Loading...
HomeMy WebLinkAbout2013 - Boards, Commission, and Authorities - Meetimg Minutes_2013_11 04 „. Chris Swope Lansing City Clerk �� IGP November 1, 2013 President Wood and Members of the Lansing City Council 10th Floor City Hall Lansing, MI 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 DATE OF MEETING Board of Police Commissioners September 17, 2013 Board of Public Service September 12, 2013 Board of Water & Light Board of Commissioners May 28, 2013 July 23, 2013 Police & Fire Retirement System September 17, 2013 Downtown Lansing Inc. Board of Directors 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. Sincerely, Chris Swope, CIVIC Lansing City Clerk Lansing City Clerk's Office Ninth Floor, City Hall, 124 W. Michigan Ave., Lansing, MI 48933-1695 517-483-4131 o 517-377-0068 FAX www.lansingmi.gov/clerk o clerk@lansingmi.gov BOARD OF POLICE COMMISSIONERS MEETING MINUTES TUESDAY, SEPTEMBER 17, 2013 MEMBERS PRESENT: OTHERS PRESENT: Commissioner Sandra Kowalk-Thompson, Chair Interim Chief Mike Yankowski Commissioner Patty Farhat Vice-Chair Bernard Brantley, Commission Invetat© . .3 Commissioner Bob Noordhoek Bill Kim, Legal Advisor .� n Commissioner Jan Kolp Michelle Reddish, Secretary Commissioner Drew Macon Officer Keegan Stitt n co C Commissioner:Maria Mejorado Officer Douglas Hall ,,,,t Commissioner Bill.Renfr-ew Officer Brent Listerman Commissioner Clyde Carnegie MEMBERS EXCUSED: MEMBERS OF THE PUBLIC/GUESTS : 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: • Reminder 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 6th 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 EI-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 8th 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/ 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 going 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. Chief Yankowski 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 the 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/DISCUSSION ITEMS: None. PUBLIC COMMENT: None. ADJOURNMENT - Commissioner Kowalk-Thompson: There being no further business to discuss, Commissioner Kowalk-Thompson adjourned the meeting at 7:00 p.m. REGULAR MEETING OF BOARD OF PUBLIC SERVICE September 12, 2013 cf) CD PRESENT: Cleo Anderson, Lyndon Babcock, Ron Bloomberg, Matt Flechter,'—t James Marshall, and Shirley Rodgers ABSENT: Paul Baerman, and Alfreda Schmidt C) C r STAFF: Chad Gamble, Dean Johnson, and Christopher Mumby rnn W r VISITORS: None 1) CALL TO ORDER: 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, 41h 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 Public Service Board Page 2 September 12, 2013 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 Page 3 September 12, 2013 1:10 p.m. Mr. Anderson left 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 11)ADJOURN: The meeting adjourned at 1:34 p.m. Respectfully submitted by, Janette Tate, Recording Secretary --S t `S f 4 1� �T PUBLIC SERVICE DEPARTMENT 732 City Hall 124 West Michigan Avenue f Lansing, Michigan 48933 (517)483-4455 FAX:(517)483-5082 http://publicservice.cityoflansingmi.com Virg Bernero, Mayor October 10, 2013 ar- . Mr. Chris Swope w City Clerk n City Hall c' Lansing, Michigan =� C0 RE: Board of Public Service: Approved Minutes Y . Dear Mr. Swope: Attached are approved minutes from the Board of Public Service meetings held September 12, 2013. Please place these minutes on file. Re ectfully submitted, anette Tate Recording Secretary Attachment "Equal Opportunity Employer" MINUTES APPROVED BY THE BOARD Of COMMISSIONERS ON 7-23-13 e�- A Nomew..wr.w..wm..a�.`.�ro..a. 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. y as o Commissioner Price led the Pledge of Allegiance. APPROVAL OF MINUTES 179 Motion by Commissioner Thomas,isecond`ed by`Commissioner Ward to approve the rr 9rn G' Regular Board Meeting minutes of March'."26, 2013. Action: Carried Unanimously ------------------ PUBLIC COMMENTS MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO IMMEDIATELY PRIOR TO ADJOURNMENT. There was no Public Comments ------------------ COMMUNICATIONS a. Letter from L.W. Morrow of Lansing, MI 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, MI, at 5:30 p.m. on Tuesday, April 9, 2013. Regular Board Mtg. May 28,2013 Page 2 of 21 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 (arrived at5:35), 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 Sho General Manager J. Peter Lark introduced Administrative Assistant Jean Gannon�;uvho` organized the safety equipment fashion show. Ms. Gannon stated that it had-been a few years since the fashion show was presented to the Board of Commissioners and was pleased to have the opportunity to do 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 Louney 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 �I