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Home My WebLink About1991 Minutes BOWL December 17, 1991 142 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Ttiesday, D cembe 17, 1991 The Beard 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, Christian, Evans, Hassler, O'Leary, Sebolt, and S trolle - 7 Absent: Commissioner Williams -1 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Staff members were present. The Invocation was given by Chairman Hassler. cn The Pledge of Allegiance was said by all. L J � APPROVAL, OF MF'4L ES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIOI+IER STROLLS T That minutes of regular session of November 26, 1991 be approved as mailed. Adopted unanimously. PUBLIC CO S 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 A letter, dated November 26, 1991, was received from Ingham County Sheriff Gene L. Wriggelworth expressing appreciation for cleanup efforts on BWL-owned property situated on Schoolcraft Street, Holt. 143 December 17, 1991 CONEMTTEE OF THE WHOLE REPORT December 17, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Committee of the Whole met on December 10, 1991, to review the public hearing record in consideration of proposed electric rate schedules. Present were Commissioners Belen, Christian, Evans, Hassler, O'Leary, Sebolt, Strolle, and Williams. Following discussion, the Committee of the Whole adopted the following resolution and recommends Board approval: AUTHORIZATION TO INCREASE ELECTRIC RATES (Resolution 91-12-6) A. That the following proposed electric rate schedules, all of which were the subject of a Public Hearing on November 12, 1991, be adopted and applied to all electricity used or services rendered on or after January 1, 1992. (see attachments) Rate 1 Residential Electric Service (Sheet Nos. EB1 and EB2) Rate 2 Residential All-Electric Service (Sheet Nos. EB3 and EB4) Rate 3 General Service (Sheet Nos. EB5 and EB6) Rate 4 Large General Service (Sheet Nos. EB7 and EB8) Rate 5 Primary Service (Sheet Nos. EB9 and EB10) Rate 7 Municipal Water Pumping Service (Sheet No. EB11) Rate 9 Outdoor Lighting Service (Sheet Nos. EB13 and EB14) Rate 12 Space Conditioning Electric Water Heating Service (Sheet No. EB16) Rate 21 Residential Electric Service, Senior Citizen (Sheet No. EB17) Rate 31 Street Lighting Service - Board Owned Systems (Sheet Nos. EB18 through EB22) Rate 32 Street Lighting Service - Customer Owned System (Sheet Nos. EB23 and EB24) B. That a new rate for General Primary Service Rate 6 customers be adopted and made effective January 1, 1992. (see attachment) C. That the commissioners hereby restate their intention to review the second and third year rate increases in the normal manner in accordance with their policy, adopted March 29, 1978, which reads: "RESOLVED, that it is hereby determined to be the policy of this Board to annually review all service rates and charges and to annually adjust the rate structures as it may be deemed necessary to accomplish the preservation of the economic stability, to maintain system reliability, and to reduce the financial impact upon the ratepayers." iecember 17, 1991 144 D. That the following electric rate schedules now in effect be rescinded for billing purposes for any electricity used or service rendered on or after January 1, 1992: Adopted Effective Rate 1 Residential Electric Service 5-26-87 6-12-87 Rate 2 Residential All-Electric Service 5-26-87 6-12-87 Rate 3 General Service 5-26-87 6-12-87 Rate 4 Large General Service 4-26-88 6-01-88 Rate 5 primary Service 12.-18-90 2-01-91 Rate 7 Municipal Water pumping Service 5-26-87 6-12-87 Rate 8 Off-pew Electric dater Heating 5-26-87 6-12-87 Service Rate 9 Outdoor Lighting Service 5-26-87 7-01-87 Rate 12 Space Conditioning - Electric 5-26-87 6-12-87 Water Keating Service Rate 21 Residential Electric Service, 5-26-87 6-12-87 Senior Citizen Rate 31 Street Lighting Service - 5-26-87 7-01-87 Board Owned Systems Rate 32 Street Lighting Service - 5-26-87 7-01-87 Customer Owned Systems E. That those customers currently on Rate 8 be moved to the appropriate residential electric rate and that the meters be either removed or totalized with the current domestic service for billing purposes. Respectfully submitted, Gerald E. Williams, Chair pro Tem Committee of the Whole BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN That the Committee of the Whole Report, including Resolution 91-12-6, Authorization to Increase Electric Rues, be approved as submitted. Adopted unanimously. 145 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB1 RESIDENTIAL ELECTRIC SERVICE RATE NO. 1 Availab ily-This rate is available to any single-family residence or individual dwelling unit when the entire electric requirements are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes arc metered separately. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate -Shall be computed in accordance with the following charges: effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0562 $.0592 $.0611 per kWh for all over 500 kWh Water Heating,Discount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 500 kWh,plus the energy cost adjustment,shall apply to the first 800 kWh billed. Energy CoaLAdjunimcd-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. 'r x A 'ustment-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 of Water and Light(BWL)property,or its operation,or the production and/or sale of electric energy,to offset any such cost and thereby prevent other customers from being compelled to share such local increases. M'nim�um Ch&Me-The customer charge included in the rate. DclaycdPatent Cha_®c-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 Change-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. December 17, 1991 146 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB2 RESIDENTIAL ELECTRIC SERVICE RATE NO. 1 Auxili=Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$6.40 per month or part thereof instead of the above customer charge. 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 Adooted:December 17. 1991 Effective:Ianuary 1. 1992 L47 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB3 RESIDENTIAL ALL-ELECTRIC SERVICE RATE NO.2 Availabiljbt-This rate is available to any single-family residence or individual dwelling unit when the entire electric requirements for water heating,cooking and space conditioning are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Moat ]g Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge Summer Billing Months of June through October $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0562 $.0592 $.0611 per kWh for all over 500 kWh Winter Billing Months of November through May $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0553 $.0583 $.0602 per kWh for all over 500 kWh Water Heafiv&Djagaml-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 500 kWh,plus the energy cost adjustment,shall apply to the first 800 kWh billed. spy Cod 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 Adius1 tment-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 of Water and Light(BWL)property,or its operation,or the production and/or sale of electric energy,to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charre-The customer charge included in the rate. Dpayed Payment Cha®e-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 Ch€W-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. December 17, 1991 148 Board of Water and Light,Lansing,Michigan lot Revised Sheet No.EB4 RESIDENTIAL ALL-ELECTRIC SERVICE RATE NO.2 Auxilm=Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$6.40 per month or part thereof instead of the above customer charge. Riles and Rego lay fiords-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted:December 17, 1991 Effective:January 1. 1992 149 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB5 GENERAL SERVICE RATE NO.3 Availa4i1ily-This rate is available to any customer desiring secondary voltage service for any purpose when supplied at one point of delivery through one meter. This rate is not available for emergency or standby service. Nature of S ud ---Alternating current,60 hertz,single phase or three phase. The secondary voltage in each case to be determined by the Board of Water and Light(BWL). Monthly JWc-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $5.60 $5.95 $6.23 per customer per month or part thereof Energy Charge $.0613 $.0644 $.0664 per kWh for the first 1,500 kWh $.0624 $.0658 $.0685 per kWh for all over 1,500 kWh E,a u Adwatm=J-This rate is subject to an Energy Coat Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. T Y A .ustment-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 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 customer charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. Alciobg-Where the BWL elects to measure the service on the primary side of the transformers,the metered kWh thus measured will be reduced by 3%for billing purposes to adjust for transformer flosses. Where the customer receives service through more than one meter,the consumption as registered by the different meters will not be combined for billing purposes,but will be computed and billed separately. Del cd Payrwen�t Ckag,,-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. plicstion ChArco--A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted:December 17. 1991 Effective:January 1. 1992 December 17, 1991 150 Board of Water and Light,Lansing,Michigan let Revised Sheet No.EB6 GENERAL SERVICE RATE NO.3 Auxili=Power Provis�an-Customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$12.46 per month or part thereof instead of the above customer charge. Rubs n R �I�ations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted:December 17. 1991 Effective:Jams= 1. 1992 151 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB7 LARGE GENERAL SERVICE IRATE NO.4 Availab*14-This rate is available to any customer desiring secondary voltage for any purpose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kW or more. This rate is not available for standby or emergency services. Nature of 5eudce-Alternating current,60 hertz,single phase or three phase. The secondary voltage to be determined by the Board of Water and Light(BWL). Monthly Ra;g-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Capacity Charge $7.4.6 $7.90 $3.19 per kW for all kW of Billing Demand Energy Charge $.0336 $.0356 $.0369 per kWh for all kWh F�ne�v t nstmen,-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 A 'u ecat-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 property,or its operation,or the production and/or sale of electrical energy,to offset any such cost and thereby prevent other custorners from being compelled to share such local increases. Minim m _h rup-The capacity charge included in the rate,except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. B'lli g Demand-The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 60%of the highest registered demand in the preceding eleven(11)months,nor less than 15 kW. Adopted:December 17, 1991 Effective:Jsnuary 1. 1992 December 17, 1991 152 Board of Water and Light,Lansing,Michigan lot Revised Sheet No.EBS LARGE GENERAL SERVICE RATE NO.4 Power Factor Adiustment 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 .€3500,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. AfticEing-Where the BWL elects to measure the service on the primary side of the transformer,the metered kW and kWh quantities thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installation,the consumption as registered by the different metering installations will not be combined for billing purposes,but will be computed and billed separately. Delayed Pa=rnt Cha_cge-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. Annli Aion Cha=-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. Rul end Rq ;4glR4ioras-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: December 17, 1991 Effective:January 1. 1992 153 December 17, 1991 Board of Water and Light,Lansing,Michigan 2nd 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. Tlie primary voltage to be determined by the Board of Water and Light(BWL). Monthly Rate-Shall be computed in accordance with the following charges: effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Capacity Charge $5.31 $5.69 $5.92 per kW for all kW of on-peak billing demand,plus $1.73 $1.86 $1.94 per kW for all kW of maximum demand Energy Charge $.0330 $.0354 $.0369 per kWh for all kWh during the on-peak period,plus $.0303 $.0325 $.0338 per kWh for all kWh during the off-peak period. ustment-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 A stment-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 custorners 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 17. 1991 Effective:January 1. 1992 December 17, 1991 154 Board of Water and Light,Lansing,Michigan 2nd Revised Sheet No.EB10 PRIMARY SERVICE BATE NO.5 Schedule of on -The on-peak period shall be from 10 a.m.until G p.m.,Monday through Friday. All other hours shall be the off-peak period. Power Factgp att went 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 increase)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 B"NVL 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. Dclayrd dad rat h rr r-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. ®nolication C'h r -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 -Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted:J2=cmber JZ 1991 Effective:janu 1. 1992 155 December 17, 1991 Board of Water and Light,Lansing,)Michigan Original Sheet No.E1310-1 GENERAL PRIMARY SERVICE RATE NO.6 Availabilil,y-This rate is available to any customer desiring primary voltage service for any purpose when supplied at one point of delivery through one metering installation. This rate is not available for emergency or standby service. Nature of Service-Alternating current,60 hertz,three phase. The primary voltage in each case to be determined by the Board of Water and Light(BWL). Monthly Rate-Shall be computed in accordance with the following charges. Customer Charge $13.50 per customer per month or part thereof Energy Charge $.0760 per k'Wh for all kWh F.nergv oa A 'uatmcnt-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 A ' tment-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 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. Mairnum_ _tom ra' -The customer charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. hiciming-Where the BWL elects to measure the service on the secondary side of the transformers,the metered kWh thus measured will be increased by 3%for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installation,the consumption as registered by the different metering installations will not be combined for billing purposes,but will be computed and billed separately. Delay 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 Chime-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 R tim-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted:December 17, 1921 Effective:Ianu= 1. 1992 December 17, 1991 156 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB11 MUNICIPAL WATER PUMPING SERVICE RATE NO.7 Availability-This rate is available to any political subdivision or agency thereof of the State of Michigan located within the Board of Water and Light(BWL)service area desiring service for potable water pumping and associated potable water production equipment when the entire electrical requirements are supplied at one point of delivery through one meter. This rate is not available for emergency,standby,or auxiliary service. Nature of Service-Alternating current,60 hertz,three phase. The secondary or primary voltage in each case to be determined by the BWL. Mont site-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Energy Charge $.0503 $.0535 $.0562 per kWh for all kWh F"nemy 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 A justmcgl-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 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. Metcdng-Where the BWL elects to measure the service on the primary side of the transformers serving the customer,the metered kWh thus measured will be reduced 3%for billing purposes to adjust for transformer losses. Del�we�i Pa at Chafe-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 Chawgc-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. Ru�]RwLla i�x a-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Deccrnber 17. 1221 Effective:JanuaW 11. 1992 157 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB12 OFF-FEAR ELECTRIC WATER HEATING SERVICE RATE NO.8 THIS RATE HAS BEEN CANCELLED. Adopted:December 17. 1991 Effective:lQu y 1. 1992 December 17, 1991 158 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB13 OUTDOOR LIGHTING SERVICE BATE INTO.9 Availability-This rate is available to any customer located within the Board of Water and Light(BWL)service area for dusk to dawn lighting of customer's premises. All lights will be furnished and maintained by the BWL and will be installed so as to overhang private property from existing or new poles set at points accessible to the BWL construction and maintenance equipment. This rate is not available for purposes of street,highway,or public thoroughfare lighting. onthb ate-Shall be computed in accordance with the following charges. Luminaire on Overhead Mast Arm on existing BWL poles effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 . s,�irw So-dirrm too $7.31 $7.47 $7.78 250 W $12.53 $12.81 $13.34 400 W $13.43 $13.73 $14.29 l�r„�c�Vail 175W $7.31 $7.47 $7.78 400 F',' $12.53 $12.81 $13.34 Floodlighting Luminaire on Bracket farm on existing BWL poles ]�sgh�aes.� seat, ➢�r_e_�odi�wm 100 W 60P10.82 $11.06 $11.51 250 71 $13.33 $13.62 $14.18 400 W $15.63 $15.97 $16.62 In the event that additional facilities or rearrangement of existing facilities shall be required to serve customers,the BWL shall install,operate and maintain such facilities for the following monthly charges: �i�re cog �;iILN,�e�a 35-foot wood poles $4.21 84.30 $4.48 per pole including span of overs'alend secondary ension 37-foot concrete pole $10.22 $10.44 $10.87 per pole including span of overhead secondary extension Other facilities,hand set 1.5% 1.53% 1.59% of estimated costs poles,or i-e:�rrangem ent of existing facilities lRates apply to existing luminaires only and are not open to new business. Adopted:Dcgernbs 1L. 1991 Effective:Tan_ aW 1. 1992 159 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB14 OUTDOOR LIGHTING SERVICE RATE NO.9 Tax A iustment-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 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. Dclayed Pavement 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. Service Contract-A written service agreement shall be entered into to take service for a term of years determined as follows: (a) One year,if additional facilities are not required. (b) Three years,if additional facilities are required. In the event the customer discontinues service before the end of the agreement term,the established rate for the remaining portion of the agreement shall immediately become due and payable. BWL will replace lamps or make repairs as soon as practical after the customer has reported that the installation requires servicing. Such replacements and repairs,however,will be made during regular working hours. The BWL may refuse or restrict the service provided in this rate to seasonal type customers and/or the BWL may require such customers to pay for the service annually in advance where the permanency of the customer is doubtful or has not been demonstrated by the customer. If relocation,including adjustment,of the outdoor protective light or relocation of other facilities used in connection with the light is desired by the customer during the term of the contract,the BWL will provide this service,if feasible,at the customer's expense. Rides and i2 g uIL atiaaa-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted:D�jMber 17, 1921 Effective:7�ylr 1. 1922 December 17, 1991 160 Board of Water and Light,Lansing,Michigan Original Sheet No.EB15 TRAFFIC LIGHT SERVICE RATE NO, 11 Availability-This rate is available to any political subdivision or agency of the State of Michigan located within the Board of Water and Light(BWL)service area desiring unmetered secondary service for operating traffic lights installed on streets or highways for traffic control and guidance. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Marathly Rak-Shall be computed in accordance with the following charges. Energy Charge $.0226 per watt of active load per month The actual labor,material,miscellaneous and indirect expense charges experienced maintaining and relamping traffic signals during the preceding month. �.Lmmi-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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. Mini Opt Chaff-$1.50 per month or part thereof. DelsyedPavmer,F -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. Det-rminatioa�F lactiv�Q� -The active load of flasher lamps or cyclically operated traffic control lamps shall be 50%of total wattage of all lamps used during one complete cycle of operation. The active load of continuous,non-intermittent steady burning lamps shall be 100%of the total wattage of all lamps used. Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Aby 26,122-7_ Effective: Jujy 1. 1987 161 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB16 SPACE CONDITIONING ELECTRIC WATER BEATING SERVICE RATE NO. 12 Availahility-This rate is available to any customer desiring service for commercial/industrial space conditioning and/or electric water heating furnished through a separate meter to which no other electrical device except electric space heating,electric air conditioning,humidity control equipment or electric water heating equipment may be connected. Electric space heating will be considered to include heating by light system provided the primary means of space heating at the time of maximum heating requirements will be furnished by the lighting system with the balance of the heating requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal source of space heating,or to the use of electricity for occasional or seasonal substitute for another method of water heating. Nature of Service-Alternating current,60 hertz,single phase at Board of Water and Light(BWL)available secondary voltage. Three phase service will be furnished at BWL option. Month Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $4.97 $5.36 $5.66 per customer per month or part thereof Energy Charge Summer Billing Months of June through October $.0591 $.0637 $.0673 per kWh for all kWh Winter Billing Months of November through May $.0534 $.0575 $.0607 per kWh for all kWh Rnergy Cost Adjisiment-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-Bill 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 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 Cham_e-The customer charge included in the rate. Delayed Pa==JjChu&c-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 ChaMc-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:Deccmher 17, 1991 Effective:Jan__= 1. 1992 December 17, 1991 162 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB17 RESIDENTIAL ELECTRIC SERVICE,SENIOR CITIZEN RATE NO.21 Availability-This rate is available to any single family residence or individual dwelling unit when the entire electric requirements are supplied at one point of delivery through the same meter and where the customer is 65 years of age and head of the household being served. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Customers taking service under this rate shall provide evidence of age and contract with the Board of Water and Light(BWL)to remain on this rate for at least twelve(12)months. Nature nU�a d-m-alternating current,60 hertz,single phase, 120/240 nominal volts. Manxhly I2atc--Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Custon3er Ch`rge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Cha Te $.0380 $.0402 $.O416 per kWh for the first 300 kWh $.0615 $.0650 $.0673 per kWh for the next 200 kWh W.0843 $.0891 $.0923 per kWh for all over 500 kWh r Ten � 1-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 300 kWh,plus the energy cost adjustment,shall apply to the first 500 kWh billed and the rate used for the next 2001cW1,plus the energy cost adjustment,shall apply to the next 300 kWh billed. EncEey Ca LAdj :4ia tm_A-This rate is Gubject 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. T_�r As9i�ctrae Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fern,franchise fees,or any other charges against the B ArL 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. l�dirwirrear ('3aar The customer charge included in the rate. j l red I�Ftivraaerl -A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,shall be added to any bill which is not paid or,or before the due date. I�is atipRE-ha -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&%d_U%WatiWji-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: er 7. t291 Effective:]an= 1. 1992 163 December 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB18 STREET LIGHTING SERVICE-BOARD OWNED SYSTEMS RATE NO.31 Availability-Available to any political subdivision or agency of the State of Michigan within the Board of Water and Light(BWL) service area having jurisdiction over public streets or roadways,for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system with secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires. Where an overhead line extension is required to serve one or more luminaires, the BWL will furnish,as part of the facilities to be provided by it under this rate,an average of 350 linear feet of line extension per luminaire to be served from such extension. A special agreement will be required if more than 350 linear feet of line extension per luminaire is required. Nature of Service-The BWL will furnish,install,own,operate,and maintain all equipment comprising the street lighting system, and supply the unmetered energy. The BWL reserves the right to furnish service from either a series or multiple system or both. Annual Rate-The annual rate per luminaire with fixture and setting,payable in twelve(12)monthly installments,shall be as follows: High EmsuCe Sodlllm L�AffiInA�Pe 50 W $56.00 70 W $60.00 100 W $69.00 150 W $79.00 250 W $97.00 400 W $124.00 M=Ury inair.1 100 W $65.00 175 W $77.00 250 W $90.00 400 W $116.00 700 W $177.00 1009 W $220.00 Inan�rseent Luminraire2 2500 L $73.00 4000 L $115.00 6000 L $138.00 Plus an additional charge,depending on type of installation,of: Mast Arm-Overhead Service None -Underground Service $73.00 Bracket Arm-Overhead Service $113.00 -Underground Service $113.00 Post Top $68.00 Historic-Single Top $228.00 -Dual Top $668.00 WalVrunnel-8760 hours $97.00 -4200 hours $58.00 1Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. 2 Rates apply to existing luminaires only and are not open to new business. Adopted:December 17. 1291 Effective:JanuaW 1. 1992 December 17, 1991 164 Board of Water and Light,Lansing,Michigan 1st Revincd Shect No.EB19 STREET LFG TITNr SERVICE-BOARD®FRIED SYSTEMS RATE NO.31 . stomcr CnnIdhE&n-The aforementioned annual rates are based upon fixtures normally stocked by the BWL and installed utilizing normal construction techniques. The:DWL may,at its option,upon customer request install a street lighting system not covered by the above rates. The customer,after installation,will bt required to make a one-time contribution equal to the difference between the actual installed cost and the BBIL estimated installed cost of a standard installation. The annual unit charge for each luminaire will then be as stated previously. Unit R t-The BWL may,at its option,upon customer request replace existing street light units. After installation,the customer shall make a one-time contribution equal to the undepreciated value of the unit plus the cost of removal. llel A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,shall be added to any biil which is not paid on or before the due date. lax-"w&awl-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charpca against the B'IVL 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. Scrrs�^ p, �.e m-The BWL reserves the right to make special contractual arrangements as to termination charges, contribution in aid of construction,tern or other sp.=ial considerations when the customer requests service,equipment or facilities not normally provided under this rate. e�ia1 �8�2cr lsligyo,-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference,. Adopted:Dcccm_her17, 1291 Effective:3Ja uary 1.1922 165 December 17, 1991 Board of Water and Light,Lansing,Michigan 13t Revised Sheet No.EB20 THIS SHEET HAS BEEN CANCELLED Adopted:December 17, 1991 Effective:Ianu= 1. 1992 December 17, 1991 166 Board of Water and Light,Lasing,Michigan 1st Revised Sheet No.EB21 THIS SHEET HAS BEEN CANCELLED Adopted:December 17. 1291 Effective:JiMU&I31 1. 1992 167 December 17, 1991 Board of Water and Light,Lansing,Michigan Ist Revised Sheet No.EB22 THIS SHEET HAS BEEN CANCELLED Adopted: December 17, 1991 Effective:January 1. 1992 December 17, 1991 168 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB23 STREET LIGHTING SERVICE-CUSTOMER OWNED SYSTEM RATE NO.32 Availability-Available to any political subdivision or agency of the State of Michigan within the Board of Water and Light(BWL) service area having jurisdiction over public streets or roadways,for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system available. Natum of Service-The BWL will connect the customer's equipment to the BWL lines,furnish the control equipment,supply the unmetered energy,control the burning hours of the lamps,provide normal replacement of luminaire refractors,control devices and lamps. The customer will furnish,install and own all equipment comprising the street lighting system,including but not limited to the overhead wires or underground cables between luminaires and the supply circuits extending to the point of attachment with the BWL approval. All maintenance and replacement of the customer's equipment except normal lamp and glass replacement shall be paid for by the customer. The BWL reserves the right to furnish service from either a series or multiple system or both. Annual Ft-Ae The annual rate per luminaire,payable in twelve(12)monthly installments,shall be as follows: Annual Rate .50 r>�f $27.00 70 IN' $31.00 100 W $41.00 150 W $50.00 250 W $68.00 400 W $95.00 1 ercu VaPH_L.Umi A=1 175 W $46.00 250 W $61,00 expo W $87.00 700 W $148.00 1000 W $191.00 LP cr :c-nag 2500 L $64.00 4000 L $102.00 6000 L $124.00 Ma_aintcaance C'hae-The actual labor,material,miscellaneous and indirect expense charges experienced maintaining street light units during the preceding month. The annual rate for units consisting of more than one luminaire shall be the appropriate combination of individual unit charges shown above. Tax Ad ualmrid-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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. 1Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. 2 Rates apply to existing luminaires only and are not open to new business. Adopted:Decembcr 17, 1991 Effective:January 1. 1992 169 Decenber 17, 1991 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB24 STREET LIGHTING SERVICE-CUSTOMER OWNED SYSTEM RATE NO.32 DDlayed PA=cnt 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. Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to termination charges, contribution in aid of construction,term or other special considerations when the customer requests service,equipment or facilities not normally provided under this rate. 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 17, 1991 Effective:I n 1. 1992 December 17, 1991 170 Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB25 ECONOMIC DEVELOPMENT RIDER Pmq=-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. Ay&ilability-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: NemJ 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. hbAWjLRAtC Capacity Cl?a gc:A percentage of the capacity charge included in the principal service rate,less credits,as follows: Contract Te 1 50% 2 60% 3 %0% 4 80% 5 90% Contra! rac;f gjr -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 1£1. 1990 Effective: 1, 1991 171 December 17, 1991 Board of Water and Light,Lansing,Michigan lot Revised Sheet No.EB26 ECONOMIC DEVELOPMENT RIDER Billffing 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 December 17, 1991 172 Board of Water and Light,Lansing,Michigan Original Sheet No.EB27 ENERGY COST ADJUSTMENT The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment. In applying the Energy Cost Adjustment the applicable rate per kWh shall be increased or decreased by the amount of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating the monthly Energy Cost Adjustment. Di-Iu 4ima Energy Cost Adjustment-the amount per kWh by which the applicable rates shall be adjusted for billing in each month. Energy Costs-those costs incurred in supplying retail electricity. Such costs shall include fuel burned in the generating plants, energy costs associated with firm power purchases,net interchange power costs,and costs associated with other temporary power transactions such as maintenance power. The cost of fuel burned shall include the delivered cost of fuel(base cost,escalations,premiums/penalties,transportation, demurrage),outside lab fees and oth:.r outside costs related to fuel procurement,and fuel additives such as freeze proofing. The cost of fuel burned shall be computed based on a fixed reference generation efficiency factor(heat rate)for the total electric system. For this purpose the reference efficiency factor shall be 10,740 Btu per kWh for kVVh generated,net of station use. Energy costs recovered by the Energy Cost Adjustment may vary from actual energy costs depending on the actual generation efficiency achieved compared to the reference energy efficiency stated above. Over/Under Recovery-the difference between actual Energy Costs for prior months and the amount of energy cost recovered by means of the Energy Cast Adjustment. The Over/Under Recovery shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month. Base Cost of Energy-the amount of energy cost included in the energy rates of the various rate schedules. Such amount shall not be recovered by means of the Energy Cost Adjustment. om Estimated Energy Cost shall be projected in advance for each month. Any amount of Over/'Jnder Recovery(positive or negative) shall be added to the Energy Cost to determine the total cost basis for the Energy Cost Adjustment. The Base Cost of Energy shall be deducted from the total cost resulting in the dollars anticipated to be recovered during the upcoming month. This amount shall be divided by the projected total retail billed sales for the upcoming month resulting in the Energy Cost Adjustment to be applied. Each month the actual Energy Cost and billed sales shall be determined from the records. Using this data and the Energy Cost Adjustment actually applied,the Over!Under Recovery shall be computed for the upcoming month. Adopted: JJV;ti fy,4�T Effective: June P2,JM 173 December 17, 1991 Board of Water and Light,Lansing,Michigan Original Sheet No.EB28 SCHEDULED CURTAILMENT SERVICE RIDER Availa4jlitx-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: D=rmber 1 R. 199Q Effective: FebruaW J. 1991 174 December 17, 1991 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. 91-12-1 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) months. 1992 January 28 - Tuesday February 25 - Tuesday March 24 - Tuesday April28 - Tuesday May 26 - Tuesday June 23 - 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 5, 1992. -------------------- Res. No. 91-12-2 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 1992 in the 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 1992 is enclosed. -------------------- 175 Diecanber 17, 1991 ADMINISTRATIVE(Continued) Res. No. 91-12-3 That the Board approve Amendment No. 2 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, 1992. 