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HomeMy WebLinkAbout1199 KernIn Re: Steve Kern File Docket: X -ref: Date Decided: Date Mailed: Before: Daneen E. Reese, Chair Louis W. Fryman, Vice Chair John J. Bolger Frank M. Brown Susan Mosites Bicket Donald M. McCurdy 00- 024 -C2 Order No. 1199 5/15/01 5/30/01 This is a final adjudication of the State Ethics Commission. Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding a possible violation of the Public Official and Employee Ethics Law, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., by the above -named Respondent. At the commencement of its investigation, the Investigative Division served upon Respondent written notice of the specific allegations. Upon completion of its investigation, the Investigative Division issued and served upon Respondent a Findings Report identified as an "Investigative Complaint." An Answer and New Matter was filed and a hearing was waived. The record is complete. A Consent Agreement and Stipulation of Findings were submitted by the parties to the Commission for consideration. The Consent Agreement was subsequently approved. Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter 11 of Act 93 of 1998, 65 Pa.C.S. §1101 et seq., which essentially repeats Act 9 of 1989 and provides for the completion of pending matters under Act 93 of 1998. This adjudication of the State Ethics Commission is issued under Act 93 of 1998 and will be made available as a public document thirty days after the mailing date noted above. However, reconsideration may be requested. Any reconsideration request must be received at this Commission within thirty days of the mailing date and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the finality of this adjudication but will defer its public release pending action on the request by the Commission. The files in this case will remain confidential in accordance with Chapter 11 of Act 93 of 1998. 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. Confidentiality does not preclude discussing this case with an attorney at law. Kern, 00- 024 -C2 Page 2 I. ALLEGATION: That Steve Kern, a public official in his capacity as a Muddy Creek Township Supervisor, violated Sections 3(a)/1103(a) and 3(f)/1103(f) of the State Ethics Act (Act 9 of 1989, 65 P.S. §401 et seq.) when he used the authority of his office for a private pecuniary benefit of himself and /or a member of his immediate family are associated by directing township employees to purchase auto parts from Kerns Auto Parts, a business which is owned by his sons and when purchases were made from Kerns Auto Parts in excess of $500.00 without an open and public process. II. FINDINGS: 1. Steve Kern has served as a Supervisor for Muddy Creek Township since 1996. a. Kern served as roadmaster from January 1997 through February 10, 1999. 2. Kern has served as a township supervisor on and off for over the past 30 years. a. Kern did not serve on the Board of Supervisors from 1990 -1995. 3. Muddy Creek Township regularly makes purchases of auto parts and supplies necessary to maintain the township vehicles. 4. Muddy Creek Township does not utilize a purchasing policy in regard to purchases for auto parts. a. Supervisors, Roadmasters and road employees are permitted to make and sign for purchases. 1. Road employees are authorized to make incidental purchases. b. Although no dollar limit has been established, generally large purchases are not made without the approval of the Supervisor /Roadmaster. c. Roadworkers have sought Kern's approval if large purchases were needed for repairs to vehicles. 5. Muddy Creek Township has utilized Kern Auto Parts to purchase auto parts and supplies since at least 1980 and has maintained a charge account since at least 1986. a. The majority of purchases are from the Kern Auto Parts located in Porterville [sic], PA. 1. Kerns [sic] Auto Parts also has a store located on Rte. 422, Butler, PA. b. The Portersville Kern Auto Parts Store is located 4.0 miles from the township maintenance building. 1. This is the closest auto parts store to the township building. c. Other auto parts stores are at least 10.0 miles or more from the township maintenance building. d. Other auto parts and supply businesses were used when Kern Auto Parts did not have or was unable to supply the item needed. Kern, 00- 024 -C2 Page 3 6. Kern Auto Parts, Inc. is owned and operated by Robert Kern and Gerald Kern. a. Other Kern family members are employed by Kern Auto Parts. 