his brother Patrick Geric for review, Patrick Geric's "conclusion was there wasn't enough service being done on the vehicle ". j 1. Council considered and rejected Patrick Geric's request for towing business. (1) There was no Borough Council vote to give repairs of Borough vehicles to Tri- Valley Auto. m. Routine Borough vehicle maintenance was done by Wayne Johnson, a Borough employee. (1) Johnson was taken off maintenance during the transition of the move to a different Borough building. n. James Geric asked his brother Patrick Geric to do preventive maintenance on the Borough vehicles. (1) The Borough vehicles were under the jurisdiction of Geric, 91- 004 -C2 Page 47 James Geric as chairman of the Public Safety Committee. o. When the Chief of Police of the Borough asked James Geric where to take the Borough vehicle, James Geric told the Police Chief to take the cars to his brother. Although James Geric testified that he did not tell Johnson to take the Borough vehicles to Patrick Geric's garage for maintenance, James Geric then testified that he did so direct Johnson after being confronted with his admission in the pleadings. q. Once Tri- Valley started doing routine maintenance, James Geric as Public Safety - chairman allowed Tri - Valley to do whatever maintenance was necessary as a problem developed. (1) James Geric did not need the approval of Council to take such action. P• r. James Geric as Public Safety chairman did not check on the work performed by Tri - Valley because Patrick Geric of Tri - Valley was his brother. s. Patrick Geric's garage was completed in Fall, 1986 and began receiving Borough work in May, 1987, approximately seven or eight months later. t. On the issue of a possible conflict by James Geric as to his brother, James Geric in a discussion with the Borough solicitor advised that he recommended an attorney for his brother, but did not disclose his guarantorship of a loan or signature authority on a Tri - Valley bank account. u. As to Tri- Valley bank accounts James Geric had check writing authority. v. The storage lot by Tri - Valley was used to store towed cars. (1) Tri - Valley changes for towing and storing of vehicles. w. Although James Geric while on Council was making payments on the loan for the storage lot, he did not list anyone including himself as a creditor on his Statement of Financial Interests form. (1) Patrick Geric still owes his brother James Geric between 3,000 and 3,500 as to the storage lot. Geri , 91- 004 -C2 Page 48 x. James Geric as Council Member supported giving his brother towing /repair business. y. Patrick Geric repairs James Geric's car without charging for labor. z. James Geric in 1988 made the motion to place the Borough vehicles under the jurisdiction of his committee, the Public Safety Committee. (1) In 1986, James Geric made a motion to turn the police vehicles over to the Property Committee. aa. James Geric seeks a dismissal of the case on the theory that under Section 8(c) of Act 9 of 1989, 65 P.S. 5408(c), he was not given notice and an opportunity to respond to the granting of two ninety -day extensions to complete the investigation. (1) Ninety -day extensions were granted on August 23, 1991 and on December 4, 1991. (a) Geric received ninety -day notice letters which reflected the continuation of the investigation. (2) During the investigation, non - compliance of a subpoena by Pat Geric resulted in a subpoena enforcement action being filed in Commonwealth Court under the caption State Ethics Commission v. P.G., An Undisclosed Individual, filed at 325 M.D. 1991. bb. James Geric seeks a dismissal of the allegation under Act 170 of 1978 on the theory that .a brother is not within the definition of immediate family under that Act. 53. Robert George is an auto mechanic that socializes at Tri - Valiey Auto. a. George has seen James Geric drive the Tri- Valley tow truck but not tow any vehicles. 54. Richard Glasser is the assistant vice president of Great American Federal Savings & Loan Association. a. The account for Tri - Valley is not a business account but a joint checking account. b. With two people having signature authority, each person has equal authority in relation to the account. Ceiic, 91- 004 -c2 Page 49 55. Richard O'Neal was employed as Pittsburgh Borough between April, a. Borough vehicle maintenance Borough employee and then on Tri- Valley Auto. a . (3) a police officer by East 1985 and February, 1989. was done by Obee's, then a rotation between Obee's and b. Any vehicle problems were reported to the Police Chief. 56. James Gerhard is a street commissioners with East Pittsburgh Borough since 1980. a. Gerhard was in charge of a Borough crew which included Wayne Johnson. (1) Johnson was a truck driver /laborer who did part - time maintenance 'on Borough vehicles. 