HomeMy WebLinkAbout1228 CataloneIn Re: Victor Catalone
File Docket:
X -ref:
Date Decided:
Date Mailed:
Before: Daneen E. Reese, Chair
Louis W. Fryman, Vice Chair
John J. Bolger
Frank M. Brown
Susan Mosites Bicket
Donald M. McCurdy
00- 077 -C2
Order No. 1228
2/4/02
2/15/02
This is a final adjudication of the State Ethics Commission.
Procedurally, the Investigative Division of the State Ethics Commission conducted
an investigation regarding a possible violation of the Public Official and Employee Ethics
Act, Act 9 of 1989, P.L. 26, 65 P.S. §401 et seq., as codified by Act 93 of 1998, Chapter 11,
65 Pa.C.S. §1101 et seq., by the above -named Respondent. At the commencement of its
investigation, the Investigative Division served upon Respondent written notice of the
specific allegation(s). Upon completion of its investigation, the Investigative Division
issued and served upon Respondent a Findings Report identified as an "Investigative
Complaint." An Answer was filed and a hearing was deemed waived. The record is
complete. A Consent Agreement and Stipulation of Findings were submitted by the parties
to the Commission for consideration. The Consent Agreement was subsequently
approved.
Effective December 15, 1998, Act 9 of 1989 was repealed and replaced by Chapter
11 of Act 93 of 1998, 65 Pa.C.S. §1101 et seq., which essentially repeats Act 9 of 1989
and provides for the completion of pending matters under Act 93 of 1998.
This adjudication of the State Ethics Commission is issued under Act 93 of 1998
and will be made available as a public document thirty days after the mailing date noted
above. However, reconsideration may be requested. Any reconsideration request must be
received at this Commission within thirty days of the mailing date and must include a
detailed explanation of the reasons as to why reconsideration should be granted in
conformity with 51 Pa. Code §21.29(b). A request for reconsideration will not affect the
finality of this adjudication but will defer its public release pending action on the request by
the Commission.
The files in this case will remain confidential in accordance with Chapter 11 of Act
93 of 1998. Any person who violates confidentiality of the Ethics Act is guilty of a
misdemeanor subject to a fine of not more than $1,000 or imprisonment for not more than
one year. Confidentiality does not preclude discussing this case with an attorney at law.
Catalone, 00- 077 -C2
Page 2
I. ALLEGATION:
That Victor Catalone, a public official in his capacity as a Supervisor for Jay
Township, Elk County, violated Section 3(a)/1103(a) of the Ethics Act (Act 93 of 1998, 65
Pa.C.S. §1101 et seq.), when he used the authority of his office for the private pecuniary
benefit of himself and /or a business with which he is associated by approving building
permits for individuals to place house trailers on property he owns resulting in rental
payments to himself.
II. FINDINGS:
1. Victor Catalone has served as a Supervisor for Jay Township, Elk County, since
January 1998.
a. Catalone currently serves as the chairman of the Board of Supervisors.
b. Catalone also served as the chairman of the board of supervisors in 1999.
c. Catalone served as the vice - chairman of the board of supervisors in 1998
and 2000.
2. Jay Township is a Second -Class Township with a three - member Board of
Supervisors.
a. Supervisors receive $156.25 per month compensation for serving on the
board of supervisors.
3. All three township supervisors are annually appointed to work for the township as
laborers on an as- needed basis.
4. All three of the township supervisors and the secretary /treasurer have signature
authority on township accounts.
a. Township checks require the signatures of the secretary /treasurer and one
member of the board of supervisors.
5. On August 19, 1999, the supervisors passed a Resolution No. 99 -2, authorizing the
secretary /treasurer to use the signature stamp of the chairman of the board of
supervisors to conduct township business.
a. The signature stamp was used only during the latter part of 1999.
6. Lisa Anderson served as full -time secretary /treasurer for Jay Township from August
1998 through December 1999.
a. Anderson served as the part -time secretary /treasurer from January 1998
through July 1998.
b. Anderson typically informed Catalone when, and on what, she planned on
using his signature stamp.
