HomeMy WebLinkAbout2013 - Boards, Commission, and Authorities - Meetimg Minutes_11_01Chris Swope
Lansing City Clerk
November 1, 2013
President Wood and Members of the Lansing City Council
1 Oth Floor City Hall
Lansing, Ml 48933
Dear President Wood and Council Members:
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
Board of Police Commissioners
Board of Public Service
Board of Water & Light Board of Commissioners
Police & Fire Retirement System
Downtown Lansing Inc. Board of Directors
DATE OF MEETING
September 17, 2013
September 12, 2013
May 28, 2013
July 23, 2013
September 17, 2013
September 12, 2013
If my staff or I can provide further assistance or information relative to the filing of these
minutes, please contact us at 483-4131.
Chris Swope, CMC
Lansing City Clerk
Lansing City Clerk's Office
Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, Ml 48933-1695
517-483-4131 D 517-377-0068 FAX
www.lansingmi.gov/clerk o clerk@lansingmi.gov
MEMBERS PRESENT:
BOARD OF POLICE COMMISSIONERS
MEETING MINUTES
TUESDAY, SEPTEMBER 17, 2013
OTHERS PRESENT:
Commissioner Sandra Kowalk-Thompson, Chair
Commissioner Patty Farhat Vice-Chair
Commissioner Bob Noordhoek
Interim Chief Mike Yankowski ~ ~
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Michelle Reddish, Secretary _ ~ -.... · 'ri Commissioner Jan Kolp
Commissioner Drew Macon
Commissioner Maria Mejorado
Officer Keegan Stitt ("') (; fT'.\
.Officer Douglas Hall ~ :2
Commissioner Bill Renfrew Officer Brent Listerman -<. :,i rf1
CJ Commissioner Clyde Carnegie
MEMBERS EXCUSED: ·
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MEMBERS OF THE PUBLIC I GUES$ ~ ·
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CALL TO ORDER -Commissioner Kowalk-Thompson: After having established a quorum,
Commissioner Kowalk-Thompson called the meeting to order at 5:30 p.m. Commissioner Bill Renfrew led
the Pledge of Allegiance, followed by a moment of silence for Chief Charles Reifsnyder, Trooper Paul
Butterfield and the four victims of the shooting near Sexton High School on September 17, 2013. FTO
Keegan Stitt introduced two new P01 hires, Brent Listerman and Douglas Hall. Each officer gave a brief
synopsis of their background. Keegan Stitt explained the officers had been training 12 hours for the past
two days and will begin patrol on September 18, 2013.
PUBLIC COMMENT -Agenda Items: None.
ADDITIONS TO THE AGENDA: None.
SPECIAL PRESENTATION -Commissioner Kowalk-Thompson: None.
APPROVAL OF MINUTES -Commissioner Kowalk-Thompson: Commissioner Noordhoek made a
motion to approve the August Board Meeting Minutes; supported by Commissioner Renfrew; approved
unanimously. The minutes of the regular meeting of August 20, 2013, were approved and placed on file.
EDUCATION PRESENTATION -Commissioner Drew Macon -Cyber Security Presentation:
Commissioner Macon passed out a power point presentation which addressed Cyber Security. The
presentation was very informative. After the presentation a question and answer session was held.
Commissioner Kowalk thanked Commissioner Macon for a very informative presentation.
ADMINISTRATIVE REPORT -Chief Mike Yankowski:
• Rerriinder to board members that the PBA Retirement Dinner is at the Eagles on Thursday,
September 19, 2013.
• Attended a conference on Cyber Crime, which was very informative.
• Officers Hogan and Mires, may be, attending a Cyber School, where the FBI trains, in Hoover,
Alabama regarding Cyber Crime.
• At 2:48 p.m., today, LPD responded to a shooting that occurred three blocks from Sexton High,
School because of an argument. The shooting resulted in three victims with non-life threatening
gunshot wounds. The victims' ages were 14, 15 and 17. A fourth victim showed up at the
hospital shortly after the incident. All the students attended the Lansing School District. At this
time the victims' won't say if they were involved. A Press Conference was held at 4:30 p.m.,
regarding this incident. There will be extra officers working at Sexton for the next few days.
Board of Police Commissioners
Meeting Minutes of September 17, 2013
Page 2
• The GREAT Program is a gang resistance and education training program which targets 4th to 61h
graders. The training will begin soon. This will help curb violence involving youth. The PACT
360 Program is designed to educate and help parents with their parenting skills. Although this
program deals more with drugs and violence. Jacob Grant was a new hire in the Detention Unit.
There are two openings that need to be filled. The recruiting efforts are continuing.
• There was an in-custody death which is being reviewed by Michigan State Police. Early signs
show the death was a suicide attempt. All the officers have returned to work. Detention is
usually staffed with three Detention Officers and a Sergeant.
• The trial involving Officer Michelle Burkehardt resulted in three out of the five counts with a direct
verdict that didn't go to the jury. The other count involving the sexual harassment was held and
the harassment was denied with no damages being awarded. Officer Burkehardt is working.·
• Lieutenant David Nosotti retired and Officer Aaron Wieber left to work at the Eaton County
Prosecutor's Office.
• Donnarie Woods, who was doing Jim Deline's job as Budget Control Supervisor, has taken a
position with the Lansing School District. Fred.Kracker was hired as a temporary employee from
Account Temps is being trained. ·
• Officer Penni Elton started as the Neighborhood Watch Officer. She will be working more
afternoons and will attend more community meetings.
• Matt Salmon will be taking Brian Rasdale's position as the Community Policing Officer for the
downtown area.
• Thank you to Patty Farhat for her efforts regarding National Night Out and Neighborhood Watch.
• A Hotdog Diplomacy was held at Ferris Park in the Pine/Saginaw area. The attendance was
terrific.
• The department provided hotdogs for the El-Shabazz Community event.
• The Part-One Crime Stats, that are reported by .the FBI are showing a decrease trend at
approximately 7.6%. This is an unofficial number at this time.
LEGAL UPDATE -Bill Kim, Legal Advisor: Bill Kim stated he met with the two new hires and gave
them a legal brief entitled "LPD P01 Orientation -Legal Issues Session". He also reviewed several LPD
Procedures. Everyone received a copy of the legal brief.
HUMAN RELATIONS AND COMMUNITY SERVICES LIAISON -Bernard Brantley for Dr. Joan
Jackson Johnson: ,
• The Mobile Food Pantry is Saturday, September 21, 2013, at the Pennway Church.
• Community Connect is Friday, September 20, 2013 at the South Washington Office Complex
from 10:00 am to 3:00 pm.
• On October 20, 2013, Dr. Jackson will give a presentation regarding Homeless Issues, in
Frankenmuth, at the 81h Annual Homeless Summit. She is the honored guest, which is a surprise.
• On October 17, 2013, Dr. Jackson will be inducted into the Michigan Women's' Hall of Fame.
• Congratulations to Lieutenant Noel Garcia who was, recently, appointed as the President of
Cristo Rey Board.
FRATERNAL ORDER OF POLICE: No representative present.
UNFINISHED BUSINESS: None.
CORRESPONDENCE SENT AND RECEIVED: Commissioner Macon made a motion to receive and
place on file correspondence for the month of August; Commissioner Renfrew seconded the motion;
carried unanimously.
DEPARTMENT REPORTS: Commissioner Macon made a motion to receive and place on file
department reports for the month of August; Commissioner Renfrew seconded the motion; carried
unanimously.
Board of Police Commissioners
Meeting Minutes of September 17, 2013
Page 3
BOARD COMMITTEE REPORTS:
Gov't I Community Liaison Committee -Commissioner Kowalk-Thompson stated that the Board of Police
Commissioners initiated a meeting with the Board of Fire Commissioners, two years ago. She asked
Commissioners to give their opinion as to whether they'd like to meet with the Fire Board again. All the
Commissioners agreed it wasn't necessary. Commissioner Kowalk stated the Commissioners had
attended several retirement gatherings and going away parties.
Awards & Incentives Committee -Commissioner Noordhoek had nothing to report.
Budget Committee -Commissioner Renfrew had nothing to report.
Complaint Committee -Commissioner Farhat stated that she attended the Complaint Committee
Meeting.
Commission Investigator report -Bernard Brantley had nothing to report.
COMMISSIONER'S COMMENTS:
Commissioner Kolp stated she was at the North Precinct to meet and welcome the two new hires. They
did a great job and she wishes them well.
Commissioner Kowalk told Chief Yankowski that she loves the "In the LPD Spotlights" because they are
so informative and boost morale. She also told Commissioner Macon he did a great job on his Cyber
Security presentation.
Commissioner Carnegie emphasized the new officers should be trained on the hot spots of Lansing and
about what is happing in the community today. Chief Yankowski stated the officers will attend a Cultural
Diversity Class and will be brought up to speed about LPD's Community Policing philosophy. Dr.
Carnegie stated the officers that were on the scene at the shooting, possibly saved several lives. He
asked the Chief to convey his sentiments that the officers are greatly appreciated.
Commissioner Macon attended Officer Aaron Wieber's going away party. He worked with the new hires
in the academy and they are gain~ to be very good officers.
Commissioner Farhat stated the Colonial Village is hosting "Candidate Night". The Neighborhood Watch
Advisory Board is holding a city-wide Coordinator's meeting on October 3, 2013, at the Foster Community
Center, Room 213 at 6:00 pm. ChiefYankowski will be the MC and speak at the event.
Commissioner Noordhoek said he congratulated the two new hires and also thanked Chief Yankowski for
conveying information -in a timely fashion to t~e Commissioners.
Commissioner Renfrew stated he read the nominations for awards and wasn't sure how he would be able
to help Commissioner Noordhoek determine who should get an award with all the fantastic things many
officers have done.
Commissioner Mejorado stated she will be leaving for Texas on October 8, 2013. She also stated she
appreciated receiving information in a timely manner.
OTHER BUSINESS I DISCUSSION ITEMS: None.
PUBLIC COMMENT: None.
ADJOURNMENT • Commissioner Kowalk-Thompson: There being no further busin.ess to discuss,
Commissioner Kowalk-Thompson adjourned the meeting at 7:00 p.m.
REGULAR MEETING OF
BOARD OF PUBLIC SERVICE · ·. _,
September 12, 2013
PRESENT: Cleo Anderson, Lyndon Babcock, Ron Bloomberg, Matt Flechter,
Jam es Marshall, and Shirley Rodgers
ABSENT: Paul Baerman, and Alfreda Schmidt
STAFF: Chad Gamble, Dean Johnson, and Christopher Mumby
VISITORS: None
1) CALL TO ORDER:
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Vice Chair Rodgers called the meeting to order at 11 :45 a.m., at the Lansing Public
Service Department Wastewater Treatment Plant.
a. Roll Call
b. Excused Absences: Paul Baerman, and Alfreda Schmidt
2) CITIZEN COMMENTS: None
3) APPROVAL OF BOARD MINUTES:
August 8, 2013
Mr. Bloomberg recommended the following revision:
• Pg. 2, New Business, 3rd Para., Line 4: change "Citizens" to "citizens"
• Pg. 2, New Business, 3rd Para., Line 4: change "lining" to "lying"
• Pg. 2, New Business, 3rd Para., last sentence: change "in the process" to "considering
the possibilities" ·
Mr. Marshall recommended the following revision:
• Pg. 2, B. Wastewater Division: add "Mr. Marshall referred to Mr. Stokes to give a
verbal report''
Ms. Rodgers recommended the following revision:
• Pg. 3, New Business, 4th Para., b): change "lining" to "lying"
Mr. Anderson moved, Mr. Babcock seconded, MOTION CARRIED UNANIMOUSLY to
approve the minutes for August 8, 2013, as amended.
