2013-07-03Leonard Klein Counsel
Arthur L. Gellert
John A. Geoghegan
Elizabeth M. Corrado
Roderick J. MacLeod Stephen E. Ehlers
Keith G. Ingber S. Nina Gellert
Robert E. Noe Justice George D. Marlow
Pamela B. Richardson' Appellate Division (Ret.)
Senator Stephen M. Saland
'Also Admitted in NJ Lillian 5. Weigert
Joseph H. Gellert
(1907-1989)
Gellert & K1ein,P.C
Attorneys at Law
75 Washington Street • Poughkeepsie, NY 12601
(845) 454-3250
(845) 454-4652 fax
Westchester County Office
3010 Westchester Avenue Suite 302
Purchase, NY 10577
(914) 249-0100
(914) 249-0111 fax
www.gklaw.us
July 3, 2013
Sedore & Company, CPA's, PC
P.O. Box 918
Wappingers Falls, New York 12590
RE: Audit of Financial Statements of the
Town of Wappinger, for the period of
January 1, 2012 to December 31, 2012
Dear Sir/Madam:
` .~
JUL ft',3
Please accept this letter as a response to your annual audit of the Town of Wappinger. In
connection with the examination of the books and records of the Town of Wappinger as of
December 31, 2012 and in accordance with the request for the Town of Wappinger through their
Town Supervisor, I submit the following which involves matters with respect to which we were
engaged that existed as of December 31, 2012, and for the year then ended.
This information is submitted with the caveat that matters and things contained herein are
subject to all the privileges available between attorney and client and are further subject to all
objections to produce, including the fact that they are work-product and/or in the alternative reflect
the work product of counsel in connection with pending tax certioraris and litigation. The Town of
Wappinger has been advised that the furnishing of the enclosed information might be considered as a
waiver of the aforesaid privileges, notwithstanding which the Town of Wappinger has requested that
we furnish the foregoing.
During the year ending December 31, 2012, this firm was engaged in pending or threatened
litigation involving the Town of Wappinger, and acted as Tax Certiorari Counsel, Labor Counsel and
Conflict Counsel.
Gellert & Klein, P.C.
Attorneys at Law
PENDING OR THREATENED LITIGATION BY
OR AGAINST THE MUNICIPALITY
The following is a list of tax certioraris that existed as of December 31, 2010, against the
Town of Wappinger for which we were representing the Town. These cases were in various
stages of litigation as of December 31, 2012, and may be still at this time. However, as of
December 31, 2012, Scott L. Volkman, Esq., the primary attorney on these matters, is no
longer with this firm. We recommend that you reach out to Mr. Volkman at Stenger,
Roberts, Davis & Diamond, located at 1136 Route 9, Suite 2, Wappingers Falls, NY 12590,
telephone number 845-236-5186, for an assessment of potential outcomes or to estimate the
amount, and range, of potential loss to the Town of Wappinger in connection therewith.
There is the potential for exposure of tax refund liability in each case. We believe the Town
intends to vigorously defend the cases where appropriate or seek to settle cases where
appropriate however, we recommend that you reach out to Mr. Volkman for confirmation.
The pending cases are as follows:
a. Tax Certioraris
Bank of America
Cross Court Associates
Con Ed.
Maloney Road, LLC
Foundation of Chapel of Sacred Mirrors
Wappinger RE, LLC
Lafayette Lemle, LLC
Porco Stanley
DCH Imports, Inc.
Lopane, Joseph
ZVI Segal
Longhitano
Frosted Glass, LLC
Dutchess Airport Realty, Inc.
Imperial Improvements
R&R Realty Associates
NES Rentals
PNL Newco, LLC
Hansen Associates
Airport Drive Properties, LLC
Robert's Running Creek Mobile Home Park
Foreclosure Sale, Inc.
Route 376, LLC
Millpond Management
1070-1072 Route 9, LLC
Locust Tree
Eckerd Corp.
Progressive Casualty Insurance
Home Depot
Cranberry Hills Associates
Dutchess Gardens Realty, LLC
Garewal, Karen
Phantom Hollow Equities
DCH NY Motors, Inc.
MHV Realty, LLC
Segal Rental Associates, LLC
1032 Rt 9 Wappinger Falls Holding
Hollowbrook Associates LLC
Blue Chip Properties
Alpine Improvements
Wappinger Falls Owners Corp.
2345 LLC
Widmer Properties, LLC
Legal Ease Properties
Rawls Leisure Living, Inc.
Outback Steakhouse #3354
Neave, William & Kathleen
Route 55 Property, LLC
Myers Property, LLC
DCH Investments, LLC
Hark Kandr, LLC
DBVan Properties North LLC
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Gellert & Klein, P.C.
Attorneys at Law
b. List of Settled cases: Refund Liability:
Scott L. Volkman, Esq. would have this information.
The following non-tax certiorari related matters
Town of Wappinger vs. Silver Fox Subdivision -Zoning Enforcement
Town of Wappinger vs. Thomas Masch -Zoning Enforcement
Town of Wappinger vs. Rag Properties, LTD. -Zoning Enforcement
Town of Wappinger vs. RJA Holdings Inc. -Zoning Enforcement
Town of Wappinger vs. Old Troy Corners Subdivision -Planning Board
Town of Wappinger w/O'Donnell, Sean and John -Escrow matter
The above cause no financial exposure to the Town
General Labor issues*
Highway Local 1000 Negotiations
Local 445 Negotiations
* Please note, labor matters are handled by David Wise who is no longer with this
firm. You may contact Mr. Wise at Iseman, Cunningham, Reister and Hyde, 2649 South Road,
Poughkeepsie, NY 12601 and phone number (845) 473-8100 to estimate the amount or for an
assessment of potential outcome range of potential loss to the Town of Wappinger in connection
therewith.
UNASSERTED CLAIM AND ASSESSMENTS
a. At this time it appears that there are no unasserted claims or assessments against the
Town that I am familiar with or that this office has been retained to participate in.
Be further advised that our legal fees have been paid when submitted. As of
December 31, 2012, the amount indebted to our firm was $8,630.97.
This response is limited by the ABA Statement of Policy regarding Lawyers' Response to
Auditors' Request for Information (December 1975). Without limiting the generality of the
foregoing, the limitations as set forth in such statement on the scope and use for this response
(paragraphs "2" and "7") are specifically incorporated herein by reference, and any description herein
to any "loss contingencies" is qualified in its entirety by paragraph "6" of the ABA Statement of
Policy. This will confirm as correct the Town's understanding that whenever, in the course of
performing legal services for the Town with respect to a matter recognized to involve an asserted
possible claim or assessment that may call for financial statement disclosure, I have formed a
professional conclusion that the Town must disclose or consider disclosure concerning such possible
F:IUSER\CLIENTSW\WAPPINGER- TOWN\TAX CERTSIFORMS\AUDIT LETTER 517-13 - SEDORE & COMPANY.WPD
Gellert & K1ein,p.C.
Attorneys at Law
claim or assessment. I, as a matter of professional responsibility to the Town, 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.
Yours very truly,
GELLERT & KLEIN, P.C.
BY:
PBR\br
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