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HomeMy WebLinkAbout1814 Traydie. rtu PHONE: 7,17-783.-1610 STATE ETHICS COMMISSION TOLL FREE: 1-800..932.-0936 FINANCE BUILDING 613 NOKTFI s,rREET, ROOM 309 FiARRISBURG, PA 17120-0400 In Re: William Tray, File Docket: 22-004 Respondent Order No, 1814 Date Decided: 12/14/22 Date Mailed: 12/16/22 Before: Shelley Y. Simms, Acting Chair Rhonda Hill Wilson Paul E. Parsells David L. Reddecliff This is a final adjudication of the State Ethics Commission. 17ACSIMILE. 717-787.-0806 WEBSITE: wwge ft ,p o Procedurally, the Investigative Division of the State Ethics Commission conducted an investigation regarding possible violation(s) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et 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. 1. ALLEGATIONS: That William Tray, a public official/public employee in his capacity as a Member and Vice -Chairperson of the Upper Frederick Township Board of Supervisors, violated Sections 1103(a), 1103(f), 1104(a), I 104(d), 1105(a), 1105(b)(5), 1105(b)(8), and 1105(b)(9) of the State Ethics Act (Act 93 of 1999): (1) When he and/or a business he is associated with, Hidden Creek Stock Farm, negotiated and entered into a contract/agreement in excess of $500 to sell a Shaker Buddy XL30 Box Screener for $15,000 to Upper Frederick Township without an open and public process; (2) When he used the authority of his public position by voting to approve the 2021 Upper Frederick Township budget which included dedicated Township funds to purchase said Shaker Buddy and when he seconded a motion to approve the bill list that included the payment to a business he is associated with for said Shaker Buddy, Tray, 22-004 Page 2 resulting in a pecuniary benefit to himself and/or Hidden Creek Stock Farm; (3) When he failed to file Statements of Financial Interests for calendar years 2018 and 2019 with Upper Frederick Township; (4) When he filed a deficient Statement of Financial Interests for calendar year 2017 by failing to include income he received from Upper Frederick Township, his employment with Hidden Creek Stock Farm, and his ownership of Hidden Creek Stock Farm; (5) When he filed a deficient Statement of Financial Interests for calendar year 2020 by listing the incorrect filing year and by failing to include income he received from Upper Frederick Township, his employment with Hidden Creek Stock Farm, and his ownership of Hidden Creek Stock Farm; and (6) When he filed a deficient Statement of Financial Interests for calendar year 2021 by failing to include his employment with and ownership of Hidden Creek Stock Farm. II. FINDINGS: William Tray ("Tray") has served as an Upper Frederick Township ("Township") Supervisor since January 4, 2016. a. The Township is a Second Class Township governed by a three -Member Board of Supervisors ("Board of Supervisors"). b. From 2020 through early 2021, the Board of Supervisors consisted of Tray, Troy Armstrong ("Armstrong"), and Sean Frisco ("Frisco'). Armstrong simultaneously was employed by the Township as a laborer and mechanic in its Public Works Department. 2. Jacqueline Tallon ("Tallon") served as the Township Manager from June 2015 until her retirement on September 30, 2021. 2. Tray and his sister, Stacy David, each own 50% of Hidden Creek Stock Farm, LLC. a. Tray and Stacy David acquired ownership of Hidden Creek Stock Farm, LLC from their mother, Susan Dorman (a.k.a. Susan Tray). b. Tray was not a W-2 employee of Hidden Creek Stock Farm. Articles of Incorporation for Hidden Creek Stock Farm, Inc. were filed with the Pennsylvania Department of State, Corporations Bureau on July 17, 1989. Tray,22-004 Page 3 a. Entity number 1517064 was assigned by the Pennsylvania Department of State, Corporations Bureau to Hidden Creek Stock Farm, Inc. b. Susan C. Tray is listed as the sole incorporator. 4. On July 6, 2021, Stacy David filed Limited Liability Company documents with the Pennsylvania Department of State, Corporations Bureau for Hidden Creek Stock Farm, LLC. a. Entity number 4053933 was assigned by the Pennsylvania Department of State, Corporations Bureau to Hidden Creek Stock Farm, LLC. b. The listed business address was 3237 Salford Station Road, Perkiomenville, PA 18074. C. Listed LLC Members are Stacy David and Tray. 5. Hidden Creek Stock Farm, LLC ("Hidden Creek Stock Farm") began scaling back operations in October 2017. a. Since 2017, Tray has deposited his own funds into Hidden Creek Stock Farm's checking account and has been selling off equipment. Operations ceased in October 2017 after the last pigs were sold. 6. Hidden Creek Stock Farm's equipment inventory included a 1995 Shaker Buddy, model XL30 (the "Shaker Buddy"). a. This unit was manufactured by S.B. Industries, Inc., 22 Fifth Street, Taunton, MA 02780 with a serial number of 3095040145. b. This piece of equipment is used in the construction, mining, and agricultural industries to separate aggregate materials such as stone, dirt, etc. 7. Hidden Creek Stock Farm purchased the Shaker Buddy used from Highland Hill Farm, P.O. Box 517, Fountainville, PA 18923 on September 2, 2008, for $15,000. a. Hidden Creek Stock Farm retained ownership of the Shaker Buddy until its sale to the Township on January 4, 2021. 8. Hidden Creek Stock Farm used the Shaker Buddy on a limited basis from September 2, 2008 until approximately mid-2019. a. The Township Public Works Department ("Public Works Department") generated a large amount of road millings from resurfacing projects on Clover Lane and Colonial Road during the 2019 paving season. Tay, 22-004 Page 4 b. Township Public Works Director Steve Heller ("Heiler") wanted to recycle some of the millings for future road projects and walking trails at Bob Wayland Memorial Park in the Township. 