VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

January 21, 2008

                                                                             

MONDAY                                                                                                 6:00 PM

                  Water and Light Office

 

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

 

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

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

                                                        Absent:    Sargent

 

Others in Attendance: Selectboard Mr. Shaun Bryer and Mr. David Yacovone

                                   (arrived at 6:40 PM and left at 7:10 PM)

                             

1)         PUBLIC MEETING:

 

            No members of the public were in attendance at the meeting.

 

2)         OLD BUSINESS:

 

            The water billing issue has been resolved with Copley Country Club. The Chair directed Craig to remove this item from old business.

 

3)         MANAGEMENT REPORT:

 

            Jim reported that warm weather provided plenty of water for generation however ice is impacting the amount of generation that we can produce.

 

            There was a brief discussion on the range of past generation levels. A past year hit 17,000,000 kWhs. The ten-year average is only 9,700,000 kWhs. Staff will investigate the range to try to find an answer.

 

            Penny reports that the non-seasonal rate billing went into effect in January. A problem occurred in the time of date residential billing that only impacted a couple of customers.

 

            Penny reviewed the calculated projected loss of the Manosh Mill closing. The water, sewer and electric usage currently total about $20,000 per year. It could have been much worse if the Mill wasn’t using the 750 kW generator. The loss of the Manosh Mill following the closing of the Genesis facility is a disturbing trend for the community.

 

Craig reported that a tentative settlement agreement has been reached and the parties requested a 60-day delay in the start of the hearing before the FERC judge to allow time for the parties to craft a final settlement agreement.

 

            The saga with CVPS over losses continues. Craig met with DPS staff (Mr. Steven Litkovitz and Mr. Ronald Behrns) to discuss if the DPS was willing to try to broker a settlement rather than spending more legal fees to bring the matter to FERC. Mr. Behrns asked some good questions. The response to the questions make it clear to Craig that CVPS is illegally charging MWL.

 

            Craig reported that he had discussions with several individuals regarding insurance claims against Water and Light. The Trustees discussed the level of a claim to file with our insurance carrier vs. just paying the claim our selves and not filing a claim.

 

4)         APPROVE MINUTES OF MEETING HELD JANUARY 7, 2008:

 

            Staff offered several corrections to the draft minutes. Under 3) staff recommended changing “caused limbo” to “put this matter on hold”.  Under 6) “the Greaves farm, Gregory property and other” will be eliminated. Finally, under 6) the motion was made by Trustee Thompson, not Trustee Sargent. On a motion by Trustee Wildes, seconded by Trustee Thompson and unanimously approved, the Board approved the minutes of the meeting held January 7, 2008, as amended.

           

5)         APPROVE 2008 CAPITAL AND EXPENSE BUDGETS:

 

            Penny reviewed the budget materials with the Trustees. The sewer budget assumes a 25% rate increase. The water budget assumes a 12% rate increase. The electric budget shows a rate increase may be needed but staff would like to monitor the results through the first quarter before making a recommendation to the Trustees.

 

            The capital budget request will not require a new bond request to the Village voters. The 2008 capital budget is covered by the bonds approved by the voters in 2007.

 

            The original budgets assumed a rate increase would go into effect on February 1. At this time the rate increase is proposed for March 1 that will have a slight impact on the budgets recommended.

 

            Trustee Wildes asked the staff to look into our power supply situation and report at a future meeting. In particular, Trustee Wildes was concerned about MWL moving from being long in resources to being short.

 

            On a motion by Trustee DeBor, seconded by Trustee Wildes and unanimously approved, the Board approved the 2008 water budget and rate increase recommended by staff.

 

            On a motion by Trustee Wildes, seconded by Trustee Thompson and unanimously approved, the Board approved the 2008 sewer budget and rate increase recommended by staff.

           

            On a motion by Trustee DeBor, seconded by Trustee Wildes and unanimously approved, the Board approved the 2008 electric budget recommended by staff.

 

            On a motion by Trustee Thompson, seconded by Trustee Wildes and unanimously approved, the Board approved the 2008 capital budgets for water, sewer and electric recommended by staff.

 

6)         approve water line extension policy:

 

            Staff recommended the adoption of a Water Line Extension Policy that mirrors the electric and wastewater line extension policies. Staff responded to several questions. On a motion by Trustee DeBor, seconded by Trustee Wildes and unanimously approved, the Board approved the Water Line Extension Policy.

