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LIPA

Councilman Eugene Cook calls for residents to launch letter-writing campaign to Huntington Town officials

The Northport power plant. File photo

Town of Huntington officials are moving toward making a power play against Long Island Power Authority and National Grid to take over control of the Northport power plant.

Councilman Gene Cook (R) has called for town residents to participate in a letter-writing campaign asking Huntington’s elected officials to consider utilizing eminent domain to take control of Northport power plant.

His proposal comes days after LIPA allegedly submitted documents to Suffolk County Supreme Court for its pending lawsuit against the town, in which it disputes the tax value of the plant, claiming the structure only has a fair market value of $193 million, according to Cook.

“Their estimate is so far out of wack on it, they are almost like giving us the plant,” the councilman said. “If they want to give it to us, I want to take it.”

Cook said he thinks the Northport facility is one of the biggest power plants in the Northeast, which will become more valuable with future improvements. He estimated the power station could produce $5 billion in revenue per year for the town if it took over operation of the facility. He suggested the name “Huntington Power Service Company.”

“We want to serve our residents, not be an authority over them like LIPA has done,” Cook said. “They have taken LI Power Authority as ‘we have authority over everyone.’” 

Their estimate is so far out of wack on it, they are almost like giving us the plant.”

— Eugene Cook

The councilman drafted a resolution he said he plans to present at the May 17 town board meeting for Huntington to hold a public hearing. If approved, a hearing will be held June 5 at 2 p.m. for residents to voice their thoughts and concerns on the acquisition of the plant from National Grid, which is the owner of the power station.

“The basis of this acquisition will be for the purpose of delivery to the public of electrical power in a safe and cost-efficient manner,” reads the draft resolution.

Under New York State law, the town must publish its findings and determinations on the proposed acquisition from the public hearing within 90 days. The Town of Huntington is due in court to face LIPA less than a week later June 11.

“We are looking at every facet of possibility here when looking at the LIPA situation because it’s a very serious situation,” Supervisor Chad Lupinacci (R) said. “Any possibility that comes up we will review with our attorney — we will review it with experts to see if it’s feasible.”

Even if the town initiated the process of obtaining the power plan via eminent domain, it would not resolve the town’s lawsuit with LIPA. In addition to seeking a 90 percent reduction of taxes on the power plant, LIPA is asking for the town to reimburse it for alleged overpayment of taxes each year since it filed the claim in 2010 — totaling more than $500 million.

“Let’s save the consulting and legal expenses of evaluating this idea, which would be fiscally disastrous to the town, its taxpayers and wouldn’t resolve the pending tax certiorari litigation,” LIPA spokesman Sid Nathan said in a statement.

Let’s save the consulting and legal expenses of evaluating this idea, which would be fiscally disastrous to the town, its taxpayers and wouldn’t resolve the pending tax certiorari litigation.”

– Sid Nathan

LIPA disputes that the Town of Huntington could turn a profit operating the station, claiming Northport power plant is operated at a loss. The power company said its contract with National Grid requires it to pay all costs to run the plant — including $80 million in annual property taxes leveraged by the Town of Huntington — which exceeds its revenue. LIPA also stressed that if Huntington took control of the plant, all beneficial tax revenue would cease, leaving residents to pay more for their government services.

“We hope the town will join with other local communities on Long Island that are working with LIPA to reach a fair settlement offer that puts an unsustainable property tax situation at the Northport plant back on a sustainable path,” Nathan said.

The Town of Brookhaven and Village of Port Jefferson both announced they had reached settlements over the tax assessed value of the Port Jeff plant with LIPA in early April.

If the lawsuit is decided in LIPA’s favor, the utility company estimates that Town of Huntington residents would see their taxes increase by $62 a month, with Northport-East Northport school district residents responsible for an additional $210 to $220 per month.

Lupinacci has said the town remains open to bargaining with LIPA, while Cook said the only negotiation he is for is LIPA agreeing to withdraw its lawsuit.

“I will fight to the death on this one,” Cook said. “Either they want to be good neighbors or they don’t. If they don’t, they can hit the road.”

Northport school district attorney John Gross explains the LIPA lawsuit to residents at a May 1 presentation. Photo by Sara-Megan Walsh

By Sara-Megan Walsh

Northport residents are gearing up for a David-versus-Goliath showdown as school district officials will call on Long Island Power Authority to uphold its promise in Suffolk Supreme Court next week.

Northport-East Northport school district attorney John Gross will present his argument May 9 on why the utility company should be forced to uphold a 1997 promise not to attempt to lower the taxes on the Northport power plant.

As both the district and LIPA’s attorneys have asked for summary judgments, or immediate decision in their favor, Gross explained at a May 1 presentation at Northport High School to the public there could be a decision made that significantly impacts district taxpayers days before the 2018-19 budget vote.