9. In the spring of 2019, Heller had a discussion with Tray about recycling the road millings. a. During the conversation, Tray informed Heller that he was getting out of the farming business and offered the Township the use of his Shaker Buddy to try at no cost. b. This offer did not go before the Board of Supervisors for Township approval. The Shaker Buddy was loaned to the Township for its use at this time at no cost or obligation to the Township. 10. Heller accepted Tray's offer, and the Shaker Buddy was transported by Township employees from Hidden Creek Stock farm. to Bob Wayland Memorial Park for Township use. a. The Shaker Buddy was in operating condition when Tray lent it to the Township. b. Heller estimated that the Township spent approximately $300 replacing some hydraulic hoses which started leaking during Township use. The Township handled the repairs at no cost to Tray since the hoses broke during Township use. 11. The Township did not pay Tray and/or Hidden Creek Stock Farm for the use of the Shaker Buddy. 12. Tray and Heller had several conversations about the Township's continued use of the Shaker Buddy. a. Heller expressed interest in purchasing such a piece of equipment for Township use to Tray during a conversation they had at the Township building around July or August 2020. 13. During that conversation, Tray advised Heller that Tray was selling off Hidden Creek Stock Farm equipment and offered the Shaker Buddy up for sale. a. Tray informed Heller that he would sell his Shaker Buddy to the Township for $15,000. b. This was the same amount that Tray originally purchased it for on September 2, 2008. Try, 22-004 Page 5 14. Heller told Tray that he would be interested in purchasing the Shaker Buddy but would have to get the funds budgeted for it. a. This conversation occurred around the same time Heller was preparing his Public Works Department "wish list" for the 2021 calendar year. 15. The Board of Supervisors begins annual budget discussions around September each year with final budget approval for the following calendar year occurring each December. a. Department heads prepare their budget "wish lists" to present to the Board of Supervisors for consideration each August or September. b. The Board of Supervisors works with administrative staff to prepare the annual budgets. 16. Heller was responsible for preparing the annual "wish list" for the Public Works Department. a. Annual Public Works Department "wish lists" include requested equipment purchases and additional personnel and the estimated cost of each. b. Heller and/or other Public Works Department employees obtain these estimated costs at his direction. 17. Around August or September 2020, Heller prepared his "wish list" for the Public Works Department for the 2021 calendar year. a. Heller's "wish list" for 2021 included a request to purchase a Shaker Buddy Box Screener at a cost of $15,000. b. Heller's "wish list" request for the Shaker Buddy Box Screener did not include any reference to it being obtained from Tray. C. The Township Manager and the Board of Supervisors knew the Shaker Buddy was already in the possession of the Township and that it was being purchased from Hidden Creek Stock Farm and Tray. 18. Heller's 2021 Public Works. Purchases (Wish List) included the following items: 1. Full-time employee (beginning 2021 salary of $18.00 hr.) 2. Shaker Buddy - Cost of $15,000 3. Bomag Vibratory tamper BT60 - Cost of $3090 (10% CoStar) 4. Indego Boom Compactor IHC50 - Cost of $5535 (10% CoStar) 5. Versa Cut 60 Plasma Cutter - Cost $749.99 (2yr extended plan $169.98) total = $919.97 Grand Total Items 2 -5 = $24,534.97 Tray, 22-004 Page 6 19. Heller typically obtains quotes for items contained in his annual Public Works Department "wish list" from approved COSTARS vendors and/or internet prices for any items for which there are no existing approved COSTARS vendors. a. COSTARS is the Commonwealth of Pennsylvania's cooperative purchasing program that serves as a conduit through which registered and 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. 20. Heller did not seek any bids, quotes or proposals for the cost of a Shaker Buddy to complete his 2021 Public Works Department "wish list." a. Heller searched COSTARS vendors for price quotes for the other non -personnel items on his "wish list." b. Heller relied on Tray's verbal quote to him of $15,000 as the basis for the amount for a Shaker Buddy included in the "wish list." 21. No Township representative obtained any appraisal or market valuation for the Shaker Buddy that Tray had loaned to the Township at that time. 22. Heller's 2021 calendar year "wish list" items were reviewed and considered by the Board of Supervisors during budget meetings held during the fall of 2020. a. Tray, in his official capacity as a Member of the Board of Supervisors, participated in the preparation process for the 2021 budget. b. Budget meetings were held on or about October 1, 2020, October 22, 2020, and November 5, 2020. 23. Tray participated in actions taken by the Board of Supervisors during its November 12, 2020, meeting to approve the tentative 2021 budget as presented. 24. The Township 2021 budget (Resolution No. 2020-19) was approved at the December 10, 2020, meeting of the Board of Supervisors. a. Chairman Armstrong made the motion to approve the 2021 budget, which was seconded by Vice -Chairman Tray. b. A review of the Township 2021 budget lists "Capital Purch — Major Mach & Eq" with the approved budget of $23,615. C. There was a separate line item in the 2021 budget identified as "Small Tools & Tray, 22-004 Page 7 Minor Equipment" with the budgeted amount of $10,000. 1, The Versa Cut 60 Plasma Cutter had the handwritten notation "small tools 920.00." 2. Heller's "wish list" request for a Versa Cut 60 Plasma Cutter would have come out of this budgeted amount based on the written notation. 