7 Catalone owns several parcels of property located in Jay Township on Teaberry
Street Extension.
a. Catalone's residence is located on one parcel of land located on Teaberry
Street Extension.
Catalone, 00- 077 -C2
Page 3
b. Catalone uses two other adjoining parcels as rental property for trailer
homes.
c. Catalone also has other rental property.
8. Jay Township Ordinance No. 84 -3, requiring building permits, establishing the
procedure for setting fees, and providing penalties, was enacted by the Jay
Township Board of Supervisors on August 29, 1984.
9. Ordinance No. 84 -3, Section 3 (b), titled Building Permits, requires a township
building permit be obtained prior to the installation or placement of any mobile
home on any lot within the Township.
10. Ordinance No. 84 -3, Section 4 (a), titled Issuance of Permits, provides as follows
regarding the permit process:
Building permits shall be made on a form prescribed by the township and
shall be filed with the township secretary.
The application shall be accompanied by such plans and specifications as
may be required to ensure compliance with any subdivision, zoning, or
building ordinances hereafter in effect in the township.
c. If the application is for construction of a residential dwelling or installation of
a mobile home, the application shall be accompanied by an application for a
permit to install an individual sewage disposal system or for connection to
any municipal sewage collection system accessible to the property.
a.
b.
1. The smaller of these two parcels measures approximately 193 feet by
50 feet (.23 acres).
2. The larger of these two parcels measures approximately 200 feet by
200 feet (.93 acres).
11. Ordinance No. 84 -3, Section 4 (b), titled Issuance of Permits, requires the board of
supervisors take action within thirty (30) days of the receipt of an application.
a. The board may postpone its decision on the application for an additional
period not to exceed fifteen days in order to conduct a further investigation of
the application.
b. The ordinance does not specify what happens if the supervisors do not take
action within 45 days.
12. Building permits are approved by a vote of the board of supervisors at regular
monthly meetings.
a. The supervisors only vote to approve building permits after reviewing the
permit applications.
b. Building permits voted on are generally listed in the meeting minutes
individually as either approved or denied.
c. The chairman of the board of supervisors is responsible for signing approved
building permit applications and building permits.
Catalone, 00- 077 -C2
Page 4
1. This is typically done at the meetings when building permits are voted
on.
d. No roll call votes are noted in the meeting minutes.
13. The township does not employ a code enforcement officer or building inspector to
review permit applications.
14. As early as 1991, Catalone had intentions of developing the two parcels of property
on Teaberry Street extension for trailer home rental.
a. Catalone was informed by the township sewer authority that the only
requirement was that the trailer homes had to be connected to the township
sewer system or have adequate on -lot sewage systems.
b. In 1991, the township sewer system did not extend near Catalone's property
located on Teaberry Street Extension.
1. Teaberry Street Extension was included in the original township
sewer authority 1996 plans but was eliminated for budgetary
concerns.
15. Beginning in 1998 and concluding in early 1999, the township sewer authority
extended the sewer main line to a point that included Catalone's property on
Teaberry Street Extension.
16. In early 1999, Catalone purchased four sewer tap -ins for his Teaberry Street
Extension property for the trailer home development.
a. Catalone installed two sewer tap -ins on his mobile home rental property.
17. After installing the sewer tap -ins, Catalone advertised the rental of his property for
trailer home placement at various locations in and around Jay Township.
a. The advertisements consisted of flyers placed on bulletin boards in local
businesses.
18. In the summer of 1999, Thomas Wilson responded to Catalone's advertisement.
a. During a meeting, Catalone informed Wilson that the monthly rental fee for
placing a trailer on his property was $125.00 per month.
b. Several weeks after their initial meeting, Wilson contacted Catalone and
agreed to rent the property from Catalone.
c. Catalone informed Wilson that he would need to obtain a building permit at
the township building prior to placing a trailer on the lot.
d. Catalone also informed Wilson that he would not have a problem obtaining a
building permit because the lot met all of the township regulations.
e. Wilson was aware through general knowledge that Catalone was a township
supervisor prior to his contact with Catalone in relation to the rental property.
19. On September 9, 1999, Wilson submitted a building permit application to the
township.
