HomeMy WebLinkAbout888 MolnarSTATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
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In Re: John R. Molnar : File. Docket: 92- 012 --C2 -
: Date Decided: June 28,
Date Mailed: June 30, 1993
Before: James M. Howley, Chair
Daneen E. Reese, Vice Chair
Dennis C. Harrington
Roy W. Wilt
Austin M. Lee
Allan M. Kluger
Joseph W. Marshall, III
The State Ethics Commission received •,a complaint regarding a
possible violation of the State Ethics Act, Act 9 of 1989, 65 P.S.
S401 et sec. -Written no of the specific allegation (s) was
served at the; commencement of the investigation. A Findings Report
was issued and - served, ':Yipon completion..of-the investigation, which
constituted the :Complaint by the Investigtiontpivision. An Answer
was filed and a hearing waived. AConsect `Order was submitted
by the parties-.:t.° the Commissim for constideration which was
subsequently approved. This adjudication 01 _the Commission is
hereby issued which sets forth the individual Allegations, Findings
of Fact, Discussion, Conclusions of Law and Order.
This adjudication is final and will be -made available as a
public document fifteen days after issuance. However,
reconsideration may be requested which will -defer public release of
this adjudication pending action on the 'request by the Commission.
A request for reconsideration, however, does not affect the
finality of this adjudication. A reconsideration request must be
received at this Commission within fifteen days of issuance and
must include a detailed explanation of the reasons as to why
reconsideration should be granted in conformity with 51 Pa. Code
§21.29(b) .
The files in this case will remain confidential in accordance
with Act 9 of 1989, 65 P.S. §408(h) during the fifteen day period
and no one unless the right to challenge this'Order is may
violate confidentiality by releasing, discussing or circulating
this Order. However, confidentiality does not preclude discussing
this case with an attorney at law. -_
Any person who violates confidentiality of the Ethics Act is
guilty of_ a. misdemeanor subject to ar fine -of' not more than $1,000
or imprisounent, fbr not more than one year, 65 P.S. §409(e).
MQ 24- 012 -C2
Page .2
I. LEGATION:
That John R. Molnar violated the following sections of the
Public Officials and Employees Ethics Act, (Act 9 of 1989), when a
firm With `which he is associated, Molnar Service Company,
contracted with Springdale Borough without an open and public
processi 'and when he voted to make payments to Molnar Service
Company:
Section 3. Restricted Activities.
(a) No public official or public employee
shall engage in conduct that constitutes a
conflict of interest. 65. P.S. 403(a).
(f) No public Official or public employee
or spouse or child or any business in
which the person or his spouse or child is
associated shall enter into any contract
valued at $500.00 or more with the
governmental body with which the public
official or public employee is associated or
any subcontract valued at $500.00 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 pudic process,
including prior publ -id notice and subsequent
public disci -osire of all proposals considered
and contracts awarded. In such a case, the
public official- or public employee shall ,riot
have any supervisory or overall responsibility
for the implementation or administration• of
the contract piny contract or subcontract
made in violation of this subsection -shall be
voidable by a court of competent jurrsdiction
if the is comtnerced within ninety days of`
the' making of the Contract or subcontra°ci.
65. P . - S . 4O-3 (f) .
That John R. Molnar- -, as a Springdale Borough- Cou
failed to-file a Stater ent. of Financial Interest by Ma ' 1:., 1590,
for calendar year 1989, iii violation' of the following provision of
Act 9 of 1-98.9:
Section 4 ..State3nent' of. f .naric aj - in'teres s
required toy he - filed
(•a) Each public official ° of= 4
Commonwealth shall file a statemeff at
Molnar, 92-012-C2
Page 3
financial interests for the preceding calendar
year with the commission no later than May 1
of each year that he holds such a positiow and
of the year after he leaves such a position.
Each public employee and public official of
the Commonwealth shall file a statement of''
financial interests for the preceding calendar
year with the department, agency, body or
bureau in which he is employed or to which he
is appointed or elected no later than May 1 of
each year that he holds such a position and of
the year after he leaves such a position. Any
other public employee or public official shall
file a statement of financial interests with
the governing authority of the political
subdivision by which he is employed or within
which he is appointed or elected no later than
May 1 of each year that he holds such a
position and of the year after he leaves such
a position. Persons who are full -time or
part -time solicitors for political
subdivisions are required to file under this
section. 65 P.S. §404(a).
