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HomeMy WebLinkAbout953 Brink (2)In re: Leroy Brink STATE ETHICS COMMISSION 308 FINANCE BUILDING HARRISBURG, PENNSYLVANIA 17120 File Docket: Date Decided: Date Mailed: 91- 042 -C; 94- 013 -C2 12/16/94 12/27/94 Before: James M. Howley, Chair Daneen E. Reese, Vice Chair Dennis C. Harrington Roy W. Wilt Austin M. Lee Allan M. Kluger John R. Showers The Investigative Division of the State Ethics Commission conducted an investigation regarding possible violations of the State Ethics Law, Act 170 of 1978, P.L. 883, and Act 9 of 1989, P.L. 26. Written notice of the specific allegation(s) was served at the commencement of the investigation. A Findings Report was issued and served upon completion of the investigation which constituted the Complaint by the Investigation Division. An Answer was filed. A consent agreement was submitted by the parties to the Commission for consideration which was reviewed. This Order Nisi of the Commission is hereby issued which sets forth the individual Allegations, Findings of Fact, Discussion, Conclusions of Law and Order. This Order Nisi is not final but will become final, and will be made available as a public document, fifteen days after issuance unless reconsideration is requested. A request for reconsideration will defer public release of this adjudication pending action on the request by the Commission. A reconsideration request must be received at this Commission within fifteen days of issuance and must include a detailed explanation of the reasons as to why reconsideration should be granted in conformity with 51 Pa. Code §2.38 and /or 51 Pa. Code §21.29(b). The files in this case will remain confidential in accordance with Section 8(a) of Act 170 of 1978 and Act 9 of 1989, 65 P.S. 5408(h). Any person who violates confidentiality of the Ethics Law is guilty of a misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than one year, 65 P.S. 5409(e). Confidentiality does not preclude discussing this case with an attorney at law. I. ALLEGATION: That Leroy Brink, as a public official /public employee, in his position as a Supervisor for Chest Township, Clearfield County, violated provisions of the State Ethics Act (Act 170 of 1978, P.L. 883 and Act 9 of 1989, P.L. 26) when he participated in decisions to award contracts to Brink Trucking and Brink Trucking Company, firms with which he or members of his immediate family are associated, without an open and public process; when he used the authority of his office for the receipt of private pecuniary benefit and financial gains other than compensation provided for by law for himself and businesses with which he or members of his immediate family are associated; when he participated in approving the payment of Brink Trucking and Brink Trucking Company invoices; when he participated in approving payments to himself; when he signed checks payable to himself, Brink Trucking and Brink Trucking Company; when he received compensation for performing services in relation to a township water project; when he participated in compensating himself and a business with which he and members of his immediate family are associated in relation to the water project with Township funds; and when he signed checks payable to himself and a business with which he and members of his immediate family are associated in relation to a township water project. 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. (c) No public official or public employee or a member of his immediate family or any business in 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. Act 170 of 1978, P.L. 883, Sections 3 (a) , 3 (c) . Section 3. Restricted Activities Brink, 91- 042 -C; 94- 013 -C2 Page 3 (a) No public official or public employee shall engage in conduct that constitutes a conflict of interest. (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. 55403(a),(f). II. FINDINGS: 1. A signed, sworn Complaint was received by the Investigative Division of the State Ethics Commission on July 11, 1991, alleging that Respondent, Leroy Brink, violated the provisions of the Ethics Law. 2. Upon review of the Complaint by the Director of Investigations of the Investigative Division of the State Ethics Commission, a recommendation was made to the Executive Director of the State Ethics Commission to commence an investigation. 3. At the direction of the Executive Director of the State Ethics Commission, the Investigative Division of the State Ethics Commission instituted an investigation under Act 170 of 1978. 4. On September 10, 1991, a letter was forwarded to Respondent by the Executive Director of the State Ethics Commission informing Respondent of the fact that a Complaint against him was received by the Investigative Division of the State Ethics Commission and that an investigation was being commenced. Brink, 91- 042 -C; 94- 013 -C2 Page 4 5. The full investigation was commenced at the direction of the Executive Director of the State Ethics Commission. 6. Further, upon review of additional information received by the Investigative Division of the State Ethics Commission, on February 9, 1994, the Executive Director directed the commencement of a full investigation regarding activities of the Respondent in violation of the Ethics Law under Act 9 of 1989. 7. On August 4, 1994, the Investigative Division of the State Ethics Commission issued the Investigative Complaint and Findings Report against Respondent and forwarded same to Respondent and /or Respondent's attorney. 8. Leroy Brink (Brink) has served as an elected Supervisor for Chest Township, Clearfield County, since January, 1984. a. Chest Township is a second class township with a population of approximately 450 people. b. It has an annual general budget of approximately $65,000. 9. Since January, 1984, Brink has served as an employee of Chest Township, on a part time basis, and as an appointed roadmaster since 1986. 10. Ethel Brink is the wife of Leroy Brink. 11. The following individuals are children of Leroy and Ethel Brink: a. b. c . d.. e. f. Samuel Brink Kenneth Brink James Brink Ronald Brink Larry Brink Nickolas Brink 12. Carol Brink is the,wife of Samuel Brink. 13. John Brink is the nephew of Leroy Brink. 14. Brink operated a trucking business under the name Leroy Brink Trucking until at least 1991. 