HomeMy WebLinkAbout1684 Webster
In Re: Edward D. Webster, : File Docket: 14-063
Respondent : X-ref: Order No. 1684
: Date Decided: 10/6/15
: Date Mailed: 10/21/15
Before: Nicholas A. Colafella, Chair
Mark R. Corrigan, Vice Chair
Roger Nick
Kathryn Streeter Lewis
Maria Feeley
Melanie DePalma
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding possible violation(s) of the Public Official and Employee Ethics
Act (“Ethics Act”), 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 filed and a hearing was requested. A
Stipulation of Findings and a Consent Agreement were subsequently submitted by the
parties to the Commission for consideration. The Stipulated Findings are set forth as the
Findings in this Order. The Consent Agreement has been approved.
I.ALLEGATIONS:
That Edward Webster, a public official/public employee in his capacity as a
Supervisor for Jackson Township, Dauphin County, violated \[Sections 1103(a), 1103(f),
1104(a), 1104(d), 1105(a), 1105(b)(1), 1105(b)(5), 1105(b)(8), and 1105(b)(9)\] of the State
Ethics Act (Act 93 of 1998) when he participated in actions of the Jackson Township Board
of Supervisors, including but not limited to: the awarding of a contract to Eastern
Industries, Inc. and/or EII Transport, Inc.; issuing payment to Eastern Industries, Inc.
and/or EII Transport, Inc.; and/or authorizing/directing that purchases be made from
Eastern Industries, Inc. and/or EII Transport, Inc., at a time when he knew and/or had a
reasonable expectation that he, a member of his immediate family, and/or E&E Trucking, a
business with which he and/or members of his immediate family are associated, would
serve as a subcontractor for Eastern Industries, Inc. and/or EII Transport, Inc. on those
Township related contracts/purchases; when Webster, a member of his immediate family,
and/or a business with which he and/or a member of his immediate family is associated
served as a subcontractor regarding purchases/contracts which were awarded to Eastern
Industries, Inc. and/or EII Transport Inc. absent an open and public process; and when he
failed to file complete and accurate Statements of Financial Interests for the 2009 through
2013 calendar years by failing to provide a response to “Status” on his Statement of
Financial Interests filed for the 2009 calendar year; by failing to provide a response to
“Governmental Entity” on Statements of Financial Interests filed for calendar years 2009
through 2013; by failing to provide a response to “Calendar Year” on Statements of
Financial Interests filed for the 2010 calendar year; by failing to provide a response to
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and/or failing to report “Direct/Indirect Sources of Income” on Statements of Financial
Interests filed for calendar years 2009 through 2013; by failing to provide a response to
“Office, Directorship, or Employment in any Business” and/or failing to report his ownership
interest in E&E Trucking on Statements of Financial Interests filed for calendar years 2009
through 2013; by reporting “none” to “Financial Interest in any Business” and/or failing to
report his ownership interest in E&E Trucking on Statements of Financial Interests filed for
calendar years 2009 through 2013; by failing to report the current date on his Statement of
Financial Interests filed for the 2009 calendar year; and when he backdated a Statement of
Financial Interests purportedly filed for the 2010 calendar year.
II.FINDINGS:
1. Edward D. Webster (“Webster”) has served as a Member of the Jackson Township
(“Township”), Dauphin County, Board of Supervisors (“Board of Supervisors”) since
his appointment to the Board of Supervisors on February 10, 2010.
a. The Township is a Second Class Township governed by a three (3) Member
Board of Supervisors.
b. Since February 10, 2010, the Board of Supervisors has been comprised of:
Webster;
o
Ira Kulp (“Kulp”); and
o
Justin K. Hoover (“Hoover”).
o
2. The Township does not employ any individuals on a full-time basis for road
maintenance and repair.
a. Township road work is scheduled and supervised by one of the Township
Supervisors, who serves as Roadmaster.
b. Between January 2010 and November 13, 2013, Supervisor Hoover served
as the Township Roadmaster.
c. Webster served as the Township’s Interim-Roadmaster from November 13,
2013, until January 6, 2014, when the interim designation was eliminated
and Webster assumed the role as Roadmaster.
d. Part-time/temporary labor is hired for road work by the Roadmaster on an
as-needed basis.
3. The Township does not maintain a specific job description for the Roadmaster.
a. Per the Second Class Township Code (53 P.S. § 67302), the Roadmaster
shall:
(1) Report to the board of supervisors any information that may be
required by the board of supervisors and by the Department of
Transportation.
(2) Inspect all roads and bridges as directed by the board of supervisors.
(3) Do or direct to be done all work necessary to carry out the
responsibilities imposed by the board of supervisors with respect to
the maintenance, repair and construction of township roads.
4. Specific to the Township, the Roadmaster is also responsible for:
Webster, 14-063
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a. Overseeing Township road work performed by part-time employees and/or
hired contractors.
b. Ensuring that supplies of regularly needed road materials such as anti-skid,
road salt and different sizes of gravel are on-hand and replenished as
needed.
c. Overseeing the general care and maintenance of Township trucks and the
municipal complex.
d. Providing the Board of Supervisors with a monthly report highlighting work
completed since the last meeting as well as anticipated upcoming work.
5. In a private capacity, Webster is the owner of E&E Trucking, which is operated from
his residence in Halifax, Pennsylvania.
a. E&E Trucking is a family-owned/operated trucking business with trucks
primarily operated by Webster.
b. The letters “E&E” in E&E Trucking represent Edward Webster and his wife,
Esther Webster.
c. Webster’s son and immediate family member, Steve Webster, will
occasionally operate one of Webster’s trucks, doing business as E&E
Trucking.
1. Steve Webster was most active in working for Webster/E&E Trucking
between the years 2009 and 2011.
d. Steve Webster also operates his own trucking operation under the business
name “Steve Webster Trucking” in Williamstown, Pennsylvania.
1. Steve Webster Trucking is not registered with the Pennsylvania
Department of State, Corporation Bureau.
6. E&E Trucking, owned and operated by Webster, is not registered with the
Pennsylvania Department of State, Corporation Bureau.
a. Webster reports being the “proprietor” of E&E Trucking on Internal Revenue
Service Schedule C, filed with his Federal Income Tax Returns for the 2010,
2011, 2012 and 2013 calendar years.
7. Webster, doing business as E&E Trucking, provided material hauling services to
the Township prior to his February 10, 2010, appointment to the Board of
Supervisors.
a. The nature of the hauling services related to anti-skid and other road
aggregate materials.
b. E&E Trucking’s \[provision of services to\] the Township dates to at least
2009, the year prior to Webster being appointed to the Board of Supervisors.
8. Webster ceased hauling materials directly for the Township once he became a
Member of the Board of Supervisors in February 2010.
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9. Webster and his son, Steve Webster, continued to provide hauling services to the
Township after Webster became a Member of the Board of Supervisors, as a
subcontractor for Eastern Industries, Inc. and/or EII Transport, Inc.
a. Webster and Steve Webster continued to haul materials to the Township,
through Eastern Industries, Inc. and associated entities, until approximately
February 4, 2014.
b. A Liquid Fuels Audit Report issued by the Pennsylvania Department of the
Auditor General on January 28, 2014, questioned these services as related
party transactions.
10. Eastern Industries, Inc., and EII Transport, Inc., are subsidiary companies owned by
New Enterprise Stone & Lime Company.
a. New Enterprise Stone & Lime Company acquired the Eastern business
entities around January 11, 2008.
b. Eastern Industries, Inc. offers the construction industry a wide range of
services and products with locations throughout the Lehigh Valley and
Central and Northern Pennsylvania, with products lines of stone, hot mix
asphalt, building supplies, ready mix concrete, and block, as well as two
construction divisions.
c. EII Transport, Inc. provides hauling/delivery of building and construction
materials.
11. Both Webster and Steve Webster had “Truck and Transportation Services
Operating Agreement(s)” with Eastern Industries, Inc., and EII Transport, Inc.
a. Webster’s contracts with both companies are in the name of “Edward
Webster, Service Provider” while Steve Webster’s contracts with both
companies are in the name of “Steve Webster, Service Provider.”
b. Terms and conditions of each company’s operating agreements are the
same.
c. Webster signed both of his agreements with the Eastern entities on
September 25, 2009.
d. Steve Webster signed both of his agreements with the Eastern entities on
October 31, 2011.
12. The description of service for Webster’s EII Transport, Inc. contracts is noted as
“hauling construction materials from various plants and/or quarries to various plants
and/or projects; hauling to and from and on various EII Transport, Inc., Eastern
Industries, Inc., Elco-Hausman or customer projects.”
a. The description of service for the Eastern Industries, Inc. contracts is similar,
detailing “hauling construction materials to various plants and/or quarries to
various Eastern Industries, Inc. plants or projects; hauling to and from and
on various Eastern Industries, Inc., Elco-Hausman or customer projects.”
13. General provision number A-7 of all four (4) of these contracts identifies the service
provider as an “independent company.” Section A-7 of the contracts states:
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a. “In making and performing this Agreement, Service Provider acts and will act
at all times as an independent company, nothing contained in this
Agreement will be construed or implied to create the relationship of partners,
principal-agent, employer-employee, or joint ventures between the parties.
Operation of the equipment will be under the exclusive control of Service
Provider in the performance of its obligations under this agreement.”
14. Pursuant to these contracts, both Webster and Steve Webster were contracted
haulers for Eastern Industries, Inc., and EII Transport, Inc.
a. Both were included as part of the hired haulers list utilized by Eastern
Industries, Inc., for materials transferred to and from its Elizabethville
Quarry.
b. Eastern Industries, Inc.’s Elizabethville Quarry utilizes the services of
approximately six (6) different contracted haulers on a regular basis.
1. Eastern Industries, Inc. will supplement this contingent with company
owned trucks, only in those instances when additional trucks are
needed beyond the six (6) contracted haulers.
c. Webster and his son, Steve Webster, account for two (2) of the six (6), or
33%, of Eastern Industries, Inc.’s hired haulers providing hauling/delivery
from Eastern Industries, Inc.’s Elizabethville Quarry.
d. Compensation for hired haulers is based on a formula applying a specified
rate per ton (varying based on the material being hauled) applied per mile,
then multiplied by the distance traveled in miles.
