HomeMy WebLinkAbout814 Danylor
In Re: David Danylo
STATE ETHICS COMMISSION
308 FINANCE BUILDING
HARRISBURG, PENNSYLVANIA 17120
1
: File Docket: 90- 034 -C2
: Date Decided: August 23, 1191 •
Date Mailed: September 3; 199f
Before Robert W. Brown, Chair
Dennis C. Harrington, Vice Chair
James M. Howley
Daneen E. Reese
Roy W. Wilt
Austih M. Lee
James P. Gallagher
The State Ethics Commission received a complaint regarding a
possible violation of:the;State Ethics Act, Act 9 of 1989, 65 P.S.
401 et. seq. 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
Qnstitnted the Complaint by the Inv .estigat'ion Division. " An Answer
was and a hearing 'waived. 'A The record is complete. This
adjudication tie' Commission' is hereby i sued' 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`pubblic
document fifteen days after. issuance. However, reconsideration may be
requested which will defer public release of this adjudication penling
action on the request by the Commission. A request for
recOhsideration, however, , does " not affect the finality of this " ' 1
adjudication. A reconsideration request must be received at
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 52.38.
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 waived, 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 a fine.of not more than $1,000 or
imprisonment for not more than one year, 65 P.S. 409(e).
I. ALLEGATION:
That you, a Councilman for Monaca Borough, Beaver County,
violated the following provisions of the State Ethics Act (Act 9
of 1989), when you participated in decisions of borough council
to award a contract to C.T. Stefanik, Inc. and then acted as a
subcontractor for C.T. Stefanik in relation to that contract; and
when you participated in council decisions to expedite payments
to Stefanik:
Section 3. Restricted Activities
(a) No public official or public employee
shall engage in conduct that constitutes a
conflict of interest. 65 P.S. §402(a).
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 member or his immediate family or a
business with which he or a member of his
immediate family is associated. 65 P.S. 5402.
II. FINDINGS:
1. David Danylo serves as a member of the Monaca Borough
Council, Beaver County, Pennsylvania.
a. He has served in said position since January 1988.
b. He serves as Chairman of the Borough's Water
Committee.
c. He also served on the Recycling, Building and
Grass Committees and the Parking Authority.
2. The Water Committee was generally responsible for overseeing
the operation of the borough's water system and for
reviewing and discussing ongoing projects as well as new or
proposed policies and handling complaints from the general
Danylo, 90- 034 -C2
Page 3
public.
a. The chairman is responsible, for overseeing the
committee meetings, signing bills, setting the
agenda'as well as other committee actions
3. David :Danylo is the sole owner of the Dependable Plumbing &
Heating Company located in Monaca, Pennsylvania.
a. Danylo is the sole employee of the company except
for part -time help which is utilized on an as
needed basis.
4 r
b. The company has been in business for approximately
eight years.
c. Danylo is certified as a Master Plumber.
4. In 1989, the borough initiated a rehabilitation and
extension of the borough water system.
5. The 'records of Monaca Borough reflect that the Borough
applted for and received a PENNVESTioan to undertake the
Water project'which began in 1989.
•
The project ''was ,dlwided up into four phases each
of which was advertised for bid.
The' Pennsylvania 'Infrastructure Investment
Authority ( PENNVEST) is a Commonwealth entity that
was created to assist in funding the acquisition
construction, improvement, expansion extension
repair or rehabilitation of all or part of any
facility or system for the collection treatment or
disposal of waste water or for the supply...
treatment storage or distribution of drinking
water.
6. Minutes of the Monaca Borough Council meetings reflect the
following actions taken in regard to funding the proposed
Water Project.
a. May 9,
PENNVEST Program.- Motion,was made in' Neiman,
seconded`by Danylo, authorizing approval to submit
an application to the Commonwealth qQfPennsylvania
for funding assistance under the :.PENNVEST
Motion carried unanimously.
