VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

November 3, 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, Keith Thompson and Peter Bourne.

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

Others:     Patty Richards, Brian Callnan (VPPSA), Brad Aldrich (FA&A), Brice Simon (SLO)

 

1)         PUBLIC MEETING:

 

            No members of the public were present. Craig received request from landowner near Zackwoods Pond for limited access across MW&L property for logging purposes.  Trustee Thompson was hesitant only because the Board is not certain what the disposition of the Zackwoods property will be.  Trustee Bourne questioned why they needed limited access in writing in order to timber harvest on a land-locked parcel.  He also questioned why they did not try to get access across Dexter’s property.  Trustee Sargent will research whether it is legally necessary and the item was tabled until a future meeting.

 

2)         PROJECT 10:

 

            Patty Richards from VPPSA gave a presentation outlining the cost increases associated with Project 10.  VPPSA still recommends proceeding with the project and is requesting the Trustees sign a new Power Sales Agreement (PSA) authorizing VPPSA to go above the ceiling of the previously signed PSA. The nearly 70% increase in costs on this project have eroded the Board’s trust in VPPSA. The Trustees asked VPPSA to provide a response to follow-up questions and will discuss this matter further at their November 17 meeting.

 

3)         UPDATE OF WWTF PROJECT:

 

            Brad Aldrich of Forcier, Aldrich & Associates was on hand to give an update on the WWTF project.  Although the project started out almost a month behind due to wet weather, most items are right back on track and under budget.  The first SBR tank is scheduled to be on-line May 1st.  The plant will operate with one SBR tank for approximately 10-12 months while the current facility is destructed and the second SBR tank is built.

 

4)         UPDATE OF WATER METER PROJECT:

 

            Brad Aldrich also gave an update on the water meter project.  The required credentials of contracted plumbers was verified and East National has hired a licensed plumber to continue the project.  The 100 meters already installed will have to be spot-checked.  New handhelds and software is scheduled for mid-November and they estimate completing the project in March 2009.

 

5)         APPROVE MINUTES OF MEETING HELD OCTOBER 13, 2008:

 

            On a motion by Trustee DeBor, seconded by Trustee Thompson and unanimously approved, the Board approved the minutes of the October 13, 2008, regular meeting.

 

6)         APPROVE PAYMENT OF WAGES TO VILLAGE CLERK/TREASURER AND ASSISTANT:

 

            Craig has not yet received a list of each positions’ job duties.  On a motion by Trustee Thompson, seconded by Trustee Bourne and unanimously approved, the Board approved payment of wages to Village Clerk/Treasurer and Assistant once Craig receives the list of duties.

 

7)         CURRENT PRIORTY PROJECTS:

 

            GMP line purchase, the Zackwoods appraisal, the water RFQ, the hydro RFQ, the 2009 capital budget, the SSMA letter to Act 250, the FERC Part 12 inspection, and the website redesign still remain on the current priority projects lists.

 

8)         MANAGEMENT REPORT:

 

            The hydraulic unit at Green River has been removed and new unit should be installed tomorrow with testing on Thursday.  If all is well, we will conduct a new capability audit test.  Plant #2 had a set back as high water flooded the de-watered headgates.  Debris will be removed and penstock flushed out before bringing units back online.

 

            We received State approval of the Spill Prevention Plan for the WWTF.  Concrete injections has not arrived yet for sewer river crossing repair.  Chairman Wildes directed staff to send a letter to Tomlinson’s Store thanking them for letting us put a crane in their parking lot to make repairs.

 

            No issues to report for 3rd Quarter SQRP filing.  Penny is currently working on expense budgets.  She received preliminary information that health insurance will go up $60/month.  The Chairman is concerned about cash flows and growing arrears in A/R.  He feels that we will be forced to use the Green River earnings just to pay the bills.  Trustee DeBor emphasized not to delay in asking for a rate increase.  The Chairman also questioned if all water & sewer rate increases were in place do we have rates in place to satisfy the debt service.  If a 30% rate increase is going to be needed for 2009-2010 then we need to start gradually in 2009.  Penny hopes to have recommendations at the next meeting.

 

            Craig has a meeting with Hardwick to look for opportunities to reduce costs.  He has a meeting with Johnson about joint operation of our WWTF’s and on-call help for their linemen.  Craig is pushing hard to wrap up the GMP line purchase but using VELCO equity won’t work.

 

            The Chairman asked if Craig had reviewed the rubber dam analysis.  The original analysis showed an 80-year payback but that was based on old market conditions.  New market conditions might drop the payback period down to 15-20 years but Craig doubted it.  Craig will revisit the analysis to determine what market conditions might make the project feasible.

 

            The Chairman asked if any of the Federal stimulus packages for water projects could be used for Maple Street reconstruction.  Craig will explore. 

 

9)         OTHER BUSINESS:

 

            The letter for the SSMA shows progress and is ready to go to the State although the Chairman stated that we will not get release from Act 250 until the Selectboard makes a decision on prime agricultural soils.

 

            The appraisal of the Zackwoods property (258 acres) came in significantly less than expected. Trustee Bourne asked Craig to send him the appraisal’s comparables and the tax bill.  Jim met with Jim Ryan on erosion mitigation and he suggested waterbars.

 

            KRI, rates, and power supply strategy will be tabled until a future meeting.  The Board saw no need to amend the bill stuffer policy other than changing the title to “bill stuffer policy”.

 

            VPPSA is working on a draft response to alternative regulation.

 

            Jim received another request to trap on the Zackwoods property and Green River property that he rejected.

 

10)       EXECUTIVE SESSION:

 

            At 8:10 PM on a motion by Trustee Bourne, seconded by Trustee Sargent and unanimously approved, the Board went into Executive Session to discuss potential legal implications. At 8:45 PM on a motion by Trustee Bourne, seconded by Trustee Sargent and unanimously approved, the Board came out of Executive Session.

 

11)       ADJOURNMENT:

 

            At 8:50 PM, on a motion by Trustee DeBor, seconded by Trustee Bourne and unanimously approved, the Board adjourned the meeting.

 

 

                                                                        ___________________________________

                                                                        Tim Sargent, Clerk