15. The Township does not solicit bids, quotes, or proposals for hauling services
needed as part of regular road maintenance, repairs, and/or winter maintenance.
a. Since 2010, the Township has annually exceeded a $500.00 aggregate
threshold as it relates to fees associated with the delivery of stockpiled
materials at the Township’s municipal complex.
16. The Township has contracted primarily with Eastern Industries, Inc. and EII
Transport, Inc. for the purchase and delivery of materials for use on Township
roads.
a. The Township routinely purchased and received materials, including asphalt,
anti-skid, and various sizes of stone, since at least 2010 from Eastern
Industries, Inc.’s Elizabethville Quarry, 3363 Route 225, Elizabethville, PA
17023.
1. Eastern Industries, Inc.’s Elizabethville Quarry is located
approximately 2.0 miles from the Township Municipal Building.
b. EII Transport, Inc. has subcontracted with Webster and Steve Webster for
hauling/delivery of Township materials.
1. Webster resides on the same road as the Township Municipal
Building and approximately 1.3 miles from Eastern Industries, Inc.’s
Elizabethville Quarry.
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17. Between September 8, 2010, and December 11, 2013, EII Transport, Inc. (the
Township’s primary material hauling company) was paid approximately $4,117.52
for hauling services, concerning deliveries to the Township.
a. EII Transport, Inc. utilizes the services of contracted hired haulers, including
Webster, E&E Trucking, Steve Webster, and Steve Webster Trucking, to
haul various materials on behalf of the Township.
18. From 2010 to 2014, the Township owned several trucks with the capacity of hauling
road aggregates.
a. The Township did not employ any specific personnel to operate any of these
trucks.
b. Beginning in 2014, following the release of the Auditor General Liquid Fuels
Report, Township trucks were utilized to haul materials from Eastern
Industries, Inc.’s Elizabethville facility in an effort to address potential conflict
of interest issues (related party transactions) involving Webster, E&E
Trucking, and/or Steve Webster, serving as subcontractors to haul road
materials to the Township on behalf of Eastern Industries, Inc.
19. Beginning in or about 2011, the Township would receive two (2) invoices per
transaction for purchases from Eastern Industries, Inc.
a. During and prior to 2010, the Township would receive one (1) invoice from
Eastern Industries, Inc., which included charges for material and delivery.
b. Starting in 2011 and through 2013, the Township received two (2) separate
invoices from Eastern Industries, Inc.
1. The first invoice from Eastern Industries, Inc. accounted for the actual
material(s).
2. The second invoice was submitted by EII Transport, Inc., and covered
charges associated with the delivery of the materials listed in the
Eastern Industries, Inc. invoice.
i. Charges associated with delivery included payments made to
subcontractors/hired haulers, including Webster and/or Steve
Webster.
c. In those instances when a Township-owned truck was used to haul the
material from Eastern Industries, Inc.’s Elizabethville Quarry, the Township
would only be invoiced for the material.
20. Payment for goods and services obtained from Eastern Industries, Inc., and EII
Transport, Inc., was made as part of the Township’s routine bill paying process.
a. Since 2010, that process has been as follows:
1. Invoices to be paid are submitted to the Township
Secretary/Treasurer.
2. The Secretary/Treasurer incorporates all of the invoices received for
the month into a bill list for the Board of Supervisors to review and
approve.
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3. The Secretary/Treasurer provides each Supervisor with a copy of the
bill list as part of the monthly meeting packets.
i. Meeting packets are normally provided to the Board of
Supervisors several days prior to the regularly monthly
meeting, and include items such as the prior month’s
unapproved meeting minutes, correspondence, and the current
month’s bill list.
4. The bill lists are voted on in their entirety by a single motion.
5. Checks contain a live signature of the Secretary/Treasurer and at
least one Supervisor, with all three (3) Supervisors having signature
authority over Township financial accounts.
21. The Township does not maintain records identifying the Township representative
placing orders for materials from Eastern Industries, Inc.
a. Since 2010, when Webster became a Member of the Board of Supervisors,
orders for materials were placed by both Webster and
Supervisor/Roadmaster Hoover.
1. Hoover was the Township Roadmaster from approximately 2010 until
November 13, 2013.
2. Webster has held the position of Township Roadmaster since
November 13, 2013.
b. The exact number of orders placed by Webster, as opposed to Hoover, from
Eastern Industries, Inc. cannot be determined.
1. From 2010 to November 13, 2013, it was Hoover’s responsibility to
order materials from Eastern Industries, Inc., in his official capacity as
Township Supervisor/Roadmaster.
2. Since November 13, 2013, Webster assumed that responsibility in his
official capacity as Township Supervisor/Roadmaster.
22. From February 2010 through February 2014, Webster participated in official actions
of the Board of Supervisors concerning contracts entered into with and/or routine
purchases of goods and services from Eastern Industries, Inc., and EII Transport,
Inc., during a time when he, a member of his immediate family, Steve Webster,
and/or a business with which he or an immediate family member is associated,
namely E&E Trucking, had a reasonable expectation of receiving hauling work as a
result of the contracts awarded and goods and services purchased.
a. Webster and Steve Webster maintained hauling contracts with Eastern
Industries, Inc./EII Transport, Inc. and were two (2) of six (6) contractors
regularly used to haul to the Township.
b. Webster was regularly utilized as a subcontractor for hauling by Eastern
Industries, Inc. on projects unrelated to the Township.
23. Webster’s official actions included, but were not necessarily limited to, the
following:
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a. Participating in the review of bids, discussions, and official actions taken,
awarding projects paid for with Liquid Fuels Funds during 2012 and 2013 to
Eastern Industries, Inc.
b. Purchasing road aggregate materials from Eastern Industries, Inc.
c. Approving bill list payments and signing Township checks issued to Eastern
Industries, Inc., and EII Transport, Inc.
24. Since being appointed to the Board of Supervisors in 2010, Webster participated in
Board action to approve General Fund payments issued to Eastern Industries, Inc.,
and/or EII Transport, Inc. relating to the purchase and/or delivery of materials to the
Township.
25. During the same time Webster participated in actions of the Board of Supervisors to
approve payments to Eastern entities, he, Steve Webster, and/or E&E Trucking
were routinely utilized as contracted haulers for Eastern entities.
a. Webster did not publicly disclose his ongoing business relationship to the
Township.
26. Between February 15, 2011, and January 6, 2014, Steve Webster was utilized by
Eastern entities no less than thirty (30) times to haul/deliver material to the
Township.
a. Steve Webster received compensation from Eastern entities totaling the
following amounts per year:
Year Tickets Payments
2011 8 $ 357.77
2012 4 $ 192.12
2013 12 $ 723.14
2014 6 $ 314.21
30 $1,587.24.
27. Between January 15, 2010, and February 4, 2014, Webster received payments
from Eastern entities totaling approximately $4,216.43, as the result of eighty (80)
instances of hauling materials which were delivered to the Township.
a. Payments by year are as follows:
Year Tickets Payments
2010 8 $ 334.26
2011 27 $1,333.81
2012 19 $1,260.60
2013 18 $ 900.28
2014 8 $ 387.48
80 $4,216.43.
b. The chart lists only payments made by Eastern entities to Webster, and does
not account for net income/profit (see, Fidler, Order No. 1637).
28. The business account of Webster, doing business as E&E Trucking, maintained at
Susquehanna Bank (\[account number redacted\]) confirms deposits from EII
Transport, Inc. and Eastern Industries, Inc. from 2009 through 2014.
a. Deposits from EII Transport, Inc. and/or Eastern Industries, Inc. account for
Webster, 14-063
Page 9
*
anywhere between 83% and 115% of the total income reported on the
Schedule C filed with Webster’s Federal Income Tax Returns.
b. Annually, E&E Trucking’s gross business income was in excess of
$1,300.00.
c. Income Webster realized from E&E Trucking was unreported on Statement
of Financial Interests forms filed by Webster since 2010.
THE FOLLOWING FINDINGS RELATE TO WEBSTER’S PARTICIPATION IN ACTIONS
OF THE BOARD OF SUPERVISORS TO AWARD PAVING PROJECTS TO EASTERN
INDUSTRIES, INC.
29. In addition to the routine purchase of materials and hauling services from Eastern
entities, the Township awarded paving projects to Eastern Industries, Inc. during
2012 and 2013.
a. These contracts were awarded through a competitive, sealed bid process
each year.
b. Payments were made using Liquid Fuels funds, which the Township annually
received from the Commonwealth.
c. Payment of these contracts was included as part of the Township’s routine
bill paying process as detailed earlier.
d. As to the proceeding, Webster maintains the following: “\[That\] objective
fairness to Mr. Webster, and that Mr. Webster was not versed in law or legal
matters and that it was very important therefore to note the role of a Solicitor,
which raises questions as to what input and what advice he provided and
what instruction that Mr. Webster should abstain from voting in certain
prescribed matters. Thereby, had this been done, would have eliminated the
very issue raised. The failure to address or discuss the roll of Solicitor under
these facts, raises questions of fundamental fairness to Mr. Webster, a
layman, without legal knowledge, who nevertheless aspired to benefit the
taxpayers and township at all times and did so of record.”
30. During calendar years 2010 through 2014, the Township utilized the following
process to seek/award bids for qualified road projects:
a. The Board of Supervisors would annually discuss and identify projects
needing to be completed.
b. A scope of work would then be developed by the Secretary/Treasurer and
Roadmaster based on anticipated Liquid Fuels funds from the
Commonwealth.
c. The scope of work is reviewed by the Township and Pennsylvania
Department of Transportation (“PennDOT”) Engineer(s) for appropriate form
and content.
d. A bid solicitation is advertised in the Upper Dauphin Sentinel Newspaper.
e. A public bid opening is held for all bids received.
f. The Board of Supervisors will award the contract(s) to the lowest responsible
bidder.
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31. Webster, in his official capacity as a Member of the Board of Supervisors,
participated in the review and approval of contracts awarded to Eastern Industries,
Inc., during 2012 and 2013. Webster’s participation included, but was not limited
to, the following:
a. Participating in the review of bids submitted by Eastern Industries, Inc. for
both years.
b. Voting to award contracts to Eastern Industries, Inc. for both years.
c. Voting to approve project payments issued to Eastern Industries, Inc. for
both years, including payments in excess of bid amounts.
d. Signing one (1) of the three (3) Township checks issued to Eastern
Industries, Inc.
e. Approving a project change order in 2012.