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 EWL 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 1991,the BWL shipped 26,604 tons under this contract and realized a savings of$38,279 which was passed directly through to our system customers. -------------------- TREASURER/CONTROLLER Res. No. 91-12-4 WHEREAS,retirement benefits paid from the Board of Water and Light Pension Fund are exempt from state income tax because the pension fund is a governmental pension plan, and, WHEREAS, Article IX, Section 24 of the Michigan Constitution states "The accrued financial benefits of each pension plan and retirement system of the state and its political subdivisions shall be a contractual obligation thereof which shall r:.ot be diminished or impaired thereby. . . .", and, WHEREAS,the Michigan Senate is currently considering Senate Bill 131,which would subject government pensions to the state income tax, and, WHEREAS,it is unfair to tax retirees who have made their retirement plans based on a given level of income. NOW THEREFORE, BE IT RESOLVED,that the Board of Water and Light, on behalf of itself and more than 900 employees and 450 retirees, opposes Senate Bill 131. Further,if the tax structure that affects government pension benefits is changed,the changes must apply only to employees hired in the future to avoid the constitutional prohibition in Article IX and to be fair to current employees and retirees. -------------------- December 17, 1991 176 WATER Res. No. 91-12-5 That charges in the Board of Water and Light's Rules and Regulations for Water System Extensions, Sheet 12.05,be changed to$18.30 per linear-foot of water main installed, with an additional 15%per linear-foot on improved roads, and$1,640.00 per hydrant installed during the 1992 construction season, and that these charges be applied as standard installation charges and as frontage-charges for service lines tapped off applicable Board of Water and Light-financed water mains. -------------------- The recommended charges have been determined in accordance with the procedure set forth in the Water System Extension Policy (Sheets 12.03-12.04). They represent a decrease of$2.05 per foot for main installation and a decrease of$15.00 per hydrant for hydrant installation from the charges in effect for the 1991 construction season. -------------------- Respectfull bmitted, Joseph Pandy,Jr. General Manager JP/bg 177 December 17, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER EVANS RESOLVED, That Resolution 91-12-1, 91-12-2, and 91-12-3, respectively, (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER STROLLE-- SECONDED BY COMMISSIONER CHRISTIAN RESOLVED, That Resolution 91-12-4 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-12-5 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL,MANAGER'S RETUARKS General Manager Pandy reported on the following activities: Budget and Financial Statement Status. Copies of the Budget Variance Analysis and Consolidated Financial Statements for November, 1991, were handed out and reviewed. It was noted that sales and gross revenues for the three utilities are down and total expenses are up as compared to the same 12-month period last year. This year's expenses included 27 pay periods, while last year included 26. Total operating expenses are up 4.1 percent from last year, interest income is down, due to lower interest rates generally available in the United States. Total use of cash has declined from $45 million to $25 million, reflective of tightening up capital expenditures. Permanent employees are down to 905 as compared to 934 a year ago. City Requests Capital Expenditure Information— General Manager Pandy handed out copies of correspondence with the City Council's Principal Legislative Assistant Ron Onufer and Councilmember Mark Canady. He reported that Councilmember Canady has requested the previous five years of BWL capital expenditures as well as those projected ten years into the future. This includes projects within Lansing and those outside city limits. Mr. Pandy advised that his letter, dated December 16, 1991, to Councilmember Canady explains that to go back five years and attempt to analyze BWL capital projects located in and outside city limits would be a difficult and time consuming process. The data is not readily available and with reduced staff, it would be very difficult to perform this analysis. Councilmember Canady has been advised that the previous five years are very much like the ten years into the future; consequently, an estimated 20 percent of capital project dollars would be a reasonable estimate for facilities outside the city. The BWL will stand behind the 20 percent estimate. December 17, 1991 178 Fact Brochure About BWL Return on Equity (ROE) Payments. General Manager Pandy handed out copies of a brochure written by BWL staff on "15 Facts About the BWL and its ROE Payments". The brochure was prepared at the suggestion of Commissioner Belen for distribution to city officials. Credit was given to Director of Communications and Marketing Director John Strickler, with input from Treasurer/Controller Dana Tousley, and some editorial by Mr. Pandy. The "Fact" brochure covers points previously discussed with the Commissioners and City Councilmembers. Mr. Pandy noted that while Lansing taxpayers gave up $8.9 million in property tax exemptions, they saved more than $21 million through lower electric rates. Thus the significant savings City of Lansing customers receive from BWL rates more than offset the utility's tax-exempt status. BWL Employees Make Christmas Merrier for Needy Children. General Manager Pandy reported that the BWL Community Events Committee organized a "caring tree" and solicited more than $4,000 in cash contributions to buy Christmas presents for ninety needy children in the Lansing area. About 28 children from the Boys and Girls Club of Lansing received gifts and were entertained in the BWL main office building lobby. BWL retiree Emil Kl.etke, who is Lansing area's official Santa Claus, was present to hand out the Christmas gifts. Special ceremonies to hand out gifts to children from the Sheridan Elementary School Head Start program and the Lansing North American Indian Center are planned for the end of the week. The Community Events Committee also conducted a food drive last week and collected over 1,000 pounds of food, donated to Cristo Rey Food Bank. These activities took place just after having completed the BWL United Way campaign with over $109,000 in pledges. The Commissioners expressed their thanks to all BWL employees for their charitable community spirit and applauded the Community Events Committee for their endeavors. WATTS A-4D DROPS Highli lam. General Manager Pandy pointed out that Sue McCormick, Manager of Water and Steam Planning, is the first woman ever to serve as trustee for the Michigan Section of the American Water Works Association. CommLc,sioner David O'Leary was honored by the Lansing Regional Chamber of Commerce as the Small Businessperson of the Year. Brian McLeod, Superintendent of Fuel Supply and Results, and his new bride, Jean Higgins, were introduced and congratulated on their recent marriage. PUffl: fE '`OMMENTS Lloyd Teets, 116 E. Elm Street, Lansing, wished the Commissioners a Merry Christmas and a Happy New Year. His victory trophy for taking first place in a euchre tournament was displayed. He congratulated Staff Attorney Larry Wilhite for succeeding in getting another Teets lawsuit thrown out of court. He handed out a copy of a letter to each Commissioner, dated December 16, 1991, addressed to Attorney John Mertz, Chairman of the City of Lansing's Board of Ethics. The letter concerns a matter of ethics of General Manager Pandy during the course of Mr. Teets' appeal hearing with the Commissioners relative to a disputed electric bill. He concluded his comments by stated that it will be very difficult to break his spirits. 179 December 17, 1991 REMARKS BY COMMISSIONERS Chairman Hassler thanked the Commissioners for their efforts over this past year. The Commissioners expressed their appreciation to all BAIL employees for their excellent job in providing reliable utility service to this area. Commissioner Belen suggested that the Board's gratitude be communicated to all employees. Commissioner Strolle stated that he would hope the employees' Christmas generosity to area needy children is publicized in the next issue of WATTS AND DROPS. Commissioner Eelen complimented staff for their excellent work in producing the "15 Facts About the BVVL and Its ROE Payments" brochure for the City of Lansing. Commissioner Sebolt suggested exploring the possibility of giving each BlWL employee a box of chocolates from the Board of Commissioners in appreciation for their dedication and hard work throughout the year. Recognizing that it is late in the year to implement this, he suggested that the idea be given serious consideration for next year. EXCUSED ABSENCE BY COMMISSIONER EVANS-- SECONDED BY COMMISS10114ER BELEN That the absence of Commissioner Williams be excused. Adopted unanimously. AD.T0IJRiI�T� On motion of Commissioner Christian, the Board adjourned at 6:09 p.m. Mary E. va, Secretary Filed: December 20, 1991 James D. Blair, City Clerk 133::._, November 26, 1991 MINUTES OF BOARD OF COMMHSSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, November 26, 1991 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, Christian, Evans, Hassler, O'Leary, Sebolt, and Strolle - 7 Absent: Commissioner Williams -1 The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Staff members were present. The Invocation was given by Chairman Hassler. c� � The Pledge of Allegiance was said by all. 7-7 rn APPROVAL OF Ii11TTUTES �^ BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN N ! That minutes of regular session of October 29, 1991 be approved as mail. 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. Lloyd Teets of 116 E. Elm Street, Lansing, suggested having a Board Meeting Notebook available with proposed resolutions for public viewing prior to Board meetings. He inquired about the proposed car allowance reimbursement plan (Resolution 91-11-6), and asked about the solvency of the BWL Pension Plan. General Manager Pandy responded that the proposed car allowance reimbursement for Plan A would increase 1.5 cents per mile. Plan C represents an increase of 1 cent per mile with the $55.00 per month fixed amount to remain unchanged. Commissioner Hassler assured Mr. Teets that the BWL Pension Plan is one of the finest funded pension plans in the country. November 26, 1991 134 Commissioner Sebolt presented the following resolution to the MEW Local 352, Business Manager Max Zemer: RESOLUTION OF TRIBUTE CONUdEMORATING THE 100TI-I ANNIVERSARY OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS (resolution 91-11-7) WHEREAS, November 28, 1991, marks the one hundredth anniversary of the International Brotherhood of Electrical Workers (IBEW) and represents a milestone of great significance to over 15,000 members in the State of Michigan; and WHEREAS, the IBEW has three local unions in Lansing Local 352 - Board of Water and Light - 514 Members Local 665 - Electrical Construction - 395 Members Local 1106 - Telecommunication - 2,077 Members WHEREAS, the IBEW Local Union representing over 500 employees of the Board of Water and Light was chartered on April 1, 1915, and has enjoyed over 76 years of excellent labor relations in cooperation with the Board of Water and Light; and WHEREAS, the IBEW Local 352, above all, has been committed to the community in which it serves; and WHEREAS, it is a pleasure to congratulate and salute the IBEW, Local 352, and all of its hard working members for their loyal and dedicated efforts, their intelligence, and their cooperation; now, therefore, be it RESOLVED by this Board of Commissioners, That we offer our highest praise to the International Brotherhood of Electrical Workers on the occasion of its one hundredth anniversary, and be it further RESOLVED, That a copy of this resolution be presented to its members as evidence of our respect and appreciation. BY COMMISSIONVER SEBOLT-- SECONDED BY COMMISSIONED BELEN That Resolution 91-11-7, commemorating the 100th anniversary of the International Brotherhood of Electrical Workers (IBEW) be approved as presented. Adopted unanimously. Mr. Zemer introduced BWL employee Curt Crates, who serves on MEW's Executive Board. Mr. Zemer expressed his appreciation on behalf of Local 352 and presented each Commissioner with an IBEW Local 352 lapel pin. 135 Novmber 26, 1991 COMNUTTEE OF THE WHOLE REPORT November 26, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met with representatives of the Greater Lansing Housing Coalition on November 12, 1991, to discuss the Coalition's proposal suggesting that a $100,000 interest-free revolving loan be established by the Board of Water and Light (BWL) for the renovation and rehabilitation of Lansing residential properties. The funds would be repaid from proceeds of permanent mortgages after the units are rented by the Coalition. Present were: Commissioners Belen, Christian, Evans, Hassler, O'Leary, Sebolt, and Strolle. Absent was Commissioner Williams. The financial and legal aspects of this proposal were reviewed in detail. Financial returns estimated to flow to the BWL as a result of the housing rehabilitation in that the net income associated with utility revenues from the rehabilitated residences will not cover the lost interest income associated with the $100,000 proposal. The net present value cost to the BWL over a ten-year period would be$49,479 to support this proposal. The legal issue of whether or not this activity is a proper expenditure of BWL funds was discussed. Options to Greater Lansing Horsing Coalition Proposal to be Explored (Resolution 91-11-1) RESOLVED BY THE COMMITTEE OF THE WHOLE: WHEREAS, the Board commends the members of the Greater Lansing Housing Coalition for their noble cause in attempting to provide good, low- cost housing in Lansing's near west side area, BE IT RESOLVED, that due to economic and legal ramifications, it would not be in the best interest for the Board of Water and Light to enter into an agreement with the Greater Lansing Housing Coalition by providing a $100,000 interest-free revolving loan to renovate and rehabilitate rental buildings, BE IT FURTHER RESOLVED, That this decision does not preclude the Board of Commissioners from looking at other viable options and linking together with other entities in this community to suggest creative ways for the Housing Coalition to achieve their goal. Respectfully submitted, Phillip E. Hassler, Chairman lvove[mer Lb, 1)V1 1 '' BY COMMISSIONER HASSLER -- SECONDED BY COMMISSIONER BELEN That the Committee of the Whole Report, including Resolution 91-11-1, regarding the Greater Lansing Housing Coalition, be approved as submitted. Adopted unanimously. 137 November 26, 1991 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: ENGINEERING PLANNING Res. No. 91-11-2 It is recommended that a Capital Project he authorized to convert the 138k`T single bus arrangement at Willow Substation to a ring bus arrangement at an estimated cost of $1,235,000. -------------------- In conjunction with the 138kV capacitor installation project, Electric Planning's review of Willow Substation bus arrangement indicated concerns relative to reliability, operational flexibility, and future expansion. The proposed ring bus arrangement will address these concerns. -------------------- PENSION Res. No. 91-11-3 That Helen M. Hassler,be placed on a vested pension of$312.93 per month effective December 1, 1991. She has selected Option V with the provision that after her death, if her husband,Phillip E. Hassler, survives her he will receive $156.47 per month for the rest of his life as provided under Option V. If her husband predeceases her,the pension amount of$312.93 will revert back to the regular pension amount of$334.57 for the rest of her life. -------------------- Mrs. Hassler worked for the BWL for 25.06 years and is 60 years of age. -------------------- TREASURERICONTROLLER Res. No. 91-11-4 Authorize disposal of. Nordberg Diesel-Generator, Serial No. 1018-0587, located at Cedar Pumping Station. This unit was installed in 1975 and has been declared surplus based on recommendations from Engineering Planning and the Water Utility. In accordance with the Board of Water and Light's Investment Recovery Policy, methods of disposal may include sale by competitive bid, scrapping or any other appropriate means. -------------------- 138 Novenber 26, 1991 TREASUREWMYTROLLER (Continued) Res. No. 91-11-5 That the present car allowance reimbursement rates effective October 1, 1990, applicable to BWL employee s requiredbe°amendedrovide peffect effective Novrsonal ember 1, 19tation in 91 as follow e� respective j g� Plan A- 27.5 cents per mile for all miles driven. Plan C - $55.00 per month plus 23 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 recommended 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$3,430 or 2.6%. Reimbursement rates were last revised October 1, 1990. -------------------- WATER Res.No. 91-11-6 Authorize removal of an additional amount of sludge from the Riverside Storage Facility of up to 18,000 dry tons. Removal and marketing of the material will be by Great Lakes/Enviroland, at a unit price of$29.70 per dry ton. The total additional authorization will be not-to-exceed$534,600. -------------------- Additional sludge was discovered under the roadways and dikes at Riverside. This authorization should allow removal of all material stored in Ponds No. 2 and 3, and allow restoration of that portion of the site by December 31, 1991. The quoted price represents a reduction of 8.6%, as compared to the price for FY '92-93, or a savings of$45, 0 This item was not included in FY'91-92 budget,but funds are available from other sources. -------------------- Respectfully submitted, Joseph Pandy, General Manager JP/bg 139 November 26, 1991 BY COMMISSIONER SEBOLT-- SBCONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-11-2 (Engineering Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-11-3 (Pension) of the General Manager's Recommendations be approved. Adopted by the following vote: YEAS: Commissioners Belen, Christian, Evans, O'Leary, Sebolt, and Strolle. NAYS: None ABSTENTIONS: Commissioner Hassler ABSENT: Commissioner Williams BY COMMISSIONER SEBOL'I,-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-11-4 and 91-11-5 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER CHRISTIAN RESOLVED, That Resolution 91-11-6 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. November 26, 1991 140 GENERAL NIANAGER'S RENL4RKS General Manager Pandy reported on the following activities: Share the Succes~s�. The Share the Success (STS) through October 31, 1991 is at 309 points. Through the first quarter of fiscal_ 1992, the STS program is 19 points below the performance at the same time last year. Safety - A Priority. The details of an accident that took place earlier in the day at the Dye Water Conditioning Plant were reported by General :.Manager Pandy. A piece of pipe fell and struck a temporary employee on the shoulder causing a fractured collar bone. The employee was treated and released on the same day from Sparrow Hospital. Fortunately the hard fiat worn by the employee saved a head injury. Mr. Pandy indicated the accident was preventable. Joint One-on-Orae Meetings Bete-veen Corm Ruraek-s an,d Cguacflme bei�s Planned, Luncheon sessions are being arranged with individual Commissioners and Councilmembers under the pairing structure unveiled at the joint meeting with City Council on September 19, 1991. The purpose of the one-on-one sessions is to discuss issues that concern the City and to enhance communication ties with the City. The scheduling will be coordinated by Secretary Mary Sova. Return on City , uflIssue. There is still some concern by the City about the PWL's year-end cash balance of$76,056,127. The reserve funds--either required by bond ordinance or established by bard policy--are earmarked for specific purposes such as capital. improvements, rate stabilization fund, and the uninsured loss fund. These funds are expected to be spent by 1993. BWL Service to Sublu&gn Areas. On a related issue, General Manager Pandy handed out a three-page summary covering a 12-month period ending June 31, 1991, which outlined BWL electric and water sales by goverinment areas. Of the $34 million total in electric revenue, $1.2 million represented the return on equity payment from suburban customers based on the 3.5 percent formula. eater sales totaled $1.4 million, and suburban customers contributed appro:rdmately $51,OGO for the return on equity portion. In essence, a combined electric and water equity payment in the amount of$1,257,000 came from suburban customers into the City of Lansing. This is one of the reasons for having a regional utility serving more than just the city. Return on Euity Faso City U lihy Bills. General Manager Pandy handed out a ten- year history of BWL return on equity as compared to City utility bills. The rate and load increase effects on return on equity payment with no increase for street lights until 1996 and assuming no increase in usage was highlighted. Prgjections indicate that by virtue of not increasing the city's street light rates and implen-lenting three 4.5 percent electric rate increases--currently being considered- effective on .ianuary 1, 1992, 1993, and 1994, the return on equity should exceed the city's utility bills reaching a break even point by approximately the year 1996. Also, by accelerating the street light high pressure conversion program, discussed with the City at the September 19, 1991 joint meeting, a break even point could come as early as 1994. A fact sheet on return on equity issues is being prepared by staff for distribution to the City and other interested parties. 141 November 26, 1991 December Meetin . Items to be discussed at the December 10th Committee of the Whole meeting are: (1) Public Bearing input on electric rates and (2) Strategic Planning. The regular Board meeting is scheduled for December 17. EXCUSED ABSENCE BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONED STItOLLE That the absence of Commissioner Williams be excused. Adopted unanimously. "j { On motion of Commissioner Christian, the Board adjourned at 5:59 p.m. Mary E.JV)a�, ecretary Filed:December 3, 1991 James D. Blair, City Clerk 120 October 29, 1991 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, October 29, 1991 The Board of Commissioners met in rescheduled 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, Christian, Evans, Hassler, 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 c? BY COMMISSIONER SEBOLT-- o SECONDED BY COMMISSIONER EVANS That minutes of regular session of September 24, 1991 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. Lloyd Teets of 116 E. Elm Street, Lansing, publicly apologized to Commissioner Sister Mary Janice Belen for questioning her religious sincerity at the August 27, 1991 Board meeting. He stated that Commissioner Belen responded to his letter of apology by accepting his request for forgiveness. Mr. Teets expressed his gratitude to Commissioner Jack Sebolt for taking an interest in his problems with the Board of Water and Light. He credited Commissioner Sebolt for questioning whether one should question another's religious sincerity. He also thanked Commissioner Sebolt for his compliment by suggesting that he would welcome Mr. Teets as an advocate rather than an adversary of the Board of Water and Light. October 29, 1991 121 C®I\\/ZVii_i1TITEE OF THE V7110JL E F i ,PORT October 29, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on October 15, 1991, to receive a staff presentation on Electromagnetic Fields (EMF) and to tour the Board of Water and Light's newest substation, Northeast Sub. Present were: Commissioners Christian, Evans, Hassler, O'Leary, Sebolt, Strolle, and Williams (Chair Pro Tem). Absent was Commissioner Belen. Northeast Substation. The Northeast Substation was entered in ELECTRIC LIGHT & POWER'S 1991 Substation Design competition and tied for 2nd Place in the Engineering/Operations category and won 3rd Place in the Aesthetic Design category. A plaque was placed on the wall of the substation in memory of the late William E. Wright of Project Engineering, in recognition of his contribution in the design of the facility. His widow, Mrs. Shar Wright, and family were present to receive a copy of the plaque. Electric and Magnetic Fields. Electric Planning Manager Doug Wood presented background information on activities of the Board of Water and Light Electric and Magnetic Field (EMF) Task Force. This task force is an in-house interdisciplinary team established to recommend a policy on EMF for the BWL, and to develop an action plan to carry out this policy. Following discussion and a slide presentation summarizing research findings and ongoing scientific studies, the Committee of the Whole adopted the following EMF Policy Statement and recommends Board approval: Electric and Magnetic Fields (E NM Policy Statement (Resolution 91-10-1) The Board of Water and Light (BWL) is committed to providing safe, reliable, and environmentally sound electric service to its customers and a safe work environment to its employees. The BWL adheres to the National Electric Safety Code and complies with other applicable regulations governing installation of electrical facilities. The BWL is aware of ongoing research into the biological effects of electric and magnetic fields (EMF) associated with 60 hertz (Hz) electric power. Exposure to electric and magnetic fields may come from transmission and distribution lines or from electric appliances and devices within a home or office. The scientific community has not concluded under what circumstances, if any, exposure to EMF may be hazardous to human health. Some studies have suggested a link between EMF exposure and health. Other studies have suggested that no link exists. The BWL acknowledges the scientific uncertainty and public concern regarding EMF and human health. Any potential risk to health is viewed as a serious concern by the BWL. 122 October 29, 1991 It is the policy of the Board of Water and Light to share its knowledge of the available information on the biological and possible health effects of electric and magnetic fields. This knowledge will be shared with its employees, other utilities, and members of the general public. Procedures for accomplishing this shall be developed by an internal work group with responsibility for: • Monitoring research and regulatory developments, e Communicating the results of research and regulatory developments to employees and the public, ■ Recommending appropriate financial support for scientific research on EMF effects, ® Assessing EMF levels on the BWL electric system, ® Quantifying the cost and effectiveness of various EMF reduction measures that may be mandated by regulatory agencies. Respectfully submitted, Gerald W. Williams, Chair Pro Tern Committee of the Whole BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER STROLLS That the Committee of the Whole Deport, including Resolution 91-10-1, regarding a Policy Statement on Electric and Magnetic Fields, be approved as submitted. Adopted unanimously. 123 October 29, 1991 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. 91-10-2 Copies of 1991 audit reports for the Board of Water and Light and for the Plan for Employees' Pensions of the Board of Water and Light and a copy of the report on the system of internal control were filed with City of Lansing officials by Deloitte& Touche on September 19, 1991. The audit report for the Board of Water and Light and the report on the system of internal control has been received and placed on file. The auditors found no significant items which warranted submission of a management letter. The 1991 audit report for the Plan for Employees'Pensions has been received,reviewed by the Personnel Committee and the Pension Trustees, and placed on file. The Corporate Secretary is directed to file copies of both audit reports and the report on the system of internal control with the State Treasurer as required by law. Publishing a condensed copy of the Board of Water and Light audit report in the Lansing State Journal is not required by law. It may be done at the discretion of the General Manager. -------------------- HUMAN RESOURCES Res. No. 91-10-3 That Tamara Aikens of Meter Reading & Account Review be awarded a total of$251.89 for suggestion proposal number 1991-170,to replace Meter Reading letters with smaller pre-printed forms. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $1768.88 in the first year. -------------------- 124 October 29, 1991 HUMAN RESOURCES (Continued) Res. No. 91-10-4 That Ken Berridge of Electric Construction& Maintenance be awarded a total of $1073.00 for suggestion proposal number 1991-116,to use a polyvinyl chloride coating to prevent rust problems on air operated oil circuit breaker operating control valves. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $9980.00 in the first year. -------------------- Res. No. 91-10-5 That Maynard Bigelow of Steam Engineering be awarded a total of$691.00 for suggestion proposal number 1991-130, to use marking flags instead of spray paint to indicate locations where it is safe to dig. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $6160.00 in the first year. -------------------- Res. No. 91-10-6 That Jan Simpson of Communications be awarded a total of$165.28 for suggestion proposal number 1991-113,to use inter-office mail on a voluntary basis for Watts and Drops distribution. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $902.80 in the first year. -------------------- Res. No. 91-10-7 That Wayne Dennis of Construction Services be awarded a total of$200.20 for suggestion proposal number 1990-236, to use deeper oil pans with handles to reduce spillage of PCB when transporting material from leaking transformers. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $1252.00 in the first year. -------------------- October 29, 1991 125 HUMAN RESOURCES (Continued) Res. No. 91-10-8 That Ralph Keck of Information Systems be awarded a total of $611.64 for suggestion proposal number 1989-181,to institute a 24-hour coverage schedule for the computer operations room. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $5366.40 in the first year. -------------------- Res. No. 91-10-9 That Steve Smith of Eckert Station Operations be awarded a total of$212.36 for suggestion proposal number 1991-092,to add a second waste oil filter to allow replacement of one dirty filter without down time or excess use of good oil. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $1373.60 in the first year. -------------------- Res. No. 91-10-10 That Robert Strobel of Electric Engineering be awarded a total of$168.80 for suggestion proposal number 1991-167,to use post cards instead of letters to notify customers of impending electric work affecting their service. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $938.00 in the first year. --------------------- Res. No. 91.10-11 That Jack Wicker of Overhead Line Construction be awarded a total of$185.00 for suggestion proposal number 1991-075, to install bailing pumps to remove rain water from bucket truck buckets. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $2100.00 in the first year. -------------------- 128 October 29, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-10-2 (Administrative) of the General Manager's Recommendations be approved. Terry Fuller of Deloitte & Touche appeared before the Board to report that the audit was completed in accordance with generally accepted auditing standards. A clean opinion was rendered with no management recommendations for specific improvements for the third consecutive year. This, he said, was a reflection of the skill and diligence of the BWL's accounting staff. Mr. Fuller stated that full cooperation of BWL management and staff was received. Commissioner Belen asked Mr. Fuller if he would like to meet with the Board in closed session to discuss any audit concerns. Mr. Fuller responded that a private meeting was not needed. Chairman Hassler and the Commissioners commended management and the accounting staff for their accomplishment in receiving a clean audit for three consecutive years. Resolution 91-10-2 was adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-10-3 through 91-10-13, respectively, (Human Resources) of the General Manager's Recommendations be approved. Commissioner Sebolt suggested following up with each suggestion award employee to express the Board's appreciation for their input. General Manager Pandy noted that the large number of suggestion awards this month is a catch up due to a vacancy in the Human Resources Department. A new empioyee is now handling the administration of the suggestion program. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-10-14 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-10-15 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. ktober 29, 1991 129 GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following activities: MSU Management Mentor Program. General Manager Pandy introduced Chansheng He from the People's Republic of China whom he is mentoring in cooperation with the MSU International Leadership Program. Mr. Pandy reported that he and several Lansing area community leaders have been chosen to participate in mentoring international students. Chansheng He is pursuing a doctoral program in Land and Water Resources Policy, Planning and Management. He holds a Bachelor of Science degree in Agronomy and a Master of Science degree in Agricultural Zoning and Natural Resource Management from the Northwestern Agricultural University in the Shaanxi Province, China. Mr. He is bilingual and is employed by MSU's Center for Remote Sensing and Institute of Water Research. The Commissioners welcomed Mr. He and applauded his accomplishments. Greater Lansing Dousing Coalition. The following representatives of the Greater Lansing Housing Coalition appeared before the Board to present a proposal for a $100,000 interest-free revolving loan fund to buy and renovate rental buildings: John Duley, President, and Campaign Committee members Alan Suits, President of Recomtex Corporation, and Bill Long, formerly of the Michigan Public Service Commission. The Greater Lansing Housing Coalition is a non-profit corporation committed to providing affordable housing to working low-income families in the Lansing Westside Neighborhood. Working with the State of Michigan and the City of Lansing, the Housing Coalition buys, renovates and then sells homes, and is now seeking to also develop multiple rental properties. Mr. Pandy noted that Staff Attorney Larry Wilhite has raised some legal concerns about the BWL's ability to lend its credit to another organization. He added that if the Board were desirous of supporting the Housing Coalition, a possible solution could be the use of a commercial bank as a vehicle for the BWL to reserve some funds for availability to the Housing Coalition at a low interest rate. Following discussion, this item was referred to the Committee of the Whole at their November 12, 1991, meeting immediately following the public hearing on proposed electric rate increases. BWL's Cash Position. The BWL's cash position through October 25, 1991, is about 2 percent ahead of last year. There is still concern about the recession that has impacted the country and Michigan, in particular. The acceptance level on the three new restyled General Motors products that are important to the local economy is being eagerly watched. The weeks and months ahead will be a telling time in terms of where the economy goes. Capacity and Enery Sale to Consumers Power Co. The Electric Utility has been successful in securing another contract with Consumers Power Company (CPCo). Beginning September 30, 1991 through November 17, 1991, capacity and energy will be sold to CPCo--60 megawatts during most of October and 45 megawatts the latter part of October and early November. Total contract charges associated with the sale are over $729,000, with a net profit expected to be realized. Share the Success Update. The Share the Success (STS) through September 30 is at 292 points. September was not a good month on safety performance. Two lost time accidents were recorded, eliminating all 25 points previously earned during the first two months of the fiscal year. Five medical accidents were experienced with seven lost 130 October 29, 1991 days. There were ten chargeable vehicle accidents compared to five at this time last year. The safety performance in September lost employees 33.2 STS points. While none of the accidents have been major, they are of concern and a priority to management. It was noted that steam utility production efficiency was better than .at any time last year, even with the load demand which occurs before the heating season. Steam production earned employees 21 STS points. Lease with Charter Township of Delhi. The BWL has entered into a lease agreement with Delhi Township on a ten acre piece of property owned by the BWL near Dead Man's Hill in Delhi Township. The land was secured by the BVVL as a possible site for a future reservoir and/or a water facility. There is no immediate use for the property nor is a need anticipated in the foreseeable future. The BVVL found itself caught in some controversy--the Sheriff wanted the land mowed, others wanted the land left as a natural habitat for wildlife. A five year lease has been negotiated with the Delhi Township Parks and Recreation, whereby they will maintain the lard following an initial cleanup by the BWL. The property will be used for light recreation, hiring, cross sluing and wildlife. The lease may be renewed on an annual basis following the initial five-year period. Fabulous Acres Nei h.borhoodl Association. A copy of a letter from the members of the Fabulous Acres Neighborhood Association was handed out for review. The Neighborhood Association members expressed their appreciation for the expeditious manner in which the BVVL handled their concerns regarding street lighting in their neighborhood by changing the glass in the new sodium street lights to the globe style for greater visibility after dark. They acknowledged the following BVVL employees for their caring and courteous assistance: Stores Superintendent Robert Russell, Governmental Affairs Administrator Terri Tisdale, and Electrical Engineering Superintendent Dick Bauder. Thank You better from Pensioner Ethel Gasche. General Manager Pandy shared a letter received from BWL pensioner, Ethel Gasche, expressing her appreciation to the Board for the increase in her pension amount, which was effective January 1, 1991.. Mrs. Gasche noted that she would have been hard pressed to buy needed groceries and other items if it were not for the fact that the BWL adjusts pension amounts periodically based on inflation. Strategic Planning Calendar. A copy of the annual fall Strategic Planning calendar, which leads to the 1992-93 Business Plan and the budget and capital expenditures was handed out. The organization's annual goals and objectives will be reviewed with the Commissioners for input at the December 17 Board meeting. The following seven task forces are hard at work analyzing various issues: 1. Customer Focus/Quality Task Force -• Chaired by Consumer Service Director Terry Graham. Focus: Develop new BWL customer focus programs with emphasis on quality service. 2. Technical Services Functions Task Force - Chaired by Technical Services Director John Elashkar. Focus: Technical services area; outsourcing recommendations made by CRESAP for Information Systems, Engineering and the other technical service areas. 9ctober 29, 1991 131 3. Cogeneration and Byproduct Disposal Task Force - Chaired by Marketing and Communications Director John Strickler. Focus: Competition of cogeneration and finding useful commercial markets for disposing of the BINL's flyash and sludge byproducts. 4. Management Accounting Systems Task Forge - Chaired by Treasurer/Controller Dana Tousley. Focus: Becoming more cost center oriented, particularly in the staff areas. The goal is to implement a direct charge type of cost accounting wherein costs would be charged basfA- on actual hours and actual projects that are done by the staff elements. 5. Capital Projects Justification Task Force, Chaired by Engineering Planning Director Roger Ophaug. Focus: Develop criteria for justification and prioritizing of Capital projects (major and normal). This was a CRESAP recommendation. 6. Training and Development Task Force, Chaired by Duman Resources Director Mark dander Jagt. Focus: Training BWL employees for the 1990's to assure value and accountability for the training area. 7. Organizational Structure Task Force, Co-Chaired by Electric Utility Director Roy Peffley, dater Utility Director Clyde Dugan, and Steam Utility Director Joette Woodard-Yauk. Focus: Develop a 1995 organizational structure which reinforces the SBU Concept and (1) provides a means for each division to function as a business unit and (2) provides the three utilities with the resources necessary to operate effectively and efficiently. The Commissioners engaged in a lengthy discussion regarding ongoing feedback from customers and consistently measuring customer satisfaction. General Manager Pandy stated that management has tried to convey to employees that quality customer service is a journey rather than a destination. It is an ongoing continuous effort at improvement. Electric Utility Fiscal Year 1990-91 Annual Review. The Electric Utility was complimented on their excellent Annual Report, which summarizes their accomplishments over the past fiscal year. Commissioner Hassler noted that this report is an excellent communication tool and challenged the Water and Steam Utilities to prepare a similar report. 132 October 29, 1991 PUBLIC COMMENTS Sally Schlegel, 660 Stoddard Avenue, East Lansing, handed out a petition letter to the Commissioners. The petition requests that Energy Bank envelopes be inserted earlier this year starting with the November utility billings in order to provide energy funds to needy people during the months of December, January, and February. Mrs. Schlegal noted that she had just learned earlier in the day that the BWL had already made a decision to send out the Energy Bank envelopes earlier this year, starting in November. She thanked the Board for this good decision. ADJOURNMENT On motion of Commissioner Christian, the Board adjourn at 6:25 p.m. Mary E. S a, S Arery Filed: October 31, 1991 James D. Blair, City Clerk October 29, 19y1 127 WATER (Continued) (Res. No. 91-10-15) 1. The Board will accept Water District No. 80 established by Township resolution on August 20, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a$52,998.40 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 LXXX) covering the furnishing of a potable water supply in Water District No. 80. 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 $52,998.40 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXX) to furnish a potable water supply in Water District No. 80. The geographical area of Water District No. 80 is as follows: Oakwood Executive Park Phase I Lots 1 thru 9, 27, 28, & 29 To provide a potable water supply within the proposed new district requires the installation of 2,240 feet of water main and fire hydrants at an estimated cost of $52,998.40. The main extension will serve twelve (12) commercial customers. One-time connection fees will amount to$18,144.00. Estimated annual revenue is $7,200.00. Water mains to be installed in the Fall/Winter of 1991 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 126 October 29, 1991 HUMAN RESOURCES (Continued) Res. No. 91-10-12 That Rick Wilbur of Electric Metering be awarded a total of$499.00 for suggestion proposal number 1991-165,to have Meter Testing Specialists enter meter test data into the computer system instead of office personnel. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $4240.00 in the first year. -------------------- Res. No. 91-10-13 That Doug Zimmerman of Electric Metering be awarded a total of$147.90 for suggestion proposal number 1991-065, to recycle cardboard at E. M. & M. to reduce dumpster rental costs. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $729.00 in the first year. -------------------- TREASURER/CONTROLLER Res. No. 91-10-14 Authorize disposal of Industrial Brownhoist Corporation Locomotive Crane No. 12258. This unit was purchased in 1955 and has been declared obsolete by the Electric Production Maintenance Department. In accordance with the Board of Water and Light's Investment Recovery Policy, methods of disposal may include sale by competitive bid, scrapping or any other appropriate means. -------------------- WATER Res. No. 91-10-15 That the Board agree to serve water to proposed Water District No. 80, Delhi Township, as requested by resolution of the Delhi Charter Township Board on August 20, 1991, 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: 106 September 24, 1991 MINUTES OF BOARD OF COM IISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, September 24, 1991 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, Christian, Hassler, O'Leary, Sebolt, Strolle, and Williams - 7 M cn � Absent: Evans - 1 0 = ' c--D 7 The Secretary declared a quorum present. General Manager Pandy, Assistant Secretary Sullivan and Staff members were preF�t. i The Invocation was given by Chairman Hassler. o ! w The Pledge of Allegiance was said by all. N APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS That minutes of regular session of August 27, 1991 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. September 24, 1991 107 Lloyd Teets handed out a copy of letter addressed to Larry Wilhite concerning his dispute with the Board of Water and Light. Mr. Teets thanked Commissioner Sebolt for taking time to speak with him before the Board Meeting. Mr. Teets stated this was the first time any Commissioner had taken the time to talk with him. After Mr. Teets was finished speaking, Commissioner Sebolt asked if he would like to have the rest of the Commissioners know what their conversation was about; he left the decision to Mr. Teets. Mr. Teets said no. Commissioner Williams disagreed with the fact that none of the Commissioners had spoken with Lloyd Teets and asked that the record be corrected; Mr. Teets did not dispute this. Harold Leeman, 529 North Francis, Lansing, remarked on Resolution 91-9-3, questioning General Manager Pandy's car allowance being raised to $550, and whether that increase could be justified. Don Hines, representing the Industrial Council, spoke in regards to the proposed electric rate increases. Mr. Hines supported the option of three separate rate increases over the next three years. He expressed appreciation for the gradual move toward parity of return rather than one increase. Mr. Hines suggested adding another paragraph to the rates, a monitoring and reconsideration clause. During year two and three the rate increase may not need to be as large; this clause would readjust the rates. Mr. Hines would like to see this clause added to the actual rate. He is uncomfortable with the Board adopting rates for three years without such a provision being made. CONBUTTEE OF THE WHOLE REPORT September 24, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on September 10, 1991, to review and discuss the following items: 1. Proposed Electric Rate Structure 2. Return on Equity Present were Commissioners Williams (Chair Pro Tem), Christian, Evans, O'Leary, Sebolt, and Commissioner Strolle. Absent were Commissioners Belen and Hassler. 108 Septanber 24, 1991 PROPOSED ELECTRIC RATE STRUCTURE Ile Commissioners received an overview of ratemaking principles and objectives as approved in 1987. Treasurer/Controller Dana Tousley and Rate Analyst Paul Wierzbicki presented a review of current and proposed rate structures, revenue generated and bill comparisons. Details of ratemaking from the standpoint of cost, financial needs and operations of the utility, and whether they are fair and equitable to customers were discussed. Revisions and corrections to the proposed rate structure were discussed after hearing input from Industrial Council representatives and Commissioners. Following discussion, the Committee of the Whole adopted the following resolution and recommends Board approval: ELECTRIC RATE CHANGES (Resolution 91-9-1) 1. Staff is directed to review the impact of more gradual movement toward equity in the index of return for each class. Further, staff is to present a revised rate structure proposal at the regular meeting on September 24th for Board consideration. 2. That November 12, 1991 be set as the date for a public hearing to solicit public input on new electric rate structures. RETURN ON EQUITY The Commissioners will be meeting jointly with the Lansing City Council and the Mayor on September 19, 1991, to discuss the City's proposal for the BWL to help the City avoid a $1.2 million deficit for the 1991 fiscal year. General Manager Pandy presented an overview of topics to be discussed with the City. The joint meeting is being held simply for informational purposes. No action is to be taken. Respectfully submitted, Gerald W. Williams, Chair Pro Tern Committee of the Whole September 24, 1991 107 Lloyd Teets handed out a copy of letter addressed to Larry Wilhite concerning his dispute with the Board of Water and Light. Mr. Teets thanked Commissioner Sebolt for taking time to speak with him before the Board Meeting. Mr. Teets stated this was the first time any Commissioner had taken the time to talk with him. After Mr. Teets was finished speaking, Commissioner Sebolt asked if he would like to have the rest of the Commissioners know what their conversation was about; he left the decision to Mr. Teets. Mr. Teets said no. Commissioner Williams disagreed with the fact that none of the Commissioners had spoken with Lloyd Teets and asked that the record be corrected; Mr. Teets did not dispute this. Harold Lehman, 529 North Francis, Lansing, remarked on Resolution 91-9-3, questioning General Manager Pandy's car allowance being raised to $550, and whether that increase could be justified. Don Hines, representing the Industrial Council, spoke in regards to the proposed electric rate increases. Mr. Hines supported the option of three separate rate increases over the next three years. He expressed appreciation for the gradual move toward parity of return rather than one increase. Mr. Hines suggested adding another paragraph to the rates, a monitoring and reconsideration clause. During year two and three the rate increase may not need to be as large; this clause would readjust the rates. Mr. Hines would like to see this clause added to the actual rate. He is uncomfortable with the Board adopting rates for three years without such a provision being made. COANEVUTTEE OF THE WHOLE REPORT September 24, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on September 10, 1991, to review and discuss the following items: 1. Proposed Electric Rate Structure 2. Return on Equity Present were Commissioners Williams (Chair Pro Tem), Christian, Evans, O'Leary, Sebolt, and Commissioner Strolle. Absent were Commissioners Belen and Hassler. September 24, 1991 PROPOSED ELECTRIC RATE STRUCTURE The Commissioners received an overview of ratemaldng principles and objectives as approved in 1987. Treasurer/Controller Dana Tousley and Rate Analyst Paul Wierzbicki presented a review of current and proposed rate structures, revenue generated and bill comparisons. Details of ratemaking from the standpoint of cost, financial needs and operations of the utility, and whether they are fair and equitable to customers were discussed. Revisions and corrections to the proposed rate structure were discussed after hearing input from Industrial Council representatives and Commissioners. Following discussion, the Committee of the Whole adopted the following resolution and recommends Board approval: ELECTRIC RATE CHANGES (Resolution 91-9-1) 1. Staff is directed to review the impact of more gradual movement toward equity in the index of return for each class. Further, staff is to present a revised rate structure proposal at the regular meeting on September 24th for Board consideration. 2. That November 12, 1991 be set as the date for a public hearing to solicit public input on new electric rate structures. RETURN ON EQUITY The Commissioners will be meeting jointly with the Lansing City Council and the Mayor on September 19, 1991, to discuss the City's proposal for the BWL to help the City avoid a $1.2 million deficit for the 1991 fiscal year. General Manager Pandy presented an overview of topics to be discussed with the City. The joint meeting is being held simply for informational purposes. No action is to be taken. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole September 24, 1991 109 Discussion was held on Case A, two years of 6% rate increases and Case B three years of 4.5% rate increases. Slides showing a ten-year cash flow for both Cases were shown. It was the consensus of the Commissioners that three years of 4.5% increases would be better perceived by our customers. The BWL has a written policy that instructs staff to review rates annually. There was consensus that the following amendments be made to Resolution 91-9-1 of the Committee of the Whole Report to reflect the proposed electric rate changes: Strike the entire language under item #2 and insert the following: 2. That electric rate schedules reflecting consecutive annual rate increases of 4.5%, 4.6% and 4.6%, respectively, (Case B) be made the subject of a public hearing prior to further consideration by the Board. (Proposed rates attached). 3. That a public hearing to solicit public input on this matter be scheduled for November 12, 1991 at 5:30 p.m. in the Board of Water and Light Office Building, 123 W. Ottawa Street, and that the Corporate Secretary be directed to file with the City Clerk appropriate information regarding pending changes in the electric rate structures. A roll call vote was taken. YEAS: Belen, Christian, O'Leary, Sebolt, Strolle, Williams, Hassler - 7 NAYS: 0 ABSENT: Evans PERSONNEL COMMITTEE REPORT September 24, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Personnel Committee met on September 11, 1991 to discuss and consider the following items: 1. Pension Fund Investments 2. Performance Appraisals for the General Manager, Internal Auditor and Corporate Secretary Present were committee members Sebolt (Chair), Evans, O'Leary, and Strolle. Commissioner Williams was also present. 110 September 24, 1991 PENSION PLAN The committee reviewed the status of the Pension Fund investments for the period ending June 30, 1991. The committee's recommendation has been referred to the Pension Fund Trustees for action at their September 24, 1991 meeting. PERFORMANCE APPRAISALS FOR THE GENERAL MANAGER, INTERNAL AUDITOR AND CORPORATE SECRETARY Performance appraisals completed by the Commissioners for the three positions reporting to the Board were reviewed. The General Manager's Employment Agreement was also reviewed and discussed. Following discussion, the committee approved the following resolutions and recommends Board approval: PERFORMANCE APPRAISALS 91-9-2 WHEREAS, Performance evaluations and salary increases for the three positions reporting directly to the Board are administered according to the BWL Wage and Salary Plan for Non-bargaining Unit Administrative employees; be it RESOLVED, That the General Manager, Internal Auditor and Corporate Secretary are eligible to receive salary increases effective as of July 1, 1991, according to the Fiscal 1992 Performance Increase Matrix; and 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 Nellie Willson - Outstanding Corporate Secretary Mary Sova - Outstanding ieptember 24, 1991 111 AUTHORIZING BUSINESS RELATED EXPENSES FOR THE GENERAL MANAGER 91-9-3 WHEREAS, The Board of Commissioners established a fund for business purposes on August 25, 1987, to enable the General Manager to cover club memberships, monthly dues and expenses. RESOLVED, That the General Manager be authorized to continue membership in the Country Club of Lansing, the Rotary Club, and begin membership in the Michigan Athletic Club in lieu of the University Club of MSU as previously authorized, and RESOLVED FURTHER, That the General Manager's car allowance be increased to $550.00 per month, and RESOLVED FURTHER, That expenses for business related clubs and other business expenses of the General Manager be reported annually to the Board of Commissioners, and RESOLVED FURTHER, That Resolution 89-8-17 be, and is hereby rescinded. Respectfully submitted, Jack R. Sebolt, Chairman Personnel Committee BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER STROLLE That Resolution No. 91-9-2 of the Personnel Committee be adopted as presented. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER O'LEARY That Resolution No. 91-9-3 of the Personnel Committee be adopted as presented. Adopted unanimously. Board of Water and Light.Lansing, igan 1st Revised I No.EB1 RESIDENTIAL ELECTRIC SERVICE PROPOSED RATE NO. 1 A ailability-This rate is available to any single-family residence or individual dwelling unit when the entire electric requirements are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate -Shall be computed in accordance with the following charges: effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0562 $.0592 $.0611 per kWh for all over 500 kWh WaterWater Heating Discount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 500 kWh,plus the energy cost adjustment,shall apply to the first 800 kWh billed. Energy Cost Adiustmc2t-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. Tam Adiustmcut-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 of Water and Light(BWL)property,or its operation,or the production and/or sale of electric energy,to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Chp..rae-The customer charge included in the rate. Delaycd_ P ca Charw�e-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 Ch&W-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted: Effective: Board of Water and Light,Lansing,Micl 1st Revised Sher 'i.EB2 RESIDENTIAL ELECTRIC SERVICE PROPOSED RATE NO. 1 Auxiliary Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or.solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$6.40 per month or part thereof instead of the above customer charge. 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: Board of Water and Light,Lansing, Fagan Ist Revisem let No.E133 RESIDENTIAL ALL-ELECTRIC SERVICE PROPOSED RATE NO.2 Availability-This rate is available to any single-family residence or individual dwelling unit when the entire electric requirements for water heating,cooking and space conditioning are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Nature-of alternating current,60 hertz,single phase, 120/240 nominal volts. MagI_hly �t_-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 cuGionler Chi ge $2.83 $3,05 $3.20 per customer per month or part thereof Enc-irgy Charge Summer Billing Months of June through October $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0562 $.0592 $.0611 per kWh for all over 500 kWh Winter Billing Months of November through May $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0553 $.0583 $.0602 per kWh for all over 500 kWh Water Heating Discount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 500 kWh,plus the energy cost adjustment,shall apply to the first 800 kWh billed. Fne�w(osft 1. !:I neeat-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 Adiu -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 of Water and Light(BWL)property,or its operation,or the production and/or sale of electric energy,to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Chaege-The customer charge included in the rate. Del ai+c d PayxneA t Clx -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. raliation Crn r -A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted: Effective: Board of Water and Light,Lansing,Mich.,,--i 1st Revised Sher-. -s.EB4 RESIDENTIAL ALL-ELECTRIC SERVICE PROPOSED RATE NO.2 Auxiliary Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$6.40 per month or part thereof instead of the above customer charge. 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: Board of Water and bight,Lansing,-,�aAigvn 1st ln,.rsed Sheet No.EB5 GENERAL SERVICE PROPOSED RATE NO.3 ®vailabi ity-This rate is available to any customer desiring secondary voltage service for any purpose when supplied at one point of delivery through one meter. This rate is not available for emergency or standby service. Nature of Smicr -Alternating current,60 hertz,single phase or three phase. The secondary voltage in each case to be determined by the Board of Water and Light(BWL). Monthly -i e-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $5.60 $5.95 $6.23 per customer per month or part thereof Energy Charge. $.0618 $.0644 $.0664 per kWh for the first 1,500 kWh $.0624 $.0658 $.0685 per kWh for all over 1,500 kWh En=y Cost Ad -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. T x A i,c m .nt-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 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 C'tq. -The customer charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. hickdog-Where the BWL elects to measure the service on the primary side of the transformers,the metered kWh thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter,the consumption as registered by the different meters will not be combined for billing purposes,but will be computed and billed separately. Dela®ed Pavm .nth-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. Appficaition Ch=c-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted: Effective: Board of Water and Light,Lansing,Michigan 1st Reviseu.3heet No.EB6 GENERAL SERVICE PROPOSED RATE NO.3 Auxiliary Power Provision-Customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$12.46 per month or part thereof instead of the above customer charge. 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: Board of Water and Light,Lansing,'Michigan 1st kt rased Sheet No.EB7 LARGE GENERAL SERVICE PROPOSED RATE NO.4 Availability-This rate is available to any customer desiring secondary voltage for any purpose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kW or more. This rate is not available for standby or emergency services. Nature of Service-Alternating current,60 hertz,single phase or three phase. The secondary voltage to be determined by the Board of Water and Light(BWL). Monthly Mc-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Capacity Charge $7.46 $7.90 $8.19 per kW for all kW of Billing Demand Energy Charge $.0339 $.0359 $.0372 per kWh for all kWh y Cost Adiustrnent-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 BWL 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 Qhargc-The capacity charge included in the rate,except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. Billing D m -The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 60%of the highest registered demand in the preceding eleven(11)months,nor less than 15 kW. Adopted: Effective: Board of Water and Light,Lansing,Michigan 1st Revise.-Sheet No.EB8 LARGE GENERAL SERVICE PROPOSED RATE NO.4 Power Factor Adiustment 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-Where the BWL elects to measure the service on the primary side of the transformer,the metered kW and kWh quantities thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installation,the consumption as registered by the different metering installations will not be combined for billing purposes,but will be computed and billed separately. Delayed Pament 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: Board of Water and Light,Lansing,h- oigan 2nd I`__.sed Sheet No.EB9 PRIMARY SERVICE PROPOSED RATE NO.5 Av 'a lability-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 Servir_e-Alternating current,60 hertz,three phase. The primary voltage to be determined by the Board of Water and Light(BWL). Months Rate-Shall be computed in accordance with the following charges: effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Capacity Charge $5.31 $5.69 $5.92 per kW for all kW of on-peak billing demand,plus $1.73 $1.86 $1.94 per kW for all kW of maximum demand Energy Charge $.0333 $.0357 $.0372 per kWh for all kWh during the on-peak period,plus $.0306 $.0328 $.0342 per kWh for all kWh during the off-peak period. Fnc=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 Cbwgc-The capacity charge included in the rate. Billing DCMand On-Peale 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: Board of Water and Light,Lansing,Michigan 1st Reviseo Sheet No.EB10 PRIMARY SERVICE RATE NO.5 Schedule of on-Qe ka and off- period-,-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 Adiustment 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. Meng-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 Char c-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 CharQc-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 cgui�s�tion-a-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: December 18.199Q Effective: February 1. 1991 Board of Water and Light,Lansing,Michigan 1st Ic..ised Sheet No.EBI I MUNICIPAL WATER PUMPING SERVICE PROPOSED RATE NO.7 Availability-This rate is available to any political subdivision or agency thereof of the State of Michigan located within the Board of Water and Light(BWL)service area desiring service for potable water pumping and associated potable water production equipment when the entire electrical requirements are supplied at one point of delivery through one meter. This rate is not available for emergency,standby,or auxiliary service. Nature of_Serviee-Alternating current,60 hertz,three phase. The secondary or primary voltage in each case to be determined by the BWL. Monthly Rat -Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Energy Charge $.0503 $.0538 $.0562 per kWh for all kWh Energy Cosl 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 A ' stment-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 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. M icdW-Where the BWL elects to measure the service on the primary side of the transformers serving the customer,the metered kWh thus measured will be reduced 3%for billing purposes to adjust for transformer losses. Delayed Ea=cnt Ch&Me-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 ChajgC-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 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: Board of Water and Light,Lansing,Michigan 1st Revise Sheet No.EB12 OFF-PEAK ELECTRIC WATER HEATING SERVICE PROPOSED RATE NO.8 This rntc haG been canceled. Adopted: Effective: Board of Water and Light,Lansing,Michigan 1st Revised Sheet No.EB13 OUTDOOR LIGHTING SERVICE PROPOSED RATE NO.9 Availability-This rate is available to any customer located within the Board of Water and Light(BWL)service area for dusk to dawn lighting of customer's premises. All lights will be furnished and maintained by the BWL and will be installed so as to overhang private property from existing or new poles set at points accessible to the BWL construction and maintenance equipment. This rate is not available for purposes of street,highway,or public thoroughfare lighting. Mont to-Shall be computed in accordance with the following charges. Luminaire on Overhead Mast Arm on existing BWL poles effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 High Pressure Sodium 100W $7.31 $7.47 $7.78 250 W $12.53 $12.81 $13.34 400 W $13.43 $13.73 $14.29 Mercury VaLrl 175 W $12.53 $12.81 $13.34 400 W $13,43 $13.73 $14.29 Floodlighting Luminaire on Bracket Arm on existing BWL poles High Pressure Sodium 100 W $10.82 $11.06 $11.51 250 W $13.33 $13.62 $14.18 400 W $15.63 $15.97 $16.62 In the event that additional facilities or rearrangement of existing facilities shall be required to serve customers,the BWL shall install,operate and maintain such facilities for the following monthly charges: Tvoc of Facilities 35-foot wood poles $4.21 $4.30 $4.48 per pole including span of overhead secondary extension 35-foot concrete pole $10.22 $10.44 $10.87 per pole including span of overhead secondary extension Other facilities,hand set 1.5% 1.53% 1,59% of estimated costs poles,or rearrangement of existing facilities IRates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: Effective: Board of Rater and Light,Lansing,Michigan Original Sheet No.EB14 OUTDOOR LIGHTING SERVICE RATE NO.9 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 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. 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. Service Contract-A written service agreement shall be entered into to take service for a term of years determined as follows: (a) One year,if additional facilities are not required. (b) Three years,if additional facilities are required. In the event the customer discontinues service before the end of the agreement term,the established rate for the remaining portion of the agreement shall immediately become due and payable. BWL will replace lamps or make repairs as soon as practical after the customer has reported that the installation requires servicing. Such replacements and repairs,however,will be made during regular working hours. The BWL may refuse or restrict the service provided in this rate to seasonal type customers and/or the BWL may require such customers to pay for the service annually in advance where the permanency of the customer is doubtful or has not been demonstrated by the customer. If relocation,including adjustment,of the outdoor protective light or relocation of other facilities used in connection with the light is desired by the customer during the term of the contract,the BWL will provide this service,if feasible,at the customer's expense. 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: May 26, 1987 Effective:July 1. 1987 Board of Water and Light,Lansing,Michigan Original Sheet No.EB15 TRAFFIC LIGHT SERVICE RATE NO. 11 Availability-This rate is available to any political subdivision or agency of the State of Michigan located within the Board of Water and Light(BWL)service area desiring unmetered secondary service for operating traffic lights installed on streets or highways for traffic control and guidance. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate-Shall be computed in accordance with the following charges. Energy Charge $.0226 per watt of active load per month Maintenance/Relamping Charge The actual labor,material,miscellaneous and indirect expense charges experienced maintaining and relamping traffic signals during the preceding month. Talc Adiustmeg-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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-$1.50 per month or part thereof. Delayed Payment ChwXe-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. Determination of Active Load-The active load of flasher lamps or cyclically operated traffic control lamps shall be 50%of total wattage of all lamps used during one complete cycle of operation. The active load of continuous,non-intermittent steady burning lamps shall be 100%of the total wattage of all lamps used. Rule-Aud R gulatigns-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Michigan 1st Rcviscd Sheet No.EB16 SPACE CONDITIONING ELECTRIC WATER BEATING SERVICE PROPOSED RATE NO. 12 Availability-This rate is available to any customer desiring service for commercial/industrial space conditioning and/or electric water heating furnished through a separate meter to which no other electrical device except electric space heating,electric air conditioning,humidity control equipment or electric water heating equipment may be connected. Electric space heating will be considered to include heating by light system provided the primary means of space heating at the time of maximum heating requirements will be furnished by the lighting system with the balance of the heating requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal source of space heating,or to the use of electricity for occasional or seasonal substitute for another method of water heating. Nature of Se ice-Alternating current,60 hertz,single phase at Board of Water and Light(BWL)available secondary voltage. Three phase service will be furnished at BWL option. Month Rtrta--Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $4.97 $5.36 $5.66 per customer per month or part thereof Energy Charge Summer Billing Months of June through October $.0591 $.0637 $.0673 per kWh for all kWh Winter Billing Months of November through May $.0534 $.0575 $.0607 per kWh for all kWh Energy Cost A 'ustnignt_-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 Adiustmm?-Bill 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 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 Chan,-The customer charge included in the rate. Delayed Payment arse-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. 0�licationClrz�ra_e-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 ftulatia nc.-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Effective: Board of Water and Light,Lansing,Michigan 1st Rc.ased Sheet No.EB17 RESIDENTIAL ELECTRIC SERVICE,SENIOR CITIZEN PROPOSED RATE NO.21 Availability-This rate is available to any single family residence or individual dwelling unit when the entire electric requirements are supplied at one point of delivery through the same meter and where the customer is 65 years of age and head of the household being served. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Customers taking service under this rate shall provide evidence of age and contract with the Board of Water and Light(BWL)to remain on this rate for at least twelve(12)months. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge $.0380 $.0402 $.0416 per kWh for the first 300 kWh $.0615 $.0650 $.0673 per kWh for the next 200 kWh $.0843 $.0891 $.0923 per kWh for all over 500 kWh Water Heating miscount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 300 kWh,plus the energy cost adjustment,shall apply to the first 500 kWh billed and the rate used for the next 200 kWh,plus the energy cost adjustment,shall apply to the next 300 kWh billed. Fncgv 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. Tarr Adjustnicut-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 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 compclled to share such local increases. Minimum Charge-The customer charge included in the rate. 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 Cha rgc-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 RMulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Effective: Board of Water and Light,Lansing,Michigan Or.,.nal Sheet No.EB18 STREET LIGHTING SERVICE-BOARD OWNED SYSTEMS RATE NO.31 Availability-Available to any political subdivision or agency of the State of Michigan within the Board of Water and Light(BWL) service area having jurisdiction over public streets or roadways,for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system with secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires. Where an overhead line extension is required to serve one or more luminaires, the BWL will furnish,as part of the facilities to be provided by it under this rate,an average of 350 linear feet of line extension per luminaire to be served from such extension. A special agreement will be required if more than 350 linear feet of line extension per luminaire is required. Nature of Service-The BWL will furnish,install,own,operate,and maintain all equipment comprising the street lighting system, and supply the unmetered energy. The BWL reserves the right to furnish service from either a series or multiple system or both. Annual ate-The annual rate per luminaire,payable in twelve(12)monthly installments,shall be as follows: Installations TvnrSchedul Post Top 31A Mast Arm 31 B Bracket Arm-Overhead Service 31 C Bracket Arm-Underground Service 31D Historic 31 E WalUTunnel 31 F Customer Contribution-The above annual rates are based upon fixtures normally stocked by the BWL and installed utilizing normal construction techniques. The BWL may,at its option,upon customer request install a street lighting system not covered by the above rates. The customer,after installation,will be required to make a one-time contribution equal to the difference between the actual installed cost and the BWL estimated installed cost of a standard installation. The annual unit charge for each luminaire will then be as stated above, Unit Rc lacement-The BWL may,at its option,upon customer request replace existing street light units. After installation,the customer shall make a one-time contribution equal to the undepreciated value of the unit plus the cost of removal. Delayed Payment C &W-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. Tax Adivatment-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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. Adopted: Ma 26, 19.87 Effective: July 1. 1987 Board of Water and Light,Lansing,M,chigan Jriginal Sheet No.EB19 STREET LIGHTING SERVICE-BOARD OWNED SYSTEMS RATE NO.31 Spccial Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to termination charges, contribution in aid of construction,term or other special considerations when the customer requests service,equipment or facilities not normally provided under this rate. 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: May 26. 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Mich.gan Original et No.EB20 POST TOP INSTALLATIONS SCHEDULE 31A Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium Luminaire 50 W $110.00 $124.00 70 W $113.00 $128.00 100 W $122.00 $138.00 Mcrculy Vapor Luminairel 100 W $118.00 $133.00 175 W $128.00 $145.00 Incandescent Luminaire2- 2500 L $91.00 $141.00 4000 L $118,00 $183.00 6000 L $133.00 $206.00 MAST ARM INSTALLATIONS SCHEDULE 31B Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure SodiumL.uminaire 70 W $55.00 $60.00 100 W $65.00 $69.00 150 W $73.00 $79.00 250 W $91.00 $97.00 400 W $118.00 $123.00 Mercun+Y_apor uminairci 175 W $67.00 $76.00 400 W $105.00 $116.00 700 W $160.00 $176.00 1 Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. 2Rates apply to existing luminaires only and are not open to new business. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Michigan Original Sheet No.EB21 BRACKET ARM-OVERHEAD SERVICE INSTALLATIONS SCHEDULE 31C Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium L-uminire 70 W $153.00 $173.00 100 W $162.00 $183.00 150 W $170.00 $192.00 250 W $150.00 $211.00 400 W $210.00 $237.00 Mercy,y Vapor Luminaire1 175 W $126.00 $190.00 400 W $183.00 $229.00 700 W $257.00 $290.00 1000 W $295.00 $333.00 BRACKET ARM-UNDERGROUND SERVICE INSTALLATIONS SCHEDULE 31D Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium Luminaire 70 W $153.00 $173.00 100 W $161.00 $182.00 150 W $169.00 $192.00 250 W $186.00 $210.00 400 W $210.00 $237.00 70/70 W $206.00 $233.00 100/100 W $217.00 $253.00 150/150 W $240.00 $271.00 250/250 W $274.00 $310.00 400/400 W $320.00 $362.00 Mercury YAMr Lu�1 175 W $164.00 $189.00 400 W $203.00 $229.00 700 W $257.00 $290.00 1000 W $295.00 $333.00 175/175 W $217.00 $266.00 175/400 W $271.00 $306.00 400/400 W $307.00 $347.00 400/1000 W $399.00 $451.00 1000/1000 W $490.00 $554.00 1 Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Michtgan Original S�-et No.EB22 HISTORIC INSTALLATIONS SCHEDULE 31E Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium L.uminaire 70 W $255.00 $288.00 150/150 W $713.00 $806.00 WALLjI'UNNEL INSTALLATIONS SCHEDULE 31F Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium L.uminaire 100 W-8760 hours $148.00 $167.00 150 W-4200 hours $121.00 $137.00 Mercury V_avor L.uminairel 250 W-4200 hours $111.00 $148.00 1 Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Michigan Original Sheet No.EB23 STREET LIGHTING SERVICE-CUSTOMER OWNED SYSTEM RATE NO.32 Availability-Available to any political subdivision or agency of the State of Michigan within the Board of Water and Light(BWL) service area having jurisdiction over public streets or roadways,for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system available. Nature of Service-The BWL will connect the customer's equipment to the BWL lines,furnish the control equipment,supply the unmetered energy,control the burning hours of the lamps,provide normal replacement of luminaire refractors,control devices and lamps. The customer will furnish,install and own all equipment comprising the street lighting system,including but not limited to the overhead wires or underground cables between luminaires and the supply circuits extending to the point of attachment with the BWL approval. All maintenance and replacement of the customer's equipment except normal lamp and glass replacement shall be paid for by the customer. The BWL reserves the right to furnish service from either a series or multiple system or both. Annual Rate-The annual rate per luminaire,payable in twelve(12)monthly installments,shall be as follows: Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium Luminaire 50 W $24.00 $27.00 70 W $27.00 $31.00 100 W $36.00 $41.00 150 W $44.00 $50.00 250 W $60.00 $68.00 400 W $84.00 $95.00 Mercury Y,=r Luminaires 175 W $41.00 $46.00 250 W $54.00 $61.00 400 W $77.00 $87.00 700 W $131.00 $148.00 1000 W $169.00 $191.00 'Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: Maw 6.2 1987 Effective: July 1. 1997 Board of Water and Light,Lansing,Michigan Original Slkit No.EB24 STREET LIGHTING SERVICE-CUSTOMER OWNED SYSTEM RATE NO.32 Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 Incandescent Luminaire2 2500 L $41.00 $64.00 4000 L $66.00 $102.00 6000 L $80.00 $124.00 Maintenance ChaMe-The actual labor,material,miscellaneous and indirect expense charges experienced maintaining street light units during the preceding month. The annual rate for units consisting of more than one luminaire shall be the appropriate combination of individual unit charges shown 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 other charges against the BWL 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. Delayed Payment ChaMe-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. Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to termination charges, contribution in aid of construction,term or other special considerations when the customer requests service,equipment or facilities not normally provided under this rate. 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. 2 Rates apply to existing luminaires only and are not open to new business. Adopted: May 26. 1987 Effective: Iuly1. 1997 Board of Water and Light,Lansing,..—nigan 1st h_..sed Sbeet 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 Ysat 71 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: Fe 1. 