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Home My WebLink About2014 - Boards, Commission, and Authorities - Meetimg Minutes_20141027 4 y�� S I �G Chris Swope Lansing City Clerk �7 j � CHIG � October 24, 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 Trustees Employee Retirement System August 17, 2014 Board of Trustees Police and Fire Retirement System August 17, 2014 Joint Police and Fire Retirement System and August 17, 2014 Employee Retirement System Board of Public Service August 14, 2014 September 11, 2014 Lansing Brownfield Redevelopment Authority October 3, 2014 Lansing Economic Development Corporation October 3, 2014 Tax Increment Finance Authority October 3, 2014 Lansing Entertainment and Public Facilities Authority June 24, 2014 August 26, 2014 Board of Water and Light Board of Commissioners July 22, 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, Lansing City Clerk's Office Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695 517-483-4131 0 517-377-0068 FAX www.lansingmi.gov/clerk ❑ clerk(a)lansingmi.gov sklerk_staff\city counciRadministrativelboard minutes letter retire ledc and bwl.docx Chris Swope, CIVIC, CMMC Lansing City Clerk Lansing City Clerk's Office Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695 517-483-4131 o 517-377-0068 FAX www.lansingmi.gov/clerk o clerk(a)lansingmi.gov sAclerk_stafFlcity councilladministrativelboard minutes letter retire lede and bwl.docx OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING EMPLOYEES RETIREMENT SYSTEM Regular Meeting August 17, 2014 City Council Conference Room Thursday, 8:30 a.m. e-�. c 10th Floor, City Hall �t Lansing, MI r-- The Board met in regular session and was called to order at 8:34 a.m. Present: Boles, Kraus, McCaffery, Munroe, M. Parker, Taylor — 6 Absent: Trustee Bernero, Dedic, D. Parker Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Kenneth Lane, Clark Hill (representing the CityAttorney's Office). Trustee Mark Parker presided. It was moved by Trustee Kraus and supported by Trustee Boles to approve the Official Minutes of the Employees' Retirement System Regular Meeting of July 17, 2014. Adopted by the following vote: 5-0 Trustee Parker requested to move the voting items first with the consent of the Employees Retirement System Board. It was moved by Trustee Kraus and supported by Trustee Boles to approve the following requests for Regular Age and Service Retirements: Dorothy Boone, (Planning/Non Bargaining Supervisory), 9 years, 8 months of service credits, age 65, effective August 1, 2014, Paul E. Stokes, (Public Service/Teamster), 30 years, 6 months of service credits, age 55, effective August 2, 2014. Ralph L. Gregus (Planning/Teamster), 18 years, 1 month of service credits, age 65, effective August 30, 2014. Stephanie Robinson (Finance/Teamster), 10 years, 10 months of service credits, age 59, effective September 7, 2014. David G. Kos (Public Service/UAW), 27 years, 7 months of service credits, age 64, effective September 13, 2014. Employees Retirement System Regular Meeting of August 21, 2014 Page 2 It was moved by Trustee Kraus and supported by Trustee Boles to approve the following requests for Regular Age and Service Retirements (cont.): Guillermo Z. Lopez (Human Relations-Community Services/Teamster), 23 years, 8 months of service credits, age 64, effective September 13. 2014. Robert G. Pfund, (Public Service/UAW), 25 years of service credits, age 53, effective September 13, 2014. (w/purchase of 1 year, 5 months of service credits). Richard Stoudt (Public Service/UAW), 27 years of service credits, age 59, effective September 13, 2014. Terry Thelen (Public Service/UAW), 29 years of service credits, age 54, effective September 13, 2014. Stan S. Shuck (Public Service/UAW), 25 years of service credits, age 55, effective September 15, 2014 (w/purchase of 2 months of service credits) Charles C. Hinton (Public Service/UAW), 25 years of service credits, age 55, effective September 24, 2014, (with purchase of 3 months of service credits) Barbara Childs (Planning/UAW) 16 years, 9 months of service, age 62, effective September 27, 2014. Maria Villarreal (Planning/UAW), 15 years, 3 months of service credits, age 67, effective September 27, 2014. Adopted by the following vote: 5 — 0 Trustee Kraus noted for the minutes that Ms. Stephanie Robinson worked for 15 years with the City of Lansing. Trustee Taylor arrived to the meeting. Ms. Williams reported that the medical report for Applicant #2014 — E0417 had been submitted to the disability subcommittee for review. Ms. Williams reported that Applicant #2014-E0515 has been scheduled to see the Medical Director. Ms. William reported that the Retirement Office is waiting for the medical release and requested documents from Applicant#2014 — E0619. Employees Retirement System Regular Meeting of August 21, 2014 Page 3 Trustee Mark Parker recessed the Employees Retirement System Board meeting to allow the disability subcommittee to discuss the medical report for Applicant #2014- E0417. The ERS Board meeting recessed at 8:41 a.m. The ERS Board meeting resumed at 8:43 a.m. It was moved by Trustee Taylor and supported by Trustee Kraus to approve Applicant #2014 — E0417 for Non-Duty Disability retirement upon the recommendation of the Medical Director. Adopted by the following vote: 6 — 0 Asset Consulting Group (ACG) provided a recommendation for the City of Lansing Employees' Retirement System Board quarterly cash flow withdrawals. It was moved by Trustee McCaffery and supported by Trustee Munroe to redeem $2,750,000 from the Northern Trust S&P 500 Index portfolio and to redeem $2,750,000 from the T. Rowe Price portfolio based upon the recommendation from Asset Consulting Group. Adopted by the following vote: 6 — 0 Trustee Boles left the meeting. Secretary=s Report. 1 new member(s), 0 reinstatement(s), 0 refund(s),. 0 transfers, 0 retired. Total active membership: 310. Total deferred: 67. 2 death(s) Edward Eastridge (UAW, retired 6/27/2002), died 6/10/2014, age 82, spouse to receive 50%; Peggy Klimecky, died 6/1/2014, age 75, spouse of Executive Plan retiree. Refunds made since the last regular meeting amounted to $0.00. Retirement allowances paid for the month of July 2014, amounted to $1,840,178.17. Total retirement checks printed for the ERS System: 895. Eligible domestic relations orders received: 0. Domestic relations orders pending: 0. Eligible domestic relations orders certified: 0. It was moved by Trustee Taylor and supported by Trustee Kraus to excuse Trustee Scott Dedic and Trustee Dennis Parker from the August Employees' Retirement System Board Meeting. Adopted by the following vote: 5 — 0. Ms. Williams updated the Employees Retirement Board regarding the registration materials for Fall MAPERS Conference and the IFEBP Annual Conference. Attorney Ken Lane updated the Employees Retirement System Board regarding Boomershine Consulting Group request for additional fees for GASB standard reports. Attorney Lane opined last month that the ERS Board was not required to pay additional fees for actuarial valuation to comply with GASB standard. Attorney Ken Lane contacted Greg Stump who explained that it is an additional report that would supplement the annual report . The additional report would outline the requirements and the steps taken to comply with the new GASB standards. Angela Bennett stated that she would contact Greg Stump for further clarification to see if the additional report is necessary. Attorney Lane reported that his office is in the process of scanning the trustee handbook for an electronic version. Karen Williams updated the Board regarding the Tegrit Software project. Tegrit has started the transition to a new project manager. Tegrit has started development of the Arrivos Calculators and continues work with the PBI (death audit vendor) to automate the process. Karen Williams reviewed the Quarterly Expense Report and the securities lending report for the month of July 2014. The meeting adjourned at 9:01 a.m. Minutes approved on Angela Bennett, Secretary Employees Retirement System Mark Parker, Vice Chairperson Employees' Retirement System OFFICIAL PROCEEDINGS OF THE BOARD OF TRUSTEES CITY OF LANSING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. r- 10th Floor, City Hall Lansing, MI C r a rya tC-) The Board was called to order at 8:35 a.m. Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, W64- 7-c M Absent: Trustee Bernero r- l-j M cr% Others: Angela Bennett, Karen E. Williams, Finance Department; Attorney Ken Lane, Clark Hill Law Office (representing the Law Department). It was moved by Trustee Oleson and supported by Trustee Hecksel to approve the Official Minutes of the Police and Fire Retirement System Board Meeting of July 15, 2014. Adopted by the following vote: 7 - 0 There were no public comments. Secretary's Report. 0 new fire member(s), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 transfers, 0 retired. Total: Active membership: 333. 0 death(s). Refunds made since the last regular meeting amounted to $0.00. Reimbursements to the System year-to-date amount to $0.00, Retirement allowances paid for the month of July 2014 amounted to $2,256,268.55. Total retirement checks printed for the P&F System: 697. Total retirement checks printed for both systems: 1592, Domestic relations order received: 0 Domestic relations orders pending: 1. Eligible domestic relations orders certified: 0. It was moved Trustee Fabus and supported by Trustee Kraus to approve the following applications for Regular Age and Service Retirements: Ronald L. Seyka, Police Department, 25 years of service credit, age 49, effective September 13, 2014. David Dahlke, Police Department, 25 years of service credit, age 50, effective September 20, 2014. Adopted by the following vote: 7 - 0. Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Two There were no requests for duty disability. Karen Williams reported that the medical report for Applicant #2014-F0513 was received and forwarded to the disability subcommittee for review The Police and Fire Retirement Board recessed to allow the disability subcommittee to meet to discuss the medical report of Applicant #2014-F0513. The Board recessed at 8:38. The Board resumed at 8:42. Trustee Hecksel reported that the disability subcommittee had met and recommended concurrence with the medical director's report to approve the non- duty disability request. It was moved by Trustee Hecksel and supported by Trustee Kraus to concur with the medical director's report and approve the non-duty disability request of Applicant #2014-F0513. Adopted by the following vote: 7 -0 There were no requests for refund of accumulated contributions. Ms. Williams updated the Police and Fire Retirement Board regarding the Arrivos software project. The Tegrit team continued to work on the retirement calculators. Tegrit has started the transition to a new project manager. Tegrit has started development of the Arrivos Calculators and continues work with the PBI (death audit vendor) to automate the process. Trustee St. Aubin stated he had Attorney Ken Lane review the current contract regarding the sale. Attorney Ken Lane reported that there was an assignment clause in the contract. The City of Lansing Retirement Boards needed to sign a consent form to assign the contract to the new company, Tegrit Software Ventures. The contract provisions and protections will remain the same. Ms. Williams announced the Fall MAPERS Conference would be held September 14 -16 in Acme, Michigan. Ms. Williams reported that confirmation for Fall MAPERS should have been received for the conference for those members attending. Regular Meeting August 19, 2014 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Three Ms. Williams also announced the NCPERS Public Safety Conference October 26 - 29 in New Orleans. Ms. William requested that applications and requests be submitted before the October 2, 2014 deadline for early registration. Attorney Ken Lane updated the Employees Retirement System Board regarding Boomershine Consulting Group request for additional fees for GASB standard reports. Attorney Lane opined last month that the ERS Board was not required to pay additional fees for actuarial valuation to comply with GASB standard. Attorney Ken Lane contacted Greg Stump who explained that it is an additional report that would supplement the annual valuation. The additional report would outline the requirements and the steps taken to comply with the new GASB standards. Trustee Kraus requested that the discussion regarding the additional GASB report be placed on the Joint Board retirement meeting agenda. Angela Bennett suggested that she contact Greg Stump for further clarification to see if the additional report for GASB 67/68 is necessary. Attorney Lane reported that his office is in the process of scanning the trustee handbook for an electronic version. Attorney Lane reported that the Police and Fire Retirement Ordinance has been completed by City Attorney's Office and is under review by Human Resources. After Human Resources review, the draft will go City Council and then will be referred to the Retirement Board. Trustee Wood inquired about a time line for this process and expressed concern that the Ordinance would not be before the Retirement Board within 90 days. Attorney Lane believed that the Ordinance should be back to the Retirement Board at its next meeting. Karen Williams reviewed the Quarterly Expense Report for the period ending June 30, 2014. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 7 - 0 The meeting adjourned at 9:02 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St. Aubin, Chairperson Police & Fire Retirement System CITY OF LANSING JOINT POLICE & FIRE RETIREMENT SYSTEM and EMPLOYEES' RETIREMENT SYSTEM MEETING MINUTES Joint Meeting August 19, 2014 Council Conference Room Thursday, 10th Floor City Hall Lansing, MI ; a cc r d � The meeting was called to order at 9:17 a.m. =' ; ri A quorum of the Police and Fire Retirement Board was present. i Trustees present: (Police & Fire), Benson, Fabus, Hecksel, Kraus, OlesoFF St 'Aubin, Wood — 7. (ERS), Kraus, Munroe, M. Parker —3. Others present: Angela Bennett, Karen Williams, Finance Department; Ken Lane, Clark Hill Law Office (representing the City Attorney's Office); Hugh Lamle, MD Sass; Haley Rives, Asset Consulting Group, Attorney Ken Lane reviewed Boomershine Consulting Group request for additional fees for GASB standard reports. Attorney Lane opined last month that the Retirement Boards were not required to pay additional fees for the actuarial valuation to comply with the new GASB 67/68 standards. The estimated costs would range between $2,500 and $4,000. Attorney Ken Lane contacted Greg Stump who explained that it is an additional report that would supplement the annual report. The additional report would outline the requirements and the steps taken to comply with the new GASB standards. Angela Bennett stated that she would contact Greg Stump and request clarification regarding the reports to determine if they are necessary. Mr. Hugh Lamle provided an investment strategy review of MD Sass. He discussed the Employees Retirement System and the Police and Fire Retirement System portfolios performance results, asset allocation analysis and a consolidated fixed income summary. Mr. Carr also provided a review of the portfolio holdings. Ms. Rives reviewed the Police and Fire Retirement System quarterly cash flow request. Asset Consulting Group recommendation was to redeem $3,350,000 from the Northern Trust S&P 500 Index portfolio and $3,350,000 from the T. Rowe Price portfolio that was overweight to large cap equities. It was moved by Trustee Kraus and supported by Trustee Fabus to redeem $3,350,000, from Northern Trust S&P 500 Index, and $3,350,000 from T. Rowe Price, for quarterly cash flow needs as outlined by Asset Consulting group. Adopted by the following vote: 7 -0. Ms. Rives provided a proposed agenda for the due diligence visit to Asset Consulting Group, October 1 — 3. The Joint Retirement Boards discussed flight arrangements. The trustees preferred non-stop flights available on October 1 -2 and requested an updated agenda to accommodate the flight times. Ms. Haley Rives of Asset Consulting Group reviewed the Quarterly Performance reports for the 2nd quarter of 2014. Ms. Rives discussed the financial performance of the Employees' Retirement System and the Police and Fire Retirement System for the period ending June 30, 2014. Mr. Rives reviewed the market environment and discussed the equity, fixed income and real estate investments within the financial portfolio. There were no public comments. It was moved by Trustee Wood and supported by Trustee Kraus to adjourn the meeting. Adopted by the following vote: 7 - 0 The Meeting adjourned at 10:12 a.m. Minutes approved on Angela Bennett, Secretary Scott Dedic, Chairperson Brad St. Aubin, Chairperson Employees' Retirement System Police and Fire Retirement System i REGULAR MEETING I OF BOARD OF PUBLIC SERVICE August 14, 2014 PRESENT: Cleo Anderson, Lyndon Babcock, Paul Baerman, Ron Bloomberg, Shirley Rodgers and Alfreda Schmidt r . 7 ABSENT: None csa r ;:u STAFF: Chad Gamble and Marty Riel ° -v ra cry ;"r'1 VISITORS: None -v 1) CALL TO ORDER: ;� ry Chair Baerman called the meeting to order at 11:42 a.m., at the Lansing Public Service Department Wastewater Treatment Plant. a. Roll Call b. Excused Absences: None 2) CITIZEN COMMENTS: None 3) APPROVAL OF BOARD MINUTES: July 10, 2014 Mr. Anderson moved, Ms. Schmidt seconded, MOTION CARRIED UNANIMOUSLY to approve the minutes for July 10, 2014. 4) ACTION ITEMS: None 5) REPORT OF OFFICERS: Property Management Division: A written report was distributed. Ms. Schmidt deferred to Mr. Riel for more information on his report. Mr. Riel gave a brief overview of the report. Discussion followed. Discussion followed on the flooding in Detroit, and the City of Lansing Emergency Management Program. Wastewater Division: No written report was distributed. Mr. Gamble announced the retirement of the Superintendent, Paul Stokes. Discussion followed on filling the position as soon as possible. Mr. Gamble gave a brief verbal report on current and completed projects. Discussion followed. Public Service Board - - - - Page_ -- --- August 14, 2014 6) DIRECTOR'S REPORT: Mr. Gamble provided a report on the status of the Basement Backup Protection Program (B2P2). He gave an overview of the report/status. Discussion followed. Mr. Gamble announced that to fill approximately Forty-five (45) vacant positions, the City is holding a Job Fair. A copy of the City of Lansing Job Fair flyer was provided. Discussion followed. Mr. Gamble gave an update on the Boards Merger. He provided the suggested ordinance change that will be presented to Council a week from this Monday for approval. Discussion followed. 7) NEW BUSINESS: Mr. Baerman requested information on the requirements of the Traffic Board. Mr. Gamble stated the information will be provided once the boards are merged, so all members are informed. Ms. Rodgers suggested a workshop on Michigan Uniform Traffic Code, would be beneficial. S) OTHER BUSINESS: None 9) COMMUNICATIONS: None 10)PENDING ITEMS: None 11)ADJOURN: The meeting adjourned at 1:05p.m. Respectfully submitted by, Janette Tate, Recording Secretary REGULAR MEETING OF BOARD OF PUBLIC SERVICE September 11, 2014 PRESENT: Cleo Anderson, Lyndon Babcock, Paul Baerman, Ron Bloomberg, Samara Morgan, Shirley Rodgers and Alfreda Schmidt :. " �1 cn � t-r1 ABSENT: None 1ct STAFF: Dean Johnson (gC VISITORS: None t y W 1) CALL TO ORDER: Chair Baerman called the meeting to order at 11:43 a.m., at the Lansing Public Service Department Wastewater Treatment Plant. a. Roll Call b. Excused Absences: None 2) CITIZEN COMMENTS: None 3) APPROVAL OF BOARD MINUTES: August 14, 2014 Mr. Bloomberg moved, Mr. Anderson seconded, MOTION CARRIED UNANIMOUSLY to approve the minutes for August 14, 2014. 4) ACTION ITEMS: The board welcomed new member Samara Morgan. Introductions followed. No information is available on the board merger at this time. Mr. Bloomberg moved to postpone the election of officers until further information on merger can be obtained, Ms. Rodgers seconded, MOTION CARRIED UNANIMOUSLY. 5) REPORT OF OFFICERS: Business, Permits, and Technology Division: No written report was distributed. Mr. Mumby was not present to give a report. Engineering Division: A written report was distributed. Mr. Johnson gave a brief overview of the report. Questions, answers and discussion followed. Public Service Board Page 2 September 11, 2014 Mr. Johnson mentioned that flying drones with cameras are being used to create video of some of the projects that are posted on the Public Service Facebook page. The board would like a presentation on this at a future meeting. 6) DIRECTOR'S REPORT: Mr. Bloomberg requested information on the City of Lansing Job Fair. Mr. Johnson in Mr. Gambles' absence gave brief information. 7) NEW BUSINESS: Mr. Baerman suggested the board's Rules of Administrative Procedure should also be reviewed for possible changes. Mr. Bloomberg suggested changes, if any, should be made after the merger of the boards. Discussion followed on possible changes. It was agreed to make it a discussion item on the agenda at next month's meeting. Ms. Rodger's noted that the agenda did not completely follow the Administrative Procedures listed. Board Secretary will change the agenda, to follow the rules, for next month's meeting. 12:49 p.m. Mr. Baerman left 8) OTHER BUSINESS: None 9) COMMUNICATIONS: None 10)PENDING ITEMS: None 11)ADJOURN: The meeting adjourned at 1:02p.m. Respectfully submitted by, Janette Tate, Recording Secretary Lansing Brownfield Redevelopment Authority Board of Director's Meeting Minutes Friday, October 3, 2014 8:00 a.m. The Runway, Knapp's Building Lansing, MI 48933 Members Present: Calvin Jones, Baldomero Garcia, Kimberly Coleman, Kevin O'Malley, Pierre LaVoie, Andrea Ragan, Blake Johnson Members Absent: Mayor Bernero, James Butler Temporary Members Present: None Staff Present: Karl Dorshimer Guests: J.P. Buckingham, TriTerra r- David Ferguson, Ferguson Development �.n Eric Helzer, AKT Peerless m David Vanhaaren , AKT Peerless C7 Dan & Julie Essa, Y-Site LLC w �� Public Present: None � M rl Recorded by: Tedi R. Parsons, LEAP �? n> Call to Order Chair Jones welcomed everyone and called the meeting to order at 8:50 a.m. Approval of LBRA Meeting Minutes - Friday, August 1, 2014 Motion: Garcia moved to approve the meeting minutes from the Friday, August 1, 2014 LBRA Board of Director's meeting. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending August 31, 2014 Dorshimer noted that no LBRA financial statements are unavailable at this time, as the City of Lansing is working on closing out the previous fiscal year-end. Brownfield Plan #54 - Y-Site LLC (Action Item) Dorshimer presented Brownfield Plan #54 - Y-Site LLC, he note that this has been an ongoing process. He introduced Dan and Julie Essa and Eric Helzer who presented information on this project, nothing the following: • Site is the old YMCA building located on Walnut and Lenawee • 1.56-units will be available with retail space on the lower level • Each unit will have their own parking space and private balcony • Additional parking will be available in a surface lot across the street from the site • Site plans are 95% completed • Total cost for this project is approximately $20 million dollars • Eligible activities approved are approximately $2.8 million dollars 1 Motion: O'Malley moved to approve moving forward with Brownfield Plan #54 - Y-Site, LLC, as presented. Motion seconded by Coleman. Yeas: Unanimous. Motion carried. Brownfield Plan #33 - Ottawa Block (.Action Item) Dorshimer provided an update on Brownfield Plan #38 - Ottawa Block, and introduced J.P. Buckingham, TriTe.rra and David Ferguson, Ferguson Development. Buckingham and Ferguson provided the following points of interest on this Brownfield project: This project has an MBT credit (one of the last in the state) ® This site is a great urban site to develop (mixed use) ® In the heart of downtown Lansing ® The have engaged the nearby neighborhoods and gathered support for their project * CoPartnering with Michigan Broadcast Association on this project Motion: Garcia moved to approve moving forward with Brownfield Plan #38- Oltawa, as presented. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. Odder Business None. Public Comment None. .AcUlournment Chair Jones declared the meeting adjourned at 9:14 a.m. K rl Dorshimer, Director of Economic Development Lansing Economic Area Partnership (LEAP) 2 Lansing Economic Development Corporation Board of Director's Meeting Minutes Friday, October 3, 2014 8:00 a.m. The Runway, Knapp's Building Lansing, MI 48933 Members Present: Calvin Jones, Baldomero Garcia, Blake Johnson, Kevin O'Malley, Kimberly Coleman, Pierre LaVoie, Bo Garcia, Andrea Ragan Members Absent: Mayor Bernero, James Butler Temporary Members Present: Julian Darden Staff Present: Karl Dorshimer, Quin Stinchfield r a- Guests: Jeff Henry, The Runway 3 Steve Owen, Foster Swift Public Present: None -- n Recorded by: Tedi R. Parsons, LEAP 1n Call to Order M .c- � N Chair Jones welcomed everyone and called the meeting to order at 8:09 a.m. Introduction of New Board Members Chair Jones welcomed newly appointed board members: Andrea Ragan and Christopher `Blake' Johnson to the board of directors. Ragan and Johnson introduced themselves and provided a brief bio. Approval of LEDC Meeting Minutes - Friday, August 1, 2014 Motion: Coleman moved to approve the meeting minutes from the Friday, August 1, 2014 LEDC Board of Director's meeting. Motion seconded by Garcia. Yeas: Unanimous. Motion carried, Financial Statements - Period Ending August 31, 2014 Dorshimer provided an overview of the LEDC Financial Statements, period ending August 31, 2014. Dorshimer noted that some previous posted revenues from the previous over the past fiscal year as part of the build-out costs for The Runway. Motion: Coleman moved to accept the LEDC Financial Statements, period ending August 31, 2014 as presented and place on file. Motion seconded by LaVoie. Yeas: Unanimous. Motion carried. 1 UDAG Report - Period Ending August 31, 2014 Dorshimer provided an update on the UDAG funds for the period ending August 31, 2014. He noted that they are working on a few projects on the South Side of Lansing and will bring these to the board's attention in the near future. Extension of Loan to Mobeius Technologies (Action Item) Dorshimer presented a Resolution to extend the loan to Mobieus Technologies. He provided history of the loan and noted this is an ongoing five-year loan. LaVoie provided information on the recent meeting the Loan Committee had on Thursday, October 2, 2014. He advise the Loan Committee agreed to extend the loan on a year-to-year basis, as Mobieus has done a great job in keeping-up in their payments. LaVoie noted that a change needs to be made to the Resolution presented (page 2- noting Bob Trezise as President & CEO of the LEDC). O'Malley inquired about the make-up of the Loan Committee and validity of the Temporary Members service to the EDC. He asked that all the documents be forwarded to the full board before presenting loan extensions in the future. Steve Owen, Foster & Swift, presented information on the statue of the Public Act 338 of 1974, nothing that two members of the EDC and two-temporary members are to serve on the EDC Loan Committee. Owen provided an overview of Article VI - Committees of the LEDC Bylaws. Coleman inquired whether this Resolution can be tabled, giving the EDC Executive Committee time to review this further. After discussion, Chair Jones appointed member Coleman to serve as a member of the EDC Loan Committee. Motion: Coleman moved to accept and approve the extension of the EDC loan to Mobieus Technologies on a year-to-year basis as presented. Motion seconded by Garcia. Yeas: Unanimous. Motion carried. Loan Guarantee for the Entrepreneur Institute Dorshimer provided background of the loan guarantee program for the Entrepreneur Institute, which the EDC provides loans for (limited to $25,000). He noted this program is run by Denise Peek, who has approached the EDC about renewing this loan guarantee. Dorshimer advised that Denise will attend a future EDC meeting to present her ask allowing the board to decide whether to approve a new loan guarantee. The Runway Incubator (Update) Dorshimer provided reintroductions of Stinchfield and Henry who provided an update of The Runway fashion incubator, noting the following: • There are currently 10 tenants • There are approximately 30 lines being offered in the retail space • There is a Sneak-Peek of The Runway on October 9, 2014 • Planning to open and be fully operational on November 1, 2014 • New signage has been added to the front of the building 2 Update on Projects Dorshimer provided an update on the following projects: ® Ou.tfield Proiect: 'Phis project continues with productive meetings and talks with the MEDC. Hoping to see a closing on this project in late November 2014. Construction could begin as soon as October 2014. ® Emergent BioSolutions: This project has been put on the backburner with Emergent presenting again. in the spring of 201.5. ® Red Cedar: This project continues to move forward, there are several challenges to overcome before the real work can begirt. There will be a Brownfield plan for this project that will come before the LBRA Board. Open Forum None. Public Comment None. Adjournment There being no further business, Chair Jones declared the meeting adjourned at 8:49 a,m. Kar I orshim"Direc.-tor of Economic Development Lansing Economic Area Partnership (LEAP) 3 Tax Increment Finance Authority Board of Director's Meeting Minutes Friday, October 3, 2014 8:00 a.m. The Runway, Knapp's Building Lansing, MI 48933 Members Present: Calvin Jones, Baldomero Garcia, Blake Johnson, Andrea Raga, Kevin O'Malley, Pierre LaVoie, Kimberly Coleman Members Absent: Mayor Bernero, James Butler _ Temporary Members Present: None r u) C.� :xQ - Staff Present: Karl Dorshimer �F C-24 (rj Guests: None c-a w 1"T`i Public Present: Nonei Recorded by: Tedi R. Parsons, LEAP -' Fri c� Cam' Call to Order N Chair Jones welcomed everyone and called the meeting to order at 9:15 a.m. Approval of TIFA Meeting Minutes - Friday, August 1, 2014 Motion: Garcia moved to approve the meeting minutes from the Friday, August 1, 2014 TIFA Board of Director's meeting as presented. Motion seconded by Coleman. Yeas: Unanimous. Motion carried. Financial Statements - Period Ending August 31, 2014 Dorshimer noted that there will be no financials presented at this time, as the City of Lansing is in the process of the year-end closing out of these accounts. TIFA Legislation (Update) Dorshimer provided an update on the TIFA legislation, noting that despite there being a draft bill that floated around which had significant changes to the TIFA Act, the final draft introduced had very few changes. Other Business None. Public Comment None. Adjournment 1 Chair ,Janes declared the meeting adjourned. at 9:19 a.m. Dorshimer, Director of Economic Development Lansing Economic Area Partnership (LEAP) LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING JUNE 24,2014 MINUTES At 8:09 a.m., Chairwoman Charlotte Sinadinos, called the meeting to order in Hall B of the Lansing Center, located at 333 E. Michigan Ave., Lansing, MI 48933, COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, James W. Butler II1, Charles Janssen, Robert Johnson (Ex-Officio), Tim Kaltenbach, Charles Mickens, Linda Sims-Wright and Charlotte Sinadinos. COMMISSIONERS EXCUSED: Angela Bennett (Ex-Officio) and Jim DeLine (Ex-Officio). OTHERS PRESENT: Scott Keith, Greg Soleau, Paul Ntoko, Tristyn Wright Meyer, Heidi Brown, Gus Pine, Shelly Busse, Lori Mellentine — Lansing Entertainment & Public Facilities Authority and Nan Jasinowski, John Decker—Lansing City Market Merchants. IIl. ESTABLISHMENT OF THE AGENDA: Chairwoman Sinadinos stated the Agenda will be rearranged so that the Board can go into a Closed Session to discuss the Personnel Committee's review of Scott's evaluation. E IV. PUBLIC COMMENT: None. u� Zp' C'o V. APPROVAL OF THE MINUTES FOR MAY 20, 2014: A motion was made to approve4he t minutes from the May 20, 2014 meeting. < . r MOTION: Commissioner Janssen SUPPORT: Commissioner Barron 3 �' Motion unanimously carried. �A xn o VI. REPORTS: A. CHAIRWOMAN'S REPORT: Chairwoman Sinadinos stated she has no report other than she is looking forward to volunteering at Common Ground this year. B. SECRETARY/TREASURER'S REPORT: 1. Monthly Financial Statements for the month ending May 31 2014• Greg Soleau, Vice-President of Finance, reported the following: a. Lansing City Market: Total Operating Revenue year-to-date is $109,213 compared to the prior year's amount of$118,565, Total Expenses year-to-date is $180,582 compared to the prior year's amount of$179,495. Excess Revenues over Expenses year-to-date is a loss of($26,639) compared to last year's loss amount of($25,212). Balance Sheet: Total Cash is $58,587 compared to last year's amount of$90,473. Total Current Assets is $85,501 compared to last year's amount of$129,915. Accounts Receivable is $14,678 compared to last year's amount of$17,223. Accounts Payable is LEPPA Board of Commissioners Meeting Page 2 June 24, 2014 $23,587 compared to the prior year's amount of$36,777. Unreserved Equity is $49,013 compared to the prior year's amount of$77,678. Budget vs. Actual: Total Operating Revenue is behind budget by ($12,796). Total Operating Expenses is over budget by ($14,240). Excess Revenues over Expenses year- to-date is behind budget by ($27,036). b. Cooley Stadium: Michigan Mile and Diamond Classic were the two events held at the stadium during May; however, revenue from Diamond Classic will be included in June financial reports. Total Operating Revenue year-to-date is $6,475 compared to last year's amount of$2,454; it was noted that the ATM was not in service last year at this time. Total Expenses year-to-date is $288,726 compared to the prior year's amount of $268,073. Total Event Income is $5,954 compared to last year's amount of$5,726. Excess Revenues over Expenses is a loss of($3,145) compared to last year's loss amount of($13,288). Balance Sheet: Total Cash is $214,590 compared to last year's amount of $141,856. Accounts Receivable is $2,064 compared to the prior year's amount of $92,898. Total Assets are $312,860 compared to the prior year's amount of$325,388. Unreserved Equity year-to-date is $99,803 compared to the prior year's amount of $152,376. Budget vs. Actual: Total Operating Revenue year-to-date is $2,375 ahead of budget. Total Expenses are over budget by ($1,643). Year-to-date we are ahead of budget by $733. c. LanslnE Center: Total Operating Revenue year-to-date is $5,109,944 compared to the prior year's amount of$4,592,705. Total Expenses year-to-date is $5,745,794 compared to the prior year's amount of$5,405,568. Excess Revenue over Expenses are a profit of$333,936 compared to the prior year's profit amount of $69,537. Balance Sheet: Total Cash is $77,857 compared to last year's amount of$52,038. Accounts Receivable is $581,318 compared to the prior year's amount of$545,565, Greg stated all assets have fully depreciated and are no longer being carried on the books. Accounts Payable is $193,625 compared to last year's amount of$187,318. Unearned Revenue/Advance Rent is $399,058 compared to the prior year's amount of $380,267. Unreserved Equity year-to-date is $731,858 compared to the prior year's amount of$411,660. Budget vs. Actual: Total Operating Revenue is ahead of budget by $689,595, Total Expenses are over budget by ($409,854). Excess Revenue over Expenses is ahead of budget by $287,650. LEPFA Board of Commissioners Meeting Page 3 June 24, 2014 Secretary/Treasurer Tim Kaltenbach moved that the monthly financials for the Lansing City Market, Cooley Law School Stadium and the Lansing Center for the period ending May 31, 2014 be received as published and further that the monthly expenses for each entity are accepted. MOTION: Commissioner Kaltenbach SUPPORT: Commissioner Butler Motion unanimously carried. *Commissioner Bowen entered the meeting at 8:16 a.m. C. PRESIDENT & CEO'S REPORT: Scott Keith reported the following: 1. News Articles: Scott reviewed two news articles and distributed for everyone to review. An article out of Port Huron reported on a small conference center that will be managed by SMG; noting this is a small facility and will go after small businesses and local events. In the latest edition of Midwest Living Common Ground is listed under the Current Events section and there is an ad placed by the CVB regarding summer events for Lansing visitors. 2. Administrative Report: Scott stated going forward all Departmental reports will be combined into one Administrative report, which will cut down on the amount of email attachments everyone receives for this meeting. *Robert Johnson(Ex-Officio)entered the meeting at 8:20 a.m. 3. Stadium Project: Scott reported the plans for the project continue to move along. Scott discussed a fire safety issue that has risen to concern regarding the location of the apartments and how best for fire service vehicles to gain access. Scott stated the planning group is working with the developers on the best options to rectify this issue. Scott asked Bob Johnson to elaborate on the fire safety issue. Bob reported the additional costs will be the Developer's responsibility based upon the City's Cap for this project. 4. Lansing Center Improvements: Scott reported per LEPFA's agreement with the City, he has authorized purchases for improvements to the Lansing Center; noting there will be improvements made to operational aspects of the building as well as food and beverage improvements. Scott stated next year we will be more proactive with future improvements. Commissioner Sims-Wright asked what type of improvements will be made. Scott stated improvements to building doors, landscaping and air walls will be made and additional pipe and drape and tables will also be purchased. LEPFA Board of Commissioners Meeting Page 4 June 24, 2014 5. City Market: Scott reported on Canoe & Kayak Rentals, a new vendor operating on the river. The owners are working with us to maintain the river area around the City Market. Scott reported the financial issue that was brought to his attention earlier has been investigated and the amount is much lower than originally thought; around $500 - $800 is lost. Scott stated improper cash handling and disorganization were the factors that led to the loss and new handling strategies have been implemented so this won't happen again. Scott stated an independent auditor will be utilized to review our procedures to be sure we did everything correctly. 6. Common Ground: Scott reported ticket sales are progressing nicely; noting opening night is a sell-out. Ticket sales are up 25% - 30% over last year sales, with 60%having been sold in the last month. Scott stated there could be close to a million dollars in gross ticket sales and stated ancillaries such as food and beverage and merchandise sales will be the key to additional revenue. 7. August Board Meeting: Scott reminded everyone there is no July meeting and the August meeting will have a new Executive team and we will recognize the outgoing Chair. Chairwoman Sinadinos reminded everyone that Restaurant Week is the same week as Common Ground and she explained what Restaurant Week is all about. Commissioner Sims-Wright asked Lori Mellentine if there has been an increase in Vendors at the City Market. Lori reviewed the new vendors and existing vendor moves and which vendors she is currently seeking to attract to the City Market. Commissioner Butler asked Lori for her assessment of the City Market. Lori stated things are going well, but there is a long way to go. Lori discussed what she would like to see in terms of new vendors and how best to fill the vacant spaces. Commissioner Sims-Wright asked Lori what she is doing to attract new vendors. Lori stated she hasn't gotten fax yet; she has a lot of ideas and she is working to get there. Commissioner Sims-Wright asked if the parking situation has been corrected yet. Scott stated parking will continue to be a challenge until the construction is complete. Bob Johnson discussed the parking challenges the City Market and Lansing Center face based on the dynamics of the business. Commissioner Barron asked for an update on City Market signage. Scott stated we put staff out to monitor parking when we,know there will be.parking challenges; noting where current signage is located. Lori reported on new signage that she is working on and the placement of the new signage; stating additional signage is a top priority. LEPFA Board of Commissioners Meeting Page 5 June 24, 2014 Commissioner Barron asked for an update on the Client Advisory Board meeting. Scott stated there is a follow-up meeting tomorrow to discuss the results and start work on an action plan. D. STRATEGIC PLANNING COMMITTEE: No report. E. NOMINATING COMMITTEE: Commissioner Mickens reported the Committee met on May I" and selected Commissioner Barron to serve as Chair, Commissioner Sims-Wright to serve as Vice-Chair and Commissioner Kaltenbach to serve as Secretary/Treasurer. Commissioner Mickens moved that the selections by the Nominating Committee for the 2014—2015 year be accepted. Support: Commissioner Bowen. Motion unanimously carried. F. PERSONNEL COMMITTEE: Commissioner Bowen stated the Committee met to complete Scott's performance evaluation and the evaluation will be delivered to Scott on Friday. Commissioner Bowen moved that this meeting go into Closed Session to discuss the evaluation. Support: Commissioner Butler. Motion unanimously carried. The meeting went into Closed Session at 8:48 a.m. Commissioners Present: Tim Barron, Cindy Bowen, James W. Butler III, Charles Janssen, Tim Kaltenbach, Charles Mickens, Linda Sims-Wright and Charlotte Sinadinos. The meeting went back into Open Session at 9:08 a.m. Commissioners Present: Tim Barron, Cindy Bowen, James W. Butler III, Charles Janssen, Tim Kaltenbach, Charles Mickens, Linda Sims-Wright and Charlotte Sinadinos. Commissioner Bowen stated the increase and bonus for the President/CEO has been approved and the evaluation will be delivered on Friday morning. VII. COMMISSIONER & STAFF COMMENTS: A. Commissioner Barron: Commissioner Barron reported he met with Mlive to discuss openness and transparency with regard to Common Ground. Commissioner Barron stated he is pleased with the interview and believes it is a balanced report. The interview will be reported on Mlive sometime soon and was written by Steve Miller. VIII. OLD BUSINESS: None. LEPFA Board of Commissioners Meeting Page 6 June 24, 2014 IX. NEW BUSINESS: None. X. ADJOURNMENT: A motion was made to adjourn the meeting. MOTION: Commissioner Bowen SUPPORT: Commissioner Kaltenbach At 9:14 a.m. the meeting was adjourned. THE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY,AUGUST 26, 2014, GOVERNOR'S ROOM—LANSING CENTER,333 E. MICHIGAN AVENUE, LANSING, MI 48933. Respectfully Submitted, Shelly Busse Recording Secretary LANSING ENTERTAINMENT AND PUBLIC FACILITIES AUTHORITY BOARD OF COMMISSIONERS MEETING AUGUST 26, 2014 MINUTES At 8:04 am., Chairman Tim Barron, called the meeting to order in the Governor's Room of the Lansing Center, located at 333 E. Michigan Ave., Lansing, MI 48933, r- 7> cz COMMISSIONERS PRESENT: Tim Barron, Cindy Bowen, James W. Butler III, Char Jsseu Tim Kaltenbach, Charles Mickens, Charlotte Sinadinos, ,Tim DeLine (Ex-Officio) and Ang r B net�3 (Ex-Officio). r) C7 c� w ;nt COMMISSIONERS EXCUSED: Linda Sims-Wright and Robert Johnson (Ex-Officio) cs rl OTHERS PRESENT: Scott Keith, Paul Ntoko, Heidi Brown, Gus Pine, Jennifer McFatric , Shelly Busse, Lori Mellentine —Lansing Entertainment & Public Facilities Authority; Jack Alexan�4,br ar+l Dirk Spilleniaeckers—AMTA. 11I. ESTABLISHMENT OF THE AGENDA: No changes to the agenda. IV. PUBLIC COMMENT: .Tack Alexander stated the digital reader board in front of the Stadium is inaccurate and the programming of the display should be turned over to the Lugnuts to operate and maintain. Mr. Alexander stated the boards are obsolete and LEPFA should look into replacing them. Mr. Alexander asked if any bids have gone out for the ball park project. Scott stated, "yes, bids have gone out and I will discuss in my report." V. APPROVAL OF THE MINUTES FOR JUNE 24, 2014: A motion was made to approve the minutes from the June 24, 2014 meeting. MOTION: Commissioner Mickens SUPPORT: Commissioner Butler Motion unanimously carried. VI. REPORTS: A. CHAIRMAN'S REPORT: Chairman Barron thanked everyone for their support and advice as incoming Chair of this Board and noted that he is wearing "pants with a crease" just for this meeting. Chairman Barron shared his goals as Chair of this Board for the upcoming year; seeing the Stadium plans come to fruition, renewing the LEPFA Operating Agreement with the City, helping to reshape Common Ground and fulfill a promise he made to the media regarding transparency of Common Ground, and a stretch goal of seeing a ground-breaking for a permanent outdoor performance structure in the City. B. SECRETARY/TREASURER'S REPORT: 1. Year-End (DRAFT) Financial Statements for Fiscal Year-Ending 2013 - 2014• Jennifer McFatridge, Interim Director of Finance, stated the Year-End Financial Statements are in"DRAFT" form until the audit has been completed. LEPFA Board of Commissioners Meeting Page 2 August 26, 2014 a. Lansing City Market: Total Operating Revenue year-to-date is $115,449 compared to the prior year's amount of$130,180. Total Expenses year-to-date is $195,397 compared to the prior year's amount of$203,658. Excess Revenues over Expenses year-to-date is a loss of($30,589) compared to last year's loss amomlt of($33,833). Balance Sheet: Total Cash is $78,610 compared to last year's amount of$128,857. Total Current Assets is $87,020 compared to last year's amount of$144,444. Accounts Receivable is $6,556 compared to last year's amount of$13,096. Accounts Payable is $30,470 compared to the prior year's amount of$75,943. Unreserved Equity is $45,064 compared to the prior year's amount of$75,653. Budget vs. Actual: Total Operating Revenue is behind budget by ($17,557). Total Operating Expenses is over budget by ($12,686). Excess Revenues over Expenses year- to-date is behind budget by ($30,589). b. Cooley Stadium: Total Operating Revenue year-to-date is $6,986 compared to last year's amount of$3,434. Total Expenses year-to-date is $315,477 compared to the prior year's amount of$346,666. Excess Revenues over Expenses is a loss of($1,408) compared to last year's loss amount of($36,366). Balance Sheet: Total Cash is $78,294 compared to last year's amount of $111,968. Accounts Receivable is $42,378 compared to the prior year's amount of $116,111. Total Assets are $210,830 compared to the prior year's amount of$319,045. Unreserved Equity year-to-date is $95,587 compared to the prior year's amount of $96,995. Budget vs. Actual: Total Operating Revenue year-to-date is $1,988 ahead of budget. Total Expenses are over budget by ($3,396). c. Lansing Center: Total Operating