Update: Christine Stulsky, a longtime Southold Town employee who recently resigned amid a DA investigation into the theft of money from the town justice court will be surrendering to authorities Friday, said a DA spokesman.

Ms. Stulsky will be arraigned about 11 a.m. Friday before Judge James Hudson in the Suffolk County Criminal Court building at the County Center in Riverside.

The exact charges she’s facing were not immediately known.

She is suspected of stealing “a substantial amount of money” while serving as the senior justice court clerk, sources have said.

District attorney Thomas Spota issued a statement early Friday saying analysis of paper and electronic records of the management of money continues.

“We are fortunate to have in the office meticulous professionals with investigative skills who are trained in forensic accounting and they have found evidence of asset misappropriation in this ongoing investigation,” Mr. Spota said.

Original story: The senior justice court clerk for the Town of Southold is responsible for the management of all court accounts. Handling receivables, bails and fines are among the many responsibilities of the job.

And while the elected justices are the public faces who essentially run the courts, the senior clerk holds a key position, overseeing the administrative functions of the office where four other clerks also work and which handles about $200,000 in revenue each year.

On Tuesday, the Southold Town Board accepted the resignation of senior justice court clerk Christine Stulsky, a town employee for more than 30 years, who is now the subject of a probe by the Suffolk County District Attorney’s office, according to sources familiar with the investigation. 

Ms. Stulsky, 64 — Southold Town’s second longest tenured employee and a former secretary for its Board of Ethics — is facing imminent charges that she stole from the town court for much of the past decade.

While many of the details of the investigation have not yet been released, including the amount of money she’s accused of stealing, DA spokesman Robert Clifford offered the following statement Tuesday afternoon, hours before the Town Board accepted Ms. Stulsky’s resignation, retroactive to March 19.

[Editorial: The proper steps toward protecting people]

“To date the investigation has covered the previous four years and the DA has decided to expand the investigation in terms of looking further back to establish over what period of time these thefts occurred,” Mr. Clifford said. “What our investigative auditors find in terms of theft would relate of course to the criminal charges the suspect will face.”

In an interview Wednesday morning, Southold Town Supervisor Scott Russell said the town is waiting for the details of the investigation to fully determine what preventive measures the town will take to ensure similar incidents don’t occur in the future.

“It’s very difficult to evaluate until we have all the facts,” Mr. Russell said.

But the town has begun its own investigation into the matter, voting Tuesday to hire AVZ Certified Public Accountants to conduct an audit of all justice court accounts. Mr. Russell said that while AVZ also conducted the town’s most recent independent audit, the scope of that financial review did not include justice court receivables, which he said are audited each year by the New York State Office of Court Administration.

Mr. Russell added that he believes the state court system will ultimately need to take preventative measures.

“We’ll be having discussions with the court administration,” he said. “This rests with them and this town wants answers.”

Ms. Stulsky has been on accrued leave since early March, which is when Mr. Russell said the DA’s office notified the town justices about the investigation. He said the town audit committee — which comprises the supervisor, deputy supervisor Bill Ruland and a community member — then met with the justices before the matter was brought before the entire Town Board in an executive session earlier this month.

The board approved Ms. Stulsky’s resignation Tuesday, though she had not yet surrendered to authorities.

“The timing of the resignation has no bearing on her pension,” Mr. Russell said, addressing concerns from the public. “That criteria is determined by the New York State Retirement System. If you’re vested, you qualify.”

Ms. Stulsky did not answer the door at her home in New Suffolk, where laborers were working on her house this week. She also did not respond to a message seeking comment.

Ms. Stulsky’s base salary this year was about $58,000 for a 35-hour work week, according to the town’s most recent civil service contract, though online records indicate she made more than $60,000 in gross pay in each of the past three years.

In 2006, she was appointed unanimously by the Town Board to serve a one-year term as secretary to the Board of Ethics, a paid position of five additional hours per week. A motion to appoint her to a second term in that position was withdrawn in January 2007 amid concerns over the procedures of the board, which had not held a formal meeting in over two years, according to a Jan. 4, 2007, Suffolk Times report. The Town Board accepted Ms. Stulsky’s resignation from her role with the ethics board that same week and her replacement was appointed at the following Town Board meeting.

Mr. Russell said he was not aware of any concerns with Ms. Stulsky’s performance in her role as secretary of the Board of Ethics and that she resigned voluntarily from the position. He called the ethics board era a “frustrating time.”

“We had an ethics board that never met,” he said.

Court records indicate that the year Ms. Stulsky served as Board of Ethics secretary was also a difficult one for her financially. On June 28, 2006, while working at Town Hall, she was served with a summons to appear in court regarding a retail credit card on which she had defaulted, according to a court affidavit. That September, the court ordered the town to withhold income from Ms. Stulsky to satisfy the debt, according to a judgment filed in Suffolk County Third District Court. Ms. Stulsky also appeared in Nassau County court the same year over a default judgment on a loan from the Bank of Scotland, according to Nassau court records.

Mr. Russell said he had no knowledge of Ms. Stulsky’s personal financial difficulties.

Senior Town Justice William Price, who said he was speaking on behalf of all three town justices, said Wednesday it would be “inappropriate to comment on the matter.”

Ms. Stulsky served most often in the courtroom alongside Justice Rudolph Bruer, town officials said. A registered Conservative, she doesn’t appear to have any strong political party ties and town party leaders have been largely quiet during news of the investigation.

When reached for comment this week, town Democratic Chairman Art Tillman said he didn’t want to “wallow in it for political gain.”

“At the same time, whenever you have one party rule, which we have in this town, things like this easily happen,” he said. “It is really sad.”

Town Republican chairman Peter McGreevy said it’s not about party politics.