4) ACTION ITEMS:
Mr. Gamble stated that the current ordinance requires for both a Traffic Board and a Public
Service Board'. We are currently trying to change that requirement in the ordinance, so they
can be combined.
11 :55 a.m. Mr. Flechter arrived
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Public Service Board
September 12, 2013
Page2
A lot of the same information is shared with both boards. The main difference in the boards
is the Public Service Board is an advisory board only and the Traffic Board reviews and
approves the Traffic Control Orders.
Addressing Ms. Rodgers and Mr. Babcock questions, Mr. Gamble stated that the new law
concerning changes to speed limits requires a study to be performed. If we have concerns
about speeds within the city and on a city street, we would perform the study. If the concern
was inside the city, but on an MDOT street, we would request MDOT to perform the study.
Having a study performed may not turn out the way you hope because the study is based on
the percent of the speed being driven. Therefore, if you request a study because you want a ·
speed lowered, the study could actually increase the speed limit instead. .
Mr. Marshall questioned the new merge sign on Walnut Street after the exit off of westbound
I-496. Mr. Gamble states that is MDOT not the city and they are trying to prevent a
northbound turn off of Walnut Street.
Mr. Flechter stated a similar merging of boards happened with the Recycle Board years ago.
He would support the merge with training and education to be able to make good decisions.
5) REPORT OF OFFICERS:
Business, Permits, and Technology Division: A written report was distributed.
Mr. Flechter requested further information on the report, especially on the last paragraph
requesting support from the board. Mr. Mumby gave a brief overview of the report.
Discussion followed on Revised Snow on Sidewalk Ordinance and the request of support
from the board. Mr. Bloomberg requested to see the changes of the Revised Snow on
Sidewalk ordinance, before the board gave support. Ms. Rodgers moved to add this as a
discussion item for next month meeting.
12:52 p.m. Mr. Flechter left
Mr. Babcock asked if moving to Asset Management Software will save money. Mr. Mumby
stated we use several different programs now that are inefficient. Although the Asset
Management Software will be an expense at first, over time we would be saving money and
have better efficiency. Ms. Rodgers questioned if the Asset Management Software would
only be used by the Public Service Department or by the whole city. Mr. Mumby stated it
would be most beneficial for the Public Service Department but will be available to all. Ms.
Rodgers is happy that the city is moving forward and trying to get updated, because she is
well aware of how far behind the city is, technology wise. Mr. Johnson stated that the
Wastewater Treatment Plant is required to add an Asset Management Software so we are
hopeful to get a grant to help with the cost.
Engineering Division: A written report was distributed.
Mr. Marshall asked for additional information on parts of the report. Mr. Johnson gave
additional information. Discussion followed.
Public Service Board
September 12, 2013
1: 10 p.m. Mr. Anderson left
Page3
Ms. Rodgers announced she is very happy with the street work that was done on Martin
Luther King Jr. Boulevard and Jolly Road. Mr. Babcock complained that the street signs
have not been removed even though the work is complete. Mr. Johnson will look into it.
6) DIRECTOR'S REPORT:
Mr. Gamble announced there will be a Press Conference for the CART roll out on Monday,
September 16, 2013 at 2:00 p.m. at Washington Park.
Mr. Gamble asked Members if they would be interested in having the meeting next month at
the Fleet Service location for a tour of the new facility. Members were in favor of that.
7) NEW BUSINESS:
8) OTHER BUSINESS:
9) COMMUNICATIONS: None
10) PENDING ITEMS: None
ll)ADJOURN:
The meeting adjourned at1:34 p.m.
Respectfully submitted by,
Janette Tate, Recording Secretary
Virg Bernero, Mayor
Mr. Chris Swope
City Clerk
City Hall
Lansing, Michigan
PUBLIC SERVICE DEPARTMENT
732 City Hall
124 West Michigan Avenue
Lansing, Michigan 48933
(517) 483-4455
FAX: (517) 483-6082
http://publicservice.cityoflansingmi.com
October 10, 2013
RE: Board of Public Service: Approved Minutes
Dear Mr. Swope:
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Attached are approved minutes from the Board of Public Service meetings held
September 12, 2013.
Please place these minutes on file.
ectfully submitted,
~~
Recording Secretary
Attachment
"Equal Opportunity Employer"
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MINUTES APPROVED BY THE BOARD DF COMMISSIONERS ON 7-23-13
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
May 28, 2013
CORRECTED
The Board of Commissioners met in the Boardroom of the Administrative Offices, 1232
Haco Drive, Lansing, Michigan.
Chairperson Sandra Zerkle called the meeting to order at 5:30 p.m.
Present: Commissioners Margaret Bossenbery, Dennis M. Louney, Tony Mullen, David
Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle.
Absent: Commissioner Anthony Mccloud
The Corporate Secretary declared a quorum present.
Commissioner Price led the Pledge of Allegiance.
APPROVAL OF MINUTES
;;:1f1i1·: ;;,-···.'."''.·
Motion by Commissioner Thomas, :~~cori'.tled 6\,"::Commissioner Ward to approv¢the
~;"'J''t ! y· .-. . ;.
Regular Board Meeting minutes of Marc~~.26, 2013. :. ;~
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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 Comments
COMMUNICATIONS
a. Letter from L.W. Morrow of Lansing, Ml regarding alternative fuel.
Received and Place on File
COMMITTEE REPORTS
COMMITTEE OF THE WHOLE
April 9, 2013
The Committee of the Whole of the Lansing Board of Water and Light met at the
Executive Offices located at 1232 Haco Dr., Lansing, Ml, at 5:30 p.m. on Tuesday, April 9,
2013.
7· ..
Regular Board Mtg.
May 28, 2013
Page 2 of 21
Committee of the Whole Chair Dennis M. Launey called the Committee of the Whole
meeting to order and asked the Corporate Secretary to call the roll.
Present: Commissioners Dennis M. Launey, Margaret Bossenbery (arrivedats:3s), Anthony
McCloud, Tony Mullen, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle.
Absent: None
Public Comments
There was no public comment.
Approval of Minutes
Motion by Commissioner Price, Seconded by Commissioner Ward to approve the
Committee of the Whole meeting minutes of March 12, 2013.
Action: Motion Carried
General Manager Lark respectfully requested that the agenda items be taken out of
order.
!Personal Protective Safety Equipment Fashion ShoWI
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General Manager J. Peter Lark introduced Administrative Assistant Jean Ga~non\''.\kiho;:_··:;;·
organized the safety equipment fashion show. Ms. Gannon stated that it had'. be~fi a few
years since the fashion show was presented to the Board of Commissioners and was
pleased to have the opportunity to ao it again and to share some new equipment as
well as entertain.
David Douglas, Human Resource Advisor, was the Master of Ceremony. Larry Shields,
Safety & Process Trainer, was the moderator. Rebecca Rostar, Customer Service, was
the Sound Technician.
The models for the Fashion Show included the following BWL employees: Gennie Eva,
Jeff Burnham, Roger Zverina, Anne Peffers, Wayne Lynn, Rob Hodge, George Podany
and Bob Perialas.
Ingham County Animal Control Presentation
General Manager Lark introduced Jim Dravenstatt-Moceri, BWL Field Service Leader.
Mr. Dravenstatt-Moceri thanked Vice Chair Launey for allowing this matter to be put on
the Agenda. He stated that as a result of the City Council reviewing their Dog Ordinance
and the issue of vicious dog bites this subject has been an important topic of discussion
and with the BWL employees having to deal with stray dogs, he felt that it was
important to talk about this issue.
Ingham County Animal Control Deputies, Klauka and Delatorre presented the
Committee with information on animal welfare, dog bite prevention and emergency
tips.
Oil Spill Update
Regular Board Mtg.
May 28, 2013
Page 3 of 21
General Manager Lark introduced Mark Williams, Director of Electric Production, Mark
Matus, Manager of Environmental Services and Doug Wood, Executive Director of
Electric Operations, who were the key employees who dealt with the recent oil spill. Mr.
Lark stated these employees will address three questions regarding the spill. The
questions are:
1. What happened?
2. What did we do to take care of the river?
3. How are we making sure this cannot happen again?.
•!• What happened?
Mark Williams, Director of Electric Production, explained that there was a malfunction
at Eckert Unit #4 with the Generator Hydrogen Seal Oil System. Mr. Williams stated that
on Easter at approximately 10:30 in the evening, the turbine operator received an alarm
on Unit #4. The turbine operator went to acknowledge and respond and during his ·
investigation he noticed that there was oil leaking from a piece of equipment. The
turbine operator notified the pump room operator who immediately came to the area
of concern and investigated. It was determined that there was a mechanical failure
within the pipe coupling system to this particular piece of equipment. Unfortunately,
the containment for this piece of equipment was exceeded and the oil escaped through
a floor drain into the river. The root cause of the investigation has determined that the
mechanical failure was caused by a defective gasket installed in 2004.
Commissioners and Staff then undertook in a question and answer period.
•!• What did we do to take care of the river?
Mark Matus, Manager of Environmental Services, stated once his technicians arrived at
the scene, they quickly deployed absorbent booms into the river to collect oil. Where oil
collected and pooled, vacuum trucks were used to skim the oil off the river surface.
Commissioners and Staff undertook in a question and answer period.
•!• How are we making sure this cannot happen again?
Doug Wood, Executive Director of Electric Operations stated that steps have been taken
to prevent something like this oil spill from happening again. Some of the steps taken
include:
• Rerouting all of the hoses that drain water back to the river
• Plugging all the floor drains in the plant
• Hiring an environmental consultant to do a targeted environmental assessment of any
potential passages to the river
• Evaluating and testing other plant containment integrity
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Regular Board Mtg.
May 28, 2013
Page 4 of 21
Mr. Wood stated that this incident has heightened awareness and believes this issue has
been resolved and is looking beyond this incident for possible solutions in other areas.
Facilities Update
General Manager Lark stated that it has been his goal to remove materials from the
floodplain. Mr. Lark stated that once we get REO Town up and running, we will move
personnel from this building (1232 Haco), and then begin to refurbish it. Once
refurbished, we will bring people from across the street (Pennsylvania and Hazel) whose
offices are presently in the floodplain over to Haco. Also an important item in the
floodplain across the street is the Water Lab which we plan to move over here as well.
Mr. Lark said the plan is to accomplish the renovations over the next two years. REO
Town is the lynch pin and when we get that facility going, we will follow with Haco
renovations. Ultimately, we will relocate our operations at Pennsylvania to a new site
out of the floodplain.
Other
Commissioner Dennis M. Launey inquired about updating one of the BWL's hydro-
electric facilities.
General Manager Lark stated that there has been a contract undertaken to bring the
Hydro Electric Plant at Moores Park Dam into working order.
