The Jamestown City Council during its Feb. 24, 2020 voting session.

JAMESTOWN – The Jamestown City Council voted 7 to 2 Monday night in favor of annexing the Jamestown Board of Public Utilities’ Dow St. Substation property in the Town of Ellicott/Village of Falconer, setting the stage for another legal showdown in State Appellate Court.

Monday’s vote came following statements from both Mayor Eddie Sundquist and Council President Tony Dolce. Sundquist said that the city was willing to negotiate an outcome to help avoid legal action, but officials from Ellicott, Falconer and the Falconer Central School (FCS) district walked away from the table the night before a second negotiating session was scheduled to take place.

Jamestown Mayor Eddie Sundquist

“I truly believe that there is a middle ground where all the parties could benefit. As part of that we’ve attempted negotiations. We’ve offered to invest in projects that make sense as a larger region and to support some of the work as we develop this area,” Sundquist said prior to the vote. “On the eve of the second round of negotiations, we were informed by Ellicott, Falconer and Falconer Schools that they no longer wish to negotiate with us in order to come to a resolution with this annexation.”

Dolce added that while there is the possibility for returning to the table to negotiate a deal and avoid litigation, he and other council members felt it was time to move the process forward.

“I was ready and willing to try and work to put off that vote again, but since they have decided to end the discussion there’s no need to wait on the vote,” Dolce said. “We still can sit down and talk and hopefully they would like to come back to the table but at this time I think we’ve extended the olive branch and its time for us to move on.”

Dolce joined six other council members in supporting the annexation, including councilwoman Tamu Graham-Reinhardt, who had previously recused herself from voting on any resolution involving the annexation because of a conflict of interest due to her working for the Falconer School District. But as of earlier this month Graham-Reinhardt is no longer working for the district, meaning she no longer had to recuse herself from voting on the issue.  The two council members to vote against annexation were newly elected members Grant Olson and Jeffrey Russell.

A map highlights the BPU Substation property proposed for annexation, with the red line illustrating Tiffany Avenue, the border between the city and the town of Ellicott/Village of Falconer.

Ellicott, Falconer and FCS are against annexation because it will result in a loss totaling $330,000 in annual tax revenue between the three.

The City and Jamestown BPU argues that by annexing the property, it will serve the public interest of the entire BPU service area, including customers living in the village, town and school district. The BPU would also avoid paying the $330,000 in taxes, and would instead make an estimated $80,000 payment in lieu of taxes to both the City of Jamestown and Jamestown Public Schools.

Following Monday’s council meeting, Sundquist explained that during the negotiations, the city was pressing for an annexation while also trying to help soften the financial impact it would have on the three affected municipalities.

“It all revolved around annexation but we had flexibility on what was being annexed and what values would be associated to the annexation. But at the end of the day it was this council’s message as well as the BPU board that they wanted some form of annexation. But we were willing to be flexible on that and offset certain costs.”

The annexation can be legally challenged if either Falconer or Ellicott (or both) vote in opposition of the annexation. That is what is expected to take place, most likely during the next respective village and town board meetings.

Once a vote of opposition is made, a legal complaint is filed and the city will then have a limited amount of time to respond. Failure to do so before the deadline will result in the case being thrown out. This is what happened during the previous annexation attempt, which went to court in October 2017. But the issue of whether or not the annexation could proceed was never answered. Instead, the state 4th Appellate Division in Rochester ruled that Jamestown’s legal team – Bond, Schoeneck and King – had failed to file its response paperwork on time. The court case then ended on the filing technicality, with a ruling not being delivered until August 2019.

The legal fees for the previous annexation approached a combined $750,000. Bond, Schoeneck and King will again handle the case for the BPU, but Mayor Sundquist said this time they wont charge more than $75,000 from start to finish in this annexation effort.

“For this second round of annexation there is a cap of $75,000, going up all the way to the State Court of Appeals, which means that is the most we will pay,” Sundquist said.

The Falconer village board during its Jan. 13, 2020 meeting, the first with new mayor Jim Jarosynski.

FALCONER – The Village of Falconer will have to find a fourth member of the village board of trustee.

The village board held its first meeting of the year with new mayor James Jaroszynski, who said that the write-in winner from last year’s election – Phil Ribaudo – has decided not to take the position.