25. Handwritten notations by the Township Manager on the "wish list" next to the Shaker Buddy, Bomag Vibratory tamper BT60, and Indego Boom Compactor IHC50 stated "Cap pur" for capital purchase budgeting. a. The cost of these three items totals $23,615. b. This was the identical total in the capital purchase portion of the Public Works Department budget for 2021. 26. Purchase of the Shaker Buddy from Tray was approved during the Board of Supervisors Reorganization Meeting held on January 4, 2021. 27. On January 4, 2021, Heller and Armstrong obtained quotes online for a Shaker Buddy. a. This was done for the sole purpose of justifying the purchase of the Shaker Buddy from Tray d/b/a Hidden Creek Stock Farm. 28. Quotes were obtained through online searches from Soroka Equipment and EZ-Screen. a. The Soroka Equipment quote of $16,500 was for a used Shaker Buddy XL30, the same model that Tray was selling. b. The EZ-Screen 1000xl Soil Screener quote of $29,900 was for a new unit. 1. Heller obtained a quote for a new unit for comparison purposes of new versus used. C. Both quotes were obtained through publicly available information online. 29. Minutes from the Board of Supervisors' January 4, 2021, meeting state the following three quotes were received for a "Shaker Buddy": Hidden Creek. Stock Farm - $15,000 Soroka Equipment - $16,500 EZ-Screen 1000xl - $29,900 30. Quotes obtained from Soroka Equipment and EZ-Screen included narrative product descriptions. Tway, 22-004 Page 8 a. No quote/product description was received from Hidden Creek Stock Farm. b. The Soroka Equipment quote dated January 4, 2021, was developed from an online search. The quote is for a used Shaker Buddy Box Screener XL30 with a sale price of $16,500 and lists the following description/specifications: c/w hyd. Drive Vibratory 42" wide X 80" double deck, 36" end discharge conveyor, pintle hitch, tandem axle chassis with singles, 1,400 hrs., just off job worked fine, extra screens, Serial# I S9TS 1124RI 132075 / 30940. 2. Soroka Equipment had this machine available for sale since February 4, 2017. C. The EZ-Screen 1000xI Soil Screener quote dated January 4, 2021, was also from an online search. I. This quote was for a new piece of equipment for the sale price of $29,900 with the following listed description/specifications: EZ one -person operation; Frame is constructed of structural, tube steel which reduces vibration, decreasing susceptibility to cracks and structural failure that is common with C-channel construction found on inexpensive screeners; All EZ-Screen surfaces are sandblasted, then treated with a baked -on powder coat finish; Loading bucket size range is up to an 8' (2.44m) wide bucket. Matched to work with 1/2 to 1 1/4 yard loaders. Inside access for bucket 9'4" (2.84m); Feed height at hopper 8' 3" (2.52m) - Double deck 6' x 5' Screen Box with end tensioned screens. Hundreds of screen combinations available - KOHLERTM KD-440 single cylinder air-cooled diesel engine, 10-HP with low and high temperature shut down, hour meter and electric start is standard (Also available with Electric Drive) Fully enclosed, lockable engine compartment and starter panel - EXIDETM "AGM" battery for long life in a vbratoiy environment Patented non -hydraulic EZ-Kinetic Screen Drive - Dual -stage air filter system with pre -cleaner Tow hitch has safety chains, 7,000 lb. (3175.15kg) capacity jack, break- away controller and battery and can be equipped with either 3" (7.62cm) lunette ring with 2-5/16" (5.87cm) ball hitch option available - Sealed wiring harness with lights for legal towing 6,000 lb. (2721.55kg) capacity axle on rear with EZ Screen exclusive hand activated rear pivoting assembly with electric brakes - 225/75RI5 "E" range 8 ply trailer tires plus detachable mud flaps Tom, 22-004 Page 9 High-speed pre -greased hub set - Overall length: 13' 3-3/4" with tongue folded - Overall width: 5' 8" (1.72m) - Overall height: 8' 3" (2.52m) - Weight at tongue: 1,760 lb. (798.32kg) - Overall weight: 5,462 lb. (2477.52kg) 31. During the Board of Supervisors' January 4, 2021, meeting, Chairman Frisco made the motion, seconded by Supervisor Armstrong, to approve the purchase of the "Shaker Buddy" from Hidden Creek Stock Farm for $15,000. a. Meeting minutes indicate Vice -Chairman Tray was present for the meeting and signed the meeting minutes along with Chairman Frisco and Supervisor Armstrong. b. Meeting minutes do not state whether Tray participated in this vote. Tray asserts that he announced that he could not vote on the motion because it related to his business. The Board of Supervisors was aware at the time of the vote that the Shaker Buddy was being purchased from Hidden Creek Stock Farm, which was owed in part by Tray. C. Meeting minutes do not reflect that Tray abstained from the vote or made a public statement revealing his ownership of Hidden Creek Stock Farm. However, Tray asserts that he verbally announced that he could not vote, which is not accurately reflected in the minutes. 32. Township records include an invoice from Hidden Creek Stock Farm, 3237 Salford Station Road, Perkiomenville, PA 18074 (Invoice #2999), dated January 4, 2021, made out to the Township, in the amount of $15,000 for a Buddy Box Screener at the cost of $15,000. a. The invoice was stamped received by the Township on January 4, 2021, with a handwritten notation on the bottom, "Paid 01/04/21." 33. Township check number 30249 in the amount of $15,000 was issued to Hidden Creek Stock Farm on January 4, 2021, for Tray's Shaker Buddy. a. The front side of this check was signed by Supervisor Armstrong and Township Manager Tallon. b. This check was endorsed: "Hidden Creek Stock Farm, LLC, Deposit # 1001536789." C. The check was marked deposited on 01/05/2021 at Harleysville Bank, Sumneytown Branch. 34. This check was written on the same date that the Board of Supervisors voted to approve the purchase of the Shaker Buddy. T�ay, 22-004 Page 10 a. The Board of Supervisors did not approve the payment for this piece of equipment until January 14, 2021. b. This approval did not occur until nine days after the actual check was deposited. C. Procedurally, checks are not usually issued prior to approval by the Board of Supervisors. 