HomeMy WebLinkAbout1379 GradizziIn Re: Randall Gradizzi,
File Docket: 04 -033
X -ref: Order No. 1379
Date Decided: 9/12/05
Date Mailed: 9/21/05
Before: Louis W. Fryman, Chair
John J. Bolger, Vice Chair
Donald M. McCurdy
Raquel K. Bergen
Nicholas A. Colafella
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding a possible violation of the Public Official and Employee Ethics
Act, Act 9 of 1989, P.L. 26, 65 P.S. § 401 et seq., as codified by Act 93 of 1998, Chapter
11, 65 Pa.C.S. § 1101 et seq., by the above -named Respondent. At the commencement of
its investigation, the Investigative Division served upon Respondent written notice of the
specific allegations. Upon completion of its investigation, the Investigative Division issued
and served upon Respondent a Findings Report identified as an "Investigative Complaint."
An Answer was not filed and a hearing was deemed waived. The record is complete.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. § 1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code § 21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
Gradizzi, 04 -033
Page 2
I. ALLEGATION:
That Randall J. Gradizzi, a (public official /public employee) in his capacity as a
Supervisor for Fox Township, Elk County, violated the following provisions of the State
Ethics Act (Act 93 of 1998) when he used the authority of his office for a private pecuniary
gain of himself and /or members of his immediate family by participating in actions and
discussions of the board of supervisors resulting in his sister being hired to the position of
Park Director, and his brother hired for a full -time position with the Road Department; and
when he participated in decisions of the board of supervisors to enter into contracts with
Pollino Excavating which were in excess of $500 and entered into without an open and
public process; and when he approved payments to his employer in 2001 and 2002; when
he participated in actions of the board of supervisors to approve a contract for the Senior
Center to Micale Construction at a time when a business with which he is associated was
subcontracting with Micale; and when as a member of the Fox Township Sewer Authority
participated in decisions of the authority board of directors to enter into contracts with his
employer, Pollino Excavating in excess of $500 without an open and public process.
II. FINDINGS:
1. Randall Gradizzi has served as a Supervisor for Fox Township, Elk County since
January 2000.
a. Gradizzi served as vice - chairman of the board in 2000 and 2001.
b. Gradizzi was appointed by the board of supervisors to the Planning
Commission for a four year term commencing January 7, 2002 and lasting
through December 31, 2005.
c. Gradizzi served on the Fox Township Sewer Authority Board from January 4,
2000, through June 8, 2005.
1. Gradizzi resigned from the authority at the June 8, 2005 authority
board meeting.
d. Gradizzi has served as assistant- roadmaster since June 2, 2004.
2. Gradizzi has been employed as an equipment operator for Pollino Excavating for
approximately twelve years.
3. Fox Township is a Second Class Township governed by a three member board of
supervisors.
a. Supervisors are compensated $1,875.00 per year.
1. Supervisors receive the compensation whether or not they attend
monthly meetings.
b. Supervisors serving since 2000 include Gradizzi, Michael Keller, and Jerry
Zimmerman, Jr.
4. Since 2000, the Fox Township Board of Auditors have established compensation
for Supervisors Gradizzi, Jerry Zimmerman and Michael Keller as follows:
a. 2000: Gradizzi - $15.22 /hour (emergency only).
Keller - $12.02 /hour (emergency only).
Zimmerman - $15.72 /hour, as Assistant Roadmaster /Equipment
Operator/Landfill/Laborer.
b. 2001: Gradizzi - $15.22 /hour, as an Equipment Operator, working in
Gradizzi, 04 -033
Page 3
emergency situations only.
Keller - $12.26 /hour (emergency only).
Zimmerman - $16.02 /hour, as Assistant Roadmaster /Equipment
Operator /Landfill Laborer.
The auditors set compensation for Jerry Zimmerman on March 20, 2001 after
he was appointed roadmaster. The wage was $16.52 /hour, $1.00 more than
the rate for his classification which was $15.52 /hour.
Zimmerman's compensation as an assistant roadmaster was $.50 more per
hour than his rate as an equipment operator of $15.52 /hour.
c. 2002: Gradizzi - $15.77 /hour, as an Equipment Operator in emergency
situations only and on an as- needed basis only.
Keller - $12.51 /hour (emergency only).
Zimmerman - $16.77 /hour, as Assistant Roadmaster /Equipment
Operator /Landfill Laborer.
The minutes incorrectly record Zimmerman's position as Assistant
Roadmaster instead of Roadmaster.
The pay rate was correctly set, based on the rate of an Equipment Operator,
$15.77, plus $1.00 per hour for the roadmaster position.
d. 2003: Gradizzi - $16.02 /hour, as an Equipment Operator (as- needed basis
only).
Keller - $12.76 /hour, as a laborer (emergency only).
Zimmerman - $17.02 /hour, as Roadmaster /Equipment
Operator /Landfill Laborer.
e. 2004: Gradizzi - $16.27 /hour, as an Equipment Operator (as — needed basis).
Keller - $13.01 /hour, as a laborer (emergency purposes only).
Zimmerman - $17.27 /hour, as Roadmaster /Equipment
Operator /Landfill Laborer.
Gradizzi was appointed Assistant Roadmaster on June 2, 2004.
f. 2005: Gradizzi - $16.76 /hour, as an Equipment Operator /Assistant
Roadmaster as- needed basis); plus the additional $1.00 /hour when the
roadmaster is off.
Zimmerman - $17.76 /hour, as Roadmaster /Equipment
Operator /Landfill Laborer.
5. In preparing the agenda for the 2002 auditors reorganization meeting, Mosier
added the wording `as- needed' to the motion regarding Gradizzi's compensation.
a. In either December 2001 or January 2002, Mosier was informed by
Supervisor /Roadmaster Zimmerman that Gradizzi was going to be operating
equipment rented from Pollino Excavating for township road projects, and
that he would be paid as a township employee.
b. Mosier was not directed by Zimmerman or any township supervisor to add
the reference `as- needed' to the motion regarding Gradizzi's compensation.
1. Mosier made the change believing that Gradizzi would be operating
equipment on township projects.
c. Mosier did not advise the auditors that the language on the agenda was
changed from emergency situations only to as needed.
Gradizzi, 04 -033
Page 4
d. The auditors did not discuss the addition of as needed" by Mosier to the
meeting agendas from 2002 to 2005, regarding Gradizzi's employment with
the township.
1. The auditors did not notice or authorize the change in language.
6. During 2002, the board of supervisors did not appoint Gradizzi to be employed as
an equipment operator or laborer.
7 In approving compensation for Gradizzi and Michael Keller for 2002 through the
present, the auditors intended and believed that Gradizzi would be paid for
performing work in emergency situations.
The following findings relate to Gradizzi's role in the hiring of his sister,
Debra Agosti, as the Fox Township Recreation Facilities Director.
8. The Fox Township Recreation Board was established by Ordinance No. 89 -5
adopted by the board of supervisors on May 17, 1989, prior to Gradizzi's service on
the board.
Under Article XXII, Parks, Recreation Centers and Forests, the Second Class
Township Code empowers a board of supervisors to acquire land, establish
facilities, purchase equipment, employ persons to maintain or supervise the use of
the facilities, and to create a recreation board to supervise, regulate, equip and
maintain township- funded recreation programs and facilities.
a. Recreation board members are appointed to five year terms by the
board of supervisors.
b. A recreation board only possesses those powers delegated to it by the board
of supervisors.
c. Boards consist of five to seven members, who serve with no compensation.
9. In or around 2000, the township began to develop a new park with soccer and
baseball fields, on property donated to the township for such use.
a. The plan was to build a community park which would include: three baseball
fields, two soccer fields, a football field, restroom, concession stand, and
walking /bicycle track, along with parking and necessary infrastructure.
b. Four years earlier a local family had donated the land to the township for the
development of a soccer field, in memory of their daughter.
c. The township received a $100,000.00 Keystone Recreational Grant from the
PA Department of Conservation and Natural Resources, for the development
of the park.
10. After his election to the board in 2000, Gradizzi became a driving force in the
development of the new park.
a. At the August 2, 2000, Board meeting, Chairman Keller, referred to Gradizzi
as the "spark plug of the project ", and attributed the progress of the park to
Gradizzi.
11. During the October 16, 2001 budget meeting of the board of supervisors the
creation of a new recreational position was discussed.
a. The position would be responsible for coordinating activities at and
maintaining the township parks.
Gradizzi, 04 -033
Page 5
b. Details of the position had not been determined.
c. The position, which would be salaried, would be required to attend the
functions at the parks as well as various meetings.
d. For budget purposes, a preliminary salary of $25,250.00 was discussed.
e. Gradizzi was present for the meeting and participated in the discussions.
12. At the March 6, 2002, Board of Supervisors meeting, Gradizzi participated in the
discussion and vote to advertise for the hiring of a recreational facilities director.
Minutes of the meeting reflect the following:
a. Ajob description had been written and reviewed by the recreation board and
the supervisors.
b. Subsequent to the discussion, Gradizzi made a motion to review the job
description for the recreational facilities director and then advertise to fill the
position.
1. The vote to advertise to fill the position was unanimous with Gradizzi
participating.
c. The hours and salary for the position would be set during the review of the
job description.
13. The job description for the position of recreational facilities director included the
following:
- Strong background and knowledge in fiscal management, grounds /facility
maintenance, sports & leisure program planning /implementation and the ability to
forge partnerships with public non - profit associations are required.
- A degree in park and recreation administration or a related field would be helpful
but not required.
- Responsibilities include but are not limited to:
- Administer the day -to -day operations of the township's recreation facilities.
- Plan and prepare recreational and sports related programs for various age
groups.
- Serve as liaison between board of supervisors, recreational board and other
recreational organizations utilizing township facilities.
- Prepare and submit to the board of supervisors, annual budget including
capital improvement program.
- Schedule, coordinate and facilitate the use of all recreational facilities by
outside organizations.
- Operate park department vehicles and tractors in a safe and productive
manner.
- Maintenance and repairs of parks and public grounds to include, but no limited
to:
Trimming of grass, shrubbery, and trees
Minor construction and renovations
Assembling and positioning of various items of playground pieces
Maintaining of ball fields, picnic areas, and playground equipment,
walking track, etc.
Prepares site and seeds lawns
Picks up and disposes of trash and litter
Gradizzi, 04 -033
Page 6
Check all park areas on a regular schedule to look for problems,
vandalism or work needing to be done
Report any vandalism to supervisors, improve and maintain security
of existing facilities
Maintain inventories and utilize equipment and materials in a safe
manner
- Supervise staff assigned to assist with this position.
- Must attend meetings of the various organizations directly associated with
the recreation programs utilizing township facilities including, but not limited
to: Fox Township Recreation Board, Little League Association, Soccer
Association and Fox Township Board of Supervisors, as needed.