57. Thomas Shearer was the solicitor for East Pittsburgh Borough from 1960 to 1980, except for 1972 and 1973. Shearer gave one written opinion regarding James Geric voting on matters concerning Tri - Valley Auto. (1) Shearer concluded that James Geric should not vote on such matters. (2) Shearer rendered his opinion based upon statements from James Geric and another councilman that James Geric had no financial interest in his brother's operation. Shearer was unaware at the time of his rendering the opinion that James Geric was a creditor of the business by paying off financial obligations of his brother Patrick Geric. b. When asked in 1987 as to whether James Geric could vote as to Tri - Valley Auto, Shearer responded that James Geric could if he had no financial interest. (1) If James Geric had some financial interest in some other matters involving the family, Shearer did not know what his decision would be. (2) Shearer was unaware that both James and Patrick Geric were grantees on a deed to a storage lot in the Borough. 58. Richard Shubock operates Dooker's Bridge Auto Service in North Braddock. Geric 91- 004 -C2 Page 50 a. Shubock does mechanical and body work on trucks, buses, tractor trailers and automobiles. b. Shubock taught Patrick Geric the auto mechanics trade. 59. Edward Ruane was appointed to East Pittsburgh Borough Council in November, 1987 until he resigned at the end of 1989. a. Ruane went to Patrick Geric's garage on two or three occasions regarding Borough police vehicles. (1) Ruane did not know how the police cars got to the garage. b. Council at one point split towing between Obee's and Tri - Valley. c. A committee chairman reviews bills. d. Ruane was unaware that Obee's was performing labor on Borough police vehicles at no charge. 60. Henry Beamer is an attorney in the practice of law. a. Beamer represented Gilbert Shubock in a transaction involving Patrick Geric. (1) A deed was prepared and recorded. (a) The grantee was Patrick Geric with James Geric added as grantee. (b) James and Patrick Geric took title as tenants in co- partnership. (c) Beamer prepared a mortgage note between Patrick Geric and Gilbert Shubock as to which James Geric's name was added. (i) James Geric signed the mortgage note. 61. Patrick Geric works out of Tri- Valley Auto. a. Geric claims that there was insufficient maintenance on the Borough police vehicles. b. The "lot" is used for storing cars. (1) The fees received for storage of vehicles are deposited in the Tri - Valley account. Geric, 91- 004 -C2 Page 51 (2) James Geric assisted Patrick Geric in the purchase and financing of the lot. c. When Patrick Geric started the business, he had to go out to get business. (1) Patrick Geric was interested in the East Pittsburgh Borough business as a means of helping out his garage repair business. d. The tax bills on the "lot" go to 513 Main Street where James Geric lives. (1) Patrick Geric lives at 603 Main Street. e. Since 1988, Patrick Geric tried to get the towing business in the Borough. 62. Guy Visco is a Member of East Pittsburgh Borough Council since 1975. a. Towing in the Borough at one point was split among Obee's, Patrick Geric and Dookers. (1) The towing was split 50/50 at some point between Obee's and Patrick Geric -. b. The Public Safety Committee chairman was the oversight person for Borough police vehicles. (1) The chairman had discretion to send police vehicles for repairs. C. EXHIBITS: 63. The financial gain received by Tri- Valley Automotive as to labor charges between 1987 and June, 1989 from East Pittsburgh Borough totals $2,748.27. 64. The private pecuniary benefit received by Tri - Valley Automotive as to labor charges between June, 1989 and January, 1990 from East Pittsburgh Borough totals $905.00. III. DISCUSSION: Initially, it is noted that the allegations in this case relate to both Act 9 of 1989 and Act 170 of 1978. In this regard, Section 9 of Act 9 of 1989, P.L. 26, provides, in part, as follows: "This amendatory act shall not apply to Geric, 91- 004 -C2 Page 52 violations committed prior to the effective date of this act, and causes of action 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 violations occurred prior thereto." Under both Act 170 of 1978 and Act 9 of 1989, as a Member of East Pittsburgh Borough Council, James Geric is a public official as that term is defined under both acts. See also 51 Pa. Code. As such, his conduct is subject to the provisions of both laws and the restrictions therein are applicable to him. Under Section 3(a) of Act 9 of 1989 quoted above, a public official 