VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

June 1, 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, and Dana Wildes

Staff: Craig Myotte, Jim Fontaine, Penny Jones

ABSENT: Trustee Bourne

1) PUBLIC MEETING:

No members of the public were present.

2) CURRENT PRIORITY PROJECTS:

Craig updated the Board on the status of the current priority projects.

3) MANAGEMENT REPORT:

Jim discussed the repairs of the 1200 KW unit at Plant 2. A piece has been welded and the unit will be put back together. Hopefully this will fix the problem in lieu of a major rebuild. Jim also provided an update on the water storage project activities. This includes permit to construct, easements, certificate of title, wetlands and archaeological work. Jim reported the cost estimate for the project has come in below the amount authorized by the voters. Jim reported on the pre-bid meeting for Congress Street. Finally, Jim reported the Friends of Zack Woods received grant monies for a kiosk and other improvements for the Zack Woods property.

Penny is working on insurance quotes and contacted VMBB regarding loan for the water reservoir project. Penny also handed out and reviewed draft 1^st quarter financials with the Trustees. All three departments are showing a positive net income. The Trustees asked Penny to prepare a summary of the amount of dollars received by MW&L for providing services to others. Penny reported the PSB approved our rate increase.

Craig reported we have been hired by the Vermont Electric Cooperative for line-people services for the summer and fall of 2009. Craig stated he and Jim reviewed Johnson’s 248 filing materials for an emergency interconnection to MW&L’s system. Craig also looked at the termination provisions of the CVPS Network services Agreement and responded to questions from the Trustees regarding the due diligence information request for the Swanton Peaker project. Craig reported on conversations with several customers regarding outages and a failed electric meter. Finally, Craig stated IBM is going to meet with the electric project economic stimulus group this week.

4) APPROVE MINTUES OF MEETING HELD MAY 18, 2009:

On a motion by Trustee Wildes, seconded by Trustee Sargent and approved by all present, the Board approved the minutes of the May 18, 2009, regular meeting. Trustee DeBor was absent at the May 4^th meeting and abstained from voting.

5) APPROVE LIENS:

On a motion by Trustee DeBor, seconded by Trustee Wildes and approved by all present, the Board authorized a lien on the Wahler property located at 117 and 125 Park Street, Morrisville, in the amount of $2,540.99.

6) UPDATE OF WWTF/WATER METER PROJECT:

The UV was started and tested and worked with minimum flow. The effluent pump start up and process water equipment is being tested the week of May 26. The week of June 1 is scheduled to test the mixer start up, decanter start up and start testing the controls. Keymont is going to extend the schedule three weeks due to control wiring and instrumentation completion delays. MW&L only received one bid for propane RFQ at the WWTF.

Approximately 700 meters installed to date. Still working on scheduling and making arrangements for the last +/-100. Penny reported we will be sending out 4 bills with surcharge penalty for not having water meter installed. Hope to have all water meters installed by the end of June.

7) EAST MOUNTAIN WIND PROJECT DEVELOPMENT AGREEMENT:

VPPSA is requesting MW&L to approve a project development agreement (PDA) for the East Mountain Wind project. The purpose of the PDA is to review the cost estimates of the project. MW&L’s share of the costs will be about $30,000. The Trustees asked Craig to pull together renewable credit information for the project and other total cost information for discussion at the next meeting.

8) DISCUSS RATE MITIGATION STRATEGIES:

Craig stated he would like to see a focus on rate mitigation strategies by the Trustees and staff. Our rate increases have been significant for water and sewer services. We just had our electric rate increase approved. Our customers are concerned about these increases. The Trustees had a general discussion on rate mitigation strategies and agree we need to add this to our goal and project priority list for 2009.

9) OTHER BUSINESS:

Craig reported the Special Meeting Warning was posted for the Patnoe property purchase. The Special Meeting is scheduled for June 22. Craig contacted Mr. Patnoe about the date of the meeting.

The Trustees discussed replacing Keith Thompson who resigned his Trustee position. The Trustees discussed possible candidates.

Craig reported the public hearing held for the Sewer Service Market Area (SSMA) in front of the Selectboard was fairly uneventful. Residents voiced concern over the protection of prime agricultural soils and the sewer rates.

On a motion by Trustee Wildes, seconded by Trustee DeBor and approved by all present, the Board authorized the Manager to approve bids for 2009 Sewer Projects.

10) EXECUTIVE SESSION:

At 7:50 PM, on a motion by Trustee DeBor, seconded by Trustee Wildes and approved by all present, the Board went into Executive Session to discuss contracts.

At 8:17 PM, on a motion by Trustee Bourne, seconded by Trustee Wildes and approved by all present, the Board came out of Executive Session.

On a motion by Trustee DeBor, seconded by Trustee Wildes and approved by all present, the Board approved the terms and conditions of the new proposed one year Agreement with the International Brotherhood of Electrical Workers per the summary provided at the meeting.

11) ADJOURNMENT:

At 8:20 PM, on a motion by Trustee DeBor, seconded by Trustee Wildes and approved by all present, the Board adjourned the meeting.

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Ed DeBor, Clerk