Catalone, 00- 077 -C2
Page 5
a. The application indicated that the permit was to place a 12' x 60' mobile
home on property located on Teaberry Street Extension.
b. Wilson paid a $25.00 application fee.
20. Catalone's signature stamp appears as the approving township signature on
Wilson's building permit application.
a. At this time the township secretary was authorized to use Catalone's
signature stamp.
21. The board of supervisors took no official action to approving the Wilson permit
application.
a There are no board of supervisors actions recorded in any meeting minutes
approving Wilson's building permit.
22. Neither of the two supervisors who served with Catalone in 1999 recalls ever
reviewing Wilson's building permit application or voting to approve a building permit
for Wilson or anyone else to place a trailer home on property owned by Catalone.
a. John Gray served as a supervisor from 1994 through 1999.
b. Stanley Burke served as a supervisor from August 1999 through December
1999.
23. On September 21, 1999, Wilson was issued Building Permit No. 99 -9 -3 to place a
trailer home on Catalone's property located on Teaberry Street Extension.
24. Catalone signed Building Permit No. 99 -9 -3 as chairman of the board of supervisors
approving the permit.
a. Catalone's signature stamp was affixed to the building permit.
25. Catalone did not disclose in any meetings of the board of supervisors that Wilson
was obtaining a building permit to place a trailer home on property owned by
Catalone.
26. Wilson moved his trailer home onto Catalone's property and began paying
Catalone monthly rent in October 1999.
27. From October 1999 through August 2001, Catalone has received rent payments
from Wilson totaling $2,875.00 as follows:
October - December 1999- $ 375.00
January- December 2000- $ 1,500.00
January- August 2001- $ 1,000.00
Total: $ 2,875.00
28. In December 1999, Richard Mix, Jr. contacted Catalone regarding the rental of
property on Teaberry Street Extension to locate a trailer.
a. During this meeting, Catalone informed Mix that the monthly rental fee for
placing a trailer on his property was $125.00 per month.
b. Mix committed to placing his trailer on Catalone's property as a result of this
initial meeting.
Catalone, 00- 077 -C2
Page 6
29. On January 13, 2000, Mix went to the township building and applied for a building
permit to place his trailer on Catalone's property.
a. The application indicated that the permit was to place a 14' x 70' mobile
home on property located on Teaberry Street Extension.
b. Mix paid a $25.00 application fee.
30. Mix moved his trailer onto Catalone's property in late January or early February
2000.
a. This was done prior to receiving a building permit from the township.
b. Mix scheduled to have his home placed on Catalone's property anticipating
that he would have already obtained his building permit and went through
with the move without a building permit.
31. At the board of supervisor's meeting on February 17, 2000, township residents
raised concerns regarding a second trailer being placed on Catalone's property and
whether township ordinances were violated.
32. The supervisors denied Mix's building permit at the February 17, 2000, meeting
until the solicitor could be contacted to advise on the matter.
a. No vote was recorded in the meeting minutes deferring action.
b. Catalone was not present for this meeting.
33. Jay Township Ordinance No. 93 -2, Subdivision and Land Development Ordinance,
adopted on May 13, 1993, governing mobile home parks and mobile home park
plans contains the following definitions:
a. Mobile Home Lot - a parcel of land in a mobile home park, improved with
necessary utility connections and other appurtenances necessary for the
placement thereon of a single mobile home, which is leased by the park
owner to the occupants of the mobile home erected on the lot.
b. Mobile Home Park - a parcel or contiguous parcels of land which has been
so designed and improved that it contains two or more mobile home lots for
the placement thereon of mobile homes.
34. Article IV of Ordinance No. 93 -2, provides that mobile home parks receive prior
approval of the board of supervisors prior to construction or alteration.
a. Plans need to be prepared by a registered surveyor, engineer, or civil
engineer.
b. All mobile home parks shall have an area of at least five contiguous acres of
land.
35. Catalone has never filed a mobile home park plan with Jay Township for Teaberry
Street Extension lots.
a. No mobile home park plans have ever been filed with the township.
b. Catalone's property did not contain five (5) acres.
Catalone, 00- 077 -C2
Page 7
c. Catalone's sewer taps were suitable for single family dwellings as well as for
mobile homes.
