HomeMy WebLinkAbout801 HelselIn re: Theodore Helsel, Sr.
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
: File Docket: 88 -122 -C
Date Decided: 5/23/91
: Date Mailed: 6/10/91
Before: Helena G. Hughes, Chair
Robert W. Brown, Vice Chair
Dennis C. Harrington
James M. Howley
Daneen E. Reese
Austin M. Lee
The State Ethics Commission received a complaint regarding a
possible violation of the State Ethics Act, No. 170 of 1978, 65 P.S.
401 et. seq. 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 not filed and a hearing was waived. 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 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 the Ethics Act, 65 P.S. 408(a) 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).
ADJUDICATION
1. Alleaation: That you, a member of the Board of Directors of the
Greater Johnstown School District (GJSD), violated the below noted
provisions of the State Ethics Act (Act 170 of 1978), when you
solicited gifts, including, but not limited to: trips, meals and
transportation from school district vendors in return for your support
in awarding /renewing school district contracts with these vendors, and
when you failed to report such gifts on your Statements of Financial
Interests.
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. §403(a).
(b) No person shall offer or give to a
public official or public employee or candidate
for public office or a member of his immediate
family or a business with which he is associated,
and no public official or public employee or
candidate for public office shall solicit or
accept, anything of value, including a gift, loan,
political contribution, reward, or promise of
future employment based on any understanding that
the vote, official action, or judgment of the
public official or public employee or candidate
for public office would be influenced thereby. 65
P.S. S403(b).
Section 5. Statement of financial interests.
(b) The statement shall include the following
information for the prior calendar year with
regard to the person required to file the
statement and the members of his immediate family:
(6) The name and address of any person from whom
a gift or gifts valued in the aggregate at $200 or
more were received, and the value and the
circumstances of each gift. However, this
provision shall not be applicable to gifts
received from the individual's spouse, parents,
parents by marriage, siblings, children or
grandchildren. 65 P.S. §405(b)(6).
Mr. Theodore Helsel, Sr.
Page 2
A. Findings:
1. Theodore H. Helsel, Sr. served as a member of the Greater
Johnstown School District Board of Directors, from January 1, 1986
through December 31, 1989.
a. Mr. Helsel served as president of the school board in 1986.
b. Mr. Helsel served as vice - president of the school board in
1988.
c. Mr. Helsel served on a number of school board committees
during his term of office including the Bid Review
Committee, Insurance Committee, Cafeteria Committee, Finance
and Purchasing Committee, and the Legislative Committee.
2. Mr. Helsel, in his capacity as School Director, also served as a
representative to the Greater Johnstown Area Vocational Technical
School Joint Operating Committee, from 1986 through 1989.
a. Mr. Helsel also represented the school district on the
Appalachia Intermediate Unit No. 8 School Board until June
30, 1989.
3. During the period that Mr. Helsel was on the Greater Johnstown
School Board, he was also a member, and Treasurer of the Johnstown
Cambria County Airport Authority.
4. Theodore H. Helsel, Sr., as a member of the Greater Johnstown
School District Board of Directors, received favors, gifts and
gratuities in the form of dinners, the use of vans, tickets to
sporting events, transportation and political contributions from the
following vendors who regularly did business or had contracts with
the Greater Johnstown School District:
a. Mcllwain School Bus Lines
b. Nutrition Incorporated
c. Patrick Ditko Architect
d. Scheetz and Smith Insurance Brokers
e. Goff and Irwin, Marketing Communication
f. Combined Insurance Company
Mr. Theodore Helsel, Sr.
Page 3
g. Central Tax Bureau of Pennsylvania Incorporated
The following Findings relate to Greater Johnstown School
District's contract with Mcllwain School Bus Lines:
5. Mcllwain School Bus Lines provides transportation services to the
Greater Johnstown Area School District.
a. These services have been provided for approximately fifteen
years.
6. Mcllwain School Bus Lines is owned and operated by Robert
Mcllwain and Douglas Mcllwain.
7. Mcllwain School Bus Lines never encountered a problem in its
business relationship with the school district or in relation to the
contract to provide transportation services until 1986.
8. In 1986, shortly after assuming the office of school director,
Mr. Helsel arranged for a meeting with the owners of Mcllwain School
Bus Lines, himself and Dorothy Miller, another member of the school
board.
a. Mr. Helsel had concerns about the transportation contract.
b. The meeting took place but nothing was accomplished because
Mr. Helsel and Dorothy Miller left the meeting.
c. The transportation services contract was not scheduled for
renewal or review during that year. The rate was scheduled
for negotiation.
9. Minutes of the Greater Johnstown School District for September
16, 1985 indicate that the Board approved a 5 year contract with
Mcllwain School Bus Lines Incorporated, with the actual amount
determined only for the 1985/1986 year. The remaining 4 year costs
were to be negotiated on or before April 15 of each ensuing year. If
settlement was not reached by then, the contract could be re -bid.
10. In 1986, Mcllwain School Bus Lines attempted to renegotiate the
rate as set forth above.
11. The contract rate was to be reviewed by a committee of the
school board members and various meetings were held in relation
thereto.
a. During these meetings, Mr. Helsel consistently criticized
Mcllwain School Bus Lines.
Mr. Theodore Helsel, Sr.
Page 4
12. Mr. Helsel was attempting to have Mcllwain School Bus Lines
ousted as the district transportation provider.
13. During one meeting, the representatives of Mcllwain were advised
that other transportation service companies were going to make
presentations in relation to the school transportation contract.
a. That meeting was scheduled for January 30, 1986.
14. A letter from Brian Perty, Secretary to the Greater Johnstown
School District, to the board members, indicates that the other
transportation providers who would be present were:
Eagle - Wolfington Leasing Corporation, Lodestar Bus Lines
Incorporated, and Robblett School Bus Lines.
15. At that time, the contract was not up for renewal and no bids
had been solicited.
16. It was the opinion of the school district solicitor after
reviewing the September 16, 1985 minutes, as expressed in a January
24, 1986 letter to the school board secretary, that the school board
was „ obligated to negotiate in a good faith effort with Mcllwain, and
Mcllwain alone, up until April 15, 1986 for a transportation rate..."
a. It was the further opinion of the solicitor that the
committee meeting scheduled for "January 30, 1986 should
only be concerned with the Mcllwain Bus Lines and the rest
of the bus lines should be informed not to attend."
17. Mr. Helsel had personally approached the representative of Lode
Star Bus Company and requested that they present a bid on the school
district bus contract.
18. Mr. Helsel personally approached the representative of Eagle
Wolfington Leasing Company and requested that a presentation on the
school district bus contract be made.
19. Minutes of the Greater Johnstown School District indicate the
following in relation to the District's contract with Mcllwain School
Bus Lines:
a. January 27, 1986:
Present: Arcurio, Gjurich, Helsel, Miller, Salem,
Soulcheck, Torok, Zahorchak. Absent: Mrs. Stefanik.
Mcllwain Bus Lines, Incorporated Contracts - a meeting has
been set for Thursday, January 30, 1986 to discuss the bus
Mr. Theodore Helsel, Sr.
Page 5
transportation contract with Mcllwain Bus Lines
Incorporated.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Helsel, Miller, Salem, Torok, Zahorchak
Nays: Gjurich. Abstained: Soulcheck. Absent: Mrs.
Stefanik.
b. March 24, 1986:
Mcllwain School Bus Lines, Incorporated Contracts - after a
brief discussion, Mrs. Miller made a motion, seconded by Mr.
Gjurich to table Mr. Soulcheck's request to approve the bus
contract with Mcllwain School Bus Lines, Incorporated for
further information.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Miller, Salem, Soulcheck,
Torok, Zahorchak. Nays: None. Absent: Mrs. Stefanik.
c. April 14, 1986:
Mcllwain School Bus Contract - Mr. Soulcheck requested that
the Board approved the Mcllwain School Bus Contract. After
a lengthy discussion, a motion was made by Mr. Helsel,
seconded by Mrs. Miller, to table the Mcllwain School Bus
Contract until further information is received.
This motion was approved on the following roll call vote:
Ayes: Helsel, Miller, Salem, Torok, Zahorchak. Nays:
Arcurio, Gjurich, Stefanik.
d. April 28, 1986:
Approval of Mcllwain School Bus Lines, Incorporated Contract
for the 1986 -1987 School Year - on motion of Mr. Arcurio,
seconded by Mr. Zahorchak, the Board approved the Mcllwain
School Bus Lines, Incorporated contract for the 1986 -87
school year as per Attachment #2.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Salem, Soulcheck, Stefanik, Torok,
Zahorchak. Nays: Helsel. Absent: Miller.
Mr. Helsel, Chairman of the Finance and Purchasing Committee
commented that the reason he voted no on the approval of the
Mcllwain School Bus Lines, Incorporated, contract was that
he has done a transportation study and feels that this
contract is not the best contract that Mcllwain School Bus
Mr. Theodore Helsel, Sr.
Page 6
Lines, Incorporated, could provide the Greater Johnstown
School District.
Mr. Soulcheck commented that the school district's
administrative staff had checked out the Mcllwain School Bus
Lines, Incorporated contract, various other contractors, and
various other school districts and upon the gathering of
their information which was brought back to the Board, it
was determined that the Mcllwain School Bus Lines,
Incorporated was cheaper than other districts in our
community providing transportation services.
e. April 24, 1989:
Finance and Purchasing Committee Agenda - The Finance and
Purchasing Committee Agenda was reviewed by Mrs. Polke,
Chairman. (A) Mrs. Polke asked Mr. Artman to explain Item
#3, extension of student transportation agreement with
Mcllwain School Bus Lines, Incorporated. Mr. Artman
referred this Item to Mr. Bichko and the solicitor. The
solicitor explained that there was concern with the new
contract regarding the increases on inflation based on the
Consumer Price Index.
Extension of Student Transportation Agreement with Mcllwain
School Bus Lines, Incorporated. The five year extension
beginning the 1990 -1991 school year - on motion of Mr.
Mulvehill, seconded by Mrs. Mihalic, the Board tabled the
Extension of the Student Transportation Agreement with
Mcllwain School Bus Lines, Incorporated, of Johnstown,
Pennsylvania. The solicitor was directed to stay in
negotiations with Mcllwain School Bus Lines, Incorporated in
the Item of discussion concerning the transportation
contract.
This motion was approved on the following roll call vote:
Ayes: Aspey, Helsel, Mihalic, Mulvehill, Oravec, Porcher.
Nays: None. Absent: King, Polke, Taylor.
f. May 18, 1989:
Finance and Purchasing Committee Agenda - C. Item #4,
extension of student transportation agreement with Mcllwain
School Bus Lines, Incorporated - Attorney Kuzmiak was asked
to explain the results of the meeting which occurred between
Bob Mcllwain, Mr. Doug Mcllwain, Mr. Bichko, Mr. Artman, and
himself concerning this extension of the student
transportation agreement. He commented basically on two
items: (1) That a 4.5% cap on the Consumer Price Index
would be intact for the annual increase up to 6% at which
Mr. Theodore Helsel, Sr.
Page 7
time the contractor can petition the board for an
adjustment. (2) It was agreed that Mcllwain School Bus
Lines, Incorporated, would provide six new buses for the
1989 -1990 school year, and after that they would provide a
pro -rata share of all new buses to the Greater Johnstown
School District.
g. May 22, 1989:
Approval of extension of student transportation agreement
with Mcllwain School Bus Lines, Incorporated - after
comments by the solicitor, Mr. Helsel made a motion,
seconded by Mr. Mulvehill to approve an extension of the
student transportation agreement with Mcllwain School Bus
Lines, Incorporated of Johnstown, Pennsylvania for a five
year period beginning with a 1990 -1991 school year as per
Attachment #8 based on the administration's recommendation.
The following items are included in this five year contract:
(1) The rate of increase on the remaining year, 1989 -1990
will be estimated on the Consumer Price Index for the 1988
calendar year. (2) The rate of increase on the following
years will also be based on the Consumer Price Index with a
4.5% cap. If indeed the Consumer Price Index goes above the
4.5 %, the contractor will absorb the cost until the Consumer
Price Index reaches 6 %, at which time the contractor can
petition the Board for an adjustment. (3) Also removed from
the five year contract is the 6 new buses clause. The new
clause will read: The contractor will provide a pro -rata
share of all newly purchased buses to the Greater Johnstown
School District. It was further commented that in the
1989 -1990 school year, the contractor will still be required
to purchase 6 new buses.
The above motion was approved on the following roll call
vote: Ayes: Aspey, Helsel, Mihalic, Mulvehill, Oravec,
Polke, Porcher, Taylor. Nays: None.
20. Minutes of the Greater Johnstown School District indicate that
the Board of Directors routinely approved the payment of invoices
submitted by Mcllwain Bus Lines for transportation services with
Theodore Helsel participating on the following dates:
December 2, 1985
October 13, 1986
November 12, 1986
December 22, 1986
February 16, 1987
March 2, 1987
March 16, 1987
Mr. Theodore Helsel, Sr.
Page 8
21. School district records disclose that on the 28th of May, 1986,
an agreement was made between the board of directors of the Greater
Johnstown School District of Cambria County, Pennsylvania and McIlwain
School Bus Lines, Incorporated, of Johnstown, Pennsylvania. In this
agreement, Mcllwain agreed to provide transportation for school pupils
for the school years 1986 -87, 1987 -88, 1988 -89, and 1989 -90.
a. Although present at the meeting, Mr. Theodore Helsel,
President of the Board of School Directors for the Greater
Johnstown School District, refused to sign the agreement and
the agreement was signed by Raymond R. Arcurio, Vice
President for the School District Board of Directors.
22. Shortly after the transportation services contract was renewed,
Mr. Helsel approached Robert Mcllwain and requested that he purchase
tickets to a political fund raiser.
a. Mcllwain purchased the tickets.
23. During the course of his term as a member of the Greater
Johnstown Area School District Board of Directors, Theodore Helsel
contacted Mcllwain School Bus Lines and requested the utilization of
a company van for personal purposes.
24. Records of Mcllwain School Bus Lines indicate that vans were
obtained by Theodore Helsel on the following occasions:
a. On July 30, 1987, (Notation indicates that Theodore Helsel
borrowed a Ford Van).
b. November 13, 1987, Dodge Van, 4:00 PM, (A notation indicates
"Helsel ").
c. On August 5, 1988, (A notation indicates Ted Helsel Van, to
return on Sunday, August 7).
d. On November 23, 1988, (A notation indicates van for Ted).
e. On December 10, 1988, (A notation indicates Ted Helsel, red
van).
f. June 9, 1990, (there is a notation, Dodge Van Helsel 1:00 PM
PU).
September 29, 1990, (there is a notation, red van for Ted
Helsel; stamped over that is the word, cancelled).
h. Mr. Helsel was never charged for these vans. The vans were
always filled with gasoline when they were loaned out.
g.
Mr. Theodore Helsel, Sr.
Page 9
25. One of the occasions on which Mr. Helsel requested and utilized a
Mcllwain van was to attend a fishing trip to Lake Erie sponsored by
Nutrition Incorporated, the School District's Food Service and
Cafeteria provider. (See Findings 24(c) and 74).
26. Mr. Helsel requested a Mcllwain van on two occasions to travel
to the Harrisburg area to attend a football game.
27. Mr. Helsel requested a Mcllwain van to attend a seminar at
Bucknell University.
28. In March, 1989, Robert McIlwain was approached by Mr. Helsel at
which time Mr. Helsel requested the use of a van to travel to
Orlando, Florida.
a. Mr. Helsel was going to attend a school conference and was
taking his family with him.
b. Mcllwain refused to supply the van.
29. Mcllwain School Bus Lines also provides transportation services
to the Appalachia Intermediate Unit No. 8.
30. Theodore Helsel was a member of the Appalachia Intermediate Unit
No. 8 Board of Directors.
31. Minutes of the meetings of the Appalachia Intermediate Unit No.
8 Board of Directors indicate as follows regarding transportation
contracts:
a. Approval of the following transportation contracts was
granted on a motion by Mr. Ullery, seconded by Mr. Yoder and
carried by roll call vote. It was also noted that these
amounts will need to be revised when routes and numbers of
children are firmly established:
C. Cambria County: Mcllwain School Bus Lines, $688.12. On
page seven, E. preschool - Mcllwain Bus Lines $8.50. Roll
call - yes - 10 - Mr. Yoder, Mr. Ullery, Mrs. Ransay, Mr.
Knisely, Mr. Helsel, Mrs. Fedore, Mr. Detwiler, Mr. Byich,
Mr. Barnett, Mrs. Burchfield.
b. Approval of the following transportation contracts was
granted on a motion by Mr. Helsel, seconded by Mrs. Simunich
and carried by roll call vote. It was also noted that these
amounts will need to be revised when routes and numbers of
children are firmly established:
C. Cambria County: Mcllwain Bus Lines, $720.00. Roll call
Mr. Theodore Helsel, Sr.
Page 10
vote - yes. Burchfield, Syich, Colbert, DeBalli, Detwiler,
Helsel, Ransay, Simunich, Knisely.
c. August 25, 1988: Under Cambria County, Mcllwain Bus Lines,
$727.20. Roll call vote - yes: Barnett, Brant, Burchfield,
Colbert, Darling, DeBalli, Helsel, McKnight, Mitchell,
Ramsay, Knisely.
32. Mr. Helsel's votes on the bus contracts as a member of the
Appalachia Intermediate Unit No. 8, Board of Directors, occurred
during the same period of time that he was requesting and receiving
gratuities from the school bus company.
33. Records obtained from the Appalachia Intermediate Unit 8 School
in Ebensburg, Pennsylvania, on which Board of Directors, Mr. Helsel,
sat as a member, disclosed that Mr. Helsel attended the AASA
Conference in Orlando, Florida on March 3 through 6, 1989.
a. Mr. Helsel was paid by the Intermediate Unit $488.52 for
2,124 miles at .23 a mile. He was paid an additional
$41.40 for 180 miles driving from the hotel to the
convention center and restaurants. The total reimbursement
for mileage paid to Mr. Helsel by the Intermediate Unit for
the Orlando trip was $529.92.
b. Records of Budget Rent -A -Car of Johnstown, Pennsylvania
indicate that Mr. Helsel rented a 15 passenger Ford Van on
March 1, through March 8, 1989 at a rate of $55 per day.
This rental was made after Mcllwain refused to supply a van
for Mr. Helsel's use. (See Finding 28).
c. The total cost for the rental was $866.82.
d. Records of Budget Rent -A -Car of Johnstown, show that Mr.
Helsel travelled 2,506 miles in a van that he rented from
them on March 1, 1989. One third of those miles was free as
per his contract, resulting in a total paid mileage of 1,671
miles. At .25 a mile, Mr. Helsel paid the rental company
$417.75 for mileage.
e. Mr. Helsel's actual mileage expenses totaled $417.75.
Although he was actually reimbursed $529.92 by the
Intermediate Unit.
f. The other costs associated with the van rental were assumed
by Mr. Helsel.
34. In addition to the requests to utilize Mcllwain School Bus Line
Mr. Theodore Helsel, Sr.
Page 11
vans, Mr. Helsel routinely requested that Mcllwain purchase tickets to
political events.
35. The representatives of Mcllwain School Bus Lines felt pressured
by the requests made by Mr. Helsel because of the manner in which he
tried to have their contract terminated in 1986.
36. Mcllwain School Bus Lines also provided transportation services
to the Greater Johnstown School District Vocational Technical School.
37. Theodore Helsel was a member of the Joint Operating Committee of
the Greater Johnstown Area Vocational Technical School and in that
capacity, participated in various decisions of the committee.
38. Minutes of the Greater Johnstown Area Vocational Technical
School operating Committee indicate the following in relation to
Mcllwain School Bus Lines:
a. August 25, 1987 - Mr. Helsel made a motion to increase
Mcllwain Bus Lines rate by $3 per run. The motion failed
due to a lack of a second to the motion.
On a motion of Mr. Gjurich, seconded by Mrs. Block, it was
moved that Mcllwain receive an additional $2.50 per run for
the 1987, 1988 school year. A roll call vote was taken with
the voting as follows: Ayes: Faunce, Aspey, Gjurich,
Helsel, Zahorchak, Hagins, Block. Nays: Jackson, Beyer,
Basile. The motion was defeated.