32. Webster did not publicly disclose that he, a member of his immediate family (Steve
Webster), or a business with which he is associated (E&E Trucking), had a
reasonable expectation of receiving contracted hauling work as part of both
contracts based on their ongoing business relationship with Eastern entities for
either year.
a. At the time of Webster’s participation in the Township’s award of contracts to
Eastern Industries, Inc., Eastern Industries, Inc. and/or EII Transport, Inc.
accounted for between 83% and 115% of Webster’s total income earned
through E&E Trucking.
33. On May 9, 2012, the Board of Supervisors advertised for bids for Township paving
projects for the year.
a. Bid specifications were prepared by Township Secretary/Treasurer Robyn
Loesch (“Loesch”) and Roadmaster Hoover.
b. Specifications were reviewed by PennDOT for accuracy in terms of the
quantity of materials needed.
34. Minutes from the Board of Supervisors May 9, 2012, meeting include the following
recorded action to advertise for bids for upcoming road projects:
May 9, 2012
ROADMASTER REPORT: Supervisor Hoover reported that in the past month; He
has developed cost estimates for the potential road projects with Scott Lehman. For
the Wolfhole Rd., the leveling course could cost 34 to 43 thousand, and the binder
course is estimated at 98 to 110 thousand. Supervisor Hoover made a motion to
advertise for bids on the Wolfhole Rd. project. Seconded by Supervisor Kulp. All
were in favor. Motion carried 3-0.
On Baddorf, Baker and Highland Rds. It is estimates to cost 81 to 92 thousand to
place a wearing course. Supervisor Hoover made a motion to advertise for bids on
the these roads. Seconded by Supervisor Kulp. All were in favor. Motion carried 3-
0.
Supervisor Hoover made a motion to also advertise for bids a sealcoat project for
Elmer and Keiter Rds. contingent that there are no restrictions on paving these
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roads (due to any past grant or restriction by the Dirt and Gravel Road Program).
Seconded by Supervisor Webster. All were in favor. Motion carried 3-0.
Present: Kulp, Webster, Hoover
Engineer Ed Fischer.
35. Minutes from the Board of Supervisors June 13, 2012, meeting reflect that four (4)
bids were received.
a. Eastern Industries, Inc. submitted the lowest bid of the four (4) at
$. Minutes reported the following bid totals:
213,280.00
Company Bid
Eastern Industries $213,280.00
Jay Fulkroad $220,435.00
$223,018.40
Handwerk
Meckleys $228,796.80.
Meeting minutes further reflect that Webster seconded and voted to approve
b.
the motion awarding the contract to Eastern Industries, Inc. at its stated bid
price of $213,280.00.
c. This motion was passed by a 3-0 Board of Supervisors vote.
d. Webster did not make any disclosures that he had a private business
relationship with Eastern Industries, Inc., or that he possessed a reasonable
expectation of receiving hauling work from Eastern Industries, Inc./EII
Transport, Inc. as part of the project when the bids were reviewed and
awarded by the Board of Supervisors on June 13, 2012.
36. Minutes from the Board of Supervisors June 13, 2012, meeting include the following
recorded discussion and official actions awarding paving bids:
June 13, 2012
ROAD BIDS:
-
Paving BidThere were four bids. Meckleys - $228,796.80; Jay Fulkroad -
$220,435.00; Eastern Industries - $213,280.00; Handwerk - $223,018.40.
Supervisor Hoover made a motion to approve Resolution # 2012-4 awarding the
paving project to Eastern Industries. Seconded by Supervisor Webster and all were
in favor. Motion carried 3-0.
–
Sealcoat BidThere were two bids. Martins Paving - $27,376.04; Jay Fulkroad -
$22,780.00. Supervisor Hoover made a motion to approve Resolution # 2012-5
awarding the sealcoat project to Jay Fulkroad. Seconded by Supervisor Kulp and all
were in favor. Motion carried 3-0.
–
Wolfhole Road storm damage repair (FEMA 4030)There were three quotes.
Martins Paving -$4,907.70; Eastern Industries- $4,400.00; Handwerk - $9,429.95.
Supervisor Hoover made a motion to approve the repair project to Eastern
Industries. Seconded by Supervisor Kulp and all were in favor. Motion carried 3-0.
Present: Kulp, Webster, Hoover.
37. On June 13, 2012, Webster executed the contract with Eastern Industries, Inc.
regarding the Wolfhole Road et al. project in his official capacity as a Member of the
Board of Supervisors.
a. This contract also was signed by Supervisors Kulp and Hoover.
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38. On September 9, 2012, the Board of Supervisors approved a $5,600.00 change
order for the project by a 3-0 vote with Webster participating in the vote.
a. This change order was for additional milling work deemed necessary to
stabilize a portion of the project area so that the new asphalt would not break
near the road berm.
b. This change order was approved prior to the initiation of the project.
c. Adding this change order to Eastern Industries, Inc.’s original bid of
$213,280.00 increased the cost to $218,880.00, which was still lower than
the next lowest bid of $220,435.00, received from Jay Fulkroad.
d. The actual change order document was signed by Supervisor Kulp,
Chairman of the Board of Supervisors.
39.Minutes from the Board of Supervisors September 9, 2012, meeting include the
following recorded discussion and official actions taken on the $5,600.00 project
change order:
September 9, 2012
ROADMASTERREPORT: Supervisor Hoover reported that; Eastern Industry will
be starting the paving project on Monday, and he has already met with Eastern
Industries and gone over the project. Eastern said that in some areas, the edge of
the road needs to be milled to prepare it for the full paving depth of 2.5”. Eastern
gave a quote of $5,600 for this milling work. Supervisor Kulp made a motion to
approve a change order to the scope of work to include the necessary milling,
seconded by Supervisor Webster. All in favor, motion carried 3-0.
Present: Kulp, Hoover, Webster.
40. Eastern Industries, Inc. began working on the Wolfhole Road et al. project around
September 17, 2012.
a. The project itself included paving at three (3) different locations within the
Township.
b. The project was completed on or about September 21, 2012.
c. Supervisor/Roadmaster Hoover reported that the paving projects were
completed during the Board of Supervisors October 10, 2012, meeting.
d. Minutes from that meeting did not include any recorded disclosures
reflecting that Webster had played any role in the project, specifically,
serving as a subcontracted/hired hauler for Eastern Industries, Inc.
41. Webster was utilized by Eastern Industries, Inc. to serve as a contracted hauler of
materials on the Wolf Road et al. project on September 20, 2012, and September
21, 2012, approximately three (3) months after he voted to award the contract to
Eastern Industries, Inc. and eleven (11) days after he voted to approve the change
order.
42. During this two (2) day period, Webster’s truck hauled at least thirteen (13) loads of
asphalt at a cost of $17,492.81 to the Township.
a. Webster received compensation from Eastern Industries, Inc. in the amount
of $963.32 as a result of these hauling services.
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b. The following chart details payments Webster received from this project by
individual hauling ticket:
Webster's
Ticket # Date Time Vehicle QT Tons Price Pay
25511 9/20/12 8:23 340 21.99 $1,346.45 $74.15
25518 9/20/12 9:58 340 21.99 $1,346.45 $74.15
25525 9/20/12 11:07 340 21.84 $1,337.27 $73.65
25532 9/20/12 12:29 340 21.87 $1,339.10 $73.74
25538 9/20/12 1:36 340 22.00 $1,347.06 $74.18
25545 9/20/12 2:58 340 22.01 $1,347.67 $74.21
25552 9/20/12 4:02 340 21.99 $1,346.45 $74.15
25561 9/21/12 7:13 340 22.03 $1,348.90 $74.29
25567 9/21/12 8:47 340 22.00 $1,347.06 $74.18
25573 9/21/12 10:35 340 22.00 $1,347.06 $74.18
25579 9/21/12 11:48 340 22.00 $1,347.06 $74.18
25585 9/21/12 1:01 340 21.98 $1,345.83 $74.11
25589 9/21/12 2:37 340 21.99 $1,346.45 $74.15
$17,492.81 $963.32
43. On October 9, 2012, Eastern Industries, Inc. submitted three (3) separate invoices
to the Township totaling $246,195.13 for work associated with the 2012 Liquid
Fuels fund project. (Wolfhole Road et al.)
a. Invoices submitted were numbers 187167 for $236,195.13, 187169 for
$5,600.00, and 187171 for $4,400.00.
44. Eastern Industries, Inc. invoice number 187167, in the amount of $236,195.13, was
for work associated with the contract awarded by the Board of Supervisors on June
13, 2012.
a. This invoice was $22,915.13 higher than the accepted bid amount of
$213,280.00.
b. The approved bid was based on estimated quantities of materials, on a per
ton price.
c. Estimated materials were segregated into three (3) bid line items:
1. Bid Item #1: 1300 tons of 19mm binder course at $63.00 per ton,
$81,900.00.
2. Bid Item #2: 440 tons of 9.5mm leveling course at $74.00 per ton,
$32,560.00.
3. Bid Item #3: 1,350 tons of 12.5mm wearing course at $73.20 per ton,
$98,820.00.
4. Total bid: $213,280.00.
d. The actual quantities of materials used varied from the bid quantity estimate
Webster, 14-063
Page 14
with slightly less materials used for Bid Items #1 and #2 and a significantly
larger quantity of materials used for Bid Item #3.
e. Actual material costs per bid line item are as follows:
1. Bid Item #1: 1267.81 tons of 19mm binder course at $63.00 per ton,
$81,132.03; $767.97 less than bid price of \[$81,900.00\].
2. Bid Item #2: 427.15 tons of 9.5mm leveling course at $74.00 per ton,
$31,609.10; $950.90 less than bid price of $32,560.00.
3. Bid Item #3: 1,686.53 tons of 12.5mm wearing course at $73.20 per
ton, $123,454.00; $24,634.00 more than bid price of $98,820.00.
45. The $22,915.13 in additional materials charged by Eastern Industries, Inc. was not
formally approved by the Board of Supervisors prior to receiving Eastern Industries,
Inc.’s invoice.
a. The additional materials were deemed necessary to stabilize portions of the
road berm that were likely to crack or break off without the additional
materials.
b. The Board of Supervisors, including Webster, voted affirmatively to pay the
Eastern Industries, Inc. invoice in full.