35. The $15,000 payment to Hidden Creek Stock Farm was included as part of the list of bills to be paid during the Board of Supervisors' January 14, 2021, meeting. a. Bill lists are provided to the Supervisors for review at least one day prior to their regular meeting. b. Bill lists are voted on in their entirety by a single motion. 36. Minutes from the Board of Supervisors' January 14, 2021, meeting reflect that Tray seconded and voted to approve the motion approving the bill list which included the $15,000 payment to Hidden Creek Stock Farm. a. The meeting minutes were signed by Chairman Frisco and Supervisor Armstrong. b. The minutes were not signed by Vice -Chairman Tray, although he was present at the meeting. c. The minutes do not indicate that Tray made a public statement revealing his ownership of Hidden Creek Stock Farm. 37. In February 2022, Tray had an email exchange with Township Manager Tracy Tackett ("Tackett") regarding missing Statement of Financial Interests forms and his sale of the Shaker Buddy to the Township. That email exchange was as follows: a. February 7, 2022, at 3:03 p.m., Tray to Tackett: "Don't understand why the financials are missing? I have no emails about the shaker buddy. The township borrowed it for approximately 2 years ago from hidden creek stock farm, at no charge, And decided wanted to buy it." b. February 7, 2022, at 3:06 p.m., Tackett to Tray: "Do you have any documentation that shows that the farm is separate from you, or how you might be connected to it? Thanks, Tracy." C. February 7, 2022, at 4:43 p.m., Tray's response "My sister and I own it. I do not have anything that separates me from the farm. I wouldn't have sold it to township if I knew it would be an issue. Could have gotten $20,000 for the Shaker Buddy but kept my word to Steve Heller for $15,000. Township had first dibs and was in Tray, 22-004 Page 11 possession of the machine 2 years prior to purchase. Bill Tray." 38. On March 15, 2022, the State Ethics Commission received an estimated value for a 1995 Shaker Buddy Box Screener from Chad Hollinger of J.L. Hollinger & Sons Equipment Sales, 1617 Lebanon Road, P.O. Box 309, Manheim, PA. a. The estimated value was obtained to determine the market value for the Shaker Buddy that Tray sold to the Township. b. Chad Hollinger was provided with photographs of Tray's machine and make, model, serial number and running hours to estimate its value. C. Hollinger estimated the retail auction value of Tray's machine to be approximately $10,000. d. This price was $5,000 less than what Tray sold his Shaker Buddy to the Township for. 39. Tray utilized the $15,000 he received from the sale of the Shaker Buddy to pay real estate taxes and other personal and farm debts in January 2021. a. Tray had signature authority on the business checking account for Hidden Creek Stock Farm maintained at Harleysville Bank. b. Tray regularly deposited funds from his checking account with Merck, Sharp & Dohme Federal Credit Union into the Hidden Creek Stock Farris. account. Tray made approximately 104 deposits into the account between January 2, 2020, and March 4, 2022. 2. During this same timeframe, Susan C. Dorman issued approximately eight checks from her Harleysville Bank account to the Hidden Creek Stock Farm account. These deposits were made to pay farm expenses in addition to revenue generated from the sale of the Shaker Buddy. 40. Real estate tax bills for Township properties within the Boyertown Area School District were mailed to property owners on or about July 1, 2020. a. Tax bills mailed included bill number 1276 for 607 Neiffer Road, Schwenksville, PA 19473 in the names of William J. Tray, Tami L. Tray and Stacey David, and bill number 527 for 3237 Salford Station Road, Perkiomenville, PA 18074, in the name of Hidden Creek Stock Farm, LLC. b. Those tax bills included the following amounts due during the discount, flat and Tr�ay, 22-004 Page 12 penalty period: Property Location Tax Bill # Discount Flat Penalty 607 Neiffer Road, Schwenksville, PA 1276 $3,11895 $3,182.60 $3,500.86 3232 Salford Station Road, Perkiomenville, PA 527 $4,551,92 $4,644.82 $5,109.30 41. Tray did not have adequate fiends in the Hidden Creek Stock Farm account to pay the tax bills prior to the sale of his Shaker Buddy to the Township on January 4, 2021. 42. Account records indicate that three checks totaling $8,610.16, dated December 29, 2020, December 30, 2020, and December 31, 2020, were issued to Jennifer Brown, Tax Collector. a. These checks were not posted to the account until January 14, 2021, nine days after the $15,000 from the sale of the Shaker Buddy was received. THE FOLLOWING FINDINGS RELATE TO TRAY'S FAILURE TO FILE STATEMENT OF FINANCIAL INTERESTS FORMS AND/OR FILING OF DEFICIENT STATEMENT OF FINANCIAL INTERESTS FORMS. 43. Tray, in his official capacity as a Member of the Board of Supervisors, was required by May I" of each year to complete a Statement of Financial Interests ("SFI") form reporting financial interests for the prior calendar year. 44. Tray was annually provided with a blank SFI form to complete by the Township Manager. a. Although Tray recognizes that it is not a defense to have not been provided with forms by the Township Manager, he asserts that he was not provided with forms for calendar years 2018 and 2019. 45. Township records include SFIs filed by Tray for calendar years 2017, 2020, and 2021. 