7 Robert and Gerald Kern are sons of Steve Kern. 8. Kern family members consistently associated with Kern Auto Parts are as follows: Robert Kern (son): Gerald Kern (son): Jerome Kern (son): Judy Book (daughter): Karen Kern (wife of Robert): Owner, Director and President, counter person; Owner, Director and Secretary /Treasurer, counter person; Counter person responsible for stocking shelves, orders, customer service, cutting drums, rotors and flywheels; General secretary responsible for filing, computer work and answering phones; Director and bookkeeper responsible for accounts payable, accounts receivable and insurance; Patricia Kern (wife of Gerald): Director and responsible for payroll. a. Several family members have been employed by the business for a limited period of time between 1996 and 2000, including: Vern Kern, son of Gerald; and Craig Book, son of Judy Book. 9. Steve Kern is not an owner or shareholder of Kern Auto Parts, Inc. a. Kern has no financial interest in Kern Auto Parts, Inc., and has not received any payments from Kern Auto Parts, Inc. b. Kern has never been employed by Kern Auto Parts, Inc. 10. Records of the Department of State Corporation Bureau show that Kern Auto Parts was incorporated by Robert and Gerald Kern on February 13, 1986, by way of an Amendment to the original Articles of Incorporation of Kern Auto Parts and Salvage on July 28, 1980. a. In 1986, the corporation was split into Kern Auto Parts, Inc. and Kern Auto Salvage, Inc. a wholly owned subsidiary of Kern Auto Parts, Inc. 1) Kern Auto Salvage, Inc., was dissolved in 1990. b. Kern Auto Parts and Salvage was incorporated by Robert and Gerald Kern. c. Steve Kern is not identified as an officer or director of either business. 11. Kern Auto Parts maintains two stores at the following locations: a. The store at 1549 Perry Highway, Portersville, PA is operated by Robert Kern. Kern, 00- 024 -C2 Page 4 b. The store on Route 422, Butler, PA is operated by Gerald Kern. 12. Muddy Creek Township generally employed two persons on the road crew, including the Roadmaster. a. While Kern served as Roadmaster from 01/97 to 02/10/99 he did not perform labor related services on the roads. 1. Kern's role was more supervisory. 13. In 1996 as a Supervisor /Roadmaster, Gary Book approved and signed for most purchases from Kern Auto Parts. a. Book served as roadmaster in 1996 and road foreman in 1997 and authorized expenditures from Kern Auto Parts. 1. Book is the husband of Judy Book, Kern's daughter and an employee of Kern's [sic] Auto Parts. 14. Information received from witness interviews indicates Kern would suggest Muddy Creek Township employees purchase parts and supplies from Kern Auto Parts while he served as Roadmaster. a. Employees were not directed to buy exclusively from Kern Auto Parts. b. Kern Auto Parts was the most convenient auto parts retailer to the township. 15. Muddy Creek Township employees felt compelled to purchase auto parts from Kern Auto Parts because, as roadmaster, Kern was their boss; however, parts or supplies not available from Kern Auto Parts were purchased elsewhere. 16. Purchases of auto parts and supplies from Kern Auto Parts, Inc. between January 1996 and April 12, 2000 totaled $7,957.86. 1996 $1,299.04 1997 889.55 1998 701.62 1999 4,617.94 2000 449.71 17. Between January 1996 and April 12, 2000, Kern Auto Parts submitted 142 invoices for payment to Muddy Creek Township. a. One invoice #186844 for the purchase of a 4 -ton jack on February 17, 1999, exceeded $500.00. 1. The price totaled $799.00. 2. The jack was purchased over the counter and charged to the township account by then Roadmaster Ken Nye. b. This purchase was not publicly advertised and bid nor discussed at a public meeting. c. Supervisor Kern was not the Roadmaster after February 10, 1999, when the purchase was made. Kern, 00- 024 -C2 Page 5 1. Kern was opposed to purchasing a jack of that price. 2. Kern did not sign the invoice. 3. Kern did co -sign township check no. 4471 in the amount of $1,315.56 dated March 15, 1999, which in part paid for the jack. 4. Kern did vote to approve the bill list which included this check on April 14, 1999. 18. Muddy Creek Township's procedure for approving payment of the bills includes a bill list provided to the board members at the regular monthly meeting. a. Prior to January 1997, the actual bills were provided to the Supervisors for their review at the meetings. 