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HomeMy WebLinkAbout608-R WidmerMr. Joseph H. Widmer c/o Joseph Friedman, Esquire Springer, Bush & Perry Two Gateway Center 15th Floor Pittsburgh, PA 15222 Re: 86 -188 -C Dear Mr. Widmer: STATE ETHICS COMMISSION 308 FINANCE BUILDING daiiBar lilebeatik ObN ORDER NO. 608 -R DATE DECIDED: September 28, 1988 DATE MAILED: October 13, 1988 The State Ethics Commission has received a complaint regarding you and a possible violation of Act 170 of 1978. The Commission has now completed its investigation. The individual allegations, conclusions, and findings on which those conclusions are based are as follows: I. Allegation: That you, Beaver County Commissioner, violated Section 3(a) of the Ethics Act which prohibits a public employee's or public official's use of office or confidential information gained through that office to obtain financial gain and Section 3(b) of the Ethics Act which prohibits a public employee, public official or candidate from offering, soliciting or accepting anything of value based on an understanding that the vote, official action or judgment of the public official, public employee or candidate will be influenced, in that you voted to award consulting engineering contracts to Mazza Engineering Associates, Incorporated, while at the same time your firm, Widmer Engineering, had an on -going business relationship with Mazza, resulting from a sub - contract with Mazza. A. Findings: 1. You were for the years 1984, 1985, 1986 and 1987 an elected member of the Beaver County Board of Commissioners and, as such, you are subject to the provisions of the State Ethics Act. 2. You were elected to the office of County Commissioner and took office officially on January 2, 1984. 3. Widmer and Associates was formed in 1974. a. In 1979, this business was formally incorporated as Widmer Engineering Incorporated. c b. You are preb!_derit of this entity. c. This entity is a:.i engineering and surveying d. Your son David is vice- president of this fir'1:1> e. Col:noration documents indicate that you and your wife are 100% owners by the entireties of this erti,y. Mazza Engineering Associates, Inc., Monaca, Pennsylvania h- been arded various contracts by the Beaver County Board of : <_. ac loners . a. This firm is owned by Eugene Mazza. Both you an.a Mr. Mazza were previously employed 1 . t; chael Baker, Jr., Inc. an engineering firm. Mr. Mazza was formerly a vice - president for ar - '-kIc r engineering firm, Frank Moolin Associates. Eugene Mazza serves as President of Mazza Tngineering. 5. Widmer Engineering, Inc. was involved with Frank Moolin and Associates, Incorporated, on the 40th Street Bridge project. Beaver County Commissioners were bound to follow the procedure -scribed in resolution No. 100181 -15 in the selection and approv.a_. of p; - :ties performing architectural, engineering and land surveying pr-Aessional uervices for the County. Resolution No. 100181 -15 isas enacted by the Beaver County Commissioners on October 1, 1991. The resolution was adopted becaube the County Commissioners deemed it to be in the best interest of the County to procure architectural, engineering and land surveying professional services through an open and publi- process. The resolution provided, in part, as follows: a. SECTION TWO: REQUESTS FOR QUALIFICATIONS AND PERFOR_MANPE DATA The staff engineer of the County Planning Commission, or in his /her absence the Executive Director of the Beaver County Planning Commission, shall annually solicit, by appropriate public notice, statements of qualifications and performance data from persons and firms engaged in the lawful practice of architecture, engineering and land surveying professional services. Mr. Joseph H. Widmer Page 3 The staff engineer shall evaluate current statements of qualifications and performance data on file, together with those that may be submitted by other persons or firms regarding the proposed contract, and shall select therefrom, in order of preference, based upon criteria established and /or published by him, no less than three of the persons or firms deemed to be the most highly qualified to perform the services required. b. SECTION THREE: NEGOTIATION OF CONTRACTS The staff engineer shall negotiate a contract with the highest qualified person or firm to provide the required professional services at a compensation which the staff engineer shall determine to be fair and reasonable to the County. The staff engineer shall submit his recommendations in writing to the Board of Commissioners together with this draft of the contract, specifying the compensation therein to be paid, for such professional services. c. SECTION FOUR: AWARD OF CONTRACTS All contracts for such professional services shall be awarded by Resolution of the Board of County Commissioners adopted at a meeting thereof duly convened pursuant to public notice. The recommendations of the staff engineer, and those recommendations made by the staff engineer with the concurrence of the County Fiscal Affairs Administrator, shall be received by the Board of Commissioners as advisory recommendations to be accorded the greatest weight. The Board of Commissioners, however, shall not be bound by such recommendations. Should the Board of Commissioners determine that the person or firm proposed to provide required professional services is not the highest qualified and /or the compensation proposed to be paid is not fair and reasonable to the County, the Board of Commissioners shall reject the recommendation and refer the matter back to the staff engineer for reevaluation and recommendation. In no case shall the Board of Commissioners award a contract for registered architectural, engineering and land surveying professional services, or incidental services that members of those professions and those in their employ may logically or justifiably perform, except upon the recommendation of the staff engineer. d. In each case in which Beaver County approved a contract for Mazza Engineering Associates, Incorporated, Frank Moolin and Mr. Jos f?pL7. €+.ge 4 Associates, Incorporated, or Michael Baker, Jr., Incorporated, the procedure prescribed by such Resolution was followed Ind the initial recommendation of the staff WF.Ei accepted. 