II. FINDINGS:
1. John R. Molnar serves as a member of Springdale Borough
Council.
a. Molnar was appointed to council on December 30, 1988.
b. Molnar previously served on council during the 1970's and
early 1980's.
c. Molnar has been appointed Council President annually
since January, 1989.
2. Molnar Service Company is in the heating and air - conditioning
business.
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a. The business address is 944 Lincoln Avenue ", Springdale,
PA.
b. The company services both residential and commercial
customers.
c. Council Member John Molnar, Sr., operated Molnar Service
Co. until 1979.
d. Molnart s son, Jahn R . ,Mt 1na .Jr-.`- reformed Molnar Service
Co .: _. in :l .a-pproximate1y . /981 utilizing . - a . :separate tax
Molnar, 92-012-C2
Page 4
identification number.
e. Around 1987, Council Member John Molnar Went . tc work for
his soh i John R. Molnar, Jr. at Mblnar SerVice Company.
3. Article of Incorporation, on file with the Penns
Department of State, indicate the followin4 fibr the Molnar
Service Company.
a, Date of incorporation: June 25, 192.
b. Incorporators: 500 shares common Stock eaCh;
John R. Molnar
426 James Street
Springdale, PA 15144
John R, Molnar, Jr.
411 North Street
Springdille, PA 15144
SedretarY=Treasurdi
President
c. BUSin@ss address: 944 Linodln kienUe, Springdale, PA
15144,
d. The corporation has never filed a cdrpbrate tax return or
had any corporate meetings.
4. Allegheny County Deed Registry and tax recofds indidate,that
Council Member John R. Molnar and his Wife; Donna, L. Molnar,
own the building and property at 944 Lincoln Avenue, the
location of Molnar SerVide Company.
5. Molnar Service Company performed heating and-air conditioning
repair and services for Springdale Borough.
6. Springdale Borough had three building fOf which it is
responsible: A municipal Complex., a borough garage and the
water plant.
a. •The municipal complek consists of a gymnadiliff, borough
offices, police station- and comMunity center.
b. Maintenance and upkeep is handled by the Proper
Chairman, Alvin Shodp di in his absence ihe B�i
Secretary.
7. Heating and air conditioning repairs and SerVice lime; tYltitneti
without bids.
a. Other services including' pluMbin4, electrical, 4e.A#AI
contracting and automobile repair services are Obtained
Molnar, 92- 012 -C2
Page 5
without bids by borough employees.
8. Springdale Borough Council meeting minutes do not reflect any
official action taken by Council to hire a heating and air
conditioning company for borough repair work.
a. Borough council minutes do not action taken for
the hiring of any of the services outlined in 7(a).
9. Molnar Service Company maintains two accounts at Southwest
National Bank: Business account #46- 070362 and payroll
account 46- 083243.
a.. Signatories on these accounts were John R. Molnar, Jr.,
and Donna L. Molnar from September 16, 1983, through
September 26, 1991.
b. Signatories on these accounts were changed to John R.
Molnar Jr., and Michelle A. Smajda on September 26,
1991.
( 1 Michelle A. Smajda is the daughter of John R.
Molnar, Sr.
c. Regular payments were made from
070362, into payroll account #46-
10. Council Member John R. Molnar, Sr., is
the Molnar Service Company, receiving
account #46- 083243.
a. Weekly net payments totalled:
YEAR
1988
1989
1990
1/91 -7/91
8/91
9/91 -1/92
1/92 -6/92
WEEKLY
$459.74
$460.34
$460.50
$460.50
$483.57
$474.75
$477.27
business account #46-
083243.
a salaried employee of
regular payments from
ANNUAL
$ 2,298.70
$ 23,477.34
$ 23,024.84
$ 24,755.28
$ 12,406.50
b. Forty -two payroll checks payable to Council Member John
R. Molnar, Sr. were deposited in and credited to
Pittsburgh National Bank account #02697032; Molnar Rental
& Leasing Company.
c. The remaining payroll checks issued to Molnar,. Sr., were
cashed or deposited by John Molnar or Michelle Molnar
(SiTrajda).
Molnar, 92- 012 -C2
Page 6
11. Three loan re- payments were made to Council Member John R.
Molnar, Sr., from Molnar Service Company business account
.,(46- 070362) as follows:
Check # Date A1Pr
7790 9/14/90 $1,800.00
8988 8/12/91 $1,500.00
9555 1/13/92 $5,400.00
a. The reverse side of check #9555 was deposited into Molnar
Rental & Leasing account #02697032 (Pittsburgh National) .
