Settlement  Disposition Agreement in the Matter of Vincent Villamaino

Date:	11/10/2021
Organization:	State Ethics Commission
Docket Number:	21-0008
Referenced Sources:	G.L. c. 268A, the Conflict of Interest Law, as Amended by c. 194, Acts of 2011

Disposition Agreement

The State Ethics Commission (“Commission”) and Vincent Villamaino (“Villamaino”) enter into this Disposition Agreement pursuant to Section 3 of the Commission’s Enforcement Procedures.  This Agreement constitutes a consented-to final order enforceable in the Superior Court, pursuant to G.L. c. 268B, § 4(j). 

On January 15, 2020, pursuant to G.L. c. 268B § 4(a), the Commission initiated a preliminary inquiry into possible violations of the conflict of interest law, G.L. c. 268A, by Villamaino. On February 18, 2021, the Commission concluded its inquiry and found reasonable cause to believe that Villamaino violated G.L. c. 268A, §§ 19 and 23(b)(3).

The Commission and Villamaino now agree to the following findings of fact and conclusions of law:

Findings of Fact

1. Villamaino was a member of the Town of Hampden Board of Selectmen (“BOS”) from 2007 to 2019. 
2. Villamaino owns a paving company, E.J. Villamaino Landscaping Company, Inc., with a principal place of business in Hampden.
3. GreatHorse is a private membership country club and golf course located in Hampden.
4. Villamaino owns and resides at property that directly abuts GreatHorse.
5. At all relevant times, Villamaino was a member of GreatHorse.
6. Villamaino’s company provided paving services to GreatHorse in April, May, June, August, September, and October 2016; March, April, May, June, July, and September 2017; and May, June, and October 2018.
7. In January 2016, in response to concerns about Villamaino’s participation as a BOS member in matters regarding GreatHorse while he was an abutter to, a club member of and a contractor for GreatHorse, the Commission’s Enforcement Division sent a private Education Letter to Villamaino that warned him that actions by him concerning GreatHorse may violate §§ 19 and 23(b)(3) of the conflict of interest law and advised him to abstain from matters before the BOS involving GreatHorse. Villamaino was advised that the Commission presumes that property owners have a financial interest in any matters affecting abutting or nearby property.
8. The Education Letter also asked Villamaino to attend an in-house conflict of interest law seminar at the Commission, which he did via webinar on February 25, 2016.  
9. From 2016 to 2018, Villamaino’s company received the following payments from GreatHorse in connection with paving work performed on the GreatHorse property:

1. approximately $43,000 in 2016,
2. approximately $140,000 in 2017, and
3. approximately $20,000 in 2018.

GreatHorse’s Water and Sewer Plan

10. At all relevant times, Hampden relied on private wells and septic systems.
11. On July 5, 2016, GreatHorse representatives appeared before the BOS and presented a plan to connect Hampden to the public water and sewer system in East Longmeadow (“Water & Sewer Plan”). 
12. GreatHorse had plans to expand and build 50 units of housing including condominiums.
13. GreatHorse required public water and sewer in order to build housing.
14. On July 5, 2016, Villamaino was present at a BOS meeting during the board’s discussion about the Water & Sewer Plan and did not recuse himself. The BOS did not vote regarding the Water & Sewer Plan at this meeting.
15. At a BOS meeting on May 22, 2017, Villamaino and other BOS members discussed the Water & Sewer Plan and the potential placement of the water and sewer lines in Hampden. 
16. In June 2017, the BOS formed a Water and Sewer Study Group with a stated purpose of being part of the process to help bring public water and sewer lines to Hampden.
17. On June 27, 2017, Villamaino, another BOS member, and a consultant hired by GreatHorse, appeared before the East Longmeadow Town Council regarding the Water & Sewer Plan to propose that East Longmeadow connect its sewer system to Hampden.
18. At a BOS meeting on July 24, 2017, Villamaino participated in a discussion which addressed how Hampden could move forward with the Water & Sewer Plan.
19. On or about August 4, 2017, Hampden submitted a $2 million MassWorks grant application for the Water & Sewer Plan.  The application included a letter of support from GreatHorse’s owner outlining the club’s plan to invest $30 million to develop approximately 50 units of housing.  According to the letter, “limited water supply and sewage capacity has impeded [GreatHorse’s] commercial growth and has impacted our ability to reach our potential.”
20. According to the MassWorks application, “[i]n the immediate future [the BOS] will be formulating a District Improvement Financing Plan” to finance the remaining $2.8 million for the Water & Sewer Plan.