15. Ethel Brink operates a trucking business under the name Ethel Brink Trucking. 16. Documents filed with the Pennsylvania Department of State indicate that a fictitious name registration was filed on or Brink, 91- 042 -C; 94- 013 -C2 Page 5 about May 29, 1982, for Brink Trucking. a. Persons interested in the business were Samuel and Kenneth Brink. b. On May 21, 1985, the fictitious name was withdrawn. c. On November 6, 1989, Brink Trucking Co. was incorporated by Samuel Brink. 17. Documents filed with the Pennsylvania Public Utility Commission indicate that Brink Trucking and Brink Trucking Co. were certified as common carriers. 18. Brink Trucking Company also is registered under the following numbers: a. Interstate Commerce Commission: ICC# MC207080 b. U.S. Department of Transportation: U.S. DOT# 309456 19. Chest Township historically used outside contractors to haul materials such as paving materials, road materials and stone aggregates. a. The Township has had no full time employees nor did it own the requisite equipment to haul said paving materials, road materials and stone aggregates during the time period in question. b. Telephone solicitations for said services were usually obtained by the township secretary or the chairman of the board of supervisors. 20. The minutes of the meetings of the Chest Township Supervisors do not include any action authorizing Brink Trucking or Brink Trucking Company (collectively referred to as Brink Trucking) to haul materials for Chest Township. 21. The records of Chest Township do not indicate that any bids were sought by the township for hauling materials prior to the middle of 1993. 22. The hauling of road and aggregate materials was performed by Brink Trucking. 23. Payments for the hauling of road and aggregate materials were disbursed from the State Fund Account and the General Fund Account of Chest Township. 24. Bills and invoices for hauling materials by Brink Trucking and Brink, 91- 042 -C; 94- 013 -C2 Page 6 Leroy Brink were included in the bills list at each regular monthly meeting of the Board of Supervisors of Chest Township. 25. The bills lists are voted upon in their entirety by the Board of Supervisors of Chest Township. 26. Since January, 1984, Brink Trucking and Leroy Brink were utilized by Chest Township to haul materials at least 43 times. 27. Brink voted to approve bills lists which included bills and invoices from Brink Trucking and members of the Brink family. 28. Brink took official action to approve at least 41 checks for payments to Brink Trucking, Ronald Brink and Leroy Brink from the State Fund and the General Fund of Chest Township by signing checks, making motions to approve payments, seconding motions to approve payments and voting in favor of motions to approve such payments. Check numbers, dates, amounts, payee information, signature information, endorsement information, action by Brink and commentary as to all payments are included in Chart A (General Fund Payments) and Chart B (State Fund Payments) attached hereto and incorporated herein by reference. 29. Checks from the General Fund and Township payable to Leroy Brink and by Brink. 30. Statements of Financial Interests Trucking as a source of income in and 1988. 31. Brink Trucking leased at least two trucks during the years 1989 and 1990. a. This resulted in the income noted on Financial Interests. the State Fund of Chest Brink Trucking were signed for Brink indicate Brink calendar years 1990, 1989 from Leroy Brink the Statement of 32. The trucks belonging to Leroy Brink which were leased to Brink Trucking during the period of the lease were operated under the Pennsylvania Public Utility Commission Authority issued to Samuel Brink t /d /b /a Brink Trucking or Brink Trucking Company. 33. Brink Trucking made weekly lease payments to Brink for the use of Brink's trucks. 34. The lease payments have been made since at least January, 1988. 35. The corporate checking account for Brink Brokerage Company, Brink, 91- 042 -C; 94- 013 -C2 Page 7 account Brink: Date 12/5/89 12/5/89 12/12/89 12/19/89 12/26/89 1/2/90 1/4/90 #20- 02229, include the following payments to Leroy Check # 4965 4966 4986 5034 5064 5087 5126 Amount $ 3,501.20 2,542.83 3,549.01 1,429.84 1,277.40 3,936.17 1,456.76 $17,693.21 Memo Contract truck Contract truck Contract truck Contract truck Contract truck Contract truck Contract truck 36. Brink received lease payments based upon a percentage of loads hauled by his trucks. 37. In July, 1987, Chest Township began a project to renovate and upgrade an existing water reservoir near Thompsontown, a small village area within Chest Township. 38. On July 3, 1987, a Grant Agreement was entered into between Chest Township and the Commonwealth of Pennsylvania acting through the Pennsylvania Department of Commerce for the grant amount of $14,000.00 to be given to Chest Township for the reservoir project. 39. On June 20, 1988, an Amendment to the Grant Agreement was executed by Chest Township and the Commonwealth of Pennsylvania acting through the Pennsylvania Department of Commerce. 40. The reservoir project consisted of removing brush and debris, excavating, relocation of a spillway and replacement of deteriorated sections of existing distribution lines. 41. The Grant Agreement Amendment was signed by Leroy Brink on June 30, 1988 as Chairman of the Chest Township Board of Supervisors. 42. The Grant Agreement provided that all Grant proceeds received from the Grantor (Commonwealth of Pennsylvania) by the Grantee (Chest Township) are to be deposited in a separate "Project Account" which is maintained by the Grantee to withdraw and disburse all funds related to the project. 43. Financing for the reservoir project was as follows: Grant Funds from Commonwealth of Pennsylvania Township Funds $14,000.00 3,529.32 $17,529.32 Brink, 91- 042 -C; 94- 013 -C2 Page 8 44. Brink was designated by the township supervisor to oversee the Thompsontown water project. 45. The following individuals or entities were hired to work on the Thompsontown water project while Brink oversaw such project. a. Michael Brink. b. Samuel Brink. c. Brink Trucking Co. 46. No outside bids were sought for the Thompsontown water project. 47. Chest Township opened a Project Account for the Thompsontown water project at the Curwensville State Bank, Curwensville, Pennsylvania 16833 -0029, account number 28- 0026 -3. 