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In Re: David Renaldo,
Respondent
STATE ETHICS COMMISSION
FINANCE BUILDING
613 NORTH STREET, ROOM 309
HARRISBURG, PA 17120-0400
File Docket:
X-ref:
Date Decided
Date Mailed:
FACSIMILE 717-787-0806
WEBSITE: www,e bJg_;p _p.goy
18-050
Order No. 1761
9/25/19
10/9/19
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Melanie DePalma
Michael A. Schwartz
Shelley Y. Simms
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation re arding possible violation(s) of the Public Official and Employee Ethics
Act ("Ethics �5 Pa. C. S, § 1101 et sect., by the above -named Respondent. At the
commencement of its investigation, t1i6' Fnivestigative 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 "Investi�ative Complaint." A Stipulation of Findings and a Consent Agreement were
subsequently submitted b the parties to the Commission for consideration. The Stipulated
Findings are set forth as �he Findings in this Order. The Consent Agreement has been
approved.
ALLEGATIONS:
That David Renaldo, a ublic official ublic employee in his capacity as a Su ervisor
for Washin ton Township, 4orthamptontunty, violated Sections 1103(a) F1104(a),
11 4 d, 4 5 and ' 105(b)(9) of the State Ethics Act (Act 9
04 a. 04 ( d'
1 1 au
thority
f his
1 0 (' a t
"t 1 1 utilized d the h r
il z i to u w 0 ty 0 d between Washington n 0 n h an a
1 '5 ' 1
Of 0 9 65 Pa 1105(b�(1),1105(b)(4),1105(b)(5), and
I
1105(b)9),hen he u public office to enter into a contractual
) be en Wa
w
agreement business with which he is associated,
pecuniary
a
m y Inc.,u t g T p u Pi i
s I er
namely Renaldo'sre I n in a n n to himself and/or Renaldo's Inc.; when
h 0 rt 0 0 t
e participated in discussions and/or actions o the Board of Supervisors of Washington
Township to approve and ratify payments)) of invoices to Renaldo's Inc., including serving
as a Township signatory on payment Aecks; when he filed deficient Statements of
Financial Interests as follows: failed to report the calendar year on the filing intended forthe
2013 calendar year; failed to provide a response to "Governmental ntity" on filings
intended for the 2013 and 2015 calendar years; failed to provide a response to "Creditors"
on filings intended for the 2013 and 2015 calendar years; failed to report his financial
interest in Renaldo's Inc. on filings
intended for the 2014 calendar year; failed to report
"Washington Township" as a d rect/indirect source of income on filings intended for the
2014 calendar year; failed to provide a response to "Direct/indirect sources of income" on
filings intended for the 2015 calendar year; and when he failed to file a 2017 calendar year
Statement of Financial interests.
David Renaldo ("Renaldo") served as a Member of the Washington Township
Renaldo, 18-050
P —a g—e—"2 7
('Township'") Board Of Supervisors ("Board of Supervisors") from approximately
998 through December 2017.
a. The Township is a Second Class Township governed by a three -Member
Board of Supervisors.
b. Renaldo was Chairman of the Township Board of Supervisors from 2013
through 2017.
1. Renaldo also was emplo�ed as the Township's Roadmaster during
each of those years (2013-2017).
Z Professionally, Renaldo owns a business named] "Renaldo's InG.," [located at] 811
Third Avenue, Bangor, PA 18M 3.
a. Renaldo's Inc. provides plumbing, heating, air conditioning and electrical
services to both residential and commercial customers.
b. Renaldo's Inc. consists of four full-time employees, including Renaldo and a
part-time secretary.
3. Renaldo's Inc. maintains Articles of Incorporation on file with the Pennsylvania
Department of State.
a. Articles of Incorporation for Renaldo's Inc. were filed with the Pennsylvania
Department of �tate, Corporation Bureau, on December 31, 1973.
b. David A. Renaldo is the only listed corporate officer, holding the positions of
President, Secretary, Treasurer, and Vice -President.
C, The Pennsylvania Department of State assigned entity number 302179 to
Renaldo's Inc.,nwith a registered address of 813 Third Avenue, Bangor,
Pennsylvania.
4. The Township annually solicits quotes for mechanical repair services.
a. This practice has been in place since at least 2013,
b. Bids are obtained in an effort to avoid a potential conflict of interest in the
event Renaldo's Inc. would be selected,
C. Proposals/quotes were reviewed and considered during public Board of
Supervisors meetings,
5. The Township annually runs an advertisement seeking bid proposals for mechanical
n The Express Times newspaper, which includes circulation in Lehigh and
repair
Counties.
a. Township Secretary Gail Putvinski 'Putvinski") receives the bid proposals
and provides them to the Board of Upervisors for review.
b. The review process is conducted through an open and public process due to
the possibility of Renaldo's business (Renaldo's Inc.) being awarded a
contract by the Township.
C. The annual cost of the mechanical repair contract was never expected to
exceed the required bidding threshold in the Second Class Township Code.
d. Mechanical repair contracts are awarded by the Township on a fiscal year
basis, as opposed to calendar year.
6. Renaldo's Inc. was the lowest and/or only bidder regarding mechanical repair
between 2013 and 2017.
a. Renaldo's Inc. was the only entity to submit a bid for the 2013-14, 2015-16,
2016-17 and [20171-18 fiscal years.
Renaldo's Inc. submitted quotes of $65.00 per hour for fiscal year
21013-14, $67.00 per hour for fiscal year 2015-16, $68.00 per hour for
fiscal year 2016-17, and $68.00 per hour for fiscal year 2017-18.
b, A total of four companies submitted quotes for the 2014-15 fiscal year with
Renaldo's Inc. submitting the lowest quote at $65.00 per hour.