“Attempting to attach blame in this matter before the investigation is complete, and before anyone has been charged, let alone convicted, is simply premature,” he said. “Our court is part of the New York State Unified Court System and court revenue streams of this type are governed and audited by the New York State Office of Court Administration, not Southold Town. Therefore, any assertion that ‘one party rule’ may have impacted this matter is not only completely incorrect, but specious at best.”

gparpan@timesreview.com

Nuria Russell is escorted into Southold Town Justice Court Tuesday. (Credit: Paul Squire)

A New Suffolk woman was arrested early Tuesday morning following an incident at a Cutchogue house owned by Southold Town Supervisor Scott Russell, according to a press release issued by the Suffolk County District Attorney’s office. 

Nuria Russell, 50, the supervisor’s estranged wife, was charged following an incident at 9:30 p.m. Monday in which she allegedly broke a front window to gain entry into the supervisor’s house on Oak Street.  Ms. Russell allegedly violated an order of protection issued June 3 and served upon her Sunday by entering the house when Mr. Russell was present and again when she later phoned the supervisor from Southold Town Police Headquarters, according to the criminal complaint.  She was arrested at 12:50 a.m. Tuesday, a DA spokesperson said.

Appearing without an attorney in Southold Town court Tuesday, a barefoot Ms. Russell pleaded not guilty to two charges of second-degree criminal contempt and a charge of fourth-degree criminal mischief. She was released on her own recognizance by Judge William Price, according to the DA’s office.

Ms. Russell told Judge Price she is living with the couple’s two children at the house in Cutchogue and that as of Monday the supervisor was no longer living in the house.

“We are sleeping at Oak Street and it has been transitional,” she told the judge.

However, a DA spokesperson said Ms. Russell told police she lives at an address in New Suffolk. County court records show that a lease in Mr. Russell’s name at that same New Suffolk address expired at the end of April. An attorney for the New Suffolk property owner declined comment Tuesday.

Mr. Russell told police he stays at the Cutchogue address, the DA’s office said.

In 2011, Mr. Russell took a 17 day leave of absence from his Town Supervisor job following a police incident at the Cutchogue house that April. He said at the time police were responding to a 911 call “as a result of my poor health. The fact is that for some time now I have allowed myself to become physically and mentally fatigued.”

On her way into the courtroom Tuesday, Ms. Russell told reporters ”you’re supposed to be on my side.”

“I’ve done nothing wrong, just know that,” she said.

“I’m fighting a lot of injustices right now,” she added on her way out of the courtroom.

When contacted on his cell phone Tuesday, Mr. Russell called the arrest a “private family matter.”

“I hope our family privacy will be respected,” he said, declining further comment.

Ms. Russell is scheduled to return to town court July 18, though Justice Price said Tuesday that the town judges plan to recuse themselves from the case.

“I am going to do the arraignment and after that this case is going to be transferred to a different court,” he said.

gparpan@timesreview.com

The salary for the newly created position of Southold Town Justice Court director is getting bumped up before the job is ever filled.

After receiving little interest from qualified civil service candidates at a lower pay scale, town officials said, the Town Board unanimously passed a resolution Tuesday increasing the starting salary for the position from $63,000 to $80,000. 

“We have no interest from qualified parties at that [lower] pay scale,” Supervisor Scott Russell said during Tuesday’s board meeting.

The hope is that the higher wage will generate more interest among more qualified candidates, he said, adding that only two people applied for the position, with both lacking the necessary experience.

“They did not have the qualifications to run a justice court,” he said. “The idea is to give [the court justices] a hands on director to be there 8 a.m. to 4 p.m. as needed”

The board voted unanimously in April to create the position of Justice Court director in order to “keep all their options on the table,” after former Southold Town senior court clerk Christine Stulsky resigned amid an investigation into the theft of money from the court.

The position’s civil service base salary is now set at $80,000 and would increase to more than $94,000 after five years. The previous salary was approved at $63,000 and would have increased to nearly $74,000 in five years.

At least three residents expressed concern about the salary increase at Tuesday’s meeting, asking exactly what the qualifications for the position are and how the job would differ from other court positions that are already filled.

Noting that the court already has four part-time clerks, resident Benja Schwartz asked if their jobs could be evaluated further before adding a new position into the mix.

“It’s nice to know what the mix is made of [already],” he said.

Mr. Russell said, “There is a unique set of circumstances [in the justice court] that needs to be addressed affirmatively by this town.”

East Marion resident Linda Goldsmith, a member of the Oysterponds school board, called the salary increase unnecessary, saying it was possible “to find people to work, and good people to work,” at the lower salary.

She asked if the board had considered hiring a qualified candidate contingent upon their passing the civil service test, adding that she believes there are several local residents who might be interested in the position.

“You might not have had to raise the salary,” she said. “There are people in town looking to work.”

Mr. Russell said Monday that the Town Board has no immediate plans to fill the position, but board members are currently reviewing applications.

The Justice Court director would be responsible for collecting, depositing and recording all justice court fines, fees and bail payments, the supervisor has said. The director would also oversee maintenance of court records, prepare monthly reports for the state comptroller and assist the town justices in helping the supervisor prepare his proposed annual budget.

In March, the Town Board accepted the resignation of Ms. Stulsky, who, according to the Suffolk County District Attorney’s office, is suspected of stealing “a substantial amount of money” while serving as the senior justice court clerk.

Ms. Stulsky’s duties have since been assumed by other Justice Court employees and a full audit of the court is underway.

cmurray@timesreview.com

Southold Town is hoping to host a public meeting on helicopter traffic, an issue Southold Supervisor Scott Russell has called a top complaint among residents.

During its work session Tuesday morning members are scheduled to discuss the possibility of a community meeting about noise and other concerns created by helicopters flying over homes in Southold Town. No date or details have been decided, town special projects coordinator Phillip Beltz said Friday.

A proposed solution to the problem was enacted in 2012 by the FFA, which temporarily restricted helicopter traffic over North Fork houses. However, loopholes in the limitations have defeated the purpose, Mr. Russell said.

Moreover,  the air restrictions are set to expire in 2016.

