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013 GERALD A. VERGILlS* KENNETH M. STENGER ALBERT P. ROBERTS THOMAS R. DAVIS STEPHEN E. DIAMOND**** JOAN F. GARRETT** VERGILIS, STENGER, ROBERTS, DAVIS & DIAMOND, LLP ATTORNEYS AND COUNSELORS AT LAW 1136 ROUTE 9 W APPINGERS FALLS, NEW YORK 12590 (845) 298-2000 FAX (845) 298-2842 OF COUNSEL: KAREN MacNIS H LEGAL ASSISTANTS: AMY E. DECARLO SANDRA A. OAKLEY SARAH SALISBURY CLOSING COORDINATOR: MARlA JONES www.vsrp.com e-mail: info@vsrp.com KEVIN T. McDERMOTI ANGEL 1. FALCON ANTHONY M. DEFAZIO*** JAMES P. HORAN*** LISA M. COBB M. ELLEN O'SULLIVAN POUGHKEEPSIE OFFICE 276 MAIN STREET POUGHKEEPSIE, NY 12601 (845) 452-1046 NEWBURGH OFFICE 372 FULLERTON AVENUE NEWBURGH, NY 12550 (845) 567-3783 *ADMrITEDTOPRACTICE IN NY & FLA, "ADM!TTEOTO i'RACTICE IN NY & CONN. ... ADMITTED TO PRACTICE IN NY & NJ .... ADMITTED TO PRACTICE IN NY, FL& MA May 19,2010 [R1~~~~\w~(QJ Town Board Town of Wappinger 20 Middlebush Road Wappingers Falls, New York 12590 Attention: Hon. Christopher J. Colsey, Supervisor MAY 2 1 2010 TOWN OF WAPPINGER TOWN CLERK Re: PETNY - Worker's Comp SelfInsurance Trust Dear Chris: As you know, I attended a conference at the Worker's Compensation Board in Albany, New York last Monday, May lOth. At the meeting the Worker's Comp Board proposed a settlement from each of the municipalities. In the information supplied, the Board would not identify the amounts owed by the individual members. It is believed that the Mount Vemon School District, with an excess amount of claims, was the cause of the deficiencies in the Trust. By letter dated May 7, 2010, Fredrick Awino received a letter from Eric Egeland ofCRM indicating that the assessment against the constituent members of PETNY increased from $2,340,000.00 to $7,557,515.00. This was confirmed at the meeting of May 10th. The Worker's Comp Board proposed a settlement for Wappinger, a copy of which is attached. The assessment allegedly due by the Town of Wappinger is $283,752.78. The option payments include a lump sum at 95% ofthe above amount or $269,663.28. The other options include monthly payments over a one to four year period as set forth in "Attachment A". 0:\ Wappinger\Town Board\PETNY\05 191 0 letter to Town Board,doc Page 2 At the May 10th meeting, I asked if it would be possible for the Board to allocate the deficiency based on the claims submitted by the individual constituent members. Mike Papa, Deputy Counsel to the Worker's Comp Board, said there was no inherent reason that it could not be done but that was not the methodology used by the Worker's Comp Board in other similar situations. At present, the proposal is to allocate the deficiency based on the proportionate share of premiums paid for each calendar year. In an effort to negotiate different terms, I request that Fredrick's office prepare the following information: 1. total amount of premiums paid for 2004,2005,2006 and 2007; 2. total number of Worker's Compensation claims originating during the same period; and 3. total number of Worker's Compensation claims still outstanding. I am going to request the same information from CRM. I have been lead to believe that Wappinger would have a surplus based on the premiums they paid in. There is a conference call on May 2ih with all the attorneys for the respective constituent members. I will report to the Board after that meeting. Very truly yours, VERGILIS, STENGER, ROBERTS, DAVIS & DIAMOND, LLP Qh-\~)Lct 'P. L0\Jf-.d:A.-! QACO ALBERT P. ROBERTS APRlso Ene. cc: Town Clerk File Fredrick A wino, Town Accountant O:\Wappinger\Town Board\PETNY\05191 0 letter to Town Board.doc . . Sched~ 3 Public aotity 'I'mlt of New Yode ABoeatioo of Modificd Deficit to IndividWlI Membenl MCuWer Name JrO\11rl ofW~ppirt~ I 1/1/2004 8/2/2007 Period StAn DAte Peri<xl Bnd Date 2002 2003 2004 2005 2006 2007 Total - 1/1/2002 12/31/2002 I . S - 111/2003 12/31/2003 ,$ - S - 1/1/2004 12/31/2004 , 95,233 $ 95,233 1/1/2005 12/31/2005 $ 113860 $ 113,860 1/1/2006 12/'31/2006 I 133 428 $ 13'3,428 1/1/2007 12/31/2007 $ 78.6'30 S 78630 .