HomeMy WebLinkAbout816 BradleyIn re: BRUCE J. BRADLEY
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
File Docket:
: Date Decided:
: Date Mailed:
87 -023 -C
Dgcgmber 4, 1991
December 11,1991
Before: Dennis C. Harrington,
James M. Howley
Roy W. Wilt
Austin M. Lee
James P. Gallagher
Allan M. Kluger
The State Ethics Commission received a complaint regarding a
possible violation of the State Ethics Act, No. 170 of 1978, P.L.
883. Written notice, of the specific allegation(s) was served at the
commencement of the investigation. A Findings Report was issued and
served, upon completion of the investigation, which constituted the
Complaint by the Investigation Division. An Answer was filed and a
hearing was waived. A Consent Order was submitted by the parties to
the Commission for consideration which was subsequently approved.
This adjudication of the Commission is hereby issued which sets forth
the individual Allegations, Findings of Fact, Discussion, Conclusions
of Law and Order.
Chair
This adjudication is final and will be made available as a public
document fifteen'days after issuance. However, reconsideration may be
requested which will defer public release of this adjudication pending
action on the request by the Commission. A request for
reconsideration, however, does not affect the finality of this
adjudication. A reconsideration request must be received at this
Commission within fifteen days of issuance and must include a detailed
explanation of the reasons as to why reconsideration should be granted
in conformity with 51 Pa. Code §2.38.
The files in this case will remain confidential in accordance
with Section 8(a) of Act 170 of 1978 during the fifteen day period and
no one unless the right to challenge this Order is waived, may violate
confidentiality by releasing, discussing or circulating this Order.
However, confidentiality does not preclude discussing this case with
an attorney at law.
Any person who violates confidentiality of the Ethics Act is
guilty of a misdemeanor subject to a fine of not more than $1,000 or
imprisonment for not more than one year, 65 P.S. 409(e).
I. ALLEGATION
That you, a member of the Penn Cambria School District, violated
the following provisions of the State Ethics Act (Act 170 of
1978), which prohibits public employees or public officials use of
office or confidential information gained through that office to
obtain financial gain when you voted to award and then renew a
school bus contract to a company who you sell insurance through
your private business:
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 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. 65 P.S. 5403(a).
II. FINDINGS
1. Bruce Bradley has served as a member of the Cambria School
Board since November of 1979.
2. Bradley is an Insurance Agent for the State Farm Insurance
Company.
a. Bradley has been an agent with State Farm since
June 1, 1974.
3. The Penn Cambria School District had a contract with the
Biter Bus Company to provide transportation for school
district students.
The contract was effective December 2, 1977.
Cambria School Board took action at its September
meeting to terminate the contract with Biter Bus
Minutes of that meeting confirm the following:
"It be resolved that the contract between Penn
Cambria School District and Biter Bus Company,
dated December 2, 1977, be herewith terminated
effective September 5, 1979. The reasons for the
termination is in accordance with Paragraph 21 of
the contract."
a .
4. The Penn
11, 1979
Company.
a .
1) Non - compliance with the specific terms of the
contract in that Biter Bus Company did not
transport students in accordance with the
terms of the contract and the school code of
the Commonwealth of Pennsylvania.
Bradley, 87 -023 -C
Page 3
2) Material breaches of various terms of the
contract wherein the terms of the contract
were not performed since December 5, 1979.
Roll Call Vote:
Affirmative: Mrs. Stoltz, Mr. Flinn, Mr.
Lawn, Mrs. Schettig, Mr. Smith and Mrs. Evon
Negative: None
b. Bruce Bradley was not a member of the school
board at this time.
5. On September 11, 1979 the Penn Cambria School Board
ratified a contract with H &J Trucking to provide for the
transportation of school district students.
a. The negotiations for this contract were handled by
Thomas Kissell, the School District
Superintendent, and James McNulty, Owner of H &J
Trucking.