(Refer to Finding #13).
12. Molnar Rental & Leasing Company is a partnership between John
R. Molnar, Sr., and his wife Donna L. Molnar.
a. Molnar Rental & Leasing operates the property located at
944 Lincoln Avenue, Springdale, PA.
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b. This is the property that houses Molnar Service Company.
13. Molnar Rental & Leasing Company received monthly or bi- monthly
rental payments from Molnar Service Company account #46- 070362
for the use of 944 Lincoln Avenue as follows:
a. YEAR AMOUNT
1988 $ 2,250.00 (From November)
1989 $ 20,250.00
1990 $ 25,705.38
1991 $ 29,700.00
1992 $ 11,742.00 (To May)
b. A signed lease was in effect for the rental of this
property.
14. All payments from Molnar Service Company were deposited in and
credited to Pittsburgh National. Bank account #026970321 Molnar
Rental & Leasing Company.
a. The checks issued from Molnar Service Company to Molnar
Rental. & Leasing Company (for rent) were disbursed from
the same account into which the Borough funds were
deposited.
15. Between February~ 17 , 1589, and. October- 1, 1992, Molnar Service
Company was utilized by the Borough 110 times for repairo,
Breakdown by year:
1989 17
Molnar, 92- 012 -C2
Page 7
1990 45
1991 39
As of 10/1/92. 9
16. Borough financial records include disbursements to the Molnar
Service Company for service repairs on faulty equipment.
a. All of the checks contain the facsimile signature of John
R. Molnar as council president. The checks were stamped
by the borough secretary.
b. The back side contains the deposit stamp of the Molnar
Service Company with the following:
Pay to the order of
Southwest National Bank of PA
For Deposit Only
Molnar Service Co.
043303887 46 070362
c. 46070362 is Molnar Service Company's business account.
17. Springdale Borough records include repair invoices from the
Molnar Service Company, 944 Lincoln Avenue, Springdale, PA.
15144.
Invoices breakdown charges by parts and labor. Individual
invoices o'er $500.00 include: ..
Invoice Date Parts Labor Total
10/24/89
11/20/89
12/01/$9
12/29/89
01/31/90
9,5114/90
03/05/91
03/11/91
43/12/91
03/15/91
11/20
Totals:
a. 1909 . $ 9,847.11
$ 2.8.92 $ 239.0.0. $ 537.92
2,585.28 203.60 2,788.28
2,553.62 96.00 2,649.62
5 64.00 578.00
2,304.00 128.40 2,432.00
2 368.00 2,733.74
420.97 586.25 1,007.22
619.30 437.50 1,056.80
335.65 218.75 554.40
432.73 148.75 581.48
503.43 87.50 590.93
$12,933.64 $2,576.75 $15,510.39
18. Springdale Borough records include 1099 miscellaneous income
statements issued to Molnar Service Company, 944 Lincoln
Avenue, Springdale, PA 15144. These include all repairs
performed (both over and under $500):
Molnar, 92- 012 -C2
1?'e 8
b. 1990 $1,0,105.26
c. 1.99 $ 8,154.33
19. Borough payments to the Molnar Service Companr went kilto
Molnar Service Company business account #46- 071162..
a. John Molnar, Sr., received 'loam, rental, and
reimbursement payments from this account. ( Refeer to
Finding #12, 14).
b. This account was used to fund Molnar Service Company's
payroll account #46- 083243 which Molnar, Sr., drew a
salary from. (Refer to Finding #10).
20. Bills payable are compiled into the borough's monthly
treasurer's report.
a. Treasurer's reports are voted on in their entirety.
b. Roll call votes were not taken to approve treasurer
reports.
c. Bills are paid prior to the approval of the treasurer's
report. This has been a borough practice since
approximately 1974.
21. Council meeting minutes do not include any recorded
abstentions on the part of Molnar regarding the treasurer's
report.
a. Molnar did not vote on the treasurer's report.
22. Molnar states that he does not participate in council voting
action unless a roll call vote is taken.
a. Molnar denies participating in the approval o
treasurer's reports.
Molnar contends that he keeps quiet when the voice vote
is taken.
b.
23.. Treasurer reports are included in borough. council members
monthly' meeting packets.
a, • Council members generally receive their meeting packets
several days prior to the meeting but have reined_
packets the day prior to or the day of the. meeting.