~) Membo.'s COtWibution forveu $ - $ . $ 9S?233 $ 113860 S 133 428 $ 78,63(l S 421.151 B Tw.I <;ontxib"tions from 2ll members for VeaL' $ 627.065 $ 1.224.507 $ 2.995,376 $ 2,358.767 i 2.159~ $ 663.887 , - Met1\~'s % of fot:d c::ol1tdbutiom 0.0000% O.C)(){)()I"Io 3.1793% 4.327W. 6.1786% 11.8439% Modified deficit foe year $ 79,900 $ 2,193.388 $ 2.130,497 $ 721.167 S 1,004,011 $ 828.552 $ 7557.515 ,) M~ber' 8 pottion of JIlodifi<::d deficil nef' v.ear $ - $ - $ 86,812 $ 34,811 $ 62 034 $ 98,133 , 281,790 CP) Add <:subkact:> c;ontnlnuions .. receivable <:ovcruavmeot:> :d 12/31/08 G) Totalllmount due from mem.ber at 12/31/08 $ . $ - $ 86.812 $ 34,811 1 62,034 l 98.133 $ 281.790 WCB . PETNY . The Public Entity Trust CiO NCAComp, mc. 14 Lafayette Square, Suite 700 Buffalo, NY 14203 Invoice Oal8 Involce # S/loaOl0 27 BUITo Town Of W&ppinpr 20 Middlcbush RoBd Wappinger Falls, NY 12590 Years Participated Deficit Share Amount 2004 86,812.00 2005 34,811.00 2006 62,034.00 2007 98,133.00 Total Deficit Allocation $281,790.00 Prior payments as of 411/2010 $0.00 Deficit Allocation Due $281,790.00 Interest on Estimated Deficiency $1,%2.78 Total Due S283.7S2.7~ Member Name: Address 1: Address 2: City, State, Zip Total Amount Due: Attachment A Payment Plan Options Town of Wappinger 20 Middlebush Road Wappinger Falls NY 12590 283,752.78 The following are the payment options for the above former member: Availab1e Payment Plan Options Term Rate & Installment Payment Amount Option Lump Sum Payment Remit 95% (1 installment) 2691663.28 0 One (1) Year 0% Interest (12 equal 231646.07 0 installments) Two (2) Year 6.0% interest (24 equal 121576.10 0 Installments) Three (3-) Year 6.5% interest (36 equal 81696.74 D installments) Four (4) Year 7.0% Interest (48 equal 6.794.81 0 installments) Five (5) Year 7.5% interest (60 equal Not Available 0 Installments ) Note: Maximum Payment Terms offered will be based upon the number of years participating in the Trust as follows: 1 year = 1 year term 2 years = 2 year terms 3 years;:; 3 year terms 4 year = 4 year terms > or = 5 years = 5 year terms Lump Sum Pavment One (1) Year Term Two (2) Year Term Three (3) Year Term This Is a one time payment of 95% of the total net invoice, payable within forty-five (45) days of the dated invoice. This term is interest free (0%) with twelve (12) equal installments, with the first Installment payable within forty-five (45) days of the dated invoice. This term Is at an interest rate of 6.0% with twenty-four (24) equal installments, with the first installment payable within forty-five (45) days of the dated invoice. This term is at an interest rate of 6.5% with thirty-six (36) aquallnstallments, . ..... .......... .....-.....-... ....... ..o. ____.._....__.... ...--" ----..... ...- ---- .-.....-- ...o. _..... ........- .. . ........- .- ...-- .--_.. - -..--...-- .... .-...- Attachment A Payment Plan Options with the first Installment payable within forty-five (45) days of the dated invoice. Five (5) Year term This term 1$ at an interest rate of 7.0% with forty-eight (48) equal Installments, with the first Installment payable within forty-five (45) days of the dated Invoice. This term is at an Interest rate of 7.5% with sixty (eO) equal Installments, with the first installment payable within forty-five (45) days of the dated InvoIce. Four (4) Year Term In the event of a default, the WeB, ln Its sole discretion, may refer this matter to the Attorney General's Office, or other appropriate entity, for collection of both the pro rata assessment and the applicable joint and severalllabUlty of the Trust during the Member's period of participation In the Trust AdditionaUy, and pursuant to the provisions of State Finance Law ~18.4 and 918.5, Member acknowledges and agrees that it has received notice and demand for interest and an additional collection fee charae of 22% in additIon to the outstandinp balance.