48. The records of the Project Account for the Thompsontown water project at the Curwensville State Bank, account number 28- 0026-3, state as follows: Check # 104 108 116 118 120 128 134 Date 12/06/88 12/10/88 12/10/88 12/10/88 01/03/89 01/03/89 01/03/89 Amount $ 423.19 $ 328.13 $ 600.00 $1380.00 $ 171.44 $ 160.00 $ 45.20 Payee Leroy Brink Mike Brink Leroy Brink Brink Trucking Leroy Brink Leroy Brink Leroy Brink Signature Unsigned Leroy Brink Leroy Brink Leroy Brink Daniel Hutton Amos Holes Leroy Brink Leroy Brink 49. During the Thompsontown water project, Samuel Brink billed 23 hours at $60.00 per hour for backhoe operation for a total of $1,380. 50. All checks set forth in Finding 56, above, were approved at the meetings of Chest Township Supervisors on December 10, 1988 or January 3, 1989. On both occasions, Brink made the motion to make the payments and voted in favor of making such payments. 51. No part of the Thompsontown water project was put out for bid since Chest Township labor was to be used for the entire project. Brink, 91- 042 -C; 94- 013 -C2 Page 9 GENERAL FUND PAYMENTS - CHART A STATE FUND PAYMENTS - CHART B 11ASM 11811!2 pAta SI ®tom: BWB�! iC1Z0i COa ®L :. IW. .. 358 12/1/84 409.98 Brink Trucking Leroy Brink Brink Trucking Vote Invoice from Brink Trucking to Chest Township, invoices from the Warner Company to Brink Trucking dated 11/17/84. Driver: Larry R. Brink. 160 1/7/85 • 379.90 Brink Trucking Leroy Brink Sam Brink Vote Invoice from Brink Tucking to Cheat Township dated 12/22/04. Invoices from the garner Company to'Brink Trucking dated 12/13/84 and 12/14/84 signed by Larry R. Brink and Sam Brink. 363 3/9/85 484.25 Brink Trucking Leroy Brink Brink Trucking Second/Vote Invoice from Brink Trucking to Chest Township dated 1/25/85 in the amount of $80.00 for four hours of snow plowing, Brink Trucking invoice to Chest Township dated 1/14/85 in the mount of $404.25 for anti -skid material, invoices from Warner Company to Brink Trucking signed by Sam Brink. 366 2/9/85 . 319.00 Leroy Brink Leroy Brink Leroy Brink/ Ethel Brink Wotion/Vote 368 3/9/85 '257.59 Brink Trucking Leroy Brink Brink Trucking Motion /Vote Invoice from Brink Tracking to Chest Township dated 2/23/85 for anti -skid material, invoice from the garner Company to Brink Trucking dated 2/23/85 signed by Ron Brink. 371 4/13/85 751.79 Brink Tusking Leroy Brink San Brink Notion/Vats Invoice from Brink Trucking to Cheat Township dated 3/31/85: invoices from the garner Coapany to Brink Tracking dated 3/9/85 signed by Larry Brink. 375 7/13/85 437.37 Brink Tracking Leroy Brink Sam Drink Motion /vote invoice from Brink Trucking to Cheat Township dat d 6/30/85, invoices from the garner Company to Brink Tucking dated 6/19/85 and 6/20/85 signed by Sam Brink. 382 . 12/14/85 231.29 Brink Tracking Leroy Brink Sam Brink Motion/Vote 384 1/6/86 510.86 Brink Tacking Leroy Brink Sam D. Brink/ Carol A. Brink None Invoice from Brink Trucking to Cheat Township dated 12/31/89, invoices from garner Company to Brink Trucking dated 12/31/85 signed by Larry Brink and Sam Brink. Brink, 91- 042 -C; 94- 013 -C2 Page 9 GENERAL FUND PAYMENTS - CHART A STATE FUND PAYMENTS - CHART B MIK SI6II29a ®m1�I ALZ1Q �S ]Ml O 1386 1/3/84 442.20 Brink Trucking Leroy IIrink San Brink Second /Vote 1307 1/3/84 96.43 Leroy Brink Leroy Brink terry Brink Second /Vote 1494 9/0/04 70.00 Brink Trucking Leroy Brink lithe! K. Brink Treasurer of the r.irvi.w Baptist Church 6 Brink Trucking Vote 2085 11/12/88 67.85 Leroy Brink 2009 11/11/88 580.29 Brink Trucking Leroy Brink Sam Brink Brink Trucking Motion/Vote 3243 12/10/89 391.22 Brink Trucking 2295 4/14/90 173.19 Leroy Brink Leroy 8riak Leroy Brink Sacond/Vote 2399 1/7/91 221.96 Brink Trucking Leroy Brink Sam Brink Brink Trucking Motion/Vote Brink Trucking invoice to Chest Township dated 12/5/90. Invoice from New Enterprise Stand to Brink Trucking dated 12/5/90 containing the signature of Nick Brink. Brink, 91- 042 -C; 94- 013 -C2 Page 9 GENERAL FUND PAYMENTS - CHART A STATE FUND PAYMENTS - CHART B Brink, 91- 042 -C; 94- 013 -C2 Page 10 STATE FUND PAYMENTS - CHART B ®ot >A. '. Da7t nom, BBEY SI -N mafBama 'B¢3nr 388 3/8/86 506.16 Brink Trucking cT�rr 390 4/13/86 360.39 Brink Trucking Leroy Brink Sam Brink/ Brink Trucking Second/Vote Trucking Invoice from Brink Trucking to Cheat Township dated 4/3/86 in the ...punt of 392.20, 4/3/86 in the amount of 8233.19, and 4/3/86 in the amount 392 5/6/86 1118.99 Brink Trucking Leroy Brink Sam Brink Second /Vote of $35.00. Invoice from Brink Trucking to Cheat Township dated 4/30/86, invoices from Narekood Limestone to Sam Brink and Brink Trucking dated 4/22/86 and 4/33/86 signed by Sam Br invoices from Warner Company to Brink Trucking dated 4/23/86 396 11/8/B6 199.32 Brink Leroy Brink signed by Larry Brink. Samuel D. Brink None Invoice from Brink Trucking to Cheat Township 397 12/13/86 415.96 Brink Trucking Leroy Brink dated 10/7/86. Brink Trucking Sam Brink S /Vote Invoice from Brink Trucking to Chest Township dated 11/25/86, invoice from Warner Company Brink Trucking dated 400 1/5/27 477.94 Brink Trucking Leroy Brink 11/24/86. Brink Trucking Sam Brink Second /Vote Invoice from Brink Trucking to Cheat Township dated 12/29/86, invoices from Warner Company to 9m Brink Trucking dated 12/29/66 signed by 402 2/14/87 438.36 Brink Trucking Leroy Brink L. Brink. Brink Trucking Sam Brink Second/Vote Invoice from Brink Trucking to Chest Township 403 3/14/87 417.92 Brink Trucking Leroy Brink dated 2/7/87. Samuel D. Brink Brink Vote In -,nice Tram Brink Trucking 60 Trucking Chest Township dated 3/5/87, invoices Tram Narehood Limestone to Brink Trucking dated 3/5/87 signed by Larry 404 4/11/87 207.91 Brink Trucking Leroy Brink Brink Samuel D. Brink Brink Sec vd /Vote Involee Brink Trucking to Trucking Cheat Township ip 405 5/9/87 767.82 Brink Trucking Leroy Brink dated 4/8/87. Samuel 0. Brink Brinks vote truckiv Invoice from Brink Trucking to g Cheat Township 406 6 /13/87 184.40 Trick trucking Leroy Brink dated 3/4/07. Samuel D. Brink Brink Second/Vote Invoice from Brink Trucking to Trucking Chest Township dated 6/5/87 for one load 20 408 9/12/87 360.43 Brink Trucking Leroy Brink - stone. Sam Brink Motion/Vote Invoice from Brink Trucking Co Brink Trucking Chest Township