7. The approval of engineering contracts involving the expenditure of Community Development Block Grant funds in addition to the procedure described in Resolution No. 100181 -15, also required that the engineering firm be . selectedby the._ Beaver: County. Community Development Agency and such Agency make a recommendation to the Bocrd of County Commissioners. P. Resolution No. 030482 -3 was enacted by the Beaver County Commissioners on March 4, 1982 as means of adopting procedures to govern the selection of consulting engineers and general administration of engineering contracts for all projects to be reimbursed, in whole or part, by PennDot. The resolution provided in part, as follows: a. Requests for Oualifications and Performance Data The staff engineer shall initially determine the need, any, and the character and quality of consulting engiLLeecs required to be engaged for the PennDot Project. The k f engineer's determination shall be documented in the p_ ct file. b. Qualification Committee A qualification committee consisting of the staff engineers and the Executive Director of the Department shall rev's:. and evaluate current statements of qualifications and performance data on file in the office of the staff engineer, together with those that may be submitted by consulting engineers responding to the aforementioned public solicitation, and shall select therefrom, in order of preference, not more than three persons or firms deeme_, be the most highly qualified to perform the services required for said project. c. Selection Committee A selection committee consisting of the staff engineer and the Board of Commissioners shall review the recommendations of the qualification committee and shall select from am�:.g such recommendations a qualified person or firm to serve as consulting engineer for said project. The recommendatio: of the selection committee, - ogether with the documentation Mr. Joseph H. Widmer Page 5 supporting its selection, shall be forwarded to PennDot for approval. d. Fee Negotiation PennDot will conduct the pre -award evaluation and negotiate the fee for requested consulting engineering services. PennDot shall prepare the contract for required consulting engineering services and obtain its execution. No project work shall be commenced by the consulting engineer until separate authorization to proceed shall be given by PennDot. 9. Records of the Beaver County Board of Commissioners meetings regarding contracts awarded to Frank Moolin & Associates, Inc., or Mazza Engineering Associates, Inc., indicate as follows: a. January 23, 1985 - Resolution No. 012385 -7, a resolution approving an agreement between Beaver County and Frank Moolin & Associates, Inc. to provide engineering services in connection with the street and step improvements in Aliquippa Borough in the amount of $24,197.00. (Unanimously approved.) b. July 23, 1985 - Resolution No. 072385 -5, approving an agreement between Beaver County and Mazza Engineering Associates Inc., to provide for professional engineering services relating to Beaver Falls Parklet Project. Motion by Commissioner LaValle,.second by Commissioner. Widmer. (Motion carried.) c. July 30, 1985 - Resolution No. 073085 -5, approving the transfer of the Aliquippa Street Improvement engineering contract adopted as Resolution No. 012385 -7 from Frank Moolin and Associates, Inc. to Mazza Engineering Associates. (Motion carried.) d. October 15, 1985 - Resolution No. 101585 -1, approving an agreement between Beaver County and Mazza Engineering Associates to provide professional consulting services in connection with the Rochester Central Business District Traffic Engineering Study. (Motion carried). e. December 3, 1985 - Resolution No. 120385 -1, approving an agreement between Beaver County and Mazza Engineering Associates to provide required engineering services on various county owned bridges on a cost not to exceed $130,108.00. (Motion carried). Mz . enh L. . "_.diiinr Page ( f. Jinuary 28, 1986 - 2tlso1ur..Y..on No. 012886 - .,, approving an agreement between Beaver County and ,zza Engineering Associates Inc., to provide fo-- professional engineering services in connection with the City of Beaver Falls Pub ?.L;. Infra Structure Improvement Project at, a cost $16 (Motion carried.) J,_.nuary 28, 1986 - Resolution No. 012886 -3, ap' rovirr agreement between Beaver County and Mazza Engi ;nerinq Associates to provide for professional engineering ccr`ri . in conjunction with Aliquippa Borough Public Infra Stn Improvement Project at a cost of $23,500.00. (Notio: carried.) h. August 12, 1986 - Resolution No. 081286 -15, rpprovinc ar agreement between Beaver County and Mazza Encineerdnc, Associates Inc. to provide required engineering services o.. various county owned bridges at a cost not to exceed $269,370.00. ( Motion - carried with Commissioner LaW11 . voting no on this Resolution.) 10. Records of Widmer Engineering Inc., indicate the following regarding billings to Frank Moolin & Associates Inc., or Mazza Engineering Associates, Inc. g. Date Amount 05/31/85 $13,985.58 06/22/85 $ 1,123.15 08/31/85 $ 1,462.93 09/30/85 $ 7,2 ^0.01 10/28/85 $ 259.53 10/31/85 $ 1,880.83 10/31/85 $ 223.42 10/31/85 $ 1,548.40 02/28/86 $ 1,632.67 03/31/86 $ 847.57 04/30/86 $ 1,229.54 07/31/86 $ 225.68 02/02/87 $ 739.55 Total $32,438.86 11. Final payment to Widmer was made by Mazza on or about March 31, 1q87. 12. Payments were made directly by PennDot to Frank Moolin .ssociates or Mazza Engineering, Inc. Mr. Joseph H. Widmer Page 7 a. Moolin or Mazza thereafter paid Widmer Engineering from their corporate accounts. 13. The project that your firm was involved in with Frank Moolin & Associates, Incorporated and Mazza Engineering and Associates, Incorporated regarding a bridge on 40th Street, Millvale, Allegheny County. a. This project was being initiated by the Pennsylvania Department of Transportation. b. By letter dated August 24, 1984, David Widmer, Vice - President of Widmer Engineering, Inc., submitted a technical proposal to Frank Moolin & Associates, Incorporated regarding this project. c. This letter was addressed to Eugene A. Mazza, Vice- President and you were noted to receive a copy as President of Widmer Engineering. d. By letter dated August. 