“If there is a substantial reduction in taxes, the impact shifts to the individual taxpayers,” Gross said at the May 1 presentation. “That is the threat. That is the concern of which the school district has spent a lot of time and effort combating.”

If there is a substantial reduction in taxes, the impact shifts to the individual taxpayers.”
– John Gross

LIPA currently pays more than $81 million annually in taxes on the Northport power plant, according to a statement from the utility company. The school district receives approximately $53 million per year in tax revenue from the power plant’s taxes, which would pay for less than 40 percent of the district’s proposed $146 million tax levy for the 2018-19 school year.

“The $81 million tax burden on the Northport plant is not sustainable, especially as the output of the Northport plan is forecast to continue to decline, as more solar and wind energy is added to the electric grid,” LIPA said in a press release.

In 2010, LIPA filed a tax certiorari lawsuit against the Town of Huntington’s Assessor’s Office seeking a 90 percent reduction in the power plant’s taxes. The trial is scheduled to begin June 11.

Gross explained to residents in his May 1 presentation that Northport school district doesn’t have any standing in that lawsuit, but is a mere bystander because the Huntington Town assessor determines the assessed value of the plant, which is currently set at $30,255,550.

“The plant we believe is worth well over $3 billion,” Gross said, speaking to its fair market value.

In 2011, the district’s attorney filed a lawsuit against LIPA claiming it is the third-party beneficiary of a “promise” made in the 1997 Power Supply Agreement between LIPA and National Grid.

Gross pointed to Article 21.16 of the contract that reads the utility company, “may challenge any property tax assessment on its generating facilities or generating facility sites only if the assessment on any such challenged facility is increased not in an appropriate proportion to the increase in value related to taxable capital additions.”

The district’s attorney said he believes LIPA illegally broke contract when it filed the lawsuit against the Town of Huntington to lower taxes on the plant in 2010.

“From 1997 to today, [their taxes] have not been moved one dollar,” Gross said. “It has not been increased.”


Tax Impact of LIPA lawsuit
Assuming 2 percent school tax increase per year and average home assessed value of $3,700

If LIPA wins 90 percent reduction:
– 57.86 percent increase after 2 years
– 67.53 percent increase after 5 years
-81.33 percent increase after 9 years

LIPA settlement offer of 60 percent reduction over 9 years:
– 9.57 percent increase after 2 years
– 26.37 percent increase after 5 years
– 54.66 percent increase after 9 years

LIPA settlement offer of 9-year reduction to $28 million in taxes:
– 12.46 percent increase after 2 years
– 32.11 percent increase after 5 years
– 60.18 percent increase after 9 years

LIPA has refuted this claim for the last seven years. It stated that, “The alleged promises to the school district are not enshrined in the Power Supply Agreement between LIPA and National Grid or any other contract documents.”

Gross said his legal team has deposed 17 individuals on the 1997 Power Supply Agreement and what it contains, and filed more than 60,000 pages of documents with the courts. These documents point to the several 1997 events where former LIPA chairman Richard Kessel spoke with Northport school administrators and Huntington Town officials. Among them is correspondence sent between LIPA, federal agencies and elected officials including documents submitted to the Internal Revenue Service.

“They put the promise in black and white in submissions to the IRS that taxes would not be affected for the host communities — us,” Gross said.

The utility company’s defense is that the original PSA expired May 28, 2013, which was replaced by a new agreement that runs through April 2028. Therefore, the promise claimed by the school district expired nearly five years ago.

Gross claimed LIPA and National Grid said they renewed their original contract in 2013 through 2028, which should extend their promise to the school district for another 15 years.

The alleged promise contained in the 1997 Power Supply Agreement will take front and center stage in the court arguments May 9.

Gross warned residents they’re facing three potential outcomes next week. First, that the judge agrees with Northport’s position, keeping tax rates steady and LIPA will likely appeal. Second, the judge finds for LIPA that there was never a promise made to the schools.

“If it’s decided for LIPA, we are in deep trouble,” Gross said.

Third, if the judge decides both parties have raised significant issues then she can schedule the case to go to trial.

“I feel like we’re on our own in this,” said Michael Marcantonio, of Eaton’s Neck. “If we lose this case it will devastate our community.”

State Sens. John Flanagan (R-East Northport) and Ken LaValle (R-Port Jefferson) introduced legislation April 20 that could help mitigate any potential impact of the lawsuit on Northport taxpayers, and the other
municipalities and school districts battling similar disputes with the utility. The bill seeks to lengthen the time frame over which LIPA’s taxes would be gradually reduced from nine years to a proposed 15 years. In addition, it would grant the municipal governments and school districts who lose a tax assessment challenge to LIPA after April 1, 2018, access to the state’s electric generating facility cessation mitigation program. This way, town government and schools could create reserve funds to mitigate the burden on their taxpayers.