- Shall attend any training deemed necessary or beneficial to this position, as
determined by the Fox Township Board of Supervisors.
- Schedule the operation of, maintain inventory for & conduct general
maintenance of concession stand(s) under the control of Fox Township.
14. At the April 3, 2002 board of supervisors meeting, Chairman Mike Keller announced
that the position of recreational facilities director would be advertised beginning the
following week.
a. The deadline to apply for the position was April 19 with an intended start
date of April 29
15. The position for the recreation facilities director was advertised in The Daily Press
newspaper on April 4 th, 11 , and 15 2002.
16. Debra Agosti is the sister of Randall Gradizzi.
17. Agosti has served on the recreation board from on September 6, 2000 to the
current time.
a. Agosti was initially appointed to fill a vacancy on the board.
b. Agosti was reappointed to a full term on January 2, 2001.
18. Debra Agosti was one of the applicants applying for the position of recreation
director.
19. The board of supervisors did not conduct interviews of any of the candidates.
a. Six resumes were received by the township by April 19, 2002, in response to
the advertisement for a recreation facilities director, including that of Debra
Agosti.
20. At the May 1, 2002 board of supervisors meeting, Board Chairman Michael Keller
announced that Debra Agosti had been hired as the township recreational facilities
director and would be responsible for maintaining and managing the recreational
parks.
a. No vote of the board was taken to approve Agosti's hiring.
b. The announcement of Agosti's hiring was preceded by an executive session
on May 1, 2002, at which all three supervisors, including Gradizzi, were
present.
1. Agosti's hiring was discussed and agreed upon by the supervisors
during this session.
21. Gradizzi was present at the executive session during which the applicants for the
Gradizzi, 04 -033
Page 7
recreation facilities director position were reviewed and discussed.
a. Gradizzi did not advocate the hiring of his sister.
22. Agosti was initially hired on a part -time basis at the rate of $10.00 per hour, with
time and one half over 40 hours.
23. At the October 8, 2002 Budget meeting, the board of supervisors announced that
Debby Agosti was offered full -time status as the recreational facilities director with
an annual salary of $21,840 plus benefits.
a. The action was taken during an executive session at which Gradizzi was
present.
b. No formal vote of the board was taken approving the change in status or the
salary increase.
24. At the January 2, 2005, reorganization meeting, the board of supervisors authorized
an increase in salary for the recreation facilities director from $21, 840.00 to
$25,000.00 per year.
a. Salaries for other township employees, including Gradizzi's brother, were
also discussed.
b. Gradizzi abstained on the vote, stating that his sister and brother are
employees.
1. The motion included a 3% raise for the road department employees.
25. Minutes of the board of supervisors meetings for January 6, 2003; January 5, 2004;
and January 5, 2005; reflect that Gradizzi voted to approve payrolls at the
beginning of each year, which included the salary for Debra Agosti and all township
employees.
26. Gradizzi signed 53 payroll checks totaling $52,388 issued to Debra Agosti during
the time period May 2002 through April 2005.
27. Agosti's earnings as the Fox Township Recreation Facilities Director are reflected
on W -2 Wage And Tax Statements for the years 2002 through 2004, as follows:
2002 - $11,940.79
2003 - 22,417.50
2004 - 22, 360.00
The following findings relate to allegation that Gradizzi participated
in the hiring of Joseph Gradizzi to the township road crew.
28. Joseph Gradizzi is the brother of Randall Gradizzi.
29. In or about February 2003, Joseph Gradizzi was offered employment by Fox
Township Supervisor Roadmaster Jerry Zimmerman without board action approving
the hiring.
a. Joseph Gradizzi began working for the Fox Township road crew on a part -
time basis in 2003.
b. Joseph Gradizzi previously submitted an application for employment with the
township dated May 5, 2002.
Gradizzi, 04 -033
Page 8
30. Jerry Zimmerman offered employment to Joseph Gradizzi based on the following:
a. Gradizzi could operate equipment, drive trucks, weld, and repair the trucks
and equipment.
b. At an executive session held during a budget meeting in October 2003, he
asked the other supervisors if he could hire Joseph Gradizzi to work as a
mechanic /park maintenance employee.
1. Randall Gradizzi was opposed to hiring his brother.
c. The position of mechanic /park maintenance employee was created for
Joseph Gradizzi.
1. Previously the road department had the position of mechanic, but it
had not been filled for several years.
2. The position of park maintenance was new.
d. Joseph Gradizzi was brought in as an equipment operator because of his
previous experience operating equipment.
31. The Fox Township Board of Supervisors met on October 22, 2003, for a budget
workshop and during an executive session the hiring of Joseph Gradizzi as a full
time employee with the road department was discussed by the board of supervisors.
a. Randall Gradizzi was present but was opposed to the hiring.
b. Other personnel actions were also announced at this meeting.
32. No vote was taken during the October 22, 2003 workshop by the board of
supervisors to approve the hiring of Joseph Gradizzi as a full time employee.
a. The board of supervisors did not formally approve the hiring of any
personnel during meetings.
1. Hirings were discussed during executive sessions.
33. Gradizzi did not want his brother to be hired by the township because of the fact
that his sister was already working for the township and he (Gradizzi) did not think it
would look right for his brother to also be hired.
34. Gradizzi signed thirty -three payroll checks, issued to Joseph Gradizzi, between
February 2003 and June 1, 2005.
35. W -2 Wage and Tax Statements reflect the total wages issued by Fox Township to
Joseph Gradizzi for the years 2003 and 2004.
2003 - $20,904.91
2004 - $37,204.19
The following findings relate to the township's contracting with Gradizzi's
employer Pollino Excavating without an open and public process; and
Gradizzi participating in the approval of payments to Pollino.
36. Pollino Excavating is owned and operated by Raymond Pollino.
a. The business provides commercial and residential excavating services.
Gradizzi, 04 -033
Page 9
b. Pollino operates the business from his home.
c. Pollino stores his equipment in a garage on property owned by his family.
37. Gradizzi is compensated by Pollino Excavating as an equipment operator on an
hourly rate, as follows:
May 2000 - $14.50/hr.
May 2001 - $15.00 /hr.
May 2002 - $15.45/hr.
February 2003 - $15.91/hr.
May 2004 - $16.39/hr.
May 2005 - $16.88/hr.
a. Gradizzi received pay increases in May of each year.
38. Pollino owns various equipment including:
650K Bulldozer
580L Case Backhoe
International Triaxle truck
Ford 10 -ton single axle truck
20 -ton trailer
Utility truck
Dump truck
Case excavator
39. At the end of 2001, Fox Township began to rent heavy equipment from Pollino
Excavating.
a. The township had not previously used Pollino Excavating as a source for
rental equipment.
b. The township had previously used, and continued to use other equipment
rental businesses to a lesser degree, including: Vollmer Brothers
Excavating; PJL Trucking; Grotzingers; Apple Tractor; and Dobson's
Excavating.
c. The use of Pollino for rental equipment was initiated by Supervisor and
Roadmaster Jerry Zimmerman as a result of road projects initiated by
Zimmerman.
40. In or about December 2001, Zimmerman authorized the rental of equipment from
Pollino Excavating for road widening projects on township roads, Boone Mountain
and Four Points.
a. Zimmerman became Roadmaster in 2001, and changed the way the road
department was run.
1. The roadmaster has the authority to make decisions on the
management of the road department, including the projects that will be
performed.
b. He chose to perform a road widening project on Boone Mountain Road
during the winter months.
c. He chose Pollino because of prior experiences with Pollino.
d. Zimmerman talked to Gradizzi and Keller about paying Gradizzi as a
township employee to operate Pollino Excavating equipment on township
Invoice
Date
Invoice
Number
Item
Description
Amount
Invoiced
Total
2001
11 -02 -01
568
Backhoe
Connecting water & sewage tap
$ 550.00
$ 1,150.00
568
Dump truck
Connecting water & sewage tap
150.00
568
Labor
Connecting water & sewage tap
450.00
11 -02 -01
570
Backhoe
Installing 20,000 gallon tank
925.00
4,238.00
570
Dozer
Installing 20,000 gallon tank
1,125.00
570
Labor
Installing 20,000 gallon tank
2,145.00
570
Equip. Rental
Jackhammer
43.00
2002
03 -26 -02
593
Excavator
Equip. Rental 2/20 - 3/20/02
3,400.00
7,600.00
592
Tri -axle
Tri -axle Lease
4,200.00
07 -27 -02
609
Excavator
Lease -195 hrs. A $40 per hour
7,800.00
18,240.00
609
Dozer
Lease -190 hrs. A $30 per hour
5,700.00
609
Tri -axle
Lease -158 hrs. A $30 per hour
4,740.00
07 -27 -02
610
Sandstone
115 Tri -axle loads A $25 per load
2,875.00
4,030.00
610
Sandstone
77 Single Axle loads A$15 / load
1,155.00
07 -27 -02
612
Excavator
Lease -6 hrs. A $40 per hour
240.00
240.00
07 -27 -02
611
Excavator
Lease -9 hrs. A $40 per hour
360.00
360.00
09 -06 -02
618
Excavator
Lease -6 hrs. A $40 per hour
240.00
540.00
618
Tri -axle
Lease -10 hrs. A $30 per hour
300.00
09 -06 -02
617
Excavator
Lease -11 hrs. A $40 per hour
440.00
680.00
617
Dozer
Lease -8 hrs. A $30 per hour
240.00
09 -06 -02
615
Excavator
Lease -45.5 hrs. A $40 per hour
1,820.00
4,180.00
Gradizzi, 04 -033
Page 10
road projects.
e. Zimmerman initiated the idea because he knew that it would be improper for
Gradizzi to be paid as an employee of Pollino Excavating while operating his
employer's equipment on township jobs.
41. In or about December 2001, Zimmerman discussed, with Pollino, the equipment to
be leased.
a. Zimmerman advised Pollino that he wanted to lease the equipment without
an operator and that he intended to utilize Randall Gradizzi as the operator.
b. Zimmerman was to use Gradizzi as a township employee operating Pollino's
equipment.
c. Zimmerman did not seek or receive the approval of the other board members
to negotiate with Pollino.
42. Pollino agreed to Zimmerman's rental proposal because the road widening project
afforded Pollino Excavating work during the winter months.
a. During the winter months, Pollino generally has only sporadic work available
for Gradizzi consisting mainly of snow removal.
b. Gradizzi, as a result, is usually furloughed during the winder months and
would be available for work with the township.
c. Pollino has, on occasion, rented equipment without an operator.
43. In December 2001 or January 2002, Zimmerman also advised Township Secretary
Mosier that Gradizzi would be working for the township.
