2011-2552011-255
Resolution Authorizing the Supervisor and/or the Attorney to the Town to Enter into an
Extension of the Memorandum of Understanding in Connection with Potential Litigation
Involving PETNY
At a regular meeting of the Town Board of the Town of Wappinger, Dutchess County,
New York, held at Town Hall, 20 Middlebush Road, Wappingers Falls, New York, on July 11,
2011.
The meeting was called to order by Christopher Colsey, Supervisor, and upon roll being
called, the following were present:
PRESENT: Supervisor Christopher J. Colsey (Departed 7:40 PM)
Councilmembers - William H. Beale
Ismay Czarniecki
Joseph P. Paoloni
ABSENT: Vincent F. Bettina
The following Resolution was introduced by Councilwoman Czarniecki and seconded by
Councilman Beale.
WHEREAS, the Workers' Compensation Board (WCB) has assumed the responsibility
for the administration and distribution of assets of Public Entity Trust of New York (PETNY), a
municipal group self insurance trust in which the Town of Wappinger was formerly a constituent
member; and
WHEREAS, the WCB and several former members of PETNY previously executed a
Memorandum of Understanding (MOU) that tolled the applicable statute of limitations for any
lawsuit and provided a mechanism to obtain discovery from the WCB; and
WHEREAS, the WCB has failed to provide all of the requested discovery and the parties
have agreed to extend the MOU for up to one year; and
WHEREAS, the extension of the MOU gives the Town a two month moratorium on the
payments to support the operations of PETNY
NOW, THEREFORE, BE IT RESOLVED:
1. The recitations above set forth are incorporated in this Resolution as if fully set
forth and adopted herein.
2. The Town Board Members have read the MOU Extension Agreement and
understand the provisions thereof.
3. The Town Board hereby authorizes the Town Supervisor, Christopher J. Colsey,
or Attorney to the Town, Albert P. Roberts, to execute the MOU by and on behalf
of the Town in substantially the form attached hereto.
4. The Town Board further authorizes the Town Attorney, Albert P. Roberts, to
negotiate any amendments to the MOU deemed necessary to preserve the Town's
rights to bring an appropriate action to challenging the methodology adopted by
the WCB.
The foregoing was put to a vote which resulted as follows:
CHRISTOPHER COLSEY, SUPERVISOR Voting: AYE
WILLIAM H. BEALE, COUNCILMAN Voting: AYE
VINCENT F. BETTINA, COUNCILMAN Voting: ABSENT
ISMAY CZARNIECKI, COUNCILWOMAN Voting: AYE
JOSEPH P. PAOLONI, COUNCILMAN Voting: AYE
Dated: Wappingers Falls, New York
7/11/2011
The Resolution is hereby duly declared adopted.
J,
—QC
05HN C. MASTERSON, TOWN CLERK
RIDER TO
MEMORANDUM OF UNDERSTANDING
This Rider to the Memorandum of Understanding (Rider) is between the Workers
Compensation Board (Board) and those certain former members of the Public Entity
Trust of New York (PETNY) who have previously executed a Memorandum of
Understanding agreement (MOU) with the Board.
WHEREAS, the Board and the Former PETNY Members wish to extend the MOU
signed by the former PETNY Members on August 18, 2010 pursuant to paragraph 6 of
the MOU; and
WHEREAS, both the Board and the Former PETNY Members wish to extend the MOU
and all of its original terms, conditions, obligations and duties subject to the
modifications and changes contained in this Rider.
NOW THEREFORE, in consideration of this Rider and for other good and
valuable consideration, receipt of which is hereby acknowledged, the Former PETNY
Members and the Board hereby agree as follows:
1. MOU Agreement. All of the original terms, conditions, obligations and duties
of the respective parties to the MOU signed by the Former PETNY Members on August
18, 2010, will remain in full force and effect during the duration of this Rider except for
those terms, conditions, obligations and duties which are specifically modified or
changed below. In the event there is a conflict in the provisions of the MOU and the
Rider, the terms of this Rider will control.
2. Tolling of Limitations Periods. The time period during which the MOU and
this Rider are in effect, plus 45 days, commencing, for each Former PETNY Member on
the date it executed the MOU, shall not be included, asserted, or relied upon in any way
in computing the running of the time under any applicable statute of limitations, or by
way of laches, in defense of any administrative and/or civil action brought by the Board
or its agents against the Former PETNY Members or brought by Former PETNY
Members against the Board, including, but not limited to, actions arising under Article 78
of the CPLR. Nothing in the MOU or this Rider shall have the effect of reviving any
claims which were barred by the passage of time or the statute of limitations as of the
execution date hereof. For purposes of seeking collection of any assessments, or
challenging the methodology employed by the WCB or the amounts assessed to a
particular member, the parties agree the decision of the WCB at issue was finalized for
purposes of a potential Article 78 challenge on May 11, 2010. For purposes of the
Tolling of Limitations Period only, the parties agree that there was no lapse in the tolling
period between the expiration of the MOU and the execution of the Rider regardless of
the date the Rider is executed by the parties.
3. Terms of the Rider. This Rider shall expire on May 31, 2012 unless either
party terminates the agreement pursuant to Paragraph 7 of the MOU or renews the
agreement pursuant to Paragraph 6 of the MOU. Monthly payments due hereunder in
accordance with Attachment A to the MOU shall be made on the 1St of each month for a
period of twelve (12) months beginning on June 1, 2011, through and including May 1,
2012.
IN WITNESS WHEREOF, the parties have caused this agreement to be signed
and intend to be legally bound hereby, as of June 1, 2011.
Dated:
2011 Dated:
On Behalf of Former PETNY Member
Albert P. Roberts, Esq.
Attorney for Town of Wappinger
Town of Wappinger
20 Middlebush Road
Wappingers Falls, New York 12590
(845) 297-5771
Attorney for the Board
Kenneth J. Munnelly, Esq.
General Counsel
Workers' Compensation Board
20 Park Street
Albany, New York 12207
(518) 486-9564
2011