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Home My WebLink About1990 Minutes BOWL January 23, 1990 1 Office, Board of Water and Light Lansing, Michigan Tuesday, January 23, 1990 The Board of Commissioners met in regular session at 5:30 p.m. The meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Stroller Williams, and Chairman Hassler -8 Absent: None The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) Invocation and Pledge The Invocation and Pledge of Allegiance was given by Chairman Hassler. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Approval of That minutes of regular session of December 19, 1989 be approved Y nutes as mailed. Adopted unanimously. Claud Erickson A brief ceremony was held honoring former General Manager Claud Erickson, honored for his who was present in the audience. Chairman Hassler announced that on ninetieth birthday January 8, 1990, Claud Erickson celebrated his ninetieth birthday, completing another milestone to his long list of accomplishments. Mr. Erickson was presented with a watch--engraved with the BWL's logo--in recognition of his ninetieth birthday and in appreciation for his past 52-year career with the BWL. Public Oamments CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED .THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. Lloyd Teets speaks Mr. Lloyd Teets, 116 E. Elm Street, Lansing, spoke relative to his on property demolition concerns resulting from the demolition of his vacant property at 4501 and utility service Ingham Street, Lansing. He read portions of his letter, dated January 3, removal 1990, sent to Consumer Services Director Neal Housler alleging the lack of due process with the City's demolition procedure and the BWL's removal of utility services at the same address. He further opined that the BWL's transfer of a $19.94 delinquent balance from his demolished Ingham Street property to his current address of 116 E. Elm Street was illegal. Mr. Teets indicated he plans to file a claim with the BWL for damages. 2 January 23, 1990 John Salmons of City Mr. John Salmons, Chief Code Compliance Officer of the City of Lansing Building Safety Building Safety Division, briefed the Commissioners on the demolition Division speaks on procedures followed by the City of Lansing. He reported that the City demolition procedures followed both City Ordinance and State law in the demolition of Mr. Teets' property at 4501 Ingham Street in order to bring the property up to code. Mr. Salmons further reported that prior to the demolition, City Council passed a resolution requiring Mr. Teets to make necessary repairs to meet code requirements; otherwise arrangements would be made by the City with an appropriate contractor to have the structure demolished. Since repairs were not made, the City contracted to have the structure demolished. The contractor arranged to have the utility services removed before the demolition. In closing, Mr. Salmons advised that Mr. Teets has indicated he will be filing legal action against the City as his next course of action. Letter fram Frank A letter of complaint from Frank Nagele was received regarding BWL service Nagele RE: Utility at 2217 Lyons Avenue, Lansing. service complaint The Commissioners received a copy of a staff memo from Consumer Services Director Neal Housler and Water Utility Director Clyde Dugan, dated January 17, 1990, outlining the manner in which Mr. Nagele's concerns were resolved to his satisfaction. January 23, 1990 3 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: PENSION Res. No. 90-1-1 That Rosemarie Davisson, Staff Specialist in Electric Maintenance and Metering Department, be placed on an early Early reduced pension reduced pension of $799. 17 per month effective January 2, approved for Rosemarie 1990. Ms. Davisson has worked for the BWL for 22.87 years Davisson effective and is 58 years of age. 1-2-90 -------------------- This is a straight pension with no benefits for a dependent. -------------------- Res. No. 90-1-2 That Phillip L. Morey, Coal Operator A, Coal Handling Department, be placed on a monthly pension of $1 ,198.59 pension approved for effective January 2, 1990. He has selected Option VI with Phillip Morey the provision that after his death, if his wife, Janice H. effective 1-2-90 Morey, survives him she will receive 70% or $839.01 per month for the rest of her life. If his wife predeceases him, the pension amount of $1 ,198.59 will revert back to the regular pension amount of $1 ,378.67 for the rest of his life. Mr. Morey has worked for the BWL for 31 .14 years and is 55 years of age. -------------------- 4 January 23, 1990 PENSION (Continued) Res. No. 90-1-3 That Eugenio Villarreal, Station Shift Supervisor at Eckert Station, be placed on a monthly pension of $1 ,423.56 Pension approved for effective January 2, 1990. He has selected Option VI with Eugenio Villarreal the provision that after his death, if his wife, Patricia effective 1-2-90 Lou Villarreal, survives him she will receive 70% or $996.49 per month for the rest of her life. If his wife predeceases him, the pension amount of $1 ,423.56 will revert back to the regular pension amount of $1 ,720.04 for the rest of his life. Mr. Villarreal has worked for the BWL for 29.71 years and is 60 year of age. -------------------- Res. No. 90-1-4 That Thomas N. Jakeway, Superintendent of Line Construc- tion, be placed on a monthly pension of $2,267.26 effective Pension approved for February 1 , 1990. He has selected Option III with the pro- ghana,S Jay vision that after his death, if his wife, Betty J. Jakeway, effective 2-1-90 survives him she will receive 70% or $1 ,587.08 per month for the rest of her life. Mr. Jakeway has worked for the BWL for 32.61 years and is 58 years of age. -------------------- Res. No. 90-1-5 That Davis E. Stauff, Boulevard Supervisor in Line Con- struction, be placed on a monthly pension of $906.07 effec- Pension approved for tive February 1 , 1990. He has selected Option III with the Davis Stauff provision that after his death, if his wife, Janis E. effective 2-1-J90 Stauff, survives him she will receive 20% or $181 .21 per month for the rest of her life. Mr. Stauff has worked for the BWL for 22.79 years and is 55 years of age. -------------------- Res. No. 90-1-6 That Shirley A. Knight, Staff Specialist in Line Construc- tion, be placed on an early reduced pension of $733.20 per Early reduced pension month effective April 1 , 1990. She has selected Option V approved for Shirley with the provision that after her death, if her husband, Knight effective William L. Knight, survives her he will receive $366.60 4-1-90 per month for the rest of his life. If her husband pre- deceases her, the pension amount of $733.20 will revert back to the regular pension amount of $764.54 for the rest of her life. Mrs. Knight has worked for the BWL for 24.21 years and is 55 years of age. -------------------- Jantkary 23,' 1990 5 WATER Res. No. 90-1-7 Authorize $73,920 for the installation of an ammonia gas feed system at the Wise Road Water Conditioning Plant. Approval to install an ammnia gas feed -------------------- system at Wise Road Conditioning Plant The residual disinfectant concentrations at the perimeter of the water distribution system have dropped below the recommended level due to recent system expansion in Delhi Township. The ammonia gas feed system will allow an increase in the concentration of combined chlorine disin- fectant leaving the Wise Conditioning Plant. This will provide improved control of disinfectant levels in the distribution system throughout the Wise Road service area. This is being performed by BWL forces. -------------------- Respectf ly submitted, Joseph Pandy, . General Manager JP/bg 6 „ January 23, 1990 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Pension resolutions RESOLVED, That Resolutions 90-1-1 through 90-1-6 (Pension) of approved the General Manager's Recommendations be approved. Adopted unanimously. Presentation on BWL Water Production Chemist Bill Maier gave a brief presentation on the Chloram nation positive results of the Chloramination Pilot Study conducted to address study results water taste and odor complaints due to iron bacteria in Delhi Township by Bill Maier and in the Churchill Downs Subdivision of Southwest Lansing. Study results indicated (1) chloramine is effective in reducing heterotrophic bacteria and (2) is an effective disinfectant for the control of nuisance (black water) bacteria. The Commissioners authorized implementation of this project at the regular September 27, 1988 meeting. Mr. Maier reported that with ammonia injection at the Wise Road Conditioning Plant, chlorine residual levels were raised in the distribution system. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Water RESOLVED, That Resolution 90-1-7 (Water) of the General Resolution Manager's Recommendations be approved. approved Adopted unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following BWL activities: OAKWOOD DRIVE TRANSFORMER CLAIMS. Staff Attorney Larry Wilhite is ....................................................................................._..................................................................... continuing to negotiate with the law firm of Sinas, Dramis, Brake, Boughton & McIntyre in an attempt to settle the Oakwood Drive PCB claims. SHARE THE SUCCESS UPDATE. Through the month of December, the Share the Success point total is at 295 as compared to 327 for the same period last year. WATER REGIONALIZATION UPDATE. An excellent editorial supporting the ................................................................................... ....................................... BWL's efforts to regionalize water appeared in the January 16 issue of the LANSING STATE JOURNAL. Mr. Pandy noted that a meeting is scheduled with the Meridian Township Utility Committee on February 2 to open discussions on a possible water interconnect with the BWL. Water Utility Director Clyde Dugan added that Delta Township has also indicated an interest in establishing negotiations on a water interconnect. January 23, 1990 7 ISSUANCE COST OF 1989 BONDS. Expenses associated with the $1.6 million ..................... .................. ........... ................................I............ ............. worth of minibonds (Series B) were $38,868.05 or 2.41% of the issue value. Total costs were 2.63% of the $15.6 million face amount issued. On a dollar per dollar basis, the minibonds ended up being more economical than the $14 million issue (Series A) at 2.66%. DELHI TOWNSHIP DISCUSSIONS ON WATER CHARGES. Chairman Hassler, General ..........................................................._............._.._....................._........................................._......................_..............................._...._... Manager Pandy and Water Utility Director Dugan met with Delhi Township officials on January 9 to discuss long-term planning for water system extension and improvements to encourage growth in the area. The Township is requesting a modification of the 1972 Water Service Agreement between the BWL and Delhi Township. The issue of eliminating the suburban surcharge was also brought up by the Township. The Township agreed to send the BWL a letter outlining their position for consideration. BANK OF NEW ENGLAND DISCLOSES FOURTH QUARTER LOSS. Mr. Pandy called attention to an article in the January 22, 1990 WALL STREET JOURNAL reporting that the Bank of new England has suffered a fourth quarter loss of $1.2 billion. Mr. Pandy noted that the BWL Pension Fund owns a $400,000 Bond (representing .4% of the Pension Fund's total value) , which matures on March 1, 1999 at 8.85%. The bond was initially purchased on January 23, 1987 with an A2/A+ rating. A default situation does not currently exist, however, the interest payment on the BWL bond comes due March 1, 1990. The Commissioners will be kept apprised of future developments. Bonds are a more secure position than are the common stock shares of the bank. ECKERT STATION OUTAGE. The major turbine/generator overhaul of the ..........................................................................................._............ Eckert Station #5 unit, which began December 1, 1989, is scheduled for completion by February 28. Major turbine overhauls are scheduled on a seven year or 50,000 hour basis. ANALYSIS OF UTILITY RELIABILITY. An analysis of utility reliability ........................................................................................................................................................... conducted by the Michigan Public Service Commission was handed out. The BWL was not included in the study, however, staff developed numbers to compare the BWL with Consumers Power Co. (CPCo) and Detroit Edison Co. (DECo) . The following comparisons were reviewed covering the year 1988: Average Restoration Frequency of Periods Interruptions per Year ------------- ---------------------- ------------- ---------------------- CPCo 191.0 Minutes 1.54 DECo 172.0 Minutes .62 BWL 60.2 Minutes .59 8 January 23, 1990 REQUEST FROM L.I.S.C. A request from the Local Initiatives Support Corporation (LISC) has been received seeking a three-year pledge in the amount of $5,000 to $10,000 per year range to assist in the support of rehabilitation of Lansing's lower income neighborhoods. LISC is a nationally recognized private non-profit corporation that provides technical and financial assistance, thorough a partnership of private and public dollars, to community-based developers engaged in housing rehabilitation and commercial revitalization. LISC's 1990 target is to raise $60,000 from Lansing area corporations and foundations. General Manager Pandy suggested waiting one year before considering BWL participation in order to evaluate the success of this local program. A.P.P.A. FUEL CELL INITIATIVE. Staff has reviewed the APPA Fuel Cell ....................................................................................................... Initiative and is of the opinion that this viable technology will be competitive in the mid 1990's. Mr. Pandy indicated the BWL would like to be represented at the Fuel Cell briefing on February 28 in Dallas, Texas. Should this project briefing result in a positive impression and the participation cost of the Demonstration Unit fits within the BWL's criteria, staff may recommend that the BWL participate in the Demonstration Unit Phase of Energy Research Corporation's (ERC) commercialization plan. STATUS ON RESPONSES TO E.P.A. Staff has responded to the U. S. ........................................................................................................................................... Environmental Protection Agency (EPA) Region V regarding the Notices of Violation for Moores Park and Ottawa Stations. The Commissioners received copies of letters, dated December 29, 1990, sent to EPA outlining approaches to be taken to meet compliance standards. The BWL is awaiting response from EPA on the resolution of Notice of Violation issues. REMOTE METER CHANGEOVER PROGRAM. The Water Utility has requested to ........................................................................................................................................................... accelerate the meter changeover program. The original time frame was to complete this project in 1994. The project would be expedited by two years with the addition of one mechanic and two laborers to the Water Utility. Mr. Pandy noted that the remote meters are 3% more accurate than the old mechanical meters, which justifies itself on a return on investment basis. The financial impact of the expedited program was summarized. It was also pointed out that the additional manpower is well within the FY 1989-90 Budget. DISTRICT COOLING SYSTEM. A letter from Steam Utility Director Joette ....._.................._.................................................................................... .. Woodard-Yauk to the Director of Office of Support Services, State Department of Management and Budget, dated January 16, 1990, was handed out. Ms. Woodard-Yauk's letter detailed background information and considerations raised in previous discussions with the State. Mr. Pandy indicated that the State has expressed great interest in the district cooling concept. The State has not only existing cooling requirements, but an additional 3,500 tons of cooling will be required for State buildings within the next five years. Staff is actively negotiating with the State to provide the cooling with a steam driven chiller rather than an electric motor driven chiller. Mr. Pandy emphasized that staff may be presenting a recommendation to the Board as early as next month to proceed with the District Cooling project in March, 1990. Jari»y 23, 1990 9 STATUS OF H.S.U. ENERGY PROPOSAL. Mr. Pandy briefed the Commissioners on......t�.e..._. . ..... I ......................................................._....__............................... result of staff's meeting with MSU and their consultants. He reported the BWL's costs are significantly below the $60 million that it would cost MSU to build a power plant. The reliability issue of a single steam pipeline was raised by MSU and discussed at length. Mr. Pandy noted that it appears the issue of MSU building their own power plant or buying energy requirements could be a political one. PU........................................................ No. 2 is scheduled for February 13, at 5:30 p.m., in the Board Room. The purpose of the hearing is to make Rate No. 2, developed for General Motors, available to other customers. A Committee of the Whole meeting will follow the public hearing. BWL ANNUAL REPORT. Copies of the BWL Annual Report for Fiscal Year ............_...................................... ........._ ....... ended June 30, 1989 were handed out to the Commissioners. LIFETIME M.M.E.A.NOMINATION FOR EARL BRUSH. Mr. Pandy advised that former General Manager Earl Brush has never been nominated to become a lifetime member of the Michigan Municipal Electric Association (MMEA) . A supporting Board resolution is required for the nomination. Mr. Pandy proposed a resolution in recognition of Earl Brush's contribution to public power. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER JESSOP Resolution No. 90-1-8 NOMINATION FOR LIFETIME MEMBERSHIP IN THE MICHIGAN MUNICIPAL ELECTRIC ASSOCIATION FOR EARL F. BRUSH Resolved by the Board of Water and Light Commissioners: WHEREAS, Earl F. Brush served the Lansing community as General Manager of the Board of Water and Light from 1972 until his retirement on January 2, 1985. During his 16-year tenure at the Board of Water and Light, he distinguished himself as a leader of Michigan municipals; and WHEREAS, his career in the public utility field in both Ohio and Michigan has spanned four decades; and WHEREAS, his involvements in the local, state and national scene are well known. He served as President of the American Public Power Association in 1980/81, Chairperson of the Michigan Public Power Agency from October 1983 through 1984, Chairperson of the Lansing General Hospital Board of Trustees 1983/84, member of the Board of Directors of the Michigan Municipal Electric Association in 1983/84, and a member of the American Water Works Association; and 10 - January 23, 1990 WHEREAS, Earl has also contributed his time and effort conscientiously by engaging in activities in our community; NOW, THEREFORE, BE IT RESOLVED the Board of Water and Light Commissioners hereby recognizes Earl F. Brush for his loyalty to the public power industry by nominating him for a lifetime membership in the Michigan Municipal Electric Association. Adopted by the following vote: Unanimously. LANSING REGIONAL CHAMBER OF COMMERCE CORPORATE CHALLENGE CAMPAIGN. The ............................................................................................................................................................._...._............................................_..................................................................................._....._...... recent Lansing Regional Chamber of Commerce membership drive increased the total membership by 20%. Of the $66,891 raised, $22,857 came from the BWL Teams, representing one-third of the total. A total of thirty teams from area businesses participated in this annual membership campaign. The Annual Chamber of Commerce Dinner Meeting is being held on February 1 at the Clarion Hotel and Conference Center. MICHIGAN D.S.S PAYMENTS. A summary of DSS payments for the month of ................................................................................................................... December was handed out for review. The report indicated that a total ' of $143,756.95 was received from DSS for the month of December to cover o various utility services to 6,389 customers. Mr. Pandy reported that 61 staff has been working on coming up with programs for BWL customers rn needing bill paying assistance. A detailed report on this matter will be forthcoming in the near future. nM VIDEO ON A PREPAY METERING SYSTEM. A video on a new electronic prepay ........_..................................................._......................... _ _..........__._.... system was shown. This new device in part addresses the question of r� providing services to low income customers and solving billing delinquency problems. Mr. Pandy pointed out that the system does more than simply collect bills in advance. It monitors and manages a r� customer's energy bill by displaying electric usage in dollars and cents in the device's display terminal. Staff is exploring the feasibility of a small pilot project using several of these metering devices. Literature on this system was handed out for review. REMARKS BY BOARD COMMISSIONERS Commissioner McComb expressed his appreciation for the memo written by Consumer Services Director Neal Housler, dated December 28, 1989, analyzing the approaches taken in adjusting customer billings involved in disputes. On motion of Commissioner Strolle, the Board adjourned at 6:48 p.m. AA!Jlova�tary Filed: January 25, 1989 James D. Blair, City Clerk February 27, 1990 11 Office, Board of Water and Light ' Lansing, Michigan Tue dla r ry 27, 1990 i The Board of Commissioners met in regular session at .m. TheU0 meeting was called to order by Chairman Hassler. 9 P�► Z Roll (:all Present: Commissioners Belen, Jessop, Sebolt, S�'61 b, and Chairman Hassler --5 Absent: Commissioners Evans, McComb, and Willi ms--3 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) Invocation and Meeting The meeting was dedicated to, and an invocation was delivered by Chairman Dedicated to Juan B. Hassler, in memory of Board of Water and Light employee, Juan B. Salazar. Salazar A period of silent meditation followed. Pledge of Allegiance The Pledge of Allegiance was said by all present. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of January 23, 1990 be approved Minutes as mailed. Adopted unanimously. Public Ccawnts CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke C,mrnmications The following communications were received: 1. Letter of thanks from former General Manager Earl F. Brush regarding his nomination for a lifetime membership to the Michigan Municipal Electric Association (MMEA) . Placed on file. 2. Letter from John D. Tellier, 643-1/2 N. Sycamore Street, Lansing, regarding the proposed Industrial Steam Service Rate. Referred to staff for response. 3. Letter from BWL Commissioner Bruce E. McComb submitting his resignation as a Commissioner effective March 15, 1990. Mr. McComb is relocating to the Saginaw area. Chairman Hassler noted Mr. McComb's dedicated and valued service to the BWL. Resignation accepted with regret. 12 February 27, 1990 Resolution 90-2-1 COMMITTEE OF THE WHOLE REPORT February 27, 1990 Ccam. of the Whole Board of 'Commissioners Report RE: Chilled Board of Water and Light Water District - Lansing, Michigan Authorization to proceed with The Committee of the Whole met with staff on February 13, 1990, to receive engineering design an update on Phase I of the proposed BWL Chilled Water District. Present were Commissioners Belen, Evans, Jessop, Hassler, McComb, Sebolt, Strolle, and Williams (Chair Pro Tem) . Staff reported that since completion of the SFT District Cooling Program Feasibility Study in September, 1989, some events have occurred necessitating a restructuring of the consultant's proposed Chilled Water System approach. More specifically, the State of Michigan has indicated they are willing and legally able to consider negotiations relative to leasing or conveying their chilled water plant to the BWL. The opportunity to utilize the existing State of Michigan Chiller Building for the initial Chilled Water District plant would allow the BWL to go with a phased approach to the distribution system as outlined in staff's presentation. Additionally, a second plant and the remainder of the distribution system would be installed after the first plant and distribution system are on line and operational. This is in contrast to the SFT Feasibility Study assumption that there would be one main chiller facility and all of the major distribution piping installed essentially at one time. Staff presented the advantages and impacts of the new approach. Tradeoffs between the increase in distribution piping cost and reduced plant costs due to a two plant concept were illustrated and discussed at length. Following discussion, the Commissioners concurred with staff's recommendation to proceed immediately with the engineering design of a proposed Chilled Water District to more precisely identify capital investment costs. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER JESSOP SECONDED BY COMMISSIONER SEBOLT That the Committee of the Whole Report (Resolution 90-2-1) be approved as presented. Adopted unanimously. 13 February 27, 1990 Resolution 90-2-2 PERSONNEL COMMITTEE REPORT February 27, 1990 Personnel Comm, Board of Commissioners Report - Draft of Board of Water and Light Employment Agmt. for Lansing, Michigan General Manager submitted to leg3.1. The Committee reports it met on February 13, 1990, to review a draft counsel for advice copy of a proposed Employment Agreement between the Board of Commissioners and the General Manager. Present were Committee Members Jessop, McComb, Williams (Alternate) , and Strolle (Alternate) . Also present were Commissioners Hassler, Belen, and Evans. Absent was Commissioner Seboit. Following discussion, there was consensus to proceed with the following course of action: 1. Submit the -revised draft Employment Agreement to legal counsel representing the Board of Commissioners; namely, Loomis, Ewert, Ederer, Parsley, Davis & Gotting for review and advice. 2. Upon receipt of appropriate legal advice, the Personnel Committee will submit a final copy of the proposed Employment Agreement to the Board for action. Respectfully submitted, E. Lane Jessop, Chair Personnel Committee BY COMMISSIONER JESSOP SECONDED BY COMMISSIONER SEBOLT That the Personnel Committee Report (Resolution 90-2-2) be approved as presented. Adopted unanimously. 14 February 27, 1990 February 27, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-2-3 Adopt the attached policy regarding workplace fund raising in which the Board of Water and Light will permit Policy RE: Work- one annual campaign allowing payroll deduction among place Fund Raising employees at the workplace to support outside charitable adopted organizations. (See page 22 of minutes.) -------------------- Capital Area United Way has managed a community system enabling employers to hold one annual workplace campaign for more than seventy (70) years. Today, with increasing frequency, employers are being approached by charities not currently participating in our community system who are asking for access to the employees and payroll deduction giving. -------------------- ADMINISTRATIVE SERVICES Res. No. 90-2-4 That the following Board-owned vehicles and equipment, which have been replaced, be sold at auction or through Authorization for competitive bids. 40 BWL-owned vehicles and equip- BWL # Description ment to be sold at 12 1981 GMC J9C064, 54,000# GVW tandem tractor with auction or canpeti- Ram-E-Jec trailer, (odometer reading approx. tive bid 83,422 miles); Construction Services Dept. 15 1983 Chevrolet CT10603, 4, 162# GVW 4-wheel drive pickup, (odometer reading approx. 53,310 miles; Garage Vehicle Pool. 27 1982 Ford E350, 8,550# GVW van type truck with bucket (will be sold for parts--was in fire, not road-worthy); Construction Services Dept. 15 February 27, 19 ADMINISTRATIVE SERVICES (Continued) BWL # Description (Res. No. 90-2-4) 36 1981 Chevrolet CC31403, 10,000# GVW crew cab and chassis with service body (odometer reading approx. 44,432 miles); Water Distribution Dept. 38 1981 Chevrolet CC31003, 10,000# GVW cab and chassis with flatbed (odometer reading approx. 21 ,002 miles); Water Production Dept. 55 1981 Chevrolet CC20903, 8,600# GVW V-8 pickup truck (odometer reading approx. 31 ,564 miles); Eckert Station. 62 1977 Ford/Fabco LN-800, 31 ,000# GVW cab and chassis with earth boring machine (odometer reading approx. 86,408 miles); Line Construction Dept. 65 1986 Chevrolet CC10703, 5,600# GVW V-8 pickup truck (odometer reading approx. 80,912 miles); Water Distribution Dept. 66 1975 International 1700, 24,200# GVW cab and chassis with hydrolift (odometer reading approx. 19,220 miles); Stores Dept. 72 1961 GMC TC31043, 10,000# GVW cab and chassis with utility body (odometer reading approx. 27,850 miles); Water Distribution Dept. 73 1980 GMC TC30943, 10,000# GVW cab and chassis with utility body (odometer reading approx. 50,396 miles); Water Distribution Dept. 89 1983 Chevrolet C10903, 5,600# GVW V-8 pickup truck (odometer reading approx. 74,454 miles); Construction Services Dept. 106 1981 GMC J9C064, 54,000# GVW tandem tractor with Ram-E-Jec trailer, (odometer reading approx. 85,589 miles); Construction Services Dept. 113 1957 Dodge T245 4-Wheel drive crew carrier (odom- eter reading approx. 64,462); Erickson Station. 114 1985 Chevrolet CG21005, 6,600# GVW V-8 van type truck (odometer reading approx. 63,683 miles); Water Distribution Dept. 119 1983 Chevrolet CG21005, 6,600# GVW V-8 van type truck (odometer reading approx. 102, 145 miles); Garage Vehicle Pool. 16 February 27, 1990 ADMINISTRATIVE SERVICES (Continued) BWL # Description (Res. No. 90-2-4) 136 1980 Dodge D150, 5,400# GVW V-8 pickup truck (odometer reading approx. 80,852 miles); Garage Vehicle Pool. 137 1980 Dodge D150, 5,400# GVW V-8 pickup truck (odometer reading approx. 36,513 miles); Environmental Engineering Dept. 140 1981 Chevrolet CC10903, 5,600# GVW V-8 pickup truck (odometer reading approx. 59,568 miles); Line Construction Dept. 142 1981 Chevrolet CG11005, 6,600# GVW V-8 van type truck (odometer reading approx. 31 ,238 miles); Water Production Dept. 143 1981 Chevrolet CC30943, 10,500# GVW crew cab and chassis with service body (odometer reading approx. 31 ,326 miles); Production Maintenance Dept. 149 1983 Chevrolet C10903, 5,600# GVW V-8 pickup truck (odometer reading approx. 83,943 miles); Line Construction Dept. 323 1981 Oldsmobile G35 V-6 station wagon (odometer reading approx. 88,335 miles); Garage Vehicle Pool. 507 1968 Stahl 1284C utility trailer, 2-wheel; Line Construction Dept. 508 1980 Daves tilt deck trailer; Construction Ser- vices Dept. 514 1980 Daves tilt deck trailer; Construction Ser- vices Dept. 528 1986 Ditch Witch S2 lowboy trailer; Water Distri- bution Dept. 536 1966 BWL 2-wheel pole trailer; Line Construction Dept. 567 1939 Highway D 2-wheel cable trailer; Line Con- struction Dept. 594 1960 Michigan Bell 2-wheel utility trailer; Line Construction Dept. 704 1977 Warner Swasey LG16016TC 6,000# capacity fork truck (3, 149 hours); Stores Dept. February 27, 19W 17 ADMINISTRATIVE SERVICES (Continued) BWL # Description (Res. No. 90-2-4) 705 1950 Construction Machine 90M 6" centrifugal pump on trailer; Construction Services Dept. 732 1965 Army M105A2 cargo trailer; Electric Mainte- nance and Metering Dept. 733 1965 Ka-Mo A-75 horizontal earth boring machine; Water Distribution Dept. 757 1964 Unit crawler crane; Water Distribution Dept. 850 Clark Y150 15,000# capacity fork truck (6,336 hours); Stores Dept. 859 1980 John Deere 310A loader backhoe (4,265 hours); Water Distribution Dept. 860 1980 Case 580C tractor backhoe (2, 136 hours); Construction Services Dept. 862 1981 Ditch Witch R40 trencher (2, 147 hours); Water Distribution Dept. 871 1970 Gem mobile office trailer, 10' x 501 ; Project Engineering Dept. -------------------- Res. No. 90-2-5 Authorize award of three (3) year contract for Trimming of Trees and Related Work along Electric Lines Owned and Three-year tree Maintained by the Board of Water and Light to Asplundh Tree trlmdng contract Expert Company, Laingsburg, Michigan, in the amount of awarded to Asplundh $1 ,200,076.66, for the period of March 1, 1990 through Tree Expert Co. February 28, 1993. -------------------- The other bidders were Nelson Tree Service, Inc. , Dayton, Ohio ($1 ,340,788.80); Davey Tree Expert Co. , Kent, Ohio ($1 ,662,585.60); Townsend Tree Service Co. , Inc. , Muncie, Indiana ($1 ,715,812.80); and Asplundh Tree Expert Co. , Laingsburg, Michigan ($1 ,817,759. 15 alternate bid) . Smith Tree Service and N.G. Gilbert Corp. declined to bid. -------------------- 18 February 27, 1990 ENGINEERING Res. No. 90-2-6 It is recommended that a project in the amount of $150,000 to upgrade the opacity monitors and related data acquisi- $150,000 authorized tion (computers) systems at Electric and Steam Production as an addition to facilities be approved as an addition to the FY 190 capital FY'90 capital budget budget. to upgrade opacity -------------------- monitors and related data acquisition systems at Electric The opacity monitors and data acquisition at Eckert, and Steam F-Lect- Erickson, Moores Park and Ottawa, installed in 1982 are and Stearn ties stand-alone systems. In the event of computer breakdown, tioor malfunction, the data collected for that station will be lost and reported to the state and federal agencies as instrument out of service. -------------------- PENSION Res. No. 90-2-7 That Robert A. Peck, Senior Relief Operator at Eckert Station, be placed on a disability pension of $1 ,173.98 Disability pension per month effective March 1 , 1990. He has selected Option approval for V with the provision that after his death, if his wife, Robert A. Peck Josephine Peck, survives him she will receive $586.99 per month for the rest of her life. If his wife predeceases him, the pension amount of $1 , 173.98 will revert back to the regular pension amount of $1 ,326.95 for the rest of his life. Mr. Peck has worked for the BWL for 27.02 years and is 59 years of age. -------------------- Res. No. 90-2-8 That Erwin W. Harper, a Painter in Construction Services Department, be placed on an early reduced pension of Early reduced pen- $564.99 per month effective March 1 , 1990. Mr. Harper has sion approved for worked for the BWL for 15.04 years and is 55 year of age. Elwin W. Harper -------------------- This is a straight pension with no optional benefits for a a dependent. -------------------- Febniary 27, 1990 19 TREASURER/CONTROLLER Res. No. 90-2-9 That the following steam rate schedule (Rate No. 2 - Industrial Steam Service) be adopted effective April 1 , Industrial Steam 1990: Service Rate No. 2 approved, effective Availability - This rate is available to any customer en- 4-1-90 gaged in mining or manufacturing and receiving steam at any BWL plant wall at a minimum gauge pressure of 250 psi. Service will be provided upon customer entering into a steam supply contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on BWL facilities. Monthy Rate - Demand Charge: $0.80 per pound per hour (lb/hr) for all lb/hrs of contract demand $0.70 per pound per hour (lb/hr) for all lb/hrs exceeding contract demand Commodity Charge: $3.76 per thousand pounds (Mlb) Fuel Cost Adjustment - The fuel cost adjustment shall con- sist of an increase or decrease of 0. 16 ($0.0016) cents per thousand pounds of steam billed for each full 0. 1 ($0.001) cent or fraction thereof increase or decrease in the average delivered cost of fuel burned monthly above or below 178.70 ($1 .787) cents per million Btu's. [A fraction of 0.05 ($0.0005) cents or less will not be considered a full 0. 1 ($0.001) cent; a fraction of 0.06 ($0.0006) cents or greater will be considered a full 0. 1 ($0.001 ) cent]. The price per million Btu's for each billing month shall be the average delivered cost of fuel consumed during the preceding calendar month. Minimum Charge - Monthly Demand Charge above. Tax Adjustment - Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the BWL's property, or its operation, or the production and/or sale of steam, to offset any such cost and thereby prevent other customers from being com- pelled to share such local increases. Billing Demand - The billing demand is the maximum demand (lb/hrs) supplied during the 15 minute period of maximum use during the month, but not less than the contract demand. 20 February 27, 1990 TREASURER/CONTROLLER (Continued) (Res. No. 90-2-9) Delayed Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules and Regulations for Steam Service which are incorporated herein by this reference. -------------------- WATER Res. No. 90-2-10 That the Board agree to serve water to proposed Water Dis- trict No. 56, Delhi Township, as requested by resolution Approval of Lb hi of the Delhi Charter Township Board on April 18, 1989, and Township WaterIlis- that in accordance with the agreement between the Board and trict No. 56 - the Charter Township of Delhi dated August 15, 1972, Holbrook Hills covering the furnishing of a potable water supply in Delhi Subd., Lots Township, the Board advises officials of Delhi Township as 48-78 follows: 1 . The Board will accept Water District No. 56 estab- lished by Township resolution on April 18, 1989 and will provide a potable water supply to said district. 2. The Township will be required to make a $36,938.00 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement 56) covering the fur- nishing of a potable water supply in Water District No. 56. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $36,938.00 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement 56) to furnish a potable water supply in Water District No. 56. Febnkary 2%, IM 21 WATER (Continued) (Res. No. 90-2-10) The geographical area of Water District No. 56 is as follows: Holbrook Hills Phase 22 Subdivision - Lots 48 thru 78. To provide a potable water supply within the proposed new district requires the installation of 1,555 feet of water main at an estimated cost of $32,033.00 and three (3) fire hydrants at a cost of $4,905.00. The main extension will serve 31 residential customers. One-time connection fees will amount to $15,500.00. Estimated annual revenue is $7,595.00. Water mains to be installed in Summer of 1990 following the receipt of the Township's non-refundable contribution- in-aid of construction and the signing of the agreement. -------------------- Respectfull submitted, / Joseph Pandy, Jr. General Manager JP/bg Attachment 22 Reso' '.on No. 90-2-3 February 27, 19yU ADMINISTRATIVE Adopt the following Policy Regarding Workplace Fund Raising: 1 . The Board of Water and Light will permit one annual campaign allowing payroll deduction among employees at the workplace to Support outside charitable organizations. 2. The motivation in allowing the annual employee campaign is: a. To provide employees with information about current, local community needs, and the services available to address those needs. b. To provide an opportunity for employees to personally impact their local community through contributions of money and time. C. To enhance the quality of life for the community in which the Board of Water and Light operates, and our employees work and live. 3. This policy has been adopted with the realization that the annual employee campaign is not effectively accomplished without cost and interruption to the workplace. The objective of this policy is to minimize these costs and interruptions, while maximizing our charitable resources to impact the community in which we operate. We recognize that there may be a number of individual charities, and groups of charitable organizations, who wish to participate in the annual employee campaign. In order to minimize cost and interruption, we will maintain an administrative relationship with one organization. The following criteria outlines the basic requirements of that one organization: a. It provides for the participation of other charitable organi- zations based on: 1 . IRS determination as a non-profit, charitable agency; 2. These organizations being governed by a representative, voluntary Board of Directors; 3. Their ability and practice of directly benefiting the local community and its citizens; February 27, 1990 -2- 23 4. A policy of non-discrimination toward persons served, and persons employed by that organization; 5. Effective use of funds raised, and full disclosure of the same. b. It provides individual employees the opportunity to support the charity(ies) of their choice. C. It discloses all financial information, including fund raising costs, on a timely basis. d. It distributes funds which are designated; those funds not specifically designated by employees will be distributed in a reasonable manner. The process used for the distribution of funds not designated by employees to specific charitable organizations will: 1. Be based on local community needs, 2. Be communicated to employees, and, 3. Provide an opportunity for Board of Water and Light employees to be involved in that distribution process. e. It is a local organization, governed by a volunteer Board of Directors on which the Board of Water and Light employees have an opportunity to serve. f. It has the necessary resources, in place and committed, to assist in planning, conducting, reporting, recognizing and evaluating the annual employee campaign. g. It is licensed to solicit funds by the Attorney General of the State of Michigan. -------------------- Capital Area United Way has managed a community system enabling employers to hold one annual workplace campaign for more than 70 years. Today, with increasing frequency, employers are being approached by charities not currently participating in our community system who are asking for access to the employees and payroll deduction giving. -------------------- Recommended and Approved By: -i" Joseph andy, r. , General hafiager - Date Date Resolved by Board Action: February 27, 1990 24 February 27, 19�U BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolution 90-2-3 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-2-4 and 90-2-5 (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-2-6 (Engineering) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 90-2-7 and 90-2-8 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. By COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolution 90-2-9 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-2-10 (Water) of the General ?tanager's Recommendations be approved. Adopted unanimously. February 27, 19U 6 GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: TRIBUTE DINNER FOR COMMISSIONER BRUCE McCOMB. A dinner honoring Commissioner Bruce McComb will be held on March 27 at the Lansing Country Club, immediately following the regular Board meeting. COMMITTEE OF THE WHOLE MEETING - MARCH 13. The agenda topic for the March 13 Committee of the Whole meeting will be a presentation on assistance programs for low-income customers. REPORT ON FATAL ACCIDENT OF JUAN SALAZAR. Mr. Pandy reported on the fatal accident of BWL Relay Technician Juan Salazar, which occurred on February 23 shortly after 1:00 p.m. Mr. Salazar and two fellow employees were placing in service a pole-mounted oil switch, called a recloser. The employees were at the controls on the ground when the device exploded and struck Mr. Salazar. The other employees were not injured. Mr. Salazar is survived by his wife, Yvonne, who is expecting their first child. Mr. Pandy displayed graphics to detail the operating features of oil circuit reclosers and gave a quick overview of specifications for type WE reclosers. He reported that the recloser involved in the explosion was approximately 15 years old. Presently, six reclosers of the same vintage remain in service within the BWL system. A full investigation is under way. Once investigative details are complete, a full report of the incident will be made. FISCAL 1991 BUDGET FORECAST. With the local economy slowing down, a strong year is not being forecasted for the three utilities, based on a preliminary unit sales forecast for Fiscal 1991. Graphs depicting the last nine fiscal years were displayed comparing budgeted sales versus actual sales. Preliminary forecasts indicate decreases as follows: water (CCF) -3.35%, electric (MWH) -8.58%, and Steam (MLBS) -0.94%. COAL INVENTORY REACHES SIXTY-DAY TARGET. With the dispute between Pittson Coal and the United Mine Workers now resolved, Mr. Pandy recommended that the sixty day coal inventory be continued. If agreeable with the Commissioners, management will report to the Board only in the event the supply drops below the level of 54 days. There being no objection, Mr. Pandy's recommendation was considered approved. SHARE THE SUCCESS UPDATE. 