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HomeMy WebLinkAbout1134 ZiegerIn Re: Frank Zieger, Jr. STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: X -ref: Date Decided: Date Mailed: Before: Daneen E. Reese, Chair Austin M. Lee, Vice Chair Julius Uehlein Louis W. Fryman John J. Bolger Frank M. Brown Susan Mosites Bicket 98- 076 -C2 Order No. 1 134 8/30/99 9/7/99 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 ell sgg., by the above - named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer was not timely filed and a hearing was deemed waived. The record is complete. Effective December 15, 1998, Act 9 of 1989 was replaced by the Public Official and Employee Ethics Act ( "Ethics Act "), Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101 fig., which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under that Act. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with the Ethics Act. 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. Confidentiality does not preclude discussing this case with an attorney at law. Zieger, 9B- 076 -C2 Page 2 1. ALLEGATION: That Frank Zieger, Jr., a public official /public employee, in his capacity as a Commissioner for Stowe Township, Allegheny County, violated Sections 3(a), 3(f) and 5(b)(5), (8) and (9) of the State Ethics Act (Act 9 of 1989) when he used the authority of his office for the private pecuniary benefit of a business a member of his immediate family is associated by participating in actions resulting in purchases made by the township public works department from AVS Printing, a business which his spouse is part owner; and when he participated in approving payments to AVS; and when the contract with this company was entered into without an open and public process; and when he failed to list on a Statement of Financial Interests filed for the 1996 and 1997 calendar years, loans he co- signed on behalf of AVS. I1. FINDINGS: 1. The Investigative Division of the State Ethics Commission received a signed, sworn complaint alleging that Frank Zieger, Jr., violated provisions of the State Ethics Act (Act 93 of 1998). 2. Upon review of the complaint the Investigative Division initiated a preliminary inquiry on December 8, 1998. 3. The preliminary inquiry was completed within sixty days. 4. On January 26, 1999, a letter was forwarded to Frank Zieger, Jr., by the Executive Director of the State Ethics Commission informing him that a complaint against him was received by the Investigative Division and that a full investigation was being commenced. a. Said letter was forwarded by certified mail, no. Z 015 323 506 5. On February 9, 1999, a letter was forwarded to Frank Zieger, Jr., by the Executive Director of the State Ethics Commission notifying him that the allegations in the original letter of January 26, 1999, were being modified. a. Said letter was forwarded by certified mail, no. Z 015 323 514. b. The domestic return receipt bore no signature with a delivery date of February 11, 1999. 6. - On July 22, 1999, a letter was forwarded to Frank Zieger, Jr., by the Executive Director of the State Ethics Commission notifying him that the allegations in the original letters of January 26, 1999, and February 9, 1999, were being modified. a. Said letter was forwarded by certified mail, no. Z 377 194 640. 7. Periodic notice letters were forwarded to Frank Zieger, Jr., in accordance with the provisions of the Ethics Law advising him of the general status of the investigation. 8. The Investigative Complaint was mailed to the Respondent on July 23, 1999. 9. Frank Zieger, Jr., has served as a member of the Stowe Township Board of Commissioners since November 1997. Zieger, a8- 076 -C2 Page 3 a. Zieger took office on November 11, 1997, to fill an unexpired term. b. Zieger was elected to a full term in November 19, 1997, and was sworn in on January 5, 1998. 10. Zieger was appointed to the position of Chairman of the Public Works Committee during the January 5, 1998, reorganization meeting. 11. As Chairman of the Public Works Committee, Zieger is responsible for the supervision of the Stowe Township Public Works Department. a. Zieger deals directly with the Public Works Department Supervisor. 12. The position of Public Works Supervisor is held by Nick Pecorelli. a. Public Works Supervisor is a full -time position. b. Pecorelli has held this position for approximately thirteen years. 13. The number of Public Works employees varies from year to year. a. In 1998, the Public Works Department employed three full -time employees and five part-time employees. b. The Public Works Department currently employs three full -time employees and part-time employees. 