District Improvement Financing

21. District Improvement Financing (DIF) is an economic tool that promotes redevelopment through public-private partnerships.  
22. By establishing a DIF, Hampden would create a funding stream for the Water & Sewer Plan by setting up a process through which Hampden would identify and capture tax revenues that resulted from new private investment in a specific area. These tax revenues are generated by the increase in assessed value that results from the private investment.  Hampden could then direct this stream of incremental tax revenues toward paying off the remainder of the Water & Sewer Plan cost.
23. At a BOS meeting on September 25, 2017, a consultant working with the Water and Sewer Study Group presented a proposed warrant article for the Hampden Special Town Meeting regarding the establishment of a DIF in Hampden that would encompass GreatHorse, as well as certain other businesses and residences. 
24. According to the warrant, the DIF was part of “a public/private collaborative process to promote redevelopment in Hampden” and it would enable the Town to pay for the Water & Sewer Plan.
25. At the September 25, 2017 BOS meeting, a GreatHorse consultant told the BOS that the DIF “will allow the town to improve its infrastructure at a low cost...” 

23.At the September 25, 2017 BOS meeting, Villamaino made a motion to approve GreatHorse’s proposed DIF article, and the motion passed.

Conclusions of Law

26. As a Hampden Selectman, Villamaino was a municipal employee as that term is defined in G.L. c. 268A, § 1(g). 

Section 19 Violations

27. Section 19 of G.L. c. 268A prohibits a municipal employee from participating^[1] as such an employee in a particular matter^[2] in which, to his knowledge, he has a financial interest.^[3]
28. A property owner has a presumed financial interest in matters, including but not limited to zoning changes, variances, nearby subdivision or development approvals, and roadway, sewerage, or safety improvements, affecting abutting property unless the property owner rebuts the presumption with competent evidence showing that the matter will not affect the property owner's financial interest.^[4]

Participation Regarding GreatHorse’s Water and Sewer Plan

29.  The BOS’s decision to pursue the Water & Sewer Plan originally proposed by Great Horse by forming the Water and Sewer Study Group, approaching East Longmeadow for assistance, and seeking funding channels for the project was a particular matter.
30. Villamaino participated as a BOS member in the particular matter of the Water & Sewer Plan by discussing the plan at the May 22, July 5, and July 24, 2017 BOS meetings.
31. As a GreatHorse abutter, Villamaino has a financial interest in matters affecting GreatHorse.  Villamaino was aware of this financial interest as he received an Education Letter in 2016 which advised him of it.  An improved public water and sewer system, which would enhance the country club, increase its capacity for development, and allow GreatHorse to add additional housing, would have an effect on the value of Villamaino’s abutting property.
32. Villamaino also had a financial interest in the Water & Sewer Plan as a paving contractor with a recent history of doing paving for GreatHorse, as it was reasonably foreseeable that the plan, which was originally proposed so that GreatHorse could build additional housing, would create paving needs that Villamaino’s company would likely be hired and paid to fulfill.
33. Accordingly, by participating as a BOS member in the particular matter of the proposed Water & Sewer Plan, in which to his knowledge he had a financial interest, Villamaino violated § 19.

Participation Regarding District Improvement Financing

34. The BOS’s decision to place an article to establish a DIF on the warrant for the Special Town Meeting was a particular matter.

