COMMITTEE ON BUDGET AND APPROPRIATIONS

MINUTES

JANUARY 4, 1999

ATTENDANCE:

Chairman Wishnie called the meeting to order at 10:08 a.m.

DISCUSSION: (There is a cassette tape on file for more detailed information)

6. Tax Anticipation Note: Proposed Act authorizing the issuance of $75,000,000 in Tax Anticipation Notes. (12/14/98)

• The Commissioner explained that last year the County borrowed $100 million and this year anticipates borrowing up to $75 million.
• The County is in a better cash position than last year.
• Projected interest rate: short term could be under 3%

On motion of Legislator Carsky, seconded by Legislator Stewart-Cousins, the motion to approve this item was carried by a vote of 8-0.

24. Pay Plan Amendment: Proposed Act amending the County Pay Plan – President, Community College. (11/16/98)

• The proposed act would amend the Pay Plan by deleting the title of "President-Community College" from Job Group XXII of Schedule "A" and adding this title to Schedule "C" with a flat rate of compensation not to exceed $169,815 annually.

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• Breakdown of the $169,815 is as follows:

On motion of Legislator LaMotte, seconded by Legislator Stewart-Cousins, the motion to approve this item was carried by a vote of 8-0.

• The County Attorney reminded the Committee that they had been briefed previously on this matter and had in fact authorized the retention of Bruce Bozeman, Esq.; at a cost not to exceed $175.00 per hour to defend Denise Oleska in this lawsuit.
• Mr. Scheinkman explained that due to a previously undisclosed conflict of interest, it would be improper for him to retain Bruce Bozeman as private counsel in this matter.

• Mr. Scheinkman Suggested, and the Committee accepted, the name of William Wood, Esq. To be retained as outside counsel in place of Brice Bozeman, Esq.

On motion of Legislator Kaplowitz, seconded by Legislator Stewart-Cousins, the motion to approve this item was carried by a vote of 8-0.

14. Lawsuit Settlement: Proposed Act authorizing the settlement of the

• This Action was brought by Amy Schillinger for monetary damages for personal injuries allegedly sustained by Ms. Schillinger when a County-owned articulated bus operated by Liberty Lines ran over her left leg and foot.
• This legislation would authorize settlement by payment of $200,000 to Amy Schillinger.

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• The proposed settlement would be comprised of $100,000 from the County and $100,000 from AIG which provides excess insurance liability for the County’s buses operated by Liberty Lines.
• To date, Ms. Schillinger has received $46,731.96 in no-fault benefits, paid from the County’s $100,000 self insured retention fund. The proposed settlement requires the County to tender the remaining $53,268.04 of the retention fund and the additional $100,000 to be paid by AIG.

• Mr. Kaplowitz disclosed that has he has an outside business contract with AIG, non-related to this matter.
• Mrs. Carsky disclosed that the plaintiff’s attorney is a neighbor, constituent and contributor to her campaign.

On motion of Legislator Swanson, seconded by Legislator LaMotte, the motion to approve this item was carried by a vote of 8-0.

24. Lawsuit Settlement: Proposed Act authorizing the settlement entitled Pentecost Contracting Corp. v. The County of Westchester, et al. (11/16/98)

• This legislation would authorize settlement by payment from the County to Pentecost Contracting Corp. in the amount of $275,000. Mr. Scheinkman stated that this is a good settlement as it would cost the County at least $275,000 in defense costs of this matter.
• This is an action for alleged breach of contract brought by the plaintiffs, Penetcost. Pentecost alleges that it suffered lost profit and was rendered insolvent as a result of the County’s breach of a construction contract.
• In February of 1992, the County entered into a contract with Pentecost for $7.5 million to widen Kensico Road. The project was originally scheduled for completion by October 31, 1993. Construction began mid-April, 1992. Pentecost alleges that while in the process of installing box culverts, telephone duct banks that were not properly reflected in the contract drawings were encountered. Penetecost refused to return to the project because of the difficulties encountered on the job site. On April 7, 1994, the County terminated the contract with Pentecost for default. The County gave notice to the bonding company, Hartford Fire Insurance Company which retained the firm County Asphalt Inc. to complete the work. As a result of the delays, the County’s consulting engineer, Rudolph C. Petrucelli, continued to oversee the project although his contract with the County was not extended. The project was completed on or about October 30, 1994.

