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HomeMy WebLinkAbout725 ZadloMr. Joseph A. Zadlo c/o Harvey A. Sernovitz, Esquire 24th Floor Packard Building 111 South 15th Street Philadelphia, PA 19102 Re: 87 -117 -C Dear Mr. Zadlo: STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 ORDER OF TICE COMMISSION Order No. 725 Before: Helena G. Hughes, Chair Robert W. Brown, Vice Chair W. Thomas Andrews G. Sieber Pancoast James M. Howley Michael J. Washo Date Decided: September 26, 1989 Date Mailed: September 28, 1989 The State Ethics Commission received a complaint regarding you and a possible violation of the State Ethics Act, No. 170 of 1978, 65 P.S. 401 et. seq. You were notified in writing as to the commencement of the investigation and as to the specific allegation(s). The investigation has now been completed and a Findings Report was issued to you which constituted the Complaint by the Investigation Division of the State Ethics Commission. An Answer was filed and a hearing was waived. The record is now completed. This Order of the Commission is hereby issued which sets forth the individual allegations, findings, discussion and conclusion as follows: I. Alleaation: That you, Assistant Building Inspector for Marlborough Township, Montgomery County, violated the following provisions of the State Ethics Act (Act 170 of 1978), when you were awarded an architect contract for design of plans for a municipal building addition without an open and public process: ,Section 3(c) of the Ethics Act provides: (c) No public official or public employee or a member of his immediate family or any business in Mr. Joseph A. Zadlo Page 2 which the person or a member of the person's immediate family is a director, officer, owner or holder of stock exceeding 5% of the equity at fair market value of the business shall enter into any contract valued at $500 or more with a governmental body unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. Any contract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of making of the contract. 65 P.S. §403(c). A. Findings: 1. You performed consulting services, of a specialized professional nature, from time to time on behalf of Marlborough Township between approximately October 1983 and July 1984. a. In September 1983, the Township was having a problem on Route 29 and its regular building inspector could not handle that problem. b. The township supervisors requested your services in connection with that problem as a result of his expertise and knowledge of building codes and experience in performing such services for other municipalities. 2. Minutes of the_ Marlborough Township Board of Supervisors' meeting for September 26, 1983, contained the following information: Appointment: Mr. Joseph A. Zadlo, Engineer for Chambers Associates, discussed his findings in our building code which would pertain to citing buildings at P.V.P.S. Lengthy discussion with the solicitor, Supervisors and Mr. Zadlo on procedures, legal obligations, due process and other items pertaining to subject along with time period involved. Mr. Simon suggested the first step is to appoint Mr. Joseph A. Zadlo to a position and have him sworn in. On motion duly made and seconded to appoint Mr. Joseph A. Zadlo to the position of assistant deputy building inspector for Marlborough Township carried unanimously. 3. Chambers Associates, Incorporated, 831 DeKaib Pike, Center Square, Pennsylvania is a consulting engineer and surveying firm. Mr. Joseph A. Zadlo Page 3 a. You were associated with this firm as a consultant working on special projects as needed. b. Chambers Associates has served as Marlborough Township Engineers. c. You are not an engineer and have never held yourself out to be an engineer. d. You services in connection with this project were re dared to Chambers Associates, a licensed engineer for the Township, on a consulting basis. Your services were billed to Chambers Associates and were paid by Chambers Associates, on an hourly basis. g. a. e. You received no compensation directly from Marlborough Township for these services. f. In anticipation of the need to have you testify in court in connection with this project, you were assigned the title of "Assistant Deputy Building Inspector." No such position or title had previously existed in the Township. You had no duties, responsibilities, authority or function except with regard to this special project. 4. You performed no services for the township, with the exception of the professional services in connection with the new administration and police facility, between July 1984 and August 1987. 5. You are a Licensed Architect in the Commonwealth of Pennsylvania operating under the title of Joseph A. Zadlo /Architect, 107 Old Oak Tree Road, Lansdale, Pennsylvania, 19446. 6. During 1985, the Township Supervisors were contemplating the construction of a new Police and Administration Facilities Building. At the request of the Supervisors, you prepared rough sketches of the proposed facility. 7. You, in 1986, were appointed to be the architect for the new facility. Your services as architect were not solicited through a public bid process because contracts involving personal or professional services are specifically exempted from the contracting procedures set forth in the Second Class Township Code. Mr. Joseph A. Zadlo Page 4 8. John Chambers advised that the Marlborough Township Supervisors initially approached him to do the design work for a new Police and Administration Facilities Building, but he referred them to you. Building design work was beyond the purview of his professional expertise and was not covered by his liability insurance. 9. Records of Marlborough Township contain a description of the new Marlborough Township Municipal Building. This descriptive analysis, in part, provides as follows: a. In 1985, the Marlborough Board of Supervisors purchased 11.2 acres of property adjoining the maintenance building for $35,000. You, architect, created plans for the new building which were submitted to the State Authorities. Approval was received in July, 1986. Contracts were drawn and the bidding process completed in time for a September, 1986 ground breaking. 10. The contract for the construction of the Police and Administration Facilities Building contains the following information: a. Date: December 15, 1986. b. Owner: Marlborough Township. c. Project: New addition, Police and Administration Facilities. e. Architect: Joseph A. Zadlo, 107 Old Oak Tree Road, Lansdale, Pennsylvania, 19446. 11. Your bills for architectural services were submitted on a periodic basis, generally monthly. The Township Supervisors have stated that your bills were reasonable and customary for like professional services. 