VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

December 3, 2007

MONDAY 6:00 PM

Water and Light Office

The meeting duly noticed and warned was called to order at 6:05 PM.

MEMBERS PRESENT: Trustees: Bourne, Sargent, Thompson, Wildes, DeBor

Staff: Craig Myotte, Jim Fontaine, Penny Jones

1) PUBLIC MEETING:

No members of the public were in attendance.

2) OLD BUSINESS:

Craig had a discussion with Tad Lamell and Red Reynolds of Copley Country Club. Mr. Reynolds thought the amount owed MWL was in the $2,500 range. Mr. Lamell indicated that Mr. Reynolds number might be on the low side. Mr. Lamell thought the right number would be in the $2,500 to $4,000 range. The offer is well below staff’s estimate. More negotiations will be required.

6) STANTEC PRESENTATION (TIME SPECIFIC – 6:10PM):

Mike Katz and Jeff MacDonald joined the Trustee’s meeting via telephone to review the results of their High Service Water Storage Facilities Study conducted for the Village. Areas in the southeastern portion of the Morrisville water system adjacent to the 0.5 MG reservoir currently experience lower than adequate system pressures. These low pressures not only affect the daily domestic usage in this region but they also inhibit the ability to supply the needed fire flows in this area. Morrisville's existing 0.5 MG reservoir was built in 1912 and is reaching the end of its useful life. During the 2003 Master Plan Study, the tank was isolated from the system and it was discovered that approximately 144,000 gallons of water per day were leaking from the tank. The tank was subsequently drained and patched but due to the tank's age there is much uncertainty regarding its structural integrity. Due to the fact that this tank will have to be replaced in the near future, a new tank to boost the hydraulic grade in the areas of low pressures is the best option for addressing both the pressure and storage requirements of the Morrisville water system.

The Chairman asked what size of storage a community of this size needed. Storage is supposed to equal daily usage plus fire protection. MW&L’s usage is 576,000 gallons/day plus fire flows. Stantec came up with a total storage requirement of 1.1 million gallons.

The Trustees discussed the difference in benefit between a pump station and a new reservoir. Trustee Wildes summarized the issue. A pump station ($850,000) would only solve the low pressure problems. A new reservoir will solve four problems: 1) existing .5 million gallon reservoir built in 1912 is losing 100,000 gallons a day. It has outlived its useful lifespan; 2) solves all low-pressure zones; 3) separates Copley Hospital to maintain pressure and fire flow; and 4) benefits the entire water system. He also verified the life expectancy of steel tanks versus concrete tanks (25 years versus 50 years).

Trustee Sargent asked if Stantec was willing to make the presentations to RDA for more funding. They are willing to assist.

The Trustees asked what their time frame was. Jim informed them that our Water Quality Permit expires in 2008. The State has already informed us that the chlorine separation issue and the low pressure zone issue will need to be addressed before issuing a new permit. Not to mention that the State was not allowing any new water connections in the existing low pressure zone.

On a motion by Trustee Wildes, seconded by Trustee DeBor and unanimously approved, the Board approved the High Service Water Storage study completed by Stantec for implementation. They advised Jim to begin the funding process and the RFP based on Stantec’s study.

3) MANAGEMENT REPORT:

Hydro generation is cranking right along. Estimating 1,000,000 kWh generation for the month of November.

Mr. Heneau has filed an appeal with the Environmental Court about the new distribution line recently construction on Stagecoach Road near Kenfield Brook development. Jim feels most of the questions are aimed at the DRB other than why did the DRB allow MW&L to do certain things. Environmental Court may deem appeal is frivolous, or outside their scope of control, and refuse to hear it.

Cottage Street has been paved just one day before the asphalt plant closed for the season. The new pavement even survived the first plowing of the season.

There is a meeting tomorrow morning with our representative from Business Resources Service about health insurance. If we make the proposed changes, we are looking at a saving to MW&L of $10,000/year and a savings to employees of $2,500/year. Penny feels overall this is a better plan but the employees have to agree to it. The major change is an employee must list a primary care giver and out-of-state visits will need prior authorization. Trustee DeBor suggested also looking at the CIGNA plan through VLCT.

The private sewer line work with Manosh and Murphy Realty has been all wrapped up.

Loss issue with CVPS is still pending. Good news is Craig received a call from CVPS’s public relations department (at the behest of Senator Bartlett). Bad news is the person Craig spoke with didn’t have a clue what the issue was about. Not sure if it will go anywhere but at least there was a reach made by CVPS.