46. The $236,195.13 paid to Eastern Industries, Inc. resulted in a total cost which was
$7,362.33 more than the highest bid on the project received from Meckleys of
$228,796.80.
a. This amount does not include the additional $5,600.00 paid to Eastern
Industries, Inc. as a result of change order # 1.
47.Payments issued to Eastern Industries, Inc. for the project were approved by the
Board of Supervisors on November 14, 2012.
a. Township Secretary/Treasurer Loesch prepared two (2) checks for payment
of these invoices: State Fund check # 362 in the amount of $213,280.00 and
General Fund check # 9888 in the amount of $32,915.13.
b. These payments were approved along with the other bills for the month by a
3-0 vote, with Webster participating.
c. Township Liquid Fuels payment to Eastern Industries, Inc., check # 362, in
the amount of $213,280.00, was signed by Loesch and Supervisor Kulp.
d. Township General Fund payment to Eastern Industries, Inc., check # 9888,
in the amount of $32,915.13, was signed by Loesch and Webster.
1. This check included $10,000.00 in charges relating to the Board
approved $5,600.00 change order, Eastern Industries, Inc. invoice
number 187169 and an additional milling charge of $4,400.00 quoted
by Eastern Industries, Inc., invoice number 187171.
e. Webster participated in the approval of payments to Eastern Industries, Inc.
even though he served as a compensated hauler for the project.
48. Township Secretary/Treasurer Loesch divided the payments between the
Webster, 14-063
Page 15
Township’s Liquid Fuels and General Funds due to the three (3) invoices submitted
to the Township exceeding the awarded bid amount of $213,280.00 by the
$32,915.13 paid from the General Fund.
49. Minutes from the Board of Supervisors meeting held on November 14, 2012,
include the following recorded official action approving the month’s Treasurer’s
Report which contained project payments to Eastern Industries, Inc. as follows:
“TREASURER REPORT:
The Treasurer reported a State Fund bill of $213,280.00;
General Fund bills of $125,900.64 and Wages of $2,563.51. As of November 14,
after payment of these bills and wages, the General Account balance is $2,175.84,
State Account (Liquid Fuels) $20,701.86and Reserve Account $764,412.32.
Supervisor Hoover made a motion to approve the all the bills, except for the bill
from Grosser. Seconded by Supervisor Kulp. All in favor, motion carried 3-0.
Supervisor Kulp made a motion to pay the Grosser bill, seconded by Supervisor
Webster. Supervisor Hoover abstained. Two in favor, motion carried 2-0.
Supervisor Hoover made a motion to approve all the wages. Seconded by
Supervisor Kulp. All in favor, motion carried 3-0.”
Present: Webster, Kulp, Hoover.
50. Webster’s participation in voting on contracts where Eastern Industries, Inc. was
one of the bidders continued with paving bids during calendar year 2013.
a. During the Board of Supervisors meetings held between January 2013 and
May 2013, the Supervisors had general discussions on possible road
projects for the year.
b. During the Board of Supervisors May 8, 2013, meeting, the Board of
Supervisors took action on a motion by Supervisor Kulp, seconded by
Webster, to seek bids for 400 tons of paving material (Shertzer Road). All
three (3) Supervisors voted in favor of the motion.
51. On June 12, 2013, the Board of Supervisors awarded a paving contract in the
amount of $29,400.00 for Shertzer Road to Eastern Industries, Inc.
a. The Township received two bids on the project.
b. Bids were received from Eastern Industries, Inc., $29,400.00, and Meckley’s,
$30,580.00.
c. Minutes reflect that the contract was awarded to Eastern Industries, Inc., by
2-0 vote, with Webster voting in the affirmative.
1. Supervisor Kulp was absent from this meeting.
d. Minutes do not include any disclosures from Webster that he had previously
been employed as a subcontracted/hired hauler for Eastern Industries, Inc.,
or that he and his son, Steve Webster, had an ongoing business relationship
with Eastern entities.
e. In 2013, Eastern Industries, Inc./EII Transport, Inc. \[were the sources of\]
99.87% of income claimed by Webster on Schedule C of his Federal Income
Tax Returns.
Webster, 14-063
Page 16
52. Minutes from the Board of Supervisors June 12, 2013, meeting include the following
recorded official action awarding a 2013 paving project to Eastern Industries, Inc.
June 12, 2013
ROADMASTER REPORT:
Opening of the Paving Bids for 400 tons of paving on Shertzer Rd. There were two
bids; Meckley’s $30,580, and Eastern Industries $29,400.00. Supervisor Hoover
made a motion to accept the bid from Eastern Industries. Seconded by Supervisor
Webster and all were in favor. Motion carried 2-0.
Present: Hoover, Webster.
53. On June 12, 2013, Webster, as a Supervisor, executed a contract with Eastern
Industries, Inc. in the amount of $29,400.00 regarding the paving work to be
completed for Shertzer Road.
a. This contract also was executed by Supervisor Hoover.
b. Hoover also was the Township Roadmaster at the time.
54. Work on the Shertzer Road project occurred on September 4, 2013.
a. Eastern Industries, Inc. utilized the services of Steve Webster to haul three
(3) loads of materials as part of the project.
b. Steve Webster received compensation from Eastern Industries, Inc. based
on its standard fee structure in the amount of $228.31 total.
55. Eastern Industries, Inc. invoice number 377524, dated September 26, 2013, was
issued to the Township in the amount of $30,514.26.
a. Job number 31200034 was assigned to a project description of 9.5mm
paving - Shertzer Road.
b. This invoice was $1,114.00 higher than the agreed upon bid price of
$29,400.00.
c. The higher cost was a result of a larger quantity of material being used than
quoted.
1. 400 tons of 9.5mm wearing course were quoted and 415.16 tons were
used.
d. The $30,514.26 paid to Eastern Industries, Inc. for this project was $65.74
less than Meckleys’ bid price of $30,580.00.
e. No change order was submitted or approved by the Board of Supervisors.
f. As to the proceeding, Webster maintains the following: “\[That\] objective
fairness to Mr. Webster, and that Mr. Webster was not versed in law or legal
matters and that it was very important therefore to note the role of a Solicitor,
which raises questions as to what input and what advice he provided and
what instruction that Mr. Webster should abstain from voting in certain
prescribed matters. Thereby, had this been done, would have eliminated the
very issue raised. The failure to address or discuss the roll of Solicitor under
these facts, raises questions of fundamental fairness to Mr. Webster, a
layman, without legal knowledge, who nevertheless aspired to benefit the
taxpayers and township at all times and did so of record.”
Webster, 14-063
Page 17
56. Eastern Industries, Inc. invoice number 377524 was paid by Township Liquid Fuels
Fund check # 363.
a. This check was in the amount of $30,514.26 and was signed by Supervisor
Kulp and Secretary/Treasurer Loesch.
b. Payment of this check was approved by the Board of Supervisors on October
9, 2013, by a 2-0 vote, with Webster voting.
57. The Pennsylvania Department of the Auditor General conducted an audit of the
Township Liquid Fuels Fund account covering the period from January 1, 2012,
through December 31, 2012, during January 2014.
a. Within the Audit Report, a “Related Party Transaction” was identified,
specifically “the Township expended $213,280.00 from the Liquid Fuels Tax
Fund for the purchase of superpave for project No. 12-22205-12. However,
the supervisor \[\] owns a trucking company that subcontracted as an
independent hauler for the company that provided the superpave. Due to
the supervisor/roadmaster’s financial interest in the contract and the
supervisor/roadmaster’s failure to abstain from voting to approve the award
of the contract, this contract appears to violate The Second Class Township
Code and The Public Official and Employee Ethics Act.”
58. As a result of the Liquid Fuels audit for 2012, Webster, Steve Webster, and/or E&E
Trucking ceased being compensated by Eastern entities for hauling materials to the
Township as of February 4, 2014.
a. Additionally, PennDOT has requested the Township to reimburse its Liquid
Fuels Fund account $213,280.00.
59. Webster, Steve Webster, and/or E&E Trucking received a total of $5,803.67 from
Eastern Industries, Inc. and/or EII Transport, Inc. as a result of hauling material
to/for the Township and/or regarding Township projects between 2010 and 2014.
a. Hauling contracts between Webster/E&E Trucking and Eastern Industries,
*
Inc. and/or EII Industries, Inc. accounted for 83% to 115% of Webster’s/E&E
Trucking’s total revenue from 2010 to 2014.
60. Following the investigation of this matter, by way of correspondence dated August
2, 2015, Ira Kulp, Jr., Chairperson of the Board of Supervisors, has attested in
detail to “the caring and regard of Mr. Webster to save Township resources and he
has maintained a record of saving money for the Township and always controls
purchases most beneficial to the Township.”
a. Webster maintains that “\[I\]n the regular business routine, all property
matters, bills and obligations were properly advertised for bids and that Mr.
Webster in every instance, although voted reflect the majority vote of the
Supervisors, always for the benefit for the Township and Township
Taxpayers.”
THE FOLLOWING FINDINGS RELATE TO ALLEGATIONS THAT WEBSTER FAILED
TO FILE COMPLETE AND ACCURATE STATEMENTS OF FINANCIAL INTERESTS
FOR THE 2009 THROUGH 2013 CALENDAR YEARS.
Webster, 14-063
Page 18
61. Webster, in his official capacity as a Member of the Board of Supervisors, was
annually required to file Statement of Financial Interests forms by May 1, reporting
financial interests for the prior calendar year.
62. The Township Secretary/Treasurer annually received blank Statement of Financial
Interests forms from the State Ethics Commission.
a. The Secretary/Treasurer distributes blank Statement of Financial Interests
forms to Members of the Board of Supervisors and other Township officials
each January.
b. Completed Statement of Financial Interests forms are maintained by the
Secretary/Treasurer along with other official Township records.
.
