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HomeMy WebLinkAbout751 ShafferIn re: Vernon K. Shaffer STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 : File Docket: 86 -177 -C : Date Decided: June 21, 1990 : Date Mailed: July 9. 1990 Before: Helena G. Hughes, Chair Robert W. Brown, Vice Chair G. Sieber Pancoast Dennis C. Harrington James M. Howley Daneen E. Reese 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 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 52.38. 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 I. Allegation That you, a Berks County Commissioner, violated the following provisions of the Ethics Act (Act 170 .of 1978), when you voted in 1982 to award a $415,000 contract to Boyd Wagner As oci4tes for the design of county tax maps and subsequently, contracting with Wagner to provide pilot services; and, by failing to list income received from Boyd Wagner and Associates 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). 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: (5) The name and address of any person who is the direct or indirect source of income totalling in the aggregate $500 or more. However, this provision shall not be construed to require the divulgence of confidential information protected by statute or existing professional codes of ethics. 65 P.S. §405(b)(5). A. Findinas: 1. You served as a member of the Board of the County Commissioners for Berks County, Pennsylvania. a. You have served in this position from 1964 through December; ` �__.: y.. ,.r.�:e 2. You are also a licensed airplane pilot and provide services as such to various individuals and entities. 3. In 1982, Berks County was attempting to secure services of a/ professional engineering or architectural firm to conduct a county tax mapping project. a. The requested services were of a professional nature and Mr. Vernon R. Shaffer Page 3 therefore, the County Code did not require the formal / solicitation of bids. 4. The County received bids from two firms in relation to the county tax mapping project. 5. Kimball and Associates, consulting engineers and architects, 615 West Highland Avenue, Ebensburg, Pennsylvania submitted a bid to Berks County dated October, 1981. a. This bid was a proposal for photo base mapping for Reading, Berks County, Pennsylvania. b. The amount of the bid submitted by Kimball and Associates was $461,490. 6. A second bid was presented by Frankhouser Jenkins Associates (a member of the Wagner Group), Engineers, Architects, Planners and Surveyors, 607 Washington Street, Reading, Pennsylvania. a. The bid submitted by the Company was in the amount of $415,000. 7. Minutes of the meeting of the Berks County Board of Commissioners of February 2, 1982, reflect that on motion by Mr. Shaffer, seconded by Mr. Bagenstose, it was voted to adopt Resolution 8 -82 (regarding the acceptance of the bid submitted by a Frankhouser Jenkins Associates in relation to the county tax mapping program). The motion passed by a vote of 2 -1 with Mr. Carabello voting no based upon his belief that the contract should be bid. 8. Resolution 8 -82 adopted February 2, 1982 provides that the tax mapping would require, obtaining new photography for more detailed areas and utilization of existing vertical photography where available; analytical aerial - triangulation services; compilation of topographical map manuscripts; and the drafting of final map sheets. a. The ultimate goal of the project was to fix the identification of property lines, roads, center lines, cart ways and identifiable right -of -way, cross country transmission lines, walls and fences. The resolution further provides that the consulting firm of Frankhouser Jenkins and Associates has submitted a bid in an amount of $415,000 for the project to be completed by January, 1984. b. The resolution is signed by Ronald W. Bagenstose, Chai and Vernon K. Shaffer, Commissioner. Mildred Engle, Chief Clerk for the County also signed the agreement. Mr. Vernon K. Shaffer Page 4 9. As a result of the Berks County of Board of Commissioners' / acceptance of the Frankhouser Jenkins Associates proposal, an agreement was entered into on February 2, 1982 for the services to be rendered to Berks County by that entity. a. The agreement was signed on behalf of the County Board of Commissioners by Ronald W. Bagenstose and Vernon Shaffer and approved by the County Solicitor, C. Wilson Austin. b. On behalf of Frankhouser Jenkins Associates, the agreement was signed by Gerald J. Hoyer and Donald C. Burkhardt. 10. Records of the Pennsylvania Department of State, Corporation Bureau, Harrisburg, Pennsylvania indicate that an application for conducting business under a fictitious name was filed by July 6 1981 by B. C. Wagner and Associates, Incorporated. The name under which the business would be conducted was Frankhouser Jenkins Associates, a business involved in surveying, mapping, planning and related business endeavors. a. The above referenced application was signed on behalf of applicant by Boyd C. Wagner. b. On July 19, 1982, a statement of cancellation of cgrpoiate fictitious name registration was filed on behalf of Frankhouser Jenkins Associates. Said records indicate that the reason for the filing of said cancellation was due to the fact that the firm had ceased to do business in Pennsylvania under the fictitious name. This statement was signed by Boyd C. Wagner as President or Vice - President of the firm. 11. Records of the Berks County Office of Treasurer indicate that payments were made to Frankhouser Jenkins Associates by the County in regard to the mapping project from May, 1982 through and including March of 1983. a. From November, 1983 through December, of 1987 when final payment was made by the County, such payments were made to Wagner Associates Incorporated 2t11- Schuylkill- Avenue, Reading, Pennsylvania or Wagner Group Incorporated, Philadelphia, Pennsylvania. 12. Although the Frankhouser Jenkins Associates agreement with Berks County required that the project be completed by, 1984, delays were encountered in the completion of the project and as such, final 'fork was not done until 1987. a. Delays were attributed, at least in part, to the Mr. Vernon K. Shaffer Page 5 Commissioners' desires to pay for this service from current revenues. / 13. Vernon Shaffer provided services as a pilot to Boyd C. Wagner's firm for a six -year period during the late 1970s and early 1980s. a. Many of the flights conducted by Mr. Shaffer were to New England or where Boyd Wagner was performing work. b. Mr. Shaffer was not a full -time employee of the Wagner Group but was used on an as needed basis. c. He was compensated at a flight time rate, a lay -over rate together with expenses which sometimes included an overnight stay. 14. Vernon Shaffer was not the sole pilot utilized by the Wagner Group. a. Boyd C. Wagner utilized the services of approximately five pilots during the same period of time. 15. Mr. Shaffer provided approximately 75 hours of flight time for Mr. Wagner during the course of the above noted * time frame. // a. Services no longer were needed in that Wagner sold his air craft. b. Vernon Shaffer did not provide any pilot services in relation to tax mapping project being conducted by Berks County. 16. Vernon Shaffer provided similar pilot services to other business entities in the Berks County area. 17. The other County Commissioners were aware of Mr. Shaffer's services provided to Boyd Wagner at the time that the contract proposals were being reviewed. 18. Mr. Shaffer asked the County Solicitor, Wilson Austin, for his advice regarding Shaffer's association with Boyd C. Wagner and whether there was a conflict of interest that would prevent him from participating in this matter. 19. County Solicitor C. Wilson Austin provided Shaffer with a verbal opinion that he did not believe there would be any necessity for Shaffer to abstain from voting on the award of the contract to Frankhouser Jenkins Associates which company was owned by Mr. Wagner. In res Vernon K. Shaffer : File Docket: 86 -177 -C . : Date Decided: June 21. 1990 : Date Mailed: July 9, 1990 ORDER No. 751 BY THE COMMISSION, z 1. Shaffer did not violate Section 3(a) of the Ethics Act regarding the voting of a contract to Frankhouser Jenkins Associates since that is not a business with which he is associated. 2. Shaffer did not violate Section 5(b)(5) of the Ethics Act since his Financial Interests Statements list under direct or indirect sources of income, the income he received for pilot /aviation services. LENA G. HUGHES, CHAIR