Council approves late Fiscal Year-2022 Budget Amendment authorizing $150,000 payment to liability insurance carrier for ‘legal fees’

At a Special Meeting called prior to a Monday, June 13 work session, Town Manager Steven Hicks presented a request to the Front Royal Town Council for a late Fiscal Year-2022 Budget Amendment to allow the transfer of $150,000 from General Fund Reserves for the payment of “legal fees” through the Town’s liability insurance carrier.

After Vice-Mayor Lori Cockrell, who chaired the meeting in the absence of Mayor Chris Holloway, made the motion which was seconded by recently appointed member Zach Jackson, council approved the Budget Amendment and transfer by a 5-0 roll call vote, Councilman McFadden absent.

There was no discussion of the matter prior to the reading of the motion and vote. The staff agenda summary and prepared motion note that the $150,000 payment will be made to the Virginia Risk Sharing Association (VRSA) “for legal fees related to litigation.”

Royal Examiner later asked the town manager for a breakdown of what litigation or litigations the legal fees related to. Town Manager Hicks handed our question over to Finance Director B. J. Wilson. Wilson explained that at this point prior to invoices on VRSA’s receipt and distribution of the money, more detail was unavailable. Responding to a question, the town finance director said he had checks cut to VRSA indicating coverage dating back at least to 2003. That coverage includes “general liability, workman’s compensation, property, and vehicles”. One might guess that “general liability” includes federal wrongful termination lawsuits such as the Town has been served with by former council clerk Jennifer Berry-Brown.

At right, Town Manager Hicks and Council Clerk/Administrative Asst. Presley get agenda material together as Special Meeting prepares to convene with one item added. Below, second from left, Finance Director Wilson may be laughing off a premonition a coming media inquiry is going to be dropped on his lap.

In fact, as Royal Examiner’s Norma Jean Shaw pointed out in an April 8 story on hearing delays and counter motions in the Berry-Brown vs. Town of Front Royal litigation, the Virginia Risk Sharing Association is named as “a second respondent” to Berry-Brown’s complaint in federal court that she was terminated by the Town as retaliation for a sexual harassment complaint she filed with the Town Human Resources Department. See: Former Council Clerk’s Discrimination lawsuit against Town of Front Royal continued on dueling motions filings

Town financial records indicate an annual coverage payment for FY-2022 of $497,864. The VRSA website states that: “The Virginia Risk Sharing Association (VRSA) is the first and most financially sound group self-insurance pool in the Commonwealth. For more than 40 years, VRSA has provided comprehensive coverages, services, and resources to Virginia local political subdivisions,” further noting sponsorship by the Virginia Municipal League (VML), whose executive director is listed among the VRSA’s eight-member “Supervisory Board”.

It seems the Town may have kept VRSA-contracted attorneys busy this fiscal year ending June 30.

One other item was added to the Special Meeting agenda at the meeting’s outset. Vice-Mayor Cockrell cited a request by two citizens that a Proclamation acknowledging long-time Front Royal resident Gertrude Eloise “Wesie” Johnson-Newman’s 100th birthday. The addition was added without opposition. And after approval of the above-discussed FY-22 Budget Amendment, council moved on to this less expensive and litigious matter.

Councilman Gillespie, to Vice-Mayor Cockrell’s right, made the motion to acknowledge by Proclamation the 100th birthday on June 17, of long-time town resident Gertrude Eloise ‘Wesie’ Johnson-Newman.

And on a motion by Gary Gillespie, seconded by Amber Morris, by another 5-0 roll call vote, council approved the Proclamation recognizing Ms. Johnson-Newman’s 100th birthday on June 17, 2022. – Happy Birthday, “Wesie”.

The Special Meeting was adjourned at 6:36 p.m. and after a break until the advertised 7 p.m. starting time, the work session was convened. Major topics included presentations on the Town municipal energy cooperative American Municipal Power’s (AMP’s) Power Purchase Portfolio, and its benefits to the Town cost-wise through its group purchasing power; and on the Redundant Waterline project for the Route 522 North Corridor; as well as on a proposed Ordinance Amendment regarding adding Data Centers as an Industrial Zoning use by right versus as a Special Use Permit application. Those latter two are scheduled for public hearings on the June 27th meeting agenda, along with several other items brought to council for pre-meeting review.

Council also reviewed the new FR EDA bylaws, and a long list of items slated for the June 27th Consent Agenda.

Town Police Chief Kahle Magalis gave council an update on the Joint Towing Advisory Board before council went into closed session to discuss the search for a new town attorney.

See all these presentations, discussions, and reports in the linked Town Special Meeting and Work Session videos.