3WL Share the Success (STS) performance improved again throughout January, bringing year-to-date performance totals to 320 points. Mr. Pandy handed out a memo written by Treasurer/Controller Dana Tousley, dated February 15, 1990, regarding the labor productivity index for Fiscal 1990. It has been found that the productivity index needs revision, to more accurately reflect the actual productivity of the labor force. A detailed presentation on this item will be made to the Board next month. 26 February 21, 19 1O CONTRACT NEGOTIATIONS WITH THE UNION TO COMMENCE SHORTLY. The union contract will be expiring July 1, 1990. Management is preparing for upcoming contract negotiations with the Union. ECKERT #5 TURBINE OVERHAUL UPDATE. The #5 turbine overhaul at Eckert Station is near completion. A new retrofit approach has been initiated; this includes to mill out the diaphragm support and leveling blocks, drill and tap holes, make a spacer and use shims to achieve the proper elevations for the diaphragm elevations. This new method is expected to save the utility approximately $7,700 for the #5 turbine retrofit, alone. This new retrofit method will be utilized for future overhauls. _DAVE_EMMONS QUOTED IN ELECTRIC WORLD MAGAZINE. Mr. Pandy quoted Line Construction Superintendent Dave Emmons' positive remarks from the February 1990 issue of ELECTRIC WORLD, which featured an article on the national linemen's rodeos. The BWL also received recognition for winning both the rope splicing and the hot-stick insulator change-out events. ROY PEFFLEY PROFILED IN DEED DIGEST. The APPA Winter 1990 DEED DIGEST profiled Electric Utility Director Roy Peffley's interesting 35-year career in the electric utility business, as well as his love of sports. SUMMARY OF PLANT TOURS. In 1989, 49 educational tours were conducted-- plus MMEr? and MPPA tours--for a total of 881 persons, as compared to 697 persons in 1988. SAFETY UPDATE. A copy of the February 1990 BWL SAFETY UPDATE newsletter was handed out. Mr. Pandy noted that accidents for Fiscal Year-to-Date (January, 1990) showed an improvement as compared to the same time last year. Management continues to stress safety. COMMUNITY SERVICE NOMINATION SUBMITTED TO THE VOLUNTARY ACTION CENTER. The BWL's was notified that it will not receive recognition for the APPA Community Service Award. APPA chose four utilities who had developed new, unique programs to fulfill a specific community need. Mr. Pandy noted, however, that he has submitted a nomination on behalf of the BWL for the Tri-County Volunteer Recognition Awards Program, administered by the Voluntary Action Center of Greater Lansing. BWL RECEIVES THE CAPITAL AREA UNITED WAY PLATINUM AWARD. The Capital Area United Way has presented the employees of the BWL with the Platinum Aware: in recognition of Gold Award status for five consecutive years. This is the first time this award has been given. A Gold Award indicates that at least 85 percent of the employees gave to United Way at an average of $50 per employee. Mr. Pandy pointed out that the BWL surpassed those averages with 87 percent participation at more Than $110 per employee. The long-term goal of the BWL is to receive the Diamond Award, in recognition of Gold Award status for ten consecutive years. UPDATE ON DELHI TOWNSHIP ISSUES RE: WATER CHARGES. Mr. Pandy handed out a letter from Delhi Township Manager, Robert Homan, dated February 23, 1990 for review. Two principal issues raised by the township are: 27 February 27, 1990 1) Implementation of a 25 cent per month per Delhi customer charge for the purpose of generating capital to be used for system improvements; and 2) The assertion by Delhi Township that the BWL's water distribution system in Delhi Township should be treated in the same manner as the system within the City of Lansing. This letter officially documents the township's position. Staff will be meeting with township officials and will be preparing a response shortly. On a related note, Mr. Pandy reported that staff is continuing to meet with Meridian and Delta Townships regarding possible water interconnects with the BWL--Meridian Township seems to be the most promising at this point. STATUS OF M.S.U. POWER PLANT FINANCING STUDY. A draft copy of the Power Plant Financing Study for Michigan State University has been received for review. The study was conducted by Giffels Hoyem Basso, Inc. , commissioned by the State of Michigan Department of Management and Budget. Mr. Pandy expressed concerns with some of the consultant's conclusions. A meeting between the Lansing Regional Chamber of Commerce and MSU officials is planned for March 1 to discuss the findings of the Stu c:y. VIDEO ON PUBLIC POWER FINANCING. A ten minute video was shown, titled "The Power of Bonds," produced by the American Public Power Association Finance Network and Sault River Project. REMARKS BY BOARD COMMISSIONERS Commissioner Hassler urged that the following summaries be continued annually: - BWL - 1989 in Review, which highlights the BWL's activities during the calendar. - Statistical calendar year comparisons of sales, expenses and income for each of the utilities. BY COMMISSIONER JESSOP SECONDED BY COMMISSIONER BELEN That the absences of Commissioners Evans, McComb and Williams be excused. Adopted unanimously. On motion of Commissioner Strolle, the oard adjourned at 6:29 p.m. ary . ova, Secre t a r y Filed: March 1989 James--D. Blair, City Clerk BOARD OF WATER & LIGHT FEBRARY ZV, 1990 28 March 27, 1990 Office, Board of Water and Light Tuesday, March 27, 1990 Lansing, Michigan The Board of Commissioners met in regular session at 5:30 P.M. The meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, Strolle, Williams, and Chairman Hassler --6 Absent: Commissioners Sebolt --1 (Vacancy due to the resignation of Bruce E. McComb as of March 15, 1990) Quote The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS Approval of That minutes of regular session of February 27, 1990 be approved Minutes as mailed. Adopted unanimously. Public C,cmnents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. Thanas L. Washington Mr. Thomas L. Washington, Executive Director of the Michigan United speaks re: interference Conservation uiilitiesUat)MUCC�seproposednnewhofficerbuildingference oate110t112aE. of electrical under— underground ground utilities at Michigan (formerly known as the Jury Rowe building) . Mr. Washington Michigan United Corr ednon1MUCCfshis opinion property intaatimelyure to fashionacate an will electrical vault nervation Club located oc locat at assessment or rent to the BWL to cover delayed construction costs. Jack Chamberlain--General Supervisorof the tEngineeriwo ng fDevelopment Section, Electrical Engineering--presented or permanent relocation, and one option for temporary relocation of the high voltage electric duct line in order to meet MUCC's construction schedule. In providing a temporary relocation of the primary service to the Manufacturers Bank, the conflict with the foundation construction of the MUCC office building could be relieved. Following discussion, the following conditions were agreed upon: 1. BWL staff will investigate the viability of reinstalling a permanent high voltage electrical duct line (which feeds the Manufacturers Bank) beneath the grade elevation of the MUCC office building basement structure. March 27, 1990 29 2. BWL staff is to draft a legal description of an easement to be granted to the BWL by MUCC. The draft is to be transmitted to MUCC for approval. 3. MUCC is to provide the BWL with the following documents: a. Set of building plans b. Project schedule C. MUCC Board resolution authorizing the granting of the necessary easement to accomplish item #1 above. BWL staff and Mr. Washington agreed to work cooperatively toward achieving the desired goal of both parties. COMMUNICATIONS The following communications were received: Letter of thanks from 1. Thank you note from Yvonne C. Salazar for flowers sent to Juan Yvonne Salazar Salazar. Placed on file. Letter from Saundra 2. Letter from Saundra Hagerman regarding the February 28, 1990 Hagerman re: evacua- evacuation of the BWL Main Office Building. tion of BWL, building Staff responses, dated March 15 and 16, were acknowledged. Placed on file. Letter from Michigan 3. Letter from M. Carol Bambery, Staff Attorney, of the Michigan United Conservation United Conservation Clubs regarding relocation of new electrical Club re: relocation service under the Washington Mall. of electric service Referred to staff (see Public Comments above) . Resolution 90-3-1 COMMITTEE OF THE WHOLE REPORT Res. 90-3-1 The Committee of the Whole met with staff on March 13, 1990 in response to Camiittee of the Whole the November 28, 1989 Board Meeting regarding water rate approval and Report RE: assistance concerns expressed regarding assistance for low-income customers. The for low-ircane Commissioners requested further analysis of what the BWL can do to assist customers low-income customers. Present were Commissioners Belen, Evans, Hassler, Jessop, McComb, Strolle, and Williams (Chair Pro Tem) . Absent was Commissioner Sebolt. Staff's presentation was developed by a committee of Neal Housler, Dana Tousley, John Strickler, Terry Graham, Ken Turner, Hector Valdez, and Mark Taylor. The task of the staff committee was to review existing low-income programs and to present ideas for additional programs to be developed in the future. 30 March 27, 1990 The latter involved presenting the following eight possible new ideas: 1. Water and electric low-income/lifeline rates connected to Department of Social Service customer identification. 2. Flexible due dates. 3. Specialized credit and collections services; budget specific funds to allow special adjustments for hardship cases (i.e., waive reconnect fee, waive deposit, waive delayed payment charge (DPC) . 4. Water and Electric Conservation Program for low- income/high user customer. 5. Development of an on-line computer connection with Social Services to expedite vendor and emergency payment programs. 6. Development of a GATEKEEPER program throughout the BWL service area. 7. Availability of a Levelized Billing Program for Water and Electric Residential Customers. (This program is now available only to electric heat rate customers.) 8. Expansion of the Energy Bank Program to include Water bill payment assistance. The Commissioners were advised that staff was unanimous in studying all but two of the above suggestions for future implementation. The implementation of a low-income/lifeline rate at this time is not recommended by staff. The suggestion of waiving reconnect fees (#3 above) for low-income customers was tabled for now. The remaining six programs will continue to be developed for implementation. The results of this effort will be reported back to the Board prior to June 1990. The Committee of the Whole concurs with staff's recommendations. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That the Committee of the Whole Report (Resolution 90-3-1) be approved as presented. Adopted unanimously. March 27, 1990 31 March 27, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-3-2 That the Board of Commissioners advise Lansing City Council it has received a proprosal from Deloitte and Touche (Formerly Touche Ross & Co.). The proposal quotes $25,500 (maximum fee) for audits of the Board of Water and Light and its Pension Fund for the fiscal year ending June 30, 1990. This proposal was requested in accordance with the City engaging independent auditors for the fiscal years ended June 30, 1989-1993. Further, that the Board of Commissioners advise Lansing City Council that the cost included in the Deloitte and Touche proposal dated March 12, 1990, appears reasonable and recommends the firm be obtained to conduct these audits according to their proposal. -------------------- Res. No. 90-3-3 The Share the Success Employee Performance Measures Committee recommends that the Productivity Measure, as Share the Success included in the 1989-90 Share the Success Program, be Productivity measure deleted and the 20 points allocated to this measure be deleted and the 20 reassigned to the Operating Cost per Unit Sold Measures. points assigned ` to the measure re- -------------------- distributed to the cost per unit sold The base productivity index was developed as a new measure for three utilities for 1989/90 and has been determined to be in error and not a representative measure for productivity. (See Roger OphaugIs memo of 3/15/90 attached). (See Page 37) -------------------- 32 March 27, 1990 ADMINISTRATIVE (Continued) Res. No. 90-3-4 The Share the Success Employee Performance Measures Committee recommends that the formulas and the base, goals Share the Success and ranges for the EEO/AAP Measures by modified to result fonmila for calcu- in equal weight being given to both Non-Bargaining Unit and lating EED/AAP Bargaining Unit female and minority hires and promotions. measures modified -------------------- By removing the one quarter weighting factor that existed for Bargaining Unit female and minority promotions, this measure will be improved. (See Roger Ophaug's memo of 3/15/90 attached). (See page 38) -------------------- ADMINISTRATIVE SERVICES Res. No. 90-3-5 Authorize the sale of 282 obsolete transformers to T & R Electric Supply Company, Inc., Coleman, South Dakota, in The sale of 282 the amount of $26,714. obsolete trans- formers to T & R Bids were also requested from the following vendors, who Electric Supply Co. declined to bid: Crawford Electric, Romeo, Michigan, approved Dowzer Electric, Mt. Vernon, Illinois, Hevi-Duty Electric, Goldsboro, North Carolina, Jerry's Electric, Coleman, South Dakota, and Omega Power, Salt Lake City, Utah. -------------------- An itemized list of the obsolete transformers to be sold is on file with the Secretary of the Board. -------------------- COMMUNICATIONS/ MARKETING Res. No. 90-3-6 Authorize $25,850 to Market Strategies, 4000 Town Center, Suite 380, Southfield, MI to conduct a customer attitude Approval to retain survey. The survey will be used to determine the Market Strategies preception of residential customers toward the BWL and its for the customer services. attitude survey -------------------- March 27, 19% 33 COMMUNICATIONS/ MARKETING (Continued) (Res. No. 90-3-6) The BWL has commissioned an annual customer attitude survey since 1986. For the first four years the survey was conducted by Market Opinion Research (MOR). This year MOR, Market Strategies, and Nordhaus Research, Inc. were invited to submit proposals. Bids ranged from a low of $25,000 submitted by Nordhaus, to a high of $31,500 submitted by MOR for Phase I. Market Strategies submitted the best evaluated proposal based on their large data base of similar survey results conducted for other electric utilities and the familiarity of Market Strategy's staff with BWL operations and needs. Results of the survey will be used to evaluate changes in customer perceptions about the BWL, its rates and the quality of services provided. It will also be used to measure objectives established by Communications and other departments, and to predict customer acceptance of potential new products or services. Two Share the Success performance measures are also tied to the customer attitude survey. -------------------- ENGINEERING PLANNING Res. No. 90-3-7 It is recommended that an Industrial Demand Side Management (DSM) Rate Study Project be authorized. Industrial Demand Side Management (a) A purchase order be issued to Synergic Resources Cor- Rate Study mentauth poration (SRC), Bala Cynwyd, PA, in the amount not to -Rate Resource exceed $36,000, to provide software and assistance in Synevaluation of DSM, marketing and rate alternative Corporation and Management Re- evaluations. sources Inter- national to (b) A purchase order be issued to Management Resources provide con- International, Reading, PA, to retain their services sulting services to perform the rate analysis and develop rates, including labor, expenses and travel not to exceed $15,000. -------------------- This project is being recommended to respond to the request from the Industrial Council and from industrial customers regarding availability of off peak, interruptible and other DSM rates. (A memo outlining the Guidelines and Scope of this study is attached). (See Page 39) -------------------- 34 March 27, 1990 HUMAN RESOURCES Res. No. 90-3-8 That Mr. Delbert Cater, Maintenance Mechanic Supervisor, and Mr. Carlie Scott, a Maintenance Mechanic, be awarded a Suggestion award to total of $346. 16 (to be divided equally) for their Delbert Cater suggestion, 1990-20, to facilitate removal of the grates from the boiler at Moores Park. This method will save the BWL 80 hours per job or a total of 160 hours. -------------------- It is estimated that the BWL will save $2,720.00 the first year by using this suggestion. -------------------- Res. No. 90-3-9 That Mr. Rudy Fernandez, a Maintenance Mechanic, be awarded $178.36 for his suggestion, 1989-224, of a method to remove Suggestion award to exhaust fans while using only one person. Currently, this Rudy Fernandez operation requires the use of three people and at least three hours of time. This method would save approximately 64 hours of time. -------------------- It is estimated that the BWL will save $1 ,088.00 the first year by implementing this suggestion. -------------------- Res. No. 90-3-10 That Mr. Toney W. Hargrove, a Maintenance Mechanic Super- visor, be awarded $193.40 for his suggestion, 1990-46, to Suggestion award to fabricate adjustable scaffolding supports that can be Toney W. Hargrove marked and stored in a box for later use. This would save money and time because the supports could be reused and in turn, it would facilitate maintenance of the boilers. -------------------- It is estimated the BWL will save $1 ,224.00 the first year by using this procedure. -------------------- March 27, 1990 35 TREASURER/CONTROLLER Res. No. 90-3-11 Authorize purchasing the following insurance coverage: Public Officials and Public Officials and Employees Liability Insurance from Fmployees Liability the Hall and Kennedy, Inc. Agency, representing the Inter- Insurance resolution national Surplus Lines Insurance Company, for an annual TAT premium of $86,943.78 (including 2% premium tax). This would provide a limit of liability of $5 million and a retention of $50,000 per loss or pay insured individual. -------------------- This selection is viewed as the best value. The BWL's expiring coverage is with the Lyman & Sheets Agency representing the Lexington Insurance Company for $5 million and similar terms and conditions at an annual premium of $91 ,774.50, including premium tax. The BWL also received bids from the Lansing Insurance Agency for virtually identical coverage and cost from the International Surplus Lines Insurance Company, but without an installment option, and from the Lyman and Sheets Agency for the Lexington Insurance Company for $5 million for $91 ,290.00, including premium tax. -------------------- WATER Res. No. 90-3-12 That the Board agree to serve water to proposed Water District No. 64, Delhi Township, as requested by resolu- Approval of DaUd tion of the Delhi Charter Township Board on September 19, Township Water 1989, and that in accordance with the agreement between District No. 64 the Board and the Charter Township of Delhi dated August Cardinal Estates 15, 1972, covering the furnishing of a potable water supply Subd., Lots 1-30 in Delhi Township, the Board advises officials of Delhi Township as follows: 1. The Board will accept Water District No. 64 estab- lished by Township resolution on September 19, 1989, and will provide a potable water supply to said district. 2. The Township will be required to make a $68,610.25 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 36 March 27, 1990 WATER (Continued) (Res. No. 90-3-12) 3. The Board and the Township are to enter into a written agreement (Supplement LXIV) covering the furnishing of a potable water supply in Water District No. 64. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $68,610.25 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXIV) to furnish a potable water supply in Water District No. 64. The geographical area of Water District No. 64 is as follows: Cardinal Estates Subdivision Phase I Lots 1 thru 30 To provide a potable water supply within the proposed new district requires the installation of 2,840 feet of water main at an estimated cost of $60,435.25 and five (5) fire hydrants at a cost of $8,175.00. The main extension will serve 30 residential customers. One-time connection fees and meter set charges will amount to $15,000.00. Estimated annual revenue is $9,000.00. Water mains to be installed in the summer of 1990 follow- ing the receipt of the Township's non-refundableicontribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- Respectfull submitted, J General Manager JP/bg Re: Resolution No. 90-3-3 37 Nbrch 27, 1990 BOARD OF WATER AND LIGHT MEMO March 15, 1990 To: J. D. Wolfe, Chairperson, STS Management Committee From: R. A. Ophaug, Advisor STS Employee Performance Measures Committee Re: Productivity Measure, STS Program The Share-The-Success Employee Performance Measures Committee recommends that the Productivity Measure as included in the 1989/90 Share the Success Program be deleted and the 20 points allocated to this measure be reassigned to the Operating cost per Unit Sold Measures as follows: POINTS MEASURES REASSIGNED NEW TOTAL Electric Cost per Unit Sold + 25 15 50 Water Cost per Unit Sold + 5 25 Steam Cost per Unit Sold The reasons for this request are: The base productivity index was developed as a new measure for 1989/90 and has been determined to be in error and not a representative measure for productivity for the following reasons: 1. The index was based on 26 pay periods instead of the 27 which will occur in FY 89/90. 2. Sales for resale were included in the base index and any change from budget has a major impact on the index. 3. Water and steam units sold are a small percentage of the total units sold. Water and steam units sold have no significant impact on the index since all units sold were of equal value. 4. The index equated a unit sold and an hour paid equally and there is no linear relationship in terms of cost/benefit. Attempts to revise the index and to develop an alternate measure this year have not been successful. The Operating Cost per Unit Sold Measures are Productivity Measures therefore, reassignment of the points to these measures still maintains the same percentage of the total Share-The-Success points allocated to productivity. Rao/ps 3-90-14 cc: J. Pandy f i:.e 38 Re: Resolution No. 90-3-4 March 27, 1990 BOARD OF WATER AND LIGHT MEMO March 15, 1990 To: J. D. Wolfe, Chairperson, STS Management Committee From: R. A. Ophaug, Advisor STS Employee Performance Measures Committee -f"_ Re: EEO/AAP Measures, STS Program The Share-The-Success Employee Performance Measures Committee recommends that the formulas and the base, goals and ranges for the EEO/RAP Measures be modified as follows: I. FEMALES HIRED AND PROMOTED = Total females hired and promoted in both NBU and BU Total of all hires and promotions in the NBU and BU BASE GOAL RANGE 17.36 13.68 (17.36% 17.36-18.02% 18.03-18.68% >18.68% % % 0 points 4 points 6 points _ 8 points II. MINORITIES HIRED AND PROMOTED % = Totalmi?orities hired and promoted in NBU and BU Total of all hires and promotion in the NBU and BU BASE GOAT, RANGE 17.38 18.60 (17.38% 17.38-1_7.98%5 17.99-18.60% >L8.60% 0 points 4 points 6 points 8 points NBU = Non Bargaining Unit BU = Bargaining Unit The revisions to the EEO%AAP Measures wi=; result in equal weight being given to both NBU and BU female and minority ;tires and promotions by removing the one quarter weightir_c- factor that existed for BU female and minority Promotions. The revised bases, goals and ranaes were developed in accordance with the guidelines for these measures. RAO/ps 3-90 i cc: ,;. Pandv Re Resolution No. 90-3-7 March 27, 1990 39 INDUSTRIAL DSM RATE STUDY OBJECTIVE: To develop proposed DSM rates for BWL industrial customers. GUIDELINES: 1. Rates must reflect short-term and long-term supply circumstances, including costs of the BWL. 2. Rate structure and prices must relate to customer circumstances, if possible. 3. MPPA Power Pool will be considered as it relates to opportunity costs for excess power and energy. The Power Pool will be assumed to be perpetual. 4. Proposed rates will be designed to be revenue neutral. SCOPE: 1. Assist the BWL in evaluating supply characteristics, including cost, in conjunction with changes in consumer demand. 2. Assist the BWL in evaluating the potential load impacts of TOU rates, including specifically Federal Drop Forge and BOC. 3. Develop two or three alternative rate options for implementing TOU rates for industrial customers. 4. Estimate the impact of each TOU option on customer loads and bills, and on BWL costs and revenue. 5. Prepare a report describing work performed and rate options developed. Recommend special course of action. 6. Assist BWL in developing full tariff language and any necessary rules and regulations related to developed rate option. 40 March 27, 1990 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-3-2, 90-3-3, and 90-3-4 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolution 90-3-5 (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-3-6 (Communications/Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 90-3-7 (Engineering Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 90-3-8, 90-3-9, and 90-3-10 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-3-11 (Treasurer/Controller) of the General Manager's Recommendations be approved. General Manager Pandy referred to a proposed substitute resolution to replace Resolution 90-3-11. The proposed substitute resolution recommended that the Public Officials and Employees Liability Insurance be awarded to the Lansing Insurance Agency, representing the International Surplus Lines Insurance Company for an annual premium of $86,943.78 (including 2% premium Tax) . This would provide a limit of March 27, 1990 41 liability of $5 million and a retention of $50,000.00 per loss or per insured individual. Mr. Pandy noted that the two bids (Resolution 90-3-11 and the substitute resolution) were substantially the same. The only materially distinguishing feature was Hall and Kennedy, Inc. 's offer to provide 90- day payment terms. It has been estimated that this improved the financial value by $1,188. Lansing Insurance Agency has suggested that since these terms cannot and will not be part of the policy, this would be impermissible--the payment provision would not be part of the policy. Commissioner Jessop expressed concern with the selection of the substitute bid. Commissioner Williams suggested establishing guidelines to address tie bids in the future. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER JESSOP That the motion to approve Resolution 90-3-11 be withdrawn. Adopted unanimously. BWL Risk Manager Jerry Blanchard advised that the BWL's current Public Officials and Employees Liability Insurance coverage, through Lyman & Sheets Agency, was scheduled to expire on March 28, 1990, at 12:01 a.m. Mike Sheets of Lyman Sheets Agency was present and offered to request an extension of the current liability coverage from the underwriters. He left the Board Room to make a telephone call to New York. After 15 minutes, Mr. Sheets returned to the meeting and reported that a 30-day extension, beyond March 27, 1990, will be provided by the current insurer. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN That Resolution 90-3-11 be tabled until the next regular Board meeting scheduled for April 24, 1990. The 30-day extension of Public Officials and Employees Liability Insurance coverage from the Lyman & Sheets Agency will allow staff additional time to evaluate the options available. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-3-12 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN 42 March 27, 1990 Resolution No. 90-3-13 RESOLUTION OF SPECIAL TRIBUTE TO BRUCE E. McCOMB WHEREAS, Bruce E. McComb has served the City of Lansing with distinction as Commissioner of the Board of Water and Light since May 17, 1982, and WHEREAS, Bruce McComb is moving from the City and has resigned as Commissioner from the Board of Water and Light as of March 15, 1990, and WHEREAS, while a member of the Board, he willingly and untiringly served on the Personnel Committee and other special committees of the Board; namely, Strategic Planning and the Search and Select Committee established for the selection of a new General Manager, all the while taking a deep interest in all the business of the Board with a quick grasp of the problems involved, and WHEREAS, it is a special privilege to extend tribute and commendation to Bruce McComb who gave freely and ably of his time and talents to the betterment of the Board of Water and Light, without monetary remuneration, NOW, THEREFORE, BE IT RESOLVED, That the Board of Commissioners expresses to Bruce E. McComb its appreciation for his services on this Board. RESOLVED FURTHER, That this resolution be inscribed on the pages of the Minutes and a copy be forwarded to Mr. McComb as evidence of our highest esteem. Adopted by the following vote: Unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: DELTA TOWNSHIP PRESENTATION ON WATER REGIONALIZATION. The water regionalization concept was well received by the Delta Township Board of Trustees on March 19. However, this issue is still a political question, with at least two of the Township Trustees preferring a new Township treatment plant. Mr. Pandy mentioned that the fluoridation issue will have to be revisited if the BWL interconnects with Delta Township, as their voters by a less than 10% margin, disapproved fluoridation in 1974. WATER REGIONALIZATION STUDY. The Tri-County Water Regionalization Task Force received bids, relative to the water regionalization study, on March 27, 1990 from (1) Black & Veatch in conjunction with Fishbeck, Thompson, Carr & Huber and (2) Burns & McDonnell with the Snell Environmental Group. A third firm declined to bid. A review of the bids will be conducted in April by a technical committee of the Task March 27, 1990 43 Force prior to selection of either proposal. The BWL will be responsible for 46 percent (estimated at $50,000) of total study costs. Mr. Pandy noted that the scope of the study has been expanded in order to complete the bulk of the project at once rather than studying the engineering, economics, and legal aspects separately. MERIDIAN TOWNSHIP INTERTIE. The BWL is currently involved in negotiations with Meridian Township for a water intertie, using the cost of service methodology. A graph depicting cost curves for the intertie was shown comparing unit price vs. firm capacity. BUDGET ANALYSIS. A brief analysis of the BWL's Fiscal 1990 financial condition through February, 1990 was presented. All unit sales were reported to be below budget as follows: Unit Sales Below Budget Water (CCF) -8.9`k Electric (MWH) -9.6% Steam (MLB) -7.5% As a consequence, gross revenues are at -6.8% below budget. On the expense side, all divisions are below budget for a total of -7.2%. Net income fell slightly for a total of -4.2% below budget. Water sales are down in comparison to higher sales the previous year due to the dry, hot season. Electric sales are down primarily as the result of curtailed export sales due to the coal strike. Budget projections for the next fiscal year indicate decreases for the three utilities. Mr. Pandy indicated that commercial sales are growing, residential sales are diminishing, and industrial sales are flattening to diminishing. COPPER PRICES RISING. According to a recent Wall Street Journal article, copper prices have jumped by 18% to more than $1.25 a pound from about $1.07 at the start of the year. SHARE THE SUCCESS. The Brush Electric System Operating Center (BESOC) operators have been named department of the month for February for their performance in maintaining proper system voltage and reactive power flow on the BWL tie line with Consumers Power Co. (CPCo) . For the second year in a row the BWL has regulated its Var supply better than any other municipal or co-op system interconnected with CPCo. In 1986, the BWL paid CPCo $3,660 for var's. Over the past two years, the BWL has not had to pay anything. SAFETY UPDATE. A copy of the March, 1990 BWL Safety Update was handed out. Safety statistics through February 1990 are improved as compared to the same period last year. Investigation is continuing on the fatality of Juan B. Salazar. A comprehensive report will be made to the Commissioners once the investigation is completed. MUNICIPALS/COOPERATIVES GROUP (MCG) INTERVENTION BEFORE F.E.R.C. A brief update was provided on the status of the MCG intervention at FERC involving the following: 44 March 27, 1990 1. Consumers Power Co. 's request for approval to sell its Palisades Nuclear Plant to Palisades Generating Company, an independent power producer jointly owned by CPCo, Bechtel and others. MCG is opposed on the grounds that this is an attempt by CPCo to remove Palisades from rate base regulation. 2. Midland Cogeneration Venture's (MCV) request of FERC for recertification as a Qualifying Facility under PURPA. MCG opposes recertification on several grounds. Mr. Pandy indicated that a written report will be sent to the Commissioners as an update on activities that have taken place on this matter. (Commissioner Evans left the meeting at 6:45 p.m.) PENSION FUND INVESTMENT STATUS. A brief update on the BWL Pension Fund assets was provided. REMARKS BY BOARD COMMISSIONERS Commissioner Williams spoke on the Final Report of Giffels, Hoyem, Basso, (GHB) Inc.--Power Plant Financing Study--dated March 9, 1990, relative to the Michigan State University Power Plant Study. He expressed concern that the study focused on various financing analyses. Commissioner Williams stated that BWL staff invested a great deal of time preparing a power supply proposal, which the consultants have not addressed. He indicated that the BWL deserves an explanation from GHB. General Manager Pandy indicated that staff will be meeting with MSU officials to discuss the study and the BWL's proposal. Commissioner Hassler commended staff for the informative articles in the January/February, 1990, issue of Watts and Drops. He noted that the feature story on strategic planning was especially enlightening and encouraged the Commissioners and employees to take time to read it. C BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That the absence of Commissioner Sebolt be excused. Adopted unanimously. On motion of Commissioner Strolle, the Board adjourned at 6:57 p.m. A Mary E. t 6va, Secretary Filed: March 30, 1990 James D. Blair, City Clerk Tti b Wd 0C 061 ,D April 24, 1990 45 Office, Board of Water and Light Lansing, Michigan Tuesday, April 24, 1990 The Board of Commissioners met in regular session at 5:30 p.m. The meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, Sebolt, Strolle, Williams, and Chairman Hassler --7 Absent: None (Vacancy due to the resignation of Bruce E. McComb as of March 15, 1990) QuorLffn The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Approval of That minutes of regular session of March 27, 1990 be approved as Minutes mailed. Adopted unanimously. Public CbmTents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. COMMUNICATIONS Letter from A letter of thanks was received from former Commissioner Bruce E. McComb Bruce E. McComb for the recognition dinner hosted by the Board in his honor. Placed on file. 07 �d 93 �d� os :A 46 ' April 24, 1990 PERSONNEL COMMITTEE REPORT April 24, 1990 Board of Commissioners Board of Water and Light Personnel Car nttee The Personnel Committee met on April 23, 1990 to review the comments of Report RE: Proposed special counsel on the proposed General Manager's employment contract. Employment Contract Eor General Manager Committee members present were Commissioners Jessop (Chair) , Hassler, and Strolle. Absent was Commissioner Sebolt. The members of the Personnel Committee and the General Manager discussed the changes to the proposed employment contract suggested by the Board's special counsel, William Parsley. Following discussion, it was the Committee's desire to schedule a special meeting of the Board in the near future to discuss final revisions to the proposed agreement, which is to take effect July 1, 1990. Respectfully submitted, E. Lane Jessop, Chairman Personnel Committee BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT That the Personnel Committee Report be approved as presented. Adopted unanimously. April 24, 1990 47 April 24, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-4-1 That the BWL enter into a contract with MPPA by executing the Power Pool Power Supply and Capacity Purchase Agree- Authorization to ment which will create an eight member MPPA Power Pool. enter into a con- The essential provisions of this Agreement are: tract with MTPA for Power Pool Supply 1 . The Power Pool will be governed by a Power Pool and Capacity Purchase Project Committee on which BWL has a 50% weighted Agreanent vote. 2. The term is for ten years beginning 1/1/91 and ending 12/31/2000. 3. The surplus capacity of all parties is dedicated to the Pool and all parties must buy their deficiency from the Pool at prices specified through 1996 and at market prices to be determined in 1997 through 2000. 4. All eight members (Charlevoix, Grand Haven, Harbor Springs, Lansing, Lowell, Petoskey, Traverse City and Zeeland) must sign before the Agreement takes effect. -------------------- The MPPA Power Pool is expected to provide significant economic benefit to BWL by providing an assured market for its surplus capacity and energy at favorable prices. -------------------- 48 ' April 24, 19% WATER Res. No. 90-4-2 That the Board agree to serve water to proposed Water District No. 65, Delhi Township, as requested by resolution Approval of Delhi of the Delhi Charter Township Board on April 17, 1990, and Township Water that in accordance with the agreement between the Board and District No. 65 - the Charter Township of Delhi dated August 15, 1972, cover- Loch Woode Sub- ing the furnishing of a potable water supply in Delhi Town- division-lots 1-43 ship, the Board advise officials of Delhi Township as follows: 1 . The Board will accept Water District No. 65 estab- lished by Township resolution on April 17, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $65,752.00 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LXV) covering the furnishing of a potable water supply in Water District No. 65. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $65,752.00 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXV) to furnish a potable water supply in Water District No. 65. The geographical area of Water District No. 65 is as follows: Loch Woode Subdivision Phase I - Lots 1 thru 43 To provide a potable water supply within the proposed new district requires the installation of 2,795 feet of water at an estimated cost of $57, 577.00, and five (5) fire hydrants at a cost of $8, 175.00. The main extension will serve forty three (43) residential customers. One-time connection fees will amount to $21 ,500.00. Estimated annual revenue is $12,900.00. Water main to be installed in Summer/Fall of 1990 follow- ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- pril 24, 1M 49 WATER (Continued) Res. No. 90-4-3 That the Board agree to serve water to the proposed Water District No. 2, Watertown Township, as requested by Approval of Water- Resolution of the Watertown Township Board on February 19, town Township Water 1990, and that in accordance with the agreement between the District No. 2 to Board and the Charter Township of Watertown dated November serve portions of 25, 1986, covering the furnishing of a potable water supply Grove Rd., State in Watertown Township, the Board advises officials of Rd, and Felton Rd. Watertown Township as follows: 1 . The Board will accept Water Disrict No. 2 established by Township resolution on February 19, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $118, 178.75 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement II) covering the furnishing of a potable water supply in Water District No. 2. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $118, 178.75 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement II) to furnish a potable water supply in Water District No. 2. The geographical area of Water District No. 2 is as follows: Grove Road: Grand River northerly to State Road State Road: Grove Road easterly to Felton Road Felton Road: State Road southerly to existing To provide a potable water supply within the proposed new district requires installation of 3,625 feet of 12-inch water main at $113,607.50 and 750 feet of 8-inch water main at $17,767. 50 for a total of $4, 375 feet of water main at an estimated cost of $131 ,375.00 and nine (9) fire hydrants at a cost of $14,535 .00. 