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The meeting will be the first for the three new members of the BPU, who were appointed by Mayor Sam Teresi and approved by the Jamestown City Council at the start of the year to replace three previous members. The three new members will be Tyler Case, Terrance Horner, and Ralph Wallace who are replacing John Zabrodsky, Wayne Rishell and Carl Pilliterri, after Teresi made the controversial decision not to reappoint the three long-time board members.  Zabrodsky, Rishell, and Pilliterri were each opposed to Teresi’s proposal in recent years to use BPU profits as a revenue stream to balance the city’s annual operating budget.

Because Zabrodsky had served as the chair of the BPU, there will also be a new board chairman for the first time in several years. An article in Monday’s Jamestown Post-Journal says the new chair will likely be Chuck Cornell or Martha Zenns, who are the two other community representatives who serve on the board and who were both appointed in 2014.

Monday’s board meeting begins at 4 p.m. at the BPU administrative offices and is open to the public.

During the city council’s New Year’s Day inaugural meeting on Friday, all nine members of the city council were sworn in to a new, two-year term in office, with just one new member joining the fold. Ward III Democrat Victoria James will be the only new member of the city council, replacing Republican Alphonso Pagan, whom she defeated in the November Election.

Also during Friday’s meeting the council approved several appointments by Teresi, including three new members for the BPU.

The newest BPU members will be Tyler Case, Terrance Horner, and Ralph Wallace. They are replacing: John Zabrodsky, appointed by Teresi in January 2000 and serving as BPU chairman from January 2002 to December 2015; Wayne Rishell, appointed by Teresi in January 2002; and Carl Pillittieri, appointed by Teresi April 2004.

The appointments came with no discussion or comment and were included in a laundry list of mayoral appointees for various agencies, commissions and boards involved with city government.

Jamestown Mayor Sam Teresi

“After consulting with members of the city council, colleagues on BPU and senior management staff, and advisors in the community, I decided to bring in [the three new members],” Teresi told reporters on Friday following the meeting. “They come from three different disciplines and backgrounds in the community and share mine and the council’s love for the city and commitment to building the entire city of Jamestown. Each showed a great deal of interest in joining the city government family on the BPU and I’m very happy to have them join us.”

The three new members will replace three individuals who bring a combined 42 years of board experience to the BPU. Perhaps even more noteworthy, the three outgoing members have been outspoken critics of the city government’s use of BPU profits – by way of dividend payments – to help balance its annual budget each year since 2014. That dividend sharing was first used by the city decades ago, but eventually went out of favor with city leaders. However, the dividend sharing was re-introduced by Teresi in an effort to close spending gaps in the city budget the past three years.

Despite the difference of opinion on how to best use BPU profits and the ensuing (and at times contentious) debates that took place, the mayor would not say that was the reason for not reappointing the three to another term.

“I’m not going to make this about what has happened in the past,” Teresi said. “New Year’s Day is a day about looking forward and that’s exactly what we’re doing here – celebrating and thanking the contributions of those board members that I had the opportunity, the pleasure and the honor of originally appointing. They’ve been good board members that have served the public utilities of this city well, and this city as a whole well. We thank them and honor them for their service through a difficult and diverse period of challenge and accomplishments for [the BPU].”

Chase is a city resident who currently serves as Human Resources Administrator at The Resource Center, where he’s been employed since 2003. This past November he also ran as a Democratic candidate for city council in Ward 1, losing to Republican incumbent Brent Sheldon. He’s also active in several community groups and organizations.

Horner is a retired Biomedical Technician who worked at WCA hospital in Jamestown for 30 years before retiring in 2013. He’s also a U.S. Army veteran and is involved in several community and regional organizations.

Wallace serves as the Operations Manager for Jamestown Metal Products, a position he’s held for the past 15 years. He’s also worked in management for several other manufacturers including CAE Ultrasonics, Jamestown Sterling Corporation, and Visu-Wall Storage Systems.

Teresi said he believes the diverse backgrounds of the three new members will serve the BPU well, ensuring representation from all aspects of the city and also bringing new energy and ideas into the fold.

“This is not about the three members that gave 16, 14, and 12 years of dedicated, good service to the community. It’s a matter of moving forth and refreshing and replenishing,” Teresi said. “It’s not the first time there have been new members brought onto the BPU and it certainly won’t be the last time.”

The six other members of the BPU, in order of seniority, are: Jeff Lehman, serving by way of position as DPW director since 1994; Teresi, serving by way of position as mayor since 2000; Greg Rabb, serving by way of position as city council president since 2008; Maria Jones, serving as city council liaison since 2013; Martha Zenns, appointed by Teresi in January 2014; and Charles “Chuck” Cornell, appointed by Teresi in July 2014.

That after the BPU held its final meeting of the year on Monday afternoon.

According to the Jamestown Post-Journal, the BPU was able to avoid hiking up the water rate by as much as 12 percent by cutting its capital projects budget for its electric division by $300,000 and cutting the capital projects budget for the water division by nearly $41,000. The BPU will also cut projected expenses in both division’s budget by $133,000 for electric and $7700 for water.