Present: Primo, busold, White, Simpson, Nicki,
11 4Y 1 , 1 04-6941 , 434-C2-
Pag 4
AL
b r
Rroskey, Neiman, Rossy, Manzo and Danylo
June-11,, 1988:
Present:
Simpson,
c. February
27, 1989:
V ) 7 ! v
Motion ras made by Kroskey, seconded by Neiman, to
read Resolution 14-88. Motion carried
'm amSous1y r
/ 4PC1 ' .1
Resolution 1+788: ' that the Borough of
Monaca shallbe, and the same hereby are
lauthorized the sum of $1,796,053.00
from the Pennsylvania Infrastructure Investment
Authority, upon such terms and for such period as
shall be required by said Pennsylvania
Infrastructure Investment Authority for the
purpose of financing/partially financing the
construction, rehabilitation and extension of the
drinking water supply system, and to give such
security as shall be required by the said
Pennsylvania Infrastructure Investment Authority,
and in connection therewith to pay for such
professional services and other necessary expenses
incurred in connection with obtaining such
financial assistance. Said Borough of Monaca is
hereby authorized to execute all certifications
and documents in the application, processing and
security of said application.
Motion was made by Neiman, seconded by White, to
accept Resolution 14-88 as read. Motion carried
unanimously.
Nicki, Kroskey, Primo, Dusold, White,
Neiman, Rossy, Manzo and Danylo
Rroskey made the motion to read the heading only
of Ordinance No. 783A, third and final reading.
Neiman seconded the motion. Motion carried
unanimously.
Ordinance No. 783-A:. An Ordinance of the Borough
of Monaca, Beaver County, Pennsylvania, amending
Ordinance No. 783, which authorized the issuance
of a general obligation note to the Pennsylvania
=, Infrastructure Investment - Authority in the amount
oti,$1,841,283.00, by adding Section VII (a) ;,,
providing for the creation of4 sinking fund and
the designation of a sinking fund depository and
v Section VIII to reflect the note shall
Danylo, 90,034-C2
Page .5
be issuedat par.
NeimaknAhen made the 14c4ion to accept Ordinance
)„...". No. 2 Motion Uas-seconded by Kroskey.
_..
- Motion carried unanimously
. ,
Present: Nicki Kroskey, Primo, White, Neiman,
Rossy and Manz°
Absent; Dusold, Simpson and Danylo . ,.
, ..
Peinzuarv- 12, 1990:
Motion was then made by Danylo, seconded by
Pranskey, for authorization, for Lennon, Smith
Souleret Engineering, Incorporated to prepare
plans and specifications for additional water
improvement projects under the PENNVEST Program.
Motion carried unanimously.
Motion was made by Danylo, seconded by Pranskey,
for approval of the Engineering agreement with
Lennon,. Smith, Souleret Engineering, Incorporated
far the purpose of preparing engineering
requirements for additional water related project,
under the PENNVEST Program. Motion carried
unanimously.
Present: Dusold, Pranskey, Mickey, Javens,'.
Taormina, Manzo, Primo and Danylo
Absent: Kroskey and White
e. April 9, 1,990:
f. May 14, 1990:
T.'
'1*Y
On April 4, 1990, a letter from PENNVEST statipsc
that the $399,055.00'was approved. -.
•
Present: Mickey, Dusold, Primo, Pranskey, Javens,
Kroskey, Taormina, Manzo, White and Danylo
Motion to read. Resolution No. 10-90, heading only,
was made by Mickey, seconded by Taormina. Motion
carried unanimously.--.
Resolution No. 10-90: A Resolution of the
Borough of Monaca, Beaver' County,
Pennsylvania finding that the sale by
negotiation of a General Obligation Note in
Danylo, 90- 034 -C2
Page 6
the amount of $399,055.00 the Pennsylvania
Infrastructure Investment Authority is in the
. best financial interest of the borough; and
accepting the written offer of;the
Pennsylvania Infrastructure investment
Authority to loan the aforesaid, sum.
Motion to accept Resolution No. 10 -9,p was then
made by Mickey, seconded.by Taormina', Motion
carried unanimously.
Motion to read Resolution No: 11 -90, heading was
only made by Mickey, seconded by Manzo. Motion
carried unanimously.
Resolution No. 11 -90: A Resolution of the
Borough of Monaca, Beaver County,
Pennsylvania authorizing and directing the
borough to secure a loan in the amount of
$399,055.00 from the Pennsylvania
Infrastructure Investment Authority and the
taking of action_ necessary or proper in
connection therewith.
Motion to accept Resolution No 11 -90 was then
made by Mickey, seconded by Manzo. Motion carried
unanimously.
