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Monday, April 9, 2012

Trustee Meeting Minutes - April 9th, 2012

SWANTON VILLAGE BOARD OF TRUSTEES
SWANTON VILLAGE MUNICIPAL COMPLEX
120 FIRST STREET
SWANTON, VT 05488


MINUTES
BOARD OF TRUSTEES REGULAR MEETING & PUBLIC HEARING
Monday, April 9, 2012
7:00 PM
PRESENT: Ronald Kilburn, Village President; Chris Leach, Trustee; Eugene LaBombard, Trustee; Adam Paxman, Trustee; Reginald Beliveau, Village Manager; Lynn Paradis, Assistant Village Manager; Dianne Day, Village Clerk/Administrative Assistant; Trish Foote, Staff Accountant; Marc Longway, Billing Clerk; Katie Judd, Customer Service Clerk; Brian Savage, Michel Consejo, and Ch. 16.
Ronald Kilburn, Village President, welcome all to the Regular Board of Trustees Meeting and Public Hearing and called the meeting to order at 7:00 p.m.
UNLESS OTHERWISE NOTED, ALL MOTIONS ARE CARRIED UNANIMOUSLY
The Board decided to hear Item #3 first.
3. Public Hearing to Discuss Electric Lien Process – Application for Service, Meter Deposits/Credit References, Billing Process, Disconnects, Liens:
Application for Service – Katie Judd:  Katie explained the process for setting up a new customer for Electric service with the Village of Swanton. She said the basic information needed is the location of the property, the landlord’s name, the last tenants name to ensure the correct meter and then their personal account information such as proof of ID, phone numbers, mailing address, etc. She then explained how a meter deposit is figured if that customer cannot get us a letter of credit.
The only forms of credit references are either from a previous utility company, a cable television company or a letter from their bank stating they have had a checking account for more than one year with no overdrafts within the last 12 months. If that customer can’t get one of those references she explained that we take the last 12 months of utility bills at that location and take an average of those bills and times it by two so that we have at least two months worth of electric bills on deposit. She explained that we break that deposit into three payments and that all these rules are given to us by the Public Service Board.
Gary Rice asked more about how the deposits are figured and what is allowed for letters of credit. Harold Garrett asked about paying one third of the deposit up front. Katie explained this process again.
Billing Process – Marc Longway: Marc explained that all electric meters are read on a monthly basis and that those readings are entered into the computer system to calculate a customer’s bill for the month. He explained how each property has a location number and each customer has a customer number assigned to them. He explained that a KW is energy used at a point in time and that KwH is energy used over time. Marc explained our residential rates and our residential demand rates. He explained that if a residential customer uses over 1800 kwh’s in a month’s time for two consecutive months, that customer would end up on a residential demand rate. That rate has a higher customer charge and once put on a demand meter the customer would remain on that rate for 12 months. He explained how a customer could come off those rates by demonstrating a kwh usage of below 1800 and a demand below 8 for 12 months. Once that was done the customer could then come off demand rates.
Raymond Roy asked how a customer can come off demand rates. Chris Leach asked what the average household uses per month for kwh, Marc explained approximately 700 to 800 kwh’s per month and said out of approximately 3,600 customers there are about 200 on demand rates.
Disconnects – Trish Foote: Trish explained the process of printing disconnects on a weekly basis for every “route” in our system. She stated that on average we print approximately 650 disconnects on a monthly basis. She further explained that if a customer is delinquent more than $50 a disconnect notice would be printed advising that customer they have a certain number of days to pay that bill or their electric service would be disconnected. She explained that she looks over these accounts and then makes phone calls to these customers reminding them of their past due  balance. She said she disconnects approximately 20 to 30 customers per month.
Trish explained how the Public Service Board governs our disconnect rules and that we have to follow their guidelines such as letting a customer have two signed agreements per year. She explained the complexity of disconnecting customers for non-payment. She said once disconnect notices are printed she looks through them and decides at that time who she is going to shut off. She then generates a list of these customers who have a large past due balance and thinks a lien should be placed on the property which she then gives to Dianne to further research. Also by calling these customers and talking with them she agrees to a payment plan with them and explained how we are always willing to work with a customer to help them pay their past due balance.
Gary Rice asked her about how many additional days a customer has at the time a disconnect notice is printed. Matt Juaire also asked how the payment plan worked.
Shawn Cheney  asked that if a landlord is ultimately responsible for a tenants unpaid electric bill if the landlord could be attached to their account so that they receive a copy of their disconnect notice as well. Trish explained our billing system does have that ability and she would contact Cogsdale to get that piece up and running. She explained the tenant would have to give permission to have the landlord attached to their account. This is called the verification form signed by tenants giving landlords access to their account to make sure they are paying their bills. She emphasized the importance of these forms and getting them signed by the tenants.
Stewart Bennett, Attorney for the Landlord Association, said he has contacted the Vermont Leagues of Cities and Town and the Public Service Board about this issue. He discussed the Statutes of Fraud in Vermont as well.
