SELECT BOARD
                            MINUTES
                         June 28, 2008
Present:  Sharyn Brush, Jason Morrissey,  John Zink, Joe Krawczyk, Matt Maroney, Chris Oldham and Lodie Colvin. 
Also present: Stuart Hurd, Town Manager and Terry Morse, Water Resources Supt.
The meeting was called to order at 9:00 am.
The first item for discussion was the Water Fund budget for FY09. T. Morse made a brief presentation using computer technology to highlight for the Board members some of the advanced technology now in use at the Water Treatment Plant. 
M. Maroney asked a question about water sales as an additional revenue source. Discussion featured the Town's recent attempts to increase sales and to locate a small bottling facility here. All have been unsuccessful. All discussed other sales such as pool filling to understand if we are doing all we can to maximize sales.
L. Colvin questioned the monies contained in 5940.820, improvement projects at $245,000 and wondered if that was enough given the estimates of more than $1.0 million to improve pressure at high elevations in Town. T. Morse reviewed the reasoning and the need for the project. We hope to phase our efforts to minimize costs to the user, but indicate to the State that we are making headway. In 5980.210, J. Morrissey questioned the dramatic increase in these costs because it appears our last year's budget projections are in line. T. Morse explained that unfortunately, our efforts at protecting the old lines by coating them were not as successful as hoped. It appears that we will need to increase the purchases of sodium bicarb, lime and SO2. We may need to expand the system as well. This will double our cost of supplies.
Discussion then turned to system costs overall. He believes that the picture for systems is very bleak. Costs for supplies (chemicals, pipe, etc) are outpacing a community's ability to fund them. He's not certain systems the size of Bennington's can keep pace. We have 40 out of 65 miles of water main that need replacement eventually. Bulk purchases are used now. Capital Planning is used. System leak detection and other services are used to increase capacity and reduce losses. Bennington's rates fall in the mid-range when compared to others in the State. He believes the condition of our old lines will be the most problematic issue in the future. Staff will be presenting the updated Capital Plan soon so the Board will understand what we are facing in costs. Ion the end, L. Colvin wondered if the Town should increase the reserves and the budget to fund them. Current bond costs for the new Plant have bnot yet impacted the budget. It will cost in excess of $450,000 annually to retire this debt. Staff is trying to hold the system together and mitigate this bond impact with some of the reserves. J. Krawzcyk felt that there is too much uncertainty given the cost of oil and the cost of maintaining a home to increase user costs too much. M. Maroney felt that we need to educate the public about what is being done; to begin to meter all users; and that we should meet more often on this topic so that the Board is well informed. An estimate to replace 1 mile of water main at $250 per foot is $1.25 million. Discussion turned to unfunded mandates at the Federal and State level. T. Morse noted the daily cost to sample for EPA purposes to help EPA determine if certain other controls should be imposed on systems. Only large systems are required to do this. The new Consecutive Water System legislation was discussed. Understanding this issue from both perspectives, the small system owner and the Town would be beneficial. The Board agreed to place it on the July 14 or 28 meeting agenda. The Board also asked the Manger and staff to be more aggressive in finding additional sales or other uses such as bottling facilities. The Manager pointed out that a new Sate law places underground water in the public domain so that any increases in these type sales will be scrutinized by the State. The staff will develop several rate increase options for the July 14th meeting. All monies generated if an increase is approved would go to reserves. The budgets, water and Sewer, were found to be acceptable. Action will take place on the 14th.
In other business, J. Morrissey sought o get the Board to reconsider its vote on the Leonard J. Black reimbursement of the general Fund ($6,100). Some of that money could be directed to North Bennington now. No action was taken. The Leonard J. Black reserve will be placed on the ballot next march to see if the voters will authorize a redirection of those funds to other recreational opportunities.
The Water Fund backhoe lease purchase and sale of the 1989 backhoe will be discussed on July 14th as well.
The meeting adjourned at 10:33 am.
Respectfully submitted,
Stuart A. Hurd