VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

August 4, 2008

MONDAY 6:00 PM

Water and Light Office

The meeting duly noticed and warned was called to order at 6:00 PM.

PRESENT:

Trustees: Dana Wildes, Tim Sargent, Ed DeBor, Keith Thompson, Peter Bourne

Staff: Jim Fontaine, Penny Jones, Linda Osgood

ABSENT: Craig Myotte

1) PUBLIC MEETING:

No members of the public were present.

2) OLD BUSINESS – ENERGY EFFICIENCY AND GREEN RESOURCE INVESTMENT:

750 kW unit at Cady’s Falls (the horizontal unit) may be a good place to focus on a green resource investment as a crucial valve on the unit has disappeared and the unit is 94 years old. A microturbine for the Green River bypass valve is being explored. Jim would like to concentrate on the racks, gates and the horizontal unit at Cady’s Falls and the bypass for Green River. It may be possible to replace the 750 kW unit with a different sized one that would run all the time. Not much room for improvement at Plant #2 once the headgate and trash rack project is completed. Jim was unsure if Craig had asked Greg Cloutier for a follow-up to his report.

3) MANAGEMENT REPORT:

The last two weeks have been tough outage-wise due to lightening storms. Most outages were caused by lightening strikes but a couple we caused by trees.

The goal for generation for July was 550,000 kWh and we have produced approximately 795,000 kWh due to the heavy rainfall.

All utilities need to file a new line extension policy that defines a delivery point. That delivery point will vary from utility to utility.

There is an upcoming meeting at the State level on smart metering. It appears the DPS will hold a collaborative process with all utilities to try to introduce smart metering.

Penny spent quite a bit of time developing a data base for the water meter project for contact purposes. One question that has already come up is if the remote has to be visible on the outside of the house. Can it be on the backside of a house, out of sight? Jim is unsure.

The SQRP filing for the second quarter looks good in all categories.

Penny stated she and Craig met with Dave Mullett (VPPSA) and Ray Koliander (formerly of DPS) to talk about rate case filings.

We have an agreement with Shaun Kuney (Munchies) and received a check for $3,000 ($2,000 towards his old account and $1,000 as a deposit) for water and sewer for his new account, which will remain in Shaun’s name as owner of the property. Our lien on the property will remain in effect until paid in full.

The mediation with CVPS went from 9AM to 9PM but we got nearly 75% of what we were owed. It is a huge relief to avoid another complaint filing with FERC.

4) APPROVE MINUTES OF MEETING HELD JULY 21, 2008:

Page one should note that Brad Aldrich of FA&A joined the meeting by telephone. In item three it should read that the Chairman noted that when sewer allocation, which is not really an operational item and shouldn’t be used to balance the budget, was removed from the financials that WWTF was not doing very well. In item 6A, it should end with the Board amended the original water meter bid proposal to “spend up to $59,450”.

On a motion by Trustee DeBor, seconded by Trustee Bourne and approved by majority, the Board approved the minutes of the July 7, 2008, regular meeting as amended. Trustee Sargent abstained due to absence.

5) APPROVE MINUTES OF MEETING HELD JULY 21, 2008:

On a motion by Trustee Sargent, seconded by Trustee Thompson and unanimously approved, the Board approved the minutes of the July 21, 2008, regular meeting.

6) REVIEW/APPROVE REVISED FINANCIAL POLICY:

Staff reworded revision to “Any budget-approved (non-purchased power) project expenditure variance in excess of $75,000 is subject to final review and approval by the MWL Board”.

On a motion by Trustee Bourne, seconded by Trustee Thompson and unanimously approved, the Board approved the revised Financial Policy.

7) UPDATE OF WWTF PROJECT:

The rain has slowed construction progress. The sheathing needs to be approved by a structural engineer before proceeding. The next major step is excavating for the aeration tank. The slab for the UV building should be done in another month. Chuck Magnus of FA&A is on-site daily and has a good handle on the process and the subcontractors. Trustee Bourne requested an on-site tour of the project in August as a warned special meeting. Date to be determined.

There is a giant sign in the conference room that is require by the RDA and will be hung at 857 Elmore Street.

8) UPDATE OF WATER METER PROJECT:

We have sent letters to all water customers regarding the water meter project and have received 10 calls so far. East National Water Sales will begin contacting homeowners next week. He already met with John to look at all installations over 2”. Trustee Bourne asked if there would be a special rate for water users not using sewer, such as outside faucets. Also in the Village you have to attach to the sewer but not to water. How will we bill sewer for people using private wells?

9) OTHER BUSINESS:

Trustee Thompson still has an interest in setting up a fund to assist low income households with electric bills this winter and wondered if any other Board members were interested in MW&L ponying up $50,000 and asking local businesses to match. The Trustees discussed issues around setting up such a fund and asked staff to see if they could find a similar program in another community for us to use as a model.

Trustee Thompson suggested forming an energy committee. There already was a subcommittee on the Board and one in the community. He suggested inviting members of grass roots organizations to sit in on MW&L’s energy subcommittee and then form a town committee on alternative energy sources. The Trustees discussed committing a set amount from the Green River funds for alternative energy sources and applying for grant money. The Chairman suggested that we ask for 10 applicants to install alternative energy. Each applicant would need to be evaluated and graded for the economic benefit to MW&L. The Trustees discussed communicating the impact of power supply costs on the rates they pay and the need to allocate more effort on our power supply portfolio.

Trustee Bourne asked if we should dump several million dollars from the Green River funds into our own renewable sources and asked for a rate of return from the Green River funds for the next five years. The Chairman wants creating a generation entity put on the fast track. The Trustees discussed the need for a new logo to project an image for MW&L.

The Chairman received an email from Chip Sawyer in regards to prime agricultural soils and our Act 250 permit. The first draft has the right thought process in place and it will be presented at the next Planning Commission meeting.

No update from CCS yet.

We have received the tax donation form that needs signature for the Gregory property appraisal.

Stowe’s departure from VPPSA will have a financial impact on MW&L that VPPSA’s still trying to work through. The Trustees are interested in having Craig continue to pursue providing services to them.

The requested background information on the Ludlow project in the Board’s packets was not sufficient. Trustee DeBor stated they asked VPPSA for asked financials and got someone’s resume! The Board directed staff to request additional information from VPPSA.

Jim was contacted by Susan Primo who is concerned about the deterioration of Zackwoods from overuse and squatters. The Trustees are willing to consider preserving the property and asked Jim to get a proposal from Ms. Primo in advance of meeting with her.

10) EXECUTIVE SESSION:

Not required.

11) ADJOURNMENT:

At 7:55 PM, on a motion by Trustee DeBor, seconded by Trustee Bourne and unanimously approved, the Board adjourned the meeting.

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Tim Sargent, Clerk