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1966-10-20 (2)OCTOBER 20. 1966 - SPECIAL MEETING ON RITTER & L & A SEWER PLANTS Meeting called to order at 7137 p.m. Fulton - contract was to be considered tonight and we did not have original contract. It is here now so we oan proceed. This is a speoial meeting regarding the proposed contract on the Oakwood Knolls Sewer Plant. Elaine read letter from Mark Ritter. Fulton - any comments? I would like to hear from Counsel. Quinn - I would like to say that number one, the contents of this lettdr are not direct, not agreed, not correct. As late as 5115 this evening, we got a letter from Mr. Loeb of Weiner and Loeb in Newburgh. This is the third time I heard it read today. First time it was read over the telephone in an attempt to ooherce me. Call from Mr. Loeb indicating that this letter will be read. They completely denied the contents of it, they wanted no part of it. My conscience is clear. I can hold my head high. Pressure asserted on me and officials of this town. I have contract doouments in this file signed by Mr. Ritter for himself and the various corporate entities, that are parties to the agreement. I have no fear of the consequences of this letter and I would hope that you have none. I hope before the evening is out you sill see more pressure than this letter. It is not true in any fashion whatsoever. Fulton - I would like to ask the Board - we have a contract. This contract has been signed and requires, I understand, the signature of the Super- visor of the Town of Wappinger. Elaine, would you read this contract? All members have read it. Elaine read the contract. Fulton - the situation in Oakwood Knolls has been a problem in this Town for some time. This is a contract, as far as I am concerned, it is a legitimate contract. I am presenting this resolution before the Town Board and asking that you empower me to sign it. I would like to have a second on it. '§har Bulger - I'll second it. Worona requested suspension of the rules. Arise to a point of order. Fulton - you're out of order, would you please be seated. We're not suspending the rules. Clausen - Motion to suspend rules, seconded by Diehl. Bulger - no. Fulton - no. Motion was not kettatx passed. Clausen - I want to make it clear I voted for the suspension of rules. I would like to make a motion to table this. Motion to table precedes a motion on the floor. Since tk it is to be signed by December of 1966, this Town Board is on record asking for an investigation. I feel that the investigation should come forth before the contract is signed. I'm not against signing it. Made motion to table it. Seconded by Diehl. Vote: Bulger - no, Diehl - aye, Clausen - aye, Fulton - no. Motion was not passed. Fulton - I feel there are two distinct differences here. I would like to move that we resolve the problems in Oakwood Knolls without carrying on the investigation. K Motion on the floor to authorize signing of this contract. Elaine read formal motion. Hitter - I would like to see Mr. Quinn refer to the letter written to him today. Quinn - I didn't say there was a letter, I said that Mr. Loeb called me at about 5 after 5 this afternoon and read to me this letter and told me that it is disavowed and that they washed their hands of the matter. They would be very willing in this proceeding to give testimony of what they considered to be the facts. They also told me that they had tremendous sympatthy for you with the pressure you have been under these past few days. Hitter - XIX I'm not here to question the contract. But, I did enter into an esoaro agreement with you, Joe, and I hope this will be lived up to. Quinn - when you signed these papers at quarter after 6 on Thursday night, they were left with me with the understanding that they would be brought to this Town Board that night for signature of the authorized official of this Town. We were to go to a banking institution the following morning in an effort to use the agreement as collateral to ov borrow money. Assistance in the form of assurance that if thel\Board authorized it that the faith and assurance of the Town Board would be behind the and talked that these agreement. You indicated that when you got to the institution to the President, yod would call for such aid. papers be retained and not even executed for a You asked period of 4 days from that night. I agreed. I talked with Mr. Loeb in the presence of my secretary. We a were all on different phones and talked to Mr. Loeb. He agreed with this agreement. It expired on Monday. I never heard from you except on Friday and on Monday, and on Tuesday you called me and asked if the papers had been signed by the Board. nt I said they were not. You said you stood there was to be a this matter. I said it of the