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. Under Section 3(a), of Act 170 of 1978 quoted above, this Commission has determined that use of office by a public official to obtain a financial gain for himself or a member of his immediate family or a business with which he is associated which is not provided for in law transgresses the above provision of law. Thus, Geric, 91- 004 -C2 Page 53 use of office by a public official to obtain financial gain which is not authorized as part of his compensation is prohibited by Section 3(a): Hoak /McCutcheon v. State Ethics Commission, 77 Pa. Commw. Ct. 529, 466 A.2d 283 (1983); Yacobet v. State Ethics Commission, 109 Pa. Commw. Ct. 432 531 A.2d 536 (1987) . Similarly, Section 3(a) of the Ethics Act would prohibit a public official /employee from using public office to advance his own financial interests; Koslow v. State Ethics Commission, 116 Pa. Commw. Ct. 19, 540 A.2d 1374 (1988), allocatur. denied, Pa. , 553 A.2d 971 (1988). In addition, Section 3(c) of Act 170 of 1978 specifically provides in part that no public official or member of his immediate family or business with_ -which he. or a - member of his immediate family is a director, oficer, owner or holder of stock exceeding five percent of the equity at fair market value may enter into a contract with his governmental body valued at five hundred dollars or more unless the contract is awarded through an open and public process. Section 4(a) of the Ethics Act quoted above requires that each public employee and each public official (Kremer v. State Ethics Commission, 56 Pa. Commw. 160, 424 A.2d 968 (1981)) must file a Statement of Financial Interests for the preceding calendar year and each year that he holds such position and for the year after he leaves such position. Preliminarily, we note that Geric seeks a dismissal of the Complaint on the basis that he was not given notice and an opportunity to respond when the Investigative Division sought and obtained two investigative extensions under Section 8(c) of Act 9 of 1989, 65 P.S. §408(c). Secondly, Geric seeks a dismissal of the allegation under Act 170 of 1978 on the theory that any action which Geric undertook as to his brother could not be a violation since a brother is not within the statutory definition of "immediate family" under Act 170. As to the first ground for dismissal, Section 8(c) of Act 9 provides: Section 8. Investigations by the commission (c) If a preliminary inquiry establishes reason to believe that this act has been violated, the commission may, through its executive director, initiate an investigation to determine if there has been a violation. The commission shall beep information, records and proceedings relating to an investigation confidential until a, final determination is made except as otherwise provided in Geric, 91- 004 -C2 Page 54 subsection (g). No investigation may be commenced until the person who is the subject of the investigation has been notified and provided a general statement of the alleged violation or violations of the act and other applicable statutes with respect to such investigation. Service of notice is complete upon 'mailing which shall be by certified or registered mail. The commission shall notify the complainant within 72 hours of the commencement of an investigation and, thereafter, the commission shall advise the . complainant and the person who is the subject of the investigation of the status of the investigation at least every 90 days until the investigation is'terminated. The commission shall, within 180 days of the initiation of an investigation, either terminate the investigation pursuant to subsection (d) or issue a findings report pursuant to subsection (e). Upon a showing by the executive director of the need for extension of this period, the commission may extend an investigation for up to two 90 -day periods, provided that each 90- day extension shall be approved by a majority vote of members present. In no event shall a findings report be issued later than 360 days after initiation of an,investigation. 