“He has elected to not take the position. He’s informed me officially he’s not going to take it, so by election law you have 30 days before Jan. 1 or 30 days after Jan. 1 to take the oath. So we have to wait until Jan. 30 and then I’ll be seeking people that want to serve on the village board. They can contact me directly or through the village clerk’s office.”

Once all potential candidates have come forward, Jaroszynski will then bring his recommendation to the full board for a vote.

Also during Monday’s meeting the village approved the 2020 officers for the Falconer Volunteer Fire Department, which includes a new fire chief.

New chief Bryce Webster will replace Fire Chief Charles Piazza. Piazza was initially voted by the fire department members to be the cheif for 2020 but the village board raised concerns due to his residency being outside of the fire district. As a result, Piazza opted to withdraw his name and a new vote took place with Webster being selected as chief.

Jaroszynski said there were several challenges facing the village in 2020.

“We’ve certainly worked together fine as a team and with the addition of [new trustee] Gustafson I can only see that continuing. So we definitely have some challenges ahead of us. It’s no secret with the annexation issue. We’re also negotiation our water agreement with the Board of Public Utilities and we have the recent news regarding Truck Lite, so we definitely have a lot on our plate to do and think about,” Jaroszynski said.

Jarosynski added that he looks forward to another meeting Jamestown Mayor Eddie Sundquist and others to see if there is an alternative solution to the annexation issue involving the Dow Street Substation – although no specific date has been set.

A map highlights the BPU Substation property proposed for annexation, with the red line illustrating Tiffany Avenue, the border between the city and the town of Ellicott/Village of Falconer.

UPDATE [DECEMBER 18, 2019 at 4:30 p.m.]

The Public Hearing that was scheduled for Wednesday, Dec. 18 at 7 p.m. regarding the Annexation of the BPU substation property located on Dow Street has been cancelled due to inclement weather. A new Hearing date will be rescheduled and announced soon.

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JAMESTOWN – The Jamestown City Council will be joining the Falconer village board and the Ellicott Town board later this week in hosting a joint public hearing on the annexation of the Dow Street Substation property in Falconer.

The hearing will take place at Jamestown Community College’s Robert Scharmann Theatre at 7 p.m. Wednesday, Dec. 18.

Under law, a hearing is required to take place before a vote on the annexation can occur.  The hearing groundwork was laid during the city council’s November voting session, when the council voted 7 to 1 in favor of initiating the annexation process.

• RELATED: Jamestown City Council Approves Annexation Resolutions

The city of Jamestown is arguing that it is the best public interest to bring the substation property into the city boundaries. The property is currently owned by the city through the Jamestown Board of Public Utilities and the BPU currently pays an estimated $333,000 a year in taxes to Falconer, Ellicott, the Falconer School District and Chautauqua County.

If the property were in the city of Jamestown, the BPU would not have to pay any taxes on the property but would make a payment in lieu of taxes of about $80,000 to both the city of Jamestown general operating budget and to Jamestown Public Schools.

Because of the loss of tax payment, Falconer, Ellicott, and Falconer School officials have all voiced their opposition to annexation.

The matter has already been taken up once, with the council voting in 2017 in favor of the annexation. But both Ellicott and Falconer challenged the annexation, and as a result it became a matter for the courts to decide on. In August of this year the New York 4th Appellate Division Rochester ruled that the annexation could not go forward because of a technicality with the city failing to file legal paperwork on time. As a result, the process has to start all over again.

The city council will have up to 90 days to vote on the annexation once a public hearing is held, and the next city council voting session is scheduled for Monday, December 30. However, Jamestown Mayor Sam Teresi recently told WRFA that the city council wont likely take up the annexation resolution at the end of this month, and will instead wait until after the new year when the new city council and a new mayor is sworn in.

Teresi also told WRFA that no matter how the process plays out and regardless of the steps that may need to be taken before it comes to a conclusion, it won’t cost the BPU electric division more than the $75,000 that was already committed in November. That’s because the law firm representing the city – Bond, Schnoeneck and King – also represented the city in the previous annexation effort and much of the groundwork for the lawsuit has already taken place.

In the previous annexation effort the BPU eventually spent over $420,000 from its electric division to pay for the case as it unfolded. Meanwhile, Falconer, Ellicott, and Falconer School District paid a over $300,000.

