VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

January 22, 2007

MONDAY 6:00 PM

Water and Light Office

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

MEMBERS PRESENT: Chair: Jensvold

Trustees: Wildes, Sargent, Bourne, DeBor

Staff: Craig Myotte, Jim Fontaine

Guest: Joe Duncan, Don Phillips (FA&A)

1) PUBLIC MEETING

No members of the public were in attendance.

2) OLD BUSINESS –

Response to Issues raised in letter from ANR – Jim had a meeting with ANR but Trustee Wildes expressed an interest in delaying this discussion until later in the meeting after he will arrive. Item tabled.

Copley Golf Course – Craig reported that MWLD has mailed out a letter and the Memorandum Of Understanding to Tad Lamell. Craig has not had a response on it yet but will follow up with a phone call to see if letter has been received and get their comments.

Forester Services – Craig reported we finally have a report back from Ray Toolan. He dropped it off this morning so Craig has not had time to really look at the details yet. Mr. Toolan did go through a couple of things this morning with Craig and Steve Cutler. Chairman Jensvold would like the logging issue as an Agenda Item for the next meeting. Craig will include Mr. Toolan’s Executive Summary in the Board’s next packet so that they can review the information for discussion at the next meeting.

Hazen Union is interested in purchasing six hemlocks for a bridge building project. Trustee Bourne asked if we wanted to go ahead and sell the six hemlocks instead of waiting for the next meeting and did we want to sell them or donate them. Craig suggested splitting the value with Hazen Union and selling the trees for half price. The Board agreed.

3) MANAGEMENT REPORT

Operations Report – Jim answered questions the Trustees had and briefly explained the phone problems that we had with our first significant outage. Hopefully we have corrected the phone situation (forwarding our emergency number to Burlington Electric).

He also explained that the voltage problem we were having on the Upper Elmore Mountain Road has been corrected to the point where voltage is acceptable. We are in the process of building a 2-3 pole extension that will take a fair amount of load off Substation #14 which can only help the situation.

Trustee Bourne asked if we ever determined where all the debris was coming from that kept plugging the Route 100 pump station. Jim replied that the debris was coming from everywhere and consisted mostly of kitchen wipes. He has ordered a grinder for that station similar to the monster auger at the plant

Financial Reports – Craig stated that year ending figures should be available at the next regular meeting. Craig gave the Board some rough figures on anticipated loss of revenue from the closing of Genesis Healthcare. In addition, Craig reported that the Accounts Payable balance is down significantly from what it was last year at this time and energy sales are down for 2006 from 2005, which is not unexpected as both November and December of 2006 were extremely mild.

Business Ventures - LEDC set up a meeting with Burlington Telecom that Craig and Trustee Wildes attended. They gave a nice sales pitch about running fiber from Burlington through Johnson to Morrisville. They put up all the money for the infrastructure and MWLD share the profits of connecting up our customers. They are looking for a commitment from us for pole space. They offer voice, internet and cable services. Craig will collect more information on existing rates for services.

Dave Halquest of VEC stopped by to see Craig to discuss a contract VEC had signed to create a fiber loop from New York to New Hampshire through Johnson. They are looking for assistance from MWLD to help with providing pole space to help complete the loop.

Trustee Bourne attended a meeting with Craig with the Energy Efficiency Utility at their office in Burlington and talked to them about the concept of setting up a loan fund for energy efficiency investments for our ratepayers to use. Trustee Bourne recommended that he and Craig meet with Ken Gibbons of the Union Bank to find out, from a loan perspective, what makes sense to do and what doesn’t. Trustee Bourne and Craig will meet with Mr. Gibbons to get his thoughts.

Miscellaneous Projects - Downtown Designation seems to have been wrapped up.

Craig informed the Trustees that we reached an agreement with Stowe regarding the legal costs associated with the FERC filing for allocation of costs of the Lamoille County project. Ed French is in the process of drafting up a Memorandum of Understanding but Craig has not seen it yet.

As Trustee Wildes had arrived at this time, the Board returned to Old Business and our response to issues raised by ANR. Jim updated the Trustees on a meeting he had with the State to review our maintenance plan. The State rejected the initial preventative maintenance plan we proposed as worked out with EarthTech. It quickly became clear that the State was not going to tolerate any violations at all that had to do with equipment failure. Jim met with EarthTech and we are going to make a good-faith effort, short of pulling the aerators, to go through all the equipment and come up with a plan that is reasonable. The State has yet to respond to the emergency power situation.

4) APPROVE MINUTES OF MEETING HELD JANUARY 2, 2007

Trustee Wildes made a motion to approve the minutes of January 2, 2007, seconded by Trustee Sargent, and unanimously approved by all present.

5) APPROVE MINUTES OF SPECIAL MEETING HELD NOVEMBER 6, 2006

Trustee Wildes made a motion to approve the minutes of November 6, 2006, seconded by Trustee Bourne, and unanimously approved by all present.

6) DISCUSS PRIVATE OWNED SEWER LINES

Discussion of this agenda item was deferred to the next meeting

7) DISCUSS DRAFT 2007 GOALS FOR ELECTRIC, WATER AND SEWER.

Discussion of this agenda item was deferred to the next meeting

8) Discuss meeting held Jan.10, 2007 with the Selectboard

Discussion of this agenda item was deferred to the next meeting

9) Discuss final Wastewater Treatment Facility Evaluation Report from F&A

Joe Duncan, Don Phillips from FA&A answered questions the Trustees had regarding the Preliminary Engineering Report for the Wastewater Treatment Facilities. In addition, they provided a proposal to the Trustees for bonding assistance and discussed the scope of work and schedule.

10) Discuss Gristmill/Creamery Buildings.

Discussion of this agenda item was deferred to the next meeting

11) OTHER BUSINESS

Trustee Bourne made a motion to look into the cost of a feasibility study to convert the Plant #1 generator to bio-diesel to create a peaking unit. The motion was seconded by Trustee Sargent, and unanimously approved by all present.

The Trustees asked Craig to respond to all Amy Wade fund request in writing stating that we received their request and it will be considered by the Trustees in May.

The Trustees conceptually agreed to the Manosh sewer application request for 44 units at Jersey Height. The approval will be passed on to Manosh for payment of the reserve allocation

At 8:35 pm, Trustee Bourne made a motion to adjourn, seconded by Trustee Wildes, and the meeting was adjourned.

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Peter Bourne, Clerk