tips. Regular Board Mtg. May 28,2013 Page 3 of 21 Oil Spill Update 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 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. Louney 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 Louney 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 of the 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 Regular Board Mtg. May 28,2013 Page 5 of 21 Adiourn On Motion by Commissioner Price, Seconded by Commissioner Thomas, the meeting adjourned at 7:35 p.m. Respectfully Submitted Dennis M. Louney, 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, MI, 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. Louney, 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 Louney 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 hearthe 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 Louney 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. 0 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. Regular Board Mtg. May 28,2013 Page 7 of 21 Excused Absence None Other 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 Louney, 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, MI, 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 Louney, 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. Regular Board Mtg. May 28, 2013 Page 8 of 21 Chair Zerkle said that this matter can be closed with no action taken. 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 redlined contracts sent out to Board members • Tentatively meet to decide if the Board approves contract Other 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 Louney spoke about meeting with the Lansing City Council and revisited the subject of draft minutes availability. Mr. Louney stated that there was another Regular Board Mtg. May 28,2013 Page 10 of 21 organization questioning the timing of the BWL's "Dancing with the Starz" event because it conflicted with their scheduled dancing event. Excused Absence None Adiourn 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, MI, at 5:30 p.m. on Tuesday, May 14, 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, David Price, Tracy Thomas, Cynthia Ward and Sandra Zerkle. Absent: Commissioner Anthony McCloud Public Comments Ron Byrnes Sr., Horsehead Lake, MI, Board of Water & Light Retiree and Chair of the 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 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. Water • 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 of 21 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 1975(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 of 21 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. Other 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. Adiourn On Motion by Commissioner Price, Seconded by Commissioner Thomas, the meeting adjourned at 6:18 p.m. Respectfully Submitted Dennis M. Louney, 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, MI, 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. Louney, 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 Louney 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 Compared to FY 2013 Budget ($000) Budgeted Net Income 14,435 Changes in Operating Income: Revenue Changes (net of fuell Retail Electric (2,601) Wholesale Electric (37) Water Sales 636 Steam Sales (136) Chilled Water Sales (122) Operatina Expense Chances Depreciation 2,082 Labor, Material, and Other 13,759 Other (1,232) Subtotal Changes in Operating Income 12,349 Changes in Other Income: Interest Earnings 357 Other Income 1,115 Increased PILOT (198) All Other-Non-Operating Variances 596 Subtotal Changes in Other Income 1,870 Actual Net Income 28,654 Regular Board Mtg, May 28,2013 Page 15 of 21 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 (000s) Net Income-Original Budget-Annual $ 13,997 FYTD Favorable Income Variance ($28,654 actual minus$14,435 budget) $ 14,219 Temporary O&M Expense Timing Differences $ (5,473) 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. Sales Forecast garEND b c , x 3 �� '� �kf Apr • ,y R . . N,Lltrlltyk�*«'., F.Y14 Forecast. FY�13Bu M,I dget =j. to'18,Bedget Dectr i c-Retai I 2,171,061 2,240,180 -3.1% 0 ectr i c-W hd esal a 639,394 280,352 128.1% B ectr i c(mwh) 2,810,455 2,520,532 11.5% Water (cct) 9,367,743 9,458,641 -1.0% Steam(ml b) 687,979 698,275 -1.5% C hi I I ed W ater tnhr s 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: Regular Board Mtg. May 28,2013 Page 16 of 21 Steam sales volumes are expected to decline slightly in FY 2014. Chilled Water: • 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 Louney to forward the proposed resolution for the FY 2014 Operating and Capital Budget to the Board for consideration. Excused Absence None Other None Adiourn 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 @4:50), Cynthia Ward and Sandra Zerkle. Also present Alternate Committee member Dennis M. Louney. Absent: None Public Comments Regular Board Mtg. May 28,2013 Page 17 of 21 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 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). li n b Commissioner Ward seconded b Commissioner McCloud to o into closed Motto y m y g 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 ManagerJ. 