VILLAGE OF MORRISVILLE WATER AND LIGHT DEPARTMENT

September 8, 2009

 

TUESDAY                                                                                               6:00 PM

                  Water and Light Office

 

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

 

PRESENT:      Trustees: Tim Sargent, Ed DeBor, Wally Reeve, Peter Bourne, and Dana Wildes

                        Staff:      Craig Myotte, Jim Fontaine, and Linda Osgood

 

ABSENT:       Penny Jones

 

1)         PUBLIC MEETING:

 

            Craig discussed a customer issue with the Trustees. During the recent reconstruction of the sewer main on Clark Avenue, it was determined that the Pritchard’s residence on Clark Street was not connected to the sewer system.  The Pritchard’s received an estimate to connect which the customer feels the Village should pay.  As this customer has paid for sewer services that were not delivered, Craig agreed to pay the connection costs.  The customer then asked that their driveway be repaved at the Village’s expense after work is completed.  After inspecting the existing driveway, it was found to be a very old driveway with the existing pavement at the end of its useful life.  Craig stated he could not justify repaving the driveway. Craig feels that after we cut 3’ for connecting (1’ of which is actually in the driveway) that we can patch the driveway to return it to its current condition. The Trustees discussed the amount of money involved and agreed to split the cost of the repaving of the driveway.

 

            On a motion by Trustee Wildes, seconded by Trustee Bourne and unanimously approved, the Board agreed to pay for the connection costs and for ˝ of the paving costs not to exceed a total of $5,100.

 

2)         CURRENT PRIORITY PROJECTS:

 

            The Board reviewed the status of the current priority projects.  We are still awaiting final hydro assessment report from HL Turner, work on the water storage project begins tomorrow, contract negotiations are in final review, the Patnoe property will be surveyed, and we have received no word on our request for funding for energy projects.

 

3)         MANAGEMENT REPORT:

 

            Line crews have had some new construction.  There is no water in the river for generation, even Green River is holding at 1’ below spilling.  Green River did pass its capability test which will result in a monthly $7,300 credit during summer months.  Generation is behind budget and only Mother Nature can tell if we will be able to make that up.  The first three months of the year when we had water and were down for repairs hurt.

 

At the WWTF, they are pouring concrete, raising the walls of the existing unit, and building the addition to the garage for the centrifuge unit.  They were able to automate some functions by fine-tuning the SBR and are still on track to finish.

 

            There are approximately 20 water meters yet to be installed, nine of which require meter pits and are scheduled for next week.  There is one customer in Pinewood Estates with both a well and municipal water.  They will need to be separated so the customer will need to choose.

 

            Tatro is almost complete the sewer main project and paving is all that remains.  The Portland Street water main from Denoia’s to Jost Electronics is scheduled for late September.

 

            Penny has been working on canceling duplicate flood coverage for the WWTF which should result in a $5,000/year savings.  Functional consolidation will take valuable time from other projects so Craig is moving that to the back burner as he really needs to concentrate on rate stabilization and getting Hyde Park to connect to our WWTF.

 

            Craig continues to discuss MW&L’s future capacity situation with VPPSA staff. Craig is having a hard time justifying signing additional short-term purchased power contracts without knowing the long term picture. Trustee DeBor asked why the rush to sign short-term contracts when the market is stable and should remain so for a few months.  The real questions is do we sign a short-term contract or play the market?  Trustee DeBor asked if VPPSA’s plan was to diversify us away from VY and HQ, how can any rational decision be made without knowing the fate of those two sources?  Trustee Wildes re-emphasized it was difficult to make long term plans with 50% of our portfolio up in the air unless legislation stipulates a break in rates to VT utilities in exchange for a new license for VY.  Trustee Bourne asked why we can’t hedge energy the same way he hedges oil?  Trustee DeBor also pointed out that transmission costs are still going up with no end in sight unless we build our own transmission lines or generation is within our territory so transmission is not needed.  Trustee Bourne believes the market rates will remain stable for at least three months so it may be time to think outside the box.