(Note: Although the minutes indicate that the vote was 7 -3
in favor of the motion, the minutes are apparently in error
and the votes against were not properly recorded).
On motion of Mrs. Faunce, seconded by Mr. Helsel, it was
moved that the bus contracts be brought back on the table
for discussion. A roll call vote was taken with the voting
as follows: Ayes: Faunce, Aspey, Gjurich, Helsel,
Zahorchak, Hagins, Block. Nays: Jackson, Beyer, Basile.
Motion carried.
b. September 22, 1987 - On motion of Mr. Soulchek, seconded by
Mr. Helsel, it was moved that Mcllwain Bus Lines
Incorporated be compensated an additional $3.18 per run for
the 1987 -88 school year. A roll call vote was taken with
the voting as follows: Ayes: Faunce, Basile, Helsel,
Soulchek, Stefanic. Nays: Beyer, Bartsch, Hagins,
McGuiness and Block. Motion defeated.
On motion of Mr. Helsel, seconded by Mrs. Parch, it was
moved that McIlwain Bus Lines Incorporated be compensated an
Mr. Theodore Helsel, Sr.
Page 12
additional $2.50 per run for the 1987 school year. A roll
call vote was taken with the voting as follows: Ayes:
Faunce, Basile, Parch, Helsel, Soulchek, Stefanic, Hagins,
McGuiness. Nays: Mr. Beyer, Mrs. Block. Motion carried.
c. April 25, 1989 - On a motion by Mr. Helsel, seconded by
Mrs. Aspey, it was moved to meet with the bus contractors.
A roll call vote was taken with the voting as follows:
Ayes: Paluch, Mrs. Aspey, Helsel, Porcher. Nays: Jackson,
Faunce, Parch, Hagins, McGuiness, Saylor, Block. Motion
failed.
On a motion made by Mrs. Saylor, seconded by Mrs. Jackson,
it was moved that bus contracts be placed in sealed quotes.
A roll call vote was taken with the voting as follows:
Ayes: Jackson, Faunce, Parch, Paluch, Aspey, Helsel,
Saylor. Nays: Mrs. Hagins, McGuiness, Block. Abstention:
Porcher. Motion failed.
On a motion made by Mrs. Saylor, seconded by Mrs. Block, it
was moved that bus contracts be placed in sealed bids. A
roll call vote was taken with the voting as follows: Ayes:
Faunce, Paluch, Hagins, McGuiness, Saylor, Block. Nays:
Jackson, Parch, Aspey, Helsel. Abstentions: Mr. Porcher.
Motion failed.
On a motion made by Mrs. Hagins, seconded by Mrs.
McGuiness, it was moved to refer the bus contracts back to
committee. Motion carried.
d. May 23, 1989 . - On a motion of Mr. Porcher, seconded by Mr.
Helsel, it was moved to negotiate with the bus contractors
on the transportation contracts. A roll call was taken with
the voting as follows: Ayes: Thomas, Faunce, Beyer, Parch,
Paluch, Aspey, Helsel, Taylor, Oravec, Polke, Porcher.
Nays: McGuiness, Saylor, Block. Motion carried.
e. June 27, 1989 - On a motion by Mr. Helsel, seconded by Mrs.
Jackson, it was moved to proceed with bus contract
negotiations with the present contractors. A roll call
vote was taken with the voting as follows: Ayes: Jackson,
Faunce, Parch, Paluch, Aspey, Helsel, Polka, Porcher,
McGuiness, Saylor, Block. Nays: None. Motion carried.
39. Mr. Helsel's votes on the bus contracts, as a member of the
Vocational - Technical School, occurred during the same period of time
that he was requesting and receiving gratuities from the school bus
company.
Mr. Theodore Helsel, Sr.
Page 13
The following Findings relate to Greater Johnstown School
District contract with Nutrition, Incorporated.
40. Nutrition, Incorporated, West Newton, Pennsylvania, is engaged
in food service management, custodial maintenance management, laundry
service, vending and catering functions.
a. The company was formed in 1975.
b. Nutrition primarily renders its services to governmental
entities.
41. The prior food service management company was Custom Management
Corporation.
42. Minutes of the Greater Johnstown Area School District Board of
Directors meetings indicate the following in relation to the prior
food service manager, Custom Management Corporation.
a. December 2, 1985:
Mr. Helsel questioned whether the Custom Management Food
Service Contract could be reopened. Mr. Helsel questioned
Custom Management personnel using the school district's
copying machines and copy paper and why school district
personnel unload the surplus food in the school buildings.
Mrs. Miller expressed concerns on buying food commodities
locally.
b. December 16, 1985:
Cafeteria Agenda - A. Mrs. Miller, Chairman, commented that
she had nothing to present at this time, but informed the
board that she would like to discuss the Custom Management
Contract at the January 14, 1986 Committee Meeting.
Custom Management Contracts - the board referred the Custom
Management Contract to the Cafeteria Committee for further
study.
Ayes: Mr. Arcurio, Gjurich, Helsel, Miller, Salem,
Soulcheck, Stefanik and Torok. Nays: None. Absent: Mr.
Zahorchak.
c. December 30, 1985:
Present: Arcurio, Gjurich, Helsel, Miller, Salem,
Soulcheck, Stefanik, Torok, Zahorchak. Absent: None.
Mr. Theodore Helsel, Sr.
Page 14
Cafeteria Agenda - A. Custom Management Contracts - Mrs.
Miller, Chairman, directed that each board member receive a
copy of the Custom Management Contract for the January 14,
1986, committee meeting.
d. April 14, 1986:
Approval of Cafeteria Agenda - approval to send letter to
Custom Management Corporation pertaining to the district's
request - Dr. Hollis presented to the Board a letter
concerning the district's request pertaining to the summer
feeding program and the Custom Management Corporation
contract. On motion of Mr. Helsel, seconded by Mr.
Zahorchak, the board approved that Dr. Hollis forward this
letter as per Attachment #1 to the Custom Management
Corporation.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Miller, Salem, Soulcheck,
Stefanik, Torok, Zahorchak. Nays: None.
43. Nutrition Incorporated was the food service management
contractor for the Greater Johnstown School District from 1986
through the present.
a. In this capacity, Nutrition was responsible for the
operation of all school district cafeterias.
44. Records relating to the contracts between Nutrition,
Incorporated, and the Greater Johnstown School District indicate as
follows:
a. An agreement was made and entered into on the 15th day of
August, 1986 by and between the Greater Johnstown School
District and Nutrition Incorporated, whereby Nutrition would
provide food service on the client's premises. This
agreement, which terminated on August 14, 1987, was signed
by Theodore H. Helsel, Senior, President for the Greater
Johnstown School District and Edward W. Caswell, President
for Nutrition Incorporated.
b. On August 15, 1987, an agreement was entered into between
Greater Johnstown School District and Nutrition Incorporated
for food service for the Greater Johnstown School District.
This agreement which remained in effect until August 14,
1988, was signed by James Salem, for the Greater Johnstown
School District and Edward W. Caswell for Nutrition
Incorporated.
Mr. Theodore Helsel, Sr.
Page 15
c. An agreement was entered into on the 15th day of August,
1988 between the Greater Johnstown School District and
Nutrition Incorporated for food service management for one
year. This contract is signed for the Greater Johnstown
School District by Levi B. Hollis, Superintendent and for
Nutrition Incorporated, by Edward W. Caswell, President.
d. An agreement entered into on the 15th day of August, 1989 by
the Greater Johnstown School District and Nutrition
Incorporated for food management services, was signed by
Michael F. Bichko, Business Manager and Board Secretary and
Edward W. Caswell, President for Nutrition Incorporated.
45. Minutes of the Greater Johnstown School District indicate the
following actions in relation to the District's award and
implementation of the food services management contract with
Nutrition, Incorporated as well as other actions taken in relation
thereto:
a. May 28, 1986:
Approval of Cafeteria Agenda. Bid specifications for the
1986 -1987 food service contracts - Mr. Helsel announced that
the board will be advertising for bids on the 1986 -1987
food service contract on Monday, June 9, 1986, for three
consecutive weeks with the bids being due at 4:00 PM on
Friday, June 27, 1986. The Board will award the 1986 -1987
food service contract at the first Board meeting in July,
1986.
b. July 8, 1986:
On motion of Mr. Soulcheck, seconded by Mr. Salem, the Board
tabled the award of the tabulation of the bids on the food
service contract.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Miller, Salem, Soulcheck,
Stefanik, Zahorchak. Nayes: None.
c. July 28, 1986:
Approval of award of cafeteria food service contract - on
motion of Mr. Helsel, seconded by Mrs. Miller, the Board
approved the award of the cafeteria food service contract to
Nutrition, Incorporation, based on their net returns to the
school district out of the four proposals received.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Miller, Zahorchak.
Mr. Theodore Helsel, Sr.
Page 16
Nays: Salem, Soulcheck, Stefanik.
Attorney Ruzmiak rendered his opinion that Nutrition,
Incorporated gave an unconditional guarantee to the school
district. Mr. Soulchek commented on the unprofessional
letter that the board members received from Nutrition,
Incorporated.
d. September 29, 1986:
For information - the board accepted the following item as
information: (1) a letter received from the solicitor
concerning the proposed article of agreement to be entered
into by and between the Greater Johnstown School District to
end Nutrition, Incorporated as per Attachment #1.
e. October 13, 1986: contract language for Nutrition,
Incorporated food service contract - the Board accepted the
contract language for the Nutrition, Incorporated food
service contract as an item of information.
Attached to the October 13, 1986 minutes is a copy of the
minutes of the cafeteria committee meeting which was held on
August 13, 1986. Present at the meeting were Board
members, Soulcheck, Miller, Gjurich, Helsel, and Aspey, and
Mr. Thomas Walczak and Ross McClintock from Nutrition
Incorporated. Mr. McClintock outlined Nutrition's requests
and goals. Mr. Soulcheck suggested that Nutrition make
arrangement for the representative to be given a tour of
the operation and preparation of food. Mr. McClintock asked
the cafeteria committee to be sensitive to the operations of
institutional feeding. Mr. Helsel, Mrs. Miller and Mr.
Soulcheck requested Nutrition to check the equipment in the
schools and report back to the Board.
f. October 27, 1986:
Present - Aspey, Gjurich, Helsel, Miller, Salem, Soulchek
and Stefanik. Absent - Arcurio and Zahorchak.
(1) Permission to sign Nutrition, Incorporated food service
contract - the board held permission to sign the
Nutrition, Incorporated food service contract for
discussion and committee. Ross McClintock of
Nutrition, Incorporated will be invited to attend the
November 5, 1986, committee meeting to provide the
board with information regarding Nutrition's position
on a payment schedule.
Mr. Theodore Helsel, Sr.
Page 17
j
g•
Ayes: Aspey, Gjurich, Helsel, Miller, Salem, Soulchek
and Stefanik.
November 10, 1986:
Approval of permission to sign Nutrition, Incorporated food
service contract - a motion was made by Mr. Zahorchak,
seconded by Mr. Gjurich, to grant permission to sign the
Nutrition, Incorporated food service contract contingent
with the difference of the loss of interest to be absorbed
by Nutrition, Incorporated. After discussion, Mr. Zahorchak
and Mr. Gjurich changed their motion to grant permission to
sign the Nutrition, Incorporated food service contract as
presented.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Salem, Zahorchak
Nays: Aspey, Soulcheck, Stefanik. Absent: Mrs. Miller.
h. December 9, 1986:
Approval of Cafeteria Agenda - Paragraph B. For information
- Mr. Theodore Helsel, Mr. Gerry Davitch, Mrs. Sue Miller
and Mrs. Barbara Kuzminsky, accompanied by the District's
Food Service Director, Mr. Bob Brooks, visited the
McKeesport Breakfast Program on Thursday, December 4, 1986,
and gave reports on their visit. The board accepted these
reports as an item of information.
i. January 5, 1987:
Approval of Cafeteria Agenda - A. Approval of Nutrition
contract addendum initiating a pilot breakfast program - on
motion of Mr. Helsel, seconded by Mr. Salem, the Board
approved amending the existing Nutrition contract to include
an addendum for initiating a pilot breakfast program at the
Meadowvale Elementary School as per Attachment *1, pending
the solicitors review of this addendum.
The motion was approved on the following roll call vote:
Ayes: Arcurio, Aspey, Gjurich, Helsel, Miller, Salem,
Soulcheck, Stefanik, Zahorchak. Nays: None.
January 15, 1987:
Cafeteria Agenda. Cafeteria Committee meeting of January
14, 1987 - Mr. Soulcheck reported on the Cafeteria Committee
meeting of January 14, 1987, as follows: The lunch program
is in order. The breakfast program is beginning. He asked
Nutrition, Incorporated for publicity in the newspaper
Mr. Theodore Helsel, Sr.
Page 18
Shopper, radio and television. The administration had
already made arrangements for a feature story in the Tribune
Democrat, sunday edition, January 18, 1987 and WJAC -TV
reported on Wednesday, January 14, 1987. The Board directed
Mr. Scott McCloud to write an article on the breakfast
program and deliver it to Mr. George Pattman at the Tribune
Democrat and the Shopper. Mr. Soulcheck had questions on
the guaranteed return, contact Mr. Gerry Moore. A
representative is to go on the talk show regarding the
breakfast program and explain the cost to the taxpayers.
There were questions and discussion on the busing for the
breakfast program.
k. January 28, 1987:
Attached to the January 28, 1987 minutes as page 52, is a
letter from Richard J. Green, Solicitor to Levi B. Hollis,
PH.D., Greater Johnstown School District. The date is
December 31, 1986: the subject is pilot breakfast program -
Nutrition, Incorporated. Mr. Green's letter states, Dear
Dr. Hollis, I have reviewed the contract addendum you
forwarded to me and I find it to be in proper, legal form,
but I would advise that the addendum be dated and signed by
the proper people from Nutrition Incorporated. I assume the
calculations are correct. Richard J. Green, Jr., Solicitor.
Also attached to the file as page 53 is another letter to
the Board of School Directors and Dr. Hollis, dated January
8, 1987, relative to Nutrition, Incorporated addendum for
breakfast program. The letter states, members of the board
and Dr. Hollis, after my conference on Tuesday the 6th with
Dr. Hollis, John Melleky, and Gene Artman, I had a
conference with the representative from Nutrition. He
indicated that when the original presentation was made for a
breakfast program, the expected return to the district was
estimated at $11,536.00. Since the decision was made to go
with a pilot program at Meadowvale and then only for 97
days, the return to the district was reduced to $1,036.
The original estimate of $11,536.00 was based on total
enrollment.
1. February 12, 1987:
Cafeteria agenda. Mr. Soulcheck, Chairman, reviewed the
cafeteria agenda. A. Soulcheck commented concerning the
request from Nutrition, Incorporated for permission to
proceed with the application process for the summer food
service program for children. Discussion ensued with it
being noted that this process would be managed directly by
Mr. Theodore Helsel, Sr,
Page 19
Nutrition, Incorporated for the Greater Johnstown School
District, if approved.
m. February 16, 1987:
Present - Arcurio, Aspey, Gjurich, Helsel, Salem, Soulchek,
Stefanik, Zahorchak. Absent - Mrs. Miller.
(1) On motion of Mr. Helsel, seconded by Mr. Arcurio, the
board granted permission for Nutrition, Incorporated,
to proceed with the application process for the summer
food service program for children as per Attachment 1.
This motion was approved on the following roll call
vote: Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem,
Soulchek, Stefanik, Zahorchak.
(2) Approval to extend the Board's thanks to Nutrition
Incorporated. Mr. Helsel asked for a vote of
confidence commending Nutrition, Incorporated for the
superior work they're doing in the district's cafeteria
program. He stated that they are doing a much better
job than any other food service company the district
ever had. A motion was made by Helsel, seconded by
Zahorchak that the board approve a vote of confidence
commending Nutrition, Incorporated for the superior
work in the district's cafeteria program.
Mr. Soulchek commented that the apparent efforts of
Nutrition, Incorporated should be noted; however, other
companies that have been employed by the Greater
Johnstown School District had equally fine performance
records.
Mr. Helsel and Mr. Zahorchak amended their motion to
read that the board voted to extend their thanks to
Nutrition, Incorporated, for the development of the
breakfast program and the continued fine service in the
lunch program.
This motion was approved on the following roll call
vote: Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem,
Soulchek, Stefanik, Zahorchak.
Citizen's time to address the Board - under item C.
Mrs. Joan Mihalic commented that the food management
company is paid for providing a service and asked why
does the Board have to commend them for a job that they
are being paid to do.
Mr. Theodore Helsel, Sr.
Page 20
n. March 16, 1987:
Present - Arcurio, Aspey, Gjurich, Helsel, Miller, Salem,
Soulchek, Stefanik, Zahorchak.
(1) Attached to the minutes is a letter on the Greater
Johnstown School District letterhead signed by Dr. Levi
B. Hollis, PH.D. Superintendent of Schools, copy to the
school board of directors. Letter is addressed to Mr.
Charles R. Brooks, Food Service Director, Nutrition
Incorporated:
Dear Mr. Brooks:
On behalf of the Greater Johnstown School
District, I want to avail myself of this opportunity to
thank Nutrition for providing the "Teacher Appreciation
Day Lunch." I was in two schools today, and received
positive remarks from staff about Nutrition's
generosity, i.e. they were very pleased with the lunch
today.
Know that gestures like the above help with morale, and
are excellent public relations tools.
Wishing you continued success, I am very truly yours,
Levi B. Hollis.
o. April 6, 1987:
Approval of Cafeteria Agenda - A. Approval of request from
Nutrition, Incorporated for a nutrition education
presentation of school lunches - on motion of Mr. Zahorchak,
seconded by Mr. Helsel, the board approved the request from
Nutrition, Incorporated for a Nutrition, Incorporated
presentation of school lunches as follows: By: Ms. Vicki
Beere, RD, a member of Nutrition, Incorporated staff. Date:
Wednesday, May 20, 1987; Time: 1:00 PM; where: In an
available room at Meadowvale School.
Equipment needed - 4400 projector and screen. This
presentation will be opened to the Cafeteria Committee,
Mothers Club of the School District and other interested
parents, clubs or organizations - RSVP.
The above motion was approved on the following roll call
vote: Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem,
Soulcheck, Stefanik and Zahorchak. Nays: None. Absent:
Mrs. Miller.
Mr. Theodore Helsel, Sr.
Page 21
P-
Approval of requests from Nutrition, Incorporated for food
service department events and summer food service programs -
on a motion of Mr. Helsel, seconded by Mr. Zahorchak, the
board approved the following items pending the solicitor's
review of the contract and the identification of the utility
cost: (1) Cambria County School Food Service Association
Meetings - use of the cafeteria facilities either at
Meadowvale School or the high school on Tuesday, May 5, 1987
at 3:30 PM. (2) Month of April - plan special events. (3)
summer food service program - the Greater Johnstown School
District agreed to sponsor a summer food service program at
no cost to the district and, in addition, to sponsor
qualified sites outside the Greater Johnstown School
District, but within Cambria County as per Attachment No. 1.
The above motion was approved on the following roll call
vote: Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem,
Soulcheck, Stefanik, Zahorchak. Nays: None. Absent:
Mrs. Miller.
Request from Nutrition, Incorporated - the Board took no
action on the request from Mr. Robert Brooks, Nutrition,
Incorporated to have Mr. Thorne and his staff come into the
schools to conduct a survey to obtain information pursuant
to a presentation to the school board.
Approval of Nutrition, Incorporated special events - after
the explanation of the special events for the month of
April, 1987, Mr. Soulcheck made a motion, seconded by Mr.
Helsel, directing that an attempt be made to have special
events in all the school buildings.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem, Soulcheck,
Stefanik, Zahorchak. Nays: None. Absent: Mrs. Miller.
April 22, 1987:
Summer Feeding Program. Mr. Soulcheck again requested a
financial breakdown of the summer feeding program cost to
the district. Mr. Bichko commented that this breakdown was
not yet available from Nutrition, Incorporated with a
promise that it would be made as soon as possible.
q. May 4, 1987:
Approval of Minutes. A. A motion was made by Mr. Helsel,
seconded by Mrs. Aspey, to approve the following minutes ps
presented: (1) Greater Johnstown School District Committee
Meeting Report, April 22, 1987.
Mr. Theodore Helsel, Sr.