Revenue year-to-date is $5,409,335 compared to the prior year's amount of$4,920,552. Total Expenses year-to-date is $6,256,633 compared to the prior year's a nount of$5,918,565. Excess Revenue over Expenses are a profit of$215,314 compared to the prior year's profit amount of $16,294. Balance Sheet: Total Cash is $35,208 compared to last year's amount of$29,607. Accounts Receivable is $483,176 compared to the prior year's amount of$527,308, Accounts Payable is $139,940 compared to last year's amount of$173,884, Unearned Revenue/Advance Rent is $473,382 compared to the prior year's amount of $370,208. Unreserved Equity year-to-date is $655,371 compared to the prior year's amount of$358,417. Budget vs. Actual: Total Operating Revenue is ahead of budget by $684,617. Total LEPFA Board of Commissioners Meeting Page 3 August 26, 2014 Expenses are over budget by ($429,706). Excess Revenue over Expenses is ahead of budget by $252,314. Jennifer stated she will next review the financial statements for all three properties for month-ending July 2014. d. City Market: Total Operating Revenue is $9,846 compared to the prior year's amount of$11,470. Total Operating Expenses are $15,693 compared to the prior year's amount of$17,493. Excess Revenues over Expenses are a loss amount of($4,832) compared to the prior year's loss amount of($4,149). Balance Sheet: Total Cash is $97,871 compared to the prior year's amount of $151,377. Total Assets are $112,512 compared to the prior year's amount of$172,744. Accounts Receivable is $9,561 compared to the prior year's amount of$13,691. Accounts Payable is $58,254 compared to the prior year's amount of$69,501, Unreserved Equity is $40,234 compared to the prior year's amount of$71,504. Budget vs. Actual: Total Operating Revenue is behind budget by ($2,792). Total Operating Expenses are ahead of budget by $1,401. Excess Revenue over Expenses Is behind budget by ($1,392). e. Cooley Stadium: Total Operating Revenue is $938 compared to the prior year's amount of zero dollars; it was noted the ATM was not functioning last year at this time. Total Operating Expenses is $40,140 compared to the prior year's amount of$39,623. Excess Revenues over Expenses is a loss amount of($24,911 compared to the prior year's loss amount of($25,500). Balance Sheet: Total Cash is $194,835 compared to the prior year's amount of $172,640. Accounts Receivable is $7,360 compared to the prior year's amount of $553. Total Assets are $311,586 compared to the prior year's amount of$296,940. Unreserved Equity is $70,482 compared to the prior year's amount of$71,286. Budget vs. Actual: Total Operating Revenue is $117 ahead of budget and Total Operating Expenses is over budget by ($1,377). f. Lansing Center: Total Operating Revenue is $359,915 compared to the prior year's amount of$124,892. Total Operating Expenses are $531,453 compared to the prior year's amount of$386,409. Excess Revenues over Expenses are a loss amount of ($120,890) compared to the prior year's loss amount of($209,332). Balance Sheet: Total Cash is $39,826 compared to the prior year's amount of $262,693. Accounts Receivable is $594,189 compared to the prior year's amount of $595,710. Accounts Payable is $1.94,073 compared to the prior year's amount of LEPFA Board of Commissioners Meeting Page 4 August 26, 2014 $207,477. Unearned Revenue/Advance Rent is $442,909 compared to the prior year's amount of$408,457. Unreserved Equity is $534,480 compared to the year's amount of$149,085. Budget vs. Actual: Total Operating Revenue is ahead of budget by $211,908. Total Operating Expenses are over budget by ($91,097). Excess Revenue over Expenses is $120,526 ahead of budget. *Angela Bennett(Ex-Officio) entered the meeting at 8:20 a.m. Jennifer asked if there were questions pertaining to any of the financial information presented. Commissioner Kaltenbach asked Jetmifer to explain the discrepancy on the City Market July Budget vs. Actual page with regard to Total Operating Revenue and Total Operating Expenses loss and the loss of Excess Revenue over Expenses. Jennifer stated that she will look at the program that calculates the budget and see where the issue is and will report the correction. Secretary/Treasurer Tim Kaltenbach moved that the (DRAFT) Fiscal Year-End 2013 —2014 financials and July financials for the Lansing City Market, Cooley Law School Stadium and the Lansing Center be received as published and further that the monthly expenses for each entity are accepted. MOTION: Commissioner Kaltenbach SUPPORT: Connnissioner Sinadinos Motion unanimously carried. 2. CCRR Liquor License Resolution: Jennifer stated LEPFA will have a beer tent at the Capital City River Run which requires LEPFA to have a temporary liquor license and requires LEPFA Board approval. Secretary/Treasurer Tim Kaltenbach moved that the Board approve a temporary Liquor license for use at the Capital City River Ram. MOTION: Commissioner Kaltenbach SUPPORT: Commissioner Sinadinos Motion unanimously carried. C. PRESIDENT & CEO'S REPORT: Scott Keith reported the following: LEPFA Board of Commissioners Meeting Page 5 August 26, 2014 1. Outgoing Chair Recognition: Scott recognized outgoing Board Chairwoman, Charlotte Sinadinos, for her service and dedication to the LEPFA Board over the last year. Scott thanked her and stated she did a great job. 2. Vice-President of Finance Position: Scott stated the vacant position has been posted and is now closed; noting there will be several candidates to interview. Scott stated that Commissioner Sinadinos will sit on the interview panel for this position. 3. LEPFAJCVB Joint Luncheon: Scott reported the next luncheon is scheduled for October 2, 2014 at the Greater Lansing Convention& Visitors Bureau. Scott Stated the review of the Client Advisory Board meeting will be reviewed at that time. 4. Audit: Scott reported LEPFA's audit will be moved to October due to the change in the Vice-President of Finance position and a change in the Auditor's schedule. Scott stated having the audit in October will coincide with the City's audit. 5. Lansing Center: Scott reported the Lansing Center finished the last fiscal year strong and the goal is to invest in the building and staff training. Scott reported he is working on coordinating a group to participate in Mackinac Public Policy event next year. 6. Ball Park Project: Scott reported an RFP has been sent out for a Construction Manager for the project. Scott stated this is a large project that requires a full time group clue to the complexity and fast-track of the project. Scott stated a pre-proposal meeting was held yesterday; noting Christman, Clark and Granger attended the meeting. Scott stated the proposals are due next week and he hopes to select a Manager by the following week and get the project started by October 6"'. Scott reported several value engineering changes have been made to the project over the last few weeks due to cost estimates; noting the team and the City is excited to get started. Commissioner Butler asked Scott who will make the selection for the Construction Manager. Scott stated he, someone from the City and someone from the project team will assist in the selection process. Jack Alexander asked what pieces of the project have been scaled back. Scott stated locker rooms and tailgate kitchen have been put on hold so that the focus could remain on fan amenities and revenue generation. 7. Common Ground: Scott reported he is in the process of the settlement for this year's event. Scott stated a rough estimate will fall close to last year's results. Ticket sales were up 10%, sponsorships and ancillary revenue were down and expenses were not reduced as much as hoped. Scott stated the final settlement will be close to last year's. Scott stated a Center Park Productions board meeting will be held in September to discuss the future of the event. LEPFA Board of Commissioners Meeting Page 6 August 26, 2014 D. PERSONNEL COMMITTEE: It was noted this year's Chair for the Personnel Committee is Commissioner Janssen and the members of the Committee are Cormnissioners' Bowen, Sims-Wright and Butler. E. STRATEGIC PLANNING COMMITTEE: It was announced that this year's Chair of the Committee is Commissioner Mickens and members include Ex-Officio members Johnson and DeLine. VIL COMMISSIONER & STAFF COMMENTS: A. Gus Pine: Gus reported the fiscal year ended very well, much better than last year and the next year will be even better. Gus referred to the PACE report and noted rental is ahead of last year's number. Gus stated next month he will bring the PACE report for 2015 —2016. Gus reported on notable events coming to Lansing Center in the upcoming year; OrgPro (an annual meeting for MSAE) and Michigan Lodging and Tourism Association. Gus stated a major focus this year will be on marketing the Lansing Center; noting he is currently working on branding and photograph updates of the Lansing Center. Gus reported that an RFP will be sent out next week for a photographer for the building. Gus reviewed the new "Way Finding"maps and their locations. B. Commissioner Bowen: Commissioner Bowen asked if LEPFA will be able to show or demonstrate how the CVB contribution helps deliver the improved business to the Lansing Center. Scott stated that he and Gus will work on a presentation for this purpose. Gus stated the dollars spent on marketing is part of the success and groups that attend Lansing Center events. Commissioner Bowen stated that when reviewing the marketing line, the money is not allocated to that line and if the question is asked,you must be prepared to answer how the money is being spent. C. Commissioner Kaltenbach: Commissioner Kaltenbach asked where the CVB contribution is noted on the Income Statement. Scott stated it is in the Sales & Marketing Reimbursement line; which is received quarterly. Commissioner Kaltenbach noted Food & Beverage numbers for July were great—($143,000) over budget. D. Commissioner Butler: Commissioner Butler stated he believes Commissioner Bowen's request regarding the CVB contribution should be considered. E. Heidi Brown: Heidi reported Staff Evaluations are underway, interviews for the Vice- President of Finance will begin soon. Postings are on our web-site for a Part-Time Catering Sales Coordinator, Facilities Foreperson and Interns. Heidi reported the next LEPFA U date is scheduled for September 16"' and the focus will be on safety. Heidi reported December is slated for our annual healthcare renewal and Greg Brogan will be here today to discuss upcoming changes with staff. Commissioner Bowen asked if the minimum wage increase will have an effect on the Lansing Center. Jennifer stated the set timeframe for the increase will start in September and will affect less than 20 staff members. LEPFA Board of Commissioners Meeting Page 7 August 26, 2014 VIII. OLD BUSINESS: None. IX. NEW BUSINESS: None. X. ADJOURNMENT: A motion was made to adjourn the meeting. MOTION: Commissioner Barron SUPPORT: Commissioner Janssen At 9:08 a.m. the meeting was adjourned. TIIE NEXT MONTHLY MEETING IS SCHEDULED FOR TUESDAY, SEPTEMBER 23 2014,CONFERENCE ROOM-GREATER LANSING CONVENTION &VISITORS BUREAU -1 500 E. MICHIGAN AVENUE, SUITE 180, LANSING,A41 48912. Respectfully Submitted, Shelly Busse Recording Secretary omnany approvoa�asamu MINUTES OF THE BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT July 22, 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, July 22, 2014. Chairperson Sandra 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 s� The Corporate Secretary declared a quorum present. ro C-) Commissioner Thomas led the Pledge of Allegiance. -s g -� fT1 APPROVAL OF MINUTES rI 73 �['s Motion by Commissioner Bossenery, seconded by Commissioner Mullen to approve the Regular Board Meeting minutes of May 27, 2014. 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 There were no Communications COMMITTEE REPORTS EXECUTIVE COMMITTEE June 2, 2014 The Executive 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 11:45 a.m. on Monday, June 2, 2014. Regular Board Mtg. July 22,2014 Page 2 of 48 Executive Committee Chair Sandra Zerkle called the meeting to order. The following committee members were present: Commissioners Sandra Zerkle, Dennis Louney, Tony, Mullen and Cynthia Ward. Also present were Board Member Tracy Thomas. Absent: None. Public Comments None. Approval of Minutes Motion by Commissioner Ward, seconded by Commissioner Mullen to approve the minutes of the April 16, 2013 Executive Committee meeting. Action: Carried unanimously. Dialogue re: Community Review Team (CRT) Suggestion/Recommendation The BWL Board has the authority to appoint a standing committee that would be a liaison with local communities that hold franchises for services from the BWL. We strongly believe that the Board Chair should appoint a standing committee to be a Liaison Committee to Local Units of Government who hold franchises or agreements for services from the BWL. Commissioner Ward stated this agenda subject was mentioned at the last Committee of the Whole meeting, in which Commissioner Price requested or asked that, we as a Board begin taking steps to include other communities that we provide service to. Commissioner Mullen questioned the Board's authority to appoint a standing committee. Chair Zerkle stated her uncertainty of the Board being able to appoint a liaison as suggested in the CRT Report. She stated that she has had a conversation with the Mayor about personally inviting officials from surrounding communities that we service, to come and express their thoughts at our meetings. She stated that she has thought about the possibility of setting up quarterly forums with officials from the surrounding communities to open the communication lines. Commissioner Ward read the following section from the CRT Report into the record "The BWL Board has the authority to appoint a standing committee that would be a liaison with local communities that hold franchises for services from the BWL. We strongly believe that the Board Chair should appoint a Standing Committee to be a liaison to local units of government who hold franchises or agreements for services from the BWL." She stated that she believes this means communities are asking us to establish a Standing Committee or Adhoc Committee to serve as a liaison to those communities that we provide service to. We would have a committee that will serve as a liaison, which I interpret to mean; two or three commissioners would comprise as a committee and receive issues that communities would want or need to address. Regular Board Mtg, July 22,2014 Page 3 of 48 Chair Zerkle stated that she does not think of the Board of Water and Light as situated in Lansing. The Board of Water & Light is owned, directed and operated by the City of Lansing, and is not sure that it would look good for us to say that we are going to be out there helping other communities above what happens in Lansing. I do not have a problem with us trying to communicate with those outside communities, but we have a Governmental Relations person that does a great job with communicating and keeping the other communities informed. They know who to call, when to call him, and he responds. It is not that I do not want to take care of them and I am not ignoring them, I don't want to make it look like we are treating them as special customers as opposed to the ones that are in Lansing. Commissioner Mullen suggested a Customer Support Committee that would include municipalities as well as city residents, City Council and whoever else. It would just be more of a formal operation to allow people to come and express their concerns or their admiration. General Manager Lark stated that when he first came to the Board of Water & Light from the Public Service Commission (PSC) one of the things that he did was have two or three consumer forums. The problem was that we could never get customers to go to them. Since the December outage, I think you will be able to get people to go forums. Typically, at the PSC forum, we would invite board members and the administration/staff. So this is a suggestion and we would be happy to support you on whatever the hot issues are and would be willing to bring along the proper support staff. General Manager Lark stated that he thinks what the recommendation from the CRT is saying is that we need to form a special committee with some designated commissioners and maybe they can help create more of an outreach program that works with management so that those communities have a resource until the Mayor or City Council decide what direction they want to go in. Chair Zerkle stated that an Adhoc Committee would be established, if that is what the Commissioners want. Commissioner Mullen stated if it is not written down, it doesn't happen, so maybe we could have some sort of an Adhoc Committee to come up with something that we could present to the Committee of the Whole, and that Adhoc Committee would be charged with coming up with the details specifically about the suggested Customer Care Committee. Commissioner Louney stated that we are heading into an interesting time as a Board. At the next Committee of the Whole meeting, we are going to hear a report from management in regards to the CRT report. We are also going to be reviewing the MPSC report and look at these recommendations. The CRT says the Board needs to assert greater control over short- term agenda, annual objectives, current and emerging issues, and strategic direction of the Board of Water and Light. We have leadership elections coming up. We have talked about a retreat to do strategic planning. There is a lot coming at us and we need to put a strategic plan together as to what we want to address, and I would be willing to work with Commissioner Mullen on an Adhoc Committee to do this, but I want to make sure the pieces fit together. Regular Board Mtg. July 22,2014 Page 4 of 48 Chair Zerkle stated within the next month we could have a couple of Adhoc Committee meetings to help formulate a plan to present to the Committee of the Whole, so that we can move forward with this matter. Commissioner Thomas stated tonight's discussion has been ever great and one around the g Y table agrees that we need to do something, but it sounds like there's going to be more information coming and before anything is finalized we should have all necessary information so that we are not going in different directions and creating more committees than necessary. Chair Zerkle stated that she would put out an email asking Commissioners if they would be willing to work as a temporary Adhoc Committee to formulate an actual plan to present to the Commissioners, whether it is liaisons or forums. Everyone who volunteered will be notified and then we can set up a date and time for the meeting, and will obviously coordinate it with Mr. Lark so that we can have one or two of his staff there. Dialogue re: Crisis Communication Plan Commissioner Ward stated that this agenda item stems from the Special Meeting of January 7`h where we asked for the Board of Commissioners to have some type of plan or strategy for crisis communications that was deferred to be made a part of the overall Board of Water and Light entity, crisis communication plan. She said that we have since received that plan, and does not think that the issue that she wanted to address is a part of that plan. She commented that over the past few months she has learned that we do not agree as a commission, or Board members, as to what our responsibilities are as it relates to communications. There are Board members who believe that only the Chair can speak to the media and we have the rules of procedures that state clearly that any Commissioner can speak to the media. The rules of procedures say that the Chair should speak on policies and agrees that all policy statements shall be made on behalf of the Board by the Chair. I think that we need to discuss this as a Board because; there are times that we as Commissioners should speak to the media. I have opinions, and when I'm asked what my opinion is, I make it clear that this is my opinion; I'm not speaking on behalf of the Board. Commissioner Mullen stated that his opinion is the Chairperson or the Vice-Chair speaks for the Board of Commissioners to make sure that we speak with one voice and that we do not give out confusing information. That does not mean that you, or I, do not have our opinions, but we present our opinions in the committee. Chair Zerkle stated that we need to speak with one voice. She stated having been the Chair, she generally will speak with Mr. Serkaian to make sure that she has any and all correct facts when talking to the media when doing TV interviews or newspaper interviews, and that is one of the reasons that I think that the Board should have one voice coming from this commission. Commissioner Louney stated if we designate the Chair as that person or the Vice-Chair as that person to speak on behalf of the Board, I think that's good, but I think we haven't done in the past because there hasn't been a need. With this recent crisis, we need to get a better handle on how the Board deals with public relations, and I say the Board of Commissioners, Regular Board Mtg. July 22,2014 Page 5 of 48 when I mean the Board because we are being approached on things. I think some good training and a game plan going forward would be helpful because we went into this blind. That is something as a Board we need to look at, and I know you talked about that matter for the retreat, and that can provide us with some guidance on this matter. We should have something in place that we want to bring to the entire Board or discuss with Board members as a policy or something. Moving forward from today, we need a clear understanding as a Board on dealing with the media. Commissioner Ward stated that she is not really asking specifically for a policy, but an understanding of what we as individual commissioners are permitted to speak to members of the media. She stated nothing in our rules of procedure prohibits an individual member of the Board of Commissioners to speak to the media. I agree that all policy statements shall be made by the Chair, on behalf of the Board. The concern is there have been instances where the Board Chair spoke to the media and the message that came across as if she is speaking for the Board, which she is able to, but she is not able to determine the position of the Board individually and that is her concern. General Manager Lark said he has reviewed various Board structures in our related industry and in the Lansing area and there are ways to handle some concerns. I think maybe our Board might need a little direction in that area, and maybe a governance type class might get us all there where we can come up with something that works for everybody. Commissioner Mullen stated that he is in agreement with Mr. Lark. Whatever we choose to do, whichever direction we need to go, we need to all follow it. Chair Zerkle asked if everyone was willing as a committee to address issue after some training. She stated in the past there has been an unwritten policy or understanding regarding the media. This was something that was originally talked about several years ago and we didn't want to make it a policy, and it was the idea that we spoke from one voice. She stated that we can have further discussion at either Committee of the Whole sometime after the training on this so we have an understanding and it doesn't have to become a policy, but we'll have a clear and better understanding of how to handle things. After a lengthy discussion regarding what Committee meeting in which