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HomeMy WebLinkAbout2014 - BoardCommissionAuthorityMinutes_20140210 S I �G ,,, Chris Swope Lansing City Clerk cHIGA February 7, 2014 Members of the Lansing City Council 10th Floor City Hall Lansing, MI 48933 Dear Councilmembers: The Minutes from the Meetings of the following Boards, Commissions, and Authorities of the City of Lansing were placed on file in the City Clerk's Office and are available for review in the City Clerk's Office and on the City Clerk's website (www.lansingmi.gov/clerk) under the heading of "Documents Placed on File." BOARD NAME DATE OF MEETING Board of Police Commissioners November 19, 2013 December 17, 2013 Board of Water & Light Board of Commissioners November 19, 2013 January 7, 2014 If my staff or I can provide further assistance or information relative to the filing of these minutes, please contact us at 483-4131. Sincerely, Chris Swope, CIVIC Lansing City Clerk Lansing City Clerk's Office Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695 517-483-4131 c 517-377-0068 FAX www.lansingmi.gov/clerk ❑ clerk@lansingmi.gov ��r s Inc Lansing Police Department Board of Police Commissioners 120 West Michigan Avenue Lansing, MI 48933 , Phone: (517) 483-4600 (TDDNoice) err �r I �l Fax: (517) 377-0162 Virg Bemero,Mayor Chief Mike Yankowski i BOARD OF POLICE COMMISSIONERS MEETING MINUTES TUESDAY, NOVEMBER 19, 2013 MEMBERS PRESENT: OTHERS PRESENT: Commissioner Sandra Kowalk-Thompson, Chair Mike Yankowski, Chief of Police Commissioner Patty Farhat Vice-Chair Bernard Brantley, Commission Investigator Commissioner Bob Noordhoek Bill Kim, Legal Advisor Commissioner Jan Kolp Michelle Reddish, Secretary r-~- Commissioner Bill Renfrew Dr. Joan Jackson Johnson, Human-'Rely ns Commissioner Clyde Carnegie a, --q MEMBERS EXCUSED: MEMBERS OF THE PUBLIC{GUESTlu Commissioner Drew Macon Regina Wilson, Human Resources Cn'-. Commissioner Maria Mejorado ___q t-rj CALL TO ORDER -- CommissionerKowalk-Thompson: After having established a quorum, Commissioner Kowalk-Thomp§bn called the meeting to order at 5:35 p.m. Commissioner Renfrew led the Pledge of Allegiance. Commissioner Kowalk asked for a moment of silence. PUBLIC COMMENT ON AGENDA ITEMS Commissioner Kowalk-Thompson: None. ADDITIONS TO THE AGENDA Commissioner Kowalk-Thompson: None. SPECIAL PRESENTATION Commissioner Kowalk-Thompson: None. APPROVAL OF MINUTES Commissioner Kowalk-Thompson: The Board reviewed the September 17, 2013, Minutes. A few minor grammatical errors were suggested for editing which Michelle Reddish noted. Commissioner Renfrew made a motion to approve the September Board Meeting Minutes; supported by Commissioner Kolp; approved unanimously. The minutes of the regular meeting of September 17, 2013, were approved and placed on file with the Lansing City Clerk. EDUCATION PRESENTATION Regina Wilson, Human Resources, City of Lansing: Regina Wilson presented the board with a copy of a Power Point presentation regarding the Lansing Police Department's (LPD) Hiring and Recruiting (See attached). Regina explained the process from start to end pertaining to the hiring process for Police Officer I (POTs). Questions were answered throughout the presentation. Commissioner Kowalk-Thompson thanked Mrs. Wilson for a very informative presentation. Board of Police Commissioners Meeting Minutes of September 17,2013 Page 2 ADMINISTRATIVE REPORT Chief Mike Yankowski: • Two K-9's retired in September, Officer Beth Larabee/Sarge and Officer Frank Mobley/Shadow. There are seven teams with the potential of an additional four dogs retiring within the next year. There are six openings in the Detective Bureau, which includes the Cold Case Detective. Currently there are 183 employees and with four new PO'1s. • Six new officers have completed GREAT Training. • Sergeant Sue Baylis will be trained on issues pertaining to Homeland Security. A kit for emergency aid was developed and will be carried in the field by all the officers. LPD will be working closely with the Lansing Fire Department on Homeland Security issues. • Attended three community meetings that dealt with crime issues-Westside Neighborhood Meeting where the Sexton shootings were discussed, along with Averill and Moores River Drive Neighborhood Watch meetings. All three meetings were well attended. • Attended a Truancy Assembly at STEM Academy on October 4, 2013. • Attended the Neighborhood Watch Coordinator's meeting at the Foster Community Center where seventy (70) guests were in attendance. Patty Farhat thanked Chief Yankowski for speaking at the event. • The Violent Crime Initiative(VCI) work continues. MSU provided a detective and an agent from MDC who work on VCI issues. Several targets have been picked up. • Applied for a Byrne Grant to attend the DDACTS Program. A speed trailer and signage was obtained. Overtime dollars weren't granted. • Officers Naimy and Berry caught two individuals involved in B&E's. • Detective Mark Lewendosky did great job at the Homicide Trial involving the Sav-On Party Store. • Officer Damian Manson and Officer Brittney Roberts paid for an individual to stay in a hotel who was down on his luck. Both officers are thanked and are great examples of caring individuals. • Attended the PBA Retirement Dinner. • Upcoming Events - ➢ 10/28/13 Trick-or-Treat on the Square ➢ 11/01/13 Dayglo Paint Dance Party ➢ 11/22/13 Silverbells LEGAL ADVISOR UPDATE Bill Kim, Legal Advisor. Bill Kim briefed the four new police officers on procedures and important topics that they'll deal with daily. He reports directly to the City Attorney and is now assigned to one day a week in the 54-A District Court prosecuting cases for the City. Bill stated he is working on improving communication with LPD and the City Attorney's office. He has researched and produced a Training Bulletin regarding dog related issues, he is making sure the policy is in line with Miranda Rights and he is making sure the policy for Use of Force is in line pertaining to tasers. HUMAN RELATIONS AND COMMUNITY SERVICES LIAISON Dr. Joan Jackson Johnson: • The past few weeks have been challenging in regards to assisting people who rely on the system for help with utility payments. • A partnership was developed with the Department of Human Services, the City Attorney and the Lansing Housing Commission in regards to the Eviction Diversion Program. A PILOT Pre-Eviction Division Program will be started which will include mandatory participation in the form of teaching programs. • The Mobile Food Pantry will be held at Trinity Church on Holmes Road. • The Community Connect event was held last week. • Special thanks to Bernard Brantley for everything he does to help. • Meet the Need Program is being started through the churches. FRATERNAL ORDER OF POLICE Commissioner Kowalk-Thompson: No representative present. Board of Police Commissioners Meeting Minutes of September 17, 2013 Page 3 UNFINISHED BUSINESS Commissioner Kowalk-Thompson: None. CORRESPONDENCE SENT AND RECEIVED Commissioner Kolp made a motion to receive and place on file correspondence for the month of September; Commissioner Carnegie supported the motion; carried unanimously. DEPARTMENT REPORTS Commissioner Kolp made a motion to receive and place on file department reports for the month of September; Commissioner Farhat supported the motion; carried unanimously. BOARD COMMITTEE REPORTS Gov'tiCommunity Liaison Committee Commissioner Kowalk-Thompson There have been several retirement plaques presented from the board to employees at their retirement parties. Awards & Incentives Committee 'i Commissioner Noordhoek Nothing to Report. Budget Committee Commissioner Renfrew Nothing to Report. Dr. Carnegie stated the Budget Committee will be entering into a new system. He stated it would be good to know, ahead of time, on how the budget process will work and how the meetings will proceed. Complaint Committee Commissioner Farhat There was not a meeting in September because two parties were ill. The meeting is rescheduled to November 7, 2013. Commission Investigator Report Bernard Brantley Nothing to report. COMMISSIONER'S COMMENTS Commissioner Kowalk thanked Dr. Joan Jackson Johnson for the work she did on the Kids Connect event. OTHER BUSINESS/DISCUSSION ITEMS Commissioner Kowalk-Thompson verified that Commissioners had received and reviewed a copy of Mayor Bernero's letter to appoint Mike Yankowski to Chief of Police, effective October 21, 2013. A discussion ensued. Commissioner Kowalk-Thompson noted the process of the appointment(below) and read the portion of the Lansing City Charter as it pertains to the Board's role in the appointment; Legal Counsel, Bill Kim obliged the Board in confirming the language in the charter. • The Mayor forwards a letter to the Board of Police Commissioners announcing his decision to make the appointment for Chief of Police. • The Lansing City Charter requires the Board of Police Commissioners be consulted on the appointment of the Chief of Police. • The Board discusses the appointment and votes to approve or deny. • A letter is drafted and forwarded to the Mayor regarding the Boards' decision. A motion was made by Commissioner Noordhoek to approve the Mayor's letter appointing Interim Chief Mike Yankowski to Chief of Police; supported by Commissioner Renfrew and Carnegie. The Commissioners present Boa,d of Police Commissioners Meeting Minutes of September 17,2013 Page 4 (5)voted unanimously to support the Mayor in his appointment of Interim Chief Michael Yankowski as Chief of Police. PUBLIC COMMENT None. ADJOURNMENT Commissioner Kowalk-Thompson: There being no further business to discuss, meeting adjourned at 7:15 p.m. Lansing Police Department Board of Police Commissioners 120 West Michigan Avenue Lansing, MI 48933 Phone: (517) 483-4600 (TDDNoice) I C Fax: (517) 377-0162 Virg Bernero,Mayor Chief Mike Yankowski BOARD OF POLICE COMMISSIONERS MEETING MINUTES TUESDAY, DECEMBER 17T", 2013 MEMBERS PRESENT: OTHERS PRESENT: Commissioner Sandra Kowa]k-Thompson, Chair Mike Yankowski, Chief of Police Commissioner Patty Farhat Vice-Chair Bernard Brantley, Commission Investigator Commissioner Bob Noordhoek Bill Kim, Legal Advisor Commissioner Jan Kolp Michelle Reddish, Secretary Commissioner Bill Renfrew Dr. Joan Jackson Johnson, Human Relations Commissioner Clyde Carnegie Commissioner Drew Macdn MEMBERS OF THE PUBLIC/GUESTS: MEMBERS EXCUSED: Commissioner Maria Mejorado CALL TO ORDER w Commissioner Kowalk-Thompson: After having established a quorum, Commissioner Kowalk-Thompsron catlsd tl meeting to order at 5:35 p.m. Commissioner Renfrew led the Pledge of Allegiance. Commissioner Ko f as wed fMa moment of silence for Kathy Winslow. C7 PUBLIC COMMENT ON AGENDA ITEMS - � Commissioner Kowalk-Thompson: None. t� ADDITIONS TO THE AGENDA Commissioner Kowalk-Thompson: None. SPECIAL PRESENTATION Commissioner Kowalk-Thompson: None. APPROVAL OF MINUTES Commissioner Kowalk-Thompson: The Board reviewed the November Minutes. Commissioner Noordhoek made a motion to approve the November Board Minutes; supported by Commissioner Renfrew; approved unanimously. The minutes of the regular meeting of November 19, 2013, were approved and placed on file with the Lansing City Clerk. EDUCATION PRESENTATION Bill Kim, Legal Advisor gave a presentation on Why LPD officers get sued and how the City sets out to defend them. The presentation was very informative. Board of Police Commissioners Meeting Minutes of December 17, 2013 Page 2 ADMINISTRATIVE REPORT Chief Mike Yankowski: • Silverbells was a success with just under 100,000 citizens in attendance • Two Police Officer Informational sessions were held • Three new hires started and will attend the post-academy in January • POI process is continuing • Olds Newsboys • Shop With a Cop • Helping Heroes at Target • No Senior Left Without Christmas • TRIAD Christmas Baskets • Promotional/Retirement Ceremony • Kathy Winslow passed away • Rich Bailor's mother passed away • VCI had an outstanding month • Interviews were held for the Budget Supervisor position • January and February promotional exams will be held for Sergeant, Lieutenant and Captain • A double-homicide took place. Officers and fire department personnel were debriefed. LEGAL ADVISOR UPDATE Bill Kim, Legal Advisor. None. HUMAN RELATIONS AND COMMUNITY SERVICES LIAISON Dr. Joan Jackson Johnson: • The Mobile Food Pantry was held at Breadhouse Church • This Saturday about 50 families will get to shop for Christmas • Dr. Johnson thanked Bernard Brantley for his work • Christmas will be at Advent House FRATERNAL ORDER OF POLICE Commissioner Kowalk-Thompson: No representative present. UNFINISHED BUSINESS Commissioner Kowalk-Thompson: None. CORRESPONDENCE SENT AND RECEIVED Bob Noordhoek made a motion to receive and place on file correspondence for the month of November; Commissioner Carnegie supported the motion; carried unanimously. DEPARTMENT REPORTS Commissioner Noordhoek made a motion to receive and place on file department reports for the month of November; Commissioner Renfrew supported the motion; carried unanimously. BOARD COMMITTEE REPORTS Gov't/Community Liaison Committee Commissioner Kowalk-Thompson Nothing to Report. Awards&Incentives Committee Commissioner Noordhoek Nothing to Report. Board of Police Commissioners Meeting Minutes of December 17, 2013 Page 3 Budget Committee Commissioner Renfrew Nothing to Report. Complaint Committee Commissioner Farhat The Committee will meet in January. Commission Investigator Report Bernard Brantley Nothing to report. COMMISSIONER'S COMMENTS Commissioner Kowalk-Thompson thanked Chief Yankowski for his professionalism and the time he devotes to his job. Commissioner Kolp stated the New Hire reception is scheduled for February 19 at the University Club. Elizabeth Reust did an outstanding job at the department. She wasn't able to attend the Promotion and Retirement celebration. She appreciates Chief Yankowski for his outstanding leadership. Commissioner Farhat wished everyone a Merry Christmas. Dr. Clyde Carnegie sated Lansing was at its best during Silverbells. He thanked Jan Kolp for planning the New Hire reception and is also thankful for Chief Yankowski, Sandra Kowalk-Thompson, and Bill Kim. Commissioner Noordhoek is thankful for Chief Yankowski and the new and exciting things that are happening to the department. Commissioner Macon wished everyone a Merry Christmas. He stated he was at Shop with a Cop and will be teaching the GREAT Program. OTHER BUSINESS/DISCUSSION ITEMS None. PUBLIC COMMENT None. ADJOURNMENT Commissioner Kowalk-Thompson: There being no further business to discuss, meeting adjourned at 7:15 p.m. I APPROVEDBYTRE BOARD OF COMMISSIONERS ON 4 JANUARY28,2014 Mam.own Peoge.nemewwn rower. MINUTES OF THE BOARD OF COMMISSIONERS' MEETING � IV LANSING BOARD OF WATER AND LIGHT .November 19, 2013 o ac t-'ri The Board of Commissioners met at the BWL Headquarters-REO Town Depot loca�d a'�:120P S. Washington Ave., Lansing, MI, at 5:30 p.m. on Tuesday, November 19, 2013. cn a Chairperson Sandra Zerkle called the meeting to order at 5:30 p.m. Present: Commissioners Margaret Bossenbery, Dennis M. Louney, Anthony McCloud, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: Commissioner Tony Mullen The Corporate Secretary declared a quorum present. Commissioner Ward led the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Commissioner Price, seconded by Commissioner Ward to approve the Regular Board Meeting minutes of September 24, 2013. Action: Carried Unanimously PUBLIC COMMENTS MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO IMMEDIATELY PRIOR TO ADJOURNMENT. There was no Public Comment ------------------ COMMUNICATIONS a. E-mail from customer, F.Stephens, regarding electric bill itemization REFEFFED TO MANAGEMENT AND RECEIVED AND PLACED ON FILE COMMITTEE REPORTS COMMITTEE OF THE WHOLE October 8, 2013 The Committee of the Whole of the Lansing Board of Water and Light met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:30 p.m. on Tuesday, October 8, 2013. I Regular Board Mtg. November 19,2013 Page 2 of 21 Committee of the Whole Chair Dennis M. Louney called the meeting to order and asked the Corporate Secretary to call the roil. Present: Commissioners Dennis M. Louney, Margaret Bossenbery, Tony Mullen, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: Commissioners Anthony McCloud and David Price Public Comments There was no Public Comment Approval of Minutes Motion by Commissioner Thomas, Seconded by Commissioner Ward to approve the Committee of the Whole meeting minutes of September 10, 2013. Action: Motion Carried Facilities Updat General.Manager Lark introduced Scott Scott Hamelink, Manager of Water Productions. Mr. Hamelink , provided background and upgrade information on the Board of Water and Light's (BWL) water production facilities, both Dye Water and the Wise Road Conditioning Plants. ° Dye Water Conditioning Plant The Dye Water Conditioning Plant located on Cedar St. has been in production since 1939. This facility is capable of producing 40 Million gallons of drinking water a day. He reviewed a list of Capital/Construction Projects. Some of the projects include: o Major renovations to the exterior of the plant and landscaping o Refurbishment of raw water manhole o Installation of a new 10 million gallon distribution pump o Installation of an Elevator o LED Lights ° Wise Road Conditioning Plant The Wise Road Conditioning Plant located on Wise Rd. has been in production since 1966 and it is capable of pumping about 10 million gallons of drinking water a day. In 2011 there was an incident that destroyed much of the plant's equipment and wiring. The water plant has been under renovation since the incident and it is expected to be complete early next year. The reconstructed facility will be a State of the Art plant when finished and will be set for the next 50 years. Regular Board Mtg. November 19,2013 Page 3 of 21 ■ Other Water Facilities/Information The Hewitt Rd. Reservoir has been newly painted and in the process of having the BWL logo put on it. Mr. Hamelink thanked his staff for all of their work. ■ Erickson Power Plant/Station General Manager Lark introduced Debbie Allen, Manager of the Erickson Power Plant. Ms. Allen provided a facilities update on the Board of Water and Light's (BWL) Erickson Power Plant located on Canal Rd. She stated that the Erickson Power Plant has been in service since 1973 and is a one unit, one turbine, one boiler generator that produces 165 megawatts of electricity and is the largest single unit for the BWL. Ms. Allen stated that the Erickson Plant has gone 337 days without a lost time injury and the Plant has been on line for 184 consecutive days, which is a credit to Doug Wood, Executive Director of Electrical Operations, who implemented a Work Management System, that has proven to be instrumental in keeping their facility on line for long durations of time. Capital Projects at Erickson include: o Installation of a new Fire Pump o Removal of Fly Ash and Bottom Ash from Erickson's ground o Creation of Hydrobins to collect the Ash Ms. Allen thanked her staff for their work and the Administration for their support. ■ REO Town Cogeneration Plant General Manager Lark introduced Roberto Hodge, Manager of the REO Town Cogeneration Plant. Mr. Hodge stated that the REO Cogeneration Plant went live on July 1, 2013 and has the capability of 100 megawatts of power; it has two combustion turbine engines that are capable of producing about 340,000 pounds of steam. Mr. Hodge stated that the Plant is up and running but is going through the tuning phase of a new facility. ■ Chilled Water Plant Mr. Hodge briefly spoke about the Chilled Water Plant located at the corner of Allegan and Pine St. This Plant has 4 electric chillers that are capable of producing 8,000 tons of chilled water. This facility has 100% availability and has had no down time at all. Capital Projects at Roy E. Peffley Chilled Water Plant include: o Upgrade Hardware at customer sites o Upgrade Software for main computers J Regular Board Mtg. November 19,2013 Page 4 of 21 General Manager Lark stated that the BWL's entire chilled water steam customer base is serviced out of this facility, as a result of the steam units at the Ottawa station being taken out of service. Mr. Hodge thanked the Administration, his staff and the Union Workers for all of their work and support. ■ Eckert Plant General Manager Lark introduced Tom Dickinson, Manager of the Eckert Plant. Mr. Dickinson, stated that the Eckert Power Station was built in the 1950's and is the oldest operating plant at the BWL. He said currently Units 4, 5 and 6 are off line and that Moores Park's 4 steam boilers have already been closed. Mr. Dickinson