1. 2014-15 fiscal year quotes were as follows:
Renaldo's Inc. $65.00 per hour
GR Electric, LLC $68.00 per hour
Total Electric $95.00 per hour
GMH Associates $.00 per hour
C. Renaldo's Inc. has been providing maintenance and repair services to the
Township through a contractual relationship since at least 2007.
7. Renaldo abstained from actions taken by the Township Board of Supervisors in
annually awarding mechanical repair contracts since 2013.
a. Mechanical repair contracts were awarded during the following Board of
Supervisors Meetings:
o 2013-14 Contract: June 12, 2013
o 2014-15 Contract: June 11, 2014
0 2015-16 Contract: July 8, 2015
0 2016-17 Contract: July 13, 2016
o 2017-18 Contract: June 14, 2017
8. Putvinski would typically contact Renaldo's Inc. to identify any mechanical repairs
needed by the Township.
b. Prior Board of Supervisors authorization was not required for any repair work,
since the Township maintained a contract specific to the type/scope of work.
9. Payments made for work performed by Renaldo's Inc. were approved as part of the
Township's routine bill paying process.
a. Invoices were submitted to Putvinski for initial review.
b. Putvinski included the invoice amount on a monthly bill list which was made
available to the Board of Supervisors for review prior to its monthly meeting.
C. Putvinski also prepared the actual payment check which was then signed by
her as Secretary/Treasurer and by two authorized Township signatories
(Supervisors).
Renaldo, 18-050
P —ag —64 —
All three Supervisors maintain signature authority over Township
financial accounts.
d. Township bill lists are approved in their entirety by a single motion and vote.
e. Checks are issued for payment after approval.
10. On or about February 27, 2013, Renaldo initiated discussions with the Board of
Supervisors regarding replacing the Township's existing salt shed due to the poor
structural condition of the shed.
a. Renaldo was Chair of the Board of Supervisors and Roadmaster at the time.
b. Renaldo repeated the need for a new salt shed during the May 8, 2013,
meeting of the Board of Supervisors.
During that meeting, Renaldo reported that he pursued some
estimates while attending the Pennsylvania State Association of
Townshipp Su pervisors (111SATS") Conference, advising the Board that
for an 0-9 ton capacity shed, the estimated cost would be
approximately $80,000.00.
11. Between the June 12 2013'and September 11, 2013, Township meetings, Renaldo
held discussions wit k the Keystone Purchasing Network ("PN") to develop a
proposal for a new Township salt shed,
12. KPN is a cooperative purchasing program with a stated mission "to save school
districts and other public agencies time and money by soliciting bids and leveraging
demand ... the overwhelming majority of our work centers on requests for bids,
contract awards and contract management."
a. The Township had previously utilized the services of KPN to obtain a
contractor for work associated- with the construction of a pole building.
b. KPN provided the Board of Supervisors a proposal for a new salt shed which
was reported at the September 11, 2013, Township meeting.
Minutes reflect that the Board of Supervisors intended to use the
proposal data as part of the budget process for 2014.
13. During the March 12, 2014, Township meetin , Renaldo reported that "Oft
I Consulting, Inc. (Township Engineer) has been asked to measure the area for the
salt shed and Chairman Renaldo asked that a meeting be scheduled with the KPN
contractor, who submitted the proposal last year."
a. Renaldo's Roadmaster Report provided during the Board's April 9, 2014,
meeting indicated that the Board was dissatisfied with the contractor meeting
and would obtain information from alternate contractors, and that Renaldo
would research salt sheds at the PSATS conference.
14. During the May 14, 2014, meeting of the Board of Supervisors, Renaldo made a
motion and participated in a 3-0 vote of the Board of Supervisors to begin the initial
steps necessary for the salt shed replacement.
a. The motion approved expending $3,800.00 for Oft Consulting, Inc. to develop
the site plan required to obtain a permit from Labor & Industry.
Oft Consulting, Inc. was the Township Engineer.
Renaldo, 18-050
gem
2. Jeff Ott (owner) was responsible for the design work.
15. During the June 11, 2014, meeting of the Board of Supervisors, Renaldo made a
motion and participated in the 3-0 vote of the Board of 9upervisors aUthorizin?the
preparation of a bid package for the salt shed, upon receipt of the specifications
from the engineer.
a. Renaldo made the motion to authorize the preparation of a bid package
during the July 9, 2014, meeting of the Board of Supervisors.
1. The engineer had provided the salt shed specifications to the Board of
Supervisors at the July 9, 2014, meeting.
2. This motion also passed by a 3-0 margin.
b. Township Engineer Jeff Ott recommended a timeline of advertising on July
25 and July 30; receivin and opening bids on August 11; and awarding the
contract on August 13, Y014.
16. Legal ads for the salt shed were placed in The Express Times on July 25, 2014, and
July 30, 2014,
a. Bids were due at the Township by 11,00 a.m. on Monday, August 11, 2014.
b. Bid specifications and an addendum were prepared by Township Engineer
Oft Consulting, Inc.
17. Bid specifications called for quotes/bid prices on a 2,584 minimum square foot
building, per dimensions shown on the structural plans; pad preparation and
foundation installation; site grading; stone driveway, erosion control; and
stabilization per the plan.
a. Bid specifications did not contain any provisions for lighting or electrical
installation.
b. Oft Consulting, Inc. completed an addendum to the bid specifications dated
August 6, 2014.
1 The addendum included the bid categories seeking costs for base and
wearing courses of SuperPave.