Present: Primo, Pranskey, Mickey, Taormina,
Manzo, = White -.and Danylo
Absent: Javens Dusold and Kroskey
7. The actual construction of the project was initiated in 1989
after the solicitation of bids on the various aspects of
Phase I of the project and the award of contracts in
relation thereto.
8. The Water Committee was active in soliciting and reviewing
Phase I bids and reviewing the payment of bills in relation
thereto.
In 1990, the borough. initiated Phase II of the Water Project
through the solicitation of bids.
10. The solicitation for bids was published on two occasions,
April 25 and May 9 , ` 1990.
am, ti The scope of the work to be performed included the
construction of appro *imately 1,360 linear feet
of 8 ", 20 linear feet of 6 ", 20 linear feet of 4"
Danylo, 90- 034 -C2
Page 7
water line and all appurtenances. This contract
also. includes approximately 21 new gate valves and
valve box'replacements (8" through 4 "), and 10 new
fire hydrant replacement installations and all
appurtenances at different locations throughout
the borough.
11. Records of Monaca ,Borough indicate that a'bid takuiation was
prepared by Del Smith, of the, firm of Lennon,, Smith, Souleret
Engineering, Incorporated, in regard to the Phase II,
Contract 1 of the Borough Water Improvement
a. Five bids were reviewed
b. The contract was awarded to the low bidder, C.T.
Stefanik, Incorporated at $1501783450,..-
c. The four other bids range from $169,165.00 to ,
$268.060.00.
d. In a . cover Letter, dated May 25, 1990, Del Smith .
recommends awarding the contract to C.T. Stefanik,
subject to recommendation by the solicitor and
presentation-by Stefanik of satisfactory
documentat,pn_of certain information as required
in:the bid instructions.
12. The bid submitted by C.T. Stefanik, Incorporated contained'a
statement that:
"No officer, agent or employee of the owner" (Borough)
"is personally interested, directly or indirectly •in
the proposal' and the accompanying contract or the
F . compensation to be paid hereunder ".
13. The Water Committee played an :active role in reviewing
bids bills and other matters 'relating to Phase II of the
project.
14. Minutes of the Monaca Borough Council meetings reflect the
following in regard to awarding the Phase II, Contract I,
portion of the Borough Water Project.
a. June 11, 199a:
Regarding,the Phase II PENNVEST Water-Project,
Kroskey motioned to award bieto C.T. Stefanik,
- Incorporated for Phase II (
` to the water system in the amount of $158,783.25.
Taormina seconded. Motion carried unanimously.
Danylo, 90- 034 -C2
Page 8
Motion was made by Kroskey, seconded by Danylo, to
read Ordinance No. 788, heading only, third and
final reading. Motion carried unanimously.
Ordinance No. 788: An Ordinance increasing the
indebtedness of the Borough of. Monaca, Beaver
County, Pennsylvania, by the issuance of a General
Obligation Note to the Pennsylvania Infrastructure
Investment Authority in the amount of $399,055.00
for the purpose of repairing and rehabilitating
the Monaca Borough Water System; fixing the form,
number, date, interests, and maturity thereof;
making a covenant for the payment of the debt
services on the note; providing for the filing of
the required documents; and authorizing execution,
sale and delivery thereof.
At this time, Taormina made the motion to approve
Ordinance No. 788. Motion was seconded by Danylo.
Motion carried unanimously.
15. The agreement between C.T. Stefanik, Inc. and the borough
was executed on June 29, 1990.
16. Minutes of the Monaca Borough Council meetings reflect the
following actions in relation to the payment of bills for
work performed by C.T. Stefanik on Phase II of the Water
Project:
a. August 13, 1990: .
List of bills for August with the following
additions were received by council:
C.T. Stefanik, Incorporated - $9,198.00
B &B Construction Co. (Final Pmt) - $68,531.99
Danylo motioned to pay all bills except B &B
Construction Company, seconded by Primo. Motion
carried unanimously.
B &B Construction is to be sent another letter
regarding hydrant and sod replacement.