46. SFI forms on file with the Township include the following filings by Tray: a. Calendar Year: 2021 Dated: February 9, 2022 on form SEC-1 (Rev. 01/22) Position: Supervisor Occupation: Truck Driver Creditors: None Direct/Indirect Income: Whitetail Disposal; Upper Frederick Twp. Office, Directorship, or Employment in any Business: No Response All Other Financial Interests: None b. Calendar Year: 2020 Dated: 03/05/2021 on form SEC-1 (Rev. 01/21) Tray, 22-004 Page 13 Position: Supervisor Occupation: Truck Driver Creditors: None Direct/Indirect Income: Whitetail Disposal All Financial Interests: None C. Calendar Year: 2019 Non -Filer d. Calendar Year: 2018 Non -Filer C. Calendar Year: 2017 Dated: 01/23/2018 on form SEC-1 REV, 01/18 Position: Supervisor Occupation: Farmer Creditors: None Direct/Indirect Income: Tami Tray (wife) All Financial Interests: None 47. Tray failed to file SFI forms for the 2018 and 2019 calendar years by May 1, 2019, and May 1, 2020, respectively. 48. Tray failed to report his ownership interest in Hidden Creek Stock Farm in Box # 14 on his SFIs fled for the 2017, 2020, and 2021 calendar years. 49. Tray failed to report the Township as a direct/indirect source of income in excess of $1,3 00 in Box # 10 on SFIs filed for the 2017 and 2020 calendar years. 50. Tray listed the wrong calendar year in Box # 7 dated March 5, 2021, intended for the 2020 calendar year. 51. W-2 Wage and Tax Statements on file with the Township reflect that Tray received the following wages as a Supervisor while failing to have filed or failing to have properly filed SFI forms for calendar years 2017 through 2021: a. Year Total Income Earned 2021 $1,975.00 2020 $1,875.00 2019 $2,182.50 2018 $3,030.00 2017 $2,287.50 Tway, 22-004 Page 14 III. DISCUSSION: As a Member of the Board of Supervisors of Upper Frederick Township ("Township") since January 4, 2016, Respondent William Tray ("Tray") has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et seq. The allegations are that Tray violated Sections 1103(a), 1103(f), 1104(a), 1104(d), 1105(a), 1105(b)(5), 1105(b)(8), and 1105(b)(9) of the Ethics Act: (1) When he and/or a business he is associated with, Hidden Creek Stock Farm, negotiated and entered into a contract/agreement in excess of $500 to sell a Shaker Buddy XL30 Box Screener for $15,000 to the Township without an open and public process; (2) When he used the authority of his public position by voting to approve the 2021 Township budget which included dedicated Township funds to purchase said Shaker Buddy and when he seconded a motion to approve the bill list that included the payment to a business he is associated with for said Shaker Buddy, resulting in a pecuniary benefit to himself and/or Hidden Creek Stock Farm; (3) When he failed to file Statements of Financial Interests for calendar years 2018 and 2019 with the Township; (4) When he fried a deficient Statement of Financial Interests for calendar year 2017 by failing to include income that he received from the Township, his employment with Hidden Creek Stock Farm, and his ownership of Hidden Creek Stock Farm; (5) When he filed a deficient Statement of Financial Interests for calendar year 2020 by listing the incorrect filing year and by failing to include income that he received from the Township, his employment with Hidden Creek Stock Farm, and his ownership of Hidden Creek Stock Farm; and (6) When he filed a deficient Statement of Financial Interests for calendar year 2021 by failing to include his employment with and ownership of Hidden Creek Stock Farm. Per the Consent Agreement, the Investigative Division, in the exercise of its prosecutorial discretion, has elected to nolle pros the allegations involving Tray's Statements of Financial Interests. We therefore need not address those allegations. 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 Ti�ay, 22-004 Page 15 (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(f) of the Ethics Act imposes certain restrictions as to contracting: § 1103. Restricted activities (f) Contract. No public official or public employee or his spouse or child or any business in which the person or his spouse or child is associated shall enter into any contract valued at $500 or more with the governmental body with which the public official or public employee is associated or any subcontract valued at $500 or more with any person who has been awarded a contract with the governmental body with which the public official or public employee is associated, unless the contract has been awarded through an open and public process, including prior public notice and subsequent public disclosure of all proposals considered and Tray, 22-004 Page 16 contracts awarded. In such a case, the public official or public employee shall not have any supervisory or overall responsibility for the implementation or administration of the contract. Any contract or subcontract made in violation of this subsection shall be voidable by a court of competent jurisdiction if the suit is commenced within 90 days of the making of the contract or subcontract. 65 Pa.C.S. § 1103(f). The term "contract" is defined in the Ethics Act as follows: § 1102. Definitions "Contract." An agreement or arrangement for the acquisition, use or disposal by the Commonwealth or a political subdivision of consulting or other services or of supplies, materials, equipment, land or other personal or real property. The term shall not mean an agreement or arrangement between the State or political subdivision as one party and a public official or public employee as the other party, concerning his expense, reimbursement, salary, wage, retirement or other benefit, tenure or other matters in consideration of his current public employment with the Commonwealth or a political subdivision. 