1991 Board of Water and Light,Lansing,Michigan 1st Reviseo•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 Chuge-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: Fcbcl= L 1991 Board of Water and Light,Lansing,Imchigan Original Sheet No.EB27 ENERGY COST ADJUSTMENT The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment. In applying the Energy Cost Adjustment the applicable rate per kWh shall be increased or decreased by the amount of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating the monthly Energy Cost Adjustment. Definitions Energy Cost Adjustment-the amount per kWh by which the applicable rates shall be adjusted for billing in each month. Energy Costs-those costs incurred in supplying retail electricity. Such costs shall include fuel burned in the generating plants, energy costs associated with firm power purchases,net interchange power costs,and costs associated with other temporary power transactions such as maintenance power. The cost of fuel burned shall include the delivered cost of fuel(base cost,escalations,premiums/penalties,transportation, demurrage),outside lab fees and other outside costs related to fuel procurement,and fuel additives such as freeze proofing. The cost of fuel burned shall be computed based on a fixed reference generation efficiency factor(heat rate)for the total electric system. For this purpose the reference efficiency factor shall be 10,740 Btu per kWh for kWh generated,net of station use. Energy costs recovered by the Energy Cost Adjustment may vary from actual energy costs depending on the actual generation efficiency achieved compared to the reference energy efficiency stated above. Over/Under Recovery-the difference between actual Energy Costs for prior months and the amount of energy cost recovered by means of the Energy Cost Adjustment. The Over/Under Recovery shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month. Base Cost of Energy-the amount of energy cost included in the energy rates of the various rate schedules. Such amount shall not be recovered by means of the Energy Cost Adjustment. Procedures Estimated Energy Cost shall be projected in advance for each month. Any amount of Over/Under Recovery(positive or negative) shall be added to the Energy Cost to determine the total cost basis for the Energy Cost Adjustment. The Base Cost of Energy shall be deducted from the total cost resulting in the dollars anticipated to be recovered during the upcoming month. This amount shall be divided by the projected total retail billed sales for the upcoming month resulting in the Energy Cost Adjustment to be applied. Each month the actual Energy Cost and billed sales shall be determined from the records. Using this data and the Energy Cost Adjustment actually applied,the Over/Under Recovery shall be computed for the upcoming month. Adopted: May 26. 1987 Effective: June 12- 1987 Board of Water and Light,Lansing,Michigan Oi.,,nal 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 ncgotiate with qualifying customers as to terms and conditions of this rider. Adopted: December 18, 1229 Effective: Febral�j 1. 1991 112 September 24, 1991 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. 91-94 Authorize West Saginaw Shop-Rite, 3800 West Saginaw Street, Lansing, MI as a paystation,upon completion of the usual paystation agreements and bonds. -------------------- The previous paystation in this area was Perry Drugs, located one block east. They collected an average of$26,176.12 and served an average of 593 customer per month. Continuance of this service in this area is imperative to good community-customer relations. -------------------- TREASUREWCONTROLLER Res. No. 91-9-5 Award a three year contract to Millar Elevator Co., Lansing, Michigan, in the amount of $120,780.00 to cover maintenance on elevators at the Main Office Building,Eckert Station, 730 E. Hazel Street, Ottawa Station, 312 N. Grand Avenue, Erickson Station and 1232 Haco Drive. The contract will cover the period from October 1, 1991 to September 30, 1994. -------------------- The other bidder was Otis Elevator Company. Otis Elevator elected to bid only on elevators of their manufacture and the odd brands at 312 N. Grand Avenue and the Erickson Station stack. Millar was low bid on all elevators individually. Schindler Elevator Corp. was invited to bid but did not reply. September 24, 1991 113 TREASURER/CONTROLLER(Continued) Res. No. 91-9-6 WHEREAS,the Lansing Board of Water and Light (the BWL) proposes to issue its tax- exempt bonds (the Bonds) to finance the Oneida Interccnnection and BESOC Computer Replacement for its Electric Transmission&Distribution System, an Ottawa Street Intertie, Ottawa Station Upgrade and Duplex Line Replacement for its Steam Transmission& Distribution System and a High Lift Station for its Water Transmission & Distribution System (the Project); and WHEREAS,it is anticipated that the BWL will advance all or a portion of the costs of the Project prior to the issuance of the Bonds, such advance to be repaid without interest from the proceeds of the Bonds when the Bonds are issued. IT IS RESOLVED BY THE LANSING BOARD OF WATER & LIGHT, AS FOLLOWS: 1. The cost of the Project is presently estimated to be as follows: Oneida Interconnection $ 9,801,000 BESOC Computer Replacement 8,839,000 Ottawa Street Intertie 1,192,000 Ottawa Station Upgrade 820,000 Duplex Line Replacement 3,371,000 High Lift Station 3,830,000 TOTAL: $27,853,000 2. The BWL intends to expend approximately$650,000 from cash flow to pay costs of the Project. 3. The BWL declares its official intent to issue the Bonds to finance the costs of the Project and to reimburse, without interest, advances by the BWL to pay Project costs as anticipated by this Resolution. The BWL anticipates that the interest on the Bonds shall be excluded from gross income for federal income tax purposes; provided, however,that,if the Bonds cannot be issued as tax-exempt debt,the Bonds may be issued as taxable debt. 4. The Bonds shall be authorized by proper proceedings sub- sequent to this Resolution and,when issued, shall be repaid from the net revenues of the electric, steam and water systems of the BWL. 5. It is determined that, pursuant to the BWL budget, no moneys other than the proceeds of the Bonds will, on a long term basis, be allocated,reserved, or otherwise available for the expenditures required by the Project. 114 Septenber 24, 1991 TREASURER/CONTROLLER (Continued) (Res. No. 91-9-6) 6. The Secretary of the BWL is authorized and directed to make copies of this Resolution available for inspection by the general public at the main administrative offices of the BWL located at 123 W. Ottawa Street, Lansing, Michigan, during normal business hours on every business day of the period beginning 10 days after the date of the adoption of this Resolution and ending on, and including, the date on which Bonds are issued. 7. All prior resolutions and parts of resolutions insofar as they may be in conflict with this Resolution are rescinded. -------------------- IRS regulations require documentation of intent to issue bonds for retroactive charges to be paid from bond proceeds. Some of the projects included in the upcoming bond issue have incurred preliminary engineering charges. This resolution simply states the BWL's intent to finance these projects with bonds. Bond proceeds will pick up charges starting July 1, 1991. -------------------- WATER Res. No. 91-9-7 That the Board agree to serve water to proposed Water District No.75, Delhi Township, as requested by resolution of the Delhi Charter Township Board on July 16, 1991, 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. 75 established by Township resolution on July 16, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a $10,647.00 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 LXXV) covering the furnishing of a potable water supply in Water District No. 75. September 24, 1991 115 WATER (Continued) (Res. No. 91-9-7) 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$10,647.00 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXV) to furnish a potable water supply in Water District No. 75. The geographical area of Water District No. 75 is as follows: Grovenburg Farms No. 4 Subdivision Lots 70 thru 80. To provide a potable water supply within the proposed new district requires the installation of 450 feet of water main and fire hydrant at an estimated cost of $10,647.00. The main extension will serve eleven (11) residential customers. One-time connection fees will amount to$6,160.00. Estimated annual revenue is $3,300.00. Water mains to be installed in Fall/Winter of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Res. No. 91-9-8 That the Board agree to serve water to proposed Water District No. 79,Delhi Township, as requested by resolution of the Delhi Charter Township Board on August 20, 1991 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. 79 established by Township resolution on August 20, 1991 and will provide a potable water supply to said district. 2. The Township will be required to make a $32,887.40 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 LXXIX) covering the furnishing of a potable water supply in Water District No. 79. 116 September 24, 1991 WATER (Continued) (Res. No. 91-9-8) 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 $32,887.40 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXIX) to furnish a potable water supply in Water District No. 79. The geographical area of Water District No. 79 is as follows: Glenmoor Manor Subdivision,Phase III Lots 38 thru 58. To provide a potable water supply within the proposed new district requires the installation of 1,390 feet of water main and fire hydrants at an estimated cost of $32,887.40. The main extension will serve twenty-one residential customers. One-time connection fees will amount to$11,760.00. Estimated annual revenue is $6,300.00. Water mains to be installed in Fall/Winter of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectful) ubmitted, Joseph Pandy,Jr. / General Manager JP/bg September 24, 1991 117 Mr. Pandy pointed out an error on the information sent to the Commissioners regarding Resolution 91-9-5.' The Board packet was correct but the agenda contained an error. The three-year agreement with Millar Elevator Company is from October 1,1991 to September 30, 1994. It covers on-going maintenance work on the elevators in the Main Office Building. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-9-4 (Consumer Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolutions 91-9-5 and 91-9-6 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolutions 91-9-7 and 91-9-8 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGERS REMARKS The Board of Water and Light continues to be involved in the Michigan Municipal Cooperative Group (MMCG). A letter has been received from U.S. Senator Riegle indicating the Senate Banking Committee's consideration of the Public Holding Company Act. The committee will have a field hearing on this issue in Lansing, loth Floor, City Council Chambers on Friday, October 11, 1991 from 10 a.m. until 12 Noon. Other hearings will be held in Washington, D.C. as well. The hearing will focus on the interest of energy consumers and the approach is to insure that customers of all public utilities have access to reliable low-cost energy sources. General Manager Pandy has been invited to testify. It is also expected that Assistant General Manager Wolfe will be testifying on behalf of the MMCG. The Commissioners were asked if they would be interested in being involved in these hearings. It is a significant development that the senator would bring his staff to Lansing to hear from the local community on this issue. 118 September 24, 1991 Information was presented stating why transmission access is so important to the Board of Water and Light (BWL). The BWL had an opportunity to sell 20 megawatts of power to the City of Grand Haven during the month of October; this is maintenance power that they need while doing maintenance on a unit, at 100 X load factor for 24 hours per day through the full month. The BWL quoted unit power which would have dedicated a generating unit that would not normally be operating at Eckert; our lowest cost coal was also factored in and a price of about $300,000 for the month was quoted to them. When the wheeling charges are added, approximately $87,000, the price of getting the power to Grand Haven becomes unattractive. They end up being able to buy non-displacement power from Consumers Power at a lesser rate. The only thing making the BWL uncompetitive is the wheeling charges. There is a lost opportunity for a sale that is directly impacted by us not owning transmission rights. General Manager Pandy will be discussing this in his testimony on October 11. The BWL has been approached by the Department of Natural Resources (DNR) regarding their existing lease agreement in Delta Township for fishing access to Erickson Station's Lake Delta. The DNR would like to extend the ramps approximately 100 feet to expand the opportunity for fishing. DNR is asking the BWL to extend the lease agreement for another 20 years. The BWL has declined to do that because we have been working for several years trying to get a Flyash Landfill License with the DNR; we have been unsuccessful at this point. If we are unable to license a flyash landfill, we will end up filling in Lake Delta at some point. It would be inappropriate to commit the lake for 20 years; the DNR is aware that we need their resolve on our license for the landfill before we can move on extending the agreement for Lake Delta. If we could get that license to operate, they had previously licensed the facility to be constructed, we may be able to give them a longer lease on the lake. The normal date for the Committee of the Whole Meeting would be the second Tuesday, October 8; that date is in conflict with the start of the MMEA Fall Conference. A date of October 15 has been selected if that is acceptable with the Commissioners schedules. The meeting will be held at the new Northeast Substation, and the subject will be electromagnetic fields (EMF). The Board Meeting can be changed from the normal date of October 22, to October 29. A meeting was held with Tateyuki Eguchi from Japan, who represents JETRO, a Japanese export trade organization. The Japanese are working with local Chambers of Commerce to develop more exporting of American goods to Japan. Last year Michigan exported $60 million worth of goods to Japan; North Carolina exported $130 million. His organization has been provided a budget of$100 million to try to attract imports. The Small Business Person Of The Year 1991 Award was presented to David O'Leary of O'Leary Paint Company, who is the Chambers Small Business Person Of The Year 1991. September 24, 1991 119 Commissioner Sebolt inquired as to whether Larry Wilhite had received a copy of Mr. Teets document. Clarification was given regarding Item #18 in Mr. Teets letter. $521.19 was the judgment that was rendered and that is what Mr. Teets owes the BWL. Commissioner Sebolt also mentioned that in his discussion with Mr. Teets earlier this evening he suggested Mr. Teets apologize to Commissioner Sister Mary Janice Belen for remarks he made to her. ADTOL� On the motion of Commissioner Christian, the Board adjourned at 6:32 p.m. Ate Rosemary Sullivan Assistant Secretary Filed: September 27, 1991 James D. Blair, City Clerk PROPOSED ELECTRIC RATE SCHEDULES 1991 BOARD OF WATER AND LIGHT 123 West Ottawa Street Lansing, Michigan 48933 l6, CONTENTS Letter to City Clerk dated September 27, 1991 Attachment A - Average Rate Increases by Customer Class Attachment B - Notice of Public Hearing Attachment C - Copy of the Committee of the Whole Report adopted by the Board Proposed Electric Rate Schedules: Rate 1 Residential Electric Service Rate 2 Residential All-Electric Service Rate 3 General Service Rate 4 Large General Service Rate 5 Primary Service Rate 7 Municipal Water Pumping Service Rate 8 Rate Discontinued (Off-Peak Electric Water Heating Service) Rate 9 Outdoor Lighting Service Rate 12 Space Conditioning, Electric Water Heating Service Rate 21 Residential Electric Service, Senior Citizen Current Electric Rate Schedules with no changes: Rate 11 Traffic Light Service Rate 31 Street Lighting Service - Board Owned Systems Rate 32 Street Lighting Service - Customer Owned Systems Economic Development Rider Energy Cost Adjustment Scheduled Curtailment Service Rider WATER&LIGHT WORM. HARD TO SERVE YOU Mary E. Sova P.O. Box 13007 123 Corporate Secretary W. Ottawa Street 517.371.6033 Lansing, MI 48901-3007 517.371.6000 September 27, 1991 Mr. James D. Blair City Clerk City of Lansing Lansing, Michigan 48933 Dear Mr. Blair: This letter and attachments are being filed with the City Clerk as required in Article 5, Chapter 2, Section 5-205.2 of the City Charter regarding changes in rate structures and other charges. The Board of Water and Light's current electric rate schedules covering retail service and outdoor lighting were effective June 12, 1987. Rate No. 4 was changed June 1, 1988. Rate No. 5 was changed February 1, 1991. To recover sufficient revenues to operate the electric utility, the Commissioners have under consideration a series of electric rate increases. A public hearing is scheduled for Tuesday, November 12, 1991, at 5:30 p.m., in the Board of Water and Light office building, 123 W. Ottawa Street, to provide for public input into these changes. The proposed average system rate increases are as follows: Effective January 1, 1992 4.5% Effective January 1, 1993 4.6% Effective January 1, 1994 4.6% Attachment A details the average rate increases by customer class. The actual increase in a customer's monthly bill depends upon usage. Attachment B presents the form of "Notice of Public Hearing" which will be published in the LANSING STATE JOURNAL twice prior to the public hearing date. Attachment C is a true copy of the Board of Water and Light Committee of the Whole Report adopted by the Board on September 24, 1991. Copies of proposed electric rate schedules under consideration are also attached, along with current rate schedules not being changed at this time. The estimated annual revenue increase from this series of rate increases is $7,081,000 in 1992, $7,726,000 in 1993, and $8,359,000 in 1994, respectively. Very trul yours, dart W ASo, Corpo to Secretary Attachments cc: Board of Commissioners City Councilmembers Mayor Terry McKane ATTACHMENT A 1991 ELECTRIC RATE STUDY FIRST YEAR SECOND YEAR THIRD YEAR $1000 Revenue Rate Revenue Rate Revenue Rate Increase Increase Increase Increase Increase Increase Residential 1 1,679 4.7% 1,659 4.1% 1 ,816 4.2% All Electric 2 102 4.6% 102 4.1% 112 4.2% Off-Peak Water Heating 8 1 8.3% 1 6.4% 1 5.5% Senior Citizen 21 37 4.6% 40 4.7% 43 4.6% Small Secondary 3 1 ,014 4.5% 961 3.7% 1,191 4.6% Large Secondary 4 1 ,064 5.1% 1 ,040 4.4% 1 ,143 4.5% Large Primary 5 2,937 4.6% 3,603 5.5% 3,675 5.0% Municipal Pumping 7 62 5.0% 72 5.4% 79 5.5% Space Cond/Water Heatin 12 121 4.7% 168 6.5% 185 6.5% Protective Lighting 9 11 0.1% 25 2.2% 40 4.2% St/Lighting/Signals 11/SL 53 -0.0% 55 -0.0% 74 0.5% Grand Total 7,081. 4.5% 7,726 4.6% 8,359 4.6% Residential 1 ,819 1 ,802 1 ,972 General Service 5,198 5,844 6,273 Other 64 80 114 Subtotal 7,081 7,726 8,359 Prepared By:Paul Wier7Ucki RS1991-6.wq! 16-Sep-91 ATTACHMENT B NOTICE OF PUBLIC HEARING PROPOSED ELECTRIC RATE INCREASES BOARD OF WATER AND LIGHT OF THE CITY OF LANSING, MICHIGAN A Public Hearing will be held on Tuesday, November 12, 1991 at 5:30 p.m. at the Board of Water and Light office building, 123 West Ottawa Street, Lansing, Michigan. Members of the public are invited to attend. Signs directing people to the hearing room will be posted in the lobby. PURPOSE OF THE HEARING: The Board of Water and Light solicits comments from the public on an ELECTRIC RATE INCREASE. THE PROPOSAL being considered by the Board would increase rates an average of 4.5%, 4.6% and 4.6%, effective January 1, 1992, 1993 and 1994, respectively. REASON FOR CHANGE: To increase revenue to pay increasing operating costs associated with Belle River purchased power. IF YOU WANT TO BE HEARD Comments, oral or written, may be submitted at the public hearing. Mailed comments will be received until 5:00 p.m. on November 12, 1991, addressed to the Board of Water and Light, P. O. Box 13007, Lansing, Michigan 48901, Attention: Corporate Secretary. Comments MUST BE LIMITED TO THE PROPOSED RATE INCREASE. The hearing officer may impose time restrictions on oral comments, depending on the number of persons wishing to be heard. FURTHER INFORMATION Copies of proposed electric rate schedules and other data may be picked up at the information desk on the first floor of the Board of Water and Light office building between 8:00 a.m. and 5:00 p.m., Monday through Friday. This material will also be available at the public hearing. PUBLISHED BY ORDER OF THE BOARD OF WATER AND LIGHT, LANSING, MICHIGAN. Mary E. Sova Corporate Secretary ATTACHMENT C COMMITTEE OF THE WHOLE REPORT Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on September 10, 1991, to review and discuss the following items: 1. Proposed Electric Rate Structure 2. Return on Equity Present were Commissioners Williams (Chair Pro Tem), Christian, Evans, O'Leary, Sebolt, and Commissioner Strolle. Absent were Commissioners Belen and Hassler. PROPOSED ELECTRIC RATE STRUCTURE The Commissioners received an overview of ratemaking principles and objectives as approved in 1987. Treasurer/Controller Dana Tousley and Rate Analyst Paul Wierzbicki presented a review of current and proposed rate structures, revenue generated and bill comparisons. Details of ratemaking from the standpoint of cost, financial needs and operations of the utility, and whether they are fair and equitable to customers were discussed. Revisions and corrections to the proposed rate structure were discussed after hearing input from Industrial Council representatives and Commissioners. Following discussion, the Committee of the Whole adopted the following resolution and recommends Board approval: ELECTRIC RATE CHANGES (Resolution 91-9-1) 1. Staff is directed to review the impact of more gradual movement toward equity in the index of return for each class. Further, staff is to present a revised rate structure proposal at the regular meeting on September 24th for Board consideration. 2. That electric rate schedules reflecting consecutive annual rate increases of 4.5%, 4.6% and 4.6%, respectively, (Case B) be made the subject of a public hearing prior to further consideration by the Board. 3. That a public hearing to solicit public input on this matter be scheduled for November 12, 1991 at 5:30 p.m. in the Board of Water and Light Office Building, 123 W. Ottawa Street, and that the Corporate Secretary be directed to file with the City Clerk appropriate information regarding pending changes in the electric rate structures. CERTIFICATION I hereby certify that the foregoing excerpt of the Committee of the Whole Report and Resolution 91-9-1, regarding setting a public hearing date for proposed electric rate changes, is a true, correct and complete copy of a resolution duly adopted by the Board of Commissioners of the Board of Water and Light at a regular meeting on September 24, 1991. CERTIFIED this day of , 1991. BOARD OF WATER AND LIGHT Mary E. ova, Secretary Board of Water and Light.Lansing.Michigan 1st Revise,' Sheet No.EB1 RESIDENTIAL ELECTRIC SERVICE PROPOSED RATE NO. I Availability-This rate is available to any single-family residence or individual dwelling unit when the entire electric requirements are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly ate -Shall be computed in accordance with the following charges: effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0562 $.0592 $.0611 per kWh for all over 500 kWh Water Heating Discount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 500 kWh,plus the energy cost adjustment,shall apply to the first 800 kWh billed. Fne=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 A i mstment-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 of Water and Light(BWL)property,or its operation,or the production and/or sale of electric energy,to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Qhargc-The customer charge included in the rate. Dyed Payment Ch=c-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 ChaW-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted: Effective: Board of Water and Light,Lansing,Mich+¢an 1st Revised Sheet No.EB2 RESIDENTIAL ELECTRIC SERVICE PROPOSED RATE NO. I Auxili&W Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$6.40 per month or part thereof instead of the above customer charge. 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: Board of Water and Light,Lansing,Michigan 1st Reviser+ Sheet No.EB3 RESIDENTIAL ALL-ELECTRIC SERVICE PROPOSED RATE NO.2 Availability-This rate is available to any single-family residence or individual dwelling unit when the entire electric requirements for water heating,cooking and space conditioning are supplied at one point of delivery through one meter. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single-family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge Summer Billing Months of June through October $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0562 $.0592 $.0611 per kWh for all over 500 kWh Winter Billing Months of November through May $.0517 $.0544 $.0562 per kWh for the first 500 kWh $.0553 $.0583 $.0602 per kWh for all over 500 kWh Water Heating Discount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 500 kWh,plus the energy cost adjustment,shall apply to the first 800 kWh billed. F-ners Cast 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 of Water and Light(BWL)property,or its operation,or the production and/or sale of electric energy,to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Chazgc-The customer charge included in the rate. Delayed Payment Chgrg_e-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 Ch ig _-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted: Effective: Board of Water and Light,Lansing,Mi in 1st Revised: No.EB4 RESIDENTIAL ALL-ELECTRIC SERVICE PROPOSED RATE NO.2 Auxiliary Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$6.40 per month or part thereof instead of the above customer charge. Rules and Rcgulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Effective: Board of Water and Light,Lansing, higan Is 4sed Sheet No.EB5 GENERAL SERVICE PROPOSED RATE NO.3 Availability-This rate is available to any customer desiring secondary voltage service for any purpose when supplied at one point of delivery through one meter. This rate is not available for emergency or standby service. Nature of Service-Alternating current,60 hertz,single phase or three phase. The secondary voltage in each case to be determined by the Board of Water and Light(BWL). Monthly Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $5.60 $5.95 $6.23 per customer per month or part thereof Energy Charge $.0618 $.0644 $.0664 per kWh for the first 1,500 kWh $.0624 $.0658 $.0685 per kWh for all over 1,500 kWh Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined an a separate rate schedule which is incorporated herein by this reference. Tax A jus meat-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 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 customer charge included in the rate except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. Metering-Where the BWL elects to measure the service on the primary side of the transformers,the metered kWh thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter,the consumption as registered by the different meters will not be combined for billing purposes,but will be computed and billed separately. Delayed Pa=ent ChaMe-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$7.00 charge shall be.added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the BWL. Adopted: Effective: Board of Water and Light,Lansing,Mi to 1st Rk d Shed No.EBo GENERAL SERVICE PROPOSED RATE NO.3 Auxiliary Power Provision-Customers desiring electric service as an auxiliary source of power to wind or solar powered generating equipment may take service under this rate schedule under special agreement with the BWL. The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.0221kWh delivered. Customers selling energy to the BWL shall pay a customer charge of$12.46 per month or part thereof instead of the above customer charge. 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: Board of Water and Light,Lansing, higan 13 riled Sheet No.EB7 LARGE GENERAL SERVICE PROPOSED RATE NO.4 Availabil4-This rate is available to any customer desiring secondary voltage for any purpose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kW or more. This rate is not available for standby or emergency serviczs. Nature of Service-Alternating current,60 hertz,single phase or three phase. The secondary voltage to be determined by the Board of Water and Light(BWL). Monthly Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Capacity Charge $7.46 $7.90 $8.19 per kW for all kW of Billing Demand Energy Charge $.0339 $.0359 $.0372 per kWh for all kWh En=X Cost A .uatment-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 BWL properly,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 Cha_gc-The capacity charge included in the rate,except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the BWL for the cost of furnishing service. Billing Demand-The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 60%of the highest registered demand in the preceding eleven(11)months,nor less than 15 kW. Adopted: Effective: Board of Water and Light,Lansing,Mi ,sn 1st Rt d Sheet No.E138 LARGE GENERAL SERVICE PROPOSED RATE NO.4 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-Where the BWL elects to measure the service on the primary side of the transformer,the metered kW and kWh quantities thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installation,the consumption as registered by the different metering installations will not be combined for billing purposes,but will be computed and billed separately. Delayed Pavment Cha=-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 Charee-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 Rcgulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Effective: Board of Water and Light,Lansing, higan 2r. :vised Sheet No.EB9 PRIMARY SERVICE PROPOSED RATE NO.5 Availabifily-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(BW'L). Monthly Hge-Shall be computed.in accordance with the following charges: effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Capacity Charge $5.31 $5.69 $5.92 per kW for all kW of on-peak billing demand,plus $1.73 $1.86 $1.94 per kW for all kW of maximum demand Energy Charge $.0333 $.0357 $.0372 per kWh for all kWh during the on-pcak period,plus $.0306 $.0328 $.0342 per kWh for all kWh during the off-peak period. Fnervy 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. Tar A 'ustment-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. •RillingDriman d 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: Board of Water and Light,Lansing,Micu.gan 1st Re....cd Sheet No.EB10 PRIMARY SERVICE RATE NO.5 Schedule of on„ntak and off-peak pcdods-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 Adustment 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 Charrgc-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 Chuge-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 Board of Water and Light,Lansing, higan is Ased Sheet No.EBI I MUNICIPAL WATER PUMPING SERVICE PROPOSED RATE NO.7 Availaby-This rate is available to any political subdivision or agency thereof of the State of Michigan located within the Board of Water and Light(BWL)service area desiring service for potable water pumping and associated potable water production equipment when the entire electrical requirements are supplied at one point of delivery through one meter. This rate is not available for emergency,standby,or auxiliary service. Nature of Service-Alternating current,60 hertz,three phase. The secondary or primary voltage in each case to be determined by the BWL. Monthly Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Energy Charge $.0503 $.0538 $.0562 per kWh for all kWh Enc=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 A 'ustment-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 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. Metering-Where the BWL elects to measure the service on the primary side of the transformers serving the customer,the metered kWh thus measured will be reduced 3%for billing purposes to adjust for transformer losses. iced Payment Chase-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: Board of Water and Light,Lansing,Mi in 1st Ri d Sheet No.EB 12 OFF-PEAK ELECTRIC WATER HEATING SERVICE PROPOSED RATE NO.8 This rate has been canceled. Adopted: Effective: Board of Water and Light,Lansing, higan is vised Sheet No.EB13 OUTDOOR LIGHTING SERVICE PROPOSED RATE NO.9 Availability-This rate is available to any customer located within the Board of Water and Light(BWL)service area for dusk to dawn lighting of customer's premises. All lights will be furnished and maintained by the BWL and will be installed so as to overhang private property from existing or new poles set at points accessible to the BWL construction and maintenance equipment. This rate is not available for purposes of street,highway,or public thoroughfare lighting. Monthly Rate-Shall be computed in accordance with the following charges. Luminaire on Overhead Mast Arm on existing BWL poles effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 High Pressure Sodium too $7.31 $7.47 $7.78 250 W $12.53 $12.81 $13.34 400 W $13.43 $13.73 $14.29 Mercury Va=1 175 W $12.53 $12.81 $13.34 400 W $13.43 $13.73 $14.29 Floodlighting Luminaire on Bracket Arm on existing BWL poles High Pressure Sodium 100 W $10.82 $11.06 $11.51 250 W $13.33 $13.62 $14.18 400 W $15.63 $15.97 $16.62 In the event that additional facilities or rearrangement of existing facilities shall be required to serve customers,the BWL shall install,operate and maintain such facilities for the following monthly charges: T=c of Facilities 35-foot wood poles $4.21 $4.30 $4.48 per pole including span of overhead secondary extension 35-foot concrete pole $10.22 $10.44 $10.87 per pole including span of overhead secondary extension Other facilities,hand set 1.5% 1.53% 1.59% of estimated costs poles,or rearrangement of existing facilities lRates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: Effective: Board of Water and Light,Lansing,MiL__ban .rginal Sheet No.EB14 OUTDOOR LIGA'ITNG SERVICE RATE NO.9 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 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. Dclaved Pavmen�-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. Service Contract-A written service agreement shall be entered into to take service for a term of years determined as follows: (a) One year,if additional facilities are not required. (b) Three years,if additional facilities are required. In the event the customer discontinues service before the end of the agreement term,the established rate for the remaining portion of the agreement shall immediately become due and payable. BWL will replace lamps or make repairs as soon as practical after the customer has reported that the installation requires servicing. Such replacements and repairs,however,will be made during regular working hours. The BWL may refuse or restrict the service provided in this rate to seasonal type customers and/or the BWL may require such customers to pay for the service annually in advance where the permanency of the customer is doubtful or has not been demonstrated by the customer. If relocation,including adjustment,of the outdoor protective light or relocation of other facilities used in connection with the light is desired by the customer during the term of the contract,the BWL will provide this service,if feasible,at the customer's expense. Rules and Reg�la� tions-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: May 26, 1987 Effective:July 1. 1987 Board of Water and Light,Lansing, higan O il Sheet No.EB15 TRAFFIC LIGHT SERVICE RATE NO. 11 Availability-This rate is available to any political subdivision or agency of the State of Michigan located within the Board of Water and Light(BWL)service area desiring unmetered secondary service for operating traffic lights installed on streets or highways for traffic control and guidance. Nature of Service-Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate-Shall be computed in accordance with the following charges. Energy Charge $.0226 per watt of active load per month Maintenance/Relamping Charge The actual labor,material,miscellaneous and indirect expense charges experienced maintaining and relamping traffic signals during the preceding month. Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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 Cha=-$1.50 per month or part thereof. Delayed Payment ChaMe,-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. Determination of Active f.oad-The active load of flasher lamps or cyclically operated traffic control lamps shall be 50%of total wattage of all lamps used during one complete cycle of operation. The active load of continuous,non-intermittent steady burning lamps shall be 100%of the total wattage of all lamps used. R u1L es and R g u1 tions-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,MiL...61n 13t Rt,__A Sheet No. EB16 SPACE CONDITIONING ELECTRIC WATER HEATING SERVICE PROPOSED RATE NO. 12 Availability-This rate is available to any customer desiring service for commercial/industrial space conditioning and/or electric water heating furnished through a separate meter to which no other electrical device except electric space heating,electric air conditioning,humidity control equipment or electric water heating equipment may be connected. Electric space heating will be considered to include heating by light system provided the primary means of space heating at the time of maximum heating requirements will be furnished by the lighting system with the balance of the heating requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for heat for light systems received after March 1. 1979. This rate is not applicable to the use of electricity for electric air conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal source of space heating,or to the use of electricity for occasional or seasonal substitute for another method of water heating. Nature of Service-Alternating current,60 hertz,single phase at Board of Water and Light(BWL)available secondary voltage. Three phase service will be furnished at BWL option. Monthly Rate-Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $4.97 $5.36 $5.66 per customer per month or part thereof Energy Charge Summer Billing Months of June through October $.0591 $.0637 $.0673 per kWh for all kWh Winter Billing Months of November through May $.0534 $.0575 $.0607 per kWh for all kWh F=ne My 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 A iustment-Bill 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 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 customer charge included in the rate. Delayed Payment Ch&W-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. -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 Regulationa-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: Effective: Board of Water and Light,Lansing, higan 1: vised Sheet No.EB17 RESIDENTIAL ELECTRIC SERVICE,SENIOR CMZEN PROPOSED RATE NO.21 Availability-This rate is available to any single family residence or individual dwelling unit when the entire electric requirements are supplied at one point of delivery through the same meter and where the customer is 65 years of age and head of the household being served. Service to appurtenant buildings may be taken through the same meter. Service under this rate is not available to any single family residence or individual dwelling unit when a portion of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that service for residence and non-residence purposes are metered separately. Customers taking service under this rate shall provide evidence of age and contract with the Board of Water and Light(BWL)to remain on this rate for at least twelve(12)months. Nature of Servi - -Alternating current,60 hertz,single phase, 120/240 nominal volts. Monthly Rate:,Shall be computed in accordance with the following charges. effective effective effective Jan 1,1992 Jan 1,1993 Jan 1,1994 Customer Charge $2.83 $3.05 $3.20 per customer per month or part thereof Energy Charge $.0380 $.0402 $.0416 per kWh for the first 300 kWh $.0615 $.0650 $.0673 per kWh for the next 200 kWh $.0843 $.0891 $.0923 per kWh for all over 500 kWh Water Heating Discount-When an approved electric water heater is permanently installed,and there is no other method of water heating,the rate used for the first 300 kWh,plus the energy cost adjustment,shall apply to the first 500 kWh billed and the rate used for the next 200 kWh,plus the energy cost adjustment,shall apply to the next 300 kWh billed. Enc=Cost A iustment-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. TaxAAdiustment-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 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 customer charge included in the rate. ]hayed Paymem 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 Chmgc-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: Board of Water and Light,Lansing,Mi( m ginal Sheet No.EB18 STREET LIGHTING SERVICE-BOARD OWNED SYSTEMS RATE NO.31 Availability-Available to any political subdivision or agency of the State of Michigan within the Board of Water and Light(BWL) service area having jurisdiction over public streets or roadways,for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system with secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires. Where an overhead line extension is required to serve one or more luminaires, the BWL will furnish,as part of the facilities to be provided by it under this rate,an average of 350 linear feet of line extension per luminaire to be served from such extension. A special agreement will be required if more than 350 linear feet of line extension per luminaire is required. Nature of Service-The BWL will furnish,install,own,operate,and maintain all equipment comprising the street lighting system, and supply the unmetered energy. The BWL reserves the right to furnish service from either a series or multiple system or both. Annual Rate-The annual rate per luminairc,payable in twelve(12)monthly installments,shall be as follows: Installation Tune Stele Post Top 31A Mast Arm 31 B Bracket Arm-Overhead Service 31C Bracket Arm-Underground Service 31D Historic 31 E Wall/Tunnel 31F Customer Contribution-The above annual rates are based upon fixtures normally stocked by the BWL and installed utilizing normal construction techniques. The BWL may,at its option,upon customer request install a street lighting system not covered by the above rates. The customer,after installation,will be required to make a one-time contribution equal to the difference between the actual installed cost and the BWL estimated installed cost of a standard installation. The annual unit charge for each luminaire will then be as stated above. Unit Rcplacement-The BWL may,at its option,upon customer request replace existing street light units. After installation,the customer shall make a one-time contribution equal to the undepreciated value of the unit plus the cost of removal. 