a continuation of this subject matter should take place. It was suggested, that the Executive Committee would deal with governance matters. It was also suggested,that the Public Service Commissioner report would be dealt with in the Committee of the Whole. Other None Excused Absence None Adjourn Regular Board Mtg, July 22, 2014 Page 6 of 48 On Motion by Commissioner Ward, Seconded by Commissioner Mullen, the meeting adjourned at 1:15 p,m. Respectfully submitted, Sandra Zerkle, Chair Executive Committee COMMITTEE OF THE WHOLE June 10, 2014 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, June 10, 2014. Committee of the Whole (COW) Chair, Dennis M. Louney called the meeting to order and asked the Corporate Secretary to call the roll. Present: Commissioners Dennis M. Louney, Margaret Bossenbery, Anthony McCloud, Tony Mullen, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: None Public Comments None Approval of Minutes Motion by Commissioner Price, Seconded by Commissioner Bossenbery to approve the Committee of the Whole meeting minutes of May 13, 2014. Action: Motion Carried Response to CRT and MPSC Reports Vice Chair Louney stated that there have been many new implementations, and many changes have occurred since the ice storm, which have all been done by the employees and directed by management; however, there are many more changes ahead of us and feels positive about the future. General Manager Lark stated the following: Tonight is a time to reflect, really, on the BWL's recent past. More importantly, it is time I think, to clearly understand where we find the BWL today, and to clearly understand where we are going because, I believe that compared to the BWL of December 2013, we are not the same company; we are stronger, and a better BWL. And we are a BWL that needs to be better still. I think we all can agree that the past six months have been difficult for us; perhaps most importantly, difficult for our customers. I think it's clear that nature has dealt us, and our communities, a powerful blow. A storm that I think we can all agree was historic; both in its sheer force and in its impact on the homes, businesses, and lives of nearly all of our BWL customers. Personally and professionally, we were all affected by this storm. None of us, especially our customers, want to go through that again. When the next major storm and outage event happens, and I can tell you it will happen again, we must all be confident that the BWL's response will be significantly improved from that response we saw in December, Regular Board Mtg. July 22,2014 Page 7 of 48 Our customers deserve our operations and our communication systems to meet their needs in the worst of times. While we are rightly proud of how our BWL frontline workers responded to the storm, we are equally disappointed in our own systems failure to meet our own expectations and track record of, I think, what could only be called superior performance and superior service. But enough about the past, tonight I can say with absolute confidence that the BWL is an improved utility. I can also assure you that more improvements will be announced and implemented in the coming weeks and in the coming months. The improvements flow really from 3 in-depth assessments of how we responded to the storm. They come from our own top-to-bottom internal review, if you recall the 54 points. They come from the Mayor's Citizens Review Team (CRT) assessment, and they also come from the Michigan Public Service Commission's (MPSC) evaluation. This is all a result of 6 months of exhaustive scrutiny. We are grateful for the work of the CRT and the MPSC. By adopting their recommendations, I believe the BWL will be a much stronger, better organization, and better prepared to respond to the next major storm. Compared to the BWL of 2013, we are not the same company; today we're a stronger and better BWL. Tonight, I want everyone that the BWL serves to understand clearly that we are making improvements. We are grateful to the CRT and we are grateful to the Public Service Commission for identifying actions that will improve our ability to respond to future outages and emergencies. In fact, some of the improvements are already operational, as this board knows. And if they are not, some are well along their way to being implemented. We have increased crews and staff, which improve the BWL's ability to restore power faster during outages; we have increased internal spotter crews and we have contracted for up to 17 additional spotter crews from a contractor company; we have tripled the number of tree trimmer crews in the field working today; we have tripled the number of line crews available during an outage and really much beyond tripling as to what is available. In addition, we have expanded our Mutual Aid Agreements across Michigan and across the United States to help restore service during any major outage that should befall US. We also have a more robust tree-trimming program on a 5-year cycle, which will better protect us from falling limbs. We have improved, and stress tested our outage management system that is able to record outage calls and provide restoration estimates. We have improved call center operations. As you know, we have a Social Media Specialist that was hired to better communicate with our customers. In addition, we have an Emergency Manager that will be hired, to better coordinate crises activities. That manager position has been posted and is now closed. We had a plethora of applicants, and we will begin the interview process shortly. We will participate in the City's emergency preparedness work group, which will be announced soon. The new Emergency Mast Repair and interest-free payment program that the BWL has operating is the first, in utility-industry in the State of Michigan, that I can find. It includes BWL approved contractors, and it will help customers restore their broken power line masts following storms or natural disasters. We have an online outage center that will help customers find out all information necessary, about storms and outages. We have created an interactive outage map that gives customers the information they need when the power is out. We have a more robust system that will provide our customers with accurate outage restoration information when they need it, via multiple communications channels, and Regular Board Mtg. July 22,2014 Page 8 of 48 devices. In addition, in the future, we will be announcing additional improvements, including more ways we can communicate with, and receive important information from our customers using the Internet and mobile communications devices. We are going to have additional website improvements that will better serve our customers and by the fall, we will have completed updating our program to identify seniors and customers with medical alerts. This information will be available to government and community officials to perform wellness checks during emergencies. Our customers deserve a BWL with operational and communication systems that are at or above industry standards, and that are designed to function as well as possible in all types of weather. The BWL today, has many of those operational and communication systems presently in place and we will be adding more of them over time, starting in the very near future. I look forward to sharing details of our improvements directly with our customers and communities in the coming weeks and months. They deserve to hear directly from us, and they will. We have already addressed a number of neighborhood associations, and others. This summer we will continue to hold face-to-face meetings with our service areas, elected officials, business leaders, neighborhood associations, faith-based organizations and human service groups. We will also continue to communicate our improvements to our customers via mail, the website, and other means of communications. At the end of the process, the BWL will once again have the faith and confidence of our customers and our communities. The ball is in our court and we are not going to drop it. I think we have all read the CRT and the PSC report; in both of those reports, you will see things that are clearly labeled as recommendations. In the document attached to the agenda item for today, you will see the BWL's responses, I am not going to discuss all of them, but I imagine that you will have questions. Not long ago in a Board Meeting, Commissioner Ward described the CRT Report as a gift, and I want to say that I agree with that. It has provided us with numerous recommendations that will make the BWL and the Lansing community much more resilient, and better-able to respond to severe events. The BWL is grateful for all of the recommendations, including those from the CRT, the PSC as well as the BWL's own 54 points, total of roughly 180 recommendations. I will begin with the CRT recommendations on System Resilience. Under that heading, you see that the CRT notes that the BWL's role in providing a critical service to the Lansing community is important, and that there is a need to protect critical facilities. I agree with the CRT's characterization of our service and responsibility to help make Lansing a more resilient community. We are implementing the CRT's recommendations to improve resiliency during major emergency events. What we plan to do is: to regularly update critical facilities needed for public safety and welfare, for priority attention during an emergency and share this with local emergency managers. Also, as recommended by the CRT, we're beginning a survey of distributed generation opportunities in the Lansing area. We will work with sites that are promising to determine the potential for micro grids at, or, around those facilities to keep them up and operating during a major outage event. Underneath System Resilience, we go to National Incident Management System, or NIMS Training. As noted by the CRT, NIMS is a systematic approach to incident management providing a unified approach to incident management, creating standard command and Regular Board Mtg. July 22,2014 Page 9 of 48 management structures and emphasizing preparedness and mutual aid. We agree that this is best practice for critical infrastructure owners; we are adopting it, as well as the recommendations made by the CRT that go with it. We agree that greater cooperation is needed between the BWL and local emergency managers and leaders. We are going to participate with local emergency mangers; share information, data, and experience to improve regional emergency response. We will maintain a sustainable ongoing working relationship with local emergency responders and emergency managers to assure that the BWL's emergency response and resources will work cooperatively and effectively with all local responders. We are going to encourage and participate in development of a regional emergency plan and cooperate in building local resiliency during an emergency. Under Continuity of Operations, the CRT notes that the BWL must plan for its own recovery from a disaster or emergencies, It has made several recommendations that will assist the BWL in protecting itself and recovering from a major threat or a major disaster. The next general heading is Interagency Communications and Emergency Operation Center. In this area, the CRT emphasizes the need for cooperation and coordination between the BWL, local ELCs and any regional ELC; I agree. This cooperation will improve the BWL's and the community's response to an emergency event. The BWL's personnel have already contacted 115 neighborhood associations, the Power of We, the Red Cross, and "Do One Thing," to help educate local organizations on emergency preparedness and coordinate communications among these organizations, The next heading in general, talks about the BWL's crisis communications. It notes that our crisis communications were insufficient for the size of Lansing's community. We agree that consistent, accurate, and timely information upon which, our customers can make decisions, is something our customers, local officials, and the media should expect, and, should receive. To that end, the CRT has provided very useful recommendations to improve the BWL's communications process. The BWL has developed a crisis communications plan based on industry best practices. Based on the CRT's recommendation, however, more can be done. We will integrate our crisis communications plan into the BWL's emergency plan; we will review additional studies and reports to refine the BWL crisis communications plan; we will require communications personnel to receive NIMS training; and we will continually monitor changes in social media to keep abreast of the latest communication sites. The next general heading of concern revolves around our storm response. In that area, the CRT has noted that, a bottleneck in our storm responses was the number of qualified spotters; the board has heard this before. Consistent with recommendations, we have increase our internal crews, and by June 30th, we will have completed a review of additional qualified spotters to add to our internal crew number. We have also signed an agreement with an outfit, called Osmos, a storm restoration firm to supply up to 17 crews to assist with spotter duty. We have also arranged to use mutual aid crews for spotter duty. The next large section is entitled Outage Management System. The failure of the OMS to operate as planned created a number of problems; tracking of outage numbers, locations, and contributing to the inability to acknowledge and verify customer outage increase, as this board is well aware. The CRT made a number of recommendations concerning the BWL's Regular Board Mtg. July 22,2014 Page 10 of 48 OMS, including testing and building redundancy into the system. On March 11th, the BWL successfully tested our OMS System at 35,000 calls per hour, which is roughly equivalent to a disaster where we would have a 100% customer outage. Another area that has been of concern following this outage involved record keeping. The CRT made a number of recommendations regarding record keeping, and one of the duties of our new emergency operations director will be to produce a records retention policy for emergency operations. As this Board knows, it has approved a general records retention policy; we will charge the new Emergency Operations Director with generating a records retention policy for emergency operations. This policy will be an integral part of the BWL's emergency operations plan, and restoration personnel will be required to adhere to that policy. This will assist with our lessons learned process, and help improve our emergency response procedures. Another area that the CRT covered was entitled: Trees and Vegetation Management. The CRT has recommend that the BWL focus on our quality assurance report regarding our vegetation management program. We have done this by tasking our Supervisor of Vegetation Management with inspecting all trimming work performed by contract crews, and by publishing the supervisor's phone number so we can respond to customer concerns as quickly as possible. The next area of concern is Grid Asset Management. The BWL's reliability is not dependent on, proper maintenance and management of its electrical distribution system, however, the CRT has made recommendations for maintenance budgets and grid asset replacement. We agree with the recommendations and will incorporate them into our asset management process. Another area of concern for the CRT is securing downed lines and service masts. I am going to combine those areas and title it "Securing Downed Lines and Masts." The CRT has observed that many of the downed lines during the ice storm were due to service masts failing; to help remedy this effect, the CRT has recommended investigating breakaway service drops. The BWL is committed to studying these types of service masts to determine how effective they may be. In the meantime, the BWL is providing a funding mechanism for customers to pay for damaged or destroyed service masts in an interest-free manner. The next areas of review involve Hardening the Primary Distribution System, Accelerating Repairs to the Primary Distribution System and Accelerating Repairs to the Secondary Distribution System. I am going to bring all of those into one and indicate that the CRT has made a number of recommendations on distribution maintenance investment and design to improve the BWL's transmission and distribution resiliency. Some of these recommendations were already part of the BWL's process, but those that are not, will help make the BWL's system more robust and more resilient, and will be incorporated into our planning design maintenance and capital investment programs. There is also an area on Medical needs and Senior Citizens in the CRT Report. We believe that the CRT Team's recommendations in those regards are particularly important during an extended outage, and we are moving on with these recommendations. Once we secure Regular Board Mtg. July 22,2014 Page 11 of 46 permission from our customers to share their information with local emergency operations centers, we will make sure that this information is available to local responders. The next area with recommendations in the Report is an Energy self-reliance area and islanding. We again, agree with the CRT that much more has to be done to prepare the entire Lansing community for a catastrophic emergency, and that the BWL should play its part in building community resiliency. The next item is entitled Recommendations from the MPSC Staff Report. I must mention that there is another item in the report pertaining to governance matters, which we are not taking up today and there were no recommendations. Then there is a Board of Commissioners oversight area. With all due respect, I find that it would be presumptuous of me to suggest the Board of Commissioners oversight, so I will not address those, but merely put it in the documents you have before you for the Board's considerations. Then we come to the recommendation from the MPSC staff report. That might be a little confusing in that it is not the MPSC review of the CRT, it is the MPSC review of Consumer's Energy and Detroit Edison's outage problems and from them, there were some recommendations that the CRT wanted to include. The CRT has recommended that the BWL adopt some of the PSC's service quality standards, and we agree that these standards should be adopted to assure quality service to our customers. Therefore, we are adopting the following standards: • We are going to take our customer call-answer time to less than 90 seconds. There is a call blockage factor; these are calls that were not answered. The CRT recommends that they be 5% or less; we are going to adopt that standard as well; • There are time limits during which non-utility personnel can guard downed power lines. The limit is 90% of the time utilities must relieve non-utility personnel within 240 minutes, which is 4 hours; we are going to accept that as well. Also, according to the CRT, and according to the PSC, we should maintain enough certified employees to guard downed power lines and we will also do that. The next section talks about BWL senior leadership and makes recommendations regarding senior management, and how it could be made more responsive to customer needs and concerns, and help assure that the BWL can officially implement these recommendations. I am in the process of realigning senior managers and although the details still need to be worked out, generally, I intend to do the following: have senior operations staff report directly to me; create a new administrative position responsible for finance, accounting, human resources, and other administrative functions, all reporting directly to me; and the director of governmental relations and community service will also report directly to me. PSC recommendations of the CRT's review The PSC has also provided us with recommendations that, among other things, will improve our performance during major storm events, help us identify and improve circuits that may be less reliable, keep the public better informed, back up storm responders, and improve service quality. The PSC's recommendation to monitor service quality in a circuit-by-circuit basis is very useful, and we are determining if this is possible with our existing software. If Regular Board Mtg, July 22,2014 Page 12 of 48 not, we intend to procure that capability and that is because some of the circuits that we have now cross individual lines. We are implementing the PSC's recommendations advocating trained and knowledgeable secondary role employees so that they can help out and quickly expand our response staff to deal with a major outage. Both the CRT and the PSC have made recommendations to expand and train our spotter staff. And we agree, as I've stated before, that this was a significant restoration bottleneck during the December ice storm, and as you know, the BWL has increased its own spotter crews, we have contracted with outsiders we have upped our mutual aid and this really does represent a formidable increase in our spotter resources. There was a lengthy Question and Answer session following General Manager Lark's report. Commissioner Price stated since the ice storm, other municipalities that we serve beyond the city of Lansing felt like they were not represented. I think the Executive Committee had a missed opportunity last week and recommendation number 67 in the CRT report is quite clear, to create a local government liaison committee and meet quarterly, and have a clear process for consideration of things for the board. Chair Zerkle in response stated that, many options were discussed at the Executive Committee meeting last week regarding how to deal with surrounding communities, and the Committee decided to form an Ad Hoc Committee that will come up with recommendations as to how to best represent and address outside communities, and then present those recommendations to the Committee of the Whole for review and consideration. There was discussion on the "Board Oversight" and recommendations section of the CRT's report. Committee of the Whole Chair Louney, stated based on tonight's discussion that he would send an email to seek advice from Board members regarding suggestions of items that can added to the agenda for upcoming Committee of the Whole meetings. Regarding agenda items for Committee of the Whole, there was discussion regarding the Crisis Communication Review report being presented at the next Committee of the Whole meeting. Committee of the Whole Chair Louney stated that it is his understanding that there would be a presentation from management and that would lead into a discussion of how the Board of Commissioners wish to proceed as a board for internal communications amongst board members and outside parties because there was no clear policy when this crisis occurred. Commissioner Ward stated that there was some discussion about how are we are going to communicate as a board and it was suggested that we were going to get some training, but putting that aside we do have a communications plan that is in place and we are still responsible for knowing what that communications plan is moving forward. Committee of the Whole Chair Louney asked General Manager Lark, if we are better prepared for the next outage. In response, General Manager Lark said "I think there is no doubt of that." Committee of the Whole Chair Louney stated he believes that's what our customers want to know and that's what we've seen from all the actions that everyone's been taking. He thanked all of the employees