6. The board action at the September 11, 1979 meeting
confirmed as follows:
a. Whereas the Penn Cambria School District, through
it's school board and administrator, has
negotiated a bus transportation contract for the
balance of the school year, 1979 - 1980, with H &J
Trucking Inc. It be resolved that the Penn
Cambria School District, through it's duly elected
Board of School Directors, enter into a
transportation contract with the H &J Trucking
Inc., in accordance with the terms and conditions
contained in the contract.
Roll Call Vote:
Affirmative: Mr. Flinn, Mr. Lawn, Mrs. Schettig,
Mr. Smith, Mrs. Stoltz and Mrs. Evon
Negative: None
c. The terms of the contract were identical to those
in contract with Biter.
d. Bruce Bradley was not a member of the school
board at this time.
Bradley, 87 -023 -C
Page 4
6. H &J Trucking's primary business concerned the hauling of
coal.
a. The business was owned by James McNulty.
1) McNulty's son, Gerald, Assisted him in this
business.
b. James McNulty turned the entire bussing operation
to his son, Gerry McNulty, sometime between 1980
to 1982.
7. In 1979, H &J Trucking, through James McNulty, offered to
take over the school bus contract.
a. H &J Trucking had no prior school bus experience.
b. James McNulty approached Thomas Kissell, School
District Superintendent, and offered to take over
the contract.
8. Gerald McNulty changed the name of the bussing operation to
Helen Transportation in 1981.
a. Helen Transportation, Inc. was incorporated on
December 14, 1981.
b. Gerald McNulty is listed as the President of the
corporation.
9. The Penn Cambria School Board took action at board meetings
to renegotiate and renew contracts with H &J Trucking and
Helen Transportation:
a. August 19, 1980:
Motion by Vaux, seconded by Bradley, carried
unanimously to approve the following resolution:
Resolved: That an agreement for the
transportation of school students be entered
into between H &J Trucking and Penn Cambria
School District for the school years 1980 -
1981 through 1984 - 1985 inclusive and as
detailed below (copy on file):
1) Per diem rate for 1980 - 1981 shall be
$2,108.00.
2) Contractor and school district agree to
share 50/50 the wholesale cost of
Bradley, 87 -023 -C
Page 5
gasoline in excess of $1.00 per gallon
to $1.25 per gallon.
3) School district agrees to assume the
entire cost increase of wholesale
gasoline over and above $1.25 per
gallon.
4) Per diem rate for 1981 - 1982 shall be
8% of the per diem costs experienced in
1980 - 1981.
5) Daily rates for the ensuring years of
the contract shall be reopened for
negotiation between the parties to this
agreement.
Roll Call Vote:
Affirmative: Mr. Smith, Mrs. Stoltz,
Mr. Vaux, Mr. Bradley, Mr. Flinn,
Dr. Overberger and Mrs. Evon
Negative: None
b. ,'anuary 18, 1983:
Whereas the current five year agreement with
Helen Transportation Inc., for the transportation
of school students is currently in it's third year
and whereas the daily rate for the charter rate
for buses are subject to negotiation for the
school year 1982 - 1983,,and for the remaining
years of this contract.; now, therefore, be it
resolved that the daily rate of the charter rates
are established as follows:
School Daily Rate Hourly Rate Rate
Year Per Bus Per Driver Per Mile
1982 -1983 $ 97.44 $ 7.00 $ 1.00
1983 -1984 103.29 7.00 2.00
1984 -1985 109.49 7.00 1.00
Be it further resolved: That the current
contract be extended a period of three additional
years:
(i.e., 1985 -86, 1986 -87, 1987 -88); rates for
these years shall be reopened to negotiations by
Bradley, 87 -023 -C
Page 6
parties to the agreement, and be it further
resolved that the president and secretary of the
school district be authorized to attach their
signatures to this agreement.
Roll Call Vote:
Affirmative: Mr. Lee, Dr. Overberger, Mrs.