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. Tax Adjuatment-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing higan Original Sheet No.EB19 STREET LIGHTING SERVICE-BOARD OWNED SYSTEMS RATE NO.31 Special_Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to termination charges, contribution in aid of construction,term or other special considerations when the customer requests service,equipment or facilities not normally provided under this rate. Rules and Rcgulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service which are incorporated herein by this reference. Adopted: May 26, 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Mi in Origii aeet No.EB20 POST TOP INSTALLATIONS SCHEDULE 31A Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium Luminaire 50 W $110.00 $124.00 70 W $113.00 $128.00 100 W $122.00 $138.00 Mercury Vanor Luminairel 100 W $118.00 $133.00 175 W $128.00 $145.00 Inrmdescent Luminal_rez 2500 L $91.00 $141.00 4000 L $118.00 $183.00 6000 L $133.00 $206.00 MAST ARM INSTALLATIONS SCHEDULE 31B Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium I_uminaire 70 W $55.00 $60.00 100 W $65.00 $69.00 150 W $73.00 $79.00 250 W $91.00 $97.00 400 W $118.00 $123.00 Mercury V&por Luminairel 175 W $67.00 $76.00 400 W $105.00 $116.00 700 W $160.00 $176.00 1 Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. 2Rates apply to existing luminaires only and are not open to new business. Adopted: May 26, 1987 Effective: I ly 1. 1987 Board of Water and Light,Lansing, higan Oi al Sheet No.EB21 BRACKET ARM-OVERHEAD SERVICE INSTALLATIONS SCHEDULE 31 C Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium Luminaire 70 W $153.00 $173.00 100 W $162.00 $183.00 150 W $170.00 $192.00 250 W $150.00 $211,00 400 W $210.00 $237.00 Mercury Vapor Luminaire1 175 W $126.00 $190.00 400 W $183.00 $229.00 700 W $257.00 $290.00 1000 W $295.00 $333.00 BRACKET ARM-UNDERGROUND SERVICE INSTALLATIONS SCHEDULE 31D Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium L uminaire 70 W $153.00 $173.00 100 W $161.00 $182.00 150 W $169.00 $192.00 250 W $186.00 $210.00 400 W $210.00 $237.00 70/70 W $206.00 $233.00 100/100 W $217.00 $253.00 150/150 W $240.00 $271.00 2501250 W $274.00 $310.00 400/400 W $320.00 $362.00 Mercvy Vapor i-uminire1 175 W $164.00 $189.00 400 W $203.00 $229.00 700 W $257.00 $290.00 1000 W $295.00 $333,00 175/175 W $217.00 $266.00 175/400 W $271.00 $306.00 400/400 W $307.00 $347.00 400/1000 W $399.00 $451.00 1000/1000 W $490.00 $554.00 1 Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: May 26. 1987 Effective: July 1. 1987 Board of Water and Light,Lansing,Mi m Origii it-et No.EB22 HISTORIC INSTALLATIONS SCHEDULE 31E Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium Luminire 70 W $255.00 $288.00 150/150 W $713.00 $806.00 WALL/TUNNEL INSTALLATIONS SCHEDULE 31F Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 ,High Pressure Sodium .uminaire 100 W-8760 hours $148.00 $167.00 150 W-4200 hours $121.00 $137.00 Merculy Yalmr L_ mi�ncl 250 W-4200 hours $111.00 $148.00 I Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: May 26. 1987 Effective. July 1, 1987 Board of Water and Light,Lansing. higan O al Sheet No.EB23 STREET LIGHTING SERVICE-CUSTOMER OWNED SYSTEM RATE NO.32 Av.3ilabilily-Available to any political subdivision or agency of the State of Michigan within the Board of Water and Light(BWL) service area having jurisdiction over public streets or roadways,for street lighting service for any system consisting of one or more luminaires where the BWL has an existing distribution system available. Nature of Service-The BWL will connect the customer's equipment to the BWL lines,furnish the control equipment,supply the unmetered energy,control the burning hours of the lamps,provide normal replacement of luminaire refractors,control devices and lamps. The customer will furnish,install and own all equipment comprising the street lighting system,including but not limited to the overhead wires or underground cables between luminaires and the supply circuits extending to the point of attachment with the BWL approval. All maintenance and replacement of the customer's equipment except normal lamp and glass replacement shall be paid for by the customer. The BWL reserves the right to furnish service from either a series or multiple system or both. Annnu l_Rate-The annual rate per luminairc,payable in twelve(12)monthly installments,shall be as follows: Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 High Pressure Sodium f_uminaire 50 W $24.00 $27.00 70 W $27.00 $31.00 100 W $36.00 $41.00 150 W $44.00 $50.00 250 W $60.00 $68.00 400 W $84.00 $95.00 Merc=Yj=r L imina_ircl 175 W $41.00 $46.00 250 W $54.00 $61.00 400 W $77.00 $87.00 700 W $131.00 $148.00 1000 W $169.00 $191.00 lRates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's request,to install additional luminaires within an area already served by a mercury vapor lighting system. Adopted: May 26. 1987 Effective: July 1. 1987 Board of Water and Light,Lansing, Mic,--.an Origin, -neet No.EB24 STREET LIGHTING SERVICE-CUSTOMER OWNED SYSTEM RATE NO.32 Annual Rate Annual Rate effective effective July 1,1987 July 1,1988 incandescent Luminaire2 25M L $41.00 $64.00 4000 L $66.00 $102.00 6000 L $80.00 $124.00 Maintenance Charge-The actual labor,material,miscellaneous and indirect expense charges experienced maintaining street light units during the preceding month. The annual rate for units consisting of more than one luminaire shall be the appropriate combination of individual unit charges shown above. Tax A iustment-Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes,license fees,franchise fees,or other charges against the BWL 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. D^laved 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. Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to termination charges, contribution in aid of construction,term or other special considerations when the customer requests service,equipment or facilities not normally provided under this rate. 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. 2 Rates apply to existing luminaires only and are not open to new business. Adopted: May 26. 1987 Effective: July 1. 1987 Board of Water and Light,Lansing. higan is vised Sheet No.EB25 ECONOMIC DEVELOPMENT RIDER PU -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. A,Y3ilahi -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 Rid Capacity Charge: A percentage of the capacity charge included in the principal service rate,less credits,as follows: Contract Y= �a 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 Board of Water and Light,Lansing,Mi( .n 1st Rc 1 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 ChMe-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: Febalyy 1. 1991 Board of Water and Light,Lansing -higan Original Sheet No.EB27 ENERGY COST ADJUSTMENT The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment. In applying the Energy Cost Adjustment the applicable rate per kWh shall be increased or decreased by the amount of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating the monthly Energy Cost Adjustment. Definilions Energy Cost Adjustment-the amount per kWh by which the applicable rates shall be adjusted for billing in each month. Energy Costs-those costs incurred in supplying retail electricity. Such costs shall include fuel burned in the generating plants, energy costs associated with firm power purchases,net interchange power costs,and costs associated with other temporary power transactions such as maintenance power. The cost of fuel burned shall include the delivered cost of fuel(base cost,escalations,premiums/penalties,transportation, demurrage),outside lab fees and other outside costs related to fuel procurement,and fuel additives such as freeze proofing. The cost of fuel burned shall be computed based on a fixed reference generation efficiency factor(heat rate)for the total electric system. For this purpose the reference efficiency factor shall be 10,740 Btu per kWh for kWh generated,net of station use. Energy costs recovered by the Energy Cost Adjustment may vary from actual energy costs depending on the actual generation efficiency achieved compared to the reference energy efficiency stated above. Over/Under Recovery-the difference between actual Energy Costs for prior months and the amount of energy cost recovered by means of the Energy Cost Adjustment. The Over/Under Recovery shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month. Base Cost of Energy-the amount of energy cost included in the energy rates of the various rate schedules. Such amount shall not be recovered by means of the Energy Cost Adjustment. Procedures Estimated Energy Cost shall be projected in advance for each month. Any amount of Over/Under Recovery(positive or negative) shall be added to the Energy Cost to determine the total cost basis for the Energy Cost Adjustment. The Base Cost of Energy shall be deducted from the total cost resulting in the dollars anticipated to be recovered during the upcoming month. This amount shall be divided by the projected total retail billed sales for the upcoming month resulting in the Energy Cost Adjustment to be applied. Each month the actual Energy Cost and billed sales shall be determined from the records. Using this data and the Energy Cost Adjustment actually applied,the Over/Under Recovery shall be computed for the upcoming month. Adopted: May 26. 1987 Effective: June 12. 1987 Board of Water and Light,Lansing,h i, tin 'ginal Sheet No.EB28 SCHEDULED CURTAILMENT SERVICE RIDER AvailabjWy-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. ('.renditions of Curtailment-The General Manager has authorization to negotiate with qualifying customers as to terms and conditions of this rider. Adopted: fiber 18. 1990 Effective•. Fly 1. 1991 BOARD OF WATER AND LIGHT NOTICE COMMTTEE OF THE WHOLE MEETING NOTICE IS HEREBY GIVEN, That a.meeting of the Committee of the Whole of the Board of Water and Light Commissioners of the City of Lansing, Michigan, will be held at 5:30 p.m. on Tuesday, August 13, 1991 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 discuss the following items: 1. Electric Revenue Requirements 2. Cresap Diagnostic Evaluation of Support Services 3. Insurance Recommendations 4. Legal Matters (FOI.A/Open Meetings) Certified by: BOARD OF WATER AND LIGHT W Mary E. a, Corporate Secretary Telephone 371-6033 Post: 8/9/91 cc: City Clerk Mayor's Office City Council/ 91 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, August 27, 1991 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, Christian, Evans, Hassler, 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 WILLIAMS That minutes of regular session of July 23, 1991 be approved as mailed. Adopted unanimously. PUBLIC COMN[ENTS 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. 92 ,august 27, 1991 COND41 EE REPORTS A letter from Chairman Hassler was read announcing committee assignments for fiscal year 1991-92 as follows: Executive Committee Phillip Hassler, Chair Jack Sebolt, Vice Chair Gerald Williams, Chair Pro Tem Finance Committee Phillip Hassler, Chair Sister Mary Janice Belen, R.S.M. Ernest Christian Gerald Williams Alternates David O'Leary John Strolle Personnel Committee Jack Sebolt, Chair Eva Evans David O'Leary John Strolle Alternates Sister Mary Janice Belen, R.S.M. Gerald Williams BY COMMISSIONER HASSLER SECONDED BY COMMISSIONER BELEN That the Committee assignments be approved as presented. Adopted unanimously. COMMITTEE OF THE WHOLE REPORT August 27, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on August 13, 1991, to discuss the following items: 1. Electric revenue requirements to finance system improvements and rates of return from each customer class. 2. Cresap Diagnostic Evaluation of Support Services. 3. Insurance Recommendations. 4. Legal Matters (Freedom of Information Act and Open Meetings Act). August 27, 1991 95 Lengthy discussion was held regarding recommendations which were already implemented prior to the completion of the study and those that are in process. The Commissioners agreed with staffs approach in addressing the consultant's recommendations, expected to result in organizational savings ranging from $700,000 to $1.4 million per year. An update on the implementation of the various recommendations will be presented periodically. LEGAL MATTERS Staff Attorney Larry Wilhite presented an overview of the Michigan Freedom of Information Act and Open Meetings Act requirements. This briefing was held solely for informational purposes. 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 Resolution 91-8-1, regarding Electric Revenue Requirements be approved as submitted. Adopted unanimously. General Manager Pandy remarked that input has been invited from the Industrial Council of the Lansing Regional Chamber of Commerce. The Industrial Council has asked the Board to consider spreading the rate increases over 3 years, limiting the increases to 4- 4.5% per year. Other groups of customers, such as the Neighborhood Council, League of Women Voters, the Labor Council and public officials will receive a letter asking if they care to provide input on the ratemaking process. rn (EXHIBIT A) 1991 ELECTRIC RATE STUDY TEST PERIOD 1992/1993 FIRST RATE INCREASE $1000 Retail Revenue Expecte Expected Revenue Retail Proposed Proposed Proposed Required Revenue Requirement Net Rate Of Index Of 7.9% Revenue Revenue Rate Of Index Of Retail Rate Base w/o Incr 0%Return Income Return Return Increase Adjust Increase Return Return Revenue Residential 1 41,557 25,864 24,906 957 2.30% 1.32 27,898 (303) 6.7% 6.46% 1.00 27.595 All Electric 2 2,830 1,600 1,554 46 1.62% 0.93 1,726 (22) 6.5% 5.30% 0.82 1.704 Off-Peak Water Heating 8 11 9 10 (1) -6.22% (3.57) 10 1 15.5% 6.82% 1.06 11 Senior Citizen 21 1,072 571 663 (112) -10.42% (5.98) 616 40 14.5% -2.72% (0.42) 656 Small Secondary 3 28,435 16,117 15,241 876 3.08% 1.77 17,384 (144) 7.0% 6.96% 1.08 17,240 Large Secondary 4 24,005 15,322 14,917 405 1.69% 0.97 16,527 90 8.4% 6.93% 1.07 16.617 Large Primary 5 67,520 45,860 45,278 582 0.86% 0.49 49,468 450 8.8% 6.70% 1.04 49,918 Municipal Pumping 7 1,727 911 921 (11) -0.62% (0.35) 982 55 13.8% 6.45% 1.00 1,037 Space Cond/Water Heating 12 4,102 1,676 1,893 (17) -0.42% (0.24) 2,023 88 12.5% 5.15% 0.80 2,111 Protective Lighting 9 1,485 600 519 80 5.42% 3.11 647 (32) 2.7% 6.47% 1.00 615 St/Lighting/Signals 11/S ____ 9,753 2,996 2,622_ 374 3.83% _ 2.20 _ 3,231 (223) 0.4% 3.96% 0.61 3,008 Grand Total _182,497 111,725 __108,545 3,180 1.74% 1.00 _ 120,512 _ 0_ 7.9% _6.45% __1.00 120,512 G 00 G rt N v Prepared By:Paul Wierzb!cki RS1991-4.wq! 12-Aug-91 G 97 August 27, 1991 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: HUMAN RESOURCES Res. No. 91-8-2 That Barbara Scott, a Clerk-Typist Bookkeeper for Customer Accounts, be awarded a total of $64.09 for suggestion proposal number 1991-093, to print employee information on both parts of the new bills to aid in payroll deduction. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $256.35 in the first year. -------------------- Res. No. 91-8-3 That Greg King, an Electric System Operator C for BESOC, be awarded a total of $122.75 for suggestion proposal number 1991-140, to institute a written procedure to allow time for schedule corrections to avoid buying expensive Belle River back-up energy. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $491.00 in the first year. -------------------- LEGAL Res. No. 91-8-4 Adopt the following strategy for purchasing property and casualty insurance coverages: In 1992 and thereafter, a property and casualty insurance coverage would be acquired by taking bids as a routine practice every three years. In the interim, insurance coverage would be negotiated with the incumbents. If necessary, the BWL could take new bids, or even negotiate with others, on insurance coverage for adverse premium changes, adverse coverage changes, failure to provide terms and conditions in a timely manner, or a desire to change a risk financing approach. -------------------- 98 August 27, 1991 LEGAL (Continued) (Res. No. 91-8-4) The BWL has bid every year since 1986 as policies have expired. Prior to that the insurance bids were taken generally every three years because the BWL was able to obtain three year policies. Liability policies have not been consistently available for greater than one year periods. The general approach of other public entities and agencies has been to negotiate for a period after bidding. Among the arguments favoring this approach are that the annual bidding process discourages some underwriters from bidding knowing that there is a good chance that the business will be gone in one year or that it causes them to provide higher rates knowing that it will likely be on the risk only for that one year period. A three year "commitment" would encourage the underwriters'to sharpen their pencils because one bad year of losses might be made up with two good years. The BWL could still go out for bids at any time, whether inspired by an unjustified rate increase,failure to communicate renewal terms and conditions in a timely manner, a BWL desire to change the risk financing approach, or any other reason. The objective of this strategy is to provide the best value to the Board of Water and Light. -------------------- Res. No. 91-8-5 Purchase the following insurance coverages: 1. From the Lyman and Sheets Agency, representing the Gulf Insurance Company, Commercial General Liability Insurance for an estimated annual premium of$256,904 for the one year period from September 30, 1991 to September 30, 1992. 2. From the Lansing Insurance Agency, representing the New Hampshire Insurance Company, Auto Liability, Comprehensive, and Collision Insurance for an estimated annual premium of$103,401 for the one year period from September 30, 1991 to September 30, 1992. 3. From the Lansing Insurance Agency,representing the National Union Fire Insurance Company of Pittsburgh, PA, $10 million Excess Liability Insurance for a flat annual premium of$204,500 for the one year period from September 30, 1991 to September 30, 1992. 4. From the Lansing Insurance Agency, representing the Lexington Insurance Company, $5 million Excess Liability Insurance for a flat annual premium of$55,080 including premium tax for the one year period from September 30, 1991 to September 30, 1992. 5. From Voss Insurance Services, Inc., representing The Aetna Casualty and Surety Company, Specific Excess Workers' Compensation Insurance for the one year period from September 1, 1991 to September 1, 1992 for an annual deposit premium of$42,089 subject to adjustment. The limit of liability is $20 million with a specific retention of $400,000. 94 August 27, 1991 CRESAP DIAGNOSTIC EVALUATION OF SUPPORT SERVICES At the July 23, 1991 Board meeting, the Commissioners received an executive summary on the scope, study approach, and conclusions of the diagnostic analysis of the BWL and its organizational structure. The study was conducted by the consulting firm of Cresap, a Towers Perrin Company. The study was referred to the Committee of the Whole meeting for further discussion at their next meeting. On August 13, 1991, the Committee of the,Whole received an in depth presentation on the findings and recommendations of the study. The background on the consultant's recommendations for the following six categories were detailed, with staff responses discussed at length: 1. Inappropriate Organization Structures ■ Reduce number of direct reports to the General Manager ■ Broaden spans of control throughout the organization ■ Eliminate certain organizational anomalies in Consumer Services 2. Gaps Between Line and Staff Units ■ Combine and standardize the approach to storeroom functions in line and staff organizations ■ Develop an information systems strategy to eliminate unnecessary fragmentation of.activities among line and staff organizations 3. Outmoded or Non-existent Computer Systems ■ Automate the meter reading and billing process for steam customers ■ Monitor and control telephone operations more effectively ■ Undertake an intensive effort to computerize several high manual accounting processes ■ Develop a centralized, companywide data base ■ Accelerate aggressive effort to improve the quality, timeliness, and responsiveness of Information Systems activities 4. Incomplete or Inefficient Processes ■ More fully develop the strategic planning process ■ Develop a formal priority system for capital projects ■ Coordinate training and development more effectively ■ Shorten the meter-reading-to-billing lag for water and electricity customers ■ Establish mechanisms to ensure that benefits promised for new information systems are achieved ■ Streamline and improve administrative processes for Project Engineering 5. Excessive Service Levels ■ Eliminate the free light bulb program ■ Implement a bimonthly meter reading schedule ■ Establish controls for personal computer procurement, distribution, and disposal ■ Establish controls for the distribution of internal publications 6. Reluctance to Contract Out Work ■ Contract out Environmental Engineering laboratory functions ■ Concentrate on performing routine engineering functions in-house and provide project management for larger projects that are contracted out ■ Concentrate on contracting out or buying off-the-shelf programs rather than have Information Systems create systems in-house August 27, 1991 93 Present were: Commissioners Belen, Evans, Hassler, O'Leary, and Williams. Absent were Commissioners Christian, Sebolt, and Strolle. REVENUE INCREASE FOR ELECTRIC UTILITY In April 1991, the Commissioners reviewed the results of an annual study on long-term revenue requirements for the three utilities. The forecast of revenue requirements indicated that overall electric rate levels were not adequate to meet revenue requirements. The Board directed staff to proceed with plans to implement electric revenue increases effective January 1, 1992. On August 13, 1991, the Commissioners reviewed the revenue requirements for the Electric Utility and discussed appropriate rate strategy. After due discussion and consensus on the Electric Rate Study timeline, the Committee of the Whole adopted the following motion and recommends Board approval: Electric Revenue Requirements (Resolution 91-8-1) RESOLVED, That electric rates be designed to implement two consecutive rate increases of 6.0% each year effective January 1, 1992 and 1993. With increased sales, revenues are expected to increase 7.9% in 1992 and 1993. Rates are to be reviewed annually at budget time to determine the need for additional rate increases. FURTHER RESOLVED, That revenue requirements by customer class be based on the attached 1991 Electric Rate Study model (Exhibit A), using fiscal year 1992-93 as the test period. INSURANCE RENEWAL STRATEGY The advantages of establishing a different property and casualty insurance renewal procedure were discussed. As background, the Board of Water and Light (BWL) has bid every year since 1986 as insurance policies expired. Prior to that, insurance bids were taken every three years because the BWL generally was able to obtain three-year policies. A survey of several similarly sized utilities and discussions with other Risk Managers and Public Entity purchasers of insurance indicated that three-year bidding would benefit the BWL. Following a review of arguments in favor of and against the new procedure, the Committee of the Whole concurred that a resolution authorizing a general practice of bidding every three years on insurance be submitted as part of the General Manager's recommendations on August 27, 1991. August 27, 1991 99 LEGAL (Continued) (Res. No. 91-8-5) 6. From Voss Insurance Services, Inc.,representing the Hartford Fire Insurance Company, Crime Insurance and Public Employees Faithful Peformance Bonding for annual premium of$2,843 for the three year period from September 30, 1991 to September 30, 1994. -------------------- PENSION Res. No. 91-8-6 That Douglas L. Barnard, Superintendent of System Operations,be placed on a pension of$2,996.72 per month effective August 1, 1991. He has selected Option III with the provision that after his death, if his wife, Patricia A. Barnard, survives him she will receive 30%or$899.02 per month for the rest of her life as provided under Option III. -------------------- Mr. Barnard has worked for the BWL for 34.55 years and is 60 years of age. -------------------- Res. No. 91-8-7 That Dowe S. Fauley, Instrument Repairman in Project Engineering, be placed on an early reduced, vested pension of$95.55 per month effective July 1, 1991. He has selected Option V with the provision that after his death, if his wife, Melvina J. Fauley, survives him she will receive $47.78 per month for the rest of her life as provided under Option V. If his wife predeceases him, the pension amount of$95.55 will revert back to the early reduced pension amount of $107.28 for the rest of his life. -------------------- Mr. Fauley has worked for the BWL for 15.20 years and is 60 years of age. -------------------- Res. No. 91-8-8 That Raymond T. Reneau, Equipment Mechanic Helper in Fleet Services, be placed on a disability pension of$383.48 per month effective July 1, 1991. He has selected a straight disability pension with Workers' Comp offset. -------------------- Mr. Reneau has worked for the BWL for 10.77 years and is 57 years of age. -------------------- 100 August 27, 1991 WATER Res. No. 91-8-9 That the Board agree to serve water to proposed Water District No. 72, Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 7, 1991, 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. 72 established by Township resolution on May 7, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a$261,350.15 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 LXXII) covering the furnishing of a potable water supply in Water District No. 72. 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$261,350.15 from the Township, the project be approved for installation, and that the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXII) to furnish a potable water supply in Water District No. 72. The geographical area of Water District No. 72 is as follows: Beginning at existing 12-inch water mains end on S. Washington Avenue then southward 940 feet to Holt Road;thence eastward on Holt Road 2,645 feet to Gunn Road; thence southward on Gunn Road 4,670 feet; thence eastward 2,250 feet to Glenmoor Manor Subdivision to tie loop together. To provide a potable water supply within the proposed new district requires the installation of 10,505 feet of water main and fire hydrants at an estimated cost of $338,614.15. The main extension will serve forty-one (41) residential customers. One-time connection fees will amount to$22,960.00. Estimated annual revenue is $12,300.00. Water mains to be installed in summer and fall of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- August 27, 1991 101 WATER (Continued) Res. No. 91-8-10 That the Board agree to serve water to proposed Water District No. 78, Delhi Township, as requested by resolution of the Delhi Charter Township Board on August 20, 1991, 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. 78 established by Township resolution on August 20, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a $52,193.96 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 LXXVIII) covering the furnishing of a potable water supply in Water District No. 78. 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 $52,193.96 from the Township, the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXVIII) to furnish a potable water supply in Water District No. 78. The geographical area of Water District No. 78 is a follows: Lot 1 - 10 of Five Oaks Commerce Park Delhi Township, Ingham County To provide a potable water supply within the proposed new district requires the installation of 2,206 feet of water mains at an estimated cost of $57,316.00. The main extension will serve ten (10) commercial customers now under construction. One-time connection fees are estimated at$15,120.00, Estimated annual revenue is $6,000.00. Water mains to be installed in Fall of 1991 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 102 August 27, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-8-2 and 91-8-3 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolutions 91-8-4 and 91-8-5 (Legal) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-8-6, 91-8-7, 91-8-8, respectively, (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolution 91-8-9 and 91-8-10 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following activities: Commissioner Evans Nominated to Serve on NUA Board. The National Utility Alliance (NUA), Incorporated has contacted Commissioner Evans seeking her participation on their Board of Directors. NUA was formed to promote minority participation in the public power industry, in the realms of employment and procurement opportunities. Commissioner Evans would receive BWL support for her participation in NUA, which involves attending two meetings annually, if she decides to participate. City Pursues Larger Equity Payments from the BWL. An August 24, 1991, article in the LANSING STATE JOURNAL unveiling Councilman Mark Canady's plan for Lansing was the subject of lengthy discussion. General Manager Pandy reported that the thrust of the plan includes the possibility of increasing annual payments from the BWL to the City by $2 million. Other ideas included in the plan cover cutting the City's expenses. A press release issued by the BWL pointed out that as a non-profit utility owned by the citizens of Lansing, any income earned above expenses goes back into the utility for maintenance and system improvements. Mr. Pandy summarized the following points: August 27, 1991 103 ■ During the past fiscal year, the BWL spent more than $29 million on capital improvements, which was more than the cash generated during the year. ■ In 1991, the BWL returned $4,478,115 to the City's general fund despite a 23 percent drop in the utility's net income. ■ The BWL's annual contribution represents the City's fourth largest source of revenue. ■ Electric customers are already facing consecutive six percent rate increases in 1992 and 1993. ■ A $2 million increase in payments to the City would increase the first year's rate increase by about 1.7 percent. ■ The BWL has held its expenses level for the last three years, but experienced a decline in net income of about $4.5 million over the last year. Without an increase in revenue, net income will disappear entirely within two years. ■ The BWL has the dual responsibility to its customer-owners to keep expenses and rates as low as possible. General Manager Pandy further reported that he will be having lunch with Councilman Canady on Wednesday, August 28th to discuss the Board's position on this issue. Joint Meeting Planned with City Councilmembers. Arrangements are being finalized for a joint dinner meeting with City Councilmembers in Mid-September. The meeting will be posted once a mutually acceptable date has been selected by the two governing bodies. BWL Financial Situation Fact Sheet Reviewed. A Fact Sheet, dated August 26, 1991, was handed out describing the BWL's financial situation for Fiscal Years 1991 as compared to 1990. Mr. Pandy detailed the following: ■ BWL's Cash Flow Statement ■ Capital expenditures ■ Return on Equity paid to the City ■ City bill for Water, Electric, and Steam service Contributions to Local Governments Reviewed. An article from the January- February, 1991 issue of PUBLIC POWER, entitled "Contributions to Local Governments" was handed out. General Manager Pandy directed attention to the East North Central region (representing Illinois, Indiana, Michigan, Ohio, Wisconsin). Of the 115 publicly owned utilities in that region, an average of 3.51 percent was returned to their local governments. The BWL's 3.5 percent of revenue from the sale of water, electricity and steam is in line with this region. Lengthy discussion was held relative to the powers of the Board as assigned in accordance with the provisions of the City Charter. In essence, the Charter empowers a separate Board to make the business decisions for the utilities. 104 August 27, 1991 End of the Year Cash Balance Reviewed. The BWL's cash on hand as of June 30, 1991 was reviewed as followed: Amount Time Frame Monthly Expenses 18,662,960 July 1991 Capital Projects 27,793,080 FY 1992/93 1989 Bond Redemption & Rebate 1,622,480 FY 1992 Belle River Rate Stabilization 16,907,727 FY 92/93 Coal Pile Buildup 2,912,227 Next Coal Contract Uninsured Losses 8,157,653 Self-Insurance ------------- TOTAL 76,056,127 The $76 million is earmarked for a specific purpose and is expected to be spent by the close of the next two fiscal years. The only area of uncertainty is capital projects. If there are no major cost overruns and if the BWL generates sufficient cash from operations, it will take longer to deplete the $27 million. The current forecast indicates this will happen by the end of Fiscal 1993. City of St. Johns Interested in BWL Electric Service. A letter, dated August 6, 1991, from Randy Humphrey, City Manager of the City of St. Johns, was handed out. The letter advised that the City of St. Johns is interested in having the BWL extend electric service to their community. Mr. Pandy's response letter, dated August 21, 1991, was handed out for review. He indicated the BWL is prevented from serving any retail customers in St. Johns by State statute. An alternative solution suggested was the formation of a municipal utility. The option of purchasing bulk power at wholesale prices from the Michigan Public Power Agency was also suggested. Fabulous Acres Neighborhood Association Concern Re: Street Lights. Residents of the Fabulous Acres Neighborhood Association (bounded by Baker, Cedar, Mt. Hope, and Washington), appeared at Monday night's City Council meeting complaining about the level of lighting in their neighborhood. The essence of their complaint was that the BWL changed out the mercury vapor lights to new sodium, high pressure sodium lights. The residents are now requesting an increase to the wattage. Mr. Pandy explained that the BWL replaced the 175 watt mercury vapor lights rated at 8,300 lumens with a new more efficient 100 watt high pressure sodium rated at 9,500 lumens. Although there are more lumens, the light is misdirected. The refractor glass in the light is designed to direct the light toward the road surface. Refractor lenses that will put light back into the yard area are on order for installation in the fall. Staff is following up on this matter to resolve any concerns. Lansing Township Attorney Requests Parity Rates for Township Users. A letter, dated August 16, 1991, was received from the Attorney for Lansing Township with respect to the 10 percent suburban surcharge on water rates. Mr. Pandy reported that his letter, dated June 22, 1990, to the Township Supervisor documented that the BWL had moved from 20 percent to 10 percent. A further move is planned to equalize rates between suburban and city customers the next time a water rate proceeding is initiated, anticipated in 1993 or 1994. City Council Resolution on Storm Restoration Efforts. The BWL Electric Utility line crews were commended by the Lansing City Council for responding to more than 1,700 calls on the storm of July 7th. Power was restored to all customers within 48 August 27, 1991 105 hours. General Manager Pandy read excerpts of the City Council Resolution, dated August 5, 1991. BWL Team. Receives Michigan Amateur Softball Association (MASA) Trophy. The BWL team won the MASA Industrial Local 2nd Place 1991 softball trophy affiliated with the Lansing Parks and Recreation. BWL Supports Svidden Lafant Death Syndrome. The BWL received a plaque in appreciation for supporting the 1991 Sudden Infant Death Syndrome (SIDS) Golf Tournament. The tournament was sponsored by the Childrens' Memorial Golf Tournament, North/Central/Southwestern, Michigan Chapter of the National SIDS Foundation. REMARKS BY BOARD COMMISSIONTERS Commissioner O'Leary inquired about the status of the Dye/Cedar Water Conditioning Plant refacing project, in particular the east face of the building. General Manager Pandy responded that further examination showed that the cracks on the east face of the building could be fixed with grout material, therefore, the east face will not be reskinned. The west face and the reservoirs have a new skin on them, where the more severe damage occurred. PUBLIC COMMENTS Lloyd Teets of 116 E. Elm Street spoke on the following matters: (1) He is concerned with the Board's Rules of Administrative Procedure; (2) he took exception to Commissioner Belen's remark after the July 23, 1991 meeting when he insinuated the Board was comprised of bureaucrats; (3) he stated he will prove that $19.84 is a sum collected by trickery and fraud; (4) he further stated that he is not afraid of the Board's rule; and (5) concluded his remarks by stating that he has no choice but to go to the City Council, Ingham County Prosecutor, Attorney General, news media, and the courts to voice his complaints. AO��JR10T1`+�IE1�T On motion of Commissioner Christian, the Board adjourned at 6:20 p.m. Mary E. S a, Secretary Piled: August 29, 1991 James D. Blair, City Clerk 91 MINUTES OF BOARD OF COMMSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, August 27, 1991 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, Christian, Evans, Hassler, 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 WILLIAMS That minutes of regular session of July 23, 1991 be approved as mailed. Adopted unanimously. PUBLIC COXD4ENTS 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. on".] T6. 