36. In a March 15, 2000, letter to the supervisors, township solicitor Thomas Coppolo,
addressed the situation involving the Catalone trailer park.
a. Coppolo informed the board that the ordinance 93 -2 should be enforced in
relation to all township mobile home parks, across the board, without
limitation.
37. At the March 16, 2000, board of supervisors meeting the supervisors read
Coppolo's March 15, 2000, letter and voted on Mix's building permit.
a. The chairman of the board of supervisors, Nadine Pirazzi, called for a vote
on whether to approve Mix's building permit.
b. Catalone made a motion to accept the permit.
c. Pirazzi advised that she felt that Catalone should abstain from the vote
because the trailer was going to be placed on Catalone's property.
d. Catalone advised that he would not abstain because his name was not on
the permit.
e. The motion failed by a 1 to 1 vote with one abstention.
1. Catalone voted in favor, Pirazzi opposed and Huff abstained.
38. In a March 23, 2000, letter to the supervisors Solicitor Coppolo advised that it was
necessary to determine whether both of the trailers on Catalone's property were
located on the same parcel of property or on separate parcels.
a. Coppolo informed that if the trailers were located on separate parcels this
would not be an issue because a trailer park plan is not required.
39. By letter dated April 17, 2000, to the solicitor, Pirazzi questioned the legality of
Catalone participating in the March 16, 2000, vote and whether this was a conflict of
interest.
a. Pirazzi raised other questions regarding the township ordinance.
40. During the April 20, 2000, board of supervisors meeting the board tabled the
Catalone issue to give the supervisors an opportunity to review a letter submitted by
the solicitor regarding the issues raised by Supervisor Pirazzi.
a. Catalone was present at this meeting.
b. No official action is noted in the meeting minutes regarding this permit.
41. Solicitor Coppollo's April 20, 2000, letter opined as follows:
a. The March 16, 2000, supervisors vote was not legal because there was not
an affirmative vote and the vote did not take place within 45 -days of the
submission of Mix's application.
Catalone, 00- 077 -C2
Page 8
b. Catalone should have abstained from the March 16, 2000, vote due to a
possible conflict of interest as defined by the State Ethics Act.
c. Catalone should have filed a Mobile Home Park plan as specified by
Ordinance 93 -2.
d. The supervisors should review and amend Ordinance No. 93 -2 to address
these issues.
e. The supervisors should put aside personal differences and meet to discuss
how to fairly resolve the situation concerning Mix's permit.
42. On May 2, 2000, all three supervisors met at Coppolo's office to resolve the issues
concerning the Mix permit, Ordinance 93 -2 and Catalone's role.
43. Based on the advice of the solicitor the supervisors agreed on the following:
a. The supervisors agreed to grant Mix's permit because no action was taken
within 45 -days.
b. The supervisors would review and amend the applicable ordinances to
address what should happen to a permit if no action is taken within 45 -days.
c. The supervisors agreed to enforce an amended Ordinance No. 93 -2 from
this point forward in relation to any new mobile home parks or changes to
existing mobile home parks.
1. This included Catalone's mobile home park.
44. Pirazzi, as chairman of the board of supervisors, approved Mix's building permit
application on May 11, 2000.
45. At the May 18, 2000, board of supervisors meeting the supervisors discussed the
outcome of their May 2, 2000, meeting at the solicitor's office.
a. The meeting minutes indicate that Mix's permit is considered approved.
b. There is no vote recorded approving Mix's permit.
c. Catalone was not present at this meeting.
46. From February 2000 through August 2001, Catalone has received rent payments
from Mix totaling $2,375.00 as follows:
February -April 2000 $ 375.00 (Before permit approved.)
May- December 2000 - $ 1,000.00 (After permit approved.)
January- August 2001- $ 1,000.00
Total: $ 2,375.00
47. Catalone has received a private pecuniary benefit of $3,250.00 as a result of his
participation in approving building permits for individuals to place mobile homes on
property he owns resulting in rental payments to himself as follows:
$ 2,375.00 (Rent from Wilson.)
$ 375.00 (Rent from Mix before final approval.)