dated 8/31/89, invoices from New Enterprise Stone 6 Lime Co., Inc., dated 8/17/87 signed by 430 11/1{/9] 800.00 Brink Trucking Leroy Brink Larry E. Brink. Sam Brink Notion /Vote Invoice from Brink Trucking to Brink Trucking Cheat Township dated 11/11/87 for twenty loads 507 1 /4 /6e 844.68 Brink Tmtiaa Trucking Leroy Brink - slate. Sam Brink /vote Invoice from Brink Trucking to Bries T ki Trucking Cheat Township dated 12/31/07r invoice from Warner Con,any to Brink Trucking dated 508 2/13/38 407.49 Bruck Trucking Leroy Brink 12/28/87. Sam Brink Notion /Vote Invoice from Brink Trucking to Brink Trucking Chit Township dated 2/11/88 for two loads - anti -skid, invoices from New Enterprise Stone 6 Lime Co., Inc.. to Brink Trucking dated 2/8/88 signed by 512 3/12/88 436.77 Brink Trucking Leroy Brink Ron Drink. Samuel Brink Brink Notion /Vats invoice from Brink Trucking to Trucking Chest Township dated 3/12/88 for anti -skid 26C 513 4/9/88 201.15 Brink Trucking Leroy Brink and stone. Samuel D. Brink Brink Notion /Vote Invoice from Brink Trucking to Trucking Chest Township dated 4/4/88 one load 20 stone, invoice from New Enterprise Stone 6 Lima Co., Inc., to Brink Trucking dated 3/14/88 signed by Larry Brink. Brink, 91- 042 -C; 94- 013 -C2 Page 10 STATE FUND PAYMENTS - CHART B • aim= "P DICatBS -- 1�B8OYL 1CCta � 0... _.HH9L 523 2/11/89 BIBBRT 391.70 ►➢Hi Brink . Leroy Brink Sam Brink Brink Trucking Vote Invoice from Brink Trucking to invoices from m New Enterprise Stone dated A Lime Co., Inc., to Brick Trucking dated 1/11/89 and 1/18/89. 533 5/13/89 188.93 D Tr r v ik imo Leroy wick Brink Trucking N otion /Vote Invoice from Brink Trucking to Cheat Township dated 4/26/89; invoices from New Enterprise Stone a Lime Co.. Inc., to Brink Trucking dated 4/5/89 and 4/14/19 signed by Brink. 530 8 {13/19 631.40 Brink Leroy Brink e Brink Second /Vat. Iovoic. from Brink Tracking to Chest Township dated 7/20/89; invoices from New Enterprise Stone a Lin. Co., Inc.. to Brink Trucking dated 7 /3/89, 7/7/89 and 7/19/89. 534 10/14/89 194.11 Brink Trucking Leroy Drink Sam Brink Brink Trucking Motion /Vote Invoice from Brink Trucking to Chest ice from New i Lime Co., Inc., to Brink Trucking dated 8/10/89. 536 1/2/90 826.10 Briny Trucking Leroy Brink Samuel D. Drink Brink . Notion /Vote Ina6ice from dated Tr l� 6/69 invoices from New Enterprise Stone 4 Lime Co., Inc., to Drink Trucking dated 12/12/89 and 12/23/89 signed by Larry Brink. 537 2/30/90 434.94 Brick Trucking Leroy Drink Brink Tracking Notion /Vote Chest Township from hip Brink invoices from New Enterprise Stone a Lim. Co., Inc., to Brink Trucking dated 11/7/89 and 1/5/90 signed by Larry Brink. 561 2/11/90 453.70 Trunk truekipg Leroy Brink wiTTracking Drink Motion /Vote Invoice from Brink Trucking to Chest Township dated 8/8/90; invoices from New Enterprise Scan a Lim. Co.. Inc., to Brink Trucking dated 7/14/90 signed by Larry Brink. 545 2/9/91 1057.84 Trunk Trucking Larry Brink Samuel . Motion/Vote Invoice from Brink Trucking to Chest Township dated 2/5/91 in the amount of $406.90 and 1/22/91 in the amount of $650.74, invoices Pram New Enterprise Stone i Lime a3 Co., Inc.. to Brink Trucking 1/3/91, 1/12/91, 1/18/91, 2/1/91 and 2/9/91 signed by Ron Brink. Nick Brink and Larry Brink. 950 6/13/91 1059.00 Brink Lacy Brink B uckiing Motion/Vote Chest Invoice Township dated Trucking /27 / to 1 in the amount of $416.63 and 3/15/91 in the amount of $411.17; invoices from New Enterprise Stone i Lime Co.. Inc., to Brink Trucking dated 3/8/91, 3/9/91 and 3/27/91 signed by Nick Brink, Ron Brink and Sam Drink. 574 2/13/91 403.64 Drink Trucking Sam Brink Brink Trucking Nose Leroy Brink Brink, 91- 042 -C; 94- 013 -C2 Page 11 STATE FUND PAYMENTS - CHART 8 III. DISCUSSION: Initially, it is noted that the allegations in this case relate to both Act 9 of 1989 and Act 170 of 1978. In this regard, Section 9 of Act 9 of 1989, P.L. 26, provides, in part, as follows: This amendatory act shall not apply to violations committed prior to the effective Brink, 91- 042 -C; 94- 013 -C2 Page 12 date of this act, and causes of action initiated for such violations shall be governed by the prior law, which is continued in effect for that purpose as if this act were not in force. For the purposes of this section, a violation was committed prior to the effective date of this act if any elements of the violations occurred prior thereto. Under both Act 170 of 1978 and Act 9 of 1989, as a Supervisor for Chest Township, Clearfield County, Leroy Brink, hereinafter Brink, is a public official /employee as that term is defined under both acts. See also 51 Pa. Code. As such, his conduct is subject to the provisions of both laws and the restrictions therein are applicable to him. Under Section 3(a) of Act 9 of 1989 quoted above, a public official shall not engage in conduct that constitutes a conflict of interest. The term "conflict of interest" is defined under Act 9 of 1989 as follows: 65 P.S. 5402. Section 2. 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 or his immediate family or a business with which he or a member of his immediate family is associated. In addition, Section 3(f) of Act 9 of 1989 specifically provides in part that no public official /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 Brink, 91- 042 -C; 94- 013 -C2 Page 13 five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official /employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. Under Section 3(a), of Act 170 of 1978 quoted above, this Commission has determined that use of office by a public official to obtain a financial gain for himself or a member of his immediate family or a business with which he is associated which is not provided for in law transgresses the above provision of law. Thus, use of office by a public official to obtain financial gain which is not authorized as part of his compensation is prohibited by Section 3(a): Hoak /McCutcheon v. State Ethics Commission, 77 Pa. Commw. Ct. 529, 466 A.2d 283 (1983); Yacobet v. State Ethics Commission, 109 Pa. Commw. Ct. 432 531 A.2d 536 (1987). Similarly, Section 3(a) of the Ethics Act would prohibit a public official /employee from using public office to advance his own financial interests; Koslow v. State Ethics Commission, 116 Pa. Commw. Ct. 19, 540 A.2d 1374 (1988). In addition, Section 