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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