VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

November 5, 2007

MONDAY 6:00 PM

Water and Light Office

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

MEMBERS PRESENT: Chair: Bourne

Trustees: Sargent, DeBor, Wildes

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

ABSENT: Trustee Thompson

1) PUBLIC MEETING:

No members of the public were in attendance.

2) OLD BUSINESS:

Response to issues raised in letter from ANR: Nothing new to report.

Copley Golf Course: Still working on back-billing issue.

3) MANAGEMENT REPORT:

Jim reported that Substation #5 is online. “Kudos” to Steve Cutler for his oversight of the project.

Tatro’s work on Randolph Road/Cottage Street is progressing. The new line on Randolph Road passed the pressure test and the chlorination test. Cottage Street did not pass the pressure test. Paving is an issue with the Town. While coordinating road work is a good idea conceptually, it is not practical in reality.

The racks at Cady’s Falls are in place and look good. The Chairman asked if we had found an engineer to check out the other unit, which we have not yet.

Security cameras at Plant #2 have been installed. The old bridge has been blocked to thru traffic.

Jim informed the Board of the recent drowning below Dam #2. Although the accident was technically outside the boundary of the FERC project, the incident was reported to FERC that evening. Amy Noyes will be writing some articles for the News & Citizen

and Craig wants to use the opportunity to reinforce the trespassing and safety issues around any of our facilities.

Cady’s Falls is back on-line but only the vertical unit. More minor repairs are needed. The Green River Reservoir is at the crest but not spilling. The flashboards are back in place at Dam #2.

On the financial side, Penny informed the Board of one business that was possibly declaring bankruptcy with a $10,000-$11,000 balanced owed to MWL (mostly water and sewer). The sewer certificate of deposit was renewed for 3.45%. Penny gave the Trustees a “heads up” that we have a SQRP issue regarding inaccurate bills.

Trustee Wildes feels that there should be a smaller rate increase for water and sewer in 2008 to avoid a huge increase at a later date. Jim informed him that once water meters were in place, we could build a new database to determine what the metered rate actually should be. If we stuck to the current metered rates, we will lose money. The Chairman asked the staff to begin work on a tentative rate increase and try to shoot for January 2008.

Trustee Wildes asked if we should prepare a long-term maintenance plan for the hydro generation units. This would also allow us to plan further ahead to buy larger blocks of purchased power instead of buying on the more expensive spot-market. He feels this would be a good use of the Green River funds. Trustee DeBor supports developing a plan. The Chairman pointed out that we are working with obsolete technologies. Trustee DeBor stated he would not be surprised if we could significantly increase the output. The Trustees agreed that it could be a good use of part of the Green River funds.

Craig attended by conference call the first meeting of the Vermont State Planning Committee.

VPPSA has created a long-term model to evaluate power supply options that VPPSA staff reviewed with Board members. It is very impressive.

4) APPROVE MINUTES OF MEETING HELD OCTOBER 15, 2007:

On a motion by Trustee DeBor, seconded by Trustee Sargent and unanimously approved, the Board approved the minutes of the meeting held October 15, 2007.

5) APPROVE REVOLVING LOAN FUND APPLICATION FOR WWTF UPGRADE:

On a motion by Trustee DeBor, seconded by Trustee Wildes and unanimously approved, the Board approved the revolving loan fund application for the WWTF upgrade.

6) DISCUSS STATUS OF PRIVATE OWNED SEWER LINES:

Craig reported that the Murphy Realty Agreement is all set and signed by Mr. Murphy. It is on its way to MWL for signatures. He reminded the Trustees that we still need an easement from Mr. Manosh.

7) DISCUSS NON-SEASONAL RATE FILING:

Ten people showed up for the public meeting. Most were unhappy with the increased customer charge. Some took the opportunity to discuss non-pertinent issues. Craig was disappointed that no analysts from DPS bothered to show up to help defend the proposed higher customer charge. A technical hearing is scheduled for November 16.

8) REVIEW OCTOBER 22^ND STATUS REPORT OF WWTF PROJECT FROM FA&A:

The Trustees discussed several issues regarding the WWTF report from FA&A.

Trustee Wildes asked why FA&A thinks there may be an Act 250 issue when the ANR is the one pushing for the project. Jim replied that FA&A’s concerns are not really technical but sprawl will be an issue.

Trustee Sargent asked how the land acquisitions were proceeding. Jim met with the by-pass coordinator and their biggest concern was that it would open up permit issues for the entire bypass (we are going to have to rebuild the access road and are trying to get the State to reimburse us).

Jim reminded the Board that we are committed to a $4.8 million loan and that we will have to spend $4.8 million before we get any RDA grant money. Therefore making modifications to the plan may not reduce MWL’s cost. Trustee DeBor pointed out that MWL is only building what we need. He does not want to see extra roads push us over budget. He does want to see savings that may allow us to do more within the budget.

Trustee Wildes asked Craig to get in touch with Tim Soule and to prepare letters to our congressmen about how the Feds only gave us $250,000 of a $6.8 million project and ask for their assistance in securing additional grant money.

9) PROPERTY MANAGEMENT:

Craig met with Tim Sullivan and Steve Cutler at Bugbee Springs. Mr. Sullivan is concerned about his ability to make an assessment on water and gravel rights so he will give us an assessment for just the land.

Craig had several discussions with Hank of Chuck’s Bikes about the Gristmill. The Trustees are concerned about the Village’s liability of having anyone lease the buildings. Some money needs to be invested to insure the basic structural integrity of the buildings. The Trustees want to put the issue in the hands of the voters at the next annual meeting.

10) OTHER BUSINESS:

Trustee Wildes asked if the Board could adopt a consent-agenda because unless something dramatically changes, most items can be settled with little discussion and one vote. Use of a consent-agenda would allow the Trustees to spend more time on discussing the most critical issues. Trustee DeBor expressed concern that the problem with consent agendas was you don’t really know what is being voted on. The Trustees agreed to discuss ways to make the meetings more productive at future meetings.

The Chairman asked if the Board could revisit funding an energy efficiency loan. Trustee Wildes replied he would rather see us invest more into our own renewable portfolio.

11) EXECUTIVE SESSION:

At 7:52 PM, on a motion by Trustee Sargent, seconded by Trustee Wildes and unanimously approved, the Board agreed to go into Executive Session to discuss contracts.

At 8:05 PM, on a motion by Trustee Sargent, seconded by Trustee Wildes and unanimously approved, the Board came out of Executive Session.

12) ADJOURNMENT:

At 8:06 PM, on a motion by Trustee Sargent, seconded by Trustee DeBor and unanimously approved, the Board adjourned the meeting.

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Dana Wildes, Clerk