VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

February 19, 2008

MONDAY 6:00 PM

Water and Light Office

The meeting duly noticed and warned was called to order at 6:01 PM.

PRESENT:

Trustees: Peter Bourne, Tim Sargent, Keith Thompson (Dana Wildes by conference call)

Staff: Craig Myotte, Jim Fontaine, Linda Osgood

Others: Mr. Kenneth Williams, Ms. Mary Ann Wilson

ABSENT: Trustee DeBor

1) PUBLIC MEETING:

Mr. Kenneth Williams of Paul Davis Restoration expressed interest in the Grist Mill and Creamery Building and was wondering what the Board had planned for those structures. The Trustees informed Mr. Williams that they have listened to a number of proposals from individuals regarding the buildings but the Trustees have not reached consensus yet. The Trustees stated that an article is being considered for the 2008 Village annual meeting in April to get guidance from the voters. The Trustees suggested Mr. Williams watch the local paper to see what guidance the Village voters provide.

2) OLD BUSINESS:

Deferred until Trustee Wildes could be reached by phone (see below).

3) MANGEMENT REPORT:

The Verizon/Fairpoint (V/FP) deal was recently approved by Vermont’s DPS and Maine’s equivalent. They are still waiting for approval from New Hampshire. V/FP has worked out interim operating procedures until Fairpoint fully takes over. The Trustee asked if MW&L would see any changes. Jim replied we will see changes in how line extensions are handled, updated operating procedures, and a workable policy about dual wood (old poles next to new poles waiting for telephone to be transferred). MW&L has approximately 300 dual woods alone.

Jim reported that Richard Sargent has found a subsequent plot plan and Quitclaim deed (not filed) that clears up property lines at WWTF. The current owner agrees with the unfiled Quitclaim deed.

Murphy Realty will allow the Village to take over ownership of the sewer line to Price Chopper. They will deed it over which will allow CCS to attached for their proposed subdivision.

Hydro generation is good. 680,000 kWh to-date in February with a goal of 1 million for the month. The paperwork for the permits to replace the headgates at Plant #2 has been started.

The Board asked for clarification of what switches we were proposing to open to help solve the energy loss dispute. In a nut shell, Craig stated the ideal would be to open the switches isolating us from Hardwick and Stowe. This would put the responsibility for serving Stowe’s load and the associated losses back onto GMP rather than MWL. Craig is optimistic the matter can be resolved with GMP in 2008.

Trustee Sargent asked to be brought up to speed about the potential lawsuit by Jim Bradley. While cutting trees on MW&L property we accidently cut trees that were on Bradley’s property. This dispute is coming to a head again because it has already dragged out two years and the statute of limitations is three years. Mr. Bradley’s lawyer (Mr. James Mahoney) feels he is getting the run-around. The Chairman instructed Craig to write Massamont, with cc to Bradley’s lawyer, stating how this needs to be settled so either accept the claim or deny it.

The auditors were here last week and had high praise for Penny’s efforts. The Board’s packets included year-end financials showing net incomes in all three departments.

5) DISCUSS VILLAGE ANNUAL MEETING TIMELINE AND ARTICLES:

This item was moved up on the agenda timeline as Mary Ann Wilson arrived. She reviewed the general government budget and expenses with the Board. On a motion by Trustee Sargent, seconded by Trustee Thompson and unanimously approved, the Board accepted the General Government Budget and Expenses as reported by Mary Ann Wilson.

Trustee Wildes joined the meeting by conference call. Trustee Sargent had a meeting with Craig and Jim to discuss options to make MW&L’s portfolio greener. The task force discussed hydro, wind, wood, bio-diesel, solar, fuel cells, methane and gasifier technology. In addition, the task force discussed energy efficiency options. The recommendation from the task force for 2008 is to focus on improvements to our existing hydro. Trustee Wildes feels that our own hydro is the best investment and will be worth it. The Chairman asked how much PSB approval was needed before we invested in our own hydro and in outside projects. Craig replied no approval would be needed as long as it doesn’t impact our rates. Trustee Wildes feels that our hydro can be more efficient and can run more of the time. He also stated that at our next rate hearing we need to remind the PSB that we’ve earmarked a considerable amount of the Green River funds to green projects. Craig verified that our own hydro was our primary focus at this time. The Trustees agreed it was. Staff will continue with the 2008 goal to issue an RFP and select a consultant to evaluate MWL’s hydro facilities.