They put the promise in black and white in submissions to the IRS that taxes would not be affected for the host communities — us.”
– John Gross

Northport Superintendent Robert Banzer encouraged residents to reach out to their state
assemblyman and encourage them to push the legislation forward before this year’s session ends June 30.

“We are strenuously working on this from multiple arenas in both the court of law but also the legislation that’s been proposed,” Banzer said. “I want to thank those of you that are advocating for this legislation, as again, we want to cover this on as many fronts as possible.”

A spokesperson for state Assemblyman Andrew Raia (R-East Northport) said Raia had reached out to his fellow Assemblyman Steve Englebright (D-Setauket) to see if he would review the legislation and introduce it as a member of the house’s majority party. If not, Raia would sponsor it.

If LIPA were to win its lawsuit for a 90 percent reduction of taxes against the Town of Huntington, Gross said Northport homeowners whose homes have an assessed value of $3,700 could see their school taxes jump by as much as 81 percent over the next nine years.

Banzer said the district still remains open to negotiation of a settlement.

Brookhaven Town Supervisor Ed Romaine (R) announced April 3 that the town government had reached a settlement with LIPA on its assessment lawsuit over the Port Jefferson power plant. Port Jefferson School District officials called this news “deeply troubling.”

District to hold May 1 community forum to discuss status of lawsuit over power plant’s tax assessment

Northport High School. File photo

Northport school officials are calling for Long Island Power Authority to uphold a decades-old promise over taxes on its power plant as a June trial date looms.

Superintendent Robert Banzer has called for LIPA to stand by a 1997 agreement made between the district, the utility company and former New York State Gov. George Pataki (R) in an April 16 letter to community residents. Banzer alleged the power company had agreed not to seek to lower the assessed tax value of the Northport power plant as long as local authorities did not abusively increase it over time.

“While it is a very complex issue that goes back to the 1990s, it boils down to one simple premise: LIPA made a promise to our school district and we are fighting hard to make sure they, and others, continue to fulfill their promise,” Banzer wrote in the letter.

LIPA made a promise to our school district and we are fighting hard to make sure they, and others, continue to fulfill their promise.”
– Robert Banzer

In 2010, LIPA and National Grid filed a lawsuit against the district challenging the assessment of the power plant and demanding a 90 percent reduction in taxes, also seeking the difference in tax refunds retroactively.

“Obviously, a 90 percent reduction to the power plant’s assessment would be devastating to the school district, its residents and most importantly, our students,” Banzer wrote.

The district currently receives about 38 percent of its overall revenue from the taxes paid on the Northport power plant, or the equivalent of nearly $53 million per year.

The superintendent said the district has been involved in settlement discussions with LIPA “which at this point, has not yielded a reasonable resolution.” The utility company’s latest proposed settlement would be a 50 percent reduction in taxes over a nine-year period, according to the
superintendent, which would increase the tax burden on district residents by millions per year. Banzer said if this proposal took effect, the schools would be forced to “make additional modifications, including cutting programs and staff significantly.”

In his letter to residents the superintendent stated that the district remains open to negotiating a settlement with LIPA. He did not respond to requests for further interviews.

The two parties have limited time to reach an agreement as a state supreme court trial is slated to begin in June.

Obviously, a 90 percent reduction to the power plant’s assessment would be devastating to the school district… ”
– Robert Banzer

State senators John Flanagan (R-East Northport) and Ken LaValle (R-Port Jefferson) introduced legislation April 20 that could help mitigate any potential impact of the lawsuit on Northport taxpayers. The bill seeks to lengthen the time frame over which LIPA’s taxes would be gradually reduced from nine years to a proposed 15 years. In addition, it would grant the municipal governments and school districts who lose a tax assessment challenge to LIPA after April 1, 2018, access to the state’s electric generating facility cessation mitigation program. This way, town government and schools could create reserve funds to mitigate the burden on their taxpayers.

Other municipalities, villages and school districts have had better success in bargaining with the utility company to varying degrees. Brookhaven Town Supervisor Ed Romaine (R) announced April 3 that the town government had reached a settlement with LIPA on its assessment lawsuit over the Port Jefferson power plant. Port Jefferson School District officials called this news “deeply troubling.”

“This decision will … place the school district in harm’s way,” the district’s statement said.

A community forum will be held May 1 at 7 p.m. in Northport High School’s auditorium where district taxpayers can learn about the potential impacts of the LIPA lawsuit on their school taxes and their children’s education as it moves forward.