Page 22
The Board then called for questions on a motion. Mr.
Soulcheck questioned Item 6- A -(7), Approval, of request from
Nutrition, Incorporated. He said that this item was not
explained on the previous personnel agenda and he thought
the survey in question was for the summer feeding program.
He then called for a rescinding of this item. Discussion
ensued. B. Mr. Zahorchak made a motion to eliminate Item
6- A -(7), Approval of request from Nutrition, Incorporated.
C. Mrs. Aspey then withdrew her second to the motion for
the approval of the minutes.
The solicitor gave his opinion stating that you cannot
eliminate anything from the minutes, but you can clarify or
amend the minutes.
Mr. Zahorchak's motion died for a lack of a second.
Mr. Helsel again made a motion, second by Mr. Arcurio, to
approve the following minutes as presented:
Greater Johnstown School District Committee Meeting Report,
April 22, 1987.
Greater Johnstown School District, Special Board Meeting,
April 22, 1987.
The above motion was defeated on the following roll call
vote: Ayes: Helsel, Salem, Soulcheck. Nays: Arcurio,
Aspey, Stefanik, Zahorchak. Absent: Gjurich, Miller.
Mr. Soulcheck then made a motion, seconded by Mrs. Aspey,
for a moratorium on Item 6- A -(7), Approval of request from
Nutrition, Incorporated.
Mr. Zahorchak made a motion, seconded by Mr. Helsel, to
table a moratorium on Item 6- A -(7), Approval of request from
Nutrition, Incorporated.
This motion was defeated on the following roll call vote:
Ayes: Arcurio, Helsel, Zahorchak. Nays: Aspey, Salem,
Soulcheck, Stefanik. Absent: Gjurich, Miller.
A motion was made by Mr. Arcurio, seconded by Mr. Zahorchak
to eliminate the request from Nutrition, Incorporated to
come into the schools to conduct a survey until after the
first of the year. The solicitor ruled that this motion was
out of order and the Board should focus on approving the
minutes.
Mr. Theodore Helsel, Sr.
Page 23
Mr. Salem made a motion to amend Item 6 -A(7), Approval of
request from Nutrition, Incorporated, with this request to
be investigated in the future. This motion died for a lack
of a second.
A motion was made by Mr. Helsel, seconded by Mr. Salem, to
amend the special board meeting minutes of April 22, 1987,
on 6 -A(7), Approval of request from Nutrition, Incorporated,
would Nutrition, Incorporated be permitted to conduct a
survey sometime in the future. No roll call vote was taken.
Approval of minutes. A. On motion of Mr. Helsel, seconded
by Mr. Arcurio, the board approved the following minutes as
presented: (1) Greater Johnstown School District,
Committee Board, April 22, 1987.
Greater Johnstown School District, Special Board Meeting,
April 22, 1987.
The above motion was approved on the following roll call
vote: Ayes: Arcurio, Aspey, Helsel, Salem, Soulcheck,
Stefanik, and Zahorchak. Nays: None. Absent: Gjurich,
Miller.
Mrs. Stefanik qualified her yes vote by advising that she
felt that she did not have sufficient information regarding
6 -A(7), Approval of Request from Nutrition, Incorporated,
which he voted on the previous personnel agenda.
A motion was made by Mr. Arcurio, seconded by Mr. Soulcheck
to eliminate the request from Nutrition, Incorporated to
come into the schools to conduct the survey. Mr. Arcurio
and Mr. Soulcheck then withdrew their motion based on the
advice of the solicitor to wait until the personnel agenda
to bring up this item.
r. July 6, 1987:
On motion of Mr. Zahorchak, seconded by Mr. Helsel, the
Board approved the request from the United Cerebral Palsy of
Southern Allegheny's Region, Incorporated as per Attachment
1, regarding their agency entering into a contractual
agreement to provide lunches with Nutrition, Incorporated,
who utilizes the Greater Johnstown High School Cafeteria and
cooking equipment, pending the approval of the solicitor and
Mr. Bichko, Business Manager, and with the proviso that
there will be no cost to the Greater Johnstown School
District.
This motion was approved on the following roll call votes
Mr. Theodore Helsel, Sr.
Page 24
Ayes: Arcurio, Aspey, Gjurich, Helsel, Miller, Salem,
Soulcheck, Stefanik and Zahorchak. Nays: None.
s. August 13, 1987:
Committee Meeting Report.
Present: Aspey, Gjurich, Helsel, Salem, Soulcheck
Absent: Arcurio, Miller, Stefanik, Zahorchak
The Cafeteria Committee meeting of the Board of Directors of
the Greater Johnstown School District was called to order at
7:00 PM on Thursday, August 13, 1987, in a seminar room at
the Meadowvale Elementary School and the following items of
business were discussed:
1. Mr. Soulcheck, Chairman conducted a general review of
the cafeteria agenda.
2. Mr. Soulcheck questioned the lateness of the 1987 -1988
budget presentation by Nutrition, Incorporated and
requested an explanation of the suggested increases.
Mr. Ross McClintock from Nutrition, Incorporated
offered an explanation of the 1987 -88 budget and
entertained questions from the board members.
3. Mr. Ross McClintock explained the summer feeding
program.
4. Mr. Ross McClintock announced that Ms. Kathy Bednarik
will be the Food Service Director for the Greater
Johnstown School District for the 1987 -1988 school
year.
t. August 17, 1987:
Approval of Cafeteria Agenda - A. 1987 -1988 Projected food
service budget - a motion was made by Mr. Helsel, seconded
by Mr. Gjurich, to hold the approval of the 1987 -1988
projected food service budget from Nutrition, Incorporated.
Discussion ensued. Ms. Kathy Bednarik, Food Service
Director, was called in front of the Board to discuss the
1987 -88 projected food service budget and asked the board
for some time so she could discuss the budget with
Nutrition, Incorporated. This information is to be brought
back to the Board later in the evening. B. Cafeteria
Committee meetings - Mr. Soulcheck, Chairman of the
Cafeteria Committee, announced that the Cafeteria Committee
Mr. Theodore Helsel, Sr.
Page 25
u. November 2, 1987:
w.
meeting which was scheduled for 7:00 PM on Wednesday, August
19, 1987, will be held at 8:30 PM.
Approval of 1987 -1988 Projected food service budget.
Discussion ensued. After Ms. Bednarik, Food Service
Director, gave an explanation of the 1987 -1988 projected
food service budget, a motion was made by Mr. Helsel,
seconded by Mr. Salem, to approve the 1987 -88 projected food
service budget with a district -wide lunch and breakfast
program as per Attachment #1.
This motion was approved on the following roll call vote:
Ayes: Aspey, Gjurich, Salem, Helsel, Soulcheck and Stefanik
Nays: None. Absent: Arcurio, Miller, Zahorchak.
Approval of Cafeteria Agenda - A. Approval of food service
management agreement with Nutrition, Incorporated - on
motion of Mr. Helsel, seconded by Mr. Zahorchak, the Board
approved the food service management agreement with
Nutrition, Incorporated, for the 1987 -1988 school year as
per Attachment #1.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Heinlein, Helsel, Salem, Stefanik,
Zahorchak. Nays: Aspey. Absent: Soulcheck.
v. February 18, 1988:
Mr. Zahorchak reviewed both the Cafeteria Committee agenda
and the Education and Curriculum Committee agenda. A. Mr.
Zahorchak asked Mr. Ross McClintock from Nutrition,
Incorporated to address the Board. He did so by giving the
Board a copy of a letter saying that the said letter offers
all the explanation he wished to make at this particular
time. B. 1988 summer food service program - Mr. Bichko
addressed the 1988 summer food program at the request at Mr.
Zahorchak.
March 21, 1988: Present - Aspey, Gjurich, Helsel, King,
Mulvihill, Oravec, Porcher, Williams, Zahorchak.
(3) Attached to the March 21, 1988 minutes was a copy of
the following petition to the Board. "I WOULD LIKE TO
PRESENT THESE PETITIONS, WITH 700 SIGNATURES, TO THE
SCHOOL BOARD. THE PETITION READS AS FOLLOWS:
NUTRITION, INC.
Mr. Theodore Helsel, Sr.
Page 26
THERE ARE MANY PARENTS AND TAX PAYERS WITHIN OUR
DISTRICT CONCERNED ABOUT THE ISSUES INVOLVING THIS
COMPANY, AND WORRIED ABOUT WHAT THE CHILDREN IN OUR
DISTRICT ARE EATING IN OUR SCHOOLS. WE WOULD HOPE THE
BOARD WOULD TARE THIS UNDER SERIOUS CONSIDERATION."
WE WOULD ALSO LIKE THE BOARD TO REALIZE THAT OUR
COMPLAINTS ARE NOT TO BE TAKEN AS A CRITICISM OF THE
WORKERS IN THE CAFETERIA. WE FEEL THAT IT IS THE FOOD
SERVICE ITSELF WHO IS TO BLAME FOR THE CONCERNS THAT
WE HAVE MENTIONED, FOR IT IS THEY WHO MAKE THE
DECISIONS CONCERNING THE MATTERS WE HAVE ADDRESSED.
The petitions presented contained signatures of residents of
Johnstown, Pennsylvania. At the top of each page is the
following statement: The undersigned concerned citizens of
the Greater Johnstown School District would strongly urge
the school board representing us to consider changing our
food service company for the 1988 -1989 school year based on
the following considerations: Twice during the last six
weeks our present food service company has violated sections
of the State Code governing food handling, specifically
transporting milk without refrigeration and also by serving
butter contaminated with mold. We feel that a company that
ascribes to these practices lacks integrity and has little
concern to the health and safety of our children.
April 25, 1988: Present - Aspey, Gjurich, Helsel, King,
Mulvihill, Oravec, Porcher, Williams, Zahorchak.
(1)
Denial of request for the use of school facilities - on
motion of Mr. Helsel, seconded by Mr. Oravec, the Board
denied the request from Mrs. Donna Clawson, parent
representative at Chandler Elementary School, for
permission to use the seminar room at the Meadowvale
Elementary School to hold meetings of the advisory
board to the school food service.
This motion was approved on the following roll call
vote: Ayes: Gjurich, Helsel, Mulvihill, Oravec,
Porcher, Williams, Zahorchak. Nays: Mrs. Aspey.
x. May 19, 1988:
Present: Aspey, Helsel, King, Mulvehill, Oravec, Porcher,
Williams
Absent: Gjurich, Zahorchak
Mr. Theodore Helsel, Sr.
Page 27
y•
z .
Correction of Minutes. The Board discussed the correction
on the minutes of the Greater Johnstown School District,
regular Board meeting, held April 25, 1988, on page 4,
regarding approval of Bid Review Committee Agenda, 9- A -(2),
approval for permission to advertise for bids. The motion
replacing to delete the food service contract should read as
follows: A motion was made by Mrs. Aspey, seconded by
Gjurich, to open up bids on the food service contract.
May 23, 1988:
Adoption of food service policy - Mr. Porcher commented that
Nutrition, Incorporated is in the process of compiling a
food service policy for all concerned which will be brought
before the Board for its consideration. He complimented
the parents for seeing problems and bringing them to the
Board's attention and requested that they continue to do so.
June 27, 1988:
Approval for renewal of the contract with Nutrition,
Incorporated for the 1988, 1989 school year - on motion of
Mr. Helsel, seconded by Mr. Mulvihill, the Board approved a
budget for the renewal of the contract with Nutrition,
Incorporated for the 1988 - 1989 school year as per
Attachment II with the return to the district of $49,308.
This motion was approved on the following roll
Ayes: Helsel, King, Mulvihill, Oravec, Polke,
Williams, Zahorchak. Nays: Aspey.
aa. July 25, 1988: Present - Aspey, Helsel, King,
Oravec, Polke, Porcher, Williams, Zahorchak.
(1) Permission for Nutrition Environmental Services to
survey the school district at no cost to the district.
(a) An executive session was requested as in the
previous motion (Item #6 -B) with the Pennsylvania
School Service Personnel Association members and
Nutrition, Incorporated representatives to be
included in this session.
call vote:
Porcher,
Mulvihill,
After an active discussion, there was general
agreement of the Board members that there would
not be an executive session at this time, but an
open forum with Mr. Helsel serving as Chair
person.
Mr. Theodore Helsel, Sr.
Page 28
cc. October 24, 1988:
Opening comments were offered by Mr. Helsel.
Active discussion occurred among Board members,
Nutrition, Incorporated representatives, and
Pennsylvania School Service Personnel Association
representatives. Closing comments were offered by
Mr. Helsel.
(b) Mr. Helsel made a motion for Nutrition
Environmental Services to be granted permission to
survey the school district at no cost to the
district. This motion died for a lack of a
second.
(c) A motion was made by Mrs. Aspey, seconded by Mr.
Porcher, that the Board not approve granting
permission for Nutrition Environmental Services to
survey the school district at no cost to the
district and go on record of dealing with the
association problems at the Board level.
During an active discussion, Mr. William F.
Thorne, Director of Facilities Management Services
of Nutrition, Incorporated, withdrew his offer for
a free survey. No roll call vote was taken.
bb. August 22, 1988: Committee Meeting Report. Present -
Aspey, Helsel, King, Mulvihill, Oravec, Polke, Porcher,
Williams, Zahorchak.
(1) Nutrition, Incorporated Contract. Mr. Helsel and Mr.
Zahorchak asked that the Nutrition, Incorporated
contract for food service be made part of the minutes.
(2) 1988 - 1989 Food Service Contract - the 1988 -89 food
service contract with Nutrition, Incorporated was made
part of the minutes as per Attachment #3.
The above motion was approved on the following roll
call vote: Ayes: Helsel, King, Mulvihill, Oravec,
Polke, Porcher, Williams, Zahorchak. Nays: Mrs.
Aspey.
On motion of Mr. Mulvehill, seconded by Mrs. Polke, the
Board approved the following items: (1) Approval of
agreement with the United Cerebral Palsy of Southern
Allegheny's Region, Incorporated - the business manager was
authorized to execute an agreement with the United Cerebral
Palsy of Southern Allegheny's Region, Incorporated to
Mr. Theodore Helsel, Sr.
Page 29
provide daily lunch to the children at the United Cerebral
Palsy at a cost of $1.01 per meal as per Attachment #2. (2)
Approval of contract with Easter Seal Society of Cambria
County - the Easter Seal Society of Cambria County was
granted permission to contract with the school district to
provide lunches for their day care program as per a letter
received from Mr. Charles Brooks, Food Service Director,
Nutrition, Incorporated as per Attachment #3. The cost per
meal remains the same with the exception of labor because of
the extra work involved; the total cost per meal is $1.06.
The above motion was approved on the following roll call
vote: Ayes: Aspey, Helsel, King, Mulvehill, Oravec, Polke,
Porcher, Zahorchak. Nays: None.
Approval of final report for the 1988 summer feeding program
- on motion of Mr. Helsel, seconded by Mr. Mulvehill, the
Board approved the final operating report of the 1988
summer feeding program and payment of the expenses and fees
itemized therein as per Attachment #4 as per the
Administration's request.
This motion was approved on the following roll call vote:
Ayes: Helsel, King, Mulvehill, Oravec, Polke, Porcher,
Zahorchak. Nays: Aspey.
dd. January 19, 1989:
Present: Aspey, Helsel, Mulvihill, Oravec, Polke, Porcher,
Taylor, Zahorchak.
Absent: King.
Mr. Helsel asked that Item #4, for information, be added as
follows:
Representatives from Nutrition, Incorporated and the
Greater Johnstown School District would check the status of
the current cafeteria equipment with recommendations of
possible upgrading being brought back to the Board if
necessary. Mr. Helsel led this discussion. Mr. Bichko
offered comments concerning the policies of the business
office honoring all appropriate requests when filed in the
business office regarding upgrading equipment and /or
purchase of supplies.
ee. January 19, 1989:
Mr. Theodore Helsel, Sr.
Page 30
Representatives from Nutrition, Incorporated and the
Greater Johnstown School District would check the status of
the current cafeteria equipment with recommendations of
possible upgrading being brought back to the Board if
necessary. Mr. Helsel led this discussion. Mr. Bichko
offered comments concerning the policies of the business
office honoring all appropriate request when filed in the
business office regarding upgrading equipment and /or
purchase of supplies.
ff. January 23, 1989:
For information - a copy of the specifications for cafeteria
management services for which the Greater Johnstown School
District is required to seek competitive bids for the
1989/1990 school year as per Attachment #2 was accepted as
information. The detailed backup information will be
attached as various appendices are currently being
compiled. It is anticipated that permission to advertise
will be sought at the February, 1989 Board meeting. If you
have any questions or concerns regarding these
specifications, please submit them to Mr. Helsel, Chairman
of the Cafeteria Committee and /or to the business office.
Approval of Cafeteria Committee agenda addendum -A. Approval
for replacement of cafeteria machinery and equipment - on
motion of Mr. Zahorchak, seconded by Mr. Mulvehill, the
board granted the administration authorization to replace
and /or repair those items of machinery and equipment deemed
to be obsolete or in need of repair following the survey to
be conducted by the representatives of Nutrition,
Incorporated, the school board contracted a vendor for the
management of the cafeteria department. Any machinery or
equipment deemed in need of repair or replacement will be
done in accordance with the school laws of Pennsylvania and
school board policy.
This motion was approved on the following roll call vote:
Ayes: Aspey, Helsel, King, Mulvehill, Oravec, Polke,
Porcher, Taylor, Zahorchak. Nays: None.
February 27, 1989:
gg.
Present - Aspey, Helsel, Mulvihill, Oravec, Polke, Porcher,
Taylor, Zahorchak. Absent: King.
(1) Mr. Helsel asked that Item #4, for information, be
added as follows:
Mr. Theodore Helsel, Sr.
Page 31
Permission to advertise for proposals for food service
management services - the board held this item until the
March, 1989 board meeting for additional information.
Approval of Cafeteria Committee agenda addendums - A.
Approval to increase the price of milk - on motion of Mr.
Mulvehill, seconded by Mrs. Polke, the Board approved the
request from Nutrition, Incorporated the school district's
food service management company to increase the price of a
carton of milk by .05 as follows due to the continuance of
increased milk prices by the Pennsylvania Milk Marketing
Board: (1) the adult price would increase from .25 per
carton to .30 per carton. (2) the student price would
increase from .20 per carton to .25 per carton.
The above motion was approved on the following roll call
vote: Ayes: Aspey, Helsel, King, Mulvehill, Mihalic,
Oravec, Polke, Porcher, Taylor. Nays: None.
hh. April 11, 1989:
ii. May 18, 1989:
Cafeteria Committee agenda - the Cafeteria Committee agenda
was reviewed by Mr. Helsel, Chairman. All items were found
to be in order. A. Item 2, award of contract with
cafeteria management services - Mr. Bichko explained that he
and Attorney Kuzmiak would review the bids and bring
recommendations back to the Board.
ii•
Approval for permission to advertise for proposals for food
service management services - on motion of Mr. Mulvehill,
seconded by Ms. King, the Board granted permission to
advertise for proposals for food service management services
with corrections to the specifications pending the review by
the Business Manager, Mr. Bichko.
The motion was approved on the following roll call vote:
Ayes: Aspey, Helsel, King, Mihalic, Mulvehill, Oravec,
Polke, Porcher, Taylor. Nays: None.
May 22, 1989:
Award of contract for cafeteria management services - the
business manager and the solicitor were directed to review
the bids and bring back the recommendation to the committee
for the June meeting.
kk. June 26, 1989:
Mr. Theodore Helsel, Sr.
Page 32
Approval for award of contract for cafeteria management
services - after comments made by Attorney Kuzmiak, Mr.
Mulvihill made a motion, seconded by Ms. King, to approve
awarding the cafeteria management services contract to
Nutrition, Incorporated. (Bid A of Bid III) at their bid
of $39,382 returned to the district as per Attachment II.
This bid was the lowest - best bid received in accordance
with the specifications.
This motion was approved on the following roll call vote:
Ayes: Helsel, King, Mulvihill, Oravec, Polke and Porcher.
Nays: Aspey, Mihalic.
2. Approval of Cafeteria Committee Addendum.
a. Approval for permission to advertise for bids for
replacement equipment - on motion of Mr.
Mulvihill, seconded by Ms. King, the Board granted
the administration permission to advertise for
bids for replacement equipment (mixer and steam
table at Johnstown High School) for the 1989 -
1990 school year.