63With the exception of his amended Statement of Financial Interests form for the
2014 calendar year, each of the Statement of Financial Interests forms filed by
Webster contained one or more filing deficiencies per form. The following is a
summary of those filing deficiencies:
a. Webster failed to provide a response to Box # 3, Status, on his Statements
of Financial Interests filed for the 2009 and 2014 calendar years.
b. Webster failed to provide a response (calendar years 2009, 2010, 2011,
2012, 2013) or provided deficient information (calendar year 2014) in Box #
5, Governmental Entity, on Statements of Financial Interests filed for
calendar years 2009 through 2014.
c. Webster failed to provide a response (calendar year 2010) or provided
deficient information (calendar year 2014) in Box # 7, Calendar Year, on his
Statements of Financial Interests filed for the 2010 and 2014 calendar years.
d. Webster failed to provide a response (calendar years 2009, 2010, 2011),
marked none (calendar years 2012, 2013), or provided deficient information
(calendar year 2014) in Box # 10, Direct/Indirect Income on his Statements
of Financial Interests filed for calendar years 2009 through 2014.
e. Webster failed to provide a response (calendar years 2009, 2011, 2012,
2013) or marked none (calendar years 2010, 2014) in Box #13, Office,
Directorship, or Employment in any Business, failing to report his ownership
interest in E&E Trucking on his Statements of Financial Interests filed for
calendar years 2009 through 2014.
f. Webster reported none in Box #14, Financial Interest in any Business, failing
to report his ownership interest in E&E Trucking on his Statements of
Financial Interests filed for calendar years 2009 through 2014.
g. Webster failed to report the current date on his Statement of Financial
Interests filed for the 2009 calendar year.
64. Prior to filing an amended Statement of Financial Interests on April 17, 2015, for the
2014 calendar year, Webster never disclosed on Statements of Financial Interests
filed for calendar years 2009 through 2014 any direct/indirect sources of income,
his office, directorship or employment in any business, or his financial interest in
any business.
a. From 2010 through 2014, Webster annually received income from the
Township in excess of the $1,300.00 reporting requirement.
Webster, 14-063
Page 19
b. From 2010 through 2014, Webster, doing business as E&E Trucking, had a
gross income of no less than $308,087.78.
1. This amount \[includes\] only a portion of the year 2014.
c. From 2010 through 2014, Webster failed to disclose on Statements of
Financial Interests his ownership interest in E&E Trucking.
d. From 2010 through 2014, Webster never disclosed on Statements of
Financial Interests his employment in E&E Trucking.
65. Webster annually received compensation from the Township as both a Member of
the Board of Supervisors and an employee, while not having properly filed
Statement of Financial Interests forms with the Township.
66. W-2 Wage and Tax Statements on file with the Township document the following
income received by Webster in his official capacities as a Supervisor and an
employee since 2010:
a. Year Supervisor Employee Total Income
2010 $780.00 $2,376.00 $3,156.00
2011 $910.00 $ 456.00 $1,366.00
2012 $980.00 $ 322.00 $1,302.00
2013 $770.00 $ 700.00 $1,470.00
2014 $840.00 $5,978.00 $6,818.00
$4,280.00 $9,832.00 $14,112.00.
b. Webster received income from the Township as a Supervisor totaling
$4,280.00 while failing to have properly filed Statement of Financial Interests
forms for the 2009 through 2013 calendar years, as detailed above.
67. Webster’s Statement of Financial Interests dated 01/03/10 was submitted on Form
SEC-1 REV. 01/11.
a. It is believed the form was incorrectly dated as an error and was not done so
with the intent to deceive or submit a falsified document.
68. Webster’s 01/03/10 dated Statement of Financial Interests was the only form that
he filed on which he reports being the owner of E&E Trucking in Box numbers 13
(Office, Directorship or Employment in any Business) and 14 (Financial Interest in
any Business).
69. Webster’s neglect to report his financial interest in E&E Trucking on all Statement
of Financial Interests forms filed, with the exception of the 2010 form, veiled his
ownership interest in E&E Trucking while both Webster and his son, Steve
Webster, were being compensated by Eastern Industries Inc., and EII Transport,
Inc., to haul materials to the Township Municipal Complex.
70. Webster, individually and/or doing business as E&E Trucking, realized a private
pecuniary gain from Eastern entities as the result of hauling materials to/for the
Township.
71. Webster’s son, Steve Webster, realized a de minimis gain as the result of hauling
materials to/for the Township.
Webster, 14-063
Page 20
*
The Stipulated Findings do not indicate how the 115% figures in Fact Findings 28 a and
59 a were calculated.
III.DISCUSSION:
As a Supervisor for Jackson Township (“Township”), Dauphin County, since
February 10, 2010, Respondent Edward D. Webster, also referred to hereinafter as
“Respondent,” “Respondent Webster,” and “Webster,” has been a public officialsubject to
the provisions of the Public Official and Employee Ethics Act (“Ethics Act”), 65 Pa.C.S. §
1101 et seq.
The allegations are that Webster violated Sections 1103(a), 1103(f), 1104(a),
1104(d), 1105(a), 1105(b)(1), 1105(b)(5), 1105(b)(8), and 1105(b)(9) of the Ethics Act: (1)
when he participated in actions of the Township Board of Supervisors, including but not
limited to the awarding of a contract to Eastern Industries, Inc. and/or EII Transport, Inc.,
issuing payment to Eastern Industries, Inc. and/or EII Transport, Inc., and/or
authorizing/directing that purchases be made from Eastern Industries, Inc. and/or EII
Transport, Inc., at a time when he knew and/or had a reasonable expectation that he, a
member of his immediate family, and/or E&E Trucking, a business with which he and/or
members of his immediate family are associated, would serve as a subcontractor for
Eastern Industries, Inc. and/or EII Transport, Inc. on those Township-related
contracts/purchases; (2) when he, a member of his immediate family, and/or a business
with which he and/or a member of his immediate family is associated served as a
subcontractor regarding purchases/contracts which were awarded to Eastern Industries,
Inc. and/or EII Transport Inc. absent an open and public process; (3) when he failed to file
complete and accurate Statements of Financial Interests (“SFIs”) for the 2009 through
2013 calendar years by failing to provide a response to “Status” on his SFI filed for the
2009 calendar year, by failing to provide a response to “Governmental Entity” on SFIs filed
for calendar years 2009 through 2013, by failing to provide a response to “Calendar Year”
on SFIs filed for the 2010 calendar year, by failing to provide a response to and/or failing
to report “Direct/Indirect Sources of Income” on SFIs filed for calendar years 2009 through
2013, by failing to provide a response to “Office, Directorship, or Employment in any
Business” and/or failing to report his ownership interest in E&E Trucking on SFIs filed for
calendar years 2009 through 2013, by reporting “none” to “Financial Interest in any
Business” and/or failing to report his ownership interest in E&E Trucking on SFIs filed for
calendar years 2009 through 2013, and by failing to report the current date on his SFI filed
for the 2009 calendar year; and (4) when he backdated an SFI purportedly filed for the
2010 calendar year.
Per the Consent Agreement of the parties, the Investigative Division has exercised
its prosecutorial discretion to nol pros the allegations arising under Section 1105(b)(1) of
the Ethics Act regarding Webster’s failure to provide a response to “Status” on his SFI for
calendar year 2009 and a response to “Governmental Entity” on his SFIs for calendar
years 2009 through 2013. Based upon the nol pros, we need not address those
allegations that are 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
employee shall engage in conduct that constitutes a conflict of
interest.
65 Pa.C.S. § 1103(a).
Webster, 14-063
Page 21
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
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 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:
§ 1103. Restricted activities
(f)Contract.—
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 his spouse or child or business with which the public official/public employee
or his 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
Webster, 14-063
Page 22
through an open and public process including prior public notice and subsequent public
disclosure of all proposals considered and contracts awarded.
Section 1104(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 1104(d) of the Ethics Act provides that no public official shall be allowed to
take the oath of office, 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 1105(a) of the Ethics Act provides that the SFI shall be filed on the form
prescribed by this Commission; that all information requested on the form shall be
provided to the best of the knowledge, information and belief of the filer; and that the form
shall be signed under oath or equivalent affirmation.
Section 1105(b) of the Ethics Act and its subsections detail the financial disclosure
that a person required to file the SFl form must provide.
Section 1105(b)(1) of the Ethics Act requires the filer to disclose on the SFI his
name, address, and public position.
Subject to certain statutory exceptions not applicable to this matter, Section
1105(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)(8) of the Ethics Act requires the filer to disclose on the SFI any
office, directorship or employment in any business entity.
Section 1105(b)(9) of the Ethics Act requires the filer to disclose on the SFI any
financial interest in any legal entity engaged in business for profit. The term “financial
interest” is defined in the Ethics Act 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 is governed by a three-Member Board of Supervisors (“Board”).
Webster has served as a Supervisor since his appointment to the Board on February 10,
2010.
The Township does not employ any individuals on a full-time basis for road
maintenance and repair. Township road work is scheduled and supervised by one of the
Supervisors, who serves as Roadmaster. Township Supervisor Justin K. Hoover
(“Hoover”) served as Roadmaster from approximately January 2010 to November 13,
2013. Webster served as the Township’s Interim-Roadmaster from November 13, 2013,
until January 6, 2014, when the interim designation was eliminated and he assumed the
role of Roadmaster.
In a private capacity, Webster is the owner and operator of E&E Trucking, a
trucking business. The trucks of E&E trucking are primarily operated by Webster and
occasionally operated by Steve Webster, who is Webster’s son. Steve Webster also
operates his own trucking business named “Steve Webster Trucking.”
Webster, 14-063
Page 23
Webster, doing business as E&E Trucking, provided material hauling services to the
Township prior to his appointment to the Board on February 10, 2010. Webster ceased
hauling materials directly for the Township once he became a Member of the Board.
Eastern Industries, Inc. and EII Transport, Inc. are subsidiary companies owned by
New Enterprise Stone & Lime Company. Eastern Industries, Inc. offers the construction
industry a wide range of services and products. EII Transport, Inc. provides hauling and
delivery of building and construction materials.
On September 25, 2009, Webster signed operating agreements with Eastern
Industries, Inc. and Ell Transport, Inc. On October 31, 2011, Steve Webster signed
operating agreements with Eastern Industries, Inc. and Ell Transport, Inc. Pursuant to the
aforesaid operating agreements, Webster and Steve Webster were contracted haulers for
Eastern Industries, Inc. and Ell Transport, Inc. Webster and Steve Webster were included
as part of the hired haulers list utilized by Eastern Industries, Inc. for materials transferred
to and from its Elizabethville Quarry. After Webster became a Member of the Board, he
and Steve Webster provided hauling services to the Township as subcontractors for
Eastern Industries, Inc. or EII Transport, Inc.