Schettig, Mr. Smith, Mr. Bradley, Mr. Itle and
Dr. Rittner
Negative: None
Abstaining: Mr. Yahner
c. November 15, 1983:
Whereas the current five year agreement with
Helen Transportation, for the transportation of
school students currently in its first year; and
whereas as a revised school schedule in a
reduction in a number of buses utilized, has
increased the overall daily miles run by the
current number of buses; now, therefore, be it
resolved; that the daily rate per bus be adjusted
as follows:
School Daily Rate Hourly Rate Rate
Year Per Bus Per Driver Per Mile
1983 -1984 $ 107.79
1984 -1985 114.26
$ 7.00
7.00
$ 1.00
1.00
Be it further resolved: That the daily rate in
the charter rate, which are currently opened and
subject to negotiations for the 1985 - 1986, 1986
- 1987, 1987 - 1988 school years are adjusted as
follows:
School Daily Rate Hourly Rate Rate
Year Per Bus PeK Driver Per Mile
1985 -86 $ 120.54 $ 7.40 $ 1.06
1986 -87 127.17 7.80 1.12
1987 -88 134.16 8.23 1.18
Be it further resolved: That the current
contract be extended for a period of three
Bradley, 87 -023 -C
Page 7
additional years (i.e., 1988 -89, 1989 -90, 1990-
91); rates for these years shall be reopened to
negotiations by the party to the agreement, and be
it further resolved that the president and the
secretary of the Board of School Directors be
authorized to attach their signatures to this
agreement.
Roll Call Vote:
Affirmative: Mr. Smith, Mr. Vaux, Mr. Bradley,
Mr. Itle, Mr. Lee, Mr. Overberger, Mrs. Schettig
and Dr. Rittner
Negative: None
d. August 16, 1988:
It be resolved that the solicitor be authorized to
settle the dispute with Helen Transportation, Inc.
for $5,000.00. The business administrator is to
draft a check for the same.
Roll Call Vote:
Affirmative: Mr. Hoover, Mr. Rowe, Mr.
Strittmatter, Mr. Tiracave, Mr. Wimer and
Mrs. Clear
Negative: None
Abstain: Mr. Bradley
10. Negotiations for the November 15, 1983 contract extension
were handled by Gerald McNulty, President of Helen
Transportation, Inc., and Thomas Kissel' and Roger Brubaker,
representing Penn Cambria School District.
a. Thomas Kissell was the Superintendent of Penn
Cambria School District.
b. Roger Brubaker was the Business Manager of the
Penn Cambria School District.
11. H &J Trucking, Inc. had it's school bus insurance coverage
with the Myers Insurance Agency, 318 Railroad Street,
Gallitzin, PA 16641.
a. The coverage began on or about September 11,
1979.
Bradley, 87 -023 -C
Page 8
b. The coverage was terminated by Gerry McNulty,
President of Helen Transportation, Inc., on
August 30, 1983.
12. During June or July of 1983, Gerry McNulty approached Bruce
.Bradley requesting a quote for school bus insurance from the
State Farm Insurance Company.
a. McNulty contacted other insurance agencies, but
State Farm offered the best rates.
b. State Farm Insurance Company requires between 30
and 60 days to process an application of this
nature.
c. Gerry McNulty provided Bruce Bradley with a list
of school bus drivers.
d.- Bradley forwarded the list of drivers to State
Farm Insurance Company as part of the
application.
13. Effective August 30, 1983, Helen Transportation, Inc.
switched it's school bus insurance policy from the Myers
Insurance Agency, Gallitzin, PA to State Farm Insurance
Company.
a. State Farm provided insurance to Policy #F50
0079- B30 -38.
14. Bruce Bradley was the State Farm Insurance Agent who
handled Helen Transportation's policy from it's inception on
August 30, 1983 until it's termination on July 8, 1988.