Present: White, Dusold, Pranskey, Mickey, Javens,
Kroskey, Taormina, Manzo and Danylo
' September 10, 1990:
After discussion regarding brand of fire hydrants
Danylo,-90- 034 -C2
Pag, ,, 9
purchased from Famous Supply Company, Kroskey made
the motion to pay bills with the following
additions,.Danylo seconded. Motion carried
unanimously.
c r , • ,
Additions Follow; q ,
;C - .i: Stefantk, Incorporated (Contract 1, a.' +`t to
Line Improvement) - $25,830.45
Lennon, "Smith, Souleret (Water System ImprOVeperit)
- $6,251.71
Lennon., Smith, Souleret (Phase II Water System
Improvement) - $6,323.00 ;.
Danylo then motioned to accept Change Order No. 3
- Contract "B" - Well No. 14, Kroskey seconded.
Motion carried unanimously.
Present: Primo, Dusold, Pranskey, Manzo,'Mickey,
Javens, Kroskey, Taormina and Danylo
Absent: White
October. 10, 1990:
Mickey motioned to approve with._the following two
additions, pending review of bills by Manzo,primo
seconded. Additions follow:
C.T. Stefanik - $35,071.87
Motion carried unanimously.
Danylo motioned to approve Change Order Numbers 1
and 2 to Stefanik regarding Phase II,
Water Line Improvements. Javens seconded.
Motion carried unanimously.
Present: White, Primo, Pranskey, Mickey, Javens,
Manzo and Danylo'
Absent: Dusold, Kroskey and Taormina
d. November 13, 1990:
Mickey motioned to approve payment of bills with
the following additions. Seconded by Kroskey.
Motion carried unanimously.
Danylo, 90- 034 -C2
Page 10
Additions:
C.T. Stefanik - 46$,676.21
Lennon, Smith & Souleret - PENNVEST Administration
- $232.00 (Under PENNVEST)
Administration Phase II, Water System Design -
$5,160.00
Motion to request additional PENNVEST funding up
to $200,000.00 for water system improvements was
made by Danylo, seconded by Kroskey, motion
carried unanimously.
Present: Primo, Pranskey, Manzo, Mickey, Javens,
Kroskey, Taormina and Danylo
Absent: Dusold and White
f. December - 6, 1990:
Edward Stefanik, C Stefanik, Incorporated,
asked why he is not being paid, he further stated
that Monaca Borough is becoming known as
"deadbeats" among contractors and that, when
bidding, contractors would be charging Monaca
Borough a higher price because;;of being slow
payers.
Attorney Urich.informed Stefanik that his contract
clearly states that contracts will be paid as soon
as monies arrive from PENNVEST. Mr. Urich also
told council that what Stefanik was inferring was
illegal and they possibly should investigate price
fixing by contractors.
a. Mr. Mickey motioned to approve payment
of bills with the following additions:
C.T. Stefanik, Incorporated - $9,700.20
Mr. Kroskey seconded the motion. Motion
carried unanimously.
b. Mr. Danylo then motioned to make payment
to contractors working under PENNVEST
contract from other borough funds and
reimburse when PENNVEST monies are
received.
Danylo, 90- 034 -C2
Page 11
Motion was then made by. Mr. Javens
requesting an Executive Session,
seconded by Mr4 Taormina. Motion
carried unanimously.
Council reconvened at 9:30 p.m.
Mr. Danylo motioned to rescind his
motion. .. .
Motion to adjourn meeting and pay all
bills by Mr. Mickey, secoided.ky,,..
Mr. Taormina. Motion carried"
unanimously. _ 4 , ; :
Present: White, Primo, Dusold,"
Pranskey, Mickey, Javens, Danylo,
Kroskey and Taormina
17. Dependable Plumbing & Heating performed work for C.T.
Stefanik,. Incorporated in relation to the Phase II ,pgntract
that Stefanik had with the borough.