19. At the regular monthly Board of Supervisors meeting, a motion is made and a vote taken to approve payment of the bills incurred during the previous month. 20. Between January 1996 and April 2000, Kern participated in actions of the Muddy Creek Township Board of Supervisors to approve payments to Kern Auto Parts. a. Votes to approve payment of the bills were usually unanimous. b. Kern did not abstain on any votes to approve payment to Kern Auto Parts. 21. Kern participated in approving bills which included payment to Kern Auto Parts on thirty -nine (39) occasions. 22. Kern cast the deciding vote to approve payment of the bills which included payments to Kern Auto Parts on seven occasions. a. Date Check No. Amount 04/09/97 3963 $ 51.89 09/10/97 4040 $ 8.51 10/08/97 4054 $ 7.05 02/11/98 4132 $ 30.93 03/11/98 4150 $108.84 07/08/98 407 $269.28 11/10/99 4662 $611.98 b. Kern's vote was deciding on these occasions due to the absence of one of the other two Supervisors. 23. Between 1996 and April 2000, Muddy Creek Township issued forty -one (41) checks to Kern Auto Parts. a. Checks were issued from both the General Fund account and from the Highway Aid account 24. Of the checks issued to Kern Auto Parts by Muddy Creek Township during this time period, four were in excess of $500.00. a. All four payments consisted of multiple invoices. b. No individual purchase was in excess of $500.00. Check Date Check # Check Amt. Kern's Sign Mtg Date Bill Appr'd Action by Kern 1996 02/14/96 312 604.02 Yes 2/14/96 Voted 03/13/96 321 52.89 Yes 03/13/96 Voted 05/08/96 326 180.81 Yes 05/08/96 Motion 06/12/96 331 50.28 Yes 06/12/96 Voted 08/14/96 3819 100.74 - 08/14/96 Voted 10/09/96 3845 4.07 Yes 10/09/96 Voted /Second 12/11/96 3885 99.37 Yes 12/11/96 Voted /Motion 12/31/96 3899 116.86 Yes 01/06/97 Second Totals $1,209.04 1997 04/09/97 3963 51.89 Yes 04/09/97 Motion 06/11/97 3998 51.83 Yes 06/11/97 Second/Voted 07/09/97 364 232.01 Yes 07/09/97 Voted /Second 08/13/97 4022 30.99 Yes 08/13/97 Voted /Second 09/10/97 4040 8.51 Yes 09/10/97 Voted /Motion 10/08/97 4054 7.05 Yes 10/08/97 Voted /Second 11/12/97 4068 408.64 Yes 11/12/97 Voted 12/10/97 388 98.63 Yes 12/10/97 Voted /Second Totals 889.55 1998 01/05/98 4112 114.19 Yes 01/05/98 Voted /Motion 02/11/98 4132 30.93 Yes 02/11/98 Voted /Motion 03/11/98 4150 108.84 Yes 03/11/98 Voted /Motion 04/08/98 393 94.69 Yes 04/08/98 Voted 05/13/98 399 48.31 Yes 05/13/98 Voted /Second 07/08/98 407 269.28 Yes 07/08/98 Voted /Second Kern, 00- 024 -C2 Page 6 25. Township checks required three signatures, including two Supervisors and the Secretary /Treasurer. a. Often all three Supervisors signed checks. 26. Kern signed thirty -seven (37) checks payable to Kern Auto Parts between 1996 and April, 2000. a. Kern signed all four checks in excess of $500.00. 27. Kern's actions in voting to approve payment and signing checks for the purchases from Kern Auto Parts, Inc. by Muddy Creek Township and [sic] as indicated below. Kern Auto Parts, Inc., Purchases — 1996 - 2000 Check Date Check # Check Amt. Kern's Sign Mtg Date Bill Appr'd Action by Kern 08/12/98 4336 2.93 Yes 08/12/98 Voted /Motion 09/09/98 4354 32.78 Yes 09/09/98 Voted /Motion Totals 701.92 [sic] 1999 01/04/99 4424 99.51 Yes 01/04/99 Voted 02/12/99 4444 960.69 Yes 03/10/99 Voted 03/15/99 4471 1,315.56 Yes 04/14/99 Voted 03/29/99 4500 420.11 Yes 04/14/99 Voted 05/06/99 4514 207.60 No 05/12/99 Voted 06/01/99 4542 279.53 Yes 06/09/99 Voted 06/24/99 4574 11.43 No 07/14/99 Voted 07/31/99 4595 52.58 Yes 08/11/99 Voted 08/30/99 4610 10.90 No 09/08/99 Voted 08/30/99 4612 93.00 Yes 09/08/99 Voted 09/30/99 4619 157.43 Yes 10/12/99 Voted /Second 11/10/99 4662 611.98 Yes 11/10/99 Voted /Second 12/08/99 4688 264.02 Yes 12/08/99 Voted /Second 12/31/99 4714 133.50 Yes 01/04/00 Voted /Motion Totals $4,617.94 [sic] 2000 02/09/00 4746 177.72 Yes 02/09/00 Voted 03/08/00 4774 152.43 Yes 03/08/00 Voted 04/12/00 4789 119.56 Yes 04/12/00 Voted Totals 449.71 Kern, 00- 024 -C2 Page 7 28. Muddy Creek Township was not charged for items detailed on Invoice @198441 ($19.12), and one item on Invoice #201165 ($17.79), for a total of $36.91. a. No corresponding check could be found in payment of Invoice #198441. b. The item $17.79 on Invoice #201165 was not included in the total price. 29. Kern Auto Parts, [nc. provides a 2% discount to regular charge customers if the bill is paid by the 10 of the following month. 