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. Regular Board Mtg. May 28,2013 Page 19 of 21 Action: Carried Unanimously 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. Adiourn 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. RESOUTI0NIpU'13�� Q1 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 RESQLI-MeT N#2073 05 D ' 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 Louney, 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. RES'D�L I�QN�#20;1 05 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 0& 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 Regular Board Mtg. May 28,2013 Page 21 of 21 EXCUSED ABSENCE 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, MI, 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, MI, 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)flied with Lansing City Clerk:July 24,2013 MINUTES APPROVED BY THE BOARD OF c r COMMISSIONERS ON SEPTEMBER 24,2013 t� } Nomewwn qbp...Ibmnenn PoMf. 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. Absent: Commissioner David Price � o The Corporate Secretary declared a quorum present. 0 C") Commissioner McCloud led the Pledge of Allegiance. y APPROVAL OF MINUTES a. rn 01 Motion by Commissioner Bosserery, seconded by Commissioner Thomas to approvthe Regular Board Meeting minutes of May 28, 2013. 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 5C 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 of the 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. ------------------ Regular Board Mtg. July 23,2013 Page 2 of 17 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. 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 The Committee of the Whole of the Lansing Board of Water and Light met at the Executive Offices located at 1232 Haco Dr., Lansing, MI, 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 Update on REO Town 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 3 of 17 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, stated 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. Regular Board Mtg. July 23,2013 Page 4 of 17 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 letter 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 of 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. Louney 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 Adiourn 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 Regular Board Mtg. July 23,2013 Page 5 of 17 FINANCE COMMITTEE June 11, 2013 The Finance Committee of the Board of Water and Light met in the Executive Offices located at 1232 Haco Dr., Lansing, MI, 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 Oumedian, 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. Oumedian 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 6 of 17 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. 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 • 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. Plannedud�ts Estimated Hours y Regular Board Mtg. July 23,2013 Page 7 of 17 ,. . ........ .:::.•:. .. ... .. .. .. .. Software°Licensin ':Coin liance: 4:0'0;' 9 p Accounts Payable 400 Records Retention'Mana ement:`'::: ;>-':; > '::?:-:.':: 400; 9. Fuel Procurement 400 close.ihe Booki'P..'rocesses:and ii�: 40n: :.... :Controls:: ::: .Other Engagements: :..; . :Surprise Cash Counts(2) " 40 :.:,:: . .. Time Reporting Reviews (2) 160 IT Pr"eliminary.Risk Assessment 200 - continued from:FY2013 ,. . ( ) Potential Consultin or-Other; ' 10.0 .. :. 9 Engagement ':•:: .:.:•::; 452-0 :: •Total:Estimated:Hours:: ;,j�y��., p'. Yqz,. T & fi .:F�y'''�'b R�ryr: X.? y "S�'n' x '3' f FL 1 "X+.�`�lz'� '•i �iF C:.�S �� 4 z w r r,.: .. '�' :: _.� •:;L.,.. _,.:as.w, .z....•,,ra,�....r�,�<.; ,,f I�^.:t �: 'd9�tt,�1,,�',u�:.. �:s: Directo -:af•1ntern61 AU iil s �5 .. ....................._...:...,.....,r....:......................i,,..v5..,r...<:,:....::::...::.:'<.,,r.i•;..:..r..:..:.n:r.;`.:..:':: :.£.•=:....:•:;w. •`.