65 Pa.C.S. § 1102. Section 1103(f) of the Ethics Act provides in part that no public official/public employee or his spouse or child or business with which the public official/public employee or his spouse or child is associated may enter into a contract with his governmental body valued at five hundred dollars or more or any subcontract valued at five hundred dollars or more with any person who has been awarded a contract with the governmental body with which the public official/public employee is associated unless the contract is awarded through an open and public process including prior public notice and subsequent public disclosure of all proposals considered and contracts awarded. As noted above, the parties have submitted a Consent Agreement and Stipulation of Findings. The parties' Stipulated Findings are set forth above as the Findings of this Commission. We shall now summarize the relevant facts as contained therein. The Township Board of Supervisors (`Board of Supervisors") consists of three Members. Tray began serving as a Township Supervisor on .January 4, 2016. Tray and his sister, Stacy David, each own 50% of Hidden Creek Stock Farm. Tray and his sister acquired ownership of Hidden Creek Stock Farm from their mother. In October 2017, Hidden Creek Stock Farm ceased operations. At that time, Hidden Creek Stock Farm's inventory Tom, 22-004 Page 17 of equipment included a 1995 Shaker Buddy Box Screener, model XL30 (the "Hidden Creek Stock Farm Shaker Buddy"). A Shaker Buddy Box Screener ("Shaker Buddy") is a piece of equipment used in the construction, mining, and agricultural industries to separate aggregate materials such as stone, dirt, and the like. Hidden Creek Stock Farm had purchased its Shaker Buddy as a used piece of equipment in September 2009 for $15,000. During the Township's 2019 paving season, the Township Public Works Department ("Public Works Department") generated a large amount of road millings from resurfacing projects. In the spring of 2019, Township Public Works Director Steve Heller ("Heller"), who wanted to recycle some of the road millings for future road projects and walking trails at Bob Wayland Memorial Park in the Township, had a conversation with Tray about recycling the road millings. Tray informed Heller that he was getting out of the farming business, and he offered the Township the use of the Hidden Creek Stock Farm Shaker Buddy at no cost. Heller accepted Tray's offer, and the Hidden Creek Stock Farm Shaker Buddy was transported by Township employees from Hidden Creek Stock Farm to Bob Wayland Memorial Park for Township use. The Township did not pay Tray or Hidden Creek Stock Farm for the use of the Hidden Creek Stock Farm Shaker Buddy. Around July or August 2020, Heller expressed to Tray that he was interested in purchasing a piece of equipment like the Hidden Creek Stock Farm Shatter Buddy for Township use. Tray advised Heller that he was selling off Hidden Creek Stock Farm equipment, and he informed Heller that he would sell Hidden Creek Stock Farm's Shaker Buddy to the Township for $15,000. Heller told Tray that he would be interested in purchasing the piece of equipment but would have to get funds budgeted for its purchase. Each year around September the Board of Supervisors begins discussions for the following calendar year's annual budget, with final budget approval occurring in December. In August or September, Department heads prepare their budget "wish lists" to present to the Board of Supervisors for consideration. Heller was responsible for preparing the annual "wish list" for the Public Works Department. Around August or September 2020, Heller prepared his "wish list" for the Public Works Department for the 2021 calendar year. Heller's "wish list" for 2021 included requests to purchase three pieces of major machinery/equipment at a total cost of $23,615, including a Shaker Buddy at a cost of $15,000. Although Heller's "wish list" request for a Shaker Buddy did not include any reference to it being obtained from Tray, the Township Manager and the Board of Supervisors knew that the Hidden Creek Stock Farm Shaker Buddy was already in the possession of the Township and that it would be purchased from Hidden Creek Stock Farm and Tray. 1-teller did not seek any bids, quotes or proposals for the cost of a Shaker Buddy, and he relied on Tray's verbal quote to him of $15,000 as the basis for the cost of the Shaker Buddy included in the "wish list." No Township representative obtained any appraisal or market valuation for Hidden Creek Stock Farm's Shaker Buddy. Heller's "wish list" items were reviewed and considered by the Board of Supervisors at budget meetings held during the fall of 2020. On December 10, 2020, the Board of Supervisors Tray, 22-004 Page 18 approved the 2021 Township budget, which contained a budgeted amount of $23,615 for purchases of major equipment/machinery for the Public Works Department. Tray seconded the motion to approve the 2021 Township budget. On January 4, 2021, Heller and Township Supervisor Troy Armstrong ("Armstrong"), who was also employed as a Township laborer and mechanic in the Public Works Department, obtained quotes online for a Shaker Buddy in order to justify the purchase of Hidden Creek Stock Farm's Shaker Buddy. A quote of $16,500 was obtained for a used Shaker Buddy, and a quote of $29,900 was obtained for a new Shaker Buddy. During the Board of Supervisors' Reorganization Meeting on January 4, 2021, Chairman Sean Frisco made a motion to approve the purchase of the Hidden Creek Stock Farm Shaker Buddy for $15,000. The motion was seconded by Armstrong. Although Tray was present for the meeting, the meeting minutes do not reflect whether he participated in or abstained from the vote that approved the purchase of the Hidden Creek Stock Farm Shaker Buddy. On January 4, 2021, a Township check in the amount of $15,000 was issued to Hidden Creek Stock Farm to purchase its Shaker Buddy. The Township check was issued even though checks are not usually issued prior to being approved by the Board of Supervisors as part of a bill list. At the Board of Supervisors' meeting on January 14, 2021, Tray seconded and voted in favor of a motion to approve a bill list that included the $15,000 payment to Hidden Creek