44. When the township rented equipment from Pollino Excavating, Gradizzi was paid as
a township employee to operate Pollino equipment.
45. Between November 2001 through September 2002, Pollino Excavating invoiced Fox
Township for services which were not part of any bid process:
Gradizzi, 04 -033
Page 11
46. Beginning in the fall of 2002, Supervisor /Roadmaster Jerry Zimmerman began
soliciting telephone price quotes for equipment rentals for road projects in 2002 and
2003.
a. The prices were solicited in the fall of 2002 for the 2002/2003 and the fall of
2003 for the 2003/2004 winter road projects.
b. Prior to 2002, quotes for equipment rental were not obtained.
47. Quotes solicited by Zimmerman included the following:
a.
2002/2003 (phone quotes — w /operator):
Vendor: Bradco
Pricing: n/a
Vendor: Kahles
Pricing: By week or month only
Vendor: Apple Tractor
Pricing: excavator - $31.00 /hour
Dozer - $37.00 /hour
Vendor:
Pricing:
Vendor:
Pricing:
b.
2003/2004 (Written quotes):
Vendor:
Subject:
Date:
Quote:
Apple Tractor
Equipment Rental Quote
Undated
$32.50 per hour — excavator 35,000 Ib. class (i.e. Kobelco SK150;
Komatsu PC150; CASE 9020B)
$40.00 per hour — Crawler tractor (i.e. CAT D4C; CASE 650H; Komatsu D38P)
Vendor:
Subject:
Date:
Equipment:
Vendor:
Subject:
Bentley
excavator - $55.00 /hour
Dozer - $62.00 /hour
Pollino Excavating
excavator - $35.00 /hour
Dozer - $35.00 /hour
Triaxle - $32.00 /hour
Onyx Greentree Landfill, LLC
Equipment Rental Quote
9/22/03
$50 per hour — Hitachi excavator 330LC (without operator)
$65 per hour - CAT D6M (without operator)
Pollino Excavating
Equipment Rental Proposal
615
Dozer
Lease -30 hrs. (i $30 per hour
900.00
615
Tri -Axle
Lease -47 hrs. (i $30 per hour
1,410.00
615
Sandstone
2 Tri -axle loads p $25 per load
50.00
09 -06 -02
616
Excavator
Lease -8 hrs. (i $40 per hour
320.00
320.00
Gradizzi, 04 -033
Page 11
46. Beginning in the fall of 2002, Supervisor /Roadmaster Jerry Zimmerman began
soliciting telephone price quotes for equipment rentals for road projects in 2002 and
2003.
a. The prices were solicited in the fall of 2002 for the 2002/2003 and the fall of
2003 for the 2003/2004 winter road projects.
b. Prior to 2002, quotes for equipment rental were not obtained.
47. Quotes solicited by Zimmerman included the following:
a.
2002/2003 (phone quotes — w /operator):
Vendor: Bradco
Pricing: n/a
Vendor: Kahles
Pricing: By week or month only
Vendor: Apple Tractor
Pricing: excavator - $31.00 /hour
Dozer - $37.00 /hour
Vendor:
Pricing:
Vendor:
Pricing:
b.
2003/2004 (Written quotes):
Vendor:
Subject:
Date:
Quote:
Apple Tractor
Equipment Rental Quote
Undated
$32.50 per hour — excavator 35,000 Ib. class (i.e. Kobelco SK150;
Komatsu PC150; CASE 9020B)
$40.00 per hour — Crawler tractor (i.e. CAT D4C; CASE 650H; Komatsu D38P)
Vendor:
Subject:
Date:
Equipment:
Vendor:
Subject:
Bentley
excavator - $55.00 /hour
Dozer - $62.00 /hour
Pollino Excavating
excavator - $35.00 /hour
Dozer - $35.00 /hour
Triaxle - $32.00 /hour
Onyx Greentree Landfill, LLC
Equipment Rental Quote
9/22/03
$50 per hour — Hitachi excavator 330LC (without operator)
$65 per hour - CAT D6M (without operator)
Pollino Excavating
Equipment Rental Proposal
Gradizzi, 04 -033
Page 12
Date: 9/22/03
Equipment: $27 per hour — excavator CASE 9020B
$40 per hour — dozer CASE 650K (w /operator)
$34 per hour — tri -axle (w /operator)
48. In the fall of 2004, the township publicly advertised for equipment rental prices for
the Boone Mountain Road widening project.
"Sealed proposals will be received ... until 4:00 PM., on October 6,
2004, for the lease of the following equipment for use in widening (T-
315) Boone Mt. Road from Four Points Road to Clearcut Road:
38,000- 40,000 pound excavator
650 or D4 Dozer
Triaxle
Lease rates shall be expressed as an hourly rate and submitted for both
(1) equipment only and (2) equipment with an operator. All work will be
done in co- operation with Township road crew and Township equipment.
Therefore, leased equipment must be available on a twelve hour notice
and may be cancelled or delayed based on the availability of the
Township road crew. Project is scheduled to begin January 2005.
Complete details can be obtained at the Fox Township office, 8:00 AM —
4:00 PM, Monday thru Friday.
Proposals must be upon the forms furnished by the Municipality and
must be accompanied with proof of at least $1 million liability insurance.
The Municipality reserves the right to reject any or all proposals."
49. Two bids were received by the township in response to the advertisement.
Vollmer Brothers Excavating:
TD8 Dozer (with /without operator not specified) $60.00 /hr
Singleaxle truck (with /without operator not specified) $50.00 /hr
No price was provided for an excavator.
Pollino Excavating:
Case 9020 B excavator: Without operator $40.00 /hr
With operator $60.00 /hr
Case 650 K Dozer Without operator $35.00 /hr
With operator $50.00 /hr
Triaxle Without operator $30.00 /hr
With operator $35.00 /hr
50. On October 6, 2004, the board of supervisors awarded the bid to Pollino
Excavating.
a. Gradizzi abstained on the vote to award the contract to Pollino
Excavating at the October 6, 2004 Board meeting.
b. The minutes of the October 6, 2004, meeting reflect that Gradizzi stated
for the record that he was abstaining because his employer was one of
the bidders.
51. Between December 2002 through May 2005, Pollino invoiced Fox Township for
services performed which were bid through telephone quotes.
Invoice
Date
Invoice
Number
Item
Description
Amount
Invoiced
Total
2002
12 -01 -02
641
Excavator
Lease -34 hrs. A $40 per hour
1,360.00
2,590.00
641
Dozer
Lease -25 hrs. A $30 per hour
750.00
641
Tri -Axle
Lease -16 hrs. A $30 per hour
480.00
2003
03 -03 -03
648
Excavator
Lease -Cherry Road
1,160.00
1,160.00
04 -02 -03
659
Excavator
Lease -Boone Mt Road
8,775.00
15,315.00
659
Dozer
Lease
4,200.00
659
Dump
Truck
Lease
1,380.00
659
Tri -Axle
Lease
960.00
04 -02 -03
660
Dump
Truck
Lease -4 points to 153
800.00
950.00
660
Dozer
Lease
150.00
04 -19 -03
665
Excavator
Lease -Boone Mt Road
3,600.00
6,900.00
665
Dozer
Lease
2,400.00
665
Dump
Truck
Lease
900.00
08 -01 -03
682
Excavator
Lease -Dietz Road
2,400.00
5,280.00
682
Dozer
Lease
2,040.00
682
Tri -Axle
Lease
840.00
07 -23 -03
675
Excavator
Install culvert pipes
560.00
560.00
07 -23 -03
676
Excavator
Clean ditch - Blooms Road
200.00
200.00
08 -05 -03
683
Excavator
Lease - Greene Road
2,360.00
6,070.00
683
Dozer
Lease
2,010.00
683
Tri -Axle
Lease
1,700.00
09 -01 -03
685
Excavator
Lease - Demolition 113
1,520.00
2,495.00
Tri -Axle
Lease
975.00
09 -01 -03
684
Excavator
Lease - Greene Road
4,560.00
10,860.00
684
Dozer
Lease
3,750.00
684
Tri -Axle
Lease
2,550.00
09 -02 -03
689
Excavator
Lease -New Park
1,820.00
1,820.00
09 -02 -03
690
Excavator
Lease -Ridge Road
320.00
320.00
09 -30 -03
696
Dozer
Lease -New Maintenance Bldg.
2,920.00
7,800.00
696
Excavator
Lease
2,780.00
696
Tri -Axle
Lease
100.00
09 -30 -03
695
Dozer
Lease -New Park
1,000.00
1,272.00
695
Excavator
Lease
160.00
695
Materials
4" SCH.35
112.00
09 -30 -03
694
Excavator
Lease - Community Bldg.
200.00
09 -30 -03
693
Dumpster
Lease
80.00
80.00
10 -27 -03
700
Excavator
Lease - Gardner Hill
2,400.00
7,920.00
700
Dozer
Lease
3,120.00
700
Tri -Axle
Lease
2,400.00
11 -28 -03
703
Excavator
Lease - Dallasen's Hill
5,184.00
18,515.00
703
Dozer
Lease
5,400.00
703
Dump
Truck
Lease
2,754.00
703
Tri -Axle
Lease
1,190.00
703
Shale
3,987.00
11 -28 -03
704
Backhoe
Repair washouts (rainstorm)
105.00
105.00
2004
01 -31 -04
711
Excavator
Lease -Boone Mt Road
4,320.00
12,635.00
711
711
Dozer
Dump
Truck
Lease
Lease
4,660.00
1,394.00
711
Tri -Axle
Lease
2,261.00
03 -30 -04
719
Excavator
Lease -Boone Mt Road
4,239.00
17,813.00
719
Dozer
Lease
5,120.00
719
Dump
Truck
Lease
1,734.00
719
Tri -Axle
Lease
2,720.00
04 -05 -04
724
Excavator
Lease -Boone Mt Road
320.00
2,560.00
724
Dozer
Lease
1,440.00
724
Dump
Truck
Lease
800.00
05 -03 -04
729
Excavator
Lease - Senior Center
5,103.00
19,431.00
729
Dozer
Lease
5,760.00
Gradizzi, 04 -033
Page 13
Gradizzi, 04 -033
Page 14
* Some of the Pollino invoices reflect charges for materials utilized in the various projects.
52. When operating Pollino equipment on township road projects Gradizzi was
compensated as a township employee.
53. Between 01/01/02 and 05/27/04, township time and payroll records confirm Gradizzi
worked 1,835.8 hours for the township and was compensated $25,464.24 while
Pollino equipment was being rented by the township.