This motion was approved on the following roll
call vote: Ayes: Aspey, Helsel, King, Mihalic,
Mulvihill, Oravec, Polke, and Porcher.
11. August 24, 1989:
Helsel, Chairman. Mr. Helsel reported on deliberations of
the Cafeteria Committee meeting which was held at 7:00 PM
prior to the board's regular committee meeting. Mr. Helsel
explained a letter that had been received from Nutrition,
Incorporated, the district's food service management
company, which contained a request to add an assistant food
service director and to add thirty additional hours for the
hourly workers. Solicitor Kuzmiak explained that the bid
which the board had accepted, which had been prepared by
Nutrition, Incorporated had deleted both of these items;
and, since the school district was not the employer of the
food service workers, this is not an area in which the
school board should interfere. Solicitor Kuzmiak also noted
that the school district had recently completed its
appearance before the National Labor Relations Board
wherein it was stipulated by the school district, Nutrition,
Incorporated, and a labor union that the school district was
not the employer of the food service workers.
Mr. Helsel introduced Carl Broniman and Bob Brooks,
representatives of Nutrition, Incorporated. Mr. Broniman
Mr. Theodore Helsel, Sr.
Page 33
gave a brief report on results of the summer feeding program
and the start up of the new school year. Mr. Brooks
commented on the equipment replacement.
mm. August 28, 1989:
For information - the board accepted the following item as
information: Attorney Kuzmiak advised the Board that the
food service management contract for the 1989 -1990 school
year had been received from Nutrition, Incorporated and is
currently under review. A meeting has been scheduled for
Friday, September 1, 1989 to discuss these articles which
are under review.
nn. October 23, 1989:
Cafeteria Committee agenda - the Cafeteria Committee agenda
was reviewed by Mr. Helsel, Chairman. A. 2, Approval of the
food service management contract for the 1989 -1990 school
year - Mr. Bichko advised that the language regarding the
guarantee provided to the school district by Nutrition,
Incorporated should be changed to reflect the minimum
guarantee as $39,382.00.
Approval of the food service management contract for the
1989 -1990 school year - on motion of Mr. Mulvehill, seconded
by Mrs. Polke, the Board approved the food service
management contract between the Greater Johnstown School
District and Nutrition, Incorporated for the 1989 -1990
school year with the change noted regarding the identified
minimum guarantee of $39,382.00 based on the
administration's recommendation.
This motion was approved on the following roll call vote:
Ayes: Helsel, Mulvehill, Oravec, Porcher, Polke
Nays: Aspey, Mihalic. Absent: King, Taylor.
Approval for the restoration of the assistant food service
director position - on the motion of Mr. Mulvehill, seconded
by Mr. Porcher, the Board approved the restoration of and
funding for the position of assistant food service director
at the estimated cost of $22,104.00.
This motion was approved on the following roll call vote:
Ayes: Helsel, Mulvehill, Oravec, Polke, Porcher
Nays: Aspey, Mihalic. Absent: King, Taylor.
46. Minutes of the Greater Johnstown School District indicate that
the Board of Directors routinely approved the payment of invoices
submitted by Nutrition Incorporated for both the regular and summer
Mr. Theodore Helsel, Sr.
Page 34
food programs with Theodore
dates:
September 29,1986
October 27, 1986
November 10, 1986
November 24, 1986
December 9, 1986
December 23, 1986
January 28, 1987
February 16, 1987
March 2, 1987
March 16, 1987
April 6, 1987
April 22, 1987
May 18, 1987
June 15, 1987
July 6, 1987
July 21, 1987
August 17, 1987
September 21, 1987
October 5, 1987
October 19, 1987
November 2, 1987
November 23, 1987
December 8, 1987
January 25, 1988
January 11, 1988
March 21, 1988
April 25, 1988
May 23, 1988
June 27, 1988
August 22, 1988
September 26, 1988
October 24, 1988
November 21, 1988
December 21, 1988
January 23, 1989
February 27, 1989
April 11, 1989
April 24, 1989
Helsel's participation on the following
June 26, 1989
July 24, 1989
October 23, 1989
November 13, 1989
Mr. Theodore Helsel, Sr.
Page 35
47. By way of letter dated January 23, 1987, to the superintendent
of the Greater Johnstown School District from William F. Thorne,
Director of Custodial Maintenance Services for Nutrition,
Incorporated, it is requested that the district allow Nutrition to
conduct a cost free survey of the school district's physical
facilities.
a. The purpose of this request was to obtain a contact with the
district to take over the custodial maintenance operations.
48. By way of letter of March 3, 1987 to Mr. Thorne from Gene
Artman, Acting Board Secretary for the Greater Johnstown School
District, Mr. Thorne is advised that a meeting will be conducted on
March 12, 1987 to discuss the custodial maintenance services.
49. By way of letter dated May 1, 1987 to Mr. Thorne from the
Superintendent of the Greater Johnstown School District, Mr. Thorne
is advised that on April 22, 1987, the School Board approved the
conduct of a survey of the custodial maintenance functions of the
district on May 4, 1987. The board revoked the approval to conduct
the above referenced survey.
50. By way of letter dated March 30, 1987, to the superintendent of
the Greater Johnstown Area School District from Ross and McClintock
District Manager, Nutrition, Incorporated, it is recommended that the
school district sponsor a summer food service program for which
Nutrition would provide management services.
51. By way of letter dated April 9, 1987, to Mr. McClintock from
Gene Artman, Acting School Board Secretary, it is advised that the
school board approved the sponsoring of a summer food program.
52. During the period when Nutrition Incorporated, was the food
service management contractor for the Johnstown School District,
various items of value were provided to Theodore Helsel, Sr., a
member of the School District Board of Directors.
53; An examination of the records of Nutrition, Incorporated,
indicate that various gratuities were provided by Nutrition
representatives to Theodore Helsel, Sr., either individually or in
conjunction with others as follows:
a. On September 14, 1986, Nutrition Incorporated entertained
the Johnstown School Board on the Gateway Clipper at
Pittsburgh, Pennsylvania with dinner and refreshments at a
cost of $2,950. This bill was signed by Edward Caswell,
President.
Mr. Theodore Helsel, Sr.
Page 36
b. On September 15, 1986, Mr. Helsel was supplied with four
tickets to a Pittsburgh Steelers football game.
c. On December 5, 1986, dinner with Ted Helsel, purchased by
Thomas Walczak, $55,
d. On January 20, 1987, Ted Helsel and Bill Joseph, lunch or
dinner at Johnstown, by Gerald Moore, in the amount of
$53.10.
e. On February 11, 1987, Surf n' Turf Inn, Jerry Zahorchak and
Dorothy Miller, Ted Helsel and Bob Brooks, paid for by Ed
Caswell, $192.80.
f. On February 12, 1987, Holiday Inn, breakfast meeting sales,
Ted Helsel, paid for by Ed Caswell, $42.58.
g. On February 27, 1987, dinner for 27 persons from the
Johnstown School District including Mr. and Mrs. T. Helsel,
at Surf n' Turf Inn through Ross McClintock, Nutrition,
Inc., $1,851.16.
h. On March 4, 1987, Cambria County Democratic Committee
donation made by Nutrition Incorporated, $100.
i. On April 4, 1987, at the Holiday Inn, Somerset,
Pennsylvania, for Ted Helsel, paid for by Nutrition
Incorporated, room and tax, $46.64, bar charges, $17.50, a
total of $64.14.
On April 29, 1987, for Ted Helsel, two tickets to the
Pittsburgh Pirates Baseball game, purchased by Nutrition
Incorporated.
k. On May 5, 1987, lunch with Ted and Dorothy Helsel, paid for
by Thomas Walczak, $38.15.
1. May 7, 1987, lunch with Ted and Bill Gniser,, paid for by
Thomas Walczak, $30.48.
m.
May 11, 1987, Chestnut Ridge
Pennsylvania, dinner for Ted
paid for by Ed Caswell, $162
n. July 16, 1987, lunch for Ted
Walczak, $20.50.
Inn, Blairsville,
Helsel and Dorothy Miller,
Helsel, paid for by Thomas
o. October 13, 1987, contribution to the Cambria County
Democratic Committee by Nutrition Incorporated, $200.
Mr. Theodore Helsel, Sr.
Page 37
p•
October 20, 1987, dinner for the school board, paid for by
Thomas Walnczak, $220.
November 19, 1987, dinner for Ted Helsel and Gerry
Zahorchak, paid for by Ross E. McClintock, $71.85.
r. November 12, 1987, dinner with Ted Helsel, paid for by
Thomas Walczak, $61.40.
s. November 29, 1987, Ted Helsel, four guests, at Reflections
Dinning Room, Sheraton Hotel, Station Square in Pittsburgh,
drinks, dinner and tip, $152.63.
t. November 29, 1987, for Ted Helsel and four guests, at
Reflections Dinning Room, Sheraton. Hotel, Station Square,
paid for by Nutrition Incorporated, drinks and tip, $67.43.
u. December 7, 1987, at the Chestnut Ridge Inn, for Thomas
Walczak, Ted Helsel, Gerry Zahorchak and Bill Thorne,
cocktails, paid for by Edward Caswell, $50.
v. On January 14, 1988, dinner for 30 persons from the
Johnstown School District, including Mr. and Mrs. T. Helsel,
at Surf n' Turf Inn, through Tom Walczak, Nutrition, Inc.,
$1,997.
q.
w.
January 19, 1988, at the Chestnut Ridge Inn, dinner for Ted
Helsel and Gerry Zahorchak, paid for by Edward Caswell,
$107.
x. March 9, 1988, dinner with Ted and Bill Joseph. Paid for by
Thomas Walczak, $38.
y. March 29, 1988, at the Chestnut Ridge Inn, Blairsville,
Pennsylvania, dinner and drinks, paid for by Edward Caswell
for Helsel, Zahorchak, Walczak and Caswell, $263.07.
z. April 1, 1988, expense account, for Ted Helsel, Gerry
Zahorchak, Bruce Williams, paid for by Gerald Moore, $50.
aa. May 11, 1988, breakfast with Ted, date, Mrs. Zahorchak, paid
for by Thomas Walczak, $44.17.
bb. July 25, 1988, lunch for Vicki King, Ted Helsel, Johnstown
School members, Bill Thorne, Tic Toc Restaurant, paid for by
Donald A. Kalosky, $6.
cc. August 5 -6, 1988, at the Knights Inn, lodging for Ted
Helsel, paid for by Nutrition Incorporated, $75.08.
Mr. Theodore Helsel, Sr.
Page 38
ee. August 9, 1988, dinner with Ted and John, paid for by Thomas
Walczak, $23.
ff. August 19, 1988, for Ted Helsel, four tickets to the
Pittsburgh Pirates baseball game, paid for by Nutrition
Incorporated. Dinner and drinks at the Allegheny Club
(Account of Edward Caswell) for 4 individuals total
$202.45.
gg.
hh. September 8, 1988,
Walczak, $53.69.
ii. September 8,
Walczak, $9.
jj•
kk. October 30, 1988, lunch with Ted Helsel, paid for by Tom
Walczak, $7.72.
11. December, 1988, for Ted Helsel, paid for by Gerald Moore,
$38.44.
mm. December 20, 1988, dinner with Ted Helsel, paid for by
Thomas Walczak, $26.86.
nn. January 12, 1989, for the Johnstown Housing Authority (Ted
Helsel), paid for by William F. Thorne, $58.53.
oo. On January 20, 1989, dinner for 29 persons from the
Johnstown School District, including Mr. and Mrs. T. Helsel,
at Surf N' Turf Inn, through Tom Walczak, Nutrition, Inc.,
$2,168.33.
pp. February
Walczak,
qq•
dd. August 5 -6, 1988, advance for the Nutrition Incorporated
fishing excursion made to Nutrition employees Bazylak,
Palmquist, Walczak, Kalosky, $1,500. (Kalosky returned
$456.64).
September 3, 1988, Johnstown with Ted and Gerry, paid for by
Thomas Walczak, $23.
September 20, 1987, dinner with Ted Helsel, paid for by
Thomas Walczak, $19.19.
March 3,
dinner with
1988, meeting with
24, 1989, dinner with Ted,
$33.
1989, eight tickets at $30
Ted, paid for by Thomas
Ted, paid for by Thomas
paid for by Thomas
each for American
Mr. Theodore Helsel, Sr.
Page 39
Cancer Society Daffodil Ball, March 31, 1989 at Sunnyanna
Country Club, paid for by Carl Broniman, $240
rr. March 6, 1989, for Ted Helsel at the Johnstown School
District, Orlando, Florida convention, paid for by William
F. Thorne, $347.40.
ss. March 31, 1989, expense account of Edward Caswell, Holiday
Inn dinner for Ted Helsel and wife and Vicki King and
friend, $205.
tt. April 28, 1989, Mom's House tickets, ten at $6 each, $60,
(subsequently refunded), paid for by Carl R. Broniman.
These tickets were purchased from Ted Helsel.
uu. May 18, 1989, breakfast Ted - board meeting - supper, Bob
and Barb, $47.53, by Carl Broniman.
vv. June 30, 1989, 8.4 lbs. of shrimp for Ted Helsel through
Carl Broniman, $83.42.
ww. November 19, 1989, Invoice from the Sheraton Hotel at
Station Square, Pittsburgh, Pennsylvania, in the amount of
$134.17. A notation on the invoice indicates "Guest: Ted
Helsel and Friends Johnstown!"
xx. November 29, 1989, four tickets to the Pittsburgh Steelers
for Ted Helsel, purchased by Nutrition, Incorporated.
54. Records of Nutrition Incorporated, indicate that various
gratuities were provided by Nutrition representatives to individuals
from the Greater Johnstown School District without specific
identification as to the recipient as follows:
a. On December 7, 1986, Johnstown Christmas party, paid for by
Thomas Walczak, $55 plus $30, total $85.
b. On February 11, 1987, Holiday Inn with Johnstown School
Board, paid for by Thomas Walczak, $27.03.
c. On February 16, 1987, dinner to plan Johnstown Client
Dinner, paid for by Ross E. McClintock, $75.74.
d. On February 27, 1987, Johnstown School District Client
Party, paid for by Ross E. McClintock, $30.
e. On May 1, 1987, dinner with Johnstown, paid for by Thomas
Walczak, $80.06.
Mr. Theodore Helsel, Sr.
Page 40
i. December 7, 1987, for Johnstown, paid for by Edward Caswell,
dinner and drinks, $442.89, plus a 25% gratuity.
January 13, 1988, at Johnstown, Heartbeat Ball tickets.
Paid for by Thomas Walczak, $200.
k. February 3, 1988, for Johnstown School District, paid for by
William Thorne, $192.
1. February 8, 1988, Chestnut Ridge Inn, a bill for the
Johnstown School District, okayed by Bill Thorne, for four
persons, in the amount of $279.90.
m. February 19, 1988, no date, Johnstown, lunch with Board
member, paid for by Thomas Walczak, $22.53.
n .
o. March 17, 1988,
William Thorne,
March 10, 1988,
Walczak, $20.30.
P-
March 21, 1988, cocktails with the board, paid for by Thomas
Walczak, $55.25.
r. May 19, 1988, dinner with board, paid for by Thomas Walczak,
$38.21.
s. May 19, 1988, bar tab for board, paid for by Thomas Walczak,
$18.21.
q.
t. June 27, 1988, meeting with the Board, paid for by Thomas
Walczak, $70.
u.
f. July 20, 1987, Pittsburgh Baseball Club tickets ordered for
Johnstown by Nutrition Incorporated, $146.
July 20, 1987, entertainment at Johnstown, paid for by Ross
E. McClintock, $12.
g.
h. December 6, 1987, Johnstown Christmas party, paid for by
Thomas Walczak, $43.
7.
March 11, 1988,
William Thorne,
Johnstown
$52.50.
Johnstown
$74.
School District,
School District,
paid for by
paid for by
lunch with board, paid for by Thomas
July 5, 1988, at the Chestnut Ridge Inn, Blairsville,
Pennsylvania for eight persons, Johnstown School District
paid for by Bill Thorne and Ed Caswell, Nutrition
Incorporated, $949.78.
Kr. Theodore Helsel, Sr.
Page 41
aa.
bb.
July 12,
Walczak,
July 13,
Walczak,
1988, lunch with Johnstown, paid for by Thomas
$8.40.
1988, lunch with Johnstown, paid for by Thomas
$6.87.
July 25, 1988, Johnstown School District, paid for by
William F. Thorne, $118.
September 3, 1988, Johnstown Board Dinner, paid for by
Thomas Walczak, $250.
October 24, 1988, dinner with Johnstown Board, paid for by
Thomas Walczak, $250.
January 20, 1989, Johnstown School District, paid for by
William F. Thorne, $32.95.
March 17, 1989, Johnstown School District, paid for by
William F. Thorne, $12.
55. In relation to Item 53(U) (dinner at the Chestnut Ridge Inn on
July 5, 1988) for which Nutrition Incorporated paid $949.78.
a. This dinner was held in order to discuss a proposal that
Nutrition be permitted to do a free survey of the school
district's in house custodial maintenance services.
b. Nutrition performed custodial maintenance services.
c. The Johnstown School Directors were required to vote on the
conduct of such a survey.
d. Mr. Helsel was present at this function.
e. A total of eight individuals were present.
f. Mr. Helsel, subsequently, put this matter before the Board
of Directors for approval, but such was denied. (See
Finding 45(aa)).
56. In relation to Item 53 tt. (tickets for Moms House), Mr. Helsel
was affiliated with that organization and contacted Nutrition's
Assistant District Manager, Carl Broniman, requesting that Nutrition
purchase these tickets.
57. In relation to Item 53 vv. (8.4 pounds of Shrimp), Mr. Helsel
contacted Carl Broniman and advised that he was having a family
reunion and requested that Nutrition supply shrimp for this function.
Mr. Theodore Helsel, Sr.
Page 42
58. In relation to Item 53 qq. (American Cancer Society Ball) Mr.
Helsel contacted Mr. Broniman and requested that Nutrition purchase
these tickets.
59. Nutrition provided a Christmas gift to the members of the
Greater Johnstown School District Board of Directors including
Theodore H. Helsel, Sr.
a. This gift was a dinner for two consisting of packaged
steaks, lobster tails, vegetables and wine.
b. Not all board members accepted this gift.
c. The gifts were delivered to the board members by Thomas
Walczak, a Nutrition Incorporated employee.
60. Mr. Helsel routinely contacted representatives of Nutrition
Incorporated, requesting various gratuities including tickets to
sporting events and donations to charity functions. (See Findings 53
b., j., o., ff., xx., qq., tt.).
61. In relation to the acquisition of tickets to sporting events,
records of Nutrition, Incorporated, contained a note from Theodore H.
Helsel, Sr. dated May 19, 1988 as follows:
a. "Tom, Dorothy Miller requesting attached. She is still good
to have in our corner, Ted."
b. Attached to the note was a list of dates with the title
"Pitts Pirates tickets." The list also contained the
following comment: "Dear Ted could you ask Ed Caswell if
Mickey and Jim Hollis could have a few tickets if possible
Love, Dot and Dave."
c. Edward Caswell is the President and primary owner of
Nutrition, Incorporated.
d. Dorothy Miller is a member of the Greater Johnstown School
District.
e. Jim Hollis was the superintendent of Johnstown Schools.
62. Edward Caswell, President of Nutrition, Incorporated, maintained
an account at the Allegheny Club at Three Rivers Stadium.
a.
Records of Nutrition, Incorporated indicate that Mr.
Theodore H. Helsel, Sr. utilized this account while
attending sporting events using Nutrition Incorporated,
tickets.
Mr. Theodore Helsel, Sr.
Page 43
b. Items acquired included food and drinks. (See Finding 53
ff.).
c. Mr. Helsel contacted Nutrition and requested access to this
account on several occasions.
63. Nutrition Incorporated maintained an account at the Sheraton
Hotel at Station Square, Pittsburgh, Pennsylvania.
a. This account entitled Nutrition or guests to all hotel
facilities.
b. Nutrition, Incorporated would subsequently be billed for
such utilization.
c. Records of Nutrition, Incorporated indicate that Theodore
Helsel, Jr., utilized this account on several occasions for
food and beverages. (See Findings 53, s., t., ww.).
d. Mr. Helsel contacted Nutrition in order to use this account.