65 P.S. 5408(c). There is no question of fact that the Investigative Division did request and receive two ninety -day investigative extension requests. (Fact Finding 52aa(1)). There is likewise no question of fact that Geric was given notice of the status of the investigation at ninety -day intervals until the investigation was completed. (Fact Finding 52aa(1)(a)). The only question before us is whether Geric had any statutory or constitutional right to respond, participate or challenge the request by the Investigative Division for the two ninety -day extensions. As to the Ethics Law, we note that there is no statutory provision which grants a respondent the right to participate in the investigative extension request process. Although Geric is unable to establish any statutory grant of such a right, he asserts that due process requires his participation. We disagree. Due process itself does not require hearing rights at each and every possible opportunity but only before the final deprivation of a right. Baker v. Com., Pa. Human Relations Com'n., 507 Pa. 325, 332, 489 A.2d 1354, 1357 (1985) (Note 5): [The due process] clause does not guarantee or Geric, 91- 004 -C2 Page 55 require that full notice and hearing rights be afforded at every possible opportunity. The only requirement is that such rights be available before personal or property rights are taken. In this case, Geric has been accorded due process in that he was given notice of a hearing on May 2, 1992, and an opportunity to respond at that hearing which was held on August 19 and 20, 1992. Under decisional law, Geric is not entitled nor is this Commission required to give notice and an opportunity to be heard at each and every stage of the proceeding. Notice and an opportunity to be heard was given at the final stage :when the hearing was held to make the record on which_ this adjudication is based. Further, since Geric does not have such right by statute in that the Ethics Law makes no provision for a respondent's participation in the investigative extension process, we reject the first ground for dismissal. In passing we must note that the reason, at least in part, for the request by the Investigative Division for the ninety -day extensions was due to the failure by Patrick Geric to comply with an investigative subpoena which necessitated the institution of a subpoena enforcement action in Commonwealth Court. (Fact Finding 52aa(2)). Dismissal is also sought for the allegations which relate to Section 3(a) and 3(c) of Act 170 of 1978 on the basis that Geric's actions were for his brother who is not within the statutory definition of "immediate family" under Act 170. Although we agree that "brother" is not within the statutory definition of "immediate family" under Act 170, Geric appears to be unaware that a violation occurs under Section 3(a) of Act 170 when a financial gain through a use of office is received either by the public official /employee himself, a member of the immediate family, or a business with which the public official /employee is associated. In light of the above and the findings which contain evidence suggesting a financial relationship between Geric and his brother regarding Tri- Valley Automotive, we will deny the second ground for dismissal. We will now turn to the substanive allegations before us which are whether under Act 170 of 1978 Geric violated Section 3(a) (conflict provision), Section 3(c) (contracting provision), and Section 4(a) (Financial Interests Statement filing requirement provision) as to his participation as a Borough Councilman for the purpose of obtaining business for Tri - Valley Automotive, a business with which he was associated; for the failure to award such contracts between the Borough and Tri - Valley Automotive through an open and public process to the extent that the contracts were $500 or more, and lastly, for the failure to file Financial Interests Statements (FIS's) for the calendar years 1987 through 1989, and Geric, 91- 004 -C2 Page 56 secondly whether under Act 9 of 1989 Geric violated Section 3(a) (conflict provision) regarding his actions as to the repair of Borough vehicles by Tri- Valley Automotive, a company owned wholly or in part by Geric's brother, Patrick Geric. Factually, Geric began serving as a Councilman in East Pittsburgh Borough in January, 1986. From January, 1986 through December, 1989, he served as chairman of the Public Safety Committee, and in January, 1990, he was made chairman of the Property Zoning and Ordinance Committee. When Geric became a member of Council, the repair of Borough vehicles was done by Obee's Garage. Obee's performed the repairs on the Borough vehicles without charge. If parts were needed, Obee's directed the part supplier to bill the Borough directly so that Obee's made no profit on parts. Aside from a used engine, Obee's did not even charge for used parts. Obee' was entitled to perform towing services in the Borough but Obee's did not charge for the towing of any Borough vehicles. In the fall of 1986 after Geric's brother Patrick was laid off from his position in Westinghouse, he (Patrick) opened a garage, Tri - Valley Automotive. Patrick Geric also obtained a lot for the storage of vehicles which lot was acquired by deed in the names of Patrick Geric and Geric as co- tenants