 

2018 BOE candidates Ryan Biedenkapp, Mia Farina, Jason Kronberg, René Tidwell, Tracy Zamek and Ryan Walker. File photo by Alex Petroski

Six candidates have come forward to run for three vacant seats on the Port Jefferson School District Board of Education.

The three-year terms of trustees Tracy Zamek, Mark Doyle and Vincent Ruggiero expire this year, though only Zamek is seeking another term. She joined five other community members at the Port Jefferson High School auditorium April 24 for a meet-the-candidates event, hosted by the district’s three parent-teacher associations.

Doyle, who ran a write-in campaign when he was re-elected in 2015, said in an interview he will not seek a fourth term, citing growing professional obligations and a desire to have his seat filled by someone more able to offer up their time. Ruggiero did not respond to a request for comment sent to his school district email.

The candidates were asked six questions about relevant issues to the district — including the potential for lost revenue as Brookhaven Town and Port Jeff Village hammer out settlements with the Long Island Power Authority over an assessment dispute on its Port Jeff power plant — and education more broadly, and were allowed opening and closing statements. Each candidate also submitted personal bios to the administrators of the event, which were publicly distributed.

Meet the candidates

Tracy Zamek: She was first elected to the board in 2015. Zamek has lived in the district since 1996 and currently has two teens attending local schools. She is currently a fifth-grade teacher in the Hauppauge school district. She cited her desire for fiscal responsibility and to advocate for students as her reasons for running again.

“I believe every single student who attends Port Jefferson schools deserves a premier education,” she said. “Now more than ever, the people in this village and school community need to work together as one, in regards to the LIPA/National Grid gorilla staring us in the face.”

Ryan Walker: He moved to the district in 2010 and also has two children attending Port Jeff schools. Walker spent 10 years as a New York State police sergeant, followed by three years as a security guard in local schools. He was one of New York’s first nationally certified school resource officers in 2002.

He said his experience in law enforcement “will be an asset regarding the safety of the students in our schools.”

“I will work to balance the concerns of the residents with a common sense fiscal management plan to address our overall district funding needs,” he said.

René Tidwell: She has a daughter in sixth grade, and a long work history in banking and financial services. Tidwell currently works as a special education teacher’s aide. She is running because she wants to lend her
expertise in financial planning to help the community plan long term for the possibility of less annual property tax revenue, citing a need for not only student advocacy, but for taxpayers.

“With over 20 years of experience in banking and financial services, I will focus on data-driven research, analysis and long-term planning to develop solutions for our district’s funding requirements,” she said.

Jason Kronberg: Dr. Kronberg is a pediatrician with two children in district schools. He moved to Port Jeff in 2003 from Queens and cited his willingness to listen to all sides of a debate along with being “fiscally conservative,” yet “socially liberal” as assets he’ll bring to the district if elected.

“I was asked to become a member of the school board to serve as a rational and non-biased voice in what has become a contentious environment,” he said.

Mia Farina: She is a NYPD officer with a 6-year-old son in the elementary school. Farina said her philosophy if elected would be “if it’s important to your child it’s important to me.” She said her experience as a police
officer makes her uniquely qualified to address security concerns within schools.

“I would bring all my knowledge and assist the schools in every way to help keep our children stay safe at school and educate them in every possible way I know how,” she said.

Ryan Biedenkapp: He has a daughter and twin sons, and said an autism diagnosis for one of the twins precipitated their move to Port Jeff from Oceanside. He has experience as an occupational therapist and currently works in pharmaceutical sales.

“I see a need to increase communication among all stakeholders, while staying focused on the needs of all students,” he said about his reasons for running. “By increasing communication among all community stakeholders, building a stronger sense of community among students and staying focused on fiscal responsibilities, Port Jefferson will remain a school district we can all be proud of.”

The budget vote and trustee elections are on Tuesday, May 15.

Superintendent Paul Casciano and board president, Kathleen Brennan, listen to members of the public during an April 10 board of education meeting. Photos by Alex Petroski

By Alex Petroski

The Port Jefferson board of education voted unanimously to adopt the district’s nearly $45 million 2018-19 budget April 18. This comes eight days after the board decided to table the resolution as it sought more specifics on an announced “agreement in principle” between Town of Brookhaven and the Long Island Power Authority over the utility’s property tax assessment on its Port Jefferson power plant.

Ongoing litigation has loomed over the district and Port Jefferson Village, which each receive substantial amounts of property tax revenue as a result of housing the plant. Brookhaven Supervisor Ed Romaine (R) announced April 3 the town had an agreement in principle to settle the case with LIPA, though specifics of the agreement have yet to be made public. Port Jefferson Village Mayor Margot Garant has also publicly said the village is nearing a settlement in its version of the dispute with LIPA.