64. Nutrition, Incorporated, sponsored an outing for the members of
the Greater Johnstown School District Board of Directors,
administrators, employees and Nutrition cafeteria workers on
September 14, 1986: (See Finding 53 a.).
a. The outing was held on the Gateway Clipper, a charter river
boat.
b. The outing was for 250 individuals and included dinner,
drinks and music.
c. The cost of the event was $2,950 and was paid for by
Nutrition Incorporated.
65. Nutrition Incorporated was requested to sponsor the outing
because the prior food service contractor had held a similar event.
a. Mr. Helsel advised representatives of Nutrition that the
outing was a good idea.
b. Nutrition Incorporated held that outing to establish a
rapport with the school district.
66. Nutrition Incorporated has never sponsored a similar type of
event for other clients.
67. Nutrition, Incorporated sponsored annual "Board Appreciation
Mr. Theodore Helsel, Sr.
Page 44
Dinners" for the members of the Greater Johnstown School District
Board of Directors (See Findings 53, g., v., oo.).
68. The minutes of the Greater Johnstown School District Board of
Directors indicates the following in relation to the "Board
Appreciation Dinners."
a. January 28, 1987:
Present - Arcurio, Aspey, Gjurich, Helsel, Miller, Salem,
Soulchek, Stefanik and Zahorchak.
Board Appreciation Dinner on Friday, January 9, 1987.
(1) Mrs. Stefanik thanked Mr. Salem, Dr. Hollis and Mr. Bob
Brooks from Nutrition Incorporated for the Board
Appreciation Dinner on Friday, January 9, 1987 at 6:30
PM. Mr. Zahorchak also expressed his thanks.
b. January 11, 1988:
Present: Aspey, Gjurich, Helsel, King, Mulvihill, Oravec,
Porcher, Williams and Zahorchak.
Superintendent's Agenda. Item C. Board Appreciation Dinner
reminder - the superintendent reminded the board of the
Board Appreciation Dinner set on Friday, January 15, 1988,
at 6:30 PM at the Surf n' Turf Restaurant.
c. December 21, 1988:
Present: Helsel, King, Mulvihill, Oravec, Polke, Porcher,
Taylor, Zahorchak.
Approval of President's Agenda.
Approval of School Board Recognition Dinner date - January
is School Director Recognition Month.
On motion of Mr. Zahorchak, seconded by Ms. King, the Board
approved the date of Friday, January 20, 1989, for the
School Board Recognition Dinner which is to be provided by
Nutrition, Incorporated, the district's food service
management company.
This motion was approved by a voice vote being taken with
all members voting aye.
69. The board appreciation dinners were generally attended by all
board members and included a guest for each member.
Mr. Theodore Helsel, Sr.
Page 45
a. Mr. Helsel attended all such dinners.
70. The board appreciation dinners were held at the Surf -N -Turf Inn,
Johnstown, Pennsylvania.
a. The dinner in 1987 was for 27 individuals and included:
Food $822.40.
Liquor $667.65
Flowers $92.50
Piano $50
Tax $49.35
Gratuity $169.26
b. The dinner in 1988 was for 30
breakdown of the expenses was
c. The dinner in 1989 was for 29
breakdown of the expenses was
individuals
available).
individuals
available).
(no further
(no further
71. Carl Broniman serves as the Assistant District Manager for
Nutrition, Incorporated, and in such capacity, is responsible for
overseeing the food service programs for six school districts
including that of the Greater Johnstown Area School District.
a. None of the other school districts for which Mr. Broniman
has such responsibility were provided with a board
appreciation dinner.
72. Thomas Walczak served as a District Manager for Nutrition,
Incorporated, and in such capacity, was responsible for overseeing
the food service programs for eight school districts.
a. None of the other school districts for which Mr. Walczak
was responsible were provided with a board appreciation
dinner.
73. Nutrition Incorporated did not sponsor a board appreciation
similar to the event sponsored in Johnstown for any other school
district with which Nutrition contracted.
74. In August of 1988, Nutrition Incorporated sponsored a fishing
outing to Lake Erie, Pennsylvania for the members of the Johnstown
School District Board of Directors.
a. The trip was an overnight outing with lodging provided by
Nutrition.
Mr. Theodore Helsel, Sr.
Page 46
b. Theodore H. Helsel, Sr. was on this trip and lodged at the
Knights Inn on the night of August 5 and 6, 1988. (See
Findings cc., dd.).
c. Mr. Helsel had arranged transportation for this trip by
requesting a van from McIlwain School Bus Lines, the
district's transportation carrier. (See Findings 24(c) and
25).
d. Nutrition paid for all other expenses of this trip including
meals, rooms and telephone calls.
e. Only one other representative or employe of the Greater
Johnstown School District attended this outing.
75. On September 28, 1987, Nutrition, Incorporated, sponsored a
"Fall Golf Outing" for members of the Greater Johnstown School
District.
a. The outing was held at the Youghiogheny County Club near
McKeesport, Pennsylvania.
b. A brunch was provided.
76. Theodore H. Helsel, Sr. was Chairman of the School Board's
Cafeteria Committee and, as such, was the board's primary liaison
with Nutrition, Incorporated.
a. The Cafeteria Committee held monthly meetings to review the
food service program and the contractor's performance.
77. Theodore H. Helsel approached Damian Holtz, Business Manager for
the Greater Johnstown Vocational Technical School, and suggested
Nutrition, Incorporated as a possible supplier of food services for
the school.
a. Mr. Helsel was a member of the Vo -tech Joint Operating
Committee.
b. John P. McCormick, Executive Vice President for Nutrition
Incorporated, by way of letter dated December 10, 1987,
expresses interest in managing the Vo -tech Food Service
program.
c. Nutrition conducted an analysis of the Vo -tech Food Service
Program and by letter of December 16, 1987, opined that
Nutrition could be of substantial service to the school.
d. The School never proceeded any further in relation to the
food service program.
Mr. Theodore Helsel, Sr.
Page 47
78. Theodore H. Helsel, Sr. approached Lawrence Malizi, Business
Manager of the Appalachia Intermediate Unit 8 and suggested Nutrition
Incorporated as a possible supplier of food service for the
Intermediate Unit.
a. Malizi was not interested because of the limited size of the
Intermediate Unit.
b. Mr. Helsel was a member of the Intermediate Unit Board.
79. Theodore H. Helsel, Sr. was employed by the Johnstown Housing
Authority.
a. Representatives of Nutrition Incorporated
Mr. Helsel the possibility of obtaining a
custodian maintenance with that entity.
b. Helsel was not on the authority board and,
award a contract. However, Nutrition was
Helsel's interpretation of how the system
worked.
a.
did discuss with
contract for
thus, could not
interested in Mr.
at the authority
c. William Thorne, Nutrition's Director of Facilities
Management Division, met with Mr. Helsel over lunch to
discuss these issues. (See Finding 53 nn.).
80. In March, 1989, Theodore H. Helsel, Sr. attended a convention in
Orlando, Florida. (See Finding 33).
81. Representatives of Nutrition Incorporated also attended this
convention.
82. During this convention, Nutrition Incorporated sponsored a
dinner for clients that were present.
The dinner was held at the Norwegian Pavilion in Epcot
Center.
b. Mr. Helsel could not attend this dinner.
c. Arrangements were made to allow Mr. Helsel to have a dinner
with his guests at the Epcot Center on another day.
d. No representative of Nutrition was present at this dinner.
e. Nutrition was billed for this dinner through the accounts of
William Thorne, Nutrition's Director of Facilities
Management Division. (See Finding 53 rr).
Mr. Theodore Helsel, Sr.
Page 48
83. By way of letter of July 9, 1986, from Gerald P. Moore, Director
of Marketing for Nutrition Incorporated to the Board of Nutrition
Incorporated, to the Board of Directors of the Greater Johnstown
School District, the services to be provided by Nutrition are
outlined:
a. The letter further states, "As responsible elected
officials, we urge you not to let politics, timely
entertainment (July 18) by the incumbent and other
influences guide you to a decision that is not in the best
interest of the students and district."
84. By way of letter dated July 16, 1986 to school board member
Lewis Soulcheck from Gerald P. Moore, Nutrition's Director of
Marketing, Mr. Moore states:
"I am sorry you interpreted my letter dated July
9, 1986 as accusing you of favoring Custom. I say
go ahead and enjoy the entertainment your
contractors provide. Providing of such
entertainment is a contractor's way of saying
thanks for doing past business with us. What I am
saying is the timely entertainment by Custom six
(6) days before the voting on a new contract could
be influential. Custom is thanking you for past
business. Future business should not be
considered when enjoying the thanks for the past
business."
a. Mr. Helsel was forwarded a copy of this letter in his
capacity as School Board President.
The following Findings relate to the Greater Johnstown School
District's employment of Patrick Ditko as the District's Architect.
85. Patrick Ditko served as the appointed architect for the Greater
Johnstown School District for three years from December, 1985.
86. Minutes of the Greater Johnstown School District indicate the
following action regarding the District's architect:
a. December 2, 1985:
Hiring of Architect - on motion of Mr. Helsel, seconded by
Mrs. Miller, the Board hired the firm of Patrick S. Ditko,
Architect /Inspection Engineer, as the school district
architect, with L.R. Kimball and Associates to finish their
contractual agreement.
This motion was approved on the following roll call vote:
Mr. Theodore Helsel, Sr.
Page 49
Ayes: Arcurio, Gjurich, Helsel, Miller, Salem, Soulcheck,
Stefanik, Torok, Zahorchak - 9. Nays: None.
b. October 13, 1986:
Approval of finance and purchasing agenda -- A. Approval of
bills - on motion of Mrs. Miller, seconded by Mr. Zahorchak,
the Board approved the payment of the following bills
subject to the annual audit:
Mr. Patrick S. Ditko, Architect - $4,177.15 which represents
his professional services rendered for the preliminary
drawing and cost estimate on the proposed athletic addition
at Johnstown High School.
Mr. Patrick S. Ditko, Architect. $3,376.89 which represents
his professional services rendered regarding the gymnasium,
locker rooms and entry area re- roofing at the Johnstown High
School under Project #9.
The above motion was approved on the following roll call
vote: Ayes: Aspey, Gjurich, Helsel, Miller, Salem,
Soulcheck, Stefanik, Zahorchak. Absent: Arcurio.
c. May 18, 1987:
Approval to perform a feasibility study of the school
district buildings - on motion of Mr. Helsel, seconded by
Mr. Zahorchak, the Board approved a feasibility study of the
school district buildings being performed as outlined in the
proposal submitted by Mr. Patrick S. Ditko, School District
Architect, as per Attachment II and as required by law at a
cost not to exceed $2,500.00 per building.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Aspey, Gjurich, Helsel, Miller, Salem,
Soulcheck, Stefanik, Zahorchak. Nays: None.
d. June 27, 1988:
The School District Architect, Mr. Patrick Ditko, was
authorized to prepare bids specifications for the
renovations of the physical education facilities at both
Johnstown High School and the Johnstown Junior High School,
as directed, with the Johnstown Junior High School project
to begin by mid August, 1988.
The above motion was approved on the following roll call
vote: Ayes: Aspey, Helsel, King, Mulvehill, Oravec, Polke,
Porcher, Williams, Zahorchak. Nays: None.
Mr. Theodore Helsel, Sr.
Page 50
e. December 6, 1988:
Present - Aspey, Helsel, Cane, Mulvihill, Oravec, Polke,
Porcher, Taylor and Zahorchak.
Mr. Zahorchak made a motion, seconded by Mr. Taylor, to
approve L. Robert Kimball and Associates to serve as the
school district architect. A roll call vote was called to
be taken.
Mr. Porcher voted to abstain and asked the solicitor's
advice if he could abstain at this time, because he did not
understand the motion. The solicitor gave an opinion that
an abstention was not in order and told Mr. Porcher that he
should question the motion until he understands it.
After a lengthy discussion, Mr. Zahorchak withdrew his
motion and then Mr. Taylor withdrew his second.
Mr. Oravec made a motion, seconded by Mr. Mulvihill, to
retain Mr. Patrick S. Ditko as the school district
architect.
This motion was approved on the following roll call vote:
Ayes: Aspey, King, Mulvihill, Oravec, Polke and Porcher.
Nays: Helsel, Taylor, Zahorchak.
f. January 23, 1989:
Present - Aspey, Helsel, King, Mulvihill, Oravec, Polke,
Porcher, Taylor and Zahorchak.
Authorization for the School District's Architect:
(1)
(To prepare preliminary costs estimates for each of the
above identified projects).
(2) (To investigate the cost to renovate the Meadowvale
Elementary School to bring it into compliance).
Comments were made by Mr. Helsel concerning why more
information was not available at this particular time.
The above motion was approved on the following roll
call vote: Ayes: Aspey, King, Mulvihill, Oravec,
Polke, Porcher, Taylor and Zahorchak. Nays: None.
Abstained: Mr. Helsel.
87. In approximately August of 1988, Mr. Ditko made a presentation
to some school board members. After the presentation, Mr. Helsel
Mr. Theodore Helsel, Sr.
Page 51
came to him and said, that he (Ditko) should recognize the school
board by taking them on a trip to Atlantic City. He told Helsel to
• bring him a list of attendees.
88. A few days later, Mr. Helsel came to his office with a list of
people. Mr. Ditko placed a date at the top of the list (August 9,
1988).
89. Mr. Helsel gave him a list
that list included some members
Nutrition Incorporated, and Mr.
name there was a "g" for guest.
people on the list and that did
identified.
of people to go to Atlantic City and
of the school board, some from
Helsel's brother David. After each
There were approximately twenty
not include the guests who were not
90. Mr. Ditko was advised by a lawyer, not to comply with the
request. He subsequently advised Mr. Helsel that he couldn't take
the board members to Atlantic City.
91. It was after his refusal to sponsor the trip to Atlantic City
that Mr. Helsel voted against Mr. Ditko's retention as the district's
architect.
92. Mr. Ditko's partner, Peter W. Chiodo, sponsored a bus trip to
Atlantic City, New Jersey, for a number of years since 1983 for
family and friends.
a. Records of such trips indicate that in 1986, such an event
was planned. The trip was on January 11, 1986.
b. One of the guests listed as attending this trip was Theodore
Helsel.
c. No member of the school board had attended such trips in
the past.
d. This was Mr. Helsel's first year on the board.
e. Several other school board members were listed as attending
this trip.
93. Kimball and Associates, the former Architect for the Greater
Johnstown School District, never supplied or offered such a trip to
the school board members.
a. In 1986, Kimball and Associates was replaced as the school
board architects.
The following Findings relate to the Greater Johnstown School
District's contract with Scheetz, Smith and Company, Incorporated.
Mr. Theodore Helsel, Sr.
Page 52
94. Scheetz, Smith and Company, Incorporated, Pittsburgh,
Pennsylvania, is involved, in part, in the business of underwriting
municipal bonds.
a. Thomas B. Kinney is a Senior Vice President of this entity.
95. Scheetz, Smith and Company, Incorporated has been employed by
the Greater Johnstown School District to underwrite the issuance of
bonds for the District.
96. Minutes of the Greater Johnstown School District indicate the
following in relation to actions regarding Scheetz, Smith and
Company, Incorporated:
a. January 6, 1988:
Refinancing of the 1985 bond issue - discussion ensued
regarding the refinancing of the 1985 Bond Issue.
b. January 25, 1988:
Approval of finance and Purchasing Committee agenda
addendum. A. Approval of refunding of the 1985 general
obligation refunding bonds - on motion of Mrs. Aspey,
seconded by Mulvehill, the Board authorized the
administration to proceed with the proposed refunding of the
1985 general obligation refunding bonds and appointed the
following: (1) Investment Banker and Underwriter - Mr.
Thomas Kinney of Scheetz and Smith, Incorporated of
Pittsburgh, PA.
The above motion was approved on the following roll call
vote: Ayes: Aspey, Gjurich, Helsel, King, Mulvehill,
Oravec, Porcher, Williams. Nays: None. Absent:
Zahorchak.
c. February 18, 1987:
Report on Refunding the Bonds.
Mr. Thomas Kinney, Vice President of Scheetz, Smith and
Company, Incorporated, Investment Bankers, gave a report on
refunding the bonds. After Mr. Kinney's explanation,
questions ensued. Attorney Green, bond counsel, and Mr.
Bichko also offered explanations. Attorney Green set the
following schedule: February 25, 1988, at 6:00 PM -
discussion meeting. February 25, 1988, at 7:30 PM - special
Board meeting for the purpose of adopting the bond
resolution.
irir. Theodore Helsel, Sr.
Page 53
d. April 11, 1989:
Approval of Finance and Purchasing Committee agenda addendum
2 - A. Approval for appointment of investment banker and
bond counsel - on motion of Mr. Mulvehill, seconded by Ms.
King, the Board approved the appointment of Scheetz, Smith
and Company, Incorporated as the Investment Banker for the
Greater Johnstown School District and the appointment of
Attorney Richard J. Green, Jr., as the Bond Counsel for the
Greater Johnstown School District. The Board further
authorized Scheetz, Smith and Company, Incorporated and
Attorney Richard J. Green, Jr. to proceed with the
implementation of the financing plan and presentation to
this Board of School Directors of the appropriate bond
purchase proposals to provide for the school district's
building and renovation capital improvement projects
totalling approximately $20,000,000.00 during the period
1989 to 1992. Mr. Helsel offered comments for
clarifications. Mr. Oravec read the press release from Goff
and Irwin, Public Relations Firm, regarding the financing of
the building utilization plan. Comments were again offered
by Mr. Helsel and Mrs. Aspey.
This motion was approved on the following roll call vote:
Ayes: Helsel, King, Mihalic, Mulvehill, Oravec, Polke,
Porcher, Taylor. Nays: Aspey.
e. May 4, 1989:
Approval of resolution concerning the $5,000,000.00 bond
issue - A. Mr. Thomas Kinney of Scheetz, Smith and Company,
Incorporated, Investment Banker, made a presentation of a
proposal to purchase the bonds as per Attachment #1. B.
Attorney Richard J. Green, Jr., Bond Counsel made a
presentation of a resolution on the bond issue. Attorney
Green read the synopsis of the resolution and assured the
Board that he and Attorney Kuzmiak reviewed the document
carefully and it was in order. C. Chairman Oravec then
called for a motion on the resolution. Mr. Mulvehill made a
motion, seconded by Mrs. Polke to accept the resolution
concerning the $5,000,000.00 bond issue as per Attachment
#2.
This motion was approved on the following roll call vote:
Ayes: Aspey, Helsel, Mihalic, Mulvehill, Oravec, Polke,
Porcher, Taylor. Nays: None. Absent: King.
97. During the time frame that Scheetz, Smith and Company,
Incorporated was employed by the Greater Johnstown School District,
Mr. Theodore Helsel, Sr.
Page 54
Theodore Helsel received various gratuities or items of value from
that company.
98. Records of Scheetz, Smith and Company, Incorporated indicate the
following items provided by Thomas Kinney to Theodore Helsel:
a. February 8 and 9, 1988 dinner or lunch for Ted Helsel in the
amount of $10.
b. On January 11, 1988, dinner for four people including Ted
Helsel of the Johnstown School District, the total bill was
$52.
c. January 17, 1988, dinner with Ted Helsel and family, where
they discussed bond issues and the bill was $38.34.
d. On September 28, 1988, at the Johnstown PSBA dinner,
purchased dinner for Helsel, his wife and daughter and
estimated that their dinner would have been 20 to 30% of the
bill of $207.07.
e. On January 13, 1989, at Bucknell University, he purchased
dinner for Ted Helsel in the amount of $30.
f. On January 12 - 15, 1989, he had dinner with Helsel and his
brother at the Touchdown Club Conference in Washington,
D.C. The total bill was $664.61. He attributed $100 of
that amount to Helsel and his brother.
On March 16, 1989, Mr. Kinney purchased lunch for himself
and Mr. Helsel in the amount of $23.22.
h. On August 27, 1989, he met with the Johnstown School Board
and Administrators, a total of 15 people, at a dinner
meeting to discuss finances. The total of that bill was
$610, 1/15 of which would be $44 for Ted Helsel.