Southold Town Board’s work session to discuss the public meeting on helicopter traffic is scheduled for Tuesday at 9 a.m. in the Town Hall meeting room.

Read the board’s full agenda below:

2014-07-15 Town Board – Full Agenda-1362

Fed up with the noise created by helicopters flying over homes in Southold Town, Supervisor Scott Russell is looking to hold a public meeting and possibly establish a town committee to help combat the issue on a state and federal level.

“I’m getting calls from residents all over Southold,” he said Tuesday morning during the Town Board’s work session. “We need to create rapid response plan.”

The meeting, which would take place at the end of the month, would bring Southold residents together with other groups advocating against helicopter traffic on the North Fork— such as Group for the East End  — to discuss strategies to reduce the number of helicopters flying overhead on their way to the South Fork, Mr. Russell said.

“We need to bring this whole thing together on the North Fork,” he said.

Ultimately, he’d liked to see Southold Town create its own action committee to work with regional groups as well as Congressman Tim Bishop (D-Southampton) and U.S. Senator Charles Schumer (D-Brooklyn) to resolve the noise problem.

Both the senator and the congressman has been pushing to make permanent a temporary Federal Aviation Administration restriction on flights over the North Fork that is set to expire in 2016.

The restriction mandates pilots fly the North Shore route, which require helicopters to fly over Long Island Sound between Huntington and Orient Point.  Unless otherwise authorized, they must fly one mile off the coast to limit noise for residential areas.

While towns to the west are supportive of the measure, Mr. Russell said loopholes have made the limitations moot for Southold residents. Pilots can deviate from those requirements for safety reasons, such as weather conditions or transitioning to or from a destination or point of landing.

Although no date has been set, Mr. Russell said he hopes to host the forum alongside Suffolk County Legislator Al Krupski (D-Cutchogue) during the last week of July.

cmurray@timesreview.com

Curbing the noise created by helicopters flying over houses in Southold Town is the topic of conversation at a meeting in Southold tonight.

Southold Town is hosting a public meeting along with Suffolk County Legislator Al Krupski to discuss possible solutions to address noise abatement and the reduction of helicopter traffic.

“The prevalence of helicopters and the associated noise has diminished the quality of life for many North Fork residents,” the supervisor said in a statement.

The meeting aims to bring Southold residents together with groups advocating against helicopter traffic on the North Fork — such as Group for the East End — to discuss strategies to reduce the number of helicopters that fly overhead on their way to the South Fork, town officials said.

One goal of the meeting is to establish a community advisory group. The committee would be responsible for working with regional groups, as well as Congressman Tim Bishop (D-Southampton) and U.S. Senator Charles Schumer (D-Brooklyn) to resolve the noise problem.

Speakers include Adam Santiago, District Director for Congressman Tim Bishop’s office; Kyle Strober, Director, Long Island District Office for Senator Charles Schumer; and Debbie Tinnirello, Long Island Regional Director for Senator Kirsten Gillibrand. In addition, several Citizen Advisory Council members from communities on the South Fork will provide their perspective, as well as local pilot Joseph Fischetti.

In an effort to accommodate all interested parties, panelists will speak for a total of five minutes and residents will have three minutes to ask questions or offer comments.

The meeting is scheduled for tonight, Monday, Aug. 11 at 6 p.m. at the town Recreation Center on Peconic Lane in Peconic.

cmurray@timesreview.com

Mattituck resident Teresa McCaskie talking with an FAA representative at Monday night’s meeting. (Credit: Jennifer Gustavson)

Frustrated by years of incessant helicopter flights over their homes and summer homes, more than 200 citizens showed up at a forum Monday night in Southold to demand real solutions to what’s become a huge problem in the otherwise quiet hamlets that dot the North Fork: noise pollution. 

From shutting down East Hampton Airport to calling on the Federal Aviation Administration to ban helicopter flights in the region altogether — no option was too extreme for residents, who told local, county, state and federal representatives that the amount of noise created by helicopters was “abuse.”

“Everyone here wants this stopped,” said Margret Skabry of Peconic. “Is that confusing to anyone? I really want you to start representing us. You need to take hold of the dragon — the Federal Aviation Administration.”

With helicopter traffic up 40 percent this year at East Hampton airport, according to a recent Newsday report, Southold Town Supervisor Scott Russell hosted the public meeting with the intent of uniting the community to put pressure on federal representatives and the FAA over its inadequate response to the thousands of noise complaints its received by East Enders since Memorial Day.

“We wanted to create a town committee, well, I don’t need five to seven people; I need 500 to 700 people,” Mr. Russell said.

Mr. Russell has advocated for an all-water route, which would require helicopters to fly around Orient Point to reach East Hampton.

Currently, helicopters pilots are required to use what is known as the North Shore Route. Instituted in 2012, the mandate was intended to direct flight traffic over Long Island Sound rather than homes along the North Fork and western Suffolk and Nassau Counties.

However, Mr. Russell said loopholes have made the limitations moot for North Fork residents. Pilots can deviate from those requirements for safety reasons, such as weather conditions — or transitioning to or from a destination or point of landing.

“No pilot should have the right fly over Mattituck High School,” said Teresa McCaskie, of Mattituck, who has been advocating against helicopter noise for years. ”No student, teacher or faculty member should be at risk because of some pilot’s quote-unquote choice to take the shortest route to get to and from East Hampton Airport. It should be changed to all pilots must fly around Orient Point.

“If none of these things can be put in place then I push that the airport should be shut down completely.”

The crowd’s anger intensified as regional FAA representatives who had showed to the event fielded public questions by responding “I don’t remember,” “Don’t quote me on that,” and “I don’t think any one can answer that.”

“What are you doing here?” one audience member yelled out.

“Is anyone there even listening to us?” said another.

Speakers at the event included Adam Santiago of Congressman Tim Bishop’s office; Kyle Strober of Senator Charles Schumer’s Long Island office, and Debbie Tinnirello, of Senator Kirsten Gillibrand’s Long Island office.