General Manager Lark provided an update on a request for him to testify before the City
Council on the street light and fire hydrant fees. We have about 30,000 street lights in
the city and about 3000 plus fire hydrants in the city and we, under the Mayor's
proposed budget, would bill individual Lansing residents, rather than the City of Lansing,
for those services. The City Council wanted some thoughts on what and how that could
be done. Mr. Lark presented the Committee with the two scenarios that he discussed
with to the City Council on how customers would pay for lights and hydrants. The
scenarios included a percentage fee and the other a flat fee.
There was a conversation regarding the· fee details of the methodology of the billing
process.
Commissioner Launey said that he and Peter met with people from the Chamber of
Commerce Economic Club and they are looking at doing an economic club meeting
during the day ofthe BWL's REO Town grand opening on July 1st and he would pass
along more information regarding the event as he receives it.
General Manager Lark said July 1st we are going to "go commercial" with the new plant
and there will be a ribbon cutting ceremony. The Economic Club of the Chambers of
Commerce would like to be a part of this event with a luncheon celebration meeting.
The BWL's opening ceremony would take place in the morning with the Chambers of
Commerce event to follow.
Excused Absence
None
Adjourn
Regular Board Mtg.
May 28, 2013
Page 5 of 21
On Motion by Commissioner Price, Seconded by Commissioner Thomas, the meeting
adjourned at 7:35 p.m.
Respectfully Submitted
Dennis M. Launey, Chair
Committee of the Whole
FINANCE COMMITTEE
April 9, 2013
The Finance Committee of the Board of Water and Light met in the Executive Offices
located at 1232 Haco Dr., Lansing, Ml, at 7:45 p.m. on Tuesday, April 8, 2013.
Finance Committee Chairperson Margaret Bossenbery called the meeting to order and
asked the Corporate Secretary to call the roll. The following members were present:
Commissioners Margaret Bossenbery, Dennis M. Launey, Tony Mullen, David Price and
Alternate Committee Members Tracy Thomas and Cynthia Ward were present. Also
present were Board Members Anthony McCloud and Sandra Zerkle.
Absent: None
Public Comments
There was no Public Comment
Approval of Minutes
Motion by Commissioner Price, seconded by Commissioner Launey to approve the
Finance Committee meeting minutes of February 12, 2013.
Action: Carried Unanimously
457 Roth IRA Option
Finance Chair Bossenbery, said there were some questions regarding which Committee
this particular issue or matter should be discussed in, either Human Resource (HR) or
Finance. With that in mind she stated that she would like to hear the proposal and
adopt the Resolution because the business is on the Finance Committee meeting
agenda and if any of the Commissioners feel that this business should be discussed at an
HR Committee meeting, it can be discussed there as well.
Bill Aldrich, Manager of Finance & Planning, said before you tonight is the proposed
amendment to the BWL's current 457 Retirement plan and trust. A 457 Plan is a
deferred compensation retirement plan that allows employees to defer a portion of
their salary and reduce their taxable income in the current year. The proposed IRA Roth
option plan would allow employees to make after tax contributions, so any contribution
made under the proposed IRA Roth Provision plan would be taxable in current year. The
benefit of participating in the new plan is ultimately when you retire and want to pull
money from the 457 Roth IRA, taxes will have already been paid. This is an additional
Regular Board Mtg.
May 28, 2013
Page 6 of 21
option that the BWL can provide to employees at no additional cost and it will be useful
in tax planning.
General Manager Lark asked that the Committee approve the Resolution to be
forwarded to the full board for consideration.
Motion by Commissioner Price, seconded by Commissioner Launey to forward the
proposed resolution to the full Board for consideration.
Action: Carried Unanimously
Internal Audit Update
Internal Auditor Phil Perkins provided the Finance Committee with an Internal Audit
Status Update. The following was reviewed:
Internal Auditor Status Update
• FY 2013 Audit Plan Progress Report
• Plan/Forecast for Remainder of Year
• Other Upcoming Items
FY 2013 Audit Plan Progress Report
Audits Completed or in Progress:
1. Reo Town Contracting and Payments Review
• Complete; report issued.
2. Cash Receipts & Collections
• Complete; report issued.
3. Company Insurance & Claims
• Complete; report issued.
4. Energy Risk Management
• In-progress; about 60% Complete.
5. Materials Issues and Returns
• In-progress; about 60% Complete.
Other Engagements:
1. Time Reporting Reviews #1 & 2-complete.
2. Surprise Cash Counts #1 & 2-complete.
3. IT Preliminary Risk Assessment -in progress throughout FY 2013
Plan for Remainder of FY 2013:
1. Complete remaining audits
2. FY2013-14 Audit Planning & Risk Assessment
• Audit Universe -Risk Assessment Update
• Refine Listing of Rotational Audits
• Identify at least 10-12 potential audits with the objective of narrowing down to
top 5 for the annual plan.
• Align with management on list of recommended audits for presentation to
Finance Committee in May or June 2013
3. IT Preliminary Risk Assessment (ongoing)
Other Upcoming Items
1. Renewal of contract for augmented internal auditing services for next fiscal year.
2. Annual Review of Internal Audit Charter.
Excused Absence
None
Other
Regular Board Mtg.
May 28, 2013
Page 7 of 21
General Manager Lark presented information regarding the savings of the recent Utility
System Revenue Refunding Bonds that Chair Zerkle officially signed off on earlier today.
Adjourn
On Motion by Commissioner Price, seconded by Commissioner Launey, the meeting
adjourned at 7:58 p.m.
Respectfully submitted
Margaret Bossenbery, Chair
Finance Committee
EXECUTIVE COMMITTEE
April 16, 2013
The Executive Committee of the Board of Water and Light met at the Board of Water &
Light's Board Room, 1232 Haco Dr., Executive Conference Room, Lansing, Ml, at 5:00
p.m. on Tuesday, April 16, 2013.
Executive Committee Chair Sandra Zerkle called the meeting to order. The following
committee members were present: Commissioners Sandra Zerkle, Dennis Launey,
Margaret Bossenbery and Tracy Thomas. Also present were Board Members Anthony
Mccloud, Tony Mullen, David Price and Cynthia Ward.
Absent: ·None.
Public Comments
None.
Approval of Minutes
Motion by Commissioner Thomas, seconded by Commissioner Bossenbery to approve
the minutes of the November 15, 2011 Executive Committee meeting.
Action: Carried unanimously.
Instituting a BWL Commissioner Monthly Per Diem
Chair Zerkle stated that there is approximately $50.00 per Commissioner per month
allotted in the budget if chosen to be used. She said some Commissioners have had
conversations with her about receiving the money monthly as opposed to it being set
aside in the budget.
After a lengthy conversation regarding the consideration of a monthly allowance for the
Board of Commissioners the Committee determined that they would not support the
Board receiving any type of stipend.
Chair Zerkle said that this matter can be closed with no action taken.
Regular Board Mtg.
May 28, 2013
Page 8 of 21
Chair Zerkle requested that order of business be changed on the agenda.
Establishing Guideline of Recognition for Departing Commissioners
Chair Zerkle stated that since she has been on the Board ways of recognition for
departing Commissioners has been varied. She said that she would like the Committee
to establish guidelines as to how departing Commissioners should be acknowledged.
There was a lengthy discussion regarding establishing guidelines to acknowledge
outgoing Board members in order to set some consistency; either a standard gift or a
finite dollar amount.
The Committee requested the Corporate Secretary research how other Boards and
Organizations acknowledge their outgoing members and forward that information to
the Executive Committee. Chair Zerkle said that she would report back after information
is gathered.
Reestablishment of Employee Evaluation Procedures for Appointed Employees:
• General Manager • .Internal Auditor • Corporate Secretary
Human Resource Chair Tracy Thomas said the process that the BWL currently has in
place for the three appointed employees is a good one, but the HR Committee wanted
to have the process handled exclusively by Board Commissioners to ensure strict
confidentiality.
HR Chair Thomas presented the following evaluation process:
Evaluation Process:
• Human Resource Committee Chair begins the Evaluation Process by requesting the
Appointed Employees {Peter, Phil and Denise} to fill out evaluation forms for 2012 -
2013 period to be completed by a date specified.
• Appointed Employees will return their completed evaluation forms (electronically}
to Human Resource Committee Chair or his designee on the HR Committee.
• HR Committee Chair or his designee on the HR Committee compiles the completed
evaluations and forwards the completed evaluations and commissioners' evaluation
forms for each Appointed Employee to the full Board of Commissioners. A timeline
for the evaluation process will be provided.
• Commissioners will individually complete evaluation forms for each Appointed
Employee and return forms to HR Committee Chair or his designee on the HR
Committee by a date specified.
• HR Committee Chair or Designated HR Committee member compiles Confidential
Evaluation Packets. The confidential evaluation packets will include all Appointees
evaluations, and a compilation of Commissioners' evaluations including written
remarks for each Appointed Employee.
• Compiled Confidential Evaluation Packets will be distributed to Commissioners, and
Appointed Employee will receive his or her own packet.
Regular Board Mtg.
May 28, 2013
Page 9 of 21
• Human Resource Committee meeting packet will be prepared for the Human
Resource meeting consistent with normal protocol. The meeting agenda, past
minutes for approval, and any Resolutions (without specific dates) will be prepared
by Corporate Secretary and distributed to the full Board, consistent with normal
protocol.
• The compiled Confidential Evaluation Packets will be distributed electronically,
separate from the meeting packet, to Commissioners by the HR Chair or his designee
on the HR Committee.
HR Chair Thomas also presented the Committee with timelines for handling the
Appointees evaluation process.
Commissioner Ward stated that the process is essentially the same but, it is just that
now the process is being handled entirely by the Board of Commissioners or more
specifically the HR Committee, to remove the possibility of evaluations' not being
handled in the strictest of confidentiality. Ms. Ward stated that neither she nor
Commissioner Thomas have received any information that this process has not been
handled confidentially but felt as a collective body this should be something that is
handle exclusively within the Board of Commissioner's body.
There was a lengthy conversation regarding the evaluation process and the
identification of the evaluators. HR Chair Thomas stated that the evaluation process
would be handled the same way that it was last year and the only change this year
would be the handling process.
Review Process of Contract Negotiations for Appointed Employees
After a lengthy conversation regarding the negotiating process for the three Board
Appointee Employees the following process was conveyed:
• Current contract/summary of changes for past three years sent to all
Commissioners
• Comments/suggestions/specific changes submitted to HR Chair Thomas
• HR Chair Thomas will compile a list
• HR Chair Thomas and Board Chair Zerkle negotiate from parameters submitted
• The negotiated red lined contracts sent out to Board members
• Tentatively meet to decide if the Board approves contract
HR Chair Thomas proposed the idea of bonuses for the Board's three appointed
employees reflective of work that has been done in the 2012-2013 year.
After a lengthy discussion regarding the proposal it was determined that there was not
support to move forward with the proposed bonuses.
Commissioner Launey spoke about meeting with the Lansing City Council and revisited
the subject of draft minutes availability. Mr. Launey stated that there was another
Regular Board Mtg.
May 28, 2013
Page 10 of21
organization questioning the timing of the BWL's "Dancing with the Starz" event
because it conflicted with their scheduled dancing event.
