VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

December 1, 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, Peter Bourne, and Ed DeBor.

Staff: Craig Myotte, Jim Fontaine, Penny Jones, Linda Osgood

ABSENT: Trustee Thompson

1) PUBLIC MEETING:

No members of the public were present.

2) CURRENT PRIORITY PROJECTS:

Craig briefly updated the Board on the status of the current priority projects. The project list includes: line purchase, hydro review RFQ, 2009 budget, SSMA (WWTF Act 250 Permit Conditions), FERC Part 12 Dam safety inspection, website redesign, sale of Zack Woods property, Bradley lawsuit, rate forecast for electric/water/sewer.

3) MANAGEMENT REPORT:

The recent capability audit with both generators in operation at Green River will result in a $3,000 increase in credits per month. Jim reported the final repair cost of the sewer line crossing at the Tomlinson’s Bridge on Bridge Street was $18,000.

Penny has met with a firm on redesigning our website and the question of a logo has arisen. The Board questioned whether MW&L really needs a logo as we sort of have a captured audience already. They directed her to work on one for the web site but not necessarily one that would be used in the field on trucks, hardhats, or shirts. They did ask her to somehow emphasize that we have been providing public power since 1895.

Our current billing system is not capable of handling net metering and we have a quote from Harris Computers of $15,000-$20,000 to upgrade for that technology. However, someone at VPPSA at some point wisely put into the Harris contract that any software upgrades that are needed due to State and/or Federal regulatory changed will be done free of charge. Penny is pursuing.

4) APPROVE MINTUES OF MEETING HELD NOVEMBER 17, 2008:

Trustee DeBor wanted to amend the wording in Item #3 to “will be in excess of budget”.

On a motion by Trustee DeBor, seconded by Trustee Bourne and approved by all present, the Board approved the minutes of the November 17, 2008, regular meeting as amended.

5) APPROVE SMART METERING MEMORANDUM OF UNDERSTANDING:

PSB Docket 7307 on Smart Metering was fast-tracked. Craig feels that this is an MOU that would be difficult to NOT sign. The only quibble point will be how the feasibility study will be paid for. The Chairman is concerned of the impact on ratepayers versus the benefits. Jim replied that metering technology was changing so drastically and quickly that the price of these meters keeps going down. He believes a slow implementation over a period of time may work to MW&L’s benefit.

On a motion by Trustee Sargent, seconded by Trustee DeBor and approved by all present, the Board moved to sign the Memorandum of Understanding for Docket 7307 on Smart Metering.

6) UPDATE ON WWTF PROJECT:

The concrete is done, as are most of the shells of the buildings. They are now working on the inside of the UV building. The road is at final grade and equipment is starting to arrive. All equipment is being stored on-site.

7) UPDATE ON WATER METER PROJECT:

This project is going slower than planned. Plumbers are finding a lot of non-standard installations that take much more time and material. We are finding a few finished basements that will require a carpenter. The plumber proposes a meter pit for these non-standard installations but at a cost of $2,400/pit this will need to be thought through. Up Country Plumbing will be adding more staff. The plumbing inspector did a spot check on the 100 +/- meters that had already been installed by East National and found no problems. It is too early to say where the project stands relative to budget.

8) REVIEW POWER SUPPLY CONTRACTS:

Craig gave a brief introduction to the Board on the format that VPPSA uses so that they could see just how complicated it is. The Chairman asked what VPPSA’s assumptions were on the energy market and how did past assumptions pan out. Penny provided a summary of VPPSA’s budget to actual performance for the past 5 years.

9) REVIEW DRAFT POWER SUPPLY BUDGET FOR 2009:

Trustee Bourne stated that no amount of money that we pour into our own generation units will be able to compensate for the loss of Hydro Quebec and Vermont Yankee and that MW&L will be forced into some type of short-term contracts. Trustee DeBor replied that if long-term contracts were not available and/or feasible then MW&L needed to become part

owners of more projects such as Project 10. The Chairman speculated that HQ may start to offer longer-term contracts just to keep the United Stated from developing nuclear. Craig mentioned that if VY gets relicensed then the outlook might not be so grim. The three hydro plants that we own look better and better.

Craig hopes to have a recommendation for the Board on Project 10 at the next regular meeting.

10) OTHER BUSINESS:

Ed Stanek was a little confused on our letter to him but Bill Rossmassler has cleared him up.

The Selectboard has asked if the Village has a role to play in keeping Hearthstone in Morrisville. There doesn’t seem to be much of a role other that providing a service and provided any requested information. The Village will not pay for infrastructure but we will partner in any applications and permits. The Chairman feels that LEDC needs to take the lead in finding grant money. Trustee DeBor state that he has been listening for five years about a sewer agreement between the Town and the Village. Hearthstone is a Town entity so this is the time to finalize an agreement. The Board would like to wait for the Town Administrator to step forward with a proposal and Trustee Bourne asked Craig to send a letter to the Town stating we support keeping Hearthstone so let’s finally put this issue to bed.

Not much movement on Zackwoods yet. Sue Primo has spoken with the Vermont River Conservancy and they require a letter of intent before they will talk grants.

The Trustees discussed electric rates for 2009. If forecasts are accurate, an electric rate increase may not be needed in 2009. Staff will continue to review data and consider issuing a press release early in 2009. The Chairman mentioned that if other asset purchases come through, we won’t see much upward pressure on rates for a few years down the road. Trustee Bourne stated that we might want to put in for a small rate increase in the future just for our hydro stations. Trustee DeBor asked Craig to get the projections for growth for New England over the next five years in kWh.

Lamoille Regional Solid Waste Management District (LRSWMD) has a one year contract for their recycling station on MW&L’s property near Substation #5. They have asked for two minor changes. They want to use a split roll-off as opposed to the truck they are using now and they would like a longer-term contract.

11) EXECUTIVE SESSION:

At 7:30 PM on a motion by Trustee Bourne, seconded by Trustee Sargent and approved by all present, the Board went into Executive Session to discuss contracts.

At 8:05 PM on a motion by Trustee Bourne, seconded by Trustee Sargent and unanimously approved, the Board came out of Executive Session.

12) ADJOURNMENT:

At 8:06 PM, on a motion by Trustee Bourne, seconded by Trustee DeBor and unanimously approved, the Board adjourned the meeting.

___________________________________

Tim Sargent, Clerk