The elected leaders’ representatives each spoke to the crowd for a view minutes, promising their concerns are being addressed.

Local pilot Joseph Fischetti was also invited as  a speaker. County and state officials were also there.

The East Hampton Town board was not spared from the criticism either, though they weren’t present.

“We are being exploited [by East Hampton Town]” said Georgette Keller, of Jamesport. ” We have to go to those East Hampton town meetings”

“The goal here is to unite and get after East Hampton and get after the FAA,” said Bob Malafronte, chairman of the Sag Harbor Citizens Advisory Committee, a group that has been combating helicopter noise on the South Fork.

Mr. Russell called upon East Hampton Town Board members to better regulate the town’s airport, which draws 60 to 70 percent of the traffic, he said.

A welcome for Manhattan’s wealthy, the airport is open 24 hours a day serving primarily seasonal residents and visitors coming to and from the Hamptons via helicopter or private jet.

“Southold has become a doormat to East Hampton,” Mr. Russell said. “Doormats are meant to be walked on. As for East Hampton they had no problem telling me how they felt about the deer cull; I say it is time we return the favor.”

When asked later to expand on those remarks, Mr. Russell wrote via email:

“I received many emails from East Hampton residents outlining their opposition to the deer cull. Ironically, we received hardly any from our residents. I think that while they should feel free to weigh in on an issue whether they live here or not, we should feel free to do the same.”

cmurray@timesreview.com

Christine Stulsky, center, after she was released on a $10,000 bond in March.

The former Southold Town Justice Court clerk accused of stealing more than $50,000 from the town’s bail account has filed a breach of contract claim against the town in an attempt to receive retiree health insurance benefits and other payments, according to a notice of claim filed in June. 

Christine Stulsky, 64, of New Suffolk alleges the town deemed her retirement to be a resignation and has therefore denied her health benefits and “contractual accruals” owed to her upon retirement.

 Ms. Stulsky, who was hired by the town in 1980, sent Southold Town Supervisor Scott Russell a handwritten notice of her intent to retire on March 21, one day after the Suffolk County District Attorney’s office announced to the media it had launched an investigation into the theft of money from the Southold Town Justice Court. She had previously sent the supervisor emails on March 3, March 11 and March 19 stating that she intended to retire, according to a series of emails obtained by The Suffolk Times through Freedom of Information requests. The word resignation is not used in any of the written correspondences, records show.

But four days after Ms. Stulsky filed her handwritten letter to Mr Russell, the Southold Town Board voted unanimously to approve a resolution accepting Ms. Stulsky’s “resignation.”

The handwritten letter announcing her intent to retire was submitted by former Southold Town justice court clerk Christine Stulsky on March 21. Click the letter to enlarge.

“Ms. Stulsky notified Supervisor Scott Russell of her intention to retire,” the notice of claim reads. “[But] the Town Board unilaterally deemed her retirement to be a resignation. Based on this unilateral decision that Ms. Stulsky resigned, when in fact she retired,  the Town asserted that it is not obligated to pay for her retiree health insurance benefits or her contractual accruals.”

The notice of claim also states “it is not possible to estimate the amount of damages at this time because it is ongoing,” but Ms. Stulsky “is entitled to the relief of fully paid retiree health insurance benefits in retirement, medical expenses, including prescriptions, and other expenses, the payment of any or all accruals and any other relief that the court deems proper.”

Town attorney Martin Finnegan said Thursday that Ms. Stulsky has not yet filed a lawsuit against the town. A suit must be filed within six months of a notice of claim, he said. Ms. Stulsky’s notice of claim was filed June 2.

“There have not been any further litigation papers,” Mr. Finnegan said.

The notice of claim lists the town, Mr. Russell and the Southold Town Board of Trustees as defendants, though it was the Town Board and not the Trustees that accepted her resignation.

Ms. Stulsky pleaded not guilty to charges of felony grand larceny and defrauding government, and misdemeanor official misconduct, at her arraignment March 28. A county court clerk confirmed Thursday that the case is still under investigation and has not yet been before a grand jury. Ms. Stulsky has not been indicted on the charges, the county court clerk said.

Suffolk County assistant district attorney Melisa Bliss said during the March arraignment that Ms. Stulsky stole “in excess” of $50,000 from the bail postings made in town court. The funds she funneled were used for “everyday expenses,” such as groceries, pet food and cigarettes, Ms. Bliss said.

Ms. Stulsky could not be reached for comment this week. The phone number she gave on the notice of claim was the number to the Southold Town Justice Court. Another phone number she listed on an email announcing her intent to retire only contained nine digits.

With Paul Squire and Cyndi Murray

gparpan@timesreview.com

Two of four buildings that house six numbered apartments at the Cutchogue business property where town officials say people are living illegally. Residents there, who pay more than $1,000 a month, say they can’t afford to live anywhere else in town.

The Southold Town Board approved zoning changes this week that could lead to the building of higher density affordable housing complexes within the town. At least, on paper that could happen. The realities of economics and infrastructure were quickly noted. Specifically, Supervisor Scott Russell pointed out Tuesday that affordable housing complexes are often economically infeasible, even when developers are offered grant money. The town’s lack of sewer systems also poses a roadblock to such projects.

Words like “risk,” “hurdles” and “difficult” are often used at Town Hall in discussing affordable housing. But the Town Board needs to rise to this challenge — and with that, take some risks — because it can be argued that the lack of affordable housing for young working people starting careers -in Southold — and many others who have long worked in our largely tourist economy — threatens our long-term economic health and sustainability. The so-called brain drain that comes with a dearth of affordable housing is a slow bleed; hence, the issue has not received the level of public and government attention it deserves.

Deer and helicopters are in our faces; they cause people to react — and act. Yet no one packs Town Hall to talk about our big housing problem. Perhaps one glaring example of this can be seen at a former labor camp in Cutchogue, where tenants are willing to live year-round at rents of over $1,000 a month on a property that was cited by the town for housing people illegally, and where the county health department deemed the drinking water unsafe last year.