99. Records on file at the Cambria County Court House disclosed that
on July 24, 1989, Suzanne L. Kinney, contributed $300 to Ted Helsel
who was running for the Johnstown School Board at that time.
g.
a. Suzanne L. Kinney is the spouse of Thomas Kinney.
100. Mr. Kinney provided dinner for Mr. Helsel, his wife and
daughters while attending a conference in Orlando, Florida.
101. Mr. Kinney purchased tickets to political affairs at the
request of Mr. Helsel.
Mr. Theodore Helsel, Sr.
Page 55
102. Mr. Kinney sponsored a dinner at the Bookbinders Restaurant in
Philadelphia, Pennsylvania for members of the Greater Johnstown
• School District including Mr. Helsel.
103. Mr. Kinney provided Mr. Helsel with tickets to a Pittsburgh
Steelers football game in December, 1989 and also provided lunch
prior to the game at the Sheraton Station Square.
The following Findings relate to the Greater Johnstown School
District's contract with the firm of Goff and Irwin, Incorporated:
104. Records of the Greater Johnstown School District indicate that
in 1988, the School District solicited proposals for a marketing plan
regarding school building utilization.
a. All proposals were due in the Superintendent's Office by the,
close of business on July 18, 1988.
b. Goff and Irwin, a marketing /communications firm, offered a
proposal for $26,375.
c. Kane and Company, another firm, proposed a cost of $34,948.
d. A letter dated August 3, 1988, from the Greater Johnstown
School District to Gary B. Irwin of Goff and Irwin, invited
him to a meeting on August 9, 1988 to discuss his proposal.
Mr. Edward Kane was invited to the same meeting.
e. At the August 9 meeting, Mr. Edward Kane had submitted an
amended bid which eliminated $17,458 from his original
contract bid, now revising his contract bid proposal to
$18,290.
f. On August 16, 1988, based on information that he learned at
the August 9, 1988 meeting, Mr. Gary Irwin submitted a new
proposal revised downward to $19,750.
On August 24, 1988, the Greater Johnstown School District
wrote Mr. Gary Irwin advising him that the Board of
Directors, at its regular meeting on Monday, August 22,
1988, elected his firm to work with them in their Building
Utilization Plan Project.
105. The minutes for the Greater Johnstown School District's regular
Board meeting on August 22, 1988, indicate the following:
a. Approval of community communication efforts concerning the
building utilization plan - on motion of Mr. Helsel,
seconded by Ms. King, the Board approved Goff and Irwin,
Incorporated for the community communication efforts
g.
Mr. Theodore Helsel, Sr.
Page 56
concerning the building utilization plan as per Attachment
#2.
This motion was approved on the following roll call vote:
Ayes: Helsel, King, Mulvehill, Oravec, Porcher, Williams,
Zahorchak. Nays: Aspey, Polke.
Attached to the August 22, 1988 minutes, as Attachment #2
for the meeting, is a memorandum dated August 2, 1988, from
Dr. Levi B. Hollis, Superintendent of Schools to the Board
of School Directors, relative to the community communication
proposals. The memorandum transmitted an analysis of two
top proposals received for the community communication
contract. According to the memorandum, the firms have been
invited to make an oral presentation before the Board on
August 9, 1988. Kane and Company, Advertising Incorporated,
scheduled for 7:00 PM, Goff and Irwin, Incorporated are
scheduled for 7:30 PM.
Listed below on the memorandum were the proposals submitted
by the two firms. On the second page of the proposal, it is
noticed that the Kane and Company proposal had a total
anticipated cost of $35,740.00, which was reduced by
$17,458.00 to $18,290.00. The Goff and Irwin proposal,
total anticipated cost was $27,084.50.
106. After the award of the contract, Theodore Helsel contacted Gary
Irwin a principle in the firm of Goff and Irwin, Incorporated and
suggested that he should hold a dinner meeting for the school board.
a. Mr. Helsel also suggested that such should be held at the
Chestnut Ridge Restaurant in Blairsville.
b. Mr. Helsel reminded Mr. Irwin that he had voted for his
firm.
c. The original estimate of attendees was approximately 17
individuals.
d. Mr. Helsel subsequently recontacted Mr. Irwin and advised
him that the board members wanted to take guests and the
number of individuals to attend increased to approximately
40.
e. The event was to be held in October.
f. The dinner was never held.
107. In October, 1988, Theodore Helsel contacted Gary Irwin and
requested that he place an advertisement in a political booklet.
Mr. Theodore Helsel, Sr.
Page 57
a. Mr. Irwin complied and paid $100 for the ad.
108. Mr. Helsel also requested that Mr. Irwin purchased four tickets
to a political dinner.
a. Mr. Irwin complied.
The following Findings relate to the Greater Johnstown School
District's selection of a group insurance provider.
109. Financial Planners Limited, Johnstown, Pennsylvania, was the
group dental provider for the Greater Johnstown School District in
1986.
a. It had held such position since 1974.
b. Terry P. Gindelsperger was the President of this entity.
110. In September, 1986, representatives of the Bottonwood
Securities Corporation of Massachusetts, a division of C.J. Moran and
Company, solicited the group vision and dental insurance business of
the Greater Johnstown School District.
a. The representatives of this entity were Richard Mock and
Edward Stetz.
b. The original approach was made by way of a telephone call to
the School District Manager, Brian Petry.
c. They subsequently submitted projected costs in writing, for
the provision of such insurance through both the combined
Insurance Company of America and the Travelers.
111. The matter of the school district's group insurance was
subsequently placed on the agenda of the school board meeting for
October 27, 1986.
112. The day of the meeting on which the board was to vote on the
insurance plan, Mr. Theodore Helsel had breakfast at the Holiday Inn,
Johnstown with Richard Mock of Combined Insurance Company.
a. Mr. Mock paid for this breakfast.
113. Minutes of the Greater Johnstown School District indicate the
following in relation to the award of the group dental and vision
insurance contract:
a. March 24, 1986:
Mr. Theodore Helsel, Sr.
Page 58
Approval of double dental /vision coverage grievance - on a
motion of Mr. Helsel, seconded by Mr. Soulcheck, the Board
approved establishing a separate dental and vision policy
for each member as per the solicitor's recommendation.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Helsel, Soulcheck, Torok, Zahorchak.
Nays: Gjurich, Miller, Salem. Absent: Stefanik.
b. July 8, 1986:
Approval of Finance and Purchasing agenda addendum - A.
life, vision and dental policies. (1) a motion was made by
Mrs. Miller, seconded by Mr. Arcurio to approve Travelers
Insurance as the carrier for the life, vision and dental
policies pending the approval of the solicitor.
This motion was defeated on the following roll call vote:
Ayes: Helsel, Miller. Nays: Arcurio, Gjurich, Salem,
Soulcheck, Stefanik. Passed: Mr. Zahorchak.
A motion was made by Mrs. Miller, seconded by Mr. Arcurio to
advertise for bids on the life, vision and dental policies.
No roll call vote was taken.
On motion of Mr. Soulcheck, seconded by Mr. Salem, the
Board tabled the life, vision and dental policies and
referred them to committee.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Salem, Soulcheck,
Stefanik, Zahorchak. Nays: Miller.
c. July 28, 1986:
Approval to Accept life, dental and vision Insurance
Proposals - on motion of Mrs. Miller, seconded by Mr.
Zahorchak, the Board approved accepting insurance proposals
on Life, Dental and Vision policies.
This motion was granted on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Miller, Salem, Soulcheck,
Stefanik and Zahorchak.
d. August 25, 1986:
Group life, dental and vision care insurance bids - no bids
were received by Monday, August 18, 1986 at 3:00 PM on group
life, dental and vision care insurance.
Mr. Theodore Helsel, Sr.
Page 59
A motion was made by Mr. Helsel, seconded by Mr. Zahorchak
to approve Travelers Insurance proposal on group, life,
dental and vision care insurance.
This motion was defeated on the following roll call vote:
Ayes: Arcurio, Helsel, Miller, Zahorchak. Nays: Aspey,
Gjurich, Soulcheck. Absent: Salem, Stefanik.
On motion of Mr. Arcurio, seconded by Mr. Zahorchak, the
Board approved hiring Travelers Insurance for group, life,
dental and vision care insurance pending Mrs. Aspey to
review the material information and the approval of Mr.
Salem.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Aspey, Gjurich, Helsel, Miller, Zahorchak
Nays: Soulcheck. Absent: Stefanik, Salem.
e. September 29, 1986:
Point of clarification regarding the group life, dental and
vision care insurance proposals - Mrs. Miller questioned
what the Board was going to do regarding the insurance
proposal received from Travelers Insurance for group life,
dental and vision care insurance. Mr. Helsel commented that
it was Board action to approve hiring Travelers insurance
for group life, dental and vision care insurance pending
Mrs. Aspey to review the material information and the
approval of Mr. Salem. After a lengthy discussion, the
Board took no action on this matter at this time.
f. October 13, 1986:
Travelers Insurance Proposal for group life, dental and
vision care insurance - a motion was made by Mrs. Miller,
seconded by Mr. Zahorchak to approve the Travelers insurance
proposal in group life, dental and vision care insurance.
This motion was defeated on the following roll call vote:
Ayes: Helsel, Miller, Zahorchak. Nays: Aspey, Gjurich,
Salem, Soulcheck, Stefanik. Absent: Arcurio.
g. October 27, 1986:
Group dental and vision care insurance -(1) a motion was
made by Mr. Helsel, seconded by Mr. Soulcheck to approve
combined insurance company's best - lowest bid /proposal.
Mr. Theodore Helsel, Sr.
Page 60
This motion was defeated on the following roll call vote:
Ayes: Helsel, Miller. Nays: Aspey, Gjurich, Soulcheck,
Salem, Stefanik. Absent: Arcurio, Zahorchak.
On motion of Mrs. Aspey, seconded by Mr. Salem, the Board
approves staying with our present carriers on group life,
dental and vision care insurance.
This motion was approved on the following roll call vote:
Ayes: Aspey, Gjurich, Salem, Soulcheck, Stefanik. Nays:
Helsel, Miller. Absent: Arcurio, Zahorchak.
Comments by Mr. Terry Gindlesperger - Mr. Terry
Gindlesperger contrasted the contents of the current Bankers
Life of Nebraska insurance policy covering dental insurance
and (our present carrier) with the combined insurance
company's proposal on dental insurance. Mr. Gindlesperger
also discusses vision proposal and said he would be sending
the Board a letter making the same - said comparison. Mrs.
Stefanik requested that this letter be sent to the news
media.
h. November 10, 1986:
Approval of minutes - a motion was made by Mr. Zahorchak,
seconded by Mrs. Aspey to bring the approval of the Greater
Johnstown School District, regular Board meeting minutes of
October 27, 1986 to the floor. A discussion ensued
regarding Item 10.G -1, group life, dental and vision care
insurance, on page nine with the request to have life
removed from the title and to strike best - lowest bid. On
motion of Mr. Arcurio, seconded by Mr. Zahorchak, the Board
tabled the approval of minutes of the Greater Johnstown
District, regular Board meeting held October 27, 1986, for
approval at the next Board meeting.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem, Soulcheck,
Stefanik, Zahorchak. Nays: None. Absent: Miller.
i. January 6, 1988:
Renewal of insurance policy - Mr. Helsel requested that all
companies be given an opportunity to present their plans so
that the Board could make a wiser choice. Mr. Bichko
explained that is why we have a broker - of - record who
picks the best policy and coverage for the best price before
making recommendations to the Board. Mr. Helsel asked if
suggestions could be submitted to the broker of record. Mr.
Mr. Theodore Helsel, Sr.
Page 61
Helsel also requested the business office for a list of all
insurance and their dates of renewal.
114. Although combined insurance did not obtain the group vision and
dental insurance contract they were still interested in the school
district hospitalization plan.
115. In March, 1987, Mr. Stetz and Mr. Mock provided dinner for
Theodore Helsel and Board member Zahorchak at the Surf and Turf
Restaurant in Johnstown, Pennsylvania.
a. The cost of this dinner was $112.43.
116. During this dinner, Mr. Helsel mentioned to Mr. Mock that Board
member Miller was going on a weekend trip and needed money.
a. Mr. Helsel asked Mr. Mock to provide in excess of two
thousand dollars to Mrs. Miller.
b. Mr. Mock refused.
117. In February, 1988, Mr. Stetz and Mr. Mock provided dinner for
Mr. Helsel and Mr. Zahorchak at the Country Inn, Laughlintown,
Pennsylvania.
a. The cost of this dinner was $137.18.
118. Mr. Helsel advised Mr. Mock that if he wanted to obtain the
school district business he would have to entertain Mr. Helsel.
119. Mr. Helsel requested that Mr. Mock and Mr. Stetz make political
contributions, which they did.
a. The contributions were in relation to a function that was
being held.
The following Findings relate to the Greater Johnstown School
District's appointment of the Central Tax Bureau of Pennsylvania
Incorporated as the District Tax Collector:
120. The Central Tax Bureau of Pennsylvania, Incorporated is engaged
in the collection of taxes for governmental entities.
121. Minutes of the Greater Johnstown School District Board of
Directors indicate the following in relation to the appointment of
the Central Tax Bureau of Pennsylvania, Incorporated as the District
Tax Collector:
a. September 29, 1986:
Mr. Theodore Helsel, Sr.
Page 62
For information - the Board accepted the following items as
information: (1) the letter received from Mr. Robert J.
Villella, Vice President, Central Tax Bureau of
Pennsylvania, Incorporated (Centax).
b. October 13, 1986:
Appointment of committee for the collection of delinquent
school real estate taxes - Chairman Helsel appointed Mr.
Zahorchak and Mr. Salem to serve on the committee for the
collection of the delinquent school real estate taxes. They
were directed to bring back recommendations to the Board
concerning the collection of these taxes.
c. November 10, 1986:
Mr. Soulcheck questioned whether the Central Tax Bureau
could provide the Board with an in- service.
d. January 28, 1987:
Mercantile and business privilege tax for Stonycreek
Township - a motion was made by Gjurich, seconded by Arcurio
to accept the information regarding the collection of the
mercantile and business privilege tax for Stonycreek
Township. Mrs. Beard commented that the district is under
contract with Central Tax Bureau of Pennsylvania,
Incorporated for the collection of the mercantile and
business privilege tax for Stonycreek Township. The Board
then called the letter received from Mrs. Margaretta B.
Johnson, Stonycreek Township Treasurer as per Attachment No.
7 and the letter received from Robert J. Villella, Vice
President, Central Tax Bureau of Pennsylvania, as per
Attachment No. 8 as items of information and directed that
the Central Tax Bureau of Pennsylvania, Incorporated letter
be sent to Mrs. Margaretta B. Johnson, Stonycreek Township
Treasurer, in answer to her request. Mr. Gjurich and Mr.
Arcurio concurred with this action and then withdrew their
motions.
A letter received from Mrs. Cheryl Leslie, Administrator,
Central Tax Bureau of Pennsylvania, Incorporated regarding
information pertaining to the collection of the occupation
privilege tax as per Attachment No. 11 and a letter sent out
by the District to our tax collectors regarding this request
as per Attachment No. 12.
e. March 16, 1987:
Mr. Theodore Helsel, Sr.
Page 63
For information - the Board accepted the proposals received
from the Central Tax Bureau of Pennsylvania, Incorporated,
regarding the collection of taxes as noted as an item of
information: (1) earned income and net profit tax, see
Attachment #4. (2) delinquent real estate tax (See
Attachment #5).
f. Appointment of delinquent real estate tax collector - on
motion of Mr. Gjurich, seconded by Mr. Soulcheck, the Board
approved holding the appointment of the Central Tax Bureau
of Pennsylvania, Incorporated as the collector for the
delinquent real estate taxes prior to the 1985 year with
copies of their proposal to be presented to the Board and
the solicitor at the next committee meeting.
This motion was approved on the following roll call vote:
Ayes: Aspey, Gjurich, Miller, Salem, Soulcheck, Stefanik
Nays: None. Absent: Arcurio, Helsel, Zahorchak.
g. June 15, 1987:
Approval of appointment of tax collectors for the 1987 -1988
School Year - comments were made by Mr. Bichko regarding the
proposal from Central Tax Bureau of Pennsylvania,
Incorporated for the collection of the delinquent real
estate taxes. On motion of Mr. Soulcheck, seconded by Mrs.
Aspey, the Board approved the appointment of the following
tax collectors for the 1987 -1988 school year: (3) Collector
of Delinquent Real Estate Taxes.
Central Tax Bureau of Pennsylvania, Incorporated as per
their proposal dated February 26, 1987 as per Attachment No.
6.
The above motion was approved on the following roll call
vote: Ayes: Arcurio, Aspey, Gjurich, Helsel, Salem,
Soulcheck. Nays: None. Absent: Miller, Stefanik,
Zahorchak.
h. August 17, 1987:
A letter received from the Central Tax Bureau of
Pennsylvania, Incorporated notifying the district that
effective January 1, 1988, they will serve in the capacity
as the collector /administrator of the earned income /net
profits taxes as levied by the Township of Stonycreek,
Cambria County, as per Attachment #16. Mr. Bichko,
Business Manager, commented on this Item.
i. September 21, 1987:
Mr. Theodore Helsel, Sr.
Page 64
For information - the Board accepted the following items as
information: (1) correspondence sent to Mr. Robert J.
Villella, Vice President, Central Tax Bureau of
Pennsylvania, Incorporated, and to the Board of School
Directors from Mr. Bichko as per Attachment #10.
On motion of Mr. Helsel, seconded by Mr. Gjurich, the Board
approved Mr. Bichko's recommendation to name the Central Tax
Bureau of Pennsylvania, Incorporated as the Earned Income
Tax Collector for the Greater Johnstown School District
effective January 1, 1988 provided there are no legal
barriers to accepting this recommendation. Mr. Soulcheck
made a motion to table this item which died for a lack of a
second.
This motion was approved on the following roll call vote:
Ayes: Arcurio, Gjurich, Helsel, Salem, Soulcheck, Stefanik.
Nays: None. Abstained: Heinlein.
122. Central Tax Bureau of Pennsylvania, Incorporated provided eight
tickets to a Pittsburgh Steelers football game in 1989.
a. After the game, a dinner was provided at the Fox Chapel
Country Club.
b. Mr. Helsel was present at this outing.
123. Central Tax Bureau of Pennsylvania, Incorporated also treated
Mr. Helsel and his wife to a play in Pittsburgh.
124. Statements of Financial Interests on file with the Greater
Johnstown School District for Theodore H. Helsel indicate as follows:
a. Statement date: April 30, 1987.
For calendar year: 1986.
Position: School Director.
Creditors: First United Federal (12 %).
All other categories of Financial Interests: None.
b. Statement date: April 26, 1988.
For calendar year: 1987.
Position: School Director.
Creditors: First United Federal (12 %).
Moxham National Bank (14 %).
Direct /Indirect Sources of Income: Seasonal Air.
All other categories of Financial Interests: None.
c. Statement date: February 9, 1989.
For calendar year: 1988.
Mr. Theodore Helsel, Sr.
Page 65
Position: School Director.
Creditors: First United Federal (12 %).
Moxham National Bank (14 %).
Direct /indirect Sources of Income: Johnstown Housing
Authority.
All other sources of income: None.
d. Statement date: February 14, 1990.
For calendar Year: 1989.
Position: School Director.
Creditors: First United Federal (12 %).
All other categories of Financial Interests: None.
125. Three Statements of Financial Interests were on file for
Theodore Helsel with the Johnstown Cambria County Airport Authority.
a. The Statements of Financial Interests are for calendar years
1987 -1989, inclusive.
b. All three Statements of Financial Interests are dated May
19, 1990.
c. The Statements of Financial Interests for 1987 indicates
First United Federal as a creditor and Seasonal Air as a
source of income. All other categories indicate none.
d. The Statement of Financial Interests for 1988 indicates
First United Federal as a creditor and Seasonal Air (sic)
and the Johnstown Housing Authority as sources of income:
All other categories of financial interests indicate none.
e. The Statement of Financial Interests for 1989 is the same as
d above.
III. Discussion: Theodore Helsel, Sr., hereinafter Helsel as a
member of the Board of Directors of the Greater Johnstown School
District (GJSD) was a public official as that term is defined under
the Ethics Act. 65 P.S. §402; 51 Pa. Code §1.1. As such, his conduct
is subject to the provisions of the Ethics Law and the restrictions
therein are applicable to him.
