CLERMONT TOWN BOARD

SPECIAL MEETING

AUGUST 18, 2009

The Clermont Town Board held a special meeting on Tuesday, August 18, 2009 at 6:00 P.M. at the Town Hall. Those present were Supervisor Staats, Councilwoman O’Neal, Councilman Jones and Councilman Nolan. Councilwoman Lent was absent. Also present was Andy Howard, Town Attorney and eighteen residents.

The Supervisor opened the special meeting with the salute to flag.

This special meeting was called to order on the request of two board members on accounting and financial reporting by our accountant and Councilwoman Lents accusations of incorrect balances in the accounts.

The Supervisor read the following:

Emails from August 9^th by Councilman Jones, and August 9^th from Councilwoman O’Neal requesting special meeting on this matter.

Emails of August 10^th from Supervisor Staats notification of special meeting on Tuesday, August 18th at 6:00 P.M. requesting documentation to support her allegations and contact information or person from NYS Comptrollers Office who she has been in contact with regarding reports not being received from Brian Fitzgerald at the Comptrollers office. Supervisor Staats has been in contact with the Comptrollers Office and been notified that they have received the requested information.

Email from Supervisor on Wednesday, August 12, regarding a response and information.

Email from Supervisor on Monday, August 17^th, third notification, as well as a telephone call from Town Clerk.

Councilwoman Lent notified the Clerk by email that she would not be in attendance but requested that her Letter of Position be read into the minutes of the meeting as follows:

Carol A. Lent, Town Council – Letter of Position

To: Raymond Staats, Supervisor & Clermont Town Board Members

Register Star

Ray, while reading your notice to Town Board members regarding a Special Town Board meeting you are calling for August 18, 2009, I am pleased that after two long years, you at last stated, "We need to clear this up as soon as possible." However, for the past two years, you and the other three board members felt that I was just causing trouble; that I was "confused" asking financial questions regarding bookkeeping/accounting records as an elected official of the Clermont Town Board. Is this not an obligation of the Town Board members to protect the hard earned taxpayer dollars, especially in light of the embarrassing tax increase that the four of you brought to our taxpayers in Clermont?

At a Town Board meeting, I questioned a Town employee/contractor, our Accountant, about certain budget items, budget amounts and accounting procedures. Not only was he disrespectful to me, he actually walked out of the public meeting. At that point, the four of you spent much time "hammering me, telling me that I was causing trouble and that I did not understand anything, etc. Councilman Nolan actually stood up, shouted and told me to "Sit down and shut up". Once again, it exemplifies the way you allow your meetings to run. The four of you, should not be very proud of not only those actions, but of the excessive and unheard of tax increase each of you voted to place on the backs of your neighbors.

Here are the facts:

1. According to the email I received, this meeting is being convened to "review MY alleged accounting discrepancies". Let me set the record straight. I have made no such allegations. Instead, I have fulfilled my obligations as an elected official on the Clermont Town Board by continually questioning our accountant’s conflicting accounts.
2. You are confusing my repeated requests for clarification of financial figures for accusations.
3. Ray, I do not work for you or for the other Town Board members. My obligations are to the taxpayers of Clermont.
4. When I had all of my notes and questions and analysis available to the Board, neither you, nor the other members were the least bit interested in anything I had to say. I believe you are only interested now because the NYS Department of Audit and Control is involved. You saw no merit in my concern. However, the Comptroller’s Office did. This is why you and the other board members are showing growing concern as the audit grows closer and are anxious for me to bring back what you told me to shut up about all those months ago. You have been busy trying to discredit me instead of having the accountant, to whom we are paying precious tax dollars, address the important issues that I put before him.
5. I am pleased for the taxpayers of Clermont that you and the other Board members have now, after all this time; decided that this is at long last, a "serious situation". This is in spite of the fact that each of you has said publicly at numerous Town Board meetings that you "have everything under control". I only wish that you would have moved much sooner, so as to avoid the terrible embarrassment of that horrendous tax increase.

To reiterate, I was left no other alternative but to turn this matter over to a higher authority, the NYS Department of Audit and Control, who oversees the financial operations of Town Government, because my questions to you and the accountant fell on deaf ears. I no longer will discuss this matter with the four of you, as it is in the hands of Audit and Control due to your failure to act on my previous questions.

In conclusion, the four of you are once again doing what you have continually done for the past two years, namely blame me or the previous administration for your mistakes. I must agree with Dianne’s suggestion: the four of you need legal advice and you need it quickly.

Supervisor Staats commented on the fact that Councilwoman Lent was not in attendance and read an email of March 15, 2009 (Delete: regarding this situation) (Add: ‘referencing the first special meeting that was called that Councilwoman Lent did not attend,’) and has been asking every month for (Add: her) information (Add: and)requesting (Add:this) information (Add: in writing.)