50 ' April 24, 1990 WATER (Continued) (Res. No. 90-4-3) The main extension will serve four (4) residential and four (4) commerical customers. One-time connection fees will amount to $8,800.00 Estimated annual revenue is $4,800.00. Water mains to be installed in the summer of 1990 following the receipt of the Township's non-refundable contribution- in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, Joseph Pandy, Jr. General Manager JP/bg April 24, 19% 51 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-4-1 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-4-2 and 90-4-3 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. UNFINISHED BUSINESS BY COMMISSIONER WILLIAMS SECONDED BY COMMISSIONER JESSOP Public Officials RESOLVED, That Resolution 90-3-11, tabled at the March 27, and Employees Lia- 1990 regular meeting, be approved as initially introduced. bility Insurance The resolution in its entirety is presented below: awarded to Hall and Kennedy, Inc. Authorize purchasing the following insurance coverage: Agency representing the International Public Officials and Employees Liability Insurance from the Surplus Lines Hall and Kennedy, Inc. agency representing the International Insurance Company Surplus Lines Insurance Company for an annual premium of $86,943.78 (including 2 percent premium tax) . This would provide a limit of liability of $5 million and a retention of $50,000 per loss or per insured individual. ---------------- This selection is viewed as the best value. The BWL's expiring coverage is with the Lyman & Sheets Agency representing the Lexington Insurance Company for $5 million and similar terms and conditions at an annual premium of $91,774.50 including premium tax_ The BWL also received bids from the Lansing Insurance Agency for virtually identical coverage and cost from the International Surplus Lines Insurance Company, but without an installment option, and from the Lyman and Sheets Agency for the Lexington Insurance Company for $5 million for $84,150.00 including premium tax, and for a different coverage from Gulf Insurance Company. Adopted unanimously. i2 Lpril 24, 1990 BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER EVANS Tribute to Frank Cassara — Professor Emeritus of Art WHEREAS, artist Frank Cassara accepted an assignment in 1938, through the Michigan Federal Arts Project Section of the Works Progress Administration, to render murals at Lansing's new municipal water conditioning plant, and WHEREAS, artist Frank Cassara dutifully served the Lansing community and the Board of Water and Light on that occasion, working closely with plant architects and utility management to create a unique facility that blended beauty with function, and WHEREAS, artist Frank Cassara's huge murals depicting the benevolent and destructive forces of water have graced the walls of the municipal water conditioning plant since that time, serving as a source of interest to visitors and enhancing utility and community pride, and WHEREAS, fifty years later, original mural artist Frank Cassara, now Professor Emeritus of Art at the University of Michigan, honored the Board of Water and Light by returning to Lansing to oversee restoration of the water conditioning plant 's Depression Era murals, leading to the utility obtaining a grant from the Michigan Council of the Arts and a State of Michigan appropriation of funds, together totaling $12,500 for such restoration, and WHEREAS, it is a special privilege to extend tribute and commendation to Professor Frank Cassara, for his dedication to the art world and commitment to the Board of Water and Light in willingly and untiringly commuting from Ann Arbor to Lansing daily, for a period of months, to painstakingly restore the municipal water facility's art treasure to its original state. NOW, THEREFORE, BE IT RESOLVED, That the Lansing Board of Water and Light Commissioners express their appreciation to Professor Frank Cassara for his services. RESOLVED FURTHER, That this resolution be inscribed on the pages of the Minutes and a copy be forwarded to Professor Cassara as evidence of our highest esteem. Adopted by the following vote: Unanimously. April 24, A% 53 GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: MPPA POWER POOL AGREEMENT. General Manager Pandy thanked the Commissioners for authorizing the BWL to enter into a contract with the Michigan Public Power Agency (MPPA) for a Coordinated Power Pool to be in operation by January 1991. He commended Assistant General Manager Joe Wolfe for his efforts in negotiations to develop the power pool over the past five years. Assistant General Manager Wolfe noted that negotiations are proceeding for a separate pool agreement between the MPPA Power Pool and Wolverine Power Supply Cooperative. Other systems such as Holland and Michigan South Central Power Agency might also be interested in joining the separate pool. CONSENT ORDER FOR THE MOORES PARK STATION. Mr. Pandy handed out a copy of a proposed Consent Order for the Moores Park Station, submitted on April 16, 1990, by the U. S. Environmental Protection Agency (EPA) , Region 5, as resolution of the October 18, 1989 Notice of Violation issued to the BWL for the Moores Park Station. Mr. Pandy reported that staff is reasonably satisfied with the U. S. EPA's response. Following discussion and a review of the proposed Consent Order, Commissioner Jessop moved, seconded by Commissioner Williams: Resolution 90-4-5 Approval of U. S_ EPA Consent Order for Moores Park Station RESOLVED, The Board consents with the terms and conditions of the proposed Consent Order, submitted by the U. S. EPA, for the Moores Park Station. RESOLVED, The General Manager is hereby authorized to execute the Consent Order in substantially the same form as that being proposed. Adopted unanimously. STATUS OF OTTAWA STATION NOTICE OF VIOLATION. As an update, Mr. Pandy reported that a compliance proposal was also submitted to the U. S. EPA, Region 5, in December 1989 by BWL engineering staff for the Ottawa Station. Staff is awaiting a response. 54 April 24, 1990 INDUSTRIAL MECHANICAL CONTRACTORS, INC. BID BOND. Mr. Pandy reported that bids were received for Specification 8854-13 Mechanical Construction, Life Extension, Eckert Station, on March 14, 1990. After the bid opening, Industrial Mechanical Contractors (IMC) , the apparent low bidder informed the BWL that their bid was in error by $129,157. When notified they were awarded the contract for their bid amount of $465,500, IMC declined to sign the contract. The BWL sent a letter to IMC informing them that if an executed contract was not received by a given date, they would be considered to have abandoned the contract. With no response received from IMC, the contract was awarded to Goyette Mechanical Company, the second best evaluated bid for the amount of $576,750. In accordance with the provisions of the Proposal Form and Notice to Bidders, the proceeds of IMC's bid bond are the property of the BWL. Action has begun to collect the proceeds of IMC's bid bond, which is 5 percent of their bid, or $23,275. BOTTLED DRINKING WATER. The BWL bottled approximately 4,000 16-ounce plastic containers of drinking water under the name "Quintessential Quencher," meaning the best or the purest. The bottled water was handed out on Earth Day - April 22, the "Early Bird" Chamber of Commerce meeting - April 24, and will be distributed during National Drinking Water Week festivities. NATIONAL DRINKING WATER WEEK. The BWL will be celebrating National Drinking Water Week May 6-12. The Commissioners were invited to attend a private Open House to be held on Friday, May 11, 1990, from 11 a.m. - 1:30 p.m. at the John F. Dye Water Conditioning Plant. A progress report on the regional water supply concept will be presented by the study committee of the Tri-County Regional Planning Commission. A luncheon will be included. A public open house will be held Saturday, May 12, from 10 a.m. to 2 p.m. AWARD RECEIVED FROM JUNIOR ACHIEVEMENT. Mr. Pandy displayed a plaque awarded to the BWL by the Junior Achievement of Mid-Michigan. The award congratulates the BWL Junior Achievement Fund Drive Team on their outstanding fundraising performance in raising contributions in excess of $14,900 for the 1990 JA "Phonathon." Team members included Bob Coppersmith, Jack Hill, Brian McLeod, Steve Simpson, and Ralph Whitenight under the leadership of Kathy Younglove. PRE-BARGAINING WITH I.B.E.W. LOCAL 352. Pre-bargaining discussions have begun between the BWL Management Team and the IBEW Negotiation Team. The current labor contract will expire on July 1, 1990. CAPITAL CHOICE PROGRAM. Mr. Pandy briefed on the Lansing Regional Chamber of Commerce's Capital Choice Program. A copy of a special advertising insert included in the MICHIGAN BUSINESS MAGAZINE was handed out for review. Mr. Pandy noted that this program is one of the first proactive approaches the Chamber has taken to lure businesses to the Lansing community. The Chamber's next step is an attempt to raise additional funds from the private sector for economic development efforts. April 24, 1990 55 REMARKS BY BOARD COMMISSIONERS Chairman Hassler commented on the Budget Variance Analysis Data Sheet for March, 1990. The significant improvement in the accounts receivable activity for March 1990 was noted. Commissioner Hassler also pointed out that although total expense is down by 6.6 percent, gross revenue is off by 7.4 percent and the rate of return is falling--all indicating that tough times are ahead. Commissioner Evans complimented BWL employee efforts for their involvement in the first annual Capital Area Charity Hockey Tournament held April 20-21, of which five other teams within the commuity participated. Each team competing in the tournament named their own charities for the event. General Manager Pandy reported that the proceeds from the BWL ticket sales for the hockey tournament were donated to the Salazar Education Fund in memory of Juan Salazar, who was fatally injured in a work- related accident February 23. More than $2,500 was raised from the hockey tournament and an additional $500 was raised from booth sales during the Earth Day event. Mr. Pandy stated that Juan Salazar's co- workers have begun a campaign to raise $8,000 to purchase a Michigan Education Trust Bond for the Salazar unborn child, expected in July. On motion of Commissioner Strolle, the Board adjourned at 6:00 p.m. 1 ' ,Z. Mary E. Sova, Secretary Filed: April 26, 1990 JAles D. Blair, City Clerk April 24, 1990 49 WATER (Continued) Res. No. 90-4-3 That the Board agree to serve water to the proposed Water District No. 2, Watertown Township, as requested by Approval of Water- Resolution of the Watertown Township Board on February 19, town Township Water 1990, and that in accordance with the agreement between the District No. 2 to Board and the Charter Township of Watertown dated November serve portions of 25, 1986, covering the furnishing of a potable water supply Grove Rd., State in Watertown Township, the Board advises officials of Rd. and Felton Rd. Watertown Township as follows: 1 . The Board will accept Water Disrict No. 2 established by Township resolution on February 19, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $118,178.75 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement II) covering the furnishing of a potable water supply in Water District No. 2. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $116, 178.75 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement II) to furnish a potable water supply in Water District No. 2. The geographical area of Water District No. 2 is as follows: Grove Road: Grand River northerly to State Road State Road: Grove Road easterly to Felton Road Felton Road: State Road southerly to existing To provide a potable water supply within the proposed new district requires installation of 3,625 feet of 12-inch water main at $113,607.50 and 750 feet of 8-inch water main at $17,767.50 for a total of $4,375 feet of water main at an estimated cost of $131 ,375.00 and nine (9) fire hydrants at a cost of $14,535.00. April 24, 1990 51 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-4-1 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-4-2 and 90-4-3 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. UNFINISHED BUSINESS BY COMMISSIONER WILLIAMS SECONDED BY COMMISSIONER JESSOP Public Officials RESOLVED, That Resolution 90-3-11, tabled at the March 27, and Employees Lia- 1990 regular meeting, be approved as initially introduced. bility Insurance The resolution in its entirety is presented below: awarded to Hall and Kennedy, Inc. Authorize purchasing the following insurance coverage: Agency representing the International Public Officials and Employees Liability Insurance from the Surplus Lines Hall and Kennedy, Inc. agency representing the International Insurance Company Surplus Lines Insurance Company for an annual premium of $86,943.78 (including 2 percent premium tax) . This would provide a limit of liability of $5 million and a retention of $50,000 per loss or per insured individual. ---------------- This selection is viewed as the best value. The BWL's expiring coverage is with the Lyman & Sheets Agency representing the Lexington Insurance Company for $5 million and similar terms and conditions at an annual premium of $91,774.50 including premium tax. The BWL also received bids from the Lansing Insurance Agency for virtually identical coverage and cost from the International Surplus Lines Insurance Company, but without an installment option, and from the Lyman and Sheets Agency for the Lexington Insurance Company for $5 million for $84,150.00 including premium tax, and for a different coverage from Gulf Insurance Company. Adopted unanimously. April 24, 1990 53 GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: MPPA POVER POOL AGREEMENT. General Manager Pandy thanked the Commissioners for authorizing the BWL to enter into a contract with the Michigan Public Power Agency (MPPA) for a Coordinated Power Pool to be in operation by January 1991. He commended Assistant General Manager Joe Wolfe for his efforts in negotiations to develop the power pool over the past five years. Assistant General Manager Wolfe noted that negotiations are proceeding for a separate pool agreement between the MPPA Power Pool and Wolverine Power Supply Cooperative. Other systems such as Holland and Michigan South Central Power Agency might also be interested in joining the separate pool. CONSENT ORDER FOR THE MOORES PARK STATION. Mr. Pandy handed out a copy of a proposed Consent Order for the Moores Park Station, submitted on April 16, 1990, by the U. S. Environmental Protection Agency (EPA) , Region 5, as resolution of the October 18, 1989 Notice of Violation issued to the BWL for the Moores Park Station. Mr. Pandy reported that staff is reasonably satisfied with the U. S. EPA's response. Following discussion and a review of the proposed Consent Order, Commissioner Jessop moved, seconded by Commissioner Williams: Resolution 90-4-5 Approval of U. S. EPA Consent Order for Moores Park Station RESOLVED, The Board consents with the terms and conditions of the proposed Consent Order, submitted by the U. S. EPA, for the Moores Park Station. RESOLVED, The General Manager is hereby authorized to execute the Consent Order in substantially the same form as that being proposed. Adopted unanimously. STATUS OF OTTAWA STATION NOTICE OF VIOLATION. As an update, Mr. Pandy reported that a compliance proposal was also submitted to the U. S. EPA, Region 5, in December 1989 by BWL engineering staff for the Ottawa Station. Staff is awaiting a response. April 24, 1990 REMARKS BY BOARD COMMISSIONERS Chairman Hassler commented on the Budget Variance Analysis Data Sheet for March, 1990. The significant improvement in the accounts receivable activity for March 1990 was noted. Commissioner Hassler also pointed out that although total expense is down by 6.6 percent, gross revenue is off by 7.4 percent and the rate of return is falling--all indicating that tough times are ahead. Commissioner Evans complimented BWL employee efforts for their involvement in the first annual Capital Area Charity Hockey Tournament held April 20-21, of which five other teams within the commuity participated. Each team competing in the tournament named their own charities for the event. General Manager Pandy reported that the proceeds from the BWL ticket sales for the hockey tournament were donated to the Salazar Education Fund in memory of Juan Salazar, who was fatally injured in a work- related accident February 23. More than $2,500 was raised from the hockey tournament and an additional $500 was raised from booth sales during the Earth Day event. Mr. Pandy stated that Juan Salazar's co- workers have begun a campaign to raise $8,000 to purchase a Michigan Education Trust Bond for the Salazar unborn child, expected in July. On motion of Commissioner Strolle, the Board adjourned at 6:00 p.m. Mary E. Sova, Secretary Filed: April 26, 1990 James D. Blair, City Clerk 48 April 24, 1% WATER Res. No. 90-4-2 That the Board agree to serve water to proposed Water District No. 65, Delhi Township, as requested by resolution Approval of Delhi of the Delhi Charter Township Board on April 17, 1990, and Township Water that in accordance with the agreement between the Board and District No. 65 - the Charter Township of Delhi dated August 15, 1972, cover- Loch W6ode Sub- ing the furnishing of a potable water supply in Delhi Town- division-Lots 1-43 ship, the Board advise officials of Delhi Township as follows: 1 . The Board will accept Water District No. 65 estab- lished by Township resolution on April 17, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $65,752.00 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LXV) covering the furnishing of a potable water supply in Water District No. 65. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $65,752.00 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXV) to furnish a potable water supply in Water District No. 65. The geographical area of Water District No. 65 is as follows: Loch Woode Subdivision Phase I - Lots 1 thru 43 To provide a potable water supply within the proposed new district requires the installation of 2,795 feet of water at an estimated cost of $57,577.00, and five (5) fire hydrants at a cost of $8,175.00. The main extension will serve forty three (43) residential customers. One-time connection fees will amount to $21 ,500.00. Estimated annual revenue is $12,900.00. Water main to be installed in Summer/Fall of 1990 follow- ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- 46 April 24, 1990 PERSONNEL COMMITTEE REPORT April 24, 1990 Board of Commissioners Board of Water and Light Personnel Cwndttee The Personnel Committee met on April 23, 1990 to review the comments of Report RE: Proposed special counsel on the proposed General Manager's employment contract. Employment Contract for General Manager Committee members present were Commissioners Jessop (Chair) , Hassler, and Strolle. Absent was Commissioner Sebolt. The members of the Personnel Committee and the General Manager discussed the changes to the proposed employment contract suggested by the Board's special counsel, William Parsley. Following discussion, it was the Committee's desire to schedule a special meeting of the Board in the near future to discuss final revisions to the proposed agreement, which is to take effect July 1, 1990. Respectfully submitted, E. Lane Jessop, Chairman Personnel Committee BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT That the Personnel Committee Report be approved as presented. Adopted unanimously. 76 May 22, 1990 GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: APPA FINANCIAL AND OPERATING RATIOS (1988) : Mr. Pandy reported on a correction made to the OSHA Incidence Rate (per 100 Employees) summarized in his memo to the Board, dated May 17, 1990. The BWL's ratio of 16.57 percent compared to the North Central/Plains region for utility systems similar in size has been adjusted down to 8.19 percent, which compares favorably with the Mean of 10.13 percent. It was explained that at the time the first set of numbers were submitted to APPA, several employees had failed a hearing test. By OSHA standards, however, if an employee is retested with successful results, the numbers may be adjusted to include those employees who passed the hearing test. COMPETITION WITH CONSUMERS POWER. Reference was made to recent articles in the LANSING STATE JOURNAL and DETROIT NEWS regarding competition with Consumers Power and their reliability of service. Mr. Pandy also reported that Consumers Power has reorganized for the fourth time in five years. He noted that the new organization is the result of an extensive effort to develop the proper structure for Energy Distribution. New areas of responsibilities for key Consumers Power staff members were summarized. NEGOTIATIONS WITH I.B.E.W. A participative approach between management and the IBEW is taking place to encourage better understanding of the issues. COAL SUPPLY. The BWL coal inventory is currently at 71 days. INTRODUCTION OF COMMISSIONER DAVID O'LEARY. Newly appointed Commissioner David O'Leary was welcomed to the Board. His appointment was confirmed by the City Council on May 21, 1990; his term will expire June 30, 1993. Commissioner O'Leary is filling the vacancy created by the resignation of Bruce E. McComb. COMMISSIONER E. LANE JESSOP REAPPOINTED. Commissioner E. Lane Jessop's reappointment to the BWL Board of Commissioners was confirmed by the City Council on May 21, 1990. His fifth term begins July 1, 1990 and will expire June 30, 1994. JOETTE WOODARD-YAUK IS DIANA AUARD RECIPIENT. Mr. Pandy announced that Steam Utility Director Joette Woodard-Yauk was recently honored as one of ten 1990 Diana Award recipients. B_W.L. RECEIVES FIRST CORPORATE "WE CARE" AWARD. Mr. Pandy displayed a trophy recently presented to the BWL by the Blue Care Network - Health Central. This award is the first annual "We Care" Award presented in recognition of excellence in community service by employees of major businesses in the Lansing/Tri-County area. Competitors for this award included United Cable Company, BOC Supervisors' Council, Consumers Power and First of America Bank. May 22, 1990 75 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-5-2 and 90-5-3 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT SECONDED BY COMMISSIONER STROLLE RESOLVED, That Resolutions 90-5-4 through 90-5-18 (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-5-19 (Consumer Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-5-20 through 90-5-24 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER STROLLE RESOLVED, That Resolution 90-5-25 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolution 90-5-26 (Water Utility) of the General Manager's Recommendations be approved. Adopted unanimously. 74 May 22, 1M WATER (Continued) (Res. No. 90-5-26) Further, that upon receipt of the sum of $209,336. 16 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXIII) to furnish a potable water supply in Water District No. 63. The geographical area of Water District No. 63 is as follows: Beginning on Dell Road 130 feet east of River Pointe Drive, thence east 2,258 feet to east most plat line of Lamoreaux No. 3 Subdivision, thence Lamoreaux No. 3 Subdivision. To provide a potable water supply within the proposed new district requires the installation of 7,736 feet of water main and 15 fire hydrants at an estimated cost of $209,336. 16. The main extension will serve 80 residential customers already existing. One-time connection fees will amount to $40,000.00. Estimated annual revenue is $24,000.00. Water mains to be installed in Fall of 1990 following the receipt of the Township's non-refundable contribution-in- aid of construction and the signing of the agreement. -------------------- Respectful submitted, Joseph Pandy, Jr. General Manager JP/bg May 22, 1990 73 TREASURER/CONTROLLER Res. No. 90-5-25 The Board of Water and Light will pay subtantiated and reasonable expenses incurred while traveling on BWL Travel Policy business. This policy statement authorizes the General Manager to establish procedures govering travel expense. The propriety of any travel expense is dependent upon the business needs of the BWL. Employees and management must use good judgment and discretion to minimize business related travel expense. -------------------- This general policy statement supports current procedures. See attached General Manager's memo dated July 31, 1985. These procedures will change as circumstances change. The procedure specifies what travel expenses the BWL pays and the approval process. -------------------- WATER Res. No. 90-5-26 That the Board agree to serve water to proposed Water District No. 63, Delhi Township, as requested by resolution Approval of Delhi of the Delhi Charter Township Board on February 20, 1990, Township Water and that in accordance with the agreement between the Board District No. 63 and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supply in Delhi Township, the Board advises officials of Delhi Township as follows: 1. The Board will accept Water District No. 63 estab- lished by Township resolution on February 20, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $209,336.16 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LXIII) covering the furnishing of a potable water supply in Water District No. 63. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. 72 May 22, 19% HUMAN RESOURCES (Continued) Res. No. 90-5-22 That Mr. Leo M. Gallegos, Jr., Stock Control Clerk at the Stores Department, be awarded a total of $144.00 for his Lao M. Gallegos, Jr, suggestion, 1990-91 , to install a display board showing one receives suggestion pair of each type of glove that Stores carries in stock. award Also displayed would be the item number and current avail- ability. This would facilitate employee sales of the gloves by enabling the employee to complete the requisition and payroll deduction form before ringing the buzzer to have their order filled. -------------------- It is estimated that the BWL will save $742.25 the first year by using this procedure. -------------------- Res. No. 90-5-23 That Mr. Dean Hedglen, Water Field Representative at Water Transmission and Distribution Department, be awarded Dean Hedglen receives $463.48 for his suggestion, 1989-215, to read fire meters suggestion award once a year as opposed to monthly. Currently, a water field representative spends 36 days a year reading the fire service detector meters. Each meter is read quarterly and the readings are given to Water Engineering for evalua- tion and recording. Engineering evaluates the reading only once at year's end. Historically, the consumptions have not warranted greater frequency. -------------------- It is estimated that the BWL will save $3,884.76 the first year by implementing this suggestion. -------------------- Res. No. 90-5-24 That Messrs. Kenneth Mier and Frank Keck, Operator B's- Water Treatment at Eckert Station, be awarded $380.55 (to Kenneth Mier and Frank be divided equally) for their suggestion, 1990-155, to run Keck receive suggestion a drain hose from the Lammela thickener in the Waste Water award Treatment Plant to the neutralizing pit at Eckert, and reduce the need for a vac truck during the cleaning of the pit. By running a drain hose from the dirty system to the neutralizing pit and washing dirt into the pit, the dirt will settle out and water can be pumped to the surge tank and run through the waste water system in use. After the unit has been cleaned, dirt is removed from the neutral- izing pit by the vac truck and hauled to a waste site. -------------------- It is estimated that the BWL will save $3,055.50 the first year by using this suggestion. -------------------- May 22, 1990 71 CONSUMER SERVICES Res. No. 90-5-19 That the Goodrich's Shop Rite, 940 Trowbridge Road, East Lansing, Michigan, be authorized as a Board of Water and Goodrich's Shop- Light paystation upon completion of the usual paystation Rite, Fast Tanning agreements and bonds. authorized as M paystation -------------------- Goodrich Shop Rite serves between 12,000 and 13,000 customers on a weekly basis and feels their store would be an excellent location for customers to make their payments with convenient free parking. -------------------- HUMAN RESOURCES Res. No. 90-5-20 That Messrs. Ronald T. Brynes, Raymond Polihonki and Roger A. Jeffers, Underground Supervisors in Line Construction, Ronald T. Byrnes, be awarded a total of $5,000 (to be divided equally) for Raymond polihonki and their suggestion, 1987-102, to install hydraulic quick Roger A. Jeffers receive couplings on the trucks equipped with a hydraulic system. suggestion award This alleviates the need for transporting an air compressor to the job sites, thereby increasing productivity and saving money. -------------------- It is estimated that the BWL will save $61 ,984.25 the first year by using this suggestion. -------------------- Res. No. 90-5-21 That Mr. Billy D. Barnes, Senior Operator A, Eckert Station, be awarded $5,000 for his suggestion, 1989-72, to Billy D. Barnes start feeding coal sooner on units 1 , 4, 5, & 6 at Eckert. receives suggestion This would involve feeding the coal at 100 pounds and using award reprocessed oil as opposed to feeding the coal at 400 pounds and using good oil. This method will allow for better control in bringing the pressure up on the units and the use of only one set of torches burning reprocessed oil and coal versus three sets of torches burning good oil. -------------------- It is estimated that the BWL will save $89,250.00 the first year by using this suggestion. -------------------- 70 May 22, 1990 ADMINISTRATIVE SERVICES (Continued) Res. No. 90-5-16 Authorize purchase of the estimated 12 month requirement of Carbon Dioxide for the Wise Road Water Conditioning Plant Purchase of 12-month from Cardox for $70.00/ton. Estimated 12 month quantity is requirement of Carbon 400 tons, for an estimated amount of $28,000.00. Pricing Dioxide from Cardox is firm through May 31 , 1991. All material to be released as required over the 12 month period. -------------------- The other bidders were Thermice Corp. ($31 ,200.00) and Liquid Carbonic Carbon Dioxide Corp. ($80,000.00). Carrier Stephens Co. was invited to bid but declined. -------------------- Res. No. 90-5-17 Authorize purchase of the estimated 12 month requirement of Sodium Hexametaphosphate for Dye and Wise Road Water Condi- Purchase of 12-month tioning Plants from Van Water and Rogers, Inc. for $.60 per requirement of Sodium pound. Estimated 12 month quantity is 48,000 pounds, for Hexa► etaphosphate from an estimated cost of $28,800.00. All material to be re- Van Water and Rogers, leased as required over the 12 month period. Inc. -------------------- The other bidders were M & W Chemical, Inc. ($29,040.00) and Carrier Stephens Co. ($31 ,023.00). Haviland Products Co. submitted a non-compliance bid. American International Chemical was invited to bid but declined; and Jones Chemical was invited to bid but did not reply. -------------------- Res. No. 90-5-18 Authorize purchase of the estimated 12 month requirement of Single-phase Watthour Meters from Reed City Powerline Purchase if 12-month Supply for $24.99 per meter. Estimated 12 month quantity requirement of single is 6,912 meters, for an estimated amount of $172,730.88. phase Watthour Meters Pricing is firm through May 31 , 1991 . All material to be from Reed City released as required over the 12 month period. Pwerline Supply -------------------- The other bidders were Instrument Specialties, Inc. ($211,507.20) , General Electric Co. ($190,840.32), Riley Company ($294, 127.20), Eagle Utility Services ($219,732.48) and Westinghouse Electric Supply ($259,891 .20). -------------------- May 22, 19% 69 ADMINISTRATIVE SERVICES (Continued) Res. No. 90-5-13 Authorize purchase of the estimated 12 month requirement of Liquid Chlorine for water treatment at all plants from Purchase of 12-month Cardinal Chemical Co. for $425.00/ton. Estimated 12 month- requirement of Liquid quantity is 97 tons, for an estimated amount of $41 ,225.00. Chlorine fran Cardinal Pricing is firm through May 31 , 1991 . All material to be Chemical Co. released as required over the 12 month period. -------------------- The other bidders were Carrier Stephens Co. ($42, 195.00), and Rowell Chemical Corp. ($43,650.00). PVS-Nol/Wood Chemicals, Inc. and Pioneer Chlor Alkali Co. were invited to bid but did not reply. -------------------- Res. No. 90-5-14 Authorize purchase of the estimated 12 month requirement of Sodium Hypochlorite for Eckert Station from M & H Purchase of 12-month Chemical Co. for $.454/gallon. Estimated 12 month quantity requirement of Sodium is 25,000 gallons, for an estimated amount of $11 ,350.00. Hypochlorite frcmM& H All material to be released as required over the 12 month Racal GD, period. -------------------- The other bidders were Haviland Products Co. ($12,000.00) , Rowell Chemical Corp. ($13,450.00) , K.A. Steel Chemicals, Inc. ($13,725.00) and High-Po-Chlor ($13,750.00) . -------------------- Res. No. 90-5-15 Authorize purchase of the estimated 12 month requirement of Molten Sulfur for the Erickson Station flue gas condi- Purchase of 12-month tioning system from Marsulex, Inc. for $116.00/long ton. requirement of Molten Estimated 12 month quantity is -157 long tons, for an Sulfur fran Marsulex, estimated amount of $18,212.00. Pricing is firm through Inc, May 31 , 1991 . All material to be released as required over the 12 month period. -------------------- The other bidders were Marathon Oil Co. ($19,585.75) and Bay Chemical Co. ($20,410.00). Olin Chemicals declined to bid. PVS Chemicals, Inc. , Malinkrodt, Inc. , Texasgulf Chemicals Co. and Shell Chemical Co. were invited to bid but did not reply. -------------------- 68 May 22, 1990 ADMINISTRATIVE SERVICES (Continued) Res. No. 90-5-10 Authorize purchase of the estimated 12 month requirement of Kiln Dried Granulated Salt for Moores Park Steam Plant from Purchase of 12-mnth AKZO Salt, Inc. for $62.75 per ton. Estimated 12 month requirement of Kiln quantity is 320 tons, for an estimated cost of $20,080.00. Dried Granulated Pricing is firm through May 31 , 1991. All material to be Salt from AKZD released as required over the 12 month period. AKZO Salt, Salt, Inc. Inc. was the best evaluated bidder. Their bid included a 25 ton minimum delivery, while Morton Thiokol, Inc. required a 32 ton minimum delivery. 7---------------- The other bidder was Morton Thiodol, Inc. ($20,800.00) American Salt Company was invited to bid but did not reply. -------------------- Res. No. 90-5-11 Authorize purchase of the estimated 12 month requirement of Sulfuric Acid for Eckert and Erickson Stations from Purchase of 12-rmnth Marsulex, Inc. for $61 .50 per ton. Estimated 12 month requirement of Sulfuric quantity is 69,000 gallons (approx. 528 tons), for an esti- Acid from)arsulex, Inc. mated amount of $32,472.00. Pricing is firm through May 31 , 1991. All material to be released as required over the 12 month period. -------------------- The other bidders were Carrier Stephens Co. ($36,960.00), General Alum & Chemical Co. ($38,544.00). Cardinal Chemical Corp. , Haviland Products Co. , and M & H Chemical Co. were invited to bid but declined. -------------------- Res. No. 90-5-12 Authorize purchase of the estimated 12 month requirement of Caustic Soda for Eckert and Erickson Stations from The Old Purchase of 12-mmnth World Trading Co. for $386.00/dry ton. Estimated 12 month requirement of Caustic quantity is 145.6 dry tons, for an estimated amount of Soda from The Old $56,201.60. All material to be released as required over World Trading Co. the 12 month period. -------------------- The other bidders were Carrier-Stephens Co. ($57,512.00) , Cardinal Chemical Co. ($58,531 .20), old World Trading Co. ($59,987.20) , K.A. Steel Chemicals, Inc. ($60,715.20) , and Rowell Chemical Corp. ($61 ,734.40). M & H Chemical was invited to bid but did not reply. -------------------- May 22, 1990 67 ADMINISTRATIVE SERVICES (Continued) Res. No. 90-5-7 Authorize purchase of the estimated 12 month requirement of Hydrofluosilicic Acid for Dye and Wise Road Water Condi- Purchase of 12-mnth tioning Plants from Cardinal Chemical Corp. for $164.70 per requirement of Hydro- ton. Estimated 12 month quantity is 150 tons, for an fluosilicic Acid from estimated cost of $24,705.00 Pricing is firm through May Cardinal Chemical 31 , 1991 . All material to be released as required over the Corporation 12 month period.. -------------------- The other bidders were L.C.I. Limited ($25,080.00), Carrier Stephens Co. ($27,960.00) and Shrieve Chemical Co. ($32,850.00). Spencer Chemical Co. and General Alum & Chemical Corp. were invited to bid but did not reply. -------------------- Res. No. 90-5-8 Authorize purchase of the estimated 12 month requirement of Pebble Quicklime for Dye and Wise Road Water Conditioning Purchase of 12-month Plants from Marblehead Lime Co. for $52.36 per ton. requirement of Pebble Estimated 12 month quantity is 10,672 tons, for an esti- Quirklime from Marble- mated cost of $558,785.92. Pricing is firm through May 31 , head i•,nw Co 1991 . All material to be released as required over the 12 month period. -------------------- The other bidders were Detroit Lime Co. ($564,868.96) and Mississippi Lime Co. ($817,261 .76). Beachvilime Limited was invited to bid but did not reply. -------------------- Res. No. 90-5-9 Authorize purchase of the estimated 12 month requirement of Soda Ash for Dye and Wise Road Water Conditioning Plants Purchase of 12-month from General Chemical Corp. for $153.96 per ton. Estimated requirement of Soda 12 month quantity is 2,350 tons, for an estimated cost of Ash from General $361 ,806.00. Pricing is firm through May 31 , 1991 . All Chemical Corp. material to be released as required over the 12 month period. -------------------- The other bidders were Rhone-Poulenc Basic Chemicals ($364, 156.00) and FMC Corporation $382,956.00) . Alexander Chemical Corp., PVS Nol/Wood Chemicals, Inc. and Kraft Chemical Co. were invited to bid but declined. -------------------- 66 May 22, 1990 ADMINISTRATIVE SERVICES Res. No. 90-5-4 Authorize the sale of 16 Board-owned vehicles, which have been replaced, through auction or competitive bids. The Sale of 16 BWL vehicles to be sold are BWL vehicles #40, #52, #69, #76, vehicles authorized #100, #145, #148, #300, #305, #306, #317, #322, #329, #331, #615 and #771. -------------------- An itemized list of the 16 obsolete vehicles to be sold is on file with the Secretary of the Board. -------------------- Res. No. 90-5-5 Authorize purchase of the estimated 12 month requirement of free renewal lamps (approx. 341 ,230 lamps) covering the Purchas of 12-month period from June 1 , 1990 through May 31, 1991 , from requirement of free Michigan Brass and Electric Co. , Lansing, Michigan, in the renewal lamps from amount of $91 ,117.88. Pricing is firm through May 31, Michigan grass and 1991 . All material to be released as required. Electric Co. The other bidders were Kendall Electric, Inc. ($95,600.02) , Westinghouse Electric Supply Co. ($112,792.94) , Graybar Electric Co. ($127, 178.70), and All Phase Electric Supply Co. ($154,005.09). General Electric Supply Co. submitted a late bid of $136,777.60). General Electric Co., Westinghouse Electric Corp., GTE Sylvania, and Michigan Electric Supply Co. were invited to bid but declined. -------------------- Res. No. 90-5-6 Purchase estimated 12 month requirement of resale and system lamps covering the period from June 1 , 1990 through Purchase of 12-month May 31 , 1991 , from Michigan Brass and Electric Co. , requirement of resale Lansing, Michigan, in the amount of $107,442.00. Pricing and systenlamps Fran is firm through May 31 , 1991 . Michigan Brass and -------------------- Electric Co. The other bidders were Kendall Electric Inc. ($109,557.00), Westinghouse Electric Supply Co. ($118,017.00), Graybar Elecric Co. ($136,206.00), and All Phase Electric Supply Co. , ($164,970.00). -------------------. %Y 99, 1990 65 May 22, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-5-2 That the BWL utilize the services of Long Term Contract Consultants of Tampa, Florida (LTCC), to assist us in Approval to retain obtaining revisions to our Transportation Agreement with Long Term Contract CSX Railroad to provide for BWL furnished rail cars (owned Consultants of Tampa, or leased) at favorable rates. LTCC proposed to perform Florida to assist in this work on a time and material basis estimated at $10,000 obtaining revisions to $15,000, but not to exceed $15,000 without BWL approval. to transportation agreanent with C9( -------------------- Railroad The scope of work is: 1. Provide specific recommendations to BWL for effective contract escalation alternatives. 2. Provide beneficial options for incorporating private rail cars into coal movements to BWL generating stations. 3. Assist in negotiations with CSX to achieve our objectives. -------------------- Res. No. 90-5-3 The Board of Commissioners is opposed to the reporting Statarent of Board provisions specified in the Proposed Statement of the opposition to the Governmental Accounting Standards Board dated March 14, reporting provisions 1990, on The Financial Reporting Entity. This proposal specified in the pro- would require displaying, in detail, BWL's financial data posed statement of as a component unit of the City of Lansing. We feel this GASB presentation would seriously misrepresent the nature of the relationship between the City and the BWL. (See memo attached). -------------------- The Commissioners direct staff to communicate with the GASB. Advise them in detail of the BWL's concerns about this issue. And, urge GASB to revise the proposed reporting requirements to more accurately convey the connection between the BWL and the City. -------------------- 64 May 2, 1990 • Adding zest to downtown Lansing and spurring economic development. The suggested cost for the transit system is $75 million to $90 million. The General Manager will be advocating that the Capital Area Transportation Authority (CATA) build and own the monorail system. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT That the Committee of the Whole Report be received as presented. Adopted unanimously. May 99, 1990 63 • Improved power factor • Low or no water required • High grade waste heat for cogeneration Attractive characteristic of direct fuel cells include low operating cost, environmental compatibility, and planning flexibility. In 1989, the NOMO Team endorsed the commercialization plan offered by Energy Research Corporation. Mr. Kirchmeier highlighted ECR's commercialization schedule and buyer obligations, risk protections, incentives and benefits for early participation, and conditions necessary for proceeding to each subsequent step in the overall commercialization program. BWL staff will continue to monitor the progress of the commercialization efforts to assess if utilization of a fuel cell unit within the BWL service area is foreseeable. MOORES PARK AND NORTH LANSING DAM PROJECTS The Superintendent of Environmental Engineering, Ron Hohenstein, briefed on BWL efforts to obtain Federal Energy Regulatory Commission (FERC) licenses for the Moores Park and North Lansing Dams. In 1987, the two facilities were found to be deficient by the FERC in three environmental areas. Two of the deficiencies have been addressed by studies already completed. The remaining deficiency deals with the fish populations in the impoundments and entrainment at the Moores Park and North Lansing hydroelectric facilities. Bids for this study were received on May 2, 1990, and are being evaluated. Timeliness, with respect to completion of the studies, is critical as FERC licensing is at stake. Current work underway includes: • Insecticide/PCB study of fish parts and river bottom contours, and sediment study, to be completed by October 15, 1990. • Pond Level monitoring, installation of instrumentation, and dam repair work to be completed by December, 1990. The details of the repair schedule for the Moores Park and the North Lansing Dams were presented by General Supervisor Jim Felts of Project Engineering. It was noted that river levels will not be affected as flowage will be maintained by cofferdams during the repair period. MONORAIL SYSTEM. General Manager Joe Pandy briefed the Commissioners on his visionary concept of an express monorail system from downtown Lansing to East Lansing. Attributes of a monorail system include: • Mass transit for commuters and conference attendees to and from Lansing, East Lansing and Michigan State University (MSU) . • Easing the parking crunch in Lansing during weekdays, and in East Lansing during special events at the Breslin Center, Wharton Center, and other MSU activities. 