729
Backhoe
Lease
1,836.00
729
Tri -Axle
Lease
6,732.00
05 -03 -04
728
Excavator
Lease -Fox Manor
513.00
1,581.00
728
Dozer
Lease
660.00
728
Tri -Axle
Lease
408.00
05 -03 -04
727
Excavator
Lease -Boone Mt. Road
1,215.00
1,997.00
727
Tri -Axle
Lease
782.00
08 -03 -04
744
Backhoe
Lease - Sheeley Road & 4 of July
storm
800.00
800.00
08 -30 -04
745
Excavator
Lease -Cherry Road
7,755.00
20,761.00
745
Dump truck
Lease -Cherry Road
5,610.00
745
Backhoe
Lease -Cherry Road
4,620.00
745
Triaxle
Lease -Cherry Road
1,156.00
746
Dozer
Lease -new park
1,620.00
09/14/04
751
Excavator
Lease - Chicken Hill
4,077.00
9,065.00
751
Dump
Truck
Lease - Chicken Hill
2,516.00
751
Backhoe
Lease - Chicken Hill
210.00
751
Triaxle
Lease - Chicken Hill
2,516.00
751
Shale
Chicken Hill
520.00
10/04/04
754
Backhoe
Lease for flood clean -up 9/04
280.00
2005
01/30/05
767
Excavator
Lease-
6,900.00
19,115.00
767
Dozer
Lease-
4,800.00
767
Dump
Truck
Lease
3,330.00
767
Triaxle
Lease
2,925.00
767
Drilling
Drilling shale pit in preparation for
blasting shale
1,160.00
02/27/05
771
Excavator
Lease 111 hours — Three Points
4,440.00
20,215.00
771
Dozer
Lease 114 — Three Points
5,700.00
771
Dump
Truck
Lease 86 hours — Three Points
2,580.00
771
Triaxle
Lease 111 hours — Three Points
4,995.00
771
Shale
Three Points
2,500.00
04/05/05
775
Dozer
Lease 138 hrs @ $50 /hr. - Three
Points
6,900.00
20,770.00
775
Excavator
Lease 121 hrs @ $40 /hr. — Three
Points
4,840.00
775
Dump
Truck
Lease 78 hrs @ $30 /hr. — Three Points
2,340.00
775
Triaxle
Lease 124 hrs. (i $45 /hr. -Three Points
5,580.00
775
Shale
Three Points
1,110.00
05/02/05
779
Dozer
Lease 150 hrs @ $50 /hr. - Three
Points
7,500.00
23,160.00
779
Excavator
Lease 140 hrs @ $40 /hr. — Three
Points
5,000.00
779
Triaxle
Lease 145 hrs @ $45 /hr. — Three
Points
6,525.00
779
Dump
Truck
Lease 107 hrs. @ $30 /hr. -Three Points
3,210.00
779
Shale
Three Points
325.00
05/02/05
780
Excavator
Lease 17.5 hrs @ $40 /hr. -Boone Mt.
Rd
700.00
2,500.00
780
Backhoe
Lease 20 hrs A $45 /hr. —Boone Mt. Rd.
900.00
780
Triaxle
Lease 20 hrs (i $45 /hr. -Boone Mt. Rd.
900.00
05/02/05
781
Dozer
Repair road - Energy Resources Inc.
1,200.00
5,059.00
781
Excavator
Repair road - Energy Resources Inc.
900.00
781
Triaxle
Repair road - Energy Resources Inc.
1,080.00
781
#3
limestone
114.33 tons
1,879.00
Gradizzi, 04 -033
Page 14
* Some of the Pollino invoices reflect charges for materials utilized in the various projects.
52. When operating Pollino equipment on township road projects Gradizzi was
compensated as a township employee.
53. Between 01/01/02 and 05/27/04, township time and payroll records confirm Gradizzi
worked 1,835.8 hours for the township and was compensated $25,464.24 while
Pollino equipment was being rented by the township.
Gradizzi, 04 -033
Page 15
54. Gradizzi ceased operating Pollino Excavating equipment on township jobs in
approximately August 2004, in order to avoid future conflict of interest.
a. Gradizzi ceased operating Pollino equipment after he was notified of the
State Ethics Commission investigation by letter dated July 19, 2004.
55. Gradizzi was issued W -2 Wage & Tax Statements by Fox Township which
confirmed income as follows while operating Pollino equipment:
2002 - $ 9,172.31
2003 - $12,052.16
2004 - $10,400.70
a. Gradizzi was issued a separate W -2's for his supervisor compensation.
b. Wages paid to Gradizzi for attendance at conventions were included in the
2002, 2003 and 2004 W -2's, for wages.
56. Gradizzi participated in approving payments to Pollino Excavating in 2001 and 2002
totaling $35,853.
a. Gradizzi voted to approve payments on six occasions to Pollino Excavating
totaling $35,858; at the same time he was paid by the township to operate
Pollino Excavating equipment on township projects.
1. Gradizzi voted on the following dates:
12/05/01 $ 1,150
03/06/02 $ 4,238
04/03/02 $ 7,600
08/07/02 $22,870
$35, 858
b. Gradizzi began abstaining on the votes to approve payment of the bills
which included payments to Pollino Excavating beginning in October 2002,
and continuing into 2003, 2004, and 2005.
1. Gradizzi began abstaining after receiving information from the
authority solicitor that he should abstain on Pollino matters.
57. Gradizzi signed six (6) checks totaling $51,969 authorizing payments to Pollino as
follows:
12/05/01 $ 1,150
02/08/02 $ 4,238
4/03/02 $ 7,600
05/07/03 $ 6,900
10/01/03 $ 9,072
05/05/04 $23, 009
$51,969
The following findings relate to Gradizzi's participation in awarding
a contract to Pollino Excavating for excavating work during the
construction of the township maintenance building.
58. In or about January and February 2004 the board of supervisors made a decision to
build a maintenance garage.
59. The maintenance garage project was publicly advertised and bid in The Daily Press
and The Courier Express.
Date
Invoice
E • ui • ment
Service
Cost
09 -01 -03
695
Excavator
Lease - Demolition 113
1,520.00
Tri -Axle
Lease
975.00
09 -30 -03
696
Dozer
Lease -New Maintenance Bldg.
2,920.00
696
Excavator
Lease
2,780.00
696
Tri -Axle
Lease
100.00
TOTAL
$8,295.00
Gradizzi, 04 -033
Page 16
a. Advertisements were published on 2/19/04 and 2/25/04.
b. The bids were due by May 5, 2004, at 6:00 p.m.
60. Fox Township received two bids on the maintenance garage project.
Hallstrom Construction, DuBois, PA- $205,100.00
Micale Construction, Kersey, PA - $202,860.00
61. Gradizzi participated in the board of supervisors vote to award the contract for the
construction of a new maintenance garage to Micale Construction at the May 5,
2004 board of supervisors meeting.
a. The contract was awarded by a 3/0 vote.
62. Excavation and site preparation was not part of the bid specifications.
a. The site preparation required the demolition of an existing structure on the
property.
b. Gradizzi formulated the plan to demolish the existing structure by using an
excavator.
1. Pollino Excavating owns an excavator.
63. The board of supervisors, including Gradizzi, made the decision not to include the
site preparation in the bid specifications to reduce project costs to avoid paying the
required prevailing wage rate.
a. During the planning of the maintenance project, the board discussed the
idea of saving money by completing the site preparation.
b. If the construction project would have required prevailing wage rates, project
costs would have increased.
64. Pollino Excavating's equipment was rented by the township for the purpose of the
maintenance garage site preparation.
a. No vote of the board was taken to award the work to Pollino Excavating.
b. Gradizzi participated in the discussions to utilize Pollino.
c. Gradizzi operated Pollino's excavator during the demolition and site
preparation.
65. Pollino Excavating submitted invoices for work performed in relation to the site
preparation and was compensated as follows by Fox Township:
Gradizzi abstained from the vote to approve payment of the bills which included the
Pollino Excavating invoices for the site preparation.
Gradizzi signed check #593 issued from the Landfill account, dated 10/01/03, in the
amount of $9,072.00, payable to Pollino Excavating.
Gradizzi, 04 -033
Page 17
a. The $8,295 total of invoices 695 and 696 were included as part of the
payment.
66. Gradizzi was paid as a township employee for operating Pollino's excavator during
the demolition and site preparation for the Maintenance Garage.
67. Pollino invoiced the township for 107.5 hours for the use of the excavator during the
site preparation for the maintenance garage.
a. Gradizzi was the only one who operated the excavator during the site
preparation for the maintenance garage.
b. The township pay rate for an equipment operator in 2003 was $16.02 per
hour.
68. Gradizzi was paid $1,722.15 as a township employee during the site preparation for
the maintenance garage, which included operating the excavator rented from
Pollino Excavating.
a. The hourly rate of $16.02 multiplied times 107.5 hours = $1722.15.
The following findings relate to the allegation that Gradizzi
participated in actions of the board to award a contract to a company
that subcontracted with a business with which he is associated.
69. At the June 16, 2003, meeting, the board of supervisors approved the purchase of
the Fox Township Senior Center from St. Boniface Parish for the amount of
$60,000.00.
a. The vote approving the purchase was unanimous with all three supervisors,
including Gradizzi, present.
b. The purpose of the purchase was to utilize the building as a township Senior
Center.
70. On February 25, 2004, the board of supervisors bid out the Senior Center project.
"Separate sealed BIDS to the Fox Township Supervisors for construction of a new
Senior Center, including approximately 6,300 square foot facility, concrete
foundation, walls and floors, general construction, site work, HVAC, plumbing and
electrical work to be located at 365 Main Street, Kersey, PA, 15846, Elk County.
The owner will receive bids at the Fox Township Municipal Building, located at 11
Irishtown Road, Kersey, PA 15846 until 2:00 p.m. local standard time on the 19
day of March 2004, publicly opened and read aloud at 4:00 p.m. during Fox
Township Supervisor's meeting that same day.
The work to be performed under one (1) contract. Bidders may submit proposals
for the following:
Contract No. 1 - General Construction"
a. The advertisement was placed with publishers of the Courier- Express /Tri-
County Sunday /Jeffersonian Democrat.
71. The bids were opened and awarded at the special meeting of the board of
supervisors held on March 19, 2004.
Gradizzi, 04 -033
Page 18
*The bid from Mazza Sheet Metal was for the HVAC only, and was therefore
rejected.
72. The bid from Micale Construction, dated March 19, 2004, included a list of sub-
contractors that would be used on the project.
a. Pollino Excavating was named as the subcontractor who would perform the
site work/excavating.
73. Micale Construction, located in Fox Township, subcontracts excavating work to
Pollino Construction.
a.
b.
