BOARD OF FINANCE

Minutes of the

July 8, 2014 REGULAR Meeting

Chairman Douglas Glazier called the regular meeting of July 8, 2014, to order at 6:30 P.M.

Board Members Present: Douglas Glazier, Chairman

Sandra Ferrari

Michelle Hill

Paul Harrington

Stephan Brown, Jr

Norman Boucher

Board Members Absent: Cornelius O’Leary

Michael Ciarcia

Also in Attendance: Catherine Cabral, Finance Director

Steven Wawruck, First Selectman

Kevin Brace, Chairman, Police Commission

Attorney Kevin Deneen

Norman Boucher, Alternate Member, will be voting for Board Member Michael Ciarcia, and Stephan Brown, Jr., Alternate Member will be voting for Board Member Cornelius O’Leary, for this evening’s proceedings.

ADDED AGENDA ITEMS:

There were none.

DISCUSSION AND ACT ON SETTLEMENT REGARDING ROBERT KOISTINEN:

Chairman Glazier stated there are two issues regarding Robert Koistinen. He stated that this evening the Board of Finance will be discussing only the issue of Attorney fees for a court case which recently settled. He also stated the appeal for the Labor Board decision is a different issue.

Chairman Glazier then invited Attorney Kevin Deneen and Kevin Brace for discussion regarding the $157,000 in attorney fees and $30,000 for economic losses.

Board of Finance

Minutes of July 8, 2014 Regular Meeting

Page 2

Attorney Deneen began by stating there are two on going matters relating to Mr. Koistinen. He then stated the matter we are dealing with this evening is referred to as an indemnity claim, which applies only to police officers. He stated there is a Connecticut State Statute, which states if you are arrested during the course of your duties, and acquitted, the employing department must pay all legal fees and any economic losses associated with the arrest.

Attorney Deneen stated he has reviewed the fees submitted by Attorney Spector. He stated the charge of $250.00 per hour is a reasonable level for the nature of the charges. He stated if this matter would go to trial, the town would be responsible for attorney fees for both sides.

Kevin Brace stated he would like to say that neither the Police Commission nor the Police Department were involved in the investigation or arrest.

Norman Boucher asked if the bill was audited by a Certified Public Accountant. Attorney Deneen answered no, and stated he felt comfortable in reviewing the billing.

Stephan Brown questioned if the fees were relating to Robert’s case only, since Attorney Spector was working on Michael’s case for a time. Attorney Deneen stated the fees are relating to Robert’s case only.

Stephan Brown also questioned why Attorney Spector would need to be present during jury selection for Michael’s case. Attorney Deneen stated it would be common practice in a case of this nature.

Norman Boucher questioned where Attorney Deneen’s fees are being paid from. First Selectman Wawruck stated his fees are paid from a budgeted line item for Labor Attorney.

Michelle Hill questioned the statute number. She also verified the amount, and questioned if this is paid would there be a trial. Attorney Deneen stated the Statute is section 53-39a. He also stated if this is paid, there would be no trial.

Paul Harrington questioned why Attorney Spector’s fee went up in January 2012 from $250.00 per hour to $350.00 per hour. Attorney Deneen assumes the fees were increased for the year 2012. He also feels the fees are reasonable. Attorney Deneen then stated he has received an additional billing for $11,000.00, for fees since the agreement for the $187,000 was reached. He then stated if the agreed amount is paid, the $11,000.00 will not be added on.

After brief further discussion Chairman Glazier asked the Board for further questions. There were none. He then asked for a motion.

Board of Finance

Minutes of July 8, 2014 Regular Meeting

Page 3

Sandra Ferrari made a motion to approve the Robert Koistinen settlement payment of $187,163.63 from the Unassigned Fund Balance for the fiscal year 2013-2014, and to forward to the Board of Selectman for a Town Meeting. Norman Boucher seconded the motion. All were in favor. The vote was 6-0, and the motion was approved.

Norman Boucher questioned if this would affect the Town’s bond rating. Catherine Cabral stated that using the fund balance would be appropriate since it is not being budgeted or is not an anticipated amount.

Chairman Glazier thanked Attorney Deneen and Kevin Brace for attending.

MINUTES OF PREVIOUS MEETINGS:

Chairman Glazier referred to the meeting minutes of June 24, 2014, asking for any changes or corrections. There were none.

Michelle Hill made a motion to approve the minutes of June 24, 2014 as written. Paul Harrington seconded the motion. All were in favor. The vote was 6 -0, and the motion was approved.

CHAIRMAN’S INPUT:

Chairman Glazier stated he would like Catherine Cabral to update the Board on a new regulation regarding financial advisors.

Ms. Cabral stated that Webster Bank has been our financial advisor for many years. Since there is now a new regulation in effect as of 7/1/14, Webster Bank will no longer be in the financial advisor business. The new regulation states that banking and financial advising must be separate. She stated eventually we will be looking for a new financial advisor.

PUBLIC INPUT REGARDING BOF MATTERS ONLY:

Town Resident Michael Bracken voiced his opinion on the involvement of Attorney Deneen in the Koistinen matter.

Mr. Bracken then stated Chairman Glazier had not responded to his letter regarding his matter. Chairman Glazier stated he could answer him verbally if he would like. Mr. Bracken agreed. Chairman Glazier stated the payments to Attorney Deneen were paid from Attorney Fees, and the Neurological bills were paid from Insurance and Bonds. Mr. Bracken was not satisfied with the response.

Board of Finance

Minutes of July 8, 2014 Regular Meeting

Page 4

Town Resident William Rousseau questioned if the Town could purchase insurance to cover such issues as the Koistinen matter. First Selectman Wawruck stated there is no insurance coverage available for issues as this.

A motion was made by Norman Boucher, seconded by Stephan Brown , to adjourn. The vote was unanimous and the meeting stood adjourned at 7:35PM.

Respectfully Submitted,

Linda A. Kuchta

Recording Secretary