4) APPROVE MINUTES OF MEETING HELD FEBRUARY 4, 2008:

On a motion by Trustee Thompson, seconded by Trustee Sargent and unanimously approved, the Board approved the minutes of the February 4, 2008, meeting.

6) REVIEW STATUS REPORT OF WWTF PROJECT FROM FA&A:

FA&A has filed a letter with the District Environmental Commission (DEC) with supplemental information. There is a meeting tomorrow with Mr. Stanek to prepare for the March 5^th meeting. Mr Stanak stated the DEC wants to focus on the impact of the WWTF on prime agricultural land. Craig asked if we would want to open up the public process on the TSSA and SSMA by making a presentation at two upcoming meetings on the Town Plan. The Trustees support asking for feedback from the public on the Sewer Service Market Area.

7) PROPERTY MANAGEMENT:

Craig wanted the Board to prepare their thoughts for the upcoming annual Village Meeting. We are working on an article that states any proceeds the Village receives from leasing/renting/selling the Grist Mill and Creamery buildings after transferring from the electric department should go to the Amy Wade Fund.

8) OTHER BUSINESS:

Last year the Village approved MW&L’s involvement in Project 10 (Swanton gas plant) at a level not to exceed 9% but no actual dollar figure given not to exceed. Since then, the cost of the project has increased $3 million. The Trustees asked Craig to provide more information at the next meeting

In the past, the Board has discussed a cut off figure for what we will pay for claims before going through our insurance company for damages. The Chairman stated it should be $2000 as long as there is no chance for litigation. Trustee Wildes suggested a legal release be drafted for settlements. The Chairman added a minimum of two estimates are needed.

Dave Mullett (VPPSA General Counsel) has been contacted by CVPS to explore a legislative change to aid them in purchasing Readsboro Electric. Currently, to sell a municipality it must be done at an annual meeting. CVPS would like to amend legislation to include a special meeting. The Board would like to stick to annual meetings.

The settlement agreement of the Lamoille County Project (115 KV line) affects other VPPSA members. A couple of VPPSA members are unwilling to pay anything towards a project that only affects Lamoille County. This will be discussed further at the next Board meeting.

Trustee Wildes asked if we had gotten a response yet from VPPSA as to why we are short on purchased power contracts? Not yet.

Craig handed out some sample Key Results Indicator charts for energy and hydro production. Craig expects to have all of the KRI charts in place by the end of the first quarter.

Craig recently attended a presentation from NUVAC which uses a different type of bacteria to reduce phosphorus in sludge from the WWTF. Earth Tech is reviewing the presentation and we are waiting for feedback from a pilot project in St. Albans. Trustee Wildes suggested getting FA&A’s input also. If this does work to reduce the phosphorus, it will increase our capacity.

Craig asked the Board if they wanted a formal manual on policies and procedures. Trustee Wildes stated they are not looking for a comprehensive employee manual just general guidelines.

Craig would like to move the IBEW contract to match calendar years instead of going from June 1^st to May 31^st of a give year. IBEW is fairly open to the idea but Craig needs to think out the ramification vs benefits before continuing.

Trustee Wildes stated that at the annual Village Meeting, any Trustee wishing to speak who did not live in the Village had to get special permission to speak. We now have three Trustees living outside the Village. Craig will look into the matter.

11) EXECUTIVE SESSION:

Canceled. Topic deferred until next meeting.

12) ADJOURNMENT:

At 7:45 PM, on a motion by Trustee Sargent, seconded by Trustee Thompson and unanimously approved, the Board adjourned the meeting.

___________________________________

Tim Sargent, Acting Clerk