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In Re: William Kasper,
Respondent
STATE ETHICS COMMISSION
FINANCE BUILDING
6,13 NORTH STREE"'I'", ROOM 309
HARRISBURG, r-)A 17120-0400
File Docket:
Order No.
Date Decided:
Date Mailed:
21-,034
1,819
4/12/23
4/14/23
Before: Shelley Y. Simms, Chair
Michael A. Schwartz, Vice Chair
Rhonda Hill Wilson
Paul E. Parsells
David L. Reddecliff
This is a final adjudication of the State Ethics Commission."
FACSIULE: 717--787-0806
WEBSITE: wmw& Lh((__,,_ g � qy
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.CS, § 1101 et sue., 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," 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 William D. Kasper, a public employee in his capacity as the Customer Service
Manager for North Penn Water Authority, Montgomery County, violated Sections 1103(a),
11 03(g), 11 04(a), and 1105(a) of the Ethics Act:
(1) When he utilized the authority of his public position as the Customer Service
Manager for North Penn Water Authority to influence, steer, and negotiate a
contract valued at approximately $2,566,600 with RID Supply, Inc. to purchase and
install water meters at a time when he was negotiating future employment with RIO
Supply, Inc, and accepting travel, lodging, and hospitality from RICE Supply Inc.;
' Commissioner Roc b:ert P. Caruso recused himself fr-om this matter and did not participate in the deliberations
involving this case.
Kasper, 21-034
Page 2
(2) When he represented, for promised or actual consideration, himself and/or a
business he is associated with, RIO Supply, Inc., in sales efforts and/or eontract(s)
with North Penn Water Authority within one year of leaving employment with
North Penn Water Authority; and
(3) When he failed to file Statements of Financial Interests for calendar years 2016,
2017, 2018, 2019, and 2020.
II. FINDINGS:
1. William D. Kasper ("Kasper") was employed with North Penn Water Authority ("NPWA")
as its Customer Service Manager from April 27, 2015, until January 8, 2021.
a. Kasper returned as a part-time NPWA employee on January 22, 2021, to train
newly -hired NPWA Customer Service Manager Christopher Norris.
1. Kasper resigned from the part-time position on April 30, 2021.
2. The NPWA is a governmental entity created pursuant to the Pennsylvania Municipality
Authorities Act.
a. The NPWA was incorporated on August 10, 1964.
b. The NPWA is empowered to acquire, hold, construct, improve, maintain and
operate, and own water systems/water works, water supply, and water distribution
systems.
C. The NPWA serves ten municipalities, including Lansdale Borough, Souderton
Borough, Franconia Township, Hatfield Township, Lower Salford Township,
Towamencin Township, Worcester Township, Skippack Township, New Britain
Township, and Hatfield Borough.
d. The NPWA provides service to over 33,000 customers.
3. The NPWA Board of Directors ("Board") is comprised of ten Members appointed by
Lansdale Borough, Souderton Borough, Franconia Township, Hatfield Township, Lower
Salford Township, Towamencin Township, Worcester Township, Skippack Township,
New Britain Township, and Hatfield Borough.
4. Kasper's duties and responsibilities as Customer Service Manager included the following:
a. Administer Cross Connection Control Policies;
b. Administer Commercial and Domestic Service Line Specification Policies;
c. Administer Commercial and Residential Fire Line Specification Policies;
Kasper, 21-034
Page 3
d. Set up all customer accounts;
e. Manage and evaluate the Meter Department and staff;
f. Notarize official company documents;
g. Monitor and address customer issues (complaints, billing, meter, backflow,
pressure problems, etc.);
h. Manage and evaluate the metering of water; and
Perform other duties as assigned.
5. As Customer Service Manager, Kasper approved purchase orders and requisitions for his
department, including the purchase of water meters.
6. Kasper was considered part of the NPWA management team and attended weekly
management meetings to provide updates regarding the Customer Service Department.
7. Kasper directly reported to NPWA Finance Director Dale Reichenbach ("Reichenbach")
and NPWA Chief Administrative Officer Maryann Regan ("Regan").
a. Reichenbach retired in January 2020, and Kasper then reported to Regan after the
NPWA restructured its management.
8. Kasper's Internal Revenue Service W-2 Wage and Tax Statements reflect that he earned
the following income as Customer Service Manager from 2017 through 2020.
a. 2017 - $81,883.50.
b. 2018 - $84,700.12.
C. 2019 - $87,356.52.
d. 2020 - $91,147.92.
9. Kasper earned $2,823.72 as a part-time NPWA employee from January 2021 until April
2021.
THE FOLLOWING FINDINGS RELATE TO KASPER'S RECOMMENDATION TO REPLACE
13,000 NPWA RESIDENTIAL WATER METERS WITH NEPTUNE WATER METERS
SUPPLIED BY RIO SUPPLY, INC.
10. In late 2018, Kasper participated in discussions with Reichenbach and NPWA Executive
Director Anthony Bellitto ("Bellitto") regarding the need to replace 13,000 NPWA
residential water meters.
Kasper, 21-034
Page 4
a. The NPWA previously used Sensus water meters supplied by Core and Main.
b. The existing Sensus water meters were over twenty years old.
C. Under the America Water Works Association ("AWWA") guidelines, mechanical
meters were recommended to be replaced or tested every twenty years.
d. The residential water meters could not be tested and reinstalled due to the Safe
Drinking Water Act ("SDWA") low lead regulations.
11. Kasper favored replacing the existing Sensus water meters with Neptune water meters
supplied by RIO Supply, Inc. (100 Allied Parkway Sicklerville, New Jersey).
a. Kasper favored Neptune water meters over Sensus water meters because Neptune
water meters are made of brass, they are easier to install, and they did not require a
battery to operate.
b. Kasper was part of the decision -making process to replace the Sensus water meters
with Neptune water meters from RIO Supply, Inc. as the Customer Service
Manager.
I. Kasper was relied upon to provide water meter product information and
specifications.
12. RIO Supply, Inc. was the only vendor considered by Kasper to provide the Neptune water
meters because it was the only supplier through COSTARS in southeast Pennsylvania.
a. Kasper did not solicit any estimates or bids from any other water meter companies
because there were no other available suppliers.
13. RIO Supply, Inc. is the only supplier of Neptune water meters through COSTARS in
eastern Pennsylvania.
a. COSTARS is the Commonwealth of Pennsylvania's cooperative purchasing
program and serves as a conduit through which registered eligible local public
procurement units (LPPUs) and state affiliated entities (together "Members") are
able to leverage contracts established by the Pennsylvania Department of General
Services to cost effectively and efficiently identify suppliers with whom to do
business.
b. The COSTARS contract number associated with the entity RIO Supply, Inc. is 016-
022.
1. Contract 016-022 was developed for water and wastewater treatment plants
for components, equipment, and services under the COSTARS program.
Kasper, 21-034
Page 5
C. RIO Supply, Inc. services areas in Adams, Berks, Bradford, Bucks, Carbon,
Chester, Columbia, Dauphin, Delaware, Juniata, Lackawanna, Lancaster, Lebanon,
Lehigh, Monroe, Montgomery, Montour, Northampton, Northumberland, Perry,
Philadelphia, Pike, Schuylkill, Snyder, Sullivan, Susquehanna, Union, Wayne,
Wyoming, and York Counties.
d. Product categories listed in COSTARS contract 016-22 for RIO Supply, Inc.
include backflow prevention, leak detections equipment, and meters.
e. Manufacturers offered by RIO Supply, Inc. include Nord Meter Box Company and
Neptune Technology Group, Inc. ("Neptune Technology Group") meters.
14. Neptune water meters are manufactured by Neptune Technology Group.
a. Neptune Technology Group is headquartered in Tallassee, Alabama.
b. Neptune Technology Group is a technology company serving more than 4,000
water utilities across North America.
C. Neptune Technology Group manufactures Neptune water meters for both
commercial and residential use.
15. RIO Supply, Inc. is one of Neptune Technology Group's "first level one" distributors of
Neptune water meters.
16. RIO Supply, Inc. worked with Neptune Technology Group Territory Manager Al Crocetti
("Crocetti") in relation to sales and distribution in eastern Pennsylvania and New Jersey.
17. RIO Supply, Inc, was approved for incorporation with the Pennsylvania Department of
State Bureau of Corporations and Charitable Organizations on August 7, 2006, under the
entity name, "RIO Supply, Inc, of PA."
18. Neptune Technology Group was approved for incorporation with the Pennsylvania
Department of State Bureau of Corporations and Charitable Organizations on January 15,
2002.
19. RIO Supply, Inc. was a vendor of the NPWA since 2006, prior to Kasper's hiring as
Customer Service Manager, although the meters Kasper sought to replace were made by
Sensus and purchased from Core and Main.
20. The chart below reflects purchases made from RIO Supply, Inc. by the NPWA prior to
Kasper's employment with the NPWA.
Vendor
Date
Payer
Amount
RIO Su l , Inc.
10/18/2006
NPWA
$4,763.65
RIO Supply, Inc.
12/13/2006
NPWA
$1,278.00
Kasper, 21-034
Page 6
RIO Supply, Inc.
2/7/2007
NPWA
$300.00
RIO Supply, Inc.
4/5/2007
NPWA
$432,00
RIO Supply, Inc.
4/11/2007
NPWA
$858.20
RIO Supply, Inc,
12120/2007
NPWA
$4,518.00
RIO Supply, Inc.
6/11/2008
NPWA
$497.32
RIO Supply, Inc.
6/19/2009
NPWA
$7,303.44
RIO Supply, Inc.
8/27/2008
NPWA
$5,431.75
RIO Supply, Inc.
10/30/2008
NPWA
$1,590.93
RIO Suppjy, Inc.
5/20/2009
NPWA
$699.85
RIO Supply, Inc.
5/27/2009
NPWA
$98.65
RIO Supply, Inc.
6/4/2009
NPWA
$7,249.56
RIO Supply, Inc.
7/15/2009
NPWA
$743.01
RIO Supply, Inc.
8/12/2009
NPWA
$2,004.30
RIO Supply, Inc.
12/16/2009
NPWA
$860.50
RIO Supply, Inc.
9/18/2010
NPWA
$2,419.56
RIO Supplyjnc.
10/13/2010
NPWA
$32.83
RIO Supply, Inc.
2/23/20I 1
NPWA
$1,618.80
RIO Supply, Inc.
4/27/2011
NPWA
$465.00
RIO Supply, Inc.
10/12/2011
NPWA
$5,981.75
RIO Supply, Inc.
11/23/2011
NPWA
$1,028.00
RIO Supply, Inc.
10/4/2012
NPWA
$10,188.00
RIO Supply, Inc.
6/12/2013
NPWA
$8,128.80
RIO Supply Inc.
8/21/2013
NPWA
$3,502.00
RIO Supply,Inc.
10/9/2013
NPWA
$4,145,40
RIO Supply, Inc.
12/18/2013
NPWA
$1,751.00
RIO Supply, Inc.
3/5/2014
NPWA
$1,788.40
RIO Supply, Inc.
6/18/2014
NPWA
$894.20
RIO Supply, Inc.
8/13/2014
NPWA
$4,283.65
RIO Supply, Inc.
10/22/2014
NPWA
$1,788.40
RIO Supply, Inc.
11/12/2014
NPWA
$4,960.00
RIO Supply, Inc.
12/10/2014
NPWA
$1,788.40
RIO Supply, Inc.
3/18/2015
NPWA
$1,020.60
Total
$94,403.95
21. The chart below reflects payments made to RIO Supply, Inc. froam. April 2015 until April
2021, the same period Kasper was employed with the NPWA.
Vendor
Date
Payer
Amount
Notes
RIO Supp1yjnc.
5/13/2015
NPWA
$1,877.61
*Kasper began employment 4/27/15
RIO Supply, Inc.
6/17/2015
NPWA
$1,480.00
RIO Supply, Inc.
7/1/2015
NPWA
$1,854.60
Kasper, 21-034
Page 7
Rio Supply, Inc.
7/1512015
NPWA
$2,960.00
RIO Supply, Inc.
8/19/2015
NPWA
$11,004.40
RIO Supply, Inc.
11/5/2015
NPWA
$4,500.00
RIO Supply, Inc.
11/18/2015
NPWA
$1,950.00
RIO Supply, Inc.
12/2/2015
NPWA
$20,909.30
RIO Supply, Inc.
12/9/2015
NPWA
$1,239.80
RIO Supply, Inc.
2/25/2016
NPWA
$12,664.30
RIO Supply, Inc.
3/16/2016
NPWA
$12,660.00
RIO Supply, Inc.
6/8/2016
NPWA
$15,246.60
RIO Supply, Inc.
9/28/2016
NPWA
$12,660.00
RIO Supply, Inc.
10/19/2016
NPWA
$6,922.30
RIO Supply, Inc.
10/26/2016
NPWA
$9,200.00
RIO Supply, Inc.
1/26/2017
NPWA
$4,950.00
RIO Supply, Inc.
2/15/2017
NPWA
$3,461.65
RIO Supply, Inc.
3/22/2017
NPWA
$8,250.00
RIO Supply, Inc.
3/29/2017
NPWA
$748.00
RIO Supply, Inc.
5/10/2017
NPWA
$16,330.00
RIO Supply, Inc.
7/6/2017
NPWA
$23,982.52
RIO Su 1 , Inc.
7/19/2017
NPWA
$109,00
RIO Supply, Inc.
9/20/2017
NPWA
$7,042.30
RIO Supply, Inc.
12/13/2017
NPWA
$32,660.00
RIO Supply, Inc.
2/21/2018
NPWA
$.6,556.00
RIO Supply, Inc.
3/8/2018
NPWA
$1,593.00
RIO Supply, Inc.
4/11/2018
NPWA
$16,500.00
RIO Supply, Inc.
4/25/2018
NPWA
$53,281.25
RIO Supply, Inc.
7/11/2018
NPWA
$4.1,250.00
RIO Supply, Inc.
9/6/2018
NPWA
$20,300,00
RIO Supply, Inc.
9/12/2018
NPWA
$13,062.50
RIO Supply, Inc.
10/3/2018
NPWA
$29,187.50
RIO Supply, Inc,
10/17/2018
NPWA
$4,085.00
RIO Supply, Inc.
12/12/2018
NPWA
$328.60
RIO Supply, Inc.
12/20/2018
NPWA
$13,182.50
RIO Supply, Inc.
1/23/2019
NPWA
$28,238.75
RIO Supply, Inc.
2/13/2019
NPWA
$45,095.39
RIO Supply,Inc.
3/6/2019
NPWA
$18,219.75
RIO Supply, Inc.
4/3/2019
NPWA
$19,918.50
RIO Supply, Inc.
5/30/2019
NPWA
$64,419.00
RIO Supply, Inc.
7/3/2019
NPWA
$22,000.00
RIO Supply, Inc.
9/3/2019
NPWA
$24,859.52
RIO Supply, Inc.
12/4/2019
NPWA
$48,782.50
RIO Supply, Inc.
12/31/2019
NPWA
$13,800.00
Kasper, 21-034
Page 8
Rio Supply, Inc.
12/31/2019
NPWA
$18,326.00
RIO Supply,
3/4/2020
NPWA
$71,820.00
RIO Supply, Inc.