said if the BWL did not run Units 1, 2, 3 and Moores Park it would save 350,000 tons of coal being burned each year. Mr. Dickinson provided information about SAFE, a new implementation at the Eckert Station " which stands for System Audit Facility Evaluation. This system goes through all of the trip and safety mechanisms of the boilers, turbines and generators to make sure the system is safe and reliable. Capital Projects at Eckert Plant include: o Turbine Generator Oil Containment o Cooling Tower Header Replacement ■ Substations General Manager Lark introduced George Stojic, Executive Director of Strategic Planning & Development Mr. Stojic discussed the role that substations play to the Board's electric system. He noted that they both transform power from high voltage, used in transmission, to low voltage, used by customers and play and important role in maintaining electric reliability. According to Mr. Stojic, the Board has 13 substations but two, Enterprise and Davis, are particularly important because they are the interconnection points between the Board's electric system and the interstate transmission grid. These substations allow the Board to buy and sell electric energy and capacity in the Midwest markets, import its Belle River power entitlements, and contribute to maintaining electric reliability. Since the '2003 blackout, the Federal government has adopted mandatory reliability standards which, among other things, impact the Board's role as a transmission owner and operator. The standards require the Board to plan for two major sequential contingencies, which include the loss of both interconnections. To meet its reliability requirements under those conditions, the Board needs to maintain Eckert units 4,5, and 6 in an operational state. Mr. Stojic noted, however, that environmental compliance requirements, including the mercury and air toxics rule, the cross state pollution rule, and the anticipated greenhouse gas rules for existing generation units may require the Board to make significant investments in the Eckert units to comply. If Eckert 4, 5, and 6 are removed from service, the Board could no longer comply with mandatory reliability standards. To meet the reliability standards, staff is Regular Board Mtg. November 19,2013 Page 5 of 21 planning for a third interconnection. The process of securing a new interconnection can be time consuming, with Mr. Stojic predicting that it could take three years to complete. The staff has already spent over a year studying two possible routes; neither of which worked out. The staff is now working with ETC, Consumers Energy, and MISO on adding another interconnection at either Enterprise or Davis substations. Mr. Stojic acknowledged and thanked staff who have been working on the project. ® Renewable Energy Plan George Stojic, Executive Director of Strategic Planning and Development, gave the Commissioners an overview of the Board's renewable energy program. He began by noting the Board adopted a strategic plan 5 or 6 years ago that set a goal of meeting all electric demand growth with renewable energy and energy efficiency programs. Mr. Stojic described the Board's plan as a more comprehensive clean energy plan, of which renewable energy was only one component. He noted that the Board received numerous form letters advocating a community energy planning process to ensure that the Board could meet its 2015 renewable energy compliance deadline. He noted, however, that because the Board was the first Michigan utility to adopt a renewable energy requirement, it was already compliant through 2016. According to Mr. Stojic, renewable technology is changing rapidly and the cost of renewable options is falling, so there is an advantage to timing renewable acquisition to take advantage of these changes. Mr. Stojic noted that the Board has a well diversified renewable energy program. The program consists of the Cedar Street solar array, initially Michigan's largest and soon to be expanded, two highly reliable landfill gas contracts, providing both capacity and energy directly to the BWL system, a refurbished BWL hydro unit at Moorse Park, a purchase power agreement (PPA) with a second hydro in northern Michigan, and a recently signed PPA with a wind energy farm in Gratiot County. Mr. Stojic noted, however, that the Board's commitment to renewable energy goes well beyond those projects. The BWL has a net metering program that allows customers to install their own renewable options to offset utility bills. This year, the BWL offered incentives to businesses installing their own solar projects and these incentives could be combined with the net metering program. This combination will be offered to residential customers next year. Our goal is to encourage more solar installations in the Lansing area. BWL staff is also studying community based solar projects for possible adoption next year. Mr. Stojic also noted that the Board had a number of firsts to its credit. It was one of the first utilities in the country to test torrified biomass as a replacement to coal. The BWL's test, at its Erickson station, was believed to be the nation's largest at the time. The BWL was the State's first to implement a community based plug-in hybrid vehicle program, which served as a template for other utilities. The BWL is undertaking a distribution automation program called voltvar control under the auspices of Wayne Lynn, Manager of Electric Systems Integrity. This is designed to reduce the load on congested circuits to make our distribution system much more efficient and reliable. The BWL has installed a regenerative hydrogen fuel cell as a pilot program to control demand by drawing power at night, when our loads are low, and returns it to us'in the afternoon when we need it the most. The BWL was the first Michigan utility to adopt a comprehensive energy efficiency program. So the BWL has a number of undertakings to improve the efficiency, productivity and the reliability of its transmission and distribution system and in the process manage system demand and reduce Regular Board Mtg. November 19,2013 Page 6 of 21 energy needs. Mr. Stojic noted that the BWL is one of the State's largest water distribution utilities and has been working to improve the energy efficiency of that water distribution system. Mr. Stojic also discussed the BWL's new REO Town investment. The new plant eliminates the need for 350,000 tons of coal and helps the BWL reduce its greenhouse gas emissions by 20%. He noted that the President suggested the U.S. reduce its greenhouse gas emissions 17% by 2020 and that the BWL has already exceeded the President's goal. According to Mr. Stojic, the BWL's diversified program helps meet three planning goals: environmental Stewardship, affordability and reliability. For example, if the BWL attempted to replace Eckert, Units 4, 5, and 6, consisting of just over 210 megawatts, with wind energy it could not do so with 200 megawatts of wind energy. A PPA for 200 megawatts of wind energy would result in most energy production in the late winter and spring months, when the BWL's electric demand is comparatively lighter. This would cause the BWL to sell much of it in the market at a loss or require transmission to Lansing. Mr. Stojic indicated that transmission costs can be very expensive. On the other hand, when electric demand is the highest in summer, MISO credits wind energy with only a 13% capacity value, so that 200 megawatts of wind energy would only be counted as 26 megawatts of generating capacity for reliability purposes. The difference, 174 megawatts would need to come from elsewhere. Eckert units 4, 5, and 6 meet that 174 megawatt requirement, so they would still be needed if BWL tried to replace them with an equivalent amount of wind energy capacity. The result is costs for both 200 megawatts of new wind energy and the cost of retaining the Eckert units in operational status or replacing the units additional generating capacity. Doing so would result in an unbalanced strategy of giving up either reliability or affordability unnecessarily. For this reason, the route the BWL has taken has been deliberate balancing of all three goals in implementing its renewable energy plan balance. Mr. Stojic concluded with a quote from President Obama "it is all of the above" when meeting the nation's energy needs. ® Hazel St. Water Laboratory General Manager Lark said that here at the BWL we operate our own water lab and we are very proud of that because most water facilities farm their water out for testing. With that being said, General Manager Lark introduced Mark Matus, Manager of Environmental Services and Jennifer Hamel, Environmental Services Lab Supervisor. Mr. Matus stated that the water lab is located on Hazel St. and is equipped with state of art sophisticated equipment that is used by 4 top notch chemists. The chemist tests the BWL's water about 16,000 times a year, 365 days a year without fail. Mr. Matus stated that the BWL was recently audited by the State of.Michigan and passed the audit with flying colors and received certification. General Manager Lark thanked all of the Managers and their staff who presented information at tonight's meeting and for doing a great job. Neighborhood Environmental Award (DEQ)/ Energy Savings Awards (BWL) General Manager Lark informed the Commissioners that the BWL received the Neighborhood Environmental Award from the Department of Environmental Quality. Mr. Lark stated that he is proud of the BWL for receiving this award as it reflects the work that was done in 2012, particularly the "Adopt A River" and the "Pollution Prevention" programs. Regular Board Mtg. November 19,2013 Page 7 of 21 General Manager Lark stated that the Energy Savings Award is recognition by the BWL of certain customers who have undertaken outstanding energy saving efforts by using our energy efficiency programs. The Lansing School District, Ashley Rider and General Motors are recipients of this award for their efforts resulting in saving over 1 million kilowatts hours of usage. Clean Water Action Mary Brady, Campaign Organizer for Clean Water Action, said there are two reasons that they wanted to make a presentation to the Board. The primary reason is to open up the lines of communication between the environmental community, the general community, the BWL, the Board of