Stock Farm. Tray utilized the $15,000 that he received from the sale of the Hidden Creek Stock Farm Shaker Buddy to pay real estate taxes and other personal and farm debts in January 2021. On March 15, 2022, the State Ethics Commission received an estimated value for a 1995 Shaker Buddy from Chad Hollinger ("Hollinger") of J.L. Hollinger & Sons Equipment Sales, 1617 Lebanon Road, P.O. Box 309, Manheim, Pennsylvania. The estimated value was obtained to determine the market value for the Hidden Creek Stock Farm Shaker Buddy that Tray sold to the Township. Hollinger was provided with photographs of the Hidden Creek Stock Farm Shaker Buddy and the make, model, serial number and running hours of the Hidden Creek Stock Farm Shaker Buddy to estimate its value. Hollinger estimated the retail auction value of the Hidden Creek Stock Farm Shaker Buddy to be approximately $10,000, or $5,000 less than what the Township paid for it. Having highlighted the Stipulated Findings and issues before us, we shall now apply the Ethics Act to determine the proper disposition of this case. The parties' Consent Agreement sets forth a proposed resolution of the allegations as follows: 3. The Investigative Division will recommend the following in relation to the above allegations: a. That a violation of Section 1103(f) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(fj, occurred when Tray and/or a business he is Taay, 22-004 Page 19 associated with, Hidden Creek Stock Farm, negotiated and entered into a contract/agreement in excess of $500 to sell a Shaker Buddy XL30 Box Screener for $15,000 to Upper Frederick Township without an open and public process. b. That a violation of Section 1103(a) of the Public Official and Employee Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Tray voted to approve the 2021 Upper Frederick Township budget which included dedicated Township funds to purchase said Shaker Buddy and when he seconded a motion to approve the bill list that included the payment to a business he is associated with for said Shaker Buddy, resulting in a pecuniary benefit to himself and/or Hidden Creek Stock Farm. C. The remaining allegations be nolle prossed. 4. Tray agrees to make payment in the amount of $5,000.00 in settlement of this matter payable to Upper Frederick Township and forwarded to the Pennsylvania State Ethics Commission. The sum may be paid by monthly payments totaling no less than $200.00, payable to Upper Frederick Township and forwarded to the Pennsylvania State Ethics Commission. The first payment shall be made within thirty (30) days of the issuance of the canal adjudication in this matter. Failure to make monthly payments outlined above will result in enforcement action. 5. In the event he has not already done so, Tray agrees to file complete and accurate Statements of Financial Interests for calendar years 2018 and 2019 and amended Statements of Financial Interests for calendar years 2017, 2020, and 2021 with Upper Frederick Township, through the Pennsylvania State Ethics Commission, within thirty (30) days of the issuance of the final adjudication in this matter. 6. Tray agrees to not accept any reimbursement, compensation or other payment from Upper Frederick Township representing a full or partial reimbursement of the amount paid in settlement of this matter. 7. The Investigative Division will recommend that the State Ethics Commission take no further action in this matter; and make no recommendations to any law enforcement or other authority to take action in this matter. Such, however, does not prohibit the T�ay, 22-004 Page 20 Commission from initiating appropriate enforcement actions in the event of Tray's failure to comply with this agreement or the Commission's order or cooperating with any other authority who may so choose to subpoena the Investigative Division in this matter. a. Tray 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. Tray 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 2-3. In considering the Consent Agreement, we accept the parties' recommendation for a finding that a violation of Section 1103(f) of the Ethics Act occurred in relation to the Township's purchase of Hidden Creek Stock Farm's Shaker Buddy. Hidden Creek Stock Farm is a business with which Tray is associated in his capacity as an owner. The "wish list" that Public Works Director Heller prepared for calendar year 2021 included a request to purchase a Shaker Buddy at a cost of $1.5,000. The Board of Supervisors knew that Iidden Creek Stock Farm's Shaker Buddy was already in the possession of the Township and that it would be purchased from Hidden Creek Stock Farm. No bids, quotes, or proposals for the cost of a Shaker Buddy were sought, and the cost of $15,000 for a Shaker Buddy was based on Tray's offer to sell Hidden Creek Stock Farm's Shaker Buddy to the Township at that price. It is clear that there was no prior public notice that the Township was seeking to enter into a contract with Hidden Creek Stock Farm or any other entity for the purchase of a Shaker Buddy. We hold that a violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when Tray and/or a business with which he is associated, Hidden Creek Stock Farm, negotiated and entered into a contract/agreement in excess of $500 to sell a Shaker Buddy XL30 Box Screener for $15,000 to the Township without an open and public process. We agree with the parties' recommendation for a finding of a violation of Section 1103(a) of the Ethics Act. Tray used the authority of his office as a Township Supervisor when he participated in the Board of Supervisors' approval of the 2021 Township budget that included a budgeted amount of $23,615 to purchase the Hidden Creek Stock Farm Shaker Buddy and other major machinery/equipment for the Public Works Department. Tray further used the authority of his office when he seconded and voted in favor of a motion to approve a