Micale Construction Services, Inc. $ 856,000.00
Alternate #1 (paving) $37,420.00
Alternate #2 (food service equipment) $26,674.00
Alternate #3 (sidewalk ice melt) $6,485.00
J C Orr & Son, Inc. $1,025,598.00
Alternate #1 $41,089.00
Alternate #2 $28,173.00
Alternate #3 $ 6,940.00
Hallstrom Construction, Inc. $ 990,700.00
Alternate #1 $39,000.00
Alternate #2 $24,000.00
Alternate #3 $ 5,000.00
Mazza Sheet Metal, Inc. $ 125,250.00*
Alternate #1 $ - - --
Alternate #2 $ - - --
Alternate #3 $ 8,970.00
Between January 2002 and May 2005, Pollino Excavating performed
excavating services for Micale and was paid $376,297.00.
During this period, work for Micale represented 45% of all Pollino work.
74. Gradizzi participated in the vote to award the contract to Micale Construction.
a. The vote was unanimous, 3/0.
75. Micale Construction invoiced and was paid $976,909.50 by Fox Township as
follows for work on the Senior Center.
76. Gradizzi signed two of the checks issued to Micale Construction for work performed
on the Senior Center Project, including check #0646 in the amount of $107,364.00;
and check # 0745 in the amount of $43,059.90.
77. Pollino received payments totaling $8,360.00 from Micale for work performed on the
Senior Center.
78. Gradizzi operated Pollino equipment and received the prevailing wages rate for the
hours he worked for Pollino Excavating on the Senior Center Project.
a. Gradizzi was classified as an Operator — Class I.
79. Gradizzi's wages from Pollino for operating equipment on the Senior Center Project
resulted in additional compensation of $740.41.
a. Gradizzi received $740.41 more at prevailing wage rate than he would have
received at his normal wage.
1. 127 hrs. @ $22.22/hr = $2,821.94 - $2,081.53 = $740.41.
Gradizzi, 04 -033
Page 19
b. Gradizzi's regular rate of pay for Pollino was $16.39/hr. at the time the
Senior Project work was performed.
The following findings relate to Gradizzi's participation in awarding a prevailing
wage contract to build a park concession stand to a business that employed his
son.
80. In or around August 2001 the board of supervisors decided to award contracts for
the construction of a park concession stand.
a. The concession stand was included in the plans to develop the community
park, and was one of the goals for 2001.
b. The concession stand project was to be built following the prevailing wage
guidelines.
81. At the September 10, 2001 board of supervisors meeting, a motion was made to
advertise for bids for the concession stand for the new park, and fencing for the new
fields and perimeter at the new park.
a. The bids were to be opened at a special meeting on September 26, 2001.
b. Gradizzi seconded the motion.
c. The project was subject to prevailing wage requirements.
82. The following bids were received by the township in response to the
advertisement of the Concession Stand Project.
Kersey Builders $126,000.00
Excavating 8,000.00
Concrete 20, 000.00
Plumbing 8,500.00
Heating 9,500.00
Electric 8,000.00
Building Material 33,000.00
Labor Costs 39,000.00
Ruffner Enterprises $ 29,781.45
Concrete & Masonry (includes setting doorframes, etc.)
Micale Construction
Excavation, footers, floors, masonry, doors, overhead doors, stairs, floor
hear, shutters, under floor plumbing (material & labor)
$ 57, 000.00
Carpentry, electrical, plumbing and finish work
$ 44,194.00 (materials)
$ 50,000.00 (labor)
Shirey Masonry
Footer, floor, first floor, sidewalks, foundation
$ 17,365.80 (material & labor)
83. At the September 26, 2001, meeting, Gradizzi made the motion and
participated in the vote to award the concrete portion of the bid to Ruffner
Enterprises, Inc., at the bid price of $29,781.45 for concrete and masonry; and
the balance of the project to Kersey Builders at the bid price of $65,000.00.
a. The motion was unanimously approved.
Gradizzi, 04 -033
Page 20
84. At the time that Gradizzi participated in the award of the bid, his son, Robert
Gradizzi, was employed by Kersey Builders.
85. Robert Gradizzi's employment with Kersey Builders began in or around the first
week of August 2001, approximately one month prior to Randall Gradizzi's vote
to award the contract to Kersey Builders.
a. Ron Luchini hired Robert Gradizzi based on his observance of Robert
Gradizzi's capabilities and work habits while they were both volunteering
during the construction of the township park during the summer of 2001.
b. Randall Gradizzi did not solicit employment for Robert Gradizzi with
Kersey Builders.
c. Robert Gradizzi continued to work for Kersey Builders through the late
spring of 2002.
86. Weekly Payroll Certification forms submitted by Kersey Builders documented
Robert Gradizzi as having worked 366.25 hours on the Concession Stand Project,
earning $8,218.65 (366.25 hours @ $22.44 per hour) between 11/15/01 —
04/18/02.
87. Gradizzi participated in votes to approve payment of the bills which included the
invoices submitted by Kersey Builders for the work performed on the concession
stand.
MEETING CHECK
DATE #
12/05/01 378
01/07/02 386
02/06/02 394
03/06/02 409
04/03/02 413
04/03/02 415
05/01/02 430
08/07/02 464
Check No. Date
AMOUNT
$3,714.41
19, 338.30
7,591.70
14,134.22
9,000.00
11,447.99
13, 373.38
2,407.20
GRADIZZI'S
ACTION
Seconded — 3/0
Seconded — 3/0
Vote - 3/0
Seconded — 3/0
Seconded — 3/0
Seconded — 3/0
Vote - 3/0
Vote - 3/0
88. Gradizzi was one of three signatures on two of the checks issued to Kersey
Builders from the Fox Township Supervisor's Landfill Host Fee Account, for work
performed on the Concession Stand.
Amount Signatures
378 12/05/2001 $ 3,714.41 M -JZ -RG
386 01/07/2002 $19,338.30 M -JZ -RG
he following findings relate to Gradizzi participating in actions of the Fox
Township Sewer Authority related to his employer, Pollino Excavating.
89. Gradizzi has served on the Fox Township Sewer Authority Board of Directors since
January 4, 2000.
a. Gradizzi was appointed by the board of supervisors to fill an unexpired term
on the authority board which ended 12/31/02.
b. At the January 6, 2003 reorganization meeting of the board of supervisors
Gradizzi was reappointed to a five year term ending 12/31/07.
Gradizzi, 04 -033
Page 21
90. Sewer authority board members are not compensated.
a. The board consists of seven members appointed by the board of
supervisors.
91. In or around June 2001, requests for bids were sent to six area excavating
companies by Authority Clerk Juli Schlimm seeking quotes to serve as contractors.
The requests for bids were sent to:
Pollino Excavating
Vollmer Brothers Excavating
Dobson Excavating,
Kronewetter Excavating
Perry Casper Excavating
David Badeau Excavating
92. The request for bids detailed in part the following:
The Fox Township Sewer Authority seeks the submission of written bids
from contractors /excavators willing to assist the authority from time to time in
performing, as independent contractors, emergency repair work and /or
normal repair or maintenance work to portions of the authority- operated
community sewage collection system.
Each bid submitted must detail the proposed hourly charge for contractor's
services furnished for (1) labor and (2) equipment. Additionally, each bid
must include proof of contractor's liability insurance (minimum coverage of
$1,000,000) and workman's compensation insurance, such proofs either in
the form of Certificates of Insurance or copies of Declaration Sheets
evidencing such coverages in force through at least 12/31/00."
93. Raymond Pollino submitted a proposal to the Fox Township Sewer Authority on
behalf Pollino Excavating, which detailed the following quote:
Equipment $45.00 /hr.
Labor $25.00 /hr.
a. The proposal was undated.
b. The proposal was signed by Raymond Pollino.
c. A Certificate of Insurance accompanied the Proposal.
94. Pollino Excavating was the only contractor that submitted a bid in response to the
request for bids.
95. At the July 11, 2000 authority board meeting, the board voted to award a contract to
Pollino Excavating to provide excavating services to the authority on an as- needed
basis.
a. Gradizzi abstained on the vote to award the contract to Pollino Excavating.
96. Pollino Excavating was notified that it had been awarded the contracting work for
the Fox Township Sewer Authority by letter dated 07/18/00.
a. Receipt of the executed form was noted in the August 8, 2000, authority
board meeting minutes.
97. Between November 2000 and August 2002, three checks totaling $2,774 were
issued to Pollino Excavating from the authority revenue fund.
Gradizzi, 04 -033
Page 22
98. Gradizzi was present at the authority board meetings and participated in the
approval of the payments to Pollino Excavating.
99. Gradizzi did not sign any of the Fox Township Sewer Authority checks payable to
Pollino Excavating.
100. Pollino Excavating has not performed any other work for the sewer authority since
August 2002.
101. On February 22, 2002, the Fox Township Sewer Authority advertised for bids for the
purchase of a used one ton truck.
a. The specifications for the truck were prepared by Jerry Zimmerman, in his
capacity as a member and chairman of the sewer authority.
b. The basic use of the truck was to be for hauling sludge from the sewer plant
to the landfill.
c. Bids, due on 3/13/02 at 3:30 p.m., were opened on the same date at 6:00
p.m.
102. The specifications for the truck were listed as follows:
Used one (1) ton with dump body and plow; 1995 -1998; 4x4, 8 cyl. Diesel motor
with a turbo; 5 speed manual transmission; duel fuel tanks; under 50,000 miles; air
conditioning; ten foot (10') aluminum or stainless steel dump body; Pintel hitch;
eight foot (8') snow plow power angle; three (3) passenger bench seat; AM -FM
stereo cassette clock; heavy duty front suspension package; manual locking hubs;
power door locks /windows; interval wipers; roof clearance lights."
103. Pollino Excavating submitted the following quote for the used truck, at the price of
$22,000.00.
"1995 Ford f -350, 4x4, power stroke diesel motor, 5 speed manual transmission,
duel fuel tanks, air conditioning, 10 ft. aluminum dump body; pintel hitch, 3
passenger bench seat, an -fm stereo, cassette, clock, power door locks /windows,
interval wipers, roof clearance lights, heavy duty front suspension, manual locking
hubs, 8 ft western power angle plow, 47,800 miles."
a. Pollino's bid was the only one received by the authority in response to the
advertisement.
b. Pollino's truck was for sale prior to the advertisement by the township.
104. The Pollino bid was nearly identical to the authority specifications.
105. Gradizzi participated in the vote to approve the purchase of the truck from Pollino
Excavating at the March 13, 2002, authority board meeting.
a. The vote was 4/0/1.
1. Only five board members were present.
b. Rudy Pollino abstained on the vote.
1. Rudy Pollino is the brother of Raymond Pollino.
106. Authority revenue fund check #3936, dated 03/25/02, was issued to Pollino
Excavating in the amount of $22,000.00.
Gradizzi, 04 -033
Page 23
a. The check was signed by authority board members Jerry Zimmerman and
Carole Harshbarger.