30. Muddy Creek Township has maintained a charge account with Kern Auto Parts, Inc. since at least 1986, and is therefore eligible for the 2% discount. a. Muddy Creek Township Board of Supervisors monthly meetings are not always held by the 10 of the month. b. Kern Auto Parts always grants Muddy Creek Township the 2% discount even Kern, 00- 024 -C2 Page 8 when the township meeting date is after the 10 of the month. c. Kern Auto Parts will provide that opportunity to any of the other townships it deals with, if requested, on a month by month basis. 31. Purchases made from Kern Auto Parts by Muddy Creek Township during the years 1996 through April 2000, totaled less than'/ of 1`)/0 of Kern Auto Parts sales for the period. 32. Kern Auto Parts profit margin on all sales, including those made to Muddy Creek Township, varied between 29% and 40% for the years 1996 through 1999, resulting in the following: % of Year Gross Gross of T w C ' Profit on Receipts Profit Profit Purchases M. C. Twp. Purchases 1996 1, 614, 218.00 574, 399.00 .35 1,299.04 454.66 1997 1, 339, 674.00 546, 609.00 .40 889.55 355.82 1998 1, 291, 838.00 385, 933.00 .29 701.62 203.46 1999 1, 263, 361.00 392, 310.00 .31 4,617.94 1,431.56 2000 N/A N/A N/A 449.71 139.41 7,957.86 2,584.91 a. 1999 % of Profit was used to calculate % of Profit on Muddy Creek Township purchases for the year 2000. b. Kern Auto Parts fiscal year is from April 1 through March 31. 33. Muddy Creek Township employees generally agreed on the following in regard to purchases made from Kern Auto Parts: a. The location of the Portersville store was more convenient than any other auto parts store (less mileage and time). b. Kern Auto Parts usually had the item the township needed in stock. c. Prices were competitive. d. In the event that the price at Kern Auto Parts was higher, there was still a savings in employee time, wear and tear on the township trucks, or gas for their personal vehicles, to utilize Kern Auto Parts. 34. Kern participated in actions of the board of supervisors resulting in a private pecuniary benefit to Kern Auto Parts, Inc., a business owned by his sons, by suggesting auto parts purchases be made from Kern, approving payments to Kern and signing checks payable to Kern. a. Payments from Muddy Creek Township to Kern Auto Parts, Inc., from 1996 through 1999 resulted in a private pecuniary gain which totaled $2,584.91. 35. Kern stated that at no time did he willfully or intentionally act to violate the provisions of the State Ethics Act. 36. Kern stated that he believed his actions at all times were reasonable, in good faith, and permitted by the State Ethics Act. Kern, 00- 024 -C2 Page 9 III. DISCUSSION: At all times relevant to this matter, the Respondent, Steve Kern, hereinafter Kern, has been a public official subject to the provisions of the Public Official and Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq., as codified by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. §1101 et seq., which Acts are referred to herein as the "Ethics Act." The issues are whether Kern violated the following provisions of the Ethics Act when he used the authority of his office for a private pecuniary benefit of a business with which he or a member of his immediate family is associated, when he directed township employees to purchase auto parts from Kern Auto Parts, a business owned by his sons; and when he voted to approve payments and co- signed checks to Kern Auto Parts, including a payment of $799 for the purchase of a four -ton jack, which purchase was made without an open and public process. Section 3/1103. Restricted activities (a) Conflict of interest. — No public official or public employee shall engage in conduct that constitutes a conflict of interest. 65 P.S. §403(a)/65 Pa.C.S. §1103(a). The term "conflict of interest" is defined under Act 9 of 1989/Act 93 of 1998 as follows: Section 2/1102. Definitions "Conflict" or "conflict of interest." Use by a public official or public employee of the authority of his office or employment or any confidential information received through his holding public office or employment for the private pecuniary benefit of himself, a member of his immediate family or a business with which he or a member of his immediate family is associated. "Conflict" or "conflict of interest" does not include an action having a de minimis economic impact or which affects to the same degree a class consisting of the general public or a subclass consisting of an industry, occupation or other group which includes the public official or public employee, a member of his immediate family or a business with which he or a member of his immediate family is associated. 