62 May 22, 1990 BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER SEBOLT That the Committee of the Whole Report, including Resolution 90-5-1, be approved as presented. Adopted unanimously. The Committee of the Whole Report was read by Commissioner Jessop. Camdttee of the Whole COMMITTEE OF THE WHOLE REPORT Report RE: 1) Combined Billing May 22, 1990 Status 2) ABPA Fuel Cell Board of Commissioners Initiative Board of Water and Light 3) Status of Moores Lansing, Michigan Park and North Lansing Dam The Committee of the Whole met with staff on April 24, 1990 to receive a Projects briefing on the following informational topics: 4) Prospect of a • Combined Billing Monorail System • American Public Power Association (APPA) Fuel Cell Initiative • Moores Park and North Lansing Dam Projects • Prospect of a Monorail System Present were Commissioners Belen, Evans, Hassler, Jessop, McComb, Sebolt, Strolle, and Williams (Chair Pro Tem) . COMBINED BILLING UPDATE. Engineering Director John Elashkar reported on activities of the Combined Billing Project Team's final phase of the subsystems testing. With all the Combined Billing subsystems analyzed and validation completed, the Project Team is now involved with the planning and design of the System Integration Testing and Training Plans. The Combined Billing Project completion date is targeted for August 1, 1990, with an implementation date of October 1, 1990. This will allow sufficient time to train employees with a minimum impact on departments involved in training. FUEL CELL BRIEFING. Project Engineering Superintendent Bill Kirchmeier presented an overview of the fuel cell briefing held in Dallas, Texas. This program to commercialize utility-scale fuel cells was sponsored by a group of electric utilities and the Electric Power Research Institute, through the framework of APPA's Notice of Market Opportunity (NOMO) for Fuel Cells. The electric generation concerns spurring public power's interest in direct fuel cell power plants include: • High electrical efficiencies in a simple, reliable design • Low Pollution and noise • Siteable in urban areas • Modular construction May 22, 1990 61 ATPACHMENT A BOARD OF WATER AND LIGHT — DIVISION SUMMARY FOOTNOTES FISCAL YEAR ENDING JUNE 30, 1991 [11 Net Labor refers to the dollar amount of labor charged to operations and maintenance expense accounts. [21 Outside Services and Other include such items as insurance, pension funding, FICA, service engineers, maintenance contractors, consultants, utilities, travel and conference, dues and subscriptions. [31 Administrative, general, and engineering expenses are allocated to the Water, Electric, and Steam based on such factors as manpower, labor charges, fuel costs, and meters in service. [4[ The cost of owning and operating vehicles is in RA 625 and in the grand total. Thus, vehicle charges must be subtracted from total charges to arrive at net operation and maintenance expense. This procedure complies with our normal accounting practice. 151 Indirect costs applied to capital projects represents overhead charged to fixed capital and credited to expense. 4of4 N N BOARD OF WATER & LIGHT - LANSING, MICHIGAN BUDGET FOR FISCAL YEAR ENDING JUNE 30, 1991 DIVISION SUMMARY - OPERATIONS & MAINTENANCE EXPENSE Restated for Budget Comparison ---------------------------------------------------------- Vehicle & Material Production Outside Expenses Net Equipment & Fuels/Chem. Services to be Labor /l/ Charges Supplies Purch Power & Other /2/ Total Water Electric Steae Distributed Total ----- ------- -------- ----------- ------- ----- ----- -------- ----- ----------- ----- ADMINISTRATIVE $653,978 $2,400 $52,825 $0 $18,964,204 $19,673,407 $164,207 $1,204,921 $48,849 $18,255,430 $19,673,407 ELECTRIC UTILITY 17,335,414 671,808 3,463,934 58,120,933 5,153,538 84,745,627 0 76,726,778 7,158,055 860,794 84,745,627 WATER UTILITY 3,102,205 184,170 374,796 2,030,500 1,387,134 7,078,805 7,078,805 0 0 0 7,078,805 STEAM UTILITY 403,365 17,900 80,340 4,688 597,698 1,103,991 0 0 1,103,991 0 1,103,991 ENGINEERING 1,659,628 41,108 192,530 0 443,700 2,336,966 4,020 0 0 2,332,946 2,336,966 HUMAN RESOURCES 825,048 0 24,480 0 339,394 1,188,922 0 0 0 1,188,922 1,188,922 ENGINEERING PLANNING 582,120 0 14,760 0 211,223 808,103 104,478 407,552 27,654 268,419 808,103 COMMUNICATION AND MARKETING 439,216 21,547 82,301 0 204,137 747,201 10,500 45,153 0 691,548 747,201 TREASURER/CONTROLLER 838,081 0 11,040 0 109,124 958,245 8,000 9,900 0 940,345 958,245 ADMINISTRATIVE SERVICES 1,898,629 70,112 565,907 0 773,198 3,307,906 0 0 0 3,307,906 3,307,906 CONSUMER SERVICES 3,059,631 37,700 251,373 0 934,531 4,283,235 363,674 725,243 0 3,194,318 4,283,235 INFORMATION SYSTEMS 1,391,856 0 177,000 0 694,785 2,263,641 0 0 0 2,263,641 2,263,641 GRAND TOTAL $32,189,171 $1,046,805 $5,291,286 $60,156,121 $29,812,666 $128,496,049 $7,733,684 $79,119,547 $8,338,549 $33,304,269 $128,496,049 Distributed Expenses: Spread to Water, Electric, & Steam /3/ 2,598,613 22,121,376 800,253 -25,520,242 0 a Vehicle and Equipment Charges /4/ -1,046,805 -1,046,805 w Indirect Costs Spread to Capital Budget /5/ -6,737,222 -6,737,222 NET BUDGET BY UTILITY $10,332,297 $101,240,923 $9,138,802 $0 $120,712,022 ATTAQ-PM A 59 May 22, 1990 � , BOARD OF WATER Aivi1 LIGHT — BUDGET FOOTNOTES FISCAL YEAR ENDING JUNE 30, 1991 [1[ Revenue based on sales forecast for water (9,000,000 CCF), Electric (2,471,000 MWH) and Steam (1,559,800 MLB). These sales levels are 3.7% higher, 3.6% lower, and 1.0% higher respectively than the twelve month period ended March 1990. Water revenues include an overall 5.4% increase in rates effective January 1, 1991. [2[ Other Income includes earnings on short term securities, sewerage collection fees and income from merchandising. [3[ Other Expense includes interest on the 1989 Revenue Bonds, Pension debt, Lake Lansing land contract, Michigan Ash building at Erickson, Steam Debt to Electric, and customer deposits. [4[ Projected June 30, 1990 Restricted Operating Cash balances Operations and Maintenance Fund $14,000,000 Bond and Interest Fund 300,000 Total Restricted Operating Cash $14,300,000 [5[ Projected June 30, 1990 Restricted General Cash balances Belle River Contract $13,442,000 Coal Build—up 4,128,000 Uninsured Losses 7,582,000 Total Restricted General Cash $25,152,000 [6) Five year amortization of deferred expenses for Eckert turbine #1 reblade and Erickson turbine reblade and overhaul. [71 Debt repayment includes principal payment for the 1989 Revenue Bonds, Pension debt, the Lake Lansing land contract, and the Michigan Ash building at Erickson. [81 Normal Capital expenditures represent total amounts estimated for all Distribution projects, and Production, Transmission and Common projects less than $100,000, during Fiscal Year 1991. [9[ Major Capital expenditures represent total amounts estimated for Production, Transmission and Common projects greater than $100,000, during Fiscal Year 1991. 2of4 May 22, 1990 58 1 BOARD OF WATER AND L AT-LANSING MICHIGAN TTA�A 2 BUDGET-FISCAL YEAR ENDING JUNE 30, 1991 3 4 WATER ELECTRIC STEAM TOTAL 5 PROJECTED INCOME STATEMENT FY 91 6 7 OPERATING REVENUE [1] $12,894,271 $119,238,000 $11,338,447 143,470,718 8 9 Operation/Maint Expense $10,332,297 $101,240,923 $9,138,802 120,712,022 10 Depreciation Expense 14,553,000 11 ------------ 12 TOTAL OPERATING EXPENSE 135,265,022 13 ------------ 14 OPERATING INCOME 8,205,696 15 Other Income [2] 7,475,000 16 Other Expense [3] 1,424,958 17 ------------ 18 NET INCOME 14,255,738 19 20 Rate of Return(3/90 Rate Base) 4.43% 21 22 PROJECTED CASH FLOW FY 91 23 24 Restricted Operating Cash [4] 14,300,000 25 Restricted General Cash [5] 25,152,000 26 Available General Cash 2,052,000 27 Const/Special Project Cash 35,968,000 28 ------------ 29 BEGINNING CASH 7-1-90 77,472,000 30 31 Sources of Cash 32 Net Income 14,255,738 33 Depreciation 14,553,000 34 Deferred Expense Amortization[6] 598,176 35 ------------ 36 TOTAL SOURCES OF CASH 29,406,914 37 ------------ 38 SOURCES OF CASH PLUS 39 BEGINNING FUND BALANCES 106,878,914 40 41 Uses of Cash 42 Debt Principal [7] 11119,090 43 Normal Capital Expenditures [8] 14,470,000 44 Major Capital Expenditures [9] 20,112,000 45 Return on City Equity 4,711,676 46 ------------ 47 TOTAL USES OF CASH 40,412,766 48 49 Restricted Operating Cash 15,410,146 50 Restricted General Cash 27,104,615 51 Available General Cash 4,304,121 52 Const/Special Project Cash 19,647,266 53 ------------ 54 ENDING CASH 6-30-91 66,466,148 1 of 4 May 22, 1990 57 Cm ttee of the Whole The Committee of the Whole Report was read by Commissioner Jessop. Report RE: FY 1991 Budget COMMITTEE OF THE WHOLE REPORT May 22, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on May 8, 1990 with the General Manager and staff to review the following items: 1. Proposed Fiscal 1990-91 Budget 2. Financial Forecast Present were Commissioners Belen, Evans, Jessop, Hassler, and Williams (Chair Pro Tem) . Absent were Commissioners Sebolt and Strolle. PROPOSED FISCAL 1990-91 BUDGET. Following review and discussion, the Committee of the Whole adopted the following resolution and recommends Board approval: Resolution 90-5-1 Fiscal 1990-91 Budget FY 1991 Budget That the annual Budget covering Fiscal Year 1990-91 be approved approved as presented (see Attachment A) . Further, that the Capital Projects in Exhibit 3 of the budget be authorized in the amount of the project estimate. Capital expenditures for Fiscal 1990-91 are limited to the amount included in the budget. PROJECTED REVENUE REQUIREMENTS UPDATE. Treasurer/Controller Dana Tousley presented the results of his annual study to review long-term revenue requirements for the Electric, Water and Steam Utilities. The assumptions of the study and recommendations made as a result of the study will form the foundation of the BWL's financial strategy for the next Business Plan. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole 56 May 22, 1990 Office, Board of Water and Light Lansing, Michigan Tuesday, May 22, 1990 The Board of Commissioners met in regular session at 5:30 p.m. The meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Jessop, O'Leary, Sebolt, Strolle, and Chairman Hassler --6 Absent: Commissioners Evans and Williams --2 Quorm The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of Minutes That minutes of regular session of April 24, 1990 be approved as mailed. Adopted unanimously. Public Camients CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Letter fram Glenn D. A letter was received from Glenn D. Tarrant, Chief Executive Officer, Tarrant re: lack of Peckham Vocational Industries, Inc. , expressing concern over the lack of cominication on water communication regarding water main construction on North Logan from main construction Terminal Road to North Grand River. project A memo written by Water Utility Director Clyde Dugan. dated May 22, 1990, was handed out for review. General Manager Pandy summarized the issues addressed in the memo and noted that Mr. Tarrant had been personally contacted by a First Line Supervisor before their parking or access was disrupted. To alleviate future miscommunication, the Water Utility will establish a new procedure of notifying businesses and residences in writing prior to construction. A written response to Mr. Tarrant's letter will be prepared by the Water Utility. 92 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday,July 24, 1990 The Board of Commissioners met in regular session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Pro Tem Gerald Williams, acting as Chairman. Present: Commissioners Belen, Evans, Jessop, O'Leary, Strolle, and Williams-6 Absent: Commissioners Hassler and Sebolt-2 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) O C—.. C The Invocation was given by Chairman Pro Tem Williams I— c7 n The Pledge of Allegiance was said by all. �= a BY COMMISSIONER BELEN-- rr0 Cn Cn SECONDED BY COMMISSIONER STROLLE Z: That minutes of regular session of June 26, 1990 be approved as mailed. N Adopted unanimously. ANNUAL ORGANIZATION Chairman Pro Tem Williams announced that in accordance with provisions of the City Charter and the Rules of Administrative Procedure of the Board of Water and Light, adopted May 8, 1979 and as amended, that this being the first regular meeting in July and designated as the organizational meeting, that election of officers for the ensuing fiscal year was now in order. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN Resolution 90-7-6 ELECTION OF OFFICERS AND STAFF APPOINTMENTS RESOLVED, That Chairman of the Board Phillip E. Hassler, Vice Chairman Jack R. Sebolt, and Chairman Pro Tem Gerald W. Williams be re-elected to their present offices for the ensuing fiscal year, or, until their successors are elected, whichever last occurs. FURTHER RESOLVED, That General Manager Joseph Pandy, Internal Auditor Kellie Willson and Secretary of the Board Mary Sova be reappointed for the ensuing fiscal year, or, until their successors are appointed, whichever last occurs. Adopted unanimously. 93 July 24, 1990 CHAIRMAN PRO TEM WILLIAMS ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. PERSONNEL COMMITTEE REPORT Re: Update on Union Negotiations July 24, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee reports it met on July 20, 1990 with the General Manager and the Management Negotiation Team to receive an update on union negotiations. Present were Committee Members Jessop (Chair), Strolle, Williams (alternate), and Hassler (ex officio). Also present was Commissioner Belen. Absent was Personnel Committee Member Sebolt. Staff reported that I.B.E.W. Local 352 members rejected a tentative Contract agreement on July 18, 1990, with the Board of Water and Light. Staff summarized the tentative Bargaining Unit contract changes covering the period July 1, 1990 to October 1, 1993 and associated costing for the negotiation proposals. The Commissioners present were supportive of the negotiation team and the efforts made. Respectfully submitted, /s/E. Lane Jessop, Chair Personnel Committee BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER STROLLE That the Personnel Committee Report be received as presented. Adopted unanimously. 94 July 24, 1990 Recommendations Board of water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-7-1 That the following resolution be adopted: Resolution endorsing WHEREAS, on August 13, 1990, GRAND RIVER EXPEDITION '90 the Grand River will begin at the headwaters of the Grand River south of Expedition Jackson,. and begin a canoe trek to the mouth of the river at Grand Haven on August 25; and WHEREAS, the team of scientists, historians, educators and other interested people will paddle the river in sections every day of the expedition, conducting studies and specific tasks while observing and documenting the Grand River; and WHEREAS, each night the team will camp at scheduled stops organized by city hosts, where the public will be invited to gather and meet with team members for presentations and displays about the river; and WHEREAS, the expedition's grand finale will be at Riverfest 190 over Labor Day Weekend in Lansing's Riverfront Park, where the entire event will be highlighted through presentations and demonstrations; and WHEREAS, the main purposes of the expedition are to gather scientific information for a database on the river and to increase public awareness about the values, problems and opportunities of the Grand River and its watershed; and WHEREAS, this mammoth undertaking will involve thousands of people across the state, and require cooperation and hospitality by dozens of governmental units; NOW, THEREFORE, BE IT RESOLVED the Lansing Board of Water and Light hereby endorses and supports GRAND RIVER EXPEDITION 190. -------------------- 95 July 24, 1990 ADMINISTRATIW (Continued) Res. No. 90-7-2 That the Board enter into a transportation contract with CSX Transportation (CSX) and Consolidated Rail Corporation (Conrail), for coal movements to the BWL's Ottawa Station. The contract particulars are as follows: 1 . The contract will commence on or about August 1, 1990 with an expiration date of December 31 , 1990. 2. The contract contains an automatic annual renewal pro- vision. A party may cancel the contract by giving at least ninety (90) days notice prior to the end of each annual contract period. 3. Annual volume: Minimum of 95% of coal delivered to Ottawa Station. -------------------- By entering into this contract with CSX and Conrail the BWL will have in place rates substantially less than tariff for the duration of Ottawa Station's future coal requirements. The initial contract rate will be seventeen percent (17%) below the current published tariff rate. -------------------- HUMAN RESOURCES Res. No. 90-7-3 That Mr. John R. Peterson, Distribution Main Installation Suggestion Award Supervisor in water Supply and Maintenance Department, be to John R. Peterson awarded a total of $120.86 for his suggestion, number 1989-182, to use pop rivets in the drip leather mounts of Traverse City water hydrant valve assemblies in order to simplify and speed up the replacement of drip leathers. This alleviates the need to remove the entire hydrant stem and valve assembly during such replacements, reducing labor time from 2 hours to 1.5 hours per replacement. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $483.44 in the first year. -------------------- July 24, 1990 96 HUMAN RESOURCES (Continued) Res. No, 90-7-4 That Mr. Robert Studenka, Electric Marketing Analyst in the Marketing Department, be awarded a total of $594.44 for his suggestion, number 1990-061, to have BWL employees use govern- mental hotel discounts whenever this is feasible to do. Such Suggestion Award discounts are not universally offered, and at times do not to Robert Studenka surpass other applicable discounts; nevertheless, it is true that they are often well worth asking for. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $5,194.36 in the first year. -------------------- TREASURER/CONTROLLER Res. No. 90-7-5 That the revised Purchasing Policy dated July 24, 1990, be adopted by the Board and that it supersede the policy adopted Purchasing Policy on July 30, 1987 (Resolution 87-7-11) . Revised; Supersedes previous policy The revisions to the July 30, 1987 policy consist of: adopted 7-30-87 a. Changes to reflect the new organizational structure effective May 14, 1990. b. Change all references to $10,000 to read $15,000 as listed below: Section B., Paragraph 7. Direct Purchases Section B., Paragraph 8. Purchases of Budgeted Items Section C., Paragraph 1 .b. Multi-year Contracts Section C., Paragraph 1 .c. Annual 12 month Contracts Section C., Paragraph 1 .d. Contracts for Outside Services Section C., Paragraph 1 .e. Purchase of Real Property Section C., Paragraph 3. Delegation of Authority Section E., Paragraph 1 . Competitive Sealed Bids Section F., Paragraph 1 . Competitive Proposals Section G., Paragraph 1 . Small Purchases Section A., Paragraph 3. Sole Source Procurement Section I., Paragraph 2. Emergency Procurement Section J., Paragraph 1 . Experimental Purchases Section 0., Paragraph 4.a. Sale of Obsolete Equipment -------------------- Respectfu y submitted, Joseph !ndy, Jr. General Manager JP/bg 97 July 24, 1990 BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 90-7-1 and 90-7-2 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER STROLLE RESOLVED, That Resolutions 90-7-3 and 90-7-4 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-7-5 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: Union Negotiation Status. The I.B.E.W. Union Local 352 is conducting a thorough survey of its membership to determine the reasons for the contract rejection. The Union and Management have agreed to resume negotiations on Monday, July 30, 1990. In the meantime, Union and Management have agreed to extend the current Contract until further notice. Wastewater System Independent Study Committee Formed. The Lansing City Council has approved the creation of a six-member Committee to be called the "Wastewater System Independent Study Committee" with the responsibility of reviewing and analyzing the operations of the City's wastewater treatment system to determine if there are ways of accomplishing cost reduction measures which will assist in preventing or minimizing sewer rate increases in future years. The Committee will be comprised of two members from the Industrial Council of the Lansing Regional Chamber of Commerce, two Lansing Public Service Advisory Board members, and two At Large Lansing residents. This Committee is being formed at the urging of the Industrial Council of the Lansing Regional Chamber of Commerce. Water Sales are Down. Over the last several years, summer load from lawn sprinkling resulted in water system peaks; however, due to a plentiful rainfall this summer, water sales have been lower than forecasted. July 24, 1990 98 Power Sales for Resale are Down. The resale market continues to be very lackluster. A total of$1.6 million was sold in June, 1989 as compared to $400,000 in sales for resales in June, 1990. The downturn in sales is due to the availability of more generation in the state with Consumers Power Midland project being on line. Report on a Customer Confrontation. An incident involving a customer confrontation occurred on July 23 with respect to a water service that was over nine months delinquent. General Manager Pandy reported on the details involving a BWL Water Field Representative being grabbed and pushed off the customer's property while cleaning the meter curb box, which had been jammed with stones. This incident necessitated the involvement of the BWL's Security Administrator and the Lansing Police Department. Report on the C.I.C. Prepaid Metering System. General Manager Pandy gave a comparative report on his residential electric consumption using the C.I.C. Prepaid Metering System versus his regular metering system for the same period last year. He noted that results clearly indicate the use of a prepaid meter encourages conservation. Comparing the five-month trial period with the same time last year, Mr. Pandy's electric consumption dropped from an average of 15.1 kWh per day to 10.5 kWh. per day. REMARKS BY COMMISSIONERS Discussion Regarding Sewerage Billings. Commissioner Jessop stated that the time is right for the BWL to consider a separate sewerage billing system, independent from the BWL's monthly utility statement. Commissioner Evans suggested a separate and distinct bill identifying it as the City of Lansing Sewage Disposal System, but inserting the bill with the BWL utility bill. Following lengthy discussion on the ramifications of this change, staff agreed to: (1) Review this issue in greater detail as it relates to specific procedures and (2) Complete a costing analysis of associated costs being absorbed by the BWL by providing this service to the City. A report on the findings and staff's recommendation will be submitted to the Board. EXCUSED ABSENCES BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That the absences of Commissioners Hassler and Sebolt be excused. Adopted unanimously. On motion of Commissioner O'Leary, the Board adjourned at 5:55 p.m. Zvvw Ma E. S a, Secreta ry ry Filed: July 26, 1990 James D. Blair, City Clerk 78 June 26, 1990 Office, Board of Water and Light Lansing, Michigan Tuesday, June 26, 1990 The Board of Commissioners met in regular session at 5:30 p.m. The meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Sebolt, Strolle, and Williams 8 Quorum The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of May 22, 1990 be approved as Minutes mailed. Adopted unanimously. Public Comments CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Thank-you note A thank you note was received from Councilmember Lou Adado for flowers from Councilman sent during his hospitalization. Lou Adado Placed on file. The Personnel Committee Report was read by Commissioner Jessop. PERSONNEL COMMITTEE REPORT June 26, 1990 Personnel Coam. Board of Commissioners Report re: 1) Non- Board of Water and Light Bargaining Wage Lansing, Michigan and Salary Plan, 2) Employment Dear Ladies and Gentlemen: Agreement for General Manager The Personnel Committee met on Wednesday June 6, 1990 to discuss and consider the following items: 1. Non-Bargaining Wage & Salary Plan review and compensation recommendation for Fiscal Year 1990-91, as submitted by staff. 8T 4 Wd 82 NM o6. N U 3 1'C', ,',1 110 9NISNVI '0032 79 June 26, 1990 2. . Employment Agreement for the General Manager. Present were Personnel committee Members Jessop (Chair) , Strolle, and Williams (Alternate) . Also present was Commissioner Hassler. Following discussion and review of the (a) Wage & Salary Administration for Non-Bargaining Unit employees, (b) the wage survey conducted by the Human Resources Division, (c) percentage increase in the Bureau of Labor Statistics Consumer Price Index for February 1989 V. February 1990, and (d) Bargaining Unit and Non-Bargaining Unit salary comparison, the Committee adopted the following motions and recommends Board approval: Resolution 90-6-1 NON-BARGAINING WAGE & SALARY PLAN I. WAGES AND SALARIES A. That all current, Non-Bargaining Unit salary ranges be increased 4.0`k for Fiscal Year 1990-91. B. That all current Clerical and Technical employees in full-time regular positions receive a 4.0`k General Increase. C. That the matrix for Performance Increases for First- Line Supervisory, Professional-Middle Management, and Administrative employees be set at 4.0%, and D. That Performance Increases be administered for Clerical and Technical employees as in the past. II. PART-TIME EMPLOYEES That all Part-Time employees receive a 4.0`k General Increase, rounded up to the next full nickel, effective July 1, 1990. III. HEALTH CARE BENEFITS That the General Manager be authorized to approve any adjustments necessary to Health Care Coverage for Non- Bargaining Unit employees, in order to better manage health care costs. Resolution 90-6-2 EMPLOYMENT AGREEMENT FOR THE GENERAL MANAGER That the Employment Agreement for the General Manager, as revised, be submitted to the Board of Commissioners with the recommendation that it be adopted as submitted. Respectfully submitted, /s/ E. Lane Jessop, Chair Personnel Committee 83 June 26, 1990 CONS SF RIICES (Continued) (Res. No. 90-6-6) Further, that the sewerage charge ifoer hfurthamount hand- $59,982.59 be referred to the City adjusted ling. The BWL's portion, $384,386.54, will be by any payments received and posted to the accounts prior to the end of June and will be charged against the $615,000.00 reserve set forth on the balance sheet for "Uncollectible Accounts". -------------------- This accounting procedure is done on an annual basis. The above total amounts to •274% of total billed sales revenue for the 12 months ending pr il 990- Comparison of other utilities (1989 figures) : Kansas City Public Power Revenue $133,236,274 79� Write-off $1 ,050,061 = Detroit Edison Revenue $3,187,861 ,000 32� Write-off $10,040,165 = Consumers Power Company - N/A (Consumers Power now sells their accounts receivable to Citi Corp.) -------------------- HUMAN RESOURCES Res. No. 90-6-7 That Messrs. Joseph Mannino and Kenneth Mier, Instru- ment & Control Specialist and Power Plant operator B Water Treatment at Eckert Station respectively, b Suggestion award to for Joseph Mannino and awarded a total of $1 38.26 (to be divided equally) their suggestion, number 1990-121 , to install vinyl Kenneth Mier revent damage from deflectors above control f°omdoveohead solenoid valves. condensed water dripping This alleviates the need for periodic repairs caused by electrical shorts in the acid and caustic pump controls and residue deposits on trimpots. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $632.60 in the first year. 85 June 26, 1990 PENSION (Continued) t Gerald K. Mallery, Overhead Supervisor in Line That Res. No. 90-6-11 monthly on a nthly pension of Construction, be placed He has selected pension approved for $1 ,273.56 effective August 1 , 1990. Option III with the provision that after his death, Gerald K. I�lallery wife,if his Ellen e v h receive30% or $382.07 per month fortheresthofwll her life. Mr. Mallery has worked for the BWL for 24.20 years and is 62 years of age. TREASURER/CONTROLLER That the Board pay $4,478,590 to the City of Lansing Res. No. 90-6-12 as a return on city equity t in its utility system. Authorization to pay $4,478,590 to City as Further, that all Receiving fund Geri bedtransferreds remaining following the above payment a return on City Equity effective June 30, 1990 to the Special Project fund for future capital projects. -------------------- The Receiving fund will have an estimated balance of $7,100,000 at fiscal year end. Cash in the Receiving fund not required to satisfy other requirements of the Revenue Bond Resolution adopted October 24, 1989 is available for any lawful purpose. All of the require- ments of the 1989 Bond Resolution will be satisfied as of June 30, 1990. WATER Res. No. 90-6-13 Adopt the following resolution: Authorization to amend WHEREAS, the Board of Water and Light desires to develop the Greater Lansing regional water supply in a Joint Action Water Study reliable, efficient and low cost manner, and, resolution previously stud adopted by Board on 3-2� WHEREAS, an engineering and economic feasibility Y (Res, 89-3-11) is necessary to examine alternatives and make recom- mendations relative to the technical and financial aspects of these alternatives, and, June 26, 1990 87 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-6-3, 90-6-4 and 90-6-5 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-6-6 (Consumer Services) of the General Manager's Recommendations be approved. BWL to pursue General Manager Pandy advised that the BWL reserves any rights that bankruptcy pro- remain for land and buildings under the bankruptcy proceeding with ceedings re: respect to Lindell Drop Forge Company. The bankruptcy claim by BWL Lindell Drop totals approximately $80,000 for this major account. The BWL will Forge pursue the bankruptcy proceeding, and any amount which can be recovered will be applied against the uncollectible amount. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-6-7 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-6-8 through 90-6-11 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-6-12 (Treasurer/Controller) of the General Manager's Recommendations be approved. tents re: using Commissioner Belen suggested deleting all references to the Surplus Fund the term surplus in proposed Resolution 90-6-12, to avoid misleading conclusions with the fund term "surplus." 89 June 26, 1990 continues to receive better than average positive ratings on communicating with customers and concern for the average customer. Dr. Morrison indicated, however, that several measures of service characteristics obtained significantly lower levels of positive response in 1990, including concern for the average customer, helpfulness, and safety consciousness. He noted that satisfaction with telephone contacts declined for the second straight year. A question and answer period followed with Commissioners requesting more specific details with respect to the methodology. The survey was based on a random sample of 610 interviews, with an estimated sampling error of approximately +4.1 percent. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following items: COMMISSIONERS BELEN AND JESSOP REAPPOINTED. The Lansing City Council has reaffirmed the reappointment of Commissioners Lane Jessop and Sister Mary Janice Belen, R.S.M. , for another four-year term ending June 30, 1994. Commissioner Jessop has served on the Board for 16.5 years and Commissioner Belen has served for 15.5 years. The Board applauded these two long-standing Commissioners. SUPPLEMENTAL AGREEMENT FOR FLY ASH HAULING. A supplemental agreement to an existing agreement has been negotiated with Michigan Ash Sales Company to haul additional flyash for flowable fill applications. This will reduce the amount of ash that is hauled to landfills by 10,000 to 30,000 tons per year. OPTION TO PURCHASE PROPERTY FOR A DOWNTOWN SUBSTATION TERMINATED. Based on the environmental analysis of two parcels under consideration for the Downtown Substation, the BWL will not be exercising the option dated March 15, 1990 to purchase the property at 703 E. Shiawassee Street and will be discontinuing negotiations with the City Parks and Recreation Department regarding the Oak Park Field Office. The analysis indicates the presence of significant volatile organic chemicals (vOC's) and hydrocarbons with elevated levels on the Oak Park Field Office Site. WATER REGIONALIZATION STUDY STATUS REPORT. The water regionalization study is receiving positive support from surrounding townships. Water Utility Director Clyde Dugan reported on the status of community participation in the study as of June 25: Agreed to Participate: • Bath Township • Lansing BWL Y Delhi Township • Meridian Township s Delta Township • Michigan State University • DeWitt Township • Watertown Township June 26, 1990 91 BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER HASSLER That the Board return to regular session (7:44 p.m.) Adopted unanimously. On motion of Commissioner Strolle, the Board adjourned at 7:45 p.m. Mary E. va, Secretary Filed: June 29, 1990 James D. Blair, City Clerk ctober 16, 1990 144 3 C. The Paid Retirement Allowance for accumulated sick leave (maximum 168 ..................._.__ ....._................_........_.............._._.._.......... .._.... days) If the employee's age + service is greater than 80, at retirement, accumulated sick leave will be paid off according to the following chart: Age + Service Percent Age + Service Percent up to and Paid up to and Paid including including 80 50% 93 76% 81 52% 94 78% 82 54% 95 80% 83 56% 96 82% 84 58% 97 84% 85 60% 98 86% 86 62% 99 88% 87 64% 100 90% 88 66% 101 92% 89 68% 102 94% 90 70% 103 96% 91 72% 104 98% 92 74% 105 100% D. Sick Time The amount of Paid Time Off which can be used for family ..........._................................ illness will be increased from three (3) to five (5) days. E. Bereavement time will no longer be subtracted from Paid Time Off Credit. F. Vacation ..................................... 1. Employees with breaks in service will be credited with past service for the purpose of granting vacation. 2. Employees with twenty (20) years of service will be granted twenty-five (25) days of vacation. 3. Management may offer employees immediate payback for voluntarily working through scheduled vacation to accommodate critical work loads. G. Holidays: The federally observed holiday for Martin Luther King, ............................... Jr. 's birthday will be added. 145 October 16, 1990 4 H. Premiums: ...........I.........................- 1. Shift premiums will be increased to $.60 per hour for the afternoon shift and $.90 per hour for the evening shift, retroactive to 7/1/90. 2. Beginning pay period 11/04/90, a Saturday Flex premium of 25% will be paid to non-shift employees whose normal work schedule is flexed to include Saturdays. I. Flexible Scheduling: Effective the pay period beginning 11/04/90, ..............__........._............................._............ . employees in affected departments will be subject to flexible scheduling. J. Overtime Effective the pay period beginning 11/04/90. ' .__.............1....._....... 1. Overtime will be paid at 1.7 times: a. for up to two (2) hours of scheduled (24 hour notice) overtime contiguous with regular work schedule. b. for the first eight (8) hours of scheduled (5 days notice) overtime on the first day off not including Sundays and Holidays. c. for the eight (8) hours between forty (40) and forty-eight (48) hours when an employee is on a regular 12-hour shift schedule (36 hours one week and 48 hours the next) . 2. Overtime will be paid at 2 times: a. for any unscheduled overtime; b. after two (2) hours scheduled contiguous OT; c. after eight (8) hours scheduled OT on first day off; d. on the second overtime day; e. after 50 hours worked in a week; f. on Sunday; g. on holidays when the holiday is a scheduled part of the employee's normal work week; h. if the overtime for the department goes over the average overtime hours for the department over the three (3) previous fiscal years. 3. Overtime will be paid at 2.5 times: a. after 12 hours of continuous work; b. for unscheduled work on a holiday. ctcber- 16, 1990 146 5 K. Other ........... .... 1. The shoe allowance will be increased from $7.50 to 50% of the cost ...... ................._.........................._............. . up to a maximum of $40 for a pair of safety shoes per year. 2. Tools will be purchased for employees entering into ......................... classifications which require tools. Employees who have already purchased tools have the option of selling them back to the BWL at retirement, or when leaving the classification, at 75% of the current replacement cost. 3. Licensing costs related to training, testing, fees, and renewal will be paid by the BWL. 4. Share the Success will be extended through 6/30/93 with payments .................._................................................ ....... ranging from 0-5%. a. Employees who are on leave for any portion of the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. b. Employees who retire during the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. Prior to this time, these employees received no Share the Success payments. 5. Bi-Weekly Pay Periods: Effective 11/04/90, all employees will ................................... .... . have bi-weekly pay periods ending on Saturday. L. Attendance: Two focus groups will be established, one for non-exempt .................._..._........._. employees (eligible for overtime) and one for exempt employees (not eligible for overtime) for the purpose of examining attendance policies for the two groups. M. Drug Testing 1. Effective 12/04/90 a new Fitness For Duty policy and a just cause ......................................_................................. drug testing program will be implemented to provide for screening, testing, and follow-up programs which relate to the maintenance of a healthy, safe, and productive work environment. 2. A task force will be formed to review the concept of random substance abuse testing, guidelines, procedures, security and consequence standards, and their applicability to the Non Bargaining Unit, prior to a determination regarding implementing a random substance abuse testing program for the Non Bargaining Unit. N. Increases ........................................ 1. Non-Exempt employees will receive a $250 cash bonus on 12/13/90. 2. Exempt employees will have their contribution to the 401A plan increased from 2.5% to 3.0% beginning April, 1991. 3. As in past, comparison to the Bargaining Unit will be taken into consideration when recommending a General Increase for 7/1/91. 115 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, September 25, 1990 The Board of Commissioners met in regular session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Evans, Hassler, Jessop, O'Leary, Sebolt, Strolle, and Williams - 7 Absent: Commissioner Belen- 1 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) The Invocation was given by Chairman Hassler. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS That minutes of regular session of August 28, 1990 be approved as mailed. Adopted unanimously. PUBLIC COMMENTS CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY'PRIOR TO ADJOURNMENT. No persons spoke. SZ E Wd T 130 061 M 9NISNb-i 'a0�d Septenber 25, 1990 116 PERSONNEL COMMITTEE REPORT September 25, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Personnel Committee met on September 20, 1990 to discuss and consider the following items: 1. Pension Plan Review 2. Military Leave Policy 3. Union Negotiation Status 4. Appraisal of the General Manager, Internal Auditor, and Secretary of the Board Present were Commissioners Jessop (Chair), Hassler, Strolle, O'Leary and Williams. Absent was Commissioner Sebolt. Pension Plan and Related Matters The Committee reviewed and discussed the results of the following reports: 1. Status of investments of the Pension Fund as of June 30, 1990. 2. Financial Statements of the Plan for Employees' Pensions for the years ended June 30, 1990 and 1989. 3. An actuarial valuation of the Pension Plan and a supplementary actuarial valuation on Retirant Health Insurance, conducted by Gabriel, Roeder, Smith & Company. Recommendations from the Personnel Committee relative to the items outlined have been submitted to the Pension Fund Trustees for action on September 25, 1990. Military Leave Policy The need to review the Board of Water and Light's Leave of Absence Policy due to the Middle East crisis in Iraq was discussed. The General Manager reported that BWL employee,Oliver O. Kingsbury, was placed on U. S. Army Reserve involuntary active duty for at least ninety days. This predicament, has brought to light the necessity to review the BWL's procedures for military leave. After discussion, the following motion was approved by the Committee for consideration by the Board of Commissioners: September 25, 1990 118 RESOLVED FURTHER, That the ratings for the three persons reporting to the Board be hereby confirmed as follows: General Manager Joseph Pandy, Jr. - Outstanding Internal Auditor Kellie Willson - Outstanding Secretary of the Board Mary Sova - Outstanding Respectfully submitted, E. Lane Jessop, Chairperson Personnel Committee BY COMMISSIONER WILLIAMS- SECONDED BY COMMISSIONER STROLLE That the Personnel Committee Report, including Resolutions 90-9-5 and 90-9-6, respectfully, be approved as submitted. Adopted unanimously. 