VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

June 16, 2008

MONDAY 6:00 PM

Water and Light Office

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

PRESENT:

Trustees: Dana Wildes, Tim Sargent, Ed DeBor, Peter Bourne, Keith Thompson

Staff: Craig Myotte, Jim Fontaine, Linda Osgood

Guests: Todd & Tammy Carter

1) PUBLIC MEETING:

Todd and Tammy Carter currently own a mobile home on Elmore Street and have a potential buyer for the property. However, there is a condition on the title that states only one sewer connection would be allowed for this parcel, even though it is big enough for two parcels. As the potential new owners plan on subdividing the lot, they would like to have a title without that condition. Sharon Green, attorney for the Carters, has sent a copy of her title search with her recommendation, which included a Quit Claim Deed eliminating that condition. The Trustees support the release of the deed covenant. Craig suggested a quick review by counsel and if counsel was okay, then the Quit Claim Deed could be circulated for the Trustees to sign in time to meet the closing deadline tomorrow.

2) OLD BUSINESS – ENERGY EFFICIENCY AND GREEN RESOURCE INVESTMENT:

MW&L received the Cloutier report and Craig found it a little short of his expectations. Cloutier has offered to rewrite the report. Craig also spoke with Bill Clewes. He suggested creating a business unit for generation as a stand-alone entity, which Craig believes has a lot of merit.

3) MANAGEMENT REPORT:

Trustee Bourne commented that on the recent paving job of Elmore Street and Park Street that although the manholes and shut off valves were raised, many didn’t seem to be raised enough. Jim replied that Pike Industries was supposed to put down 2” of pavement but there was much more than 2” in many places. He also noted that MW&L had 2-days advance notice of the job. The Highway Department had promised a longer notice time but Pike Industries contacted them 2-days in advance and stated they were doing the job then. Trustee Bourne also noted that the manhole on Union Street seemed to be in pretty rough shape. Jim replied that staff was aware of it.

Trustee Bourne noted that hydro generation was up. Jim stated it has been a good year so far with no breakdowns, lots of water, and staff was making extra efforts to keep the racks clear.

Trustee Sargent asked if there was an estimate for when Fairpoint Communications would be removing the extra line of poles from Portland Street. Jim replied approximately November of this year.

Craig informed the Trustees that he would be meeting with the Hyde Park Trustees on June 18 to discuss services with them. Their Business Manager, Rosie, is leaving this summer and the Hyde Park Trustees want to know what options are available to them for covering the work Rosie did.

Trustee DeBor asked what the Gregory appraisal finally came in at. Craig stated $670,000. Trustee DeBor wanted it on the record that this should more than satisfy Brad’s concerns and that this should more than satisfy MW&L’s response to his concerns.

4) APPROVE MINUTES OF MEETINGS HELD JUNE 2, 2008:

On a motion by Trustee DeBor, seconded by Trustee Sargent and with Trustee Bourne and Thompson abstaining, the Board approved the minutes of the June 2, 2008, regular meeting.

5) APPROVE ADDITIONAL AMY WADE FUNDING OF PROJECTS FOR 2008 WITH COPLEY GOLF TOURNAMENT FUNDS:

The Chairman moved that the $568 proceed from the Copley Golf Tournament be placed in the Amy Wade fund until next year’s awards. Trustee Bourne seconded the motion for discussion purposes. He proposed the policy be flexible to allow the CCC funds be used, if urgently needed. The Board approved the motion unanimously. Craig will modify the actual Amy Wade Fund policy to reflect this motion. We did receive thank-you notes from MACC and Marci Young.

6) APPROVE GENERAL LEGAL SERVICES AGREEMENT WITH STEVEN’S LAW OFFICE FOR 2008:

Craig recommended that the Trustees approve hiring the Steven’s Law Office replied for general legal issues. MW&L is being hit with a lot of little issues and Craig would like a sounding board for the small items, such as a pole accident with a stolen car that damaged a utility pole. We need a replacement for Dave Mullett’s services. The Chairman wondered if we want a “no litigation” clause in the agreement. The Trustees asked Craig to discuss the billing rate proposed further with Mr. Brice. They would like the initial rate to be reduced by 25% rather than 12.5%.

On a motion by Trustee DeBor, seconded by Trustee Bourne and unanimously approved, the Board approved the General Legal Services Agreement with Steven’s Law Office for 2008 ONCE A RATE WAS SECURED.