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• In September of 1994, Pentecost commenced an action against the County alleging, among other things, that due to the County’s wrongful termination of the construction contract Pentecost suffered lost profit and was rendered insolvent. Pentecost alleges that the County failed to provide proper contract plans and specifications and that the improper plans prevented it from performing the contract in an orderly and efficient manner.
• The Committee expressed concern that Mr. Petrucelli worked for the County when the project was proposed, then left the County’s employ and became a consultant on the project. There was concern that settlement of this lawsuit would compromise recovery in other matters and affect outstanding issues with regard to services rendered during the course of this project by the County’s consultant, Mr. Petrucelli. Mr. Scheinkman assured the Committee that this settlement will not affect the other pending matters.
• The Committee requested a complete record of how this job was awarded to Mr. Petrucelli, including meetings of the Prequalification Board meetings. Mr. Scheinkman stated that his office will provide the information.

On motion of Legislator LaMotte, seconded by Legislator Kaplowitz, the motion to approve this item was carried by a vote of 8-0 with Legislators Carsky, Swanson, and Young signing "Without Prejudice".

22. Budget Transfer: To provide sufficient appropriations to pay the settlement of the lawsuit entitled Pentecost contracting Corp. v. County of Westchester, et al. (11/16/98)

• Mrs. Swanson requested a summary of what has been spent so far on consultants and legal fees with regard to this project.
• Mrs. Carsky requested a complete work-up of this capital project.

On motion of Legislator Kaplowitz, seconded by Legislator Swanson, the motion to approve this item was carried by a vote of 8-0 with Legislators Swanson and Carsky signing "Without Prejudice".

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22. Compromise of Health Care Claims: Proposed Act authorizing the County Attorney to compromise the County of Westchester’s right to be reimbursed for health care benefits expended on behalf of the listed insured’s recovery from legal action or settlement. (11/16/98)

• Mr. Scheinkman briefed the Committee on the 4 cases in the amounts of $190.67; $19,585.32; $500.00 and $11,095.69.

On motion of Legislator Young, seconded by Legislator Carsky, the motion to approve this item was carried by a vote of 8-0.

1. Settlement of Arbitration-Westhab:

• Mr. Scheinkman explained that the Administration will not be asking the Board to approve this particular settlement as another settlement agreement is currently being worked on. Westhab has asked that this settlement not be withdrawn until a new one is agreed upon. Committee will move this item from the active agenda to a "Pending Lawsuit/Settlement File".

The following items were Received and Filed on motion of Legislator Young, seconded by Legislator Kaplowitz, by a vote of 8-0.

1. Tentative Contract Settlement – New York Nurses Association: A letter from the President and CEO of the Westchester County Health Care Corporation detailing the terms and conditions of the proposed settlement with the NYS Nurses Association. (11/2/98)

9. Elimination of #77 Bus Route: Resolution adopted by Town of Yorktown requesting the reconsideration of the proposed elimination of the #77 bus route. (12/14/98)

17. Funding For Pest Management Committee: Funding request from the Chair of the Westchester County Pest Management Committee. (5/4/98)

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Mrs. LaMotte stated her concern with regard to doctors no longer accepting specific insurance plans (i.e. POMCO) and the process with which people are notified. The Committee will meet with Phil Speziale on this matter.

Mr. Mosiello stated that the state equalization rates were determined on December 11^th, the Board voted on the County Budget on December 15^th, and the Board did not receive the information until December 17^th. He stated his concern that the information was deliberately withheld and said that it should be given to the Legislators as soon as it is received, before the budget is voted on.

Mr. Boland reviewed the January 7^th A&C Calendar with the Committee.

Committee will give specific questions and concerns to Mr. Boland

There being no further items for discussion, on motion of Legislator Mosiello, seconded by Legislator Stewart-Cousins, the meeting was adjourned at 11:20 a.m.