007
Chris Masterson
From:
Sent:
To:
Subject:
AI Roberts [aroberts@vsrp.com]
Tuesday, July 19, 2011 2:21 PM
Chris Colsey; Chris Masterson
FW: Part-Time CEO
Chris and Chris:
I forgot to attach this to the last em ail.
Sandie
From: AI R [mailto:aroberts(ci)vsrp.com]
Sent: Tuesday, July 19, 2011 2:02 PM
To: areXhouse(ci)co,dutchess.ny.us
Subject: Part-Time CEO
Tony:
In view of Chris Colsey's pending resignation as Town Supervisor, I will be the point person for any guidance
your office gives on the appointment of a part-time CEO. The Town's current CEO and Department Head, Sal
Morello, contends that this is the busy season and is in great need of assistance. On behalf of the Town, we
would appreciate your guidance as quickly as possible. The next Town Board meeting is Monday, July 25th.
I thank you for your anticipated cooperation.
Very truly yours,
Albert P. Roberts
Vergilis, Stenger, Roberts, Davis & Diamond, LLP
1136 Route 9
Wappingers Falls, New York 12590
(845) 298-2000
JUL 1 9
EFt
1
GERALD A. VERGILIS.
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
KEVIN T. McDERMOTT
ANGEL 1 FALCON
ANTHONY M. DEFAZIO...
JAMES P. HORAN...
LISA M. COBB
M. ELLEN O'SULLIVAN
MARINA O'NEILL
MELISSA A. MANNA-WILLIAMS
OF COUNSEL:
KAREN MacNISH
LEGAL ASSISTANTS:
AMY E. DECARLO
SANDRA A. OAKLEY
SARAH SALISBURY
CLOSING COORDINATOR:
MARIA L. JONES
(845) 298-2000
F A.-X (845) 298-2842
www.vsrp.com
e-mail: info@Vsrp.com
POUGHKEEPSIE OFFICE
By Appointment Only
(845)452- 1046
"ALSO ADMITTED IN FLA.
""ALSO ADMlTTED IN CONN.
"""ALSO ADMlTTED IN NJ
....ALSO ADMlTTED IN FL& MA
December 1, 2011
BY FASCIMILE 845-227-6154
AND FIRST CLASS MAIL
Capital Market Advisors, LLC
North Hopewell Plaza
1075 Route 82 - Suite 4
Hopewell Junction, New York 12533
Attention: Ms. Beth Ferguson
[Ri~CC~~~~[Q)
DEe 05 2011
TOWN OF WAPPINGER
TOWN CLERK
Re: Town of Wappinger
Pending and Threatened Litigation
Dear Ms. Ferguson:
Pursuant to letter request dated November 28, 2011 from Town of Wappinger Supervisor,
Barbara A. Gutzler, the following is the status of material Pending or Threatened Litigation,
Claims and Assessments which could have a material effect on the financial position of the
Town of Wappinger. The following is the status of material Pending or Tbreatened Litigation,
Claims and Assessments against the Town of Wappinger, as known to the best of my knowledge
through t.l].edate of this letter.
Please be advised that Tax Certiorari proceedings are handled by Scott 1. V oIkman, Esq. with
offices at 75 Washington Street, Poughkeepsie, New York 12601, and I have no knowledge of
the validity of any Tax Certiorari claims that were or are pending against the Town.
Please be advised that upon information and belief there are several tort actions pending against
the Town of Wappinger which are being defended by counsel assigned by the Town's insurance
carriers. I am unaware of the exact number, nature, status or probability of success with respect
to. any of-those actions.
O:\Wappinger\Town Board\PendingLitigation(.0060)\12-1_Il letter to Capital Market Advisors.doc
December 1, 2011
Page 2
PENDING OR THREATENED LITIGATION
(Excluding Unasserted Claims and Assessments):
I hereby report as the date of this letter, to the best of my knowledge, the only material
Pending or TIrreatened Litigation matter in which the Town of Wappinger is or may be
named as a party is the case listed below.
PETNY (Public Entity Trust of New York) Deficiency
For the years 2004 through 2007, the Town of Wappinger had been a participant in the
Public Entity Trust of New York, a self insured Trust which was to provide the Town
with Workers' Compensation coverage for its employees. The Trust was terminated in
August 2007 by the New York State Workers' Compensation Board. The Workers'
Compensation Board then hired an independent accounting firm to conduct an audit of
the books and records of PETNY and to calculate what appeared to be significant
deficiencies necessary to cover outstanding workers' compensation claims of the
employees of the constituent municipalities. The audit was conducted by Lumsden &
McCormick, LLP, who estimated the PElNY deficiencies to be approximately
$7,557,515.00 and further determined that the Town of Wappinger share of said
deficiency is $283,752.78.
The Town has vigorously opposed payment of this sum but has entered into an interim
Tolling Agreement by which the applicable statute oflimitations would be tolled pending
the negotiation of the amounts due. The Town of Wappinger has been joined by several
other municipalities who were also members ofPETNY who also opposed the alleged
deficiencies. The in~estigationsmade by the constituent municipalities have disclosed a
number of deficienci~s and/or discrepancies in the calculations used to determine the
Town of Wappinger deficiency. The matter is still being investigated and negotiation
settlements are still pending.
I know of no other material claims or actions pending or threatened, brought or
anticipated to be brought against the Town.
UNASSERTED CLAIMS AND ASSESSMENTS
This letter includes matters that existed as of December 1, 2011.
The undersigned knows of no other unasserted claims or assessments considered to be
probable of assertion and/ or if asserted, would have a possibility of an unfavorable
material outcome. However, in the course of performing legal duties for the Town of
O:\Wappinger\Town Board\PendingLitigation(.0060)\l2-1-111etter to Capital Market Advisors.doc
December 1, 2011
Page 3
Wappinger with respect to a matter recognized to involve an unasserted possible claim or
assessment that may call for financial statement disclosure, and I have formed a
professional conclusion that the Town should disclose or consider disclosure concerning
such possible claim or assessment, as a matter of professional responsibility to the Town
of Wappinger, I will so advise the Town and will consult with the Town concerning the
question of such disclosure and the applicable requirements of Statement of Financial
Accounting Standards No.5.
There are no other potential liabilities or loss contingencies that are required to be
disclosed or accrued in the financial statements, other than the abovementioned matters.
There are no other potential liabilities or loss contingencies which in my professional
judgment are required to be disclosed or accrued in the financial statements. All
contingent liabilities set forth above are as of the date of this correspondence. The scope
of this letter includes litigation commenced against the Town to present, except as noted
above.
To the best of the knowledge of the undersigned, there are no actions that have been
commenced against the Town, or threatened to be commenced against the Town, nor are
there any actions pending which would subject the Town to any monetary payment or
financial loss, except as above stated.
The undersigned knows of no other unasserted claims or assessments considered to be
probable.
Very truly yours,
VERGILIS, STENGER, ROBERTS, DAVIS & DIAMOND, LLP
cc: Hon. Barbara A. Gutzler, Supervisor (by email and first c1ass mai1)
Hon. Christine Fulton, Town Clerk (by ema.i1 and. first class mai1)
Scott L. V oIkman, Esq. (by email and first c1,ass mail)
0:\ Wappinger\Town BoardlPendingLitigation(.0060)\12-1-11letter to Capital Market Advisors.doc