The Jamestown Board of Public Utilities during its January 2019 board meeting on Monday, Jan. 28.

JAMESTOWN – The Jamestown Board of Public Utilities has approved another round of payments for the law firm hired to handle the Falconer Substation Annexation Case.

During it Monday afternoon board meeting, the board approved an additional $125,000 for the law firm Bond, Schoenek & King – which is currently awaiting a court date for the State Supreme Court’s 4th Appellate Division to hear arguments involving the annexation.

The new $125,000 payment is in addition to the $280,000 the BPU has already agreed to pay the Albany-based law firm, bringing the new total to $405,000.

According to BPU General Manager David Leathers, the latest change order will allow payment of legal expenses estimated through June 2019 and is specifically related to developing and filing the required brief to the Appellate Division, developing and filing a reply brief, and preparing and providing oral arguments. Leathers added he’s hopeful this will be all the additional money needed to deal with the legal case.

Meanwhile, Jamestown Mayor Sam Teresi, who serves as president of the BPU, said Monday night that the continued spending is unfortunate but also necessary.

“It’s greatly unfortunate. I can only imagine what the other side has been spending for legal bills associated with this challenge,” Teresi said. “It’s their right to challenge it. We think it’s a challenge without merit and we’ve got to go in and defend ourselves against the challenge.  I can only imagine the other side is spending as large if not a larger amount of funding to advance this case and we’ll see where it all leads to.”

While the latest amount of money the other side has spent on the lawsuit is not known, the amount as of August 2018 was a reported $177,000 and climbing.

All the money from the city’s side of the lawsuit comes from the BPU Electric Division and not the city general operating budget, meaning revenue collected from all BPU customers, both inside and outside of the city, is being used to pay the city’s legal fees in the case. The money from the other side comes from the general operating budget of Falconer, Ellicott, and the Falconer School District – meaning in some cases residents in those jurisdictions who are also BPU electric customers are paying for both sides of the lawsuit.

In August 2017 the Jamestown City Council unanimously voted to annex the BPU’ substation property located in Falconer, with a portion of the land being adjacent to the border between the village and the city. The city had argued that because the property sits on the village line with the city and is owned by the city, it is eligible for annexation on the grounds that it is to the benefit of public safety.

• RELATED: Audio of June 2017 Public Hearing on Annexation Proposal

In early September 2017 the Falconer Village Board voted against the annexation and the Ellicott Town Board did the same. As a result, the matter has to be settled in state appellate court.

The BPU currently pays Falconer, Ellicott, the Falconer School District and the county approximately $360,000 annually in property taxes. If the annexation is approved, the BPU would no longer have to make those tax payments, although it would have to make a payment  to both the the city and the Jamestown School District a Payment in Lieu of Taxes of about $80,000 each.

The court has yet to set a date for when oral arguments in the case will be made. On Monday night Teresi said it will likely take place in April.

A map depicting the BPU substation property (in red) that sits adjacent to the border between Jamestown and Village of Falconer/Town of Ellicott.

JAMESTOWN – The wait continues on the outcome of a legal case that could have huge financial implications for the city of Jamestown, along with the Town of Ellicott, Village of Falconer, and Falconer School District.

It’s been over a year since the Jamestown City Council voted to annex a piece of city-owned property from the Village of Falconer and Town of Ellicott.  But because both the Ellicott Town Board and Falconer Village Board voted against the annexation of the Jamestown Board of Public Utilities’ Dow Street Substation property, the matter has to be ruled on by the New York 4th Appellate Division court in Rochester.

Jamestown Mayor Sam Teresi told WRFA earlier this week that oral arguments and testimony were given to a three-member tribunal from the appellate division earlier this month in Mayville, with officials from Jamestown, the BPU, Ellicott, village of Falconer and the Falconer School District all offering details on the case. The mayor adds that at this point, the tribunal is likely putting together a report that will be given to the five-members of the appellate court in Rochester. Once the justices of the appellate court review all information, they will then likely call attorneys for both sides to Rochester for one final hearing where final arguments can be made before they rule on the matter.

At this point, the case has yet to appear on the appellate division’s docket, which now includes both the month of November and December. As a result, Teresi said he anticipates a court date for the final arguments to be made in either January or February of next year.