3(c) of Act 170 of 1978 specifically provides in part that no public official or member of his immediate family or business with which he or a member of his immediate family is a director, officer, owner or holder of stock exceeding five percent of the equity at fair market value may enter into a contract with his governmental body valued at five hundred dollars or more unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure. The numerous issues before us are whether Brink violated Section 3(a) of Act 170 or Act 9, the conflict provisions, or Section 3(c) or 3(f) of Act 170 or Act 9, the contracting provisions, as to the following allegations: 1. participation in decisions to award contracts to Brink Trucking and Brink Trucking Company, firms with which Brink or immediate members are associated; 2. use of office for financial gain or private pecuniary benefit for himself or businesses with which he or members of his immediate family are associated; 3. participation in approving payments as to Brink Trucking and Brink Trucking Company invoices; 4. participation in approving payments to Brink, 91- 042 -C; 94- 013 -C2 Page 14 himself; 5. signing checks payable to himself, Brink Trucking or Brink Trucking Company; 6. the receipt of compensation for performing services as to a township water project; 7. participation in compensating himself and a business with which he and or members of his immediate family are associated as to a township water project; 8. and a signatory on checks payable to himself or a business with which he or members of his immediate family are associated in relation to a township water project. The Stipulation of Findings filed by the parties reflects that Brink served as an elected Supervisor for Chest Township in Clearfield County since 1984; Brink also served as Chairman of the Board of Supervisors although the Stipulation of Findings does not set forth the time frame of such service. Further, Brink served as a Township employee on a part -time basis and as an appointed roadmaster since 1986. Ethel Brink is the spouse of Brink; the Brink's have six children, three of whom are Samuel, Ronald and Kenneth Brink. The relationship between Michael Brink and Brink is not delineated. Brink has operated a trucking business known as "Leroy Brink Trucking" until at least 1991. Ethel Brink also operates a trucking business known as "Ethel Brink Trucking ". On May 29, 1982 Samuel and Kenneth Brink registered "Brink Trucking" under a fictitious name which was withdrawn on May 21, 1985. Thereafter, on November 6, 1989 "Brink Trucking Company" was incorporated by Samuel Brink. For road projects such as paving, road materials and stone aggregates, Chest Township used telephone solicitation for such services through the Township secretary or Chairman of the Board because the Township had no full -time employees or equipment to haul such materials. The Township has approximately 450 people and an approximate annual general budget of $65,000.00. The minutes of the Chest Township Board of Supervisors do not contain any action authorizing Brink Trucking or Brink Trucking Company to haul materials for Chest Township. Prior to mid 1993, the Township sought no bids for hauling materials. The hauling of road and aggregate materials was performed by Brink Trucking. Bills and invoices for hauling were included and voted upon as part of bill lists at each monthly meeting of the Township Board. Since January, 1984 Brink Trucking or Brink Trucking Company and Brink Brink, 91- 042 -C; 94- 013 -C2 Page 15 were utilized by the Township to haul materials at least forty - three (43) times. Brink voted to approve bill lists which included bills and invoices from Brink Trucking and members of the Brink family Brink took official action to approve at least forty -one (41) checks for payments to Brink Trucking or Brink Trucking Company, himself and Ronald Brink, by signing checks, making motions to approve payments, seconding motions to approve payments and voting in favor of motions to approve payments See Charts A and B, supra. Checks from both the general fund and state fund of the Township were payable to Brink, Brink Trucking or Brink Trucking Company with Brink as signatory. The Financial Interests Statements (FIS) of Brink for the calendar years 1988 through 1990 reflect Brink Trucking (Company) as a source of income for Brink. Brink Trucking (Company) leased at least two trucks from Brink during the years 1989 and 1990 which resulted in income as reported on his FIS's. Brink Trucking (Company) made weekly lease payments to Brink for the use of Brink's trucks since January 1988. Lastly, Brink also received payments from the corporate checking account of "Brink Brokerage Company ". In July 1987 the Township began a renovation project as to an existing water reservoir near Thompsontown. The Township and the Commonwealth of Pennsylvania entered into a grant agreement whereby the Township received $14,000.00 from the Commonwealth and added $3,529.32 of its own funds. The project entailed the removal of brush and debris, excavation, relocation of a spillway and the replacement of deteriorated sections of exiting distribution lines. The agreement was signed by Brink on June 30, 1988 as Chairman of the Board of Supervisors. The agreement specified that all grant proceeds were to be deposited in a separate project account with withdrawals and disbursements limited to the project. Michael and Samuel Brink and Brink Trucking Company were hired to work on the project as to which Brink had oversight. No outside bids were sought for the water reservoir project. Various disbursements were made from the'project account to Brink himself, Michael Brink or Brink Trucking (Company), with many of the checks issued under the signature of Brink. The checks were approved at meetings of the Chest Township Board of Supervisors with Brink making and voting in favor of the motion for payments. In applying the provisions of Act 170 of 1978 and Act 9 of 1989 to the above facts in the context of the eight allegations in this case, we will preliminarily note the following parameters. First, we will address the allegations in the order in which they appear above. Second, although we note that the parties have stipulated that Brink Trucking may mean either Brink Trucking or Brink Trucking Company (Fact Finding 20), we will specify in our discussion whether a matter relates to Brink Trucking, the business of Samuel and Kenneth Brink from May, 1982 through May, 1985, or Brink, 91- 042 -C; 94- 013 -C2 Page 16 Brink Trucking Company, the business which was incorporated on November, 1989 by Samuel Brink. Third, since we will resolve each conflict and contracting allegation under both Act 170 and Act 9 of 1989, we will here note that there are major differences in the applications of the conflict and contracting provisions under these two acts. In particular, the conflict provision under Act 170 prohibits the financial gain to the public official /employee, a member of his immediate family or business with which he /she is associated. In this regard, immediate family under Act 170 of 1978 is defined as follows. 