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Randall Gradizzi, (Gradizzi),
has been a public official subject to the provisions of the Public Official and Employee
Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. § 401, et seq., as codified by the
Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S. § 1101 et
seq., which Acts are referred to herein as the "Ethics Act."
The allegations are that Gradizzi, as a Fox Township Supervisor, violated Sections
1103(a) (conflict) and 1103(f) (contracting) of the Ethics Act: when he participated in
actions and discussions of the Board of Supervisors resulting in private pecuniary benefits
for himself, immediate family members or businesses with which he is associated,
including but not limited to, the hiring of his sister as Recreation Park Director, and his
brother as a full -time employee with the Road Department; when he participated in
decisions of the Board of Supervisors to enter into contracts with Pollino Excavating, a
business with which he is associated, when the contracts were in excess of $500 and
entered into without an open and public process; when he approved payments to his
employer, Pollino Excavating, in 2001 and 2002; when he participated in actions of the
Board of Supervisors to approve a contract for the Senior Center to Micale Construction
when Pollino Excavating was a subcontractor for Micale; and when, as a member of the
Fox Township Sewer Authority, he participated in decisions to enter into contracts with
Pollino Excavating in excess of $500 without an open and public process.
Pursuant to Section 1103(a) of the Ethics Act quoted above, a public official /public
employee is prohibited from engaging in conduct that constitutes a conflict of interest.
The term "conflict of interest" is defined under Act 93 of 1998 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 a de minimis economic impact or
which affects to the same degree a class consisting of the
general public or a subclass consisting of an industry,
occupation or other group which includes the public official or
public employee, a member of his immediate family or a
business with which he or a member of his immediate family is
associated.
65 Pa.C.S. § 1102.
Section 1103(a) of the Ethics Act prohibits a public official /public employee from
using the authority of public office /employment or confidential information received by
holding such a public position for the private pecuniary benefit of the public official /public
employee himself, any member of his immediate family, or a business with which he or a
member of his immediate family is associated.
Section 1103(f) of the Ethics Act imposes certain restrictions as to contracting.
Section 1103(f) of Act 9 of 1989 provides:
Gradizzi, 04 -033
Page 24
Section 1103. Restricted activities
(f) No public official or public employee or his
spouse or child or any business in which the person or his
spouse or child is associated shall enter into any contract
valued at $500 or more with the governmental body with which
the public official or public employee is associated or any
subcontract valued at $500 or more with any person who has
been awarded a contract with the governmental body with
which the public official or public employee is associated,
unless the contract has been awarded through an open and
public process, including prior public notice and subsequent
public disclosure of all proposals considered and contracts
awarded. In such a case, the public official or public employee
shall not have any supervisory or overall responsibility for the
implementation or administration of the contract. Any contract
or subcontract made in violation of this subsection shall be
voidable by a court of competent jurisdiction if the suit is
commenced within 90 days of the making of the contract or
subcontract.
65 Pa. C. S. § 1103(f).
Section 1103(f) of the Ethics Act provides in part that no public official /public
employee or spouse or child or business with which he or the spouse or child is associated
may enter into a contract with his governmental body valued at five hundred dollars or
more or any subcontract valued at five hundred dollars or more with any person who has
been awarded a contract with the governmental body with which the public official /public
employee is associated unless the contract is awarded through an open and public
process including prior public notice and subsequent public disclosure.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are reproduced above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
1. The change of Gradizzi's work status from "emergency only" to "as-
needed."
Gradizzi has served on the three - member Board of Supervisors of Fox Township
(Township) since January of 2000 and on the Board of Fox Township Sewer Authority
(Authority) from January 2000 through June 2005. Gradizzi has also worked as the
Township Assistant Roadmaster since June 2004.
The Fox Township Board of Auditors annually meets to set the compensation for
Supervisors working as Township employees. For the years 2000 through 2002, the
auditors approved hourly wages for Gradizzi for work in emergency situations only. For
the calendar years 2003 through 2005, Gradizzi's work status was changed to an as-
needed basis. The action was taken by the Township Secretary, Kathleen Mosier, without
any direction from Gradizzi or the other two Township Supervisors to make the change in
Gradizzi's work status. Mosier did not advise the auditors of the change she made.
Mosier changed Gradizzi's status because she believed Gradizzi would be operating
equipment on Township projects. However, the Board of Supervisors never approved
such a change and the auditors likewise did not notice or authorize the change in
Gradizzi's work status. The auditors believed that Gradizzi would continue to work in
emergency situations only.
2. The hiring of Gradizzi's sister, Debra Agosti, as Township Recreation
Facilities Director.
Gradizzi, 04 -033
Page 25
Around 2000, the Township began to develop a new park on property that was
donated to the Township for such use. The plan entailed a community park with baseball,
soccer and football fields, as well as rest rooms, a concession stand, a walking /bicycle
track and parking. The Township received a $100,000 grant from DCNR for the
development of the park. Gradizzi was proactive as to the development of the new park.
In October of 2001, during a budget meeting, a discussion ensued regarding the creation
of a recreational position with an estimated salary of $25,250. Gradizzi participated in the
discussions at that meeting.
In March of 2002, Gradizzi participated in the action of the Board of Supervisors to
advertise in the Daily Press newspaper for a Recreational Facilities Director. One of the
applicants for the position of Recreation Director was Debra Agosti, the sister of Gradizzi,
who has served on the Township Recreation Board from September 2000 to the present.
Although six resumes were received for the Recreation Director position, the
Township Board of Supervisors did not interview any of the candidates. At a Board of
Supervisors' Meeting in May of 2000, the Chairman announced that Debra Agosti had
been hired as the Township Recreational Facilities Director. Although no vote was taken
by the Board to approve Agosti's hiring, the announcement was preceded by an executive
session at which all three supervisors, including Gradizzi, were present. Gradizzi
participated in that executive session but did not advocate for the hiring of his sister.
Agosti was initially hired on a part -time basis at $10 an hour with time and a half for
all work over 40 hours. In October 2002, the Board announced that Agosti's status
changed to full -time as Recreational Facilities Director with an annual salary of $21,840
plus benefits. No formal vote was taken to approve the change in Agosti's status but
Gradizzi was present in the executive session when the action was taken. In January
2005, when Agosti's salary as Recreation Director was raised to $25,000, Gradizzi
abstained on that vote. Gradizzi participated in the reorganizational meetings in January
of 2003, 2004 and 2005 when the Board approved the payrolls for each respective year
that encompassed all Township employees, including his sister. Gradizzi co- signed 53
payroll checks issued to Debra Agosti between May of 2002 and 2005.
3. The hiring of Gradizzi's brother, Joseph Gradizzi, to the Township road
crew.
In February 2003, Township Supervisor Zimmerman offered Gradizzi's brother,
Joseph Gradizzi (Joseph) employment without any Board action to approve the hiring.
Zimmerman knew that Joseph could operate equipment, drive trucks, weld, and repair
trucks and equipment. Zimmerman, during an executive session in October 2003, asked
the other Supervisors if he (Zimmerman) could hire Joseph as a full -time employee.
Gradizzi participated at the executive session and told Zimmerman that he did not want his
brother hired on the road crew. No vote was taken by the Board of Supervisors to approve
the hiring of Joseph. Joseph was then hired. Gradizzi co- signed 33 payroll checks issued
to his brother, Joseph, between February 2003 and June 2005.
4. Contracting between the Township and Pollino Excavating, a business
with which Gradizzi is associated.
Pollino Excavating has employed Gradizzi in a private capacity as an equipment
operator for 12 years. Pollino Excavating is owned and operated by Raymond Pollino.
Since Pollino owns various heavy equipment, the Township began renting such equipment
from Pollino Excavating in 2001. In December 2001, Supervisor Zimmerman authorized
the Township Road Department to begin a road widening project known as the Boone
Mountain Road and Four Points Road Project (Project).
When Zimmerman became Roadmaster in 2001, he changed the operations of the
Road Department whereby he made decisions on management and the projects to be
performed by the Road Department. Zimmerman talked to Gradizzi and Keller about
paying Gradizzi as a Township employee to operate the Pollino Excavating equipment on
Gradizzi, 04 -033
Page 26
the Township road projects. Zimmerman wanted to take such action because of a specific
concern about Gradizzi, as an employee of Pollino Excavating, operating its equipment on
Township jobs.
In December 2001, Zimmerman had discussions with Pollino about leasing
equipment. Zimmerman advised Pollino that he wanted to lease the equipment without an
operator and use Gradizzi as a Township employee to operate such equipment. Pollino
agreed to Zimmerman's rental proposal because the project was set up to be done during
winter months when Pollino generally only had sporadic work.
Zimmerman advised the Township secretary that Gradizzi would be working for the
Township to operate equipment that would be rented by the Township from Pollino
Excavating to work on Township road projects. Pollino Excavating leased equipment to
the Township and submitted invoices between November 2001 and September 2002.
Parenthetically, beginning in the Fall of 2002, Zimmerman changed his practice and began
soliciting telephone quotes for equipment rentals for Township road projects.
In the Fall of 2004, the Township publicly advertised for equipment rental prices for
the Project. Two bids were received, one of which was from Pollino Excavating. In
October 2004, the Board of Supervisors awarded the contract to Pollino Excavating with
Gradizzi abstaining on the vote. The minutes of that meeting reflect a statement by
Gradizzi that he was abstaining because his employer was one of the bidders.
While operating Pollino equipment on the Township road projects, Gradizzi received
compensation as a Township employee. However, in July 2004, Gradizzi ceased
operating Pollino Excavating equipment in order to avoid any conflict of interest. Gradizzi
participated in approving payments to Pollino Excavating in 2001 and 2002 totaling
$35,853. Subsequently, Gradizzi began abstaining on votes after receiving information
from the Solicitor that he should abstain on Pollino matters. Gradizzi co- signed six checks
totaling $51,969 in authorized payments to Pollino.
5. The award of a Township contract to Pollino Excavating to construct a
Township maintenance building.
At the beginning of 2004, the Board of Supervisors decided to build a maintenance
garage. The project was advertised in the Daily Press and Courier Express newspapers.
The Township received two bids for the maintenance garage project from Hallstrom
Construction and Micale Construction, the latter being the low bidder. A contract was
awarded to Micale Construction in May 2004 on a 3 -0 vote with Gradizzi participating.
Since the excavation and site preparation were not part of the bid specifications as a
means to reduce costs, Gradizzi proposed a plan to demolish the existing structure by
using an excavator. Pollino Excavating equipment was rented by the Township to do the
site preparation for the maintenance garage. Such action was taken without any vote by
the Board. Gradizzi participated in the decision to utilize Pollino. Gradizzi operated
Pollino's Excavating equipment during the demolition and site preparation process.