14. Pecorelli's duties and responsibilities, in addition to supervising road workers, include purchasing supplies for use by Public Works Department employees. a. Supplies purchased by Pecorelli for use by the road department include uniforms for road employees. 15. Uniforms are provided to road workers pursuant to a union contract between the Public Works Department and the township. a. This contract provides for the purchase of uniforms and uniform related items by Stowe Township for Public Works Department employees. 16. Uniforms provided for the Public Works Department by the union contract include shirts, pants, a winter jacket, and an allowance for steel -toe boots each year. a. The contract provides for three uniforms each consisting of one shirt and one pair of trousers. b. The contract provides for one winter jacket. 1. Winter jackets are not replaced each year. 2. Winter jackets are replaced upon necessity. c. The contract provides for an allowance of $ 100.00 for steel -toe boots for each employee. 17. Uniforms are replaced if deemed damaged, unusable, or unsafe. Zieger, 92- 076 -C2 Page 4 a. Uniforms must be verified as damaged on the job by the Public Works foreman and unsuitable for use. 18. The Public Works Department Union Contract covers full -time employees in regard to uniforms; however, Stowe Township provides shirts and jackets for part-time employees also. 1 Public Works Department uniforms are budgeted for in the Stowe Township annual budget. a. Public Works Department uniform expense is listed under General Highway Maintenance. 20. Stowe Township did not always follow the purchasing requirements for uniforms as outlined in the labor agreement. Steel toe boots were the only uniform purchased in 1996. Uniforms in excess of the quantity established in the union contract were purchased in 1997 and 1998. 21. In his capacity of Public Works Supervisor, Pecorelli has placed all orders for uniforms for the Public Works Department since at least 1995. a. b. a. Pecorelli obtains phone quotes from local businesses listed in the phone book. b. Pecorelli obtains the best price on items to be purchased for the Public Works Department by Stowe Township. c. Pecorelli determines the number of items to be purchased dependent upon the number of Public Works employees at the time of the order. 22. Prior to placing any order for the Public Works Department, Pecorelli informs the committee chairman of the items to be ordered and the quantities. a. Pecorelli advises the chairman of the company the orders would be placed with. 23. Since January, 1998, Pecorelli has discussed purchases with Frank Zieger as Public Works Committee Chairman. a. This includes all purchases related to uniforms. 24. Zieger approved orders for uniforms without the prior approval of the Board. of Commissioners. a. Zieger did not present the orders to the Stowe Township Board of Commissioners prior to Pecorelli ordering the uniforms because uniforms . were required pursuant to the union contract. 25. Prior to 1997 uniforms and related items were purchased by Pecorelli from Gary Sports Center, Work America and Iron Age Safety Shoes. 26. In 1995, Public Works Department uniform and uniform related expenses totaled $677.75. Zieger, 9$- 076 -C2 Page 5 a. One invoice was paid to Iron Age Safety Shoes totaling $188.90. 1) Items purchased were two pair of work boots. b. Three invoices were paid to Gary Sports Center totaling $343.50. 1) Items purchased were twelve T- shirts, three polo shirts, and six sweatshirts. c. Three invoices were paid to Work America totaling $145.35. 1) Items purchased were nine pair of pants. 27. In 1996, Public Works Department uniform and uniform related expenses totaled $243.85. a. Three invoices were paid to Iron Age Safety Shoes totaling $243.85. 1) Items purchased were three pair of work boots. 28. In 1997, Public Works Department uniform and uniform related expenses totaled $752.00. a. Three invoices were paid to Iron Age Safety Shoes totaling $252.85. 1) Items purchased were three pair of work boots. b. Two invoices were paid to Work America totaling $265.15. 1) Items purchased were nine work shirts and nine pair of pants. c. One invoice was paid to AVS Printing totaling $234.00. 1) Items purchased were twenty -eight T- shirts. 29. In 1997 Pecorelli began making uniform purchases from AVS Printing. a. Pecorelli knew Joe Jacobs, one of the firm's principals. b. c. A purchase for 28 t -shirts totaling $234.00 was made on July 7, 1997. Payment was approved on August 13, 1997. 30. AVS Printing is a textile printing business, is registered as a Pennsylvania general partnership located at 2902 Neville Road, Neville Island, PA 15225. 