65 P.S. §402. Section 2. Definitions. "Immediate family." A spouse residing in the person's household and minor dependent children. Further, the Act 170 contracting section restricts contracting involving the public official /employee, member of his immediate family or business with which a member of his immediate family is a director, officer, owner or holder of stock exceeding five percent of the equity and fair market value of the business. However, under Act 9, the conflict provision is broadened to encompass a use of authority of office for a private pecuniary benefit for the public official /employee, member of his immediate family or business with which he /she or a member of his immediate family is associated. Under Act 9, the term "immediate family" was expanded: Section 2. Definitions "Immediate family." A parent, spouse, child, brother or sister. 65 P.S. §402. Lastly, under Act 9, contracting is modified to restrict the public official /employee, spouse, child or business in which the public official /employee or spouse or child is associated. As to the first allegation concerning participation by Brink as the award of contracts to Brink Trucking and Brink Trucking Company without an open and public process, we find no violations under either Act 170 or Act 9. Although we do not have dates as to the award of the contracts, it appears from the stipulated findings that most of the payments on the contract occurred under Act 170; in addition, we are unable to discern whether there are multiple contracts for these two groups of projects or whether there is a Brink, 91- 042 -C; 94- 013 -C2 Page 17 continuous course of conduct as to each contract group. From the record before us, we must conclude that the awards of the contracts are governed by Act 170. Hence, there can be no Act 9 violations since the activity in question regarding the award of these contracts occurred prior to the date of enactment of Act 9 of 1989. As to the award of these contracts, which must be viewed under Act 170, the two groups of contracts consist of the hauling contracts and the contracts regarding the water reservoir project. As to the hauling projects, the record reflects that such solicitations were done by the Township's Secretary or Chairman of the Board of Supervisors. We only know from the record that Brink was Chairman on June 30, 1988. Fact Finding 41. Since there is nothing of record to establish that Brink used public office to award such hauling contracts, we find no violation of Section 3(a) of Act 170. Further, as noted below, these two trucking firms are not businesses with which Brink or a member of his immediate family are associated under Act 170. As to the contracting under Act 170, we similarly find no violation because Brink Trucking or Brink Trucking Company are not contracts between a public official /employee, member of his immediate family or business with which he or a member of his immediate family is director, officer, owner or holder of stock exceeding five percent of the equity at fair market value. In particular, Brink Trucking was owned by Samuel and Kenneth Brink as to whom there is nothing of record to show that they are minor dependent children. In this regard, since Samuel is married, it appears that at least he is an adult. Thus, since the individuals owning Brink Trucking do not fall within the definition of immediate family under Section 3(c) of Act 170 of 1978, no violation occurred. Similarly, as to Brink Trucking Company, the record only reflects that Samuel Brink has an interest in that corporation. Since there is nothing of record to show that Samuel was a minor dependent child of Brink, Section 3(c) would not apply and hence we find no violation of that provision of the Ethics Law. As to the award of a contract to Michael Brink, Samuel Brink and Brink Trucking Company as to the water reservoir project, we must also find no violations of Section 3(a) and 3(c) of Act 170 for the exact same reasons as noted above. Parenthetically, as noted above, there is no designation of any familial relationship in the Stipulation of Findings as to Michael Brink. The second allegation before us charges a use of office for financial gain /private pecuniary benefit for Brink himself and the businesses with which he or members of his immediate family are. associated. Since this allegation is very generalized and since the seven other allegations relate to specific activities, we will sua sponte dismiss this allegation for the reason that the activities in question are covered by the other seven allegations. The third allegation charges a violation for participation and Brink, 91- 042 -C; 94- 013 -C2 Page 18 approving payments to Brink Trucking and Brink Trucking Company invoices. Preliminarily, we note that this allegation is inherently limited to a conflict but not a contracting issue because it relates to participation in approving invoices. As to the aspect of the allegation controlled by Section 3(a) of Act 170 of 1978, we find no violation because participation in approving invoices related to businesses with which Brink was not associated; in this regard, Samuel and Kenneth Brink as to Brink Trucking and Samuel Brink as to Brink Trucking Company were not dependent children and hence not even members of Brink's immediate family. As to Section 3(a) of Act 9 of 1989, there can be no violation as to Brink Trucking because that company with its fictitious name registration was withdrawn