65 P.S. §402/65 Pa.C.S. § 1102. Section 3(a)/1103(a) of the Ethics Act prohibits a public official /public employee from using the authority of public office /employment or confidential information received by holding such a public position for the private pecuniary benefit of the public official /public employee himself, any member of his immediate family, or a business with which he or a member of his immediate family is associated. Section 3(f)/1103(f) of the Ethics Act imposes certain restrictions as to contracting. Kern, 00- 024 -C2 Page 10 Section 3/1103. Restricted activities (f) No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, 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. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 P.S. §403(f)/65 Pa. C. S. § 1103(f). In addition, Section 3(f)/1103(f) of Act 9 of 1989/Act 93 of 1998 specifically provides in part that no public official /public employee or spouse or child or business with which he or the spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are reproduced above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. Kern has served as a member of the Board of Supervisors of Muddy Creek Township since 1996. The Board consists of three members. Kern also served as Roadmaster from January 1997 through February 10, 1999. Kern's role as Roadmaster was primarily supervisory in nature and involved approving road employees' requests to make large purchases of auto parts and supplies for the repair and maintenance of Township vehicles. Since at least 1980, auto parts and supplies were regularly purchased from Kern Auto Parts. Kern has no legal ties to Kern Auto Parts in that he is neither an owner, officer nor employee of that business. However, two of Kerns' sons own, operate and hold director positions in Kern Auto Parts, which employs another son and a daughter. Kern Auto Parts has two locations —one in Portersville, Pennsylvania, and one in Butler, Pennsylvania. Since the Portersville store is the closest auto parts store to the Township building, the majority of purchases by the Township were made at this location. However, the Township made purchases from other auto parts and supply stores when Kern Auto Parts did not carry the needed item. Kern, 00- 024 -C2 Page 11 During the time that Kern served as Roadmaster, he would suggest that Township employees purchase parts and supplies from Kern Auto Parts. In turn, Township employees felt compelled to make purchases from Kern Auto Parts because Kern was their boss. Between January 1996 and April 2000, the Township made purchases from Kern Auto Parts totaling $7,957.86. During this same time period, Kern participated in actions of the Board on 39 occasions to approve payments and co- signed 37 checks payable to Kern Auto Parts. On February 17, 1999, the Township made an over - the - counter purchase of a four - ton jack from Kern Auto Parts. Although the jack cost $799, it was not purchased through an open and public process. Kern opposed the purchase of the jack for $799 and did not sign the invoice. However, in March 1999, Kern co- signed a Township check that partially paid for the jack and in April 1999, voted to approve the bill list that included this check. Based upon a profit margin that ranged from 29% to 40 %, for the years 1996 through 1999, Kern Auto Parts made a $2,584.91 profit on purchases made by the Township. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations. The Consent Agreement proposes that this Commission find a technical violation of 3(a) of the Ethics Act by Kern when, between January 1996 and April 2000, he participated in actions of the Board of Supervisors approving payments to Kern Auto Parts, a business with which immediate family members are associated, and signed checks payable to that business; a technical violation of 3(f) of the Ethics Act by Kern when he voted to approve payments to Kern Auto Parts, including a payment of $799 for the purchase of a four -ton jack, and signed a check partially paying for that purchase, which was made without an open and public process; and a payment of $1,000 by Kern within 30 days of the issuance of this Order to the Commonwealth of Pennsylvania through this Commission. As to Section 3(a)/1103(a) of the Ethics Act, we find that Kern, as Township Supervisor, participated in actions of the