28, 1984, Eugene Mazza forwarded a technical proposal on behalf of Frank Moolin & Associates, Inc., to PennDot. e. Widmer Engineering was included as a participant in this project. f. Records regarding the project and obtained from Mazza Engineering Associates, indicate that Eugene Mazza was to be the Principal in Charge, and the Frank Moolin firm was to be assisted by Widmer Engineering and Tri -State Design and Development. The proposals submitted by Widmer show that the Widmer fund was to receive about $33,300.00 for their portion of the job, while Tri -State would receive about $34,200.00. The summary of costs submitted by Mazza for Frank Moolin Associates show that the total Project was to take about one year to accomplish and would cost about $200,538. g. 14. In relation to the above project, on January 8, 1985, an agreement was entered into between the Pennsylvania Department of Transportation and Frank Moolin & Associates, Incorporated regarding the rehabilitation of the 40th Street Bridge, Millvale, Pittsburgh, Pennsylvania. a. Widmer Engineering Inc., was not a party to this contract. *i. r° o Jr - .:Amer Page b a. . of. Moolin's propose.l to 3'ennDot provides, in pt.rt, "111 L onies received by the engineer for w: ^rk a:.d furnished by a subcontractor shall be p ..d _t: full_ to that subcontractor within (7) days of payment to 'e 'ngineer by the Department . " c . !Wolin was also required to furnish the Depart met °: :h evidence of payments to subcontractors. 3. R ,ords of Frank Moolin & Associates, Inc., Michael Buxer„ • :r_d Mazza Engineering Associates, Inc., confirm that ?rior .o 1 _ i , the year you became a county commissioner, you had no busi .es dealings with any of these firms. On June 29, 1983, you requested the advice of the Et,ate Et'Acs -, mmission regarding whether the Ethics Act would pace ety : estrictions upon your simultaneous service as a county t.ow.4ssia e-c and a privately employed engineer. You were advised that the State Ethics Act would not prohibit you from securing work from governmwntaI bodies other than the county. b. You were also advised that if your firm does bid can contracts administered under the CDBG Program or if yc:i h d reasonable belief that your firm would bid on such contracts, you would be required to abstain frcl . participating in such matters. c. You were not advised of any further restrictions on your onduct with regard to your participation as a Commissioner ..n matters relating to Beaver County engineering contracts with firms with which Widmer Engineering had previously contracted or reasonably expected in the future to contract. n. On September 8, 1986, you, once again, requested the advice of the State Ethics Commission regarding the following situations: a. Your engineering firm may be asked to perform surveying services by a local attorney. This attorney is also a part -time employee of the District Attorney's Office in ':he county. As a county commissioner, you serve on the county salary board and are, in that capacity, called upon to vote for salary increases for county employees, includint. assistant district attorneys. b. Your engineering firm may apply for a loan or moitg.ge with a local financial institution. You Ldvise that this financial institution may, at some time later, :rr'bmi.': a Mr. Joseph H. Widmer Page 9 proposal to the county seeking to handle one or more of the county's financial accounts. Under normal circumstances, the chief clerk recommends to the board of commissioners which proposal to accept. c. Your firm is asked by another firm to join them in submitting a letter of interest to the Pennsylvania Department of Transportation to perform certain services. At a later date, the lead firm may apply to the county, wherein you serve as commissioner, to perform services for that governmental body. You advise that the county would follow the consultant selection procedure as outlined in county resolutions. You questioned whether you may participate in voting to award the contract to the firm finally selected. d. Your firm may be asked to perform services for an elected office of the same county in which you serve as commissioner. Such service is provided privately and is unrelated to county government. An immediate family member of the elected official is later recommended for contractual, no -bid, work by a county department head. e. Your firm may be asked to perform a service for another engineering firm. This service is unrelated to any county project. Sometime later, this firm is recommended by the selection committee to be awarded a county contract. f. Your firm purchases ad space in a local newspaper. At sometime later, you are asked to approve the placement of a county ad in the same newspaper. You question whether you may vote for the placement of this county related ad in the newspaper that you have utilized in your private capacity. You have requested the advice of the State Ethics Commission in relation to the above issues. (1) The advice did not address questions c and e as such were the subject of the instant investigation. (2) You were advised to abstain from participating in items a, b and d. (3) You were advised that there were no restrictions regarding f. 18. Minutes of the County Board of Commissioners meetings indicate as follows: July 30, 1985 - RESOLUTION NO. 073085 -12 Mr. •J isepr. 'T. 'gage 10 A R"Isolution of the Board of Commissioners of the County of Beaver in the Commonwealth of Pennsylvania authorizing and approving the ubmission of a final statement of community development objectives and projected use of fluids in connection with the grant application in compliance with all understandings and assurances required therefore to the Department of Housing and Urban Development for the funding of the Eleventh Program Year of the Community Development Block Grant Program for the County o" Beaver pursuant to the Federal Housing and Community Development Act of 1974, authorizing and directing James Palmer, Executive Director of the Redevelopment Authority of Beaver County, to act as the official representative of the County of Beaver for said grant application and further directing Director Palmer to provide any such grant application as may be necessary and required, authorizing the transfer of $42c,6u0.00 from reprogrammed funds of prior program years to the Eleventh Program Year of the Community Development Block Grant Program; authorizing the Chairman of the Board of Commissioners for and in behalf of the County of Beaver, to execute six luplicate counterparts of said grant application Land directing the Chief Clerk to attest the due execution thereof and to affix the seal of the County of Beaver thereto, authorizing the proper iiling of said statement. Solicitor Young said he wanted to comment on 7 asolution No. 073085 -12 (Commissioner LaValle arlier in the week had asked Mr. Young