•:.lri'9i':: ..::Y�.Ki Charles'Moore`&:Associates,.::,;:.. Augmented-,.'IAservi.ces Total Hours , . ... .,.._ _.... Motion by Commissioner Louney, 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 Other None Adiourn On Motion by Commissioner Price, seconded by Commissioner Louney, the meeting adjourned at 7:14 p.m. Respectfully submitted Regular Board Mtg. July 23,2013 Page 8 of 17 Margaret Bossenbery, Chair Finance Committee NOMINATING COMMITTEE MINUTES June 26, 2013 The Nominating Committee of the Lansing Board of Water and Light met at the Executive Offices, Conference Room, located at 1232 Haco Dr., Lansing, MI 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 Regular Board Mtg. July 23,2013 Page 9 of 17 HUMAN RESOURCE COMMITTEE July 16, 2013 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. Louney (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 Regular Board Mtg. July 23,2013 Page 10 of 17 • Excise Tax Projected Exposure PA 152 (Premium Sharing Percentage)-Resolution 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 Louney 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. RE�OLU #IONx#�0�3�070 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 12 of 17 1, 1992 in the amount of 4% of net billed retail sales from electric, water, and steam, and; WHEREAS,on December 171h, 2001, the Board and the City modified the agreement by Amendment No.1(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.1on 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) RI XURT AAN20s13 0r7 2 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 13 of 17 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 where 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 Louney, 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 Regular Board Mtg. July 23,2013 Page 14 of 17 And Dennis M. Louney serving as Vice Chair 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 3 NaMttoun Ieaple.ilwMwnn PNhf. RE�S'O'Ll�I,TO�N #2U��I�3�07� NEW BOARD MEETING LOCATION 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 September 24 Tuesday November 19 Regular Board Mtg. July 23,2013 Page 15 of 17 Meetings will be held in the Board Room located in the Board of Water & Light's REO Town Depot located 1201 S. Washington, Lansing, MI, at 5:30 p.m. RESOLVED FURTHER, That a notice of the meeting schedule be published in the Lansing City Pulse the week of 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, MI 48910. Action: Motion Carried wm vw ye w RESOLU,�TI02013 07 u04 Appointment of the Charter Position of Director and General Manager The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July 15t of each year or as soon thereafter as may be appropriate. RESOLVED, That the Board of Commissioners hereby appoints the following individual to the Charter position of Director and General Manager for fiscal year 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 4 � �K mg —w- wr4 RESOLI$JTI�ON�#2�0�.3 07�OS 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 15t of each year or as soon thereafter as may be appropriate. RESOLVED,That the Board of Commissioners hereby appoints the following individual to the Charter position of 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 Regular Board Mtg. July 23,2013 Page 16 of 17 RESOLUTIO`N7#Q.13 07 06 Appointment of the Charter Position of Corporate Secretary The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, respectively at its first regular meeting following July 15Y 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. Louney 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. Louney, Cynthia Ward and Tony Mullen on their appointments. Commissioner Thomas congratulated Legal Counsel Brandie Regular Board Mtg. July 23,2013 Page 17 of 17 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. Louney 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, MI, spoke about resident's concerns in regard to the increased cost of their electric utility service. General Manager Lark referred Ms. Kingdon to Bob Perialas, Manager of Customer Service. David Walton, Lansing, MI, 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 LA SING POLICE AND FIRE RETIREMENT SYSTEM Regular Meeting September 17, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hail Lansing, MI 'ram ra.• The Board was called to order at 8:54 a.m. w Present: Trustees Benson, Fabus, Hecksel, Kraus, Oleson, St. Aubin,'Wood©7. Absent: Trustee Bernero n Others: Karen E. Williams, Angela Bennett, Finance Department; Attorn -[ K� C Lane, Clark Hill Law Office (representing the Law Department); George rla Asset Consulting Group; Mark Parker, Employees Retirement System BoardF cn 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), 0 new police members, 0 reinstatement(s), 0 refund(s), 0 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 RegularAge 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) Regular Meeting September 17, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI 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 September 17, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI 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 Police and Fire Retirement Office regarding the Retirement Conference. The Conference had approximately 275 people who attended, mainly retirees. Karen Williams indicated a full report would be available at the October meeting. 