Commissioners and the BWL employees. The second primary reason for meeting is to share some background on what they are working on and how they would like to see the BWL look in the future with respect to energy, the environment, and the quality of air and water. Brad van Gilder, Organizing Representative for the Sierra Club, presented a PowerPoint presentation titled "Lansing's Energy Future in a changing utility market". In his presentation Mr. van Gilder offered information on: a History of Coal usage at the BWL ■ Regulatory & Policy Changes/Market Pressure to Change ■ Health Cost — Asthma in Ingham Co./Rates of Hospitalization due to Asthma by ZIP code in Ingham County, Michigan, 2008 to 2010 9 Stationary Pollution Sources impacting Ingham County Residents Mary Brady, spoke about the Michigan Public Service Commission's 2013 Draft Report on Renewable Energy. She stated that she felt some of the important findings from this report were: Michigan could easily meet increased renewable energy targets of 30% or even higher by 2035 with the resources we have here today. Renewable energy is cheaper than almost all other generation options Advances in technology have cut the cost of wind generation in half over the five years RPS has been in place• Michigan could substantially increase its RPS with no impact on reliability Brad van Gilder, stated that the Sierra Club submitted a number of comments regarding the BWL's Renewable Energy Plan and one of the things that was advocated was a public planning process. He stated the importance of public participation and noted that BWL has been more responsive and interactive than other utilities. He also noted that Ingham County recently adopted a Property Assessed Clean Energy Program and participating in the program.would create an opportunity for commercial businesses to interface with the BWL with the goal of implementing some larger solar projects. He also stated that more regulations would likely be coming in the future and questioned how far into the future the Erickson Plant remain cost effect generation, especially as the cost of renewables continues to decline. Regular Board Mtg. November 19,2013 Page 8 of 21 Other Chair Zerkle announced that the BWL is inviting the community to participate in celebrating Public Power Week tomorrow, Wednesday, October 9 from 3-7 p.m. in the REO Town Depot and Cogeneration Plant. This will give the public a chance to check out our new facilities. General Manager Lark announced that on October 10, 2013 City Hall on the Road will be held at the REO Town Depot. Excused Absence Motion by Commissioner Thomas, Seconded by Commissioner Bossenbery to excuse Commissioners McCloud and Price from tonight's meeting. Action: Motion Carried Adlourn On Motion by Commissioner Ward, Seconded by Commissioner Bossenbery, the meeting adjourned at 6:49 p.m. Respectfully Submitted Dennis M. Louney, Chair Committee of the Whole 5 5Tu`h ,P HanHann .pl.�Hom elu+vn Vow.. MINUTES - BOARD OF WATER AND LIGHT PENSION FUND TRUSTEES' ANNUAL MEETING Tuesday, October 8, 2013 Present: Trustees Margaret Bossenbery, Dennis M. Louney, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: Trustees Anthony McCloud and David Price Staff Present: General Manager J. Peter Lark, Susan Devon, Assistant General Manager and Chief Financial Officer, Phil Perkins, Director of Internal Audit, Bill Aldrich, Manager of Finance and Planning, Marilyn Montgomery, Senior Treasury Analyst, Scott Taylor, CPA, CTP, Supervisor, Treasury& Budgeting, Danielle Miller, Executive Office Administrative Assistant and M. Denise Griffin, Corporate Secretary Consultants Present: Merrill Lynch: Marie Vanerian, First Vice President, Institutional Consultant♦ ICMA-RC: Sandra Rouse-Thames, Retirement Plans Specialist The Secretary declared a quorum. Chairperson Zerkle called the meeting to order at 6:58 p.m. On Motion by Trustee Bossenery and Seconded by Trustee Thomas to approve the minutes of the September 11, 2012 Pension Fund Trustees' Annual Meeting Minutes. Action: Motion Carried Regular Board Mtg. November 19,2013 Page 9 of 21 Public Comments There were no public comments. FY2013 Financial Information General Manager J. Peter Lark introduced Susan Devon, Assistant General Manager and Chief Financial Officer. Ms. Devon provided an overview of the different Pension Plans. The packet is broken down by the Defined Benefit Plan, the Defined Contribution Plan and the Post Retirement Benefit Plan (VEBA). Each of the sections in the packet includes general information consisting of the Audited Financial Statements, the Actuarial Study Report and the Investment Policy Statement for each Plan and the Performance of the Plans over the past year. Defined Benefit Plan The Defined Benefit (DB) Plan was closed to.new employees hired after December 31, 1996, There are currently 449 retirees and beneficiaries, 10 terminated employees with vested benefits and 30 current employees in this plan for a total of 489 Plan participants, a decrease of about 18 from last year. Ms. Devon stated that right now,we have $76 million in our plan assets and our liability is about $69 million so we are overfunded by$8 million. But if our discount rate goes down by 1% as may be required by GASB Pension Accounting Standards the liabilities go up by$7 million. That is something we are taking a closer look at. The DB Plan investment earnings reflected a 14% return on invest for FY 13. Defined Contribution Plan The Defined Contribution (DC) Plan was established in 1997 and took the place of the Defined k Benefit Plan. At that time,there were 602 active employees that switched to the DC Plan and at that time, we transferred $75 million from the old DB Plan to the DC Plan. Investment income improved in FY 2013. DC investment income was $16 million in 2013 f compared to $.5 million in FY 2012. For FY 2013, $16 million actually represents a 12.4% return on assets. The Plan Assets for the DC Plan right now are $147 million. This plan is a little different from the DB Plans in that we do not actually invest the money; we pick out a lineup of funds that are available for the employees to make their own selections. We do believe that we have a.very diverse lineup available for our employee and we do have a very robust education program that is available to them. Use of the web site was up 40%, which is attributable to the education program and amounted to about 22,000 hits. Post-Retirement Plan-VEBA As of Feb 2013 we have 1380 participants in the Post-Retirement Benefit Plan. This is a decrease of about 16 from last year. Investment Advisors for this Plan is Merrill Lynch and consistent with other plans our investment income improved over 2012. The Post Retirement plan had $15.7 million in investment income compared to a $.4 million loss last year. We made $4.5 million worth of contribution into the plan and the assets in the plan Regular Board Mtg. November 19,2013 Page 10 of 21 increased from $110 million last year to $129 million this year for an increase of$19 million. Our funding ratio for the Post Retirement Plan was 45% in 2012 and is now 59%, so we are almost 60%funded for this plan. Ms. Devon stated that there is another Accounting Standard that she believes will be issued in the near future and will have the same impact on us as the changes for the Pension Plan, forcing us to reduce our discount rates, which increases liability and may require us to make additional contribution into the plan. Also,there is Act 347 of 2012,that is a Public Act that amends Act 314 of 1965, which governs our pension's investment activities. This new Act lays out the duties and responsibilities of the Trustees. One of the things that we have to do, which is a new requirement for us, is to make sure that we provide the Trustees a new annual report. Basically, it is all of the information that was presented to you tonight. Ms. Devon said the Board is also required to work on developing a policy that clearly defines accountability and reporting requirements for the Trustees and perhaps provide some educational training/seminars for the Trustees. Staff will be working with Merrill Lynch on a proposed policy to present to the Trustees after flushing out exactly what the requirements are. Ms. Devon stated that there is an organization called the Michigan Association of Public Employees Retirement Systems that has a very good seminar series for Trustees of pension plans that might be something to take into consideration in the future. Sandra Rouse-Thames, ICMA-RC Retirement Plans Specialist provided the Trustees with information on Retirement Educational meetings that have been presented to the BWL employees. She said the numbers are slightly up from last year. She said that ICMA-RC spends a lot of time with employees going over their entire financial plan. She stated that their web site has a video library that includes many webinars that provide financial and retirement information. Chair Zerkle stated that she would like to have some discussion regarding stipulations on borrowing money from the pension. General Manager Lark respectfully asked that the Board Trustees approve the resolution for the acceptance of the 2013 Financial Statements that will allow these documents to be filed with the Corporate Secretary and placed on file. Moved by Trustee Bossenbery, Seconded by Trustee Thomas,to approve the following resolution: RESOLUTION ACCEPTANCE OF 2013 AUDITED FINANCIAL STATEMENTS FOR DEFINED BENEFIT PENSION PLAN, DEFINED CONTRIBUTION PENSION PLAN, AND RETIREE BENEFIT PLAN(VEBA) Resolved, that the Corporate Secretary receive and place on file the Defined Benefit, Defined Contribution, and Retiree Benefit Pension reports presented during the Pension Trustee Meeting. -------------------------- Staff comments: All three Plans received clean audit reports. -------------------- Action: Motion Carried Regular Board Mtg. November 19,2013 Page 11 of 21 Excused Absence Motion by Commissioner Ward, Seconded by Commissioner Thomas to excuse Commissioners McCloud and Price from tonight's meeting. f Action: Motion Carried On Motion by Trustee Thomas and Seconded by Trustee Bossenbery with no further business, the Pension Fund Trustees meeting adjourned at 7:27 p.m. Action: Motion Carried Submitted by: M. Denise Griffin Corporate Secretary HUMAN RESOURCE COMMITTEE November 12, 