Loading...
HomeMy WebLinkAbout1819 KasperPHONE-: 717-783-1610 TOLL FREE: 1-800-,932--0936 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