15. Records of a State Farm Insurance Company indicates that the
following premiums were paid to State Farm Insurance by
Helen Transportation, Inc. for Policy #F50 0079- B30 -38.
a. August 30, 1983 - August 30, 1984 $ 5,819.30
b. August 30, 1984 - August 30, 1985 $ 6,667.81
c. August 30, 1985 - August 8, 1986 $ 8,405.76
d. August 8, 1986 - June 30, 1987 $ 9,433.93
e. June 30, 1987 - July 8, 1988 $ 1,760.85
f. Total August 30, 1983 - July 8, 1988
$32,087.65
Bradley, 87 -023 -C
Page 9
g. Bruce Bradley is reflected as the agent.
16. Agents representing the State Farm Insurance Company
receive a 10% commission on all insurance which they sell.
a. Bruce Bradley earned $3,208.77 in commission for
his insurance dealings with Helen Transportation
Inc., between August 30, 1983 and July 8, 1988.
17. Bruce Bradley, in the presence. of his attorney, provided the
following information to an investigator for the State
Ethics Commission:
a. He receives a 10% commission on all insurance
that he sells for State Farm Insurance Company.
b. He personally had no influence on setting
insurance premiums for Helen Transportation, Inc.
This was handled by the State Farm Insurance
Company's underwriters.
c. He had no idea why Helen Transportation, Inc.
received a contract extension on January 18, 1983
when two years remained on the existing contract.
1) At that time, he had no insurance
dealings pending with Gerry McNulty of
Helen Transportation, Inc.
d. Gerry McNulty approached him in June or July of
1983 seeking a quote for school bus insurance.
e. He was not the only insurance agent McNulty
contacted.
1) State Farm Insurance Company apparently
offered the best rates.
f. Effective August 30, 1983, Helen Transportation,
Inc. switched it's insurance coverage to State
Farm.
1) He was the agent handling Helen
Transportation, Inc.'s policy.
g. On November 15, 1983, he voted in favor of a
contract extension for. Helen Transportation, Inc.
III. DISCUSSION:
As a member of the Penn Cambria School District, Bruce J.
Bradley, 87 -023 -C
Page 10
Bradley, hereinafter Bradley, is a public official as that term is
defined in the Ethics Act, 65 P.S. 402; 51 Pa. Code 1.1. As such, his
conduct is subject to the provisions of the Ethics Act and the
restrictions therein are applicable to him.
Initially, it is noted that Section 9 of Act 9 of June 26, 1989,
P.L. 26, provides, in part, as follows:
"This amendatory act shall not apply to
violations committed prior to the effective date
of this act, and causes of action initiated for
such violations shall be governed by the prior
law, which is continued in effect for that purpose
as if this act were not in force. For the
purposes of this section, a violation was
committed prior to the effective date of this act
if any elements of the violation occurred prior
, thereto."
Since the occurrences in this case transpired prior to the
effective date of Act 9 (June 26, 1989), we must apply the provisions
of Act 170 of 1978, P.L. 883, to determine whether the Ethics Act was
violated.
Under Section 3(a), 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, use of office by a public official to
obtain a 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
interests; Koslow v. State Ethics Commission, 116 Pa. Commw. Ct. 19,
540 A.2d 1374 (1988). Likewise, a public official /employee may not
use the status or position of public office for his own personal
advantage; Huff, Opinion 84 -015.
In the instant matter, we must determine whether Bradley as a
school board director violated Section 3(a) of the Ethics Law quoted
above when he voted to award or renew a school bus contract with Helen
Transportation, Inc., a company that he sold insurance as agent of
record for a private insurance business.
Factually, Bradley served as a member of the Cambria School Board
since November, 1979. In a private capacity, Bradley has been an
insurance agent for State Farm Insurance Company since June, 1974.
Prior to Bradley's service on the School Board, the Penn Cambria
School Board terminated its existing transportation contract with the
)
)
Bradley, 87 -023 -C
Page 11
Biter Bus Company and then contracted for such services with H &J
Trucking on September 11, 1979. In 1981, the name of H &J Trucking was
changed to Helen Transportation, Inc. with Gerald McNulty listed as
corporate president.
