DANVERS — Former DPW Director David Lane has paid a $17,000 civil penalty after admitting that he violated the state’s conflict of interest law by accepting multiple gifts from a water meter manufacturer and its distributor.
An Alabama-based water meter maker, sourced through the manufacturer’s sole authorized New England distributor, hosted golf outings, three-day ski trips, and other events to which they invited employees of several municipal water districts and departments of public works, including Lane, according to state ethics officials.
Lane took part in three separate ski trips courtesy of the vendors. These included trips to Sugarloaf, Maine, in 2018; Okemo, Vermont, in 2020; and Jay Peak, Vermont, in 2022 — all with the understanding that when he accepted the vendor’s invitation they would pay for his lodging, all or most of his meals, and his ski lift tickets in Sugarloaf and Jay Peak.
Each of the trips were Wednesday through Friday and were at least $425 per person for lodging and $133 for a two-day ski lift ticket.
In October 2020, the distributor hosted Lane at a golf event in which they paid for his green fees, meals and drinks. In November of the same year, a sales representative of the manufacturer treated Lane and two other municipal public works employees to dinner at Pellana Prime Steakhouse in Peabody. Both of the payments are valued to be $50 or more. The conflict of interest law prohibits public employees from accepting anything worth $50 or more that is given to them for or because of their official positions.
Danvers officials issued a news release on Tuesday stating that “The town became aware of an inquiry by the Massachusetts Ethics Commission last summer and immediately engaged an independent investigator to determine whether any town policies were violated. The town has fully cooperated with the Ethics Commission’s inquiry.
“The town was unable to obtain information and documents from the vendor in question and the Ethics Commission due to confidentiality restrictions related to the Commission’s inquiry. Ultimately, Mr. Lane retired prior to the conclusion of the investigation. The town will not provide any further comments relating to personnel matters.”
Danvers’ water meters were purchased in 2009 through an Invitation For Bid (IFB) process, which means the low bidder was selected after sealed, written proposals were opened by the purchasing department. The town’s centralized purchasing function operates independently from individual departments, and all purchasing is done in accordance with MGL Chapter 30B (Uniform Procurement Act).
Earlier this year, Danvers Department of Public Works Water and Sewer Supervisor Aaron Cilluffo and other municipal water employees from Salem, Southampton, and Sudbury admitted to violating the conflict of interest law multiple times by accepting valuable gifts from the water meter manufacturer and its distributor. They each paid civil penalties ranging from $6,000 to $18,000.
“When public employees accept valuable gifts from vendors, they create the appearance that they may be improperly influenced by the vendors or are likely to unduly favor them in their actions on the job,” State Ethics Commission Executive Director David A. Wilson said. “Accepting such gifts undermines the public’s confidence in the integrity of the employees’ governmental service and is prohibited by the conflict of interest law.”
“The town of Danvers fully supports the work of the Massachusetts Ethics Commission,” Town Manager Steve Bartha said. “We understand that public trust is the currency of local government, and that situations like this erode that trust.”
Michael McHugh can be contacted at mmchugh@northofboston.com or at 781-799-5202