7) UPDATE OF WWTF PROJECT:

The additional $1 million grant from RDA has finally been officially confirmed and a press release has been issued. MW&L received a letter from Congressman Welch congratulating us. The Board must sign a confirmation acknowledging receipt of the additional grant. Craig will release the letter from Welch along with a picture of Dana signing the agreement.

Ti-Sales has a new meter that is more sophisticated and does not require a radio transmitter. It will allow a vehicle to drive down a road and collect the readings remotely. The new meter reading has the capability to read both the new meter and the less sophisticated one. The Board asked if there had been any analysis of Ti-Sales bid. FA&A originally believed the new meters would be a wash in costs but it’s now 10% higher. Ti-Sales only added wire to the outside of the buildings ($4 each). They are battery operated with a 10-year life span. MW&L estimated touchpads at $550,000. Ti-Sales is proposing a radio-read system for $550,000. They state that installing smart meter would require a change order (Increase) of $59,450. Trustee DeBor asked if staff was recommending the better meters. Jim stated that it would definitely be worth it in some places but not all.

On a motion by Trustee Thompson, seconded by Trustee Bourne and unanimously approved, the Board approved expending an extra $59,450 to upgrade the proposed water meter devices to a “smart meter”.

On a motion by Trustee DeBor, seconded by Trustee Thompson and unanimously approved, the Board accepted the $4,825,000 loan from RDA and the $2,975,000 grant from RDA.

As an addendum, Trustee DeBor stated that it is their understanding as Trustees that FA&A has developed a plant that can process 550,000 gpd. That has not changed.

The Chairman asked what was next. Issuance of awards is scheduled for the 25^th. Demolition will begin today. Bedell’s was scheduled for today, also, but no one could find him.

9) OTHER BUSINESS:

MW&L accepted Alan Cusson’s proposal for a repayment plan but we will not release the lien until paid in full.

The Chairman reminded the Board that they recently discussed that the Planning Commission was going to accelerate whatever we needed for our Act 250 permit. He attended last night’s Planning meeting. Their minutes reflect “verbage cannot change until November…”. Craig stated that they developed a list of task forces and he tried kicking it off with Bill Rossmassler who has indicated they are out of money and cannot do anything until July when their new budget begins. Craig stated that Bill Henchey offered that we should focus on prime agricultural soils issues.

We received a $180,000 appraisal for the Bugbee Springs property from Tim Sullivan. The Chairman questioned if we wanted the same person that did the Gregory appraisal do an appraisal on Bugbee Springs. Trustee Thompson replied yes. The Chairman instructed Craig to engage a second appraiser because $180,000 seems low for 90+ acres.

8) DISCUSS FUTURE POWER SUPPLY OPTIONS:

Scott Corse from VPPSA was in attendance to make a presentation to the Board about the benefits of joining the proposed 45 MW Ludlow woodfire plant. The Renewable Energy Credits (REC’s) were discussed. Trustee DeBor asked who the developer was. Steve Eisenberg is the principal and Mr. Corse will get his background for the Board but did know that he has been involved in power plant development. Mr. Corse also discussed the SPEED requirements and how the woodchip project would meet those requirements. Mr. Corse indicated that VPPSA needs an expression of interest from Morrisville in the next few months.

9) OTHER BUSINESS (continued):

The Board reviewed power supply costs and noted they were just barely above budget.

In regards to the proposed new water reservoir, Jim asked if we want to go for an RFQ (Request or Qualifications) or RFP (Request for Proposals) for the design and construction of the reservoir. After discussing the pros and cons of each method, it was decided to proceed with issuing an RFP.

Jim received a call from a customer who recently installed a heat-pump heater because EEU was not interested in talking with him. Is MW&L interested in pushing heat-pump water heaters as opposed to electric water pump heater? Trustee DeBor wants the EEU as an Agenda item. Have Senator Bartlett come in so we can tell her we have money to invest in energy efficiency but not through the EEU. The Chairman added that it wouldn’t require a staff of 300+ with a subcontractor in New Jersey, either.

Eileen Toomey has left Earth Tech’s employment. Earth Tech will be advertising the position.

Bradley has filed a lawsuit against the Village of Morrisville (VoM), not Morrisville Water & Light (MW&L). Our insurance carrier says they do not insure VoM, just MW&L. Trustee DeBor informed Craig to notify Mr. Mahoney that he is suing the wrong entity and he needs to refile.

12) ADJOURNMENT:

At 8:24 PM, on a motion by Trustee Bourne, seconded by Trustee Sargent and unanimously approved, the Board adjourned the meeting.

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Tim Sargent, Clerk