Total: $ 2,750.00
Catalone, 00- 077 -C2
Page 9
III. DISCUSSION:
At all times relevant to this matter, the Respondent, Victor Catalone, hereinafter
Catalone, has been a public official subject to the provisions of the Public Official and
Employee Ethics Law, Act 9 of 1989, Pamphlet Law 26, 65 P.S. §401, et seq., as codified
by the Public Official and Employee Ethics Act, Act 93 of 1998, Chapter 11, 65 Pa.C.S.
§1101 et seq., which Acts are referred to herein as the "Ethics Act."
The allegation is that Victor Catalone, as a Supervisor for Jay Township, violated
Section 3(a)/1103(a) of the Ethics Act when he used the authority of his office for a private
pecuniary benefit when he participated in approving building permits for individuals to
place mobile homes on property he owns, resulting in rental payments to himself.
Pursuant to Section 3(a)/1103(a) of the Ethics Act, a public official /public employee
is prohibited from engaging in conduct that constitutes a conflict of interest.
The term "conflict of interest" is defined under Act 9 of 1989/Act 93 of 1998 as
follows:
Section 2/1102. 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. "Conflict" or "conflict of interest" 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 P.S. §402/65 Pa.C.S. §1102.
Section 3(a)/1103(a) of the Ethics Act prohibits a public official /public employee
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.
As noted above, the parties have submitted a Consent Agreement and Stipulation of
Findings. The parties' Stipulated Findings are reproduced above as the Findings of this
Commission. We shall now summarize the relevant facts as contained therein.
Catalone is a Jay Township Supervisor and the current chairman of the three
member board. In the township, any one of the three supervisors and the secretary/
treasurer have signature authority on township accounts. In addition, the secretary/
treasurer has the authority to use the signature stamp of the chairman of the board for
township business.
In a private capacity, Catalone owns several parcels of property in the township, two
of which parcels are used for mobile home rentals. The township has an ordinance that
requires a township building permit in order to place a mobile home on property within the
Catalone, 00- 077 -C2
Page 10
township. Building permits are reviewed by the board of supervisors at their regular
monthly meetings within 30 days of application unless postponed for an additional 15 days
for further investigation. The board passes upon the building permits since the township
does not employ a code enforcement officer or building inspector to review such
applications.
After Catalone installed sewer tap -ins for two mobile home rental properties, he
advertised his rental properties for mobile home placement. In the summer of 1999, after
Thomas Wilson responded to Catalone's advertisement, the two of them agreed upon a
property rental of $125 per month for Wilson's mobile home. Catalone informed Wilson
that a building permit would be necessary and that there would be no problem in obtaining
the permit because the parcel met all of the township requirements. Wilson knew that
Catalone was a township supervisor even before Wilson contacted Catalone regarding the
rental property. In September, Wilson applied for a building permit which was issued to
Wilson with Catalone's signature stamp indicating approval. The board of supervisors
took no action to approve Wilson's permit application. Catalone never disclosed to the
board that Wilson obtained a building permit to place his mobile home on property owned
by Catalone. Wilson moved his mobile home on Catalone's property in October 1999 and
began making rental payments to Catalone which totaled $2,875 for the period from
October 1999 to August 2001.
In December of 1999, Robert Mix, Jr. also contacted Catalone regarding the rental
of a property for a mobile home. After Catalone informed Mix that the monthly rental was
$125, Mix agreed to move his mobile home on Catalone's property. In January of 2000,
Mix applied for a building permit to place his mobile home on Catalone's property. A few
weeks later, Mix placed his mobile home on Catalone's property even though he had not
received a building permit from the township. From February 2000 through August 2001,
Catalone received rental payments totaling $2,375 from Mix.
At a February 17, 2000, public board meeting, township residents raised concerns
about a second mobile home being placed on Catalone's property in possible violation of
township ordinances. At that meeting the supervisors deferred action on Mix's building
permit pending review by the solicitor. Catalone was not present at that meeting.