in partnership. Geric helped with the financing as to the purchase of the lot and Patrick Geric still owes Geric approximately $3,000 to $3,500. In addition, Geric has signature authority over the checking account for Tri- Valley Automotive. Following the startup of Tri - Valley Automotive, Patrick Geric appeared on several occasions before Borough Council seeking to obtain Borough business for his garage. Geric became an advocate for giving Borough business to Tri - Valley Automotive not only in Council meetings but behind the scenes. Geric readily concedes that he supported the efforts of his brother Patrick Geric for Borough vehicle repair work. Geric was in key position to help his brother in that he was chairman of the Public Safety Committee which had the responsibility for police car maintenance. In May, 1988, Geric made the motion to transfer control of the Borough vehicles to his committee. The record does reflect that there was never any action taken by Borough Council to authorize Tri - valley Automotive to do repairs on Borough vehicles. Likewise, the repairs were not put out for bids. The only action taken by Borough Council occurred on April 11, 1988, when the Council agreed, with Geric casting the swing vote, to alternate the towing between Obee's Garage and Tri - Valley Automotive on a six -month basis. At a March 13, 1987 meeting of council, a motion supported by Geric to split the towing had failed. Despite the lack of action by Borough Council to authorize Tri - Valley Automotive to do Borough vehicle repairs, Tri- Valley eric, 91- 004 -C2 Page 57 Automotive nevertheless began to perform such services. Although Geric on occasion did ask Council to authorize a repair, such requests were silent as to which garage would perform the repairs. The transfer of Borough vehicle repair work to Tri- Valley Automotive occurred at the direction of Geric to the police chief or Wayne Johnson, a Borough employee, who were told to take the Borough vehicles to Tri- Valley Automotive for repairs. Geric also instituted a "maintenance program" so that the Borough vehicles would be sent to Tri - Valley Automotive on a regular basis. After the change in Borough vehicle repair from Obee's to Tri - Valley Automotive, the Borough became inundated with exorbitantly high repair bills from Tri - Valley automotive for repairs on Borough vehicles, many of which were repetitive or duplicate repairs. It is important to restate that when Obee's did the Borough vehicle repairs, Obee's did not charge nor make any profit on parts since the parts were billed directly from the suppliers to the Borough. In sharp contrast to Obee's, Tri - Valley Automotive charged for labor and parts via price mark ups. When members of Borough Council became aware of the high repair bills from Tri - Valley Automotive, which they described as "outrageous" or "exorbitant ", members of Council attempted through a motion to take action to remove said business from Tri - Valley Automotive. However, Geric put through a successful motion to table the motion which would have taken away the business from Tri - Valley Automotive. Subsequently when an attempt was made to take the motion from the table, Geric voted against that motion. Not only do the minutes reflect that Geric was active in making motions and voting as to motions which would favor Tri - Valley Automotive, the minutes further reflect that Geric voted to approve payments of invoices to Tri- Valley Automotive. When Patrick Geric approached Council in an attempt to regain the Borough vehicle repair business by offering a 10% discount, Geric made a motion to accept his brother's proposal which failed for a lack of a second. Such actions by Geric as a Council member continued until the Borough Solicitor at an October 8, 1990 meeting advised Geric that it was improper for a Councilman to vote on matters regarding his brother. Thereafter, Geric abstained on matters involving his brother Patrick Geric or Tri - Valley Automotive. Lastly, regarding the filings of Financial Interests Statements (FIS's) by Geric, he has only filed two such statements: one in March, 1985, purportedly for the 1985 and another in February, 1989, purportedly for the year 1989. The 1989 filing could not be for the calendar year 1989 since it was filed in February, 1989. The record does reflect that Geric failed to file FIS's for the calendar years 1986, 1987, 1989 and 1990; apparently, the FIS filed in 1989 which listed the calendar year as 1989 has been deemed to be a 1988 calendar year filing. Geric in his "1989" filing did not list the Borough as a source of income. Geric, 91- 004 -C2 Page 58 In applying the various provisions of the