119 September 25, 1990 September 25, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-9-1 That it be noted that copies of the audit reports and the report on the system of internal control were filed with City of Lansing officials by Deloitte& Touche on September 14, 1990. That the audit of the Board of Water and Light's financial statements covering fiscal year 1990 conducted by Deloitte &Touche and the report on the system of internal control be received and placed on file. That the audit of the financial statements of the Plan for Employees'Pensions of the Board of Water and Light for fiscal year 1990 be received and placed on file following review by the Personnel Committee and the Pension Trustees. That the Secretary of the Board be requested to file copies of both audit reports and the report on the system of internal control with the State Treasurer as required by law. That a condensed copy of the BWL audit be published in The State Journal. That it be noted the external auditors found no significant items which warranted submission of a management letter. -------------------- ENGINEERING PLANNING Res. No. 90-9-2 Authorize the BWL to purchase property from Mill Supplies Corporation in the amount of$57,500 for a booster pumping station for Delhi. The legal description of the property is: The south 1/2 of Lot 20, Midway Industrial Center. -------------------- This property is intended for use as a booster pumping station for Delhi. It has successfully passed an environmental site assessment by Environmental Engineering. It has been reviewed and approved by MDPH and requires no special use permit. -------------------- September 25, 1990 120 HUMAN RESOURCES Res. No. 90-9-3 That Bud Brown, a Field Supervisor in Construction Services, be awarded a total of$81.75 for suggestion proposal number 1990-240,to replace the steel tailgate markers on flyash trucks 12, 100 and 106 with rubber belting. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$327.00 in the first year. -------------------- Res. No. 90-9-4 That Alton Parker, a Station Shift Supervisor in Moores Park Operations,be awarded a total of$165.00 for suggestion proposal number 1990-078, to install a valve in the city water line to Moores Park to allow isolation of a large section without bypassing the zeolites. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$900.00 in the first year. -------------------- Respectfully submitted, Joseph Pandy,Jr. General Manager JP/bg 121 September 25, 1990 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-9-1 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-9-2 (Engineering Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 90-9-3 and 90-9-4 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. General Manager Tandy presented two additional resolutions for Board consideration. There being no objections, the following items were offered: Establishment of Water District No. 67 in the Charter Township of DeUii (Resolution No. 90-9-8) RESOLVED, That the Board agree to serve water to proposed Water District No. 67, Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 1, 1990, and that in accordance with the agreement between the Board and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supply in Delhi Township, the Board advises officials of Delhi Township as follows: 1. The Board will accept Water District No. 67 established by Township resolution on May 1, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $15,952.00 non- refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LXVII) covering the furnishing of a potable water supply in Water District No. 67. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. September 25, 1990 122 Further, that upon receipt of the sum of$15,952.00 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXVII) to furnish a potable water supply in Water District No. 67. The geographical area of Water District No. 67 is as follows: Dutch Meadows No. 3 Subdivision Lots 31 thru 39 To provide a potable water supply within the proposed new district requires the installation of 695 feet of watermain and one (1) fire hydrant at an estimated cost of$15,952.00. The main extension will serve nine (9) residential customers. One-time connection fees will amount to $4,500.00. Estimated annual revenue is $2,700.00. Water mains to be installed in Fall of 1990 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. General Manager Pandy noted that this project has been on hold since May, 1990, pending final authorization by the developer. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-9-8 (Water Utility), as recommended by the General Manager, be approved. Adopted unanimously. Purchase of General and Excess Liability and Business Auto Insurance (Resolution No. 90-9-7) _ RESOLVED, That staff be authorize to purchase the following insurance coverages: $1 MM Comm. Gen. Auto $10 MM Ex. $5 MM Ex. $10 MM Ex. Liability Liability Liability Liability Liability Agency: Lyman & Lansing Lansing Lansing To be Sheets Ins. Agy Ins. Agy. Ins. Agy. negotiated Representing: Gulf New National Lexington To be Ins. Co. Hampshire Union Ins. Co. negotiated Premium: Not to exceed $296,750 $ 74,423 $215,000 $ 55,080 $ 76,500 All of the above coverages are for the one-year period from September 30, 1990 to September 30, 1991. 123 September 25, 1990 ------------------- The Board's expiring coverages are with the Lansing Insurance Agency at an annualized premium of$659,965. The new coverage (with minor changes to the inland marine coverage) would have an estimated annual premium of$718,434 with $10 million higher liability insurance limits. Mourer-Foster, Inc. also bid for part of the coverages. None of the agents had the ideal coverage terms, conditions and pricing, so the coverages had to be assembled. It was also particularly difficult this year because excess liability insurance bids were modified by the agents starting shortly after the bids had been received. It was simply not desirable to take the complete package from one agent. The above represents the best evaluated coverage combination. --------------- General Manager Pandy remarked on the timeliness of this recommendation. He explained that bids for the above insurance coverages were solicited in August, and that some of the bids were found not to be in compliance with specifications. Some of the bids were not acceptable as modified by the insurers and new bids were procured. Mr. Pandy further noted that due to last minute premium modifications, staff is continuing to negotiate with local insurance agents on the additional $10 million excess liability coverage. Commissioner Jessop pointed out that in his opinion the Lyman & Sheets Insurance Agency and the Lansing Insurance Agency should have been prepared well in advance to bid the BWL's liability insurance coverage. He noted that the two agencies have previously submitted bids for liability insurance coverage with the BWL and are knowledgeable of the expiration dates. Commissioner Jessop stated that he will not vote for future renewal of insurance policies from the two agencies unless their bids are submitted at least thirty days in advance. Following discussion, the Commissioners concurred that evaluation of bids for the liability insurance premium should be completed with sufficient time to submit a recommendation to the Board for action no later than thirty days prior to the current coverage expiration date. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-9-7 (Treasurer/Controller), as recommended by the General Manager, be approved. Adopted unanimously. September 25, 1990 124 GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following activities: Audited Financial Statements. The BWL received a clean audit for both the utility's operating funds and the employees' pension fund. Mr. Pandy congratulated all employees involved in assisting the independent auditors. Mr. Terry Fuller of Deloitte & Touche remarked that there were no adjustments to the account and made no recommendations for improvements. He stated that a management letter was not submitted this year since there were no internal irregularities to report. He invited questions from the Commissioners. Community Corporate Challenge. The BWL took a proud third place in the 1990 YMCA Community Corporate Challenge involving approximately forty teams. This event brings together employees from area businesses to compete in various athletic competitions held August 23-25. Team members who were present in the audience were recognized. Jim Chandler and Karen Pier were responsible for organizing this effort. Death Benefit Paid to Tuan Salazar's Widow. General Manager Pandy announced that The Hartford Insurance Company paid a death benefit in the amount of$100,000 to the widow of Juan Salazar through the BWL's business travel accident policy. A similar benefit was paid to the estate of Ron Ruby in 1989. General Manager Pandy reported that when this policy was originally underwritten, it was not intended to cover local travel within the BWL's service area. The policy has recently been amended to specifically exclude local travel. Coal Supply Status. The BWL is continuing to move toward the 100-day coal supply goal as authorized by the Board. As of September 15, the coal supply was at 89 days. This is the time of year when the supply of rail cars are short because they are shipped toward the lakes with the close of the shipping season. General Manager Pandy noted that a healthy coal stockpile will benefit the BWL, particularly with the energy market being impacted due to the Middle East crisis. U.S. Geological Services (USGS) Water Availability Study. In conjunction with other water systems in the Greater Lansing area, The BWL is participating with the U. S. Geological Services with their Water Availability Study. This study will focus on Central Michigan's geological formations, water quantities and quality, and impacts of future withdrawals for this principle water source--the Saginaw Aquifer--for the Greater Lansing Area. General Manager Pandy further reported that this study is a step beyond the regionalization study, which looks at the conditioning plants and the interconnects. The USGS Water Availability Study will determine (1) whether the aquifer can handle water needs twenty years in the future, (2) what recharge considerations are, (3) what recharge areas need to be protected, (3) where wells should be located, (4) siting future wells, and (5) other related issues that mutually protect the aquifer. Once approved, this study will be commissioned by the Tri-County Regional Planning Commission and will require funding from all interested communities. The BWL has budgeted $100,000 for this study under capital project 91-25C. District Cooling System. The BWL Steam Utility is continuing to pursue the chilled water project with preliminary engineering well underway. Steam Utility Director, Joette Woodard-Yauk, has learned that federal funds are available for projects of this 125 September 25, 11990 nature. She is in the process of applying to the U. S. Department of Energy for a grant to assist with funding the final phase of the engineering. Committee of the Whole Meeting. The results of the Demand Side Management Study will be one of the topics at the next Committee of the Whole meeting. Staff will be meeting with representatives of the Lansing Industrial Council of the Lansing Regional Chamber of Commerce to solicit their input. At the request of the Lansing Industrial Council, the Commissioners agreed to reschedule the date of the Committee of the Whole meeting, originally set for October 9, to Tuesday, October 16 at 5:30 p.m. This change will allow sufficient time for feedback from the Lansing Industrial Council prior to the Committee of the Whole meeting. Building Exterior Renovation - Dye Water Conditioning Plant. BWL Project Engineer Chandrakant Khiroya gave a presentation on an alternative plan to reface the Dye Water Conditioning Plant. The exterior of the building has experienced spalling of concrete due to the age of the facility and freeze-thaw cycles. The initial refacing plan called for insulating north, west and south exterior walls, covering them with a metal jacket. In an attempt to retain the original architectural character of the building, Project Engineering staff has come up with an alternate proposal. The plan entails sandblasting the exterior east, south and partial west side of the building, washing off the impurities, and sealing the cracks to restore the original beauty of the structure. On the basin walls (partial west and partial south walls), new wall panels comprised of durable Styrofoam covered with a thin layer of concrete would have excellent potential to achieve the architectural results desired. The original estimate for this capital project was approved at $340,000. The increased cost for the alternate proposal would increase the cost by $105,000, for a revised total of$445,000. Mr. Khiroya noted that the increased cost, when compared to the metal wall originally proposed, would in time save money in maintenance costs. Also, the proposed wall panels would have a better insulation value and add to the aesthetic beauty of the building. Discussion and a question and answer period followed. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS That staff be authorized to increase the amount of the capital project to renovate the building exterior of the Dye Water Conditioning Plant by $105,000 . The revised cost of this project totals $445,000. Adopted unanimously. EXCUSED ABSENCES BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS That the absence of Commissioner Belen be excused. Adopted unanimously. On motion of Commissioner Evans, the Boar�d;djo reed at 6:16 p.m. . S Filed: September 28, 1990 M o a, ecretary James D. Blair, City Clerk 99 August 28, 1990 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, August 28, 1990 The Board of Commissioners met in regular session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Strolle, and Williams - 7 Absent: Commissioner Sebolt - 1 The Secretary declared a quorum present. Assistant General Manager Wolfe, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) The Invocation was given by Chairman Hassler. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER BELEN -- SECONDED BY COMMISSIONER WILLIAMS That minutes of regular session of July 24, 1990 be approved as mailed. Adopted unanimously. PUBLIC COMMENTS CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. TZ Z Wd 00 MY 06. H3 ,,?.,0 0NISNVI *00311 August 28, 1990 100 August 28, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: CONSUMER SERVICES Res. No. 90-8-1 That revisions to the Customer Security Deposit Policy adopted by Board 3-5-85 (Resolution 85-2-5) , be amended as follows: a. Changes to reflect new procedures implemented by the Combined Billing System. b. Details of the policy are documented in a Consumer Services Division Standards and Guidelines manual. (Copy on file in the Secretary's office) . C. Changes to the policy are summarized as follows: Sec. 5-3: Change implementation date from March 1 , 1987 to October 1 , 1990. Sec. 5-6: Include "as otherwise provided by law". Sec. 5-8: Summary of policy and interest clause. Sec. 5-9: Omit security deposit details. Sec. 5-18: Change Director of Finance to Director of Consumer Services; increase $19.99 to $99.99. -------------------- Neal Housler's memo is attached showing complete language changes in Section Five. You will see all new. language in italics and that to be omitted shown with strike through. (See Page 109 of Minutes.) -------------------- 101 August 28, 1990 HUMAN RESOURCES Res. No. 90-8-2 That Mr. Curt Gates, a Construction Mechanic Leader in Construction Services Department, be awarded a total of $129.18 for his suggestion, number 1990-099, to install a guide on the hydraulic hose reel of Construction Services' truck #168. Without a guide, employees have often found that the hose tried to wind against the outside of the reel, causing abrasion damage to the duplex hose, which must then be replaced in its entirety, since duplex hose cannot be spliced. By implementing this proposal, it is estimated that the BWL will realize a net savings of $541 .78 in the first year. ---------------------- TECHNICAL SERVICES Res. No. 90-8-3 That the Board consents with the terms and conditions of Consent Order No. EPA-5-90-28 submitted by U.S. EPA for Ottawa Station and authorizes the General Manager to execute said Consent Order and carry out its provisions. -------------------- John Elashkar's letter and the Consent Order are attached. -------------------- TREASURER/CONTROLLER Res. No. 90-8-4 Authorize the sale of two Board-owned vehicles, which have been replaced, through competitive bids. The vehicles to be sold are BWL vehicles #77 and #190. -------------------- An itemized list of the obsolete vehicles to be sold is on file with the Secretary of the Board. tidgust 28, 1990 102 TREASURER/CONTROLLER (Continued) Res. No. 90-8-5 Purchase the following insurance coverage: Pension and Welfare Fund Fiduciary Responsibility Insurance for the three (3) year period from September 1 , 1990 to September 1 , 1993 from the Lyman and Sheets Agency representing The Aetna Casualty and Surety Company, for an annual premium of $18,500. This was the best evaluated bid of those received. -------------------- The Board's expiring similar insurance coverage is with the above agency and insurance company at an annual cost of $18,389. The annual aggregate of lia- bility would remain the same at $10 million with a de- ductible of $10,000. Other bids received from the Lyman and Sheets Agency for similar coverage were for the Cincinnati Insurance Company at a 3 year prepaid premium of $67,212, and from the Chubb Group of Insurance Companies at an annual premium of $16,500. -------------------- Res. No. 90-8-6 Purchase the following insurance coverage: Specific Excess Workers' Compensation Insurance for the one year period from September 1 , 1990 to Sep- tember 1 , 1991 from Hall & Kennedy, Inc. , representing The Aetna Casualty and Surety Company for an annual premium of $37,520 subject to adjustment. This was the best evaluated bid of those received. The limit of liabilty is $20 million with a specific retention of $500 thousand. -------------------- The Board's existing similar insurance coverage is with the above agency and insurance company at an annual cost of $28,995 before adjustments. The other bidder for similar coverage was the Lyman and Sheets Agency, representing Midwest Employers Casualty Company at a comparable annual premium of $34,867 and representing National Reinsurance Company at a comparable annual premium of $64,000. -------------------- 103 August 28, 1990 TREASURER/CONTROLLER (Continued) Res. No. 90-8-7 Retain the services from Total Compensation Services, Ltd. as the BWL's Service Company for the Workers' Compensation Self Insurance Program for the three (3) year period from September 1 , 1990 to September 1 , 1993, at an annual fee of $19,500, or a three (3) year fee of $58,500. This was the best evaluated bid of those received. -------------------- The Board's expiring similar contract is with the Corporate Service, Inc. at an annual cost of $30,000, or $90,000 for three (3) years. Based upon a seven (7) year average of claims, the other bids or costs received for the service company contract included- Self Insured Risk Services: $98,835 Continental Loss Adjusting Services, Inc: $98,268 Penn General Service Corporation: $93,700 Corporate Service, Inc: $91 ,500 Adjusting Services Unlimited, Inc: $91 ,210 Crawford and Company: $89,918 Gallagher Bassett Services, Inc: $87f327 Consolidated Risk Management Services: $85,500 The Michigan Municipal Workers' Compensation Fund provided an estimated annual premium quotation of $745,615 before any dividend. -------------------- Res. No. 90-8-8 That Resolution 89-8-2 regarding the policy on Authority to Sign be revised as follows: That not less than two (2) of the following officers be required to sign checks for the general checking account at First of America Bank, the payroll/pension checking account at Michigan National Bank, and the customer deposit refund checking account at Manufacturers Bank of Lansing drawn on and after August 29, 1990. Director and General Manager Assistant General Manager Treasurer/Controller Director of Technical Services Secretary of the Board. August 28, 1990 104 TREASURER/CONTROLLER (Continued) -------------------- (Res. No. 90-8-8) The reorganization of May 14, 1990 created a title change for the Director of Engineering to Director of Technical Services. -------------------- WATER Res. No. 90-8-9 That the Board rescind resolution 90-4-3 approved April 24, 1990 for Water District No. 2, Watertown Township and that the Board agree to serve water to the proposed Water District No. 2, Watertown Township, as requested by resolution of the Watertown Township Board on June 18, 1990, and that in accordance with the agreement between the Board and the Charter Township of Watertown dated November 25, 1986, covering the furnishing of a potable water supply in Watertown Township, the Board advised officials of Watertown Township as follows: 1 . The Board will accept Water District No. 2 established by Township resolution on June 18, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $56,885.60 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement II) covering the furnishing of a potable water supply in Water District No. 2. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $56,885.60 from the Township, the project be approved for install- ation, .and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement II) to furnish a potable water supply in Water District No. 2. 105 August 28, 1990 WATER (Continued) (Res. No. 90-8-9) The geographical area of Water District No. 2 is as follows: Grove Road: Grand River northerly 2,110 feet To provide a potable water supply within the proposed new district requires installation of 2, 110 feet of 12-inch water main and hydrants at a cost of $69,357.40. The main extension will serve four (4) commerical customers. One-time connection fees will amount to $4,800.00. Estimated annual revenue is $3,600.00. Water mains to be installed in the fall of 1990 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Res. No. 90-8-10 That the Board agree to serve water to proposed Water District No. 66, Delhi Township, as requested by resolution of the Delhi Charter Township Board on July 17, 1990, and that in accordance with the agree- ment between the Board and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supply in Delhi Township, the Board advises officials of Delhi Township as follows: 1 . The Board will accept Water District No. 66 es- tablished by Township resolution on July 17, 1990, and will provide a potable water supply to said district. 2. The Township will be required to make a $122,452.32 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LXVI) covering the furnishing of a potable water supply in Water District No. 66. August 28, 1990 106 WATER (Continued) (Res. No. 90-8-10) 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $122,452.32 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXVI) to furnish a potable water supply in Water District No. 66. The geographical area of Water District No. 66 is as follows: Beginning on Dell Road at east plat line of Lamoreaux #3 Subdivision; thence eastward 1347 feet to east side of College Rd. ; thence beginning at north side of Dell Road southward along College Road 2620 feet to north side of Willoughby Rd. ; thence beginning at east side of College Road westward 2134 feet to existing water main. To provide a potable water supply within the proposed new district requires the installation of 5852 feet of water main and fire hydrants at an estimated cost of $174,275.92. The main extension will serve 50 residential customers now under construction. One-time connection fees will amount to $25,000.00. Estimated annual revenue is $15,000.00. Water mains to be installed in Fall of 1990 and Spring of 1991 following the receipt of the Township's non- refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Res. No. 90-8-11 That the Board agree to serve water to proposed Water District No. 67, Delhi Township, and that in accord- ance with the agreement between the Board and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supply in Delhi Township, the Board advises officials of Delhi Township as follows: 107 August 28, 1990 WATER (Continued) (Res. No. 90-8-11 ) 1 . The Board will accept Water District No. 67, and will provide a potable water supply to said district. 2. The Board and the Township are to enter into a written agreement (Supplement LXVII) covering the furnishing of a potable water supply in Water District No. 67. 3. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXVII) to furnish a potable water supply in Water District No. 67. The geographical area of Water District No. 67 is as follows: Beginning approximately 60 feet east of Frank St. along north side of Nancy St. thence eastward 366 feet to east side of Grovenburg Road. To provide a potable water supply within the proposed new district requires the installation of 366 feet of water main at an estimated cost of $8,670.54. The main extension will serve two residential customers. One-time connection fees will amount to $1 ,000.00. Estimated annual revenue is $600.00. Water mains to be installed in the fall of 1990 follow- ing the signing of the agreement. -------------------- Res. No. 90-8-12 That the Board agree to serve water to proposed Water District No. 68, Delhi Township, and that in accordance with the agreement between the Board and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supply in Delhi Township, the Board advises officials of Delhi Township as follows: August 28, 1990 108 WATER (Continued) (Res. No. 90-8-12) 1 . The Board will accept Water District No. 68, and will provide a potable water supply to said district. 2. The Board and the Township are to enter into a written agreement (Supplement LXVIII) covering the furnishing of a potable water supply in Water District No. 68. 3. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. , Further, that the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXVIII) to furnish a potable water supply in Water District No. 68. The geographical area of Water District No. 68 is as follows: Beginning approximately 180 feet east of Lanier Dr. along north side of Horstmeyer Rd., thence eastward 310 feet to east side of Grovenburg Road. To provide a potable water supply with the proposed new district requires installation of 310 feet of water main at an estimated cost of $7,343.90. Water mains to be installed in the fall of 1990 follow- ing the signing of the agreement. -------------------- Respectfully submitted, J. D. Wolfe Assistant General Manager JDW/bg 109 August 28, 1990 WATER&LIGHT WORKING HARD TO SERVE YOU P.O. Box 13007 123 W. Ottawa Street Lansing, MI 48901-3007 MIImO: 517.371.6000 August 16, 1990 TO: Mr. Joseph Pandy, Jr. FROM: Neal Housler SUBJECT: Change of Board Policy Regarding Combined Billing/Security Deposits The October 1, 1990 conversion to a new combined water and electric billing system will affect some existing Board policies. It is recommended that the following changes be submitted to the Board on August 28, 1990. Note: All new language has been italicized. Statements with strikes through them are to be replaced by the new language. SECTION FIVE CONSUMER SERVICES Changes Sec. 5-3 1, Billing, A combined monthly billing plan for water and electric service will be implemented as soon as possible, with a goal of March-1;-1969 October 1, 1990. Steam service will be incorporated into the plan as soon as practicable thereafter. Sec. 5-6 Confidentiality of Service Order Information That effective this date service order information be congidered private information and be made available to no one, except under valid Court Order or Interpretation-of-the-Michigan-Public-service-Eemmissiea as otbervise provided by lard. August 28, 1990 J 110 Delete current Section 5-8 and 5-9 and replace with the following copy. Sec. 5-8 Customer Security Deposit Policy - Resolution WHEREAS, The Board of Water and Light is committed to applying a fair and equitable Security Deposit Policy, while following a policy of sound business practice, and WHEREAS, The Board must also insure the security of the BWL in the event of default; IT IS THEREFORE RESOLVED that the Board of Water and Light may require a deposit in any of the following situations: - The applicant has a poor payment history with the BWL. - The applicant has a history of interfering with BWL service or BWL employees. - The applicant has a history of energy theft. - The applicant is applying for Commercial and/or Industrial service. BE IT FURTHER RESOLVED, that the General Manager, or his designated representative, shall establish procedures consistent with this Resolution and be responsible for the implementation thereof. BE IT FURTHER RESOLVED, that the Consumer Services Division's "Standards and Guidelines Manual" contains detailed information on the requirements of deposits. Sec. 5-8.1 INTEREST ON DEPOSITS AND APPLYING DEPOSITS The Board of Water and Light will pay interest on all deposits for the time the deposit is held by the Board of Water and Light. Customer Security Deposits may be refunded or applied to a customers account after one year provided the customer has established a satisfactory payment record with the Board of Water and Light. 111 August 28, 1990 Sec. 5-18 Accounts, Mritten Off It is hereby recommended that the Bireeter-of-Finanee Director of Consumer Services be authorized to write-off accounts receivable of $19=99 $99.99 or less when it is determined by staff that the accounts receivable balance is uncollectible. Accounts payable, of any amount, will be escheated to the State of Michigan, if the payee cannot be located within a reasonable time and with reasonable effort. August 28, 1990 112 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolution 90-8-1 (Consumer Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-8-2 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-8-3 (Technical Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-8-4 through 90-8-8, respectively, (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP RESOLVED, That Resolutions 90-8-9 through 90-8-12, respectively, (Water Utility) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS Assistant General Manager Wolfe reported on the following activities: New Peak Load Set. As of August 28, the BWL has experienced a new electric peak load (485 MW), exceeding the peak load established in 1988 (483 MW). Consumers Power and Detroit Edison also experienced an all time peak load on August 28. 113 August 28, 1990 Combined Billing System Overview. A Committee of the Whole meeting will be held on Tuesday, September 11, at 5:30 p.m. to receive an update on the new Combined Billing system for both water and electricity. The new billing system will be introduced to customers on October 1. Economic Development Rate to be Reviewed. A Committee of the Whole meeting will be scheduled for Tuesday, October 9, at 5:30 p.m. to discuss the following items: (1) the Economic Development Rate, (2) the Demand Side Management Study, and (3) the Application Charge. Steam Main Repair. Steam Utility Director Joette Woodard-Yauk gave a brief status on the current steam main replacement project on Ottawa Street in response to Commissioner Jessop's inquiry. The project is part of an overall system upgrade. She noted that two blocks of additional work on Ottawa Street will be undertaken next year as part of the reliability tie. REMARKS BY COMMISSIONERS Commissioner Belen called for a round of applause for Commissioner Eva Evans who was recently elected National First Vice President of the Alpha Kappa Alpha Sorority. As First Vice President, Commissioner Evans is next in line for the presidency of the sorority in 1994. Commissioner Dave O'Leary was also applauded for the enlightening article about his family-owned business, which appeared in the August issue of THE GREATER LANSING BUSINESS MONTHLY. O'Leary Paint will be celebrating a century of service in Lansing next year. Commissioner Hassler noted that revenue is down this year by 8.3 percent due to decreases in sales for electric, water and steam. He complimented all BWL employees for their role in holding costs down. The Share the Success program was cited as one of the cost controls for which all employees contributed, by setting goals to improve utility efficiency and service and cut operational costs. Commissioner Belen suggested a Point of View article in the LANSING STATE JOURNAL highlighting how BWL employees gained a share of the benefits by succeeding in reaching their goals. Commissioner Hassler added that this information would be excellent to include in a billing stuffer. EXCUSED ABSENCES BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS That the absence of Commissioner Sebolt be excused. Adopted unanimously. August 28, 1990 114 CLOSED SESSION BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER JESSOP That the Board go into closed session (5:46 p.m.) to discuss strategy and negotiation matters concerning the union contract. The roll was called and the motion adopted by the following vote: Yeas: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Strolle, and Williams -7 Nays: None. BY COMMISSIONER EVANS-- SECONDED BY COMMISSIONER JESSOP That the Board return to regular session (6:43 p.m.). Adopted unanimously. On motion of Commissioner O'Leary, the Board adjourned at 6:44 p.m. M E. o"va . ecre !�� Filed: August 30, 1990 James D. Blair, City Clerk 2 B. PENSION: JULY 1, 1990 TO AT LEAST JUNE 30, 1996 ..................I.............. 1. Pension Multiplier ................................................................. a. Current Employees: The Multiplier will be changed as follows: Age Service Multiplier 55 30 1.65 60 -- 1.65 60 30 1.70 62 -- 1.70 62 30 1.75 65 -- 1.75 b. Future Employees Age Service Multiplier .... 65 10 1.65 65 20 1.70 65 30 1.75 2. Normal Retirement for employees hired on or after 7/1/90 will be changed to age 65. 3. The Mandatory Retirement clause will be deleted. ....__.....__.............__..... .._........_....... 4. Vesting accrual eligibility for current and new employees will begin at date of hire as opposed to age 25. 5. Dependent Children: Pension rights will be established for dependent children of active employees who die with greater than or equal to 10 years of service and leave no spouse. 6. Options: A reduced pension allowance of no less than 15% will be ..............................._ allowed under Options 3 and 6. October 16, 1990 Interim Non-Bargaining Unit Changes Fiscal Year 1990-91 A. Health Care 1. Hospi_t.aliz_ation a. Effective 4/1/91 the co-pay on prescriptions will be increased from $3.00 to $5.00. b. Effective 4/1/91 Care Choices and BC/BS PPO will be offered in addition to Health Central and traditional BC/BS. PHP will no longer be offered. c. Effective 1/l/91 employees who have other hospitalization coverage will have the option to drop coverage with the BWL. They will be paid the equivalent of the single coverage premium for BC/BS on a monthly basis. (Current BC/BS Single Premium = $122.32.) 2. Major Medical effective 1/1/91 a. A separate $100 individual/$200 family deductible will be established for major medical insurance and dental insurance. The current $100/$200 deductible is a combined deductible for both major medical and dental. b. Coverage will include "well visits." c. Mental health coverage will be increased from 50% to 80%. 3. Dental Coverage effective 1/1/91 will be increased to include: a. "Pre-existing" conditions b. Increase in dependent ortho from $1,000 to $2,000 c. $2,000 for adult orthodontics d. Treatment for temporal modibular joint --"TMJ" e. Increase in BWL co-pay on Class II (crowns, caps, etc.) from 50% to 80%. SUMMARY OF PENSION CONTRACT CHANGES JULY 1, 1990 TO AT LEAST JUNE 30, 1996 I. Pension Multiplier A. Current Employees: The Multiplier will be changed as follows: Ape Service Multiplier 55 30 1.65 60 -- 1.65 60 30 1.70 62 -- 1.70 62 30 1.75 65 -- 1.75 B. Future Employees Age Service Multiplier 65 10 1.65 65 20 1.70 65 30 1.75 II. Normal Retirement For future employees, the normal retirement date will be changed to age 65. III. Mandatory Retirement The mandatory retirement clause will be deleted. IV. Vesting? Vesting accrual eligibility for current and new employees will begin at date of hire as opposed to age 25. V. Dependent Children Pension rights will be established for dependent children of active employees who die with greater than or equal to 10 years of service and leave no spouse. VI. Options A reduced pension allowance of no less than 15% will be allowed under Options 3 and 6. a/summary III. General A. Clerk Typist B, Consumer Service Division, will be deleted from the Boardwide posting list. B. Assistant Receiving, Clerk, Stores Department, will be deleted from Attachment A. C. Clarification 1. Previous Military Duty Credit will apply for pension calculation purposes only and will not apply to vesting or granting of annual vacation. 2. Military leave will be granted on a fiscal year basis versus a calendar year basis. 3. When the day before Christmas and the day before New Years fall on Sunday: Because of confusion and when other businesses schedule the holiday, it was clarified the BWL holiday will be observed the last scheduled workday when the day before Christmas and the day before New Years fall on Sunday. D. Management and the Union will review, on an annual basis, wage adjustment requests--such requests not to exceed six (6) per year. E. Employees on Leave will be allowed to receive payment for retained vacation or free choice on request. F. Bi-weekly payroll periods will end midnight of alternate Saturdays for all employees as opposed to some employees whose pay period ending day has been on alternate Thursdays. REVISED 9-4-90 a/summary F. Attendance (Cont.) 3. Change in Current Practice Related to Vacation a. Vacation requests will only be granted with at least 24 hours advance notice and in accordance with the Contract for use of vacation and its scheduling. 4. General a. Annually, employees who get less than 3 First Occasions credited to them on January 1, because they have more than 6 First Occasions at the end of the year, will be paid for those First Occasions they would lose at their December 31st straight time base rate. b. Employees who exhaust First Occasions and non-purchased Free Choice will go unpaid for the next unscheduled absence and be placed in the Excessive Absenteeism Program. C. Placement into the Excessive Absenteeism Program may lead to being placed on leave of absence and upon return to work being subject to "Conditions of Continued Employment Agreement" . G. Drug Testing 1. A Fitness For Duty policy and a just cause drug testing program has been agreed to, to provide for screening, testing, and follow-up programs which relate to the maintenance of a healthy, safe, and productive work environment. 2. A vote of the membership will be taken within six (6) months of ratification on whether or not to implement a random alcohol and drug testing program. F. Attendance Employees are expected to be at work as scheduled. Unscheduled absences (less than 24 hours advance notice) will be held to a minimum. 1. Illness or Injury a. Use of First Occasions for Absences Due to Illness or Injury. (1) Employees may use their accumulated First Occasions for payment of the first day off due to illness or injury. (2) Employees who exhaust First Occasions will be required to submit documentation for any future unscheduled absence due to illness or injury. b. Use of Free Choice for Absences Due to Illness or Injury (1) Departments may allow employees to use their available non-purchased Free Choice days after exhausting First Occasions for the first day off due to illness or injury. (2) Purchased Free Choice may not be used in lieu of First Occasions. c. Use of Vacation for Absences Due to Illness or Injury (1) Vacation may not be used in lieu of a First Occasion for an unscheduled absence. (2) Vacation may be used in place of a First Occasion with 72 hours notice--even if there are First Occasions and Free Choice on the books. 2. Unscheduled Absences due to Emergency Situations a. Use of Free Choice for Unscheduled Absences due to Emergency Situations. (1) In emergency situations, departments may allow employees to use their available non-purchased Free Choice days. In most situations, documentation will be required. (2) Purchased Free Choice may not be used for unscheduled absences due to emergency situations. b. Use of Vacation for Unscheduled Absence due to Emergency Situations. (1) Neither non-purchased nor purchased Vacation may be used for unscheduled absences due to emergency situations. E. Quality of Employee Performance 1. Bidding for Jobs a. Management will not fill more than the maximum number of job vacancies listed on a posting. b. Each job will have written job responsibilities and skill sheets. C. Employees will be encouraged to familiarize themselves with jobs before they bid. They would be allowed, with permission, to spend a few days on the job they might be interested in, once a year. d. A pre-apprenticeship pool will be established and apprentice applicants will come from this pool. e. Employees at the 30-day time off step of the progressive discipline system for attendance or work-related infractions may be disqualified as bidders for job postings. f. Employees who are mandated to be in the substance abuse program may be disqualified as bidders. Those voluntarily in the program will be eligible to bid. g. Incapacitated employees will be required to bid on higher rated classifications within restrictions and will not be allowed to bid on lower rated jobs and retain their rate of pay as incapacitated employees. 2. Current Jobs a. All employees will have to be licensed according to law for their classification. The BWL will pay for the costs related to training, testing, fees, and renewal. b. Technical Training (1) A joint training committee will be established to oversee non-apprenticeable training needs of the BWL departments and employees. (2) Licensing oversight responsibilities will be assigned to the Joint Apprentice and Licensing Committee. (3) Training Committees will be established in each department to advise the department head and JTTC and JALC with regard to training needs and department progress . 3. Past Practices will be reviewed prior to the expiration of each contract. They will become null and void if not signed by both Union and Management and filed in the Department, Division, Human Resources, and with the Business Agent. For this contract, they will also be reviewed within 90 days of ratification. D. Job Responsibilities (Cont. ) 6. Selection criteria for Electric System Operators (ESO) and a progression system for Electric System Inspectors (ESI) will be specifically defined and ratified within 90 days after ratification. 7 . Water Staking responsibilities will become part of the Non- Bargaining Unit. The person currently doing this is a Water Mechanic B. He will be able to remain a Water Mechanic B or apply for the posting if the staking job is posted. 8. Promotions in Electric Production a. Applicants will be chosen in order, starting with the most senior applicant who has completed the most training. b. Applicants will have to demonstrate proficiency according to training committee guidelines in a lower classification before being promoted to a higher classification. 