Those residents say they can’t find anything for less money.

In July, members of the town Housing Advisory Commission urged the Town Board to act on strategies outlined in the comprehensive plan.

“We need your leadership,” begged commission member Rona Smith. In that same conversation, the possibility of tax incentives for builders came up. Mr. Russell said the town would need state approval for such a program and suggested that the commission reach out to state Sen. Ken LaValle.

It is Mr. Russell who should be making that call.

Finding affordable housing for young professionals is a significant issue. It affects many local families and business owners and has no easy solution. It needs a serious response and leadership from the top — and soon.

Southold Town Supervisor Scott Russell. (Credit: Jen Nuzzo, file)

Speaking this summer about the dwindling size of the town’s police force, Southold Police Chief Martin Flatley said he was hopeful the town and its police union could hammer out a new contract for officers, paving the way for the department’s biggest hiring cycle in recent history.

If Town Supervisor Scott Russell’s $42.8 million proposed 2015 budget is any indication, the chief might just get his wish.

Mr. Russell included among the highlights of his proposed spending plan funding for the hiring of eight police officers, including six new posts that would be filled immediately and replacements for two retiring officers.

Chief Flatley said the hiring of new officers would be a huge boost for the understaffed department.

“Oh, definitely,” he said. “We’re operating 10 to 12 officers down most of the time.”

Mr. Flatley said an academy is planned for next month and he’s hoping to get any new officers hired in time to attend.

While the Town Board has budgeted for new hires in the past, the positions had not been filled as police continue to work without a contract. Mr. Russell said Tuesday he’s certain an arbitrator’s decision will be filed before the end of the year, and he expects the new contract will be in place for 2015, enabling the town to bring its police force up to 50 officers.

“I’m getting the feeling that both [Russell] and the board are in favor of the hiring,” Chief Flatley said. “I’m not encountering any resistance.

“It’s something that should be coming soon.”

HARD CHOICES

The supervisor’s proposed budget includes a 1.37 percent hike in overall spending next year, and an estimated 1.45 percent tax levy increase for local taxpayers.

While he called the financial outlook for the town in 2015 “good,” Mr. Russell said that in order to keep increases low and not pierce the state’s mandated 2 percent tax cap, “hard choices will need to be made.”

The supervisor’s budget message released Tuesday opens by saying “the budget I am proposing will present challenges to the Southold Town Board.”

“No budget is an isolated document and the decisions we need to make over the next few weeks will not just impact the budget for 2015 but will also impact budgets for subsequent years,” the supervisor wrote. “The budget I am submitting addresses the town’s general needs for next year while adhering to the adopted policies of the past that have served this town well.”

LAND PRESERVATION

The portion of the proposed budget dedicated to land acquisitions is expected to triple to $6.9 million next year.

“That figure estimates the cost of a few pending large projects,” Mr. Russell said in an email, declining to mention any specific properties. “The figure we estimate each year is the amount we believe we will need to close on properties that have already been reviewed by the land preservation department and there is general support for purchase.”

Mr. Russell said the estimate doesn’t mean the town is any more or less committed to preservation from year to year.

“It is just the estimate needed for pending projects that we believe [the town] might close on in the coming year,” he wrote. “Some projects take years to complete and it’s just timing.”

Overall spending from the community preservation fund would be about $9.9 million next year, with other monies going toward debt, stewardship, site development and legal counsel.

The town is projected to bring in about $5.5 million in new CPF revenues in 2015 and the proposed budget would utilize another $4.4 million from the fund.

REMAINING HEALTHY

While the supervisor described the town’s financial picture and its fund balance as healthy in his budget message, he cautioned that “all future capital projects and capital purchases should be made only after thorough vetting.”

“Fixed costs of debt service can substantially limit the discretionary spending of future boards and could make it very difficult to comply with New York State’s 2 percent tax cap legislation,” he wrote. “No future bonding should be executed until capital plans for infrastructure, building assets and equipment are completed.”

The supervisor’s budget proposes spending $1.2 million on capital projects in 2015, mainly through equipment purchases.

About $700,000 of that spending will be used to purchase a compost mulch turner and a payloader.

OFFICIALS TO TAKE SMALL RAISES

The combined salaries of all elected town officials would increase about 1.5 percent under the supervisor’s proposal. Total funding for all 19 elected positions would go from just over $965,000 in the current year to about $980,000 in 2015.

The proposed salaries are as follows:

Town Supervisor — $102,370

Town Board (4 members) — $33,716

Fishers Island Town Justice — $51,415

Southold Town Justice (2) — $68,969

Town Clerk — $98,639

Superintendent of Highways — $102,370

Tax Receiver — $38,486

Assessors (3) — $73,728

Trustees (5) — $18,619

gparpan@timesreview.com

The accident scene Monday night. (Credit: Jen Nuzzo)

Southold Town Supervisor Scott Russell walked away unharmed from a single-car crash in Cutchogue Monday night after his town-owned vehicle flipped on its side and skidded into a marsh, town police said.

Mr. Russell, 50, of Cutchogue, was driving alone and headed south on Skunk Lane near Haywaters Drive when his 2014 Ford Escape slid off the road, “rolled and came to a rest on the driver’s side” at around 9:30 p.m., according to a Southold Town police press release. It had been raining earlier that day.

Reached by telephone Tuesday morning, Mr. Russell said he was feeling OK. He said he was on his way home after picking up medicine for his son when the accident occurred.

Mr. Russell said this is the first time he has been at fault in an accident since he began driving a town-owned vehicle 10 years ago. He has been involved in three accidents in town-owned vehicles since 2012, records show.

Southold Town Police Lt. James Ginas said at the scene that he believes the day’s heavy rainfall kicked a lot of gravel onto the roadway, contributing to the accident. The police press release states Mr. Russell “reported sliding on wet leaves.” The accident occurred on a bend in the road, where the posted speed limit is just 20 mph.