3/19/2020
NPWA
$153,486.05
RIO Supply, Inc.
4/2/2020
NPWA
$301.64
RIO Supply, Inc.
4/16/2020
NPWA
$8,947.20
RIO Supply, Inc.
5/7/2020
NPWA
$5,758.14
RIO Supply, Inc.
5/28/2020
NPWA
$1,442.87
RIO Supply, Inc.
6/11/2020
NPWA
$8,813.71.
RIO Supply, Inc.
8/13/2020
NPWA
$91,477.48
RIO Supply, Inc.
10/1/2020
NPWA
$272,550.00
*Water meter project
RIO Supply, Inc.
10/15/2020
NPWA
$272,550.00
*Water meter project
RIO Supply, Inc.
12/23/2020
NPWA
$43,608.00
RIO Supply,Inc,
12/31/2020
NPWA
$129,076.08
*Partial Water meter project
RIO Supply, Inc.
2/25/2021
NPWA
$16,653.54
*Part-time Authority employee
RIO Supply, Inc.
3/3/2021
NPWA
$80,967.34
RIO Supply, Inc.
3/18/2021
NPWA
$218,040.00
*Water meter project
RIO Supply,- Inc.
4/29/2021
NPWA
$157,623.25
*Water meter project
Total
$2 249,662.44
*Kasper ended his employment
4/30/21
22. Email records reflect that Kasper began to obtain quotes for the replacement water meters
from RIO Supply, Inc. Territorial Sales Manager Carl Scillia ("Scillia") on February 4,
2019.
a. Kasper was the point of contact at the NPWA for the water meter replacement
project.
b. Kasper worked directly with Scillia to obtain quotes, proposals, product
information, and other information related to the water meter replacement project.
C. Kasper emailed Scillia on February 4, 2019, using his NPWA address, "Please
provide 2019 pricing for the follow meters: 5/8" T-10 5/8" T-10 TC I" T-10 1" T-
10 TC 1" MACH 10 1" MACH 10 TC 1 1/2" MACH 10 2" MACH 10 4" HPP 4"
PIPT 6" HPP 8" HPP
Thank you"
d. Scillia replied to Kasper on February 6, 2019, "Bill This is everything on your list
up to 2 inch I'm waiting for Neptune to get me the EPDXY Coated Protectus
Pricing. Once received I'll add to this quote and resend Thanks"
C. Scillia included an attachment in his February 6, 2019, email to Kasper that
included the purchase price per water meter.
Kasper, 2 I -034
Page 9
Scillia detailed in his proposal that the cost per Neptune 5/8" T-10 TC water
meter was $100.98.
2. The Neptune 5/8" T-10 TC water meters were later purchased by the NPWA
as part of the water meter replacement project.
23. On September 4, 2019, following a lunch meeting with Kasper, Scillia emailed Kasper a
quote for the purchase and installation of 5,000 Neptune 5/8" TC water meters.
a. Scillia provided a quote of $554,700 to purchase 5,000 Neptune water meters and
$445,000 for the installation of 5,000 Neptune water meters.
b. Scillia emailed Kasper the quote for his "budget."
24. As Customer Service Manager, Kasper requested approval for projects and purchases for
the annual budget.
a. Kasper annually submitted a Capital Asset Request Form to Reichenbach and
NPWA Chief Financial Officer Ami Tarburton.
b. Kasper submitted the Capital Asset Request Form each September for the NPWA
Engineering Committee to review and consider for budget allocation.
The NPWA Engineering Committee is comprised of four NPWA Board
Members.
2. The Engineering Committee convenes in September to review and
recommend capital projects for the upcoming year's budget.
25. In September 2019, Kasper submitted a Capital Asset Request Form to Reichenbach.
a. The Capital Asset Request Form included "Residential Bulk Meter Change" for the
Metering Department.
b. Under part 1A, "Description of Proposed Project and Estimated Costs," Kasper
requested to change 5,000 aged 5/8 water meters.
c. Under part 113, "Estimated Savings or Benefits from Proposed Project," Kasper
detailed, "In 2020 NPWA will have nearly 10,000 meters that will reach the 20 year
mark. AWWA guidelines dictate that mechanical meters shall be replaced or tested
every 20 years. Due to low lead regulations, these meters cannot simply be tested
and returned to service. To comply with the SDWA and AWWA, these meters must
be changed. Will change 13,000 over 3 years to come into compliance."
1. The above information was included in Regan's memorandum
recommending the contract with RIO Supply, Inc. to the NPWA Board on
Kasper, 2I-034
Page 10
August 24, 2020.
d. At that time, Kasper estimated that the cost to replace 5,000 water meters would be
$1,050,000.
26. Kasper provided Reichenbach with quotes and product information pertaining to the water
meter project for Reichenbach's presentation before the September 24, 2019, Engineering
Committee meeting.
a. Kasper was not present for the presentation before the Engineering Committee.
27. During the September 24, 2019, Engineering Committee meeting, the Engineering
Committee recommended the approval of $1,650,000 for the water meter replacement
project and forwarded the capital budget to the Finance Committee for review.
28. On October 22, 2019, Scillia emailed Kasper draft copies of a work agreement, meter
replacement documentation, installation specifications, and the RIO Supply, Inc.
COSTARS agreement. The statement of work provided to Kasper included the purchase
and installation of 13,000 water meters over a three-year period.
a. Scillia wrote, "Bill This is obviously draft material, but begins to paint a picture.
The work agreement word document is where you start. The rest is supporting
documentation. Also there is obviously no established pricing so that will be added
later, as well as start end dates. Take a look and let me know what you think. Maybe
we could get together next week. Lastly, the spec sheet shows Procoder but we will
provide the ecoder to meter Thanks"
29. On November 19, 2019, the Finance Committee met and reviewed both the capital budget
and operational budget.
a. The Finance Committee is comprised of four NPWA Board Members.
1. The Finance Committee reviews both the capital budget and operational
budget and recommends both budgets to the entire NPWA Board.
30. During the November 19, 2019, Finance Committee meeting, the Finance Committee
recommended the adoption of both the 2020 capital budget and the 2020 operational
budget.
a. The 2020 capital budget included $1,650,000 allocated for the water meter
replacement project.
b. Kasper was not present for the meeting.
31. During the November 26, 2019, NPWA Board meeting, the 2020 calendar year capital and
operational budgets were approved unanimously by the NPWA Board.
Kasper, 21-034
Page 11
a. Kasper was not present for the November 26, 2019, NPWA Board meeting.
32. After the water meter replacement project was added to the 2020 capital budget, Scillia
emailed Kasper a quote on December 11, 2019, for the purchase and installation of 5,000
Neptune 5/9" T-10 residential water meters, 5,000 TC meter wire, I Mach 10 CF Res Fire
Service meter, I M10 CF Meter, and 2 M10 Meters.
a. The quoted amount provided to Kasper was $986,932.85.
b. Kasper replied to Scillia on December 12, 2019, "Thanks. 2 things... For the 5,000
meters, they can be inside sets. For the rest, they need to be pit sets. The 5,000 are
priced higher than the others??
Thanks, Bill"
C. The quote provided by Scillia pertained to replacing the first 5,000 water meters.
1. The plan was to replace 5,000 water meters in 2020, 5,000 water meters in
2021, and 3,000 water meters in 2022.
2. The project was planned over three years.
33. Between January 2020 and August 2020, Scillia and Kasper communicated regularly
regarding the project.
34. On January 21, 2020, Kasper emailed Scillia to obtain an updated quote for the water meter
replacement project that included one 1" TC pit meter and one 1" T10 wired pit. The
additional items requested by Kasper were added to the quote provided by Scillia on
December 11, 2019.
a. Scillia replied to Kasper on January 21, 2020, and included an attachment of an
updated price quote that included the purchase of 5,000 Neptune residential T-10
water meters, 500 residential T-10 bottom cap option water meters, the installation
of 5,000 water meters, lmach 10 fire service meter, I cf meter flg, 2 M10 meter
flg, 2xl7 M10 meter fig cf, I" Tc feet pro -coder pit meter, and 1" c feet pro -coder
T10 pit meter.
b. The updated price quote for the water meter replacement project provided to Kasper
was $1,047,436.36. The quote replaced the quote provided by Scillia on September
4, 2019.
35. On February 17, 2020, Scillia emailed Kasper an updated quote for the water meter
replacement project.
a. Kasper requested that additional water teeters be added to the original quote,
including one 2"x10" FL Mach 10 standalone cubic feet meter, one 2"x10" FL
Kasper, 21-034
Page 12
Mach 10 Touch Coupler, 3" Mach 10 stand alone c feet 12" laylength, one 3" Mach
10 Touch coupler c feet 12" laylength, one 4" mach 10 stand alone c feet 14"
laylength, one 4" Mach 10 Touch Coupler C feet 14" laylength, one 6" Mach 10
Stand Alone.
b. The additions requested by Kasper increased the quote for the project to
$1,075,073.68.
36. On March 3, 2020, Scillia emailed Kasper an updated estimate for the water meter
replacement project.
a. The estimate increased the project cost to $1,082,175.20.
37. On June 9, 2020, Scillia emailed Kasper an attached updated draft of the "NPWA 2020
Meter Change Project Agreement."
a. Scillia included a draft of the statement of work agreement for the replacement and
installation of 13,000 residential water meters.
b. The agreement outlined the scope of work, contractor's responsibilities, materials
supplied by owner, method of construction, reporting requirements, and the
quantity and payment.
C. The "quantity and payment" portion of the contract detailed, "The quantity of water
meter installations for which payment will be made will be by the unit price of the
installation type and size shown in the proposal."
d. The proposal was provided to Kasper by Scillia in a separate email and attached
document on March 3, 2020.
1. The updated cost of the project was $1,082,175.20.
38. On June 10, 2020, Kasper emailed Regan the Scope of Work draft.
a. Kasper informed Regan that he and David Busch (Financial Consultant for NPWA)
reviewed the Scope of Work provided by RIO Supply, Inc.
b. Kasper wrote, "Sorry I meant to attach this to the last email. For the Scope of Work,
David Busch and I reviewed it and tightened it up to fit NPWA's needs and
expectation. I reviewed the Work Agreement, but didn't find anything that needed
to be changed. Please review when you have a chance. Thanks, Bill"
THE FOLLOWING FINDINGS DETAIL KASPER'S EMPLOYMENT INTEREST WITH
RIO SUPPLY, INC. AND THE SUBSEQUENT APPROVAL OF THE WATER METER
REPLACEMENT PROJECT.
Kasper, 21-034
Page 13
39. On June 15, 2020, Kasper was invited to play golf at the Mt. Airy Golf Course (Mt. Pocono,
Pennsylvania) by Scillia and RIO Supply, Inc. Vice President Barry Emens ("Emens").
a. Kasper was invited by Scillia and Emens six days after he received the statement
of work agreement for the water meter replacement project.
b. Scillia paid $50.00 for Kasper to play eighteen holes of golf at the Mt. Airy Golf
Course.
C. Kasper and Scillia often played golf together with Crocetti.
40. Following golf on June 15, 2020, Kasper was invited to have dinner with Emens, Scillia,
and Crocetti.
a. During the June 15, 2020, dinner meeting, Kasper informed Emens that he was
interested in working for RIO Supply, Inc. as a Territorial Sales Manager.
1. The dinner included cocktails, beers, and appetizers totaling $280.29.
2. Emens paid for Kasper's dinner and drinks.
b. Kasper informed Emens that he was unhappy with his current supervisor, Regan.
C. Kasper agreed to send Emens a copy of his resumd.
41. The water meter replacement contract with RIO Supply, Inc. had not been approved by the
NPWA Board when Kasper initiated conversations regarding employment with RIO
Supply, Inc.
a. Kasper, as Customer Service Manager, was fully aware that RIO Supply, Inc. was
the only vendor considered for the water meter replacement project.
b. Kasper never recused himself from the water meter replacement project after
expressing his interest in employment with RIO Supply, Inc., a vendor of the
NPWA,
C. Kasper failed to notify Regan or NPWA Executive Director Bellitto that he had
employment interest with RIO Supply, Inc., a vendor of the NPWA.
42. In addition to golf and dinner, Kasper was provided lodging by Emens and RIO Supply,
Inc., at the Fairfield Inn by Marriot (294 Frantz Road, Stroudsburg, PA 18360) from June
15-16, 2020, valued at $97.01.
43. On June 16, 2020, Emens paid for Kasper and Scillia's lunch at the Halfway House (100
Shawnee Inn and Golf Resort, Delaware, Pennsylvania), valued at $32.44.
Ka� sper, 21-034
Page 14
44. Between June 15-16, 2020, Kasper received a total of $227.89 in lodging and hospitality
from Emens, Scillia, and RIO Supply, Inc.
a. The purpose of the Mt. Pocono outing was to discuss Kasper's future employment
with RIO Supply, Inc.
45. Two days after visiting with Emens and Scillia, on June 18, 2020, Kasper emailed Emens
from his personal email to thank him for the hospitality and attached his professional
resume.
a. Kasper informed Emens that if he had any questions regarding his prior positions
or points to let him know.
b. Kasper wrote, "Barry, Thank you again for taking the time to meet with me as well
as the hospitality and such earlier this week. As you will see in my attached resume,
my 21 year in the water business has been quite diverse. If you would like more
information on any of the positions or points please let me know.
Regards, Bill"
46. Kasper's rdsumd included his residential address, his phone number, and his personal
email.
a. Kasper listed his employment with the NPWA (4/2015-Current) as Customer
Service Manager and included the following responsibilities:
I . Oversee daily operations of both Meters and Customer Service Departments
I 1 employees, 35,000 connections;
2. Analyze multiple brands of water meters, reading systems, and related
accessories;
3. Ensure satisfaction of both internal and external customers;
4. Instituted and maintained Cross Connection Control Program; and
5. Make recommendations to Board of Directors for policy and local rule
changes.
b. Kasper listed other experience on his resume as Operations Manager Downingtown
Municipal Water Authority (10/2013-4/2015), Pennsylvania American Water
(6/1999-10/2013), Upper Providence Township Deputy Emergency Management
Coordinator (1/2013-2/2015), and Black Rock Volunteer Fire Company (05/1989-
Present).
47. Kasper had no prior experience in selling water meters or in the sales business.
Kasper, 21-034
Page 15
a. Kasper had no education or training in sales.
48. Phone records reflect that on June 19, 2020, one day after Kasper submitted his resume to
Emens, he had an eight minute phone call with Emens.
a. Kasper's personal cell phone number was identified as [redacted].
b. Emens' personal cell phone number was identified as [redacted].
C. Between June 19, 2020, and August 11, 2020, Kasper spoke to Emens four times.
49. The chart below reflects phone communication between Kasper and Emens from June 2020
until December 2020.
Day of
Call
Date
Week
Time
Kasper
Emens
Duration
Notes
[redacted]
[redacted]
*Before
6/19/2020
Fri
4:11 p.m.
8 min.
Contract
[redacted]
[redacted]
*Before
7/16/2020
Thurs
2:25 p.m.
22 min.
Contract
[redacted]
[redacted]
*Before
7/31/2020
Fri
9:35 a.m.
69 min.
Contract
[redacted]
[redacted]
*Before
8/11/2020
Tues
1:47 p.m.
13 min.