and management for their efforts in doing so. Regular Board Mtg. July 22,2014 Page 13 of 48 Other General Manager Lark informed the Board that the Board of Water & Light's 1st Step program was nominated, and won the Capital Area Michigan Works 2014 Prosperity Award. This Award was for working with local partners to develop an innovative demand driven solution to local talent development. General Manager Lark also spoke about the great job that was done for the Chili Cook-off by all the employees and everyone who participated. It was a very successful event. Excused Absence None Public Comments None Adjourn On Motion by Commissioner Price, Seconded by Commissioner Bossenhery, the meeting adjourned at 7:08 p.m. Respectfully Submitted Dennis M. Louney, Chair Committee of the Whole HUMAN RESOURCE COMMITTEE June 10, 2014 The Human Resource Committee of the Lansing Board of Water and Light met at the BWL Headquarters-RED Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 6:00 p.m. on Tuesday, June 10, 2014. Human Resource Committee Chairperson Tracy Thomas called the meeting to order and asked the Secretary to call the roll. The following members were present: Commissioners Tracy Thomas, Anthony McCloud, Cynthia Ward and Sandra Zerkle. Also present: Commissioners Margaret Bossenbery, Dennis Louney, Tony Mullen and David Price. Absent: None Public Comments There were no public comments. Approval of Minutes Motion by Commissioner Ward, seconded by Commissioner Zerkle to approve the Human Resource Committee meeting minutes of May 20, 2014. Action: Carried unanimously. FY 2014 Board Appointee Performance a. Corporate Secretary Human Resource Chair Thomas stated that he would like to continue with the evaluation of the appointed employees and asked if there was any business or any dialogue regarding the Corporate Secretary's review. Chair Thomas said that he would like to recommend that the Regular Board Mtg, July 22,2014 Page 14 of 48 Board restore the assistant that the Corporate Secretary had in the past and, for consideration to be under the direction of the Board. After some discussion regarding the Assistant for the Corporate Secretary the following motion occurred. Motion by Commissioner Zerkle, Seconded by Commissioner McCloud to forward a recommendation to the Finance Committee to appropriate in the budget a full time employee to assist the Corporate Secretary, Commissioner Zerkle, rescinded her motion and stated that she would reintroduce the motion under other later in the Agenda. After dialogue regarding the Corporate Secretary's evaluation Human Resource Chair Tracy Thomas provided another opportunity for the Commissioners to express any thoughts or opinion or have dialogue regarding the Corporate Secretary's review. Motion by Commissioner Zerkle and seconded by Commissioner McCloud to forward the resolution for the reappointment of Ms. Griffin to the Charter position of Corporate Secretary for fiscal year 2014-2015 to the full Board for consideration. Action: Carried Unanimously FY 2014 Board Appointee Performance a. Internal Auditor Internal Auditor Phil Perkins requested a closed session for the purpose of receiving his contractual year-end performance evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). Motion by Commissioner McCloud, seconded by Commissioner Zerkle to go into closed session. Roll Call Vote: Yeas: Commissioners' Thomas, McCloud, Ward and Zerkle Nays: None Human Resource Chair Tracy Thomas conveyed to Internal Auditor Perkins the following: "Before we go into closed session, please know that you may rescind your request at any time. You must verbally or directly rescind your request, at which time closed session will end immediately and we will continue consideration of your evaluation in open session." The Human Resource Committee meeting went into closed session at 6:21 p.m. Motion by Commissioner Zerkle, seconded by Commissioner McCloud that the Human Resource Committee return to open session. Action: Carried unanimously The Human Resource Committee meeting reconvened in open session at 7:05 p.m. Regular Board Mtg. July 22,2014 Page 15 of 48 Upon conclusion of the closed sessions, Human Resource Committee Chair Thomas conveyed that now would be the time for any dialogue regarding any business dealing with the Internal Auditor's review. There being none,the meeting proceeded. Motion by Commissioner McCloud and seconded by Commissioner Zerkle to forward the resolution for the reappointment of Mr. Perkins to the Charter position of Internal Auditor for fiscal year 2014-2015 to the full Board for consideration. Action: Motion Carried FY 2014 Board Appointee Performance a, General Manager General Manager J. Peter Lark requested a closed session for the purpose of receiving his contractual year-end performance evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). Motion by Commissioner Zerkle, seconded by Commissioner McCloud to go into closed session. Roll Call Vote: Yeas: Commissioners' Thomas, McCloud, Ward and Zerkle Nays: None Human Resource Chair Tracy Thomas conveyed to General Manager Lark the following: "Before we go into closed session, please know that you may rescind your request at any time. You must verbally or directly rescind your request, at which time closed session will end immediately and we will continue consideration of your evaluation in open session." The Human Resource Committee meeting went into closed session at 7:10 p.m. Motion by Commissioner Zerkle, seconded by Commissioner McCloud that the Human Resource Committee return to open session. The Human Resource Committee meeting reconvened in open session at 8:28 p.m. Upon conclusion of the closed sessions, Human Resource Committee Chair Thomas conveyed that now would be the time for any dialogue regarding any business dealing with the Internal Auditor's review. There being none, the meeting proceeded Motion by Commissioner McCloud and seconded by Commissioner Zerkle to forward the resolution for the reappointment of Mr. Lark to the Charter position of General Manager for fiscal year 2013-2014 to the full Board for consideration. Action: Motion Carried (3/1 Ward) Other Commissioner Zerkle thanked Human Resource Chair Thomas for his due diligence on the evaluation process. She stated that this was a difficult process and appreciates all the efforts that he has put into this process. Chair Zerkle also requested that a recommendation be forwarded to the Finance Committee to appropriate funds in the 2015 budget for an assistant for the corporate secretary. Regular Board Mtg. July 22, 2014 Page 16 of 48 Motion by Commissioner McCloud, Seconded by Commissioner Ward to forward a recommendation to the Finance Committee to appropriate in the budget for a full time employee to assist the Corporate Secretary. Motion by Chair Thomas, Seconded by Commissioner Zerkle to make a friendly amendment to the main Motion to include that the employee would be under the direction of the Board of Commissioners. Action: Motion Carried with Friendly Amendment Adjourn The Human Resource Committee meeting adjourned at 8:48 p.m. Respectfully submitted, Tracy Thomas, Chair Human Resource Committee NOMINATING COMMITTEE MINUTES June 26, 2014 The Nominating Committee of the Lansing Board of Water and Light met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, Ml, at 5:00 p.m. on Thursday, June 26, 2014. Committee Chair Tony Mullen called the meeting to order and asked the Corporate Secretary to call the roll. The following committee members were present: Commissioners Tony Mullen, Anthony McCloud, Tracy Thomas and Cynthia Ward. Board Member Louney arrived at 5:30 p.m. Absent: None Approval of Minutes Motion by Commissioner Thomas, seconded by Commissioner McCloud to approve the Nominating Committee meeting minutes of June 26, 2013. Action: Motion Carried Public Comment There were no public comments. Officer& Committee Survey Form/Memo There was no dialogue under this section of the Agenda. Regular Board Mtg. July 22 2014 Page 17 of 48 Nominate Board Officer Candidates for FY 2014-2015 The Nominating Committee met to review the Commissioner Survey responses for consideration of board officer nominations for the Board of Water & Light Board of Commissioner's Chair and Vice Chair for fiscal year 2014-2015. Nominating Committee Chair Mullen opened the floor for nominations and the following nominations were made: • Motion by Commissioner Ward, seconded by Commissioner McCloud to nominate David Price as Chair and Dennis Louney as Vice Chair: Discussion: Commissioner Thomas questioned how the process would be handle this year and if we are forwarding candidates as a slate. Nominating Chair Mullen stated after some thought he concluded that the nominating committee was set up for a purpose and one of the purposes is to allow for the committee to express the pro and cons of each individual candidate. He suggested a slate would be the way to go. I think that we should put all four individuals that want these positions of Chair and Vice Chair on a slate and forward to the full Board, Action: Motion Failed (2/2) • Motion by Commissioner Thomas, Seconded by Commissioner Mullen to nominate Margaret Bossenbery as Vice Chair: Action: Motion Failed (2/2) • Motion by Commissioner Mullen to nominate Margaret Bossenbery as Vice Chair and David Price as Chair. Action: Motion Died, No Second • Motion by Commissioner by McCloud, Seconded by Commissioner Mullen to nominate David Price as Chair. Action: Motion Carried (3/1) • Motion by Commissioner Thomas to nominate Margaret Bossenbery as Chair. Action: Motion Died, No Second • Motion by Commissioner McCloud to nominate Cynthia Ward as Vice Chair. Action: Motion Died, No Second Regular Board Mtg, July 22,2014 Page 18 of 48 • Motion by Commissioner Mullen to nominate Anthony McCloud as Vice Chair. Action: Motion Died, No Second • Motion by Commissioner McCloud, Seconded by Commissioner Mullen to nominate Tracy Thomas as Vice Chair. Action: Motion Fails (2 Nays/1 No/1 Abstain) Motion by Commissioner McCloud, Seconded by Commissioner Ward to nominate Dennis Louney as Vice Chair. Action: Motion Fails (2 Nays/1 No/1 Abstain) Commissioner Ward stated reasons why she supports Dennis Louney in the position of Vice Chair. She stated that he has earned the position over the past six months. Nominating Chair Mullen in response to the previous response he would like to add that he appreciate the work of the current leadership but personally believes that we need a breath of fresh air coming through the Board, both chair and vice chair position. Commissioner McCloud stated reasons why he supports Commissioner Louney as Vice Chair. He stated that he has moved us forward during the rough times and deserves the opportunity continue the work he started. Commissioner Thomas stated his appreciation for the current vice chair. He also stated his support for Commissioner Bossenbery as Vice Chair, stating that she would bring in fresh, open, cooperative and collaborative leadership that will not hurt the Board as we move forward in this transition period. • Motion by Commissioner Ward, Seconded by Commissioner McCloud to nominate Commissioner Loney to be included in the slate to serve as Vice Chair. Action: Motion Fails (2/2) • Motion by Commissioner Thomas to nominate Dennis Louney as Chair. Action: Motion Died, No Second Commissioner Louney said that he appreciates the opportunity to serve in the role as Vice Chair and would like to continue in that role; however, he is open to other possibilities if other positions are being considered. He said that he has always indicated that the serves at the pleasure of the Board, wherever they see him fitting. Motion by Commissioner Thomas to nominate Dennis Louney as Vice Chair. Action: Motion Died, No Second Regular Board Mtg. July 22,2014 Page 19 of 48 It seems that we are at an impasse and suggest that we bring this back to the full Board for consideration and nominating from the floor on July 22, 2014. Moving forward the nominating of Commissioner David Price for Chair. Since there was, only a partial slate of officers recommended from this committee this business matter will be taken up at the Regular Board meeting to be held on July 22, 2014 and nominations will be taken from the floor. Commissioners McCloud stated that he would like to have more discussion regarding the slate. He said that it is his hope that we can come away with a slate and want to make sure that we explore all possibilities and options. • Motion by commissioner McCloud, Seconded by Commission Ward to nominate Commissioner Price as Vice Chair. Action: Motion Failed (2Yay, 1Nay, 1Abstain) Commissioner Mullen suggested either Commissioner's Thomas or McCloud step up and serve as vice chair. That way we would have full slate. • Motion by Commissioner Ward, seconded by Commissioner McCloud to nominate Commissioner Louney as Chair and Commissine Price as Vice Chair. Action: Motion Fails (2/2) • Motion by Commissioner to nominate Commissioner Louney as Chair and Commissioner as Vice Chair. Action: Motion Died, No Second • Motion by Commissioner Thomas to nominate Commissioner Louney as Chair and Commissioner McCloud as Vice Chair Action: Motion Died, No Second • Motion by Commissioner McCloud, Second by Commissioner Ward, to nominate Commissoner Louney as Chair and Commissioner Ward as Vice Chair. Action: Motion Failed (2/2) • Motion by Commissioner Ward, Second by Commissioner McCloud to nominate Commissioner Ward as Chair and Commissioner Louney as Vice Chair. Action: Motion Failed (2/2) • Motion by Commissioner Thomas to nominate Commissioner Bossenbery as Chair and Commissioner Louney as Vice Chair. Regular Board Mtg. July 22,2014 Page 20 of 48 Action: Motion Died, No Second • Motion by Commissioner McCloud, Seconded by Commissioner Ward, to nominate Commissioner Ward as Vice Chair. Action: Motion Failed (2/2) • Motion by Commissioner Thomas, seconded by Commissioner Ward to nominate Commissioner Louney as Chair and Commissioner McCloud as Vice Chair. Action: Motion Failed (2/2) We have reached an impass and Noinimanting Chair Mullen repeated that a partial slate of officers recommended from this committee this business matter will be taken up at the Regular Board meeting to be held on July 22, 2014 and nominations will be taken from the floor. The only Motion Passed at this meeting was to forward to the full Board the consideration of David Price as the Chair of the Board. There being no further business,the meeting adjourned at 5:51 p.m. Respectfully submitted, Tony Mullen, Chair Nominating Committee COMMITTEE OF THE WHOLE July 8 2014 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, July 8, 2014. Committee of the Whole (COW) Chair Dennis M. Louney called the meeting to order and asked the Corporate Secretary to call the roll. Present: Commissioners Dennis M, Louney, Margaret Bossenbery, Anthony McCloud, Tony Mullen, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: None Public Comments None Approval of Minutes Motion by Commissioner Price, Seconded by Commissioner McCloud to approve the Committee of the Whole meeting minutes of June 10, 2014. Action: Motion Carried Regular Board Mtg. July 22,2014 Page 21 of 48 CRT/MPSC Reports Recommendations update General Manager Lark stated that at the last meeting we talked about the Community Review Team's (CRT) recommendations and how we hope that those recommendations, together with the Public Service Commission's (PSC) thoughts, as well as our own 54 points would operate to make the BWL a much stronger utility; in fact, ensuring that during outages that customers get their power back more quickly, and have access to better information than they had. As you know, we have begun the process of putting together a new BWL that incorporates a lot of those activities. We have been working the 54-point outage report for some months longer than we have the CRT, and for those of you who had access to your email know I did send to you that 54 point update, and you can see that many of the items are completed; those that are not will be completed shortly and some will never be completed because they are ongoing items. General Manager Peter Lark provided an update of the BWL's response to the CRT, PSC, and its own 54 recommendations. (See attached) II.Planning and Preparation Item Division CRT Recommendation BWL Division Response I System Resilience 1 Lead: Emergency Working jointly with local emergency planners Agreed. The BWL will work jointly with local Operations and municipal governments, update the emergency planners and municipal governments to Director Inventory of critical facilities,as part of a Regional update the Critical Facilities Inventory for both Support: Dave Emergency Operations Plan. electric and water services. The updated inventory Bolan will be completed by August 31, 2014, By September 30, 2014, the BWL will secure critical Infrastructure agreements with local EOC's for sharing its Critical Facilities inventory. The BWLwill then work with the Lansing EOC,and through them with other local emergency planners and municipal governments on integrating the Critical Facilities Inventory into the Regional Emergency Operations Plan, After August 31, 2014, the Critical Facilities Inventory update and integration process will take place on an as-needed basis but no less frequently than annually by the end of each calendaryear. 2 Lead: Emergency Assist all units of government representing its Agreed. As part of the process and timing Operations customer base with identifying Special Needs described in CRT##1 above, the 3WL will assist all Director Facilities for power restoration efforts, including units of government representing its customer Support: Dave assisted care facilities, elder care facilities,water base with identifying the Special Needs facilities Bolan and and sewer plants, food warehouses, Capital City identified in this Recommendation. Calvin Jones airport and trey industry. 3 Lead: George Undertake a program of technical assistance to Agreed. By March 31,2015,the BWL will complete Stojic critical facilities In its service area to determine a survey of critical facilities for possible combined the feasibility and net benefits of implementing a heat and power (CHP) opportunities. The survey micro-grid at each such facility, using combined will include existing distributed generators in the heat and power or renewable generation and BWL service territory as demand response storage. resources. The BWL will then work with the identified facilities to provide technical assistance in determining the feasibility of implementation of projects, Including purchase power agreements. This work will be completed by May 31, 2015. The BWL will also expand Its distributed solar energy program by August 1,2014. The BWL will continue Regular Board Mtg. July 22,2014 Page 22 of 48 Its program of grid sectionalizing to help preserve service to critical facilities with onsite generation. 4 Lead: George Explore various options to participate financially Agreed. As Indicated In CRTg3 above, by May 31, Stojic in implementing micro grids at critical facilities 2015, the BWL will explore participation options where they are feasible and beneficial, including with those candidates Identified In its survey of power purchase agreements,joint ventures, and CHP and distributed generation facilities, Board ownership. National Incident Management System Implementation&Training 5 Recognize Its role to assist Reglonal, City and Township Emergency Management in disaster response by implementing all of the following: a Lead: Emergency During any event where the City EOC is activated, Agreed. On April 4,2014,the BWL assigned three Operations Including during major widespread outages, a electric liaisons to the Lansing EOC and on April 8, Director trained and experienced BWL Liaison Officer 2014,the BWL assigned three water liaisons to the Support: Dave must be deployed to the City EOC. Lansing EOC. Each liaison is familiar with and Bolan and Dick either experienced in design or operations of the Peffley BWL electric or water distribution systems. Status:Completed. b Lead: Emergency Participate in all EM exercises sponsored by any Agreed. Within 60 days of being hired, the Operations units of government representing Its customer Emergency Operations Director will survey local Director base EOC's for scheduled EM exercises and request Support: Dave participation. The BWL's Emergency Operations Bolan and Director will be tasked with ensuring BWL Dick Pelf ley communicates with local units of government including coordinating BWL participation in local emergency exercises. c Lead: Emergency Assure that all operations employees receive Agreed. The BWL currently has the following ICS Operations basic NIMS training, trained employees: Director 100 Introduction to Incident Command:17 Support: All LBWL at a minimum the two introductory courses: ICS 2001CS for Single Resources and Initial Action Managers 1. FEMA 15-700, NIMS An Introduction; Incidents:13 2, IS-100.PW-B, Introduction to the Incident ICS 300 Intermediate ICS for Expanding Incidents: Command System (ICS 100) for Public Works; 14 ICS 400 Advanced ICS:13 that all first-line supervisors take those courses, IS G402 ICS for Executives/Senior Officials:35 plus ICS-200, Basic ICS; IS 700 National Incident Management System (NIMS)An Introduction:12 that all senior management officials take those 3 IS:800 National Response Framework,An courses,plus ICS-400, Advanced ICS. Introduction:2 Training Is continuing forthe remaining employees and must be completed no later than the following dates: 1.All BWL operations employees will complete the FEMA IS-700 IS-100 PW-B and the ICS 100 courses by March 31,2015 2.All Managers and First-line Supervisors will also take ICS 200 course by November 30,2014, 3.All BWL Directors will take courses in (1)and(2) and ICS-400 by December 31,2014. d Lead: Emergency 2) Participate in After-Action Reviews with all Agreed. The BWL 's Emergency Operations Operations units of government representing Its customer Director will be tasked with participating and Director base, not just post-exercise, but after every coordinating BWL participation with units of Support: major outage,disaster and emergency government representing Its customer base in all Appropriate BWL after action reviews, including exercises, major Managers outages,disasters and emergencies. The BWL will share Information, data, and Its experiences with other participants to improve regional emergency response. This will be an ongoing responsibility of the Emergency Operations Director with support from BWL Management and Staff. Regular Board Mig. July 22, 2014 Page 23 of 48 e Lead: Emergency Develop and maintain good working relationships Agreed. To develop and maintain a good working Operations with the first-responder community for all units relationship with the first-responder community Director of government representing its customer base for all units of government representing Its Support: Dave customer base, by the end of the third quarter Bolan, Dick FY15 the BWL's Emergency Operations Director Peffley, and Calvin and GRCSD staff will have met with first responders Jones from throughout its service territory to discuss emergency plans and responder roles. This recommendation will be an ongoing responsibility of the Emergency Operations Director. The BWL recognizes this on-going relationship as an Important component of the Unified NIMS structure and guidelines. Contingency Planning,Training and Exercises Statements Provided(pg.27) Continuity of Operations 6 Lead: Emergency Consolidate Its multiple emergency response Agree. The BWL's Emergency Operations Director Operations plans within the City and Regional plan, (see will oversee and complete the consolidation of Director below) and then test that plan by scheduling a BWL Emergency Plans by October 31, 2014, The Support: Dave full staff coordinated "table top" exercise at a BWL Emergency Operations Director will be tasked Bolan and Dick minimum of every 12 months, with coordinating BWL plan with local or regional Peffley plans by December 31, 2014 and on an ongoing basis as updates are adopted. The Emergency Operations Director will also be tasked with coordinating the BWL's participation in City or regional exercises. 