So far more than half a million dollars has been spent on legal fees associated with the case. The city is using BPU funds to pay its attorney fees, while the village, town and school district are using their own funds to cover the cost.

If the city is able to annex the property, the BPU will save an estimated $160,000 per year by no longer having to pay $320,000 in property taxes to the school district, the town, the village, and the county. Instead, it would make an annual payment in lieu of taxes ofa bout $80,000 to both the city and the Jamestown School District.

The Falconer Village Board during the August 2018 board meeting.

FALCONER – Officials in Falconer are expected to hear an update on the effort to redevelop an area of the business district that was destroyed by two separate fires when the village board meets Monday for its monthly meeting.

The West Main Street Development Committee – which was formed to help steer future development of the commercial block in the village – will present its recommendations after holding several meetings and also seeking input from the public.

A significant portion of the block was destroyed by two separate fires – one that took place at the start of this year and the Falconer Vac Shop building and which was believed to be accident, and another that took place in March 2017 and which was ruled an arson.

Monday’s village board meeting begins at 7 p.m. at the village Community Building and is open to the public.

A map depicting the BPU substation property (in red) that sits adjacent to the border between Jamestown and Village of Falconer/Town of Ellicott.

JAMESTOWN – The cost of the Annexation issue between the city of Jamestown and town of Ellicott, Village of Falconer and Falconer School District is costing taxpayers and local utility customers more than $450,000.

At issue is the city’s effort to annex a piece of property owned by the city, the Jamestown Board of Public Utilities Dow Street Substation, which sits in Falconer near the city line. The city claims it is in the public’s best interest to have the property annexed into the city, while the neighboring municipalities and school district claim it is simply a money grab for the city in an effort to avoid paying taxes on the property. The matter is currently awaiting a review and ruling from the State Supreme Court Appellate Division, Fourth Department in Rochester.

On Monday the BPU increased the amount of money it will likely spend on legal fees in the annexation case by $110,000 – bringing the new total for the city’s share to $280,000.

WRFA has since reached out to the Village of Falconer, Town of Ellicott, and Falconer School District to learn how much each of those three municipalities have spent.

Falconer School District superintendent Steve Penhollow tells us the district has committed $112,930 to this point.

According to Ellicott Town Clerk Mike Elrlandson, the town has spent $12,060 to date on the annexation.

Meanwhile, Falconer village clerk Anna Fales says village has spent $51,997.34 through the end of may, though additional costs are expected once the village is billed for the months of June, July and August.

Combined with what Jamestown has committed through money from the BPU electric Division, the total amount in legal fees spent on the annexation issue is $457,000, with more expected to be spent before the process is over.

More than 200 people were on hand for a joint public hearing on the proposed annexation of the BPU’s Dow Street Substation Property. The hearing was held at Falconer Central School Monday night, June 12, 2017.

The city has retained the law firm Bond, Schoeneck, and King as its outside council. The side fighting the annexation has retained the law firm Harris Beach PLLC.  The law firms were not only brought in to help prepare for a June 2017 Public Hearing on the matter, but have also been retained to assist with the matter as it proceeds through the court process.

SAVINGS FOR BPU, LOST REVENUE FOR CITY’S NEIGHBORS ON THE LINE

While some argue the ever-increasing legal fees connected to the case is an exorbitant amount, even more money is on the line when it comes to the possible outcome of the annexation.

According to a 2017 report from the Post-Journal, of the $322,090 the BPU paid in annual property taxes, $153,852 went to the Falconer School District; $68,789 went Falconer; $67,217 went to the county; and $32,232 went to Ellicott. The totals are all less than 1 percent of the total operating budget for each, except for the village of Falconer, where the total BPU tax payment comprises just over 5 percent of the total revenue for the village’s operating budget.

If the Appellate Court were to rule in favor of the annexation proceeding, the BPU would save around $160,000 a year because it would no longer be making property tax payments, with the city and the Jamestown School District receiving a tax equivalency payments of around $80,000.  Over the next decade, the BPU would save more than $1.6 million. The city of Jamestown and Jamestown School District would also see an additional $800,000 each over the next decade.