Contract
[redacted]
[redacted]
After
12/4/2020
Fri
4:51 p.m.
16 min.
Contract
[redacted]
[redacted]
After
1.2/17/2020
Thurs
5:03 p.m.
25 min.
Contract
[redacted]
[redacted]
After
12/17/2020
Thurs
5:28 p.m.
5 min.
Contract
50. Phone records obtained reflect that Kasper and Scillia communicated regularly.
a. Kasper and Scillia had a seventeen minute phone call on June 18, 2020, the same
date that Kasper emailed his resume to Emens.
b. Kasper and Scillia often played golf together at water industry conferences and
other events.
51. The chart below illustrates telephonic communications between Kasper and Scillia from
February 4, 2019, until August 11, 2020.
Day of
Call
Date
Week
Time
Kasper
Scillia
Duration
Notes
11:06
[redacted]
[redacted]
Kasper emailed Scillia to obtain
2/4/2019
Mon
a.m.
9 min.
pricing
11:16
[redacted]
[redacted]
2/4I2019
Mon
a.m.
15 min.
11:30
[redacted]
[redacted]
2/4/2019
Mon
I a.m.
12 min.
1Ca_ __s er, 21-034
Page 16
11:01
[redacted]
[redacted]
2/14/2019
Thurs
a.m.
2 min.
9:40
[redacted]
[redacted]
2/15/2019
Fri
a.m.
13 min.
11:18
[redacted]
[redacted]
2/20/2019
Wed
a.m.
2 min.
11:52
[redacted]
[redacted]
2/22/2019
Fri
a.m.
23 min.
4:51
[redacted]
[redacted]
3/12/2019
Tues
p .m.
13 min.
8:04
[redacted]
[redacted]
4/2/2019
Tues
a.m.
3 min.
1:48
[redacted]
[redacted]
4/9/2019
Tues
p.m.
18 min.
5:56
[redacted]
[redacted]
4/15/2019
Mon
p.m.
6 min.
Played Golf Following Da
12:50
[redacted]
[redacted]
5/28/2019
Tues
p.m.
2 min.
4:11
[redacted]
[redacted.]
6/4/2019
Tues
p.m.
27 min.
12:22
[redacted]
[redacted]
6/13/2019
Thurs
p.m.
15 min.
12:01
[redacted]
[redacted]
6/17/2019
Mon
p.m.
9 min.
12:03
[redacted]
[redacted]
7/22/2019
Mon
p.m.
25 min.
8:23
[redacted]
[redacted]
7/24/2019
Wed
a.m.
5 min.
11:37
[redacted]
[redacted]
7/24/2019
Wed
a.m.
5 min.
2:34
[redacted]
[redacted]
8/9/2019
Fri
p.m.
2 min.
1:44
[redacted]
[redacted]
8/15/2019
Thurs
P.m.
15 min.
1:00
[redacted]
[redacted]
8/20/2019
Tues
P.m.
2 min.
Played Golf Following Da
11:42
[redacted]
[redacted]
8/22/2019
Thurs
a.m.
1 min.
2:03
[redacted]
[redacted]
8/22/2019
Thurs
p.m.
15 min.
5:53
[redacted]
[redacted]
8/28/2019
Wed
p.m.
9 min.
11:14
[redacted]
[redacted]
One date after Scillia emailed
9/5/2019
Thurs
a.m.
8 min.
estimate
2:45
[redacted]
[redacted]
9/23/2019
Mon
p.m.
14 min.
9:46
[redacted]
[redacted]
10/8/2019
Tues
a.m.
4 min.
9:58
[redacted]
[redacted]
Scillia emailed Kasper work
10122/2019
Tues
a.m.
15 min.
agreement
2:20
[redacted]
[redacted]
11/4/2019
Mon
p,m.
9 min.
1:59
[redacted]
[redacted]
11/12/2019
Tues
P.M.
4 rain.
Kasper, 21-034
Page 17
12:36
12/5/2019
Thurs
p.m,
610 xxx-8195
215 xxx-8808
28 min.
1:50
[redacted]
[redacted]
12/6/2019
Fri
p.m.
5 min.
12:15
[redacted]
[redacted]
12/10/2019
Tues
P.m,
17 min.
12:53
[redacted]
[redacted]
Scillia emailed Kasper updated
12/11/2019
Wed
p.m.
27 min.
estimate
11:14
[redacted]
[redacted]
12/17/2019
Tues
a.m.
9 min.
10:46
[redacted]
[redacted]
1/3/2020
Fri
a.m.
15 min.
1:06
[redacted]
[redacted]
1/6/2020
Mon
p.m.
4 min.
9:48
[redacted]
[redacted]
1/10/2020
Fri
a.m.
27 min.
11:11
[redacted]
[redacted]
1/13/2020
Mon
a.m.
11 min.
7:24
[redacted]
[redacted]
1/14/2020
Tues
P,m.
2 min.
10:33
[redacted]
[redacted]
1/15/2020
Wed
a.m.
20 min.
1:15
[redacted]
[redacted]
1/16/2020
Thurs
p.m.
24 min.
10!08
[redacted]
[redacted]
1/27/2020
Mon
a.m.
2 min.
10:24
[redacted]
[redacted]
1/31/2020
Fri
a.m.
23 min.
11:05
[redacted]
[redacted]
2/10/2020
Mon
a.m.
6 min.
10:25
[redacted]
[redacted]
2/13/2020
Thurs
a.m.
16 min.
10:41
[redacted]
[redacted]
2/13/2020
Thurs
a.m.
5 min.
1:47
[redacted]
[redacted]
3/2/2020
Mon
P.M.
15 min.
5:58
[redacted]
[redacted]
3/5/2020
Thurs
P.M.
16 min.
1:48
[redacted]
[redacted]
3/9/2020
Mon
p.m.
8 min.
1:58
[redacted]
[redacted]
3/10/2020
Tues
p.m.
14 min.
10:33
[redacted]
[redacted]
3/20/2020
Fri
a.m.
34 min.
12:04
[redacted]
[redacted]
3/27/2020
Fri
p.m.
18 min.
1:34
[redacted]
[redacted]
4/16/2020
Thurs
p.m.
30 min.
11:53
[redacted]
[redacted]
4/27/2020
Mon
a.m.
34 min.
12:15
[redacted]
[redacted]
5/1/2020
Fri
p.m.
3 min.
11:14
[redacted]
[redacted]
5/8/2020
Fri
a.m.
30 min.
Kasper, 21-034
Page 18
3:11
[redacted]
[redacted]
5/28/2020
Thurs
p.m.
17 min.
8:28
[redacted]
[redacted]
6/3/2020
Wed
a.m.
30 min.
10:31
[redacted]
[redacted]
Scillia emailed Kasper updated
6/9/2020
Tues
a.m.
7 min,
agreement
1 0: 27
[redacted]
[redacted]
6/15/2020
Mon
a.m.
1 min.
Played Golf/Dinner with Emens
3:21
[redacted]
[redacted]
6/17/2020
Wed
p.m.
2 min.
11:37
[redacted]
[redacted]
6/18/2020
Thurs
a.m.
17 min.
I Kasper Submitted R6sum6
12:22
[redacted]
[redacted]
6/25/2020
Thurs
p.m.
15 min.
12:35
[redacted]
[redacted]
7/1/2020
Wed
p.m.
I min.
9:41
[redacted]
[redacted]
7/2/2020
Thurs
a.m.
I min.
1:54
[redacted]
[redacted]
7/2/2020
Thurs
p.m.
17 min.
12:08
[redacted]
[redacted]
7/9/2020
Thurs
P.M.
I min.
6:32
[redacted]
[redacted]
7/23/2020
Thurs
p,m.
37 min.
8:24
[redacted]
[redacted]
7/30/2020
Thurs
a.m.
45 min.
5:19
[redacted]
[redacted]
7/31/2020
Fri
PJTL
2 min.
10:32
[redacted]
[redacted]
8/6/2020
Thurs
a.m.
55 min.
9:53
[redacted]
[redacted]
Kasper emailed Scillia revised work
8/10/2020
Mon
a.m.
10 min.
agreement
8:51
[redacted]
[redacted]
8/11/2020
Tues
a.m.
8 min.
52. Kasper continued to work with Scillia and RIO Supply, Inc. on the water meter• replacement
project from June 2020 until August 2020.
53, On August 3, 2020, Kasper emailed Scillia an attached NPWA Purchase Order for the
water meter replacement project.
a. Kasper wrote, "These should be Procoder TCs. Delivery week of September 21 st
or 28th would be perfect. Thank you!"
b. Kasper's attached Purchase Order #14988 included the purchase of 5,000 Neptune
residential water meters at $109.02 per meter, for a total of $545,100.00.
c. The first Purchase Order for the project was dated July 31, 2020.
d. Kasper ordered and approved the Purchase Order as Customer Service Manager
prior to NPWA Board approval of the contract with RIO Supply, Inc.
Ka spec, 21-034
Page 19
54. On August 10, 2020, Kasper emailed Scillia a revised "RIO Work Agreement" and
"NPWA 2020 Meter Change Project Agreement."
a. Kasper informed Scillia in the email that the document titled "NPWA 2020 Meter
Change Project Agreement final" had many additions and changes regarding the
expectations of the installation contractor.
b. Kasper informed Scillia that the NPWA Solicitor and management reviewed the
"RIO Work Agreement" and asked to have additional language added to the
agreement.
C. Kasper informed Scillia that he should return the signed copy of the agreement to
him and NPWA Chief Administrative Officer Regan.
d. Kasper wrote, "Carl, Good afternoon. Attached are the documents for the proposed
meter change project. The Word document, titled "NPWA 2020 Meter Change
Project Agreement final", has many additions and changes as to what is expected
of the installation contractor. While I know we spoke about many of these, please
take a look and let me know if clarification is needed on any of these items. As far
as the "Rio WORK AGREEMENT", NPWA solicitor and management reviewed
and would like a few things added prior to signing. Those items are listed below.
If a party breaches any material terms of this Agreement, the non -breaching party
may terminate the Agreement. Prior to termination, the non -breaching party shall
issue a written notice of default which provides fifteen (15) days for the breaching
party to cure its default.
The Agreement forms the entire and complete statement of the obligations between
the Parties as to the subject matter hereof. The terms of the Agreement may not be
altered or amended except by a written document that the Parties sign This
Agreement is binding upon, and will inure to the benefit of, the Parties to this
Agreement and their respective successors and/or assigns.
All matters or claims arising out of, related to, or in connection with the Agreement
or the relationship between the Parties will be governed by and construed in
accordance with the laws of the Commonwealth of Pennsylvania without giving
effect to the principles of conflicts of laws of such state.
A waiver of any breach or default by any party in the performance by that party of
its obligations hereunder is not a waiver of any other breach or default in the
performance by that party of the same or any other obligations of that party
hereunder. Failure on the part of a party to complain of any act of any party or to
declare any party in default hereunder, irrespective of how long that failure
continues, does not constitute a waiver by that party of its rights with respect to that
default until the applicable statute of limitations period has run.
Kasper, 21-034
Page 20
Unless caused by the gross negligence or willful misconduct of the Client,
Contractor shall indemnify and save harmless the Client, its agents, officers,
servants or employees from any such loss, damage or other claim, including
reasonable attorney's fees, arising out of the Contractor's activities authorized by
the Agreement.
After adding these few items, please return a signed copy of the agreement to me
and Maryann Regan, who I've copied on this email. In addition, if you have any
questions prior to my return to the office (in a ferny weeks) please send them to
Maryann. As I had mentioned previously, we hope to have get this project started
in late September/early October, after my return. Thank you, Bill"
55. On August 11, 2020, Scillia emailed Kasper the revised "RIO Work Agreement," the
NPWA Agreement Signature Page, and the "NPWA 2020 Meter Change Project
Agreement."
a, Scillia wrote, "Bill Please see attached documents. Note the Work Agreement was
converted to Word for editing purposes. Also note the signed work agreement page
is attached as a pdf as a separate file Please review and advise. Thank You. We
look forward to a successful project Regards"
b. The "RIO Work Agreement" detailed that the services were to commence on
August 11, 2020, and continue through December 31, 2023. Scillia made the
changes requested by Kasper to both the "Work Agreement" and the "NPWA 2020
Meter Change Project Agreement."
56. Kasper had a thirteen minute phone call with rmens on August 11, 2020, the same date
Scillia emailed Kasper the revised Statement of Work Agreement.
57. Kasper noted in his August 10, 2020, correspondence to Scillia that he would be out of the
office for a few weeks.
a. Kasper was out several weeks following a medical procedure on August 12, 2020.
b. NPWA Chief Administrative Officer Regan communicated with Scillia to finalize
the water meter replacement contract in Kasper's absence.
58. On August 18, 2020, Regan emailed Scillia regarding the RIO Work Agreement and the
NPWA 2020 Meter Change Project.
Regan informed Scillia that Kasper would be out of the office until late September
and the project could not begin until he returned.
b. Regan informed Scillia that she wanted to get the contract approved by the NPWA
Board so Kasper would not need to wait another month after he returned.
Kasper, 21-034
Page 21.
C. Regan emailed Scillia changes that she felt were needed to the documents before
she presented them to the NPWA Board.
d. Regan was not part of the negotiation process or contract process until it was time
to present the contract before the NPWA Board in August 2020.
Kasper was responsible for obtaining price quotes, proposals, and work agreements
from RIO Supply, Inc. for the water meter replacement project.
Regan relied upon Kasper's expertise in water metering, as she had no technical
knowledge in water meters.
59. Regan emailed Scillia on August 19, 2020, regarding the price quote for the water meter
project.
a. Regan wrote, "Carl, Since I didn't get the attachment with it, I'll use the quote Bill
provided to me. I do not want to check with Bill given he's only one week out lfrom
surgery, so I'm hoping you can answer this question. Are there others in this area
that can provide the same meters, or are you the sole distributor. If the latter, how
does that work. I am preparing myself for the questions that could come at the board
meeting before they execute the document, and our Executive Director also wants
me to include the information on the cover memo I'm preparing to send out with
the Agreement. Your help is very much appreciated. Otherwise, I'll need to email
Bill, which, frankly, I'd prefer not to ask him to need to respond to anything right
now.
Thanks. Maryann"
b. Scillia replied to Regan, "Maryann, I was at the main office, and the Server was
down for maintenance which caused some complications. Now back at my office
I'm able to send all doe's. I scanned the signature page as its own, so simply add
that to the .doex attached for signature. Also attached is the quote specific to this
project. The 2nd line item was added should pit meters be needed. We are the sole
distributor, as indicated in the work agreement. Hopeful this is everything you need.
If not let me know
Thanks again"
C. Regan replied to Scillia on August 19, 2020, "Carl, I did notice that in the
Agreement. Just thought Bill had given me more detail, but I'll go with that. I do
have one more question. Why is there a difference between the attached quote and
the one you previously provided in September of 2019 (attached).