2. The addendum did not include any provisions for lighting/electrical,
18, Oft Consulting
, ,, Inc. did not include any provisions for lighting/electrical in any of the
bid specifications submitted.
a. The Board of Su
ervisorstasked Ott Consulting, Inc. with the salt shed's site
design and building
design only.
b. Jeff Ott developed bid secifications based on the scope of the project
directed by the Board of Supervisors.
C. Oft did not have any discussions with Township officials about including
lighting/electrical in the bid specifications.
d. The Board of Supervisors gave no authorization to include specifications for
lighting/electrical.
Renaldo, 18-050
Psage 6
Renaldo participated in the action of the Board of Supervisors to
exclude lighting/electrical as part of the bid specifications.
19. Renaldo's Roadmaster's Report presented during the August 13, 2014, meeting of
the Board of Supervisors reflected that the salt shed project was re -advertised with
bids due on August 22, 2014.
a. Renaldo was absent from the August 13, 2014, meeting of the Board of
Supervisors.
b. The reasons stated for the re -advertising were requests for additional time to
respond by plan holders and changes to the building layout and site prep.
20. Following the receipt of bids regarding the salt shed's construction, during the
August 27, 2014, meeting of the Board of Supervisors, Renaldo participated in a 2-0
vote awarding the salt shed project to the low bidder, B&B Pole Building Company.
a. Minutes reflect the Township received three bids which were reviewed by
Engineer Jeff Off.
lb. Bids were received from: (1) B&B Pole Building Company, in the amount of
$153,348.00; (2) CB Structures, Inc., in the amount of 7,480.60; and (3)
NuCor Management Inc., in the amount of $214,985.00.
C, None of the three bids included a quote for lighting/electrical.
21 Renaldo provided the Board of Supervisors with updates on the project during the
September 10, 2014, October 8, 2014, October 22, 2014, and November 5, 2014,
meetings of the Board of Supervisors.
a. During the November 5, 2014, meeting, as part of his Roadmaster Report,
Renaldo
o informed the Board of Supervisors that the salt shed project was
completed.
22. Minutes of the November 5, 2014, Board of Supervisors meeting confirm that
Renaldo, as part of his Roadmaster's Report, reported the following:
a. "Lighting for the salt shed was not included in the original construction. Dave
Renaldo reviewed an estimate from Renaldo's Inc. in the amount of
$5,310.47 for LED lights for the salt shed. Gail Putvinski reported that there
were no additional funds in the Capital Reserve Fund. The recommendation
is to use the Building, Professional Services line item.
Supervisor Smith moved, and Chairman Renaldo seconded to approve LED
lights for the Salt Shed with installation by Renaldo's Inc. in the amount of
$ 310.47. Vote 2-0." (Supervisor David Hess was absent from the meeting.)
b. The Building Professional Services line item was to be used to fund the costs
of the lighting.
23. Immediately after informing the Board of Supervisors during the November 5 2014
meeting that the salt shed was completed, Renaldo informed the Board he obtained
an estimate from his company, Renaldo's Inc., for the installation of lighting and
electrical.
a. Renaldo was neither directed nor authorized to obtain a quote.
Renaldo, 18-05�O
Fa—g—e7—
b. Supervisor Robert Smith then made a motion to have Renaldo's Inc, install
lighting in the shed at a cost of $5,310.47.
C. Renaldo seconded the motion and participated in a 2-0 vote approving the
motion.
d. The motion passed by a 2-0 vote, with Renaldo casting the deciding vote,
24. Township Board of Supervisors meeting minutes do not include any information or
explanation as to why lighting/electrical was not included with the initial construction
bid/plan.
a. Renaldo was the primary, Board of Supervisors contact with Oft Consulting,
the firm preparing the bid specifications.
b. Renaldo's 2014 estimate was the only one considered by the Board of
Supervisors,
The Board of Supervisors did not publicly advertise seeking
quotes/bids for the electrical work.
C. Renaldo utilized the authority of his office by reviewinthe estimate from a
business with which he is associated, namely Renaldo's Inc., and
participating in action of the Board of Supervisors to accept the estimate to
engage Renaldo's Inc. to install LED lighting in the recently completed
Township salt shed,
25. Michael Farace, an employee of Renaldo's Inc., performed electrical work at the
newly constructed Township salt shed on January 12th, 14th, 15th, and 16th, 2015,
a. This work was initiated at the direction of Renaldo as owner of Renaldo's Inc.
At the time Renaldo directed his employee to install the LED lighting
at the Township salt shed, he simultaneously held the public positions
of Township Supervisor and Roadmaster.
26, Business records of Renaldo's Inc. include a timecard for Farace for the month of
January 2015.
a. Farace's timecard had reported hours working on the Township project on
January 121h, 14th, 15th and 16th, 2015.
b. Recorded hours worked by day included 2 hours on January 12th, 3 Y2hours,
on January 14th, 8 hours on January 151h, and 8 hours on January 16th.
C. Labor billed for the salt shed light installation totaled 20.5 hours.
27. On January 20, 2015, the Township received Renaldo's Inc. invoice number 13469
in the amount of $5,310.47 for labor and materials associated with the installation of
6 LED light fixtures at the salt shed.
a. Itemized charges were:
LED Light Fixfures: $3,418.47
PVC conduit, pipes, fittings, wiring: $592.00
Labor: $1,300.00
28. The $1,300.00 fee for labor was itemized as 20 hours at $65.00 per hour.
a. $65.00 per hour was the hourly rate Renaldo's Inc. maintained with the
Township pursuant to the 2014-15 fiscal year mechanical repair contract.
b. The invoice did not specify the hourly rate, just a labor fee total.