35. Villamaino participated in this particular matter of the DIF as a BOS member by moving to vote to approve the placement of the DIF article on the Special Town Meeting warrant and voting to place the matter on the warrant.
36. As a GreatHorse abutter, Villamaino had to his knowledge a financial interest in the DIF as it would allow GreatHorse to further expand, having a direct impact on the value of nearby property such as Villamaino’s residence.
37. Villamaino also had to his knowledge a reasonably foreseeable financial interest in the particular matter of the DIF because the DIF funding would allow GreatHorse to build its planned housing, potentially providing work for Villamaino’s company which had provided paving services to GreatHorse on numerous occasions in 2016 and 2017.
38. Accordingly, by participating as a BOS member in the vote to place the DIF on the warrant for the Special Town Meeting, Villamaino violated § 19.

Section 23(b)(3) Violations

39. Section 23(b)(3) of G.L. c. 268A prohibits a municipal employee from, knowingly, or with reason to know, acting in a manner which would cause a reasonable person, having knowledge of the relevant circumstances, to conclude that any person can improperly influence or unduly enjoy his favor in the performance of his official duties, or that he is likely to act or fail to act as a result of kinship, rank, position or undue influence of any party or person.
40. By participating in matters relating to GreatHorse, Villamaino knowingly or with reason to know, acted in a manner which would cause a reasonable person, having knowledge of all the relevant circumstances, including Villamaino’s continuing membership to GreatHorse, the location of his property and the paving work his company had performed for the club, to conclude that GreatHorse could unduly enjoy Villamaino’s favor in the performance of his official duties as a BOS member. 
41. Although § 23(b)(3) provides that it shall be unreasonable to conclude a public official violation § 23(b)(3), if that employee has disclosed in writing to his appointing authority, or, if no appointing authority exists, discloses in a manner which is public in nature, the facts which would otherwise lead to such a conclusion, Villamaino did not file a disclosure sufficient to dispel the appearance of conflict of interest created by his participation in matters relating to GreatHorse. 
42. By so acting, Villamaino violated G.L. c. 268A, § 23(b)(3). 

Resolution

In view of the foregoing violations of G.L. c. 268A by Villamaino, the Commission has determined that the public interest would be served by the disposition of this matter without further enforcement proceedings, on the basis of the following terms and conditions agreed to by Villamaino:

1. that Villamaino pay to the Commonwealth of Massachusetts, with such payment to be delivered to the Commission, the sum of $ 4,000 as a civil penalty for violating G.L. c. 268A, §§ 19 and 23(b)(3); and
2. that Villamaino waive all rights to contest, in this or any other administrative or judicial proceeding to which the Commission is or may be a party, the findings of fact, conclusions of law and terms and conditions contained in this Agreement.

By signing below, Villamaino acknowledges that he has personally read this Disposition Agreement, that it is a public document, and that he agrees to all of its terms and conditions.

 

^[1] “Participate” means to participate in agency action or in a particular matter personally and substantially as a state, county or municipal employee, through approval, disapproval, decision, recommendation, the rendering of advice, investigation or otherwise.  G.L. c. 268A, § 1(j).

^[2] “Particular matter” means any judicial or other proceeding, application, submission, request for a ruling or other determination, contract, claim, controversy, charge, accusation, arrest, decision, determination, finding, but excluding enactment of general legislation by the general court and petitions of cities, towns, counties and districts for special laws related to their governmental organizations, powers, duties, finances and property.  G.L. c. 268A, § 1(k).  

^[3] “Financial interest” means any economic interest of a particular individual that is not shared with a substantial segment of the population of the municipality.  See Graham v. McGrail, 370 Mass. 133 (1976).  This definition has embraced private interests, no matter how small, which are direct, immediate or reasonably foreseeable.  See EC-COI-84-98.  The interest can be affected in either a positive or negative way.  EC-COI-84-96.

^[4] See Commission Advisory No. 05-02: Voting on Matters Affecting Abutting or Nearby Property