for an Jpinion on whether or not Commissioner Widmer would have a conflict of interest if voting for this resolution). Mr. Young said he has reviewed and discussed this issue with James Palmer, Executive Director of the Redevelopment Authority, and that he also reviewed the Ethics Code. He caid it is the opinion of the Law Department that ':here is no problem with Commissioner Widmer voting on this because his firm (Widmer Engineering Inc.) will receive no work. One job (Ramp "G" Bridge Project, Aliquippa) is a PeiinDOT project for which Commissioner Widmer's firm was involved with the design. Widmer Engineering wii.?. be paid by PennDOT for this work, not out of Community Development funds. However, Mr. Young Mr. Joseph H. Widmer Page 11 explained that this particular project has been deleted from the program until the Department of Housing and Urban Development can make a ruling to add it back in. Commissioner Lavalle said that he would like to have a vote taken on Resolution Nos. 073085 -11 and 073085 -12, separately. Motion Commissioner LaValle, second by 'Commissioner Javens to approve Resolution Nos. 073085 -1 through 073085 -10, as presented. Motion carried. 19. By letter dated October 31, 1986, the United States Department of Housing and Urban Development, applying a standard other than that in the State Ethics Act, advised you that you voted as a county commissioner to award contracts to Mazza Engineering Associates or Frank Moolin & Associates utilizing Community Development Block Grant funds appeared to constitute a conflict of interest in violation of Federal regulations. Such letter requested further information from Joseph Widmer to make a determination of a conflict of interest. a. The United States Department of Housing and Urban Development ultimately made no finding that an ethical violation had occurred or that federal regulations were violated which required a sanction of any sort. 20. Eugene Mazza, President of Mazza Engineering Associates provided the following information in relation to the instant matter: a. From 1965 through 1969, he worked for Baker Engineers with you. b. Mazza Engineering Associates was incorporated in 1982. c. The 40th Street Bridge Project was instituted as a Frank Moolin Project. During the project, Mazza was formed and continued the Project. d. Mr. Widmer never approached Mr. Mazza seeking more money in . relation to this project. e. The original payment to the Widener firm for this project was approximately $33,000.00. f. He never had any meetings or lunches with Mr. Widmer. Mr. JL. h H. idm.>r Page 1', 21. David Widmer, Vice- President of Widmer Engineering Inc., rovided the following information relating to the instant situation: He is solely responsible for operating 'Widmer Engineering during 1984 -1987. Q. 100% of the firm's stock is owned by Joseph Widmc: ra.c1 Aloha Widmer. c. Your wife was placed on the payrc.11 in 1984 as that f_?__..n's bookkeeper. d. You received no salary from the firm in 1985. 2-. You provided the following information relating to t1 inFtan+- situation: a. Ycur firm learned of the 40th Street Bridge Pro ect`through an employee of the firm. b. Widmer Engineering was called a sub - contractor for the 40{-h Street Bridge Project, but you viewed it as a joint ,enture. c. The project is awarded by PennDOT to the lowest bidder based upon the submission of cost proposals. d. You and your son David met with Mr. Mazza regarding the. payment to your firm for work completed on this projec , e. Mazza owed Widmer payment for this project and this meeting was held in order to insure that payment was tendered. f. This meeting was held sometime in 1985 after Widmer had completed its work. g. You stated that you were not working for Mazza even though the invoices from your firm were directed to Mazza Engineering Associates. h. Ycu did not work for Mazza Engineering Associates, ?rior to being elected as Commissioner, since Mazza was not engaged at that time in engineering practice. i. You could not recall if you performed work for Baker Engineers prior to being elected. j . `'ou turned operation of the firm over_ to your son, Davicl, in 1984, although you are still owner and President thereof. Mr. Joseph H. Widmer Page 13 k. In 1984, you had a declining salary from Widmer Engineering. In 1985, your salary was cut entirely. 1. You wife went on the Widmer Engineering payroll in September, 1984. She went to work full -time for the firm doing accounting, payroll and bill paying. 23. Statements of Financial Interests for 1985, (filed March 26, 1985) regarding your interests for 1984 and for 1986(filed April 17, 1986) for 1985 indicate that Widmer Engineering Inc., was a source of income in excess of $500. a. There is no listing in the category "office" or "directorship" in any business. b. Widmer Engineering is not indicated as a business in which you have a financial interest. 24. Your Statement of Financial Interests for 1987 (filed February 13, 1987) regarding your interests for 1986 indicate Widmer Engineering Inc., as a source of income in excess of $500. a. You also list Widmer Engineering as a business in which you have a financial interest and in which you are Vice - President. 25. Michael Baker, Jr. Inc., is an engineering firm that has been awarded various contracts by the Beaver County Board of Commissioners. a. You, at one time, were an employee of this company. b. Your firm, Widmer Engineering, Inc., has served as a compensated sub - contractor to Michael Baker, Jr., Inc. 26. Records of the Beaver County Board of Commissioners meetings regarding contracts awarded to Michael Baker, Jr., Inc. indicate as follows. a. April 17, 1984 - Resolution No. 041784 -1, approving an agreement between Beaver County and Michael Baker, Jr.,Inc. to provide engineering services to the county regarding street and storm drainage improvements in White Township. (Unanimously approved.) b. July 3, 1984 - Resolution No. 070384 -1, approving an agreement between Beaver County and Michael Baker, Jr., Inc. to provide engineering services regarding street and Mr. Joseph H. Widmer. age 4 sidewalk improvements in IkA d?.an_d Borough. (Unanimously approved.) c December 11, 1984 - Resolu 121184-3, authorizing the- county engineer to negotiate contracts with Michael Baker, Jr., Inc., and Frank Mooli,n & Associates, Inc. regarding bridge inspections, rehabilitation or replacement. (Motion approved.) d. January 23, 1985 - Resolution No 012385 -12, approving a-. agreement between Beaver County and Michael Baker, Jr., ncc. to provide engineering services in connection with Public Infrastructure Improvements in Koppel Borough in the amour. of $11,146.00. (Unanimously approved.) e. February 26, 1985 - Resolution No. 022685 -2, approving an agreement between Beaver County and Michael Baker, Jr., Inc to provide required professional engineering services :- egarding the Vance Way Retaining Wall Project in Industry Borough at a cost of $6,600.00. (Unanimously approved.) July 9, 1985 - Resolution No. 070985 -2, approving an agreement between Beaver County and Michael Baker, Jr., Inc. to provide required engineering services in connection with the Georgetown Lane Guardrail Project,in Van Port Township. (Motion carried.) g. July 23, 1985 - Resolution No. 072385 -7, approving an amendment to the engineering agreement between Beaver County and Michael Baker, Jr., 'Inc. regarding the Vance Way Retaining Wall Project to address the emergency conditions existing at the project site. Motion by Commissioner LaValla to approve, second by Corrniissioner Widmer. '(Motion carried.) h. January 7, )986 Resolution No. 010786 -5, approving an agreement between Beaver County and Michael Baker, Jr., Engineering Inc. to provide required engineering services on various county owned bridges at a cost not to exceed $158,420.66. (Motion carried.) i. January 28, 1906 - Resolution No. 012886 -1, approving a:.. agreement between Beaver County and Michael Baker, Jr., Inc. to provide for required professional engineering services in connection with White Township and Beaver Falls 22nd Street and 10th Avenue reconstruction project at a cost of $10,900.00. (Motion carried.) q. Mr. Joseph H. Widmer Page 15 j February 11, 1986 - Resolution No. 021186 -4, approving an agreement between Beaver County and Michael Baker, Jr., Inc. to provide required professional engineering services regarding Midland Borough Public Infrastructure Improvement Project at a cost of $34,950.00. (Motion carried.) k. February 25, 1986 - Resolution No. 022586 -6, approving an agreement between Beaver County and Michael Baker, Jr., Engineering Inc., to provide for required professional engineering services regarding the Patterson Township -Ross Hill Improvements Project at a cost of $8,475.00. (Motion carried.) 1. March 25, 1986 - Resolution No. 032586 -3, approving an agreement between Beaver County and Michael Baker, Jr., Engineering Inc., to provide professional engineering services regarding the Hopewell Township Industrial Park. Phase I Infrastructure Improvements Project at a cost of $68,450.00. (Motion carried.) m. May 13, 1986 - Resolution No. 051386 -1, approving an agreement between Beaver County and Michael Baker, Jr., Inc. to provide for engineering services on various county owned bridges at a cost not to exceed $73,698.52. (Motion carried.) n. July 1, 1986 - Resolution No. 070186 -7, approving an agreement between Beaver County and Michael Baker, Jr., Engineering Inc., providing for the furnishing of enumerated engineering services in connection with the preparation of the Airport Master Plan Update for future improvements at the Beaver County Airport at a cost of $50,000.00. (Motion carried.) o. August 12, 1986- Resolution No. 081286 -16, approving an agreement between Beaver County and Michael Baker, Jr., Inc. to provide for required engineering services on various county owned bridges at a cost not to exceed $75,679.55. (Motion carried.) p. September 9, 1986 - Resolution No. 090986 -12, approving the Supplemental Engineering Agreement No. 1 between Beaver County and Michael Baker, Jr., Inc., in connection with the Phase I Hopewell Industrial Park Project at a cost not to exceed $27,324.88. (Motion carried.) December 16, 1986 - Resolution No. 121686 -3, approving certain amendments to engineering agreements between Beaver County and Michael Baker, Jr., Inc. regarding the Airport T . ... } age ".. Master Plan Update and the Beaver County Airport Improvements Project. Resolution makes additions to scope of work and reducing tc al cost of project from $50,0)0.0f to $49,500.00. (Motion carried.) January 27, 1987- Resolution No. 012787 -1, approving an agreement between Beaver County and Michael Baker, Jr., Inc. to provide for professional engineering services in connection with the Koppel Borough Water Line Extension Project at a cost of $5,850.00. (Motion carried..) You were not present at this meeting. L. February 10, 1987 - Resolution No. 021087 -5, approving the agreement between Beaver County and Michael Baker, Jr., Inc., regarding professional engineering services in Whit(. Township, 22nd Avenue Reconstruction Project at a cost of $7,500.00. Commissioner Widmer said that he woulc' abstain from voting on this Resolution because Widmer "Engineering will purchase photogrammetric services from Michael Baker, Jr., if they are awarded certain projects. (Motion carzi , 4d. Widme :: abstaining.) t. March 24, 1987 - Resolution No. 032487 -6, approving Supplemental Agreement No. 1 to the contract between Beaver County and Michael Baker, Jr., Inc. regarding Midland ?arklets and Sidewalk Designs. Increasing cost of c' -c ay $1,475.00. (Motion carried). Commissioner Widmer abstained from voting because he indicated that Widmer Engineering may be purchasing photogrammetric services from Michael Baker, Jr., Inc. u. April 21, 1987 - Resolution No. 042187 -1, approving s.r . agreement between Beaver County and Michael Baker, Jr. Inc., to provide professional engineering services regarding Hopewell Township Industrial Park Subeivisior:.. easements and Right -of -Way Plan Project at a cost of $7,980.00. (Motion carried). 