C. Farace's timecard reflected 20.5 hours worked on the project with only 20
hours being invoiced to the Township.
29. The Township did not seek any bids or other proposals for the salt shed light
installation.
a. Renaldo viewed the work as being an extension of the mechanical repair/
maintenance contract Renaldo's Inc. had then existing with the Township.
30. Renaldo's Inc. invoice no. 13469 dated January 15, 2015, totaled $5,310.47 for the
materials and installation of the salt shed lighting.
a. Included was an additional, non -related $65.00 invoice, for a total pa ment in
the amount of $5,375.47 being issued to Renaldo's Inc. on January Y9,2015.
b. The Township payment check was signed by the Secretary/Treasurer and
two Supervisors — excluding Renaldo.
31, Renaldo participated in official actions taken during the February 11, 2015, meeting
of the Board of Supervisors approving payment to a business with which he is
associated.
a. That approval was included as part of the routine payment of bills, passing by
a 3-0 vote.
32. Renaldo's Inc. realized a pecuniary benefit/profit of $5,310.47 from the installation of
lights at the Township salt shed.
a. Labor fees invoiced to the Township totaled $1,300.00,
b. Renaldo's Inc. invoiced the Township $3,418.47 for the light fixtures.
C. The Township was charged $592.00 for additional materials associated with
the light installation.
THE FOLLOWING FINDINGS RELATE TO RENALDO'S FAILURE TO FILE A 2017
CALENDAR YEAR STATEMENT OF FINANCIAL INTERESTS FORM; AND DEFICIENT
FILINGS MADE IN CALENDAR YEARS 2013, 2014, AND 2015.
33. Renaldo, in his official capacity as a Member of the Township Board of Supervisors,
was annually required to file a Statement of Financial Interests form by May Ist each
year reporting information for the prior calendar year.
34. Statement of Financial Interests forms on file with the Township for Renaldo as of
November 28, 2018, included the following filings:
a. Calendar Year. 2017
No forms filed
b. Calendar Year: 2016
Dated., 03/06/17 on form SEC-1 REV. 01/17
Position: Supervisor
Creditors: None
Direct/indirect Sources of Income: Renaldo's Inc.; Washington Township
Office Directorship or Employment in any Business: Renaldo's Inc. -President
Financial Interest in any business: Renaldo's Inc.-1 00%
All other financial interests: None
C. Calendar Year: 2015
Dated: 09/14/16 on form SEC-1 REV. 0 1 /15
Position: Su pervisor/Roadm aster
Governmental Entity: No response
Creditors: No response
Direct/Indirect Sources of Income: No response
Office Directorship or Employment in any Business: Renaldo's Inc. -President
Financial Interest in any business: Renaldo's Inc. -Owner
All other financial interests: None
d. Calendar Year: 2014
Dated: 10/14/15 on form SEC-1 REV. 01/15
Position: Supervisor
Creditors: None
Direct/indirect Sources of Income: Renaldo's Rentals
Office Directorship or Employment in any Business: Renaldo's Inc. -President
Financial Interest in any business: None
All other financial interests: None
e. Calendar Year: 2013
Dated-, 05/14/14 on form SEC-1 REV. 01114
Position: Su pery isor/Road master
Governmental Entity: No response
Calendar Year: No response
Creditors: No response
Office Directorship or Employment in any Business: Renaldo's Inc. -President
Financial Interest in any business: Renaldo's Inc,100%
All other financial interests: None
35. Statement of Financial Interests forms detailed in the prior Finding contain the
following reporting deficiencies:
a.
36. During an investigative interview conducted with Renaldo on January 11, 2019,
Renaldo confirmed having the filing deficiencies detailed in the prior Finding.
a. Renaldc, also confirmed failing to file a Statement of Financial Interests by
May 1, 2018, for the 2017 calendar year.
37. On February 7, 2019, the State Ethics Commission received amended Statement of
Financial Interests forms from Renaldo correcting the filing deficiencies reported in
the previous Findings. Amended filings report the following financial interests:
a. Calendar Year: 2017
Dated: February 2, 2019 on form SEC-1 Rev. 01118
IZ' - 11 . pr 1
I i�m I
Creditors: None
Direct/indirect Sources of Income: Faith Austin, Dean Sanders, Renaldo's
Inc.
Office, Directorship or Employment in any Business: Renaldo's Inc.,
President
Financial Interest in any Business: Renaldo's Inc., 100%
All other financial interests: None
b. Calendar Year: 2016 (amended)
Dated: February 2, 2019 on form SEC-1 Rev. 01/18
Creditors: None
Direct/Indirect Sources of Income: Faith Austin, Dean Sanders, Renaldo's
Inc.
Office, Directorship or Employment in any Business: Renaldo's Inc,,
President
Financial Interest in any Business: Renaldo's Inc., 100%
All other financial interests: None
C. Calendar Year: 2015 (amended)
Dated: February 2, 2019 on form SEC-1 Rev. 01/18
Creditors: None
Direct/Indirect Sources of Income: Faith Austin, Dean Sanders, Renaldo's
Inc.
Office Directorship or Employment in any Business: Renaldo's Inc.,
President
Financial Interest in any Business: Renaldo's Inc., 100%
All other financial interests: None
d. Calendar Year: 2014 (amended)
Dated: February 2, 2019 on form SEC-1 Rev. 01/18
Creditors: None
Direct/indirect Sources of Income: Faith Austin, Dean Sanders, Renaldo's
Inc.