1 8. By way of, letter. dated November 15, 1990 to the borough
manager from C.T. Stefanik, Incorporated, a list of_
subcontractors utilized on Phase.II, - Contract I by Stefanik
was provided. The list included.:
Dependable Plumbing & Heating, 1601 Avenue,
Monaca, Pennsylvania 15061, Phone: 728 -6237
ConstrpcttQn,,Tool Service, T,i Incorporated, 3500 erty
Avenue, Pittsburgh, Pennsylvania 15201, Phone;
681 - 6673
Vince Morrocco, Concrete and Masonry, 1108 Wade Street,
Aliquippa, Pennsylvania 15001, Phone: 375 -2112
19. Documents, of C.T. Stefanik, Incorporated include an invoice
submitted by Dependable Plumbing & Heating for work
performed on Stefanik's portion of the Monaca Borough Water
Project.
a. Invoice dated_ October l , , 1990 . Dependable
Plumbing & Heating, 1601 Vi nia Avenue, Monaca,
Pennsylvania 15061, Construction,
Skyview Drive, Monaca, Pennsylvania.
1) . _ , - The_;, invoice . l i. sts . the following repairs:
Directly under the invoice, repair gas
Danylo, 90- 034 -C2
Page 12
t v" i fs ,de P 4 L
line`and test on Blaine Road and Tew
Street - $75.00.
Repair broken s.line on-tiles and
Flight appliance — $60.00.'
P..
Repair cd °lineenc l°ligli' appliances at
598 Atlantic Avenn '- $50.00.
Repair gas line and
52Et Atlantic Avenue
Beech - Street tie in
Beech Street tie in
light appliance at
$60.00.
- $55.00.
- $50.00.
Beeci Street tie in 28 foot 3/4 copper,
angl valve and fitting $175.00.
Extra Copper = $35.00
Total - $560.00
2) The invoice indicates that the services
were sold by Dave.
20.- Documents of C.T. Stefanik, Incorporated, include Check No.
3938 issued on October 5, 1990 in the amount of $560.00,
issued to Dependable Plumbing & Heating and signed by
Candice T. Stefanik
a. The reverse side of the check is stamped with the
instructions to credit the account of Dependable
Plumbing &Heating at One Mellon Bank.
21. C.T. Stefanik, Incorporated had initiated construction on
July 27, 1990, and on August 21, 1990 the work crew ruptured
a gas line while widening a road.
a. David Danylo was contacted in - order to have - . the
emergency rupture repaired.
Me work performed by Danylo was not part of the
primary water project but was in relation to an
•emergency that resulted from the work being
' performed .
22. David Danylo was utilized several times thereafter in
similar situations regarding other broken gas lines and
broken water lines.
Danylo, 90-034-C2
Page 13
23. C.T. Stefanik was encountering some trouble in securing
payment for bills that were submitted to the borough in
relation to work performed on the Water Project' (See Finding
No. 16(f)).
24. Danylo •became ' aware of this and questioned another
councilman about this,
a. He was advised that the engineers were not se
in the estimates. from Stefanik.
. T
b. Danylo informed the councilman that there was
money in the Water Improvement Fund to pay4
Stefanik until the borough could be reimbursed by
PENNVEST. { r.
c. The same day the other councilman talked with
Stefanik, who was on the job on : Atlantic A,w!,41%.
Stefanik explained that not being paid wa, o hutt.tng
the company, because they were not able topa
their suppliers.
of Financ3a1
for David;_
25. Records of Monaca Borough include Statements
Interests oni file: with the Borough Secretary
Danylo, which include the following:
a. Filing Date: March 7, 1989
For The Year: 1988
Source. of Income: None Listed
All Other Financial Interest: Categories:
Filing Date: August 7 1987
For The Year: 1986 -
Source of Income: Dependable Plumbing &
1601 Virginia Avenue, Monaca, PA 15061
Occupation or, Profession: Dependable P1
Heating (Owner)
All Other Financial Interest Categories:
None
Heating,
um)).ing &
None
26. There were no other statements on file for David Danylo.
III. DISCUSSION:
As a Monaca,Borough Councilman, David Danylo, hereinafter
Danylo is ae public official as that term.is defined under Act 9
of 1989. 65 P.S. 402:. 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,
Danylo, 90- 034 -C2
Page 14
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.
In the instant matter, we must determine whether Danylo
violated Section 3(a) of Act 9 quoted above regarding the award of
a contract by borough council and the expediting of payments to
C.T. Stefanik, Inca which in turn awarded a subcontract to Danylo
relative to that contract.
Factually, Danylo has served as a councilmember in Monaca
Borough. since 1988 and serves as Chairman of the Borough's Water
Committee which oversees the operation of the borough's water
system, handles complaints and reviews proposals for new or
ongoing projects.
