VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

December 7, 2009

MONDAY 6:00 PM

Water and Light Office

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

PRESENT: Trustees: Tim Sargent, Ed DeBor, Wally Reeve, Peter Bourne and Dana Wildes

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

GUEST: Dave Yacavone

1) PUBLIC MEETING:

David Yacovone was present as a member of the public, not as a member of the Selectboard. He recently read in the Stowe Reporter a letter asking the Stowe Commissioners to undertake an independent analysis to see if they should sell their electric utility. Dave wondered if MW&L should also consider doing a similar independent analysis. The Trustees assured Mr. Yacavone the Trustees are looking into all options but any solution must be a win-win for all parties involved.

2) CURRENT PRIORITY PROJECTS:

The Board reviewed the status of the current priority projects. On the sale of excess properties, the Chairman suggested that we concentrate on selling one or two parcels such as the Gristmill and Zachwoods. Trustee Wildes feels that focusing on two parcels is fine but we still need an appraisal to give us a baseline value. Trustee Wildes stated we should get appraisals on 2 or 3 parcels and concentrate on them.

3) MANAGEMENT REPORT:

Crews have done more line extensions this month than they have done all year as people are trying to get their undergrounds in before winter. The crews had to set a new pole right next to the new bridge so we can move our lines back. The final position of the pole did not have a lot of options but it was worked out with the Highway Department. The crews are installing Christmas decorations. We made it through last weekend’s high winds with only minor outages.

We now have a total of 5 or 6 net meter customers. Generation for November was down 20% and we lost the boards at both dams during the last high water. VPPSA did get us more credit for our capability audit at Green River.

The #2 SBR will be tested tomorrow. There is a status meeting tomorrow but the contractors are still looking at a 12/20 completion date. There are approximately six water meters remaining to be installed.

The reservoir project is shut down until April or May. All pipes installed to-date have been tested and the road has been ditched and seeded.

Penny has been working on the Belanger dispute (pre-hearing conference). The hearing will be in January. She is also working on 2010 budgets. Health insurance rates went up approximately 10%. She is collecting water usage reports and is dealing with a lot of landlords about the upcoming new metered water/sewer rates.

Craig estimates MW&L’s wheeling rate will be 75% of CVPS/GMP’s calculations. He is trying to get permission to open the B-22 line to prove the new flows but is receiving a lot of flak at that prospect. Craig hopes this will lead to some healthy discussions with CVPS.

The Hearing Office for the Belanger case suggested that MW&L might want to settle because the hearing could go either way. Jim has been unable to approach the developer on Cottage Street, just the contractor, in regards to a 4” line versus 8” line.

4) APPROVE MINUTES OF MEETING HELD NOVEMBER 16, 2009:

On a motion by Trustee Wildes, seconded by Trustee Bourne and unanimously approved, the Board approved the minutes of the November 16, 2009, regular meeting.

5) APPROVE TRUCK LOAN RENEWALS:

On a motion by Trustee Wildes, seconded by Trustee Reeve and unanimously approved, the Board approved renewing loans on Truck #9 and Truck #12 at 2.2% for one year.

6) APPROVE LIEN:

On a motion by Trustee Bourne, seconded by Trustee Wildes and unanimously approved, the Board approved a lien in the amount of $118.51 on the 2672 Garfield Road, Hyde Park, property owned by Joseph King.

After taking him to Small Claims Court and placing a lien on his landlord’s property, Alan Cusson finally paid his old balance. Once the check clears, we will release the lien.

7) DISCUSS HYDRO REPORT AND FUTURE POWER SUPPLY STRATEGIES:

The Board reviewed the power supply cost summary through October 2009. CVPS losses are being factored into the settlement load until June 2010. Increases in purchased power are almost entirely tied to transmission. Therefore investing in our own generation within our own boundaries would give us the best cost-benefit. Trustee DeBor verified that all utilities in the State are looking at their transmission costs doubling. He then asked if transmission costs had been factored into the hydro review, which they have not but need to be. Trustee Debor asked if all utilities pay the same transmission rates per kWh which Craig will track down. Trustee Wildes noted that flat growth with increasing transmission costs will require us to consider filing for a rate increase in early 2010.

There has been renewed interest in the 2004 feasibility study for cogeneration at Copley Hospital. Bonhag Associates has provided a proposal to rerun the analysis with current numbers. The project was originally dropped because the model it was based on in Newport was not working well. A better model has the utilities owning the equipment, not Copley. There would be no stack and minimal emissions. It would also solve the redundancy problem at the hospital. A marketing campaign is being considered to initiate the project concept to the members of the community. Verification of wood supply for the project is a critical step.

8) RATE MITIGATION STRATEGIES:

Craig is developing a list of options to increase electric sales as our lines are only at about 50% capacity. Options include developing a rate for storage hot-water or storage heaters. We have not discussed further work with VEC yet for 2010.

9) OTHER BUSINESS:

The Board discussed goals for 2010, which is still in draft form.

Winnie Moody approached Jim about logging some of MW&L’s land. The Trustees are willing to consider logging proposals. Staff was instructed to verify that all certificates of insurance were legitimate and in full effect. The Board asked if the Forester could give us an estimate of board-feet available and price. The Board also asked if County Forester, Ray Tooland would supervise at no cost to MW&L.

Tell Gregory is building a road from the Darling Road to his house site adjacent to the water storage parcel but our new access road is closer. He would like to be able to access his property from our new road. As our road will probably be gated and is definitely over the aquifer, the Board is hesitant to open it up to the public. Security of our water supply is the biggest concern so the Board is not interested at this time in giving Mr. Gregory access via our road.

The owner of the two empty lots (1/2 acre total) adjacent to the new WWTF entrance has dropped the price to $49,000. Trustee Wildes pointed out that buying space around a project that may expand again in the future was the value and suggested we get the land appraised to see if it is worth anything at all.

VPPSA received $2.3 million in Economic Stimulus Funds of which MW&L can have access to $278,000. If we accept, we must finance a project’s total costs of $556,000 of which MW&L would re-imbursed for ½. The funds are to improve substations, improve efficiency, and move towards a Smart Grid so Craig believes that SCADA and smarter reclosures and relays for some of our substations would qualify.

We have a metering point on East High Street for the Christmas light circuit. In the past, we have not billed this usage and just written it off as line loss. We need to account for the kWh used even if we donate them. Should we begin billing MAAC or just pay for the lights out of the Amy Wade fund? Trustee Wildes suggested paying out of Amy Wade.

Trustee Wildes verified that Craig is going to look into VEC dispatching.

Trustee Wildes mentioned an article about a utility in New Jersey that put small solar panels on all their poles and are generating a lot from them. He wondered if we could do a smaller pilot project to see if we can get a panel to power LED street lights. Jim verified that street lights will be changing to LED.

10) EXECUTIVE SESSION:

Tabled.

11) ADJOURNMENT:

At 8:15 PM, on a motion by Trustee Reeve, seconded by Trustee Wildes and unanimously approved, the Board adjourned the meeting.

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Edward DeBor, Clerk