Board to approve payments to Kern Auto Parts on 39 occasions and co- signed 37 checks issued to that business, which was owned and operated by immediate family members. Such actions of Kern were uses of authority of office. See, Juliante, Order 809. The uses of authority of office by Kern resulted in a private pecuniary benefit to Kern Auto Parts in the amount of $2,584.91. Accordingly, we find that Kern technically violated Section 3(a)/1103(a) of the Ethics Act when, between January 1996 and April 2000, he approved payments to Kern Auto Parts and co- signed checks issued to that business. See, Barrett, Order 1149. In that it appears that the Investigative Division, through the exercise of prosecutorial discretion, has chosen not to pursue the allegation that Kern, as Roadmaster, directed road employees to purchase auto parts and supplies from Kern Auto Parts, we therefore need not address that particular issue. As to Section 3(f)/1103(f) of the Ethics Act, we find that there was not an open and public process as to the Township's purchase of the four -ton jack from Kern Auto Parts. In that the cost of the jack exceeded $500, a contract to sell such item should have been awarded through an open and public process. Although the stipulated facts reflect that Kern was opposed to purchasing a jack at the price at which it was offered, was not serving as Roadmaster when the purchase was made, and was not a signatory on the invoice, he did co -sign Township check no. 4471 in the amount of $1,315.56 dated March 15, 1999, which in part paid for the jack. Further, Kern voted to approve the bill list which included this check on April 14, 1999. Accordingly, Kern technically violated Section 3(f)/1103(f) of the Ethics Act when he voted to approve a payment of $799 for the purchase Kern, 00- 024 -C2 Page 12 of a four -ton jack from Kern Auto Parts, and signed a check partially paying for the same so that the contract, which was valued at $500 or more, was not awarded through an open and public process. See, Fantaskey, Order 1166. We determine that the Consent Agreement submitted by the parties sets forth the proper disposition for this case, based upon our review as reflected in the above analysis and the totality of the facts and circumstances. Accordingly, Kern is directed to make payment in the amount of $1,000.00 to the Commonwealth of Pennsylvania through this Commission within 30 days of the issuance of this order. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. Noncompliance will result in the institution of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Kern, as a Supervisor for Muddy Creek Township, is a public official subject to the provisions of Act 9 of 1989/Act 93 of 1998. 2. Kern technically violated Section 3(a)/1103(a) of the Ethics Act when, between January 1996 and April 2000, he approved payments to Kern Auto Parts and co- signed checks issued to that business, which was owned and operated by immediate family members. 3. Kern technically violated Section 3(f)/1103(f) of the Ethics Act when he voted to approve a payment of $799 for the purchase of a four -ton jack from Kern Auto Parts, and co- signed a check partially paying for the same so that the contract, which was valued at $500 or more, was not awarded through an open and public process. In Re: Kern ORDER NO. 1199 File Docket: 00- 024 -C2 Date Decided: 5/15/01 Date Mailed: 5/30/01 1 Kern, as a Supervisor of Muddy Creek Township, technically violated Section 3(a)/1103(a) of the Ethics Act when, between January 1996 and April 2000, he approved payments to Kern Auto Parts and co- signed checks issued to that business, which was owned and operated by immediate family members. 2. Kern technically violated Section 3(f)/1103(f) of the Ethics Act when he voted to approve a payment of $799 for the purchase of a four -ton jack from Kern Auto Parts, and co- signed a check partially paying for the same so that the contract, which was valued at $500 or more, was not awarded through an open and public process. 3. Per the Consent Agreement of the parties, Kern is directed to make payment in the amount of $1,000 to the Commonwealth of Pennsylvania through this Commission within 30 days of the issuance of this order. a. Compliance with the foregoing will result in the closing of this case with no further action by this Commission. b. Non - compliance will result in the institution of an order enforcement action. BY THE COMMISSION, DANEEN E. REESE, CHAIR