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When the New York State Comptroller's audit of the Town of Lansing's financial operations was publicly released on July 12, one of the findings it showed was that Town purchases from two companies constituted a conflict of interest for Supervisor Scott Pinney.  The Town Highway Department rented equipment from Eagle Rental and purchased gravel from Genoa Sand and Gravel, both owned by Pinney's wife Tracy.  While the audit found that the Town board had instituted a Code of Ethics in 2006, it also found that Pinney had a 'prohibited interest.'

Pinney's position is that it didn't represent a conflict of interest in part because he has no operational authority in his wife's companies, and in part because Highway Superintendent Jack French is himself an elected official who acts independently from the Supervisor.  Additionally French purchases through the County Bid process --  which gets the best prices for participating municipalities from qualified suppliers -- not directly with the companies.  Pinney outlined these positions in a 2008 Lansing Star article . 

Pinney was elected in 2007, narrowly defeating incumbent Steve Farkas for the Supervisor position.  In 2008 he wrote a letter to the Comptroller's office asking for a ruling on whether the Town doing business with the companies constituted a conflict of interest.  Deputy Supervisor Connie Wilcox, who is also the manager of Genoa Sand and Gravel, says that not only did the Comptroller's office not respond to that letter, but two years later when state auditors interviewed town officials they had no knowledge of that letter.

The audit mentions the Star article, noting, 'We did find that the Supervisor publicly disclosed his interests in a newspaper article published in August 2008; however, we could find no record.'


Pinney and the Town Board's response to the audit finding was swift.  In an executive session on June 16th the Board decided that the Town and the companies would no longer do business.  Wilcox says that is a shame, because it will mean more cost to Lansing taxpayers.  She also says that ceasing to do business with the Town of Lansing does not significantly impact the company's revenues.

The audit noted that the Town of Lansing paid Eagle Rental approximately $14,000 in 2008, and paid Genoa Sand and Gravel approximately $48,000 in 2008 and $25,500 through August 24, 2009.

Two years ago French explained that the Town has done business with the companies for years preceding the election.  He said that better quality of gravel, price, and proximity to Town roadwork make Genoa Sand and Gravel more economical because of the cost of diesel and employee time when hauling the gravel.  When he learned Pinney had been elected he consulted Town Attorney Guy Krogh on whether he could continue doing business with the companies.

"Some of the other gravel banks are sandier and have a lot more fines (sand and dust that reduces the gravel's ability to bind to the road) than Genoa has got," he said.  "We've checked many of them.  We've been hauling from there for at least ten years, long before Scott Pinney ever became involved in it."

While the audit did find that some procedures relating to cash disbursements and payroll needed improvements, recommendations to rectify the four findings were addressed immediately.  The audit characterized the issues as 'minor.'

"Although we found only minor discrepancies that we communicated to Town officials, these internal control weaknesses increase the risks that errors and irregularities could occur and remain undetected and uncorrected."

Pinney responded to the audit on June 16 with a letter outlining corrective measures it had taken on four recommendations.  The first recommended that town officials establish procedures to ensure that all town officials and staff members comply with their Code of Ethics.  It recommended the Town cease doing business with the two companies.  Third, it said Pinney should segregate duties in cash disbursements and payroll functions, and finally that he should have sole control of his signature stamp, rather than allowing the Town bookkeeper to use it to sign checks.  Pinney's response indicated that he had accepted the Comptroller's recommendations.

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