A portion of Skunk Lane remained closed for about an hour after the crash.

Mr. Russell exited the vehicle on his own before the Cutchogue Fire Department arrived on the scene, police said. He was escorted home by a police officer, he said. The police report states that the damage to the SUV exceeded $1,000.

Lt.  Ginas said no alcohol was involved in the crash and no charges were filed.

A town highway crew was on the scene the next morning to remove debris from the site. Highway Superintendent Vincent Orlando said the crew was responding to a call from a Skunk Lane resident who asked that a tree damaged in the incident be removed. The resident confirmed the call.

jnuzzo@timesreview.com

A Southold Town highway crew arrives at the site of the accident at 11 a.m. Tuesday. (Credit: Grant Parpan)

Vineyard 48. (Credit: file photo)

A New York State Supreme Court judge has ruled that Vineyard 48, which residents have described as more of a dance club than a tasting room, may keep its liquor license. And Southold Town officials are already planning to appeal that decision.  

The ruling, handed down Nov. 5 by state Supreme Court Judge Doris Ling-Cohan, called the New York State Liquor Authority’s decision to revoke Vineyard 48’s license last December “unnecessarily harsh, shockingly disproportionate to the offenses,” according to court documents.

Officials in Southold Town, which has also taken legal action against the Cutchogue vineyard, citing violations against its previously approved site plan, said they are “outraged” by the court’s decision and plan to appeal the ruling.

“We are outraged that a sitting judge of New York State, who we assume has never been to Southold, could deliver such a decision,” Supervisor Scott Russell said in an email Tuesday night. “We believe that the decision is not supported by the facts of the case or the law. We look forward to the decision being overturned on appeal.”

Vineyard 48 has been no stranger to controversy.

The SLA began investigating the vineyard in May 2013 after nearby residents complained that the winery was being run like a nightclub and was disrupting their quality of life.

The vineyard owners stood accused of violating eight alcoholic beverage control laws, including engaging in improper conduct by operating as a nightclub, using a DJ and permitting a dance party-type atmosphere and creating or permitting conditions that adversely affected the health, welfare and safety of the community, according to court documents.

However, the Nov. 5 decision states that because the SLA does not currently provide a definition of what constitutes a legally acceptable wine tasting, Vineyard 48 was not in violation of alcoholic beverage laws.

Without clear definitions, the judge dismissed claims that dancing on the premises and the operation of the winery’s cigar shop are illegal.

Peter Sullivan, attorney for the vineyard owners, said Wednesday he hoped the judge’s decision motivates the SLA to outline comprehensive regulations for wineries that will give them the clear ability to provide entertainment to draw in customers.

“The state and the SLA need to take the time to figure out how we are going to protect the wine industry on the North Fork,” Mr. Sullivan said. “In order accomplish that, there needs to be comprehensive regulations developed and, of course, enforcement of those regulations.”

Mr. Sullivan said he stands by the judge’s ruling and looks forward to resolving any further legal matters with the Town of Southold.

cmurray@timesreview.com

Responding to criticism that he may have fallen asleep during a recent Town Board meeting, Southold Town Supervisor Scott Russell said Tuesday that he was actually sending a text message. 

Editor’s Note: This story was updated Thursday after the supervisor apologized for giving a misleading statement in his previous interview. Read the update by clicking here.

In a video of the incident, which was filmed during the Oct. 7 Town Board meeting and aired on Channel 22, Mr. Russell appears to nod off as Councilman Bill Ruland reads a resolution. Eight seconds after the resolution is read, Mr. Ruland asks Mr. Russell if he is going to call for a vote.

“Are you OK?” Mr. Ruland asks the supervisor after seven more seconds pass and the vote is still not called. The councilman then gently places his hand on the supervisor’s back.

“Mmm, hmm,” Mr. Russell responds, though he doesn’t immediately call for a vote.

It isn’t until another 20 seconds pass that Councilwoman Louisa Evans prompts him and Mr. Russell finally asks, “All in favor?”

Moments later, he stumbles over his words when asking if anyone from the public wants to address the board during the public comment portion of the meeting.

An unedited video of the entire Oct. 7 meeting is posted on the town website. The incident in question appears after the 26-minute mark.

But two days after the meeting, an edited version of the video was posted on YouTube and has since been viewed more than 300 times. A caption placed over the edited video reads “Asleep at the wheel!”

Several readers brought the incident to the attention of The Suffolk Times after Mr. Russell was involved in a single-vehicle crash on Skunk Lane in Cutchogue Monday night. The supervisor’s town-owned SUV was turned on its side during the crash, but he walked away uninjured. He said his vehicle skid on wet leaves in the roadway.

Reached by telephone Tuesday, Mr. Russell said “there is no relation” between the Oct. 7 incident and the crash.

“I wasn’t sleeping, I was texting,” he said of his apparent lack of attention during the meeting. “I shouldn’t have been texting.”

Town Board member Bob Ghosio said he noticed that something happened but doesn’t believe Mr. Russell dozed off.

“I can’t say what it was or what had caused that,” he said. “After a couple of minutes he shook it off and everything looked fine. Immediately after he seemed a little disoriented. I have seen a lot of things in my life and I can tell you he definitely didn’t fall asleep. That wasn’t a person falling asleep.”

gparpan@timesreview.com

Southold Town Supervisor Scott Russell apologized Thursday, saying he misled a Suffolk Times reporter and the public this week when he stated that he was texting during a recent Town Board meeting when he had actually “zonked out.”

Mr. Russell said he had recently completed the town budget process and had been battling a stomach virus prior to the Oct. 7 meeting, which was captured on video. He said his doctor prescribed medication – which he identified in an email as Phenadoz — that he now believes he “shouldn’t have taken.”