There has been some settlement correspondences going back and forth on the Lamoille County Project (115 KV line to Stowe).

4) APPROVE MINUTES OF MEETING HELD NOVEMBER 19, 2007:

Item 10 needs to read that “Trustee Wildes pointed out that we wanted longevity and low costs”. On a motion by Trustee Wildes, seconded by Trustee Thompson, the Board approved the minutes of the meeting held November 19, 2007, as amended. Chairman Bourne abstained.

5) APPROVE SIGNAGE APPLICATION FOR SEWER PLANT ROAD:

Item deferred until Eileen can get the Board more details as to what this sign will say.

The Board did approve the 2007 Miscellaneous General Government Operational Expenses paid to the Town of Morristown for use of Town equipment and supplies. These items had already been approved under the 2007 budget and Mary Ann was just looking for a sign-off.

7) DISCUSS NOVEMBER 27^TH WWTF ACT 250 STATEMENT MEETING:

MW&L was looking for a joint statement between the Planning Commission, the Selectboard and the Trustees to support our Act 250 filing. Out of that meeting, they were able to come to consensus on a statement of facts until the TSSA and the Town plan can be completed. The Planning Commissions’ proposed maps for the TSSA are very black and white with no flexibility. The Trustees want a little flexibility. The Selectboard seems to be somewhere in between. The Trustees do not want to give up the ability to sell sewer services just because someone is outside the lines on the TSSA.

The Trustees discussed various aspects of the TSSA and the Village philosophy, with some differences of opinion among the Trustees. The Chairman suggested that they revisit this topic at their next meeting, reach a consensus amongst themselves, and then approach the Selectboard and Planning Commission with a unified front.

8) REVIEW DRAFT 2008 CAPITAL AND EXPENSE BUDGET:

This is still a work in progress but Penny hopes to have more solid numbers for the next meeting. She did point out that purchased power costs for the Electric Department does not reflect any downtime for upgrades of our own units. Historically, the office staff’s benefits hit the Electric Department entirely. For 2008 Penny has tried to allocate a percentage of those benefits to the Water and Wastewater Departments based on work time allocated to those departments.

9) DISCUSS VELCO EQUITY PURCHASE:

The Board had previously discussed using some of the Green River funds for upcoming VELCO equity purchases. Lately the Board had been discussing using those funds for our own generation projects. VPPSA is currently planning to do the equity funding for a majority of the VPPSA members. As these purchases could add up to over $1.2 million before 2010, Craig suggests we join in the VPPSA funding project. The Chairman suggested splitting the borrowing with VPPSA and using $685,000 of Green River funds for the equity purchase.

10) REVIEW NOVEMBER 19^TH STATUS REPORT OF WWTF PROJECT FROM FA&A:

The preliminary 60% completion meeting is scheduled for later this week. The Board will have that report at their next meeting. Project still on budget. The Chairman is interested in knowing the total fuel load for the projected plant to determine if propane might work. He also suggested asking Efficiency Vermont about thermal heating from the warm effluent.

11) PROPERTY MANAGEMENT:

Not much to report other that Tim Sullivan’s appraisal of the Gregory property should be ready tomorrow. Hank Glowiak had requested to meet with the Board but did not show up tonight, probably because of the weather.

12) DISCUSS ANNUAL TRUSTEE CALENDAR:

Item tabled for a future meeting.

13) OTHER BUSINESS:

The Chairman asked if the rest of the Board was comfortable with the proposed assignments for them. The rest of the Board replied they were.

The Trustees expressed concern over the 30% increase in Efficiency Vermont rates. The Trustees asked Craig to investigate if the EEU can present this Board with some substantial financial reports. They want reports so they can look at line-by-line items and overhead costs. The Trustees support the concept but are concerned with lack of accountability.

14) EXECUTIVE SESSION:

On a motion by Trustee Wildes, seconded by Trustee Sargent and unanimously approved, the Board went into Executive Session at 8:25PM to discuss contracts.

On a motion by Trustee Wildes, seconded by Trustee Thompson and unanimously approved, the Board came out of Executive Session at 8:37PM.

15) ADJOURNMENT:

At 8:38 PM, on a motion by Trustee Wildes, seconded by Trustee Thompson and unanimously approved, the Board adjourned the meeting.

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Dana Wildes, Clerk