92 August 27, 1991 CONEM=E REPORTS A letter from Chairman Hassler was read announcing committee assignments for fiscal year 1991-92 as follows: Executive Committee Phillip Hassler, Chair Jack Sebolt, Vice Chair Gerald Williams, Chair Pro Tem. Finance Committee Phillip Hassler, Chair Sister Mary Janice Belen, R.S.M. Ernest Christian Gerald Williams Alternates David O'Leary John S trolle Personnel Committee Jack Sebolt, Chair Eva Evans David O'Leary John Strolle Alternates Sister Mary Janice Belen, R.S.M. Gerald Williams BY COMMISSIONER HASSLER SECONDED BY COMMISSIONER BELEN That the Committee assignments be approved as presented. Adopted unanimously. CONIlb EE OF THE WHOLE REPORT August 27, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on August 13, 1991, to discuss the following items: 1. Electric revenue requirements to finance system improvements and rates of return from each customer class. 2. Cresap Diagnostic Evaluation of Support Services. 3. Insurance Recommendations. 4. Legal Matters (Freedom of Information Act and Open Meetings Act). August 27, 1991 93 Present were: Commissioners Belen, Evans, Hassler, O'Leary, and Williams. Absent were Commissioners Christian, Sebolt, and Strolle. REVENUE INCREASE FOR ELECTRIC UTILITY In April 1991, the Commissioners reviewed the results of an annual study on long-term revenue requirements for the three utilities. The forecast of revenue requirements indicated that overall electric rate levels were not adequate to meet revenue requirements. The Board directed staff to proceed with plans to implement electric revenue increases effective January 1, 1992. On August 13, 1991, the Commissioners reviewed the revenue requirements for the Electric Utility and discussed appropriate rate strategy. After due discussion and consensus on the Electric Rate Study timeline, the Committee of the Whole adopted the following motion and recommends Board approval: Electric Revenue Requirements (Resolution 91-8-1) RESOLVED, That electric rates be designed to implement two consecutive rate increases of 6.0% each year effective January 1, 1992 and 1993. With increased sales, revenues are expected to increase 7.9% in 1992 and 1993. Rates are to be reviewed annually at budget time to determine the need for additional rate increases. FURTHER RESOLVED, That revenue requirements by customer class be based on the attached 1991 Electric Rate Study model (Exhibit A), using fiscal year 1992-93 as the test period. INSURANCE RENEWAL STRATEGY The advantages of establishing a different property and casualty insurance renewal procedure were discussed. As background, the Board of Water and Light (BWL) has bid every year since 1986 as insurance policies expired. Prior to that, insurance bids were taken every three years because the BWL generally was able to obtain three-year policies. A survey of several similarly sized utilities and discussions with other Risk Managers and Public Entity purchasers of insurance indicated that three-year bidding would benefit the BWL. Following a review of arguments in favor of and against the new procedure, the Committee of the Whole concurred that a resolution authorizing a general practice of bidding every three years on insurance be submitted as part of the General Manager's recommendations on August 27, 1991. 94 August 27, 1991 CRESAP DIAGNOSTIC EVALUATION OF SUPPORT SERVICES At the July 23, 1991 Board meeting, the Commissioners received an executive summary on the scope, study approach, and conclusions of the diagnostic analysis of the BWL and its organizational structure. The study was conducted by the consulting firm of Cresap, a Towers Perrin Company. The study was referred to the Committee of the Whole meeting for further discussion at their next meeting. On August 13, 1991, the Committee of the Whole received an in depth presentation on the findings and recommendations of the study. The background on the consultant's recommendations for the following six categories were detailed, with staff responses discussed at length: 1. Inappropriate Organization Structures ■ Reduce number of direct reports to the General Manager ■ Broaden spans of control throughout the organization ■ Eliminate certain organizational anomalies in Consumer Services 2. Gaps Between Line and Staff Units ■ Combine and standardize the approach to storeroom functions in line and staff organizations ■ Develop an information systems strategy to eliminate unnecessary fragmentation of activities among line and staff organizations 3. Outmoded or Non-existent Computer Systems ■ Automate the meter reading and billing process for steam customers ■ Monitor and control telephone operations more effectively ■ Undertake an intensive effort to computerize several high manual accounting processes ■ Develop a centralized, companywide data base ■ Accelerate aggressive effort to improve the quality, timeliness, and responsiveness of Information Systems activities 4. Incomplete or Inefficient Processes ■ More fully develop the strategic planning process ■ Develop a formal priority system for capital projects ■ Coordinate training and development more effectively ■ Shorten the meter-reading-to-billing lag for water and electricity customers ■ Establish mechanisms to ensure that benefits promised for new information systems are achieved ■ Streamline and improve administrative processes for Project Engineering 5. Excessive Service Levels ■ Eliminate the free light bulb program ■ Implement a bimonthly meter reading schedule ■ Establish controls for personal computer procurement, distribution, and disposal ■ Establish controls for the distribution of internal publications 6. Reluctance to Contract Out Work ■ Contract out Environmental Engineering laboratory functions ■ Concentrate on performing routine engineering functions in-house and provide project management for larger projects that are contracted out ■ Concentrate on contracting out or buying off-the-shelf programs rather than have Information Systems create systems in-house August 27, 1991 95 Lengthy discussion was held regarding recommendations which were already implemented prior to the completion of the study and those that are in process. The Commissioners agreed with staff's approach in addressing the consultant's recommendations, expected to result hi organizational savings ranging from $700,000 to $1.4 million per year. An update on the implementation of the various recommendations will be presented periodically. LEGAL MATTERS Staff Attorney Larry Wilhite presented an overview of the Michigan Freedom of Information Act and Open Meetings Act requirements. This briefing was held solely for informational purposes. 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, including Resolution 91-8-1, regarding Electric Revenue Requirements be approved as submitted. Adopted unanimously. General Manager Pandy remarked that input has been invited from the Industrial Council of the Lansing Regional Chamber of Commerce. The Industrial Council has asked the Board to consider spreading the rate increases over 3 years, limiting the increases to 4- 4.5% per year. Other groups of customers, such as the Neighborhood Council, League of Women Voters, the Labor Council and public officials will receive a letter asking if they care to provide input on the ratemaking process. (EXHIBI`r A) 1991 ELECTRIC RATE STUDY TEST PERIOD 1992/1993 FIRST RATE INCREASE $1000 Retail Revenue Expects Expected Revenue Retail Proposed Proposed Proposed Required Revenue Requirement Net Rate Of Index Of 7.9% Revenue Revenue Rate Of Index Of Retail Rate Base w/o Incr 0%Return Income Return Return Increase Adjust Increase Return Return Revenue Residential 1 41,557 25,864 24,906 957 2.30% 1.32 27,898 (303) 6.7% 6.46% 1.00 27,595 AU Electric 2 2,830 1,600 1,554 46 1.62% 0.93 1,726 (22) 6.5% 5.30% 0.82 1,704 Off-Peak Water Heating 8 11 9 10 (1) -6.22% (3.57) 10 1 15.5% 6.82% 1.06 11 Senior Citizen 21 1,072 571 683 (112) -10.42% (5.98) 616 40 14.5% -2.72% (0.42) 656 Small Secondary 3 28,435 16,117 15,241 876 3.08% 1.77 17,384 (144) 7.0% 6.96% 1.08 17,240 Large Secondary 4 24,005 15,322 14,917 405 1.69% 0.97 16,527 90 8.4% 6.93% 1.07 16,617 Large Primary 5 67,520 45,860 45,278 582 0.86% 0.49 49,468 450 8.8% 6.70% 1.04 49,918 Municipal Pumping 7 1,727 911 921 (11) -0.62% (0.35) 982 55 13.8% 6.45% 1.00 1,037 Space Cond/Water Heating 12 4,102 1,876 1,893 (17) -0.42% (0.24) 2,023 88 12.5% 5.15% 0.80 2,111 Protective Lighting 9 1,485 600 519 80 5.42% 3.11 647 (32) 2.7% 6.47% 1.00 615 St/Lighting/Signals 11/S __ 9,753 2,996 2,622 374 3.83% 2.20 _ 3,231 (223) _ 0.4% 3.96% 0.61 3,008 Grand Total 182,497 111,725 __108,545 3,180 1.74% 1.00 120,512 _ 0_ 7.9% 6.45% __1_00 120,512 a G . QQ G N M v W N F� Prepared By:Paul Wierzbfckl RS1991-4.wgl 12-Aug-91 97 August 27, 1991 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: HUMAN RESOURCES Res.No. 91-8-2 That Barbara Scott, a Clerk-Typist Bookkeeper for Customer Accounts, be awarded a total of$64.09 for suggestion proposal number 1991-093,to print employee information on both parts of the new bills to aid in payroll deduction. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $256.35 in the fast year. -------------------- Res. No. 91-8-3 That Greg King, an Electric System Operator C for BESOC, be awarded a total of $122.75 for suggestion proposal number 1991-140, to institute a written procedure to allow time for schedule corrections to avoid buying expensive Belle River back-up energy. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of $491.00 in the first year. -------------------- LEGAL Res. No. 91-8-4 Adopt the following strategy for purchasing property and casualty insurance coverages: In 1992 and thereafter, a property and casualty insurance coverage would be acquired by taking bids as a routine practice every three years. In the interim, insurance coverage would be negotiated with the incumbents. If necessary, the BWL could take new bids, or even negotiate with others, on insurance coverage for adverse premium changes, adverse coverage changes, failure to provide terms and conditions in a timely manner, or a desire to change a risk financing approach. -------------------- 98 August 27, 1991 LEGAL (Continued) (Res. No. 91-8-4) The BWL has bid every year since 1986 as policies have expired. Prior to that the insurance bids were taken generally every three years because the BWL was able to obtain three year policies. Liability policies have not been consistently available for greater than one year periods. The general approach of other public entities and agencies has been to negotiate for a period after bidding. Among the arguments favoring this approach are that the annual bidding process discourages some underwriters from bidding knowing that there is a good chance that the business will be gone in one year or that it causes them to provide higher rates knowing that it will likely be on the risk only for that one year period. A three year "commitment" would encourage the underwriters'to sharpen their pencils because one bad year of losses might be made up with two good years. The BWL could still go out for bids at any time, whether inspired by an unjustified rate increase,failure to communicate renewal terms and conditions in a timely manner, a BWL desire to change the risk financing approach, or any other reason. The objective of this strategy is to provide the best value to the Board of Water and Light. -------------------- Res. No. 91-8-5 Purchase the following insurance coverages: 1. From the Lyman and Sheets Agency,representing the Gulf Insurance Corn any, Commercial General Liability Insurance for an estimated annual premium of$256,904 for the one year period from September 30, 1991 to September 30, 1992. 2. From the Lansing Insurance Agency, representing the New Hampshire Insurance Company, Auto Liability, Comprehensive, and Collision Insurance for an estimated annual premium of$103,401 for the one year period from September 30, 1991 to September 30, 1992. 3. From the Lansing Insurance Agency,representing the National Union Fire Insurance Company of Pittsburgh,PA, $10 million Excess Liability Insurance for a flat annual premium of$204,500 for the one year period from September 30, 1991 to September 30, 1992. 4. From the Lansing Insurance Agency, representing the Lexington Insurance Company, $5 million Excess Liability Insurance for a flat annual premium of$55,080 including premium tax for the one year period from September 30, 1991 to September 30, 1992. 5. From Voss Insurance Services, Inc., representing The Aetna Casualty and Surety Company, Specific Excess Workers' Compensation Insurance for the one year period from September 1, 1991 to September 1, 1992 for an annual deposit premium of$42,089 subject to adjustment. The limit of liability is $20 million with a specific retention of $400,000. .ugust 27, 1991 99 LEGAL (Continued) (Res. No. 91-8-5) 6. From Voss Insurance Services,Inc.,representing the Hartford Fire Insurance Company, Crime Insurance and Public Employees Faithful Peformance Bonding for annual premium of$2,843 for the three year period from September 30, 1991 to September 30, 1994. -------------------- PENSION Res.No. 91-8-6 That Douglas L. Barnard, Superintendent of System Operations, be placed on a pension of$2,996.72 per month effective August 1, 1991. He has selected Option III with the provision that after his death,if his wife,Patricia A. Barnard, survives him she will receive 30%or$899.02 per month for the rest of her life as provided under Option III. -------------------- Mr. Barnard has worked for the BWL for 34.55 years and is 60 years of age. -------------------- Res. No. 91-8-7 That Dowe S. Fauley, Instrument Repairman in Project Engineering, be placed on an early reduced,vested pension of$95.55 per month effective July 1, 1991. He has selected Option V with the provision that after his death, if his wife, Melvina J. Fauley, survives him she will receive $47.78 per month for the rest of her life as provided under Option V. If his wife predeceases him,the pension amount of$95.55 will revert back to the early reduced pension amount of $107.28 for the rest of his life. -------------------- Mr. Fauley has worked for the BWL for 15.20 years and is 60 years of age. -------------------- Res.No. 91-8-8 That Raymond T. Reneau, Equipment Mechanic Helper in Fleet Services,be placed on a disability pension of$383.48 per month effective July 1, 1991. He has selected a straight disability pension with Workers' Comp offset. -------------------- Mr. Reneau has worked for the BWL for 10.77 years and is 57 years of age. -------------------- 100 August 27, 1991 WATER Res. No. 91-8-9 That the Board agree to serve water to proposed Water District No. 72, Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 7, 1991, 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. 72 established by Township resolution on May 7, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a$261,350.15 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 LXXII) covering the furnishing of a potable water supply in Water District No. 72. 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$261,350.15 from the Township, the project be approved for installation, and that the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXII) to furnish a potable water supply in Water District No. 72. The geographical area of Water District No. 72 is as follows: Beginning at existing 12-inch water mains end on S. Washington Avenue then southward 940 feet to Holt Road; thence eastward on Holt Road 2,645 feet to Gunn Road; thence southward on Gunn Road 4,670 feet; thence eastward 2,250 feet to Glenmoor Manor Subdivision to tie loop together. To provide a potable water supply within the proposed new district requires the installation of 10,505 feet of water main and fire hydrants at an estimated cost of $338,614.15. The main extension will serve forty-one (41) residential customers. One-time connection fees will amount to$22,960.00. Estimated annual revenue is $12,300.00. Water mains to be installed in summer and fall of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- August 27, 1991 101 WATER (Continued) Res. No. 91-8-10 That the Board agree to serve water to proposed Water District No. 78, Delhi Township, as requested by resolution of the Delhi Charter Township Board on August 20, 1991, 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. 78 established by Township resolution on August 20, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a$52,193.96 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 LXXVIII) covering the furnishing of a potable water supply in Water District No. 78. 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 $52,193.96 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXVIII) to furnish a potable water supply in Water District No. 78. The geographical area of Water District No. 78 is a follows: Lot 1 - 10 of Five Oaks Commerce Park Delhi Township, Ingham County To provide a potable water supply within the proposed new district requires the installation of 2,206 feet of water mains at an estimated cost of$57,316.00. The main extension will serve ten (10) commercial customers now under construction. One-time connection fees are estimated at$15,120.00. Estimated annual revenue is $6,000.00. Water mains to be installed in Fall of 1991 following the receipt of the Township's non- refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfull submitted, cy a"_JJY Joseph Pandy,Jr. General Manager 102 August 27, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-8-2 and 91-8-3 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolutions 91-8-4 and 91-8-5 (Legal) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-8-6, 91-8-7, 91-8-8, respectively, (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolution 91-8-9 and 91-8-10 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following activities: Commissioner Evans Nominated to Serve on NUA Board. The National Utility Alliance (NUA), Incorporated has contacted Commissioner Evans seeking her participation on their Board of Directors. NUA was formed to promote minority participation in the public power industry, in the realms of employment and procurement opportunities. Commissioner Evans would receive BWL support for her participation in NUA, which involves attending two meetings annually, if she decides to participate. City Pursues Larger Equity Payments from the BWL. An August 24, 1991, article in the LANSING STATE JOURNAL unveiling Councilman Mark Canady's plan for Lansing was the subject of lengthy discussion. General Manager Pandy reported that the thrust of the plan includes the possibility of increasing annual payments from the BWL to the City by $2 million. Other ideas included in the plan cover cutting the City's expenses. A press release issued by the BWL pointed out that as a non-profit utility owned by the citizens of Lansing, any income earned above expenses goes back into the utility for maintenance and system improvements. Mr. Pandy summarized the following points: IU3 ugust 27, 1991 ■ During the past fiscal year, the BWL spent more than $29 million on capital improvements, which was more than the cash generated during the year. ■ In 1991, the BWL returned $4,478,115 to the City's general fund despite a 23 percent drop in the utility's net income. ■ The BWL's annual contribution represents the City's fourth largest source of revenue. ■ Electric customers are already facing consecutive six percent rate increases in 1992 and 1993. ■ A $2 million increase in payments to the City would increase the first year's rate increase by about 1.7 percent. ■ The BWL has held its expenses level for the last three years, but experienced a decline in net income of about $4.5 million over the last year. Without an increase in revenue, net income will disappear entirely within two years. ■ The BWL has the dual responsibility to its customer-owners to keep expenses and rates as low as possible. General Manager Pandy further reported that he will be having lunch with Councilman Canady on Wednesday, August 28th to discuss the Board's position on this issue. Joint Meeting Planned with City Councilmembers. Arrangements are being finalized for a joint dinner meeting with City Councilmembers in Mid-September. The meeting will be posted once a mutually acceptable date has been selected by the two governing bodies. BWL Financial Situation Fact Sheet Reviewed. A Fact Sheet, dated August 26, 1991, was handed out describing the BWL's financial situation for Fiscal Years 1991 as compared to 1990. Mr. Pandy detailed the following: ■ BWL's Cash Flow Statement ■ Capital expenditures ■ Return on Equity paid to the City ■ City bill for Water, Electric, and Steam service Contributions to Local Governments Reviewed. An article from the January- February, 1991 issue of PUBLIC POWER, entitled "Contributions to Local Governments" was handed out. General Manager Pandy directed attention to the East North Central region (representing Illinois, Indiana, Michigan, Ohio, Wisconsin). Of the 115 publicly owned utilities in that region, an average of 3.51 percent was returned to their local governments. The BWL's 3.5 percent of revenue from the sale of water, electricity and steam is in line with this region. Lengthy discussion was held relative to the powers of the Board as assigned in accordance with the provisions of the City Charter. In essence, the Charter empowers a separate Board to make the business decisions for the utilities. 104 August 27, 1991 End A the Year Cash Balance Reviewed. The BWL's cash on hand as of June 30, 1991 was reviewed as followed; Amount Time Frame Monthly Expenses 18,662,960 July 1991 Capital Projects 27,793,080 FY 1992/93 1989 Bond Redemption & Rebate 1,622,480 FY 1992 Belle River Rate Stabilization 16,907,727 FY 92/93 Coal Pile Buildup 2,912,227 Next Coal Contract Uninsured Losses 8,157,653 Self-Insurance TOTAL 76,056,127 The $76 million is earmarked for a specific purpose and is expected to be spent by the close of the next two fiscal years. The only area of uncertainty is capital projects. If there are no major cost overruns and if the BWL generates sufficient cash from operations, it will take longer to deplete the $27 million. The current forecast indicates this will happen by the end of Fiscal 1993. City of St. Johns Interested in BWL Electric Service. A letter, dated August 6, 1991, from Randy Humphrey, City Manager of the City of St. Johns, was handed out. The letter advised that the City of St. Johns is interested in having the BWL extend electric service to their community. Mr. Pandy's response letter, dated August 21, 1991, was handed out for review. He indicated the BWL is prevented from serving any retail customers in St. Johns by State statute. An alternative solution suggested was the formation of a municipal utility. The option of purchasing bulk power at wholesale prices from the Michigan Public Power Agency was also suggested. Fabulous Acres Neighborhood Association Concern Re: Street Lights. Residents of the Fabulous Acres Neighborhood Association (bounded by Baker, Cedar, Mt. Hope, and Washington), appeared at Monday night's City Council meeting complaining about the level of lighting in their neighborhood. The essence of their complaint was that the BWL changed out the mercury vapor lights to new sodium, high pressure sodium lights. The residents are now requesting an increase to the wattage. Mr. Pandy explained that the BWL replaced the 175 watt mercury vapor lights rated at 8,300 lumens with a new more efficient 100 watt high pressure sodium rated at 9,500 lumens. Although there are more lumens, the light is misdirected. The refractor glass in the light is designed to direct the light toward the road surface. Refractor lenses that will put light back into the yard area are on order for installation in the fall. Staff is following up on this matter to resolve any concerns. Lansing Township Attorney Requests Parity Rates for Township Users. A letter, dated August 16, 1991, was received from the Attorney for Lansing Township with respect to the 10 percent suburban surcharge on water rates. Mr. Pandy reported that his letter, dated June 22, 1990, to the Township Supervisor documented that the BWL had moved from 20 percent to 10 percent. A further move is planned to equalize rates between suburban and city customers the next time a water rate proceeding is initiated, anticipated in 1993 or 1994. City Council Resolution on Storm Restoration Efforts. The BWL Electric Utility line crews were commended by the Lansing City Council for responding to more than 1,700 calls on the storm of July 7th. Power was restored to all customers within 48 kugust 27, 1991 105 hours. General Manager Pandy read excerpts of the City Council Resolution, dated August 5, 1991. BWL Team Receives Mich Zan Amateur Softball Association (MASA) Trophy. The BWL team won the MASA Industrial Local 2nd Place 1991 softball trophy affiliated with the Lansing Parks and Recreation. BWL Supports Sudden Infant Death Syndrome. The BWL received a plaque in appreciation for supporting the 1991 Sudden Infant Death Syndrome (SIDS) Golf Tournament. The tournament was sponsored by the Childrens' Memorial Golf Tournament, North/Central/Southwestern, Michigan Chapter of the National SIDS Foundation. REMARKS BY BOARD COMMISSIONERS Commissioner O'Leary inquired about the status of the Dye/Cedar Water Conditioning Plant refacing project, in particular the east face of the building. General Manager Pandy responded that further examination showed that the cracks on the east face of the building could be fixed with grout material, therefore, the east face will not be reskinned. The west face and the reservoirs have a new skin on them, where the more severe damage occurred. PUBLIC COMMENTS Lloyd Teets of 116 E. Elm Street spoke on the following matters: (1) He is concerned with the Board's Rules of Administrative Procedure; (2) he took exception to Commissioner Belen's remark after the July 23, 1991 meeting when he insinuated the Board was comprised of bureaucrats; (3) he stated he will prove that $19.84 is a sum collected by trickery and fraud; (4) he further stated that he is not afraid of the Board's rule; and (5) concluded his remarks by stating that he has no choice but to go to the City Council, Ingham County Prosecutor, Attorney General, news media, and the courts to voice his complaints. ADTO On motion of Commissioner Christian, the Board adjourned at 6:20 p.m. A,4 . 4vtt� Mary E. S a, Secretary Filed: August 29, 1991 James D. Blair, City Clerk 76 .. July 23, 1991 MINUTES OF BOARD OF COMMIISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, July 23, 1991 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, Christian, Evans, O'Leary, Sebolt, Strolle, and Williams - 7 Absent: Commissioner Hassler -1 A quorum was present. General Manager Pandy, Secretary Sova and Staff members were present. The Invocation was given by Vice Chairman Sebolt. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN That minutes of regular session of June 18, 1991 be approved as mailed. Adopted unanimously. ANNUAL ORGANIZATION Vice Chairman Sebolt announced that in accordance with provisions of the City Charter and the Rules of Administrative Procedure of the Board of Water and Light, 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, and asked the Secretary to take the Chair. Thereupon, the Secretary asked the Chairman of the Nominating Committee, Commissioner Strolle, to present the Committee's report. T.ss J C:I 'i1U 11 July 23, 1991 77 NOMINATING COMMITTEE REPORT July 23, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Nominating Committee met on June 27, 1991. Present were Committee Members Strode (Chair), Belen and O'Leary. The Committee wishes to report that it was assigned the duty of establishing the process of nominating officers of the Board of Commissioners for Fiscal Year 1991-92. The following structure was agreed upon: 1. The Commissioners would receive a nomination form to encourage their input in the nominations process. Responses would be returned directly to the Nominating Committee Chairman. 2. The slate of officer nominees would be published and presented at the Organizational Meeting on July 23, 1991. Nominations from the floor for each office would be called at the meeting. 3. The slate of staff appointments for Fiscal 1991-92 would be presented for action at the meeting, and nominations from the floor for each staff position would be called at the meeting. Respectfully submitted, John Strolle, Chairman Nominating Committee By the Nominating Committee: Resolution 91-7-10 ELECTION OF OFFICERS AND STAFF APPOINTMENTS RESOLVED, That the following slate of officers be approved for the ensuing fiscal year, or, until a successor is duly elected, whichever last occurs: Chairman of the Board: Phillip E. Hassler Vice Chairman of the Board: Jack R. Sebolt Chairman Pro Tem: Gerald W. Williams FURTHER RESOLVED, That the following slate of staff appointments be adopted for the ensuing fiscal year, or, until a successor is appointed, whichever last occurs: Director and General Manager: Joseph Pandy, Jr. Internal Auditor: Kellie L. Willson Corporate Secretary: Mary E. Sova 78 July 23, 1991 The Secretary asked for nominations from the Board for each office. Hearing none, nominations for officers were closed. The Secretary asked for nominations from the Board for each of the staff appointments. Hearing none, nominations for staff appointments were closed. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS That the report of the Nominating Committee be received and their recommendation be approved as presented. Adopted unanimously. Commissioner Sebolt assumed the role of Vice Chairman of the Board. PUBLIC C-OMMIENTS VICE CHAIRMAN SEBOLT 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 of 116 E. Elm Street, Lansing, criticized the manner in which the election of officers and the appointment of staff was conducted. He stated that the public was not given an opportunity for input in the process. CONEWUNICATIONS AND PETITIONS A letter was received from Lloyd Teets expressing his objection to the Board of Commissioners holding a Board Retreat in Lewiston, Michigan. Received and placed on file. REPORT ON BOARD OF CONSUSSIONERS' RETREAT July 23, 1991 The Board of Commissioners wishes to report that they held a retreat on June 20-22, 1991, in Lewiston, Michigan, to review policy issues and to define and assess matters potentially affecting the mission of the Board of Light. Present were Commissioners Belen, Christian, Evans, Hassler, O'Leary, Sebolt, Strolle, and Williams. The Commissioners received background information on issues of general concern. Input was made on the Board's fundamental philosophy, mission, objectives and policies for meeting the current and future energy needs of the community. The Commissioners provided feedback to the General Manager regarding matters affecting the Board's mission. The Board took no action during this session. Minutes of the retreat are on file in the Secretary's Office. Topics discussed included the following: July 23, 1991 79 1. The Board of Commissioners' Self Evaluation 2. City of Lansing Issues 3. The Board of Water and Light and the Community 4. Issues for the 1990's 5. Belle River Overview and Decision Basis 6. Environmental Issues Respectfully submitted, Gerald W. Williams, Chairman Pro Tem BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT That the Report regarding the Board Retreat be received as presented. Adopted unanimously. 80 July 23, 1991 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. 91-7-1 WHEREAS, Congress is currently considering amendments to the Public Utility Holding Company Act which would allow electric utilities to establish deregulated generating companies that would be exempt from the Holding Company Act, and WHEREAS,the experience in Michigan with Consumers Power Company and its affiliates has shown that such amendments are not in the public interest and will drive up electric rates unless they prevent self-dealing between utilities and their deregulated affiliates and grant all utilities access to the transmission system on the same terms which utilities grant themselves and their affiliates, and WHEREAS, in the U.S. Senate the Banking, Housing and Urban Affairs Committee, of which Senator Donald Riegle is Chair, has jurisdiction over Holding Company Act matters, NOW, THEREFORE, BE IT RESOLVED that the BWL: 1. Asks Senator Riegle to immediately have his Committee assert jurisdiction over such amendments and hold hearings on them, and 2. Opposes such amendments to the Holding Company Act unless they prevent transactions between utilities and their deregulated affiliates and grant all utilities access to the transmission system on the same terms which utilities grant themselves and their affiliates. -------------------- Res. No. 91-7-2 Approve the recommendation of the Share the Success Management Committee (STSMC) for Performance Measures for the FY 1991-92 Share the Success Plan (STS) and that employees will be eligible to receive a Performance Bonus of 0-5% as determined by the final points earned for FY 1992. -------------------- If all goals are reached, BWL will realize a cost savings of$3,768,142 and employees will earn up to 500 points on a 5.0%STS bonus equal to $1,750,000. The net savings to BWL will be $2,018,142. (See report attached from Employees Performance Measures Committee dated June 17, 1991). -------------------- July 23, 1991 81 PENSION Res. No. 91-7-3 That Jack D. Speight, Distribution Maintenance Installation Supervisor, Water Distribution,be placed on a monthly pension of$1,596.24 per month effective July 2, 1991. He has selected Option VI with the provision that after his death, if his wife, Ruth A. Speight, survives him she will receive 80%or$1,276.99 per month for the rest of her life. If his wife predeceases him,the pension amount of$1,596.24 will revert back to the regular pension amount of$1,958.75 for the rest of his life. Mr. Speight has worked for the BWL,for 31.28 years and is 60 years of age. -------------------- TREASURERICONTROL LER Res. No. 91-7-4 Authorize the sale of 17 Board-owned vehicles, which have been replaced,through competitive bids. The vehicles to be sold are BWL.#10,42,47, 81, 107, 116, 126, 301, 304, 313, 621, 724, 746, 749, 762, 784, and 804. --------------------- An itemized list of the obsolete vehicles to be sold is on file with the Corporate Secretary. -------------------- WATER Res. No. 91-7-5 That the Board agree to serve water to proposed Water District No. 70, Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 7, 1991, 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. 70 established by Township resolution on May 7, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a$47,161.03 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. 82 July 23, 1991 WATER(Continued) (Res. No. 91-7-5) 3. The Board and the Township are to enter into a written agreement (Supplement LXX) covering the furnishing of a potable water supply in Water District No. 70. 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 $47,161.03 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXX) to furnish a potable water supply in Water District No. 70. The geographical area of Water District No. 70 is as follows: Fine Tree Acres Subdivision Specifically Lots 4, 5, 16 thru 23,41 thru 49 and two homes of "Outlot B". To provide a potable water supply within the proposed new district requires the installation of 2,218 feet of water main and fire hydrants at an estimated cost of $67,396.83. The main extension will serve twenty-one (21) residential customers. One-time connection fees will amount to$11,760.00. Estimated annual revenue is $6,300.00. Water mains to be installed in the Summer/Fall of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Res. No. 91-7-6 That the Board agree to serve water to proposed Water District No. 73, Delhi Township, as requested by resolution of the Delhi Charter Township Board on June 4, 1991 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. 73 established by Township resolution on June 4, 1991 and will provide a potable water supply to said district. 2. The Township will be required to make a$50,595.00 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. fuly 23, 1991 83 WATER (Continued) (Res. No. 91-7-6) 3. The Board and the Township are to enter into a written agreement (Supplement LXXIII) covering the furnishing of a potable water supply in Water District No. 73. 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$50,595.00 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXIII) to furnish a potable water supply in Water District No. 73. The geographical area of Water District No. 73 is as follows: Cedar Park Woods Condominiums, bits 1 thru 71. To provide a potable water supply within the proposed new district requires the installation of 1,950 feet of water main and fire hydrant at an estimated cost of $50,595.00. The main extension will serve seventy-one (71) residential customers. One-time connection fees will amount to$39,760.00. Estimated annual revenue is$21,300.00. Water mains to be installed in Summer/Fall of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Res. No. 91-7-7 That the Board agree to serve water to proposed Water District No. 76, Delhi Township, as requested by resolution of the Delhi Charter Township Board on July 2, 1991, 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. 76 established by Township resolution on July 2, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a $5,742.65 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. 84 July 23, 1991 WATER(Continued) (Res. No. 91-7-7) 3. The Board and the Township are to enter into a written agreement (Supplement LXXVI) covering the furnishing of a potable water supply in Water District No. 76. 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$5,742.65 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXVI) to furnish a potable water supply in Water District No. 76. The geographical area of Water District No. 76 is as follows: Aurelius Road beginning approximately 550 ft. s/o Davlind Drive thence 215 ft. southward. Aurelius Road Sewer Pump Station "D", Delhi Township. To provide a potable water supply within the proposed new district requires the installation of 215 feet of water main and fire hydrant at an estimated cost of$5,742.65. The main extension will serve Aurelius Road Pump Station "D" in Delhi Township now under construction. One-time connection fee will amount to$1,064.00. Estimated annual revenue is $300.00. Water mains to be installed in Summer/Fall 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. --------------------- Res. No. 91-7-8 That the Board agrees to serve water to proposed Water District No. 77, Delhi Township, as requested by resolution of the Delhi Charter Township Board on July 2, 1991, 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. 77 established by Township resolution on July 2, 1991, and will provide a potable water supply to said district. 2. The Township will be required to make a$47,793.20 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. July 23, 1991 85 WATER (Continued) (Res. No. 91-7-8) 3. The Board and the Township are to enter into a written agreement (Supplement L,XXVII) covering the furnishing of a potable water supply in Water District No. 77. 