as of May, 1985. As to Brink Trucking Company, which was incorporated by Brink's son Samuel, said business would be one in which a member of Brink's immediate family was associated under Act 9 of 1989. As to Brink Trucking Company, Charts A and B do reflect eight instances of actions by Brink relative to payments for Brink Trucking (Company). Since Brink took such action which was a use of authority of office which resulted in a private pecuniary benefit to Brink Trucking Company, a business with which a member of his immediate family is associated, we find eight technical violations of Section 3(a) of Act 9 of 1989. The fourth allegation charges conduct by Brink of participation in approving payments to himself. The allegation once again inherently is limited to the conflict provision of Section 3(a) of Act 170 and Act 9. In reviewing Charts A and B, supra, three checks were issued to Brink dated January 3, 1984, November 12, 1988 and February 9, 1985. As to the first check, both the signature and endorsement were by Brink; the check was issued as a result of action where Brink seconded and voted in favor of a motion. As to the second check, the record does not reflect any action taken by Brink. As to a third check, Brink was a signatory and co- endorser of the check issued as a result of a motion by Brink and his voting in favor of the motion. Thus, we find two technical violations as to the checks issued on January 3, 1984 and February 9, 1985 under Section 3(a) of Act 170 when Brink used office to obtain a financial gain for himself consisting of those two payments; we find no violation as to the check of November 12, 1988 in that the record does not reflect any action taken by Brink. Turning to Act 9 of 1989, one check dated April 14, 1990 was issued to Brink as payee with Brink as signatory and endorser after the check issuance was authorized by a motion seconded by Brink followed by his vote in favor of that motion. Accordingly, we find a technical violation of Section 3(a) of Act 9 of 1989 as to the issuance of the check of April 14, 1990. The fifth allegation concerns the charge that Brink signed checks payable to himself, Brink Trucking and Brink Trucking Company. As for the reason noted in our analysis of the prior two Brink, 91- 042 -C; 94- 013 -C2 Page 19 allegations, our scope must be limited to the conflict provisions of Section 3(a) of Act 170 and Act 9. As to the portion of the allegation regarding Brink as signatory for checks to himself, that issue has been addressed in the prior allegation regarding his participation in approving payments to himself. Therefore the only remaining issues involve the issue of signing checks payable to Brink Trucking and Brink Trucking Company. Regarding signing checks to Brink Trucking or Brink Trucking Company under Act 170, we find no violation of Section 3(a) for the reason that neither of those two companies under Act 170 are businesses with which Brink is associated. Turning to Act 9 of 1989, our view must be limited to Brink Trucking Company in that the fictitious name for Brink Trucking was withdrawn in 1985. As to Brink Trucking Company, it is a business with which a member of Brink's immediate family is associated. Checks dated January 7, 1991, August 12, 1989, October 14, 1989, January 2, 1990, February 10, 1990, February 11, 1990, February 9, 1991, April 13, 1991 and February 13, 1993 were all issued to Brink Trucking (Company) under the signature of Brink. As to those nine checks, we find technical violations of Section 3(a) of Act 9 of 1989 when Leroy Brink was signatory for checks payable to Brink Trucking Company, a business with which a member of Brink's immediate family was associated. The three remaining allegations relate to the township water reservoir project. The sixth allegation charges the receipt of compensation for performing services as to that project by Brink. As to that project, the record reflects the hiring of Michael and Samuel Brink as well as Brink Trucking Company for the project. However, payments out of the account for the water project also reflect payments to Brink individually by five separate checks. (Fact Finding 48). To the extent that Brink had oversight on this project and therefore hired himself, as is evidenced by payments to himself, it is clear that there was a use of office to obtain a financial gain under Section 3(a) of Act 170 of 1978 and accordingly, we find five technical violations of that provision of the Ethics Law regarding compensation (consisting of five payments listed in Fact Finding 48) that Brink received as to the water reservoir project. We find no violation of Section 3(a) of Act 9 of 1989 in that the activity in question predated Act 9. Lastly, we need not address the contracting provisions which are inherently beyond the scope of this particular allegation. The seventh allegation charges a violation based upon Brink's participation in compensating himself and a business with which he and members of his immediate family are associated in relation to the water reservoir project. As above, the gravamen of this allegation must be limited to only a charge of conflict under Section 3(a) of Act 170 and Act 9. The first part of the specific allegation regarding Brink's participation in compensating himself has already been addressed in the sixth allegation. Therefore, the only issues that need to be addressed are whether there is a Brink, 91- 042 -C; 94- 013 -C2 Page 20 violation of Section 3(a) of Act 170 or Act 9 by Brink as to participation in compensating the business with which he or members of his immediate family are associated as to the water project. Since all such activity predated Act 9 of 1989, there can be no violations of Section 3(a) of Act 9 of 1989 and we so find as to that particular part of the allegation. Regarding Section 3(a) of Act 170 of 1978, there is one payment to Brink Trucking but we find no violation based upon our analysis above where we found that Brink Trucking was not a business with which Brink was associated. As to the eighth and final allegation, the charge is that Brink violated the Ethics Law by signing checks payable to himself and the business with which he or members of his immediate family are associated in relation to the township water project. Confining our analysis to only