Ethics Law to the instant matter, we shall first consider the applicability of Act 170 of 1978. As to Section 3(a) of Act 170 of 1978, we clearly find a use of office on the part of Geric in terms of his lobbying activities, his actions as Public Safety Committee chairperson directing repairs to Tri- Valley Automotive, his making and voting in favor of motions for Tri - Valley Automotive as well as opposing motions which sought to remove such Borough business from Tri - Valley Automotive and his actions in voting for payment of invoices of Tri - Valley Automotive. The financial gain consists of the profits made by Tri - Valley- Automotive from the repairs of Borough vehicles. Those repairs, many of ; which were clearly duplicative, repetitive, and totally unnecessary, are outlined in Fact Findings 29 to 38 and 51. As to the repairs, it is possible that in some instances a part might have been defective which would warrant its replacement within a short time after installation. However, in this case, the inordinately excessive and ongoing constant parade of repairs by Tri - Valley Automotive of numerous automotive components, as listed in the above Fact Findings which occurred in very short time periods with relatively low mileage in said intervals, on its face is totally unjustified. The foregoing becomes quite apprarent when one considers that replacements were made as to vehicle parts which have a relatively long term longevity such as radiators, universals, voltage regulators, starters, etc. For example, Fact Finding 51c(3)(b) reflects that three voltage regulators were replaced in the same vehicle within the span of one year. The characterization of the costs of these "repairs" by Council members as "exorbitant" or "outrageous" was certainly on the mark. Obviously, based upon the facts in this case, it would be a clear misnomer to characterize the activities of Tri - Valley Automotive as repairs; a more exacting terminology would be the replacement of parts for profit. In addition to the question as to whether Automotive charged might Finding 38. Although we clearly have a use of office by Geric and a financial gain, we do not believe that the evidence is sufficient to establish a financial gain to either Geric, a member of his immediate family or a business with which Geric is associated under Section 3(a) of Act 170 of 1978. As to Geric, we do note that he financed to an extent the purchase of the garage storage lot which was deeded to Geric and his brother Patrick as co- tenants in partnership. In addition, Geric does have signature authority over the Tri - Valley Automotive bank account. However, the term "business with which he is associated" is defined under Act 170 as follows: above, there appears to be a serious some "repairs" for which Tri - Valley not even have been performed. See Fact Qeric, 91- 004 -C2 Page 59 Section 2. Definitions. "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or holder of stock. 65 P.S. §402. The evidence does not establish that Geric is a director, officer, owner, employee or holder of stock in Tri- Valley Automotive. Due to a lack of sufficiency of evidence, we must conclude that Tri - valley Automotive is not a business with which Geric associated. Similarly, the term "immediate family" is defined as follows under Act 170 of 1978: Section 2. Definitions. "Immediate family." A spouse residing in the person's household and minor dependent children. 65 P.S. §402. Since Patrick Geric is not a member of Geric's immediate family as that term is defined under Act 170, the financial gain in this case did not go to an "immediate family" member. Lastly, as to a financial gain to Geric personally in this case, such financial gain would have to come to him via the entity of Tri - Valley Automotive. Since we have found that Tri - Valley Automotive is not a business with which he is associated under Act 170, we are constrained to a conclusion that the financial gain did not got to Geric. In light of the foregoing, we find no violation Section 3(a) of Act 170. So that our decision is not misunderstood, we must state that there was a blatant use of office by Geric which resulted in a financial gain consisting of the unnecessary, duplicate, repetitive automotive repairs done by Tri - Valley Automotive. However, since the evidence does not establish that this financial gain went to Geric individually nor a member of his "immediate family" nor a "business with which he is associated ", we are constrained to find no violation. In light of the above, we likewise must find no violation of Section 3(c) of Act 170 of 1978 for the following reason. Section 3(c) limits contracting to a public official /employee, a member of his immediate family, or a business in which the person or member of his immediate family is a director, officer, owner, or holder of stock exceeding 5% of the equity of market value of the business. Since Geric himself did not contract and Patrick Geric is not a member of Geric's. "immediate family" and since Tri- Valley Automotive is not a business with which Geric is associated as that term is defined in Act 170, Section 3(c) of Act 170 referenced above has no application. Geric, 91- 004 -C2 Page 60 As to allegation regarding Section 4(a) of Act 170 of 1978, we find violations of Section 4(a) of Act 170 of 1978 regarding Geric's failure to file FIS's for calendar years 1987, 1989. Geric is directed within thirty (30) days of issuance of this Order to file FIS's for the calendar years 1987 and 1989. Since the 1989 filing apparently has been deemed a filing for calendar year 1988, Geric is directed to file an amended FIS for that year reflecting the proper calendar year date as 1988 rather than 1989. In addition, Geric is also directed within the above thirty (30) day time constraint to file FIS's for the calendar years 1986 and 1990. We note that Geric did not list the Borough as a source of income for the "1989" year. If Geric received income over the threshold amounts of $500 for Act 170 and $100a for Act 9, such income must be listed on the FIS's. Failure to comply with this provision will result in a directive of this for the institution of an order enforcement action. As to the one remaining allegation of whether Geric violated Section 3(a) of Act 9 of 1989 regarding his activities on behalf of Tri- Valley Automotive, we find a violation of that provision of the Ethics Law. Our review of this allegation is limited to those activities which occurred after June 26, 1989, the effective date of the amendment to the Ethics Law. In order to establish a violation of Section 3(a) of Act 9 of 1989, there must be a showing of a use of authority of office and a private pecuniary benefit, which inures to a public official /employee, a member of his immediate family, or a business with which he or a member of his immediate family is associated. In the instant matter, all the requisite elements for a violation of Section 3(a) are present. The use of authority of office by Geric is evidenced in the record as to his actions on Council and as Public Safety Committee. chairman, through his lobbying on behalf of Tri. Valley Automotive, through his direction as committee chairman for the repair of Borough vehicles to Tri - Valley Automotive, through his making and voting in favor of motions which support Tri - Valley Automotive and against such motions which would take business away from Tri - Valley Automotive and through his voting to pay invoices of Tri - Valley Automotive. Geric also admitted that he as a Councilman supported giving his brother Borough repair business, which continued until October, 1990 when the Solicitor advised him against further action on his part. Such actions are clearly a use of authority of office. See, Juliante, Order 809. As to the second element of Section 3(a) regarding a private pecuniary benefit, that benefit consists of the gain that Tri - Valley Automotive made on labor and parts as to the servicing of Borough vehicles. Lastly, the private pecuniary benefit in this case inured not only to a member of Geric's immediate family but also to a business with which a member of Geric's immediate family Geric, 91- 004 -C2 Page 61 is associated. Under Act 9 of 1989, immediate family and business with which associated are defined as follows: Section 2. Definitions "Business with which he is associated." Any business in which the person or a member of the person's immediate family is a director, officer, owner, employee or has a financial interest. "Immediate family." A parent, spouse, child, brother ..or:sister. 65 P.S. S402. Since the term brother is encompassed within the statutory definition of immediate family under Act 9 of 1989, clearly Patrick Geric and Tri- Valley Automotive were the recipients of the private pecuniary benefit through the use of authority of office by Geric. In light of the above, we believe that a treble penalty is appropriate. See Fact Finding 64. Accordingly, we direct Geric within thirty (30) days of the date of issuance of this Order to pay a treble penalty of $2715.00 and forward same to this Commission for deposit into the State Treasury. Based upon the blatant and intentional conduct of Geric in this case of using office to obtain private financial gain for his brother at the expense of and in violation of the public trust, we will refer this matter to the appropriate law enforcement authority. The Preamble of the Ethics Law provides in part that, ". . . public office is a public .trust and that any effort to realize personal financial gain through public office other than compensation provided by law is a violation of that trust." As to his future actions as a public official, we remind Geric that he must comport himself within the limitations of the Ethics Law. IV. CONCLUSIONS OF LAW: 1. James Geric as a Council Member for East Pittsburgh Borough is a public official as that term is defined under Act 170 of 1978 and Act 9 of 1989. 