“The board of education and district administration have been working tirelessly on creating a budget that addresses our responsibility to provide an excellent education for our students in a physically and emotionally safe and secure environment that is balanced with sensitivity to the fiscal impact on our residents,” Superintendent Paul Casciano said April 18. “The proposed budget assumes that a finalized agreement between the Town of Brookhaven and LIPA does not materialize in time to impact the 2018-19 school budget.”

Casciano said during the April 10 meeting taxpayers should prepare for the possibility of program cuts and/or property tax increases in the coming years.

A letter from Romaine to Casciano and BOE President Kathleen Brennan dated April 11 said the town attorney and assessor’s offices have been in touch with district officials to make the district aware of how a settlement would impact the 2018-19 town assessment rolls, which directly impact school tax rates.

The adopted budget carries a 2.27 percent tax levy increase and a 2.23 percent increase to state aid. The 2018-19 budget rolls over all programs from the current year, with contractual raises and higher health
insurance costs for faculty and staff driving the 3.65 percent overall budget increase.

The district also presented a backup plan should an official settlement be reached between the town and LIPA prior to June 30, which would impact the current year assessments. PJSD is prepared to make $130,000 in reductions to help mitigate a possible 5.67 percent drop in assessed value of the plant, or a 50 percent reduction in the assessment spread out evenly over a nine-year span.

On April 20, state Sen. John Flanagan (R-East Northport) introduced legislation co-sponsored by Sen. Ken LaValle (R-Port Jefferson) that would authorize municipalities to obtain “tax certiorari stabilization reserve funds” via the Urban Development Corporation Act in the event agreed-upon settlements result in loss of tax revenues or increased tax levies of more than 20 percent. The bill is before the state Senate finance committee.

District hoping for details on Brookhaven, LIPA settlement before finalizing 2018-19 spending plan

Superintendent Paul Casciano and board president, Kathleen Brennan, listen to members of the public during an April 10 board of education meeting. Photos by Alex Petroski

An announcement by Brookhaven Town Supervisor Ed Romaine (R) April 3 was supposed to provide clarity, but it has done anything but.

Romaine announced during his State of the Town address Brookhaven had reached a settlement with the Long Island Power Authority, which would end the legal battle being waged since 2010 regarding the assessed valuation and property tax bill the public utility has been paying on its Port Jefferson power plant. While in the midst of preparing its 2018-19 budget, Port Jefferson School District officials said in a statement they were caught off guard by the announcement and, as a result, the board of education moved to delay
adopting its proposed budget during a meeting April 10. The board will hold a special meeting April 18, when the budget will be presented before a vote to adopt. School budgets must be submitted to New York State no later than April 20.

“We don’t know what the terms of that agreement are — as a matter of fact, there is no agreement.”

— Paul Casciano

“When you plan to make reductions, you need to know how much to reduce,” Superintendent Paul Casciano said during the meeting. “That is the problem with what the town announced, because essentially what the town announced was that they reached a tentative deal. We don’t know what the terms of that agreement are — as a matter of fact, there is no agreement. That’s what we have learned. There are a lot of things that have been talked about at the town level. We have been spending a lot of time trying to find out what the details are.”

Town spokesman Kevin Molloy refuted Casciano’s claim that a deal is not in place.

“We have an agreement in principle, it has not been finalized or signed,” he said in a phone interview. “The town has sought state aid as part of this agreement. This state aid was not included in the recently adopted budget. We are continuing to work with LIPA for a settlement to this case that is fair for our residents and uses any funds from this settlement to reduce electrical charges to ratepayers.”

The town has not shared details about the agreement in principle publicly.

Casciano was asked by resident Rene Tidwell during the April 10 meeting if the district had long-range plans to address the likelihood it will be losing a chunk of the annual revenue the district receives as a result of the power plant’s presence within the district.

“I’m deeply concerned that this potentially devastating issue has not been more proactively addressed in the years since it was first initiated,” Tidwell said during the public comment period of the meeting.

Casciano strongly pushed back against the idea the issue hasn’t been a top priority for the board and administration.

“We have an agreement in principle, it has not been finalized or signed.”

— Kevin Molloy

“The plan is very simple — you cut staff, which results in cutting programs,” he said, though he also put the onus on residents to prepare for possible future tax increases. “There comes a time where it’s not all going to be the school district
cutting programs and cutting staff. At some point, taxpayers — and it may be this year — are going to see an increase in their taxes. We don’t assess. The town assesses. The village assesses.”

Board president, Kathleen Brennan, also disagreed with the idea the board has not been prepared to deal with the LIPA situation.

