Minutes of Prudential Committee Meeting

Jericho fire District No. 1

December 20, 2016

Attendees: Brian Stevens, Ann Kroll Lerner, John Irving, Les Allen

Finances and proposed 2017 budget: Brian provided several documents from which he explained our current position and our expectations for the coming year. Brian’s estimation of our Y/E financial position looks favorable. Part of this is caused by some late maintenance work that will be carried over into 2017.

John noted that the booster pump rebuild cost came in under, but close to a new purchase cost. This pump is being retained as a spare, for the two that alternate in operation.

Brian showed a new budget line item. This $13,000, which has been on the Capital Replacement Fund spread sheet, is a summary of projected (not planned) expense items. One of these is a pressure tank (one of six that provide distribution pressure) that has actually failed. Replacement cost is expected to be near $5,000, but will extend the life of the booster pumps. A larger expense item, filter re-bedding, will be done only when the filter shows the need.

It is not evident from a casual observation of our annual budgets that we have been carrying, as part of our reserve, a Capital Replacement Plan, established back in 2004. This simply is a required estimation of when each of ten selected items will require replacement or “re-do” and accumulating the funds to accomplish them when required.

Brian explained the need to keep our financial position sufficient, both in regard to the cost of living increases and to maintaining our Capital Replacement Fund. After an exchange of thoughts, Brian will crunch these numbers for presentation on the proposed 2017 budget.

System maintenance: The status of the approved “Mission” system upgrade was not known. John will contact Kirk Patch, our operator, to see when this work is scheduled. The holding tank pump out has not been scheduled. Les will check this out with Kirk and schedule it if needed..

Source Protection Plan update: The State of Vermont requires ground sourced public water systems to update our S.P. Plan every two years. This was last done for us by S.O.S. our operator in 2015, at a cost of $200. The Prudential Committee approved that we request S.O.S. to do the update again.

Long term planning: We began a discussion regarding the long term security of a water source. Given our dependence upon a single well, in a shallow aquifer (approx. 35’ deep) that has vulnerability to different hazards, we think it prudent to investigate what we could/would do if this source became unusable from any of a variety of causes. The P.C. authorized Brian to contact Green Mountain Engineering to see if they could provide us with an assessment of options.

Other deemed appropriate: Ann, who also serves on the Jericho Conservation Commission, asked if the water system staff would approve and coordinate an event next summer, at which the Conservation Commission would participate as presenters of their work/interest in Jericho. This might be combined with family picnic. We said “yes”. (Dawn and Paul Makowenskyi where are you?)

Reminder: Our Annual Meeting of the Jericho Fire District No. 1 (Foothills water system) will be in the J/U library conference room, January 17, 2017 at 7:00 PM.

Respectfully submitted;

Leslie Allen, Clerk, JFD#1