VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

March 2, 2009

MONDAY 6:00 PM

Water and Light Office

The meeting duly noticed and warned was called to order at 6:02 PM.

PRESENT:

Trustees: Dana Wildes, Peter Bourne, and Ed DeBor.

Staff: Craig Myotte, Jim Fontaine, Penny Jones, Linda Osgood

ABSENT: Trustee Thompson and Trustee Sargent

2) CURRENT PRIORITY PROJECTS:

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

1) PUBLIC MEETING:

Ernie Patnoe was in attendance to discuss his property within the Wellhead Protection Area (WPA). Offers and counter-offers have been made and he was looking for feedback from the Board. He moved his back up septic at his own cost which used up all the extra land he had outside the WPA. He would like future WPA’s to reference the chimney of his house as a permanent location of the edge of the WPA as each study has created a slightly different map with slightly different line locations. Mr. Patnoe would like the Village to purchase the development rights on the three remaining lots on his property within the WPA. If the Village wants to buy three land-locked acres, he is willing to sell. However, he feels he deserves more than the appraised value because he doesn’t have to sell and he has all the permits he needs to develop those acres. Municipals are only allowed to offer 20% above the appraised value of property so there might not be much wiggle room. Mr. Patnoe mentioned that the Village purchased the Gregory property without any appraisal, which was incorrect in that the appraisal was conducted after the sale. The Chairman asked why the Village couldn’t buy the three acres and do a deed restriction on the remaining portion of land inside the WHP. Mr. Patnoe countered that he should be paid for the development rights because he can sell the land. Ernie feels that the Board’s delays in making a decision (almost 2½ years) have cost him $50,000. He is willing to bend but does not want any type of covenant on his building.

11) EXECUTIVE SESSION:

At 6:55 PM, on a motion by Trustee DeBor, seconded by Trustee Bourne and approved by all present, the Board went into Executive Session to discuss the Patnoe property.

At 7:10 PM, on a motion by Bourne, seconded by DeBor and approved by all present, the Board came out of Executive Session.

3) MANAGEMENT REPORT:

Blow & Cote is scooping out around the cofferdam after breaking through two feet of ice (which took all day). They hope to remove the cofferdam in three days. We held up the project two weeks by epoxying cracks in the intakes and forebays but we hope to be generating this week.

Jim got permission from Greaves to cross their property to conduct soil bearings for the new water storage facility.

Twenty-four water meters were installed last week bringing the total installed to 370-380. A lot of the 2” and 3” meters were done last week while school was on break because most of these large meters are in the schools. Another 50-60 locations have been designated “non standard” resulting in requests for 23 meter pits at $2400 each. There are more mobile homes on the system than anticipated so we will approach RDA and ask for permission to flat rate mobile homes.

Economic Stimulus funds will not be grants but loans with 50% loan forgiveness through the State Revolving Fund and you must bond for the total amount of a project.

Penny originally planned to book the CVPS Loss Settlement in 2009 but the auditors have stated that because the losses took place in 2006-2008 they need to be recorded in 2008 as a known event. This makes 2008 look good but not 2009. Cash flow is still okay. A footnote will be added to the audit to explain this one-time adjustment.

Penny attended a Red Flag seminar on identity theft. VPPSA is working on a policy for MW&L.

The first management meeting for the IBEW contract negotiations will be this week and Craig is hoping to finish by mid-May. The Board will want to know if there is flexibility in the contract on job duties.

Hardwick is open to consolidating on line projects and hydro operations. The details remain to be worked out.

4) APPROVE MINTUES OF MEETING HELD FEBRUARY 17, 2009:

On a motion by Trustee Bourne, seconded by Chairman Wildes and approved by all present, the Board approved the minutes of the February 17, 2009, regular meeting. Trustee DeBor abstained due to absence.

5) APPROVE 2008 AUDIT REPORT:

On a motion by Trustee DeBor, seconded by Trustee Bourne and approved by all present, the Board approved the 2008 audit report.

6) APPROVE ANNUAL MEETING WARNING:

Article #5 (line of credit) has already been struck. Article #8 (Patnoe property) can also be struck.

On a motion by Trustee Bourne, seconded by Trustee DeBor and approved by all present, the Board approved the Annual Meeting Warning.

7) UPDATE ON WWTF PROJECT:

Staff reported there is nothing to update at this time.

8) UPDATE ON WATER METER PROJECT:

Staff provided update under the Management Report discussion.

9) DISCUSS ANNUAL MEETING MATERIALS:

Craig will breakdown purchased power to explain the rise in transmission costs. He will emphasize that we are enhancing our renewable and green power and looking to invest in our own “bricks & mortar” generation projects.

10) OTHER BUSINESS:

The “special appraisal” needed for Zackwoods by the Vermont River Conservancy is $5,000 not $20,000. We are still awaiting additional information on this “special appraisal”. The Board reviewed a draft of goals for 2009. Craig will add a column for completion date.

Trustee DeBor asked if we have enough water meter information to try for a new rate design by end of 2009. Jim believes it is possible.

We received a letter from David Ring regarding a frozen sewer line. He feels he should not have to pay for thawing the line that lies well within the road’s right of way and wants to attend the next Board meeting. Jim pointed out that not many towns take responsibility for sewer services, just mains and manholes.

Stowe still wants MW&L to join in the purchase of a vactor truck for $6000-$7000. They haven’t come up with an operating cost/hour. In 2008, we spent $8800 on vactor services. Jim’s concern is we can get Hartigan 24/7 and Stowe is reluctant to provide emergency services. Trustee Bourne suggested staying with Hartigan as some years vactoring costs $10,000 and some years it costs $4,000 but all without the expense of the equipment.

Staff asked the Board if they had any more thoughts on a letter to our water customers to urge cooperation in the installation of water meters. The Chairman suggested picking a final date after which customers will pay a flat rate monthly fee of $100. Trustee Bourne suggested an article in the papers stating that flat rate water fees will be doubling and tripling unless you have a water meter.

We are trying to get Economic Stimulus funds for Maple Street. We have $132,000 in bonded money for the Water Department. We would need to bond for $700,000 just to do the water line. The Chairman asked if we could bond in anticipation of…Trustee DeBor is concerned about our bond indebtedness. The Chairman is also concerned about bond indebtedness but is also concerned with 100+ year old pipes in the ground. Trustee DeBor believes we are too late because you need 60 days notice on bond votes.

On a motion by Trustee Bourne, seconded by Trustee DeBor and approved by all present, the Board authorized the Village to request a bond for $700,000 in anticipation of 50% reimbursement from the State Revolving Fund as we have already bonded for $132,000 for this project and the Water Department has a $300,000 reserve.

12) ADJOURNMENT:

At 8:26 PM, on a motion by Trustee Bourne, seconded by Chairman Wildes and approved by all present, the Board adjourned the meeting.

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Ed DeBor, Acting Clerk