Excused Absence
None
Adjourn
On Motion by Commissioner Bossenbery, Seconded by Commissioner Thomas, the
meeting adjourned at 7:15 p.m.
Respectfully submitted,
Sandra Zerkle, Chair
Executive Committee
COMMITTEE OF THE WHOLE
May 14, 2013
The Committee of the Whole of the Lansing Board of Water and Light met at the
Executive Offices located at 1232 Haco Dr., Lansing, Ml, at 5:30 p.m. on Tuesday, May
14, 2013.
Committee of the Whole Chair Dennis M. Launey called the Committee of the Whole
meeting to order and asked the Corporate Secretary to call the roll.
Present: Commissioners Dennis M. Launey, Margaret Bossenbery, Tony Mullen, David
Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle.
Absent: Commissioner Anthony Mccloud
Public Comments
Ron Byrnes Sr., Horsehead Lake, Ml, Board of Water & Light Retiree and Chair ofthe
Committee for the BWL Retirees and Pension, spoke about changes to the retirees'
healthcare benefits. He stated.that he would like to meet with the Board Chairperson to
discuss some of the changes to the healthcare coverage as well as the newly
implemented paperwork process.
Chair Sandra Zerkle stated that she and a representative appointed by General Manager
Lark would be happy to meet with Mr. Byrnes to discuss any concerns or issues.
Approval of Minutes
Motion by Commissioner Price, Seconded by Commissioner Bossenbery to approve the
Committee of the Whole meeting minutes of April 9, 2013.
Action: Motion Carried
§pproval of Rules and Regulation~
Regular Board Mtg.
May 28, 2013
Page 11 of 21
Ray Moore, Manager of Customer Projects and Development, reviewed the FY 2014 proposed
changes to Rules and Regulations for Electric, Water, Steam and Chilled Water Utility Services.
The proposed changes include:
RULES AND REGULATIONS UPDATE
Fiscal Year 2014
Electric. Water. Steam and Chilled Water
• Updated fees and charges for current actual or estimated cost and industry standards.
• Revision of Rule 4, Use of Service, Discontinuation of Service
o Clarification of Customer's responsibility to ensure service is disconnected and
non-assumption of Board responsibility for resulting property damage.
• Revision of Rule 7 .A, Responsibility for Payment of Bills, Account Security Deposits
o Clarified language which describes what constitutes unacceptable credit history.
Electric
• Revision of Rule 10.1.C, Distribution System Extension, Nonrefundable Contribution for
Underground Extensions
o Added language indicating that trench footage required exclusively for
establishing or maintaining the Board's standard of a highly reliable looped
underground system may be excluded from the contribution calculation.
• Revision of Rule 11.4 Services, Residential, Commercial and Industrial Overhead Services
o Added language indicating a requirement that a drip loop shall be formed on
individual conductors of not less than 36" exiting the weather head.
• Revision of Rule 13.4, Use of Board Equipment, Temporary Transfer Fee
Water
o Added language specifying that third party attachers shall be charged $75 per
pole when the Board must transfer attachments due to an emergency pole
replacement.
• Removal of Rule 11.8, Lead Service Pull Ahead Program
o This process is no longer needed as we have fewer than 2300 lead services
remaining to be changed out, and can easily accommodate that in our
scheduling.
Steam and Chilled Water
• There were no substantive changes to these documents.
Motion by Commissioner Price, seconded by Commissioner Zerkle to forward the
resolution for proposed changes to the FY 2014 Rules and Regulations to full Board for
consideration.
Action: Motion Carried
Energy Optimization & Renewable Energy Plan & Report
General Manager Lark stated that the State of Michigan Public Service Commission
(MPSC) under PA 295 requires the Board of Water & Light to provide the Governing
Board an annual update on their Renewable Energy Plans. PA 295 also requires the
Board of Water & Light to report to customers annually.
Regular Board Mtg.
May 28, 2013
Page 12 of21
Sue Warren, Manager of Energy and Eco Strategies, presented a PowerPoint
presentation that reviewed the "Hometown Energy Savers" portfolio program that BWL
offers to customers. She also reviewed Energy Optimization, Renewable Energy 2011
Results and the Current Renewable Energy Portfolio. Ms. Warren stated that the Board
of Water & Light is meeting goals for Renewable Energy and Energy Optimization as well
as staying under budget. Ms. Warren stated that the BWL continues to look for and to
evaluate Renewable Energy options such as Wind, Solar, Renewable Energy Credits and
Biomass.
Ms. Warren stated that customers will receive their annual update in the Board of
Water & Light's July edition of Connections.
Commissioner Ward stated that she is always impressed with the marketing material
that she receives from the BWL's Hometown Energy Savers program. The material is
new and fresh.
Update on New Fueling System
Dan Maclennan, Manager of Purchasing-Warehousing and Fleet, stated that the BWL
has operated its own fueling station for almost 50 years, which is located at the
Pennsylvania and Hazel St. complex. The underground tank system that the BWL has
was installed in 1965(diesel} and 197S(unleaded}. The system's equipment is aged and
expensive to keep operational. Also very important, the fueling system is located in the
10 Year Flood Plain and presented a significant environmental liability to the BWL.
Mr. Maclennan provided an overview of the new process that was implemented at the
beginning of the year for obtaining unleaded and diesel fuel. He said with all of the
problems previously mentioned we sought to identify alternatives to maintain our own
fuel system and found that the best option for the BWL was to partner with a 3rd party
commercial fuel provider. The company that met all of our needs is a local company
called Lansing Ice & Fuel, a franchisee of Pacific Pride Commercial Fueling. Some of the
features of the Lansing Ice & Fuel Pacific Pride system is 24/7 accessibility nationwide
and built in internal controls. By implementing this new process we are reducing the
environmental liability to the BWL. We have a capital project request in the FY 14
budget that would remove the equipment at the Penn-Hazel St. location and also
mitigate environmental issues. The new process is more efficient and a reliable source
for fuel. We are avoiding cost, due to no longer having to maintain our own system,
reducing maintenance expenses and reducing property insurance cost.
John Baumer of Lansing Ice & Fuel introduced himself and said that his company
appreciates the opportunity to work with the BWL.
Update on Smart Grid
General Manager Lark stated that this subject was placed on the agenda because some
Commissioners will be attending the APPA National Conference and the topic of Smart
Grid may be presented. Smart grid is the application of information technology, tools
and techniques that can make the grid (electric power infrastructure) run more
Regular Board Mtg.
May 28, 2013
Page 13 of21
efficiently. Smart Grids, to many people means smart meters. The BWL has tried to
concentrate on the distribution system as opposed to the actual swapping out for smart
meters. Mr. Lark stated that we plan to get meters but want to see standardization from
other utilities first. There have been some questions surrounding smart metering posing
health risk as well as other problems and the Public Service Commission (PSC) is
currently examining those issues.
Wayne Lynn, Manager of Electric System Integrity Group, said as far as Smart Grid
technology, right now we are attempting to optimize and make our distribution system
more efficient. There are several things that we are presently doing to improve the
reliability of our system by way of keeping the lights on and addressing outages very
quickly. He stated that currently devices are being installed on lines to help crews
identify and locate outages faster. Once devices have been installed and
communication links are in place there will be self-healing lines with the ability to re-
energize appropriately. The BWL is currently working with consultants to build a
business case and to make sure that we get the right benefit for the dollars that it is
taking us to invest in this system. We want to make sure that the technology that we
deploy has been proven and ready to go when put it on our system.
Oil Spill Update
George Stojic, Executive Director of Strategic Planning & Development, said early in the
oil spill incident there was a visit from the Environmental Protection Agency (EPA) and
Department of Environmental Quality (DEQ) to inspect the cleanup and they were
satisfied with what was being done. There was one recommendation from the EPA and
that was to wait until the first good rain to pull the booms. A week later after a good
rain, the booms were pulled and there was no detectable oil. The DEQ praised the
BWL's rapid actions on this matter. Mr. Stojic we did a good job in responding and we
had great crews out there working the booms.
Excused Absence
Motion by Commissioner Price seconded by Commissioner Ward to excuse
Commissioner Mccloud from tonight's meeting.
Adjourn
On Motion by Commissioner Price, Seconded by Commissioner Thomas, the meeting
adjourned at 6:18 p.m.
Respectfully Submitted
Dennis M. Launey, Chair
Committee of the Whole
FINANCE COMMITTEE
May 14, 2013
Regular Board Mtg.
May 28, 2013
Page 14 of 21
The Finance Committee of the Board of Water and Light met in the Executive Offices
located at 1232 Haco Dr., Lansing, Ml, at 6:30 p.m. on Tuesday, May 14, 2013.
Finance Committee Chairperson Margaret Bossenbery called the meeting to order and
asked the Corporate Secretary to call the roll. The following members were present:
Commissioners Margaret Bossenbery, Dennis M. Launey, Tony Mullen, David Price and
Alternate Committee Members Tracy Thomas and Cynthia Ward. Also present was
Board Member Sandra Zerkle.
Absent: None
Public Comments
There was no Public Comment.
Approval of Minutes
Motion by Commissioner Price, seconded by Commissioner Launey to approve the
Finance Committee meeting minutes of April 9, 2013.
Action: Carried Unanimously
Quarterly Financial Update (Third Quarter FY 2013)
General Manager Lark provided a quarterly financial update that included information
relative to Fiscal Year to date of March 31, 2013 for Electric, Water, Steam and Chilled
Water services. Mr. Lark stated that our Actual Net Income is positive due mainly to the
Labor, Material and Other line, which amounts to a reduction of operating expense of
almost $14 million. That makes up the bulk of the difference between the Budgeted Net
Income and the end of 3rd quarter which is $14 million and the Actual Net which is $28
million. The savings came from two areas in Labor and Materials, one is healthcare, in
which we have done very well with and have saved about $4.5 million and the other is
due to Susan Devon, Assistant General Manager and Chief Financial Officer, insisting
every quarter that the managers operate lean and save money in their budgets.
Actual v. Budgeted Variance in Combined Utility Net Income
Fiscal Year to Date March 31, 2013
Com ared to FY 2013 Bud et
Budgeted Net Income
Changes in Operating Income:
Revenue Changes <net gf fueD
Retail Electric
VVholesale Electric
VVater Sales
Steam Sales
Chilled VVater Sales
Operatjnq Expense Changes
Depreciation
Labor, Material, and Other
Other
Subtotal Changes in Operating Income
Changes in Other Income:
Interest Earnings
Other Income
Increased PILOT
All Other -Non-Operating Variances
Subtotal Changes in Other Income
Actual Net Income
(2,601)
(37)
636
(136)
(122)
2,082
13,759
(1.232)
357
1, 115
(198)
596
($000)
14,435
12,349
1.870
28,654
Regular Board Mtg.
May 28, 2013
Page 15 of21
Mr. Lark said we are not going to finish with the $28 million because there are expenses
that come in at the end of the year which need to be accounted for. We will probably
be closer to a little above budget at the end of the year. (Combined Utility Financial Report is
included in the Finance Committee packet of 5-14-2013 and is available for viewing in the Office of the
Corporate Secretary.)