Town Board. Two were under great pressure. You said you under - special meeting on Tuesday night to consider would be impossible because of notice agreements or three times today you called me. You read what appears to me to be what essentially is put forth in this letter. You indioated you had prepared it yourself. This morning you indicated that Mr. Weiner 'mad and Mr. Loeb would be present to support you and produce affidavits. I called them and found that Mr. Weiner had not been in his office all day. I found that Mr. Weiner had no intention of appearing. I talked to Mr. Loeb twice. He indicated he would not be present to dispute this contract, nor kir would he send any affidavit or statement that he would bear out the right of this Board to aot on it tonight, wtt tU and that he disavowed the actions you were taking. He asked me to bear in mind the fact that you have been under terrific pressure. Ritter - at the time I gave you the agreements, did is you not acknowledge they would be returned to my attorneys' office the following morning so that they could bd be used for financial arrangement. Quinn - I called your attorney and he excused me from this. Mr. Worona wished to speak. Bulger - move the rules, seconded by Fulton. Votes Clausen - no, Diehl - no, Bulger - aye, Fulton - aye. Motion was not passed. Mr. Fulton called a 15-minute recess at 8x18 D.M. Meeting reconvened at 8136 p.m. Worona - still under suspension of rules and I have 1 right to speak. Fulton - it ti is quite obvious that what is going to go on now is a "three-ring circus". Asked Board to be authorized to sign a contract. This oontraot, to the best of my knowledge, is a good one. We know what has gone on since the first of the year. (to Worona)-You can have 5 minutes. Worona - mW deoretary took minutes when Mr. Quinn was talking. (to his secretary)-Read what he said. Secretary - "As late as 5s15 this evening we have a letter from Mr. Loeb." Worona - km 'tint Principal has already advised us that he is withdrawing that contract. Attorney cannot bind contract when principal has withdrawn 1t. In this contract you refer to this extension of Oekwodd Knolls into the second end third sections. The very question is before the courts in reference to the districts. Until such time as Mr. Quinn is elected to the courts and can rule as Judicial He asked me a year ago to hold up a Imam proceeding against this Town involving this issue so that we could clear up all the problems by the creation of a Targe district known es L A. Time and purpose of avoiding all of this difficulty. Quinn was -5 - authorized to sign contract for the purchase of L & A. It wasn't drawn up/ Unless this Oakwood district is tied in in one way or another to other district. Over all interest, municipal plant to service this Town, then we would have no alternative since there is a violation of litigation now pending, also promises of Mr. Quinn that this matter would be taken care of. We have no alternative to again engage in litigation. We're not looking for litigation, we do not have litigation. This matter should be tabled in the interest of creating one large district. Maybe harmony could be returned to the Town. What is attempted this evening is to create otherwise. Ask Ritter - are you withdrawing this contract? Ritter- contract offered according to what I stated. Quinn did not complete it. I am withdrawing it on this basis. Worona - he is a principal controller, not the attorney. It has been my experience to find that this Town Board is control4ed by an attorney. That Is the attempt tonight. No matter what Mr. Loeb said and Quinn said, he produced a letter a letter at 5:15 tonight. Fulton - I believe that it is an intent of this Board to also form a large district, but I think it will be the Town of Wappinger that will form this district and not L & A. Bulger moved to resume the rules, seconded by Francese. Unanimous. Fulton - Mr. Francese, I think we've got to bring you up to date. There is a simple resolution before the Board that the Bee Town Board empower me to sign the contract that was read here. I'm asking for a simple resolution, and the resolution has been seconded. Elaine read the resolution. Fulton - this resolution -I have presented it, forwarded it, and Mr. Bulger has seconded it. I call for a vote. Is there any question? Diehl - I have discussion on it. Before you bring it to a point, I would like to state my position. In fact, tonight we have a signed letter by the principal, he withdraws the contract. In my mind, if he withdraws a contract, we have no contract. I would like to go back to an investigation. You called for it not to be a white -wash. In my opinion, under the circumstances we have here, we are making a white -wash motion, in fact, we are paying