After the township solicitor advised that the township ordinance should have been
enforced as to all township mobile home parks, the chairman of the board of supervisors
called for a vote on the Mix building permit. After Catalone made a motion to accept the
permit, the chairman advised Catalone to abstain because the mobile home was to be
placed on his property. Catalone responded that he would not abstain on the basis that
his name was not on the building permit. However, the motion failed by a 1 -1 -1 vote with
only Catalone voting in favor of the motion.
The chairman of the board by letter of April 17, 2000, wrote to the solicitor
questioning the legality of Catalone's participation at the prior board meeting. The solicitor
opined by letter that the March vote was illegal because there was not an affirmative vote
and because the vote did not take place within 45 days of the submission of the permit
application by Mix. In addition, the solicitor advised that Catalone should have abstained
due to a possible conflict under the Ethics Act. Thereafter, all three supervisors met at the
solicitor's office to discuss various issues including the Mix permit application, the township
ordinance, and Catalone's role. The supervisors agreed to grant Mix's permit because no
action was taken within the 45 day period of the ordinance. The chairman of the board
then approved Mix's permit application on May 11, 2000.
Having highlighted the Stipulated Findings and issues before us, we shall now apply
the Ethics Act to determine the proper disposition of this case.
Catalone, 00- 077 -C2
Page 11
The parties' Consent Agreement sets forth a proposed resolution of the allegations.
The Consent Agreement proposes that this Commission find a technical violation of
Section 3(a)/1103(a) as to Catalone's participation in the approval process resulting in the
issuance of two building permits to individuals for placement of mobile homes which were
on private lots being rented out by Respondent and a payment by Catalone of $400 to the
Commonwealth of Pennsylvania within 30 days of the date of mailing of this Order.
In applying the provisions of Section 3(a)/1103(a) of the Ethics Act in the instant
matter, there were uses of authority of office by Catalone as to the permit approvals for
Wilson and Mix to place their mobile homes on rental properties that are owned by
Catalone. But for the fact that Catalone was a supervisor, he could not have given
assurances to Wilson that his building permit application would be approved. In addition,
Catalone's signature as supervisor appears on the approval of the permit application for
Wilson. Regarding the Mix permit application, Catalone made a motion and voted in favor
of that motion to approve Mix's mobile home permit application. Such actions by Catalone
were uses of authority of office. See, Juliante, Order 809. Such uses of authority of office
resulted in private pecuniary benefits to Catalone consisting of the rental payments he
received from Wilson and Mix as to the properties he rented to those individuals for
placement of their mobile homes. Accordingly, technical violations of Section 3(a)/1103(a)
of the Ethics Act occurred when Catalone used the authority of office for private pecuniary
benefits for himself when he took action to approve mobile home building permits on
properties that he owned and rented to Wilson and Mix.
We determine that the Consent Agreement submitted by the parties sets forth the
proper disposition for this case, based upon our review as reflected in the above analysis
and the totality of the facts and circumstances. Accordingly, Catalone is directed to make
payment in the amount of $400 payable to the Commonwealth of Pennsylvania through
this Commission within 30 days of the issuance of this 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:
1. Catalone, as a Supervisor in Jay Township, is a public official subject to the
provisions of Act 9 of 1989 as codified by Act 93 of 1998.
2. Technical violations of Section 3(a)/1103(a) of the Ethics Act occurred when
Catalone used the authority of office for private pecuniary benefits for himself when
he took actions to approve mobile home building permits on properties that he
owned and rented to two individuals.
In Re: Victor Catalone
ORDER NO. 1228
File Docket: 00- 077 -C2
Date Decided: 2/4/02
Date Mailed: 2/15/02
1 Catalone, as a Supervisor in Jay Township, committed technical violations of
Section 3(a)/1103(a) of the Ethics Act when he used the authority of office for
private pecuniary benefits for himself when he took actions to approve mobile home
building permits on properties that he owned and rented to two individuals.
2. Per the Consent Agreement of the parties, Catalone is directed to make payment in
the amount of $400 payable to the Commonwealth of Pennsylvania through this
Commission within 30 days of the issuance of this Order
a. Compliance with the foregoing will result in the closing of this case with no
further action by this Commission.
b. Non - compliance will result in the institution of an order enforcement action.
BY THE COMMISSION,
DANEEN E. REESE, CHAIR