“I probably shouldn’t have even been at the meeting,” Mr. Russell told a Suffolk Times reporter and two editors in an interview at Town Hall Thursday. “I get criticized because I’ve been missing a lot of meetings … and I really didn’t want to miss the meeting. I was just out of it. I zonked out. I passed out. I was tired. I was extremely mortified and embarrassed by it.

“After I had sort of woken up, I was a little disoriented. I was struck with fear and I just wanted to get out of there. But you don’t know who sees it; no one said anything.”

Mr. Russell said that when he was approached by a resident the day after the meeting about why he appeared to be asleep, he told her he was sending a text message. He said he regrets repeating that version of the story to a reporter.

“I thought the whole thing would blow over,” he said Thursday. “It’s humiliating. It hasn’t happened to me before and it hasn’t happened to me since.

“I didn’t understand why I could have a setback and have it become such a public spectacle. In retrospect, I probably did that to myself.

“I think I insulted the intelligence of the public, frankly.

“The public has a right to know I wasn’t forthright and that I tried to mislead [the newspaper] — and them as a result.”

gparpan@timesreview.com

The Fishers Island Theater is set to be renovated using $50,000 in federal funding. (Credit: Grant Parpan)

With federal funding for community projects dwindling again this year, the Southold Town Board is setting aside most of the money it receives for renovations at the Fishers Island Theater, according to town documents. 

A breakdown of the $74,310 the town will earn through the Community Development Block Grant shows $50,000 of the money will go towards the renovation project on Fishers Island.

The historic theater was temporarily closed over the summer after it was labeled a “danger.” Southold Town workers made quick repairs to make the building safe again, but a full renovation is still needed, town employees said last month.

Supervisor Scott Russell said a full renovation would cost millions, but added the town would only spend enough to make it “safe and serviceable.”

“It’s a community asset that’s heavily used,” he said. The remainder of the renovation costs — which will likely total in the hundreds of thousands — will be paid for by the town using public works funds, he said.

Of the remaining Community Development Block Grant money, more than $11,000 will go to fund public services, more than $9,400 will be used for landscaping and irrigation at the Peconic Lane Community Center, and about $3,700 will pay for administration costs, according to the breakdown.

The document also shows that Community Action Southold Town and Maureen’s Haven will each receive $5,573 in funding.

Last year, the town received $79,915 through the grants, Mr. Russell said. The year before, the town had won $163,334 — more than double what the town was awarded this year.

Town special projects coordinator Phillip Beltz said the decrease in funding forced the town to “get creative” with how the money is dispersed next year.

The Town Board approved the resolution to assign the community grant funds at its meeting Tuesday night, with Councilman Bill Ruland abstaining, since his wife is poised to become the next executive director of CAST.

psquire@timesreview.com

With Grant Parpan

Supervisor Scott Russell addressed the North Fork Chamber of Commerce during its meeting Friday. (Credit: Cyndi Murray)

Addressing members of the business community Friday, Southold Town Supervisor Scott Russell said the town is keeping commerce in mind as it crafts new policy.

Mr. Russell pitched ideas while also requesting input on legislation from the business community during the North Fork Chamber of Commerce’s breakfast meeting at Six Three One in Southold.

“I am getting a healthy dose [of opinions] for the residential community and I need input from the business community,” Mr. Russell said.

Chamber members were happy to oblige, voicing their stance on short-term rentals and a proposed ban on plastic bags in town.

Here are the highlights:

Short-term rentals

Regulating short-term rentals is a top priority for the town in 2015, Mr. Russell said.

Frustrated residents have been coming out in droves to voice opposition to websites such as Airbnb and HomeAway that allow homeowners to lease their properties for a brief as one night. Residents complain the homes have become hotel-like operations that are disrupting otherwise quiet neighborhoods.

On the flip side, however, more people means more business for local proprietors, business owners argued Friday. They also said homeowners renting rooms should be held to the same standards as a bed and breakfast. For example, they said, it is unfair for a bonafide hospitality business to be burdened with the county’s hotels and motels tax, while homeowners that rent rooms are not required to pay a similar fee.

“It is good for the local businesses to have the increased traffic but we do need to keep it on the same playing field as what the B&Bs go through,” said Joe Corso of Peconic Retreat.

While Mr. Russell said the town could not affect the county’s taxing, Legislature Al Krupski (D-Cutchogue) told the audience he has been working with county lawmakers to amend the tax when it is up for renewal next year.

On the local level, North Fork Chamber of Commerce president Tom Scalia said the group would begin drafting and later present its official position on regulating short-term rentals to the Town Board.

Plastic bag bans

Mr. Russell told chamber members the town would not impose a ban on the use of plastic retail bags. At least, not until the rest of the region adopts a similar policy.

Mr. Russell said the cost of paper bags is almost seven times the cost of single-use plastic bags, and it was too much to ask of small businesses.

“I have a hard time layering those cost on local businesses that are already trying hard to compete with the purchasing power of the western giants in Riverhead,” he said. “We are hoping for a regional approach. That would put all business on the same playing field.”

His remarks come nearly five months after residents overwhelmingly favored a ban during a forum hosted by the town. The town’s decision to put the brakes on the law, however, was well received by chamber members Friday.

“Your approach is nice,” said Robert Scott, owner of Robert’s Jewelers. “I don’t want to have to do it if the town next to me isn’t doing it.” 

Opening up more areas to business 

The town is currently drafting legislation that would allow businesses to open in areas where zoning has traditionally prevented it, specifically church properties.

As an increasing number of church buildings are being put on the market in Southold Town, the board is aiming to craft a law that would allow commercial businesses to purchase and operate in those buildings.

The law would allow potential buyers to apply for special exceptions in the code that allow town-approved adaptive reuses for such buildings. Some suggested reuses include turning the buildings into apartment units, B&Bs and indoor farmers markets.

Additionally, the Town Board is drafting another code change to expand the town’s designated agricultural zone. This would pave the way for companies like Celestial Shrimp, which would currently only be allowed in the town’s marine district. Owners Todd and Tess Gordon are hoping to construct a freshwater shrimp farm, where up to 300 to 400 pounds of shrimp could be harvested weekly. However they would needs the board’s approval to build the farm outside the marine zone.