to have it made. In closing this deal, the investigation ends. We will not find out if anything was wrong. Our attorney stated that an official of the health department, he had orders to bring a contract to Albany. According to a letter I have here, the same official says he did not call for a contract to come to Albany. Fulton - if, legally, there is no contract, you should have no fears because I can't sign it. As it was a legitimate investigation, the signing of a contract does not eliminate the investigation. Diehl - in my opinion, we are getting ready to close the deal with intent to buy. W)4)4 powxwwexemxtkisxi sarodxwkamxsxsolobtaxitxwasxmigneixwt*kA ;Uamix UMMXXXIMMX Fulton - when you were on this board when a contract was signed with Ritter? Diehl - yes. Clausen - I abstained from voting on the contract. Fulton - this is an amendment to the contract we have. Not changing the status. Diehl - is the investigation still continuing? Fulton - to my knowledge it is. Diehl - has anyone been am here? Fulton - no. Clausen - has it been determined who owns the Oakwood plant? Fulton - Mr. Quinn, would you answer the question? Quinn - all the sellers in this undo contract own the outstanding legal title to the plant. An examination of title, normal procedure, will evidence this procedure. Gives a report on real and personal property involved. If a title cannot be found, the Town of Wappinger is not obliged to go on. Clausen - isn't there a suit against the Town and Ritter from the County, asking for payment for something like $600 or $1,000? Quinn - there is an action with declaratory Judgement, seeking pronouncement from the court as to the obligation to maintain and operate this plant. Clausen - is the Town of Wappinger named in that suit? Quinn - yes, sir. Clausen - has the County or State given any rulingsa as to who owns the Nire ptat plant? Fulton - it seems to me that Mr. Bitter must think he owns the plant. Diehl - at the end of the investigation by the State, is it not possible that they could find that there are illegal dealings here and it could be condemned and turned over to the State. Fulton - possible, but very unlikely. Quinn - that is correct. The two things are not possible ooupled together. If tk*y list the State has gm found there is illegal construction here, it is not within the State to serve the function of a court and grant eminent domain to any party. Diehl - through such a verdict, oould we reach it at a lower rate? Bulger - might be higher. Diehl - why are you so sure? �„► Quinn - because of experience with Eminent Domain. Gross amount of 10$01121 $248,000. Contract clear indication because of offers that have been made by other parties in the recent act tt to purchase this plant for $75,000. These are not oases. These "are transactions which would be amissable evidence. Fulton - some time ago in approaching this problem I have approached it from the same point of view. I have spoke to a lot of lawyers and a lot of knowledgable people, I would like to get this point, if I thought we could get it for nothing. I think we have got the solution. HEM Deoision to act on this tonight, I think it is the beat decision we sesta oould make. Diehl - seems investigation there has been a great indication to close the fact. 'wile Fulton - investigation would not wind up in contamination. If the State were to find a violation of Za law and oome down and atti[ fine Mr. Ritter $10,000, this isn't going to help the people involved. Diehl - to me we are wiping s it out. SUSPEND RULES Brannen - letter written by Russell Aldrich then ukiaztitgtmg acting as attorney for the group. This is in regard to the $120,000 contract. I did not appear or have representative appear at Planning Board. App- roval with held because section I was is not oompleted. In the previous text to this. This also addressed to Mr. Diehl regarding Oakwood Knolls. It seems to me here clearly that one party had defaulted on the oontraet and I believe that Tit relieves the other party from the responsibility. County Health Department operated for almost a year now. Nuisanoe, it would be subject to contamination. Fulton - oontamthation doss not neoessarily mean that you get something for nothing. Are you implying we get something for nothing? Brannen - no. RESUME RULES - Unanimous. Praneene - should this contract be in a legal position to be withdrawn that any action taken by tits this Board might become secondary to the faot that this oontraot is withdrawn? Quinn - contract is ittlt not withdrawn. It is a part of a great deal of pressure on Mr. Ritter. He is attempting to or withdrawing it on alleged breach of an esoaro agreement by me.tor purposes of this attsis discussion and for all purposes relating to the oontraot, we deny the truth