Carmel Town Board Signs Off on New MVFD Contract
Against the backdrop of an ongoing criminal investigation of possible embezzlement, the Carmel Town Board voted 4-1 on Feb. 24 to approve a one-year contract with the embattled Mahopac Volunteer Fire Department that includes a variety of measures intended to safeguard taxpayer dollars.
Voting against the contract, which will end on Dec. 31, was Councilman John Lupinacci.
US Attorney Prett Bharara is investigating a possible $5 million missing
from the department that apparently occurred for more than a decade. Originally, the Putnam County District Attorney’s Office was involved in the investigation, along with the New York State Police and state Comptroller Office.
The investigation became public last October and since then, high scrutiny has fallen on the department, one of three that serve the town of Carmel. One particular name from the department that has been at the forefront is Mahopac resident Michael Klein, the former treasurer of the department.
Supervisor Ken Schmitt said last week the contract changes, which include “fiscal safeguards” to protect taxpayers, were made in response to the investigation.
One of the new features of the contract is how the fire department will be paid. The department will receive $300,000 now, another $300,000 on April 1; another $300,000 on July 1, and the final payment of the year on Oct. 1.
The fire department has agreed to provide all documentation asked for by the town board on Dec. 8; submitting a copy of an independent audit of the department and agreeing to keep the town funds in a separate account and not mix it with its other revenues.
The contract also includes a provision to provide the town data including financial records at least every 35 days. The financial information will include copies of the front and backs of all checks.
The fire department will now conduct monthly meetings that will be open to the public.
There are also provisions regarding the department’s commissioners. The current commissioners will not be allowed to seek reelection at the conclusion of their terms, which are staggered. Any commissioner vacancies will now be filled by a vote by the membership to ensure that the new commissioners will have the support of a super majority of the district residents. Schmitt said he did not want the public to read into the requirement that current commissioners cannot run for another term as an accusation by the town board of any wrongdoing by them.
The town then has the right to terminate the contract with 90 days notice “In the event that any investigation, prosecution or other enforcement action by any county, state or federal agency results in the enjoining, cessation, or otherwise inability or failure by Mahopac to undertake the activities and obligations of performance required under this agreement.”
Lupinacci explained why he voted against the contract. “I’m not against the Mahopac Fire Department,” he stressed.
While the new contract included many positive provisions, Lupinacci said it did not go far enough to protect town taxpayers. “I wanted 100 percent,” he said. “I wanted a little bit more.”
The other town board members said they favored the new contract. Councilwoman Suzi McDonough praised the fire department officials who worked with the town to get a new contract. “They were very open,” she said. The open fire department meetings will allow residents of the fire district to speak, she noted.
Mahopac Volunteer Fire Department Treasurer Chuck Lewis said the department will no longer mix town funds with other revenues in its budget. An outside audit of the department is scheduled to begin in April and the first public commissioners’ meeting is also slated for April, he noted.
Resident Robert Buckley praised the efforts of the fire department and town officials to come up with a new contract. “It’s a great start,” he said.
The town board last week also approved a series of contracts with such entities as the Mahopac Falls and Carmel Fire Departments, the Carmel and North Salem Volunteer Ambulance Corps. and the Mahopac and Reed Memorial Libraries.