The Township does not solicit bids, quotes, or proposals for hauling services
needed as part of regular road maintenance, repairs, or winter maintenance. Since 2010,
the Township has annually exceeded a $500.00 aggregate threshold as it relates to fees
associated with the delivery of stockpiled materials at the Township municipal complex.
The Township has contracted primarily with Eastern Industries, Inc. and Ell Transport, Inc.
for the purchase and delivery of materials for use on Township roads.
Since Webster became a Member of the Board in 2010, orders for materials were
placed by both Hoover and Webster. From 2010 to November 13, 2013, it was Hoover’s
responsibility to order materials from Eastern Industries, Inc., in his official capacity as
Supervisor/Roadmaster. Since November 13, 2013, Webster assumed that responsibility
in his official capacity as Supervisor/Roadmaster. The Township does not maintain
records identifying the Township representative placing orders for materials from Eastern
Industries, Inc.
Since at least 2010, the Township routinely purchased and received materials,
including asphalt, anti-skid, and various sizes of stone, from Eastern Industries, Inc.’s
Elizabethville Quarry. Ell Transport, Inc. utilized the services of contracted hired haulers,
including Webster/E&E Trucking and Steve Webster, to haul and deliver various materials
on behalf of the Township. Between September 8, 2010, and December 11, 2013, EII
Transport, Inc. was paid approximately $4,117.52 for hauling services regarding deliveries
to the Township.
During 2010, the Township would receive one invoice from Eastern Industries, Inc.,
which included charges for materials and delivery. From 2011 through 2013, the Township
would receive two separate invoices per transaction for the purchase and delivery of
materials. The first invoice was from Eastern Industries, Inc. and accounted for the
materials. The second invoice was from EII Transport, Inc. and covered charges
associated with delivery of the materials. The charges associated with delivery included
payments made to subcontractors or hired haulers, including Webster and Steve Webster.
When a Township-owned truck was used to haul the materials from Eastern Industries,
Inc.’s Elizabethville Quarry, the Township would only be invoiced for the materials.
The parties have stipulated that from February 2010 through February 2014,
Webster participated in official actions of the Board concerning contracts entered into with
and routine purchases of goods and services from Eastern Industries, Inc. and EII
Transport, Inc. during a time when he, Steve Webster, or E&E Trucking had a reasonable
expectation of receiving hauling work as a result of the contracts awarded and goods and
Webster, 14-063
Page 24
services purchased. Webster’s official actions included purchasing road aggregate
materials from Eastern Industries, Inc. and participating in Board action to approve
payments issued to Eastern Industries, Inc. and EII Transport, Inc. relating to the purchase
of materials by the Township and the delivery of materials to the Township.
In addition to routinely purchasing materials and hauling services from Eastern
Industries, Inc. and EII Transport, Inc., the Township awarded contracts for paving projects
to Eastern Industries, Inc. during 2012 and 2013. The contracts for these projects were
awarded through a competitive, sealed bid process, and payments for the contracts were
made using Liquid Fuels funds that the Township annually received from the
Commonwealth. Webster did not publicly disclose that he, Steve Webster, or E&E
Trucking had a reasonable expectation of receiving contracted hauling work as part of
such contracts based on their ongoing business relationships with Eastern Industries, Inc.
and Ell Transport, Inc.
On May 9, 2012, the Board voted to advertise for bids for Township road projects
for the year. On June 13, 2012, Webster participated in the Board’s review of bids that
were submitted by various businesses, including Eastern Industries, Inc. Webster further
participated in two Board votes to award paving and other Township road work, hereinafter
referred to as “the 2012 Township Road Project,” to Eastern Industries, Inc. Such road
work included a paving project at Eastern Industries, Inc.’s stated bid price of $213,280.00.
Webster, in his official capacity as a Supervisor, signed a contract with Eastern Industries,
Inc. regarding the 2012 Township Road Project. Webster did not disclose that he had a
private business relationship with Eastern Industries, Inc. or that he possessed a
reasonable expectation of receiving hauling work from Eastern Industries, Inc. or EII
Transport, Inc. as part of the 2012 Township Road Project. On September 9, 2012,
Webster seconded a motion and participated in the Board vote to approve a $5,600.00
change order for additional milling work for the 2012 Township Road Project.
Eastern Industries, Inc. began working on the 2012 Township Road Project on
approximately September 17, 2012. Eastern Industries, Inc. utilized Webster to serve as a
subcontracted hauler of materials on the 2012 Township Road Project on September 20,
2012, and September 21, 2012, during which time Webster’s truck hauled at least thirteen
loads of asphalt at a cost of $17,492.81 to the Township. Webster received compensation
in the amount of $963.32 from Eastern Industries, Inc. as a result of providing these
hauling services.
On October 9, 2012, Eastern Industries, Inc. submitted three separate invoices
totaling $246,195.13 to the Township for work associated with the 2012 Township Road
Project. On November 14, 2012, Webster participated in the Board’s vote to approve
monthly bills that included payments of $213,280.00 and $32,915.13 to Eastern Industries,
Inc. for the 2012 Township Road Project. Webster was one of two signatories for a
Township General Fund check in the amount of $32,915.13 that was issued to Eastern
Industries, Inc. Webster participated in the approval of payments to Eastern Industries,
Inc. for the 2012 Township Road Project even though he served as a compensated hauler
for the 2012 Township Road Project.
During Board meetings held between January 2013 and May 2013, the Supervisors
had general discussions on possible road projects for the year. On May 8, 2013, Webster
seconded a motion and participated in the Board vote to seek bids for 400 tons of paving
material for Shertzer Road, hereinafter referred to as “the Shertzer Road Project.”
On June 12, 2013, Webster participated in the review of bids that were submitted
for the Shertzer Road Project, including a bid from Eastern Industries, Inc. Webster further
seconded a motion and participated in the Board vote to award a paving contract in the
amount of $29,400.00 to Eastern Industries, Inc. for the Shertzer Road Project. Webster,
in his official capacity as a Supervisor, signed a contract with Eastern Industries, Inc.
Webster, 14-063
Page 25
regarding the Shertzer Road Project. Work on the Shertzer Road Project occurred on
September 4, 2013. Eastern Industries, Inc. utilized the services of Steve Webster to haul
three loads of materials as part of the Shertzer Road Project. Steve Webster received
compensation totaling $228.31 from Eastern Industries, Inc. for such hauling. On October
9, 2013, Webster participated in the Board’s vote to approve payment of an invoice in the
amount of $30,514.26 from Eastern Industries, Inc. for work on the Shertzer Road Project.
Between 2010 and 2014, Webster, Steve Webster, and E&E Trucking received a
total of $5,803.67 from Eastern Industries, Inc. and Ell Transport, Inc. as a result of hauling
materials to or for the Township. Between January 15, 2010, and February 4, 2014,
Webster received payments totaling approximately $4,216.43 from Eastern Industries, Inc.
and EII Transport, Inc. as the result of eighty instances of hauling materials that were
delivered to the Township. Steve Webster received payments totaling $1,587.24 from
Eastern Industries, Inc. and EII Transport, Inc. as the result of thirty instances of hauling or
delivering materials to the Township between February 15, 2011, and January 6, 2014.
The parties have stipulated that Steve Webster realized a de minimis gain as the result of
hauling materials to or for the Township.
During January 2014, the Pennsylvania Department of the Auditor General
conducted an audit of the Township Liquid Fuels Fund account covering the period from
January 1, 2012, through December 31, 2012. A Liquid Fuels Audit Report issued by the
Pennsylvania Department of the Auditor General on January 28, 2014, questioned the
hauling services provided by Webster and Steve Webster as related party transactions.
As a result of the audit, Webster, Steve Webster, and E&E Trucking ceased being
compensated by Eastern Industries, Inc. and Ell Transport, Inc. for hauling materials to the
Township as of February 4, 2014.
Re: Webster’s SFIs for calendar years 2009 through 2013
As a Township Supervisor, Webster is required to annually file an SFI by May 1
containing information for the prior calendar year. The parties have stipulated that
Webster’s SFIs for calendar years 2009 through 2013 were deficient, in pertinent part, as
follows:
Webster failed to provide a response to block number 7 (Calendar Year) on his SFI
for calendar year 2010;
Webster failed to provide a response or marked none for block number 10
(Direct/Indirect Income) on his SFIs for calendar years 2009 through 2013, despite
having received income in excess of $1,300.00 during each calendar year;
Webster failed to provide a response or marked none for block number 13 (Office,
Directorship, or Employment in any Business) and marked none for block number
14 (Financial Interest in any Business) on his SFIs for calendar years 2009 through
2013; and
Webster failed to report the current date on his SFI for calendar year 2009.
As for the allegation that Webster backdated an SFI form purportedly filed for the
2010 calendar year, the parties are in agreement that such form was incorrectly dated as
an error and that the alleged “backdating” was not done with the intent to deceive or
submit a falsified document.