7 Lead: Emergency BWL Staff and upper management should Agreed. The BWL's Emergency Operations Director Operations participate in the exercises and receive training will develop and coordinate an Emergency Director on these plans and regular refresher training. Management training program for all Managers Support: Dave BWL staff with emergency responsibilities should and staff with emergency responsibilities. The Bolan and Dick be required to have training on these plans and program will Include annual training. The initial Peffley their role and responsibilities and the role and training will be completed within 120 days of the responsibilities of others that will be involved Emergency Operations Director's hire. The with any emergency response. Emergency Operations Director will also conduct and coordinate emergency training with other local or regional emergency exercises. 8 Lead: Emergency Together with the communities in the greater Agreed. The BWL will work with local officials and Operations Lansing area (not just the BWL service area), others on a regional planning effort, coordinating Director undertake a regional planning effort to be better as appropriate with the State Police EMHSD District Support: Dave prepared and coordinated and assure that 1 Coordinator, When complete, the BWL will Bolan and Dick emergency communication protocols are agreed coordinate its Emergency plans with local EOC's Peffley to and followed, The mayors and township and will participate with local EOC's in regional supervisors of our communities must lead and planning and training, encourage this effort and provide the necessary resources.This planning effort should be done In coordination with the State Police EMHSD District 1 Coordinator. 9 Lead: Emergency Include Business Continuity Planning In its Agreed. The BWL's Emergency Operations Director Operations development of a comprehensive Emergency will coordinate development of a business Director Operations Plan. continuity plan as part of the BWL's EDP, with Support: Dave completion by March 30,2015. Bolan,Lennie Eva, Dick Peffley, Bruce Cook, and Nick Burwell Inter-agency Communications and Emergency Operations Center Regular Board Mt . 9 July 22,2014 Pace 24 of 48 10 Lead: Emergency Develop a comprehensive EOP, in coordination Agreed. The BWL's Emergency Operations Director Operations with the City EM officials,that is an Annex to the will consolidate BWL's emergency plans into a Director City EOP,consistent with MCL 30,410(1)(a) single BWL EOP by October 31, 2014 per CRTN6 Support: Dave above. The BWL Emergency Operations Director Bolan and Dick will be tasked with coordinating the BWL plan with Peffley local or regional plans by December 31, 2014 and on an ongoing basis as updates are adopted. The BWL Is committed to a sustained partnership with local EOC's and a Regional EOC and will support development of a regional EOC, should one be adopted. 11 Lead: Emergency Working Jointly with the City of Lansing and other Please see response to CRT H 10 Operations regional governments, develop a regional EOP Director which Includes a process for siting, supporting Support: Dave and sustaining a regional EOC. Bolan and Dick Peffley 12 Lead: Emergency Develop, in coordination with the governments Agreed. The BWL Emergency Operations Director Operations representing Its customer base,an Energy Annex will coordinate the BWL Emergency Plan with local Director to a Regional Emergency Operations Plan. governments and a Regional Emergency Support: Dave Operations plan. The BWL Emergency Operations Bolan,Gennie Eva, Director will coordinate the BWL plan with local and Dick Peff ley units of government by December 31,2014. 13 Lead: Calvin Jones Collaborate with Lansing Emergency Agreed. On January 23, 1014 ,the BWL's Support: Management, Lansing Police Department's Governmental Relations and Community Services Emergency Neighborhood Watch, Lansing Neighborhood Department (GRCSD)began a program of outreach Operations Council, East Lansing neighborhood associations to neighborhood associations, To date,the GRCSD Director and Dan and similar groups In all townships in the has been in direct communications; In person, by Barnes development of a program supporting block level phone, or by email; with all 124 known emergency response plans. This effort would neighborhood associations who's members, In build upon the well-developed social part, or entirely, fall within the BWL Service Infrastructure of Lansing's 186 organized territory. The GRCSD goal has been to promote neighborhood groups and prepare them to play communications and education regarding an Important role in planning for, responding to, preparations for future emergencies. The GRCSD is and recovering from extreme weather events. also collaborating with DolThing, the Red Cross, and The Power of We to make the BWL an emergency preparedness resource for the BWL's customer base. As an ongoing responsibility, the GRCSD will continue outreach to neighborhood associations and other local organizations in order to provide information, coordination, and assistance with emergency preparedness plans. Status: Completed except for Emergency Management portion. BWL Crisis Communications 14 Lead: Stephen Create a robust social media presence for its Agreed. The BWL has hired a social media Serekaian customers — this work is already underway specialist and has tasked the position with Support: Calvin internally, but must become a priority for Its undertaking and coordinating social media Jones, Bruce Cook, communications operations, as consumers are communications with BWL customers including, and Nick Burwell primarily using digital communication tools to among other media,updating the BWL's Facebook, learn about outages and other service issues. twitter, Nixie, and website. The BWL has recently created a near real time outage map with restoration times on its website. Status:Completed, 15 Lead: Emergency Require all communications staff and senior Agreed. The BWL communication, GRCSD staff, Manger leadership to undergo certified NIMS and leadership have already begun NIMS training. Support: Calvin communications training in order to understand The BWL's Emergency Operations Director will be Jones and Stephen best communications practices during crisis tasked with assuring communications staff annually Serkaian situations, with associated training events and update their training and that BWL's tabletop exercises to ensure coordination of communications staff and leadership team communications functions with regional participate in local and regional emergency governments. exercises. Regular Board Mtg. July 22,2014 Pa a 25 of 48 16 Lead: Stephen Further refine the March 2014 plan. The plan Agreed. The Crisis Communications plan was Serkaian must contain greater detail on how to address developed by consultants based on industry best Support: the need for timely and accurate information; practices. The BWL agrees that customer Emergency customer information must be consistently communications must be timely, accurate, Operations explained in a way that effectively meets consistent, meet customer expectations, and Director customer expectations;and the plan must assure provide sufficient information for customers to the provision of information sufficient to allow make Informed decisions. To ensure that the the public to make Informed decisions on how BWL's crisis communications plan meets those they may best respond. There is a considerable objectives, the BWL will continue to review crisis body of studies on this subject that should be communications studies and reports and make any drawn upon in the development of such a plan, necessary modifications to its plan by August 31, Once this plan is completed the BWL 2014, Following this, the Crisis Communications management and employees must be trained on, plan will be updated on an as-needed basis, with periodically exercise,and follow the plan. complete review and update performed annually at a minimum, 17 Lead: Emergency The crisis communications plan must be an annex Agreed. The BWL Emergency Operations Director Operations to the Emergency Operations Plan and should be will be tasked with consolidating BWL emergency Director guided by a qualified communications plans and will include the crisis communications Support: Stephen professional certified through the NIMS plan in the consolidated plan as an annex. Serkaian protocols. Emergency communications staff will undergo NIMS training, which will be completed by November 1, 2014, and at least one staff member will complete training for qualification through NIMS protocols. City Emergency Planning&the Collaborative Planning Process 18 Consider amendment of the City Charter to City of Lansing clarify the powers of the Mayor and to provide the Mayor executive authority over the BWL during disasters or emergencies 19 Lead: Emergency Emergency Management Director, working with Agreed. The BWL will participate in encouraging Operations all other member communities, Including and developing a regional emergency operations Director Ingham, Clinton and Eaton Counties, create a plan. regional emergency operations plan(EOP). 20 Lead: Emergency Work with BWL Operations and Senior Agreed. The BWL stands ready to cooperate with Operations Leadership to Integrate their BESOC and Crisis the City Emergency Director to fulfill this Director Command Center, using the NIMS framework, recommendation. with the City EOC. 21 Consider fully Integrating BWL employees into City of Lansing the City EM structure. 22 Lead: Emergency Recommend appropriate emergency Agreed. Training will be scheduled for BWL Operations management training for BWL leadership, leadership and Commissioners by end of fiscal year Director including Commissioners,on how best to build in 2015. NIMS and ICS training will be offered to resilience and ensure full response capability to Commissioners as well as training on resiliency. storms that are increasing in severity and frequency. 23 Lead: Emergency Sponsor or encourage a full scale training Agreed. The BWL will participate in full scale Operations exercise, involving emergency management staff regional training exercises. Director of all units of government and BWL In the tri- county region,to take place annually. Emergency Declarations Regular Board Mtg. July 22,2014 Page 26 of 48 24 That all units of government within or partially City of Lansing and local units of government within the BWL customer service area review their emergency operations plans to include a process for assessing the need for an anticipatory emergency declaration. ACTIONS FOLLOW-UP The BWL will include its distribution plan in its annual Expected completion date 10/16/14 table top tests designed to stress its emergency response and will use the results to continually improve Its emergency plans The BWL will consider implementing a set of triggers Completed 4/14 into its distribution plan. The BWL will consolidate its Transmission and its Completed 6/30/14, both plans updated and Distribution emergency response plans into one maintained simultaneously, however plans document. will not be fully consolidated into one document due to need to demonstrate NERC transmission compliance. The BWL will investigate the benefit of collaborating Expected completion date 8/29/14 with other Michigan utilities to track and estimate the impact of inclement weather. Based on the BWL's experience with the impact of Initial phase to expand and formalize the ice storm,the BWL will make use of additional secondary role program which inlcudes secondary role employees and these roles will be identification of position and roles required discussed in subsequent sections. for the restoration plan completed. Identification of employees for secondary roles completed 6/30/14,Training employees to fill secondary roles rescheduled for completion November 30, 201.4. Most utilities have not found placing overhead lines Completed 5/8/14 underground to be cost effective. Instead reviewing maintenance practices and construction standards seems to be a more reasonable method for improving the resiliency of the BWL's distribution system. However,for those customers who want and are willing to pay for undergrounding existing services,the BWL will provide the service. The BWL will strictly adhere to a 5 year trimming Completed 3/24/14 cycle and is in the process of modifying its tree trimming standards and procedures to remove all branches located above distribution lines and better protect its lines during a major storm. The BWL will begin to use multiple tree trimming Original expected completion date 5/16/14 contractors and assign work to contractors based on rescheduled to 8/29/14 due to contractors past performance. The contractor with the best need to develop deployment plan including record of performance will get a larger portion of the staffing levels. work. Recently,the BWL temporarily increased the number of tree trimming crews under contract to eighteen. The BWL will publish the contact information for its Completed 2/18/1.4 supervisor responsible for trimming scheduling so customers can contact the Manager directly with questions or complaints regarding tree trimming procedures and workmanship. Regular Board Mfg, July 22,2014 Page 27 of 48 The BWL is in the process of carefully reviewing Completed 5/29/14 spotter duty during the ice storm and determining how many additional trained spotters would be needed to efficiently secure down lines and provide timely damage assessment during an event with the destructive Impact of the ice storm. Based on this analysis,the BWL will survey Its staff for additional personnel who would be suitable for spotter duty and train personnel for both spotter and damage assessment duty. The BWL will also utilize retired line workers to Completed 5/9/14 perform damage assessments and serve as spotters. The BWL will consider contracting with electric Completed 5/30/14 service firms for damage assessment services to supplement its own staff. The BWL is developing common reporting forms and Original expected completion date 5/30/14 methods to be used by all spotters and damage rescheduled to 8/29/14; working with assessors and will stress the importance of adhering Osmose,contract firm for spotter and line to these during the annual training sessions. crew supply,on forms that are used with other clients. The BWL will evaluate the use of damage predictive Completed tools to determine if these tools could help In assessing possible damage earlier in a storm's approach. The BWL will remind customers that lines marked Completed 5/1/14 with red and white tape are power lines and the tape indicates that the BWL is aware that the line is down. The BWL will publish this information on its website and Customer Connections newsletter. The BWL has expanded the number of utilities and Completed 3/28/14 non-utility electric service contractors with which it has mutual aid agreements or service contracts.The list is shown below. Existing Agreements• Michigan Municipal Electric Association (35 Municipal Utilities)• Consumers Energy New Agreements- American Public Power Association•Asplundh• Kent Power• Hydaker-Wheatlake• FEMA Mutual Aid (Upon a Declaration of a State of Emergency) Pending Agreements• DTE Energy(Under Negotiations)These agreements both increase the number of potential crew sources and provide geographical diversity as well. For example the APPA agreement would enable the BWL to bring crews in from a number of different states. In the event of a declaration of emergency,the FEMA agreement would allow the BWL to bring in crews from nearly anywhere In the United States, The BWL is in the process of hiring 3 additional line 2 of 3 additional line workers hired along workers and an additional dispatcher to supplement with dispatcher. its workforce and to help manage crews during the restoration process. Regular Board Mtg. July 22,2014 Page 28 of 48 With the addition of 3 line workers,an additional Completed 6/30/1.4,triple number of crews dispatcher, more trained spotters,and the new available. mutual aid agreements the BWL has tripled the number of line crews that are available for immediate deployment and can be used safely and efficiently during a major outage event. The BWL does update its critical and public safety Original expected completion date 11/14/14, lists periodically to ensure that it is up to date and Electric Transmission and Distribution plans complete. The BWL will share its overall restoration updated 6/30/14. Update of critical list plans with local public officials so that they can be expected 8/29/14. Consolidation of BWL kept up to date on the BWL's restoration plans. If emergency plans scheduled for 10/31/14, another catastrophic storm does occur, local officials and coordination of BWL consolidated plan will be better able to respond to citizen inquiries with local officials expected to be completed regarding the restoration progress. by 12/31/14, Consolidation of BWL emergency plans along with table top exercises have increased the scope of this recommendation resulting multiple steps and a new final completion schedule. The BWL will review it's storm inventory based on Completed 3/21/14 the recent ice storm. The BWL will investigate connecting its line truck Completed 3/18/14 laptops to its OMS system as a tool to assist crews with storm responses. The BWL has resolved the matters related to the Completed and tested 3/11/14 OMS functionality. The conductor cuts are now operational and the OMS performs to design standards. To avoid this situation with other outage tools that Completed 3/11/14 may be employed in the future, the BWL will conduct annual stress tests of all its restoration tools including, but not limited to the OMS,outage call in number, Customer Service Center, and Communications plans. The BWL is moving forward with a project to Scheduled and budgeted for FY15 this will be implement smart grid and smart meter technology, a multi-year project which will allow it to identify individual customer outages. It will also develop a policy that will allow customers to "opt out"of smart meter use. c. customer communications: The BWL is hiring additional call center staff. Completed 2/24/14 The BWL has implemented a process to assure call Completed 2/13/14 forward to the 877 number occurs during large outages. This will allow CSR and supporting staff to concentrate on line down,voice mail and other communications mediums. The BWL will trigger the IVR in the 877 system to Completed 2/13/14 direct non-matched callers to voicemail during major outage events. The BWL has reconfigured the Call Center to send Completed 3/1/14 messages in the voice mailbox to CSR's automatically. Regular Board Mtg. July 22,2014 Page 29 of 48 The BWL is aggressively advertised the 877 number Completed 1/24/1.4 for outages including all available communications mediums, like magnets,social media, BWL Website, and other customer communications. During a major outage,the BWL Call Center staff will Completed 1/24/14 focus their efforts on responding to email,texts, Facebook,Twitter, and voicemails left on the outage reporting system with the goal of responding to storm related inquiries in a timely fashion. The BWL has expanded the number of employees in secondary storm roles to assist with these customer service functions, The BWL will ensure that the distribution plan Completed3/6/14 weather forecasting and storm preparation function include employees who are directly or indirectly, through secondary roles, responsible for customer service. This, along with other changes,will assure that the BWL can respond to customer inquiries promptly. The BWL is working with the 877 vendor to provide Original expected completion date 6/20/14 additional methods for customers to be identified or rescheduled to 7/31/14. Date moved due to matched when calling in to report an outage. This technical issues: vendor has changed the will include using the last digits of an account way the call back files must be sent and BWL number or social security number, is making the necessary technical adjustments. The interface between the 877 number and the OMS Completed 4/25/14 has been fixed and alarms will be added on each system to alert staff of any problems in the future. The BWL has added text outage reporting to the 877 Expected completion date 7/25/14 system to offer customers another method for reporting outages. The BWL is working on a method to provide quicker Completed 6/28/14 updating of customer data from BWL system to 877 system. This is Intended to provide better matches of customers to service addresses. The BWL is working to improve its ability to Completed 6/27/14 automatically call back customers and provide them with updated outage information. The BWL will continue its enhancements to its phone Expected completion date 7/25/14 system. The enhancements will use newer technology to increase Internet bandwidth, increase available phone lines, and make the system fully redundant across the BWL private city-wide network. This upgrade will allow the system to dynamically increase the number of available lines to the call center during a large outage, using many of them to forward calls to the 877 vendor site which Is designed for large volumes. The BWL has increased the TFCC voice mailbox size Completed to 8,000 messages and is in the process of contracting with another vendor to assist in responding to voice mailbox messages during a large outage. Regular Board Mtg. July 22,2014 Page 30 of 48 The BWL is investigating a separate site created just Completed 3/11/14 for outage information (Including outage maps). This will help ensure that the BWL's outage website will be available to customers in the event that a catastrophic outage disables the BWL's main website. Although the external email to Customer Service Expected completion date 8/15/14 functioned normally during the storm,the BWL is investigating establishing a redundant external email system. The BWL has developed a temporary web-based Completed 3/1.1/14 outage map for its website. The BWL Is also working with a local vendor for a permanent outage map linked directly to the BWL's OMS system. Phase I of the project covering functionality has been completed and development is underway, Phase I is Scheduled for completion soon. In Phase II of the project,the BWL plans to continue Completed 6/28/14 enhancements to all of its Information Systems that interact with customers.The next phase of the outage map product for BWL will include further interaction with our customers, allowing them to identify themselves to learn if our system shows them specifically out as well as possibly reporting an outage through the map system to our OMS system. Other enhancements and features are being evaluated. In addition to using Twitter and Faceboolc, the BWL