24. Council members,. Mark. Stanton, Robert Gneiting and Rudolph:
Kubecka, informally questioned the relationship between
Molnar, 92- 012 -C2
Page 9
council President Molnar and the Molnar Service Company.
a. Meeting minutes do not include any recorded discussion on
the matter.
25. Borough Solicitor C. Vidra rendered a written opinion on April
2, 1991 to council president John Molnar.
a. The opinion was in response to an inquiry by Molnar
concerning his position as an employee of the Molnar
Service Company.
b. Vidra based his opinion in part on his understanding that
the Molnar Service Company does some "sporadic" or
"occasional" work, rather than routine maintenance for
the borough; and that Molnar's maintenance charges did
not exceed $500.00.
c. Vidra advises Molnar that the provisions of the Ethics
Law apply to him because of his employment and the
definition of immediate family.
d. Vidra recommended bids be sought for a monthly
maintenance contract.
e. Regarding voting, Vidra paraphrased the State Ethics Act,
"The employee or official in question may vote on the
contract only if the vote is needed to break the tie or
if his vote is needed to make a majority-or other
required vote attainable ". In these situations, the
person involved must publicly disclose his interest and
may not have any supervisory or overall responsibility
for the implementation or administration of the contract.
26. Solicitor Vidra was unaware of the volume of business that was
being done with the Molnar Service Company when he issued
Molnar, Sr., the opinion.
27. No action was taken on any of Solicitor Vidra's
recommendations.
a. No maintenance contract was put out for bid.
28. Molnar Service Company continued to service Springdale
Borough.
a. Molnar, Sr., continued to draw a salary from the
business.
Findings 29 -31 relate to the second allegation. Findings #1
-- -through 2t are incorporated by reference.
Molnar, 9..012 -C2
Page 10
2,, 8gr9ugh records do not include any Statements of Financial
Interest filed by May 1, 1990, . for calendar year 1989.
30. fitatements .ot Financial Interest on file with Springdale
Borough include the following filings for John R. Molnar:
a. Calendar year: 1988
Filed: 3/30/89 on SEC Form 1/29
Position: Councilman
Occupation: H.V.A.C. Service Engineer
Creditors: South West National Bank, Tarentum, PA
11.5%
Direct /Indirect Income: Molnar
Lincoln, Springdale, PA; Molnar
Lincoln, Springdale, PA
Financial Interest in any Busin
Leasing
All other financial interest: None
b. Calendar year: 1989
No forms filed
Service Company, 944
Rental & Leasing, 944
ess: Molnar Rental &
c. Calendar year: 1990
Filed: 3/25/91 on SEC Form 1/90
Position: Council member
Profession: Steamfitter
Creditors: PNB, Pittsburgh, 12.75%
Direct /Indirect Income: Molnar Service Company, 944
Lincoln Avenue, Springdale, PA; Molnar Rental & Leasing,
944 Lincoln Avenue, Springdale, PA
Office /Directorship or Employment in any Bu ineSS:
Molnar Rental & Leasing, partner
Financial Interest in any business: Molnar Rental &
Leasing, partner, 944 Lincoln Avenue, Springdale, P
c, Calendar Year: 1991
Filed: 3/10/92 on SEC Form 1/92
Position: Councilman
Occupation: H.V.A.C. Service Engineer
Real Estate Interest: 944 Lincoln Avenue, Springdale,
426 James St. Springdale
Creditors: PNB 8.5 %, Prime + 1 112 %, 10.5%
Direct /Indirect. Income: Molnar Service Co., • Molnar
Rental & Leasing
Qf /Directorship or Employment in any BuainesS:
Molnar Rental & Leasing, Partners
Financial Interest in any business:. Molnar Rental &
Leasing, Partner
All other Financial Interest:. None
31. Council. Member John R. Molnar is am employee and corporate
Molnar, 92- 012 -C2
Page 11
officer, as secretary- treasurer, for Molnar Service Company.
a. Council Member John R. Molnar owns the building that
Molnar Service Company rents.
III. DISCUSSION:
As a Springdale Borough Council Member, John R. Molnar,
hereinafter Molnar, is a public official as that term is defined
under Act 9 of 1989. 65 P.S. 5402. As such, his conduct is
subject to the provisions of the Ethics Law and the restrictions
therein are applicable to him.
Initially, it is noted that Section 9 of Act 9 of June 26,
1989 provides, in part, as follows:
This amendatory act shall not apply to
violations committed prior to the effective
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 violation occurred prior thereto.