2. Geric did not violate Section 3(a) of Act 170 of 1978 regarding his use of office to give Borough vehicle repair business to Tri - Valley which resulted in a financial gain to Patrick Geric and Tri- Valley Automotive in that Tri - Valley Automotive is not a business with which Geric is associated and Patrick Geric is not a member of Geric's immediate family Geric, 91- 004 -C2 Page 62 as those terms are defined under Act 170 of 1978. 3. Geric did not violate Section 3(c) of Act 170 of 1978 regarding contracts for repair of Borough vehicles by Tri - Valley Automotive in that Tri- Valley Automotive is not a business with which Geric is associated and Patrick Geric is not a member of Geric's immediate family as those terms are defined under Act 170 of 1978. 4. Geric violated Section 4(a) of Act 170 of 1978 by failing to file Financial Interests Statements for the 1987 and 1989 calendar years. 5. Geric violated Section 3(a) of Act 9 of 1989, 65 P.S. S403(a), when he used the authority of office to give Borough vehicle repair business to Tri - Valley Automotive which resulted in a private pecuniary benefit for Patrick Geric, a member of his immediate family, and for Tri - Valley. Automotive, a business with which a member of Geric's immediate family was associated. 6. The private pecuniary benefit received in violation of Section 3(a) of Act 9 of 1989 amounts to $905.00. In re: James Geric File Docket: 91- 004 -C2 Date Decided: December 10, 1992 Date Mailed: December 15, 1992 ORDER NO. 873 1. James Geric, as a Council Member for East Pittsburgh Borough, did not violate Section 3(a) of Act 170 of 1978 regarding his use of office to give Borough vehicle repair business to Tri - Valley which resulted in a financial gain to Patrick Geric and Tri- Valley Automotive in that Tri - Valley Automotive is not a business with which Geric is associated and Patrick Geric is not a member of Geric's immediate family as those terms are defined under Act 170 of 1978. 2. Geric did not violate Section 3(c) of Act 170 of 1978 regarding contracts for repair of Borough vehicles by Tri - Valley Automotive in that Tri- Valley Automotive is not a business with which Geric is associated and Patrick Geric is not a member of Geric's immediate family as those terms are defined under Act 170 of 1978. 3. Geric violated Section 4(a) of Act 170 of 1978 by failing to file Financial Interests Statements for the 1987 and 1989 calendar years. 4. Geric violated Section 3(a) of Act 9 of 1989, 65 P.S. §403(x), when he used the authority of office to give Borough vehicle repair business to Tri - Valley Automotive which resulted in a private pecuniary benefit for Patrick Geric, a member of his immediate family, and for Tri - Valley Automotive, a business with which a member of Geric's immediate family was associated. 5. Geric is directed within thirty (30) days of the date of issuance of this Order to file Statements of Financial Interests for the 1987 and 1989 calendar years. 6. Geric is directed within thirty (30) days of the date of issuance of this Order to file an amended Statement of Financial Interests as to his "1989" calendar year to properly reflect that the form is being filed for the calendar year 1988. 7. Geric is directed within thirty (30) days of the date of issuance of this Order to file Statements of Financial Interests for the 1986 and 1990 calendar years. 8. The private pecuniary benefit received in violation of Section 3(a) of Act 9 of 1989 amounts to $905.00. 9. We direct Geric wit`iin thirty (30) days of the date of issuance of this Order to pay a treble penalty of $2715.00 and remit same to this Commission for deposit into the State Treasury. 10. Failure to comply with the above provisions of this Order will result in a directive of this Commission to institute an order enforcement action. 11. This matter will be referred to the appropriate law enforcement agency for review and appropriate action. BY THE COMMISSION, Commissioner Dennis C. Harrington did not participate in this matter because he acted as single hearing officer and recused himself pursuant to 51 Pa. Code §2.34(d).