Initially, it is noted that Section 5 of Act 9 of June 26, 1989
provides, in part, as follows:
"This amendatory act shall not apply to
violations committed prior to the effective date
of this act, and causes of action initiated for
such violations shall be governed by the prior
law, which is continued in effect for that purpose
Mr. Theodore Helsel, Sr.
Page 66
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 October 4, 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 addition, Section 3(b) of the Ethics Law prohibits in part the
solicitation or acceptance by a public official of anything of value
including gifts, contributions, or anything of value based upon an
understanding that the vote, official action, or judgment of the
public official would be influenced thereby.
Finally, Section 5(b)(6) of Act 170 of 1978 provides that a public
official must list on his Financial Interests Statement (FIS) all
gifts in aggregate of $200 or more as well as the name and address of
the donor of the gift as well as the value and circumstances of each
gift.
In the instant matter, we must determine whether Helsel violated
Sections 3(a), 3(b), and 5(b)(6) of the Ethics Act regarding an
allegation that he solicited gifts, including but not limited to,
trips, meals, transportation from various vendors of the school
district in return for his support in either awarding or renewing
school district contracts with these vendors and also that he failed
to report such gifts on his FIS.
Factually, Helsel officially began serving as a member of GJSD on
January 1, 1986 and continued until December 31, 1989. In addition,
Helsel also served as a Representative to the Greater Johnstown Area
Mr. Theodore Helsel, Sr.
Page 67
Vocational Technical School Joint Operating Committee between 1986 and
1989 and as a member and treasurer of the Johnstown Cambria County
Airport Authority.
As a member of GJSD, Helsel regularly received various gifts from
the following vendors who did business or had contracts with GJSD:
Mcllwain School Bus Lines; Nutrition Incorporated; Patrick Ditko
Architect; Scheetz and Smith Insurance Brokers; Goff and Irwin,
Marketing Communication; Combined Insurance Company and Central Tax
Bureau of Pennsylvania, Incorporated. Helsel received from the above
vendors various favors, gifts, and gratuities in the form of dinners,
personal use of vans, tickets to sporting events, transportation,
political contributions, etc.
A review of Helsel's conduct vis -a -vis each of the above seven
named vendors will be considered seriatim. As to each vendor, the
record reflects that Helsel advocated and supported each of the
vendors while requesting various gifts or gratuities from them.
As to the first vendor, Mcllwain School Bus Lines, transportation
services were provided to GJSD for a fifteen year period. When Helsel
became a member of the school board, Helsel initially advocated that
the school district obtain another transportation company for the
busing of students rather than Mcllwain. Such action was taken by
Helsel in 1986 even though the existing September 16, 1985 contract
with Mcllwain was a five year contract with a provision that the
remaining four years would be negotiated only as to the rate. The
contract could be rebid only if settlement could not be reached
between the school district and Mcllwain as to the applicable rate for
the given year. Not only did Helsel criticize Mcllwain in an attempt
to have the company ousted as the District Transportation provider but
he also contacted the representatives of competing bus lines to make
presentations as to school transportation services. After the school
district solicitor expressed an opinion that the school district must
negotiate in good faith with the Mcllwain Bus Company under the
current contract, the other competing bus companies were informed not
to attend.
The minutes of GJSD reflect the following action regarding the
contract with the Mcllwain Bus Lines: on January 27, 1986, Helsel
votes in favor of a successful motion to discuss the bus
transportation contract with Mcllwain; on March 24, 1986, Helsel
voted in favor of a successful motion to table the request for
approval of the contract with Mcllwain; on April 14, 1986, Helsel made
and voted in favor of a successful motion to table the Mcllwain School
Bus contract; on April 28, 1986, Helsel cast the sole negative vote as
to the approval of the Mcllwain School Bus Lines contract followed by
his commentary that he did his own transportation study and concluded
that Mcllwain could not provide the best contract for the school
district even though the administrative staff of the district found
Mr. Theodore Helsel, Sr.
Page 68
that Mcllwain was cheaper than other transportation providers in the
district; on April 24, 1989, Helsel voted in favor of a motion to
- table the extension of the student transportation agreement with
Mcllwain School Bus Lines; on May 18, 1989, information was conveyed
to the Board regarding two items of the transportation agreement, the
first being that a 4.5 percent cap on the consumer price index would
be intact for the annual increase up to 6 percent at which time an
adjustment could be requested and secondly that the Mcllwain School
Bus Lines, Inc. would provide six new buses for the 1989 -1990 school
year; in May 22, 1989, Helsel made and voted in favor of a successful
motion to enter into a new five year transportation agreement with
McIlwain School Lines beginning in 1990 - 1991 whereby the rate of
increase as to the remaining year 1988 -1989 would be estimated on the
Consumer Price Index, the rate of increase on the following years
would also be based on the Consumer Price Index with a 4.5 cap with
the provision that the contractor could petition the board for
adjustment and lastly that the clause requiring the purchase of six
new buses be deleted.
Although the record reflects that Helsel in 1989 had become an
advocate for Mcllwain School Bus Lines, the opposite was true in
1986 when Helsel opposed Mcllwain and refused to sign the agreement
which was signed by the Vice President Raymond R. Arcurio. However,
after the contract was renewed with Mcllwain, Helsel immediately began
to engage in a continued course of conduct requesting gratuities,
favors and gifts from Mcllwain Bus Lines. In particular, Mcllwain
purchased tickets to a political fund raiser at the specific request
of Helsel. In addition on several occasions, Helsel requested vans
from the Mcllwain School Bus Lines for his own personal purposes which
were granted (Fact Finding 24). Such purposes consisted of fishing
trips, travel to a football game, attendance at a seminar (Fact
Findings 25 through 27). However, in March of 1989 Mcllwain finally
refused a request by Helsel for a use of a Mcllwain van for Helsel and
his family to travel to Orlando, Florida.
As to the Appalachia Intermediate Unit No. 8, the minutes of the
Board of Directors reflect that Helsel voted in favor of a motion to
award a transportation contract to Mcllwain. Likewise, on August 25,
1988, Helsel also voted in favor of several contracts with the
Mcllwain Bus Lines. The foregoing votes by Helsel occurred at a time
when Helsel was receiving gratuities from the school bus company
(Fact Finding 32). Parenthetically, the records from the Appalachia
Intermediate Unit No. 8 reflect that Helsel and his family attended a
conference in Orlando, Florida between March 3 and 6, 1989 for which
he received reimbursement in the amount of $529.92 from the
Intermediate Unit even though the mileage that Helsel paid for budget
rent a car amounted to only $112.17 (Fact Finding 33 e). In this
instance Helsel received an excessive reimbursement in the amount of
$104.17. The facts reflect that the representative of Mcllwain School
Mr. Theodore Helsel, Sr.
Page 69
Bus Lines felt pressured by Helsel in light of the fact that he had
tried to have their contract terminated in 1986 (Fact Finding 35).
Mcllwain School Bus Lines also provided transportation services to
the Greater Johnstown Area Vocational Technical School of which Helsel
was a member of the Joint Operating Committee. The minutes of the Vo-
Tech School reflect the following actions taken by Helsel which
supported Mcllwain's School Bus Lines: on August 25, 1987, Helsel
made a motion, which failed for lack of a second, to increase the
Mcllwain's Bus Lines rate by $3.00 per run; Helsel voted for a second
unsuccessful motion to provide Mcllwain with an additional $2.50 per
run; on September 22, 1987, Helsel seconded and voted in favor of an
unsuccessful motion which would give Mcllwain an addition $3.18 per
run for the 1987 -1988 school year; Helsel then made and voted in favor
of another motion whereby the bus line would be compensated at the
rate of an additional $2.50 per run which carried; on April 25, 1989,
Helsel voted against an unsuccessful motion that the bus contracts be
placed in sealed bids; on May 23, 1989, Helsel seconded and voted in
favor of a motion for negotiations with the bus contractor on a
transportation contract and on June 27, 1989, Helsel made and voted
in favor of a successful motion to proceed with the bus contract
negotiations with the present contractor, Mcllwain. The above
activities of Helsel as a member of the Vo -Tech School also occurred
at the time when he was requested and receiving gratuities from
Mcllwain (Fact Finding 39).
As to the involvement of Helsel with Nutrition, Inc. which is a
food service, management, custodial, maintenance, laundry service and
vending company, GJSD had a contract with Custom Management
Corporation for food service at the time that Helsel became a member
of the Board. In a December 2, 1985 meeting, which was a month prior
to the time that Helsel officially came on the Board, he questioned
whether the Custom Management Food Service Contract could be reopened.
Thereafter, in an April 14, 1986 meeting, the minutes reflect Helsel
voting in favor of a motion to send a letter to Custom Management
Corporation regarding a summer feeding program and its contract with
the school district.
In 1986, Custom Management Corporation was replaced by Nutrition,
Inc. to provide the food services to the district. The first
agreement with Nutrition, Inc. which was signed by Helsel terminated
on August 14, 1987. Thereafter on August 15, 1987 another agreement
was entered into between the school district and Nutrition, Inc. for a
one year period. Thereafter on August 15, 1987, 1988, and 1989 the
school district and Nutrition, Inc. entered into one year contracts
for food management services.
The minutes of the GJSD reflect the following activity as to the
contract with Nutrition, Inc.; on May 28, 1986, Helsel announced bid
advertising for the food service contracts; on July 8, 1986, the
Mr. Theodore Helsel, Sr.
Page 70
Board tabled the award of the tabulation of the bids of the food
service contract; on July 28, 1986, Helsel made and voted in favor a
successful motion to the award of the cafeteria food service contract
to Nutrition, Inc. from the four proposals received; on October 13,
1986, Helsel and two other individuals asked Nutrition, Inc. to check
the equipment in the schools and report back to the Board; on January
25, 1987, Helsel made and voted in favor of a successful motion which
would amend the Board's contract with Nutrition, Inc. to add a pilot
breakfast program at an elementary school; on February 16, 1987,
Helsel made and voted in favor of a successful motion to grant
permission for Nutrition, Inc. to proceed with the application process
for a summer food service program to children followed by action by
Helsel seeking a vote of confidence to commend Nutrition, Inc. for
"superior work ", followed by a motion of Helsel to that effect with an
amendment expressing gratitude for the development of a breakfast
program which action was critized by a citizen on the basis that no
commendation should be made for a job that Nutrition, Inc. is being
paid to perform; on April 6, 1987, Helsel made and voted in favor of
a motion to approve requests from Nutrition, Inc. for food service
department events and summer food service programs to utilize the
school cafeteria for a county food service association meeting, a
month of April special events, and a summer food service program
followed by Helsel seconding and voting in favor of a motion to
approve Nutrition, Inc. as to the month of April special events; on
May 4, 1987, there were several motions concerning an item 6 -A -(7) as
to a request by Nutrition, Inc. to come into the schools to conduct a
survey with Helsel seconding and voting in favor of an unsuccessful
motion to table amoritorium on item 6 -A -(7) followed by Helsel making
a motion to amend the April 22, 1987 minutes as to item 6 -A -(7) to
allow Nutrition, Inc. to conduct the survey as to which motion no role
call vote was taken; on July 6, 1987, Helsel seconded and voted in
favor of a motion which would allow the United Cerebral Palsy of
Southern Allegheny's Region, Inc. to enter a contract with Nutrition,
Inc. to provide lunches with the utilization GJHS cafeteria and
equipment; at the August 13, and 17, 1987 meetings, inquiry was made
by others as to the lateness and increases as to the budget
presentation by Nutrition, Inc. followed by Helsel making and voting
in favor of a motion which included a district -wide lunch and
breakfast program to approve the projected food service budget from
Nutrition, Inc.; on November 2, 1987, Helsel made and voted in favor
of a motion to approve the food service management agreement with
Nutrition, Inc.; on March 21, 1988, petitions are presented to the
Board requesting consideration of changing the food service company
noting that the current provider Nutrition, Inc. was transporting milk
without refrigeration and also serving contaminated butter with mold;
on April 25, 1988, Helsel made and voted in favor of a successful
motion to deny a request for the use of school facilities by a parent
representative from an elementary school to hold meetings of an
advisory board as to the school food service; on June 27, 1988, Helsel
made and voted in favor of a motion to renew the contract with
Mr. Theodore Helsel, Sr.
Page 71
Nutrition, Inc. for the 1988 -1989 school year; on July 25, 1988,
Helsel made a motion, which died for a lack of a second, for Nutrition
Environmental Services to survey the school district; on October 24,
1988, Helsel voted in favor of a motion which would allow United
Cerebral Palsy of Southern Allegheny's Region, Inc. to provide daily
lunches to its children and also to approve a contract with the Easter
Seals Society of Cambria County to contract with the district to
provide lunches for their day -care program; on January 19, 1989,
Helsel was active in the discussion allowing representatives from
Nutrition, Inc. to check the status of the current cafeteria equipment
for the possibility of up- grading same; on January 23, 1989, Helsel
voted in favor of a motion granting authorization to replace or repair
items of machinery or equipment deemed obsolete or in need of repair;
on February 27, 1989, Helsel voted in favor of a motion raising the
price of a carton of milk by five cents; on June 26, 1989, Helsel
voted in favor of a motion to award the cafeteria management service
contract to Nutrition, Inc. as low bidder and in favor of a motion to
approve a cafeteria committee addendum to advertise for bids for the
replacement of certain equipment; and finally in August and October of
1989, the minutes reflect Helsel presenting a letter from Nutrition,
Inc. which sought the addition of an assistant food service director
and thirty additional hours for hourly workers followed by the
solicitor explaining that these items had been deleted, followed by
Helsel voting in favor of a successful motion to restore and fund a
position of assistant food service director at a cost of over $22,000.
During the above period of time when Helsel was either making,
seconding or voting in favor of motions, advocating in favor of
Nutrition, Inc. or against the prior food service provider or against
a parent organization concerned about food service in the district,
Helsel either individually or in conjunction with others received the
following gifts, gratuities, services, or favors (Fact Finding 53):
dinner and refreshments totaling $2,950 on September 14, 1986 for the
Johnstown School Board; four Pittsburgh Steelers football tickets for
Helsel on September 15, 1986; a dinner costing $55 for Helsel on
December 5, 1986; lunch or dinner for Helsel and another on January
20, 1987 in the amount $53.10; meals for Helsel and others totalling
$192.80 on February 11, 1987; breakfast for Helsel amounting to $42.58
on February 12, 1987; dinner for 27 persons including Helsel and his
wife on February 27, 1987 amounting $1,851.16; party donation of a
$100 on March 4, 1987; a room and bar charges amounting $64.14 on
April 4, 1987 for Helsel; two Pittsburgh Pirates ball game tickets for
Helsel on April 29, 1987; lunch for Helsel and his wife on May 5, 1987
amounting to $38.15; lunch for Helsel and another on May 7, 1987 in
the amount of $30.48; dinner for Helsel and another totalling $162 on
May 11, 1987; lunch for Helsel on July 16, 1987 amounting to $20.50;
party contribution of $200 on October 13, 1987; school board dinner on
October 20, 1987 amounting $220; dinner for Helsel and another
November 19, 1987 amounting to $71.85; dinner for Helsel on November
12, 1987 amounting $61.40; dinner, drinks and tip for Helsel and
Mr. Theodore Helsel, Sr.
Page 72
guests on November 29, 1987 amounting to $152.63 as well as an
additional $67.43 in additional drinks and tip at another
- establishment; cocktails for Helsel and others on December 7, 1987
amounting to $50; dinner for thirty people including Helsel and his
wife on January 14, 1988 amounting to $1,997; dinner for Helsel and
another person on January 19, 1989 amounting to $107; dinner with
Helsel and another March 9, 1989 amounting $38; dinner and drinks for
Helsel and others on March 29, 1988 amounting to $263.07; expense
account on April 1, 1988 for Helsel and others amounting to $50;
breakfast for Helsel and another on May 11, 1988 amounting $44.17;
lunch for Helsel and others on July 25, 1988 amounting to $6; lodging
for Helsel paid on August 5, and 6, 1988 amounting to $75.08; dinner
for Helsel and another on August 9, 1988 amounting to $23; four
Pittsburgh Pirate ball game tickets for Helsel as well as dinner and
drinks for four individuals amounting to $202.45; activity on
September 3, 1988 for Helsel and another amounting to $23; dinner for
Helsel on September 8, 1988 amounting to $53.69; meeting activity with
Helsel on September 8, 1988 amounting to $9; dinner for Helsel on
September 20, 1987 amounting to $19.19; lunch for Helsel on October
30, 1988 amounting to $7.72; activity in December 1988 for Helsel
amounting to $38.44; dinner for Helsel on December 20, 1988 amounting
to $26.86; activity on January 12, 1989 for Helsel amounting to
$58.53; dinner for 29 persons including Helsel and his wife on January
20, 1989 amounting to $2,168.33; dinner for Helsel on February 24,
1989 amounting to $33; eight tickets to a Daffodil Ball at $30 each on
March 3, 1989; convention related payments for Helsel on March 6, 1989
amounting $347.40; dinner for Helsel, his wife and two other people on
March 31, 1989 amounting $205; breakfast for Helsel on May 18, 1989
followed by a supper with others amounting to $47.53; 8.4 pounds of
shrimp for Helsel on June 30, 1989 amounting to $83.42; hotel bill
for Helsel and friends on November 19, 1989 amounting to $134.17; and
four tickets to the Pittsburgh Steelers on November 29, 1989.
In addition, the record (Fact Finding 54) reflects 28 instances of
various gratuities offered by Nutrition, Inc. to various members of
the GJSD without any specific identification as to individual
recipients. It is important to note that in one of the numerous
specific requests by Helsel as to tickets for sporting events there
was contained a notation to Nutrition, Inc. regarding Dorothy Miller
that "[s]he is still good to have in our corner..." (Fact Finding 61
a) (Emphasis added). It is also noteworthy that Nutrition, Inc.
provided three Board appreciation dinners all of which were attended
by Helsel and his wife; Nutrition, Inc. did not provide such
appreciation dinners for other clients for which they provided food
services. Likewise, Nutrition, Inc. also supplied fishing and golf
outings to the GJSD with Helsel serving as chairman of the Board and
also the primary liaison between the Board and Nutrition, Inc.
The facts also reflect a course of conduct on the part of Helsel
in attempting to expand the business activities of Nutrition, Inc.
Mr. Theodore Helsel, Sr.
Page 73
In particular, Helsel approached Damian Holtz who is business manager
for the Greater Johnstown Vocational Technical School and suggested
" that Nutrition, Inc. be a possible supplier of food services for that
school (Fact Finding 77). Similarly, Helsel approached Lawrence
Malizi who is the business manager of the Appalachia Intermediate Unit
No. 8 and suggested that Nutrition, Inc. be a possible food supplier
for the Intermediate Unit (Fact Finding 78). Finally, Helsel as an
employee of the Johnstown Housing Authority had discussions with
Nutrition, Inc. as to how the administrative system at the authority
worked since Nutrition, Inc. was interested in the possibility of
obtaining a contract for custodial maintenance with that entity.
Finally, regarding Nutrition, Inc. it is interesting to note that in
July of 1986, their director of marketing wrote to the Board urging
that politics or entertainment by the then existing provider should
not influence them and that the Board's decision should be in the best
interests of the students and district. A follow -up letter was sent
dated July 16, 1986 wherein Nutrition, Inc. clarified its prior
letter by stating that the current provider was thanking the Board for
current business and that future business should not be considered
when enjoying what had been received by the existing provider for past
business.
Turning to the third provider, the appointed architect Patrick
Ditko, the following reflects Helsel's activities from December 1985.
The minutes of the GJSD reflect the following activity regarding the
district architect: on December 2, 1985, Helsel made and voted in
favor of a motion to hire Patrick S. Ditko as architect /inspection
engineer for the district; on May 18, 1987, Helsel made and voted in
favor of a motion to approve the performance of a feasibility study as
to the school district buildings as outlined in the proposals
submitted by Ditko; on June 27, 1988, Helsel voted in favor of a
motion to approve Ditko to prepare bid specifications for the
renovation of the physical education facilities at both the high
school and junior high school; on December 6, 1988, a motion was made
to appoint another firm as school district architect which was
withdrawn followed by a motion to appoint Ditko as to which motion
Helsel voted against and on January 23, 1989, Helsel abstained as to a
motion which authorized the school district architect to prepare
preliminary cost estimates for various projects.