Thank you."
d. Scillia replied to Regan, "Maryann, The initial quote to Bill was a budget price. I
was able to get a better price for you hence the discount. Also line 2 was added in
the event pit meters were needed. Hope that helps
Kasper, 21-034
Page 22
Thank You"
60. Regan replied to Scillia on August 19, 2020, and requested a cost estimate to reflect the
total agreement for the purchase and installation of 13,000 water meters.
a. Regan wrote, "Carl, I need to go with the other quote for the $1 Million+ if you
anticipate that those meters may be necessary, as the board generally goes with
either a fixed price or a not to exceed price when approving an Agreement, not a
leave it completely up in the air to come back Iater price. This is supposed to be for
the 13,000 meters, not just the ones being installed this year. It should be the total
for what's in the Agreement that I'm attaching, not for "this year", which over the
over $985,000 definitely isn't. As I indicated, I do understand that pricing could
change based on what's ultimately installed, but I am not going to give our board
something that is lower than what you really anticipate the project being, so can
you just give me an estimate that really encompasses the entire job, even
recognizing that the additional may or may not be required and explain that and
that's how I'll include it in the package to the board that I need to absolutely finalize
on Thursday.
Maryann M. Regan"
b. Scillia replied, "Maryann Tomorrow morning I will re issue the estimate as follows.
12,500 inside set meters. 500 pit set meters for a total of 13,000 meters, along with
install price to match_ those quantities. If you prefer another format then just let me
know. Thank you."
61. Scillia emailed Regan on August 20, 2020, with an updated quote for the water meter
replacement project.
a. The new'price quote provided by Scillia included the purchase and installation of
13,000 Neptune water meters over three years, at a cost of $2,566,600.
62. Regan reviewed the quote provided by Scillia and replied to him on August 20, 2020 with
concerns regarding the quote increasing to 2.5 million dollars.
a. According to Regan, Kasper never informed her the total project would cost the
NPWA over 2.5 million dollars.
b. Regan wrote, "Since I cannot reach Bill, I am going to call our retired Director to
whom Bill reported when this project was presented to the board last year so he can
give me a thorough background on this with now having gotten 3 different quotes
from you now with widely ranging dollar amounts. Not once have I ever heard from
Bill that this was a $2.5Million project. Your quotes have gone from under $1
Million to now $2.5Million and I realize I asked you to include the total cost, but I
never once heard Bill indicate it was going to be this much. At this point, with 3
different quotes, not having any background on it, and Bill unavailable to discuss
it, I have to get this figured out today as I don't even know which quote to include
Kaspei, 21-034
Page 23
in the board package at this point and the Agreement won't be signed without it.
After I speak with our retired director who Bill reported to when this project was
approved, I will call you. Please provide me with a phone number and your
availability this afternoon for a conversation. I even emailed Bill but then recalled
it and indicated to him to ignore my emails because I'm just not going to do that to
him barely over a week out from surgery. He and I definitely will be discussing this
in depth, however, upon his return. Unfortunately, if I cannot resolve this, that's
also when the Agreement will be presented to the board once Bill provides me with
an explanation as to why the board should approve $lMillion more for a project
than he originally told me would be the case and for which he budgeted.
C. Regan and Scillia spoke telephonically after her email regarding the total cost of
the project and there were no follow-up emails.
63. On August 24, 2020, Scillia emailed Regan a word document listing the benefits of
purchasing Neptune water meters.
a. Kasper authored the word document that was provided to Regan.
b. Scillia sent the document to Regan one day before she would seek approval from
the NPWA Board for the contract with RIO Supply, Inc.
C. Scillia wrote, "Maryann Thank you for all your work on this. I attached a WORD
document which covers the points Bill finds favorable regarding the TIO meter. I
hope you find it helpful Any questions just let me know, and feel free to call
anytime
Thank You "
d. Scillia provided the following document to Regan:
FEATURES
NEPTUNE TIO TC METER
SENSUS IPERL
MAINCASE
BRONZE NO LEAD COMPLIANT
PLASTIC
MAINCASE WARRANTY
LIFE
15 YEARS
MEASURING ELEMENT
MECHANICAL PD
ELECTROMAGNETIC
BATTERY
NONE NEEDED
BATTERY OPERATED
DISPLAY
ANALOG
DIGITAL
FROST PROTECTION
YES
NO
e. Scillia wrote the following email to Regan:
Maryann The table above offers some quick bullet points for you. As to our
conversation Bill's preference see bullet points below:
The TIO Bronze main case is preferred to the plastic. As noted above the
warranty for the main case is lifetime.
Kaspert., 21-034
Page 24
The T10 Bronze meter offers cast iron bottom plate for frost protection
• Threads on plastic meters are easily stripped. Not an issue with T10 Bronze
• The Bronze TIO has no battery. The disc chamber which moves with the
volume of water through the meter directly displays the reading. This is very
easy to explain to a customer.
• The IPERL electromagnetic meter requires a battery to operate. Once the
battery dies the meter no longer operates and needs to be replaced. The
electromagnetic principle not as easy to explain to a customer if they
question their bill.
• The Neptune T10 TC meter is specifically designed for the SENSUS MXU
Radio transmitters in your system. As such the read from the Neptune TI0
TC meter matches the Sensus meter protocol. No additional programming
required.
I hope this will help. Thanks again for your work in Bill's absence
Carl Scillia
RIO SUPPLY
64. On August 24, 2020, Regan submitted a memorandum to the NPWA Board, recommending
that the NPWA Board approve the contract with RIO Supply, Inc. for the purchase and
installation of 13,000 Neptune residential water meters.
65. On August 25, 2020, the NPWA Board unanimously approved the $2,566,600 contract
with RIO Supply, Inc. for the purchase and installation of 13,000 Neptune water meters.
a. Kasper was not present for the meeting.
b. This was the largest ever contract between the NPWA and RIO Supply, Inc.
66. Kasper failed to disclose to Regan, NPWA Executive Director Bellitto, or Members of the
NPWA Board that he sought employment with RIO Supply, Inc. prior to the official August
25, 2020, vote to approve the contract.
67. The Statement of Work ("SOW") Agreement between RIO Supply, Inc. and the NPWA
was fully executed on August 25, 2020.
a. The period of performance outlined in the SOW Agreement was September 28,
2020, until December 31, 2022.
Kasper, 21-034
Page 25
b. The background of the SOW Agreement detailed that the work provided by RIO
Supply, Inc. was in accordance with COSTARS contract 016-22.
C. RIO Supply, Inc. is the only supplier of Neptune water meters in the "client
territory."
d. The estimate included with the SOW Agreement confirmed that the total cost of
the project was $2,566,600.
1. The total cost included the purchase and installation of 13,000 T10 Touch
Coupler Neptune water meters.
2. Lenegan Plumbing & Heating (200 West Ave Ocean City, New Jersey) was
subcontracted by RIO Supply, Inc. to complete the water meter
installations.
e. The SOW Agreement was signed by NPWA Board Chairman Paul Ziegler and RIO
Supply, Inc. Vice President Emens on August 25, 2020.
68. The first shipment of 2,500 Neptune water meters arrived at the NPWA on September 15,
2020.
a. On September 15, 2020, NPWA Accounting Supervisor Lorraine Girone
("Girone") emailed Kasper regarding a $272,550.00 invoice from RIO Supply, Inc.
for 2,500 water meters and a Purchase Order for 5,000 water meters.
I. Girone requested a response from Kasper before she signed off on a large
payment.
b. Girone wrote, "Hi Again, I have a bill for $272,550.00 for 2,500 meters from RIO.
I have a PO for 5,000 meters so I assume another bill is on its way. Would just like
to have something from you before I sign off on such a large amount."
C. Kasper replied to Girone on September 22, 2020, "Lorraine, Just a follow up... Not
sure if you were told, but the 1512,500 have come in and are ok to pay for. The 2nd
2,500 should be in this Thursday. I will let you know when they are in and ok to
pay for Thank you Bill"
d. The remaining shipment of 2,500 Neptune water meters arrived at the NPWA on
September 24, 2020.
C. Kasper approved Purchase Order 414988 on July 31, 2020, in the amount of
$545,100.00, for the purchase of 5,000 Neptune residential water meters.
1. Kasper approved the purchase order before the NPWA Board voted to
approve the $2,566,600 contract with RIO Supply, Inc.
Kasper, 21-034
Page 26
f The NPWA paid RIO Supply, Inc. $272,550.00 under check No. 133286 on
October 1, 2020, for the first 2,500 water meters.
g. The NPWA paid RIO Supply, Inc. $272,550.00 under check No. 133362 on
October 15, 2020, for the next shipment of2,500 water meters.
69. The chart below details payments made to RIO Supply, Inc. for the residential water meter
project from October 2020 until December 2021.
Vendor
Date
Payer
Amount
Reason
Rio Supply, Inc.
10/1/2020
NPWA
$272,550.00
Meter Change Proj
RIO Supply, Inc.
10/15/2020
NPWA
$272,550.00
Meter Change Proj
RIO Supply, Inc.
12/31/2020
NPWA
$81,196.08
Meter Change Proj
RIO Supply, Inc.
3/18/2021
NPWA
$218,040.00
Meter Change Proj
RIO Supply, Inc.
4/29/2021
NPWA
$91,607.42
Meter Change Pro'
RIO Supply, Inc.
5/12/2021
NPWA
$79 951.76
Meter Change Pro'
RIO Supply, Inc.
6/23/2021
NPWA
$218,040.00
Meter Change Pro'
RIO Supply, Inc.
7/14/2021
NPWA
$1 12 403.46
Meter Chan e Pro'
RIO Supply, Inc.
8/25/2021
NPWA
$218,040.00
Meter Change Proi
RIO Supply, Inc.
9/8/2021
NPWA
$106,025.92
Meter Change Pro'
RIO Supply, Inc.
9/22/2021
NPWA
$111,748.44
Meter Change Pro'
RIO Supply, Inc.
10/27/2021
NPWA
$105,390.40
Meter Change Pro'
RIO Supply, Inc.
11/3/2021
NPWA
$109,020.00
Meter Change Pro'
RIO Supply,Inc.
11/10/2021
NPWA
$109,020.00
Meter Change Pro'
RIO Supply, Inc.
12/1/2021
NPWA
$107,614.40
Meter Change Pro'
Total
$2,213,197.88
a. From October 1, 2020, until December 1, 2021, the NPWA paid RIO Supply, Inc.
$2,213,197.88 towards the $2,566,600 water meter replacement project.
1. The water meter replacement project was set to be completed during
calendar year 2022.
70. In September 2020, Kasper submitted a second NPWA Capital Asset Request Form for
he 2021 capital budget, that included the water meter replacement project.
a. Kasper submitted the Capital Asset Request Form to NPWA Chief Financial
Officer Ami Tarburton.
b. Under part IA, "Description of Proposed Project and Estimated Costs," Kasper
wrote, "Change 5,000 aged 5/8" meters by third party. Estimated cost $1,000,000."
C. Under part IB, "Estimated Savings or Benefits from Proposed Project," Kasper
wrote, "2021 is year two of project initiated in 2020. In 2020 NPWA will have
Kasper, 21-034
Page 27
nearly 10,000 meters that will reach the 20 year mark. AWWA guidelines dictate
that mechanical meters shall be replaced or tested every 20 years. Due to low lead
regulations, these meters cannot simply be tested and returned to service. To
comply with the SDWA and AWWA, these meters must be changed. Will change
13,000 over 3 years to come into compliance."
This was the same language Kasper used in his 2020 capital budget asset
request form.
71. On September 22, 2020, the NPWA Engineering Committee met to review capital projects
for consideration for the 2021 calendar year budget.
a. The 2021 calendar year budget included $2,051,000 allocated for the water meter
replacement project that had already begun in 2020.
b. The Engineering Committee recommended that the capital budget be forwarded to
the Finance Committee for consideration.
C. Kasper was not present for the meeting.
72. On November 17, 2020, the Finance Committee convened to discuss both the capital
budget and operational budget.
a. The capital budget included $2,051,000 allocated for the water meter replacement
pro j ect.
b. The Finance Committee recommended that both the capital and operational budgets
be forwarded for the entire NPWA Board to review.
C. Kasper was not present for the meeting.
73. On November 24, 2020, the NPWA Board met and approved the 2021 calendar year capital
and operational budgets that included $2,051,000 allocated for the water meter replacement
project.
a. The NPWA Board unanimously approved the 2021 capital and operational budgets.
b. Kasper never disclosed to the NPWA Board that he was hired by RIO Supply, Inc.
as a Territorial Sales Manager.
THE FOLLOWING FINDINGS PERTAIN TO KASPER'S EMPLOYMENT WITH RIO
SUPPLY, INC.
74. Kasper informed NPWA Executive Director Bellitto that he would be resigning from his
position as Customer Service Manager on November 13, 2020.
Ka__. spec, 21-034
Page 28
a. Kasper informed Bellitto that he had accepted a position as a Territorial Sales
Manager for RIO Supply, Inc.
b. Kasper requested that Bellitto keep his employment opportunity with RIO Supply,
Inc. confidential.
75. On November 17, 2020, Kasper filed for a Limited Liability Company with the
Pennsylvania Department of State Bureau of Corporations and Charitable Organizations
under the name "WK Sales & Consulting LLC."
a. Kasper is the only listed organizer for WK Sales & Consulting LLC.
b. Kasper provided his residential address on the filing,
C. The filing was effective December 1, 2020.
76. Email correspondence reflects that RIO Supply, Inc. Vice President Emens contacted
Kasper on December 2, 2020, via Kasper's personal email to request a copy of his driver's
license, an emergency contact, an email address he would be using for business
correspondence, his business name, and bank account information for direct deposits and
monthly expense reimbursements.
a. Emens wrote, "Hey Bill, hope you and your family had a nice Thanksgiving
together. When you get the opportunity in the weeks ahead can you please supply
us with the following information?
Copy or your driver's license
Your emergency contact information
Email address you would like to use for business correspondence. Maybe you have
an existing address to use or I can easily establish a RIO address if you wish.
Your business name and EIN# (If you elected to establish a LLC or S-Corp)
Your bank account information for weekly direct deposit and monthly expense
reimbursement. Bank Name, Account #, and Routing # will suffice. FYI -We can
fund a business account if you elect.
Please do not hesitate to reach out to me with questions or concerns.
Thank you, Barry"
77. On December 24, 2020, Kasper opened a TD Bank Business Convenience Plus checking
account under the name WK Sales & Consulting LLC.
a. Kasper's residential address is listed on the account signature card.
Kaspei, 21-034
Page 29
b. Kasper's signature is affixed to the account opening document as the "authorized
signature" and "authorized representative" for the account.
78. On December 24, 2020, Emens emailed an Independent Contractor Agreement to Kasper's
personal email.
a. Emens wrote, "Bill, per our discussion find our contract. Let's discuss Monday,
December 28"' when you are available. Have a Merry Christmas! Enjoy the steak,
spirits, and time with family. Excited to have you on the team! Barry"
b. Under "fees and expenses" in the agreement provided by Emens, it was detailed
that RIO Supply, Inc, would pay Kasper a "consultant fixed fee" of $88,000.
C. Kasper never signed the contract with RIO Supply, Inc.
d. Kasper and RIO Supply, Inc. had a verbal agreement for his employment as an
independent contractor that included a salary of $88,000.
79. On December 28, 2020, Kasper replied to Emens and responded to his request for
information pertaining to his employment.
a. Kasper wrote,
Barry, Below is the requested info in red. Other
questions/comments:
• I need to call my insurance guy to finalize liability and comp. Should have
that within a few days.
• My attorney is reviewing the contract, but I don't anticipate any issues.