“I’ve been a board member for eight years,” she said. “Going back those eight years on that board and every subsequent board, this board has addressed the issue head on and has done things that you haven’t read about on our website.”

Board member Vincent Ruggiero first motioned to remove budget adoption from the BOE agenda.

“Given the uncertainty and the fact we don’t have a clear answer from Brookhaven, we have a week that we can adopt this budget, I’m just proposing that we wait as long as we can for some type of response, although we probably won’t get one, and hold the vote next week,” he said.

The public portion of the special April 18 meeting of the BOE will begin at 6:30 p.m.

Port Jeff includes $107K in 2018-19 budget for anticipated “glide path”

Port Jefferson Village Mayor Margot Garant. File Photo

The potential ramifications of the looming LIPA lawsuit specter may finally be coming into focus.

Port Jefferson Village Mayor Margot Garant announced during a public hearing April 2 on the 2018-19 budget the village is “on the cusp of a settlement” with the Long Island Power Authority, which would end the legal battle being waged since 2010 regarding the assessed valuation and property tax bill the public utility has been paying on its Port Jefferson power plant. LIPA has argued the estimate is too high based on decreased energy demand, and the village accused LIPA of breaching its contract, which was supposed to run until 2028. The village and Port Jefferson School District receive substantial revenue from LIPA’s tax dollars and have had the prospect of lost revenue hanging over future financial planning. Port Jefferson is among other municipalities, like Northport, which host plants that have lawsuits against LIPA and believe the contract has been breached.

Garant said the board came to the decision to write $107,000 into the upcoming budget to create a reserve fund to prepare in anticipation for a “glide path” agreement, in which the village’s LIPA revenue will be scaled down gradually over time. The figure was chosen to bring the total budget’s tax levy increase to exactly 2 percent, thus avoiding asking residents to pierce the cap. The 2018-19 adopted budget is $10,642,146, about $233,000 up from to the current year, with the largest driver of the increase being the money set aside to deal with LIPA.

“The appropriations of reserves that we have accumulated over the last six to seven years aside, once we know what the glide path looks like, we will be putting our fund balance, monies that we’ve built, into that reserve account, which kind of locks it away so that future boards, if there should be future boards, can’t take that money and do something else with it,” Garant said. “It’ll preserve that money and entrust it to contributing toward the glide path.”

Brookhaven Town Supervisor Ed Romaine (R) announced during his State of the Town address April 3 it had reached a settlement with LIPA on its version of the assessment suit. Village Attorney Brian Egan said Brookhaven’s settlement would have no impact on Port Jeff’s discussions, and that negotiations were ongoing.

“This year it’s basically another rollover budget like we’ve had in the past with very minimal changes,” village treasurer, Denise Mordente, said during the presentation. Other factors contributing to the budget increase included contractual raises for village employees, the increasing minimum wage, increased costs for medical benefits, and some additional funds for code enforcement that were used for installing security cameras and maintenance throughout the village, among a few others.

The board also passed a resolution that would give it the option to pierce the tax levy increase cap — as it does every year — should it need to do so, though that is not in the village’s plans for the upcoming year.

Port Jefferson School District offered a scathing statement in response to the news about Brookhaven’s settlement, saying it is “deeply troubled,” to hear of the settlement.

“This decision will imminently place the School District in harm’s way,” the statement said.

This story was updated April 4 to remove information mistakenly included about a public budget vote, and to include a statement from Port Jefferson School District.

State Sen. Ken LaValle (R-Port Jefferson). File photo

New York state Sen. Ken LaValle (R-Port Jefferson) wants to make it more difficult for LIPA to increase rates for its customers.

LaValle and Assemblyman Fred Thiele (I-Sag Harbor) introduced the Long Island Power Authority Rate Reform Act in January, a bill drafted to require the not-for-profit public utility’s board of trustees to “protect the economic interests of its ratepayers and the service area,” in addition to the interests of the utility company when considering a rate increase proposal, according to a joint press release from the lawmakers. The bill would also prevent LIPA from increasing rates to offset revenue losses associated with energy conservation efforts, like the installation of energy-efficient appliances and lightbulbs. If passed, it would be mandated the board hold public hearings within each county overseen by LIPA prior to finalizing rate plans.

Currently, LIPA’s board is required to consider three criteria when a rate increase is proposed by the State Department of Public Service: sound fiscal operating practices, existing contractual obligations and safe and adequate service, according to the press release.

“While we have been working to keep Long Island affordable by implementing measures like the 2 percent property tax cap, LIPA approved the largest rate increase in its history,” LaValle said in a statement, citing a three-year rate increase approved by the board in 2015. “This measure will enable more community input by mandating a public hearing when considering rate changes. In addition, this legislation would provide the trustees with the tools necessary to reject rate increases that would cause additional financial burdens on Long Islanders.”