2013 The Human Resource Committee of the Lansing Board of Water and Light met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:15 p.m. on Tuesday, November 12, 2013. Acting Human Resource Committee Chairperson Cynthia Ward called the meeting to order and asked the Secretary to call the roll. The following members were present: Commissioners, Anthony McCloud, Cynthia Ward and Sandra Zerkle. Also, present Commissioners Margaret Bossenbery , Dennis M. Louney and Tony Mullen. Absent: Commissioner Tracy Thomas Public Comments Ron Byrnes, Business Manager Local Union 352, spoke about the Health Retirement Accounts (HRA) agenda item. Mr. Byrnes stated that he has not been informed as to what the Administration is asking the Board to consider this evening but has concerns about retirement accounts. In 1997,the BWL implemented a Defined Contribution Pension Plan and because of the volatility of the market in recent years, it has stopped several employees from being able to retire and as a result of that, he has concerns that implementing a HRA would prohibit employees from being able to retire as well and prohibit them from securing a retirement. Mr. Byrnes said that he has concerns about the future of BWL's workforce as far as recruiting and obtaining the next generation such as engineers, electricians, line workers, IT personnel, and highly skilled individuals because of the possibility of reducing retirement benefits to an HRA. The BWL was proactive about 15 years ago and established a VEBA Trust Fund for Retiree healthcare cost and that is very well funded and because the BWL was proactive he does not see any reason why the BWL should go in another direction and create a HRA fund for employees. Mr. Byrnes stated that he does not believe that HRH's are prevalent in the utility industry and that there are many questions surrounding this proposed health retirement account. He asked the Commissioners to consider this as a major decision for the utility and that before any decision is made, to make sure all the questions are answered. Approval of Minutes Regular Board Mtg. November 19,2013 Page 12 of 21 Motion by Commissioner McCloud, seconded by Commissioner Zerkle to approve the Human Resource Committee meeting minutes of July 16, 2013. ,fiction: Carried unanimously. Health Retirement Accounts General Manager Lark presented the Human Resource Committee with information and a Resolution on Health Retirements Accounts (HRA). General Manager Lark presented the following information in his PowerPoint presentation: o Why Consider a HRA General Manager Lark stated that there are rising costs of healthcare for retirees such as changes in accounting guidelines and healthcare reform guidelines as well. One of the effects under the new Affordable Care Act is if we don't do something to bring the cost of the healthcare more in line with the Affordable Healthcare Act there is going to be a 40% excise tax to be paid by either the employee or the BWL itself. * Current Retiree Health Plans o Current retirees and employees hired before January 1, 2009 when retire Pay no deductible o Pay no premium sharing o Pay$5 co-pay office visits o Pay$2/$12 Rx co-pays o Employees hired after January 1, 2009 have copays, deductibles and premium sharing that will equal active employees copays, deductibles and premium sharing when they retire • Proposed Retiree Health Care Plan - Health Retirement Accounts for New Employees Hired after April 1, 2014 General Manager Lark stated what we are looking at is more of a Defined Contribution Plan style than a Defined Benefit. Employees hired after a certain date would: o Move to a defined contribution style of benefit for future health care plan costs for retirees instead of the current defined benefit style o New employees hired under the HRA Plan will participate in BWL's health care plan while they are active employees. o These employees will receive a contribution into a Health Retirement Account during their years of active employment. o The money that has accumulated in the Health Retirement Account would be used to purchase health insurance upon retirement. o New employees hired after April 1, 2014 would not participate in the BWL's retiree health care plan when they retire. • Benefits of Health Retirement Accounts General Manager Lark stated that he does feel this is a good plan and the Board should look at it. This is a way that the BWL can be responsible going forward 30 years from now, because the plan that we are talking about is only for new hires. Listed below are some of the benefits of the proposed plan as indicated in the PowerPoint: o Predictability of employer expenses o Reduction of employer cost Regular Board Mtg. November 19,2013 Page 13 of 21 o Retiree health care expenditures are visible and clear to employer and retirees fostering a greater understanding of the costs o Eliminate "Cadillac Plan" excise tax exposure for that population of retirees o Eliminate future liabilities for obligations under Governmental Accounting Standards Board (GASB), Statement 45 for that population of retirees ® National Survey of Employer-Sponsored Health Plans 2012 General Manager Lark said this is not an unusual concept and presented the following statistics: 0 54%of Governments offer medical plan to pre-Medicare eligible retirees 0 38% of Governments offer medical plan to Medicare eligible retirees o Of Governments that do offer medical plan 37% do not expect to offer plans within 5 years General Manager Lark said this is about employees, it is about the BWL and it is about our owners,the residents of City. He said that he is putting something before the Board to think about and if you,the Board, tell me not to go forward, we will not. The proposed resolution asks the Board to allow the management to work with a 3rd party administrator to create a plan to present to one of the Committees and forward to the full Board for consideration. After a lengthy conversation regarding the necessity of a resolution for this matter Acting Chair Ward said to General Manager Lark, "If you are trying to get a sense from the Board whether we want you to move forward to continue to explore the idea of the Board looking in to an HRA, I have heard no opposition from the Board, certainly not from the Human Resources voting members." The Resolution was not acted on. Directive: "You can go forward and continue to explore and return back with the additional information that you are seeking." Other None Excused Absence Motion by Commissioner McCloud, Seconded by Commissioner Zerkle to excuse Commissioners Thomas from tonight's meeting. Adjourn There being no further business,the Human Resource Committee meeting adjourned at 6:04 p.m. Respectfully submitted, Cynthia Ward, Acting Chair Human Resource Committee FINANCE COMMITTEE November 12, 2013 Regular Board Mtg. November 19,2013 Page 14 of 21 The Finance Committee of the Board of Water and Light met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 6:09 p.m. on Tuesday, November 12, 2013. Bossenber called the meeting to order an d asked Finance Committee Chairperson Margaret y g the Corporate Secretary to call the roll. The following members were present: Commissioners Margaret Bossenbery, Tony Mullen, Dennis M. Louney and Alternate Committee Member.Cynthia Ward. Also present were Board Members Anthony McCloud and Sandra Zerkle. Absent: Commissioner Price Public Comments There was no Public Comment. Approval of Minutes Motion by Commissioner Mullen, seconded by Commissioner Louney to approve the Finance Committee meeting minutes of October 10, 2013. Action: Carried Unanimously Internal Audit Update Internal Auditor Phil Perkins presented a brief overview of FY 2014 Audit Plan Progress Report o Plan for Remainder of FY 2014 . FY 2014 Audit Plan Progress Report Engagements Completed or in Progress: 1. Records Retention Management In progress; about 60% completed. Anticipate completion by January 2014. 2, Fuel Procurement In progress; about 65% completed. Anticipate completion by December 2013 3. Accounts Payable Audit—just started, anticipate completion in Feb-Mar 2014. 4. Time Reporting Review#1—completed August 2013. 5. Surprise Cash Count#1—completed September 2013. Plan for Remainder of FY2014 Engagements Planned: 1. Close the Books Processes &Controls—planned start in January 2014. 2. Software Licensing Compliance—planned start in March 2014 3. IT Preliminary Risk Assessment—in progress throughout FY 2014 4. Time Reporting Review#2—to be completed between Jan-Jun 2014. 5. Surprise Cash Count#2—to be completed between Jan-Jun 2014. 6. Risk Assessment/Planning for FY2015 (Mar-Jun 2014) Regular Board Mtg. November'19,2013 Page'15 of 21 Quarterly Financial Update General Manager Lark stated that all Commissioners should have received an electronic Quarterly Litigation Update earlier today. General Manager Lark provided a quarterly financial update that included information relative to Fiscal Year to date of September 30, 2013 for Electric, Water, Steam and Chilled Water services. General Manager Lark reviewed the 1st Quarter Financial Report. Actual v. Budgeted Variance in Combined Utility Net Income Fiscal Year to Date September 30, 2013 Compared to FY 2014 Budget ($000) Budgeted Net Income 5,779 Changes in Operating Income: Revenue Chanoes(net of fuel) Retail Electric (1,785) Wholesale Electric 186 Water Sales 71 Steam Sales 409 Chilled Water Sales (15) Operatino Expense Chanoes Depreciation 1,253 Labor,Material,and Other 5,672 Other (373) Subtotal Changes in Operating Income 5,416 Changes in Other Income: Interest Earnings 491 Other Income 793 PILOT (952) All Other-Non-Operating variances 368 Subtotal Changes in Other Income 700 Actual Net Income 11,695 Revised Combined Utility Net Income . Projection Fiscal Year 2014 Based on 1st Quarter Operating Results Net Income Projection -FY2014 (o00s) Net Income-Original Budget-Annual $ 2,666 FYTD Favorable Income Variance ($11,895 actual minus$5,779 budget) $ 6,116 Temporary O&M Expense Timing Differences $ (5,672) Temporary Non-Operating Income Timing Differences $ (1,652) Effect of Changes in Rate Proposals $ 1,256 Effect of PILOT Increase from 5%to 6.1% $ (2,757) Projected Net Income $ (44) Regular Board Mtg. November 19,2013 Page 16 of 21 General Manager Lark stated that currently his Administration is in the middle of