I know that I haven't even started yet, but I have a million thoughts/ideas running
through my brain.
• How do you see my I't few days/weeks playing out?
• Am I going to do any training/ride alongs? Carl, Brian?
Will you supply business cards or should I order them?
• Customer list? Will you supply me with a target list?
I assume that I will have annual goals?
• Carl has a PMAA membership, should I get on too so that my name is in
the directory?
Kaspe►, 21 -034
Page 30
Should I get a PA Rural Water account? Same as above.
I think that's it for now, but I'm sure I'll have 100 more questions before the I 1 "
Thanks, Bill
Copy or your driver's license Attached
Your emergency contact information Wife - (same address)
Email address you would like to use for business correspondence. Maybe you have an
existing address to use or I can easily establish a RIO address if you wish. I set up this
address -[redacted] (I want to keep the business completely separate from personal
stuff) or do you think I should have a RIO address?
Your business name and EIN# (If you elected to establish a LLC or S-Carp) WK Sales
& Consulting,
Your bank account information for weekly direct deposit and monthly expense
reimbursement. Bank Name, Account #, and Routing # will suffice. FYI -We can fund
a business account if you elect. TD Bank, Routing # XXXXXX Account # XXXXX"
[redacted] .
80. On January 6, 2021, Kasper obtained liability and workers' compensation insurance from
State Farm Insurance Company.
a. Kasper was required to obtain liability and workers' compensation insurance as an
independent contractor of RIO Supply, Inc.
b. The name of the insured under policy is WK Sales & Consulting LLC.
C. The liability and workers' compensation policies were effective from January 18,
2021, to January 18, 2022.
81. Kasper began his employment as a private contractor with RIO Supply, Inc. on January 11,
2021, less than six months after the $2,566,600 water meter replacement project was
approved by the NPWA Board.
a. Kasper replaced RIO Supply, Inc. Territorial Sales Manager David Linden.
Linden was terminated by Emens for underperforming as a sales
representative.
82. Kasper could not be hired by RIO Supply, Inc. until January 11, 2021, because Linden's
contract did not expire until January 1, 2021.
Kasper, 21-034
Page 31
83. Kasper was assigned the northeast Pennsylvania sales territory, the same territory as
Linden.
84. Kasper is listed on the RIO Supply, Inc. website, riosupply.com, under "Sales Team" as a
Pennsylvania Sales Manager.
a. Kasper's email address is listed on the company website.
b. Kasper's phone number is listed on the company website.
I . Kasper's number listed on the company website is his personal cell phone
number.
85. Kasper provided a business card to the Pennsylvania Rural Water Association.
a. The business card lists Kasper as a Territorial Sales Manager for RIO Supply, Inc.
b. Kasper's email address is listed on the business card.
C. Kasper's personal cell phone number is listed on the business card.
d. Kasper's business card lists Neptune and Ford as products sold by RIO Supply, Inc.
86. Kasper received a "fixed consultant fee" of $89,000 from RIO Supply, Inc.
a. Kasper received the salary because he had not established a client base as a sales
representative.
b. Kasper received a weekly salary payment of $1,692.31 from RIO Supply, Inc.
1. $1,692.31 x 52 (weeks) = $88,000.12
c. Kasper was the only RIO Supply, Inc. Territorial Sales Manager who received a
weekly salary.
I . Other Territorial Sales Managers received commission payments only.
97. In addition to a weekly salary of $1,692.31, Kasper received commission payments from
RIO Supply, Inc. for sales contracts.
a. Kasper and other RIO Supply, Inc. Territorial Sales Managers receive a 12%
commission for sales contracts.
b. Commission, shipping product, and general insurance risks are rolled into a sales
contract as a "house Vig."
88. Kasper was reimbursed by RIO Supply, Inc, for business -related expenses including tolls,
1CaspeI, 21-034
Page 32
meals, lodging, golf outing sponsorship, and organization dues.
89. The chart below reflects payments that Kasper received from RIO Supply, Inc. during the
2021 calendar year.
Date
Amount
Payer
Payee...
1/15/2021
$1,692.31
RIO Supply, Inc.
Kas ea
1 /22/2021
$1,692.31
RIO Supply, Inc.
Kasper
1/29/2021
$1,692.31
RIO Supply, Inc.
Kasper
2/4/2021
$564.76
RIO Sup 1 , Inc.
Kasper
2/5/2021
$1,692.31
RID.Supply, Inc.
Kasper
2/12/2021
$1,692.31
RIO Supply, Inc.
Kasper
2/19/2021
$1,692.31
RIO Supply, Inc.
Kasper
2/26/2021
$1,692.31
RIO Supply, Inc.
Kasper
3/3/2021
$819.78
RIO Supply, Inc.
Kasper
3/5/2021
$1,727.40
RIO Supply,Inc.
Kasper
3/12/2021
$1,692.31
RIO Supply, Inc.
Kasper
3/19/2021
$1,692,31
RIO Supply, Inc.
Kasper
3/26/2021
$1,692.31
RIO Supply, Inc.
Kasper
4/1/2021
$1,740.06
RIO Supply, Inc.
Kasper
4/5/2021
$2,171.61
RIO Supply, Inc.
Kas er
4/9/2021
$1,692.31
RIO Supply, Inc.
Kasper_
4/16/2021
$1,692.31
Rio Supply, Inc.
Kasper
4/23/2021
$1,692.31
RIO Supply, Inc.
Kasper
4/30/202L
$1,692.31
RIO Supply, Inc.
Kasper
5/7/2021
$1,692.31
RIO Supp1y, Inc.
Kasper
5/7/2021
$1,643.20
RIO Su ply, Inc.
Kasper
5/14/2021
$1,692.31
RIO Su ply, Inc.
Kasper
5/21/2021
$1,692.31
RIO Supply, Inc.
Kasper
5/28/2021
$1,692.31
RIO Supply,Inc.
Kasper
6/4/2021
$1,692.31
RIO Supply, Inc.
Kasper
6/8/2021
$1,692.31
RIO Supply, Inc.
Kasper
6/11/2021
$1,692.31
RIO Supply, Inc.
Kasper
6/18/2021
$1,692,31
RIO Su ply, Inc.
Kasper
6/25/2021
$1,692.31
RIO Supply, Inc.
Kasper
7/2/2021
$1,708.93
RIO Supply, Inc.
Kasper
7/9/2021
$1,885.59
RIO Supply, Inc.
Kasper
7/9/2021
$1,692.31
RIO Su ply, Inc.
Kasper
7/16/2021
$1,692.31
RIO Supply, Inc.
Kasper
7/23/2021
$1,692.31
RIO Supply,Inc.
Kasper
7/30/2021
$1,692.31
RIO Supply, Inc.
Kasper
Kasper, 2I-034
Page 33
8/6/2021 1
$3,009.04
RIO Supply, Inc.
Kasper
8/13/2021
$1,692.31
RIO Su ply, Inc.
Kasper
8/20/2021
$1,692.31
RIO Supply, Inc.
Kasper
8/27/2021
$1,692.31
RIO Supply, Inc.
Kasper
9/3/2021
$2,405.79
RIO Sup 1 , Inc.
Kasper
9/10/2021
$1,692.31
RIO Supply, Inc.
Kasper
9/15/2021
$3,404.31
RIO Supply, Inc.
Kasper
9/17/2021
$1,692.31
RIO Supply, Inc.
Kasper
9/24/2021
$1,692.31
RIO Supply, Inc.
Kasper
10/1/2021
$2,626.47
RIO Supply, Inc.
Kasper
10/8I2021
$1,692.31
RIO Supply, Inc.
Kasper
10/15/2021
$3,428.38
RIO Supply, Inc.
Kasper
10115/2021
$1,692.31
RIO Supply, Inc.
Kas er
10/22/2021
$1,692.31
RIO Supply, Inc.
Kasper
10/29/2021
$1,692.31
RIO Supply, Inc.
Kasper
11/5/2021
$2 138.31
RIO Supply, Inc.
Kasper
11/12/2021
$1,692.31
RIO Supply, Inc.
Kasper
11/15/2021
$1,692.31
RIO Supply, Inc.
Kasper
11/19/2021
$1,692.31
RIO Supply, Inc.
Kasper
11/24/2021
$1,692.31
RIO Supply, Inc.
Kas er
12/3/2021
$2,692.31
RIO Supply, Inc.
Kasper
12/10/2021
$1,692,31
RIO Supply, Inc.
Kasper
12/13/2021
$2,534,87
RIO Supply, Inc.
Kasper
12/17/2021
$1,692.31_
RIO Supply, Inc.
Kasper
12/23/2021
$1,692.31
RIO Supply, Inc.
Kasper
12/30/2021
$1,692.31
RIO Supply, Inc.
Kasper
Total
$110,654.76
a. Kasper received a total of $110,654.76 in payments from RIO Supply, Inc. during
the 2021 calendar year.
$88,000.12 of the $110,654.76 was paid to Kasper as a weekly salary.
b. Each payment made to Kasper was directly deposited into the WK Sales &
Consulting LLC TD Bank Business Convenience Plus checking account.
90. Kasper received a total of $4,117.62 in commission salary during the 2021 calendar year.
91. Kasper received a total of $18,537.02 in business expense reimbursements for the 2021
calendar year.
92. Kasper's Internal Revenue Service Form 10-99 Non -Employee Compensation Form that
he received from RIO Supply, Inc. for calendar year 2021 reflects he received a total of
Kasper, 21-034
Page 34
$92,117.74 in compensation.
a. Kasper's business expense reimbursements in the amount of $18,537.02 were not
included on his 2021 calendar year 10-99.
b. Kasper, as a contractual employee, is responsible for paying his own income taxes.
93. Kasper received no commission payments from RIO Supply, Inc. from the NPWA
$2,566,600 water meter replacement contract.
a. Scillia received commission payments from the NPWA water meter replacement
pre j ect.
THE FOLLOWING FINDINGS PERTAIN TO KASPER PROVIDING NEPTUNE
WATER METER PRODUCT INFORMATION TO NPWA CUSTOMER SERVICE
MANAGER CHRISTOPHER NORRIS AS A REPRESENTIVE OF RIO SUPPLY, INC.
WITHIN ONE YEAR OF LEAVING THE NPWA.
94. On February 18, 2021, nearly one month after Kasper began to work as a Territorial Sales
Manager for RIO Supply, Inc., Kasper emailed current NPWA Customer Service Manager
Christopher Norris ("Norris") product information pertaining to new Neptune Mach 10
Ultrasonic water meters.
a. Kasper forwarded the following email to Norris, "Neptune's commercial line of
MACH 100 ultrasonic water meters are engineered to reduce operating costs,
improve worker safety, and maximize revenue for your utility. With exception
allow flow accuracy and lasting performance under demanding service conditions,
Neptune's Commercial &Industrial MACH 10 meters eliminate costly maintenance
and allow you to focus on more critical tasks.
Learn more about the Neptune MACH 10 line for commercial and industrial
applications.
Available in sizes 3"-6", and soon 8"-12", we invite you to take a few minutes and
find out how these state-of-the-art meters are designed to help you win your day.
Watch the Video"
b. Kasper was working as a Territorial Sales Manager for RIO Supply, Inc. at the time
he sent the sales email to Norris.
C. Kasper was a part-time employee of the NPWA from January 2021 until April
2021. .
1. Kasper was hired as a part-time employee to train Norris.
JKS, er, 21-034
Page 3 5
d. Kasper initially received the sales email from Neptune Technology Group
marketing at his NPWA email address on February 16, 2021.
1. Kasper was on Neptune's marketing email list as NPWA Customer Service
Manager.
95. On February 19, 2021, Norris emailed Kasper regarding the possibility of ordering a 8",
10", or 12" Mach 10 water meter.
a. Norris wrote, "No worries you already know all that stuff. Can we order 8, 10, 12
inch mach 10's yet?
b. Kasper replied to Norris on February 19, 2021, "As a matter of fact, they will be
piloted over the next several months. If you are serious, Carl might be able to get
you an 8 or 10."
1. Kasper referenced Territorial Sales Manager Scillia.
C. Norris replied to Kasper on February 19, 2021, "What would I do with it? We could
set it on a pedestal and light it well I guess. Realistically I would be gun shy to use
an untested meter in one of our biggest clients connections. We can make a 1.5"
freak out go away. Anyone with an 8" meter would be calling Tony directly. Good
to know they will be available to the masses soon though."
1. Norris was referencing the Hatfield Meat Plant (2700 Clemens Road,
Hatfield, PA 19440) as the NPWA's biggest client.
2. Hatfield announced plans in February 2021 to construct a $228 million
facility that supported increased production of smoked meats and cooked
sausage.
96. Kasper was fully aware the NPWA would need to purchase a larger water meter for the
Hatfield plant.
97. Two weeks after Kasper forwarded the sales advertisement email to him, Norris emailed
Scillia to request a "spec sheet" and quote for an 8" Mach 10 meter.
a. Norris carbon copied Crocetti and Kasper in the email.
b. Norris sent the email to Kasper's WK Sales & Consulting LLC email address.
C. Norris wrote, "Carl Please send me a spec sheet and quote for an 8" Mach 10 meter.
Turn out ... Bill Kasper laid these things out for a Master Meter Octave. A Protectus
wouldn't fit in the hole. Thanks Chris Norris."
1. Norris explained to Scillia that he needed a larger meter to fit in the vault,
Kasper, 21-034
Page 36
and the 8" Mach 10 Neptune Ultrasonic meter was the right size meter.
98. Norris emailed Scillia and Crocetti on March 8, 2021.
a. Norris emailed Scillia to follow up regarding the quote for the 8" Mach-10 and
Crocetti to obtain product specifications.
b. Norris wrote to Scillia, "Carl, Don't forget to send me a quote for an 8" Mach-10
so I can buy one."
c. Norris wrote to Crocetti, "Al, I need specs for this meter. Doesn't need to be an
official pdf. Mainly need the dimensions for the guy building the vault it will live
in. These measurements coming from an `@Neptune" email will help put his mind
at ease. An official pdf will be nice in time though. Thanks, Chris Norris."
99. Crocetti emailed Norris the product specifications in a PDF on March 8, 2021, for the
ultrasonic Mach 10 8" water meter.
a. Crocetti wrote, "Attached to this email you will find the Mach 10 product page. This
contains all dimensions of the meter. Please let me know if you need anything else.
Thank you, Al Crocetti."
b. Crocetti provided product specifications for the Neptune Mach 10 Ultrasonic 8"
water meter in the document emailed to Norris.
I . This was the same product Kasper forwarded to Norris in a marketing email
on February 18, 2021.
100. The NPWA purchased one Neptune Mach 10 Ultrasonic 8x20 meter for the Hatfield meat
plant on March 8, 2021, nearly one month after Kasper provided the sales email to Norris.
a. The NPWA purchased the water meter from RIO Supply, Inc. for $10,500.00.
b. The meter was shipped by RIO Supply, Inc. to the NPWA on April 13, 2021.
C. Scillia received $2,585.00 in commission for the sale of the Neptune Mach 10
Ultrasonic 8x20 water meter to the NPWA.
d. RIO Supply, Inc. profited $5,170.00 from the sale of the Mach 10 Ultrasonic 8x20
water meter.