Supervisor Staats read from the article in the Register Star on August 8^th, quoting from newspaper article statements from Carol Lent regarding contacting NYS Comptrollers office and regarding records not being received by comptroller’s office. Supervisor Staats read an email of July 28th (Delete: regarding receiving) (Add: stating the NY Comptroller’s office received the) records from Brian Fitzgerald.

Supervisor Staats read from an article in the Register Star on August 14, 2009, in which he quoted Councilwoman Lent as saying "that it was not her responsibility to provide documentation to the town board" and contradictory remarks from articles in paper regarding Comptroller’s office receiving info from the accountant. The Supervisor feels strongly that these remarks should be backed up with documentation and is disappointed that Councilwoman Lent is not here tonight.

Reference: Article from Copake Chronicle of August 18^th by Bob Sacks, Town Board Member, Town of Copake. He has spoken to Brian Fitzgerald and Brian has told him that the Copake Supervisor and Budget Officer Reginald Crowley has received budget reports.

The Supervisor quoted Supervisor Brown of Germantown from the Register Star article of August 8^th that they have never had a problem and reports are provided in a timely fashion. Supervisor Diaz of Ancram also finds Brian Fitzgerald professional and informative. Also, Supervisor Meg Robertson of New Lebanon has no problems.

A Resolution was prepared to be read as follows:

RESOLUTION NO.42- 2009

At a special meeting of the Town Board for the Town of Clermont, Columbia County, New York, duly held on the 18^th day of August 2009 at the Town Hall, Route 9, Clermont, New York, the following Resolution was proposed and seconded.

Resolution by: Councilman Richard Jones

Seconded by: Councilwoman O’Neal

WHEREAS, the Town Board has met to review certain issues surrounding the Town of Clermont’s financial accounts and the accounting services being provided by its accountant, Brian Fitzgerald, CPA, and

WHEREAS, Town Board member Carol Lent has suggested to the Clermont Town Board that there are problems with the Town of Clermont’s financial accounts and the accounting services provided by Brian Fitzgerald, CPA, and

WHEREAS, Town Supervisor Raymond Staats has repeatedly requested over the course of the past several months that Town Board member Lent provide the Clermont Town Board with any information in her possession which suggests a problem with the Town of Clermont’s financial accounts and/or the accounting services provided by Brian Fitzgerald, CPA, and

WHEREAS, Town Board member Lent has failed to come forward with any such information, and

WHEREAS, an audit of the Town of Clermont’s financial records by the New York State Comptroller’s Office has been requested, and

WHEREAS, Town Board member Carol Lent has recently made statements in the Register Star newspaper suggesting that there were pending problems with the Town of Clermont’s financial accounts and the accounting services provided by Brian Fitzgerald, CPA, and

WHEREAS, The Town Board has examined the (Delete: issues) (Add: statements) concerning the Town of Clermont’s financial accounts and the statements made by Carol Lent and wishes to make it clear on the record that such statements do not represent the thoughts or opinions of the Town of Clermont;

NOW, THEREFORE, BE IT RESOLVED that the recent statements by Carol Lent in the Register Star newspaper and/or any other media outlet with regard to the accounting services provided by Brian Fitzgerald, CPA, were not authorized or approved by the Town of Clermont and/or any duly elected or appointed official of the Town of Clermont; and

BE IT FURTHER RESOLVED that the statements made by Carol Lent in the Register Star newspaper and/or any other media outlet with regard to the accounting services provided by Brian Fitzgerald, CPA, were made outside the scope of her official duties as a Town of Clermont Town Board member, and instead represent her personal thoughts and opinions, and

BE IT FURTHER RESOLVED, that the statements made by Carol Lent in the Register Star newspaper and/or any other media outlet with regard to the accounting services provided by Brian Fitzgerald, CPA, do not represent the thoughts or opinions of the Town of Clermont, its representatives, officials, and/or municipal departments, and

BE IT FURTHER RESOLVED, that in the absence of any information being provided by Carol Lent and/or any other persons which suggests a problem with the financial accounts of the Town of Clermont or the accounting services being provided by Brian Fitzgerald, CPA, the fairest and most prudent course of action is to reserve any further comment on these matters until the completion of the audit by the New York State Comptroller’s Ofice; and

Upon questioning of the foregoing Resolution, the following Board members voted "Aye" in favor of the Resolution:

Councilman Jones

Councilwoman O’Neal

Councilman Nolan

Supervisor Staats

The Resolution having been approved by the majority of the Town Board, the same was declared duly adopted by the Supervisor of the Town of Clermont.

Dated: August 18, 2009 Mary Helen Shannon, RMC

Town Clerk

Councilman Nolan has a concern on page 2 of the resolution in the last Whereas section, in which we do not know the issues made by Councilwoman Lent because we have never been given the information. He would like to change the word ‘issues’ to ‘statements’. He would like the attorney’s basis for this section. Andy Howard explained that this was added to recognize that in prior meetings the board has examined issues in carrying out the fiduciary duties to the best of your abilities, you have had conversation with Brian Fitzgerald and the State Comptrollers office, you have had open discussion to address these concerns and at the present that these recent statements are not the made by the Town Board.