budget meetings and is hopeful that some of the money that is on the timing difference line of almost of$6 million may not be spent this year, but cannot say right now, as we have to wait until Budget meetings are complete. Mr. Lark said that in all likelihood net income will not going to be high, however, we did not expect it to be as you can see that the net income that we expected for the whole year was$2.6 million. Revenue Requirements General Manager Lark presented the Commissioners with a packet of information regarding the rate recommendations. The following resolution was presented to the Board of Commissioners for consideration: General Manager Lark stated that we have gone through a couple of PILOT increases from 4%to 5% and from 5%to 6.1%which was were not reflected in our budget totaling almost $11 million. This resolution would makeup for some of that and get us a closer to the $32 million net income that proposes a 6.1% Return on Equity that the Board has indicated by resolution that we should earn. The resolution asks the Board for authority to set a public hearing date. General Manager Lark stated that the BWL is currently an AA- Rated Utility and reviewed the importance of maintaining that status. General Manager Lark reviewed the O&M expenses from FY 2009 through FY 2014 stating that we have held 0&M spending flat over the last five years. Proposed Resolution Public Hearing for 2014 Rate Adjustments WHEREAS, the Corporate Financial Targets for each of the Lansing Board of Water and Light's strategic business units is a 6.18% return on net fixed assets and materials and supplies that would require $19.3 million of Electric net income, $9.2 million of water net income, $2.4 million of steam net income, and $1.2 million of chilled water net income; and WHEREAS, the Fiscal Year 2014 budget filed with the City of Lansing included proposed rate increases for the electric, water, steam, and chilled water utilities that would bring rates more in line with each utilities cost of service; and WHEREAS: subsequent to the budget filing with the City, the PILOT payment to the City of Lansing was increased to 6.1%; and WHEREAS, the Fiscal Year 2014 budget would result in an electric net income of$3.4 million or a 0.70% return, a water net income of $977,000 or a 0.47%, a steam net loss of $1.7 million or a negative 3.13%, and a chilled water net income of $333,000 or a 1.22% returns before consideration of the increased PILOT payment; and WHEREAS, the increased PILOT payment will result in a net loss for the Fiscal Year; and WHEREAS, BWL management proposes to increase annual electric, water, steam, and chilled water billings by$14 million, $3.2 million, $1.0 million, and $.2 million respectively; and Regular Board Mtg. November 19,2013 Page 17 of 21 WHEREAS, BWL management proposes to add an Economic Development Rider for large commercial and industrial customers; and WHEREAS, BWL management proposes to decrease the electric renewable energy surcharge for all rate classes and add an adjustment mechanisms for the Energy Optimization and the Renewable Energy Plan surcharges; and WHERAS, BWL management proposes to change the application charge for new electric and water customers from $7.00 to $10.00: and WHEREAS, the proposed rate adjustments will not take effect until March 1, 2014, RESOLVED, the proposed rate adjustments will be subject to further consideration after a public hearing is held. FURTHER RESOLVED, that the Finance Committee hereby sets the date of January 23, 2014 at 5:30 p.m. for a public hearing to solicit public input on the.proposed rate adjustments. The hearing will be held in the Board of Water and Light office Depot, 1201 S. Washington Avenue. The Corporate Secretary is directed to file with the City Clerk no later than December 2, 2013 information regarding proposed rate adjustments with an effective date of March 1, 2014. Motion by Commissioner Mullen, seconded by Commissioner Louney to forward the proposed resolution to set a Public Hearing to consider input on proposed rate adjustment. Action: Motion Carried Excused Absence Motion by Commissioner Louney, Seconded by Commissioner Mullen to excuse Commissioners Price from tonight's meeting. Other General Manager Lark announced that there will be a news conference on November 215i at the Granger Wood Road Generating Station at 10:00 a.m. celebrating the 5th Anniversary of Granger providing Renewable Energy to the BWL. General Manager Lark also announced that the BWL won the ENR Award, for the Midwest Best Project of the year in the category of Industrial Energy. Chair Zerkle will go to Chicago and represent the BWL and receive the award. Adjourn On Motion by Commissioner Mullen, seconded by Commissioner Louney, the meeting adjourned at 6:54 p.m. Respectfully submitted Margaret Bossenbery, Chair Finance Committee Regular Board Mtg. November 19,2013 Page 18 of 21 MANAGER'S RECOMMENDATIONS General Manager Lark respectfully asked that the following Resolutions be considered for approval. �RES:QLUTI0111`#201�3����1 ACCEPTANCE OF 2013 AUDITED FINANCIAL STATEMENTS FOR THE DEFINED BENEFIT PENSION PLAN, DEFINED CONTRIBUTION PENSION PLAN, AND RETIREE BENEFIT PLAN (VEBA) Resolved, that the Corporate Secretary received and placed on file the Defined Benefit, Defined Contribution and Retiree Benefit Pension reports presented during the Pension Trustee Meeting. ---------------------------------- Staff comments:All three Plans received clean audit reports. Motion by Commissioner Boysenbery, seconded by Commissioner Price, to Received and Placed on File the FY 13 Audited Financial Statements for all three pension plans. Action: Carried Unanimously General Manager Lark stated that the particulars of this Resolution involve setting a Public Hearing to consider proposed rate changes to increase revenue available to operate and maintain the Electric, Water, Steam and Chilled Water systems. Also the proposed in this Resolution is a new electric development rider for larger commercial and industrial customers and a substantial.reduction in the Renewable Energy Plan surcharge for residential customers as well as an increase in the new customer application charge. General Manager Lark asked that the Resolution setting a Public Hearing for January 23, 2014 be considered. �RESSO,�UTIQN°#20'a13 �1�02 Public Hearing for 2014 Rate Adjustments WHEREAS, the Corporate Financial Targets for each of the Lansing Board of Water and Light's strategic business units is a 6.18% return on net fixed assets and materials and supplies that would require $19.3 million of Electric net income, $9.2 million of water net income, $2.4 million of steam net income, and $1.2 million of chilled water net income; and WHEREAS, the Fiscal Year 2014 budget filed with the City of Lansing included proposed rate increases for the electric, water, steam, and chilled water utilities that would bring rates more in line with each utilities cost of service; and WHEREAS: subsequent to the budget filing with the City, the PILOT payment to the City of Lansing was increased to 6.1%; and WHEREAS, the Fiscal Year 2014 budget would result in an electric net income of$3.4 million or a 0.70% return, a water net income of $977,000 or a 0.47%, a steam net loss of $1.7 million or a negative 3.13%, and a chilled water net income of $333,000 or a 1.22% returns before consideration of the increased PILOT payment; and Regular Board Mtg. November 19,2013 Page 19 of 21 WHEREAS, the increased PILOT payment will result in a net loss for the Fiscal Year; and WHEREAS, BWL management proposes to increase annual electric, water, steam, and chilled water billings by$14 million, $3.2 million, $1.0 million, and $.2 million respectively; and WHEREAS, BWL management proposes to add an Economic Development Rider for large commercial and industrial customers; and WHEREAS, BWL management proposes to decrease the electric renewable energy surcharge for all rate classes and add an adjustment mechanisms for the Energy Optimization and the Renewable Energy Plan surcharges; and WHERAS, BWL management proposes to change the application charge for new electric and water customers from $7.00 to $10.00: and WHEREAS, the proposed rate adjustments will_not take effect until March 1, 2014, RESOLVED, the proposed rate adjustments will be subject to further consideration after a public hearing is held. FURTHER RESOLVED, that the Finance Committee hereby sets the date of January 23, 2014 at 5:30 p.m. for a public hearing to solicit public input on the proposed rate adjustments. The hearing will be held in the Board of Water and Light office Depot, 1201 S. Washington Avenue. The Corporate Secretary is directed to file with the City Clerk no later than December 2, 2013 information regarding proposed rate adjustments with an effective date of March 1, 2014. Motion by Commissioner Price, seconded by Commissioner McCloud, to approve the resolution setting a Public Hearing for January 23, 2014 to solicit input on proposed 2014 Rate Changes. ,Action: Carried Unanimously UNFINISHED BUSINESS r There was no Unfinished Business NEW BUSINESS There was no New Business RESOLUTIONS rr.