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:
Webster, 14-063
Page 26
3. The Investigative Division will recommend the following in
relation to the above allegations:
a. That a violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred in relation to Webster’s
participation in actions of the Jackson Township
Board of Supervisors to make purchases from,
award contract(s) to, and authorize payment to,
Eastern Industries, Inc. and/or EII Transport,
Inc., at a time when he knew and/or had a
reasonable expectation that he and/or E&E
Trucking, a business with which he is
associated, would be serving or had actually
served as the subcontracted hauler for either
Eastern Industries, Inc. and/or EII Transport, Inc.
on those same Township related purchases
/contracts.
b. That no violation of Section 1103(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(a), occurred in relation to Webster’s
participation in actions of the Jackson Township
Board of Supervisors to make purchases from,
award contract(s) to, and authorize payment to,
Eastern Industries, Inc. and/or EII Transport,
Inc., at a time when he knew and/or had a
reasonable expectation that a member of his
immediate family and/or a business with which
members of his immediate family are associated,
would be serving or had actually served as the
subcontracted hauler for either Eastern
Industries, Inc. and/or EII Transport, Inc. on
those same Township related purchases/
contracts, in that any pecuniary benefit was de
minimis.
c. That no violation of Section 1103(f) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(f), occurred in relation to Webster’s
participation in actions of the Jackson Township
Board of Supervisors to award/enter into a
contract(s) absent an open and public process,
at a time when Webster, a member of his
immediate family, and/or a business with which
he and/or a member of his immediate family is
associated would be serving/served as a
subcontractor regarding those contracts, in that
insufficient evidence is present to establish that
any subcontract exceeded $500.00.
d. That a violation of Section 1105(b)(1) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(1), occurred when Webster
neglected to provide a response to “Calendar
Year” on a Statement of Financial Interests filed
Webster, 14-063
Page 27
for the 2010 calendar year, and neglected to
report the current date on his Statement of
Financial Interests filed for the 2009 calendar
year.
e. That a violation of Section 1105(b)(5) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(5), occurred when Webster
did not provide a response to and/or neglected
to report “Direct/Indirect Sources of Income” on
Statements of Financial Interests filed for
calendar years 2009 through 2013.
f. That a violation of Section 1105(b)(8) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(8), occurred when Webster
did not provide a response to “Office,
Directorship, or Employment in any Business”
and/or neglected to report his ownership interest
in E&E Trucking on Statements of Financial
Interests filed for calendar years 2009 through
2013.
g. That a violation of Section 1105(b)(9) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(9), occurred when Webster
reported “none” to “Financial Interest in any
Business” and/or neglected to report his
ownership interest in E&E Trucking on
Statements of Financial Interests filed for
calendar years 2009 through 2013.
h. That no violation of Section 1104(a) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1104(a), occurred when it appeared as though
Webster had backdated a Statement of Financial
Interests purportedly filed for the 2010 calendar
year, in that evidence suggests the “backdating”
was unintentional and not done with an attempt
to conceal or mislead.
i. That no violation of Section 1105(b)(1) of the
Public Official and Employee Ethics Act, 65
Pa.C.S. § 1105(b)(1), occurred when Webster
did not file complete and accurate Statements of
Financial Interests for the 2009 through 2013
calendar years by neglecting to provide a
response to “Status” on his SFI filed for the 2009
calendar year \[and by\] neglecting to provide a
response to “Governmental Entity” on
Statements of Financial Interests filed for
calendar years 2009 through 2013, as same are
hereby nol prossed.
4. Webster agrees to make payment in the amount of $1,500.00
in settlement of this matter payable to the Commonwealth of
Pennsylvania and forwarded to the Pennsylvania State Ethics
Webster, 14-063
Page 28
Commission within thirty (30) days of the issuance of the final
adjudication in this matter.
5. Webster agrees to file complete and accurate amended
Statements of Financial Interests with Jackson Township
through the Pennsylvania State Ethics Commission for the
2009, 2010, 2011, 2012 and 2013 calendar years within thirty
(30) days of the issuance of the final adjudication in this
matter.
6. Webster agrees to not accept any reimbursement,
compensation or other payment from Jackson 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 Respondent's 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, at 2-4.
In considering the Consent Agreement, we accept the parties’ recommendations for
findings that: (1) a violation of Section 1103(a) of the Ethics Act occurred in relation to
Webster’s participation in actions of the Board to make purchases from, award contract(s)
to, and authorize payment to Eastern Industries, Inc. and/or EII Transport, Inc. at a time
when he knew and/or had a reasonable expectation that he and/or E&E Trucking, a
business with which he is associated, would be serving or had actually served as the
subcontracted hauler for either Eastern Industries, Inc. and/or EII Transport, Inc. on those
same Township-related purchases/contracts; and (2) no violation of Section 1103(a) of the
Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to Webster’s participation in actions
of the Board to make purchases from, award contract(s) to, and authorize payment to
Eastern Industries, Inc. and/or EII Transport, Inc. at a time when he knew and/or had a
reasonable expectation that a member of his immediate family and/or a business with
which members of his immediate family are associated would be serving or had actually
served as the subcontracted hauler for either Eastern Industries, Inc. and/or EII Transport,
Inc. on those same Township-related purchases/contracts, in that any pecuniary benefit
was de minimis.
E&E Trucking is a business with which Webster is associated as the owner.
Webster’s son, Steve Webster, operates his own trucking business named “Steve Webster
Trucking.” After Webster became a Member of the Board on February 10, 2010, he and
Steve Webster provided hauling services to the Township as subcontractors for Eastern
Industries, Inc. or EII Transport, Inc.
Since at least 2010, the Township routinely purchased and received materials,
including asphalt, anti-skid, and various sizes of stone, from Eastern Industries, Inc.’s
Elizabethville Quarry. Ell Transport, Inc. utilized the services of contracted hired haulers,
including Webster and Steve Webster, to haul and deliver various materials on behalf of
the Township.
Webster, 14-063
Page 29
The parties have stipulated that from February 2010 through February 2014,
Webster participated in official actions of the Board concerning contracts entered into with
and routine purchases of goods and services from Eastern Industries, Inc., and EII
Transport, Inc. during a time when he, Steve Webster, or E&E Trucking had a reasonable
expectation of receiving hauling work as a result of the contracts awarded and goods and
services purchased. Webster’s official actions included purchasing road aggregate
materials from Eastern Industries, Inc. and participating in Board action to approve
payments issued to Eastern Industries, Inc. and EII Transport, Inc. relating to the purchase
of materials by the Township and the delivery of materials to the Township.
On June 13, 2012, Webster used the authority of his public position as a Supervisor
when he: (1) participated in the Board’s review of bids that were submitted by various
businesses, including Eastern Industries, Inc., pertaining to the 2012 Township Road
Project; (2) participated in two Board votes to award the 2012 Township Road Project to
Eastern Industries, Inc.; and (3) signed a contract with Eastern Industries, Inc. regarding
the 2012 Township Road Project. Webster did not disclose that he had a private business
relationship with Eastern Industries, Inc. or that he possessed a reasonable expectation of
receiving hauling work from Eastern Industries, Inc. or EII Transport, Inc. as part of the
2012 Township Road Project.
Eastern Industries, Inc. utilized Webster to serve as a subcontracted hauler of
materials on the 2012 Township Road Project on September 20, 2012, and September 21,
2012, during which time Webster’s truck hauled at least thirteen loads of asphalt at a cost
of $17,492.81 to the Township. Webster received compensation in the amount of $963.32
from Eastern Industries, Inc. as a result of providing these hauling services. On November
14, 2012, Webster participated in the Board’s vote to approve monthly bills that included
payments of $213,280.00 and $32,915.13 to Eastern Industries, Inc. for the 2012
Township Road Project. Webster was one of two signatories for a Township General Fund
check in the amount of $32,915.13 that was issued to Eastern Industries, Inc.
On June 12, 2013, Webster used the authority of his public position as a Supervisor
when he: (1) participated in the review of bids that were submitted for the Shertzer Road
Project, including a bid from Eastern Industries, Inc.; (2) seconded a motion and
participated in the Board vote to award a paving contract in the amount of $29,400.00 to
Eastern Industries, Inc. for the Shertzer Road Project; and (3) signed a contract with
Eastern Industries, Inc. regarding the Shertzer Road Project.
Eastern Industries, Inc. utilized the services of Steve Webster to haul three loads of
materials as part of the Shertzer Road Project. Steve Webster received compensation
totaling $228.31 from Eastern Industries, Inc. for such hauling. On October 9, 2013,
Webster participated in the Board’s vote to approve payment of an invoice in the amount of
$30,514.26 from Eastern Industries, Inc. for work on the Shertzer Road Project.
Between January 15, 2010, and February 4, 2014, Webster received payments
totaling approximately $4,216.43 from Eastern Industries, Inc. and EII Transport, Inc. as
the result of eighty instances of hauling materials that were delivered to the Township.
Steve Webster received payments totaling $1,587.24 from Eastern Industries, Inc. and EII
Transport, Inc. as the result of thirty instances of hauling or delivering materials to the
Township between February 15, 2011, and January 6, 2014. The parties have stipulated
that Steve Webster realized a de minimis gain as the result of hauling materials to or for
the Township.
Based upon the Stipulated Findings and the Consent Agreement, we hold that a
violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in relation to
Webster’s participation in actions of the Board to make purchases from, award contract(s)
to, and authorize payment to Eastern Industries, Inc. and/or EII Transport, Inc. at a time
when he knew and/or had a reasonable expectation that he and/or E&E Trucking, a
Webster, 14-063
Page 30
business with which he is associated, would be serving or had actually served as the
subcontracted hauler for either Eastern Industries, Inc. and/or EII Transport, Inc. on those
same Township-related purchases/contracts.
We further hold no violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. §
1103(a), occurred in relation to Webster’s participation in actions of the Board to make
purchases from, award contract(s) to, and authorize payment to Eastern Industries, Inc.
and/or EII Transport, Inc. at a time when he knew and/or had a reasonable expectation that
a member of his immediate family and/or a business with which members of his immediate
family are associated would be serving or had actually served as the subcontracted hauler
for either Eastern Industries, Inc. and/or EII Transport, Inc. on those same Township-
related purchases/contracts, in that any pecuniary benefit was de minimis.
The parties have recommended a finding that no violation of Section 1103(f) of the
Ethics Act, 65 Pa.C.S. § 1103(f), occurred in relation to Webster’s participation in actions
of the Board to award/enter into a contract(s) absent an open and public process at a time
when Webster, a member of his immediate family, and/or a business with which he and/or
a member of his immediate family is associated would be serving/served as a
subcontractor regarding those contracts, for the proffered reason of an insufficiency of
evidence to establish that any subcontract exceeded $500.00. Although the Stipulated
Findings reflect that Webster’s subcontract with Eastern Industries, Inc. regarding the 2012
Township Road Project exceeded $500.00, we recognize that when a Consent Agreement
is negotiated, there is a “give and take” by both sides as part of the negotiation process.
Therefore, we will treat the Section 1103(f) allegation as a “non pros” by the Investigative
Division.
Accordingly, we hold that no violation of Section 1103(f) of the Ethics Act, 65
Pa.C.S. § 1103(f), occurred in relation to Webster’s participation in actions of the Board to
award/enter into a contract(s) absent an open and public process, at a time when Webster,
a member of his immediate family, and/or a business with which he and/or a member of his
immediate family is associated would be serving/served as a subcontractor regarding
those contracts, based upon a non pros by the Investigative Division.
