VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

June 22, 2009

MONDAY 6:15 PM

Water and Light Office

The meeting duly noticed and warned was called to order at 6:15 PM.

PRESENT:

Trustees: Tim Sargent, Peter Bourne, and Edward DeBor

Staff: Craig Myotte (via speaker phone), Jim Fontaine and Linda Osgood

ABSENT: Trustee Wildes, Penny Jones

1) PUBLIC MEETING:

No members of the public were present.

2) CURRENT PRIORITY PROJECTS:

The Board reviewed the status of the current priority projects.

3) MANAGEMENT REPORT:

We have crews working for VEC in Grand Isle and crews working for WEC.

The Schultz Group conducted vibration tests on the 1200 kw unit at Plant #2. They recommend a complete tear-down of the unit as the problem may be in the turbine itself, not the generator. This unit will probably be down for the rest of the year.

Bid requests for the reservoir project will begin running in tomorrow’s papers after receiving permission from the State to advertise. Brice has secured a new easement from Covetta in exchange for an existing easement.

Marking of pavement on Congress Street, Harrison Avenue, George Street, Hutchins Street began today.

Repairs to the transformer in Sub #5 have been completed. We still have a failed transformer in Sub #4 that is being fed out of Sub #2. We believe that with a little reconfiguration and changing of voltages that we can combine these two subs into one.

The Board questioned why we were considering staying with Massamont Insurance after the very poor service from them. Staff believes our local agent may have been the weak link.

The Hyde Park Trustees established a task force to explore connecting Hyde Park to Morrisville’s WWTF. Craig recommends we pay for the FA&A study in order to facilitate further discussion. If Hyde Park decides not to connect, they will reimburse MW&L for that study. The Board agreed.

There was another meeting about the local municipals’ attempt to purchase a sewer vactor truck. Even though we have already opted out of this purchase, the other utilities involved really want us to commit. On functional consolidation, Johnson has a new bucket truck and may be interesting in us renting or purchasing it. They are still interested in sharing sewer plant services. Also, years ago, Johnson received a grant to build a sludge compost system that they do not use. This may be another avenue of reducing our sludge disposal fees.

Craig had a good meeting with Dan Lindley (Town) and Carol Ferrante (Copley Hospital) on an emergency plan for the hospital.

4) APPROVE MINTUES OF MEETING HELD JUNE 1, 2009:

On a motion by Trustee DeBor, seconded by Chairman Sargent and approved by all present, the Board approved the minutes of the June 1, 2009, regular meeting. Trustee Bourne abstained.

5) APPROVE LIENS:

On a motion by Trustee Bourne, seconded by Trustee DeBor and approved by all present, the Board approved the lien on 110 Portland Street in the amount of $164.55 for water and sewer services.

Trustee Bourne asked that a future agenda include the list of properties that we have liens on and can send to tax sale to begin the process of cleaning up the thousands of dollars of liens we have on various properties.

6) UPDATE OF WWTF/WATER METER PROJECT:

Aquarobics will start testing the aeration system, mixers, decanters, and blowers tomorrow. The electricians are setting up the computers. If all tests go well with river water, we will begin cutting over on July 14^th. Gravel Construction has the road at final grade and the slope to the control building is almost complete.

Approximately 760 water meters have been installed to-date. One plumber is now out on workers’ comp leaving only one plumber to install the remaining meters.

7) EAST MOUNTAIN WIND PROJECT DEVELOPMENT AGREEMENT:

To support signing this agreement, Craig updated the Board on SPEED requirements. To justify investing in our own hydro three basic questions must be answered: 1) Can it be completed by 2013; 2) Does it meet our SPEED requirements, and; 3) Are there any FERC/NERC restrictions. MW&L needs 3200 mwhs to meet SPEED and we would be participating in East Mountain for 12%. The Board feels that $250,000 is a little steep for due-diligence but the report seems much more complete than Project 10.

Trustee DeBor wants Craig to verify why VPPSA still shows MW&L’s demand forecast growing when our population is decreasing.

Trustee Bourne would like to see the long-awaited hydro assessment report before committing any more, which Craig will convey to VPPSA. The Board then briefly discussed the possibility of buying solar panels, for instance, and finding a customer who is willing to pay ½ of the installation costs if we offer 10¢/kWh for the output. That way we can spend money in-house on our own projects. Jim mentioned that Terry Hill is now a certified solar installer. Trustee Bourne played with the idea of asking Terry the bulk rate to buy 20 systems and then find 20 customers but Craig pointed out the administrative headache is would create to keep track of them all. Trustee Bourne is only suggesting solar because the permitting issues are much less than wind.

Trustee DeBor asked what CVPS and GMP are doing about their SPEED requirements. Craig stated it was unknown and they represent possibly 85% of the State’s load. Jim does know that GMP just completed a large solar installation at their office.

8) RATE MITIGATION STRATEGIES:

Craig needs to restart dialogue with the Selectboard on how to get the town involved in increasing usage at the WWTF. If we lay a distribution pipe somewhere, how much would usage increase?

Craig had a discussion with Trustee Wildes on storage heat (taking power in off-peak hours to charge a storage heater). Such a customer does not have to have electric heat anymore. Would Efficiency Vermont would throw a fit? Probably but MW&L must keep our rates down for our customers. It would be a business decision.

9) OTHER BUSINESS:

The Board briefly discussed possible replacements for Trustee Thompson. Trustee Wildes had provided a list of possible candidates. The Chairman asked if we should try to create a new deadline for replacing Trustee Thompson or just work from the existing list. Trustee Bourne wanted to ask a few more people.

The next joint meeting with the Selectboard is a little overdue. Craig would like to shoot for sometime in July.

Craig needs to review the list of 2009 Goals with Penny and Jim to see if it is still attainable.

Our billing error (wrong 911 addresses) has caused a back-billing of over $5,000 for a customer and they are balking at paying our billing error. Trustee Bourne feels that if push comes to shove, the Small Claims Court can be shown that MW&L is not making any profit from this mistake. Another billing problem from a failed meter has the customer asking why they have to pay for a failed meter that is the property of MW&L. The Board then briefly discussed gradually changing out old meters as they only cost approximately $30 each.

10) EXECUTIVE SESSION:

No Executive Session was needed.

11) ADJOURNMENT:

At 7:37 PM, on a motion by Trustee Bourne, seconded by Trustee DeBor and approved by all present, the Board adjourned the meeting.

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Edward DeBor, Clerk