Although Gradizzi abstained on the vote to approve bills that included those from
Pollino Excavating, he co- signed one check that was payable to Pollino Excavating
equipment. In addition, Gradizzi was paid as a Township employee for operating Pollino's
Excavating equipment during the site preparation for the project. Gradizzi received
payment of $1,722.15 as a Township employee during the maintenance garage site
preparation in operating the excavator rented from Pollino.
6. The award of a Township contract to a company that subcontracted
with a business with which Gradizzi is associated.
In June 2003, the Board of Supervisors approved the purchase of a Fox Township
Senior Center from St. Bonafice Parish. Once the purchase was effectuated, it was
necessary to construct a new Senior Center. In March, the Board voted to solicit bids for
the Senior Center project.
Gradizzi, 04 -033
Page 27
Subsequently, the bids were opened at a special meeting of the Board of
Supervisors. Four different contractors were selected to perform various services on the
Project. One of the contractors, Micale Construction, in its bid for the project, submitted a
list of subcontractors that included Pollino Excavating. Micale Construction, as a matter of
course, subcontracts excavating work to Pollino Construction. The contract to Micale
Construction was approved by the Board in a 3 -0 vote with Gradizzi participating.
Micale Construction performed services under the contract and submitted invoices
to the Township. Gradizzi participated in the approval of payments to Micale Construction
and co- signed two of the checks made in payment.
Pollino Excavating, in turn, received payments from Micale for work performed on
the Senior Center. Gradizzi operated Pollino equipment for the Project and received the
prevailing wages for the hours he worked for Pollino Excavating. Gradizzi's wages from
Pollino for operating the equipment on the Senior Citizen project totaled $740.41.
7. Township contract to build a park concession stand with a business
that employed Gradizzi's son.
In August 2001, the Board of Supervisors decided to bid a contract for the
construction of a recreation park concession stand. In the following month, the Board of
Supervisors passed a motion to advertise for bids for the concession stand and fencing for
the fields. Bids were submitted by the following companies: Kersey Builders, Ruffner
Enterprises, Micale Construction, and Shirey Masonry. In a September 2001 meeting,
Gradizzi made a motion and participated in the vote to award the recreation park
concession contract to two companies: Ruffner Enterprises for the concrete work and
Kersey Builders to do the rest of the project. Gradizzi's motion passed by a unanimous
vote.
At the time the Township Board awarded the bid for the recreation park concession
stand, Gradizzi's son, Robert Gradizzi (Robert), was employed by Kersey Builders.
Although Robert's employment with Kersey Builders began about one month prior to the
vote to award the Township contract, Gradizzi did not solicit such employment for his son
with Kersey Builders. Robert worked 366.25 hours on the concession stand project as an
employee of Kersey Builders. Kersey Builders submitted invoices and received checks
from the Township. Gradizzi participated in the votes to approve the payment of bills that
included invoices from Kersey Builders. Gradizzi also co- signed two of the Township
checks and payments to Kersey Builders.
8. Participation by Gradizzi as a Township Sewer Authority Member as to
matters involving Pollino Excavating.
In June 2001, requests for bids were sent by the Township Authority Clerk to six
area excavating companies for the performance of emergency repair or maintenance work
on the Township Authority sewer system. Out of the six contractors who were contacted,
only Pollino submitted a bid. Pollino presented a quote separating the equipment and
labor costs for services. In July of 2000, the Authority Board voted to award the contract to
Pollino Excavating to provide such services to the Township Authority on an as- needed
basis. Gradizzi abstained on the vote to award the contract to Pollino Excavating.
Although Gradizzi did not sign any Township Sewer Authority checks in payment to Pollino
Excavating, he was present at Authority Board meetings and participated in the approval of
payments to Pollino Excavating.
In February 2002, the Township Authority advertised for bids for the purchase of a
used one -ton truck. Pollino Excavating submitted a quote for the used truck, which was
the only bid received by the Township Authority in response to its advertisement. Gradizzi
participated in the vote to approve the purchase of the truck from Pollino Excavating. The
motion passed on a 4 -0 -1 vote with Rudy Pollino, the brother of Raymond Pollino,
Gradizzi, 04 -033
Page 28
abstaining. Gradizzi did not co -sign the check in payment to Pollino Excavating for the
used truck.
Having summarized the above relevant facts, we must now determine whether the
actions of Gradizzi violated Sections 1103(a) and 1103(f) of Act 9 of 1989.
The parties have entered into a Consent Agreement and Stipulation of Findings.
The parties propose to resolve the case as follows:
"3. The Investigative Division will recommend the following in relation to the
above allegations:
a. That no violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Gradizzi
participated in actions and executive session discussions of the board
of supervisors resulting in his sister being hired to the position of Park
Director;
b. That no violation of Section 1103(a) of the Public Official and
Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred when Gradizzi
participated in actions and discussions of the board of supervisors
resulting in his brother being hired for a full -time position with the
Road Department;
c. That no violation of Sections 1103(a) and 1103(f) of the Public Official
and Employee Ethics Law, 65 Pa.C.S. §§ 1103(a) and 1103(f)
occurred when Gradizzi participated in decisions of the board of
supervisors to enter into contracts with Pollino Excavating for road
widening projects which were in excess of $500 and entered into
without an open and public process;
d. That an unintentional violation of Section 1103(a) of the Public
Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred
when Gradizzi voted to approve payments and sign [sic] checks
issued to Pollino Excavating.
e. That an unintentional violation of Section 1103(f) of the Public Official
and Employee Ethics Law, 65 Pa.C.S. §1103(f) occurred when
Gradizzi participated in actions of the board of supervisors to approve
a contract for the Senior Center to Micale Construction at a time when
a business with which he is associated was subcontracting with
Micale;
f. That no violation of Sections 1103(a) or 1103(f) of the Public Official
and Employee Ethics Law, 65 Pa.C.S. § §1103(a) or 1103(f) occurred
when as a member of the Fox Township Sewer Authority, Gradizzi
participated in decisions of the authority board of directors to enter
into contracts with his employer, Pollino Excavating in excess of $500
without an open and public process.
That a violation of Section 1103(a) and 1103(f) of the Public Official
and Employee Ethics Law, 65 Pa.C.S. §1103(a) and 1103(f) occurred
when Gradizzi participated in discussions of the board of supervisors
leading to a contract in excess of $500 being awarded to Pollino
Excavating for site preparation of the maintenance garage.
h. That an unintentional violation of Section 1103(a) of the Public
Official and Employee Ethics Law, 65 Pa.C.S. §1103(a) occurred
when, as a member of the authority, Gradizzi voted to purchase a
vehicle from his employer.
g.
Gradizzi, 04 -033
Page 29
Consent Agreement, ¶3.
We shall apply the provisions of the Ethics Act to the eight separate scenarios in
the order that they appear in the Fact Findings.
Regarding the first allegation concerning Gradizzi's change in his work status with
the Township from an emergency to an as- needed basis, it appears that the Investigative
Division has chosen to exercise its prosecutorial discretion to non pros this as well as
some of the other allegations, as for example, the Township concession stand contract.
The second allegation concerns Gradizzi's involvement in the hiring of his sister
Debra Agosti to the position of Township Recreation Facilities Director. The Board of
Supervisors was in executive session when the decision was made to hire Gradizzi's
sister. However, there is no factual information as to what actions Gradizzi took. Gradizzi
was present at the October 2002 budget meeting when his sister's position became full -
time with an annual salary plus benefits. At that executive session, there is no delineation
as to the extent or nature of Gradizzi's participation.
From the record in this case, the only definitive action by Gradizzi is that he signed
some payroll checks issued to his sister for her work as Recreation Director. However,
such appears to be routine, uncontested payroll expenditures. See, Krushinski, Order 168.
Accordingly, Gradizzi did not violate Section 1103(a) of the Ethics Act as to the hiring of
his sister as Township Recreation Facilities Director because there is no factual basis to
establish a use of authority of office. Dixon, Order 1297.
We will now consider the third allegation involving the hiring of Gradizzi's brother,
Joseph, to a position on the Township road crew. As to whether there were any uses of
authority of office on the part of Gradizzi, we have statements on his part that he did not
want Zimmerman to hire his brother as a Township employee. Obviously, this use of
authority of office was not to obtain any financial gain for his brother. As to Gradizzi's
participation in the executive session when it was determined that his brother would be
hired to a full -time position with the Township, he opposed the hiring. Lastly, we have
Gradizzi's general participation in the approval process to pay routine payroll bills.
Accordingly, Gradizzi did not violate Section 1103(a) of the Ethics Act as to the hiring of
his brother, Joseph, a Township employee, because there is no factual basis to establish a
use of authority of office. Dixon, supra.
The next allegation for consideration concerns Gradizzi participating in the
Township's contracting process with Pollino Excavating, a business with which Gradizzi is
associated, without an open and public process. As to this allegation, we shall first
consider Section 1103(f) of the Ethics Act as to contracting and then Section 1103(a) as to
conflict.
Under Section 1103(f) of the Ethics Act, the Boone Mountain Road widening project
was not put out for bids by the Township. Supervisor Zimmerman authorized the rental of
equipment from Pollino Excavating and then used Gradizzi as a Township employee to
operate that equipment during the road widening project. In that Gradizzi is an employee
of Pollino Excavating, it is a business with which he is associated. Beginning in the Fall of
2002, the contracts were solicited by telephone or through written quotes by Zimmerman.
The contracts from the Fall of 2002 were in excess of $500 and were awarded through an
open and public process as required by Section 1103(f) of the Ethics Act. Accordingly,
Gradizzi did not violate Section 1103(f) of the Ethics Act when Pollino Excavating, a
business with which Gradizzi is associated, entered into contracts with the Township which
were in excess of $500 and were awarded through an open and public process. It appears
that the contracting in 2001 was subject to a non pros by the Investigative Division.
As to Section 1103(a) of the Ethics Act, it was the decision of Supervisor
Zimmerman to undertake the road widening project and to utilize Pollino Excavating for the
rental of equipment to be used on the project. It was also the decision of Supervisor
Gradizzi, 04 -033
Page 30
Zimmerman to utilize Gradizzi as a Township employee to work on the road widening
project using the equipment rented from Pollino Excavating. As to such actions, there
were no uses of authority of office on the part of Gradizzi. Hence, Gradizzi did not violate
Section 1103(a) of the Ethics Act as to the award of contracts to Pollino Excavating in that
such actions were done by Supervisor Zimmerman alone without any use of authority of
office by Gradizzi.
However, Gradizzi voted on at least six occasions to approve payments to Pollino
Excavating and co- signed at least six checks authorizing payments to Pollino Excavating.
Accordingly, Gradizzi unintentionally violated Section 1103(a) when he participated in the
approval of invoices from Pollino Excavating and co- signed checks in payment to Pollino
Excavating, a business with which Gradizzi is associated. Stevenson, Order 1335.