Revised Combined Utility Net Income
Projection Fiscal Year 2013
Based on 3rd Quarter Operating Results
Net Income Projection -FY2013
Net Income -Original Budget -Annual
(OOOs)
$ 13,997
FYTD Favorable Income Variance ($28,654 actual minus $14,435 budget) $ 14,219
Temporary O&M Expense Timing Differences $ (6,473)
Temporary Non-Operating Income Timing Differences $ (2,068)
Write-off of Moores Park Steam Plant $ (1,082)
Eliminate March 2013 Rate Increases Assumed in Budget $ (1,862)
Projected Net Income $ 16,731
Fiscal Year 2014 O&M and Capital Budget Presentation
General Manager J. Peter Lark provided an overview of the proposed financial plan for
fiscal year (FY} 2014 for the Lansing Board of Water and Light (BWL}. The total proposed
O&M budget for FY 2014 is $268.9 million , with a capital budget of $84.0 million for
Fiscal Year 2014. $55.3 million of the Fiscal Year 2014 capital budget is to provide for
on-going services to our utility customers and to sustain our plant facilities for future
operations. The remaining $28.7 million will complete construction of the Reo Town
Plant.
El ectr i c-Retai I 2,171,061 2,240,180 -3.1%
El ectr i c-W hdesale 639,394 280,352 j28 j 0/12
El ectr i c ( ITIV\h) 2,810,455 2,520,532 11.5%
Water (ccf) 9,367,743 9,458,641 -1.0%
Steam(mlb) 687,979 698,275 -1.5%
Chilled Water tnhrs 10 276 000 10 038 000 2.4%
Electric:
Retail sales volumes by customer class are expected to decrease compared to FY 2013.
Wholesale.sales volumes are expected to increase as a result of more favorable market
conditions in FY 2014.
Water:
Retail sales volumes are expected to decline slightly in FY 2014.
Steam:
Chilled Water:
.Steam sales volumes are expected to decline slightly in FY 2014.
Regular Board Mtg.
May 28, 2013
Paoe 16 of 21
Chilled water sales volume increases are attributed to recent and expected customer
additions.
There was discussion regarding the process and the time line by which the Budget is
received by the Commissioners.
General Manager Lark stated that FY 14 is going to be one of our leaner years because
we did not raise rates last year and the depreciation and interest expense on the REO
Town loans will come into play in FY 14.
Mr. Lark respectfully requested that the Committee forward the proposed Resolution to
the full Board for consideration.
Motion by Commissioner Price, seconded by Commissioner Launey to forward the
proposed resolution for the FY 2014 Operating and Capital Budget to the Board for
consideration.
Excused Absence
None
None
Adjourn
On Motion by Commissioner Price, seconded by Commissioner Louney, the meeting
adjourned at 6:52 p.m.
Respectfully submitted
Margaret Bossenbery, Chair
Finance Committee
HUMAN RESOURCE COMMITTEE REPORT PRESENTED BY COMMISSIONER WARD
HUMAN RESOURCE COMMITTEE
May 21, 2013
The Human Resource Committee of the Lansing Board of Water and Light met at the
Executive Offices, Lansing beginning at 4:45 p.m. on Tuesday, May 21, 2013.
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 (arrived @4:so}, Cynthia Ward and Sandra
Zerkle. Also present Alternate Committee member Dennis M. Launey.
Absent: None
Public Comments
There were no public comments.
Approval of Minutes
Regular Board Mtg.
May 28, 2013
Page 17 of 21
Motion by Commissioner Ward, seconded by Commissioner Zerkle to approve the
Human Resource Committee meeting minutes of May 15, 2012.
Action: Carried unanimously.
FY 2013 Board Appointee Performance/Reappointment Resolution
a. Corporate Secretary
Corporate Secretary M. Denise Griffin, requested a closed session for the purpose of
receiving her contractual year-end performance evaluation as permitted by the Open
Meetings Act exemption MCL 15.268{a}.
Motion by Commissioner Ward, seconded by Commissioner Zerkle to go into closed
session.
Action: Carried unanimously.
The Human Resource Committee meeting went in to closed session at 4:48 p.m.
Motion by Commissioner Ward, 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 5:12 p.m.
Upon conclusion of the closed sessions, the Human Resource Committee took the
following action:
Motion by Commissioner Mccloud and seconded by Commissioner Zerkle to forward
the resolution for the reappointment of Ms. Griffin to the Charter position of Corporate
Secretary for fiscal year 2013-2014 to the full Board for consideration.
Action: Carried Unanimously
b. 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 Ward, seconded by Commissioner Mccloud to go into closed
session.
Action: Carried unanimously.
The Human Resource Committee meeting went into closed session at 5:15 p.m.
Regular Board Mtg.
May 28, 2013
Page 18 of 21
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 5:35 p.m.
Upon conclusion of the closed sessions, the Human Resource Committee took the
following action:
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 2013-2014 to the full Board for consideration.
c. 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 Mccloud, seconded by Commissioner Ward to go into closed
session.
Action: Carried unanimously.
The Human Resource Committee meeting went into closed session at 5:40 p.m.
Motion by Commissioner McCloud, seconded by Commissioner Ward that the Human
Resource Committee return to open session.
Action: Carried unanimously
The Human Resource Committee meeting reconvened in open session at 6:00 p.m.
Upon conclusion of the closed sessions, the Human Resource Committee took the
following action:
Motion by Commissioner Zerkle and seconded by Commissioner McCloud 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
Human Resource Committee Chair Tracy Thomas thanked the Commissioners who
responded so promptly in getting information to Commissioner Ward so that she could
do the work that she did. Mr. Thomas thanked Commissioner Ward for all of her effort
and work on this evaluation method.
Motion by Commissioner Zerkle seconded by Commissioner Mccloud to authorize the
Human Resources Committee Chair and Board Chair to finalize the details of the
Appointed Employees' contracts for the Board Chair's execution.
Action: Carried Unanimously
Regular Board Mtg.
May 28, 2013
Page 19 of21
Human Resource Committee Chair Thomas stated that tentatively there could be a HR
meeting in June. The Resolution for the reappointments will be presented at the July
Regular Board meeting and the contracts will be prepared for an effective date of July 1,
2013.
Members of the Human Resources Committee were acclamatory of the procedure that
was followed during this evaluation process.
Adjourn
There being no further business, the Human Resource Committee meeting adjourned at
6:45 p.m.
Respectfully submitted,
Tracy Thomas, Chair
Human Resource Committee
MANAGER'S RECOMMENDATIONS
General Manager Lark respectfully asked that the following Resolutions be considered
for approval.
WHEREAS, the Lansing Board of Water & Light sponsors a 457 Governmental Deferred
Compensation Plan and Trust ("457 Plan") for the benefit of its employees;
WHEREAS, the Lansing Board of Water & Light desires to continue to maintain the 457
Plan in a form that provides a reasonable and attractive retirement security for its
employees;
WHEREAS, in the spirit of increasing the attractiveness of the 457 Plan, the Lansing
Board of Water & Light desires to make available to plan participants certain Roth
options as permitted by the Internal Revenue Code; and
BE IT RESOLVED that the Lansing Board of Water & Light hereby amends the 457 Plan
and Trust to include the associated Roth amendment.
Motion by Commissioner Bossenbery, seconded by Commissioner Price, to approve the
resolution for the amendment to 457 Plan and Trust to include the associated Roth
amendment.
Action: Carried Unanimously
Rules and Regulations for Electric. Water, Steam and Chilled Water Utility Services
Regular Board Mtg.
May 28, 2013
Page 20 of 21
RESOLVED, THAT THE AMENDMENTS TO THE Rules and Regulations for Electric, Water,
Steam and Chilled Water Services be approved as presented, to be effective July 1,
2013.
Motion by Commissioner Launey, seconded by Commissioner Price, to approve the
resolution for the Rules & Regulations for electric, water, steam and chilled water utility
services for FY 2014.
Action: Carried Unanimously
Due to Tornado Warning the meeting recessed at 5:41 p.m.
The meeting reconvened at 5:46 p.m.
Fiscal Year 2014 Operating and Capital Budget
RESOLVED, that the annual Operating Budget covering Fiscal Year 2014 is hereby
approved as presented; and
RESOLVED, that the Fiscal Year 2014 Capital Budget is hereby approved as presented;
and
RESOLVED, that the forecast for capital expenditures for the Fiscal Years 2014-2019 is
hereby accepted as presented; and
RESOLVED FURTHER, that the Corporate Secretary be directed to make the appropriate
filings with the Lansing City Clerk's office and the Mayor's office in accordance with the
Lansing City Charter regarding the above actions.
Motion by Commissioner Price, seconded by Commissioner Bossenbery Price, to
approve the resolution for the FY 2014 O& M and Capital Budget.
Action: Carried Unanimously
UNFINISHED BUSINESS
There was no Unfinished Business
NEW BUSINESS
There was no New Business
RESOLUTIONS
There was no Resolution under this section of the Agenda.
MANAGER'S REMARKS
There were no Manager's Remarks
COMMISSIONERS' REMARKS
EXCUSED ABSENCE
Regular Board Mtg.
May 28, 2013
Page 21 of 21
On motion by Commissioner Price, seconded by Commissioner Ward to excuse
Commissioner McCloud from tonight's meeting.
PUBLIC COMMENTS
Ron Byrnes, Board of Water & Light Retiree, stated concerns regarding retiree's health
care and some of the changes that have taken place. He stated that the retirees are
concerned and confused about changes. Mr. Byrnes stated that there has been a
meeting scheduled and hopefully some issues to bear will change what is happening.
Chair Zerkle stated that Mr. Byrnes General Manager Lark has asked Susan Devon,
Assistant General Manager and Chief Financial Officer to put together a meeting, which
she will attend, to discuss concerns.
Liz Hassler, DeWitt, Ml, spoke about issues and concerns with Cofinity Insurance. She
said retirees are financially vulnerable and many are physically challenged and some
lack the mental stamina .needed to deal with the issue that have been presented due to
the insurance coverage change. She said the coverage is not the same as what they are
used to getting.
Jan Simpson, St. Johns, Ml, President of the Board of Water & Light Retirees Association,
stated that retirees sincerely appreciate the healthcare that they have received through
the generosity of the BWL and is confident that the tradition will continue because of
the many years of dedicated service that has been collectively given to the BWL, making
it the impressive company it is today.
ADJOURNMENT
On motion by Commissioner Price, seconded by Commissioner Ward the meeting
adjourned at 6:11 p.m.
M. Denise Griffin, Corporate Secretary
Preliminary Minutes filed (electronically) with Lansing City Clerk: June 13, 2013
Official Minutes (Electronic) filed with Lansing City Clerk: July 24, 2013
r.·J·
MINUTES APPROVED BY THE BOA RO OF
COMMISSIONERS ON SEPTEMBER 24, 2013
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
July 23, 2013
The Board of Commissioners met in the Boardroom of the Administrative Offices, 1232 Haco
Drive, Lansing, Michigan.
Chairperson Sandra Zerkle called the meeting to order at 5:30 p.m.
Present: Commissioners Margaret Bossenbery, Dennis M. Louney, Anthony McCloud, Tony
Mullen, Tracy Thomas, Cynthia Ward and Sandra Zerkle. "' .....