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. At 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. Regular Meeting September 17, 2013 Council Conference Room Tuesday, 8:30 a.m. 10th Floor, City Hall Lansing, MI Page Four Trustee St. Aubin informed the Board that he was contacted by an Investment Manager. Trustee St. Aubin forwarded the information to Asset Consulting Group for evaluation Mr. George Tarlas, Asset Consulting Group stated that the Investment firm was rolling out a fixed income strategy. Mr. Tarlas stated WAMCO has had changes to its management team and that the Board will review its fixed income strategy during the fourth quarter. Mr. Tarlas provided a review of Wells Fargo/Berkeley for emerging market strategy and reminded the Board that the investment firm was interviewed last year. Mr. George Tarlas provided a review of the investment performance for the month of September 2013. Trustee Wood notified the Police and Fire Retirement Board regarding the City Attorney's request to add a new law firm to the City Council's preapproved list. One of the law firms was securities recovery. Trustee Wood refused the addition of the securities recovery firm because the Board had already interviewed and selected firms for securities recovery. The City Attorney also inquired if the Retirement Boards would like to interview the law firm to add them to the preapproved list. The Police and Fire Retirement Board declined the request to interview the new law firm. It was moved by Trustee Oleson and supported by Trustee Hecksel to adjourn the meeting. Adopted by the following vote: 7 - 0 The meeting adjourned at 9:39 am. Minutes approved on Angela Bennett, Secretary Police & Fire Retirement System Brad St.Aubin, Chairperson Police & Fire Retirement System Downtown Lansing Inc. Board of Directors Meeting Minutes DLI Conference Room Thursday, September 12,2013 cr 10:30 a.m. Members Present: Terry Carella,Doug Johns Jr.,Nicki Proulx,Karl Dorshimer,Phil Clacko Members Absent: Pamela Werling,Jason Keusch Board Advisors Present: None Board Advisors Absent: Jessica Yorko,Eric Rosekrans,Louise Gradwohl Guests Present: Bob Rose,Taneko Richard,Moe Baumgrass Staff Present: Mindy Biladeau,Jenn Wood,Cathleen Edgerly Staff Absent: None I.CALL TO ORDER T. Carella called the meeting to order at 10:35 a.m. II. CITIZENS COMMENTS: None. III.APPROVAL OF AGENDA AND-MINUTES: P. Clacko motioned to approve the minutes form the August 8, 2013 meeting and the agenda fff the September 12,2013 meeting.K.Dorshimer seconded.Motion passed unanimously. > to cu IV. OTCA UPDATE M. Biladeau reported that she received an email from;L. Gradwohl stating that the Busby Sculptt�wenn up in Old Town yesterday,and there will be: kick off'event on Sunday from 2-5 p.m. called Robe of Caring. cz V. COMMUNITY POLICING UPDATE t— 4t _ .C None. rl VI.DOWNTOWN MAINTENANCE UPDATE&REPORT M. Baumgrass with Lake State Lawn & Snow Removal reported that there has been normal routine maintenance, including trash removal, weeding, and mowing grass. They've also been emptying the recycle bins every 2 weeks. They will start coordinating for snow in a couple of weeks. VII. CORRESPONDENCE: Historical Society of Greater Lansing M. Biladeau reported that she received a request from the Historical Society of Greater Lansing for sponsorship for an upcoming silent auction on October.5. Discussion was had and P. Clacko motioned to decline the request. D.Johns,Jr. seconded. Motion passed unanimously. VIII.REPORTS President's Report-T. Carella T. Carella stated she had nothing to report other than receiving the proposed new Vision Statement from J.Keusch and P.Werling that will be reviewed under discussion/action items. Director's,Report-M.Biladeau M. Biladeau reported that the 60i.Annual Trick or Treat on the Square will be Oct. 28 from 5-7:30 p.m. The alternate rain date will be Oct.29. The Promotions Committee is-Working on the event. 1 Planning for Silver Bells is going well. There will be some changes to the media promotions this year to enhance the live broadcast.The Electric Light Parade will be broadcast live on FOX 47 and WAR from 6-8 pill on Friday, Nov. 22. La Fille Gallery is designing the commemorative ornament. Parade application deadline was last week and the parade is hill with 64 units and 10 marching bands. Vendor applications for the Village are due tomorrow. The work plan for the PSD assessment task force is underway. Committee Reports: - Business Development - Design - Public Spaces Organization Promotions. Written reports were provided by each of the committees. B. Rose from the Design Committee also reported that the committee had received an application from Downtown Subs and New York Burrito