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$47,793.20 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement L,XXVII) to furnish a potable water supply in Water District No. 77. The geographical area of Water District No. 77 is as follows: Ivywood No. 2 Subdivision Phase 1, Lots 44-72. To provide a potable water supply within the proposed new district requires the installation of 2,020 feet of water plain and fire hydrants at an estimated cost of $47,793.20. The main extension will serve twenty-eight (28) residential customers. One-time connection fees will amount to$15,680.00. Estimated annual revenue is $8,400.00. Water mains to be installed in Summer/Fall of 1991 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 86 July 23, 1991 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-7-1 and 91-7-2, respectively, (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-7-3 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-7-4 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-7-5, 91-7-6, 91-7-7, and 91-7-8, respectively, of the General Manager's Recommendations be approved. Adopted unanimously. RESOLUTIONS General Manager Pandy presented proposed Resolution 91-7-9 for Board consideration, relative to the Michigan Municipal Electric Association's (MMEA) Legal Defense Fund. As reported at a previous meeting, the initial round of litigation with Consumers Power Company (CPCo) on the BWL's right to serve in Watertown Township was upheld in favor of the BWL. CPCO is appealing the trial court's ruling. The focus of CPCo's argument deals with the BWL's line extension to the Meijer's Warehouse on W. Grand River Avenue. CPCo claims that Watertown is not a contiguous township. The BWL would like to request MMEA's participation through its legal defense fund to participate in the appellate proceeding as an amicus curiae. July 23, 1991 87 BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS Resolution 91-7-9 RESOLUTION TO REOUEST MAM,A ASSISTANCE ON LITIGATION WITH CONSIJW—RS POWER CONWANY WHEREAS, The Michigan Municipal Electric Association (1V MEA) has established a Legal Defense Fund to provide assistance on legal matters of significant importance to municipal electric utilities; WHEREAS, the Board of Water and Light (BV;L)y has contributed to the Fund, in an effort to establish legal principles favorable to it and other municipal utilities; V,THEREAS, the BVTL is currently involved in litigation with Consumers Power Company ever the right of a municipal electric utility to serve customers outside of its corporate boundaries; WHEREAS, successful resolution of this case in the Michigan Court of Appeals will uphold legal principles of significant importance to municipal electric utilities. NOW THEREFORE, the BWL requests 1,,AMEA to assist it, through its Legal Defense Fund, by participating in the appellate proceeding as amicus curiae. Adopted unanimously. NEW BUSRI ._,S3 Cresap Study Results General Manager Pandy introduced Patrick Nevins, principal, of the management consulting firm of Cresap, a'.Powers Perrin Company. Pursuant to the Board's authorization in April 1991, Cresap was retained to conduct a diagnostic analysis of the BWL and its organizational structure. Mr. Nevins presented an executive summary on the findings of their six-weep study. He gave an overview on the following: I. Purpose of the study was to: A. Conduct an objective diagnostic evaluation of the systems, operations, and management of the support services of the BWL. B. Highlight significant opportunities to improve organization structure, management processes, operations, policies, procedures and practices. II. Study approach involved: A. Interviews with 30 top management employees. B. Surveys of users of support services. C. Suggestion surveys from suppliers of support services. III. Recommendations highlighted: A. Important strengths at BWL. B. Opportunities for improvement involving six categories. C. Recommendations could result in a reduction of 16 to 31 positions and an annual savings of$700,000 to $1.4 million. gg July 23, 1991 Following discussion, the Cresap study was referred to the Committee of the Whole meeting scheduled to be held August 13. The following issues relative to the study recommendations are to be discussed: (1) goal to be accomplished, (2) the BWL's culture, and (3) implied organizational changes. General Manager Pandy reported that he will be meeting with his executive staff on July 29 to receive their input on the study's recommendations. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following activities: BWL Stgrm Restoration. Ten percent of the BWL's 87,000 electric customers lost electric service after a violent line of storms that swept through the state on July 7. The task of restoring service was completed about 48 hours after the storm hit. BWL line crews were commended for their exemplary job of responding to a total of 1,700 calls from customers reporting outages or downed wires. In comparison, Consumers Power Co. (CPCo) restored power to its last customer six days after the storm hit. Mr. Pandy noted that smaller utilities in the area weathered the storm better. The Michigan Public Service Commission will conduct a series of hearings beginning July 29 through August S to solicit public comments on Detroit Edison Company's (DECo) and CPCo's response to electric outages caused by the recent storms. Mr. Pandy also reported that a lightning storm hit the Lansing area the morning of July 22; outages were restored within a couple of hours. Safety Awareness, The BWL Safety Update Newsletter for the period ending May 31, 1991, was reviewed. Comparative numbers indicate Lost Time, Restrictive, and Auto accidents are down this year versus last year. Medical accidents are up, however, as compared to last year. Flowable Fill Incident. General Manager Pandy reported that Councilmember Alfreda Schmidt expressed concern at the July 22 City Council meeting over the improper cleanup of flyash on Shubel Street. Mr. Pandy noted that Michigan Ash Sales Company performed the work as a contractor for the BWL. They used flowable fill on a water construction project, and left flyash on the street causing residents to track the flowable fill into their garages. After receiving complaints from the residents, a BWL crew was dispatched on Saturday, July 20, to clean up the area. Mr. Pandy said that a strong letter has already been sent to Michigan Ash Sales with other letters to follow. Staff is investigating the possibility of recovering cleanup costs. Mr. Pandy expressed his regrets over the unfortunate incident, particularly any inconveniences caused to residents of Shubel Street and the apparent negative appearance to the BWL. District Cooling System. General Manager Pandy reported that City Council passed a resolution on July 22 endorsing the continued efforts by the BWL to provide chilled water service to downtown buildings through a District Cooling System (DCS). The Council has asked that they be kept apprised of the BWL's progress in obtaining a sufficient number of signed chilled water contracts to make the implementation of a DCS advantageous to the BWL and its ratepayers. July .23., .1991 89 Joint Meeting with City Council. As suggested by the Commissioners at their recent retreat, a joint meeting with City Councilmembers is being planned for September or October to maintain good communication between the Board and City Council. B-O-C Considers Off-Peak Cooling Loads. B-O-C Lansing Automotive Division has expressed an interest in off-peak cooling. B-O-C is replacing their existing Administration Building air conditioning equipment. The current trend towards reduction of CFC type refrigerants requires many of B-O-Cs air conditioning chillers to be replaced with newer technology equipment. B-O-C is interested in exploring chilled storage technology and the BWL's proposed chilled water system. Delhi Township Water District Controversy. General Manager Pandy reported that a resident of the newly established Delhi Township Water District No. 71 (Pine-Dell Subdivision) is not in favor of this decision. The resident and possibly several others, assert that the BWL had a conflict of interest when it signed a petition to undertake that water district. Mr. Pandy noted that Delhi Township circulated a petition, which is their standard practice when proposing a new water district. The BWL was the last to sign the petition, by virtue that it owns property within the district, resulting in a 50.54% vote of the record property owners in favor of city water. In essence, residents with bad wells are in favor of city water, and those with good wells oppose the decision. In an opinion rendered by Staff Attorney Larry Wilhite, he ruled that no apparent or actual conflict of interest existed when the BWL exercised its legal right to sign the petition. Mr. Pandy explained the Township's appeals process and noted that the appeals deadline has elapsed. The Township is certifying the special assessment and is proceeding with the funding. Clean Air Act Amendments. Clean Air Act amendments are a major issue for utilities all across the country. A BWL Clean Air Act (CAA) Compliance Team has been appointed to be chaired by Engineering Planning Director Roger Ophaug. The CAA Compliance Team will oversee and guide BWL's efforts to comply with the Clean Air Act requirements. Staff will be coming to the Board with recommendations in the future. Timeline for Electric Rate Study. A proposed timeline for an Electric Rate Study was handed out. Staff plans to discuss the following rate issues at the August 13 Committee of the Whole meeting: 1. Electric revenue requirements and revenue increases 2. Determination of return from each customer class The timeline of approximately five months duration involves the Board's input and approval of the time schedule, filing with the City, and the public hearing process--all aimed at a January 1, 1992 effective date. Mr. Pandy noted that the Commissioners should be mindful that the timeline overlaps with City Council elections. Staff, however, believes that it would be in the best interest of the utility and its customers to implement the electric rate increase according to the suggested timeline. Rental of BWL Mudcat Horizontal Auger Dredge. The Water Utility has been successful in arranging the rental of the BWL's mudcat horizontal auger dredge, used for reclaiming calcium carbonate sludge. Enviroland, Inc. has agreed to rent this equipment, with appropriate indemnification and liability coverage. The BWL will be generating approximately $1,800 per month from this venture. 90 July 23, 1991 Ottawa Street Steam Reliability ftiect. The status of the Ottawa Street Steam Reliability project was reviewed. Traffic on Ottawa Street between Washington Mall and Capitol Avenue will return to normal August 18. The balance of the work from Capitol to Walnut is expected to be completed by mid-September. Design and Build, Inc. is under contract with the BWL for this project. Northeast Substation Captures Design Award. General Manager Pandy displayed a copy of the July 1991 issue of ELECTRIC LIGHT & POWER (EL&P), featuring substation winners. The BWL is prominently mentioned for the aesthetic design and environmental quality of the Northeast Substation. The fact that the facility was completed under the projected cost was also mentioned in the article. Technical Services Director John Elashkar and his Project Engineering staff were congratulated for their exemplary efforts in the design of this facility. GM Impact Electric Vehicle. General Manager Pandy reported that a major meeting was held with the project management team from General Motors on the Impact electric vehicle to be built in Lansing. Mr. Pandy stated he is very encouraged with GM°s commitment to this project. GM sees a world-wide market because of the disparity between energy prices in Europe, where they pay $4/gallon for gas but pay relatively low electric rates. He further noted the fact that GM formed a battery consortium with Chrysler and ]Ford as an indication that they see this as a race of the United States versus Japan--to build the best electric cars, and build them first; and most significantly, to build them in Lansing. PUBLIC CO .S Lloyd Teets advised the Commissioners that he filed another lawsuit in Circuit Court against the BWL in the total amount of$550,000 for slander, gross negligence, and malfeasance. The BWL has not yet been served with the lawsuit. REMARKS BY COMMISSIONER Commissioner Sebolt thanked the Commissioners for their confidence in re-electing him as Vice Chair. He stated that he is proud to serve the City as a Commissioner of the Board of Water and Light. (EXCUSED ABSENCES BY COMMISSIONER EVANS-- SECONDED BY COMMISSIONER STROLLE That the absence of Commissioner Hassler be excused. Adopted unanimously. On motion of Commissioner Christian, the Board adjourned at 7:05 p.m. & - 4VO-1 Mary E. va, Secretary Filed: July 26, 1991 James D. Blair, City Clerk OL WATER&LIGHT SINCE 1885 P.O. Box 13007 123 W.Ottawa Street Lansing,MI 48901-3007 Memo: 517.3714000 June 25, 1991 TO: All Holders of Board Meeting Minutes FROM: Mary Sova SUBJECT: Board Meeting Minutes for June 18, 1991 Please discard page 73-74 from the Board Meeting Minutes of June 18, 1991 that you currently have and replace with the attached corrected page. Thank you. MES:rs 84; 8 WY 9? Nnr iS 7� -,me 18, 1991 NEW BUSCUSS (`ncfnrnPr AttiWdQ Survey. The results of the Customer Attitude Survey were presented by Dr. Andrew Morrison of Market Strategies, Inc. He reported that the BWL's overall favorability dropped three points in this year's survey. This occurred despite modest increases in four service attributes measured for the BWL's Share the Success Program. Among other things, Dr. Morrison noted that attitudes about the price and value of water and electricity shifted this year. He attributed much of that change to the fact that customers now receive charges for both electricity and water in a single monthly bill. Dr. Morrison also noted that customers continue to give the BWL lower than average ratings for customer satisfaction with telephone contacts. Staff Wil�be�doing m n��ons in response tosis on the s of the concerns raised,d w�be coming back to the Board It AFL MANACAF.R'S REMARKS General Manager Pandy reported on the following activities: Financi ate. A copy of the Consolidated Financial Statement for Water, Electric, Steam and General Properties as of May, 1991 was handed out and summarized. General Manager Pandy presented a comparative analysis on current year-to-date financial statements versus the same period last year. ® Unit Sales - Water sales are up 5.4%, in part due to monthly billings as opposed to quarterly bills. - Electric sales are down by 3.6%. - Steam sales are down by 4.3%. ■ Total Operating Revenue is down 1.2%. ■ Total Operating Expenses are up by 1.0%. ■ Net Income is down by 17.3% ■ year-to-Date Net Income is $15,701,314 as compared to $18,212,123 last year. ® Current number of employees is 913 as compared to 927 last year. Bud nee Anal vsns. General Manager Pandy presented an overview of budget variance analysis comparing the fiscal year to date ac—tuall versus bud e . ■ Unit Sales - Water sales are above budget by 4.2% - Electric sales are down 5.6% as compared to budget - Steam is down 10.5% as compared to budget ■ Total Operating Revenues are down 4.4% less than budgeted. ■ Total Expenses are down 6.5% ■ Total Net Income compared to budget is up 11.9% 74 June 18, 1991 ® Rates of return for Water and Electric are below BWL targets: Water 4.64% Electric 3.55% Steam 12.97% Electric Sales. Due to warm weather, electric sales for the month of May this year were up approximately 7% compared to Oast year. It was also noted that General Motors dropped its electric load by approximately one-third due to their model conversion program during the months of June, July and part of.August. The impact of the changeover program was taken into consideration in budgeting for both Fiscal 1991 and Fiscal 1992. "oal Inventory State. Because the coal crises have subsided, the major coal pile is down to 95 days--the BWL's normal inventory is 60 days. At one point the coal inventory was at 110 days. Since less coal will need to be purchased over the next several months, burning down the coal will slightly improve the BWL's cash situation. District Cooling System. A draft copy of a proposed City Council Resolution regarding the BWL's planned District Cooling System was handed out. General Manager Pandy reported that he and Steam Utility Director Joette Woodard-Yauk appeared before the City Council's Committee of the Whole meeting on June 13 for a briefing on the District Cooling System. This item was referred to the City Council's Public Services Committee for a public hearing on June 20, 1991. Ms. Woodard-Yauk will be representing the BWL to request the City's endorsement of the project. Water°li is➢i y Shutoff Steuri. Since the controversy over the Michigan Department of Social Services' (DSS) payment of water bills, a hearing has been held before Judge Giddings. He postponed the case until sometime later in June. In the meantime, the BWL has continued to aggressively pursue the amounts that are owed. Since the May 17, 1991 date, when this controversy arose, the BWL has collected and received $72,486.60 on 320 accounts. An additional $12,590.47 has been approved by DSS on 84 accounts. If that payment is received from DSS, a total of$85,077.07 would have been collected on 404 accounts since the DSS controversy. Mr. Pandy noted that the BWL has no DSS customers off for non-payment. Collections are continuing according to the Board's approved policy. Salute to Michigan Mothers Paraele. A thank you letter was received from Duane Vernon, General Chairperson of the Second Annual Michigan Parades into the 21st Century and the First Salute to Michigan Mothers Parade. Mr. Vernon expressed his appreciation for the BWL's participation in the parade on May 11 and mentioned the exceptional contributions of BWL employes John Strickler, Terry 'Tisdale, John Miller and Dick Rice by serving on the parade committee. General Maa�ageros Report o� Trip to Fisflaud. Mr. Dandy circulated booklets and general information on Finland and companies who were involved in hosting the tour. His overview of the tour included the following information: ® District heating serves 50% of Finland's population ® Technology and fuel alternatives, such as fuel peat e Slides were displayed of the various power plants visited Discussion followed on known types of successful energy technologies in the power industry. Mr. Pandy noted that pressurized fluidized bed combustion boilers in Stockholm, Sweden appear to be one of the most effective operations. A unit is currently being constructed in Ohio. June 18, 1991 63 NMIUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, June 18, 1991 The Board of Commissioners met in rescheduled 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. SPECIAL ANNOUNCEMENTS Chairman Hassler introduced and welcomed Ernest J. Christian as the Second Ward appointment to the Board of Commissioners of the Board of Water and Light. Commissioner Christian is an Assistant Vice President and Branch Officer of Manufacturers Bank of Lansing. His appointment will fill the vacant Board position which resulted by the sudden death of E. Lane Jessop in February 1991. Commissioner Christian's term will expire on June 30, 1994, and is subject to reappointment. Chairman Hassler announced that Commissioners Jack R. Sebolt and Gerald W. Williams have been reappointed to the Board of Water and Light by Mayor McKane and confirmed by the City Council for another four-year term to expire on June 30, 1995. Present: Commissioners Belen, Christian, Evans, Hassler, 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 WILLIAMS That minutes of regular session of May 28, 1991 be approved as mailed. Adopted unanimously. 64 June 18, 1991 PUBLIC CONE I NTS 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 of 116 E. Elm Street, Lansing, welcomed Commissioner Christian to the Board of Water and Light and presented him with a copy of the Board of Water and Light's Rules and Regulations. On another matter, Mr. Teets advised that his two disputes with the Board of Water and Light are currently in litigation. He further advised that legal redress may be sought through.the courts on at least thirteen counts, which he detailed. Mr. Teets noted that there are more counts, however, he has not had time to put them in writing; and indicated that he may file them one at a time or all at once. He concluded his remarks by stating that he has the freedom of choice to do anything he likes; that if the Board does not want to settle, he does not have a problem. Mr. Teets stated that he knows the way to the courthouse door. PERSONNEL COIVD4=E REPORT June 18, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Personnel Committee met on Wednesday, June 5, 1991 to discuss and consider the following items: 1. Pension Fund Investments 2. Non-Bargaining Wage & Salary Plan review and compensation for Fiscal Year 1991-92 Present were Personnel Committee Members Sebolt (Chair), Strolle, and Williams (alternate). Also present was Commissioner Hassler. Pension Plan The Committee reviewed the status of the Pension Fund investments for the period ending March 31, 1991. The Committee's recommendation has been submitted to the Pension Fund Trustees for action at their June 18, 1991 meeting. Non-Bargaining Wage & Salaa Plan and Fiscal 1991-92 Compensation Following discussion and review of the (a) wage and salary administration for Non- Bargaining Unit (NBU) employees, (b) salary increase survey comparison conducted by the Human Resources Division, (c) percentage increase in the Bureau of Labor Statistics Consumer Price Index for February 1990 v. February 1991, (d) Bargaining Unit and Non-Bargaining Unit salary comparison, the Committee adopted the following motion and recommends Board approval: 65 June 18, 1991 Resolution 91-6-1 Non-Bargaining Unit Compensation Recommendation Fiscal Year 1991-92 A. WAGES AND SALARIES RESOLVED, That effective July 1, 1991: 1. All current Non-Bargaining Unit salary ranges be increased 4.5% for Fiscal Year 1992; 2. All current CT employees in full-time positions receive a 4.5% General Increase, and that their performance increases be administered according to existing policy; and that 3. The matrix for non-CT°s (Clerical and Technical) be set at 3.5%, with 1% increments instead of 2% increments which currently exist. The matrix would also be adjusted to allow employees with a Very Good rating in the upper third to receive 4.5%. B. ADDITIONAL ADJUSTMENTS RESOLVED FURTHER, That: 1. The cap on sick leave accumulation for NBU employees be increased from 168 to 186 days; 2. New employees be granted a bank of 6 sick paid time off credit days, which they could use according to policy. They would get no additional paid time off until their 13th month. (Current policy is that they get no paid time off until the seventh month and get one paid time off per month after that); 3. Employees returning from an approved leave of absence who have exhausted all sick leave be allowed to use a maximum of 6 paid time off days in addition to the day-a-month they are normally granted. These days must be paid back through gaining a positive paid time off balance or via the first full pay period following 12 months from the date they returned to work; 4. Non-purchased vacation and free choice be allowed to be carried over in full, or payment in full be allowed the year prior to retirement for NBU employees; and that 5. A review of all technical job descriptions and their levels for appropriateness be started in January 1992. 65 June 18, 1991 C. OTHER RESOLVED FURTHER, That: 1. The Board recognize that the recommendation in A above is due to budget constraints and that if at all possible, in the future, the matrix should be revised to 2% increments and to reflect the range increase at the Good level; and that 2. Part-Time Employees receive a 4.5% general increase rounded up to the next full nickel. Respectfully submitted, Jack R. Sebolt, Chair Personnel Committee BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS That the Committee of the Whole Report, including Resolution 91-6-1, regarding Non-Bargaining Wage and Salary Plan and Fiscal 1991-92 Compensation be approved as submitted. Adopted unanimously. 67 June 18, 1991 Recommendations Board of Water and Llgl"t of Director and Lansing,Michigan General Manager Dear Ladies and Gentlemen: The following iterns are recommended for your approval: ADMINIS'TRATIVE- Res.No. 91-6-2 That in accordance w ita,Article 11,Section towing g �e Board's ates be adopted Administrative th regular Procedure,it is recoml�nended the the following list o meeting schedule f or the hoard of Water and Light Commissioners for the ensuing siac (6) months- 1991 - Tuesday July 23 _ 'r- esday August 27 - 'Tuesday September 24. - Tuesday October 22 _ Tuesday November 26 - Tuesday December' 17 P.M Regular meetings of the Board shall commence at�:3®nfl with rescheduled City � � ule is subject to change as a result of date co ltfhc� ills schedule Council meetings. ublished in the ended that a notice of the ri=eeting schedule be p It is further recort the weep oa July 7, 1991. LANSU`1C STATE J0IJRT l.�L Res.No. 91-6-3 of l ,l'�. 72 ?. ®vier Eair Access Act of 1991" an Resolution in-i u-p=-- Rke aced Act are not in the WHEREAS r aniendments to the,icalll�d�..iless the issues Company f utility self-dealing and fair public interest unless they s- 13 y transmission access, and, least as favorable as transmission- discriminatory, should be at_lowed to use the transmission system on a no - �E�AS, all u discriminatory,embedded cost basis pis on terms at e owning utilities provide themselves and their affiliates, and, joint ownership,joint o g WHEREAS. such use should be provided'tariffs or otherwiseuch mechanisms. usage agreements, appropriate Iran 68 ADM�jyIS'1• (Continued) June 18, 1991 �TIVE _ (Res. No. 91-6-3) NOW,THEop�o��' the L,a.nsing Eoard of Water People its members serve, adoptsd Light, on behalf of itself and the transmission legislation such as H.R. 2224, which this resolution of su in accordance with the preceding hich will help Provide tr ppo�for principles. p p �smission access This legislation is -_ - ---�-- m the best interest of Michigan residents because it promotes comavailable for all the y customers.induomen. and helps ensure that the lowest cost utility customers. electricity is ------------- Res. No. 91-6-4 ------- That employees be given the options for the following benefits: to use their 1991 Share the Success Bonus payment 1. Deferred Cash 2. Purchase of Vacation 3. Purchase of Free Choice 4. I.C.M.A. 5. FSA 6. Vision Plan/BCBS 7. Cancer Care, Intensive Care, AFLAC Plan 8. Charitable Contributions (new option) Further, it is also recommended that the Flexible SpendingAccount and the Travelers Plan Administrators of Illinois be awardd th contract Plan year. ( ) be continued tract for the 1991/92 CO ------------------ - NSUMEgI SERVICES - Res. No. 91-6-5 That a list of accounts totaling$735,625.82 on file in the Co written off as uncollectible for fiscal rporate Secre breakdown of these accounts, including ending June 30, 1991. Following is aoffYce, be $136,769,133. g a comparison to annual operating revenue of %of Revenue 12 Months Ending Electric AD— �1991 Water (excludes sewerage) $521.212.00 .381% Steam 177,011.32 .129°fo Merchandise 5,984.08 .004% Miscellaneous 93.12 .000% 31,325.30 .023% TOTAL: *$735,625.82 .537% 69 18, 1991 Q U K SERVV ICFS (Continued) (Res.No.91-6-5) prior to the end of June vM be a ants re Accounts on the balance sheet- Any and posted to these accounts Any P ym t the$615,000 allowance for Doubtful charged against accounts in the amount of$156,954.36 be referred to the City or Further,that sewerage further handling. 0 684.37 *This figure includes bankruptaccounts totaling$4 Res.No. 91-6-6 The Consumer Services Division is authorized e�wrcite off uncollectible accounts monthly in accordance with the following guidelines: Inactive accounts in bankruptcy when all legal remedies have been exhausted, Inactive accounts when all BWL collection efforts is for have been exhausted or there have been no pay one year. Inactive accounts when all��-and outside collection agency efforts have been e�chausted or there have been no pa3nnents for one year. The Cons umer Services Division wi11 maintain written procedures for;a•�plementing these guidelines. ith o maintain records of former customers w aamounts these customers attempt to sign due will futured debts. If in the will also be The BWL i up for BWL seance,outstanding collected• u rsedes paragraph one of the resolution on accounts written off s This resolution 28 1990. adopted Auger 70 Jtme 18, 1J1 TECHNICAL SERVICE Res. No. 91-6-7 It is recommended that the following s equipment be declared surplus and not required for Board of Water and Light operation Eckert Station: 1. Five (5) Soot Blowing Air Compressors 2. Four (4) House Service Air Compressors 3. Four (4) Control Air Compressors Moores Park Station: 4. One (1) House Service Air Compressor 5- TWO (2) Control Air Compressors It is further recommended that the property records be adjusted in accordance generally accepted accounting procedures. The removal work is to be with FY'92 and will be coordinated by EpMD under Project No. 87-103. during -------------------- The present net book value of the 16 compressors is maintenance items and are not used due to their $0 00 con . These compressors are high been replaced by three (3) CENTAC centrifugalrpressors.ditiOn 'These compressors have -------------------- TREAKRER/C NTROLLER Res. No. 91-6-8 That the Board pay$4,478,115 to the City of Lansing as a return on city utility system. equity in its Further, that all Receiving Fund cash and investments rem ai Payment be transferred effective June 30, 1991 to the Special Prninoject Fund orbove capital projects. followin a tare . 71 ne 18, 1991 WATER ReS.No. 91-6-9 proposed Water District No. 74,Delhi Township, That the Board agree to serve Water to prop t Township Board on May 21) 1991, and as requested by resolution of the Delhi Charter table water supply in Delhi the a Bement between the Boar sand the Charter Township Of that in accordance With 1972 covering the furnishing of p0 Delhi dated AugustTownshipas follows: Township,the Board advises officials of Delhi hed The' will accept Water District t and will provide ay 1' resolution on May 21, Townshipsupplyto said district. potable water aired to make a$22,595.30 non- 2. The Township will required construction to cover the refundable contribution-in-aids(Rule Regulations for charges set forth in the Board distribution Water Service for installing the necessary facilities to serve said district. agreementint The Board and the Township are to enter written 3• covering the furnishing of a table (Supplement LXXIV) water supply in water District No. 74. ed 4. Water mains are to be install f accordance ter Service the current Board's Rules and Regulations the project be be authorized to Further,that upon receipt of the sum of $22,595.30 from the Township, Furl er and the Secretary a table water approved for installation, and (SupplemengL�V) to furnishp0 sign the aforementioned agreement supply in Water District No. 74. The geographical area of Water District No. 74 is as follows: River Pointe Subdivision No. 2 Lots 44 thru 57• requires the 1 within the proposed new district To provide a potable water supply installation of 955 feet of water male and fie hydrants at an estimated cost of $22,595.30. will serve fourteen (14) residential tie is°$4,200 OOe time connection The main extension vn fees will amount to$7,840.00. Estimated annualrevenue the receipt of the Townships led i Sum-aid of construction and the signing of the agreement. Water mains to be installed m Summer of 1991 fol ow g non-refundable contrib Respectfu11Y submitted, �a Joseph Pandy,Jr. General Manager JP/bg 72 June 18, 1991 BY COMMISSIONER WILLIAMS— SECONDED BY COMMISSIONER BELEN SOLVED, That Resolutions 91-6-2, 91-6-3 and 91-6-4, rest tiv (Administrative) of the General Managers Recommendations bea ely' Adopted unanimously. approved. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER O'LEARY RESOLVED, That Resolutions 91-6-5 and 91-6-6, res Services) of the General Managers Recommendations be y, (Consumer With regard to Resolution 91-6-5, accounts written off, Commissionerp uncollectible accounts were not written off staff was overly optimistic about the ability to collect some of andy inquired why the sooner. General Manager Pandy responded that that they remained on the boobs longer than the these accounts. He concurred approach. y should have. Staff is taking a more realistic Following discussion, the resolutions were adopted unanimously. BY COMMISSIONER WILLIAMS-- y .SECONDED BY COMMMISSIONER EVANS RESOLVED, That Resolution 91-6-7 Manager's Recommendations be approved finical Services) of the General Adopted unanirously. BY COMMISSIONER WILLIAMS-- SECONiTDED BY COMMISSIONER SE130LT RESOLVED, That Resollgtioj, 91-6-3 r Manager's Recommendations be approved- Adopted of the General Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEEOLT RESOLVED, That Resolution 91-6-9 (RVater)of the General Mana Recommendations be approved. ger°s Adopted unanimously. 73 June 18, 1991 NEW BUSS u m i ry arket Strategies,. The results of the Customer Attitudethat the Survey were presented by Dr. Andrew Morrison of M Inc . He reportederall favorability dropped three points in this year's survey. This occurred despite modest increases in four service attributes measured for the bout h Share and valuesof water r and electrici other things, Dr. Morrison noted that attitudes about the p customers now shifted this year. He attributed much of that cleaninonthl to h billet Dr.t Morrison also noted that charges for both electricity and water in a sing Y customers continue to give the BWL lower than average the results of the study and will be wlth telephone contacts. Staff will be doing an analysis o coming back to the Board with recommendations in response to concerns raised. g L MANA(8EW S ItEMARK� General Manager Bandy reported on the following activities: EPA Uvda�t • A copy of the Consolidated Financial Statement for Water, Electric, Steam General Properties as of May, 1991 was handed out and summarized. General Manager and and resented a comparative analysis on current year-to-date financial statements versus the Pandsame period last year. ■ Unit Sales - Water sales are up 5.4%, in part due to monthly billings as opposed to quarterly bills. - Electric sales are down by 3.6%. - Steam sales are down by 4.3%. o Total Operating Revenue is down 1.2%. ■ Total Operating Expenses are up by 1.0% e Net Income is down by 17.3% ■ year-to-Date Net Income is $15,701,314 as compared to $18,212,123 last year• ® Current number of employees is 913 as compared to 927 last year. Bud'riance Analvs'. General Manager Pandy presented an overview of budget variance analysis comparing the fiscal year to date actual versus bude�. ® Unit Sales - Water sales are above budget by 4.2% - Electric sales are down 5.6% as compared to budget - Steam is down 10.5% as compared to budget ■ Total Operating Revenues are down 4.4% less than budgeted. ® Total Expenses are down 6.5% ■ Total Net Income compared to budget is up 11.9% 74 jmu 18, 1991 1EW 0pg gusto®er ItE Survey. The results of the Customer Attitude Survey were presented by Dr. Andrew A/forrison of Market Strategies, Inc. He reported that the BWL's overall favorability dropped three points in this year's survey. This occurred despite modest increases in four service attributes measured for the BWL's Share the Success Program. Among other things, Dr. Morrison noted that attitudes about the price and value of water and electricity shifted this year. He attributed much of that change to the fact that customers now receive charges for both electricity and water in a single monthly bill. Dr. Morrison also noted that customers continue to give the BWL lower than average ratings for customer satisfaction with telephone contacts. Staff will be doing an analysis on the results of the study and will be coming back to the Board with recommendations in response to concerns raised. General Manager Pandy reported on the following activities: Financial JIdalf�. A copy of the Consolidated Financial Statement for Water, Electric, Steam and General Properties as of May 31, 1991 was handed out and summarized. General Manager Pandy presented a comparative analysis on current year-to-date financial statements versus the same period last year. ® Unit Sales - Water sales are up 5.4%, in part due to monthly billings as opposed to quarterly bills. - Electric sales are down by 3.6%. - Steam sales are down by 4.3%. ® Total Operating Revenue is down 1.2%. Total Expenses are up by 1.0%. * Net Income is d,own by 17.3% * Year-to-Date Net Income is $15,701,314 as compared to $18,212,123 last year. Current number of employees is 913 as compared to 927 last year. B1°dgance A��t sis. General Manager Pandy presented an overview of budget variance analysis comparing the fiscal year to date aril versus b i- as of May 31, 1991. ® Unit Sales - Water sales are above budget by 4.2% - Electric sales are down 5.6% as compared to budget - Steam sales are down 10.5% as compared to budget ® Total Operating Revenues are down 4.4% less than budgeted. ® Total Expenses are down by 6.5% Total Net Income compared to budget is up 11.9% June 18, 1991 75 Oldsmobile LPGA Pro AM Sponsorship. The Lansing Regional Chamber of Commerce has successfully secured the Oldsmobile LPGA Pro Am event this year in Fast Lansing at the Walnut Hills Country Club on August 5, 1991. Following discussion, it was the consensus of the Board that sponsorship would be left to the discretion of the General Manager as permitted under Resolution 85-7-3. The Commissioners were in support of a Platinum level BWL sponsorship. On motion of Commissioner Christian, the Board adjourned at 6:58 p.m. aka M E. ov Aecre Mary aY Filed: June 20, 1991 James D. Blair, City Clerk RECD. LANSING 0 1 LIE R K BY: '0 91 J U'l 2 U Aft 10 '10 May 28, 1991 52 1VDNUTES OF BOARD OF COMMSSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, May 28, 1991 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, Hassler, O'Leary, Sebolt, Strolle, and Williams - 6 co Absent: Commissioner Evans Board Vacancy: (1) 2f '- The Secretary declared a quorum present. G' Assistant General Manager Wolfe, Secretary Sova and Staff members were present `''_ The Invocation was given by Chairman Hassler. cn The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER STROLLE That minutes of rescheduled session of April 30, 1991 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. LeRoy Harvey, Director of Urban Options, spoke on Urban Options' willingness to assist the BWL in helping needy residents in this community to maintain affordable electric, water and sewage services and reduce shutoffs. In his overview of Urban Options' Energy Fitness Program, Mr. Harvey explained how the program has helped thousands of Lansing residents through educational presentations, self.-help materials, and the installation of up to eight low-cost energy and water savings improvements. He expressed concern that funding for the Energy Fitness Program has been drastically reduced due to state budget cuts. The cities of Lansing and East Lansing, however, remain committed to the program through community development block grant funding. In conclusion, Mr. Harvey urged the Commissioners and staff to participate in the 53 May 28, 1991 cooperative efforts of Lansing, East Lansing, Michigan State University, and Lansing Community College in providing Energy Fitness Program services as a vehicle to reduce the impact of cuts not only to local needy residents, but to the BWL as well. Co ABW dYCATIONS A letter was received from Patricia O. Butler in support of the Board of Water and Light's fuel procurement program. Placed on file. COAUfflTTEE OF THE WHOLE REPORT May 28, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on May 13, 1991 to plan and develop the agenda for the Board of Commissioners' retreat to be held in Lewiston, Michigan on June 20-22, 1991. Present were Commissioners Belen, Hassler, O'Leary, and Williams (Chair Pro Tem). Absent were Commissioners Evans, Sebolt and Strolle. The focus of the Board Retreat will be to review policy issues and plan for the future to assure high quality, reliable and economical utility services now and in the years ahead. To maintain high standards of effectiveness and efficiency, the Commissioners also plan to evaluate their accomplishments and establish personal goals and objectives. Issues to be addressed include: I. Board Self-Evaluation II. Stakeholders - Customers and Employees III. The Board of Water and Light and the Community IV. The Board and the Environment 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 Deport be received and placed on file as presented. Adopted unanimously. fay 28, 1991 54 May 28, 1991 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. 