1 -~
Absent: Commissioner David Price ~ ~
v• 0 ?J
Th C S d I d t 2: ~ ~ e orporate ecretary ec are a quorum presen . c> , \,. ,,
o -l .rn ~ :2. Commissioner McCloud led the Pledge of Allegiance. -< ~-.rn
o a o
·:, .. ,·; Ar,,P..ROVAL OF MINUTES , . ~ : ~-·
;::·:·:: .\•,;'' . ''.'."• ~-.&:-··
Motion by Commissioner 'Bosse'h·fary, seconded by Commissioner Thomas to.'ppproVifthe
Regular Board Meet,ng minutes of May 28, 2013. k·
Action: Carried Unanimously
SPECIAL PRESENTAITON
Pennies for Power Check Presentation from Michigan Building & Construction Trades Council.
Patrick Devlin, Secretary & Treasurer of the Michigan Building and Constructions Trades
Council presented a check in the amount of $14,118.88 to Board of Water & Light's Pennies
for Power campaign. This money was obtained as part of the Project Labor Agreement
acknowledging use of union labor for the construction of the Reo Town Plant project. Trade
unions agreed to pay SC per trade work hour to the BWL Pennies for Power initiative during
the construction of the plant. Mr. Devlin thanked the BWL for choosing their members to
build the state of the art $182 million REO Town Co-Generation Plant and Headquarters.
General Manager Lark thanked the Michigan Building and Constructions Trades & Council on
behalf of everyone at the BWL and the Board of Commissioners.
Chair Zerkle stated that she couldn't be prouder ofthe Michigan Building and Constructions
Trades & Council and that the project was on time and on budget which could not have been
accomplished without the Trade Council.
.•
PUBLIC COMMENTS
Regular Board Mtg.
July 23, 2013
Page 2 of 17
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.
Ron Byrnes, Business Manager of IBEW Local 352, stated concerns about the proposed
increase in the employees premium sharing percentage that is being considered on today's
agenda and asked that the Board of Commissioners take into consideration the employees
small wage increase over the past years and the increased health care cost that is reducing
employees' wages.
COMMUNICATIONS
a. Letter from State Representative Andy Shor congratulating the BWL on the new REO
Town Headquarters & Plant
Received and Place on File
COMMITTEE REPORTS
COMMITTEE OF THE WHOLE
June 11, 2013
. ! .I
:~ '
The Committee of the Whole of the Lansing Board of Water and Light met at the Executive ·
Offices located at 1232 Haco Dr., Lansing, Ml, at 5:30 p.m. on Tuesday, June 11, 2013.
Committee of the Whole Chair Dennis M. Louney called the Committee of the Whole meeting
to order and asked the Corporate Secretary to call the roll.
Present: Commissioners Dennis M. Louney, Margaret Bossenbery, Tony Mullen, Anthony
McCloud, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle.
Absent: None
Public Comments
There was no Public Comment
Approval of Minutes
Motion by Commissioner Price, Seconded by Commissioner Ward to approve the Committee
of the Whole meeting minutes of May 14, 2013.
Action: Motion Carried
jupdate on RED TownJ
General Manager Lark stated that the REO Town project is on time and on budget. The plant
will go commercial on July 1st and a member of the Board of Commissioner's or the Mayor
will bring the facility on line on July 1. General Manager Lark stated that on July 1st tours of
Regular Board Mtg.
July 23, 2013
Page 3of17
the facility will be provided and the power plant is expected to be fully operational at that
time.
Communications Director Stephen Serkaian provided the Commissioners with an invitation to
the Board of Water & Light's "Going Commercial" ceremony to take place on July 1, 2013. He
reviewed the events that will take place on that day beginning with the opening ceremony in
the Depot, followed by the new cogeneration plant being switched on with guided tours to
follow. Also as part of the day's events, the Lansing Chamber of Commerce will host their
Economic Club luncheon at the Board of Water & Light's new facility site. There will also be
another chance for the public to view the new facility between 1:30 p.m. and 3:00 p.m.
Mr. Serkaian informed the committee that on the Sunday before the new facility opening, the
Lansing State Journal is planning a special insert in their newspaper that will focus on the new
plant and tell the comprehensive story about the REO Town project. Also, the Wednesday
before the new Cogeneration plant goes live the City Pulse will feature a story regarding the
REO facility.
Health and Wellness Plan
Brankie Ekren, General Counsel and Director of Employment Affairs, state9 that a few years
ago the Board of Water & Light kicked off a robust health and wellness program called "Be
Well for Life" "BWL", and since that kick off there have been some changes and
improvements to the program. Ms. Ekren introduced Michael Flowers, Director of Personal
Policy Development and Organizational Training Development who provided an update on
the program's changes.
Mr. Flowers stated that BWL's Health and Wellness program began in 2011 with a company
out of Denver, Colorado but have since discontinued that partnership and are now partnering
with Sparrow Health System. Mr. Flowers reviewed the status of the BWL Health and
Wellness Program, the Program Objectives, the Action Plan and the Be Well at Work Health
Management system. He stated the employees are pleased with the improvements including
the fact that partnering with Sparrow provides a presence closer to home.
City Fire Hydrants and Street Lights (With Resolution)
General Manager Lark introduced a Resolution for the Board's consideration that would
increase the Board of Water & Light's annual contribution to the City of Lansing's payment in
lieu of taxes (PILOT} to 6.1%.
General Manager Lark shared with the Commissioners a letter he received from Mayor
Bernero requesting that fire hydrant charges be passed onto individual customers, a task that
is commonly performed by the BWL for surrounding municipalities. Mr. Lark stated that he
would request Ms. Susan Devon, Assistant General Manager and Chief Financial Officer, to
implement charges pursuant to that letter to individual customers. Mr. Lark stated that rates
have not been finalized as of yet and this process does not require action from the Board of
Commissioners', it is implemented by the City.
• I . ~ •'
Regular Board Mtg.
July 23, 2013
Page 4of17
The Committee considered two resolutions, one provided in their electronic packet, and the
other presented at the meeting. The resolution presented at the meeting contained language
which spoke generally to the "sense of the Board of Commissioners". Both resolutions
increased the PILOT to 6.1%.
Motion by Commissioner Zerkle, Seconded by Commissioner Price to move the Resolution
forward that includes the language of the "sense of the Board of Commissioners" to the full
Board for consideration.
Following the Motion, there was lengthy discussion which concluded with Commissioner
Zerkle, withdrawing her motion for the Board to consider the resolution that included the
"sense of the Board" language.
Motion by Commissioner Zerkle, Seconded by Commissioner Price, to forward to the full
Board the resolution that was presented in the electronic packet which did not contain the
language that spoke to the "sense of the Board" for consideration and would increase the
PILOT payment to 6.1%.
Action: Motion Carried (7 to 1 vote)
Commissioner Price suggested that a cover Jetter be sent after the Board's consideration and
full passage of the Resolution expressing the "sense of the Board of Commissioners" that this
agreement should not be invaded during the pendency of its agreed term time.
Other
Chair Zerkle informed the Committee that she participated in a meeting along with
Administration, BWL's insurance companies and BWL Retirees to address some ~f the issues
that retirees say they are experiencing with new insurance procedures. Chair Zerkle stated
that there was good discussion at the meeting and believes that all issues will be addressed.
Dennis M. Launey stated that it was another successful Chili Cook-Off and commends
everyone who worked on that.
General Manager Lark said that Calvin Jones really brought home the numbers for the Chili
Cook-Off this year, it was the was most successful one ever.
Tracy Thomas said that the First Step Program reception was well done and congratulated
the Board of Water & Light for showcasing Lansing area kids.
Excused Absence
None
Adjourn
On Motion by Commissioner Price, Seconded by Commissioner Ward, the meeting adjourned
at 6:38 p.m.
Respectfully Submitted
Dennis M. Louney, Chair
Committee of the Whole
FINANCE COMMITTEE
June 11, 2013
Regular Board Mtg.
July 23, 2013
Page 5 of 17
The Finance Committee of the Board of Water and Light met in the Executive Offices located
at 1232 Haco Dr., Lansing, Ml, at 6:44 p.m. on Tuesday, June 11, 2013.
Finance Committee Chairperson Margaret Bossenbery called the meeting to order and asked
the Corporate Secretary to call the roll. The following members were present:
Commissioners Margaret Bossenbery, Dennis M. Louney, Tony Mullen, David Price and
Alternate Committee Member Cynthia Ward. Also present was Board Members Anthony
Mccloud and Sandra Zerkle.
Absent: None
Public Comments
There was no Public Comment.
Approval of Minutes
Motion by Commissioner Price, seconded by Commissioner Louney to approve the Finance
Committee meeting minutes of May 14, 2013.
Action: Carried Unanimously
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 Brett Ou median, 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 a projected audit process summary.
Mr. Ou median of Plante Moran, 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.
Mr. Oumedian 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 23, 2013
Page 6of17
Finance Chair Bossenbery was indicated as the appropriate contact person for questions or
concerns.
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.
Internal Audit Proposed Plan for FY 2014
Internal Auditor Phil Perkins, presened an overview of:
Internal Auditor Status Update
• FY 2013 Audit Plan Progress Report
• Plan/Forecast for Remainder of Year
• Other Upcoming Items
FY 2013 Audit Plan Progress Report
Audits Completed or in Progress:
1. Rec Town Contracting and Payments Review
• Complete; report issued.
2. Cash Receipts & Collections
• Complete; report issued.
3. Company Insurance & Claims
• Complete; report issued.
4. Energy Risk Management
• Financial Report to be issued shortly; about complete.
5. Materials Issues and Returns
• Draft Report to be issued shortly; audit 95% complete.
Other Engagements:
1. Time Reporting Reviews #1 & 2-complete.
· 2. Surprise Cash Counts #1 & 2-complete.
3. IT Preliminary Risk Assessment -in progress throughout FY 2013
Required Periodic Review Items:
1. Internal Audit Charter-no recommended changes to the charter as written.
2. Quality Assurance Improvement Program -Internal Audit procedures were reviewed
and updated as needed.
Draft FY 2014 Audit Plan
Basis for plan:
1. Risk assessments and scores 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.
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Accounts Payable
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Fuel Procurement
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. c1ose tt1e 8001<~ Processes · ·
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Other Engagements:
·.· .. Surprise Cash Counts (2) J. •
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Potential Consulting or Other
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Regular Board Mtg.
July 23, 2013
Page 7of17
Motion by Commissioner Launey, 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.
Excused Absence
None
None
Adjourn
On Motion by Commissioner Price, seconded by Commissioner Launey, the meeting
adjourned at 7:14 p.m.
Respectfully submitted
Margaret Bossenbery, Chair
Finance Committee
NOMINATING COMMITTEE MINUTES
June 26, 2013
Regular Board Mtg.
July 23, 2013
Page 8of17
The Nominating Committee of the Lansing Board of Water and Light met at the Executive
Offices, Conference Room, located at 1232 Haco Dr., Lansing, Ml at 5:00 p.m. on Tuesday,
June 26, 2013.
Nominating 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 Marge Bossenbery, Anthony McCloud, Tony Mullen and Tracy Thomas.
Absent: None
Approval of Minutes
Motion by Commissioner Thomas, seconded by Commissioner Mccloud to approve the
Nominating Committee meeting minutes of June 26, 2012.