Since the occurrences in this case transpired' after the
effective date of Act 9 (June 26, 1989), we must' apply the
provisions of Act 9 to determine whether the Ethics Act was
violated.
Under Section 3(a) of Act 9 of 1989 quoted above, a public
official /employee 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:
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
¥ci:nar., 92- 012 -C2
Page 22
a de minimis economic impact or which affects
to the same8gree a class consisting of . the
general public or a subclass cohsisting of an
industry, occupation or other group which
includes the . pUb1 - ic official or public
employee, a member or his immediate family or
a business with which he or a member of his
immediate family is associated. 65 P.S. 4402.
In addition, Section 3(f) of Act 9 of 1989 s:pecifica .ly
provides in
p part that no public official /employee or spouse Or
child or business with which he or the spouse or child is
associated may enter intt 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 /employee is associated unless the contract is awarded
through an open and public process.
Section 4(a) of the Ethics Law quoted above requires that each
public official /employe must file a Statement of Financial
Interests (FIS) for the preceding calendar year that he hdlds such
position and for the year after he leaves such position.
The issues before us are whether Molnar Violated tither
Section 3(a) or Section 3(f) of Act 9 of 1989 as to services which
were performed by Molnar Service Company for the Borough without an
open and public processes and secondly whether Molnar violated
Section 4 as to the failure to file an FIS for the calendar year
1989.
The findings reflect that Molnar has been a Member _9f
Springdale Borough Council since his appointment in Decern er, 1918:
In a private capacity, Molnar is associated with the Molnar Servr
Company, a heating' and air conditioning business operated by Moln
until 1979. In 1981, a new tax identification innitber for Mo'lntr
Service was obtained for Mal=nar's Son, John R. Molnar Jr.;
1987, Molnar went to work for his son at that company. Molrt'
Service- Company was incorporated in June, On with Main
designated as the Secretary /Treasu -rer and 944 Avenue;
Springdale,. Pennsylvania as the business address. The business'
location fox Molnar Service Company is at a property owned 1
Molnar- and his wife.
The, work, that Molnar Service Company performed for Springdal*
Borough' was done without bidd=ing . However • vailotts Boro
services including plumbing electrical , general= cotitra�i:"ng, .
automobile repair services are obtained wi.itiout• bids' throu *ly
contacts made by Borough= employees. A review: of the Borough
Council meeting minutes reflect no official action- b ' Council' to
hire any heating and air conditioning cbiapariy for Bt tough repair
Molnar, 92- 012 -C2
Page 13
work.
Borough financial records reflect disbursements to Molnar
Service Company for service and repairs of Borough equipment. The
disbursement checks contain the facsimile signature of Molnar as
Council President. As to the bill payment process, invoices are
compiled on a monthly basis by the Borough Treasurer in a report
which is voted on in its entirety. Roll call votes are not taken
to approve the Treasurer's reports in that bills are paid prior to
the approval of said report. As to bill approvals, the Council
meeting minutes do not include any recorded abstentions on the part
of Molnar regarding the Treasurer's report even though Molnar did
not vote.
On one occasion several other Council Members questioned
Molnar regarding his relationship with Molnar Service Company. The
Borough Solicitor rendered Molnar a written opinion on April 2,
1991 about his position as an employee of Molnar Company;
however, the Solicitor's opinion was based, upon his
that the facts were such. that Molnar Service Company was only
Sporadically used- for routine maintenance with ... charges not
exceeding $:SAO. The Solicitor was unaware of. the volume of
business which was done by Molnar Service. Company nevertheless
recommended tiat.such monthly maintenance contracts be put out for
bid.
Finally=,. as to the relationship between Molnar and Molnar
Service Company from 1988 forward, it does appear that Molnar was
a salaried employee of the company. Further, Molnar and his wife
ran a partnership under the name of Molnar Rental and Leasing
Company which received a monthly rental for Molnar Service Company
for the use of 944 Lincoln Avenue. Various Borough checks in
payment to Molnar Service Company were deposited in Pittsburgh
National Bank account from which disbursements from Molnar Service
Company were paid to Molnar Rental and Leasing Company as rental
payments.
As to the FIS's which Molnar filed, a review of the Borough
records reflects filings of FIS's for the calendar years 1988, 1990
and 1991 but not for the calendar year 1989.