31. Pa. Combined Registration Form (PA -100) lists Linda Jacobs and Mary Ann Zieger, as partners in AVS Partners. a. Both partners are recorded as owning a 50% share of AVS. b. Frank Zieger is not listed as having an interest in AVS. 32. Linda J. Jacobs is the mother of Joseph Jacobs, the Business Manager of AVS Printing. Zieger, 98- 076 -C2 _ Page 6 33. Mary Ann Zieger is the wife of Frank Zieger, Jr. 34. AVS is not registered as a corporation with the Pa. Department of State, Bureau of Corporations. 35. Frank Zieger, Jr., is not listed as having any ownership or directorship in AVS. 36. AVS Printing was purchased by Mary Ann Zieger and Linda Jacobs from Brian Farrand on February 1, 1996, for a purchase price of $25,000. a. The sales agreement entered into regarding AVS Printing is dated February 1, 1996. 37. Financing for the $25,000 purchase price for AVS Printing was obtained through a commercial loan from Integra Bank, now National City Bank. 38. The business assets of AVS Printing were provided as collateral. a. AVS business assets could not support the loan solely. 39. Frank and Mary Ann Zieger signed General Guaranty and Suretyship Agreements to Integra Bank for additional collateral. a. This agreement provided Integra Bank with a lien on and a security interest in all of Zieger's property. b. The lien and security interest included Zieger's rental property at 1307 Broadway, McKees Rocks, PA and Zieger's personal residence, located at 1608 White Oak Court, Pittsburgh, PA. 40. Martin and Linda Jacobs signed General Guaranty and Suretyship Agreements to Integra Bank. a. This agreement provided Integra Bank with a lien on and a security interest in all of the Jacobs' property. b. The Jacobs' property is limited to their residence at 826 Broadway, McKees Rocks, PA. 41. Terms of the loan with Integra Bank required monthly payments of $416.67, plus interest at the rate of 1% above the prime rate throughout the five year term of the loan. a. Payments are made on the commercial loan through AVS Printing proceeds by Joseph Jacobs. b. No payments have been made by Frank Zieger. c. The outstanding balance on the commercial loan as of 5/21/99 is $8,839.27. 42. A verbal agreement between Frank Zieger and Martin and Linda Jacobs provides that if AVS Printing could not make monthly payments on the loan, the Jacobses would make the monthly payments. Zieger, 92- 076 -C2 Page 7 43. Joseph Jacobs and his employees are the sole recipients of income from AVS Printing. a. AVS Printing issued IRS Form 1099's to six employees in 1996. b. AVS Printing issued IRS Form 1099's to seven employees in 1997. c. AVS Printing issued IRS Form 1099's to four employees in 1998. 1. Jacobs was issued a W -2 in 1998. 44. Frank and Mary Ann Zieger receive no income from AVS Printing. a. Martin and Linda Jacobs receive no income from AVS Printing. 45. Since November 1997 when Zieger was appointed township commissioner three purchases have been made from AVS Printing. a. These purchases have been made without public notice, including bid solicitation. 46. In 1998, Public Works Department uniform and uniform related expenses totaled $1,324.33. a. Two invoices were paid to Iron Age Safety Shoes totaling $162.90. b. One invoice was paid to Work American totaling $152.43. c. Three invoices were paid to AVS Printing totaling $1,009.00. 47. Pecorelli advised Zieger prior to placing any of these orders with AVS Printing. a. Pecorelli informed Zieger the orders would be placed with AVS Printing. 48. At the time that Pecorelli discussed making purchases from AVS, Zieger did not inform Pecorelli of his and his wife's association with AVS Printing. a. Zieger did not refer Pecorelli to another printing company. 49. Pecorelli placed an order on April 26, 1998, with AVS for the following: 24 50/50 F.O.L. "Best" Tees - orange 12 50/50 F.O.L. "Best" pkt. Tees - orange 12 Toppers 5 /panel golf caps 1 Jersee hooded pullover sweats 1 Jersee 9 oz. Sweatshirts 6 50/50 F.O.L. "Best" pkt golfs - white Embroidered left /right chests $168.00 90.00 48.00 17.00 14.00 102.00 Total: $439.00 50. AVS Printing billed the township by invoice #98118, for the items ordered on April 26, 1998. a. The sales representative box was not included. Zieger, 95- 076 -C2 Page 8 51. Upon receipt of invoice #98118, dated April 26, 1998, Stowe Township Secretary Marie Incorvati verified the order with Zieger. a. Zieger's signature appears at the bottom of invoice #98118 approving the purchase. b. After verification, Incorvati placed the invoice on the bill list for approval of payment by the Board of Commissioners. 52. The township's payment to AVS Printing regarding invoice #98118 was approved at the June 9, 1998, meeting of the Board of Commissioners. a. Zieger was present at the June 9, 1998, meeting. b. The motion to pay the June bill list was unanimously approved by all. c. Zieger seconded the motion to pay the June bill list. 53. Stowe Township check #010631, in the amount of $439.00 was issued on June 10, 1998, to the order of AVS Printing. a. Check #010631 was deposited by AVS Printing at National City Bank of Pennsylvania, Pittsburgh, PA on June 15, 1998. 