Councilman Jones agrees with Councilman Nolan’s initial assessment and whereas the Town Board examined the ‘statements’ not issues, that she has made. Supervisor Staats agrees that it should be changed to ‘statements made by Carol Lent’.

A motion was made by Councilman Jones to approve this resolution with correction, seconded by Councilwoman O’Neal. All in favor. So carried.

Supervisor Staats feels that this is a necessary action to take by the Town, as there is no documentation to back up Councilwoman Lent’s comments.

Councilwoman O’Neal asked if those that Supervisor Staats has spoken to at the Comptroller’s office have ever talked to Councilwoman Lent. Those that Supervisor Staats has spoken to have only spoken to him or Brian.

Councilman Jones had concerns the night of the meeting when Brian left. He is concerned about the misstatements about the ‘outrageous’ tax increase, which amounts to a very small amount on the town tax.

Councilman Nolan asked Andy Howard to explain why he advised the Supervisor to pass this resolution and what is the vulnerability that the Town is exposed to. Andy Howard spoke in general terms, as this could be a matter of potential litigation, which would usually be discussed in executive session. In speaking with the Supervisor and the Town’s insurance agent, it was felt it would be clear and appropriate to establish a record that statements made by Councilwoman Lent are her own and were not made as an official or agent of the town. For these reasons:

1. If there were litigation, to make it clear that statements made were in no way ratified after the fact by the Town Board or any official of the Town of Clermont.
2. And to make it clear, for purposes of the record, that those statements that were made, were made in Councilwoman Lent’s individual capacity.

The central question, if there were litigation in the future, would be whether or not the statements represented statements by the Town of Clermont that would subject them to liability, such as defamation or slander. Councilman Nolan asked what the status of the towns insurance policy in relation to legal action against the Town Board. The Supervisor explained that it would be covered under the town’s policy umbrella. Councilman Nolan asked that if she were sued as an individual for slander, it would be covered under the town’s policy. If there are punitive damages, it goes to the individual. Councilwoman O’Neal stated that the punitive damages is usually the larger portion of a lawsuit. Andy Howard explained that the nature of the policy is the duty to defend by the insurance company which is much greater than it is to indemnify, which means that legal fees are covered as a result of the policy that you have, while these issues are investigated, whether the claim rises to the level of a punitive damage claim or not.

The recommendation to adopt this resolution is not something that is done just for show. Councilwoman Lent recognizes that what she has said is in her own capacity not as member of board. The Town Board is aware of that and Councilwoman Lent is aware of that, so this makes it very clear.

PUBLIC COMMENT:

1. Phil Leonard: If there were litigation how much of an increase would we be looking at. The Supervisor will get an answer.
2. George Davis: A town council person has an obligation to present this to the Town Board and residents, not at a state level or federal level. Is there anything that censors a board member from not doing their duty, either ethical or legally. Andy Howard responded that there is a fiduciary duty as a town board member. If a board member was concerned that there was an issue with regard to accounting services approaching NYS Audit and Control would not be inappropriate. The requesting for an audit itself, is not an unethical act. Until such time as audit occurs, in fairness, we wait to hear from NYS Comptrollers office.
3. Phyllis Heiko: These are furious attacks, how does the Town guard themselves against these attacks. Maybe Councilwoman Lent ought to recuse herself until the audit comes through. Andy Howard does not believe a board member can recuse themselves from the business of the town. Councilman Nolan noted that there is an implication that the Board members should look to an attorney themselves, whatever is meant by that threat. Also, there is an implication of collusion with whatever improprieties are being done by the CPA, if repeated assertions are made that there is a discrepancy and no evidence is provided.
4. Dagmar Payne: Furious about letter written, any board member is working for taxpayers and if asked by board members to produce information, it should be produced for the taxpayers who want answers. There have been accusations about missing money from barbecue committee when it was a misunderstanding on Counciwoman Lent’s part between balance sheet and profit and loss statement. Expect transparency and stop wasting money on legal fees and do something productive.
5. Alberta Staats: In hearing the letter, Councilwoman Lent makes it out like she is a victim – she is not. She would like to know the costs involved. She should bring it out by not revealing it, if there is an error she would be a hero, but there is probably no proof. She also asked why the insurance agent is not here tonight for something that is this important. Suggested seeking a new insurance agent, he is not earning his money.
6. Bob Desmond: Regarding the comments about the 66% tax increase, if you check tax bills over the last nine years that the total tax levy increase is 17% or less.
7. Angela Goetz: Asked why Councilwoman Lent is not here tonight. Didn’t she feel it is necessary for doing this job? Ms. Goetz thinks that is irresponsible and despicable not to show up because it is costing us legal fees.

A motion was made to adjourn by Councilwoman O’Neal, seconded by Councilman Jones at 7:00 P.M.

Respectfully submitted,

Mary Helen Shannon, RMC

Town Clerk