BPU officials have spent the last couple meetings trying to determine how to offset a $482,000 dividend payment to the city. That payment was approved in November by the BPU, despite concerns being raised by both the BPU general manager David Leathers and BPU board chairman John Zabrodsky. Both men had said that the dividend payment would drive up rates for customers. However, Jamestown Mayor Sam Teresi – who also serves as the BPU board president – felt that some spending cuts could be made to bring down the rate hike.

Both Zabrodsky and board member Carl Pillittieri voted against the water and electric budgets.

With the adjustments, the BPU electric division now has $6,591,000 earmarked for its capital projects, while the water division has $1,304,000 designated for its capital projects.

Members of the Jamestown Board of Public Utilities listens to Chautauqua Co. Chamber of Commerce President Todd Tranum during the Nov. 23 board meeting.

JAMESTOWN – The projected property tax increase in the city of Jamestown’s 2016 budget now sits at 4.06 percent. The Jamestown Board of Public Utilities on Monday approved giving the city a $482,000 dividend payment for next year following a 6-2 vote.

The $482,000 payment is $232,000 more than what Jamestown mayor Sam Teresi had proposed in his initial 2016 budget. That’s because the Jamestown City Council, during closed-door budget deliberations last week that were not open to the public, came to a unanimous decision to request $482,000 – the same amount the BPU gave the city for the current fiscal year.

City Council president Greg Rabb said the additional $232,000 will bring down the projected tax hike by 1.5 percent.

“[The $482,000] is almost double what the mayor requested, so it does have an effect on the budget. I think the the tax increase – whatever it might work out to be next week – might be much worse if we didn’t have the additional funding. So it does help a lot,” said Rabb, who also sits on the BPU.

The BPU spent more than 90 minutes discussing the dividend payment before acting on it, with board chairman John Zabrodsky, board member Carl Pillittieri, and general manager David Leathers saying the don’t support the payment because it would deplete the BPU reserves in either the electric or water divisions. If taken from the water division, it would create a rate increase higher than the 2.3 percent already being projected. If taken from the electric division, it could compromise a future 2.5 percent electric rate increase currently being considered by the state Public Service Commission (PSC).

The BPU was going to act on finalizing and approving its 2016 electric and water division budgets but held off following a request by Teresi, who wants to first find out if there could be any further cost saving measures in the water division budget before it is finalized. The issue of whether or not taking money from the electric division would impact the PSC rate case is something he also felt should be investigated further.

Rabb agrees it wouldn’t hurt to hold off on approving the two division budgets.

“There was much discussion about how we were going to handle this and I believe we tentatively committed to Dec. 7 as an additional board meeting for the BPU so that we could deal with the electric and water divisions, with the mayor making the point that now that we’ve agreed to the $482,000, can we go back and take a look at the budgets and make sure there isn’t something else we can ring out of the budget so we don’t have to talk about a rate increase.”

Both Zabrodsky and Pillittieri voted against giving the city the $482,000 dividend payment. BPU members voting in favor of the resolution included Teresi and Rabb, along with Chuck Cornell, Maria Jones, Jeff Lehman, and Martha Zenns.  Board member Wayne Rishell was absent.

CHAMBER SPEAKS OUT AGAINST DIVIDEND PAYMENT

Chamber president Todd Tranum.

Prior to discussing the dividend payment, several members of the public addressed the BPU, including Chautauqua County Chamber of Commerce and Manufacturers Association president Todd Tranum. Tranum criticized the board for approving dividend payments in past years, saying it’s the reason why the BPU electric division had to file for the rate increase request with the PSC.

“Based on our reserach and looking at the numbers, the current rate increase submitted by the BPU is absolutely unnecessary,” Tranum said. “It is an indirect tax driven by the city of Jamestown, taking money from this utility.”

Tranum also told officials that if they continue to profit share with the city, it would continue to force the BPU to increase its rates, causing it to lose its edge as an affordable utility provider to both residents and businesses not only in Jamestown, but the entire service area including the communities outside of the city.

Tranum also pointed out that the BPU already pays $3.5 million a year in the form of tax equivalent payments, adding that the dividend payments are excessive.

According to an article in the Jamestown Post-Journal, the vote for sharing the dividends was 6 to 3. And although it had initially been proposed that the dividends come from both the electric and water division, in the end all the money will come from the electric division profits.

Jamestown Mayor Sam Teresi had initially proposed the dividends be given to the city in his 2014 proposed budget. However, some BPU members were against the idea, and held off on including the dividend sharing in the BPUs 2014 spending plans.

Voting against the dividend sharing were BPU chairman John Zabrodsky along with members Carl Pillittieri and Wayne Rishell. Voting for the dividend sharing were Teresi along with Maria Jones and Gregory Rabb, who also sit on the city council, Len Faulk, Fred Larson and Jeff Lehman.

According to the Post-Journal, the BPU members met in executive session prior to the vote to discuss potential litigation that may arise should the dividend sharing take place.

Following the vote, Zabrodsky is also reported to say that the BPU will need to develop a policy on how to use revenues toward the city’s budget in future years.

This is the second year in a row that the dividends have been shared with the city. Prior to last year, the last time BPU profits were shared with the city was in the 1930s.