54. Pecorelli placed an order to AVS on October 30, 1998, for the following: 4 Jersee 9 oz. Sweatshirts - orange $ 60.00 XL 6 Jersee hooded pullover sweats - ash 108.00 18 Toppers 5 /panel golf caps - navy 72.00 Total: $240.00 55. AVS Printing billed the township on October 30, 1998, by invoice #98354. a. The sales representative box contained the initials J.J. 1) JJ are the initials for Joseph Jacobs. 56. Upon receipt of invoice #98354, dated October 30, 1998, Township Secretary Marie Incorvati verified the order with Zieger. a. Zieger's signature appears at the bottom of invoice #98354, indicating approval of the purchase. b. After verification, Incorvati placed the invoice on the bill list for approval of payment by the Board of Commissioners. 57. The township's payment to AVS Printing for invoice #98354, was approved at the November 10, 1998, meeting of the Board of Commissioners. a. Zieger was present at the November 10, 1998, meeting. b. The motion to pay the November bill list, was unanimously approved by the board. Zieger, 9$- 076 -C2 Page 9 58. Stowe Township check #01 1016, in the amount of $240.00, was issued on November 12, 1998, to the order of AVS Printing. a. Check #011016 was deposited by. AVS Printing at National City Bank of Pennsylvania, on November 16, 1998. 59. Pecorelli ordered jackets on December 17, 1998, for township employees from AVS. 6 Holloway cotton duck zip quilt jacket spice 1 Ig /4 xI /1 xxl $330.00 Total: $330.00 60. AVS Printing billed Stowe Township by invoice #98407, which listed the order date of December 17, 1998. a. The sales representative box contained the initials J.J. for Joseph Jacobs. 61. Upon receipt of invoice #98407, dated December 17, 1998, Stowe Township Secretary Marie Incorvati, verified the order with Zieger. a. Zieger's signature appears at the bottom of invoice #98407, indicating approval of the purchase. b. Incorvati placed the invoice on the final December bill list for payment. 62. The township's payment to AVS Printing regarding invoice #98407, was approved at the January 12, 1999, meeting of the Board of Commissioners. a. Zieger was present at the January 12, 1999, meeting. b. Zieger made the motion to pay the final December bill list. c. The motion to pay the final December bill list was approved by a 5 to 1 vote of the board, with Commissioner Bennie Fedorski voting no. 63. Stowe Township check #1072, in the amount of $330.00 was issued on December 31, 1998, to the order of AVS Printing. a. Check #1072 was deposited by AVS Printing at National City Bank of Pennsylvania, Pittsburgh, PA on January 21, 1999. 64. The purchases made by the township from AVS printing were types of items used by the road department. a. Hats have not been purchased since at least 1994. b. Jackets have not been purchased for the Stowe Township Public Works Department since at least 1994. 65. T- shirts, sweatshirts, and polo type shirts have been purchased on a regular basis by the Stowe Township Public Works Department since at least 1995. 66. Gross business receipts of AVS Printing in 1998 totaled $178,341.00. Zieger, 98- 076 -CZ Page 10 a. Purchases by the Stowe Township Public Works Department totaled $1,009.00. b. Purchases by the Stowe Township Public Works Department accounted for 0.6% of AVS Printing gross business receipts in 1998. 67. AVS realized a 25% profit on the sales to the township in April and October, 1998. a. A profit of approximately $7.50 per jacket was realized for the December 1998 purchase. 68. The Stowe Township bill paying procedures are as follows: a. Stowe Township bill lists are voted on as a whole. b. Bill lists are typically distributed to the board of commissioners prior to the meeting. c. All original invoices are brought to Stowe Township meetings by the township secretary. d. A motion is made and seconded to approve payment of the bill list. e. Commissioners are polled individually for their vote. f. Individual votes are recorded in meeting minutes unless the vote is unanimous. g. Any abstentions are recorded in the minutes. 69. Frank and Mary Ann Zieger received no income as a result of the purchases by the Public Works Department. 70. Zieger did not disclose his or his wife's association with AVS Printing at any public meetings of the Stowe Township Board of Commissioners. 