Action: Motion Carried
Public Comment
There were no public comments.
Nominate Board Officer Candidates for FY 2013-2014
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 2013-2014.
Nominating Committee Chair Mullen opened the floor for nominations.
After a lengthy discussion the following motion was made:
Motion by Commissioner Bossenbery, seconded by Commissioner Mccloud, that the
Nominating Committee forward a slate of officers to the full Board for consideration which
consist of the interested candidates for the Chair position, Sandra Zerkle and Cynthia Ward
and interested candidates for Vice Chair position, Dennis M. Louney and David Price.
Action: Carried Unanimously
There was discussion regarding the method of voting.
There being no further business, the meeting adjourned at 6:20 p.m.
Respectfully submitted,
Tony Mullen, Chair
Nominating Committee
HUMAN RESOURCE COMMITTEE
July 16, 2013
Regular Board Mtg.
July 23, 2013
Page 9 of 17
The Human Resource Committee of the Lansing Board of Water and Light met at the Executive
Offices, Lansing beginning at 4:30 p.m. on Tuesday, July 16, 2013.
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 (arrived @4:35), Cynthia Ward and Sandra Zerkle. Also
present: Commissioners Bossenbery, Dennis M. Launey (Alternate) and Tony Mullen.
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 21, 2013.
Action: Carried unanimously.
Impact of Patient Protection and Affordable Care Act
General Manager Lark stated that the Patient Protection and Affordable Act (PPACA) plan is
the House and Senate plan that was signed into law by the President Obama, this plan is
called the Healthcare Act. General Manager Lark said the Healthcare Act is something that we
at the Board of Water & Light (BWL) comply with. He stated by the year 2018 there are some
new provisions that must be complied with regarding our health care. Mr. Lark generally
discussed various aspects of the Affordable Health Care Act and noted that there is a penalty
assessed under the Act if we exceed certain caps.
General Manager Lark stated that he is bringing this matter to the Board's attention because
there will have to be some decisions made in the next 4 years as to how we are going to meet
and maintain compliance with the Act. No decisions need to be made this calendar year; this
is just to let the Board know what is happening and that we will continue to be on track.
General Manager Lark reviewed the following:
• Requirements Already Implemented by the BWL in 2011/2012
• Upcoming Requirements
• New Fees
• Excise Tax Projections
• Excise Tax Alternatives
• Plan Design Changes Needed
• Buy Up Approach
• Pass Along Excise Tax
• Excise Tax Projected Exposure
PA 152 (Premium Sharing Percentage)-Resolution
Regular Board Mtg.
July 23, 2013
Page 10of17
This is an update of what was presented to the Board of Commissioners last year regarding
PA 152, which caps the amount a public employer, including municipal utility companies, may
pay for employee health care insurance. General Manager Lark stated that if the BWL
chooses to do nothing about PA 152 requirements, then we have a hard cap automatically
applicable. Last year the Board voted on one of the 3 available options and that was to
exempt us entirely from the Act and implement a 10% premium sharing cost, which was an
increase from a 5% premium sharing that was in effect at the time.
General Manager Lark reviewed the details and cost (with various percentages} for the
following available options:
• Limit expenditures on health care cost based on a schedule of dollars provided in the
Act (the Hard Cap}
• Limit expenditures to an 80/20 percentage split with a majority vote (or}
• Exempt itself entirely from the Act through a 2/3 majority vote. With a 2/3 majority
vote, the Board could then implement premium sharing in an amount desired.
After a lengthy discussion regarding PA 152 requirements and the effect on employees the
following motion was made:
Motion by Commissioner Ward, seconded by Commissioner Mccloud, to forward the
resolution for the implementation of a 15% premium sharing for all active employees for
medical benefits to the full Board for consideration.
Action: Motion Carried
Retirement Health Savings Plan
General Manager Lark presented the committee with information on Health Care Retirement
Savings Accounts (HRA}, a new hire retiree structuring alternative. He said alternative retiree
health care plans are being considered due to the rising cost of health care for retirees.
There are many ways to do HRA's, and again this plan is only being considered for new hires.
Instead of paying health care cost the way that it is currently being done, a certain amount of
money would be put into each new hire's retirement saving account every year and as that
amount is invested over the years the money in the account would grow. So instead of a
Defined Benefit plan where we guarantee the benefits that a retiree would receive, we would
participate in a Defined Contribution plan that would be managed by the employee. To sum it
up; new employees would receive contributions into a HRA during employment that would
be used, along with earnings on those funds, to purchase health care at retirement.
Regular Board Mtg.
July 23, 2013
Page 11 of 17
General Manager Lark stated that he is presenting this information to get a sense of how the
Board feels about this alternative plan. He said that his staff is continuing to evaluate an HRA
and other options to mediate future rising health care cost.
Commissioner Launey stated that based on the Affordable Care Act, moving forward there
are some structures in place that were not in place a few years ago and it bodes well for us to
look at examining this alternative; it is something that needs to be pursued.
Human Resource Chair Thomas thanked Mr. Lark for presenting this information and stated
that the issue will be revisited in the future.
Other
General Manager Lark provided an update on an incident that took place last Friday
afternoon involving a Board of Water & Light employee who was injured.
General Manager Lark stated that it is extremely warm out and all Units are operating well.
Adjourn
There being no further business, the Human Resource Committee meeting adjourned at 6:00
p.m.
Respectfully submitted,
Tracy Thomas, Chair
Human Resource Committee
MANAGER'S RECOMMENDATIONS
General Manager Lark respectfully asked that the following Resolutions be considered for
approval.
To Amend the Return on Equity Agreement
Between the City of Lansing and
the Board of Water and Light
WHEREAS, the City of Lansing (the City provides to the Lansing Board of Water and Light
(the Board) use of its streets, alleys, bridges, and other public places without
compensation and the Board, as an agency of the City, is exempt from property
taxation~ and;
WHEREAS, since 1972 the Board has contributed to the City an annual amount as a
return on equity as payment in lieu of taxes (PILOT} and;
WHEREAS, The Board and the City entered into an agreement (Attachment A) on June
30, 1992 for annual payment of a return on equity for ten years commencing on July
Regular Board Mtg.
July 23, 2013
Page 12of17
1, 1992 in the amount of 4% of net billed retail sales from electric, water, and steam,
and;
WHEREAS, on December lih, 2001, the Board and the City modified the agreement by
Amendment No.l(Attachment B) to extend the terms and other provisions of the
agreement for ten more years commencing on July 1, 2002 in the amount of 4% of its
revenues from retail and wholesale sales of chilled water, electric, steam, and water
utilities, and;
WHEREAS, upon the expiration of Amendment No. lon June 30, 2012, the Board and the
City modified the agreement by Amendment No. 2 {Attachment C) to extend the
terms and other provisions of the agreement for five more years commencing on July
1, 2012 in the amount of 5% of its revenues from retail and wholesale sales of chilled
water, electric, steam, and water utilities, and;
WHEREAS, the Board and the City desire to extend the current agreement by an
additional year and increase the PILOT to 6.1% for the remaining agreement term
with Amendment No.3,
RESOLVE that the Board extend its agreement with the City by an additional year for a
five year period commencing on July 1, 2013 and expiring June 30, 2018 with
Amendment No. 3,
FURTHER RESOLVED with Amendment No.3 the amount of the PILOT for the remaining
term of the agreement shall be 6.1% of its revenues from retail and wholesale sales
of electric, water, steam, and chilled water utilities.
Motion by Commissioner Ward, seconded by Commissioner Louney, to approve the
resolution extending the PILOT agreement with the City of Lansing until 2018 with a 6.1%
return on equity.
Action: Motion Carried (6/1 Vote)
To Amend Employer Contribution to
Medical Benefit Plans
WHEREAS, Governor Rick Snyder, on September 27, 2011, signed legislation known as the
"Public Funded Health Insurance Contribution Act", Public Act 152 of 2011 limiting the
amount public employers may pay for government employee medical benefits, and;
WHEREAS, Public Act 152 of 2011 took effect January 1, 2012 and applies to all public
employers including the Lansing Board of Water & Light, and;
Regular Board Mtg.
July 23, 2013
Page 13of17
WHEREAS, Public Act 152 of 2011 created a "hard cap" for medical benefit plan coverage
year beginning January 1, 2012, so that a public employer may not pay more of the annual
costs for medical benefit plans than a total equal to $5,692.50 for single person coverage,
$11,385 for individual and spouse coverage, and $15,525 for family coverage adjusted
October 1, 2013. These caps are to be adjusted by October 1 each year to apply to the
following calendar year, based on the change in the medical care component of the United
States consumer price index (CPI), and;
WHEREAS, by a majority vote of its governing body, a public employer may opt-out of the
hard cap and into an 80% cap option ""'.here the public employer may not pay more than 80%
of the total annual costs of all the medical benefit plans for its employees, and;
Whereas, by a 2/3 vote of its governing body each year, a local unit of government may
exempt itself from the requirements of Public Act 152 of 2011 for the next year, and;
WHEREAS, the Board of Commissioners met on July 24th 2012 and passed a resolution
(#2012-07-01) to exempt itself from the requirements of Public Act 152 of 2011 and
implemented a 10% premium sharing, and;
RESOLVE that the Board by at least 2/3 vote desires to exempt itself from the requirements
of Public Act of 2011 for the upcoming benefit plan year, effective September 1, 2013.
FURTHER RESOVE that the Board desires to implement a 12% premium sharing for all active
employees for medical benefits effective September 1, 2013
Motion by Commissioner Ward, Seconded by Commissioner Thomas to exempt the Board of
Water & Light from the PA152 requirements by voting with a 2/3 decision.
Action: Carried Unanimously (7 /0 Vote)
Motion by Commissioner Thomas, Seconded by Commissioner Launey, to amend the
proposed Resolution to implement a 12% premium sharing percentage instead of 15% and to
adopt the Resolution with the amendment.
Action: Motion Carried
UNFINISHED BUSINESS
There was no Unfinished Business
NEW BUSINESS
Nominating Chair Mullen stated consistent with the committee report, the Nominating
Committee voted unanimously to forward a slate of officers, which consist of all the
interested candidates for the position of Chair and Vice Chair to the full Board for
consideration. Since the meeting of the Nominating Committee, voluntary withdrawals for
candidate consideration have been received. As a result the proposed slate of officer
candidates for Fiscal Year 13-14 will be:
Sandra Zerkle serving as Chair
And
Dennis M. Louney serving as Vice Chair
Regular Board Mtg.
July 23, 2013
Page 14of17
As procedure Nominating Committee Chair Mullen asked if there were any nominations from
the floor for the positions of Chair or Vice Chair. There were no nominations from the floor
and Nominations were closed.
Moved by Commissioner Ward and supported by Commissioner Mccloud to approve the
proposed slate of officers as such, Sandra Zerkle as Chair and Dennis M. Louney as Vice Chair.
Chair Zerkle stated that the Executive Committee consists of the Chair, Vice Chair and Past
Chair as well as another member of the Board. At this point there is no Past Chair presently
serving on the Board leaving two positions open that need to be filled in order to make the
Executive Committee complete.