9. Steam Production Operators (SPO) a. Current SPO's will be able to transfer into Electric Production to Group 4 if they are proficient according to training committee guidelines. b. Current SPO trainees will be able to transfer into Electric Production at one level higher than the level they left to go to steam. C. Future SPO trainees will be able to transfer back to the same level they left in Electric Production. 10. Attachment B for Electric Production will be reviewed within 90 days. 11. Ottawa Station Operators will be absorbed into Eckert and Erickson Stations. a. The additional positions created will be used for training. b. If an Ottawa Operator bids on and is awarded a new position, and can't be released because of Ottawa commitments, they will be guaranteed the position and transferred to it as soon as possible. 12. Stores Department and the Boulevard Section of the Line Department will develop progression systems . D. Job Responsibilities 1. Plant Electricians will be re-classified Electrician. They will take additional course work and process training to stay at maximum pay of Electrician. Otherwise, if they choose, they may stay at their current rate of pay and not take the additional training. 2. Coal Handling will have a revised progression system which is based on an all "A" concept. a. Trainees will come in at the Trainee I level and progress through Levels I, II, and III to COA. b. A training program will be established for each level. 3. Water Production's Progression System will be revised. a. The Calcining Plant Operator (CPO) classification is deleted. CPO's will be reclassified Water Station B Operators (WSBO) . b. The Water Station Operator classification will be divided into WSBO and WSAO. C. New criteria for licensing and progression will be established. 4. Customer Account Representative (CAR) is a new classification established for Customer Service and will include employees from Customer Service currently in the classification, some Water Field Representatives, and some Secondary Meter Specialists. a. The position will be posted for the Water Field Representatives and Secondary Meter Specialists. b. A training program will be established and skill sheets will be developed for each skill area. C. All CAR's will perform collections and routine turn ons and offs for both Water and Electric. d. The normal hours of work for the CAR will be between 7:00 A.M. and 4:00 P.M. with one or two CAR's on a schedule of 10:00 A.M. to 6:00 P.M. (Position(s) to be rotated among CAR's. ) 5. Relief Operator (RO) a. The Method of Selection of RO has been changed. The RO position will be offered to the most senior person in the classification first. If no one wants the position, it will be given to the least senior person who has worked the job alone for six months. b. Methods of using RO's and the RO rate will be reviewed within 90 days. C. Overtime Effective Third Pay Period After Ratification. 1. Overtime will be paid at 1.7 times: a. for up to two (2) hours of scheduled (24 hour notice) overtime contiguous with regular work schedule. b. for the first eight (8) hours of scheduled (5 days notice) overtime on the first day off not including Sundays and Holidays. C. when an employee is on a 12-hour shift schedule and the hours between forty (40) and forty-eight (48) are a part of the employee's normal work week. 2. Overtime will be paid at 2 times: a. for any unscheduled overtime. b. after two (2) hours scheduled contiguous overtime on regular work day. C. after eight (8) hours scheduled overtime on first day off. d. on the second overtime day. e. after 50 hours worked in a week. f. on Sunday. g. on holidays when the holiday is a scheduled part of the employee's normal work week. h. if the overtime for the department goes over the average overtime hours for the department over the three (3) previous fiscal years. 3 . Overtime will be paid at 2.5 times: a. after 12 hours of continuous work. b. for unscheduled work on a holiday. Plants, Substations, Water Production Plants, Water Conditioning Plants, Calciner Plants, and other such facilities used in supplying a continuous service; e.g. , Production Maintenance, Construction Services, E.C.&M. (maintenance) , Water Maintenance, and Power Plant Maintenance, shall be scheduled by the Department Head and consist of a period of five (5) consecutive days. The normal work week will include holidays recognized by this Agreement. The normal work week begins in most cases on Monday, or, in other cases, on Tuesday, except as is otherwise provided herein. When the employee's flex schedule includes Saturday, the employee will be paid a Saturday flex premium. b. The normal work day for employees under this provision shall consist of eight (8) hours between the hours of 5:00 A.M. and 7:00 P.M. Management shall give twenty-four (24) hours advance notice of schedule change to its employees covered under this provision. 2. Construction a. The normal work-week for all employees included in construction and maintenance; e.g. , Line Construction, Construction Services, E.C.& M. (construction) , Water Distribution, BESOC and Stores Departments shall be scheduled by the Department Head and consist of a period of five (5) consecutive days, Monday through Friday. The normal work day for employees under this provision shall consist of eight (8) hours between the hours of 5:30 A.M. and 5:30 P.M. Management shall give twenty-four (24) hours advance notice of schedule change to its employees covered under this provision. 3. Special guidelines were agreed to. a. When the work week schedule is changed in accordance with Maintenance, affected employees will normally be notified not later than Thursday of the preceding week. Such schedule may be changed with twenty-four (24) hours notice, if necessary, to accommodate emergency circumstances. b. Management will assign work crews based on need, but will attempt to accommodate the personal needs of the individual employee in the use of flexible scheduling. C. For assignment of employees to a flexible schedule of long duration; e.g. , greater than one (1) week duration, Management will normally fulfill staffing requirements by offering assignment to eligible employees who have expressed a willingness to work a flexible schedule. An exception will be for specialty crews that may be shifted on flexible work hours for longer intervals without changing crew composition. If additional staffing is required, Management will assign the employee with the least journeyworker seniority or BWL seniority in the case of non-journeyworker. Any employee so assigned to a flexible schedule will not be re-assigned until all eligible employees in the department/classification have served. d. At least annually, a posting will be established in each department covered by the flexible scheduling provision, for employees to express an interest in working a flexible schedule during that interval. 4. Ten & Twelve Hour Shifts will be allowed in departments where they would benefit, if 2/3 of the employees affected and Management agree. 9. Other Bei its Changes a. The shoe allowance will be increased from $7.50 to 50% of the cost up to a maximum of $40 for a pair of safety shoes each year. b. Tools will be purchased for employees entering into classifications which require tools. Employees who have already purchased tools have the option of selling them back to the BWL at retirement, or when leaving the classification, at 75% of the current replacement cost. C. Electric Meter, Water Field Representative, and Customer Account Representatives will be added to the 20 minute paid lunch provision. II. Other Issues A. Hours of Work 1. Distribution of Overtime* a. Overtime lists will be updated bi-weekly. b. Employees who refuse Overtime an agreed to number of times in an agreed to number of days will be placed on the inactive list for the remainder of the quarter. When they go back on, they will be credited with the number of hours equal to the high person on the overtime list in their classification. Operations, Construction, Maintenance, and Office groups will agree to appropriate number of times and days before the vote on the Contract. C. A weekly sign-up sheet will be used to indicate availability for Overtime. d. If an employee with lower overtime hours is missed and not called, overtime will be equalized by the end of the following quarter. Otherwise, the employee will be paid for hours missed. 2. Customer Accounting personnel will be allowed to choose permanent hours between 7:00 A.M. and 5:00 P.M. , on the basis of seniority. 3. The normal work hours for Customer Service employees will be changed to be 7:00 A.M. to 6:00 P.M. B. Flexible Scheduling: 1. Maintenance a. The normal work-week for employees engaged in the maintenance and repair of equipment in Generating Stations, Steam Heat As before, distribution will be based on hours , not dollars. D. Benefit Changes (continued) 5. Vacation a. Employees with breaks in service will be credited with past service for the purpose of granting vacation. b. Employees with twenty (20) years of service will be granted twenty-five (25) days of vacation. C. Management may offer employees immediate payback for voluntarily working through scheduled vacation to accommodate critical work loads. 6. Free Choice Free Choice may be used in one (1) hour increments with departmental approval. Denial may be given for such reasons as inconvenience to the operation or overtime. 7. Holidays Martin Luther King, Jr. 's birthday will become a holiday. 8. Paid Time Off a. The amount of Paid Time Off which may be accumulated will be increased from 132 to 150 days. b. Paid Retirement Allowance will be increased to a maximum of seventy-five (75) days or, if the employee's age + service is greater than 80, paid retirement allowance will be increased according to the following chart: Age + Percent Age + Percent Service Paid Service Paid 80 50% 93 76% 81 52% 94 78% 82 54% 95 80% 83 56% 96 82% 84 58% 97 84% 85 60% 98 86% 86 62% 99 88% 87 64% 100 90% 88 66% 101 92% 89 68% 102 94% 90 70% 103 96% 91 72% 104 98% 92 74% 105 100% C. The amount of Paid Time Off which can be used for family illness will be increased from three (3) to five (5) days. d. Bereavement time will no longer be subtracted from Paid Time Off Credit. D. Benefit Changes 1. Hospitalization a. Effective April 1, 1991 the co-pay on prescriptions will be increased from $3.00 to $5.00. b. Effective April 1, 1991 Care Choices HMO and BC/BS PPO will be offered as health care insurance options. PHP will no longer be offered. C. Effective January 1, 1991 employees who have other hospitalization coverage will have the option to drop coverage with the BWL. They will be paid the equivalent of the single coverage premium for BC/BS on a monthly basis. (current BC/BS Single Premium = $122.32) 2. Maior Medical a. Effective January 1, 1991, a separate $100 individual/$200 family deductible will be established for major medical insurance and dental insurance. The current $100/$200 deductible is a combined deductible for both major medical and dental. b. Effective January 1, 1991, coverage will include "well visits" . C. Effective January 1, 1991, mental health coverage will be increased from 50% to 80%. 3. Dental Coverage Effective January 1, 1991 will be increased to include: a. "Pre-existing" conditions b. Increase in dependent ortho from $1,000 to $2,000 C. $2,000 for adult orthodontics d. treatment for temporal modibular joint --"TMJ" e. Increase in BWL co-pay on Class II (crowns, caps, etc. ) from 50% to 80%. 4. Life Insurance: (effective January 1, 1991) The BWL will pay for $10,000 life insurance and accidental Death and Dismemberment coverage for all employees and will pay for 50% of the premium if employees choose to carry coverage at 1&1/2 times their base wage. Employees must choose the additional coverage to be eligible for coverage after retirement. The BWL will also pay 50% of retirees' premiums. Su.AARY OF BARGAINING UNIT CONTRAG- CHANGES FOR 7-1-90 TO 10-31-93 Revised 10-10-90 Management and the Union jointly negotiated an agreement that will allow the BWL to meet the technological and operational changes necessary to remain competitive in the 1990's while meeting the financial and security concerns of its employees. Quality of work life and an efficient, safe work environment were major negotiating objectives. To ensure employee input into the process, seven (7) joint Task Forces and sixteen (16) joint department committees were established to review major issues of concern to both parties. As in all negotiations, the discussions involved considerable "give and take" on the part of both parties. Hopefully, the overall package will lead to the mutual benefit of both parties and the continued partnership in keeping the BWL one of the best utilities in the United States. SUMMARY This Agreement will be for three years and four months and will be retroactive to July 1, 1990. I. Economic Changes A. Wage Increases 07/01/90 - 06/30/91 4.50% (retroactive to July 1) 07/01/91 - 06/30/92 4.25% 07/01/92 - 10/31/93 4.25% B. Share the Success was extended through June 30, 1993 with payments ranging from 0-5%. 1. Employees who are on leave for any portion of the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. 2. Employees who retire during the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. Prior to this time, these employees received no Share the Success payments. C. Premiums: 1. Shift premiums will be increased to $.60 per hour for the afternoon shift and $.90 per hour for the evening shift. 2. A Saturday Flex premium of 25% will be paid to non-shift employees whose normal work schedule is flexed to include Saturdays . 3. Standby - Employees may be scheduled for weekday standby, in addition to weekend standby. They will be paid one (1) hour straight time for each week day on call. While on standby, all applicable BWL Employee Rules of Conduct will apply. LY 1, 1990 TO OCTOBER 31, 1993 ---------- ---------- per Hour=====_____ 'Base' 'Gross' Total /4/ Non- Bargaining Wage /2/ Wage /3/ Compensation Bargaining Total Costs /1/ Increase Increase Increase Costs /l/ Costs --------- -------- -------- -------- ------ ----- $15.17 $16.91 $21.51 SCAL YEAR 1991 General Increase 4.5% $989,789 0.68 0.75 0.88 0 $989,789 Health Care Package -380,549 0.16 -0.34 -296,606 -677,155 Life Insurance 62,543 0.06 0 62,543 Overtime -74,269 -0.06 -0.07 -34,704 -108,973 Shift Premiums 39,818 0.03 0.04 6,586 46,404 Vacation Days 32,160 0.03 51,695 83,855 Break in Service 4,369 0.00 4,795 9,164 Holiday 71,893 0.06 63,549 135,442 Paid Time off to 150/75 6,473 0.01 0 6,473 Paid Retirement Allowance 40,718 0.03 0.04 83,555 124,273 Family Illness to 5 Days - 7,282 0.01 7,263 14,545 Bereavement Time 4,040 0.00 3,319 7,359 Safety Shoe. Allowance 3,811 0.00 3,079 6,890 Tool Allowance 10,765 0.01 0 10,765 Attendance: First Occasion Days 607 0.00 0.00 0 607 Improved Productivity -234,311 -0.21 0 -234,311 Cash Bonus 0 0.00 65,128 65,128 401A Plan Increase 0 0.00 41,025 41,025 Pension Package 233,677 0.21 216,914 450,591 ------- ----- ----- ----- ------- --------- $818,816 $15.85 $17.82 $22.24 $215,598 $1,034,414 4.50% 5.38% 3.39% SCAL YEAR 1992 General Increase 4.25% $975,233 0.67 0.74 0.86 0 $975,233 Improved Productivity -234,311 -0.21 0 -234,311 ------- ----- ----- ----- ------- --------- $740,922 $16.52 $18.56 $22.89 $0 $740,922 4.25% 4.15% 2.92% SCAL YEAR 1993 General Increase 4.25% $1,018,901 0.70 0.77 0.90 0 $1,018,901 Improved Productivity -312,414 -0.28 0 -312,414 --------- ----- ----- ----- ------- --------- $706,487 $17.22 $19.33 $23.51 $0 $706,487 4.25% 4.15% 2.71% tes: (1) Includes Payroll Loading: FICA 7.65%, Pension 9.91% and Life Insurance 0.45% (2) Base Wage is the employees average hourly rate. (3) Gross Wage includes base wage plus share the success, sunday premium, shift premiun, standby premium, paid retirement allowance, single BC/BS premium payment and overtime. (4) Total Compensation includes gross wage plus pension contribution, hospital insurance, life insurance, major medical insurance and FICA taxes. (5) The increase to Fiscal Year 1991 budget is: Bargaining $654,342 Non-Bargaining 18,933 Total Budget Impact $673,275 aeral Accounting/10-15-90 Following discussion, General Manager Pandy disclosed that his position of Vice Chair of the Divisional Board of St. Lawrence Hospital could give the appearance of a possible conflict of interest with one of the health care insurance options--Care Choice--being offered at the BWL. Commissioner Belen clarified that the Sisters of Mercy, the parent corporation of St. Lawrence Hospital, are the sponsors of the Care Choice Health Plan. BY COMMISSIONER EVANS-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That the three-year agreement reached between Management and the Union Negotiating Committee retroactive to July 1, 1990, unless otherwise designated in the agreement, be approved. The labor agreement will expire on October 31, 1993. A summary of the basic provisions of the agreement pertaining to BWL Bargaining Unit contract changes and Pension contract changes are attached (see Exhibit II). FURTHER RESOLVED, That the Chairman and Secretary be authorized to sign the labor agreement incorporating the settlement changes. Carried unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That the improvements in employee benefits for the BWL Non-Bargaining Unit employees as itemized on the attached sheet be approved (see Exhibit III). Carried unanimously. There being no further business, the Special Meeting adjourned at 5:50 p.m. jk 6 -Arw'.' Mary ova Secre of the Board Filed: October 18, 1990 James D. Blair, City Clerk MINUTES OF SPECIAL MEETING OF THE BOARD OF COMMISSIONERS LANSING BOARD OF WATER AND LIGHT Tuesday, October 16, 1990 The Board of Commissioners met in Special Session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Strolle, and Williams - 7 Absent: Commissioner Sebolt - 1 The Secretary declared a quorum present. General Manager Joe Pandy, Secretary Mary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) NOTICE OF SPECIAL MEETING Notice is hereby given that a Special Meeting of the Board of Water and Light Commissioners of the City of Lansing, Michigan, will be held on Tuesday, October 16, 1990, at 5:30 p.m. The meeting will be held in the Board Room, on the second floor of the Board of Water and Light Building, 123 West Ottawa Street, Lansing, Michigan. Purpose of Meeting: To review and consider the following items: 1. Bargaining Unit Contract 2. Non-Bargaining Unit Benefit Changes Certified by: BOARD OF WATER AND LIGHT COMMISSIONERS /s/ Mary E. Sova, Secretary 371-6033 General Manager Joe Pandy and Human Resources Director Mark Vander Jagt presented the new three-year Bargaining Unit agreement reached between Management and the Union. The labor agreement was ratified by the general membership of the International Brotherhood of Electrical Workers (I.B.E.W.) Local 352 on October 3 by a vote of 243 to 157. In order to extend some health benefit and working condition provisions included in the union contract to all BWL employees, proposed interim benefit changes for the Non- Bargaining Unit employees were considered. General Manager Pandy handed out a summary of incremental settlement costs over the three-year period of the union contract. The economic impact for the Bargaining and Non-Bargaining categories were outlined (see Exhibit I). .tober 16, 1990 146 5 K. Other 1. The shoe allowance, will be increased from $7.50 to 50% of the cost up to''a maximum of $40 for a pair of safety shoes per year. 2. Tools will be purchased for employees entering into classifications which require tools. Employees who have already purchased tools have the option of selling them back to the BWL at retirement, or when leaving the classification, at 75% of the current replacement cost. 3. L .......................... will be paid by the BWL. 4. Share the Success will be extended through 6/30/93 with payments ..._ ............. ........................ .......... ranging from 0-5%. a. Employees who are on leave for any portion of the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. b. Employees who retire during the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. Prior to this time, these employees received no Share the Success payments. 5. Bi-Weekly Pay Periods: Effective 11/04/90, all employees will have bi-weekly pay periods ending on Saturday. L. Attendance: Two focus groups will be established, one for non-exempt . .. . emplo.. ... . yees (eligible for overtime) and one for exempt employees no eligible for overtime) for the purpose of examining attendance policies for the two groups. M. Drug Testing 1. Effective 12/04/90 a new Fitness For Duty policy and a just cause drug testing program will be implemented to provide for screening, testing, and follow-up programs which relate to the maintenance of a healthy, safe, and productive work environment. 2. A task force will be formed to review the concept of random substance abuse testing, guidelines, procedures, security and consequence standards, and their applicability to the Non Bargaining Unit, prior to a determination regarding implementing a random substance abuse testing program for the Non Bargaining Unit. N. Increases .......... ................... 1. Non-Exempt employees will receive a $250 cash bonus on 12/13/90. 2. Exempt employees will have their contribution to the 401A plan increased from 2.5% to 3.0% beginning April, 1991. 3. As in past, comparison to the Bargaining Unit will be taken into consideration when recommending a General Increase for 7/1/91. 145 October 16, 1990 4 H. Premiums: ................................... 1. Shift premiums will be increased to $.60 per hour for the afternoon shift and $.90 per hour for the evening shift, retroactive to 7/1/90. 2. Beginning pay period 11/04/90, a Saturday Flex premium of 25% will be paid to non-shift employees whose normal work schedule is flexed to include Saturdays. I. Flexible Scheduling: Effective the pay period beginning 11/04/90, .............................I.......................... . . employees in affected departments will be subject to flexible scheduling. J. Overtime Effective the pay period beginning 11/04/90. ............................... 1. Overtime will be paid at 1.7 times: a. for up to two (2) hours of scheduled (24 hour notice) overtime contiguous with regular work schedule. b. for the first eight (8) hours of scheduled (5 days notice) overtime on the first day off not including Sundays and Holidays. c. for the eight (8) hours between forty (40) and forty-eight (48) hours when an employee is on a regular 12-hour shift schedule (36 hours one week and 48 hours the next) . 2. Overtime will be paid at 2 times: a. for any unscheduled overtime; b. after two (2) hours scheduled contiguous OT; c. after eight (8) hours scheduled OT on first day off; d. on the second overtime day; e. after 50 hours worked in a week; f. on Sunday; g. on holidays when the holiday is a scheduled part of the employee's normal work week; h. if the overtime for the department goes over the average overtime hours for the department over the three (3) previous fiscal years. 3. Overtime will be paid at 2.5 times: a. after 12 hours of continuous work; b. for unscheduled work on a holiday. 144 .tober 16, 1990 3 C. The Paid Retirement Allowance for accumulated sick leave (maximum 168 11 days) If the employee's age + service is greater than 80, at retirement, accumulated sick leave will be paid off according to the following chart: Age + Service Percent Age + Service Percent up to and Paid up to and Paid including including 80 50% 93 76% 81 52% 94 78% 82 54% 95 80%83 56% 96 82% 84 58% 97 84% 85 60% 98 86% 86 62`k 99 88% 87 64% 100 90% 88 66% 101 92% 89 68% 102 94%90 70% 103 96% 91 72% 104 98% 92 74% 105 100% D. Sick Time The amount of Paid Time Off which can be used for family illness will be increased from three (3) to five (5) days. E. Bereavement time will no longer be subtracted from Paid Time Off Credit. F. Vacation .................................. 1. Employees with breaks in service will be credited with past service for the purpose of granting vacation. 2. Employees with twenty (20) years of service will be granted twenty-five (25) days of vacation. 3. Management may offer employees immediate payback for voluntarily working through scheduled vacation to accommodate critical work loads. G. Holidays: The federally observed holiday for Martin Luther King, Jr. 's birthday will be added. 143 October 16, 1990 2 B. PENSION: JULY 1, 1990 TO AT LEAST JUNE 30, 1996 ................................. 1. Pension Multiplier ................................................................. a. Current Employees: The Multiplier will be changed as follows: Age Service Multiplier ............................. 55 30 1.65 60 -- 1.65 60 30 1.70 62 -- 1.70 62 30 1.75 65 -- 1.75 b. Future Employees Age Service Multiplier 65 10 1.65 65 20 1.70 65 30 1.75 2. Normal Retirement for employees hired on or after 7/1/90 will be . ._._............... .....................................I. changed to age 65. 3. The Mandatory Retirement clause will be deleted. ............................._............ . 4. Vesting accrual eligibility for current and new employees will .. ........... begin at date of hire as opposed to age 25. 5. Dependent Children: Pension rights will be established for ..... dependent children of active employees who die with greater than or equal to 10 years of service and leave no spouse. 6. Options: A reduced pension allowance of no less than 15% will be .._ _....................... allowed under Options 3 and 6. 142 :tober 16, 1990 EXHIBIT I I I October 16, 1990 Interim Non-Bargaining Unit Changes Fiscal Year 1990-91 A. Health Care 1. Hospitaliza.tion a. Effective 4/1/91 the co-pay on prescriptions will be increased from $3.00 to $5.00. b. Effective 4/1/91 Care Choices and BC/BS PPO will be offered in addition to Health Central and traditional BC/BS. PHP will no longer be offered. c. Effective 1/1/91 employees who have other hospitalization coverage will have the option to drop coverage with the BWL. They will be paid the equivalent of the single coverage premium for BC/BS on a monthly basis. (Current BC/BS Single Premium = $122.32.) 2. Major Medical effective 1/1/91 a. A separate $100 individual/$200 family deductible will be established for major medical insurance and dental insurance. The current $100/$200 deductible is a combined deductible for both major medical and dental. b. Coverage will include "well visits." c. Mental health coverage will be increased from 50% to 80%. 3. Dental Coverage effective 1/1/9! will be increased to include: a. "Pre-existing" conditions b. Increase in dependent ortho from $1,000 to $2,000 c. $2,000 for adult orthodontics d. Treatment for temporal modibular joint --"TMJ" e. Increase in BWL co-pay on Class II (crowns, caps, etc.) from 50% to 80%. 41 October 16, 1990 SUMMARY OF PENSION CONTRACT CHANGES JULY 1, 1990 TO AT LEAST JUNE 30, 1996 I. Pension Multiplier A. Current Employees: The Multiplier will be changed as follows: Ape Service Multiplier 55 30 1.65 60 -- 1.65 60 30 1.70 62 -- 1.70 62 30 1.75 65 -- 1.75 B. Future Employees Age Service Multiplier 65 10 1.65 65 20 1.70 65 30 1.75 II. Normal Retirement For future employees, the normal retirement date will be changed to age 65. III. Mandatory Retirement The mandatory retirement clause will be deleted. IV. Vesting Vesting accrual eligibility for current and new employees will begin at date of hire as opposed to age 25. V. Dependent Children Pension rights will be established for dependent children of active employees who die with greater than or equal to 10 years of service and leave no spouse. VI . Options A reduced pension allowance of no less than 15% will be allowed under Options 3 and 6. a/summary ctober 16, 1990 III. General A. Clerk Typist B, Consumer Service Division, will be deleted from the Boardwide posting list. B. Assistant Receiving Clerk, Stores Department, will be deleted from Attachment A. C. Clarification 1. Previous Military Duty Credit will apply for pension calculation purposes only and will not apply to vesting or granting of annual vacation. 2. Military leave will be granted on a fiscal year basis versus a calendar year basis. 3. When the day before Christmas and the day before New Years fall on Sunday: Because of confusion and when other businesses schedule the holiday, it was clarified the BWL holiday will be observed the last scheduled workday when the day before Christmas and the day before New Years fall on Sunday. D. Management and the Union will review, on an annual basis, wage adjustment requests--such requests not to exceed six (6) per year. E. Employees on Leave will be allowed to receive payment for retained vacation or free choice on request. F. Bi-weekly payroll periods will end midnight of alternate Saturdays for all employees as opposed to some employees whose pay period ending day has been on alternate Thursdays. REVISED 9-4-90 a/summary 139 (ktober 16, 1990 F. Attendance (Cont. ) 3. Change in Current Practice Related to Vacation a. Vacation requests will only be granted with at least 24 hours advance notice and in accordance with the Contract for use of vacation and its scheduling. 4. General a. Annually, employees who get less than 3 First Occasions credited to them on January 1, because they have more than 6 First Occasions at the end of the year, will be paid for those First Occasions they would lose at their December 31st straight time base rate. b. Employees who exhaust First Occasions and non-purchased Free Choice will go unpaid for the next unscheduled absence and be placed in the Excessive Absenteeism Program. C. Placement into the Excessive Absenteeism Program may lead to being placed on leave of absence and upon return to work being subject to "Conditions of Continued Employment Agreement" . G. Drug Testing 1. A Fitness For Duty policy and a just cause drug testing program has been agreed to, to provide for screening, testing, and follow-up programs which relate to the maintenance of a healthy, safe, and productive work environment. 2. A vote of the membership will be taken within six (6) months of ratification on whether or not to implement a random alcohol and drug testing program. lU October 16, 1990 F. Attendance Employees are expected to be at work as scheduled. Unscheduled absences (less than 24 hours advance notice) will be held to a minimum. 1. Illness or Injury a. Use of First Occasions for Absences Due to Illness or Injury. (1) Employees may use their accumulated First Occasions for payment of the first day off due to illness or injury. (2) Employees who exhaust First Occasions will be required to submit documentation for any future unscheduled absence due to illness or injury. b. Use of Free Choice for Absences Due to Illness or Injury (1) Departments may allow employees to use their available non-purchased Free Choice days after exhausting First Occasions for the first day off due to illness or injury. (2) Purchased Free Choice may not be used in lieu of First Occasions. C. Use of Vacation for Absences Due to Illness or Injury (1) Vacation may not be used in lieu of a First Occasion for an unscheduled absence. (2) Vacation may be used in place of a First Occasion with 72 hours notice--even if there are First Occasions and Free Choice on the books. 2. Unscheduled Absences due to Emergency Situations a. Use of Free Choice for Unscheduled Absences due to Emergency Situations. (1) In emergency situations, departments may allow employees to use their available non-purchased Free Choice days. In most situations, documentation will be required. (2) Purchased Free Choice may not be used for unscheduled absences due to emergency situations. b. Use of Vacation for Unscheduled Absence due to Emergency Situations. (1) Neither non-purchased nor purchased Vacation may be used for unscheduled absences due to emergency situations . y 37 0ttober 16, 1990 E. Quality of Employee Performance 1. Bidding for Jobs a. Management will not fill more than the maximum number of job vacancies listed on a posting. b. Each job will have written job responsibilities and skill sheets. C. Employees will be encouraged to familiarize themselves with jobs before they bid. They would be allowed, with permission, to spend a few days on the job they might be interested in, once a year. d. A pre-apprenticeship pool will be established and apprentice applicants will come from this pool. e. Employees at the 30-day time off step of the progressive discipline system for attendance or work-related infractions may be disqualified as bidders for job postings. f. Employees who are mandated to be in the substance abuse program may be disqualified as bidders. Those voluntarily in the program will be eligible to bid. g. Incapacitated employees will be required to bid on higher rated classifications within restrictions and will not be allowed to bid on lower rated jobs and retain their rate of pay as incapacitated employees. 2. Current Jobs a. All employees will have to be licensed according to law for their classification. The BWL will pay for the costs related to training, testing, fees, and renewal. b. Technical Training (1) A joint training committee will be established to oversee non-apprenticeable training needs of the BWL departments and employees . (2) Licensing oversight responsibilities will be assigned to the Joint Apprentice and Licensing Committee. (3) Training Committees will be established in each department to advise the department head and JTTC and JALC with regard to training needs and department progress. 3. Past Practices will be reviewed prior to the expiration of each contract. They will become null and void if not signed by both Union and Management and filed in the Department, Division, Human Resources , and with the Business Agent. For this contract, they will also be reviewed within 90 days of ratification. g 1J(l k.tober 16, 1990 D. Job Responsibilities (Cont. ) 6. Selection criteria for Electric System Operators (ESO) and a progression system for Electric System Inspectors (ESI) will be specifically defined and ratified within 90 days after ratification. 7. Water Staking responsibilities will become part of the Non- Bargaining Unit. The person currently doing this is a Water Mechanic B. He will be able to remain a Water Mechanic B or apply for the posting if the staking job is posted. 8. Promotions in Electric Production a. Applicants will be chosen in order, starting with the most senior applicant who has completed the most training. b. Applicants will have to demonstrate proficiency according to training committee guidelines in a lower classification before being promoted to a higher classification. 9. Steam Production Operators (SPO) a. Current SPO's will be able to transfer into Electric Production to Group 4 if they are proficient according to training committee guidelines. b. Current SPO trainees will be able to transfer into Electric Production at one level higher than the level they left to go to steam. C. Future SPO trainees will be able to transfer back to the same level they left in Electric Production. 10. Attachment B for Electric Production will be reviewed within 90 days. 11. Ottawa Station Operators will be absorbed into Eckert and Erickson Stations. a. The additional positions created will be used for training. b. If an Ottawa Operator bids on and is awarded a new position, and can't be released because of Ottawa commitments, they will be guaranteed the position and transferred to it as soon as possible. 12 . Stores Department and the Boulevard Section of the Line Department will develop progression systems. 35 October 16, 1990 D. Job Responsibilities 1. Plant Electricians will be re-classified Electrician. They will take additional course work and process training to stay at maximum pay of Electrician. Otherwise, if they choose, they may stay at their current rate of pay and not take the additional training. 2. Coal Handling will have a revised progression system which is based on an all "A" concept. a. Trainees will come in at the Trainee I level and progress through Levels I, II, and III to COA. b. A training program will be established for each level. 3. Water Production's Progression System will be revised. a. The Calcining Plant Operator (CPO) classification is deleted. CPO's will be reclassified Water Station B Operators (WSBO) . b. The Water Station Operator classification will be divided into WSBO and WSAO. C. New criteria for licensing and progression will be established. 4. Customer Account Representative (CAR) is a new classification established for Customer Service and will include employees from Customer Service currently in the classification, some Water Field Representatives, and some Secondary Meter Specialists. a. The position will be posted for the Water Field Representatives and Secondary Meter Specialists. b. A training program will be established and skill sheets will be developed for each skill area. C. All CAR's will perform collections and routine turn ons and offs for both Water and Electric. d. The normal hours of work for the CAR will be between 7:00 A.M. and 4:00 P.M. with one or two CAR's on a schedule of 10:00 A.M. to 6:00 P.M. (Position(s) to be rotated among CAR's. ) 5. Relief Operator (RO) a. The Method of Selection of RO has been changed. The RO position will be offered to the most senior person in the classification first. If no one wants the position, it will be given to the least senior person who has worked the job alone for six months. b. Methods of using RO's and the RO rate will be reviewed within 90 days. 3ctober 16, 1990 C. Overtime Effective Third Pay Period After Ratification. 1. Overtime will be paid at 1.7 times: a. for up to two (2) hours of scheduled (24 hour notice) overtime contiguous with regular work schedule. b. for the first eight (8) hours of scheduled (5 days notice) overtime on the first day off not including Sundays and Holidays. C. when an employee is on a 12-hour shift schedule and the hours between forty (40) and forty-eight (48) are a part of the employee's normal work week. 2. Overtime will be paid at 2 times: a. for any unscheduled overtime. b. after two (2) hours scheduled contiguous overtime on regular work day. C. after eight (8) hours scheduled overtime on first day off. d. on the second overtime day. e. after 50 hours worked in a week. f. on Sunday. g. on holidays when the holiday is a scheduled part of the employee's normal work week. h. if the overtime for the department goes over the average overtime hours for the department over the three (3) previous fiscal years. 3. Overtime will be paid at 2. 5 times: a. after 12 hours of continuous work. b. for unscheduled work on a holiday. B. Flexible Scheduling: (Cont. ) Plants, Substations, Water Production Plants, Water Conditioning Plants, Calciner Plants, and other such facilities used in supplying a continuous service; e.g. , Production Maintenance, Construction Services, E.C.&M. (maintenance) , Water Maintenance, and Power Plant Maintenance, shall be scheduled by the Department Head and consist of a period of five (5) consecutive days. The normal work week will include holidays recognized by this Agreement. The normal work week begins in most cases on Monday, or, in other cases, on Tuesday, except as is otherwise provided herein. When the employee's flex schedule includes Saturday, the employee will be paid a Saturday flex premium. b. The normal work day for employees under this provision shall consist of eight (8) hours between the hours of 5:00 A.M. and 7:00 P.M. Management shall give twenty-four (24) hours advance notice of schedule change to its employees covered under this provision. 2. Construction a. The normal work-week for all employees included in construction and maintenance; e.g. , Line Construction, Construction Services, E.C.& M. (construction) , Water Distribution, BESOC and Stores Departments shall be scheduled by the Department Head and consist of a period of five (5) consecutive days, Monday through Friday. The normal work day for employees under this provision shall consist of eight (8) hours between the hours of 5:30 A.M. and 5:30 P.M. Management shall give twenty-four (24) hours advance notice of schedule change to its employees covered under this provision. 3. Special guidelines were agreed to. a. When the work week schedule is changed in accordance with Maintenance, affected employees will normally be notified not later than Thursday of the preceding week. Such schedule may be changed with twenty-four (24) hours notice, if necessary, to accommodate emergency circumstances. b. Management will assign work crews based on need, but will attempt to accommodate the personal needs of the individual employee in the use of flexible scheduling. C. For assignment of employees to a flexible schedule of long duration; e.g. , greater than one (1) week duration, Management will normally fulfill staffing requirements by offering assignment to eligible employees who have expressed a willingness to work a flexible schedule. An exception will be for specialty crews that may be shifted on flexible work hours for longer intervals without changing crew composition. If additional staffing is required, Management will assign the employee with the least journeyworker seniority or BWL seniority in the case of non-journeyworker. Any employee so assigned to a flexible schedule will not be re-assigned until all eligible employees in the department/classification have served. d. At least annually, a posting will be established in each department covered by the flexible scheduling provision, for employees to express an interest in working a flexible schedule during that interval. 4. Ten & Twelve Hour Shifts will be allowed in departments where they would benefit, if 2/3 of the employees affected and Management agree. L/ L)C LLt!L I L. VLL G LLK� v"""•""""�/ ttOber 16, 1990 9 . Other Benefits Changes a. The shoe allowance will be increased from $7.50 to 50% of the cost up to a maximum of $40 for a pair of safety shoes each year. b. Tools will be purchased for employees entering into classifications which require tools. Employees who have already purchased tools have the option of selling them back to the BWL at retirement, or when leaving the classification, at 75% of the current replacement cost. C. Electric Meter, Water Field Representative, and Customer Account Representatives will be added to the 20 minute paid lunch provision. II. Other Issues A. Hours of Work 1. Distribution of Overtime* a. Overtime lists will be updated bi-weekly. b. Employees who refuse Overtime an agreed to number of times in an agreed to number of days will be placed on the inactive list for the remainder of the quarter. When they go back on, they will be credited with the number of hours equal to the high person on the overtime list in their classification. Operations, Construction, Maintenance, and Office groups will agree to appropriate number of times and days before the vote on the Contract. C. A weekly sign-up sheet will be used to indicate availability for Overtime. d. If an employee with lower overtime hours is missed and not called, overtime will be equalized by the end of the following quarter. Otherwise, the employee will be paid for hours missed. 2. Customer Accounting personnel will be allowed to choose permanent hours between 7 :00 A.M. and 5:00 P.M. , on the basis of seniority. 