“When the code was written it didn’t anticipate these business models,” Mr. Russell said. “If there are issues there that are not in the code, bring them to us because we need to update the code with these new business models and incorporate them somehow.”

cmurray@timesreview.com

Detective Sgt. John Sinning from the Southold Police Department speaks during Thursday’s gang forum in Peconic. (Credit: Paul Squire)

About 100 people attended Southold Town’s information session about gang activity on the North Fork Thursday night. But even if you couldn’t make it, you can still listen in.

Click below for a full recording of the forum, including statements by Police Chief Martin Flatley, Supervisor Scott Russell and Greenport Mayor David Nyce. The question-and-answer portion of the meeting was also recorded.

Southold Gang Forum:

The Southold Town Board is set to approve the purchase of a new Ford Escape for Town Supervisor Scott Russell Tuesday night. 

The purchase comes two months after Mr. Russell was involved in a single-car crash in Cutchogue, totaling a town-issued 2014 Escape purchased a year earlier. He was driving alone on Skunk Lane near Haywaters Drive when his mini-SUV slid off the road, “rolled and came to a rest on the driver’s side” at around 9:30 p.m. Nov. 17, police said at the time. He exited the vehicle on his own and no violations were issued.

The purchase of the new vehicle — which Mr. Russell said will cost $24,500 — is partially covered by a $19,500 payment from the town’s insurance provider for the loss of the supervisor’s previous truck.

This is the fourth town-owned vehicle assigned to Mr. Russell since he took office in 2006. In 2012, the town spent $21,500 on a new Ford Escape to replace a 2002 Crown Victoria driven by Mr. Russell and his predecessor Josh Horton.

Mr. Russell was then issued a 2014 Ford Escape last year after the town reassigned his previous vehicle to a code enforcement official.

He said that since the crash he has been driving a town-owned 2002 Dodge van assigned to the general motor pool.

gparpan@timesreview.com

Misdemeanor charges filed against the wife of Southold Town Supervisor Scott Russell were dismissed Tuesday after the supervisor told a Riverhead judge he no longer wished to pursue the charges. 

Nuria Russell, 50, had faced two counts of second-degree criminal contempt, which stemmed from her alleged violation of an order of protection filed against her by her estranged husband, and one count of fourth-degree criminal mischief, stemming from her allegedly breaking a window in Mr. Russell’s Cutchogue home June 10.

The case was transferred to Riverhead Town Justice Court — where Judge Richard Ehlers presided Tuesday — after each of the Southold judges recused themselves from the case.

Ms. Russell did not appear before the judge Tuesday.

Southold Town needs to improve financial oversight with bidding procedures, payroll record keeping and cash deposits, according to a new state audit.

On Wednesday, state Comptroller Thomas DiNapoli’s office released an audit of the town’s finances between January 2013 through December 2013. The report found the town has failed to solicit bids and needs to improve financial policies and procedures to adequately safeguard monies collected in the Receiver of Taxes, Town Clerk and waste management departments.

“As a result of these deficiencies, there is an increased risk that town money could be lost or misappropriated or errors and irregularities could occur and remain undetected,” the audit states. “The [Town Board] does not have adequate assurance that goods and services are acquired at the best cost.”

[Scroll down to view the complete audit]

The report found the town made over $115,500 in purchases agreements that weren’t properly executed through a bidding process. For example, the town paid nearly $89,000 for police vehicle repairs to two vendors without soliciting other offers, according to the audit.

In the report, auditors noted that while Police Chief Martin Flatley said he maintained those services were exempt from the competitive bidding process and over $26,800 was used to purchase for emergency vehicle items, including lighting and radios, the town should solicit other offers in order to ensure the best cost.

The audit also shows the town authorized $23,000 in payments to an attorney without entering into a written contract.

As for payroll and timekeeping, the audit found the town needs to do a better job making sure current polices are followed.

“Employees were paid without adequate documentation for the hours worked and there was little uniformity in the timekeeping procedures, which could lead to errors or timekeeping abuse,” the audit states. “The [Town Board's] failure to require all departments to use the system has resulted in employees being paid without adequate documentation for the hours worked.”

The Tax Receiver’s office failed to maintain a running checkbook balance in its accounting records and check disbursements, according to the audit. Adjustments and bank transfers also weren’t accounted for, the report states.

In addition, auditors said employees use the same generic username to document electronic payments electronic, which makes it difficult to hold individuals accountable.

“There is an increased risk that town money could be lost or misappropriated without detection and errors or irregularities could occur and remain undetected,” the audit states.

In the Town Clerk’s office, the audit noted that the timeliness of deposits, daily cash reports and accountability within the department’s financial system were problematic.

“We were unable to verify if more than $1 million received by the Clerk’s office during our audit period was deposited intact and found that the Clerk’s bank balance exceeded the cash receipt records by more than $7,000 as of Dec. 31, 2013,” the report found.

Accounting errors with the waste management department’s transfer station were also included in the audit.

Monies were left unsecured in a mail slot overnight and deposits to accounts receivable weren’t completed in a timely fashion, the report states.

“While accounts receivable adjustments appeared reasonable, there was no indication of prior supervisory approval for the 47 adjustments we reviewed,” auditors wrote. “As a result, there is an increased risk that errors could occur and go undetected.”

Supervisor Scott Russell said in a response attached to the audit that the town will address each concern listed in the audit.

“The Town Board will review existing policies and procedures,” he wrote.

“We welcome these audits,” Mr. Russell later said, on Thursday. ” It gives us an opportunity to run government more efficiently.”

The Town Board is currently drafting a corrective action plan and hopes to have a draft completed within five to six weeks, he said. The town is required to submit the plan to the state within 90 days.

cmurray@timesreview.com

NYS audit of Southold Town, 2014