12. During the period when you were rendering architectural services to the township in connection with the new police and administration facility from approximately August 1986 through July 1987, you had no other relationship with Marlborough Township, rendered no other services of any nature to the township, nor received any compensation from the township directly or indirectly. 13. Invoices from Joseph A. Zadlo, Architect, 107 Old Oak Tree Road, Lansdale, Pennsylvania to Marlborough Township regarding services rendered in relation to the new Administration and Police Facilities Building indicate that the township was billed as follows: Mr. Joseph A. Sadie Page 5 Invoice Date August 19, 1986 October 8, 1986 December 12, 1986 February 4, 1987 March 16, 1987 April 8, 1987 May 6, 1987 July 7, 1987 Amount Comment $9,386.00 $2,465.17 $1,891.24 $2,128.75 $ 960.69 Principal's time, support time, state fee, travel and printing expenses. Principal's time, support time, field construction, printing /reproduction expenses. Principal's time, support time, field construction, printing /reproduction expenses. Principal's time, support time, field construction. Principal's time, field construction, printing reproduction expenses. $ 958.58 Principal's time, field construction, printing reproduction expenses. $ 567.50 Principal's time, field construction. $ 515.94 Principal's time, field construction, reproduction /printing expenses. Total: $18,873.87 14. Minutes of the Marlborough Township Board of Supervisors' meetings indicate approval of the following expenditures to you for the construction project: Expenditure Number Date Amount 3133 09/09/86 $9,386.00 3199 11/10/86 $2,465.17 3273 12/08/86 $1,891.24 Mr. Joseph A. Zadlo Page 6 Expenditure Number Date Amount 3360 02/09/87 $2,128.75 3429 04/13/87 $ 960.69 3484 05/11/87 $ 958.58 3532 06/08/87 $ 567.50 3627 07/13/87 $ 515.94 Total: $18,873.87 a. You admit receipt of payments from the Marlborough Township Board of Supervisors in the amounts as outlined above. 15. In approximately August 1987, your professional consulting services were again requested by the township in connection with a special project. From August 1987 through approximately June of 1988, you rendered professional consulting services to the township totaling approximately twenty hours for the entire project. The rendering of these services was at the specific request of the Supervisors and was not pursuant to any appointment or employment relationship. 16. You have never been an employee or public official of Marlborough Township. 17. You have never been an officer, director, owner or holder of stock in Chambers Associates, Incorporated, nor has any member of your immediate family. 18. You have never been an officer, director, owner or holder of stock in the business of Frank Zadlo, nor has any member of your immediate family. B. Discussion: The allegation in this case relates to whether you, as a Deputy Building Inspector, violated Section 3(c) of the Ethics Act quoted above regarding the award of an architectural contract for the design of plans for the municipal building addition without an open and public process. The township was desirous of constructing a new Police and Administration Facilities Building. John Chambers was initially approached for the design work but he declined because the project Mr. Joseph A. Zadlo Page 7 was beyond the purview of his professional expertise and he was not covered by liability insurance. At the request of the supervisors, you prepared a rough sketch for the proposed facility since you are a licensed architect. In 1986, you were appointed architect for the new facility. You prepared plans which were submitted to the Commonwealth and approved in July, 1986. Your bills for architectural services were submitted and approved on a periodic basis. During this time, you had no other relationship and received no compensation from the township. In order to determine whether a violation of the Ethics Act has occurred, it is necessary to make a preliminary determination as to whether you are a public official /employee under the Ethics Act. In the instant matter, you were appointed to the position of Assistant Deputy Building Inspector on September 26, 1983, but you were only appointed for one specific matter relating to a problem that the township was having on Route 29. In this capacity, you performed consulting services between October, 1983 and July 1984. Your services were rendered to Chambers Associates, a licensed consulting engineer for the township. You were not an engineer and received no compensation directly from the township for the utilization of your testimony in court proceedings regarding this particular project. Your title of Assistant Deputy Building Inspector had never previously existed in the township and you had no duties or responsibilities except as to that particular project. It is clear that you were only retained for one specific project through the firm of Chambers Associates, Incorporated, of which you are neither an officer, director, owner or holder of stock. Thus, you provided very limited consulting services in this case relative to that one project. For the purposes of that project, you were nominated as Assistant Building Inspector even though said position never existed in the township. Therefore, based upon the facts of this case, it is clear that you were in the position of an independent contractor providing consulting services. You would not be a public employee as that term is defined under the Ethics Act. See, Status of Enaineerino Firm - Opinion, 80 -014; Rosters v. State Ethics Commission, 80 Pa. Commw. Ct. 43, 470 A.2d 1120 (1984). Since you are not a "public employee" under the Ethics Act, the complaint against you is dismissed. C. Conclusion and Orders 1. As a one time Assistant Building Inspector providing consulting services for one specific project in Marlborough Township, you are not a "public employee" under the Ethics Act. Mr. Joseph A. Zadlo Page 8 2. The complaint against you is hereby dismissed. This Order is final and will be made available as a public document fifteen days after issuance. However, you may request reconsideration which will defer public release of this Order pending action on your request by the Commission. A request for reconsideration, however, does not affect the finality of this Order. A reconsideration request must be received at this Commission within fifteen days of issuance and must include a detailed explanation of your 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, including yourself, unless the right to challenge this Order is waived, may violate confidentiality by releasing, discussing or circulating this Order. However, confidentiality does not preclude you from discussing this case with your attorney at law. Any person who violates confidentiality of a Commission proceeding is guilty of a misdemeanor and shall be fined not more than $1,000 or imprisoned for not more than one year or both, 65 P.S. 409(e). By t e Commission 4 %J ,J elena G. Hughes Chair