the conflict provisions, given the nature of this particular allegation, we find three instances where Brink acted as signatory for checks made payable to himself. These three checks were issued on December 10, 1988 and on January 3, 1989 (two checks issued on the latter date). This activity occurred under Act 170 of 1978 and accordingly, we find three technical violations of Act 170 of 1978 as to such conduct. There was a use of office by Brink as signatory on the checks which were made payable to himself which resulted in a financial gain to Brink thereby constituting technical violations to those three instances of conduct. As to checks payable to the trucking firms under Section 3(a) of Act 170, we find no violations because the trucking firms are not businesses with which associated under Act 170. As to Section 3(a) of Act 9 of 1989, we find no violation in that the conduct in question predated Act 9. The parties in this case have submitted a consent agreement wherein they stipulate to technical violations as to certain conduct, no violations as to various other conduct, a restitution amount of $1,380 as per Fact Finding 49, and the invalidity of the consent agreement if not accepted by this Commission. Although we accept the restitution figure and the resolution of the case via technical violations as to some actions and no violations as to others, we find a lesser number of technical violations. Since we believe that the disposition of this case procedurally should be by consent agreement, we have attempted through the above analysis to resolve the allegations under the Ethics Law, Act 170 of 1978 and Act 9 of 1989, as we must, but at the same time give overall effect to the consent agreement. We do note that the parties have the reconsideration mechanism available to them if they choose not to accept the above resolution of the case which we believe is a fair and appropriate disposition of the case as contemplated by the parties and as reviewed by this Commission. Brink, 91- 042 -C; 94- 013 -C2 Page 21 If reconsideration is not requested within fifteen days of issuance of this Order, this Order shall become final and shall become available as a public document. Considering the totality of facts and circumstances in this case, the technical violations, and the lack of any specific intent to violate the Ethics Law, we will take no further action in this case provided Brink makes timely restitution. Failure to make the agreed restitution in a timely manner, payable through this Commission to the order of Chest Township, will result in the initiation of an order enforcement action. IV. CONCLUSIONS OF LAW: 1. Leroy Brink as a Chest Township Supervisor is a public official subject to the provisions of Act 170 of 1978 and Act 9 of 1989. 2. Eight technical violations of Section 3(a) of Act 9 of 1989 occurred when Brink used the authority of office as to payments to Brink Trucking Company, a business with which a member of Brink's immediate family is associated. 3. a. Two technical violations of Section 3(a) of Act 170 of 1978 occurred when Brink used public office as to the issuance of two checks payable to himself which was a financial gain other than compensation provided by law. b. A technical violation of Section 3(a) of Act 9 of 1989 occurred when Brink used the authority of office as to the issuance of a check to himself which was a private pecuniary benefit. 4. Nine technical violations of Section 3(a) of Act 9 of 1989 occurred when Brink signed checks payable to Brink Trucking Company, a business with which a member of Brink's immediate family was associated. 5. Five technical violations of Section 3(a) of Act 170 of 1978 occurred when Brink, as supervisor with oversight responsibility as to a township water reservoir project, used office for a financial gain consisting of five payments he received for services performed as to the project. 6. Three technical violations of Section 3(a) of Act 170 of 1978 occurred when Brink used office for a financial gain to act as signatory for three checks payable to himself for services performed as to the water reservoir project. 7. There are no violations of Act 170 or Act 9 as to all Brink, 91- 042 -C; 94- 013 -C2 Page 22 remaining allegations. 8. Brink shall be ordered to pay restitution in the amount of $1,380.00, through this Commission to Chest Township. In re: Leroy Brink File Docket: Date Decided: Date Mailed: ORDER NISI NO. 953 JAMES M. HO 91- 042 -C; 94- 013 -C2 12/16/94 12/27/94 1. Eight technical violations of Section 3(a) of Act 9 of 1989 occurred when Leroy Brink as a Chest Township Supervisor used the authority of office as to payments to Brink Trucking Company, a business with which a member of Brink's immediate family is associated. 2. a. Two technical violations of Section 3(a) of Act 170 of 1978 occurred when Brink used public office as to the issuance of two checks payable to himself which was .a financial gain other than compensation provided by law. b. A technical violation of Section 3(a) of Act 9 of 1989 occurred when Brink used the authority of office as to the issuance of a check to himself which was a private pecuniary benefit. 3. Nine technical violations of Section 3(a) of Act 9 of 1989 occurred when Brink signed checks payable to Brink Trucking Company, a business with which a member of Brink's immediate family was associated. 4. Five technical violations of Section 3(a) of Act 170 of 1978 occurred when Brink, as supervisor with oversight responsibility as to a township water reservoir project, used office for a financial gain consisting of five payments he received for services performed as to the project. 5. Three technical violations of Section 3(a) of Act 170 of 1978 occurred when Brink used office for a financial gain to act as signatory for three checks payable to himself for services performed as to the water reservoir project. 6. There are no violations of Act 170 or Act 9 as to all remaining allegations. 7. Brink is ordered to make restitution of $1,380.00 in a timely manner through this Commission to Chest Township. a. No further action will be taken by this Commission if the restitution is made in a timely manner. b. Failure to make restitution in a timely manner will result in the initiation of an order enforcement action. BY THE COMMISSION, IR