71. Zieger filed a Statement of Financial Interests in 1997 for the 1996 calendar year as a candidate for Stowe Township Commissioner. a. Zieger filed a Statement of Financial Interests for the 1996 calendar year on March 8, 1997. b. Zieger did not disclose any creditors on line 10 confirming his co- signing of the loan for AVS. 72. Zieger filed a Statement of Financial Interests as a Stowe Township Commission for the 1997 calendar year on March 1, 1998. a. Zieger did not disclose any creditors (Line 10) confirming his co- signing of the loan for AVS. 73. Zieger used his position for the private pecuniary benefit of a member of his immediate family and /or a business with which the family member is associated when he approved purchases in 1998 from AVS printing and participated in approving payments to AVS. Zieger, 98- 076 -CZ Page 11 Date Invoice Tot Action by Zieger a. 04/26/98 98118 $439.00 Signature on Invoice; Motion to pay, vote b. 10/30/98 98354 $240.00 Signature on invoice, vote c. 12/17/98 98407 $330.00 Signature on invoice, motion to pay, vote 74. Total profit realized by AVS is as follows: a. 25% of $439.00 - $109.75 b. 25% of $240.00 - $ 60.00 c. $7.50 x 6 jackets -$ 45.00 Total $214.75 III. DISCUSSION: At all times relevant to this matter, the Respondent, Frank Zieger, Jr., hereinafter Zieger, has been a public official subject to the provisions of the Public Official and Employee Ethics Act ( "Ethics Act "), Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq. as codified by Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101, ei The issue is whether Zieger as a Stowe Township Commissioner violated Sections 1103(a), 1103(f) and 1105(b) of the Ethics Act as to the allegations that he participated in Board actions regarding purchases from AVS Printing, a business in which his spouse is a part owner; and when the contract with that business was entered into without an open and public process; and when he failed to list on Statements of Financial Interests, filed for the 1996 and 1997 calendar years, loans he co- signed on behalf of that business. Section 1103. Restricted activities. (a) Conflict of interest. - -No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 Pa.C.S. § 1103(a). The term "conflict of interest" is defined under the Ethics Act as follows: Section 1102. 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. The term does not include an action having a de minimis economic impact or Zieger, 98- 076 -C2 Page 12 which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 Pa.C.S. §1102. Section 1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting. Section 1103. Restricted activities. (f) Contract. - -No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 Pa.C.S. §1103(f). - In addition, Section 1103(f) specifically provides in part that no public official /public employee or spouse or child or business with which he or the spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. Section 1105(b)(4) of the Ethics Act, under current thresholds, requires that every public official /public employee and candidate list the name and address of each creditor owed in excess of $6500 and the rate. Initially, we must consider a procedural issue that has arisen regarding the receipt of an Answer to the Investigative Complaint. The pleading stage in this case Zieger, 9$- 076 -C2 Page 13 began with the issuance of the Investigative Complaint on July 23, 1999. On its face, the Investigative Complaint stated that an Answer had to be received at this Commission within thirty (30) days of issuance and that the Respondent should take that document immediately to an attorney. In this case, an Answer was received on August 26, 1999, which was 33 days after the issuance of the Investigative Complaint. Although the envelope in which the Answer was received has a metered date of August 19, 1999, the envelope contains a U.S. Postmark of August 24, 1999. The Answer was due (to be received at this Commission) on August 23, 1999. It is clear under the Ethics Act and Regulations that a response to the Investigative Complaint must be received within 30 days. 65 Pa.C.S. §1108(e); 51 Pa. Code §21.5(k). As noted above, even the face sheet of the Investigative Complaint states that an Answer must be received within 30 days. The Answer in this case was received three days late. In order for a late answer to be deemed timely filed, we apply the same standard as is applied by the courts to untimely appeals (see, Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (Pa. Commw. Ct. 1984) applying that standard in administrative proceedings to an untimely request for a hearing). The standard is that to accept the untimely filing as if it were timely, there must either have been fraud or a breakdown in the administrative process, see, West Penn Power Co. v. Goddard, 460 Pa. 551, 333 A.2d 909 (1975); Bianco v. Robinson Twp., 556 A.2d 993 (Pa. Commw. Ct. 1989), which includes the postal process (Getz v. Pennsylvania Game Commission, 475 A.2d 1369 (1984)), or there must have been unique and compelling factual circumstances establishing non - negligent failure to file timely, Grimaud v. Dep't of Env. Resources, 638 A.2d 299 (Pa. Commw. Ct. 1994); Bass v. Com., 485 Pa. 256, 401 A.2d 1 133 (1979). None of the conditions for allowing the filing of a late Answer is present in this case. In fact, there has not even been any allegation of fraud, any breakdown in the administrative process or the mail delivery system, or any unique and compelling factual circumstances that would establish a non - negligent failure to timely file. Parenthetically, we note that our Regulations allow for the filing of an application for an extension to file an Answer. 