Brookhaven Town Supervisor Ed Romaine (R) and Port Jefferson Village Mayor Margot Garant each voiced support for LaValle’s bill.

“The record amount of investment in reliability, customer service and clean energy all come at a time when electric rates have remained roughly flat for decade,” LIPA Trustee Tom McAteer said in a statement through spokesman Sid Nathan. “Customer satisfaction is significantly higher and customers see PSEG Long Island crews tree-trimming and storm-hardening the electric grid throughout the year. Those are the facts. Not opinion. The Reform Act is working for our customers.”

The LIPA Reform Act was enacted in 2013 to revamp the utility’s operations, including empowering the board to decide on proposed rate increases. PSEG Long Island — which operates LIPA’s distribution systems — Media Relations Specialist Elizabeth Flagler said in a statement the company is reviewing the legislation and will be monitoring its status.

The proposed legislation comes as municipalities continue settlement discussions pertaining to lawsuits filed by Port Jeff Village and Port Jefferson School District — both in LaValle’s home district — in addition to the Town of Huntington and Northport-East Northport School District against LIPA to prevent the utility’s challenges to property value assessments at the Port Jeff and Northport plants. The result of the lawsuits could have a dramatic impact on Port Jeff Village and its school district, as both entities receive substantial property tax revenue as a host community of a LIPA power plant.

The Port Jeff plant is currently used about 11 percent of the time, during periods of peak energy generation demand, an argument LIPA has used against the village’s public pleas to repower its plant and give LIPA more bang for its tax-assessment buck. A 2017 LIPA study predicted by 2030 the Port Jeff plant might only be needed about 6 percent of the year, thanks in part to the emergence energy efficient household appliances. In August 2016 New York Gov. Andrew Cuomo (D) mandated that 50 percent of the state’s electricity come from renewable energy, such as wind and solar power, by 2030.

Bruce Blower, a spokesman for LaValle, did not respond to an email asking if the proposed legislation was drafted with the lawsuits in mind, or if a settlement was imminent. Both the senate and assembly versions of the bill are in committee and would require passage by both houses and a signature from Cuomo prior to becoming law.

The Shoreham power plant on North Country Road provides peak power to the community and payments in lieu of taxes to the Shoreham-Wading River school district. Photo from Jason White

A Brookhaven organization recently saved energy in the most literal sense, and a reliable revenue stream too.

The Town of Brookhaven Industrial Development Agency (IDA) announced Nov. 27 it prevented the shutdown of an electric-generating plant in Shoreham, which provides peak power to the community and is expected to contribute $852,000 in property taxes or payments in lieu of taxes, commonly known as PILOTs, to the Shoreham-Wading River school district this year.

Brookhaven’s business arm has entered into a new, 20-year PILOT agreement with owners of the 90 megawatt, jet-fueled facility located on 10 acres of land on North Country Road, leased by the Long Island Power Authority. The facility’s previous PILOT and power purchase agreement between LIPA and Brookhaven expired this past August after 15 years.

In the proposal for the PILOT, which became the adopted policy when it was approved by the IDA in January 2017, projected gradual benefits range from $1.2 million in its first year to $1.7 million in its 20th.

The partnership began in September 2016 when members of J-Power USA — owners of the facility since 2010 — realized the expired pact would bring about a 33 percent reduction in revenue and a 50 percent reduction in economic benefits. The members were also told by LIPA representatives that the nonprofit would not be involved in negotiating a new PILOT.

“We wanted to see if Brookhaven would be able to offer a new PILOT that would  allow us to remain financially viable and our agreement has removed that big uncertainty,” said Jason White, director of asset management at the J-Power Shoreham branch. “Our facility uses General Electric combustion
turbines and while it doesn’t operate a lot, it’s important to the electric grid for stability purposes. It’s maintained so that it can respond very quickly if it’s called upon.”

White said although there had to be consideration to disassemble the power plant and move off Long Island in the case an agreement couldn’t be reached, it wouldn’t be a simple process, and the facility’s six
employees live close by.

“Our preference all along was to continue to operate the plant site and to continue to be a contributor to the local community,” White said.

By securing the power plant’s place in Shoreham, revenue is boosted for the school district, which relies heavily on it as a source of both energy and property tax revenue.

“I am pleased that we have been able to close on this new agreement with J-Power,” said Frederick Braun, chairman of the IDA. “Had we been unable to keep this plant from moving off Long Island with this new agreement, the Shoreham School District and other taxing jurisdictions would receive no payments at all, resulting in an even larger loss to those taxing jurisdictions.