 

7)         Approve liens on Darling Road (White) and Cole Hill Road (Adams) propertie:

 

On a motion by Trustee DeBor, seconded by Trustee Thompson and unanimously approved, the Board approved the liens on Darling Road (White) and Cole Hill Road (Adams) properties.

 

8)         Discuss Village Annual Meeting Timeline and Articles:

 

The Trustees discussed individuals to dedicate the 2007 Annual Village Report to. The Trustees agreed on dedicating the report to Burt Patton and Adrian West. Mr. Burton was a Water and Light Commissioner from 1969 to 1974. Mr. West was a Village Trustee from 1973 to 1978.

 

Craig stated that he would have a draft of the Manager’s Report and the Trustee’s Report for the Village Annual report ready for discussion at the February 4th meeting.

 

The Trustee picture was deferred until the February 4th meeting due to Trustee Sargent’s absence at the meeting.

           

9)         Review Status Report of WWTF Project from FA&A:

           

            Craig reported that the Act 250 filing was submitted today (January 21, 2007). Several minor corrections were made to the materials provided in the packets.

 

            Craig informed the Trustees that staff are meeting with the Development Review Board on January 24th.

           

10)       OTHER BUSINESS:

 

            Craig reported that he has received a report titled “Vermont Utilities Technical and Cost Issues of Generation Alternatives”. This is Phase 1 of a two-phase report prepared by Concentric Energy Advisors out of Massachusetts. It appears that the report has significant and valuable data. Craig will review the report and provide a summary at the next meeting.

 

            Craig reported that he had participated in a meeting with a grass roots group formed to discuss Lamoille County energy issues. Some good issues were brought up at the meeting regarding Demand Side Management, distributed generation and green power pricing.

 

            The Trustees discuss a possible generator purchase to add system support and participate in the ISO-NE demand response program. The Chairman asked Craig to add this item under old business for the next meeting.

 

            The Trustees had a brief discussion about the upcoming joint meeting with the Selectboard to discuss the results of a legal opinion they received. A copy of the legal opinion was provided to the Trustees and Craig. It is clear that the Town has responsibility for Town issues and the Village has responsibility for Village issues. Although the Trustees are disappointed with the action taken by the Town regarding the approval of the Town Plan, it has not deterred their interest in continuing to collaborate with the Selectboard on common issues in 2008 and beyond.

 

            At 6:40 PM, Selectboard members Mr. Shaun Bryer and Mr. David Yacovone arrived. Mr. Bryer discussed the results of the legal opinion they received regarding the entities that need to approve the Town Plan. It is clear that the Town is the only legislative body that is authorized to adopt the Town Plan. The Selectboard are very interested in continuing to receive input from the Trustees and other organizations that the Selectboard see as being important and critical elements of the community.

 

            The Trustees and Selectboard members also had a brief discussion on zoning, the Morristown Planning Commission and the support for the economic growth and vitality of the community. Finally, there a brief discussion projects in front of the Village and coordination of paving and paving responsibilities.

 

            The Trustees reminded staff that MWL needs to put a press release out for the Amy Wade fund.

 

            Chairman Bourne stated that the CEO evaluation is due. He asked Craig to provide a summary of accomplishments for consideration by the Trustees at the next meeting.

 

            The Trustees discussed news articles from the News & Citizen.

 

            Chairman Bourne asked to revive the energy efficiency and green resource investment discussion using Green River Reservoir funds.

 

            Craig reminded the Trustees of the Town plan public hearing on 1/22/08.

 

            Craig provided the trustees with a summary of staff’s discussion with the RDA regarding the WWTF grant amount. Bottom line is that they cannot provide a higher grant level. There is hope that the loan rate may come in lower than expected.

 

            The Trustees discussed the draft KRIs and 2008 goals.

 

11)       EXECUTIVE SESSION:

 

            No items were discussed requiring executive session.

 

12)       ADJOURNMENT:

 

            At 8:04 PM, on a motion by Trustee Wildes, seconded by Trustee DeBor and unanimously approved, the Board adjourned the meeting.

 

 

                                                                        ___________________________________

Dana Wildes, Clerk