51 Pa. Code §21.5(k). No such request was made in this case prior to the filing deadline. Accordingly, this case will be decided based upon the averments in the Investigative Complaint which are now admitted fact findings. We shall now summarize the relevant facts. Zieger has served as a member of the Stowe Township Board of Commissioners since November, 1997, and as the Chairman of the Public Works Committee (Committee) since January, 1998. As the Committee Chair, Zieger deals directly with the Public Works Department (PWD) Supervisor who is responsible for purchasing supplies for the Road Department employees. Since uniforms are provided to workers as per a union contract, the PWD Supervisor places all orders for uniforms and advises the Committee Chair of the companies with which the orders are placed. Zieger approves the orders for uniforms without prior Board approval since the uniforms are required pursuant to union contract. PWD uniforms and related items were purchased from various companies from 1995 through 1997. In July, 1997, PWD made such purchases from three companies, one of which was from AVS Printing. This purchase was made before Zieger served on the Township Board. AVS Printing is a textile printing business which is owned by Linda Jacobs and Mary Ann Zieger who is Zieger's spouse. Zieger, 92- 076 -C2 Page 14 When AVS Printing was purchased by Mary Ann Zieger and Linda Jacobs, financing had to be obtained to effectuate the agreement. Although the business assets of AVS Printing were provided as collateral, additional financing was needed. Zieger and his spouse signed an agreement to provide additional collateral for the AVS Printing purchase. Zieger and his spouse however received no income from AVS Printing. After Zieger was appointed Commissioner, only three purchases totaling $1,009 have been made from AVS Printing. The PWD Supervisor advised Zieger prior to placing any of the orders with AVS Printing. The first order was placed on April 26, 1998, which totaled $439. Zieger's signature appears at the bottom of the invoice for that purchase. Subsequently, the bill was submitted to the Township Board for approval as part of a list of bills. Zieger seconded the motion which carried unanimously to approve the list of bills which included the purchase from AVS Printing. On October, 30, 1998, the PWD Supervisor placed an order to AVS Printing in the amount of $240. Zieger's signature appears on the invoice as to that purchase. In addition, Zieger was present and voted at a November 10, 1998, Board meeting to approve the bills list which included the invoice for that particular purchase from AVS Printing. On December, 17, 1998, the PWD Supervisor placed an order with AVS Printing totaling $330. Zieger's signature appears on the purchase invoice and Zieger was present at a January 12, 1999, meeting wherein he made the motion to approve the bills list, which included the invoice of AVS Printing. The motion carried in a 5 -0 vote with Zieger voting with majority. All the purchases made by the Township from AVS Printing involved items used by the Road Department. Zieger never disclosed his spouse's association with AVS Printing at any Public Meeting of the Board. As to the SFI's that Zieger filed for the calendar years 1996 and 1998, he did not disclose any creditor as to his co- signing of the loan for AVS Printing. Zieger used his position for the private pecuniary benefit of a business with which his spouse is associated when he participated in Board actions to approve purchases from AVS Printing in 1998. The total profit realized by AVS Printing as to such purchases totaled $214.75. Having summarized the above relevant facts, we must now determine whether the actions of Zieger violated Section(s) 1103(a), 1103(f) and 1105(b) of the Ethics Act. As a Township Commissioner and Chairman of the PWD Committee, Zieger is a public official. Zieger used the authority of his office as to the three purchases from AVS Printing in 1998. Although it was the PWD Supervisor that chose AVS Printing, Zieger signed the invoices. In