3. The normal work hours for Customer Service employees will be changed to be 7:00 A.M. to 6:00 P.M. B. Flexible Scheduling: 1. Maintenance a. The normal work-week for employees engaged in the maintenance and repair of equipment in Generating Stations, Steam Heat As before, distribution will be based on hours , not dollars . 127 lober 16, 1990 Following discussion, General Manager Pandy disclosed that his position of Vice Chair of the Divisional Board of St. Lawrence Hospital could give the appearance of a possible conflict of interest with one of the health care insurance options--Care Choice--being offered at the BWL. Commissioner Belen clarified that the Sisters of Mercy, the parent corporation of St. Lawrence Hospital, are the sponsors of the Care Choice Health Plan. BY COMMISSIONER EVANS-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That the three-year agreement reached between Management and the Union Negotiating Committee retroactive to July 1, 1990, unless otherwise designated in the agreement, be approved. The labor agreement will expire on October 31, 1993. A summary of the basic provisions of the agreement pertaining to BWL Bargaining Unit contract changes and Pension contract changes are attached (see Exhibit II). FURTHER RESOLVED, That the Chairman and Secretary be authorized to sign the labor agreement incorporating the settlement changes. Carried unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That the improvements in employee benefits for the BWL Non-Bargaining Unit employees as itemized on the attached sheet be approved (see Exhibit III). Carried unanimously. There being no further business, the Special Meeting adjourned at 5:50 p.m. 4 6 -Aww'o . Mary ova Secre of the Board Filed: October 18, 1990 James D. Blair, City Clerk 128 be- 16, 1990 SENTAL SETTLEMENT COSTS L, 1990 TO OCTOBER 31, 1993 per Hour========== /4/ Non- 'Base' 'Gross' Total Total Bargaining Wage /2/ Wage /3/ Compensation Bargaining Costs /1/ Costs Costs /1/ Increase Increase Increase $15 17 $----- --------- - 16.91 $21.51 L YEAR 1991 0.75 0.88 0 $989,789 0.68 $989,789 .16 -0.34 -296,606 -677,155 �neral Increase 4.5� -380,549 0 0 62,543 ;alth Care Package 0.06 62,543 -0.06 -0.07 -34,704 -108,973 Lfe Insurance -74,269 0.04 6,586 46,404 7ertime 39,818 0.03 51,695 83,855 Sift Premiums 0.03 32,160 0.00 4,795 9,164 acation Days 4,369 0.06 63,549 135,442 reak in Service 71,893 0.01 0 6,473 oliday 6,473 0.04 83,555 124,273 0.01 aid Time off to 150/75 40,718 0.03 7,263 14,545 aid Retirement Allowance 7,282 0.00 3,319 7,359 'amily Illness to 5 Days 4,040 0.00 3,079 6,890 iereavement Time 3,811 0.01 0 10,765 safety Shoe Allowance 10,765 0.00 0 607 'ool Allowance 607 0.00 0 -234,311 attendance: First Occasion Days -0.21 -234,311 0.00 65,128 65,128 Cmproved Productivity 0 0.00 41,025 41,025 :ash Bonus 0 450,591 101A Plan Increase 233,677 0.21 ------4 Pension Package ------- ----- ----- $2 818816 $15.85 $17.82 2.24 $215,598 $1,034,414 $ , 3.39% 4.50% 5.38% CAL YEAR 1992 0.86 0 $975,233 $975,233 0.67 0.74 0 -234,311 General Increase 4.25% -0.21 -234,311 ----- ------- --------- Improved Productivity ------- ----- $0 $740,922 $740,922 $16.52 $18.56 4.15% $22.89 2.92% ;CAL YEAR 1993 0.90 0 $1,018,901 $1,018,901 0.70 0.77 0 -312,414 General Increase 4.25% -0.28 -312,414 ----- ------- --------- Improved Productivity -------- ----- ----- $0 $706,487 $706,487 $17.22 $14.15� $22.71% tes: 765� Pension 9.91% and Life Insurance 0.45% (1) Includes Payroll Loading: FICA . , (2) Base Wage is the employees average hourly rate. ndaypremium, (3) Gross Wage includes base wage plus share the success, suremi p , shift premiun, standby ment and overtime. premium, paid retirement allowance, singleBC/contribution�y hospital insurance, life (4) Total Compensation includes gross wage p pension insurance, major medical insurance and FICA taxes. (5) The increase to Fiscal Year 1991 budget is: Bargaining $654,342 Non-Bargaining 18,933 Total Budget Impact $673,275 eneral Accounting/10-15-90 129 October 16, 1990 EXHIBIT II SUMMARY OF BARGAINING UNIT CONTRACT CHANGES FOR 7-1-90 TO 10-31-93 Revised 10-10-90 Management and the Union jointly negotiated an agreement that will allow the BWL to meet the technological and operational changes necessary to remain competitive in the 1990's while meeting the financial and security concerns of its employees. Quality of work life and an efficient, safe work environment were major negotiating objectives. To ensure employee input into the process, seven (7) joint Task Forces and sixteen (16) joint department committees were established to review major issues of concern to both parties. As in all negotiations, the discussions involved considerable "give and take" on the part of both parties. Hopefully, the overall package will lead to the mutual benefit of both parties and the continued partnership in keeping the BWL one of the best utilities in the United States. SUMMARY This Agreement will be for three years and four months and will be retroactive to July 1, 1990. I. Economic Changes A. Wage Increases 07/01/90 - 06/30/91 4.50% (retroactive to July 1) 07/01/91 - 06/30/92 4.25% 07/01/92 - 10/31/93 4.25% B. Share the Success was extended through June 30, 1993 with payments ranging from 0-5%. 1. Employees who are on leave for any portion of the fiscal year will receive a prorated Share the Success payment for every full month they were active employees. 2. Employees who retire during the fiscal year will receive a prorated Share the Success payment for every full month they were active employees . Prior to this time, these employees received no Share the Success payments. C. Premiums: 1. Shift premiums will be increased to $. 60 per hour for the afternoon shift and $.90 per hour for the evening shift. 2. A Saturday Flex premium of 25% will be paid to non-shift employees whose normal work schedule is flexed to include Saturdays. 3. Standby - Employees may be scheduled for weekday standby, in addition to weekend standby. They will be paid one (1) hour straight time for each week day on call. While on standby, all applicable BWL Employee Rules of Conduct will apply. 2 130 16, 1990 D. Benefit Chanzes l Hos italization a on prescriptions will be a. Effective April 1, 1991 the co-p Y increased from $3.00 to $5.00. Choices HMO and BC/BS PPO will 1991 Care b, Effective April 11 PHP will no be offered as health care insurance options- longer be offered. 1991 employees who have other C. Effective January 1, option to drop hospitalization coverage will whave behpaid the equivalent of premium for l b on a monthly basis. coverage with the BWL. They the single coverage p 122.32) (current BC/BS Single Premium = $ 2. Maio r Medical 100 individual/$200 1991, a separate $ a. Effective January 1, or medical family deductible wili be esceblisrhedcurren for major insurance and t $100/$200 den deductible for both major medical de ductible is a combined and dental. "well b, Effective Ja nuary 1, 1991, coverage will include visits" • 1991, mental health coverage will be C. Effective January 1, increased from 50% to 8090. Dental Coverage Effective January 1, 1991 will be increased to 3. include: a 11Pre-existing " conditions b. Increase in dependent ortho from $1,000 to $2,000 C. $2,000 for adult orthodontics joint --"TMJ" d. treatment for temporal modibular j etc.) from e. Increase in BWL co-pay on Class II (crowns, caps, 50% to 80$. 4, Life Insurance: (effective January 1, 1991) 10,000 life insurance and accidenaalfora50� The BWL will pay for th $ to ees and will pay and Dismemberment coveraeesfor all choose top carry coverage at 1&1/2 of the premium if emp Y The BWL times their base wage. Employees must choose the additional coverage to be eligible for coverage after retirement, will also pay 50% of retirees' premiums . 131 3 October 16, 1990 D. Benefit Chan es (continued) 5. Vacation a. Employees with breaks in service will be credited with past service for the purpose of granting vacation. b. Employees with twenty (20) years of service will be granted twenty-five (25) days of vacation. C. Management may offer employees immediate payback for voluntarily working through scheduled vacation to accommodate critical work loads. 6. Free Choice Free Choice may be used in one (1) hour increments with departmental approval. Denial may be given for such reasons as inconvenience to the operation or overtime. 7. Hol�vs Martin Luther King, Jr. 's birthday will become a holiday. 8. Paid Time Off a. The amount of Paid Time Off which may be accumulated will be increased from 132 to 150 days. b. Paid Retirement Allowance will be increased to a maximum of seventy-five (75) days or, if the employee's age + service is greater than 80, paid retirement allowance will be increased according to the following chart: Age + Percent Service Paid `age + Percent Service Paid 80 81 52% 93 76% 82 54% 94 78% 83 56% 95 80% 84 58% 96 82% 85 60% 97 84% 86 62% 98 86% 87 64% 99 88% 88 66% 100 90% 89 68% 101 92% 90 70% 102 94% 91 72% 103 96% 92 74% 104 105 98% 100% C. The amount of Paid Time Off which can be used for family illness will be increased from three (3) to five (5) days. d. Bereavement time will no longer be subtracted from Paid Time Off Credit. October 23, 1990 166 REMARKS BY BOARD COMMISSIONERS Power Outage. Commissioner Belen requested details about the cause of the power outage of October 15, 1990. Director of Electric Utility Roy Peffley responded that the tie line from Eckert to Ottawa Stations failed due to moisture in the lead shielded cable. Normally the tie lines run in parallel, however, because of preventive maintenance being performed on the Ottawa Station switch gear, the tie lines were separated. When the failure occurred, manual switching at Ottawa was required to re-establish service. The BWL long-range transmission plan (three to four years) calls for construction of a 138 kW substation in the downtown area to provide support to the aging Eckert to Ottawa tie line. Customer Information System Update. Commissioner Williams inquired on the status of the new Customer Information System (CIS) for combined billing. Technical Services Director John Elashkar reported that data migration will commence October 25 onto the new computerized Customer Information System. The BWL Main Office Building and the East Lansing satellite office will be closed to the public on Monday, October 29 for final preparation to bring the CIS on-line. The offices will be open for business on Tuesday, October 30. The first combined billing statement will be produced on Thursday, November 1. Separate Water Meters. Commissioner Jessop inquired when an official announcement will be made regarding the availability of separate water meters. Water Utility Director Dugan responded that this service has already been publicized. An internal BWL task force is currently analyzing the type of promotions appropriate for this service. EXCUSED ABSENCES BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS That the absence of Commissioner Sebolt be excused. Adopted unanimously. On motion of Commissioner O'Leary, the Board adjourned at 6:12 p.m. AIL �• Mary E ova, ecretary Filed: October 26, 1990 James D. Blair, City Clerk 165 October 23, 1990 United Way Campaign at the BWL Surpasses Goal. General Manager Pandy announced that 80 percent of BWL employees participated in the 1990 Capital Area United Way Campaign. Employees pledged $105,129, exceeding the BWL campaign goal of$105,000, which qualifies the BWL for another United Way Silver Award. Treasurer/Controller Dana Tousley and Steve Simpson, President of IBEW Local Union 352, were congratulated for their efforts in co-chairing the BWL campaign. Capital Area United Way Employee of the Month. BWL employee, Hector Valdez --Customer Energy Advisory Technician--was recognized by the Commissioners for being saluted by the Capital Area United Way as a "Volunteer of the Month". National Association of Town Watch. The National Association of Town Watch (NATW) has notified the BWL that the utility has been selected as a National Award Winner for outstanding participation in the "7th Annual National Night Out." The NATW campaign was conducted in 8,140 communities across the country, and 39 communities were mentioned as 1990 National Night Out Winners. Communications & Marketing Director John Strickler and his staff were congratulated for their efforts in coordinating this event. Cash Control Procedures Audited. General Manager Pandy reported that a recent audit of Cashiers in the Customer Services Department uncovered various problems with certain employees handling cash. Internal Auditor Kellie Willson will present a detailed report regarding this matter to the Finance Committee. Disciplinary action is being taken by the Human Resources Division. Improved Relations with the Department of Social Services. The Consumer Services Division has been working with the Department of Social Services (DSS) on improving organizational relations for vendored DSS clients. A system has been implemented to improve the flow of information between the BWL and DSS. A representative from DSS will be appearing at a future Board meeting to report on the progress of the newly instituted procedures. East Lansing Satellite Office. The satellite office in East Lansing, opened for the MSU student rush, served 877 customers during one month. This operation has been very successful. Gatekeeper Program. The BWL is actively involved in the Gatekeeper Program, a community support program for the elderly. Two referrals from the Water Department and one from the Bulb Center have been directed to the Office on Aging for assistance. Commissioner Belen praised the program and suggested that if the City is not already involved in the program, they may want to hear about it from the BWL. Attorney Larry Wilhite Presents Paper on Employee Bonus Plans. Copies of a paper prepared by Staff Attorney Larry Wilhite was handed out. The paper, entitled Employee Bonus Plans in the Public Sector--"Guarding the Public Fisc?" was delivered to attendees at the American Public Power Association (APPA) Legal Seminar on October 17. The paper concludes that the BWL's Share the Success program is legal. October 23, 1990 164 GENERAL MANAGER'S REMARKS The following activities were reported by the General Manager and staff: Public Hearing for Proposed Electric Rate Changes. Treasurer/Controller Dana Tousley handed out a copy of proposed electric rate change documents to be filed with the City Clerk on October 25, to comply with City Charter requirements. This information regarding an Economic Development Rider and Demand Side Management Rates is available to the general public on request. Benefit/Cost Analysis of Time-of-Use Rate. Treasurer/Controller Tousley handed out a copy of a summary report, prepared by Synergic Resources, on a benefit/cost analysis of a proposed time-of-use rate structure for BWL Rate 5 customers. Results of five standard benefit/cost tests, each representing a different perspective on the demand side management program under consideration, were summarized. The proposed rate was analyzed under the following four anticipated customer responses: o No Response o Low Response o Load Growth o High Response The analysis showed that no major financial impact should be felt by the BWL. Revenue Requirements Studied for City's Wastewater Service. Treasurer/ Controller Dana Tousley presented a summary of the principal findings of a draft "Report on Revenue Requirements, Cost of Service Allocations, and Rate Design for Wastewater Service" prepared by Black & Veatch for the City of Lansing's Department of Public Service. Recommended billing charges were reviewed. BWL staff input has been requested by the City relative to the methodology used. General Motors Corporation Comments on Interruptible/Curtailable Rates. General Manager Joe Pandy reported that a communication was received from General Motors Corporation (GM) in follow up to their meeting with Treasurer/Controller Tousley on October 15 to pursue opportunities with interruptible/curtailable power and rates. GM has submitted concept guidelines for an interruptible rate for BWL consideration. Mr. Pandy noted that GM's input will be reflected in proposed rate considerations during the coming weeks. Ten Percent Budget Reduction. General Manager Pandy reported that he has directed all Directors to implement a 10 percent cost reduction in their divisions. Mr. Pandy noted that it appears the recessionary economy will remain for some time, impacting our local economy. Combined electric, water and steam sales through September are 5.4 percent below budget. Mr. Pandy emphasized the BWL will do all it can to reduce operating costs during these lean times. Commissioners Hassler and Belen inquired if some form of recognition would be considered in the Share the Success (STS) program if the BWL is successful in cutting the budget by 10 percent. Mr. Pandy responded that this consideration will be investigated by the STS Performance Measures Committee. 163 October 23, 1990 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 90-10-1 and 90-10-2 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-10-3 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-10-4 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-10-5 and 90-10-6 (Technical Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-10-7 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-10-8 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. October 23, 19% 162 WATER (Continued) (Res. No. 90-10-8) Further,that upon receipt of the sum of$34, 170.00 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LIV) to furnish a potable water supply in Water District No. 54. The geographical area of Water District No. 54 is as follows: Willoughby Woods Subdivision Phase I, Lots 1 thru 23 To provide a potable water supply within the proposed new district requires the installation of 1,500 feet of water main at an estimated cost of$30,900.00 and two (2) fire hydrants at a cost of$3,270.00. The main extension will serve 23 residential customers. One-time connection fees will amount to $11,500.00. Estimated annual revenue is $6,900.00. Water mains to be installed in Fall of 1990 following the receipt of the Township's non- refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, Joseph Pandy,Jr. General Manager JP/bg 161 October 23, 1990 TREASURER/CONTROLLER Res. No. 90-10-7 That the present car allowance reimbursement rates effective July 1, 1985, applicable to BWL employees required to provide personal transportation in performing their respective job assignments,be amended effective October 1, 1990 as follows: Plan A- 26 cents per mile for all miles driven. Plan C - $55.00 per month plus 22 cents per mile for all miles driven. Further,that all other procedures under the plans as adopted July, 1980 and amended July, 1985,remain in effect. -------------------- The two cents per mile increase in both plans results from the annual review of vehicle operating costs and survey of other Lansing area firms. Annual reimbursement payments will increase approximately$6,350 or 4.9%. Reimbursement rates have not been revised since July, 1985. -------------------- WATER Res. No. 90-10-8 That the Board agree to serve water to proposed Water District No. 54, Delhi Township, as requested by resolution of the Delhi Charter Township Board on April 18, 1989, and that in accordance with the agreement between the Board and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supply in Delhi Township, the Board advises officials of Delhi Township as follows: 1. The Board will accept Water District No. 54 established by Township resolution on April 18, 1989, and will provide a potable water supply to said district. 2. The Township will be required to make a $34,170.00 non- refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regula- tions for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LIV) covering the furnishing of a potable water supply in Water District No. 54. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. October 23, 1990 160 TECHNICAL SERVICES (Continued) Res. No. 90-10-6 It is recommended: That the application filed with the Federal Energy Regulatory Commission (FERC) on November 1, 1988 for licensing North Lansing Hydro be withdrawn, and the unit deactivated by December 31, 1990. This 205kW hydro generator operates infrequently,with its last output of record during the first quarter of 1985. We are anticipating excessive capital and operational expenses in the continued operation of this unit. These expenses are: - Cost of the impending fish entrainment and mortality study$61,000. - Cost of possible mitigation requirements as a result of the study estimated at$5,000 to$10,000 per year. - Cost of manning and operating the facility in order to assure smooth run-of-the river operation while attaining maximum utilization of renewable resources estimated at$20,000 per year. - Cost of upgrading the turbine and generator estimated at$200,000. -------------------- The results of cost/benefit analysis over a 30 year period at 7%discount rate are as follows: - Present value of energy and capacity $134,000 - Present value of construction/operation cost ($602,000) - Benefit/Cost ratio 0.22 -------------------- 159 October 23, 1990 PENSION Res. No. 90-10-4 That Donald E. Mahon, Superintendent of Customer Meter Reading/Disputes, be placed on a monthly pension of$1,916.53 effective October 1, 1990. He has selected Option VI with the provision that after his death,if his wife,Dorothy J. Mahon, survivies him she will receive 28%or$536.63 per month for the rest of her life. If his wife predeceases him,the pension amount of$1,916.53 will revert back to the regular pension amount of $2,011.15 for the rest of his life. Mr. Mahon has worked for the BWL for 36.28 years and is 55 years of age. -------------------- TECHNICAL SERVICES Res. No. 90-10-5 It is recommended: 1. That the Agreement for the Sale of Dry Fly Ash between Board of Water and Light (BWL) and Michigan Ash Sales (MAS) dated October 17, 1978 for the sale of fly ash at Erickson Station be extended from September 30, 1991 to September 30, 1995. Further, that the provisions for furnishing 400,000 tons of dry fly ash as a condition for the term of the Agreement be eliminated. 2. That the Agreement for the Sale of Dry Fly Ash between BWL and MAS dated September 22, 1976 for the sale of fly ash at Eckert Station be extended from September 30, 1991 to September 30, 1995. -------------------- The above two extensions will set the expiration date of the above referenced agreements the same as the expiration date of the Fly Ash Handling Agreement at Erickson Station dated September 30, 1985. -------------------- Actober 23, 1990 158 ADMINISTRATIVE (Continued) Res. No. 90-10-2 That Resolution 89-8-1 regarding the policy on Chain of Command be revised as follows: Chain of Command That in the absence of the General Manager,the Assistant General Manager shall be in charge of all Board operations. That in the absence of the General Manager and Assistant General Manager,the below listed Directors, in the sequence in which they are listed, shall be in charge of all Board operations: 1. Director, Electric Utility 2. Director, Water Utility 3. Director,Technical Services 4. Director, Steam Utility 5. Treasurer/Controller -------------------- The reorganization of May 14, 1990 created a title change for the Director of Engineering to Director of Technical Services. A similar resolution on Authority to Sign was submitted to the Board on August 28, 1990. -------------------- HUMAN RESOURCES Res. No. 90-10-3 That Jim Lantz, Lamp Exchange Supervisor in the Appliance Repair and Light Bulb Center, be awarded a total of$593.50 for suggestion proposal number 1990-178, to use an outside vendor in place of Stores to house and deliver Free Service light bulbs. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $5,185.00 in the first year. -------------------- 157 October 23, 1990 October 23, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-10-1 That the Board award a two year purchase order to Wen-Don Corporation to provide freeze conditioning services for all BWL contract coals. The purchase order particulars are as follows: 1. The purchase order covers the freeze conditioning seasons for FY'91 and FY '92. 2. The purchase order utilizes a new method of application that is weather forecast dependent, BWL control and accountability, and uses today's best chemistry to maximize the effectiveness of treatment and to minimize costs. 3. The purchase order contains provisions for termination upon lack of performance and/or cooperation. 4. Pricing to be as follows: a) Side Release Agent, NF-2000, at$2.05/gallon. b) Body Feed, NF-SI, at$1.25/gallon. c) Monitoring fee; $10.00/hour. Above prices are effective for FY 1991 freeze conditioning season. Pricing for FY 1992 freeze conditioning season will be negotiated. -------------------- By entering into this agreement with Wen-Don Corporation,the BWL will substantially reduce its freeze conditioning costs, as well as to minimize the receipt of unloadable frozen coal shipments. -------------------- ktober 23, 1990 Attwhwnt D 156 BOARD OF WATER AND L I GHT RULES AND REGULATIONS FOR ELECTRIC SERVICE IV. APPLICATION OF RATES (coast. ) L. Property Owner-Rental Agent Agreement for "Leave on" Service The BWL may waive application charges to maintain continuity of service at rental property locations provided; (1) the landlord agrees to assume the responsibility for electric or water service during the interim between tenants, and (2) the landlord is in compliance with all other rules and regulations of the Board. 55 October 23, 1990 1 Attachment C Board of Water and Light,Lansing, Michigan Original Sheet No.EB28 SCHEDULED CURTAILMENT SERVICE RIDER Availability -This rider is available to customers on Primary Service Rate No. 5 (Rate 5). A customer desiring service under this rider must contract to curtail its demand upon notice by the Board of Water and Light(BAT) by approximately 1,000 kW or more as described below. The amount of curtailable demand subject to this rider may be limited by the Commissioners in total and by customer. Conditions of Curtailment-The General Manager has authorization to negotiate with qualifying customers as to terms and conditions of this rider. Adopted: Effective: ktober 23, 1990 154 Attachment B Board of Water and Light,Lansing, Michigan 1st Revised Sheet No.EB10 PRIMARY SERVICE RATE NO. 5 Schedule of on-peak and off-peak periods -The on-peak period shall be from 10 a.m. until 6 p.m., Monday through Friday. All other hours shall be the off-peak period. Power Factor Adjustment Customers who have reactive kilovolt ampere-hour(kVARh) metering installed in accordance with BWL Rules and Regulations regarding power factor shall be billed in accordance with the following: (a)The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of.9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 60% of the highest registered demand of the preceding eleven(11)months. (b)The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the BWL reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The BWL may, at its option, determine the power factor by test or by permanently installed measuring equipment. Metering-When the BWL elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately. Delayed Payment Charge-A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Effective: 53 October 23, 1990 Attachment B Board of Water and Light,Lansing, Michigan 1st Revised Sheet No. EB9 PRIMARY SERVICE RATE NO. 5 Availability -This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 100 kW or more. The customer shall furnish, install and maintain all necessary transforming, controlling and protective equipment required for the service. This rate is not available for standby or emergency service. Nature of Service-Alternating current, 60 hertz, three phase. The primary voltage to be determined by the Board of Water and Light(BWL). Monthly Rate- Shall be computed in accordance with the following charges: Capacity Charge: $5.08 per kW for all kW of on-peak billing demand, plus $1.65 per kW for all kW of maximum demand. Energy Charge: $0.0315 per kWh for all kWh during the on-peak period, plus $0.0290 per kWh for all kWh during the off-peak period. Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge-The capacity charge included in the rate. Billing Demand On-Peak Billing Demand: The on-peak billing demand shall be the kW supplied during the 15- minute period of maximum use during the on-peak period during the month, but not less than 60% of the highest registered demand during the on-peak period in the preceding eleven(11) months, and not less than 100 kW. Maximum Demand: The maximum demand shall be the kW supplied during the 15-minute period of maximum use during the month whether on-peak or off-peak, but not less than 60% of the highest registered demand during the on-peak period in the preceding eleven(11) months, and not less than 100 kW. Adopted: Effective: -toter 23, 1990 152 Attachment A Board of Water and Light,Lansing, Michigan 1st Revised Sheet No. EB26 ECONOMIC DEVELOPMENT RIDER Billing Demand-For a new customer, the entire billing demand shall be subject to the capacity charge in this rider and shall never be less than 100 kW and shall not be subject to the 60% provision. For an existing customer, or a new customer with an established contracted historical billing demand, the contracted historical billing demand shall be billed at the capacity charge in the customers principal service rate. Only the billing demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not be subject to the 60% provision. Minimum Charge-A new customer shall have a minimum billing demand of 100 kW. A}rexisttag A customer with an established contracted historical billing demand, shall have a minimum billing demand equal to 60% of the contracted historical billing demand. Adopted: Effective: .51 October 23, 1990 Attachment A Board of Water and Light,Lansing, Michigan 1st Revised Sheet No. EB25 ECONOMIC DEVELOPMENT RIDER Purpose-The primary purpose of this rider is to enhance economic development in the Board of Water and Light (BWL) service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the Beerd-e€Water -Light BWL and its customers. Availability-This rider is available to industrial customers on Large General Service Rate No. 4(Rate 4)or Primary Service Rate No. 5(Rate 5). For purposes of this rider, an industrial customer is defined as any business which manufactures a product for sale or research and development. This would include usage for facilities directly associated with and on the same premises as the manufacturing business such as offices and warehouses. A customer desiring service under this rider must contract for such service on or before December 31, 1-990 1993. This rate will be available for a period of five years from the date of the contract. All provisions of this rider are the same as the principal service rate with the following exceptions: New Customer- Open to a new industrial customer taking service on or after January 1, 1-988 1991 where the new load results in 100 kW or more of billing demand. Existing Customer-Open to an existing industrial customer who contracts for a bona fide increase in connected load resulting in an increase of 100 kW, or 10% of their historical billing demand, whichever is greater, or more of billing demand on or after January 1, 4-989 1991. Monthly Rate Capacity Charge: A percentage of the capacity charge included in the principal service rate, less credits, as follows: Contract Year % 1 50% 2 60% 3 70% 4 80% 5 90% Contracted Historical Billing Demand-An existing customer's contracted historical billing demand will be the average of the three highest registered demands, including metering adjustments, during the twelve(12) month period prior to the contract or as established by mutual consent. The contracted historical billing demand shall be subject to the 60% provision during the contract period. The BWL reserves the right to establish a contracted historical billing demand for all customers with duplicate or replacement operations within the BWL service area. Adopted: Effective: October 23, 1990 150 4. That the date of the public hearing to solicit public input on the above rate changes be set for Tuesday, December 11, 1990. This date could mean a February 1, 1991 effective date for the proposed changes. 5. That staff be directed to file the proposed rate changes and the public hearing date with the City Clerk as required by the Lansing City Charter on or before Thursday, October 25, 1990. RULES AND REGULATIONS FOR ELECTRIC SERVICE (Resolution 90-10-10) That Section IV (Application of Rates) of the Rules and Regulations for Electric Service be amended to include a new paragraph L - Application Charges with an effective date of February 1, 1990 (see Attachment D). Respectfully submitted, Gerald W. Williams, Chair Pro Tern Committee of the Whole BY COMMISSIONER WILLIAMS SECONDED BY COMMISSIONER BELEN That the Committee of the Whole Report, including Resolutions 90-10-9 and 90-10-10 be accepted as presented. Adopted unanimously. .49 October 23, 1990 COMMITTEE OF THE WHOLE REPORT October 23, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan Dear Ladies and Gentlemen: The Committee of the Whole reports it met on October 16, 1990 to review and discuss the following matters: 1. Economic Development Rider 2. Demand Side Management Rate Study 3. Application Charge Present were Commissioners Belen, Evans, Jessop, Hassler, O'Leary, Strolle, and Williams. Absent was Commissioner Sebolt. Economic Development Rates. Treasurer/Controller Dana Tousley reported that the Economic Development Rider implemented on June 1, 1988 accomplished its purpose. There are five customers currently taking advantage of this rider. The BWL is able to offer some incentive to new or expanding customers to establish their business in Lansing. Demand Side Management Rate Study. Mr. Tousley and Patrick Hurley, Vice President of Management Resources International, presented the results and conclusions of the Industrial Demand-Side Management Rate Study, which included an analysis of a combined commercial and industrial time-of-use rate proposed as a replacement for the existing Rate 5. Application Charge. General Manager Pandy proposed a change to the Rules and Regulations for Electric Service to justify lowering the application charges for leave-on (landlords) customers. Following the detailed presentations and discussion, proposed Electric Service rate changes listed below are hereby recommended: RATE CHANGES Resolution 90-10-9 1. That the current Electric Economic Development Rider, as amended, be renewed for three years to December 31, 1993 (see Attachment A). 2. That the Primary Service Time-of-Use Rate be implemented for all existing Rate 5 customers on a mandatory basis. In effect the proposed rate would become a new Rate 5 (see Attachment B). 3. That the proposed Scheduled Curtailable Service Rider be implemented, but its availability should be limited to a maximum of 10 MW contracted from June 1991 to May 1993 (see Attachment Q. October 23, 1990 148 CONBUTTEE OF THE WHOLE REPORT October 23, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met with staff on September 25, 1990 to receive a briefing on the status of the new combined billing system, also known as the Customer Information System (CIS). Present were Commissioners Evans, Hassler, Jessop, O'Leary, Sebolt, Strolle, and Williams (Chair Pro Tem). Absent was Commissioner Belen. Technical Services Director John Elashkar presented an overview of software testing of the Customer Information System, consisting of the following life cycles: Unit Testing Subsystem Testing System Testing Internal Controls/Testing Response Time Testing Stress Testing Mr. Elashkar reported that results of a stress test, conducted on September 18, indicated the computer's response time did not meet acceptable customer service standards. The purpose of the stress test was to simulate the CIS under busy operating conditions to demonstrate performance. The failure to meet response time standards has necessitated a delay in the implementation date of the CIS from October 1 to October 30. The one- month delay will allow sufficient time to install additional computer equipment and to conduct further stress tests. To facilitate the migration of CIS data and other transition preparations, it will be necessary to close the Main Office Building lobby to customers for the entire day on October 29. The new CIS will be on line to serve customers on October 30. CIS User Group Leader Virginia Cluley and Development Group Leader Jim Wile presented a demonstration of available features of the new system. A typical service request was displayed on a video screen listing the combined charges for electric and water utilities and City of Lansing sewerage charges. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER WILLIAMS SECONDED BY COMMISSIONER BELEN That the Committee of the Whole Report be accepted as presented. Adopted unanimously. 147 0ttober 23, 1990 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, October 23, 1990 The Board of Commissioners met in regular session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Strolle, and Williams - 7 Absent: Commissioner Sebolt - 1 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Executive Staff members were present. (An attendance list is filed in the Secretary's Office.) The Invocation was given by Chairman Hassler. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That minutes of regular session of September 25, 1990 and special session of October 16, 1990 be approved as mailed. Adopted unanimously. PUBLIC COMMENTS CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. Mr. Donald Hines of Fraser, Trebilcock, Davis & Foster, spoke on behalf of the Lansing Industrial Council of the Lansing Regional Chamber of Commerce. He stated that the Industrial Council supports Resolution 90-10-9 regarding electric rate changes being proposed by the Committee of the Whole, which calls for a public hearing on December 11, 1990 to solicit public input. Mr. Hines stated that the Industrial Council has had excellent cooperation from BWL in preliminary discussions regarding the Economic Development Rider, the Primary S&wicuz '014e-6j�UJQQtA6,,and the Scheduled Curtailable Service Rider. �A8 �'�1 "0 77 November 27, 1990 REMARKS BY BOARD COMMISSIONERS SHARE THE SUCCESS MEASURES. Commissioner Evans commented on the Share the Success (STS) Performance Measures Committee report, dated November 13, 1990. She inquired as to the reason for dropping the fiscal 1990 measures for "Females- Hired/Promoted and "Minorities-Hired/Promoted." She stated that an organization makes a statement in many ways and that in her opinion the BWL was unique by having measures for female and minority hiring and promotions. Commissioner Evans requested a copy of information outlining the female and minority representation at the BWL. Commissioner Belen expressed concern over the message that eliminating these measures conveys to the community. Commissioner Williams recalled that the Commissioners were surveyed on these two measures a couple of years ago by the Performance Measures Committee. Commissioner Hassler indicated he was concerned because apparently the measures were considered important when the STS program was first implemented. General Manager Pandy responded that equal opportunity hiring and promotion practices will remain a corporate goal of the BWL. The organization will continue to strive to improve in that area despite the fact that it is not part of the STS program. Mr. Pandy noted that prolonged union negotiations contributed to the delay in submitting the STS performance measures to the Board for approval. The process that led to the decision of eliminating the measure was explained. With the STS program well into its fifth month, the STS committee would be willing to reassess the measure for the next fiscal year ending June 30, 1992. Mr. Pandy stated that he would feel comfortable including this item as an objective in his personal performance appraisal. DISCUSSION REGARDING LANDFILL SITES FOR GENERATING ENERGY. Commissioner Hassler commented that Granger Construction is using a landfill site for a gas generation facility and suggested that the BWL should investigate the potential of converting a landfill to an electric generation facility. General Manager Pandy responded that the economics in constructing and operating an electric generation plant may not make this a feasible project. Mr. Pandy noted that the BWL has implemented a paper recycling program, which is already showing a 50 percent reduction in the disposal volume at the main office building. EXCUSED ABSENCES BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That the absence of Commissioner Sebolt be excused. Adopted unanimously. On motion of Commissioner O'Leary, the Boar�dJadjo ed at 6:53 p.m. Mary E. dva, Secretary Filed: November 30, 1990 James D. Blair, City Clerk November 27, 1990 176 UPCOMING MEETINGS. December 11 - 5:30 p.m. Public Dearing • Economic Development Rider and Primary Service Rate 5 Committee of the Whole Meeting s Capital Project review December 12 - 12 Noon Personnel Committee ® Quarterly review of pension investments PERSONAL ANNOUNCEMENTS. General Manager Pandy notified the Commissioners of the death of Skyler Sebolt who is the infant son of employee Brian Sebolt (Ottawa Station) and the grandson of BWL Commissioner Jack Sebolt. The BWL also mourns the death of Councilmember Louis Adado who is the father of employee Tom Adado (Consumer Services Department). IDEAS FOR ELECTED AND APPOINTED OFFICIALS. General Manager Pandy handed out an article on "Suggestions for Successful Public Service" published in the December 1989 issue of Michigan Municipal Review. A checklist of 49 guidelines for elected and appointed officials to govern better are outlined. Mr. Pandy noted that one of the ideas suggested is meeting once a year to discuss how the Board is governing and to review the processes and procedures. This concept was suggested by Commissioner O'Leary. M.M.E.A. LEGAL DEFENSE FUND. General Manager Pandy reported that the Michigan Municipal Electric Association (MMEA) has established a legal defense fund to assist cities which are involved in litigation that may impact other Michigan Municipal utilities. Consumers Power Company is attempting to invade the largest industrial accounts served by the City of Marshall, and extensive litigation is process. MMEA has committed $20,000 of reserve funds to this effort, and is also seeking further assistance from MMEA members. Mr. Pandy proposed that the BWL support this fund. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER JESSOP WHEREAS, the Michigan Municipal Electric Association (MMEA) has established a Legal Defense Fund ("the Fund") to provide assistance on legal matters of significant importance to municipal electric utilities, which assistance may include amicus briefs and direct monetary assistance, and WHEREAS, by contributing to the Fund, the Board of Water and Light (BWL) will help establish legal principles favorable to it and its present and future customers, and WHEREAS, by contributing to the Fund, the BWL will be better able to make requests for assistance from the Fund, NOW, THEREFORE, the BWL contributes $1,000 to the MMEA Legal Defense Fund. Adopted unanimously. 