In applying the provisions of the Ethics_ Law to the above
findings, we do not find a violation . of Section: 3(a) of Act 9 of
1989. In order to sustain a violation, the findings must establish
a use of authority of office to obtain.a private pecuniary benefit
for Molnar, a member of his immediate family, or a business with
which he or a member of his immediate family is associated. The
terms "immediate family" and "business with which associated" are
defined as follows:
Section 2. Defin.itions
ggigm., 92-012-C2
Pte 14
sguainess with which he i associated."
Affy bUsiftess ins wh&th the persam or a member
of the persOn's immediatel family is a
dixfttor, offiCer, owner employee or has a
filii.ancial interest.
"Immediat* family." A parent, spouse,
child, brdtheir ar ffister.
P.S. §402.
It is cleat that the payments made by the Borough to Molnar
Service Company constitute a private pecuniary benefit. In
additioh, the private pecuniary benefit inured to Molnar, a member
cif his in%mediate, and a business with which he and a member of his
liftediat es. family is associated.. However, there is no showing of
feedOrd that there was a use Of authority of office by Molnar which
i§ & techli§ite element for egtahlishing a violation. Therefore, we
flAS A* Violation as to gection 3(a) of At 5 of 1999.
A4 to Sedtion 3(f) of Act 9 of 1989, we find a technical
Vidlatien in that Molnar Service Company, a business with which
Mdlfiett &fid his ohildren, John, Jr, and Michelle, are associated,
pefidfted contractual services for the Borough which were in excess
df U and were it awarded through an open and public process.
In his regard, other services for the Borough, such as plumbing,
eiedttical, general contracting, and automotive repair services,
Were also done without bids through contacts initiated by Borough
eMpldyees. Under the totality of these circumstances, we find a
technical violation. Our decision is consonant with Chermak, Order
887, whereih we found a technical violation of Section 3(f) of the
Ethics under circumstances where the automotive repair business
of a Mbnicipal official both prior to and during his tenure on
council provided services to the borough without an open and public
process where the practice of the borough had been to award such
contracts without bidding.
as tO the PIS allegation, the record reflects that
Molnar did not file an EIS for the calendar year 1989. On that
basis, we find a violation occurred when Molnar failed to file an
FIS for the calendar year 1989 as required by Section 4 of the
Ethics Law. Molnar is directed within thirty (30) days of issuance
of this Order t� filo an PIS for the calendar year 1989.
Cbmpliande with the foregoing will result in the closing of this
case with no further aCtiOn. Failure to comply will result in a
directive of this Commission to institute an order enforcement
action.
TV. CONCLUSIONS. OF_LAW:
1. John R. Molnar, as a Springdale Borough Council Member, is a
Molnar, 92- 012 -C2
Page 15
public official subject to the provisions of Act 9 of 1989.
2. Molnar did not violate Section 3(a) of Act 9 of 1989 as to
services performed for the Borough by Molnar Service Company,
a business with which he and a member of his immediate family
is associated, in that there was no use of authority of
office.
3. A technical violation of Section 3(f) of Act 9 of 1989
occurred when Molnar Service Company, a business with which
Molnar and his child are associated, contracted with
Springdale Borough for services in excess of $500 without an
open and public process.
4. A violation of Section 4 of Act 9 of 1989 occurred when Molnar
did not file a Financial Interests Statement for the calendar
year 1989.
In Re: John R. Molnar File Docket: 92-4312-C2
Date Decided ;, urta 28. 19/3
Date Mailed,: June.. 30, 1993
ORDER NO. 888
1. John R. Molnar, as a Springdale Borough Council Member, did
not violate Section 3(a) of Act 9 of 1989 to services
performed for the Borough by Molnar Service Company, a
business with which he and a member of his immediate family is
associated,, in that there was no use of authority of office.
2. A technical violation of Section 3(f) of Act 9 of 1989
occurred when Molnar Service Company, a business with which
Molnar and his child are associated, contracted with
Springdale Borough for services in excess of $500 without an
open and public process.
3. A violation of Section 4 of Act 9 of 1989 occurred when Molnar
did not file a Financial Interests Statement for the calendar
year 1989.
4. Molnar is directed within thirty (30) days of issuance of this
Order to file a Statement of Financial Interests for the
calendar year 1989.
5. Compliance with Paragraph 4 will result in the closing of this
case with no further action.
6. Failure to comply with Paragraph 4 will result in a directive
of this Commission to institute an order enforcement action.
BY THE COMMISSION,
JAMES M. HOWL . 2R