Turning to the allegations regarding Webster’s SFIs, we hold that: (1) a violation of
Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred when Webster
neglected to provide a response to “Calendar Year” on an SFI filed for the 2010 calendar
year and neglected to report the current date on his SFI filed for the 2009 calendar year;
(2) a violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5), occurred
when Webster did not provide a response to and/or neglected to report “Direct/Indirect
Sources of Income” on SFIs filed for calendar years 2009 through 2013; (3) a violation of
Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8), occurred when Webster did
not provide a response to “Office, Directorship, or Employment in any Business” and/or
neglected to report his ownership interest in E&E Trucking on SFIs filed for calendar years
2009 through 2013; (4) a violation of Section 1105(b)(9) of the Ethics Act, 65 Pa.C.S. §
1105(b)(9), occurred when Webster reported “none” to “Financial Interest in any Business”
and/or neglected to report his ownership interest in E&E Trucking on SFIs filed for
calendar years 2009 through 2013; and (5) no violation of Section 1104(a) of the Ethics
Act, 65 Pa.C.S. § 1104(a), occurred as to the allegation that Webster backdated an SFI
purportedly filed for the 2010 calendar year, based upon a non pros by the Investigative
Division. The latter determination of no violation of Section 1104(a) is based upon a non
pros by the Investigative Division rather than the reasoning enunciated by the parties
because: (1) intent is not required in order to find a violation of the Ethics Act for
backdating an SFI form (see, e.g., Commission Orders Nos. 1470-1478); and (2) failure to
properly date an SFI form may form the basis for a violation of Section 1105 of the Ethics
Act.
Webster, 14-063
Page 31
It appears that the Investigative Division in the exercise of its prosecutorial
discretion also has elected to non pros those portions of the allegations pertaining to
Sections 1104(d) and 1105(a) of the Ethics Act.
As part of the Consent Agreement, Webster has agreed to make payment in the
amount of $1,500.00 payable to the Commonwealth of Pennsylvania and forwarded to this
Commission within thirty (30) days of the issuance of the final adjudication in this matter.
Webster has also agreed 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. Webster has further agreed to file complete and accurate
amended SFIs for the 2009, 2010, 2011, 2012, and 2013 calendar years with the
Township, through this Commission, within thirty days of the issuance of the final
adjudication in this matter.
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, Webster is directed to make
payment in the amount of $1,500.00 payable to the Commonwealth of Pennsylvania and
th
forwarded to this Commission by no later than the thirtieth (30) day after the mailing date
of this adjudication and Order.
Per the Consent Agreement of the parties, Webster is further 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, Webster is directed to file complete and
accurate amended SFIs for the 2009, 2010, 2011, 2012, and 2013 calendar years with the
th
Township, through this Commission, by no later than the thirtieth (30) day after the
mailing date of this adjudication and Order.
Noncompliance with the foregoing will result in the institution of an order
enforcement action.
As part of the Consent Agreement, it is recommended that this Commission make
no specific recommendations to any law enforcement or other authority to take action in
this matter. It is our determination that this matter shall be referred to the United States
Attorney for the Middle District of Pennsylvania, the Office of Attorney General of the
Commonwealth of Pennsylvania, and the District Attorney of Dauphin County for review for
whatever action they may deem appropriate.
IV.CONCLUSIONS OF LAW:
1. As a Supervisor for Jackson Township (“Township”), Dauphin County, since
February 10, 2010, Respondent Edward D. Webster (“Webster”) has been a public
official subject to the provisions of the Public Official and Employee Ethics Act
(“Ethics Act”), 65 Pa.C.S. § 1101 et seq.
2. Webster violated Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), in
relation to his participation in actions of the Township Board of Supervisors to make
purchases from, award contract(s) to, and authorize payment to Eastern Industries,
Inc. and/or EII Transport, Inc. at a time when he knew and/or had a reasonable
expectation that he and/or E&E Trucking, a business with which he is associated,
would be serving or had actually served as the subcontracted hauler for either
Eastern Industries, Inc. and/or EII Transport, Inc. on those same Township-related
purchases/contracts.
Webster, 14-063
Page 32
3. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Webster’s participation in actions of the Township Board of Supervisors
to make purchases from, award contract(s) to, and authorize payment to Eastern
Industries, Inc. and/or EII Transport, Inc. at a time when he knew and/or had a
reasonable expectation that a member of his immediate family and/or a business
with which members of his immediate family are associated would be serving or had
actually served as the subcontracted hauler for either Eastern Industries, Inc.
and/or EII Transport, Inc. on those same Township-related purchases/contracts, in
that any pecuniary benefit was de minimis.
4. No violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred in
relation to Webster’s participation in actions of the Township Board of Supervisors
to award/enter into a contract(s) absent an open and public process at a time when
Webster, a member of his immediate family, and/or a business with which he and/or
a member of his immediate family is associated would be serving/served as a
subcontractor regarding those contracts, based upon a non pros by the
Investigative Division.
5. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred
when Webster neglected to provide a response to “Calendar Year” on a Statement
of Financial Interests (“SFI”) filed for the 2010 calendar year and neglected to
report the current date on his SFI filed for the 2009 calendar year.
6. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5),
occurred when Webster did not provide a response to and/or neglected to report
“Direct/Indirect Sources of Income” on SFIs filed for calendar years 2009 through
2013.
7. A violation of Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8),
occurred when Webster did not provide a response to “Office, Directorship, or
Employment in any Business” and/or neglected to report his ownership interest in
E&E Trucking on SFIs filed for calendar years 2009 through 2013.
8. A violation of Section 1105(b)(9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(9),
occurred when Webster reported “none” to “Financial Interest in any Business”
and/or neglected to report his ownership interest in E&E Trucking on SFIs filed for
calendar years 2009 through 2013.
9. No violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred as
to the allegation that Webster backdated an SFI purportedly filed for the 2010
calendar year, based upon a non pros by the Investigative Division.
In Re: Edward D. Webster, : File Docket: 14-063
Respondent : Date Decided: 10/6/15
: Date Mailed: 10/21/15
ORDER NO. 1684
1. As a Supervisor for Jackson Township (“Township”), Dauphin County, Edward D.
Webster (“Webster”) violated Section 1103(a) of the Public Official and Employee
Ethics Act (“Ethics Act”), 65 Pa.C.S. § 1103(a), in relation to his participation in
actions of the Township Board of Supervisors to make purchases from, award
contract(s) to, and authorize payment to Eastern Industries, Inc. and/or EII
Transport, Inc. at a time when he knew and/or had a reasonable expectation that he
and/or E&E Trucking, a business with which he is associated, would be serving or
had actually served as the subcontracted hauler for either Eastern Industries, Inc.
and/or EII Transport, Inc. on those same Township-related purchases/contracts.
2. No violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred in
relation to Webster’s participation in actions of the Township Board of Supervisors
to make purchases from, award contract(s) to, and authorize payment to Eastern
Industries, Inc. and/or EII Transport, Inc. at a time when he knew and/or had a
reasonable expectation that a member of his immediate family and/or a business
with which members of his immediate family are associated would be serving or had
actually served as the subcontracted hauler for either Eastern Industries, Inc.
and/or EII Transport, Inc. on those same Township-related purchases/contracts, in
that any pecuniary benefit was de minimis.
3. No violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred in
relation to Webster’s participation in actions of the Township Board of Supervisors
to award/enter into a contract(s) absent an open and public process at a time when
Webster, a member of his immediate family, and/or a business with which he and/or
a member of his immediate family is associated would be serving/served as a
subcontractor regarding those contracts, based upon a non pros by the
Investigative Division.
4. A violation of Section 1105(b) of the Ethics Act, 65 Pa.C.S. § 1105(b), occurred
when Webster neglected to provide a response to “Calendar Year” on a Statement
of Financial Interests (“SFI”) filed for the 2010 calendar year and neglected to
report the current date on his SFI filed for the 2009 calendar year.
5. A violation of Section 1105(b)(5) of the Ethics Act, 65 Pa.C.S. § 1105(b)(5),
occurred when Webster did not provide a response to and/or neglected to report
“Direct/Indirect Sources of Income” on SFIs filed for calendar years 2009 through
2013.
6. A violation of Section 1105(b)(8) of the Ethics Act, 65 Pa.C.S. § 1105(b)(8),
occurred when Webster did not provide a response to “Office, Directorship, or
Employment in any Business” and/or neglected to report his ownership interest in
E&E Trucking on SFIs filed for calendar years 2009 through 2013.
7. A violation of Section 1105(b)(9) of the Ethics Act, 65 Pa.C.S. § 1105(b)(9),
occurred when Webster reported “none” to “Financial Interest in any Business”
Webster, 14-063
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and/or neglected to report his ownership interest in E&E Trucking on SFIs filed for
calendar years 2009 through 2013.
8. No violation of Section 1104(a) of the Ethics Act, 65 Pa.C.S. § 1104(a), occurred as
to the allegation that Webster backdated an SFI purportedly filed for the 2010
calendar year, based upon a non pros by the Investigative Division.
9. Per the Consent Agreement of the parties, Webster is directed to make payment in
the amount of $1,500.00 payable to the Commonwealth of Pennsylvania and
forwarded to the Pennsylvania State Ethics Commission by no later than the
th
thirtieth (30) day after the mailing date of this Order.
10. Per the Consent Agreement of the parties, Webster is further 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.
11. To the extent he has not already done so, Webster is directed to file complete and
accurate amended SFIs for the 2009, 2010, 2011, 2012, and 2013 calendar years
with the Township, through the Pennsylvania State Ethics Commission, by no later
th
than the thirtieth (30) day after the mailing date of this Order.
12. Non-compliance with Paragraph 9, 10, or 11 of this Order will result in the institution
of an order enforcement action.
13. This matter shall be referred to the United States Attorney for the Middle District of
Pennsylvania, the Office of Attorney General of the Commonwealth of
Pennsylvania, and the District Attorney of Dauphin County for review for whatever
action they may deem appropriate.
BY THE COMMISSION,
___________________________
Nicholas A. Colafella, Chair