bill list that included a $15,000 payment to Hidden Creek Stock Farm for its Shaker Buddy. Tway, 22-004 Page 21 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 Tray voted to approve the 2021 Township budget which included dedicated Township funds to purchase the Hidden Creek Stock Farm Shaker Buddy and when he seconded a motion to approve the bill list that included the payment to a business with which he is associated for said Shaker Buddy, resulting in a pecuniary benefit to himself and/or Hidden Creek Stock Farm. As part of the Consent Agreement, Tray has agreed to make payment in the amount of $5,000.00 payable to the Township by way of monthly payments of no less than $200.00 each, with each such payment to be made payable to the Township and forwarded to this Commission, and with the first such payment to be forwarded to this Commission within thirty (30) days of the issuance of the final adjudication in this matter. Tray has agreed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Tray has agreed to file complete and accurate Statements of Financial Interests for calendar years 2018 and 2019 and amended Statements of Financial Interests for calendar years 2017, 2020, and 2021 with the Township, through this Commission, within thirty (30) days of the issuance of the final adjudication in this matter. We agree that the aforesaid recommendations are appropriate, including the recommendation that Tray file complete and accurate Statements of Financial Interests/amended Statements of Financial Interests as set forth above, notwithstanding the nolle pros as to the allegations regarding Tray's Statements of Financial Interests. Accordingly, per the Consent Agreement of the parties, Tray is directed to make payment in the amount of $5,000.00 payable to Upper Frederick Township by way of monthly payments of no less than $200.00 each, with each such payment to be made payable to Upper Frederick Township and forwarded to this Commission, and with the first such payment to be forwarded to this Commission by no later than the thirtieth (30`h) day after the mailing date of this adjudication and Order. Tray is directed to not accept any reimbursement, compensation or other payment from the Township representing a Rill or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Tray is directed to file complete and accurate Statements of Financial Interests for calendar years 2018 and 2019 and amended Statements of Financial Interests for calendar years 2017, 2020, and 2021 with the Township, 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 fiirther action by this Commission. Noncompliance will result in the institution of an order enforcement action. Tray, 22-004 Page 22 IV. CONCLUSIONS OF LAW: As a Member of the Board of Supervisors of Upper Frederick Township ("Township") since January 9, 2016, William Tray ("Tray") has been a public official subject to the provisions of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1101 et se . 2. A violation of Section 1103(f) of the Ethics Act, 65 Pa.C.S. § 1103(f), occurred when Tray and/or a business with which he is associated, Hidden Creek Stock Farm, negotiated and entered into a contract/agreement in excess of $500 to sell a Shaker Buddy XL30 Box Screener for $15,000 to the Township without an open and public process. 3. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Tray voted to approve the 2021 Township budget which included dedicated Township funds to purchase said Shaker Buddy and when he seconded a motion to approve the bill list that included the payment to a business with which he is associated for said Shaker Buddy, resulting in a pecuniary benefit to himself and/or Hidden Creek Stock Farm. In Re: William Tray, File Docket: 22-004 Respondent Date Decided: 12/14/22 Date Mailed: 12/16/22 ORDER NO. 1814 A violation of Section 1103(f) of the Public Official and Employee Ethics Act ("Ethics Act"), 65 Pa.C.S. § 1103(f), occurred when William Tray ("Tray") — who is a Member of the Board of Supervisors of Upper Frederick Township ("Township") — and/or a business with which he is associated, Hidden Creek Stock Farm, negotiated and entered into a contract/agreement in excess of $500 to sell a Shaker Buddy XL30 Box Screener for $15,000 to the Township without an open and public process. 2. A violation of Section 1103(a) of the Ethics Act, 65 Pa.C.S. § 1103(a), occurred when Tray voted to approve the 2021 Township budget which included dedicated Township funds to purchase said Shaker Buddy and when he seconded a motion to approve the bill list that included the payment to a business with which he is associated for said Shaker Buddy, resulting in a pecuniary benefit to himself and/or Hidden Creek Stock Farm. Per the Consent Agreement of the parties, Tray is directed to make payment in the amount of$5,000.00 payable to Upper Frederick Township by way of monthly payments of no less than $200.00 each, with each such payment to be made payable to Upper Frederick Township and forwarded to the Pennsylvania State Ethics Commission, and with the first such payment to be forwarded to the Pennsylvania State Ethics Commission by no later than the thirtieth (30'h) day after the mailing date of this Order. 4. Per the Consent Agreement of the parties, Tray is directed to not accept any reimbursement, compensation or other payment from the Township representing a full or partial reimbursement of the amount paid in settlement of this matter. To the extent he has not already done so, Tray is directed to file complete and accurate Statements of Financial Interests for calendar years 2018 and 2019 and amended Statements of Financial Interests for calendar years 2017, 2020, and 2021 with the Township, 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. a. Non-compliance will result in the institution of an: order enforcement action. BY THE COMMISSION, U, Shelley Y. Si Acting Chair