is Completed 5/9/14 investigating the use of Nixie to communicate outage and other information to its customers. The BWL will work with customers and local officials The process of Identification and notification to determine how to make local officials aware of has been completed. The process will be seniors, customers with medical alerts,and other operational in the first quarter FY15 after vulnerable populations during extended outages. permission to share information has been secured from customers. The BWL will be more proactive informing customers Completed of where their responsibility for service ends,the service mast, and the BWL's begins. The BWL will maintain a list of qualified electricians Completed June 4, 2014 who can repair service masts and the BWL will help customers finance the cost of mast repair by allowing customers to pay it off on their bill over a one year period without interest. A list of qualified electricians will appear on the BWL's website. During events like the ice storm,the BWL will work Completed with local organizations to maintain warming centers in the winter and cooling centers in the summer for Lansing area residents. Regular Board Mtg. July 22,2014 Page 31 of 48 As an integral part of the Lansing community,the Completed and ongoing BWL will work with other organizations to respond to crisis that may affect mid-Michigan in the future. The BWL is supporting work by The Power of We and others to help empower neighborhoods to react to any type of emergency. The BWL pledges to be a part of that coalition and play its part in protecting the Lansing community and to meet with neighborhood associations to explain the BWL storm response plans and listen to their concerns and questions. Since ice storm outage restoration,the BWL's service Completed territory has experienced a number of severe winter weather events, and four separate outage events ranging from 100 outages to 7,400 outages. In all of the severe weather events,the BWL has posted,on all communications channels, at least two days prior to the forecasted weather,warning customers about the impending storm and directing them to call the BWL"877"outage number if they lost power. The BWL has also continuously posted updates, cold weather safety tips, and City of Lansing updates. During outages,the BWL has acknowledged the time Completed the outage began,the number of outages,the cause of the outage,the geographic area of the outage that can be found on the outage map,the projected time of restoration,and full restoration all clear. Communication improvements have been noted on Completed Facebook and Twitter with positive comments by our customers. The BWL has retained the communications firm of Completed Martin Waymire to help develop a crisis communications plan based on an examination of best practices across the utility industry to make sure it has a strong crisis communications protocol in place in the very near future. Martin Waymire will also assist during emergencies if needed. In the meantime,the BWL has a working interim crisis communications plan. The BWL has also hired a social media specialist, a Completed 2/17/14 newly created position.The social media specialist will help develop strategies on how to best communicate with our customers over all social media channels. The BWL will provide information to state and local Completed officials on a regular basis. During an event like the ice storm, it will assign a liaison to state and local officials to answer questions that they may have from their constituents. The Committee of the Whole reviewed the following: Regular Board Mtg, July 22,2014 Page 32 of 48 CRT and Governance Recommendations The CRT recommends that the Board of the BWL and the City: 1) Hire an "operational auditor" to conduct annual performance audits of the BWL operations and planning. Outcome: Instruct Auditor Perkins to come back with a proposal outlining what he sees as being an operational audit scope and the estimated level of work needed from an outside contractor. That information will be brought back to committee for consideration. 2) Establish a standing committee for review of, and contract with outside expertise for, an annual operational audit. Outcome: Deferred until further conversation with the Internal Auditor 3) Institute a training process for all board members in Carver or other Policy Governance Model. Implement and use the model and continue the training on an ongoing basis. Outcome: Agreed On/In Process 4) Request the City to consider provision to the BWL Board of expense reimbursement and/or some minor stipend for attendance. Outcome: Deferred 5) Create a Local Government Liaison Committee of Board members and local government representatives from remaining governments, which will meet quarterly to review service-related issues and to recommend changes, improvements, and innovations AND the Board must institute a clear process for plenary and due consideration and action on the Committee's recommendations Outcome: An Ad Hoc Committee has been established headed by Chair Zerkle. The Committee will examine this recommendation with the goal in mind to look at involving all those other local units and then determining the procedures that that would occur. The Ad Hoc committee is charged with finding the best way to implement the recommendation. 6) Request an opinion from the Lansing City attorney to clarify whether an ordinance or City Charter amendment could establish an expanded Board to include non-Lansing residents, to represent the municipalities within the BWL customer area. Outcome: In Process/Based on the Mayor's recommendations Board of: Commissioner Crisis Communication Plan The Committee had dialogue regarding the Board of Water & Light Board of Commissioners establishing own Crisis Report. After a lengthy conversation, it was determined the Committee would like to consider a draft of the Lansing City Council recommendations, and use their plan as a temple to create our own. Committee of the Whole Louney stated that he Regular Board Mtg. July 22,2014 Page 33 of 48 would work with the Corporate Secretary to revise the template and bring it back to the Committee of the Whole for review. Board of Water & Light Crisis Communication Plan General Manager Lark stated that the Board of Water & Light's Communication Plan was created by the firm of Martin Waymire, who surveyed a number of utilities throughout the country, a number of relevant utilities and came up with what they believe, was the best practices of crisis communications plan. General Manager Lark introduced, Board of Water & Light Communications Director Steve Serkaian to provide details of the plan. Mr. Serkaian stated the following: We asked Martin Waymire to look at best practices of utilities all across the country and without exception, found that our customers wanted to know three important things during an outages: 1) are you aware that my power is out; 2) what caused the outage, and 3) when will my service be restored. During the ice storm, quite frankly, we could only answer one of those questions - what caused the outage. Moving forward, these three questions, and answers to these questions have become our guiding mantra. Any customer outage, large or small since the ice storm, whether it's 12 outages like we had over the 4th of July, or larger outages, I think our biggest one was perhaps 3,500; we have communicated answers to all three questions, both through traditional media and through social media. Before we get to the actual crisis document and your questions, it is important to look at what the research found and how we address the research; because, those elements and those changes are every part of this plan, and something that we operate under every day; both with regular communications to our customers through social media, and traditional media about our day to day activities. Outages and everything in between, the research came back and suggested a number of things; the changes I am going to describe and the improvements I'm going to describe, have been the direct result of work by dozens of people at the BWL. I only had a small part of it; dozens of folks continue to work on improvements lead by our general manager, Mr. Lark, and it's important to tell this Board and the public that, in my experience in working for public entities there has been a sea change of ways we have done things differently. These are important changes that we're communicating though our newsletters and to the media, but at some point there's going to be an end point to the focus on us, so that we do our day-to-day business and do it well, as we have for more than 100 years. Mr. Lark mentioned a lot of things in his review of the CRT recommendations. Let me get back to the findings of the research of Martin Waymire made, they found the best practices across the country that additional communications channels are necessary to allow customers to communicate easily and conveniently with us. During the ice storm, we only had one 877 line, and because of the problems with the OMS, we were unable to communicate with customers. They were only able to effectively communicate with us, and we couldn't tell them when their power was going to be restored. Those problems have been fixed, addressed, and tested. We now have additional sources of how we can communicate Regular Board Mtg, July 22,2014 Page 34 of 48 with our customers, and our customers with us; our interactive outage map, which is in our outage center, now has the ability for customers to report an outage. They can check whether the power is on or off, and will be able to get right-now restoration time, as they were able to get that through the 877 number. Targeted for early August, we are going to launch a mobile app for all of our customers to download on their mobile platforms whether it is a smart phone, tablet, and so on; the mobile app would be able to allow customers to report outages and get updates on outages, and this coming December, we are going to launch a new feature that will allow our customers to report outages via texting from their phones. Therefore, from December and January, the communication vehicle will have multiple communication vehicles that our customers can communicate with us. During the ice storm, we had outage information scattered throughout our website, and not easily found. Since then, we have created an icon on our front page; if you click on it, it goes directly to the outage center and on that outage center is an outage map, and you can click that to see an outline of our service territory and inside our service. If there is anything inside the map relative to outages, you can just hover over it with your mouse. The site refreshes every 15 minutes. It has changed the way that I have done business with reporting outages because, once I get the alert, I go directly to the outage center to see the outage map and what the boundaries are; that has streamlined and made my job more efficient in communicating with Amy Akers' support, and reporting to the social media what the boundaries are, what the restoration time is, and through our other Internal information, what the cause of the outage is. Therefore, the outage center has been, and is interesting to see because our customers are giving each other updates; I call that the market correcting itself, and it's wonderful to observe. Now with our ability to push people to our outage map and the outage center, it is a really convenient thing, for which our customers screamed for during the ice storm, and that we now have, six months after the fact. We've got the outage center prominently displayed on our home page; the outage map has been updated to allow folks to post their outages and to get updates on restoration, that's going to be in the August "Connections," so it will go customer-to-customer directly through the billing insert. We also have a number of tabs that talk about what to do when the lights go out, how to prepare for outages, how the BWL handles outages, vegetation management information. We've got a sign up on the site along with social media streams, both on Facebook and Twitter. The research also told us that we have to do a better job communicating with all of our key audiences before the crisis happens, and before the storm hits; now at least two days before a forecasted storm, we are communicating with our customers and media both, though traditional media and social media. Advising that a big storm is on its way and we think it's going to hit, if it does we're ready, we've got crews on stand-by and that these are things that you need to do if your power goes out; in particular, we push them to two places one the 877 number. We've also expanded our constituent groups through which we send social media and traditional media updates; to those constituent groups beside the board, our internal list, all master media lists, including an expanded governmental list of all local, county, and state officials throughout our service territory. We have created our neighborhood association list throughout our service territory, we have a faith-based list and, in all press release communications, we sent emails to them not only during outages and crises, but also in our day-to-day stuff because, it is important that these constituent groups know the kind of Regular Board Mtg. July 22,2014 Page 35 of 48 things that we are doing. Now in every outage, even minor outages of 10, 100, 500 or more than 1000, we always post, that we know about the outage, we know where it is, and we try to give a restoration time. Information is always posted on social media, as that's where all our customers are going for information. We post a Twitter message about an outage, and we find many times that the media, the Lansing State Journal and Channels 6 and 10 are re- tweeting our posts. A number of commissioners are also re-tweeting our posts. So there is no longer, a silver bullet of how we are communicating with our customers, it is multiple mediums and it is multiple ways that people are getting the information. We have also created an email group list that we send to our constituent groups, we have also created a number of templates, that give us direction on how to address a small outage, a medium sized outage and a large sized outage, and the same is on the back of the crisis plan that was included in your packets today. I believe there were about 9 templates that we included in March, when we released the plan and has now grown to about 17. The crisis plan itself is sort of a living breathing document that is always being adjusted. For instance, when the emergency manager comes on board, we will have to fold this new position into it to reflect this person's leadership with a crisis. Therefore, we are constantly making tweaks to the templates. We are also developing a power point presentation that senior leadership including Mr. Lark will be taking to the community. These are all things that we're doing to communicate the changes we have made since the ice storm. The BWL was also told that the tone of communications needs to be improved, and that that traditional media communications and social media posts regarding outages should reflect our humility; that we should apologize to customers for the outage; that we should thank them for their patience in enduring an outage and we try to do that In every instance of an outage. Lastly, the research said to put standard operating policies and protocols in place to guide communications during routine practices, outages, whether large or small, and crises that the ice storm reflected; we have done that. The kinds of changes that I have characterized, the elements that have gone into the crisis plan is something that we operate under every day, and if a major outage hits our community tomorrow, we are going to be in much better shape in terms of communicating with our customers and being able to respond in appropriate way both in terms of communications and operationally so that we can get our customers power back on, as quickly as possible. Mr. Sarkaian spoke about marketing efforts that have taken place, or have been put into place since the ice storm. For Example "The Power of We" and "Do 1 Thing" have been implemented as a tool to help with outreach. There was a lengthy question and answer session regarding the responsibilities of the Emergency Manager, the Board of Commissioner communicating with media, and the inclusions of a Board member on the crisis communication team. Committee of the Whole Chair Louney thanked Mr. Sarkain for his efforts on the presented crisis communication plan. Dialogue re: Board of Commissioners Governance Training. Regular Board Mtg. July 22,2014 Page 36 of 48 The Committee of the Whole had dialogue regarding the desire for governance training. Board Chair Zerkle presented a proposed agenda as well as a bio 'on a recommended presenter for the training. After some dialogue and reviewing the presented proposed agenda, it was determined that this may be a good place to begin, however, there was uncertainty regarding this proposed agenda, and the proposed presenter regarding obtaining the desired educated outcome. Upon conclusion of the discussion, it was determined that the Board Chair would have the Corporate Secretary send an email asking the Board of Commissioner to submit to their expected learning outcome and/or specific agenda subjects that you would like addressed in the governance training. Other Board Chair Zerkle conveyed that she and Human Resource Chair Thomas are prepared to start the process for negotiating the contract for the 3 appointed employees. There was a lengthy conversation regarding the evaluation and negation process. Human Resource Chair Thomas stated that there was a process established last year and the same process would be used this year. Committee of the Whole Chair Louney stated during this dialogue what he heard was that we had a process in place and some board members are saying that they think the process needs to be reviewed and I feel that that is an issue for the HR committee to look at, if the chair deems it necessary. Committee of the Whole Chair Louney stated that he was notified last week about a legal case that was not on their legal update, and asked that the General Manager contact the Commissioners' by email and provide some details. General Manager Lark in response stated that he was not aware of such a case but would look into it. Excused Absence None Public Comments None Adjourn On Motion by Commissioner Price, Seconded by Commissioner Bossenhery, the meeting adjourned at 8:12 p.m. Respectfully Submitted Dennis M. Louney, Chair Committee of the Whale FINANCE COMMITTEE July 8, 2014 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 8:23 p.m. on Tuesday, July 8, 2014. Finance Committee Chairperson Margaret Bossenbery called the meeting to order and asked the Corporate Secretary to call the roll. The following members were present: Regular Board Mtg. July 22,2014 Page 37 of 48 Commissioners Margaret Bossenbery, Tony Mullen, Dennis M. Louney; Also present Commissioners David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: None Public Comments Chuck Slammer, Lansing, MI, spoke in opposition of the proposed rate increase. Approval of Minutes Motion by Commissioner Price, seconded by Commissioner Louney to approve the Finance Committee meeting minutes of May 21, 2014. Action: Carried Unanimously Finance Chair changed the order of the Agenda. External Audit Communication to the Board — Presented by Plante & Moran General Manager Lark introduced external auditor Doug Rober, Partner with Plante Moran (P&M) and Marie Stiegel, Manager with P&M, who reviewed and presented the Auditing Process. Mr. Rober said this is the beginning of the audit process and part of that process is to meet and present governance with an overall analysis of the audit plan. This also provides an opportunity for the Commissioners to provide any insight on whether there is anything specific that they are aware of or would like us to focus our time on in addition to what is planned in the audit. Mr. Rober stated that the scope of the Audit that will be performed is to express an opinion of the financial statements of the Board as well as each of the pension plans. He stated there will also be a management letter or significant deficiency letter if required at the end of the engagement, ultimately issuing an AU260 communication letter. He said their focus is to perform procedures on the financial information that is the responsibility of the management and the Board. He stated they will be getting together with the Board again to discuss the results. One of the required communications is a letter summarizing how the audit went and what the findings are, and that is in addition to the report letter pertaining to the financial statements. If there were financial matters found, that warranted the Board's attention that would also be communicated in a letter. Ms. Stiegel reviewed Management's responsibility in the Audit process as well as the following: ■ Audit Process ■ Auditor Responsibility • Management Responsibility ■ Testing Phases • Required Discussion Points ■ Significant Risk Misstatement • Responses to Significant Risk Misstatement ■ Additional Required Discussion Points ■ Communication to those Charged with Governance Regular Board Mtg. July 22,2014 Page 38 of 48 Commissioner Price questioned the status of the pension plans with all that is going on in the economy, and wanted some reassurance that the Board of Water & Light is in good shape. In response Ms. Stiegel stated through GASB 67, you will have some disclosures that provide a measurement of that. Commissioner Louney questioned if Plante Moran did operational audit for utilities. In response Mr. Rober stated that they do have experience in that area. He stated when performing an operational audit, they listen to the scope of what an organization wants them to focus on, and then a specific audit is designed against those particulars. Mr. Rober asked the Board of Commissioners if there were any areas of concern that warrant attention or additional procedures. In response to Mr. Rober's question the Board of Commissioners stated no areas of concern. Request to Publish Notice Re: Proposed Rate Changes General Manager Lark said what is before you is a resolution a Resolution requesting approval to set a Public Hearing date of September 18, 2014 on the rate recommendations. A notice would be published in the newspaper by August 27th. There would be a Committee of the Whole of meeting on September 9, 2014, in which we would give you embellished upon, as well as refined documents regarding the rate changes, so that you can have a good idea of what we are going to put forward at the Public Hearing. The Board would meet on September 23, 2014 to decide on whether or not to invoke the rate increase. General Manager Lark reviewed the Impact of Proposed Rates Increases. He said that the proposed rate increases are Electric 7%, Water 9%, Steam 9% and Chilled Water 3%. What this increase would do is bring us a net income of approximately $8M. If we are to have a return on assets on 6.18% as the Board instructed back in 2008, that net income would be $33M. So you can see the return on assets with these increases for a full year would amount to 1.12% return on assets. The return on assets is an important figure, the money that we use to keep our plants up, refurbish, and take of the depreciation that we have at the Board of Water & Light. Without the increases, the net income becomes ($11M). General Manager Lark reviewed the following: Effect of All Proposed Rate Change on a Typical Monthly T Presidential Electric Hill Using 550 kWh of Electricity Per Month gt ECTRXt t 61./10a4 $wvlce charge Spar m.,th) $8.10 $10.00 Re.able Energy Plan $2.50 $0,75 Co d&y(P.,Kw*tut 5V4 Ewn $0.0937 $0,1001 core dRy tyro xmn7 wxc+xe xwn $0.0989 ---�w vx+onee-,---n $0.1050 [CA $0.022095 $0,022095 Energy00tlmzadon S0.001653 50.001853 Eatmted MonNy Use 550 kWh $eryke Charge $8.10 $10.00 Renewable Energy Plan $2.50 $0.75 Com+od&v t 64.97 6 Total W t75.57 t79.2$ Regular Board Mtg. July 22,2014 Page 39 of 48 jEffect of a 9% Rate Increase on a Typical Monthly Residential Water Bill Using; 6 cc9' of Water Per Month WATER: R 114dL2,B,7;& Service Charge{par raped,) $11,19 ---a,aw $12.20 Co' dlty(perecr) $2..56 ----9.0k $2.79 PCA $0.128 $0.120 Estimated Montl* Use 1,500 galions 4,5e0"10". 