Office, Directorship or Employment in any Business: Renaldo's Inc.,
President
Financial Interest in any Business: Renaldo's Inc., 100%
All other financial interests: None
e. Calendar Year: 2013 (amended)
Dated: February 2, 2019 on form SEC-1 Rev, 01118
Creditors: None
Direct/Indirect Sources of Income: Faith Austin, Dean Sanders, Renaldo's
Inc.
Office, Directorship or Employment in any Business: Renaldo's Inc.,
President
Financial Interest in any Business: Renaldo's Inc,, 100%
All other financial interests: None
38. Renaldo received compensation in the amount of $2,500.00 annually for the position
of Township Supervisor while failing to have properly filed Statement of Financial
Interests forms on file with the Township for the 2013, 2014, 2015 and 2017
calendar years.
a. Renaldo's original Statement of Financial Interests filed for the 2016 calendar
year did not have any obvious defects.
b. As a result of information disclosed by Renaldo durinq an investigative
interview, it was determined that Renaldo did not report all Sources of rental
Renaldo, 18-050
P—ag-e-TT
income in excess of $1,300.00 upon his 2016 calendar year filing.
Renaldo corrected/amended his 2016 calendar year Statement of
Financial Interests to properly reflect all reportable direct/indirect
sources of income.
Ill. DISCUSSION:
As a Member of the Washington Township ("Township 11 ), Pennsylvania, Board of
Supervisors Board of Supervisors ) from approximately 1998 through December 2017,
Respondent Mid Renaldo, also referred to herein as "David A. Renaldo," "Renaldo,"
"Respondent Renaldo," and "Respondent," was a public official subject to the provisions of
the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pat& § et seg.
The alle ations are that Res ondent Renaldo violated Sections 11 03(a), 11 04(a)
1104 d), 1105 9 11 05(b)(4), 1 W05(b)(5 and 11 Mb)(9) of the Ethics Act (Act 93 of
199,8� 65 Pa. Vh 1103(a), 1104(a), 11841(d), 1105 1105(b)(4), 1105(b) 5), and
05( public (1
11 k)(9): (1) when he utilized the authority of his pub ic okice to enter into a contractual
agreement between the Township.and a business with which he is associated, namely
Renaldo's Inc., resulting in a pecuniary
gain to himself and/or Renaldo's Inc.; (2) when he
participated in discussions and/or actions of theTownship Board of Supervisors to approve
and ratify payment(s) of invoices to Renaldo's Inc., including serving as a Township
si natory on payment checks; (3) when he filed deficient Statements of Financial Interests
(IFIs") as follows: failed to report the calendar year on the filing intended for the 2013
calendar year; failed to provide a response to "Governmental Entity" on filings intended for
the 2013 and 2015 calendar ears; failed to provide a response to "Creditors" on filinqs
intended for the 2013 and 245 calendar years; failed to report his financial interest in
Renaldo's Inc. on filings
intended for the 2014 calendar year; failed to report "Washington
Township" as a direc indirect source of income on filings intended for the 2014 calendar
year; and failed to rovide a response to "Direct/indirect sources of income" on filings
intended for the 20F5 calendar year; and (4) when he failed to file a 2017 calendar year
SFI.
Per the Consent Agreement of the parties, the Investigative Division has exercised
its prosecutorial discretion to nol pros the allegations regarding participation in discussions
and/or actions of the Township Board of Supervisors to approve and ratify payment(s) of
invoices to Renaldo's Inc, that were not related to a certain salt shed discussed below.
Based upon the no[ pros, we need not address the portion of the allegations no longer
before us.
Pursuant to Section 1103(a) of the Ethics Act, a public official/public employee is
prohibited from engaging in conduct that constitutes a conflict of interest:
§ 1103. Restricted activities
(a) Conflict of interest. —No public official or public
I
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa. C. S, § 1103(a).
The term "conflict of interest" is defined in the Ethics Act as follows:
§ 1102. Definitions
"Conflict" or "conflict of interest." Use by a public
official or public employee of the authority of his office or
employment or any confidential information received through
RenaWo, 18-060
Page 12
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. The term 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 1 103(a) of the Ethics Act prohibits a public official/public. employee from
e'empl ment or confidential information received by
a o Pe nia7 benefit of the public official/public
' cu
using the authority public
offic
n the private
e u 0 rity public
P itio for 1 a
h dn h
suc Pub position
f his immediate
ediate fam i Y, or a business with which he or a
, 'cp
himself, n member o employee g f ir�n i m m .1 i m t
member 0 his mt�2iate family
y s associated.
.
Section 1 104(a) of the Ethics Act provides that each public official/public employee
must file an SFI for the preceding calendar year, each year that he holds the position and
the year after he leaves it.
Section 11 04W) of the Ethics Act provides that no public official shall be allowed to
take the oath of o ice, or enter or continue upon his duties, nor shall he receive
compensation from public funds, unless he has filed an SFI as required by the Ethics Act.
Section 11 05(b) of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the SFI form must provide.
Section 1105(b)I) of the Ethics Act requires the filer to disclose on the SFI his
name, address, and pubblic position.
Subject to certain statutory exceptions not applicable to this matter, Section
11 05(b)(4) of the Ethics Act requires the filer to disclose on the SFI the name and address
of each creditor to whom is owed in excess of $6,500 and the interest rate thereon.
Subject to certain statutory exceptions not applicable to this matter, Section
11 05(b)(5) of the Ethics Act requires the filer to disclose on the SFI the name and address
of any direct or indirect source of income totaling in the aggregate $1,300 or more.
Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any
financial interest in any le al entity en aged in business for profit. The term "financial
interest" is defined in the E icsAct as " a]ny financial interest in a legal entity engaged in
business for profit which comprises more than 5% of the equity of the business or more
than 5% of the assets of the economic interest in indebtedness." 65 Pa.C.S. § 1102.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are set forth above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
The Township Board of Supervisors consists of three Members. Respondent
Renaldo served as a Member of the Township Board of Supervisors from approximately
1998 through December 2017. Renaldo was Chairman of the Township Board of
Supervisors and Township Roadmaster each year from 2013 through 2017.
Renaldo, 18-05O
P—ag—el-3
In a private capacity, Renaldo owns a business named "Renaldo's Inc.," which
provides plumbing, heating, air conditioning and electrical services to residential and
commercial customers. Renaldo is an employee and corporate officer of Renaldo's Inc.
In 2013 Renaldo initiated discussions with the Board of Supervisors regarding
replacing the Township's existing salt shed.
During the May 14, 2014„ meeting of the Board of Supervisors, Renaldo made a
motion and participated in a 3-0 vote of the Board of Supervisors to begin the initial steps
necessary for the salt shed replacement.
During the June 11, 2014, meeting of the Board of Supervisors, Renaldo made a
motion and partic ated in a 3-0 vote of the Board of Supervisors authorizing the
reparation of a blYpackage for the salt shed, upon receipt of the specifications from the
Township Engineer.
The Township Engineer prepared the bid specifications and an addendum to the bid
specifications without any provisions for lighting or electrical installation. The Township
r
ngineer developed bid specifications based on the scope of the project directed by the
Board of Supervisors. The Board of Supervisors gave no authorization to include
specifications for I tinglelectrical. Township upervisors meeting minutes do not
include any information or explanation as to why lighting/electrical was not included with the
initial construction bid/plan.
During the July 9, 2014, meeting of the Board of Supervisors, Renaldo made a
motion and partic ated in a 3-0 vote of the Board of Ttupervisors authorizing the
preparation of a bi�package for the salt shed.
In July and August 2014 the Township advertised for bids for the salt shed project.
None of the three bids received' included a quote for ll�htingfelectrical. During the August
27, 2014, Board of Supervisors meeting, Renaldo participated in a 2-0 vote awarding the
salt shed project to the low bidder.
During the November 5, 2014, meeting of the Board of Supervisors, Renaldo
informed the Board of Supervisors that the salt shed project was completed. Immediately
after informing the Board of Supervisors that the sO shed was completed, Renaldo
informed theBoardof Supervisors that he obtained an estimate from his company,
Renaldo's Inc., to install lighting and electrical for the salt shed at a cost of I ,310.47.
Renaldo was neither directed nor authorized to obtain such a quote, Nevertheless,
Supervisor Robert Smith then made a motion to have Renaldo's Inc. install lighting in the
shed at a cost of $5,310.47. Renaldo seconded the motion and participated in a 2-0 vote
ap
proving the motion, with Renaldo casting the deciding vote. Supervisor David Hess was
absent from the meeting.
The Renaldo's Inc. 2014 estimate was the only one considered by the Board of
Supervisors. The parties have stipulated that Renaldo utilized the authority of his office by
reviewing the estimate from a business with which he is associated, namely Renaldo's Inc.,
mating in action of the Bo
ard of Supervisors to accept the estimate to engage
Renaldo's Inc. to install LED lighting in the recently completed %wriship salt shed.
On January 20 2015 the Township received Renaldo's Inc. invoice number 13469
in the total amount of �5,316.47 for labor and materials associated with the installation of 6
LED light fixtures at the salt shed. Itemized charges were: (1) LED Liht Fixtures:
$3 418.47; (2) PVC conduit, pipes, fittings, wiring: $592.00; and (3) Labor: $1, 00.00, The
$11:300.00 fee for labor was itemized
zed as 20 hours at $65.00 per hour. Renaldo viewed the
work as being an extension of a then -existing mechanical repair/maintenance contract
Renaldo's Inc. had with the Township for fiscal year 2014-15.
Renaldo, 18-050
Page 14
On February. 11, 2015, Renaldo participated in official actions of the Board of
Supervisors approving by a 3-0 vote the payment of bills, which included payment to a
business with which enaldo is associated. The Township check paying Renaldo's Inc.
invoice number 13469 was signed by Township officials other than Renaldo,
The parties have stipulated that Renaldo's Inc. realized a pecuniary benefit/profit of
$5,310.47 from the installation of lights at the Township salt shed.
Turninp to the material facts involving Renaldo's SFIs, Renaldo failed to file an SFI
by May 1, 20 8, for the 2017 calendar year. Renaldo's SFI for calendar year 2015 had no
responses listed for blocks 5, 9, and 10. Renaldo's SFI for calendar year 2014 did not list
the Township as a source of income and did not list Renaldo's Inc. in block 14. Renaldo's
SFI for calendar year 2013 had no responses listed for blocks 5, 7, and 9.
Renaldo received compensation in the amount of $2 500.00 annually forthe position
of Township Supervisor while failing to have properly filed SFI forms on file with the
Township for the 2013, 2014, 2015 and 2017 calendar years. Renaldo has now corrected
the aforesaid filing delinquency/deficiencies.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
The parties' Consent Agreement sets forth a proposed resolution of the allegations
as follows:
3. The Investigative Division will recommend the following in
relation to the above allegations,
That a violation of Section 11 03(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S, §
1103(a) occurred when Renaldo presented an
estimate fromfh* )any, Renaldo's Inc, for
the installation his
cloigmifing and electrical on a
Washington Township salt shed; when he
seconded a motion and subsequently voted in
favor of a motion that authorized his company to
perform the lighting and electrical work; and
when he voted to approve payment to his
company for completing the lighting and
electrical work on the salt shed.
