SELECT BOARD
                            MINUTES
                         June 15, 2009
Present:  Sharyn Brush, Jason Morrissey, Matt Maroney, John Zink, Joe Krawczyk and Lodie Colvin
Also present: Stuart Hurd, Town Manager, Melissa Currier, Finance Director, and Terry Morse, Water Resources Supt.
Absent: Chris Oldham
The meeting was called to order at 5:30 p.m.
L. Colvin began the meeting questioning the reason for the proposed 11% water rate increase. S. Hurd explained that the staff did not want to deplete the $610,000 reserve set aside to defray the upcoming annual bond payment for the Water Filtration Plant, $472,000 approximately. This proposal depletes the reserve slowly while raising sufficient funds so that at the end of the third year, the budget will contain the full bond payment, and there will still be a small amount in the reserve. J. Morrissey wondered why we did not build this reserve faster. T. Morse indicated that over the last several years budgets for other needs have been reduced to allow for this reserve while holding the line on rates to the extent possible. Last year, it was the cost of fuel. He noted that no upgrades are planned this year. He went on to note that the Sewer Fund budget is also level funded other than to allow for depreciation expense. Purchases approved by the Board last year, such as the camera and trailer, allowed us to reduce certain contracted expenses. J. Krawczyk indicated that the bond cost was necessary in that the upgrades were mandated by the State. This seems like a workable proposal. He questioned if stimulus funds were available.
T. Morse explained that the Town was hoping for stimulus funds for the Bolles Brook screening upgrades already approved and prosed as part of  the last bond vote. The Town ranks 45th. The State plans to fund 42 projects. The hydroelectric project is underway. We project savings to be $35,000 annually. It was noted that the budget contains an electrical expense. The staff can not be certain that the project will come on line soon. Any savings will be reserved at year end. Bennington water and sewer rates remain below the state average according to T. Morse. This actually penalizes us in grant requests.
J. Zink asked for an explanation of the difference between and sewer main and a sewer service line. T. Morse explained that service lines connects from the main  to the business or home. Unlike water service lines which the Town maintains to the shut-off, generally located in the property of the customer. J. Zink wondered wether we might raise our fees for other services to avoid rate increases. He also noted a need to educate the customers about these system issues. M. Maroney encouraged rate increases to preserve the $610,00 reserve in order to have funds available for catastrophic failures. It was indicated that a major system failure was unlikely, but even small repairs are costly. M. Maroney felt that we need to meter all customers. It is the fairest way to generate revenue and would help us track our water useage better. T. Morse indicated that it costs approximately $350 to meter a home not including the plumber's cost. We also require backflow preventers and pressure reducers where they do not exist. J. Krawczyk agreed and asked that a plan be developed to outline the cost to meter every non-metered customer. The cost savings would impact both the water and sewer fund budgets. It is estimated that use could be reduced by as much as 30%. An educational piece would be required to convince customers that this was necessary. It was suggested that some form of pre-payment or surcharge might reduce the budgetary impact.
It was apparent that there was consensus that these budgets and rate proposals were well-developed by the staff. On a motion by J. Krawczyk, seconded by J. Zink, the Board voted unanimously to approve both budgets as presented; to developed plans for the Northside Drive replacement for March 2010; and to work to secure stimulus funds for metering the entire system.
In other business, J. Krawczyk noted problems which occurred at Knapp's Underground on Friday June 12th. Police responded to people pitching tents in lots behind the business on lands not owned by the business. The music was loud; doors were open to the street. Staff will look into permit issues and noise control issues.
S. Hurd requested, on behalf of Jim Harris, VAOT Special Projects engineer, Board support for the use of stimulus funds for the Welcome Center project to insure it comes on line with the opening of the northern leg of Routs 279. By consensus the Board agreed to support this.
M. Maroney noted that the hail canon had been fired during the hail storm. S. Hurd indicated that this was controlled act planned to test new buffering installed by the owner. The results were not yet known.
The meeting adjourned at 6:53 p.m.
Respectfully submitted,
Stuart A. Hurd