27. Records of Baker Engineers indicate the following payments by Michael Baker, Jr., Inc., to Widmer Engineering Inc., 903 Eighth Avenue, Beaver Falls, Pennsylvania for services rendered: Check No. Date Amount 034978 10/28/85 $10,015.75 015557 10/28/86 $19,155.00 045997 12/01/86 $ 510.00 045191 12/08/86 $ 180.00 Mr. Joseph H. Widmer Page 17 045591 11/17/86 $10,515.00 046695 12/23/86 $ 3,300.00 047185 01/12/87 $ 7,740.00 047762 01/29/87 $ 5,385.00 048597 02/26/87 $11,845.00 048958 03/09/87 $ 480.00 050006 04/09/87 S 1,080.00 Total $70,205.75 28. Records of Baker Engineers indicate that the following invoices were received from Widmer Engineering Inc., for services rendered: Invoice No. Date Amount 508125 08/05/85 $10,015.75 609190 09/22/86 $21,075.00 608658 09/22/86 $20,325.00 6113339 12/03/86 $ 6,945.00 612364 12/31/86 $11,845.00 Total $70,205.75 29. Records of Baker Engineers indicate that the above payments were made to Widmer Engineering, Inc., for services rendered as follows: Client Proiect N. Sewickley Twp. Authority Well Drilling N. Sewickley Twp. Supervisors Freedom Park Avenue Tasso Katsela Photo Mapping Surveys/ Southern Expressway Patterson Township Sewer System Extension AT &T Washington D.C. - Parksburg KKFS Inc. Delaware RT3 Corridor Office of Surface Mining Casoni Acid Drainage Pennzoil Industry Borough - Sub- Division AT &T Mt. Storm, West VA Army Eng. District /Detroit (Not Specified) ::Ir. Josep' c':ar age') 11 + • Department of Labor & in'ustry, Office of Employment Security, :')aarte.:rly Wage Reports (form UC -2A) for Widmer Engineering disclosed `Zat in the first quarter of 1985 you pad $4,200. a. Your wife, Aloha Widmer, was paid $3,000 in the first uarter and $3,000 in the fourth quarter. Quarterly Wage Reports (form UC -2A) for Widmer Engineering f : End 1987 disclosed that your wife was paid as follows: 1986: 0 - 1st Quarter $10,500.00 - 2nd Quarter 9,000.00 - 3rd Quarter 9,000.00 - 4th Quarter $28,500.00 Total 1986 b. 1987: $9,000.00 - 1st Quarter 32. In 1986, Aloha Widmer was paid at a higher rate than any rtY :. employee of Widmer Engineering during the second, third and four {: quarters, although she received no salary during the first quarte:- of 1986. B. Discussion: As a Beaver County Commissioner, you are a public' official as that term is defined under the Ethics Act. 65 P.S. x::02; 51 Pa. Code §1.1; Huff, Opinion 84 -015. Accordingly, your conduct must conform to the requirements of the Ethics Act and the .,strictions therein apply to you. 'ction 3(a) of the Ethics Act provides: 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 3(a) of the Ethics Act quoted above specifically provides, in part, that a public official may not use public office to obtain a financial gain other than compensation provided for by law for himself or a business with which he is associated. It is further provided in Section 3(b) of the Ethics Act: Section J. Restricted activities. Mr. Joseph H. Widmer Page 19 (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. §403(b). Section 3(b) basically provides that no public official /employee shall accept something of value based upon the understanding that his vote or official action will be influenced thereby. In reviewing this matter, this Commission must be guided by its opinion in Sowers, Opinion 80 -050. There, this Commission opined that a public official /employee must refrain from participation in projects or proposals from private business interests when the project or proposal is subject to the public employee's /official's review when either of two situations occur. 1. The official /employee seeks or can legitimately anticipate performing services for that business entity. 2. The official /employee has obtained work from that business entity and subsequently is asked to vote on matters relating to said entity which arose after the official /employee obtained the work services from that entity. In the instant situation, the records of the Beaver County Board of Commissioners indicate that you voted on numerous occasions to approve either the agreements between the county and Mazza Engineering Associates or the transfer of an existing contract from Frank Moolin & Associates to Mazza Engineering Associates. You and Mr. Mazza were previously employed by Michael Baker, Jr., Inc., an engineering firm which was also awarded extensive contracts from the county. You, through your firm Widener Engineering Inc., received subcontracting work from Mazza. Widmer Engineering, Inc., is a business with which you are associated. ''Business with which he is associated" is defined under the Ethics Act as follows. Section 2. Definitions. "Business with which he is associated." Any business in which the person or a member of the persons immediate family is a director, officer, owner, employee or holder of stock. 65 P.S. §402. ! T Wi n .r age /:; Since you are president and owner o Widmei Engineering, Inc., you are associated with that firm as that term is defined in Section 3(, - ) of the Ethics Act. However, you are neither associated wath F-:ank Moolin and Associates nor Mazza Engineering Associates as the term "business with which he is associated" is defined under t Ethics Act. In this case, you voted to award contracts to Mazza while at the same time you sought or anticipated performing services for him through a subcontract regarding the 40th Street Bridge Project in :Aillvale. You had no business dealings with Mazza prior to your election in 1984. The subcontract work came about only after youi election and your participation in awarding contracts to Mazza. It should be noted, that while you assert that the PennDot Project wr;s a joint venture, it appears that you were, in fact, a subcontractor Mazza. It is also noted that the Beaver County Commissioners, on Octob€.a 1, 1981, passed Resolution 100181 -15 which specifically provided review procedure whereby the staff engineer would review and selct, for recommendation purposes, firms which he deemed to be most qualified. Although the Board of Commissioners was not bound by the recommendation of the staff engineer, it is noted that this recommendation was accepted as to the contracts for Mazza Engineering :associates, Incorporated, as well as for Frank Moolin and Assocj,tcr Incorporated and Michael Baker, Jr., Incorporated. Furthermore, it is noted that the General Counsel of this Commission issued an advice to you on July 28, 1983 wherein it was indicated that you should not participate in matters involving t.1. ,pplicat.on of county funds including block grants in situations ..7:5er you had e reasonable belief that your firm would be interested in ouc'., matters. You were clearly alerted as to the provisions of the State Et' Act as early as 1983 and the prohibitions that would be pl& ec upon you in situations similar to the instant matter. Neverthele,s, s-on voted on matters involving the awarding of contracts to Mazza for waich you were performing subcontracting work. It is also noted that HUD advised you by letter of October 31, 1986 that you had a conflict of interest in violation of federal regulations as to your voting as cct'nty commissioner to award contracts to Mazza involving community development block grant funds. HUD later