Kiely paid $55K by Town in resignation agreement: Agreement bars Town officials from speaking on issue

Buried in a list of fund transfers approved by the Town Board Monday night was a $55,000 item listed simply under special items as “Contingent.”

This is the sum paid in two equal parts by the Town to former town attorney Stephen Kiely, who resigned on Dec. 27. In an agreement signed by Mr. Kiely on Jan. 4 and Supervisor Amber Brach-Williams on Jan. 6, the money was to be paid to the former town attorney after ratification of the agreement by the Town Board.

The agreement states that neither side can issue statements about the agreement, and it would become void if public statements were issued by either side.

Mr. Kiely has not responded to several efforts for comment and Ms. Brach-Williams said on Monday that she can’t comment.

The tone of the agreement clearly indicates in its language the separation between the Town and Mr. Kiely is in no way an amicable split. It is filled with language indicating the agreement is meant to keep both sides free from being sued by the other.

With payment of the first half of the money, Mr. Kiely agreed to release any claims he might have against the Town, with the document stating: “These include, but are not limited to any claims of any form of discrimination, specifically referring to age or disabilities.” There was no elaboration of how any such claims might be manifested by Mr. Kiely.

With the final payment, Mr. Kiely would still be able to testify if called on to do so by New York State or the federal government, but could make no claim against the Town on his own behalf.

There were no deductions from the money paid to Mr. Kiely, with the Town filing a 1099 tax form indicating that fact to the Internal Revenue Service. Upon payment of the remainder of the money, the former town attorney “waives and releases all claims“ against the Town.

The Town, according to the agreement, releases Mr. Kiely from any claims pursuant to federal, state or local law or regulation and any claim of breach of contract. The eight-page document refers to Mr. Kiely’s “voluntary separation” from his Town employment.

While both sides are enjoined from making any comment about the circumstances that led to the “irrevocable letter of resignation,” it would appear the Town could have provided the agreement on its website and openly acknowledged payment to Mr. Kiely.

Instead there was total silence until the Jan. 6 Town Board reorganization agenda, which on page 1 referred only to “Accept resignation” with no indication that it was Mr. Kiely.

On page 10, a resolution appeared: “Be it resolved that the Town Board hereby ratifies an agreement with Stephen Kiely and accepts such resignation effective December 27, 2024.” That gave no indication of payment to Mr. Kiely.

There has been criticism of the handling of the situation by the Town for what is seen as obscuring what some thought could have been made public.

Mike Gaynor, a regular critic of the Town Board, had filed a Freedom of Information Law request with the Town and received the document, which he revealed to the Reporter and other parties. On Monday night he tried to revive his earlier complaint about the handling of the issue.

He stood at the start of that regular meeting and began to speak, but was told no public statements could be made at the start of the regular meeting. He persisted until interim town attorney Steven Leventhal of Leventhal, Mullaney & Blinkoff told him he was interfering with a public meeting.

Mr. Gaynor left and did not return that night, but tried again on Tuesday night, going to the podium, only to be told by the supervisor someone else had been recognized before him. That was resident Bert Waife, who said about the handling of the resignation, “All we can do is create some fantasy of what happened.”

Mr. Gaynor then continued his criticism, saying the Town Board has mishandled the situation.

Besides appointing Mr. Leventhal to advise the Town Board on legal matters, an agreement was made with the Perillo Hill law firm to provide an attorney for the Zoning Board of Appeals. Mr. Kiely had served in that position prior to his resignation. Timothy Hill has served the Town on various matters when Mr. Kiely had a conflict of interest.