THE FOLLOWING FINDINGS RELATE TO HOSPITALITY PROVIDED TO KASPER
BY NEPTUNE TECHNOLOGY GROUP TERRITORY MANAGER AL CROCETTI
FROM CALENDAR YEARS 2017 THROUGH 2O20.
101. Neptune Technology Group supplies Neptune water meters to RIO Supply, Inc.
Kasper, 21-034
Page 37
a. Neptune Technology Group is a vendor of the NPWA through RIO Supply, Inc.
102. Kasper worked with Scillia and Crocetti to obtain product information and pricing for the
$2,566,600 water meter replacement project.
103. Kasper, Scillia, and Crocetti often played golf together.
104. Crocetti was fully aware that Kasper had plans to replace 13,000 NPWA residential water
meters with Neptune water meters in 2019.
105. Kasper was considered a "customer" of Crocetti's and was provided various hospitality
between calendar years 2017 and 2020, including golf, meals, concert tickets, sporting
event tickets, cigars, and other hospitality.
106. Kasper never paid for meals or hospitality offered to him by Crocetti and Neptune
Technology Group.
107. The chart below details hospitality Kasper received from Crocetti and Neptune Technology
Group during the 2017 calendar year.
Date
Vendor
Venue/Event
Provided to
Kasper
1/24/2017
Neptune
Golf 364
$58.33
3/28/2017
Neptune
Nittany Lion Inn
$21.79
3/28/2017
Neptune
The Ph rst Phood
$28.99
3/29/2017
Neptune
The Tavern Restaurant
$43.09
3/29/2017
Neptune._
The Penn State Univ.
$6.75
3/29/2017
Neptune
The Nittany Lion Inn
$17,06
3/29/2017
Ne tune
The Ph rst Phood
$26.79
4/25/2017
Neptune
Devon Restaurant
$47.89
4/25/2017
Neptune
Devon Restaurant
$6.00
4/25/2017
Neptune
Houlihans Restaurant
$6.50
4/26/2017
Neptune
The Mill
$29.93
4/26/2017
Neptune
PJD Entertainment
$20.20
4/27/2017
Neptune
Foxchase Golf Club
$12.68
5/12/2017
Neptune
Metallica Concert
$126.61
5/12/2017
Neptune
Line Financial Field Club
Metallica
$17.33
5/12/2017
Neptune
Line Financial Field Club
Metallica
$18.33
5/12/2017
Neptune
1100 Social
$78.67
5/12/2017
Neptune
Line Financial Field Club
Metallica
$8.00
6/13/2017
Neptune
I Philadelphia Marriot
$33.06
6/13/2017
Neptune
I Ashton Cigar Bar
$45.94
Kasper, 21 -034
Page 3 8
6/13/2017
Neptune
Field House
$38.11
6/13/2017
Neptune._
Lard Rock Caf6 Philadelphia
$7.25
7/15/2017
Neptune_.
Chickie's & Pete's Adu
$30.65
7/15/2017
Neptune
Foxchase Golf Club
$52.00
8/8/2017
Neptune
Kelly's Steak and Seafood
$43.90
8/8/2017
Neptune
WWOAP
$90.00
8/8/2017
Neptune
Bills Pickle Tap Room
$18.93
8/8/2017
Neptune
Your Cigar Den
$8.65
8/9/2017
Neptune
IHOP
$12.28
8/9/2017
Ne tune
Tom's 49
$10.88
8/15/2017
Neptune
PMAA
$70.00
8/29/2017
Ne tune
Hershey Lode
$23.31
9/10/2017
Neptune
Penn Hotel and Sports Bar
$39.89
9/11/2017
Neptune
Hershey Lodge Restaurant
$18.82
9/11/2017
Neptune
Devon Restaurant
$36.59
9/12/2017
Neptune
Hershey Lodge Restaurant
$21.39
9/29/2017
Neptune
Fairview Golf Course
$35.00
9/29/2017
Ne tune
Marconi Sports Bar
$16.70
11/19/2017
Neptune
Dallas Cowboys Concession
$32.80
12/18/2017
Neptune
Linfield National Golf Club
$33.34
12/18/2017
Neptune
Golf 364
$43.75
Total
$1,338.18
a. Kasper received a total of $1,338.18 in hospitality from Neptune Technology Group
during the 2017 calendar year.
108. The chart below details hospitality Kasper received from Crocetti and Neptune Technology
Group during the 2018 calendar year.
Date
Vendor
Venue/Event
Provided to
Kasper
1/31/2018
Neptune
The Mill
$20.72
3/21/2018
Neptune
Kelly's Steak and
Seafood
$30.90
3/21/2018
1 Neptune
The End Zone Sports
Club
$20.00
3/21/2018
Neptune
The Ph rst Phood
$23.80
3/30/2018
Neptune
Scotland Run Golf
Course
$71.00
4/19/2018
Neptune
McFaddens Ballpark
$41.67
5/8/2018
Neptune
Cigarette Outlet
$13.91
5/18/2019
Neptune
Linfield National Golf
Club
$22.15
5/18/2018
Ne tune
Golf 364
$43.75
Kaspei, 21-034
Page 39
6/12/2018
Neptune
Blue Bird Inn
$33.43
6/20/2018
Neptune
The Mill
$16.95
7/20/2018
Neptune
Iron Valley Golf Club
$7.41
7/19/2018
Neptune
Mainland Golf Course
$103.26
9/6/2018
Neptune
P3's Birmingham LLC
$30.86
9/6/2018
Neptune
Court Diner
$15.91
9/6/2018
Neptune
Notable Event
$8.06
9/6/2018
Neptune
BMW Championship..$55.00
9/19/2018
Neptune
The Wooden Match
$59.29
9/19/2019
Neptune
Coua and by Marriot
$27.45
9/25/2018
Neptune
Kelly's Steak and
Seafood
$33.39
9/25/2018
Neptune
Your Cigar Den
$10.75
9/25/2018
Neptune
The Ph rst Phood
$18.25
11/29/2018
Neptune
Smoke Dadday
$20.00
12/20/2018
Neptune
Smoke Dadday
$19.95
Total
$747.76
a. Kasper received a total of $747.76 in hospitality from Neptune Technology Group
during the 2018 calendar year.
109. The chart below details hospitality Kasper received from Crocetti and Neptune Technology
Group for the 2019 calendar year.
Provided to
Date
Vendor
Venue/Event
Kasper.
1/10/2019
Neptune
Top Golf
$48.74
2/4/2019
Neptune..
P11illies Tickets
$236.36
Broad Street Bullies
2/18/2019
Ne tune
Pub
$76.80
Wachovia Center
2/18/20I9
Neptune
Aramark
$11.81
Wachovia Center
2/18/2019
Neptune
Aramark
$10.31
Wachovia Center
2/18/2019
Neptune
Aramark
$8.87
Wachovia Center
2/18/2019
Ne tune
Aramark
$14.75
Ticket Master Plus
3/8/2019
Neptune
Resale
$53.06
Allianz Event
3/18/2019
Neptune
Insurance
$6.36
3/26/2019
Neptune
The Ph rst Phood
$28.90
Primanti Bros State
3/27/2018
Neptune
College
$36.42
Kasper, 21-034
Page 40
3/27/2019
Neptune
The PI► rst PI ood
$27.92
4/6/2019
Neptune
Aramarck Citi
$10.33
4/6/2019
Aramarck Citi
$7.00
4/17/2019
Ne tune
Devon Restaurant
$47.01
4/17/2019
Neptune
Iron Valley Golf Club
$7.75
6/23/2019
Neptune
Aramarck Citi
$9.33
6/23/2019
Neptune
Aramarck Citi
$9.00
7/18/2019
Neptune
Tavola Restaurant
$22.56
7/23/2019
Neptune
PMAA
$73.75
8/3/2019
Neptune
Tortilla Press
$21.57
8/4/2019
Neptune
Brewsters Laurel
Lanes
$39.78
8/26/2019
Neptune
Water for the
Peo le/PAAWWA
$137.50
8/31/2019
Neptune
Victors Pub
$39.68
8/31/2019
Neptune
Legends BB&T
Pavilion
$50.32
8/31/2019
Neptune
Victors Pub
$1.2.25
8/31/2019
Neptune
Legends BB&T
Pavilion
$8.75
8/31/2019
Neptune
Legends BB&T
Pavilion
$50.32
9/8/2019
Neptune
Kalahari Resort
$72.05
9/8/2019
Neptune
Kalahari Resort
$24.75
9/8/2019
Neptune
Kalahari Resort
$1.9.54
9/8/2019
Neptune
Kalahari Resort
$15.25
10/23/2019
Neptune
Smoke Daddy's
$20.00
11/17/2019
Neptune
Philadelphia Eagles
Game
$466,39
12/17/2019
Neptune
The Pour House
$32.07
Total
$1,757.25
110. Kasper received the most hospitality from Crocetti and Neptune Technology Group during
the 2019 calendar year, totaling $1,757.25.
a. Kasper began receiving quotes and product information for the NP WA water meter
replacement project during the 2019 calendar year.
111. The chart below reflects hospitality Kasper received from Crocetti and Neptune
Technology Group during the 2020 calendar year.
Date
Vendor
Venue/Event
Provided to
Kasper
Note
1/28/2020
Neptune
The Mill
$17.48
2/13/2020
Ns tune
Ph ill ies 'rickets
$236.36
Kasper, 21-034
Page 41
3/12/2020
Neptune
Smoke Daddy's
$23.20
5/15/2020
Neptune
SBX07620
$4.46
5/15/2020
Neptune
Fox Chase Golf
Club
$57.66
5/1512020
1 Neptune
Fox Chase Golf
Club
$3.93
6/16/2020
Neptune_
Shawnee Inn
Retail
$69.77
*Meeting with Scillia and
Emens
11 /21 /2020
Neptune
Jesse's Barbecue
$27.27
Total
$440.13
a. Kasper received a total of $440.13 from Neptune Technology Group during the
2020 calendar year.
b. Kasper received the least amount of hospitality from Neptune during the 2020
calendar year due to the COVID-19 pandemic.
112. Kasper was required to disclose lodging, transportation, and hospitality he received in
excess of $650.00 on his Statement of Financial Interests forms.
a. Kasper failed to file Statement of Financial Interests forms for calendar years 2017
through 2020.
b. Kasper received in excess of $650.00 in hospitality from Neptune Technology
Group for calendar years 2017, 2018, and 2019.
113. Kasper failed to disclose to Bellitto, Regan, or the NPWA Board that he received
hospitality from Neptune Technology Group during the 2019 calendar year prior to the
August 25, 2021, vote to approve the $2,566,600 Neptune water meter contract.
THE FOLLOWING FINDINGS REFLECT LODGING AND HOSPITALITY PROVIDED
TO KASPER BY RIO SUPPLY, INC. FOR CALENDAR YEARS 2019 AND 2020.
114. While working with RIO Supply, Inc. on the NPWA water meter replacement project,
Kasper was simultaneously provided with meals and golf by Scillia and RIO Supply, Inc.
115. Scillia sponsored golf outings at various conferences and events on behalf of RIO Supply,
Inc., including the Pennsylvania American Water Works Association Conference, the
Bucks County Water and Sewer Authority Golf Outing, and, the Water Works Operators
Association of Pennsylvania Golf Tournament.
a. Scillia sponsored a foursome of golf that included a cart rental and greens fees.
b. Kasper never paid for golf or meals with Scillia.
1. Kasper was considered Scillia's customer.
Kasper, 21-034
Page 42
116. Scillia registered for golf outings and included Kasper as part of his sponsored foursome.
117. The chart below reflects hospitality provided to Kasper during the 2019 calendar year by
RIO Supply, Inc.
Sponsored
Kasper
Date
Location/Event
by
Cost
Attended
Reason
lunch
1/16/2019
The Mill Kul sville
Scillia
$29.90
Yes
meeting
lunch
2/5/2019
The Mil] Kul sville
Scillia
$35.15
Yes
meeting
PA-AWWA Golf Tournament
4/16/2019
(Hershey, PA
Scillia
$90.00
Yes
Golf
5/23/2019
BCWSA Golf Outing (Yardley, PA
Scillia
$125.00
Yes
Golf
lunch
6/19/2019
Smoke Daddy Lansdale, PA
Scillia
$61.10
Yes
meeting
lunch
7/23/2019
Smoke Daddy Lansdale, PA
Scillia
$37.17
Yes
meeting
WWOAP Scholarship Golf
8/21/2019
Tournament Boalsbur , PA
Scillia
$90.00
Yes
Golf
Jack Frost National Golf Club
9/11/2019
Reston, VA
Scillia
$98.00
Yes
Golf
10/12/2019
Fall Dutchman Lebanon, PA
Scillia
$150.00
Yes
Golf
lunch
12/18/2019
Smoke Daddy Lansdale, PA).__Scillia
$41.58
Yes
meeting
Total
$757.90
a. Kasper received $757.90 in hospitality from Scillia and RIO Supply, Inc. during
the 2019 calendar year, including meals and golf.
b. Kasper received the hospitality while simultaneously working with Scillia on the
NPWA water meter replacement project.
118. The chart below illustrates hospitality and lodging provided to Kasper during the 2020
calendar year by Scillia, Emens, and RIO Supply, Inc.
Date
Location/Event
Sponsored
by
Cost
Kasper
Attended
Reason
1/7/2020
Smoke Daddy Lansdale, PA
Scillia
$29.61
Yes
lunch
meeting
2/19/2020
The Mill Kul sville
Scillia
$30.38
Yes
lunch
meeting
6/3/2020
Spring Hallow Golf Course (Spring
City, PA
Scillia
$98.00
Yes
Golf
6/15/2020
Mt. Ai Golf Course
Scillia
$50.00
Yes
Golf
6/15/2020
Fairfield by Marriot Stroudsburg, PA
)Emens
$97.01
Yes
Lodging
6/15/2020
Mt. Ail Mt. Pocono
Emens
$70.07
Yes
Dinner
6/16/2020
Halfway House Delaware, PA
Emens
$10.81
Yes
lunch
9/24/2020
BCWSA Golf Outing (Yardley, PA
Scillia
$125.00
Yes
Golf
Kasper, 21-034
Page 43
12/3/2020
The Mill Kul sville
Scillia
$51.33
Yes
lunch
mectiniz
Total
$562.21
a. Kasper received a total of $562.21 in lodging and hospitality from Scillia, Emens,
and RIO Supply, Inc. during the 2020 calendar year.
I. The lodging provided to Kasper included a June 15, 2020, stay at the
Fairfield by Marriot (Stroudsburg, Pennsylvania).
2. The hospitality included free meals and golf provided to Kasper.
119. Kasper received $757.90 in hospitality from RIO Supply, Inc. during the 2019 calendar
year.
a. Kasper was required to disclose lodging, transportation, and hospitality he received
in excess of $650.00 on his Statement of Financial Interests form.
b. Kasper failed to file a 2019 Statement of Financial Interests form.
THE FOLLOWING FINDINGS PERTAIN TO KASPER'S FAILURE TO FILE
STATEMENT OF FINANCIAL INTERESTS FORMS FOR CALENDAR YEARS 2016,
2017, 2018, 2019, AND 2020.
120. Kasper, in his official capacity as Customer Service Manager for the NPWA, was required
to annually 'File a Statement of Financial Interests ("SFI") form by May 1" for the prior
calendar year.