Meanwhile, the Falconer School District would be the biggest loser, with over $1.54 million lost over 10 years. The village of Falconer also stands to lose an estimated $688,000 over the same time period and Ellicott would lose $323,000.  That lost revenue would have to be made up for through cuts in local services and/or increased taxes for the local property owners.

AN OUTCOME TWO YEARS IN THE MAKING

It was in January 2017 when it was first announced the BPU would be looking into the annexation and the Jamestown City Council unanimously voted to annex the property in August 2017.

In early September 2017 the Falconer Village Board voted against the annexation and the Ellicott Town Board did the same. As a result, the matter has to be settled in state appellate court.

The court in Rochester has yet to set a date for when oral arguments in the case will take place, but Jamestown Mayor Sam Teresi said Monday night that things are moving forward with preliminary meetings and a hearing schedule for September and October. All that will be in preparation for oral arguments before the Rochester-based appellate court, likely in November.  After that, the decision from the Appellate Court could come by the end of this year or in early 2019, two years after the process got underway.

The Jamestown Board of Public Utilities and staff during the Aug. 27, 2018 board meeting.

JAMESTOWN – Legal fees in the annexation case between the city of Jamestown and the Town of Ellicott / Village of Falconer continue to climb.

On Monday afternoon the Jamestown Board of Public Utilities unanimously approved a $110,000 change order for the law firm Bond, Schoeneck, and King related to the case going before the Appellate Division, Fourth Department at some point later this year.

The approval by the board came with no discussion or comment from board members and only a brief explanation from BPU General Manager David Leathers. The change order also was not included on the prefiled agenda that had been posted on the BPU website for the public on Friday, and instead was only included on the printed agenda that was provided at the start of Monday’s BPU meeting.

Total legal fees for the city’s representation in the case are now set at $280,000. That figure represents the spending limit for the designated law firm and not the actual amount that has been paid.

“It was anticipated and it is what it is. Justice, sometimes, and working through the legal system is certainly not inexpensive,” explained Jamestown Mayor Sam Teresi, who is also president of the BPU.

The money comes from the BPU Electric Division and not the city general operating budget, meaning revenue collected from all BPU customers, both inside and outside of the city, is being used to pay the city’s legal fees in the case.

It is not known how much the village of Falconer, Town of Ellicott, or Falconer School District have paid in legal fees for representation from Harris Beach PLLC.  WRFA has reached out to those three parties in an effort to get the total cost of fees for their side in the case.

A map depicting the BPU substation property (in red) that sits adjacent to the border between Jamestown and Village of Falconer/Town of Ellicott.

It was one year ago that the Jamestown City Council unanimously voted to annex the BPU Utilities’ substation property located in Falconer, with a portion of the land being adjacent to the border between the village and the city. The city had argued that because the property sits on the village line with the city and is owned by the city, it is eligible for annexation.

In early September 2017 the Falconer Village Board voted against the annexation and the Ellicott Town Board did the same. As a result, the matter has to be settled in state appellate court.

If the annexation is approved, the BPU would save around $160,000 a year in property tax payments, with the city and the Jamestown School District receiving tax equivalency payments of around $80,000 from the BPU.

• RELATED: Audio of June 2017 Public Hearing on Annexation Proposal

As WRFA reported last week, the court has yet to set a date for when oral arguments in the case will be made before the court, but Mayor Sam Teresi said that things are moving forward with preliminary meetings and a hearing schedule for September and October. All that will be in preparation for oral arguments before Rochester-based court, likely in November.

“A hearing now has been set. A three-member ‘referee’ panel [from the Appellate Court] will be meeting in early September in preparation for a hearing in October with all parties,” Teresi said, noting that the hearing will likely take place in Mayville. “A report will then be sent on to the Appellate Division, which we expect will then be meeting before the end of the year in Rochester to hear final oral arguments, with a decision to be rendered, we hope, if not by the end of the year then by early next year.”

A map depicting the BPU substation property (in red) that sits adjacent to the border between Jamestown and Village of Falconer/Town of Ellicott.

ROCHESTER – It’s still not known when a state appellate court will hear arguments involving Jamestown’s proposed annexation of a piece of city-owned property located in the village of Falconer / Town of Ellicott.

The Appellate Division of the New York Supreme Court – 4th District in Rochester released its October calendar earlier this week and, yet again, the annexation case is not on the docket.