Iii a private capacity, Danylo is the sole employee of
'Dependable Plumbing & Heating Company which has been in
'business .for approximately eight years. When the borough
initiated a rehabilitation and extension project in 1989 for
the borough water system, an: application :was made to PENNVEST
for a loan to implement the project in four phases. The
minutes of Monaca Borough Council meetings reflect the
following action as to the proposed water project: on May 9,
1988, Danylo seconds and votes in favor of a successful motion
to submit an application to the Commonwealth for funding under
the PENNVEST Program; on June 13, 1988, Danylo votes in favor
of a successful motion t� adopt Resolution 14 -88 to request .
the sum of approximately 1.8 million dollars from PENNVEST for
the partial financing of the construction, rehabilitation and
extension of the drinking water system in the . borough; on
February 27, 1989, with Danylo absent; the borough enacts
Ordinance No. 783 -A•for the issuance of a general obligation
Danylo; 90 034 -C2
Page 15;
note to PENNVEST in the amount of approximately 1.85 million
dollars; on February 12, 1990, ,Danylo aaalCes and votes €or a ,
successful motion to..authorize the -firm,of Lennon, Smith,
Sowerlet Engineering• I to prepewer plans and
specifications for the water improvement , on April
1990, a' letter is . received from PENNVEST reflecting approval ..0
of approximately .4 million,dollars and`on May 14, 1990,
Danylo votes in favor of two successful resolutions, the first
to accept the loan offer of'PENNVEST.by negotiating a note in
the amount of approxtmatel► * . .4 million dollars and the second--
for the borough to secure the loan from PENNVEST and take the
necessary action to receive funding. t
The project construction began in 1989 with the Water
Committee being active in . solicitation and review •of • first
phase of the pro ject` regarding the` bidding review and the payment
of bilis . Phase LI began in 1990`with the solicitation .fortbids
being published on two different occasions. The firm of Lennon,
Smith, Sowerlett Engineering Incorporated prepared a bid:
tabulation which reflected the re view of five and the
recoimnendation of the award of a contract to the low bidder, C.T.
Stefanik, Inc. Stefanik's bid contained a statement that no
officer or agent or employee of the borough should be persona.ly;i
` " =` interested directly-or indirectly in the proposal, the subseguent,r
.., contract or the compensation paid.
` r“ • As to Phase II of the project and the contract to C.T.
Stefanik, the minutes of Monaca Borough Council reflect tYo.
following: on June 11, 1990, Danylo votes in favor of a
successful motion to award the bid to C.T. Stefanik, ' Inc . for
==��'� Phase II of the Water System' Improvement Project and also seconds
and votes in favor of a successful motion to `adopt Ordinance 788
to increase' the` Monaco Borough indebtedness by the issuance tlf<a
general obligation note to PENNVEST in the amount of approximately
.4 million dollars; on August 13, 1990, Danylo makes and. votes «
favor of a successful motion to pay all bills (except one of Ina;
Construction Company), including bills of C.T. Stefanik, Inc.; on
September 10, 1990, Danylo votes in favor of a successful motion
to pay bills including C.T. Stefaniic, ;'on October 10, 1990,
Danylo participates in the approval of two change orders as to the
C.T. Stefanik, Inc. contract; on November 13, 1990, Danylo votes
in favor of a successful motion' approve the payment of bills
including an addition by C.T. Stefanik as well as recriesting
additional PENNVEST funding of $200,000 and on December 6, 1990,
following a complaint by C.T. Stefanik, Inc. that the borough is
slow in paying its bills, Danylo votes in favor of a successful
motion to pay bills of C.T. Stefanik, Inc., and then Danylo makes
and votes in favor of a successful motion to pay contractors
working under the project from boroucih funds which would be
reimbursed upon receipt 'of PENNVEST rOney followed by a subsequent
motion of Danylo to-rescind'th'e prior motion.
Danylo, 90- 034 -C2
Page 16
Danylo was one of three subcontractors (Fact Finding No. 18)
who did work for C.T. Stefanik, Inc.' relation to the borough
contract. The work that Danylo performed for C.T. Stefanik, Inc.,
relative" to the borough contract, is outlined in Fact Finding No.
