VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

July 5, 2006

WEDNESDAY 6:00 PM

Water and Light Office

The meeting duly noticed and warned was called to order at 6:03PM.

MEMBERS PRESENT: Chair: Jensvold

Trustees: Wildes, Sargent, Bourne, DeBor

Staff: Jim Fontaine, Allan Arbuckle, Craig Myotte

GUESTS PRESENT: James Gibbons of VPPSA

1) PUBLIC HEARING –nothing

2) OLD BUSINESS –

Compliance letter from ANR –An update will be provided under item #10 Discussion of Sewer Services.

Gristmill & Creamery buildings –Craig didn’t meet with Bob Ross, he only had telephone conversations to keep in contact, he is going to press a little hard on the subject this week.

Power Line Carrier –Craig has reviewed the packet from Uptown Services and he is going to look into it more.

Forester Services – The Trustees asked that this item be on hold until a new manager is hired.

3) MANAGEMENT REPORT

Operations – Jim informed the Trustees that Oswegatchie LLC, is interested in the Green River facility. They have toured the plant and would like to arrange to get inside the units. Jim wanted feed back from the Trustees. The Trustees would like Jim to gather more information to see what there interest is.

Forcier & Aldrich is about 60% completion of the anaylsis of the Wastewater Treatment plant. They will be present at the combined site visit with the Trustees and Selectboard on July17th at 4:45 PM at the WWTF.

Financial – Allan informed the Trustees of the next steps in dealing with our rate structure to eliminate summer and winter rates. He has instructed VPPSA staff to prepare the necessary filings and supporting data so that this will be completed by the end of the current fiscal year.

The Public Service Board has approved the rate case, the new rates will go in effect on July 1^st and will appear on the next billing. August will be the first full month of billing at the new rates.

Customer Service – Craig had reviewed the VPPSA’s calculations. He recommended filing a special contract with CREW with net effect to MWL being minimal.

Craig received a cost estimate for the final Fire District work and passed the information on to Sherry Anderson of Pine wood estates. He met with Sherry to discuss the contract and she informed him of correspondence she had received from the State. They would like MW&L to help with the correspondence from the State since MW&L has taken over the system. Craig and Jim will help in this matter.

The 115kV Lamoille County Project, VELCO released the detailed cost estimates for this project and it has doubled from $20M to $40M. These cost estimates are a condition of the Certificate of Public Good. There will be significant discussion from the Lamoille County distribution companies that are participating in the project over the next couple of weeks. Craig will keep the Trustees updated.

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4) APPROVE MINUTES OF MEETING HELD June 19, 2006

Trustee Wildes made a motion to accept the minutes with one amendment to change the numbering, seconded by Trustee DeBor and all present unanimously approved the amended minutes.

5) APPROVE BUDGET INCREASE FOR PDA PHASE OF PROJECT 10

Trustee Sargent made a motion to approve the budget increase for PDA Phase of Project 10, seconded by Trustee Wildes, and unanimously approved by all present.

6) VPPSA PROJECT 10 PRESENTATION BY JAMES GIBBONS OF VPPSA

James Gibbons of VPPSA gave a presentation on Project 10. After the presentation he answered any questions the Trustees had.

7) UPDATE ON MANOSH-OWNED SEWER LINES PROPSAL

Craig has had a couple of discussions with Gary Nolan getting the direction straightened out in what we would like to do to bring this to closure. Gary is at that they would accept this line extension policy as a way to structure this deal. Craig will draft something and meet with Howard at his house.

Craig informed the Trustees that the overrun cost of the Route 100 project was $88,000 not $110,000. Craig will offered to split the cost of $88,000.

8) DISCUSS TRANSMISSION LINE EASEMENTS

This item will be discussed in executive session.

9) DISCUSS PRESSURE ZONE ISSUE

The Trustees discussed the pressure zone issue. Trustee Wildes and Jim Fontaine reported on the meeting they attending on this matter. There is grant monies available to help fund this problem. Trustee Wildes suggested we start the paperwork on grants or loans for this project. The permit expires in 2008 and will need to be dealt with either then or before. A list of priorities, values on them, for a 20 year term, bring it to the village voters, and go from there. The 20 year Master plan needs to be updated with values and brought back to the Trustees.

10) DISCUSS SEWER SERVICES

Craig and Jim met with Earth Tech to discuss reducing the contract price. Earth Tech offered to reduce the first year cost impact by $20,000 by providing a reduction of $5,000 and spreading $15,000 over the remaining 4 year of the contract without interest. Craig and Jim asked them to prepare a contract and be prepared to provide services in July.

11) OTHER BUSINESS

A discussion was had on the Green River Money Investment Options. Keep this item on the agenda. Craig will look into the suggestions the Trustees made.

Trustee Wildes asked about attending the NEPPA Conference in August 2006. The Board will support him on going.

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12) DISCUSS PERSONNEL ISSUES (Executive Session)

At 7:51 pm Trustee Bourne made a motion to go into executive session for land purcheses, seconded by Trustee DeBor and unanimously approved by all the Trustees went into executive session.

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Peter Bourne, Clerk