•;.TR ; Fi"i tt "1.z SYJ ty^,:r t Kfv'%j RESOLUTION#t201311�03 BOARD MEETING SCHEDULE In accordance with the Board of Water & Light's Rules of Administrative Procedure, a schedule of dates, places, and times for each regular meeting of the Board of Commissioners for the calendar year shall be adopted in November. Regular Board Mtg. November 19,2013 Page 20 of 21 RESOLVED, That regular meetings of the Board of Water & Light's Board of Commissioners are hereby set for calendar year 2014 as follows, unless otherwise notified or as a result of date conflicts with rescheduled City Council meetings: 2014 Board of Water and Light Commissioners Regular Board Meeting Schedule Tuesday January 28 Tuesday March 25 Tuesday May 27 Tuesday July 22 Tuesday September 23 Tuesday November 18 Meetings will be held in Board of Water and Light's REO Town Depot, located at 1201 S. Washington Ave., Lansing, MI, at 5:30 p.m. RESOLVED FURTHER, That a notice of the meeting schedule be published in the Lansing City Pulse the week of January 1, 2014. ----------------- Motion by Commissioner Price, seconded by Commissioner Ward, to approve the Resolution setting the 2014 Regular Board Meeting Dates. Action: Carried Unanimously MANAGER'S REMARKS General Manager Lark provided the following information: General Manager Lark announced and provided the following information: "Silver Bell in the City" is this Friday, November 22"d The Toy Mill event will take place on Friday the 22"d at Noon at the corner of Washington Square and Ottawa. e There are only 82 remaining customers without power due to the recent power outage. All customers are expected to have power no later than tomorrow afternoon. • Granger will be celebrating the Five-Year Anniversary of providing Renewable Energy to the BWL. The celebration is Tuesday, November 215t at 10:00 a.m. at the Granger Wood Rd. Generating Station; donation of this celebration will go to the Pennies for Power" program. ® The Engineering News Record (ENR) has named the BWL REO Town project the Midwest Best Project of the year in the category of Industrial Energy. Chair Zerkle will go to Chicago, represent the BWL, and receive the award. General Manager Lark responded to questions presented to him from a BWL Commissioner. Regular Board Mtg. November 19,2013 Page 21 of 21 Question #1- Does the BWL know how much money will be saved with the new LED Lights installed on Michigan Avenue? "The cost of the new LED Lights cannot be compared directly with existing lights since they required additional features requested by the City. Features such as speakers, cameras for law enforcement and panic buttons for emergencies. The lights will cost more for the additional features, however there are offsetting savings. These lights have been provided to the City on a full cost of service basis." Question #2- Was light pollution considered with the installation of the new LED Streetlights? The City requested these lights, as they are usually not carried in our inventory for the additional features that they provide. COMMISSIONERS' REMARKS Commissioner Ward stated that she wanted to add her personal thanks to the Board's Staff and Crew who have worked long hard hours over the past few days to respond to various outages in our service area. She said given her encounters with customers over the last few days she just wanted to share that not all of their hard work has gone unnoticed and that she is very appreciative as are all of the people that she has spoken with. EXCUSED ABSENCE Excused Absence Motion by Commissioner Thomas, Seconded by Commissioner Ward to excuse Commissioners Mullen from tonight's meeting. PUBLIC COMMENTS Brad van Gilder, Organizing Representative for the Sierra Club spoke an article in a local newspaper regarding the discontinuation of certain steam units. He asked for confirmation regarding phase out dates of three existing turbines at the Eckert Plant. General Manager Lark stated that the Sierra Club has meet with George Stojic, Executive Director of Strategic Planning and Development, numerous times in which this was the topic of discussion. ADJOURNMENT On motion by Commissioner Price, seconded by Commissioner Ward the meeting adjourned at 6:03 p.m. M. Denise Griffin, Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk:December 2,2013 Official Minutes(Electronic)filed with Lansing City Clerk:January 30,2014 Hometown People,Hometown Power. R j"^ l VCD LANSING BOARD OF WATER AND LIGHT ��1 BOARD OF COMMISSIONERS JTil 30 P' '. �8 SPECIAL MEETING MINUTES LA��`�j��V C; y (;ii� JANUARY 7, 2014 The Board of Commissioners met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:30 p.m. on Tuesday, January 7, 2014. Meeting Purpose: Storm Outage Chairperson Zerkle called the meeting to order at 5:30 p.m. Present: Commissioners Margaret Bossenbery, Dennis M. Louney, Anthony McCloud, Tony Mullen, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: None The Secretary declared a quorum present. Commissioner Mullen led the Pledge of Allegiance. General Manager Lark made the following opening remarks. "First of all, as I have previously expressed, I deeply regret the difficulties our customers endured during this recent outage. Moreover, I offer this Board and our customers my sincere regret for j traveling to New York during the outage. I believe this storm should be viewed like any other or anything else in life, in some sort of context. The BWL service territory was hit by an ice storm. One hundred percent of its territory was hit by an ice storm. The other utility we are often compared with extends to the Mackinaw Bridge and to the west to Lake Michigan, to the east to Lake Huron. They suffered a large outage as well, but all of our system was impacted. In fact, 40 percent of our lines were affected and went down. Anecdotally, from Public Service Commission staff, no utility in Michigan has ever lost that percentage of its facilities. It took us 138 years to build; it took Mother Nature eight hours to destroy forty percent of it. This is something beyond Michigan's experience. I have looked about Michigan and the United States for comparisons, and when I did I found that Michigan's performance, the BWL's performance, was neither good nor bad. It was typical. I also want to do something that hasn't been done yet that I think is important. I want to profusely thank all of our BWL employees, the best in Lansing, and the best I've ever worked with, for their dedication to restoration efforts under what has to be and was the most difficult of all circumstances. But, you know, after looking at this from a variety of points of view, it's clear to me that improvements are necessary because disasters, unfortunately, come with hard lessons; and we have learned from this. The actions we've taken are numerous. First of all, the BWL has entered into retainer agreements with contractors that will immediately triple the number of line crews available in an emergency. The BWL will immediately begin the process of hiring additional support staff so that those line crews can be properly guided, and by that, 1 mean dispatchers and the like. In addition, we will hire additional line workers. We have tripled the number of tree trimming crews presently working. I didn't say "we will triple," I'm telling you that today, on the ground, triple the tree trimmers are working. Also within the next week, the BWL will have an online outage map that customers can view. There were problems with what we call OMS, which is the Outage Management System. Those problems have been identified, and they've been addressed. Beginning now, immediately, as I sit here, and, actually, even last night, when the big storm was upon us, or even the night before, all customer outage and downed line calls should be made to . (877) 295-5001. 1 say that because we did not feature that number prominently enough. That number was in our customer connections every month. That number is on our web site. The number is available, but so is our call center number. So we took many, many more calls to the call center, which is only comprised of 15 to 20 employees. All of these things I've just told you will be discussed in greater detail following the public comment. But, in addition to that, we will explore alternative third-party answering services during catastrophic claims. We have created a temporary crisis communications plan. In addition, we have retained a crisis communications firm to finalize and implement a permanent crisis communications plan. Also, that firm will provide additional communications assistance during a crisis. The BWL today posted a newly-created position of Social Media Manager to develop and manage strategies to improve communications across all spectrums of social media. Also, the BWL will give customers who suffered outages of over 120 hours a $25 credit per the Michigan Public Service Commission Rules. In addition, customers who were out greater than 120 hours,for each 24-hour period beyond that time, they will receive an additional$5. The details for this will be announced soon and will be on our web site. The BWL is in the process of and will continue a top-to-bottom review of its outage response. That review will include input from three community forums, next Wednesday, Thursday, and Friday, for BWL customers at locations and times to be announced, and, most importantly, a report on this review will be completed and announced in mid-February. That virtually concludes my remarks. You will hear much more from those of us assembled at this table; but, before I turn it over to the Chair to take comments, I have to one more time just say thank you to all of the BWL employees because, while this community has heard very much about line crew and what a great job they've done,for every person who's a member of the line crew, there are several people behind them. For every line crew that has worked 18 hours, there's someone else that worked 18 hours; and I am again going to thank all those employees. They're 2 certainly not all seated behind me, but I think some are. Again, I've had a couple of jobs in a couple of different places. If I count them up, it probably comes to four or five. I have never worked with better employees or employees more dedicated to restoring every single customer at the BWL again under very, very difficult situations. So I say to them thank you. This concludes my remarks, Madam Chair, and Members of the Commission." Chad Zerkle announced that there was an overflow room set up in the Lobby of the REO Headquarters. Chair Zerkle also expressed her apologies for discomfort and problems that many customers have experienced during the ice storm and power outage. She stated that she believes that every BWL employee's sole purpose was to get the power back up no matter what it took. PUBLIC COMMENT CHAIR ZERKLE ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT AND ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO IMMEDIATELY PRIOR TO ADJOURNMENT. The following individuals spoke in support of the Actions of one of the following: Board of Water and Light, Employees,the Administration: Tim Barron, Radio/Media Host Calvin Jones, BWL.Employee Ron Byrnes, Business Manager Jeff Schwartz, BWL Employee of IBEW Local 352 Mike Flores, BWL Employee Tom Dickinson, BWL Employee Jane Schueller, BWL Employee David Douglas, BWL Employee Thomas Gray, BWL Employee Sue Warren, BWL Employee Rob Hodge, BWL Employee Debi Allen, BWL Employee Sean Looman, BWL Employee Mark Matus, BWL Employee Ray Moore, BWL Employee Nick