6 CO 6 CCf Service Charge $ 11.19 $ 12.20 COrm%,dltY S 16.13 3 17 R} Total Nil $ 27.32 $ 29.71 14f-s@3- General Manager Lark stated that the Board should strongly consider approving a rate increase. Among the reasons is in the last 2 years, we have not had a rate increase and during that time there has been inflation. Over the last 2 years, there has been roughly 6% increase in inflation and that is certainly a contender for reasons for a rate increase. There are expenses related to hardening our system for the storm (new hires, tree trimming expense) and the Return on Equity that is now 6.1%. General Manager Lark respectfully requested that the Finance Committee forward the proposed Resolution setting a Public Hearing for September 18, 2014 to the full Board for consideration. Motion by Commissioner Price, seconded by Commissioner Mullen to forward the proposed Resolution to set a Public Hearing to the full Board for consideration. Action: Motion Carried Internal Audit Update Internal Auditor Phil Perkins, presented an overview of : Internal Auditor Status Update • FY 2014 Audit Plan Progress Report • Proposed FY 2015 Audit Plan • Other Upcoming Items FY 2014 Audit Plan Progress Report Engagement Completed: 1. Fuel Procurement Audit 2. Records Retention Audit 3. Accounts Payable Audit 4. Close the Books Audit—complete; report to be issued shortly. 5. Surprise Cash Counts (2) 6. Time Reporting Reviews Engagement in Progress: Regular Board Mtg, July 22,2014 Page 40 of 48 1. Software Licensing Compliance Audit—fieldwork about complete; report to be issued in August. 2. Draft Report to be issued shortly; audit 95% complete. Proposed FY2015 Audit Plan Basic for plan: 1. Risk assessments and ratings for each of 100-plus auditable activities at BWL. 2. Consideration of rotational audits, audit areas with risk/scoping assessments, first-time audits, etc. 3. Review and input by management. 4. Selection of the top audit candidates based on (1)through (3) above. Proposed FY 2015 Audit Plan Planned Audits: Estimated Hours Materials Inventory Management 400 EngineeringlServices—Annual Projects 400 Health Insurance & Prescription Drug Plans 400 Fallow-up on Post-Outage Recommendations 400 IT— Payment Gard Industry (PCI) Compliance 300 IT— Management of Non-Desktop Field Devices 300 Other Engagements: Surprise Cash Counts (2) 40 Time Reporting Reviews (2) 160 IT Risk Assessment(continued from FY2014) 100 Potential Consulting or Other Engagement 100 Total Estimated Hours ZAN Motion by Commissioner Mullen, seconded by Commissioner Louney to approval to adopt the Audit Plan. Action: Motion Carried Motion by Commissioner Mullen, seconded by Commissioner Price, to maintain the Internal Audit Charter as currently written. Action: Carried Unanimously Internal Auditor Perkins informed the Committee that he recently made some changes to the Internal Auditing procedures and would provide the Commissioners with an electronic list of the changes. Finance Chair Bossenbery introduced a proposed policy for the Finance Committee to take a look at, and consider forwarding to the full Board for consideration and approval. Chair Bossenbery stated that we get Audit reports from Mr. Perkins periodically and part of those audits include actions from management that need to be taken care of. There is not a formalized procedure for management to get back with Mr. Perkins in response to the Regular Board Mtg. July 22,2014 Page 41 of 48 completion of actions and recommendations. Mr, Perkins has drafted a procedure, so that he has a tracking system to ensure implementation of actions, thus a policy. Mr. Perkins stated that it is important to have this policy in place because it gives him, as well as the Board, a window as to how progress is being made, and getting corrective actions completed and in turn will help with future audit planning. Draft:-Proposed Boa;d Policy art Follow-up to internalAudit Fill IMS FEetonnneru3at4[ms General Responsibilities. lntetttal.iludiL.The Internal Auditor is responsible for performing the annual h emal Auclit Plan approved by the Finance Committee of the Board.This includes but is not limed Ii 1. Informing management of any potential issues during audit engagements and briefing the results of audits including any findings priorto releasing a draft audit report to management. 2. EoxmaVY,acesamiagJ6a;[kskUts_uCeardaauclitengagtme,J iltsvaGug,.Repans of audit will include any reportable findings,recommendations,and management's responses to the findings and recommendations. 3. Following up on previous audit findings and management responses to ensure that the corrective action(s1 noted in the responses sYeca.lntsstlgkath and that those actions corrected the problems)identified. Lkaslsteff2pA.Management is to respond with actionable responses to each reported finding and recommendation in the internal auditors report within an agreed-upon timeframe. Each management response should contain the following: t. AskaaixledgxauulnJ.asgle�menAW[.disesteem.�'d.if.aaalisahlel.�silUlre.ausliJ., fu>dirg,.auA.rasaromeudadgu, 2. A specific action or actions being taken(or already taken]to address the problems}noted in the finding and recommendation. 3. A statement that eiJheJ.affi[nt5.t1]at.tlta.slAted�.077A��t'JxC.d&tiAnf3lba,?Ibaue.. al[eadY.t>'sancaroplele d.at.itnAl..an,estimate.,d,�nts.YAtenmanagsmeoJ.Axlieyes, U7fi.6A1fd4JIY9.id61ipAtS1wtll be completed- The estimated completion date should be management's best estimate,based on available resources,priorilies mid schedules as to when the corrective action(s).paJ7,;gpgpga¢AY.�k.kSNR&4&£fl&fd9. spmpindeA Follow-Up of Oven Mananement Responses to Audit Findings: 1. Ssherfule.of OcenAc[ons. For each management response for which the corrective action Is to dip-ccRIpleted by an estimated future date,a schedule will be developed to track,on at least a quarterly basis,the status of such corrective actions until they ore completed. a. There should be a notation each quarter regarding progress,if any,toward completion of the corrective action. If other priorilies precluded further progress during a quarter,Ibis shAgtdke.se..steslgd. b. The Internal Auditorwiil receive an updated schedule each quarter and keep the Fine nce Chair apprised of action ccmpletion and status. 2. Schedule Usage. a hdananoment. Wriagementwill use the schedule as a tool for reporting progress on open corrective actions to the Finance Committee quarterly_ b. tnlernalAuditgr The Internal Audlforwlll use the schedule to help in future planning efforts end to ensure that management's corrective actions ataA2Ul5titaplealentedas stated in the management responsesto audit reports. Motion by Commissioner Price, seconded by Commissioner Louney, to approve the Policy on following up to the Internal Auditors finding and recommendations. Action: Motion Carried Regular Board Mtg. July 22, 2014 Page 42 of 48 Excused Absence None Other None Adiourn On Motion by Commissioner Price, seconded by Commissioner Louney, the meeting adjourned at 9:15 p.m. Respectfully submitted Margaret Bossenbery, Chair Finance Committee MANAGER'S RECOMMENDATIONS General Manager Lark presented the Resolution for the 2015 Rate Adjustments. The Resolution provides that there a proposed rate adjustments and that they should be subject to further consideration after a Public Hearing and the Resolution further provides that this Public Hearing should take place on September 18, 2014 at 5:30 p.m. and that notice should go out. The proposed rate increases are 7% for Electric, 9% for Water, 9% for Steam and 3% for Chilled Water. When it comes to water there is a $1.75 reduction for the Renewable Energy Charge, so thus the average residential customer will see a 4.88% increase if the Board approves the rate increases. General Manager Lark respectfully requested that the Board approve the Resolution setting the Public Hearing for September 18, 2014. ,0ESOLUTION_#201f 4-07-01 Public Hearing for 2015 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 $19.7 million of Electric net income, $9.5 million of water net income, $2.7 million of steam net income, and $1.3 million of chilled water net income; and WHEREAS, the Fiscal Year 2015 budget filed with the City of Lansing included proposed rate increases for the electric, water, steam, and chilled water utilities; and WHEREAS, the Fiscal Year 2015 budget with the proposed rate adjustments would result in an electric net income of $532,000 or a 0.12% return on net fixed assets and materials and supplies; and WHEREAS, the Fiscal Year 2015 budget with the proposed rate adjustments would result in a water net income of $2.0 million or a 0.93% return on net fixed assets and materials and supplies; and Regular Board Mtg. July 22,2014 Page 43 of 48 WHEREAS, the Fiscal Year 2015 budget with the proposed rate adjustments would result in a steam net loss of $814,000 or a negative 1.34% return on net fixed assets and materials and supplies; and WHEREAS, the Fiscal Year 2015 budget with the proposed rate adjustments would result in a chilled water net income of$820,000 or a 2.81% return on net fixed assets and materials and supplies; and WHEREAS, BWL management proposes to increase annual electric billings by$16 million; and WHEREAS, BWL management proposes to increase annual water billings by$3.3 million; and WHEREAS, BWL management proposes to increase annual steam billings by$1.0 million; and WHEREAS, BWL management proposes to increase annual chilled water billings by $0.2 million; and WHEREAS, BWL management proposes to add an Economic Development Rider for large commercial and industrial customers; and WHEREAS, BWL management proposes to roll June 2014 ECA rate into Electric Rate Base (rate neutral); and WHEREAS, the proposed rate adjustments will not take effect until November 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 September 18, 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 offices, 1201 S. Washington Avenue, in the Depot facility. The Corporate Secretary is directed to file with the City Clerk no later than August 4, 2014 information regarding proposed rate adjustments with an effective date of November 1, 2014. Motion by Commissioner Price, Seconded by Commissioner Mullen, to approve the Resolution setting a Public Hearing for September 18, 2014 to considerate 2015 Rate Adjustment. Action: Motion Carried UNFINISHED BUSINESS There was no Unfinished Business NEW BUSINESS Nominating Committee Chair Mullen stated there were no nominees for the Officer position of Vice Chair forwarded to the full Board for consideration. Committee Chair Mullen asked if Regular Board Mtg. July 22,2014 Page 44 of 48 there were any nominations from the floor for the Officer position of Vice Chair. There were no nominations from the floor and the nominations were closed. Motion by Dennis Louney, Seconded by Commissioner McCloud to nominate Commissioner Margaret Bossenbery for the Officer position of Vice Chair. Action: Motion Carried Nominating Committee Chair Mullen stated consistent with the committee report, David Price is the nominee being forwarded to the full Board for consideration of the Officer position of Chair. Nominating Committee Chair Mullen asked if there were any nominations from the floor for the Officer position of Chair. There were no nominations from the floor and the nominations were closed. Motion by Commissioner Ward, Seconded by Commissioner Bossenbery to nominate Commissioner David Price for the Officer position of Vice Chair, Action: Motion Carried (6/2 Thomas, Zerkle) Chair Zerkle stated that the Executive Committee consist of the Chair, Vice Chair, Past Chair and a 41" Member elected by the Board. There was a Point of Order raised by Commissioner Price regarding the process pertaining to the selection of the Executive Committee members. After some dialogue and confirmation from the Board of Water & Light's Rules of Procedure, Commissioner Price withdrew his objection. Motion by Commissioner Zerkle, Seconded by Commissioner Mullen, to nominate Commissioner Thomas at the 41h Member of the Executive Committee. Action: Motion Carried RESOLUTIONS RESOLUTICSN#20 G4�07�02 Appointment of the Charter Position of Corporate Secretary The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July 1st of each year or as soon thereafter as may be appropriate. RESOLVED, That the Board of Commissioners hereby appoints the following individual to the Charter position of Corporate Secretary for fiscal year 2014-2015, or, until a successor is appointed, whichever last occurs: M. Denise Griffin, Corporate Secretary Regular Board Mtg. July 22,2014 Page 45 of 48 Motion by Commissioner Louney, Seconded by Commissioner McCloud Ward, to reappoint M. Denise Griffin to the Charter position of Corporate Secretary for fiscal year 2014-2015 Action: Carried Unanimously KESOLUTION#2014-07-03 Appointment of the Charter Position of Internal Auditor The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July I" of each year or as soon thereafter as may be appropriate. RESOLVED, That the Board of Commissioners hereby appoints the following individual to the Charter position of Internal Auditor for fiscal year 2014-2015, or, until a successor is appointed, whichever last occurs: Philip Perkins, Internal Auditor --------------------- Motion by Commissioner Bossenbery, Seconded by Commissioner Mullen to reappoint Philip Perkins to the Charter position of Internal Auditor for fiscal year 2014-2015. Action: Carried Unanimously RESOLUTION #2013-07-04 Appointment of the Charter Position of Director and General Manager The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July 15t of each year or as soon thereafter as may be appropriate. RESOLVED, That the Board of Commissioners hereby appoints the following individual to the Charter position of Director and General Manager for fiscal year 2014-2015, or, until a successor is appointed, whichever last occurs: 1, Peter Lark, Director and General Manager ---------------- Motion by Commissioner Bossenebery, Seconded by Commissioner McCloud to reappoint J. Peter Lark to the Charter position of Director and General Manager for fiscal year 2014-2015. Action: Motion Carried (7/1Ward) C2ES0 LUTI O N #2013-07-05_ Board Policy on Follow-up to Internal Audit Findings & Recommendations General Responsibilities: Regular Board Mtg. July 22,2014 Page 46 of 48 Internal Audit. The Internal Auditor is responsible for performing the annual Internal Audit Plan approved by the Finance Committee of the Board. This includes but is not limited to: 1. Informing management of any potential issues during audit engagements and briefing the results of audits including any findings prior to releasing a draft audit report to management. 2. Formally presenting the results of each audit engagement in writing. Reports of audit will include any reportable findings, recommendations, and management's responses to the findings and recommendations. 3. Following up on previous audit findings and management responses to ensure that the corrective action(s) noted in the responses were in fact taken, and that those actions corrected the problem(s) identified. Management. Management is to respond with actionable responses to each reported finding and recommendation in the internal auditor's report within an agreed-upon timeframe. Each management response should contain the following: 1. Acknowledgement of agreement (or disagreement if applicable) with the audit finding and recommendation. 2. A specific action or actions being taken (or already taken) to address the problem(s) noted in the finding and recommendation. 3. A statement that either affirms that the stated corrective action(s) has/have already been completed or, if not, an estimated date when management believes the corrective action(s) will be completed. The estimated completion date should be management's best estimate, based on available resources, priorities and schedules as to when the corrective action(s) can reasonably be expected to be completed. Follow-Up of Open Management Responses to Audit Findings: 1. Schedule of Open Actions. For each management response for which the corrective action is to be completed by an estimated future date, a schedule will be developed to track, on at least a quarterly basis, the status of such corrective actions until they are completed. a. There should be a notation each quarter regarding progress, if any, toward completion of the corrective action. If other priorities precluded further progress during a quarter, this should be so stated. b. The Internal Auditor will receive an updated schedule each quarter and keep the Finance Chair apprised of action completion and status. Regular Board Mtg. July 22,2014 Page 47 of 48 2. Schedule Usage: a. Management. Management will use the schedule as a tool for reporting progress on open corrective actions to the Finance Committee quarterly. b. Internal Auditor. The Internal Auditor will use the schedule to help in future planning efforts and to ensure that management's corrective actions are being implemented as stated in the management responses to audit reports. Motion by Commissioner Bossenebery, Seconded by Commissioner McCloud to approve said Policy on follow up to the Internal Audit Findings and Recommendations. Motion: Carried Unanimously MANAGER'S REMARKS General Manager Lark stated the following: The clock of life is always ticking forward pushing us in the next moment, but to embrace our future we often have to look back and appreciate our past. Chair Sandra Zerkle has lead the Board for the past five years with strength, grace and integrity. She has been at the forefront of change often without recognition. After five years of being Chair, It seems only fitting that I take a minutes to give a few examples of how her leadership improved the Board of Water & Light. Under her leadership, with the full support of the Board, we replaced ageing Chilled Water production facilities located in the floodplain with state of the art electric chillers, in a new plant located downtown Lansing Capital complex. With her firm support in July of last year, we launched our new Co-generation Plant, that replaced steam boiler that was more than one-half a century old added electric generation and provided the Board of Water & Light with a new headquarters. Our community is healthier now that less coal is being burned and for that, we applaud Sandy and the Board. Thanks to her backing and that of her colleagues, we are now Michigan's largest municipally owned solar array. The Cedar St, solar ray expansion has nearly tripled the arrays generating capacity. But these are more than just words on paper, they are reminders of how our community has grown and improved in the last five years and all of these accomplishments were successful because of the Board actions under the leadership of Sandra Zerkle. Mr. Lark thanked Chair Zerkle on behalf of everyone at the Board of Water & Light and the customers for leading this company forward and making it better. General Manager Lark presented Chair Zerkle with a commemorative plaque for her time as Chair. COMMISSIONERS' REMARKS In response to Mr. Lark's comments, Chair Zerkle, stated this was highly unexpected and very greatly appreciated. What we do here is not done by one person, it is done by eight Commissioners and she thoroughly enjoyed the support and working with the Commissioners. It has been great working with the staff and the Board's three employees. It has been a great honor to serve. Chair Zerkle announced that former Commissioner Bob Cochran passed away last week. She said that he was very helpful to her when she first became a Commissioner. Chair Zerkle also Regular Board Mig, July 22,2014 Page 48 of 48 said that she wanted to make note of Commissioner Thomas's efforts pertaining to the evaluation and the contract process for the Board's three employees, it has been a very transparent effort on Mr. Thomas's part. Commissioner Bossenbery, expressed her gratitude to her colleagues on the Board for selecting her as Vice Chair and said that she is looking forward to working with everyone in the Vice Chair capacity over the next year. She said that she has served on the Board for five years and during that time the Board has achieve much, but more can be done. She stated that the Board has been through a trying time and there is a lot of work to do to move forward. She stated while those of us around this horseshoe may have differences of opinions on issues that may come before us, at the end of the day we all agree that what we all want is to make the Board of Water & Light the best it can be. Commissioner Price said that he looks forward to working with all of his fellow Commissioners, the three staff members and the Board of Water & Light's staff. It has been a tough six months for everyone but believes that we are over the biggest hump. We have a road map and we are grateful to the CRT Team for their suggestions; The Board of Water & Light's staff has gone a long way with implementing most of the CRT's suggestions and will continue to work on those. The Board of Commissioners' have some work to do on the suggested recommendations in which we started working on at the last Committee of the Whole meeting. He said that he is looking forward to implementing the recommendations and thanked everyone for their support. Commissioner Thomas thanked his fellow Commissioners for their vote of confidence regarding the Executive Committee. He congratulated the new Chair and Vice Chair on the election to their new positions. For the Record Commissioner Thomas stated that he is looking forward to working under the leadership of newly elected Vice Chair Bossenbery and is ready, willing and able to serve. He also congratulated the Board's three appointed employees on their reappointments and he thanked Legal Counsel Ekren for her assistance over the last few months. EXCUSED ABSENCE None PUBLIC COMMENTS Mary Brady Anderson of Lansing spoke on behalf of Clean Water Action. She congratulated the Board of Water & Light on being the largest solar array municipality in Michigan. She provided the Board with information pertaining to results from a survey that her organization performed regarding community solar. She stated that complete results would be provided at a later date, ADJOURNMENT The Gavel was passed from Chair Zerkle to Co 11 mmissioner Price to assume the duties of Chairpersdn of the Board-of Water&Light Board of"Commissioners'for 2014-2-m On motion by Commissioner Bossenbery, seconded by Commissioner Mullen the meeting adjourned at 6:00 p.m. M. Denise Griffin, Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk:August 6,2014 Official Minutes filed(electronically)with Lansing City Clerk:September 25,2014