addition, Zieger participated and voted at the Board meetings to approve bill lists which included invoices from AVS Printing. Such actions were uses of authority of office. See, Juliante, Order 809. The uses of authority of office resulted in a private pecuniary consisting of the $214.75 that AVS Printing made as to those three sales. Lastly, the private pecuniary benefit inured to a business with which a member of Zieger's immediate family is associated in that his spouse is a part owner of AVS Printing. Accordingly, Zieger violated Section 1103(a) of the Ethics Act when he used the authority of office by participating in Board actions which resulted in a pecuniary benefit to a business with which his spouse is associated. Zieaer, 98- 076 -C2 Page 15 Turning to Section 1103(f) of the Ethics Act, we find no violation of this provision of the Ethics Act. The prohibition of Section 1103(f) becomes operative as to contracts of $500 or more. In this case the contracts between the Township and AVS Printing were all under $500. Further, based upon the facts before us, there were three separate contracts. See, Astolos, Order 741. Accordingly, Zieger did not violate Section 1 103(f) of the Ethics Act regarding contracts between the Township and AVS Printing in that the contracts were under the $ 500 threshold provision of the Ethics Act. Finally, as to Section 1105(b) of the Ethics Act, the facts reflect that Zieger did not list the creditor as to the loan he co- signed for AVS Printing when he filed his SFI's for the calendar years 1996 and 1997. Accordingly, Zieger violated Section 1105(b) of the Ethics Act when he failed to disclose a creditor on his SFI for the calendar years 1996 and 1997. Turning to the matter of restitution, Section 1107(13) of the Ethics Act, 65 Pa.C.S. §1107(13), specifically empowers this Commission to impose restitution in those instances where a public official /public employee has obtained a financial gain in violation of the Ethics Act. In this case, since it has been determined that a financial gain has been obtained in violation of the Ethics Act, restitution is warranted. Therefore, Zieger is directed to make restitution in the amount of $214.75 payable through this Commission to Stowe Township within 30 days of the mailing of this Order. Zieger is further directed to file, within 30 days of the date of mailing of this Order, amended SFI's with Stowe Township for the calendar years 1996 and 1997 listing the creditor and rate regarding his co- signing the loan as to AVS Printing. Copies of the amended SFI filings must be also filed with this Commission for compliance verification purposes. Compliance will result in the closing of this case with no further action. Non - compliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Frank Zieger, Jr., as a Commissioner in Stowe Township, Allegheny County, is a public official subject to the provisions of Act 9 of 1989/Act 93 of 1998, Chapter 11. 2. Zieger violated Section 1103(a) of the Ethics Act when he participated in actions as to the award and payment of contracts with AVS Printing, a business with which his spouse is associated. 3. Zieger did not violate Section 1103(f) of the Ethics Act as to contracts between the Township and AVS Printing in that such contracts did not exceed the $500 threshold of the Ethics Act. 4. Zieger violated Section 1105(b)(4) of the Ethics Act when he failed to disclose on his 1996 and 1997 calendar year SFI's, regarding creditors, his co- signing of a loan to AVS Printing. In Re: - Frank Zieger, Jr. ORDER NO. 1134 File Docket: - 98- 076 -C2 Date Decided: 8/30/99 Date Mailed: 9/7/99 1. . Frank Zieger, Jr., as a Commissioner in Stowe Township, Allegheny County, violated Section 1103(a) of the Ethics Act when he participated in actions as to the award and payment of contracts with AVS Printing, a business with which his spouse is associated. 2. Zieger did not violate Section 1103(f) of the Ethics Act as to contracts between the Township and AVS Printing in that such contracts did not exceed the $500 threshold of the Ethics Act. 3. Zieger violated Section 1105(b)(4) of the Ethics Act when he failed to disclose on his 1996 and 1997 calendar year Statements of Financial Interests, regarding creditors, his co- signing of a loan to AVS Printing. 4. Zieger is directed to make payment of $214.75 through this Commission to Stowe Township and file amended Statements of Financial Interests for the calendar years 1996 and 1997 within 30 days of the mailing date of this Order. a. Compliance with the foregoing will result in the closing of this case with no further action by the Commission. b. Non- compliance will result in the institution of an order enforcement action. BY THE COMMISSION, egtthuE &dad DANEEN E. REESE, CHAIR