The next allegation concerns Gradizzi's actions as to the award of a contract to
Pollino Excavating for the excavation work in preparation of the construction of a Township
maintenance building. As to Section 1103(f) of the Ethics Act, the construction of the new
maintenance garage for the Township was put out for bids but the excavation of site
preparation was not part of the bid specifications. In an effort to reduce costs, the Board of
the Supervisors made a determination that the excavation and site preparation would be
done in -house whereby the Township would rent equipment and its employees would
perform the work. The equipment was rented from Pollino Excavating without any action
by the Board or advertisement for bids. Accordingly, Gradizzi violated Section 1103(f) of
the Ethics Act when Pollino Excavating, the business with which he is associated, entered
into a contract to rent equipment for the excavation and site preparation of a Township
maintenance garage project when the contract was $500 or more and awarded without an
open and public process. Andzulis, Order 1081.
As to Section 1103(a) of the Ethics Act, the findings reflect that Gradizzi participated
in the decision to utilize Pollino. The findings do not delineate the nature or extent of
Gradizzi's involvement. Although Gradizzi abstained from the vote to approve payments of
bills that included invoices from Pollino Excavating, he co- signed at least one check in
payment to Pollino Excavating. As noted above, in that Gradizzi is an employee of Pollino
Excavating, it is a business with which he is associated. Accordingly, Gradizzi violated
Section 1103(a) of the Ethics Act when he participated in the decision to use Pollino
Excavating and co- signed a check in payment to Pollino Excavating, a business with which
he is associated, as to a Township project to build a maintenance garage. Stevenson,
supra.
The following allegation concerns Gradizzi's involvement as to the award of a
Township contract regarding a senior citizen's center to a company that subcontracted with
Pollino Construction. The record reflects that as to this Township project for the senior
center, there was an open and public bid process as to the award of contracts for different
aspects of the Project. One of the successful bidders was Micale Construction Services,
Inc. Micale is a business with which Gradizzi is not associated. Micale then awarded a
subcontract to Pollino Excavating to perform the site work/excavating. Based upon these
facts, Gradizzi did not violate Section 1103(f) of the Ethics Act as to the award of a
Township contract to Micale Construction Services that awarded a subcontract to Pollino
Excavating, a business with which Gradizzi is associated, in that the contract was awarded
through an open and public process and the subcontractor, but not the contractor, was a
business with which Gradizzi is associated.
Although the parties propose an unintentional violation of Section 1103(f), we
believe, based upon our analysis above, that a result of no violation of Section 1103(f) is
appropriate. Since our result is more favorable to Gradizzi, there is no legal issue in our
modifying this particular aspect of the Consent Agreement. As to Section 1103(a) of the
Ethics Act, it appears that the Investigative Division in the exercise of prosecutorial
discretion has elected to non pros this allegation.
The last allegation before us concerns actions by Gradizzi as a Sewer Authority
Board member relating to Pollino Excavating, a business with which he is associated. The
Gradizzi, 04 -033
Page 31
Township Authority Board advertised for bids for work that would involve emergency
repairs, normal repairs and maintenance of the municipal sewer system. Pollino
Excavating was the only contractor that submitted a bid in response to the advertisement
by the Township. Pollino obviously obtained the contract. Gradizzi participated at
Authority Board meetings in approving payments to Pollino Excavating, but did not co -sign
any Authority checks. In another instance, the Township Authority Board advertised for
bids for the purchase of a used truck. Once again, Pollino Excavating was the only
business that submitted a bid. Gradizzi participated in the vote to approve the purchase
of the truck from Pollino Excavating.
Gradizzi did not violate Section 1103(f) of the Ethics Act as to the award of the
contract to Pollino Excavating for the repair /maintenance work on the Authority sewer
system in that the contract was awarded through an open and public process.
Turning to Section 1103(a) of the Ethics Act, as to the maintenance /repair contract
work for the Authority sewage system, Gradizzi abstained on the vote to award that
contract. Accordingly, Gradizzi did not violate Section 1103(a) of the Ethics Act as to the
award of a contract to Pollino Excavating, a business with which he was associated, as to
a Township Authority to do repairs /maintenance work on the Township sewage system in
that there was no use of authority of office by Gradizzi.
Regarding the purchase of the used truck, the record reflects that Gradizzi
participated in the vote to purchase the truck. Such was a use of authority of office.
Juliante, Order 809. Even though Rudy Pollino, the brother of Raymond Pollino, who
owned Pollino Excavating, abstained as a Board member, Gradizzi participated in the vote.
Accordingly, Gradizzi unintentionally violated Section 1103(a) of the Ethics Act when he
voted to purchase a used truck from Pollino Excavating, a business with which he was
associated. Smith, Order 1147.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
We would also note that if this case were in a different procedural posture, our
analysis might yield different results as to certain allegations. However, this case is in the
posture of a Consent Agreement and it is our view that overall, the resolution is fair and
appropriate. In this regard, we believe the Board Chair is an individual who took charge of
the Township with Gradizzi and the other supervisor passively following the lead of the
Chair. Gradizzi's problems to a large extent arose because of this method of operation in
the Township.
We will take no further action in this case which is closed.
IV. CONCLUSIONS OF LAW:
1. Randall Gradizzi, a Fox Township Supervisor and Sewer Authority Member, Elk
County, is a public official subject to the provisions of Act 9 of 1989 as codified by
Act 93 of 1998.
2. Gradizzi did not violate Section 1103(a) of the Ethics Act as to the hiring of his
sister as Township Recreation Facilities Director in that there is no factual basis to
establish a use of authority of office.
3. Gradizzi did not violate Section 1103(a) of the Ethics Act as to the hiring of his
brother Joseph as a Township employee, in that there is no factual basis to
establish a use of authority of office.
4. Gradizzi did not violate Section 1103(f) of the Ethics Act when Pollino Excavating, a
business with which Gradizzi is associated, entered into contracts with the
Gradizzi, 04 -033
Page 32
Township which were in excess of $500 in that the contracts were awarded through
an open and public process from the Fall of 2002.
5. Gradizzi did not violate Section 1103(a) as to the award of contracts by the Board
Chairman to Pollino Excavating, a business with which Gradizzi is associated, in
that there was no use of authority of office by Gradizzi.
6. Gradizzi unintentionally violated Section 1103(a) when he participated in the
approval of invoices from Pollino Excavating and co- signed checks in payment to
Pollino Excavating, a business with which Gradizzi is associated.
7 Gradizzi violated Section 1103(f) of the Ethics Act when Pollino Excavating, the
business with which he is associated, entered into a contract to rent equipment for
the excavation and site preparation of a Township maintenance garage project
when the contract was $500 or more and awarded without an open and public
process.
8. Gradizzi violated Section 1103(a) of the Ethics Act when he participated in the
discussion to use Pollino Excavating, and as to the bill approval process by co-
signing a check in payment to Pollino Excavating, a business with which he is
associated, as to a Township project to build a maintenance garage.
9. Gradizzi did not violate Section 1103(f) of the Ethics Act as to the award of a
Township contract to Micale Construction Services that awarded a subcontract to
Pollino Excavating, a business with which Gradizzi is associated, in that the
contract was awarded through an open and public process and the subcontractor,
but not the contractor, was a business with which Gradizzi is associated.
10. Gradizzi did not violate Section 1103(f) of the Ethics Act as to the award of the
contract to Pollino Excavating for the repair /maintenance work on the Authority
sewer system in that the contract was awarded through an open and public
process.
11. Gradizzi did not violate Section 1103(a) of the Ethics Act when he participated in
the approval of payments to Pollino Excavating, a business with which he was
associated, as to a Township Authority contract for Pollino Excavating to do
repairs /maintenance work on the Township sewage system in that Gradizzi
abstained on the award of the contract.
12. Gradizzi unintentionally violated Section 1103(a) of the Ethics Act when he voted to
purchase a used truck from Pollino Excavating, a business with which he was
associated.
In Re: Randall Gradizzi
ORDER NO. 1379
File Docket: 04 -033
Date Decided: 9/12/05
Date Mailed: 9/21/05
1 Randall Gradizzi ( "Gradizzi "), a public official in his capacity as a Fox Township
Supervisor and Sewer Authority Member, Elk County, did not violate Section
1103(a) of the Ethics Act as to the hiring of his sister as Township Recreation
Facilities Director in that there is no factual basis to establish a use of authority of
office.
2. Gradizzi did not violate Section 1103(a) of the Ethics Act as to the hiring of his
brother Joseph as a Township employee, in that there is no factual basis to
establish a use of authority of office.
3. Gradizzi did not violate Section 1103(f) of the Ethics Act when Pollino Excavating, a
business with which Gradizzi is associated, entered into contracts with the
Township which were in excess of $500 in that the contracts were awarded through
an open and public process from the Fall of 2002.
4. Gradizzi did not violate Section 1103(a) as to the award of contracts by the Board
Chairman to Pollino Excavating, a business with which Gradizzi is associated, in
that there was no use of authority of office by Gradizzi.
5. Gradizzi violated Section 1103(f) of the Ethics Act when Pollino Excavating, the
business with which he is associated, entered into a contract to rent equipment for
the excavation and site preparation of a Township maintenance garage project
when the contract was $500 or more and awarded without an open and public
process.
6. Gradizzi unintentionally violated Section 1103(a) when he participated in the
approval of invoices from Pollino Excavating and co- signed checks in payment to
Pollino Excavating, a business with which Gradizzi is associated.
7 Gradizzi violated Section 1103(a) of the Ethics Act when he participated in the
discussion to use Pollino Excavating, and as to the bill approval process by co-
signing a check in payment to Pollino Excavating, a business with which he is
associated, as to a Township project to build a maintenance garage.
8. Gradizzi did not violate Section 1103(f) of the Ethics Act as to the award of a
Township contract to Micale Construction Services that awarded a subcontract to
Pollino Excavating, a business with which Gradizzi is associated, in that the
contract was awarded through an open and public process and the subcontractor,
but not the contractor, was a business with which Gradizzi is associated.
9. Gradizzi did not violate Section 1103(f) of the Ethics Act as to the award of the
contract to Pollino Excavating for the repair /maintenance work on the Authority
sewer system in that the contract was awarded through an open and public
process.
10. Gradizzi did not violate Section 1103(a) of the Ethics Act when he participated in
the approval of payments to Pollino Excavating, a business with which he was
associated, as to a Township Authority contract for Pollino Excavating to do
Gradizzi, 04 -033
Page 34
repairs /maintenance work on the Township sewage system in that Gradizzi
abstained on the award of the contract.
11. Gradizzi unintentionally violated Section 1103(a) of the Ethics Act when he voted to
purchase a used truck from Pollino Excavating, a business with which he was
associated.
BY THE COMMISSION,
Louis W. Fryman, Chair