The City of Troy, New York, "Where Henry Hudson Turned Around."

Monday, June 19, 2006


Some more the Carignan files. Back to Harry again.

17 Q. Did you know at the time you executed the
18 Broker of Record Letter whether any of
19 those responses would save the City money
20 compared to the insurance costs for the
21 year 2004?

22 A. From the information that was provided to
23 me, I believed that we would be saving
24 money.

1 Q. As a result of quotations received through
2 the Request For Quotation process?

3 A. Whether it was quotations or communications,
4 I'm not aware. I was just -- I was led to
5 believe by my staff that we'd be able to
6 save money by executing this letter with --
7 what was it, Marshall & Sterling or
8 whoever, and working with Nicoll &
9 MacChesney.

13 Q. At the time, meaning late 2004, were you
14 under the belief that Nicoll & MacChesney
15 or Marshall & Sterling was offering the
16 City different insurance policies at
17 different costs than that offered by R. J.
18 Carignan?

19 A. I don't know the details. I just know that
20 we were going to -- I was told that we were
21 going to save money and we weren't going to
22 be altering the policies in any major way,
23 so that was my goal, to save money.

12 Q. Okay. Were you involved in coordinating
13 with Marshall & Sterling or Nicoll &
14 MacChesney a scheme in which you would
15 provide a Broker of Record Letter to
16 replace those agents as the insurance agent
17 for whoever responded with the best
18 quotation in response to the City's Request
19 For Quotations for 2005 insurance?

22 A. As a Mayor, I have the ability to enter
23 into a Broker of Letter Record (sic) with
24 an insurance company regardless of any RFQ,
1 that's what I was told by my corporation
2 counsel, and that's what we elected to do.

3 Q. And when did you first start working with
4 these agents to plan on providing them with
5 this Broker of Record Letter?

6 A. I'm not aware of the exact date.

7 Q. Can you give me an approximation?

8 A. No. Sometime before this time, but I don't
9 know when.

10 Q. Was it early 2004, the first quarter of
11 your administration?

12 A. The goal was to save money after the
13 increase in late 2003, early 2004, and my
14 staff, the corporation counsel,
15 comptroller, was working towards that goal,
16 I don't know when they began working
17 towards that goal, so that in 2005 we'd be
18 able to save money. And that's what we did.

19 Q. And was the goal to get the City the
20 cheapest insurance that it could or was the
21 goal to replace the insurance broker for
22 the City?

23 A. The goal was to save money, but keeping in
24 mind that as the Mayor, I have the right to
1 elect -- to choose whichever firm I want to
2 provide the City with insurance with.

3 Q. And did you choose to have the insurance
4 broker for the City of Troy be an insurance
5 agent who you viewed as more friendly to
6 your administration?

7 A. I chose somebody that I trusted and felt
8 comfortable working with him.

9 Q. And why did you trust Marty Keary?

10 A. Because I knew him -- I knew him from
11 speaking with him and I felt that they
12 would provide the City with an honest
13 estimate of what our insurance costs would
14 be.

15 Q. And when did you first meet Marty Keary?

16 A. Maybe two years ago.

17 Q. Approximately May of 2004?

18 A. Maybe early -- maybe 2003, probably. My
19 years are going by quick.

20 Q. Mine, too. And what was the context of
21 your meeting with Marty Keary?

22 A. I had seen him at different events
23 throughout the City.

24 Q. What kind of events? Political events?

1 A. Some political events, yeah.

2 Q. And what did Marty Keary say or do to earn
3 your trust in him and Nicoll & MacChesney
4 as the insurance agent for the City of
5 Troy?

6 A. Providing me with any kind of questions we
7 had and I felt comfortable with the guy,
8 that's all, his firm and -- and the comfort
9 stems from having a sudden increase in our
10 policy in 2003 which made me uncomfortable,
11 and I said that before, and I asked my
12 administration to keep their eyes open for
13 someone else, and when the opportunity
14 arose to make the change, that's what we
15 did.

16 Q. Regardless of whether or not the change
17 saved the City money?

18 A. Well, I believed that the change was going
19 to save us money on the information that I
20 was provided, and that is another reason
21 why we made the change.

22 Q. Through better packaging, that was your
23 understanding?

24 A. That's what was told to me.

1 Q. And as far as you know, that information
2 was all verbal about the better packaging?

3 A. As far as I know, yeah.

All that savings and nothing was put into writing. So, who made these verbal assurances that led the Mayor to believe there would be a $65,000 savings? Isn't that something you'd like to see in writing?

Once again, it's clear that Harry doesn't really know anything. He's relying upon others for this guareenteed savings. Specifically, he says it was the Comptroller and Corporation Counsel.

Later this week, we'll see what Ms. Witkowski has to say about all this.

So, let us sum up:

1- Carignan secured the policies;
2- Harry signs a broker of Record Letter so someone other than Carignan will receive the commission;
3- By suggesting options contained in the policy, Witkowski says the City saved under $10,000;
4- Harry did this because he felt comfortable with Marty Keary, having seen him at political events;
5- Harry announces that N&M saved the city $65,000;
6- N&M put nothing in writing.

You know what this smells like? You got it!

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