The Investigative Division has elected to nolle
pros the other allegations regarding Renaldo's
articipation in discussions and/or actions of the
Board of Supervisors of Washin ton Township to
approve and ratify payments? of invoices to
Renaldo's Inc., on payment checks that are not
related to the salt shed in subparagraph (a).
That a violation of Section 1104(a) and
1105b)(1),(4),ftiand (9) of the Public Official
and Employee cs Act, 65 Pa.C,S. § 1104(a)
and § 1105�b�(1)(4�(5(9) occurred when
Renaldo filed Statements of Financial
Interests as follows: failed to report the calendar
year on the filin� intended for the 2013 calendar
year; failed 0 provide a response to
"Governmental Entity" on filings intended for the
Renaldo, 18-050
P—ag—e—T5
2013 and 2015 calendar years; failed to provide
a response to "Creditors' on filings intended for
the 2013 and 2015 calendar years; failed to
report his financial interest in Renaldo's Inc. on
filings intended for the 2014 calendar year; failed
to report "Washington Township" as a
direct/indirect source of income on filings
intended for the 2014 calendar year; failed to
provide a response to "Direct/indirect sources of
income" on filings intended for the 2015 calendar
year; and when he failed to file a 2017 calendar
year Statement of Financial interests.
d. The Investigation Division does not seek
disgorgement of compensation pursuant to
Section 1104(d) of the Public Official and
Employee Ethics Act, 65 Pa.C.S. § 1104(d).
4. Renaldo agrees to make payment in the amount of $2,000.00
in settlement of this matter payable to the Commonwealth of
Pennsylvania, and forwarded to the Pennsylvania State Ethics
Commission, within thirty (30) days of the issuance of the final
adjudication in this matter.
5. If he has not already done so, Renaldo agrees to file complete
and accurate amended Statements of Financial Interests with
Washington Township, through the Pennsylvania State Ethics
Commission, for calendar years 2013, 2014, 2015, and 2017
within thirty (30) days of the issuance of the final adjudication in
this matter.
6. Renaldo agrees to not accept any reimbursement,
compensation or other payment from Washington Township
representing a full or partial reimbursement of the amount paid
in settlement of this matter.
7. The Investigative Division will recommend that the State Ethics
Commission take no further action in this matter; and make no
specific recommendations to any law enforcement or other
authority to take action in this matter. Such, however, does not
prohibit the Commission from initiating appropriate
enforcement actions in the event of Respo failure to
comply with this agreement or the Commission's order or
cooperating with any other authority who may so choose to
review this matter further.
Consent Agreement as amended), at paragraphs 3-7.
In considering the Consent Agreement of the parties, we agree with the parties'
recommendation for the finding of a violation of Section 1103(a) of the Ethics Act, 65
Pa.C.S. § 11 03(a).
Respondent used the authority of his office when --without any direction or
authorization of the Board of Supervisors
rs to obtain a quote for lighting and electrical work
uporvtiso on the salt shed --he presented an estimate from his own company, Renaldo's Inc., for such
work. Respondent further used the authority of his office when he seconded and voted in
favor of a motion that authorized his company to perform the lighting and electrical work at
the salt shed, and when he ultimately voted to approve payment to his company for
Renaldo, 18-050,
P—ag-e-TS
com eting the lighting and electrical work on the salt shed. The parties have stipulated
that Vpondent enaldo utilized the authority of his office by reviewing the estimate from
a business with which he is associated, namely Renaldo's Inc., and participating in action
of the Board of Supervisors to accept the estimate to engage Renaldo's Inc. to install LED
lighting in the recently completed Township salt shed.
The parties have stipulated that Renaldo's Inc. realized a pecuniary benefit/profit of
$5,310.47 from the installation of lights at the Township salt shed.
Based upon the Sti ulation of Findings and Consent Agreement, we hold that a
violation of Section I ra) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when
Respondent Renaldo presented an estimate from his company, Renaldo's Inc., for the
installation of lighting and electrical on a Township salt shed; when he seconded a motion
and subsequently voted in favor of a motion that authorized his company perform the
lighting and electrical work; and when he voted to grove payment to is company for
completing the lighting and electrical work on the salt shed.
We further agree with the parties, and we hold, that a violation of Sections 11 04(a)
and 1105b1�,4),(5), and 9) of the Ethics Act, 65 Pa.C.S. §§ 1104(a) and
1105(b)(1)4 5(99),occurredw en Renaldo filed deficient SF]s as follows: failed to report
the calendar year on the filinp, intended for the 2013 calendar year; failed to provide a
response to "Governmental ntity" on filings intended for the 2013 and 2015 calendar
years; to provide a response to "Creditors" on filings intended for the 2013 and 2015
calendar
ar years; failed to rep6rt his financial interest in Renaldo's Inc. on filings intended for
the 2014 calendar year; failed to report "Washington Township" as a direct/indirect source
of income on filings intended for the 2014 calendar year; failed to provide a response to
"Direct/lndirect sources of income" on filings intended for the 2015 calendar year; and when
he failed to file a 2017 calendar year SFI.