121. Kasper was required to file an SFI for calendar years 2016, 2017, 2018, 2019, and 2020 as
Customer Service Manager.
122. As Customer Service Manager, Kasper approved purchase orders for his department and
approved payments to vendors.
123. Kasper directly supervised NPWA employees in the Metering Department and the
Customer Service Department.
124. Kasper was considered a "public employee" under the Ethics Act.
125, An SFI compliance review was completed by a Pennsylvania State Ethics Commission
Investigator on December 14, 2021.
a. The compliance review was completed to ensure covered public employees and
officials of the NPWA filed SFI forms.
b. Each public employee and official of the NPWA is responsible for accurately
reporting and filing an SFI by May 1" for the prior calendar year.
Kaspei, 21-034
Page 44
126. The compliance review found that Kasper failed to file SFI forms for calendar years 2016
through 2020.
127. Kasper filed SFI forms for calendar years 2015 through 2021 with the NPWA on April 10,
2022.
128. A review of the SFIs filed by Kasper on April 10, 2022, found that Kasper failed to disclose
transportation, lodging, and hospitality he received from Neptune Technology Group for
calendar years 2017, 2018, and 2019.
129. Kasper also failed to disclose transportation, lodging, and hospitality he received from RIO
Supply, Inc. for the 2019 calendar year.
130. Kasper received hospitality from Neptune Technology Group and RIO Supply, Inc. as
Customer Service Manager, including golf, meals, and sporting events tickets.
131. Kasper received hospitality from Neptune Technology Group and RIO Supply, Inc. during
the 2019 calendar year while simultaneously working on the $2,566,600 Neptune water
meter replacement project.
132. Kasper on his 2019 filing listed the incorrect filing year of 2020 instead of 2019.
133. Kasper on his 2021 calendar year filing listed his name as "North Authority" instead of
William Kasper.
134. Kasper failed to list his occupation as private contractor for WK Sales & Consulting LLC
on his 2021 calendar year filing.
135. Kasper included WK Sales & Consulting LLC as an office, directorship, or employment
and financial interest in any legal entity for profit on his 2021 filing.
Kasper disclosed he has 100% interest held in WK Sales & Consulting LLC.
b. Kasper disclosed he is the President of WK Sales & Consulting LLC.
136. Kasper filed the following SFIs with the NPWA for calendar years 2016 through 2021:
a. Calendar Year: 2016
Dated: 4/10/2022 on form SEC-1 (Rev. 01/22)
Position: Customer Service Manager
Government Entity: North Penn Water Authority
Occupation: Customer Service Manager
Creditors: Superior Credit Union 1.99%, American Express 19.5%
Direct/Indirect ,Sources of Income: North Penn Water Authority, Emergency
Training Solutions, LLC
Kasper, 2I-034
Page 45
Gifts: None
Transportation, Lodging, Hospitality: None
Other Financial Interests: None
b. Calendar Year: 2017
Dated: 4/10/2022 on form SEC-1(Rev.01/22)
Position: Customer Service Manager
Government Entity: North Penn Water Authority
Occupation: Customer Service Manager
Creditors: Superior Credit Union 199%, American Express 19.5%
Direct/Indirect Sources of Income. North Penn Water Authority
Other Financial Interests: None
Gifts: None
Transportation, Lodging, Hospitality: None
Other Financial Interests: None
C. Calendar Year: 2019
Dated: 4/10/2022 on form SEC-1 (Rev. 01/22)
Position: Customer Service Manager
Government Entity: North Penn Water Authority
Occupation: Customer Service Manager
Creditors: Superior Credit Union 6.75%, American Express 19.5%
Direct/Indirect Sources of Income: North Penn Water Authority
Gifts: None
Transportation, Lodging, and Hospitality: None
Other Financial Interests: None
d. Calendar Year: 2019
Dated: 4/10/2022 on form SEC-1 (Rev. 01/22)
Position: Customer Service Manager
Government Entity: North Penn Water Authority
Occupation: Customer Service Manager
Filing year listed: 2020 (intended for 2019)
Creditors: Superior Credit Union 6.75%, American Express 19.5%
Direct/Indirect Sources of Income: North Penn Water Authority
Gifts: None
Transportation, Lodging, Hospitality: None
Other Financial Interests: None
Calendar Year: 2020
Dated: 4/10/2022 on form SEC -I (Rev. 01/22)
Position: Customer Service Manager
Government Entity: North Penn Water Authority
Occupation: Customer Service Manager
Creditors: Superior Credit Union 6.75%, American Express 19.5%
Direct/Indirect Sources of Income: North Penn Water Authority
Kasper, 21-034
Page 46
Gifts: None
Transportation, Lodging, and Hospitality: Non
Other Financial Interests: None
f Calendar Year: 2021
Dated: 4/10/2022 on form SEC -I (Rev. 01/22)
Position: Customer Service Manager
Government Entity: North Penn Water Authority
Occupation: Customer Service Manage
Creditors: Superior Credit Union 6.75%, American Express 19.5%
Direct/Indirect Sources of Income: North Penn Water Authority, WK Sales &
Consulting, LLC
Gifts: None
Transportation, Lodging, and Hospitality: None
Office Directorship, or Employment in Business for Profit: WK Sales &
Consulting, LLC
Position Held: President
Financial Interest in Any Legal Entity in Business for Profit: WK Sales &
Consulting LL
Interest Held: 100%
Other Financial Interests: None
III. DISCUSSION:
As the Customer Service Manager for North Penn Water Authority ("NPWA") from April
27, 2015, until January 8, 2021, Respondent William Kasper ("Kasper") was a public employee
subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S.
§I101etsee .
The allegations are that Kasper violated Sections 1103(a), I I03(g), 1104(a), and 1105(a)
of the Ethics Act:
(1) When he utilized the authority of his public position as the Customer Service
Manager for the NPWA to influence, steer, and negotiate a contract valued at
approximately $2,566,600 with RIO Supply, Inc. to purchase and install water
meters at a time when he was negotiating future employment with RIO Supply, Inc.
and accepting travel, lodging, and hospitality from RIO Supply Inc.;
(2) When he represented, for promised or actual consideration, himself and/or a
business he is associated with, RIO Supply, Inc., in sales efforts and/or contract(s)
with the NPWA within one year of leaving employment with the NPWA; and
(3) When he failed to file Statements of Financial Interests for calendar years 2016,
2017, 2018, 2019, and 2020.
I{aspen, 21-034
Page 47
Per the Consent Agreement, the Investigative Division has exercised its prosecutorial
discretion to nolle pros the allegation that Kasper failed to file Statements of Financial Interests
for calendar years 2016 through 2020. We therefore need not address that allegation.
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).
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.
Subject to the statutory exclusions to the Ethics Act's definition of the term "conflict" or
"conflict of interest," 65 Pa.C.S. § 1102, pursuant to Section 1103(a) of the Ethics Act, a public
official/public employee is prohibited 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(g) of the Ethics Act prohibits a former public official/public employee from
representing a person with promised or actual compensation on any matter before the
governmental body with which he has been associated for a period of one year after he leaves that
body:
Kasper, 21-034
Page 48
§ 1103. Restricted activities
(g) Former official or employee. —No former public
official or public employee shall represent a person, with promised
or actual compensation, on any matter before the governmental body
with which he has been associated for one year after he leaves that
body.
65 Pa.C.S. § 1103(g).
The terms "represent, "person," "governmental body," and "governmental body with
which a public official or public employee is or has been associated" are specifically defined in
the Ethics Act as follows:
§ 1102. Definitions
"Represent." To act on behalf of any other person in any
activity which includes, but is not limited to, the following: personal
appearances, negotiations, lobbying and submitting bid or contract
proposals which are signed by or contain the name of a former
public official or public employee.
"Person." A business, governmental body, individual,
corporation, union, association, firm, partnership, committee, club
or other organization or group of persons.
"Governmental body." Any department, authority,
commission, committee, council, board, bureau, division, service,
office, officer, administration, legislative body or other
establishment in the executive, legislative or judicial branch of a
state, a nation or a political subdivision thereof or any agency
performing a governmental function.
"Governmental body with which a public official or
public employee is or has been associated." The governmental
body within State government or a political subdivision by which
the public official or employee is or has been employed or to which
the public official or employee is or has been appointed or elected
and subdivisions and offices within that governmental body.
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.
Kasper, 21-034
Page 49
The NPWA was created pursuant to the Pennsylvania Municipality Authorities Act, The
NPWA is empowered to own and operate water distribution systems, and it provides service to
over 33,000 customers in ten municipalities. The NPWA is governed by a ten -Member Board of
Directors ("NPWA Board").
Kasper began employment as the NPWA Customer Service Manager on April 27, 2015.
Kasper's duties and responsibilities included managing and evaluating the metering of water, and
he approved purchase orders for water meters. Kasper directly reported to NPWA Finance Director
Dale Reichenbach ("Reichenbach") until January 2020, after which he directly reported to NPWA
Chief Administrative Officer Maryann Regan ("Regan").
In late 2018, Kasper participated in discussions with Reichenbach and NPWA Executive
Director Anthony Bellitto ("Bellitto") regarding the need to replace 13,000 NPWA residential
water meters. Kasper favored replacing the existing Sensus water meters, which were over twenty
years old, with Neptune water meters because Neptune water meters are made of brass, are easier
to install, and do not require a battery to operate.
COSTARS is the Commonwealth of Pennsylvania's cooperative purchasing program, and
it serves as a conduit through which registered eligible local public procurement units and state
affiliated entities are able to leverage contracts established by the Pennsylvania Department of
General Services to cost effectively and efficiently identify suppliers with whore to do business.
RIO Supply, Inc. is the only supplier of Neptune water meters through COSTARS in eastern
Pennsylvania.
Neptune water meters are manufactured by Neptune Technology Group, Inc. ("Neptune
Technology Group"). RIO Supply, Inc. worked with Neptune Technology Group Territory
Manager Al Crocetti ("Crocetti") in relation to sales and distribution of Neptune water meters in
eastern Pennsylvania
As the NPWA Customer Service Manager, Kasper was part of the decision -malting process
for replacing the Sensus water meters with Neptune water meters, and he was relied upon to
provide water meter product information and specifications. Kasper was the point of contact at
the NPWA for the water meter replacement project. RIO Supply, Inc., which had been a vendor
to the NPWA since 2006, was the only vendor Kasper considered for the provision of Neptune
water meters because it was the only supplier available to provide Neptune water meters through
COSTARS.
On February 4, 2019, Kasper emailed RIO Supply, Inc. Territorial Sales Manager Carl
Scillia ("Scillia") to obtain quotes for water meters for the water meter replacement project. Scillia
subsequently provided Kasper with a purchase price of $100,98 per Neptune 518" T-10 TC water
meter ("Neptune Water Meter").
As the NPWA Customer Service Manager, Kasper requested approval for projects and
purchases for the NPWA annual budget. Each September, Kasper submitted a Capital Asset
Request Form to Reichenbach. The Capital Asset Request Form would then be reviewed by the
Kasper, 21-034
Page 50
NPWA Engineering Committee for recommendation of capital projects for the upcoming year's
budget.
On September 4, 2019, following a lunch meeting with Kasper, Scillia emailed Kasper a
quote of $554,700 for the purchase of 5,000 Neptune Water Meters and $445,000 for the
installation of 5,000 Neptune Water Meters. Scillia emailed Kasper the quote for budgeting
purposes.
In September 2019, Kasper submitted a Capital Asset Request Form to Reichenbach. The
Capital Asset Request Form requested to change 5,000 aged water meters at an estimated cost of
$1,050,000. The Capital Asset Request Form indicated that these water meters must be changed
to comply with Safe Drinking Water Act and America Water Works Association guidelines and
that 13,000 water meters would be changed over three years to come into compliance with those
guidelines.
During the September 24, 2019, NPWA Engineering Committee meeting, the NPWA
Engineering Committee recommended the approval of $1,650,000 for the water meter replacement
project and forwarded the capital budget to the NPWA Finance Committee for review. On
November 19, 2019, the NPWA Finance Committee recommended the adoption of the 2020
capital budget, which included $1,650,000 allocated for the water meter replacement project. The
NPWA Board subsequently approved the 2020 capital budget.
The water meter replacement project was planned to replace 5,000 water meters in 2020,
5,000 water meters in 2021, and 3,000 water meters in 2022. After the water meter replacement
project was added to the 2020 capital budget, Scillia emailed Kasper a quote of $986,932.85 for
the purchase and installation of 5,000 Neptune Water Meters and several other meters.
During 2019, Kasper received a total of $757.90 in hospitality, consisting of meals and golf
outings, from Scillia. Kasper, who was considered to be Scillia's customer, received the
hospitality while simultaneously working with Scillia on the water meter replacement project.
Between January 2020 and August 2020, Kasper and Scillia communicated regularly
regarding the water meter replacement project. As Kasper requested additional items for the water
meter replacement project, Scillia provided him with updated quotes. On March 3, 2020, Scillia
emailed Kasper an updated quote of $1,082,175.20 for the water meter replacement project.
On June 9, 2020, Scillia emailed Kasper a draft of an "NPWA 2020 Meter Change Project
Agreement" for the replacement and installation of residential water meters as part of the water
meter replacement project. Kasper then emailed the draft to Regan for her review.
Kasper and Scillia often played golf together with Neptune Technology Group Territory
Manager Crocetti. On June 15, 2020, Kasper was invited to play golf at the Mt. Airy Golf Course
by Scillia and RIO Supply, Inc. Vice President Barry Emens ("Emens"). The purpose of the outing
was to discuss Kasper's future employment with RIO Supply, Inc. Scillia paid for Kasper to play
eighteen holes of golf at the Mt. Airy Golf Course. After playing golf, Kasper was invited to have
dinner with Emens, Scillia, and Crocetti. Emens paid for Kasper's dinner and drinks. During
dinner, Kasper informed Emens that he was unhappy with his current supervisor, Regan, and that
Kasper, 21-034
Page 51
he was interested in working for RIO Supply, Inc. as a Territorial Sales Manager. Kasper agreed
to send Emens a copy of his resume. Emens provided Kasper with lodging at the Fairfield Inn by
Marriot overnight from June 15 to June 16 and with lunch at the Halfway House at Shawnee Inn
and Golf Resort on June 16. Between June 15 and 16, 2020, Kasper received a total of $227.89 in
lodging and hospitality from Emens, Scillia, and RIO Supply, Inc. Kasper ultimately received a
total of $562,21 in lodging and hospitality from Emens, Scillia, and RIO Supply, Inc. during the
2020 calendar year.
On June 18, 2020, Kasper emailed Emens to thank him for the hospitality, and he attached
his resume to the email. Kasper's resume reflected his current employment with the NPWA and
his prior experience with the Downingtown Municipal Water Authority and Pennsylvania
American Water. Kasper had no prior experience in selling water meters or in the sales business.
From June 2020 through mid -August 2020, Kasper continued to work with Scillia and RIO
Supply, Inc. on the water meter replacement project. On July 31, 2020, Kasper approved a purchase
order for 5,000 Neptune Water Meters at a total cost of $545,100. Kasper approved the purchase
order even though the NPWA Board had not yet approved a contract with RIO Supply, Inc. On
August 3, 2020, Kasper emailed Scillia the purchase order.