Burwell, BWL Employee Jennifer Hamel, BWL Employee Stephanie Laney, BWL Customer Charles Green Jr., BWL Customer Jim Paparella, BWL Customer Mark Williams, BWL Employee Peter Kramer, Former BWL Commissioner Daryl Hibbert, BWL Employee Dallas Burdick, BWL Employee Bob Perialas, BWL Employee Greg Hess, BWL Employee Scott Hamelink, BWL Employee Mike Collins, BWL Employee Gennie Eva, BWL Employee R. R. Peffley, BWL Employee Brian Sebolt, BWL Employee Alando Chappell, BWL Employee Brandie Ekren, BWL Employee Cheryl Bush, BWL Customer Melvin Jones, Pastor of Union Church Jim Weeks, Executive Director of MMEA Tracy Tolbert, BWL Employee Justin Terry, Lansing Resident Smiljana Lazic, BWL Employee The following individuals spoke in an unsupportive manner of the Actions of one of the following: Board of Water and Light, Employees or the Administration: Chuck Slammer, Lansing Resident Claude Beavers, Lansing Resident Mike Kieliszewski, BWL Customer Cole Bouck, Lansing Resident Alice Dreger, BWL Customer Ryan Sebolt, BWL Customer Wayne Whiting, Lansing Resident 3 Councilmember Carol Wood spoke about the BWL Board members communicating with their constituency, the importance of the Board putting together an independent investigation and the resignation of General Manager Lark. Julie Powers, BWL Customer thanked all of the BWL Staff for their hard work to get the power back on. She spoke about the ageing infrastructure and the overgrowth of trees. Semone James-Howes spoke about the need for accountability and the need to review the communications process and the emergency management plan. Ken Fletcher, Delta Township Manager, spoke about the lack of representation on the BWL's Board of Commissioners and the loss of trust among customers and the need for restoring trust, confidence and establishing structure so that surround communities can be heard. Councilmember Jody Washington spoke about,General Manager Lark's decision to take a vacation during this time and asks the Board discipline him for this incident only. She spoke about the many complaints that she heard regarding communication. Jason Wilkes, spoke about sitting through hours of public comment regarding this matter and it was clear that mistakes were made and that there was a failure in communication. He spoke about the inclusion of surrounding entities in regard to the review that is taking place. Jennifer Olson, questioned the criteria for claiming a State of Emergency. She also spoke about the lack of communication during this time. Vice Chair Louney read the following communication in to the record from Former Executive Director of Operations Doug Wood: "The attacks that I have seen serve no useful purpose unless an organization is poorly run. That is certainly not the case with the Board of Water and Light. The Board of Commissioners provides sound policy and guidance and are fully engaged with the Board of Water and Light operations and its customers. General ManagerJ. Peter Lark stays connected and engaged with the Board of Commissioners, his staff, and customers whether he is at work, at home, or on the road. The Board of Water and Light has been lifted to a higher level because of Mr. Larks vision and leadership and certainly has my full endorsement as the best person to lead the Board of Water and Light into the future. I'm very proud of this achievement of Mr. Lark and the Board of Water and Light and grateful to have been associated with such a great organization. Thank you for listening." Douglas K. Wood Commissioners' Remarks/Administrations Comments Review of Action after Recovery Memo (See Attached Memo) 4 To: Sandra Zerkle, Chair BWL Board of Commissioners General Manager J.Peter Lark Cc: Corporate Secretary M. Denise Griffin From: Commissioner David Price Commissioner Cynthia Ward Date: January 2,2014 RE: Action after Recovery As you are aware,pursuant to BWL's Rules of Procedure,we requested a SpecialMeeting of the Board of Commissioners. That meeting has been scheduled for Tuesday, January 7, 2014. Public notice of that meeting, in accordance with our rules,will follow. Our primary interest in requesting the Special Meeting was to provide a timely and focused opportunity for the Board of Commissioners to begin to address our customers'concerns relative to the BWL's restoration efforts following the ice storm. We heard from many customers during the Mayor's Press Conference on Saturday, December 28,2013,and during the Lansing City Council's SpecialMeeting on Monday, December 30,2013. Those forums afforded the Board opportunities to listen to the questions and concerns of our customers. While we would have preferred for there not to be a need for such forums,we appreciated every single person who came out to ask questions,express criticisms,share concerns,and applaud the efforts of the line men and women. We understand that we will continue to hear from customers in the weeks and months to come. However/we believe we must take action now. That is why We have requested this SpecialMeeting. We request the full Board of Commissioners to consider the following as outcomes from the Special Meeting: 1) As the governing board for the BWL, we will acknowledge the hard work of the line workers and all BWL employees, who remained focused, in the face of many distractions,o n the task of restoring power to our customers. We also acknowledge the families of the BWL employees who worked around the clock and sacrificed spending their holidays with their loved ones. Further, we also thank the City of Lansing em ployees and m utual aid workers who assisted during this time. 2) We will request that General Manager Lark establish two independent review teams: one for the outage response itself and one for the communications response. We will further ask that M r. Lark consider a process that will allow for the review team s'work to be completed by March 31, 2014. 5 T`iT?`E'S �l Hometown People.Humeauwn Power. , 3) Many Commissioners were individually contacted during the restoration period by concerned customers;several of us have our own questions. We will ask Board Chair Zerkle to designate a point person on the Board of Commissioners to serve as the repository of all the questions and concerns received by individual Commissioners so that all questions and concerns can be included and compiled in a single document to be reviewed by the Commissioners, General Manager Lark,and the review teams. 4) General Manager Lark has publicly stated that the BWL will consider a possible credit to offer customers. We will request that General Manager Lark identify and present to the Board of Commissioners the parameters for such credit. 5) It was acknowledged that the BWL does not have a crisis communication plan. We will ask that an interim crisis communication plan is developed for the BWL subject to revision once the communications response review team completes its work. 6) The Board of Commissioners does not have an emergency or crisis communication plan. We will request that Board Chair Zerkle appoint an ad hoc committee to develop a Commissioners' emergency/ crisis communication plan. There are other matters that certainly require attention, but we believe this is an appropriate starting point for this initial meeting. We expect other Commissioners will have other matters or concerns that will be included for discussion during the Special Meeting. Thankyou. Commissioner Ward acknowledge that the statement submitted by her and Commissioner Price was a suggestion for items to be addressed as a starting point and that this request was for the full Board to consider and that it is up to the full Board if they want to accept or consider the suggestions going forward. Commissioner Ward acknowledge that some of the concerns that were raised were addressed in Mr. Lark's opening statement and that she would defer until after the experts have spoken. Vice Chair Louney stated that he would like to see some things outline but will not present them today. He said that he wait until the report came out in February. George Stojic, Executive Director of Strategic Planning and Development provided an overview of electrical liability. Dave Bolan, Director of Electric Transportation and Distribution provided information the proactive and preventative maintenance that the BWL did to possibly prevent a much larger outage. Mr. Bolan provided information on tree trimming and the standards that go along with that. He said this storm devastated the area and the plan is to get out there and get the trees cleaned up. General Manager Lark stated that the number of tree trimming crews have been tripled as of yesterday. Special Board Meeting. January 7,2014 Page 2 of 7 Mr. Bolan, reviewed the flow of the Electric Utility Power System Diagram. He reviewed the breaker system process and what has to happen when there is an outage and the number of customers that are affected with each level of circuit that goes down. Pat Hanes, Manager of Transmission reviewed what took place the night the storm hit as well as their actions as far as getting help from outside agencies. Mr. Hanes stated that the BWL never ran out of supplies as suggested by some. After a lengthy discussion, General Manager Lark asked if the Board would be to continue this discussion at the Committee of the Whole meeting. In response, Commissioner Price stated that there has been a lot of information presented this evening and is impressed with the level of detail and understanding of the whole situation. He said that he would like to have additional discussion at next week's Committee of the Whole. After some discussion on the preferred conclusion of the Special Board meeting, it was determined that there would be a continuation of tonight's discussion at the next week's COW meeting. Public Comments Members of the public are welcome to speak to the Board on any Board of Water and Light subject. Julie Mulcallughe, Lansing Resident stated concerns with all of the problems that came from the ice storm and said that people are looking for accountability and transparency. EXCUSED ABSENCE I None. ADJOURNMENT On motion by Commissioner Price, seconded by Commissioner Ward,the meeting adjourned at 7.08 p.m. M. Denise Griffin, Corporate Secretary Approved by the Board of Commissioners:1-28-14 Final Approved Minutes Filed with Lansing City Clerk 1-30-14 2