The change by Helsel in December of 1988 from support to
opposition of Ditko corresponded in time to an occurrence wherein
Helsel requested Ditko to take the Board on a trip to Atlantic City;
Ditko refused after consultation with his attorney. The record does
reflect that Peter W. Chiodo, a partner of Ditko, did, beginning in
1983, sponsor bus trips for family and friends. Further, a trip did
take place on January 11, 1986, with one of the guests being Helsel.
The record reflects that no school board member had ever taken one of
these trips in the past but Helsel and several other members of the
Board did attend that particular trip.
Mr. Theodore Helsel, Sr.
Page 74
The fourth company providing services to the GJSD with which
. Helsel had contact was Sheetz, Smith and Company, Inc. which was
involved in the business of underwriting municipal bonds. The minutes
reflect the following activities as to school district bonds: on
January 25, 1988, Helsel voted in favor of a motion to proceed with
the refunding of the 1985 general obligation refunding bonds; in April
11, 1989, Helsel voted in favor of a motion to appoint Sheetz, Smith
and Company as the investment banker for GJSD as well as to provide
an authorization to proceed with the implementation of a financing
plan for a school district's building and renovation capital
improvement projects totalling $20,000,000 and on May 4, 1989, Helsel
voted in favor of a motion to approve a resolution concerning a
$5,000,000 bond issue with Sheetz, Smith, and Company, Inc. as the
investment banker.
During this period of time, Helsel received the following
gratuities or items of value from Sheetz, Smith and Company, Inc.: a
dinner for Helsel on February 8th and 9th amounting to $10; a dinner
for Helsel and three other people totalling $52 on January 11, 1988; a
dinner for Helsel and his family amounting to $38.34 on January 17,
1988; a dinner on September 28, 1988 for Helsel, his wife and daughter
with their proportionate share totalling $207.07; a dinner for Helsel
on January 13, 1989 in the amount of $30; a dinner for Helsel and his
brother among others on January 12 - 15, 1989 with their proportionate
share equalling $100; a lunch for Helsel on March 16, 1989 in the
amount of $23.22 and a school board dinner on August 27, 1989
totalling $610, approximately $44 which would be attributable to
Helsel.
Separate and apart from the above, Susan L. Kenny, who is the
spouse of Thomas Kenny of Sheetz, Smith and Company, Inc., made a $300
campaign contribution to Helsel in July of 1989 regarding his campaign
for Johnstown School Board. In addition, Kenny provided dinner for
Helsel, his wife, and daughter while attending a conference in
Orlando, Florida; purchased tickets to political affairs at Helsel's
request; sponsored a dinner at the Bookbinders Restaurant in
Philadelphia for members of GJSD including Helsel and provided Helsel
with tickets to the Pittsburgh Steelers football game in December 1989
as well as a lunch prior to that game.
Goff and Irwin, Inc. also had dealings with GJSD and with Helsel.
In 1988, the school district solicited proposals for the marketing of
a plan regarding school building utilization. After Goff and Irwin
submitted a proposal in the amount of $26,375, they were subsequently
invited by the Board to an August 9, 1988 meeting to discuss the
proposal. At that meeting the contract proposal was revised downward
and submitted with a figure of $19,750 which was approved at an August
22, 1988 meeting. The minutes of the GJSD reflect that on August 22,
1988, Helsel made and voted in favor of a motion to approve the
Mr. Theodore Helsel, Sr.
Page 75
community communications efforts concerning the building utilization
plan. Following the award of the above contract, Helsel contacted
Gary Irwin and suggested that the firm should hold a dinner meeting
for the school board. Helsel specifically reminded Irwin that he
voted for his firm. Subsequently the number of attendees at the
proposed dinner was expanded from 17 to 40, but the dinner was never
held. Thereafter, on October 1988, Helsel contacted Gary Irwin
regarding the placing of a political advertisement for which Irwin
paid $100 followed by a request by Helsel to purchase four tickets to
a political dinner as to which Irwin also complied.
Helsel also had involvement regarding the school district
selection of a group insurance provider. Financial Planners Limited
of Johnstown was the group dental provider for the district in 1986.
However, in September 1986, representatives of Bottonwood Securities
Corporation solicited business for the group vision /dental insurance
of the school district. Richard Mock and Edward Stetz who were
representatives of Bottonwood Securities Corporations subsequently
submitted projected costs in writing for both the combined Insurance
Company of America and Travelers which was placed on the school
district agenda for a meeting of October 27, 1986. On the date of
that meeting, Helsel had breakfast with Mock who paid the bill.
The minutes of the GJSD reflect the following activity as to the
award of the group dental and vision insurance contract: on May 24,
1986, Helsel made and voted in favor of a motion to approve
establishing a separate dental and vision policy for each member; on
July 8, 1986, Helsel voted in favor of a motion to award the insurance
to Travelers Insurance which motion was defeated; on August 25, 1986,
Helsel made and voted in favor of a motion which did not carry to
approve Travelers Insurance for a group, life, dental and vision care
insurance followed by a subsequent motion to approve hiring Travelers
Insurance for group, life, dental and vision care insurance pending
review of material information which motion carried with Helsel voting
for the majority; on October 13, 1986, Helsel voted in favor of an
unsuccessful motion to award Travelers Insurance the group, life,
dental and vision care insurance for the district; on October 27,
1986, Helsel made and voted in favor of an unsuccessful motion to
award group, life, dental and vision care insurance to combined
insurance company followed by a successful motion as to which Helsel
voted against to continue with the school districts present carrier
for a group, life, dental and vision care insurance.
In March 1987, Mr. Stetz and Mr. Mock provided dinner for Helsel
and another board member at a cost of $112.43. At that dinner Helsel
mentioned to Mock that board member Miller was going on a weekend trip
and that Mock should provide in excess of $2,000 to Ms. Miller, but
Mock refused. Thereafter Stetz and Mock provided dinner for Helsel
and another board member on February 1988 at total cost of $137.18.
Helsel specifically told Mock that if he wanted to obtain school
Mr. Theodore Helsel, Sr.
Page 76
district business he would have to entertain Helsel as well as make
political contributions (Fact Finding 11a).
The last entity under consideration is the appointment of Central
Tax Bureau of Pennsylvania, Inc. as the district tax collector. The
minutes of the GJSD reflect the following activity regarding the
appointment of Central Tax Bureau of Pennsylvania, Inc.: on October
13, 1986, Helsel appoints two persons to a committee for the
collection of delinquent taxes who are requested to bring back
recommendations to the board; on March 16, 1987, the Board accepts the
proposals received from Central Tax Bureau of Pennsylvania regarding
the collection of taxes followed by the subsequent appointment of
Central Tax Bureau as the Collector of delinquent real estate taxes;
on June 15, 1987, Helsel voted in favor of Central Tax Bureau of
Pennsylvania, Inc. as the collector of delinquent real estate taxes;
on September 21, 1987, Helsel made and voted in favor of a motion to
name Central Tax Bureau of Pennsylvania, Inc. as the earned income tax
collector for the GJSD.
The Central Tax Bureau of Pennsylvania, Inc. in 1989 provided
eight tickets to a Pittsburgh Steelers football game and provided an
after game dinner which was attended by Helsel. In addition, Central
Tax Bureau of Pennsylvania, Inc. also treated Helsel and his wife to
a play in Pittsburgh.
Despite the immense multitude of gifts received by Helsel, the
Statements of Financial Interests on file for Helsel with the GJSD for
calendar years 1986 through 1989 and the Financial Interests
Statements for Helsel on file with the Johnstown Cambria County
Airport Authority for the calendar years 1987 -1989 do not list any of
the gifts, gratuities or services provided by the above vendors.
We will now review the record in order to determine the total
amount of gifts that Helsel received from the various vendors.
In attempting to discern the financial gain which Helsel received
from Mcllwain and the other vendors, we must limit ourselves to
compute only the gain which can be determined with reasonable
certainty based upon the existing facts. In that regard, Fact Finding
24 reflects six different occasions on which Mcllwain supplied a van
to Helsel for his personal use. Applying a rate of $55 per day (Fact
Finding 33b), it appears that Helsel received at least a gain of $55 a
day for each of the five transaction dates as noted with the exception
of the August 5, 1988 trip which would generate $165, given that it
was a three day trip. The value of the van utilization to Helsel for
the six occasions would amount to $440.
Concerning the gifts and gratuities from Nutrition, Incorporated,
the financial gain to Helsel amounted to $2882.21. We find Helsel
Mr. Theodore Helsel, Sr.
Page 77
received $118.72 (Findings 54u, 55 - $949.78/8 = $118.72) as the
portion attributable to him from group gifts.
Individually, Helsel received $2763.39 in gifts /gratuities from
Nutrition, Inc. ($2,882.21 - 118.72) delineated as follows (Fact
Finding 53):
c. $27.50 ($55 / 2)
d. $17.70 ($53.10 / 3)
e. $48.20 ($192.80 / 4)
f. $21.29 ($42.58 / 2)
g. $137.12 ($1851.16 / 27)
h. $100 ($100)
i. $64.14 ($64.14)
k. $25.43 ($38.15 / 3 x 2)
1. $10.16 ($30.48 / 3)
m. $54 ($162 / 2)
n. $10.25 ($20.50 / 2)
o. $200 ($200)
q. $23.95 ($71.85 / 3)
r. $30.70 ($61.40 / 2)
s. $152.63 (152.63)
t. $67.43 ($67.43)
u. $10 ($50 / 5)
v. $133.13 ($1997 / 30 x 2 ((Mr. & Mrs.))
w. $35.66 ($107 / 3)
x. $12.66 ($38 /3)
y. $65.76 ($263.07 / 4)
z. $12.50 ($50 / 4)
aa. $14.72 ($44.17 / 3)
bb. $6 ($6)
cc. $75.08 ($75.08)
ee. $7.66 ($23 / 3)
ff. $202.45 ($202.45)
gg. $7.66 ($23 / 3)
hh. $26.84 ($53.69 / 2)
ii. $4.50 ($9 / 2)
jj. $9.59 ($19.19 / 2)
kk. $3.86 ($7.72 /2)
11. $19.22 ($38.44 /2)
mm. $13.43 ($26.86 /2)
nn. $26.76 ($58.53 / 2)
oo. $149.54 ($21.68 / 29 x 2 ((Mr. & Mrs.))
pp. $16.50 ($33 / 2)
qq. $240 ($240)
rr. $347.40 ($347.40)
ss. $102.50 ($205 / 4 x 2)
uu. $11.88 ($47.53 / 4)
vv. $83.42 ($83.42)
ww. $134.17 ($134.17)
Mr. Theodore Helsel, Sr.
Page 78
Grand Total $2763.39
Turning to the gratuities /gifts received from Scheetz, Smith and
Company, Incorporated, the gain received by Helsel (Fact Findings 88
and 99) amounted to $609.07:
98.
a. $10 ($10)
b. $13 ($52 / 4)
c. $38.34 ($38.34)
d. $62.12 ($207.07 x 30 %)
e. $30 ($30)
f. $100 ($664.61)
g. $11.61 ($23.22 / 2)
h. $44 ($610 / 15)
99. $300 ($300)
Grand Total $609.07
Finally, as to gifts/ gratuities given by the firm of Goff and
Irwin to Helsel, the gain received by Helsel amounted to $171.76
delineated as follows: Finding 107, $100; Finding 115, $37.47
($112.43 / 3) and Finding 117, $34.29 ($137.18 / 4).
The total gain that we can discern with definiteness from the
above four vendors amounted to $4102.94.
In applying the above quoted provisions of the Ethics act to these
facts, we find violations of Section 3(a), 3(b) and 5(b)(6).
As to Section 3(a) of the Ethics Act, there are a multitude of
actions by Helsel as a public official in using public office for
personal financial gain whereby Helsel would advocate for and support
vendors to the school district and the vendors in turn would provide
gifts /gratuities on their own initiative or in most situations accede
to the requests of Helsel for such items. Since there is obviously no
provision in the Public School Code which allows a school board member
to use or misuse public office for personal financial gain, such is
other than compensation provided for by law. The violation of Section
3(a) is clear.
As to Section 3(b), we preliminarily note that an administrative
agency may adopt inferences of facts in reviewing evidence or
established facts. Simon v. Fine, 167 Pa. Super 386, 74 A.2d 674
(1950). In reviewing the uncontested findings, we find as a matter of
fact that Helsel did have an understanding whereby he as a public
official solicited or accepted gifts /gratuities from vendors of the
district based on an understanding that his vote, official action or
Mr. Theodore Helsel, Sr.
Page 79
judgment would be influenced thereby. Accordingly, we conclude as a
matter of law that Helsel violated Section 3(b) of the Ethics Act.
Finally, as to Section 5(b)(5) of the Ethics Act, we find that
Helsel violated this provision of law when he failed to list the name
and address of the donors, the value and circumstances of gifts valued
in the aggregate of $200 or more for the 1986 through 1989 FIS's filed
with the Johnstown School District and as to the 1987 through 1989
FIS's filed with the Johnstown Cambria County Airport Authority.
Helsel is required to file amended fIS's within 30 days of the date of
this Order for each of the above years listing the donors, addresses,
value and circumstances of these gifts.
As to the Section 3(a) and 3(b) violations, the egregious nature
of Helsel's conduct compels us to comment upon the lack of ethics on
his part. It is particularly revealing that at the outset of holding
office in December of 1985, Helsel immediately embarked upon a course
of conduct to either eliminate existing vendors so that they could be
replaced by others who would shower Helsel with favors in return for
his efforts or alternatively to impress upon the existing vendors that
his continued support would have a price, that being the quid pro quo
of favors in return for his support.
It is both clear and obvious that Helsel was so dedicated to the
pursuit of public office for personal gain when one considers his
efforts to enlarge and expand the services provided by Nutrition Inc.,
this despite the petitions and pleas of concerned parents and citizens
of the school district regarding the transportation of milk without
refrigeration and the serving of butter contaminated with mold to the
students. In what appears to be typical Helsel conduct for personal
financial gain, Helsel reacted to these concerned parents and citizens
about the food service by making and voting in favor of a motion to
deny a request by an elementary school parent representative to use a
school seminar room to hold a meeting of the advisory board to the
school food service (Fact Finding 45w). We also note Helsel's
machination of criticizing the prior food vendor about using school
district facilities (Fact Finding 42a) as compared to his personal
efforts to provide various opportunities to Nutrition Inc. (Fact
Finding 45). Helsel obtained as a result of such effort numerous
financial rewards (Fact Findings 53, 54, 59, 62, 63, 64, 65, 74, 75)
at the expense of the public trust. Helsel's actions of throwing the
public trust to the wind is exemplified when he requested ball game
tickets from Nutrition Inc. for another school board member as to whom
Helsel commented that it would be "...good to have [her] in our
corner... ". It is obvious that in that corner there was no room, in
Helsel's view, for the public trust.
The Helsel reign in public office for personal financial gain
lasted through his four years on the Board. Although the above merely
highlights Helsel's misuse of office, we must conclude by noting that
Mr. Theodore Helsel, Sr.
Page 80
the Ethics Act was promulgated in part to regulate the conduct of
public officials /employees and provide ethical guidance so that the
public confidence in their government would be strengthened.
Unfortunately, as to Helsel, such did not occurr since Helsel's
conduct epitomizes the expression - to the victor goes the spoils.
Section 9(c) of the Act 170 provides for the imposition of a
treble penalty:
(c) "Any person who obtains financial gain from
violating any provision of this act, in addition
to any other penalty provided by law, shall pay
into the State Treasury a sum of money equal to
three times the financial gain resulting from such
violation."
In the instant matter, a treble penalty is warranted. As noted
above, the financial gain that we can discern with certainty amounts
to $4,102.94. We will impose a treble penalty in the amount of $12,
308.82.
This Commission will only impose a treble penalty under Section
9(c) where there is clear and convincing evidence of a discernable
financial gain; a use of office to obtain said gain and intentional,
blatant, extraordinary and /or exceptional circumstances whereby the
conduct, based on all releveant factors, warrants such action. We
believe that such circumstances are present. The egregious nature of
Helsel's conduct; the continuing nature and extent of his requests for
gifts /gratuities; and the numerous other gifts received (eg: baseball
tickets) which cannot be valued from available records, clearly
indicate that such a financial penalty is most appropriate
considering Helsel's use of office for financial gain and the
intentional nature of such use.
Based upon a review of the entire record, we will also refer this
matter to the appropriate law enforcement authority with our
recommendation that a criminal prosecution be instituted.
Additionally, Section 9(e) of the Ethics Law provides in part that
any preson who willfully affirms or swears falsely in regard to any
material matter before a Commissin proceeding pursuant to Section 8 is
guilty of a felony and shall be fined not more than $5,000 or
imprisoned for not more than five years or be both fined and
imprisoned.
During the course of this proceeding, certain statements were
taken under oath including that of Mr. Helsel which statements are
contradicted by the facts as previously outlined.
Mr. Theodore Helsel, Sr.
Page 81
As such, we are also referring this matter for review as to
whether there have been any violations of Section 9(e) of the Ethics
Law or of the perjury or false swearing provisions of the Crimes
Code.
Additionally, we are also referring this matter for review as to
whether any other laws have been implicated in relation to other
individuals involved in this matter.
IV. Conclusions of Law:
1. Theodore Helsel as a member of the Board of the Greater Johnstown
School District was a public official subject to the provisions of
the Ethics Act.
2. Helsel violated Section 3(a) of the Ethics act by using public
office to obtain a financial gain for himself and members of his
immediate family by supporting or voting for vendors as to school
district contracts in return for gifts or gratuities.
3. The discernible financial gain received by Helsel from vendors who
held contracts with the school district amounts to $4,102.94.
4. Helsel violated Section 3(b) of the Ethics Act by soliciting or
receiving gifts or gratuities of value from vendors who held
school district contracts based upon the understanding that his
vote, official action or judgment would be influenced thereby.
5. Helsel violated Section 5(b)(5) of the Ethics act when he failed
to list the gifts or gratuities from vendors who had contracts
with the school district on his calendar year 1986 through 1989
FIS's filed with the Greater Johnstown School District and his
calendar year 1987 through 1989 FIS's filed with the Johnstown
Cambria County Airport Authority.
In re: Theodore Helsel, Sr. : File Docket: 8? -122 -C
: Date Decided: 5/23/91
: Date Mailed: b /luf91
ORDER No. 801
1. Theodore Helsel, as a member of the Board of the Greater
Johnstown School District violated Section 3(a) by using
public office to obtain a financial gain for himself and
members of his immediate family by supporting or voting for
vendors as to school district contracts in return for gifts
or gratuities.
2. Helsel violated Section 3(b) of the Ethics Act by soliciting
or receiving gifts or gratuities of value from vendors who
held school district contracts based upon the understanding
that his vote, official action or judgment would be
influenced thereby.
3. Helsel violated Section 5(b)(5) of the Ethics act when he
failed to list the gifts or gratuities from vendors who had
contracts with the school district on his calendar year 1986
through 1989 FIS's filed with the Greater Johnstown School
District and his calendar year 1987 through 1989 FIS's filed
with the Johnstown Cambria County Airport Authority.
4. Helsel is directed within 30 days of issuance of this order
to pay a treble penalty in the amount of $12, 308.82 by
forwarding a check to this Commission payable to the order
of the Commonwealth of Pennsylvania for deposit in the state
treasury. Failure to comply will result in the in#iaU,on
of appropriate enforcement action.
5. Helsel is directed within 30 days of issuance of this order
to file amended FIS's for the 1986 through 1989 calendar
years filed with the school district and 1987 through 1989
calendar years filed with the airport authority listing the
names and addresses of all person or firms from whom Helsel
received gifts or gratuities valued in the aggregate of $200
or more and the value of said gifts and the circumstances.
6. As to the violation of Section 3(a), 3(b) and 5(b)(6) of the
Ethics Act, this matter will be referred to the appropriate
law enforcement authority, with a recommendation that a
criminal prosecution be instituted against Helsel.
7. This matter will also be referred to the appropriate law
enforcement authority for review as to whether any
individual may have violated other sections of the Ethics
Law, the Crimes Code or other laws.
BY THE /COMMISSION
H ELENA G. HUGHES, CHAIR