Chris Leach stated that as a Village Trustee he is concerned about collecting these bills. He said the Village of Swanton has approximately$89,000 placed in liens and that by collecting these funds is key to keeping our electric rates the lowest in the State of Vermont. He said he is frustrated with the liberal actions of the Public Service Board and the rights they give to tenants not paying their bills. He said it is not fair to go five months without paying their electric bills. He said owning rental property is a legitimate business and there needs to be laws that allow the income to come in and that the legislature needs to get stricter about this. He said maintaining these low rates remains to be a struggle.
Gary Fadden stated that the Trustees went to the legislature to get approval for their Charter update. Michel Consejo also responded to this and explained the Charter update approval process in the legislature. Brian Savage also responded and said he has very little use for the Public Service Board and that they are too far reaching. He explained the Charter update process and said it is pretty much boiler plate and that if the Village residents approved it then the legislature would do so as well.
Electric Lien Process – Dianne Day:  I advised the public that Swanton Village updated their Charter in 2009 and one of the updates was to place liens on property owners for unpaid electric bills. I stated that in the year prior to the Charter update we held several board meetings discussing the changes and that we held three public hearings before the vote and had zero attendance. I explained that on March 23, 2009 the Village registered voters approved this Charter change and on May 18, 2009 the State Legislature gave their approval as well.
I explained to the Public that once Trish has gone through her disconnect notices she gives me a list of accounts that need further research. I explained that if a customer is delinquent more than one or two bills a lien would need to be placed on that property owner. I also explained that any customer holding an electric account delinquent would have a lien placed on them, that this does not just affect tenants and landlords. I said I have several liens on homeowners as well as businesses.
 I stated that the liens are placed at the Town Clerks office in which the property is located and that in order to collect funds left by a tenant we recommend the landlord not pay the lien right away. I said it is very likely the tenant would need service set up elsewhere and at that time I would collect the funds they left on a previous property and would then be able to release the lien on the landlord. I explained how important it was to have tenants sign the verification forms giving their landlord access to their electric account and that once these forms were signed we needed copies of it held in our office. I said the landlords needed to take some extra time to contact us to check on the account to see if it was being paid in a timely manner, that Swanton Village would not contact them. I also emphasized the importance of landlords contacting us to let us know who they are renting to and who is allowed to set up service. That way tenants aren’t allowed to put the account is someone else’s name because they may owe us money from a previous location. The key to this is communication between landlords and the Village of Swanton.
I informed the public that if their tenant is receiving Section 8 funding they are legally required to keep their utilities paid and if they are not doing so they could possibly lose their funding. I said that landlords could contact us at any time to ask the monthly average usage of an apartment in case they wanted to get a utility deposit from their tenant. I also informed them that we do not report to any credit bureau at this time.
I further explained that in 2011 the Village of Swanton collected over $11,000 in liens and that so far this year we’ve collected over $9,000 and this helps keep our rates down. I advised that the Village of Swanton was the ninth municipality to adopt this Charter change and that this is one way of keeping our rates the lowest in the State. I said that once a lien has been paid in full it is released and a copy of that release is sent to the land owner.
Ronald Kilburn advised we take a 10 minute recess at this time and then resume our regular meeting to address item #1 and #2.
1. Approve and accept the Minutes from Thursday, March 22, 2012 Special Meeting and Minutes from Monday, March 26, 2011 Regular Meeting:
Adam Paxman made the motion to accept the Minutes of both the March 22 and March 26, 2012 meetings. Chris Leach seconded. Motion carried.
2. Approve the following Warrants: Warrant #403 for $569,246.05; Warrant #404 for $294.10; Warrant #405 for $7,800.00; Warrant #406 for $146,991.49; Warrant #407 for $480.00; Warrant #408 for $271,579.23; Warrant #409 for $499.05; Warrant #410 for $39,407.46; Warrant #411 for $440.11; and Warrant #412 for $1,667.11.
Chris Leach asked about vendor Brian Derry, Lynn advised he put the new roof on the Waste Water Plant. He also asked about vendor VT Dept. of Corrections and we advised they printed our Village Reports. Eugene LaBombard made the motion to approve and accept Warrants #403 through #412 as presented. Adam Paxman seconded. Motion carried.
4. Any Other Necessary Business:
The Board advised they would like to schedule a Joint Legislative Body meeting in the very near future and stated they would choose a date at their April 23rd meeting.
Any Other Business:
 Eugene LaBombard asked how many water disconnects we did compared to electric disconnects. We told him there were many more electric disconnects.
ADJOURN: Adam Paxman made the motion to adjourn the Regular Board of Trustees Public Hearing and meeting at 9:15 p.m. Chris Leach seconded. There being no further business at hand Ronald Kilburn, Village President; adjourned the Regular Board of Trustees meeting at 9:15 p.m.
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Ronald Kilburn, Village President                                Date
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Dianne Day, Village Clerk                                           Date