made a finding that no ethica'. violation occurred and no federal regulations were violated which required sanctions. Turning to your financial interests statements, you have been inconsistent in listing your interest in Widmer Engineering Inc., in that your Statements of Financial Interests for the calendar years 1985 and 1986 do not indicate that you have a financial interest in Mr. Joseph H. Widmer Page 21 your firm while your Statement of Financial Interests, for the calendar year 1986, reflects that you do have a financial interest-. As to the matter of the salaries paid by Widmer Engineering, it is noted that after you disassociated yourself as an employee of the firm, your wife assumed a compensated position in your place. Your wife, "a member of your immediate family" was an employee of that entity and, thus, you continued to be associated with the business. Immediately after you "terminated" your compensated status with the company, your wife assumed a salaried position. In fact, records reflect that she became the highest paid employee of the corporation making more than your son, who allegedly was running the business. Lastly, while such was not part of the original allegation in this matter and while no conclusion in relation thereto is reached, you consistently voted to award county contracts to Michael Baker, Jr., Inc., while at the same time your company was receiving subcontracting work from that company. You had no work with this company prior to your election to office and the awarding of contracts to that company. This Commission, during the course of these proceedings, has received conflicting evidence and statements. These conflicting ' tatements have created a number of questions which cannot be further developed through the current proceedings. Thus, while this Commission does not specifically determine that the Act has been violated, this Commission believes that substantial questions have been raised which should be further reviewed by an appropriate authority in the Commonwealth of Pennsylvania. As such, this Commission believes that the matter should be referred to appropriate law enforcement authorities for their review and disposition as they deem appropriate. Although no affirmative disposition of the above allegation was able to be reached, this Commission must express serious concern about your voting on the award of contracts to engineering firms which thereafter supplied your firm with subcontract work, especially when there was no prior history of contractual relations between your firm and those engineering firms before you were elected. The fact that the foregoing voting pattern to award contracts with the resultant subcontract work to your firm coincided with the superficial distancing of yourself from your company via the substitution of your wife with the firms, leads this Commission to believe that your actions violated the spirit of the Ethics Act, regardless of whether your actions did or did not constitute a violation of Sections 3(a) and 3(b). II. Allegation: That you, a Commissioner in Beaver County, violated Section 3(a) of the Ethics Act which prohibits a public official's use ,ep ; . - .fie ? of office, or confidential information gained through that office to reali ?e financial gain, other than compensation allowed by law for himself, a member of his immediate family or a business with which he is associated, when you acted to approve the use of county land and financing for the construction of a Red Cross building, when your pri engineering firm, Widmer Engineering Incorporated, was paid to perform engineering work in connection with this project. Findings of Fact as to Allegation II A. Findings: 1 - 32 are incorporated herein by reference. 33. On July 29, 1983, representatives of the Beaver County C1apt'. n. , the ARC corresponded with the county commissioners and requested tat the county convey certain real estate to ARC to house an ARC Chapter and Blood Center. 34. On December 20, 1983, the Beaver County engineer transmitted tc6 ARC the final drawings of the property proposal to be transferred by the county. 35. Minutes of the County Board of Commissioners meeting of January 1� 1984, indicate that the ARC land request was reviewed by the wunty engineer who prepared a land description. The matter was referred to the county solicitor for review and recommendation. 35. On or about January 13, 1984, the Michael Baker, Jr., Engineering firm was verbally contacted by Mr. Joseph Twombley, Manager, Beaver County Branch, ARC, who requested that the Baker firm g,_epare an engineering survey of the property the ARC was seeking from the county. That survey was completed on or about March 21, 1984. Mr. Twombley told the Baker representative that the survey was requested by the Beaver County Commissioners, of which you were one. 37. According to a letter, dated April 26, 1984, on that date, David H. Widmer, your son, vice- president and general manager, Widmer Engineering, Inc., wrote to Mike Siekkinen, c/o Turner Construction, 601 Grant Street, Pittsburgh, PA 15219, confirming a conversation wherein it was agreed that Widmer Engineering Inc., would prepare a topographic survey of the proposed site for the ARC building. It was agreed that the fee for this service was to be $1,400.00. 38. According to a copy of a blueprint obtained from the Beaver County Planning office, Widmer Engineering Inc., completed the Topographic Survey for Turner Construction Co., on or about May 1y84, utilizing the survey previously completed by the Michael. Baker, Jr,, Engineering firm for the purpose of establishing the boundaries of the topographic survey. Mr. Joseph H. Widmer Page 23 39. On June 29, 1984, a public hearing was held by the Beaver County Industrial Development Authority regarding the issuance of an Industrial Development note for use of ARC. a. The project entailed construction of new headquarters and a Blood Service Center. b. The amount of the note was to be $1,000,000.00. c. You were advised of this hearing 1984, wherein it was recommended commissioner approve the Project. 40. According to the records on file at the Beaver County Municipal Building, Resolution Number 070383 -14, was unanimously approved by the County Commissioner on July 3, 1984, to approve a loan in the amount of $1,000,000.00 to ARC by the Beaver County Industrial Development Authority. You were a county commissioner at the time and voted for the approval of this resolution. 