We note that the Investigation Division is not seeking any disgorgement of Renaldo's
uE,ervisor compensation pursuant to Section 1104(d) of the Ethics ?iics Act, 65 Pa.C.S. §
1 4 (d),
As part of the Consent Agreement, Renaldo has agreed to make payment in the
amount o' $2,000.00 in settlement of this matter, pa able to the Commonwealth of
Pennsylvania and forwarded to this Commission within thirty (30) days of the issuance of
the final adjudication in this matter. Renaldo has agreed to not accept any reimbursement,
compensation or other payment from the Township representing a full or partial
reimbursement of theamount
" n aid n settlement h matter. Additionally, to the extent
m 0 u t p i s m t of this
m tt r.
he has not already done so , Renaldo has agreed to file complete
om �le and accurate
cu rate amended
SFIs with the Townsh i , through
h this
Commission,
om giss io n , fo r calendar rears 2 0 1 3 , 2014,
01 4 i 2015,
30) days
of t issuance
c of f I t is m
and 2017 within thirty da he an e the final adjudication in h a ter.
We determine that the Consent Agreement submitted by the parties sets forth a
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances.
Accordingly, per the Consent Agreement of the parties, Renaldo is directed to make
payment in the amount of $2,000.00 made payable to the Commonwealth of Pennsylvania
and forwarded to this Commission by no later than the thirtieth (30th) day after the mailing
date of this adjudication and Order.
Renaldo is directed to not accept any reimbursement, compensation or other
payment from the Township representing a full or partial reimbursement of the amount paid
in settlement of this matter.
To the extent he has not already done so, Renaldo is directed to file complete and
accurate amended SF]s for calendar years 2013, 2014, 2015, and 2017 with the Township,
Ren2ldo, 18-050
Page 17
through this Commission, by no later than the thirtieth (30th) day after the mailing date of
this adjudication and Order.
Compliance with the forming will result in the closing of this case with no further
i
action by s Commission. oncompliance will result in the institution of an order
enforcement action.
I'V. CONCLUSIONS OF LAW:
As a Member of the Washington Township ("Township"), Pennsylvania, Board of
Supervisors ("Board of S )ervisors') from approximately 1998 through December
UK 5
2017, Respondent David, enaldo , Renaldo) was a public official sub ect to the
provisions of the Public Official and Employee Ethics Act ("Ethic N.C,S.§
1101 et sue.
Renaldo violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a when he
resented an estimate from his company, Renaldo's Inc., for the inVIallation of
lighting and electrical on a Township salt shed; when he seconded a motion and
subsequently voted in favor of a motion that authorized his company to perform the
lighting and electrical work; and when he voted to approve payment to his company
for completing the lighting and electrical work on the salt shed.
A violation of Sections 1104(a) and 1105�b�(I),(4) (5) and(9 of the Ethics Act, 65
Pa.C.S. §§ 1104(a) and 1105(b)(1)(4)i , occurred' when [�enaldo filed deficient
Statements of Financial Interests as follows: failed to report the calendar year on the
filing intended for the 2013 calendar year; failed to provide a response to
"Governmental Entity" on filings intended for 2013 and 2015 calendar years;
failed to provide a response to 'Creditors" on filings intended for the 2013 and 2015
calendar years; failed to report his financial interest in Renaldo's Inc. on filings
intended for the 2014 calendar year; failed to report "Washington Township" as a
direct/indirect source of income on filings intended for the 2014-calendar year; failed
to provide a response to "Direct/Indirect sources of income" on filings intended for
the 2015 calendar year; and when he failed to file a 2017 calendar year Statement
of Financial interests.
In Re: David Renaldo, File Docket: 18-050
Respondent Date Decided. 9/25/19
Date Mailed: 10/9/19
ORDER NO. 1761
As a Member of the Washington Township Township"), Pennsylvania, Board of
Su ervisors ("Board of Supervisors"), Qaldo Renaldo") violated Section
3
11 3 a) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S §
11 a), when he presented an estimate from his company, Renaldo's Inc., for the
al
in!ot ation of lighting and electrical on a Township salt shed; when he seconded a
motion and subsequently voted in favor of a motion that authorized his company to
pe
rform the lighting and electrical work; and when he voted to approve payment to
is company or completing the lighting and electrical work on the salt shed.
A violation of Sections 1104(a) and 1105�b�(I),(4),(5), and (9 of the Ethics Act, 65
Pa,C,S,§§1104(a)and 1105(b)(1)(4)(5) 9 occurred when �enaldo filed deficient
Statements of Financial Interests as follows, failed to report the calendar year on the
filing intended for the 2013 calendar year; failed to provide a response to
"Governmental Entity" on filings intended for the 2013 and 2015 calendar ears;
failed to provide a response to 'Creditors" on filings intended for the 2013 and
calendar years; failed to report his financial interest in Renaldo's Inc. on filings
intended for the 2014 calendar year; failed to report "Washington Township" as a
directlindirect source of income on filings intended for the 2014 calendaryear- failed
to provide a response to "Direct/Indirect sources of income" on filings intended for
the 2015 calendar year; and when he failed to file a 2017 calendar year Statement
of Financial interests.
3. Per the Consent A reement of the parties, Renaldo is directed to make payment in
the amount of $2 000.00 made payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth
(30th) day after the mailing date of this Order.
4. Renaldo is directed to not accept any reimbursement, compensation or other
payment from the Township representing a full or partial reimbursement of the
amount Daid in settlement of this matter,
5. To the extent he has not already done so, Renaldo is directed to file complete and
accurate amended Statements of Financial Interests for calendar years 2013, 2014,
2015, and 2017 with the Township, through the Pennsylvania State Ethics
Commission, by no later than the thirtieth (30 ) day after the mailing date of this
Order.
6. Compliance with paragraphs 3, 4, and 5 of this Order will result in the closing of this
case with no further action by this Commission.
Non-compliance will result in the institution of an order enforcement action.
AMHEI��M!
olas A. Colafella, Chair