of this letter. His own attorneys have denied them . The very fact that they are not here implies that. Worona - ruling from attorney that this contract cannot be withdrawn. Fulton - MKS you're out of order. Franoese - do we have a resolution signed by Mr. Ritter? SUSPEND RULES Prank Versaoe - this is the seoond meeting, I believe, this week? Board - no. i Mr. Diehl & are Versaoe -/Mr. Clausen t=/asking a lot of questions. Late stage to be as- king. They should be familiar with it, they shouldn't be asking ques- tions. They should have had answers before they Dame herd. At suoh an important meeting on Oakwood Knolls, I think 121111 Frances. should have been here on time. I don't particularly Dare for the attorney jump- ing up here. I would like to know what his interest is as far as the Oakwood Knolls water works goes. In my own opinion, and this is my own feeling, I am tired of coming down here for the last three years and hearing everything I've heard. You have a ahenoe to pass this resolut- ion, and if this Town Board had KMK any interest in the Town, they should pass this resolution. Louis Eck - I as taxpayer, and all due respect to you sir, is sitting here and listening to this, I as taxpayer, don't like to see anything being forced onto somebody, when I'm going to pay the bills for it. Versace - the last time, when Ritter turned that water off in the development, and I spoke to Mrs. Snowden, and she told me we are only a small group of taxpayers and the Town is big, and we are left out by ourselves. I think in turn he should support us. I think the resolu- �,oUt tion has been on the table for arpeem and a half. If there is any legal matters, we have an attorney, we pp him by the year. I want to see the resolution passed. RESUME RULES - Unanimous. Clausen - oomment to Versace - I think you are under a misapprehension if you think that I don't know answers to the questions. I'm asking them so everyone will know. It want it to be clear to everyone here. I'm ready to say that I think I understand the problems quite clearly. Fulton - ready to vote? Clausen - one question - in 1963 or at the creation of the Oakwood Plant, I understand that the developer did not get State approval. Has the State given approval of the Oakwood Sewer plant to date? Quinn - not to my knowledge. Vote,: Clausen - abstain, Ritter withdrew contract. Don't know owner of sewer plant, don't know if state approved it. I would like to have in writing the decision of the Stat,' as to whether the buying of this plant is in the best interest of the Oakwood Development and the Town. I abstain. Franoese - aye. Bulger - aye. Fulton - aye. Resolution passed. Quinn - reoess Is proper, and not an adjournment'. Recess to go into executive session. MAmlamyxremmmummudy SUSPEND RULES for three minutes (9:10) Worona - may I respectfully ask at this time what the status of pending motions on this floor concerning L & A district and the purchase under mt option contract. May I ask if it is the intention of the Town at to create a large central municipal district in which the Oakwood Knolls sewer plant is to be incorporated, and if so, when it is the intent of the Town Board to do so? Francese - I think it is the intent of this Board to go into executive session at this time. Worona - when you come back, I Imp request suspension of the rules so we k can have some answers and discussion on it? Fulton - going into executive session and discuss it with them. Bulger move resume rules. Seconded by Francese. Clausen made motion to recess, seconded by Bulger. Unanimous. 9:12 Meeting reconvened at 10:15. Fulton - the subject matter in this part of the meeting includes the Town's intent fa to form a large sewer district. It was always a our intent. Doing it in a way the Town Board wants to do it. Our object here is to form large sewer districts which will be economically suitable for the people in the Town. With that in mind, the Board recessed for this resolution and will recess afterwards for about a period of 10 minutes. Elaine read resolution. Recess at 10:25. Reconvened at 10:37. Fulton - what is the pleasure of the Board at this point? Would you like to kex hear from L & A? The agrument now is which came first, the chicken or the egg. At this point, I think it can be compared to which came first. Motion made by Bulger, seconded by Clausen, to suspend the rules. Unanimous. Worona - we have no objection to time and in the spirit of cooperation ask you to adopt this resolution. We hope we can reach an agreement that will benefit all. We hope we will never have occurance of some of the things said tonight. Fulton - move this resolution. Seconded by Francese. Unanimous. Bulger made motion to adjourn, seconded by Clausen. Unanimous. Meeting adjourned at 10:40 p.m.