It was one year ago that the Jamestown City Council unanimously voted to annex the Jamestown Board of Public Utilities’ substation property located in Falconer, with a portion of the land being adjacent to the border between the village and the city.  The city had argued that because the property sits on the village line with the city and is owned by the city, it is eligible for annexation. In early September the Falconer Village Board voted against the annexation and the Ellicott Town Board did the same. As a result, the matter has to be settled in state appellate court.

Since September 2017, officials and attorneys from both sides have prepared their arguments and presented evidence in the case and have been waiting on the court to schedule a hearing for oral arguments to be presented.

Sam Teresi

“We’re hoping for the November-December term of the fall calendar so this can get moving,” Jamestown Mayor Sam Teresi recently told WRFA. “Both sides have submitted written arguments and any additional supplement papers that the court has asked for. Now it’s a matter of getting it on the calendar and having oral arguments in the appellate division.”

The city is being represented by the law firm Bond, Schoeneck, & King, while the village and town are being represented by Harris Beach PLLC.

Ironically, property owners in the town of Ellicott and Falconer who also have BPU service are helping to pay for the attorneys on both sides, since their local tax dollars are being used to help pay for the services of Harris Beach while their BPU payments are being used to pay for representation from Bond, Schoeneck & King.  So far the expenses for the city’s legal representation in the case is $130,000. No word on how much Falconer and Ellicott have spent on their attorneys for the annexation case.

According to the BPU, the Dow Street substation property is assessed at more than $7.8 million. Currently, the BPU electric division pays approximately $322,100 a year in real property taxes to the county, town of Ellicott, village of Falconer and Falconer Central School District. If the property was annexed and included in the city, then the BPU would save around $162,000 a year – because the BPU would make tax equivalency payments to both the city and Jamestown school district.

Ever since first being proposed by the BPU in January as a way to help save money the annexation proposal has garnered controversy and strained relations between the city and its neighbors in Ellicott and Falconer.

Falconer Central School Superintendent Stephen Pennhollow.

“I have no problem with the city seeking to find other ways to increase revenue. No problem whatsoever. I applaud you in those efforts,” Falconer School Superintendent Steve Penhollow said during a public hearing on the matter in June 2017. “But when you’re sources of revenue are coming from our revenue sources, that is not what neighbors do and that is not how neighbors treat other neighbors and I find a bit of concern with that.”

The city has also argued that the annexation is in the public’s interest, partly because the property would fall under the jurisdiction of the professional Jamestown Fire Department, rather than the Falconer Volunteer Fire Department. The city has a professional fire department with fire crews at the station 24 hours a day. Falconer has a volunteer fire department that requires volunteers to be called to the station before being sent out on an emergency call.  Attorneys for the city stated during a June 2017 Public Hearing that this could affect the response time on a fire call, should an emergency call be made to the substation. Falconer and Ellicott officials have countered by saying  the Falconer Fire Hall is the closest to the property, adding that firefighters from the nearest station in Jamestown would have to cross a rail line in order to get to the property, which could impact response time.

Orbitis owner Nicholas Gunner discusses his community web platform with Falconer officials during a presentation to the village board on Aug. 13, 2018.

JAMESTOWN – Officials in Falconer are looking to improve the village’s online presence.

During the August village board meeting on Monday night, Nicholas and Caitlin Gunner from Orbitis provided the officials with an outline of online services they could offer that would help the village communicate with the public.

The village’s current website is a single, static page that provides a director of village officials and their contact information, along with a link to the village Farmers Market page and a note of when village meetings take place.

The website is short on transparency and does not provide the agenda for upcoming board meetings, nor the minutes from past public meetings, budget information, taxes and fees, or expenditures.

Falconer Mayor James Rensel said the village wants to be able to communicate better with residents and the public with a website that not only provides general municipal government information, but also an events calendar and a directory of local businesses.

Orbitis was brought in this week to provide details on their services, including how their websites function along with the costs associated. The company has already created a website for clients including the village of Westfield, the County Land Bank, and the Roger Tory Peterson Institute.

The basic cost for having Orbitis host and service the village’s website would be an estimated $1620 per year.

No decision was made regarding upgrading the village website and Rensel said officials will continue looking into the matter in the coming months.