Motion by Commissioner Thomas and seconded by Commissioner Louney to nominate Tony
Mullen and Cynthia Ward as the two members of the Executive Committee.
Action: Motion Carried
Chair Zerkle thanked everyone for their support and stated that this is a great Board to be
serving on.
Commissioner Bossenbery stated that she would like to look into forming committee to
examine the nominating process and establish some guidance for those serving on the
committee.
Chair Zerkle stated that she would take that suggestion in to consideration.
RESOLUTIONS
RESOLVED, That regular meetings of the Lansing Board of Water & Light's (BWL) Board of
Commissioners are hereby set for the remainder of the calendar year 2013 as follows, unless
otherwise notified or as a result of date conflicts with rescheduled City Council meetings:
2013
BWL Board Commissioners
2013 Remaining Regular Board Meeting Schedule
Tuesday
Tuesday
September 24
November 19
Regular Board Mtg.
July 23, 2013
Page 15of17
Meetings will be held in the Board Room located in the Board of Water & Light's REO Town
Depot located 1201 S. Washington, Lansing, Ml, at 5:30 p.m.
RESOLVED FURTHER, That a notice ofthe meeting schedule be published in the Lansing City
Pulse the week of August 18, 2013.
Motion by Commissioner Ward, Seconded by Commissioner Thomas, to approve the
Resolution for the BWL Board of Commissioners 2013 remaining Regular Board meeting
dates to be held at the new REO Town Depot facility located at 1201 S. Washington, Lansing,
Ml 48910.
Action: Motion Carried
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 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 Director and General Manager for fiscal year 2013-2014, or, until a
successor is appointed, whichever last occurs:
J. Peter Lark, Director and General Manager
Motion by Commissioner Thomas, Seconded by Commissioner McCloud to reappoint J. Peter
Lark to the Charter position of Director and General Manager for fiscal year 2013-2014.
Action: Motion Carried
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 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 Internal Auditor for fiscal year 2013-2014, or, until a successor is
appointed, whichever last occurs:
Philip Perkins, Internal Auditor
Motion by Commissioner Bossenbery, Seconded by Commissioner Thomas to reappoint
Philip Perkins to the Charter position of Internal Auditor for fiscal year 2013-2014.
Action: Carried unanimously
Appointment of the Charter Position of Corporate Secretary
Regular Board Mtg.
July 23, 2013
Page 16of17
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 l 5t 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 2013-2014, or, until a successor is
appointed, whichever last occurs:
M. Denise Griffin, Corporate Secretary
Motion by Commissioner Mullen, Seconded by Commissioner Ward, to reappoint M. Denise
Griffin to the Charter position of Corporate Secretary for fiscal year 2012-2013
Action: Motion Carried
Chair Zerkle presented Corporate Secretary Griffin with a Certificate of Appreciation in
recognition of completing 5 years of service to the Board of Water & Light.
MANAGER'S REMARKS
General Manager Lark congratulated Chair Zerkle and Dennis M. Louney on their
reappointments. He also congratulated Ms. Griffin on her 5 year certificate. Mr. Lark
thanked the Board of Commissioners for all of their support regarding the REO Town project,
He stated this was a very fine project and it was done on time and on budget.
COMMISSIONERS' REMARKS
Chair Sandra Zerkle stated that Mr. Lark should be very proud of him-self with regards to the
REO Town project. She said this was a group effort but it was Mr. Lark's vision. This will be a
great landmark for the City of Lansing. She thanked Commissioner Thomas and his committee
for of the work on the employee's evaluation process.
Commissioner Ward congratulated Sandra Zerkle and Dennis M. Launey on continuing in
their positions as Chair and Vice Chair. She also thanked Chair Zerkle for her vote of
confidence in appointing her to the Executive Committee.
Commissioner Thomas, apologized for not attending the REO Town opening as he had
obligations out of State. Commissioner Thomas said for the record that he agrees with
Commissioner Bossenbery's suggestion regarding guidance for the nominating committee
process. He also congratulated Sandra Zerkle, Dennis M. Launey, Cynthia Ward and Tony
Mullen on their appointments. Commissioner Thomas congratulated Legal Counsel Brandie
Regular Board Mtg.
July 23, 2013
Page 17of17
Ekren for a job well done, especially over the last 3 months with assisting the Human
Resource Committee; she is fair, firm and instructional.
Dennis M. Launey said that he is honored to be reappointed as Vice Chair and it is an honor
to serve on this Board. He congratulated all appointees. He also congratulated General
Manager Lark and said that leadership makes a difference and it shows, and the co-
generation plant was a perfect example of making history in our state and it is an honor to be
a part of that.
EXCUSED ABSENCE
On motion by Commissioner Ward, seconded by Commissioner Thomas to excuse
Commissioner Price from tonight's meeting.
PUBLIC COMMENTS
Audrey Kingdon, Haslett Mi, property manager of apartments located at 1127 N. Hagadorn, E.
Lansing, Ml, spoke about resident's concerns in regard to the increased cost of their electric
utility service.
General Manager Lark referred Ms. Kingdon to Bob Peria/as, Manager of Customer Service.
David Walton, Lansing, Ml, said that he was here representing the Kappa Alpha Psi Lansing
Alumni Chapter and was seeking partnership with the Board of Water & Light for a one day
job shadowing opportunity and other sponsorship opportunities.
General Manager Lark referred Mr. Walton to Calvin Jones, Director of Public Relations and
Diversity.
Mary Bradey, representing the "Clean Water Action in Lansing Can Do Better Coalition",
congratulated the Board of Water & Light on the co-generation plant and moving the city
away from the use dirty fossil fuels. She said that she would like to encourage public
participation in the community energy process.
Ron Byrnes, Business Manager of IBEW Local 352, thanked the Board of Commissioners for
taking action regarding PA152. Mr. Byrnes spoke about an employee who was injured and
asked that we keep him in our prayers.
ADJOURNMENT
On motion by Commissioner Ward, seconded by Commissioner Bossenbery the meeting
adjourned at 6:16 p.m.
M. Denise Griffin, Corporate Secretary
Preliminary Minutes filed (electronically) with Lansing City Clerk: August 2, 2013
Official Minutes filed (electronically) with Lansing City Clerk: October 2, 2013
OFFICIAL PROCEEDINGS OF THE BOARD OF
TRUSTEES CITY OF LANSING
POLICE AND FIRE RETIREMENT SYSTEM
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, Ml
The Board was called to order at 8:54 a.m.
September 17, 2013
Tuesday, 8:30 a.m.
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Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, WoocP7. N
Absent: Trustee Bernero S! -
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Others: Karen E. Williams, Angela Bennett, Finance Department; Attorn~ K<(.8
Lane, Clark Hill Law Office (representing the Law Department); Ge.orge ~rl~
Asset Consulting Group; Mark Parker, Employees Retirement System Boar~ . <.11
It was moved by Trustee Hecksel and supported by Trustee Oleson to approve the
Official Minutes of the Police and Fire Retirement Board Meeting of August 20,
2013.
Adopted by the following vote: 7 -0
It was moved by Trustee Wood and supported by Trustee Benson to approve the
Official Minutes of the Police and Fire Retirement System and the Employees
Retirement System Joint Board Meeting of August 20, 2013.
Secretary's Report.
0 new .fire member(s), O new police members, O reinstatement(s), 0 refund(s), O
transfers, 2 retired. Total: Active membership: 333. 1 death(s), Charles E.
Reifsnyder, Police, died 8/27/2013, age 85, spouse to receive 50%. 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 August,
2013 amounted to $2, 198, 104.19. Total retirement checks printed for the P&F System:
688. Total retirement checks printed for both systems: 1564 Domestic relations order
received: 0 Domestic relations orders pending: 0. Eligible domestic relations orders
certified: 1.
It was moved by Trustee Oleson and supported by Trustee Fabus to approve the
following application for Regular Age and Service Retirement:
David Nosotti, Police Department, 25 years of service credits, age 50,
effective September 14, 2013. (with 1 year, 5 month of universal service
credit purchase)
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Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, Ml
September 17, 2013
Tuesday, 8:30 a.m.
Page Two
It was moved by Trustee Oleson and supported by Trustee Fabus to approve the
following application for Regular Age and Service Retirement (cont.):
Daniel J. Troy, Fire Department, 15 years of service credits, age
55effective October 1, 2013. (from Deferred)
Adopted by the following vote: 7 -0.
Karen Williams reported that Applicant #2013-F0716 has been scheduled to see
the medical director.
Karen Williams reported that Applicant #2013-F0717 has been scheduled to see
the medical director.
Ms. Williams notified the Board that the medical report for Applicant #2013 -P0416
has been received and reviewed by the disability subcommittee.
It was moved by Trustee Wood and supported by Trustee Oleson to go into closed
session so that the Board could review the medical report of Applicant
#2013-P0416.
Adopted by the following roll call vote: 7 -0
Yes: Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin, Wood.
No: 0
The Board went into closed session at 9:02 a.m.
The Board resumed session at 9:06 a.m.
It was moved by Trustee Hecksel and supported by Trustee Kraus to approve the
Non Duty disability of Applicant #2013-P0416.
Mr. Benson inquired about the difference between non duty and duty disability.
Trustee Hecksel explained that duty disability is 2/3 of Final Average
Compensation. Non Duty disability would allow a member with at least ten years
to retire at age and service.
Adopted by the following vote: 7 -0
There were no requests for accumulated contributions.
Regular Meeting
Council Conference Room
10th Floor, City Hall
Lansing, Ml
September 17, 2013
Tuesday, 8:30 a.m.
Page Three
Karen Williams discussed the registration materials for MAPERS Fall Conference
in Grand Rapids, September 22-24.
Karen Williams provided an update on the Arrivos Pension Software Update.
Trustee St. Aubin inquired if there would be any delays from the restructuring of
the Information Technology Division contracting out some services. Karen
Williams did not anticipate any delays.
Trustee Kraus explained the project management services were being contracted
out. The hardware, infrastructure and customer service to employees and
departments should remain the same.
Mark Parker expressed his appreciation to the trustees, and Mr. George Tarlas
and Attorney Ken Lane for their participation.
Karen Williams provided a preliminary report regarding the
Retirement Office regarding the Retirement Conference. The
approximately 275 people who attended, mainly retirees.
indicated a full report would be available at the October meeting.
Police and Fire
Conference had
Karen Williams
Attorney Ken Lane distributed updated policies for the Trustee Handout. Attorney
Lane provided a list of Retirement Board investment managers and vendors for
elected officials for contribution purposes, in order to comply with new provision of
Public Act 314.
Attorney Lane reviewed the recommendation from the Actuary regarding the
calculation of EDROs. The Police and Fire Retirement Board requested that
Attorney draft a policy regarding EDRO calculation for review.
Attorney Lane spoke with Attorney Paul Novak regarding the securities fraud
monitoring. Milberg uses the Veritas system for all of its clients' data, except for
the City of Lansing and another client. Milberg has requested that all clients' data
use the Veritas system.
The Board requested that Attorney Lane invite Attorney Paul Novak to a future
meet to discuss Milberg's request that the City of Lansing Retirement Board use
the Veritas system.
The disability subcommittee provided the Retirement Office with a list of duty
disability retirees to re-examine with the medical director .
.. ,