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

Minutes of Prudential Committee Meeting

Jericho fire district No. 1

October 18, 2016

Attendees: Fred Lavenberg, Ann Kroll Lerner, Brian Stevens, Susan Grab, Les Allen

Service line at #35 Foothills Dr. The PC voted to ratify a decision made via electronic communication, to offer a one year loan for the excavation expense of $2,053.98 for the repair of this service line. The FD will pay this bill as a loan to the homeowner. A Promissory Note, to repay the loan in equal monthly payments was signed by the homeowner and accepted by the PC. Susan, our bill collector, will issue monthly bills for the repayment of this loan. The PC have questions regarding the security for this loan, and asked Les to speak with Jeff Spencer regarding some legal considerations.

Relocation of the curb stop (service shut-off) at #35 Foothills Dr. The cost for fixing the service line mentioned above, is excessive because the curb stop is a) across the street from the customer’s property and b) at a location with a concentration of other utilities. This results in an uncommon cost risk to this home owner and she asked for a curb stop on her property, away from the other utilities. The PC deems this request to be reasonable. The cost will be approx. $550 and will be done after the loan is fully paid. Ann recused herself from voting due to circumstances regarding her curb stop. Lacking a quorum for this decision, a vote was postponed.

Financial Report. Brian provided handouts to review (See attachment). Considering the remaining repair expectations, our financial position look good. We also discussed the expected irregularity of capital replacements and our reserve fund that combines this and our other needs. Brian has explained this at each of our annual meetings where it will be documented in the meeting minutes.

Mission System upgrade. This is a continuation of a discussion at our last meeting. Our system operator provided the PC with details and frequency of the on-line system messages for the past few years. The upgrade will separate out all error messages so that the urgent can be distinguished from the non-urgent. The PC approved this request to spend $1,275 for this upgrade.

Tree planting. The WNRCD (Winooski Natural Conservation District) wishes to plant trees that form a river embankment riparian buffer to help control erosion. We met with their representative for their consideration of our Creek/Browns River property. They have included us in their plans for the 2017 summer planting. The PC agreed to accept their offer which includes a token $50 contribution to their operation. Les will sign and return their agreement document.

Respectfully submitted;

Les Allen, Clerk, JFD#1

Minutes of Prudential Committee Meeting

Jericho fire District No. 1

September 20, 2016

Attendees: Fred Lavenberg, Dan Dube, Sue Grab, John Irving, Ann Koll Lerner, Les Allen

Finances: Treasurer Brian Stevens was unable to attend but sent his report in advance. Of note is a) the 4th qtr. expected Income is not included and b) that less than 66% of the budgeted maintenance expense has been spent; good news.

Charlie Wiegand was paid $1,000 in Aug. for re-grading our lower property road to the filter building. Charlie also gave us a freebee for his $342 expense for brushogging the road to the wellhead.

Sue noted that a $10 late payment for 3rd qtr. was made and will be recorded as a 3rd qtr. Payment.

Technical Stuff: Our system operator, Kirk Patch, requested that we consider an upgrade to our “Mission” system. This is the control unit that among other things, puts out on a web site error messages when they occur. The issue is that some of these error messages were bundled together as a cost reduction of the initial installation. What is occurring is that the un-seriousness of some messages is being masked, resulting in unplanned and unnecessary trips to investigate the cause of messages. Kirk provided an estimate from Champlain Associates Inc. for the upgrade at $1,275. The discussion concluded with the PC asking for an estimate of the number of, or frequency of occurrences, to better understand the cost vs benefit. Les will follow-up with Kirk for this request.

The cause for two system leaks was discussed. Because a wellhead leak has occurred for the 3rd time, It has been speculated that vibration from the off/on well pump may have contributed to the pipe breaks. After sufficient discussion it was decided that cause conclusions will be considered after this 3rd leak is investigated.

System vs customer cost responsibility for service line repairs. In Aug. a water accumulation on Foothills Dr. at the foot of our reservoir property, was determined by a chlorine test to be drinking water (not rain or ground water). A contractor was hired to dig (carefully) through a maze of cables and wires at this location. The leak was found to be in the service line for #35 Foothills Dr. thus the homeowner’s responsibility for the $2,000 + excavation bill. The home owner was presented with this bill, a copy of the section of our Water System Rules and Regulations pertaining to this division of responsibilities, and with our operator’s report of the leak finding and fix in the customer service line.

This was discussed at this meeting because the homeowner has not responded to us regarding the disposition of the bill, as we had requested. It was decided that the PC should more formally submit a written request to the home owner. Fred Lavenberg will do this. It was also decided that we should contact the Municipal Assistance Center of the VLCT (Vermont League of Cities and Towns) for advice regarding the requirements that we, as a municipality, must meet in this situation. Les offered to do this.

Web changes. Dan Dube has made two changes to our web site. First is the addition to the main page of a direct access to the Rules and Regulations. The second, is an addition to the section of our R & R on billing to indicate that we bill forward, for services to be provided. This has been a cause for confusion at home sale closing.

Riparian buffer opportunity. Fred, Ann and Les met on 9/1/16 with Holly Kreiner from WNRCD (Winooski Natural Resource Conservation District) with regards to their desire to plant trees along creek and river banks where these plants will assist in preventing bank erosion. We received an informal positive response. We expect it to be followed by a formal request/proposal for us to accept their offer to do this planting next summer on the banks of both the Browns River and the Creek.

Respectfully submitted;

Les Allen, Clerk, Jfd#1