>19 and totals $5'60. The subcontract' with Danylo was not for
construction on the Phase II project but was in fact a repair
which was necessitated when'C.T. Stefanik, Inc.. initiated
construction and ruptured' a gas line while widening a road. - The
#irk performed by Danylo- ` fiaas not part of the primary water
o ect but was - an ' emergency service by the gas line
irupture.
As to the substantive allegation of Section 3(a) of Act 9 of
. :198 , 9; 2 wd find that Danylo did not violate the Ethics Act regarding
". bhe. award• of the contract and the expediting of payments to C.T.
t = . ' "S fatilk; ' "Inc. There is no evidence of record to establish a use
"oOtie authority of office on the part of Danylo in the award of
ir°tli e ontract or the expediting of payments to C.T. Stefanik, Inc.
visa`- via•the award of the subcontract by C.T. Stefanik, Inc. to
Danylo. In this regard, we note that the subcontract work that
was performed by Danylo was not work on the water expansion
' L'�= ro of new construction but was in fact a repair to a gas
:line ruptured by C.T. Stephanik, Inc. when they attempted to
widen a borough road. Thus, we find no violation of Section 3(a)
of Act 9 of 1989 under the circumstances. Amato, Opinion 89 -002.
" " Parenthetically, we note that Danylo has filed Financial
Interest Statements (FIS) for the calendar years 1986 and 1988 but
has not filed the FIS for 1987, 1989 and possibly 1990. In
=addition, we -note that the FIS forms for calendar years 1988 and
1986 do not list Monaca Borough as a source of income, and the
1988'year does not list Dependable Plumbing & Heating as a source
of income. If Danylo received income of $500 or more from Monaca
Borough in the calendar years 1986 and 1988, he must file amended
returns for those years; similarly he would also have to list
Dependable. Plumbing & Heating if he received income exceeding the
threshold amount for the 1988 calendar year. Finally, Danylo is
directed to file FIS's for the calendar years 1987, 1989 and
lastly 1990, if he has not already done so.
Regarding the FIS deficiencies noted above, Danylo is
directed to file the forms or amended forms as noted above within
30 days of issuance of this order. Failure to comply will result
in the referral of this matter for appropriate enforcement action.
IV. CONCLUSIONS OF LAW:
1. David Danylo, as a member of Monaca Borough Council, is a
public official subject to the provisions of the Ethics Law.
Danylo, 90- 034 -C2
Page 17
2. Danylo. did not,violate- Section 3(a) of Act 9 of 1985 ,.....:: -:.
regarding the award of, -a M o gna : Borough contract or the R
=expediting of payments to C.T. Stefanik, Inc.. when Danylo
up
performed certain,acontract work for C.T. Inc.
'13
of
In Re: David pan30-9
1.
•
„�
r' fry
} c+ -.id 1,
r O IDE ,. 9 NQ. "1814
David ; ganyloc ,le ; �a .MQnace,BorQugh Compci ma c did _not
9l
v ete 7 Sectip{ ;l ; a) of .,Act 9 o4 1989 regarding tli}e award of
a ;. g i' raet axd c e ,expediting,sf , payments ,tp C.T. ref anik,
i r lien Danyio.,performed,so ae,, subcontr-act*-wprk fqt
stun }k . ! ~ i 4
.M1 s r ; ) 'S - .\ 1 - tom, r .. ,.
W1'414 144 Q d4 e 4f i,squa»cQ, of this order
directed: - (& .o 4ile 4jAnncial Inter -ts St ,4,em ts. )
for tlae-ga)erdar years 987, 19$9 and lastly 4990, if . he has
not already done so, anC.(b) to file amended FIS's for the
calendar years 1986 and 1989, if he has received income from
Monaca - B4rqugh,i,n�,,,1986 and 1989, aDepen 41 Pl Lng &
Heating fox ; the _ 19,8,8 year, if the ; income exceed; the .,
threshold reporting,;requirements . t
Failure,to comply with the provisions of Paragraph 2 will
result in the referral of this matter for appropriate
enforcement action _ 3 . y /; A i.:.
-
: File Docket: 90- 034 -C2
: Date Decided: August 23, 1991
: Date Mailed: September 3, 1991
BY THE COMMISSION,
DENNIS C. HARRINGTON, VI HAIR
a