The school district, which included the finalization of $852,000 in PILOT revenue in its Revised and Lowered Expenditure Budget & Tax Levy in October, approved the agreement in a resolution during a board meeting last Jan. 10.

“Be it resolved that the Board of Education of the Shoreham-Wading River Central School District supports the proposed financial assistance contemplated by the Brookhaven Industrial Development Agency in connection with the J-Power Peaker Plant,” the letter read.

Lisa Mulligan, the IDA’s chief executive officer, said she had been in contact with the district’s board of education since meetings began with J-Power “as they were the most impacted by this.”

“We didn’t want to pursue something if they were not interested in it,” Mulligan said. “But the board wrote to us and told us they were … I think it’s important to bring money into the school district and also provide this power to residents when it’s needed.”

Officials say the subcontractor for PSEG/LIPA is violating town code

Material outside Asplundh Construction, located across the street from Mount Sinai schools. Photo by Kevin Redding

By Kevin Redding

Brookhaven Town leaders are determined to stamp out what they’ve deemed an illegal eyesore in Mount Sinai — a commercial retail area turned industrial facility on Route 25A near the entrance to the school district campus. Officials said by being there, the owners and tenants of the property are willfully violating town zoning codes and damaging quality of life in the process.

During a press conference Aug. 22, town Supervisor Ed Romaine (R), along with town officials and a civic leader, stood across from a fenced-in lot where concrete is crushed and dozens of the Asplundh Construction company’s trucks, as well as poles and large spools of cable, are stored.

A lineup of Asplundh Construction trucks on the company’s lot. Photo by Kevin Redding

Romaine said the type of activity on the property, which is owned by Nkp Properties LLC, of Farmingdale, is illegal under J-2 zoning and is restricted to industrial property only — a fact he said Nkp is aware of as it paid a town-issued fine of $4,000 in April. Despite paying the fine and pleading guilty to violating the town code, Nkp continues to use the property. The group was met with more fines July 24, which included a ticket for a second offense of the code violations and for not having site plans to try and legalize the activities on the site.

According to the town’s deputy attorney, David Moran, the attorney for Nkp  at the time “acknowledged that the use was not appropriate and said he was going to try to get all the necessary site plans and approvals in.”

No one from Asplundh Construction returned phone calls for a request for comment, and visits to the site for questions were directed back to the telephone number.

Officials during the press conference called on the company, a subcontractor of PSEG and LIPA, to vacate the property as soon as possible.

“The parents that drop their children off at the school, employees and civic members— residents in Mount Sinai certainly don’t appreciate what’s going on across the street from us.”

Jane Bonner

“The last time I looked, LIPA was a public utility whose subcontractor is willfully flouting zoning laws in the Town of Brookhaven,” Romaine said. “That type of zoning violation is one we will not stand for. We are particularly concerned because this is adjacent to the Mount Sinai schools. We’re asking that they come into compliance or we have to take further action.

The property was previously the site of a party equipment rental business. When Asplundh moved in, a structure on the site was demolished.

Councilwoman Jane Bonner (C-Rocky Point) said it’s negatively impacting the town.

“One of the things that the Mount Sinai community is desirous of is a corridor that is user-friendly and appealing to the eye,” Bonner said, looking at the Nkp property behind her. “I’ve been in office almost 10 years and for the past eight years, the property behind me has been a constant source of complaints from the community, the parents that drop their children off at the school, employees and civic members. Residents in Mount Sinai certainly don’t appreciate what’s going on across the street from us.”

Bonner said she would like to settle this problem before the start of the new school year. More than 30 Asplundh trucks, she said, drive in and out of the lot every morning, which can become a safety concern once buses join Route 25A traffic.

Ann Becker, president of the Mount Sinai Civic Association, also expressed her concerns.

Mount Sinai Civic Association President Ann Becker talks about her feelings toward the construction company across the street from Mount Sinai schools during a press conference Aug. 22. Photo by Kevin Redding

“The civic, which recently celebrated 100 years, has been working to maintain the quality of life here in Mount Sinai for all that time and we continue to do so, and we continuously get complaints about this location and now it’s becoming even worse than it was before,” Becker said. “We’re really wanting to have nice businesses here and we’ve done a lot of work on beautification … what’s happening behind us is absolutely against everything the civic has stood for.”

She said she hopes the current owners ultimately cease and desist so that the location is turned into something more appropriate for the community.

Moran said he believes the businesses will try to get away with the violations as long as they can in order to maximize every dollar out of it to help fund construction projects.

“From a prosecutorial standpoint these types of flagrant violations will not be tolerated in the Town of Brookhaven,” he said. “You can’t just buy property and use it to your will. We have codes that must be followed and, in this instance, I can assure you that we will ensure that they follow our codes.”

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