175 November 27, 1990 BARRIER FREE DESIGN EXCEPTION GRANTED AT 730 E. HAZEL FACILITY. Plans for building modifications on the second floor of the 730 E. Hazel Street building included the construction of access ramps and installation of an elevator to comply with the Barrier Free Design (BFD) Code. Due to the age of the building and the high cost of compliance with the BFD, an application for exception from the requirement of a BFD was filed with the State of Michigan Department of Labor. As a result of the hearing on September 19, 1990 to review the application, the administrative law judge recommended to the BFD Board that an exception be granted. On October 19, 1990, the BFD Board accepted the recommendations granting the BWL an exception with the stipulation that grab bars are to be installed in the bathrooms. The granting of this exception will save the BWL $200,000 on the modification project. REPORT ON BUDGET REDUCTIONS. General Manager Pandy reported that with a slowdown in the economy and a projected $9 million decline in revenues this fiscal year, $6.5 million has been cut from the fiscal 1990-91 operating budget. Mr. Pandy presented a summary of the budget cuts by division. It was noted that the budget reduction was accomplished without laying off employees. Labor related cutbacks were accomplished through the reduction of overtime and outside services. The total capital budget was also reduced by $7 million by eliminating and/or delaying certain projects as summarized. P.C.B. TRANSFORMER REPLACEMENT PROGRAM EXTENDED. General Manager Pandy advised that the PCB Transformer Replacement Program for PCB contaminated transformers, originally scheduled for completion in December, 1992, is one of the projects being extended one year in order to minimize overtime costs. He noted that the BWL is already in compliance with EPA regulations and that the extension will not jeopardize the BWL's position in regard to any environmental rules and regulations. Following discussion, the Commissioners concurred with staff's decision to extend the completion date of eliminating PCB contaminated transformers to December 1993. UPDATE ON B.W.L. SAFETY. A survey of BWL employees indicates that seat belt use has increased from 40 percent in 1989 to 70 percent in 1990. General Manager Pandy presented the following accident report update: Last Year Sept. 1990 90-91 FYD Same Time Lost Time 3 6 4 Restrictive 3 8 13 Medical 1 3 3 Auto 1 5 4 Management is continuing to monitor and emphasize the safety issue. UPDATE ON LANSING REGION CAPITAL CHOICE PROGRAM. A digest of the Michigan Capital Choice Program for the Lansing region was handed out. The BWL and its utilities services are mentioned in the brochure, including information regarding the Economic Development Rider for customers with a new load demand of more than 100kw. WACOUSTA ELEMENTARY SCHOOL THANKS B.W.L. A letter of thanks was received from the Wacousta Elementary School for the BWL's assistance with their Playground Project. The BWL's boom auger was loaned for this project and employee Andy Joostberns contributed his building talents on a weekend. November 27, 1990 174 Employees who fail to pay their utility bill on a timely basis will receive coaching and will be advised of the opportunity of paying their bill through payroll deduction. If the employee declines, the same collection procedures implemented for other customers will be instituted. Commissioner O'Leary suggested that the policy be revisited in six months to determine if it has addressed the purpose for which it was intended. LLOYD TEETS APPEAL MATTER. The Commissioners received a copy of the report submitted by the Independent Dearing Officer regarding the dispute hearing of Lloyd Teets, held on November 2, 1990. It was the decision of the Blearing Officer that the electric bills rendered by the BWL should stand as submitted. General Manager Pandy reported that Mr. Teets had requested an adjournment from the November, 1990, Board meeting because specific information requested had not yet been received. Mr. Pandy noted that staff has responded to all of Mr. Teets requests, which has culminated into a 92-page packet of correspondence and background information. Mr. Teets first appeared before the Board on January 23, 1990 to express his concerns regarding procedural differences stemming from the City's demolition of his vacant property at 4501 Ingham Street and the BWL's removal of utility services at that address. The sequence of events leading to Mr. Teets request for an appeal were summarized. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER O'LEARY RESOLVED, That the decision of the Independent Hearing Officer be upheld as submitted. Staff Attorney Wilhite advised the Commissioners that the Board's Dispute and Hearing Procedure states a customer has the right to appeal the Independent Hearing Officer's decision before the Board at a pre-arranged time. Further, Mr. Teets' letter to the Secretary of the Board specifically requested an adjournment from the November, 1990, Board meeting. The BWL Rules and Regulations for Electric Service provide that failure of a customer to appear at the time set for the appeal without due cause, or to request for an alternate date will constitute a waiver of right to appeal. Thereupon, Commission Belen withdrew her motion. Following discussion, it was the consensus of the Board that the date for Mr. Teets' appeal on the 4501 Ingham Street account balance of$19.94 be set for the regular Board meeting of December 18, 1990. The Commissioners further concurred that Mr. Teets' balance on his 116 E. Elm Street account is not part of the dispute and, therefore, the current amount of$519.26 is due as rendered. GENERAL MANAG-ER'S REMARKS The following activities were reported by the General Manager: UPDATE OIL NEW CUSTOMER INF'OPV ATION SYSTElk4 (CIS). The CIS went on line on October 29, 1990, with a response time of 1.3 seconds. All customers will have received the new billing statement by mid-December. Responses to customer inquiries on the new billing format are taking longer than usual during this phase-in period, however, it is expected that customer service inquiries will be expedited after the first billing cycle runs its course. 173 November 27, 1990 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER STROLLE RESOLVED, That Resolution 90-11-1 (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-11-2 (Communications/Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-11-3 (Engineering Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 90-11-4 and 90-11-5 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. UNFINISHED BUSINESS BILL PAYING POLICY STATEMENT FOR EMPLOYEES AND COMMISSIONERS As a follow-up to the Finance Committee Report (page 169 of minutes), General Manager Pandy handed out a proposed policy statement that would establish the expectation for employees to pay their BWL utility bills by the due date. The policy is intended to set an example to the community that employees have a special obligation for timely payment of BWL utility bills because of their employment at the BWL. Management's role in monitoring employee past due accounts that are habitually late was discussed. Commissioner Williams suggested that the Commissioners should be included in the policy. BY COMMISSIONER EVANS SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That all employees and BWL Commissioners shall pay their BWL bills by the due date. Adopted unanimously. Jovember 27, 1990 172 PENSION (Continued) Res. No. 90-11-5 That Donnie R. Vandergriff, Steam Filter Mechanic A in Steam Distribution,be placed on a disability pension of$1,111.37 per month effective November 1, 1990. Mr. `Iandergriff has worked for the BAIL.24.20 years and is 43 years of age. -------------------- Respectfull ubmitted, Joseph Pandy,Jr. General Manager JProg 171 November 27, 1990 ENGINEERING PLANNING Res. No. 90-11-3 It is recommended that a purchase order be issued to Battelle Memorial Institute (Battelle), Columbus, Ohio,in the amount not to exceed$50,754,to provide a 20 year electric load and energy forecast in accordance with their proposal dated October 17, 1990. -------------------- This project is being recommended for the following reasons: 1). The load and energy forecast is an essential part of the BWL's operation and planning. It can be described as the starting point or driving factor of all utility functions. 2). The need for assistance to develop a new forecast at this time due to other scheduled projects. 3). This forecast would be a significant improvement over those in the past since it will provide an hourly forecast of end-uses with temperature and price elasticity being a part of the dependent variables. 4). It will serve as a foundation for upcoming demand side management (DSM) studies. -------------------- PENSION Res. No. 90-11-4 That David Kingery, Line Worker in Line Construction, be placed on a disability pension of$1,138.84 per month effective October 27, 1990. He has selected Option IV with the provision that after his death, if his wife,Patricia Ann Kingery, survives him she will receive$1,138.84 per month for the rest of her life. If his wife predeceases him,the pension amount of$1,138.84 will revert back to the regular pension amount of$1,276.05 for the rest of his life. Mr. Kingery has worked for the BWL for 24.92 years and is 48 years of age. -------------------- Iovember 27, 1990 170 November 27, 1990 Recommendations Board of dater and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-11-1 Approve the recommendation of the Share the Success Management Committee for Performance Measures for FY 1990-91 Share the Success Plan (STS) and that employees will be eligible to receive a Performance Bonus of 0 - 5% as determined by the final Performance Measures points earned for FY 1991. -------------------- If all goals are reached, the BWL will realize a cost savings of$6,501,111 and employees will earn up to 500 points, or a 5.0% STS bonus equal to$1,700,000. The net savings to BWL will be $4,801,111. (See memo attached from Employee Measures Committee dated 11/13/90). -------------------- COMMUNICATIONS/ MARKETING Res. No. 90-11-2 That staff be authorized to purchase two G- Ian electric vehicles and associated equipment to gain practical experience with electric vehicles and to demonstrate the technology to potential purchasers in the Board of Water and Light's service territory. This authorization will add$137,066 to the 1991 capital budget. -------------------- Demonstration and promotion of electric vehicles was identified during the 1989 strategic planning process and is included in our long range business plan. The 1989 strategic planning new ventures task force recommended lease of three G- Tans. Funds for leasing the vehicles were included in the Marketing Department's 1991 budget. The company that manufactures the G-Van has been unable to establish a leasing program. Other avenues to lease the vehicles have also been explored but have been unsuccessful. Purchase of two vans will allow us to proceed with the demonstration program while saving more than$26,000 in interest that we would incur by leasing three vehicles. -------------------- 169 November 27, 1990 Assistant General Manager Joe Wolfe briefed on the status of the transmission access, ownership and coordination issue. On November 28, 1989, the Board authorized the BWL to participate with the Michigan Municipal/Cooperative Group (MMCG) in the pending FERC case and related power supply matters. As the Chairman of the MMCG Steering Committee, Mr. Wolfe presented the highlights of a statement submitted on behalf of the MMCG before the Michigan Pubic Service Commission on November 6, 1990. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER WILLIAMS SECONDED BY COMMISSIONER O'LEARY That the Committee of the Whole Report be placed on file as corrected. Adopted unanimously. FINANCE COMMITTEE REPORT November 27, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Finance Committee met on October 23, 1990 to receive a quarterly update from the Internal Auditor on audit activities. Present were Commissioners Hassler (Chair), Belen, Evans, and Williams (alternate). Internal Auditor Kellie Willson reported on a recent internal audit conducted in the Cashiers section of the Consumer Services Division. This investigation was the result of a $1,300 shortage in the Cashiers section of Customers Service. As a result of the cash count, a shortage was discovered in one cash drawer and breaches of responsibility by four other employees were uncovered. As a consequence to this investigation, other sections of the Consumer Services Division for illegal acts and breaches of responsibility are being scrutinized. The feasibility of setting a policy requiring all BWL employees to pay their BWL utility bills by the due date is being investigated by staff. Respectfully submitted, Phillip E. Hassler, Chairman Finance Committee BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER EVANS That the Finance Committee Report be placed on file as received. Adopted unanimously. November 27, 1990 168 COMMTTEE OF THE WHOLE REPORT November 27, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met with staff on November 13, 1990, to receive an update on the integration of the Belle River entitlement and the electric transmission access. Present were Commissioners Belen, Evans, Jessop, Hassler, O'Leary, Strolle, and Williams (Chair Pro Tem). Absent was Commissioner Sebolt. Assistant General Manager Joe Wolfe presented a historical overview of events which resulted in the decision of the Board of Water and Light to acquire 156 MW in the Belle River Project of the Michigan Public Power Agency (MPPA) in 1982. The MPPA Project consists of a 37.22% (242 NM undivided ownership interest in Belle River Unit No. 1, a coal-fired electric generating unit which is part of a two unit generating station constructed by Detroit Edison Company in St. Clair County, Michigan. The BWL contracted to purchase 64.29% (156 NM of the generation and transmission capability of the MPPA Belle River Project. Bill Cook, Technical General Supervisor of the Brush Electric System Operating Center (BESOC), presented an overview of Belle River power entitlements for the eleven participating municipalities, as agreed upon in the MPPA contract. Included in the review were the Belle River operating guidelines, power scheduling and reserves, and costing information. Following is the schedule for integrating the 150 MW Belle River entitlement delivered into the BWL system: Calendar Year MW 1991 15 1992 30 1993 120 1994 135 1995 150 Doug Wood, General Supervisor, Electric Planning, presented a status update of the Erickson/Oneida Interconnection required to be in service by January 1, 1993. The Consumers Power Company right-of-way acquisitions, mitigation efforts and engineering work tasks were reviewed. In depth discussion was held regarding BWL engineering work and costs for the Oneida Transmission Project. Treasurer/Controller Dana Tousley reported that the BWL has estimated and is prepared to pay for and account for Belle River transactions. He presented financial forecasts predicting rate increases sometime during Fiscal Years 1993 and/or 1994 as the result of Belle River. 167 November 27, 1990 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, November 27, 1990 The Board of Commissioners met in regular session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Strolle, and Williams - 7 Absent: Commissioner Sebolt - 1 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Staff members were present. The Invocation was given by Chairman Hassler. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS That minutes of regular session of October 23, 1990 be approved as mailed. Adopted unanimously. PUBLIC COMMENTS CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. 03 fi Wd C 330 06, 0 2114V,-71 •"^2?1; December 18, 1990 1% REMARKS BY COMMISSIONERS RULES OF ADMIMSTRATIVE PROCEDURE. Commissioner Hassler commented on Resolution 90-12-2 relative to expanding the membership of the Finance and Personnel Committees. He noted that by increasing the committee membership from there to four members, with two alternates, all the Commissioners would have the opportunity to participate in committee meetings. Two members attending a standing committee will constitute a quorum; this is unchanged. The Rules will be submitted to the City Attorney for approval as to form and will then be filed with the City Clerk for transmission to the City Council. Once Council ratification is received, the changes will take effect immediately. APPRECIATION FOR EXPRESSIONS OF SYMPATHY. Commissioner Sebolt thanked the Commissioners and staff for their kindness during the loss of his grandson. APPRECIATION EXTENDED TO BWL EMPLOYEES. The Commissioners extended their appreciation for committed efforts in improving the flow of information between the Commissioners and employees. Gratitude was also given to employees for their contribution to the organization by being present at Board meetings for input and to respond to questions that often surface during Board discussions. A4 ' 4M Mary E. ova, Secretary Filed: December 21, 1990 James D. Blair, City Clerk 195 Decunb r 18, 1990 COST REDUCTION, SALE/RESALE FOR LOW QUALITY COAL. An innovative effort being investigated by the Electric Utility is the burning of lower quality coal at Eckert Station. The objective is to reduce fuel costs to stimulate export power sales. The plan calls for dedicating one of the smaller, less efficient units at Eckert Station to burn this type of coal on a continuous basis and gather necessary information. The higher quality coal would be burned during the day and a lower grade of coal would be burned during offpeak hours. This approach would reduce generating capacity and cost per kilowatt-hour. The Electric Utility has analyzed environmental concerns to assure compliance with regulations. A periodic update will be made on the progress of this effort. PROPOSED CITY OF LANSING RECYCLING UTILITY. The City of Lansing Ad Hoc Recycling Committee appointed by the City Council will meet on January 9, 1991 to discuss alternatives for billing revenue for the proposed recycling utility. There are three alternatives: (1) a special assessment on all property owners, (2) a flat fee added to BWL electric bills, or (3) an increase in general property tax. Treasurer/Controller Dana Tousley and Technical Services Director John Elashkar plan to attend the January 9 meeting to present the BWL's position on this issue. DELTA TOWNSHIP INVESTIGATING WATER INTERCONNECT. A preliminary meeting between BWL and Delta Township staff is scheduled for January 29, 1991, to discuss the possibility of a Delta Township and BWL water interconnect and the water regionalization issue. BWL staff will be making a formal presentation to the Township Board on February 12. UPCOMING MEETINGS: January 8 at 5:30 p.m. Committee of the Whole (tentative date) • Chilled Water District February 12 Committee of the Whole (in lieu of) • Attend Delta Township Board Meeting BWL VOLUNTEER EFFORTS HIGHLIGHTED. The theme of the 1990 BWL Annual Report and the 1991 BWL Calendar focuses on BWL employee volunteer efforts in the Greater Lansing area. The Commissioners are also recognized for their service on the Board. The Commissioners commended Communications and Marketing Director John Strickler and Public Information Analyst Nancy Johnsen for their outstanding work in creating a worthy theme. COMMISSIONERS RECOGNIZED. The Commissioners were recognized by General Manager Pandy for their years of service on the Board as listed below: Years Completed Lane Jessop 16 years Sr.Mary Janice Belen, R.S.M. 15 years Jack Sebolt 13 years Phillip Hassler 10 years Gerald Williams 8 years Eva Evans 4 years John Strolle 2 years David O'Leary 6 months December 18, 1990 194 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-12-1 through 90-12-6, respectively, (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 90-12-7 through 90-12-9, respectively, (Human Resources) of the General Manager's Recommendations be approved. Commissioner Sebolt suggested inviting the Suggestion Award recipients to the Board meetings for appropriate recognition. Human Resources Director Mark Vander 7agt noted that this is already taking place. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 90-12-10 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS The following activities were reported by the General Manager: BUDGET REPORTS. Copies of the Consolidated Financial Statements, Budget Variance Analysis and Major Capital Projects Status reports for November were handed out for review. It was noted that with the exception of the Water Utility, sales and revenues are off as compared to the same period last year. COURT HEARING ON CASH SHORTAGE INVESTIGATION. The BWL was represented at a court hearing held November 28, 1990 relative to employees involved in the cash shortage in the Cashiers area. General Manager Pandy summarized the disposition of this case. SHARE THE SUCCESS (STS) UPDATE. The STS program through the month of November, 1990, indicates a total of 388 points available. This is a similar score when compared to the same period last year. STEAM UTILITY RANKING. A survey published in the November, 1990, issue of the ENERGY USER NEWS regarding the average 1988 price per thousand pounds (Mlbs.), indicates the BWL's $7.42/Mlbs. is very competitive on steam rates. The highest price topped $15.12/Mlbs. (Pittsburgh Allegheny Co.- Pittsburgh, PA) and the lowest bottomed out at $3.86/Mlbs. (Central Heat Distribution - Vancouver, B.C.). 193 Decanber 18, 1990 Board of Water and Light,Lansing,Michigan Original Sheet No. EB28 SCHEDULED CURTAILMENT SERVICE RIDER Availability-This rider is available to customers on Primary Service Rate No. 5 (Rate 5). A customer desiring service under this rider must contract to curtail its demand upon notice by the Board of Water and Light(BWL) by approximately 1,000 kW or more as described below. The amount of curtailable demand subject to this rider may be limited by the Commissioners in total and by customer. Conditions of Curtailment-The General Manager has authorization to negotiate with qualifying customers as to terms and conditions of this rider. Adopted: December 18, 1990 Effective: February 1. 1991 December 18, 1990 192 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB26 ECONOMIC DEVELOPMENT RIDER Billing Demand-For a new customer, the entire billing demand shall be subject to the capacity charge in this rider and shall never be less than 100 kW and shall not be subject to the 60% provision. For an existing customer, or a new customer with an established contracted historical billing demand, the contracted historical billing demand shall be billed at the capacity charge in the customers principal service rate. Only the billing demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not be subject to the 60% provision. Minimum Charee-A new customer shall have a minimum billing demand of 100 kW. A customer with an established contracted historical billing demand, shall have a minimum billing demand equal to 60% of the contracted historical billing demand. Adopted: December 18, 1990 Effective: February 1, 1991 191 December 18, 1990 Board of Water and Light,Lansing, Michigan 1st Revised Sheet No.EB25 ECONOMIC DEVELOPMENT RIDER Purpose-The primary purpose of this rider is to enhance economic development in the Board of Water and Light (BWL) service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the BWL and its customers. Availability-This rider is available to industrial customers on Large General Service Rate No. 4(Rate 4)or Primary Service Rate No. 5 (Rate 5). For purposes of this rider, an industrial customer is defined as any business which manufactures a product for sale or research and development. This would include usage for facilities directly associated with and on the same premises as the manufacturing business such as offices and warehouses. A customer desiring service under this rider must contract for such service on or before December 31, 1993. This rate will be available for a period of five years from the date of the contract. All provisions of this rider are the same as the principal service rate with the following exceptions: New Customer- Open to a new industrial customer taking service on or after January 1, 1991 where the new load results in 100 kW or more of billing demand. Existing Customer-Open to an existing industrial customer who contracts for a bona fide increase in connected load resulting in an increase of 100 kW, or 10% of their historical billing demand, whichever is greater, or more of billing demand on or after January 1, 1991. Monthly Rate Capacity Charge: A percentage of the capacity charge included in the principal service rate, less credits, as follows: Contract Year `Y 1 50% 2 60% 3 70% 4 80% 5 90% Contracted Historical Billing Demand-An existing customer's contracted historical billing demand will be the average of the three highest registered demands, including metering adjustments, during the twelve(12) month period prior to the contract or as established by mutual consent. The contracted historical billing demand shall be subject to the 60% provision during the contract period. The BWL reserves the right to establish a contracted historical billing demand for all customers with duplicate or replacement operations within the BWL service area. Adopted: December 18, 1990 Effective: February 1, 1991 December 18, 1990 190 Board of Water and Light,Lansing, Michigan 1st Revised Sheet No.EB10 PRIMARY SERVICE RATE NO. 5 Schedule of on-peak and off-peak periods-The on-peak period shall be from 10 a.m. until 6 p.m., Monday through Friday. All other hours shall be the off-peak period. Power Factor Adjustment Customers who have reactive kilovolt ampere-hour(kVARh)metering installed in accordance with BWL Rules and Regulations regarding power factor shall be billed in accordance with the following: (a)The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of.9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 60% of the highest registered demand of the preceding eleven (11) months. (b)The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the BWL reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The BWL may, at its option, determine the power factor by test or by permanently installed measuring equipment. Metering-When the BWL elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately. Delayed Payment Charge-A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Rules and Regulations -Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: December 18, 1990 Effective: February 1, 1991 189 Deceinber 18, 1990 Board of Water and Light,Lansing, Michigan 1st Revised Sheet No. EB9 PRIMARY SERVICE RATE NO. 5 Availability -This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 100 kW or more. The customer shall furnish, install and maintain all necessary transforming, controlling and protective equipment required for the service. This rate is not available for standby or emergency service. Nature of Service-Alternating current, 60 hertz, three phase. The primary voltage to be determined by the Board of Water and Light(BWL). Monthly Rate-Shall be computed in accordance with the following charges: Capacity Charge: $5.08 per kW for all kW of on-peak billing demand, plus $1.65 per kW for all kW of maximum demand. Energy Charge: $0.0315 per kWh for all kWh during the on-peak period, plus $0.0290 per kWh for all kWh during the off-peak period. Energy Cost Adiustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge-The capacity charge included in the rate. Billing Demand On-Peak Billing Demand: The on-peak billing demand shall be the kW supplied during the 15- minute period of maximum use during the on-peak period during the month, but not less than 60% of the highest registered demand during the on-peak period in the preceding eleven(11) months, and not less than 100 kW. Maximum Demand: The maximum demand shall be the kW supplied during the 15-minute period of maximum use during the month whether on-peak or off-peak, but not less than 60% of the highest registered demand during the on-peak period in the preceding eleven(11) months, and not less than 100 kW. Adopted: December 18, 1990 Effective: February 1, 1991 December 18, 1990 188 TREASURER/CONTROLLER (Continued) (Res. No. 90-12-10) That the following electric rate schedules now in effect be rescinded for billing purposes for any electricity used or service rendered on or after February 1, 1991. Adopted Effective Rate 5 -Primary Service 4/26/88 6/1/88 Economic Development Rider 4/26/88 6/1/88 -------------------- Respectfu�l/l ubmitted, (UN-, Joseph Pand ,Jr. P Y General Manager JP/bg 187 December 18, 1990 HUMAN RESOURCES (Continued) Res. No. 90-12-8 That Roger Jeffers, an Underground Supervisor in Line Construction (since retired), be awarded a total of$894.00 for suggestion proposal number 1990-188,to modify a truck to carry two reel racks for secondary meter underground service cable. Having such reels on the service vehicle reduces time pre-cutting wire by Stores personnel; and reduces wasted material and/or extra warehouse trips when secondary metering measurements are inaccurate. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$8,190.00 in the first year. -------------------- Res. No. 90-12-9 That Ray Bannister, an Electrical Technician B-B in Electric Engineering, be awarded a total of$404.50 for suggestion proposal number 1991-061,to buy a torque head for backhoes and trenchers to relieve the need for Truck 109 to install transformer pad screw anchors. Such a modification would relieve wear on Truck 109 and would improve the time needed for these installations. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $3,295.00 in the first year. -------------------- TREASURER/CONTROLLER Res. No. 90-12-10 That the following proposed electric rate schedules, all of which were the subject of a Public Hearing on December 11, 1990, be adopted and applied to all electricity used or services rendered on or after February 1, 1991. (See attachments) Rate 5 -Primary Service Economic Development Rider Scheduled Curtailment Service Rider December 18, 1990 186 ADMINISTRATIVE(Continued) Res. No. 90-12-6 That the Board approve Amendment No. 1 to C-7615 Transportation Contract with Norfolk Southern Railroad (NS) and Grand Trunk Western Railway (GTW), subject to approval as to form by the BWL's Legal Counsel. The amendment particulars are as follows: 1. The term of this Agreement will be extended one (1) year,with an expiration date of December 31, 1991. 2. Volume commitment shall be a minimum of 25,000 tons. 3. Rates to be held firm and free from escalation for the entire amendment period. -------------------- By amending this contract with Norfolk Southern and GTW the BWL will be able to maintain its broad base of potential spot coal suppliers. This will ensure that spot coal competition is maximized. During calendar year 1990,the BWL shipped 47,705 tons under this contract and realized a savings of$14,318 which was passed directly through to our system customers. -------------------- HUMAN RESOURCES Res. No. 90-12-7 That Robert Stewart, a Maintenance Mechanic Supervisor in Production Maintenance, be awarded a total of$559.06 for suggestion proposal number 1990-117, to install grease manifolds on the Moores Park stoker feeders. Such manifolds improve the effectiveness of grease lubrication,reducing costs associated with equipment failure and repair. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$4,840.60 in the first year. -------------------- 185 December 18, 1990 ADMINISTRATIVE (Continued) Res. No. 90-12-3 That in accordance with Article II, Section 2.1 of the Board's Rules of Administrative Procedure, it is recommended that the following list of dates be adopted as the regular meeting schedule for the Board of Water and Light Commissioners for the ensuing six (6) month. 1991 January 22 - Tuesday February 26 - Tuesday March 26 - Tuesday April23 - Tuesday May 28 - Tuesday June 25 - Tuesday Regular meetings of the Board shall commence at 5:30 p.m. This schedule is subject to change as a result of date conflicts with rescheduled City Council meetings. It is further recommended that a notice of the meeting schedule be published in the LANSING STATE JOURNAL the week of January 7, 1991. -------------------- Res. No. 90-12-4 That the Board of Water and Light (BWL) enter into a contract with Michigan Public Power Agency (MPPA) for the sale of partial requirements capacity and energy for the calendar year 1991 in amounts mutually agreed to by the parties. The capacity charge is $3.50 per KW per month and the energy is billed at BWL average out-of-pocket cost plus 10%for the three previous months. MPPA will resell this capacity and energy to six of its member cities who now purchase wholesale power from another supplier. Those cities are Charlevoix, Chelsea, Eaton Rapids, Harbor Springs, Petoskey, and Portland. A chart showing schedule of capacity requirements for 1991 is enclosed. -------------------- Res. No. 90-12-5 That the BWL enter into a contract with MPPA to provide Monitoring, Scheduling, and Dispatching Services until December 31, 2000. BWL's Brush Electric System Operating Center (BESOC) will be the dispatching agent for the new MPPA Power Pool. MPPA will pay BWL for those services in accordance with the terms of the agreement. BWL system operators will dispatch the loads and generation resources of MPPA and its members in accordance with guidelines established by the Power Pool Operating Committee. -------------------- December 18, 1990 184 December 18, 1990 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 90-12-1 That the Safety Bonus of one percent (1%) of base pay, established for fiscal year 1989-90,be continued as an ongoing BWL program to be awarded to individual employees whose safety performance merits same. Procedures and criteria for the award of the safety bonus have been established by the General Manager, with recommendations from the Joint Safety Committee. -------------------- A total of 910 BWL employees received a safety bonus August 31, 1990, ranging from .5 percent to 1 percent for completing the 1989-90 fiscal year without a work- related accident. -------------------- Res. No. 90-12-2 That the second paragraph of Article IX, Section 9.2 of the Board's Rules of Administrative Procedure be amended to expand the membership in the Finance and Personnel Committees as follows: All committees except the Executive Committee shall have 4wee-(3) FOUR (4) regular members and two (2) alternates who shall serve in the absence of regular member(s). The Executive Committee shall consist of the Board Chairman, Vice Chairman, and Chairman Pro Tem. -------------------- The new wording is in capital letters and the old wording is noted with a strikefilrough. -------------------- 183 December 18, 1990 Secretary of the Board Title Change to Corporate Secretary (Resolution 90-12-13) WHEREAS, The position description of the Secretary of the Board has been reviewed to better clarify the scope of responsibilities, BE IT RESOLVED, That the position title of the Secretary of the Board be changed to Corporate Secretary to more accurately reflect the duties and responsibilities of the position, FURTHER RESOLVED, That the revised job description of the Corporate Secretary be approved as presented. Respectfully submitted, E. Lane Jessop, Chairperson Personnel Committee BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT That the Committee of the Whole Report, including Resolutions 90-12-12 and 90-12-13, respectfully, be approved as presented. Adopted unanimously. December 18, 1990 Retiree Health Care Benefit Changes (Resolution 90-12-12) WHEREAS, The Commissioners authorized improvements to active employee benefits on October 16, 1990, RESOLVED, That the following insurance coverage changes be approved for pensioners and beneficiaries to bring them in line with health care benefits provided to the active employees: 1. Hospitalization a. Effective 4/1/91: The co-pay on prescriptions will be increased from $3.00 to $5.00. b. Effective 4/1/91: Care Choices and BC/BS PPO will be offered in addition to Blue Care Network/Health Central and traditional BC/BS. PHP will no longer be offered. 2. Major Medical Effective 1/l/91, coverage will include: a. A separate $100 individual/$200 family deductible will be established for major medical insurance and dental insurance. The current $100/$200 deductible is a combined deductible for both major medical and dental. b. Coverage will include "well visits." C. Mental health coverage will be increased from 50% to 80%. 3. Dental Effective 1/l/91, coverage will be increased to include: a. "Pre-existing" conditions b. Increase in dependent ortho from $1,000 to $2,000 C. $2,000 for adult orthodontics d. Treatment for temporal mandibular joint--"TMJ" e. Increase in BWL co-pay on Class II (crowns, caps etc.) from 50% to 80%. 4. Life Insurance - Effective 1/1/91, the BWL will pay 50% of the life insurance premiums for those retirees who are carrying life insurance and who are required to pay a percent of their premium. (As of 1988, those who retired from the non-bargaining unit do not pay for the premium). 181 December 18, 1990 Major Capital Projects Overrun (Resolution 90-12-11) RESOLVED, That Major Capital Projects, which have exceeded estimated cost amounts by 15 percent or $200,00, whichever is less, be approved as reported. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT That the Committee of the Whole Report, including Resolution 90-12-11, be approved as presented. Adopted unanimously. PERSONNEL COA1NHTTEE REPORT December 18, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Personnel Committee met on December 12, 1990 to discuss and consider the following items: 1. Review of Pension Fund Investments 2. Retiree Benefit Changes 3. Staff Name Change Present were Commissioners Jessop (Chair), Sebolt, and Strolle. Pension Fund The Committee reviewed and discussed the investment status of the Pension Fund as of September 30, 1990. The Committee's recommendation has been submitted to the Pension Fund Trustees for action on December 18, 1990. December 18, 1990 180 COMMTTEE OF THE WHOLE REPORT December 18, 1990 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met with staff on December 11, 1990, to receive a report regarding the overrun of Major Capital Projects. Present were Commissioners Evans, Jessop, Hassler, O'Leary, Strolle, and Williams (Chair Pro Tem). Absent were Commissioners Belen and Sebolt. Engineering staff presented a status report on the following Major Capital Projects that have exceeded estimated cost amounts by 15 percent: Project No. 85-1 - Dam Repair/Monitoring, Eckert Station Original estimated cost: $2,400,000 Revised completion cost: $3,000,000 Bids received were higher than estimates. Also unforeseen field conditions encountered during construction resulted in an increase of$600,000 to the project cost. Project No. 86-2 - Units 4-5-6 Controls, Eckert Station Original estimated cost: $5,000,000 Revised completion cost: $6,935,000 Due to potential cycling of Eckert Station units due to Belle River Power and to provide safer operation of boilers and reduction in the number of operators, it was determined to add a burner management system on Units 1, 2 and 3. This addition resulted in an increase of$1,935,000 to the project cost. Project No 88-105 - North Creyts Double End - Electric Transmission & Distribution Original estimated cost: $ 600,000 Revised completion cost: $1,240,000 The increase in cost of$640,000 was due to: a. Delta Township rejection of the original routing of the ductline. This required rerouting to more difficult field conditions. b. Doubling of copper prices since original estimate. C. Original estimate was low 179 Decmiber 18, 1990 as completed by Mr. Teets. Copies of these materials were provided to each Commissioner for review prior to the meeting. Mr. Scholten pointed out that the $19.94 amount was included in Mr. Teets' check, in the amount of$60.50, mailed to the BWL on September 13, 1990. Mr. Lloyd Teets was present and questioned the method of collecting the $19.94 unpaid balance. General Manager Pandy summarized how the $19.94 came due at 4501 Ingham Street. When Mr. Teets' house on Ingham Street was demolished by the City, the $19.94 balance was transferred to his current account on 116 E. Elm Street. Mr. Pandy acknowledged that the $60.50 payment was indeed received, however, the total amount was applied to Mr. Teets' 116 Elm Street service. Following several communications between Mr. Teets and the BWL, an equivalent $19.94 amount was transferred from his account at 116 Elm and placed in a suspended account for 4501 Ingham. Mr. Pandy presented a history of Mr. Teets' Ingham Street and Elm Street accounts. In order to resolve this dispute, Mr. Pandy suggested transferring the $19.94 balance from the 4501 Ingham suspended account into the 116 Elm Street account, giving Mr. Teets a clean record for 4501 Ingham. In doing so, this would increase the amount due on the Elm Street account by $19.94. The current balance on the Elm Street account would then be: $554.41 plus $19.94. Following discussion the following motion was made: BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN That the 4501 Ingham Street suspended account be credited in the amount of $19.94 to resolve the dispute. This action will increase the amount due at the 116 E. Elm Street account by $19.94. Adopted unanimously. When Mr. Teets was questioned by the Commissioners if he was prepared to pay the delinquent amount due on his 116 E. Elm Street service, and he responded that he was not. Mr. Teets stated that he has explained his legal position clearly; and that this dispute was not how much he owes the BWL, but how much the BWL owes him. General Manager Pandy informed the Commissioners that staff has implemented the normal procedures followed for customers with delinquent accounts prior to shutoff. December 18, 1990 178 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, December 18, 1990 The Board of Commissioners met in regular session at 5:30 p.m, at the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Belen, Evans, Hassler, Jessop, O'Leary, Sebolt, Strolle, and Williams - 8 Absent: None The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Staff members were present. The Invocation was given by Chairman Hassler. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP That minutes of regular session of November 27, 1990 be approved as mailed. Adopted unanimously. PUBLIC COMMENTS CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. Attorney John R. Scholten, representing Lloyd Teets, was present to appeal the decision of the Independent Hearing Officer issued on November 7, 1990 regarding a disputed electric bill in the amount of$19.94. Mr. Scholten stated that he was representing his client only in the matter of the disputed bill from Mr. Teets' former 4501 Ingham Street property. The balance due from Mr. Teets' current address (116 E. Elm Street) was not the issue of the appeal. Mr. Scas, nlref{ed to exhibits A, B and C included as part of the materials submitted by Mr. w 2 aar3p the Customer Appeals Form 011!ISt11Vi "C�-71-0