for a permit to allow a grill outside their restaurant on the sidewalk for the nighttime crowds. The recommendation from Public Service is to deny the application due to smoke and safety issues and complaints from neighbors and residents living in the area. The City Engineer has the final decision regarding safety issues in the public right of way. The Committee may look at offering the applicant other options. Financial Report: K. Dorshimer provided a year-to-date financial report for July 2013, which has not yet been reconciled with the City. A comparison report was also provided. D.Johns,Jr. made a motion to put the President's,Director's,and Committee reports on file.D:Johns,P. Clacko.Motion passed unanimously. VIM.DISCUSSION/ACTION ITEMS A. Review Vision Statement The Board reviewed the second draft of the new Vision Statement and discussion ensued. D. Johns, Jr. motioned to adopt the following Vision Statement for DLI,and T. Carella seconded: "Lansing, Michigan - the civic, economic and social identities of the Great Lakes State live and breathe beneath the shadow of the Capitol dome and traverses in all directions from Michigan Avenue and Washington Square. This Michigan epicenter rides east to Detroit, west to Grand Rapids, and north to Pure Michigan. Over these by-ways a whole state is represented, its 10 million voices heard, its beauty beheld. As,Michigan's Capital City, Lansing understands its special responsibility to transport the strength and dreams of a productive people living in 'a bountiful, beautiful state. A Lansing vision statement cannot be dreamed without understanding this special role. Downtown Lansing Inc. (DLI) manages a local Main Street Program and Principal Shopping District that is one of the most populous and largest geographically in our State. It understands its role as administrator, facilitator and communicator of the experience that is Lansing. It must balance the adventures-of the tourist with the practicality of workers and residents by fostering economic growth, partnerships and a sense of community to create a vibrant, energetic and beautiful downtown district that is welcoming to all who visit. This carefully crafted mix of small town charm and big city 2 economics will continue to establish downtown as a "first choice" destination for business owners, patrons. and visitors. Lansing's central location and proximity to higher educational institutions reinforce the character and image of an historic urban town square. Utilizing the Main Street Four-Point Approach, downtown Lansing will grow to be highly self-reliant with representation and involvement from a broad cross-section of the community. The growth and success of downtown Lansing will be further achieved by reaching out to downtown stakeholders, increasing the lines of communication and engaging the community in the Main Street program. The roads into our city must be exciting and robust. The roads out of our city should spread our unique story, enhance perception by exceeding expectations, and thereby grow the reputation and continue the transformation of downtown Lansing into a world-class capital city." The motion passed unanimously. B. DLI Lease Extension Update D. Johns, Jr. provided a draft of the lease addendum which provides for the current lease term to be extended to April 2014 at a rate of $1,700.00 per month beginning October 2013 and a 1-year lease extension option to April 2015. The monthly rate during any lease extension from April 2014 April 2015 would be$2,300.00,and DLI would have to give 3 months'notice if it wishes to exercise the 1-year extension. The landlord agreed that if his employees are still in the space they are currently occupying during the 1-year extension, he will pay $600.00 per month as a sublease for that space, thus leaving DLI's out-of-pocket rent cost at $1,700.00 per month. A listing for that space can also be placed with Vlahakis to see if DLI can find a new tenant to sublease that space for$600.00 per month. P. Clacko proposed inquiring about a longer-term renewal option(such as a 3-year renewal option rather than a 1-year renewal option) to avoid having to re-negotiate the lease again in a year. The lease task force will re-convene to discuss this latest proposal. C. Umbrellas for City HaII Plaza Furniture M. Biladeau reported that 3 new umbrellas are needed for the outdoor furniture at City Hall because they have broken due to weather and other issues. The cost for the umbrellas will likely be around$100 each. D. Johns Jr. motioned to hold off purchasing the new umbrellas until the spring. P. Clacko seconded. Motion passed unanimously. X. OTHER BUSINESS: None. M.ADJOURN: P. Clacko motioned to adjourn at 11:35 a.m. D.Johns,Jr.seconded.Motion passed unanimously. Minutes by N.Proulx N. Proulx, Secretary �{ 3 I