 

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

 

            On a motion by Trustee Wildes, seconded by Trustee Bourne, the Board approved the minutes of the August 17, 2009, regular meeting.   Trustees DeBor and Reeve abstained.

 

5)         APPROVE SPECIAL MEETING FOR BORROWING MONIES FOR 2009 SEWER PROJECTS:

 

            On a motion by Trustee Wildes, seconded by Trustee DeBor and approved unanimously, the Board approved the warning for the Special Meeting for borrowing monies for 2009 sewer projects on October 5, 2009.

 

6)         APPROVE LIEN ON 110 PORTLAND STREET PROPERTY:

 

            Trustee DeBor moved that we send Valcich’s property to tax sale for unpaid bills.  Trustee Bourne seconded but stated that we should send all liened properties to tax sale.  Trustee DeBor then amended his movement to send to tax sale all properties for water and sewer liens.  Trustee Bourne seconded but removed Melben’s property from the list.  The motion passed unanimously.

 

 7)        UPDATE OF WWTF/WATER METER PROJECT:

 

            Covered in Manager’s Report.

 

8)         DISCUSS HYDRO REPORT AND FUTURE POWER SUPPLY STRATEGIES:

 

            VPPSA has produced a market update for distribution on a regular basis which the Board reviewed.  Trustee Wildes noted that transmission costs continue to rise even though power supply is flat.  We are not going to replace 4˘ and 6˘ power at that same price.  Therefore every cent we invest in our own hydro is most important.  Forecasted transmission costs for the next 5-10 years are high.  VPPSA is working on a program that shows the impact on our rates when looking at a particular power source.

 

9)         RATE MITIGATION STRATEGIES:

 

            Connecting Hyde Park to our WWTF could produce a huge benefit for WWTF rates.  Craig also pointed out an article from VLCT about keeping rates low by front-loading your capital.  Trustee Wildes asked if FA&A could take a look at five municipals with SBR WWTF’s that have had capital improvements in the last five years to compare where rates are going. Current staff levels were discussed.

 

11)       OTHER BUSINESS:

 

            On a motion by Trustee Wildes, seconded by Trustee Bourne and unanimously approved, the Board reappointed Brice Simon to act as the Village’s representative on the Lamoille County Planning Committee.

 

            There is a balloon payment in 2011 on the mortgage for our office.  Penny has gotten a quote from UB for 4% on $722,000 for 10 years ($4,100 monthly payments).  Trustee DeBor instructed staff to shop around to the other three banks in town but do it quickly because rates will be going up.

 

            The regular meeting scheduled for September 21st has been moved to September 28th.

 

            The Chairman asked if we needed another appraisal on the Gristmill, Creamery, Bugbee Springs, Zackwoods, and the 18-acres behind Bishop Marshall.  The Board agreed that it wouldn’t hurt but they needed to get their list of covenants together.  Trustee DeBor suggested we ask for requests for proposals, work with Economic Development, use newspapers (including the Boston Globe), Craigslist, and our own website.  Trustee Wildes mentioned that Barry Singer wanted to be kept in the loop in regards to Zackwoods.

 

            Brice Simon updated the Board on LCPC.  Brice’s main initiative was to form a working committee on energy projects to support local renewables and has proposed Lamoille County as a pilot project for renewable energy projects other than hydro.  He says that he is still struggling to understand LCPC’s big picture, as they only have a big picture for each town and not for the entire county.  There has been a significant personnel changeover - new Board, new vision.  They are now talking about planning development instead of planning to avoid development.

 

12)       EXECUTIVE SESSION:

 

            At 8:00 PM, on a motion by Trustee Bourne, seconded by Trustee Wildes and unanimously approved, the Board went into Executive Session to discuss contracts.

 

            At 8:23 PM, on a motion by Trustee DeBor, seconded by Trustee Bourne and unanimously approved, the Board came out of Executive Session.

 

 

11)       ADJOURNMENT:

 

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

 

 

                                                                        ___________________________________

                                                                        Edward DeBor, Clerk