The minutes of the Penn Cambria School Board reflect the following
action concerning the renegotiation or renewal of contracts with H &J
Trucking /Helen Transportation:
On August 19, 1980, Bradley seconded and voted in favor of
a unanimous resolution for a transportation agreement with H &J
Trucking for school years 1980 - 1981 through 1984 - 1985; on
November 15, 1983, Bradley voted in favor of a resolution with one
member abstaining which extended the Helen Transportation contract
for three additional years after adjusting the rates for the ea
1982 - 1983 through 1984 - 1985; on November 5, 1983, Bradley in favor of a unanimous resolution setting the rates for rs
for - 1984 and - 1984 - 1985 years as well as extending the the
contract for a period of three additional years and on August 16,
1988, Bradley abstained as to a resolution which passed that
authorized the Solicitor to resolve an existing dispute with Helen Inc. for $ The negotiations for the
foregoing contract extensions were handled by Gerald McNult n
behalf of Helen Transportation, Inc. and by Thomas Bissell an
Roger Brubaker on behalf of the Penn Cambria School District.d
Gerald McNulty of Helen Transportation, Inc. maintained schoo
insurance coverage for his business. 1 bus
switched coverage to State Farm InsuranceACompany0where3Bruceulry
was an agent. During the summer of 1983, McNulty a
requestin a Bradley
g quote for school bus insurance; contacted Bradley
insurance agencies but found that State Farm offered the best as a State Farm Insurance agent handled Helen
Transportation's policy t rates.
T 1988. olio from August 30, 1983 until termination on July
Since State Farm Insurance Company agents receive a ten
percent commission on all insurance they sell, Bradley earned
commissions on the insurance dealings with Helen Transportation
for the five year period.
Inc.
In applying the provisions of Section 3(a) of the Ethics Act
quoted above to the instant matter, we find a technical violation
Section 3(a) of the Act. There was a use of office on the a
Bradley in this case by voting in favor of the contracts for of
Transportation, Inc. In particular, Bradley voted in favor of the
contract extension on November 15, 1983 after Helen Transportation
Inc. on August 30, 1983 switched its insurance coverage to State F
Insurance with Bradley as the agent of record who received ten
commissions on the sale of that insurance. a�
financial gain to Bradley ey adle Percent
compensation provided for and such financial gain is other than
Public School Code which al lows a school board memberPto vo ter in
vote on
Bradley, 87 -023 -C
Page 12
contracts as to which he has an indirect interest. However, the
initial contract with H &J Trucking (Helen Transportation, Inc.) was
entered into before Bradley began to serve on the school board. In
addition, we do note that Bradley was not a swing vote as to the
voting during the August 19, 1980 and November 15, 1983 school board
meetings. In addition, the coverage terminated in July 1988.
Accordingly, based upon the totality of the facts and circumstances of
this case we will take no further action.
IV. CONCLUSIONS OF LAW:
1. Bruce Bradley as a member of the Cambria School Board is a
public official subject to the provisions of Act 170 of
1978.
2. A technical violation occurred when Bradley voted to extend
contracts for Helen Transportation, Inc. which company
was an agent of record.
placed insurance with State Farm Insurance, of which Bradley
In re: BRUCE J, BRADLEY
: File Docket: 87 -023 -C
: Date Decided: December 4,191
: Date Mailed: December 11,1991
ORDER No. 816
1. A technical violation occurred when Bruce Bradley, as a
Penn Cambria School District member, voted to extend
contracts for Helen Transportation, Inc. which company
placed insurance with State Farm Insurance, of which Bradley
was agent of record.
2. Based upon the totality of the facts and circumstances this
Commission will take no further action.
BY THE COMMISSION,
AI I �� �ll� ZR crrt:.,�.�
INGTON /
DENNIS C. CHAIR