41. According to a letter, date of July 17, 1984, written by John T. Radelet, Vice - President, IKM /SGE was desirous of retaining Widmer Engineering as Site Consulting Engineer for the project and requested a proposal from the Widmer firm. 42. In a letter, date of July 20, 1984, Mr. Vincent R. Borelli, P.E., Widmer Engineering Inc., wrote to John Radelet, IKM /SGE, informing that Widmer was interested in the project and would undertake the project for a lump sum fee of $5,500.00. 43. On August 30, -1984, Mr. Borelli again wrote to Mr. Radelet advising him that Widmer Engineering was revising their proposal downward to a new figure of $5,175.00 for the project. 44. By letter dated August 24,198 John Grant staff engineer for Beaver County advised Vincent Borelli of Widmer Engineering Inc., that the firms storm water drainage design for the ARC project had been approved. by memo dated June 29, that the county a. A copy of this letter was mailed cc: J. Widmer, Chairman. 45. According to records on file with the Beaver County Clerk's office, on October 16, 1984, Resolution Number 101684 -8, was unanimously approved by the County Commissioner. The Resolution provided.for the leasing of certain County -owned land for construction of a building to be used as a chapter and blood center building by the ARC. Said lease was to be for a term of 99 year and was to cost the ARC $1.00 per year for the term of the lease. You voted for the lease and were a signator thereon. ,ioseph n. V id'... w Tege 24 46. On October 31, 1984, Witmer Engineering Inc., invoice no. 410197 regarding the ARC project. a. The invoice indicated a prior payment of balance of $2,825.00 for a total cost of forwarded IKM /;GE $2,350.00 all a $5,175.30. 47. Invoice number 411202, date of November 14, 1984, was submitted by Widmer Engineering, Inc., to Turner Construction Company, for sita surveying to establish column lines and elevations at various poiZt' The fee for this service was $200.00. 48. The records on file at the County Clerk's office, Beaver. County, show that on December 4, 1984, you and Commissioner LaValle and Javens, executed a memorandum of Lease which was signed by you and the other commissioner for filing with the Recorder of Deeds. 49. On May 6, 1985, Widmer Engineering, Inc., submitted Invoice No. 51,5062, to Turner Construction, for parking lot construction stakeout at the ARC site, the fee for which was $450.00. 5l. You stated that you were aware that the ARC project had been under negotiation prior to your taking office. B. Discussion: As previously noted, you are a public official subject to the provisions of the Ethics Act. Section 3(a) of the Ethics Act specifically provides that a public official shall not use his public office or confidential information to obtain a financial gain for himself or a.business w';. which he is associated other than compensation provided for by law. In the instant matter, the ARC requested the county to convey rea:Lty for an ARC Center. Thereafter, ARC contacted the engineering firm o` Michael Baker, Jr., for an engineering survey which was requested by the commissioners including yourself. Your firm shortly thereafter completed a topographic survey of the proposed site of the ARC building which utilized the survey completed by the Michael Baker, Jr., Engineering firm. Your business received a fee of $1,400.00 for that work. It is also noted that you, as county commissioner, approved a $1 million loan to ARC through the Beaver County Industrial Development Authority. Approximately two weeks later, the vice - president of IKM /SGE indicated a desire for retaining your firm as a site consulting engineer. Your firm then responded that it would undertake the project for a sum of $5,500.00 which was later revised to $5,175.00. It is also noted, that the storm water drainage design for the ARC project which was handled by your firm received county Mr. Joseph H. Widmer Page 25 approval. Lastly, it is noted that your firm submitted two invoices in 1984 and 1985 to Turner Construction regarding the ARC project. In applying the provisions of Section 3(a) of the Ethics Act to the above facts, you did use public office as a county commissioner to approve the leasing of the county land to ARC and also the financing for the construction of the ARC building. However, under the criteria of Sowers, supra, the evidence does not establish that you could anticipate or foresee that the foregoing action would result in contracts being awarded to your firm, Widmer Engineering from Turner Construction Company or from IKM /SGE. Therefore, the evidence does not establish that you violated the Ethics Act as to this particular allegation. _ C. Conclusion and Order: 1. As a Beaver County Commissioner, you are a public official subject to the provisions of the Ethics Act. 2. As to the first allegation, because of the substantial questions and conflicting evidence that has been developed in the instant matter, this Commission believes that this situation should be further reviewed by appropriate law enforcement authorities for appropriate disposition in accordance with their discretion. While this Commission has not made an affirmative disposition as to whether your conduct violated the provisions of the State Ethics Act, this Commission believes that the questions involved herein, as established by the facts, warrant further review and therefore, recommends a further investigation by the appropriate law enforcement authority. 3. The evidence does not establish you violated Section 3(a) of the Ethics Act when you voted to approve a lease of county land and the financing for construction of a Red Cross building when the business with which you are associated, Widmer Engineering Incorporated, subsequently received engineering work from other firms connected with the project. Our files in this case will remain confidential in accordance with Section 8(a) of the Ethics Act, 65 P.S. §408(a). However, this Order is final and will be made available as a public document 5 business days after service (defined as mailing). - I. Jo: eph L. 7idmer ge f;6 "ny person who violates the confidentiality of a Commission 2L2oceeding is guilty of a misdemeanor and shall be fined not more than . *.1,000 or imprisoned for not more than one year or both, see P.S. 5409(e). The confidentiality provision does not restrict respondents consultation with legal counsel. By the Commission, Joseph W. Marshall, III Chairman