On August 10, 2020, Kasper emailed Scillia an "RIO Work Agreement" and an "NPWA
2020 Meter Change Project Agreement" that requested changes to the water meter replacement
project. Scillia made the changes requested and emailed the revised documents to Kasper the next
day. The "RIO Work Agreement" detailed that services were to commence on August 11, 2020,
and continue through December 31, 2023.
Because Kasper would be out of the office from August 12, 2020, until mid -September
2020, Regan communicated with Scillia to finalize the contract for the water meter replacement
project in Kasper's absence. On August 18, Regan emailed Scillia with changes that she felt
needed to be made to the RIO Work Agreement and the NPWA 2020 Meter Change Project
Agreement before she presented it to the NPWA Board. The next day, Regan emailed Scillia and
requested a cost estimate to reflect the total agreement for the purchase and installation of 13,000
Neptune Water Meters. On August 20, Scillia emailed Regan an updated quote for the purchase
and installation of 13,000 Neptune Water Meters over three years at a cost of $2,566,600.
On August 24, 2020, Regan submitted a memorandum to the NPWA Board, recommending
that the NPWA Board approve a contract with RIO Supply, Inc. for the purchase and installation
of 13,000 Neptune Water Meters. The next day, the NPWA Board unanimously approved a
contract with RIO Supply, Inc. for the purchase and installation of 13,000 Neptune Water Meters
at a cost of $2,566,600. Kasper had failed to disclose to Regan, NPWA Executive Director
Bellitto, or Members of the NPWA Board that he was seeking employment with RIO Supply, Inc.
In September 2020, Kasper submitted a Capital Asset Request Form for the 2021 capital
budget to the NPWA Chief Financial Officer, The Capital Asset Request Form requested to
change aged water meters as part of year two of the water meter replacement project. Following
review and recommendation for approval by both the NPWA Engineering Committee and the
NPWA Finance Committee, in November 2020 the NPWA Board approved an allocation of
$2,051,000 for the water meter replacement project as part of the 2021 capital budget.
Kasper, 21-034
Page 52
On November 13, 2020, Kasper informed NPWA Executive Director Bellitto that he would
be resigning from his position as the NPWA Customer Service Manager and that he had accepted
a position as a Territorial Sales Manager for RIO Supply, Inc. Kasper asked that Bellitto keep his
employment opportunity with RIO Supply, Inc. confidential.
Kasper and RIO Supply, Inc. had a verbal agreement that Kasper would perform work for
RIO Supply, Inc. as an independent contractor. On November 17, 2020, Kasper filed documents
with the Pennsylvania Department of State Bureau of Corporations and Charitable Organizations
to form a limited liability company under the name "WK Sales & Consulting LLC." On December
28, 2020, Kasper provided RIO Supply, Inc. Vice President Emens with his business's name and
other information relevant to his independent contractor relationship with RIO Supply, Inc.
Kasper's employment as the NPWA Customer Service Manager ended on January 8, 2021,
and he began working as an independent contractor to RIO Supply, Inc. on January 15, 2021.
Kasper was assigned the northeast Pennsylvania sales territory. RIO Supply, Inc. paid Kasper a
weekly "fixed consultant fee" of $1,692.31 and a sales commission. In 2021, Kasper received
compensation totaling $92,117.74 from RIO Supply, Inc. Kasper did not receive any commission
payments from RIO Supply, Inc. in relation to the water meter replacement project.
From January 22, 2021, to April 30, 2021, Kasper was a part-time NPWA employee. The
NPWA hired Kasper as a part-time employee to train newly -hired NPWA Customer Service
Manager Christopher Norris ("Norris").
On February 16, 2021, Kasper received a sales email from Neptune Technology Group at
his NPWA email address. The sales email contained product information pertaining to new
Neptune Mach 10 Ultrasonic water meters. On February 18, 2021, Kasper forwarded the sales
email to Norris. After Norris emailed Kasper with regard to the possibility of ordering a Neptune
Mach 10 Ultrasonic water meter, Kasper informed Norris that RIO Supply, Inc. Territorial Sales
Manager Scillia might be able to get one for him.
Approximately two weeks later, Norris emailed Scillia to request a "spec sheet" and quote
for a Neptune Mach 10 Ultrasonic water meter. On March 8, 2021, Norris emailed Scillia and
reminded him to send Norris the requested quote. Norris also emailed Neptune Technology Group
Territory Manager Crocetti to obtain product specifications for a Neptune Mach 10 Ultrasonic
water meter. The NPWA subsequently purchased a Neptune Mach 10 Ultrasonic water meter from
RIO Supply, Inc. for $10,500.00. RIO Supply, Inc. made a profit of $5,170.00 from the sale of
the Mach 10 Ultrasonic water meter to the NPWA, and Scillia received a sales commission of
$2,585.00.
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:
Kasper, 21-034
Page 53
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 when Kasper participated in the
process for North Penn Water Authority to enter into
a contract with RIO Supply, Inc. at a time when he
was negotiating future employment with RIO
Supply, Inc. and accepting travel, lodging, and
hospitality from RIO Supply, Inc.;
b. That a violation of Section 1103(g) of the Public
Official and Employee Ethics Act, 65 Pa.C.S. §
1103(g), occurred when Kasper represented RIO
Supply, Inc. in sales efforts with North Penn Water
Authority within one year of leaving employment
with North Penn Water Authority; and
C. That the remaining allegations be nolle prossed.
4. Kasper agrees to make payment in the amount of $17,644.82 in
settlement of this matter payable to the Commonwealth of
Pennsylvania, and forwarded to the Pennsylvania State Ethics
Commission, within sixty (60) days of the issuance of the final
adjudication in this matter.
5. In the event he has not already done so, Kasper agrees to file
complete and accurate Statements of Financial Interests with North
Penn Water Authority, through the Pennsylvania State Ethics
Commission, for calendar years 2017 through 2020 within thirty
(30) days of the issuance of the final adjudication in this matter.
6. Kasper agrees to not accept any reimbursement, compensation or
other payment from North Penn Water Authority 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 Kasper'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.
Ka_ spec, 21-034
Page 54
a. Kasper has been advised that as a matter of course,
all orders from the Commission are provided to the
Attorney General, albeit without any specific
recommendations pursuant to paragraph 7 above.
b. Kasper has been advised that all orders become
public records and may be acted upon by law
enforcement as they deem appropriate.
C. The non -referral language contained in this
paragraph is considered an essential part of the
negotiated consent agreement.
Consent Agreement, at 1-2.
In considering the Consent Agreement, we accept the parties' recommendation for a
finding that a violation of Section 1103(a) of the Ethics Act occurred when Kasper participated in
the process for the NPWA to enter into a contract with RIO Supply, Inc. at a time when he was
negotiating future employment with RIO Supply, Inc. and accepting travel, lodging, and
hospitality from RIO Supply, Inc.
In late 2018, Kasper participated in discussions with NPWA executives regarding the need
to replace 13,000 NPWA residential water meters. From approximately February 2019 through
September 2020, Kasper repeatedly used the authority of his public position as the NPWA
Customer Service Manager in relation to the NPWA water meter replacement project. Kasper's
uses of the authority of his public position included: (1) participating in the decision -malting
process for replacing existing Sensus water meters with Neptune Water Meters that could be
purchased through the Commonwealth's cooperative purchasing program from only RIO Supply,
Inc.; (2) obtaining quotes from RIO Supply, Inc. for the purchase of Neptune Water Meters; (3)
requesting approval to have the water meter replacement project included in the NPWA capital
budget; (4) approving and submitting to RIO Supply, Inc. a purchase order for 5,000 Neptune
Water Meters even though the NPWA Board had not yet approved a contract with RIO Supply,
Inc.; and (5) working with RIO Supply, Inc. on an "RIO Work Agreement" and an "NPWA 2020
Meter Change Project Agreement" for the water meter replacement project. Kasper's uses of the
authority of his public position facilitated the execution of a contract between the NPWA and RIO
Supply, Inc. for the purchase and installation of 13,000 Neptune Water Meters at a cost of
$2,566,600. At the same time that Kasper was repeatedly using the authority of his public position
with respect to the NPWA's purchase of Neptune Water Meters from RIO Supply, Inc., he was
engaging in communications with RIO Supply, Inc. in order to obtain his future position as a
Territorial Sales Manager for RIO Supply, Inc., and he was also accepting travel, lodging, and
hospitality from RIO Supply, Inc.
Based upon the Stipulated Findings and Consent Agreement, we hold that a violation of
Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Kasper participated in the
process for the NPWA to enter into a contract with RIO Supply, Inc. at a time when he was
Kaspei, 21-034
Page 5 5
negotiating future employment with RIO Supply, Inc. and accepting travel, lodging, and
hospitality from RIO Supply, Inc.
We accept the parties' recommendation for a finding that a violation of Section 1103(g) of
the Ethics Act occurred when Kasper represented RIO Supply, Inc. in sales efforts with the NPWA
within one year of leaving employment with the NPWA.
When Kasper's employment as the Customer Service Manager for the NPWA terminated
on January 8, 2021, he became a former public employee subject to the post -employment
restrictions of Section 1103(g) of the Ethics Act. Accordingly, pursuant to Section 1103(g) of the
Ethics Act, during the first year following termination of Kasper's employment as the Customer
Service Manager for the NPWA, Kasper was prohibited from "representing" a person — including
but not limited to himself or a business — before the NPWA with promised or actual compensation.2
On February 16, 2021, Kasper received a sales email from Neptune Technology Group that
contained product information pertaining to new Neptune Mach 10 Ultrasonic water meters. On
February 18, 2021, Kasper forwarded the sales email to NPWA Customer Service Manager Norris.
After Norris emailed Kasper with regard to the possibility of ordering a Neptune Mach 10
Ultrasonic water meter, Kasper informed Norris that RIO Supply, Inc. Territorial Sales Manager
Scillia might be able to get one for him. In so doing, Kasper, who was working as an independent
contractor to RIO Supply, Inc. for a weekly "fixed consultant fee" of $1,692.31, represented RIO
Supply, Inc. before the NPWA. RIO Supply, Inc. ultimately sold a Neptune Mach 10 Ultrasonic
water meter to the NPWA for $10,500.00, and RIO Supply, Inc. made a profit of $5,170.00 from
the sale.
Based upon the Stipulated Findings and Consent Agreement, we hold that a violation of
Section 1103(g) of the Ethics Act, 65 Pa.C.S. § 1103(g), occurred when Kasper represented RIO
Supply, Inc. in sales efforts with the NPWA within one year of leaving employment with the
NPWA.
As part of the Consent Agreement, Kasper has agreed to make payment in the amount of
$17,644.82 payable to the Commonwealth of Pennsylvania and forwarded to this Commission
within sixty (60) days of the issuance of the final adjudication in this matter. Kasper has agreed
to not accept any reimbursement, compensation or other payment from the NPWA representing a
full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has
not already done so, Kasper has agreed to file complete and accurate SFIs for calendar years 2017
through 2020 with the NPWA, through this Commission, within thirty (30) days of the issuance
of the final adjudication in this matter.
2 We acknowledge that after Kasper terminated his employment as the NPWA Customer Service Manager on January
8, 2021, he returned to employment with the NPWA on a part-time basis on ,January 22, 2021, to train Norris, the
newly -hired NPWA Customer Service Manager. However, based upon the Consent Agreement, it would appear the
parties are in agreement that Kasper did not return to a position with the NPWA in which he would once again have
been considered a public employee and that as such, the restrictions of Section I I03(g) remained applicable to Kasper
despite his reemployment with the NPWA. Cf., Confidential Opinion, 93-005; Confidential Opinion, 97-008; Long,
Opinions 97-010 and 97-01 O-R; McGlathery, Opinion 00-004.
Kasper, 21-034
Page 56
We agree that the aforesaid recommendations are appropriate, including the
recommendation that Kasper file complete and accurate SFIs for calendar years 2017 through
2020, notwithstanding the nolle pros as to the allegation regarding Kasper's failure to file SFIs.
Accordingly, per the Consent Agreement of the parties, Kasper is directed to make payment
in the amount of $17,644.82 payable to the Commonwealth of Pennsylvania and forwarded to this
Commission by no later than the sixtieth (60th) day after the mailing date of this adjudication and
Order.
Kasper is directed to not accept any reimbursement, compensation or other payment from
the NPWA representing a full or partial reimbursement of the amount paid in settlement of this
matter.
To the extent he has not already done so, Kasper is directed to file complete and accurate
SFIs for calendar years 2017 through 2020 with the NPWA, through this Commission, by no later
than the thirtieth (301h) day after the mailing date of this adjudication and Order.
Compliance with the foregoing will result in the closing of this case with no further action
by this Commission. Noncompliance will result in the institution of an order enforcement action.
IV. CONCLUSIONS OF LAW:
I. As the Customer Service Manager for North Penn Water Authority from April 27, 2015,
until January 8, 2021, Respondent William Kasper ("Kasper") was a public employee
subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65
Pa.C.S. § 1101 et M.
2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when
Kasper participated in the process for North Pe Water Authority to enter into a contract
with RIO Supply, Inc. at a time when he was negotiating future employment with RIO
Supply, Inc. and accepting travel, lodging, and hospitality from RIO Supply, Inc.
3. A violation of Section 1103(g) of the Ethics Act, 65 Pa.C.S. § 1103(g), occurred when
Kasper represented RIO Supply, Inc. in sales efforts with North Penn Water Authority
within one year of leaving employment with North Penn Water Authority.
In Re: William Kasper, File Docket: 21-034
Respondent Date Decided: 4/12/23
Date Mailed: 4/14/23
ORDER NO. 1819
A violation of Section 1103(a) of the Public Official and Employee Ethics Act ("Ethics
Act"), 65 Pa.C.S. § 1103(a), occurred when William Kasper ("Kasper"), as the Customer
Service Manager for North Penn Water Authority, participated in the process for North
Penn Water Authority to enter into a contract with RIO Supply, Inc. at a time when he was
negotiating future employment with RIO Supply, Inc. and accepting travel, lodging, and
hospitality from RIO Supply, Inc.
2. A violation of Section 1103(g) of the Ethics Act, 65 Pa.C.S. § 1103(g), occurred when
Kasper represented RIO Supply, Inc. in sales efforts with North Penn Water Authority
within one year of leaving employment with North Penn Water Authority.
Per the Consent Agreement of the parties, Kasper is directed to make payment in the
amount of $17,644.82 payable to the Commonwealth of Pennsylvania and forwarded to
the Pennsylvania State Ethics Commission by no later than the sixtieth (601h) day after the
mailing date of this Order.
4. Kasper is directed to not accept any reimbursement, compensation or other payment from
North Penn Water Authority representing a full or partial reimbursement of the amount
paid in settlement of this matter.
5. To the extent he has not already done so, Kasper is directed to file complete and accurate
Statements of Financial Interests for calendar years 2017 through 2020 with North Penn
Water Authority, through the Pennsylvania State Ethics Commission, by no later than the
thirtieth (301h) day after the mailing date of this Order.
6. Compliance with paragraphs 3, 4, and 5 of this Order will result in the closing of this case
with no further action by this Commission.
Non-compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
LLVLL�11 r1M_,.,_
Shelley Y. S s, Chair