91-5-1 That Gene G. Houser, Overhead Line Supervisor in Line Construction, be placed on an early reduced pension of$1103.76 per month effective May 1, 1991. He has selected Option IV with the provision that after his death, if his wife, Oralia G. Houser, survives him she will receive $1103.76 per month for the rest of her life. If his wife predeceases him,the pension amount of$1103.76 will revert back to the regular pension amount of$1344.97 for the rest of his life. -------------------- Mr. Houser has worked for the BWL for 25.99 years and is 55 years of age. -------------------- TREASURER/CONTROLLER Res. No. 91-5-2 Authorize the purchase of the estimated 12 month requirements of the following commodities for use in Dye and Wise Road Water Conditioning Plants, Moores Park Steam Plant, and Eckert and Erickson Electric Generating Plants. Pricing is firm through May 31, 1992. Commodity quantities are released as required over the 12 month period. All commodities were competitively bid in accordance with the BWL Purchasing Policy and Procedures. Below is a summary of the lowest and best evaluated bids. Annual Quanity Annual Cost Commodity (Estimated) Unit (Estimated) Vendor Hydrofluosilicic Acid 160 T $138.90/T $22,224 LCI Limited Pebble Quicklime 11,000 T 51.30/T 564,300 Marblehead Lime Co. Soda Ash 1,600 T 153.07/T 244,912 General Chemical Corp. Granulated Salt 320 T 64.75/T 20,720 AKZO Salt,Inc. Sulfuric Acid 528 T 60.00/T 31,680 Carrier-Stephens,Inc. Caustic Soda 145.6 T 395.00/T 57,512 Carrier-Stephens,Inc. Liquid Chlorine 97 T 384.00/T 37,248 Cardinal Chemical Corp. Molten Sulfur 157 T 121.00/T 18,997 Marxulex,Inc. Sodium Hexametaphosphate 36,000 lbs .56/lb 20,160 Haviland Products Co. $1,017,753 -------------------- May 23, 1991 TREASURER/CONTROLLER(Continued) Res. No. 91-5-3 Investment Recovery: Authorize the sale of the estimated 18 months quantity of BWL scrap metal to Friedland Industries for the period of June 3, 1991 to December 31, 1992. Estimated 12 month quantity is 720,120 lbs. Estimated revenue for the contract period is $99,469.01. Pricing structure is based on firm percentages of the American Metals Market for each type of metal sold. -------------------- The other bidder was Padnos Iron and Metal. Estimated revenue from their bid for the contract period totalled$94,507.35. -------------------- WATER Res. No. 91-5-4 It is recommended that Sheet 8.01.2 Service Installation Charges, of the BWL's Rules and Regulations for Water Service be revised so that dedicated-use meters (for water which does not enter the waste water system) can be installed on domestic services and assessed specified charges. (The new wording being added to Sheet 8.01.2 is Item 6 and appears in italics below): 6 Dedicated-Ilse Meter Installation -- Where a customer requests that a separate meter be installed in parallel to an existing meter or that a separate parallel meter be installed in conjunction with a new service installation, the following schedule of charges applies. Size of Service Schedule of Charges 314" $135.00 1" $135.00 1 112"or larger Time&Material ($135.00 minimum) Dedicated-Use meters are to be used only for water which does not enter the wastewater system. If this concept is violated, then wastewater charges may be made retroactive and the dedicated-use meter will be subject to removal. It is the intent of these Rules that Lawn Sprinkler (Irrigation) meters be considered one category of dedicated-use meters. -------------------- 56 28, 1991 WATER (Continued) Res. No. 91-5-5 It is recommended that Sheet 7.00,Paragraph 3, BILLING, of the BWL's Rules and Regulations for Water Service,be revised to allow for all separate meters for lawn sprinkling to be subject to the water commodity rate only. Sheet 7.00,Paragraph 3,BILLING,follows with the wording to be deleted shown by 3. BILLING All bills may be rendered monthly,bi-monthly, or quarterly depending upon volume of water consumption and are scheduled to reach the customer before the due date on the bill. The customer will pay the net amount if paid on or before the due date of the bill. Failure on the part of the customer to receive the bill shall not entitle him to pay the net amount after the date when the bill was due. Bills are mailed to customers at least fifteen (15) days before the due date appearing on the bill. Customers having more than one meter shall have consumption computed individually in accordance with the current rate schedule, with the exception of separate meters a ee ¢ ' " and installed solely for lawn p --o�• ,9eFAee4iae are sprinkling. Lawn sprinkling meters subject to the appropriate water commodity rate only. Lawn sprinkling meters are not subject to sewerage charges. Readings may be calculated when conditions warrant. Bills rendered on a calculated reading have the same force and effect as bills rendered on actual meter readings. Reasons for a calculated bill include,but are not limited to,non-registration of meter, inability to gain entrance to meter, and adverse weather conditions. A calculated bill can be determined from prior usage or from other factors that could have affected consumption during the period or periods involved. -------------------- Res. No. 91-5-6 That the Board agree to serve water to proposed Water District No. 71, Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 7, 1991, and that in accordance with the agreement between the Board and the Charter Township of Della 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. 71 established by Township resolution on May 7, 1991, and will provide a potable water supply to said district. 57 May 28, 1991 WATER (Continued) (Res. No. 91-5-6) 2. The Township will be required to make a$125,937.65 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 LXXI) covering the furnishing of a potable water supply in Water District No. 71. 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$125,937.65 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXI) to furnish a potable water supply in Water District No. 71. The geographical area of Water District No. 71 is as follows: Pine-Dell Subdivision Lots 1 thru 61 To provide a potable water supply within the proposed new district requires the installation of 4,715 feet of water main and fire hydrants al an estimated cost of $125,937.65. The main extension will serve sixty-one (61) residential customers. One-time connection fees will amount to$34,160.00. Estimated annual revenue is $18,300.00. Water mains to be installed in Summer/Fall of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, J. D. Wolfe Assistant General Manager JD W/bg 58 28, 1991 Resolution No. 91-5-7 TREASIIRER/CONTROLLER RESOLVED: nd Light Commissioners hereby indicate their That the Board of Water a support of cost based rates for the sewage disposal system. That the Board of Water and Light recommends that City Council change the sewer ordinance to clearly eweresystem from sewer charge s water used that does not enter the sanitary That staff be directed to recommend changes to the ordinance that would facilitate this change. -------------------- Recommended By: Treasurer/Controller - Date Dana W. Tousley, q Approved by: . D. �Gene�ral Wolfe, ssistan Manager - Date Date Resolved by Board Action: May 28, 1991 59 I by 28, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-5-1 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolutions 91-5-2 and 91-5-3 (Treasurer/Controller) of the General Manager's Recommendations be approved. Assistant General Manager Wolfe commented on Resolution 91-5-3. He stated that he has been advised by Staff Attorney Larry Wilhite that the sale of BWL scrap metal to Friedland Industries needs to be reviewed to determine if the company is in possible default. BY COMMISSIONER SEBOL'T-- SECONDED BY COMMISSIONER O'LEARY RESOLVED, That the motion be amended authorizing the bid on Resolution 91-5-3, pertaining to the sale of scrap metal, to be awarded to the second low bidder; namely, Padnos Iron and Metal, in the event Friedland Industries is found to be in default. Adopted unanimously. Chairman Hassler announced that an addendum (resolution 91-5-7) to the General Manager's Recommendations has been presented for consideration. Assistant General Manager Wolfe reported that the City Council is considering changes to the sewer ordinance. Resolution 91-5-7 would support the move to cost based rates and asks for changes that facilitate removing sewer charges on water usage that does not enter the sanitary sewer system. There being no objection, the resolution was added to the agenda under the Water items. Treasurer/Controller Tousley reported that City Council will be reviewing sewer rates in June. A cost of service study recommends a 9 percent increase in sewer revenue. He handed out an analysis of current and proposed sewer rate changes under consideration by the City Council. He noted that current language in the City Ordinance implies that water used for irrigation purposes is exempt from sewer charges. The focus of the ordinance needs to clearly state that water not entering the sanitary sewer system and is separately metered is exempt from sewer charges. Treasurer/Controller Tousley noted that this topic was highlighted at the Board's joint dinner meeting with City Council held on February 25, 1991. The City Council is expected to hold a public hearing on June 10, 1991, to consider changes to the sewer ordinance. 60 3, 1991 BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER WILLIAMS - d 91-5-7 (Water That Resolutions 91-5-4, 91-5-5, 91-5 6, an roved. RESOLVED, er's Recommendations be approved. Utility), respectively, of the General Manager's s for Resolutions 91-5-4 and 91-5-5 RESOLVED FURTHER, That the rule change take effect July 1, 1991. Adopted by the following vote: Yes: C Strolle, O'I.earY, Williams -5 Commissioners Hassler, Sebolt, Nay: Commissioner Belen Absent: Commissioner Evans articularly with the process n its support for changes to the sewer ordinance. She Commissioner Belen expressed cats tern with Resolution 91-5- � p the Commissioners and in which the Board is Comm encouraging open exchange between suggested a less formal approach the City Council in lieu of a resolution. GENERAL MANAGER1S MARKS d staff reported on In General Manager Pandy's absence, Assistant General Manager Wolfe an the following activities: Graham presented an reported that on April 1, 1991, the State of Michigan tatus on W ter Utilit Shutoffs He Consumer Services Director arty due water bills through update on Water Utility sartment of Social Service (DSS) 5 P.m.ients past i Circuit stopped paying State Department m Ingham County Program. On May 17, 1991, at 5:05 p. •9 its Emergency Needs Prog restraining order against due water billsthe Court Judge Giddings issued a temporary Giddings' action was . responseJudge haslawsuit filed scheduled a show Depart merit of Public Health ordering DSS to continue paling p Emergency Needs Program. Judge Michigan Legal Services on behalf of several DSS clients. The J° g at due water bills, June 4 1991, at which time DSS will ha.Svec�en show with P they should stop cause hearing for represents paying past due water bills. Currently there are nts w D 1 DSS customers have water . Of the total, $82,000 represents wg�is timeo�s and $105,000 P totaling $197,000 pointed out that at anon May 15 asking BWL sewerage customers. Mr• Graham p the three-day service. Mr. Graham also reporteddtePaulillAstotal of$800 was raised din employees customers to donate to St. Vincent several period prior to Judge Giddings order on May fo 17. In rist addition, Vincent e Paul- Finally, an pen de contacted some area churches and receiv in another $1,200 to St. Vincent "Onlooker, column on the subject brought May 21, 1991, written by Mayor es ®rids with the Governor ®n Water Shutoff Con erg. Assistant Ma or Mclean C011 p of a letter, dated y General M that water anager Wolfe referred to a COPY taken to su al 11 to Go vernor Engler urging that immediate steps be let letter,sthe Mayor stresses he Lansing area of the policy of the DSS to no longer provide finan continues to flow into all the households of Michigan• bills. impact on the greater their water assistance to citizens who cannot afford topay 61 May 28, 1931 Cit Attorne 's ® In gay Authomit to Q�erate a Distnyc City Attorney Alvan Knot has rendered an opinion in regards to the B_:: : authority establish a district cooling system. The opinion, based y WL-: : n� System. states that City Council approval is required for the BWI, t prong 0i the Charter prova to s ons, district cooling system. The Mayor will be submitting the opinion to City Council for of a discussion. Share the T -U . The STS ees report through April, 1991, stands at 434 This is the second time in three months that the Share the Success program registered number of points. Assistant General Manager Wolfe gave an overview of re points. e measure Point allocations. He noted that the ST,S results show that 13WL employees e responding to o are a record the organization's attempts to improve services and reduce costs and s. u ntn 'ttitpnde S,urWe• The results of this year's Customer attitude Survey wil presented to the Board at the next regular meeting. Y 1 be the s Ies ®n Cr 14-)9 S__la&nostic IEvaluatiora. Cresap management consultants the process of interviewing management staff. Results of their diagnostic evaluation on are in systems, operations and management of the 13WL, support services will be completed inn July. !Et AIAemploy ent A'ear �e�an°ds "A nrler. Seventeen employees who have completed 25 Y employment at the BWL will be honored at the annual awards dinner on May 30. years of P rsonnel Colittez MeetiILP,. The Personnel Committee will be meetin on June at 12 Noon to review, (I the Pension Plan Compensation and Wage and S ( investments and 2 g �, 1991, alary Plan for Fiscal 1992. ) Proposed Non-Bargaining Unit Board Commissioner Nomination to Vacant Board �®�afnnuo nominated Ernest J Chnstaan as a Second Ward appointment to replace McKane has Lane Jessop who passed away February 19, 1991. Mr. Christian is scheduled to be interviewed b P e Commissioner E. y City Council Members at their Cornrnittee of the Whole meeting on May 30. If approved, the Committee of the Whole will submit their recommendation at the June Council meeting for ratification ne 3 City RE&IAWCS By BOARD CO SSIONERS EC_ lter /Moores Park Safet Fns ectnon. COmMissloner Williams commended all e of the ted b t/1�loM Park Plant for their excellent performance during a recent inspection conducted by the Michigan Occupational Safety and Health Agency pection results showed significant improvement as compared to last year. y (MTO5&I,��. Inspection lay 28, 1991 62 Newsletter Ar�tije on Belle River Power. Commissioner Hassler commented on the May, 19919 BWL Newsletter article on Belle River. He remarked that it was an excellent summary to inform the public on the status of Lansing°s Belle River entitlement. EXCUSED ABSENCES BY COMMISSIONED SEBOLT-- SECONOED BY COMMISSIONER BELEN That the absence of Commissioner Evans be excused. Adopted unanimously. On motion of Commissioner O'Leary, the Board adjourned at 6:08 p.m. Mary E. S a, Secretary Filed:May 31, 1991 James D. Blair, City Cleric May 28„ 1991 52 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, May 28, 1991 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, Hassler, O'Leary, Sebolt, Strolle, and Williams - 6 n Absent: Commissioner Evans Board Vacancy: (1) _ <`7 r C.J 1 The Secretary declared a quorum present. _r Assistant General Manager Wolfe, Secretary Sova and Staff members were presenP x c� The Invocation was given by Chairman Hassler. ry The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER STROLLE That minutes of rescheduled session of April 30, 1991 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. LeRoy Harvey, Director of Urban Options, spoke on Urban Options' willingness to assist the BWL in helping needy residents in this community to maintain affordable electric, water and sewage services and reduce shutoffs. In his overview of Urban Options' Energy Fitness Program, Mr. Harvey explained how the program has helped thousands of Lansing residents through educational presentations, self.-help materials, and the installation of up to eight low-cost energy and water savings improvements. He expressed concern that funding for the Energy Fitness Program has been drastically reduced due to state budget cuts. The cities of Lansing and East Lansing, however, remain committed to the program through community development block grant funding. In conclusion, Mr. Harvey urged the Commissioners and staff to participate in the i3 May 28, 1991 cooperative efforts of Lansing, East Lansing, Michigan State University, and Lansing Community College in providing Energy Fitness Program services as a vehicle to reduce the impact of cuts not only to local needy residents, but to the BWL as well. COMMUNICATIONS A letter was received from Patricia D. Butler in support of the Board of Water and Light's fuel procurement program. Placed on file. COMMITTEE OF THE WHOLE REPORT May 28, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met on May 13, 1991 to plan and develop the agenda for the Board of Commissioners' retreat to be held in Lewiston, Michigan on June 20-22, 1991. Present were Commissioners Belen, Hassler, O'Leary, and Williams (Chair Pro Tem). Absent were Commissioners Evans, Sebolt and Strolle. The focus of the Board Retreat will be to review policy issues and plan for the future to assure high quality, reliable and economical utility services now and in the years ahead. To maintain high standards of effectiveness and efficiency, the Commissioners also plan to evaluate their accomplishments and establish personal goals and objectives. Issues to be addressed include: I. Board Self-Evaluation II. Stakeholders - Customers and Employees III. The Board of Water and Light and the Community IV. The Board and the Environment 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 be received and placed on file as presented. Adopted unanimously. May 28, 1991 54 May 28, 1991 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. 91-5-1 That Gene G. Houser, Overhead Line Supervisor in Line Construction, be placed on an early reduced pension of$1103.76 per month effective May 1, 1991. He has selected Option IV with the provision that after his death, if his wife, Oralia G. Houser, survives him she will receive $1103.76 per month for the rest of her life. If his wife predeceases him,the pension amount of$1103.76 will revert back to the regular pension amount of$1344.97 for the rest of his life. -------------------- Mr. Houser has worked for the BWL for 25.99 years and is 55 years of age. -------------------- TREASURER/CONTROLLER Res. No. 91-5-2 Authorize the purchase of the estimated 12 month requirements of the following commodities for use in Dye and Wise Road Water Conditioning Plants, Moores Park Steam Plant, and Eckert and Erickson Electric Generating Plants. Pricing is firm through May 31, 1992. Commodity quantities are released as required over the 12 month period. All commodities were competitively bid in accordance with the BWL Purchasing Policy and Procedures. Below is a summary of the lowest and best evaluated bids. Annual Quanity Annual Cost Commodity (Estimated) Unit Cost (Estimated) Vendor Hydrofluosilicic Acid 160 T $138.90/T $22,224 LCI Limited Pebble Quicklime 11,000 T 51.30/T 564,300 Marblehead Lime Co. Soda Ash 1,600 T 153.07/T 244,912 General Chemical Corp. Granulated Salt 320 T 64.75/T 20,720 AKZO Salt,Inc. Sulfuric Acid 528 T 60.00/T 31,680 Carrier-Stephens,Inc. Caustic Soda 145.6 T 395.00/T 57,512 Carrier-Stephens,Inc. Liquid Chlorine 97 T 384.00/T 37,248 Cardinal Chemical Corp. Molten Sulfur 157 T 121.00/T 18,997 Marxulex,Inc. Sodium Hexametaphosphate 36,000 lbs .56/lb 20.160 Haviland Products Co. $1,017,753 -------------------- 55 May 28, 1991 TREASURER/CONTROLLER (Continued) Res. No. 91-5-3 Investment Recovery: Authorize the sale of the estimated 18 months quantity of BWL scrap metal to Friedland Industries for the period of June 3, 1991 to December 31, 1992. Estimated 12 month quantity is 720,120 lbs. Estimated revenue for the contract period is $99,469.01. Pricing structure is based on firm percentages of the American Metals Market for each type of metal sold. -------------------- The other bidder was Padnos Iron and Metal. Estimated revenue from their bid for the contract period totalled$94,507.35. -------------------- WATER Res. No. 91-5-4 It is recommended that Sheet 8.01.2 Service Installation Charges, of the BWL's Rules and Regulations for Water Service be revised so that dedicated-use meters (for water which does not enter the waste water system) can be installed on domestic services and assessed specified charges. (The new wording being added to Sheet 8.01.2 is Item 6 and appears in italics below): 6. Dedicated-Use Meter Installation -- Where a customer requests that a separate meter be installed in parallel to an existing meter or that a separate parallel meter be installed in conjunction with a new service installation, the following schedule of charges applies. Size of Service Schedule of Charges 314" $135.00 ]it $135.00 1 112"or larger Time &Material ($135.00 minimum) Dedicated-Use meters are to be used only for water which does not enter the wastewater system. If this concept is violated, then wastewater charges may be made retroactive and the dedicated-use meter will be subject to removal. It is the intent of these Rules that Lawn Sprinkler (Irrigation) meters be considered one category of dedicated-use meters. -------------------- May 28, 1991 56 . WATER (Continued) Res. No. 91-5-5 It is recommended that Sheet 7.00,Paragraph 3, BILLING, of the BWL's Rules and Regulations for Water Service, be revised to allow for all separate meters for lawn sprinkling to be subject to the water commodity rate only. Sheet 7.00, Paragraph 3, BILLING,follows with the wording to be deleted shown by s4lke Owetigh. 3. BILLING All bills may be rendered monthly, bi-monthly, or quarterly depending upon volume of water consumption and are scheduled to reach the customer before the due date on the bill. The customer will pay the net amount if paid on or before the due date of the bill. Failure on the part of the customer to receive the bill shall not entitle him to pay the net amount after the date when the bill was due. Bills are mailed to customers at least fifteen (15) days before the due date appearing on the bill. Customers having more than one meter shall have consumption computed individually in accordance with the current rate schedule, with the exception of separate meters^^ranee+^a to the ae estie s ^'-i^^ and installed solely for lawn sprinkling. Lawn sprinkling meters eanneeted to tke dei:nest;^ sefviee, are subject to the appropriate water commodity rate only. Lawn sprinkling meters are not subject to sewerage charges. oepaure :a-n::vF,ra��S-S@�i=iccS, i46rC6ecccdZ9 a-E}6zzreSciB-6E'n4ee, We...,. 666 Readings may be calculated when conditions warrant. Bills rendered on a calculated reading have the same force and effect as bills rendered on actual meter readings. Reasons for a calculated bill include,but are not limited to, non-registration of meter, inability to gain entrance to meter, and adverse weather conditions. A calculated bill can be determined from prior usage or from other factors that could have affected consumption during the period or periods involved. -------------------- Res. No. 91-5-6 That the Board agree to serve water to proposed Water District No. 71, Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 7, 1991, 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. 71 established by Township resolution on May 7, 1991, and will provide a potable water supply to said district. 57 May 28, 1991 WATER (Continued) (Res. No. 91-5-6) 2. The Township will be required to make a$125,937.65 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 LXXI) covering the furnishing of a potable water supply in Water District No. 71. 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$125,937.65 from the Township,the project be approved for installation, and the General Manager and the Secretary be authorized to sign the aforementioned agreement (Supplement LXXI) to furnish a potable water supply in Water District No. 71. The geographical area of Water District No. 71 is as follows: Pine-Dell Subdivision Lots 1 thru 61 To provide a potable water supply within the proposed new district requires the installation of 4,715 feet of water main and fire hydrants at an estimated cost of $125,937.65. The main extension will serve sixty-one (61) residential customers. One-time connection fees will amount to$34,160.00. Estimated annual revenue is $18,300.00. Water mains to be installed in Summer/Fall of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, J. D. Wolfe Assistant General Manager JDW/bg May 28, 1991 58 Resolution No. 91-5-7 TREASURER/CONTROLLER RESOLVED: That the Board of Water and Light Commissioners hereby indicate their support of cost based rates for the sewage disposal system. That the Board of Water and Light recommends that City Council change the sewer ordinance to clearly exempt from sewer charges water used that does not enter the sanitary sewer system. That staff be directed to recommend changes to the ordinance that would facilitate this change. -------------------- Recommended By: 7�) ovr.0,w -5I- AEI q J Dana W. Tousley, Treasurer/Controller - Date Approved by: D. Wolfe,assistant General Manager - Date Date Resolved by Board Action: May 28, 1991 59 May 28, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-5-1 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolutions 91-5-2 and 91-5-3 (Treasurer/Controller) of the General Manager's Recommendations be approved. Assistant General Manager Wolfe commented on Resolution 91-5-3. He stated that he has been advised by Staff Attorney Larry Wilhite that the sale of BWL scrap metal to Friedland Industries needs to be reviewed to determine if the company is in possible default. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER O'LEARY RESOLVED, That the motion be amended authorizing the bid on Resolution 91-5-3, pertaining to the sale of scrap metal, to be awarded to the second low bidder; namely, Padnos Iron and Metal, in the event Friedland Industries is found to be in default. Adopted unanimously. Chairman Hassler announced that an addendum (Resolution 91-5-7) to the General Manager's Recommendations has been presented for consideration. Assistant General Manager Wolfe reported that the City Council is considering changes to the sewer ordinance. Resolution 91-5-7 would support the move to cost based rates and asks for changes that facilitate removing sewer charges on water usage that does not enter the sanitary sewer system. There being no objection, the resolution was added to the agenda under the Water items. Treasurer/Controller Tousley reported that City Council will be reviewing sewer rates in June. A cost of service study recommends a 9 percent increase in sewer revenue. He handed out an analysis of current and proposed sewer rate changes under consideration by the City Council. He noted that current language in the City Ordinance implies that water used for irrigation purposes is exempt from sewer charges. The focus of the ordinance needs to clearly state that water not entering the sanitary sewer system and is separately metered is exempt from sewer charges. Treasurer/Controller Tousley noted that this topic was highlighted at the Board's joint dinner meeting with City Council held on February 26, 1991. The City Council is expected to hold a public hearing on June 10, 1991, to consider changes to the sewer ordinance. May 23, 1991 60 BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-5-4, 91-5-5, 91-5-6, and 91-5-7 (Water Utility), respectively, of the General Manager's Recommendations be approved. RESOLVED FURTHER, That the rule changes for Resolutions 91-5-4 and 91-5-5 take effect July 1, 1991. Adopted by the following vote: Yes: Commissioners Hassler, Sebolt, Strolle, O'Leary, Williams -5 Nay: Commissioner Belen Absent: Commissioner Evans Commissioner Belen expressed concern with Resolution 91-5-7, particularly with the process in which the Board is communicating its support for changes to the sewer ordinance. She suggested a less formal approach encouraging open exchange between the Commissioners and the City Council in lieu of a resolution. GENERAL MANAGER'S REMARKS In General Manager Pandy's absence, Assistant General Manager Wolfe and staff reported on the following activities: Status on Water Utility Shutoffs: Consumer Services Director Terry Graham presented an update on Water Utility shutoffs. He reported that on April 1, 1991, the State of Michigan stopped paying State Department of Social Service (DSS) clients past due water bills through its Emergency Needs Program. On May 17, 1991, at 5:05 p.m., Ingham County Circuit Court Judge Giddings issued a temporary restraining order against DSS and the State Department of Public Health ordering DSS to continue paying past due water bills under the Emergency Needs Program. Judge Giddings' action was in response to a lawsuit filed by Michigan Legal Services on behalf of several DSS clients. The Judge has scheduled a show cause hearing for June 4, 1991, at which time DSS will have to show why they should stop paying past due water bills. Currently there are 1,600 DSS clients with past due water bills, totaling $187,000. Of the total, $82,000 represents water customers and $105,000 represents sewerage customers. Mr. Graham pointed out that at this time, all DSS customers have water service. Mr. Graham also reported that a bill stuffer program began on May 15 asking BWL customers to donate to St. Vincent de Paul. A total of$800 was raised during the three-day period prior to Judge Giddings order on May 17. In addition, several BWL employees contacted some area churches and received donations for St. Vincent de Paul. Finally, an "Onlooker" column on the subject brought in another $1,200 to St. Vincent de Paul. Mayor McKane Corresponds with the Governor on Water Shut-off Concerns. Assistant General Manager Wolfe referred to a copy of a letter, dated May 21, 1991, written by Mayor McKane to Governor Engler urging that immediate steps be taken to assure that water "continues to flow into all the households of Michigan." In his letter, the Mayor stresses the impact on the greater Lansing area of the policy of the DSS to no longer provide financial assistance to citizens who cannot afford to pay their water bills. 61 May 28, 1991 City Attorney's Opinion Regarding Authority to Operate a District Cooling System. City Attorney Alvan Knot has rendered an opinion in regards to the BWL's authority to establish a district cooling system. The opinion, based on Lansing City Charter provisions, states that City Council approval is required for the BWL to proceed with the formation of a district cooling system. The Mayor will be submitting the opinion to City Council for discussion. .Share the Success (STS) Update. The STS report through April, 1991, stands at 434 points. This is the second time in three months that the Share the Success program registered a record number of points. Assistant General Manager Wolfe gave an overview of the measures and point allocations. He noted that the STS results show that BWL employees are responding to the organization's attempts to improve services and reduce costs. Customer Attitude Survey. The results of this year's Customer Attitude Survey will be presented to the Board at the next regular meeting. Status Report on Cresap's Diagnostic Evaluation. Cresap management consultants are in the process of interviewing management staff. Results of their diagnostic evaluation on the systems, operations and management of the BWL support services will be completed in July. Twenty-Five Year Awards Dinner. Seventeen employees who have completed 25 years of employment at the BWL will be honored at the annual awards dinner on May 30. Personnel Committee Meeting. The Personnel Committee will be meeting on June 5, 1991, at 12 Noon to review (1) the Pension Plan investments and (2) proposed Non-Bargaining Unit Compensation and Wage and Salary Plan for Fiscal 1992. Board Commissioner Nomination to Vacant Board Position. Mayor McKane has nominated Ernest J. Christian as a Second Ward appointment to replace Commissioner E. Lane Jessop who passed away February 19, 1991. Mr. Christian is scheduled to be interviewed by City Council Members at their Committee of the Whole meeting on May 30. If approved, the Committee of the Whole will submit their recommendation at the June 3 City Council meeting for ratification. REMARKS BY BOARD COMMISSIONERS Eckert/Moores Park Safety Inspection. Commissioner Williams commended all employees of the Eckert/Moores Park Plant for their excellent performance during a recent inspection conducted by the Michigan Occupational Safety and Health Agency (MIOSHA). Inspection results showed significant improvement as compared to last year. May 2%, 1991 62 Newsletter Article on Belle River Power. Commissioner Hassler commented on the May, 1991) BWL Newsletter article on Belle River. He remarked that it was an excellent summary to inform the public on the status of Lansing's Belle River entitlement. On motion of Commissioner O'Leary, the Board adjourned at 6:08 p.m. Mary E ova, Secretary Filed:May 31, 1991 James D. Blau, City Clerk March 26, 1991 21 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, March 26, 1991 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, O'Leary, Sebolt, and Williams - 6 Absent: Commissioner Strolle -1 The Secretary declared a quorum present. Assistant General Manager Wolfe, 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 � °7 eo -< BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS ; =; That minutes of regular session of February 26, 1991 be approved as mailed. ' "fl rn. U- Adopted unanimously. �, c PUBLIC COMMENTS ro N 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 A letter of thanks for the Board's expression of sympathy was received from the family of the late Commissioner E. Lane Jessop. Placed on file. Chairman Hassler reported that the Board's memorial resolution for E. Lane Jessop was personally delivered to his widow, Virginia Jessop. Mrs. Jessop asked that her sincere appreciation be conveyed to the Commissioners. 22 March 26, 1991 March 26, 1991 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: COMMUNICATIONS/MARKETING Res. No. 91-3-1 That the Commerce Center Building, 300 S. Capitol, be granted a four month waiver from the requirement of Electric Primary Service Rate 5,that the customer pay not less than 60%of the highest registered demand during the on-peak period in the preceding eleven months. Also,that the Commerce Center be billed for actual registered demand beginning with the bill rendered in March, 1991, and continuing through the bill rendered in June, 1991. -------------------- In May, 1990,the Commerce Center established a 17-month-high demand of 1,509 KW. For seven of the ensuing nine months,it has been subject to the 60%ratchet charge due to the loss in June, 1990, of its largest tenant,the Michigan Department of Social Services (DSS). DSS rented 220,000 square feet of the building's 245,000 square feet of rentable space. This action will provide temporary rate relief to a valued customer during a time of extreme economic hardship. The action will not relieve the Commerce Center from paying for actual demands that it registers during this period, nor is it relieved from paying energy charges established in Rate 5. Staff estimates that the impact on electric revenue will be approximately$12,000 if the resolution is approved. -------------------- HUMAN RESOURCES Res. No. 91-3-2 That Ken Mier, a Power Plant Operator B-- Water Treatment in Eckert Station Operations, be awarded a total of$138.20 for suggestion proposal number 1991-063, to install a hose in the Eckert demineralizer bed vessel for more efficient resin changes and to use old tankers as receptacles for the waste resin. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$632.00 in the first year. -------------------. March 26, 1991 23 PENSION Res. No. 91-3-3 That Gerald H. Longcor, Parts Controller in Production Maintenance, be placed on a disability pension of$449.21 per month effective August 21, 1990. He has selected Option IV (disability with Workers' Comp. offset) with the provision that after his death, if his wife, Peggy J. Longcor, survives hun she will receive $449.21 per month for the rest of her life. If his wife predeceases him,the pension amount of$449.21 will revert back to the regular pension amount of$520.54 for the rest of his life. -------------------- Mr. Longcor has worked for the BWL for 11.83 years and is 51 years of age. -------------------- TREASURER/CONTROLLER Res. No. 91-3-4 Authorize the sale of three Board-owned vehicles, which have been replaced, through competitive bids. The vehicles to be sold are BWL vehicles #9, #82 and#312. -------------------- An itemized list of the obsolete vehicles to be sold is on file with the Corporate Secretary. -------------------- Res. No. 91-3-5 That the attached chilled water rate schedule be adopted and effective April 15, 1991. Rate No. 1 - General Chilled Water Service (See Page 26) -------------------- Staff is reviewing the rates based on input received at the hearing. -------------------- 24 March 26, 1991 TREASURER/CONTROLLER Continued Res. No. 91-3-6 Resolved that the sewerage billing and collection reimbursement factor will be determined as follows: Effective 7-1-91 40% Effective 7-1-92 45% Effective 7-1-93 50% -------------------- This is intended to provide for the equitable sharing of expenses between the Board and the City. -------------------- WATER Res. No. 91-3-7 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$34,890.00 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 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. Further,that upon receipt of the sum of$34,890.00 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. March 26, 1991 25 WATER (Continued) (Res. No. 91-3-7) To provide a potable water supply within the proposed new district requires the installation of 1,500 feet of water main and hydrants at an estimated cost of $34,890.00. The main extension will serve 23 residential customers. One-time connection fees will amount to $12,880.00. Estimated annual revenue is $6,900.00 Water mains to be installed in Spring of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, L� Joseph Pandy,Jr. General Manager JP/bg 26 March 26, 1991 Board of Water and Light, Lansing, Michigan Original Sheet No. CB1 GENERAL CHMLED WATER SERVICE RATE NO. 1 Availability -This rate is available to any customer desiring service from the Board of Water and Light(BWL) district cooling system. Service will be provided upon the customer entering into a contract with the BWL. The contract will govern the customer's contract demand and terms and conditions of service, which may vary due to customer requirements and the impact on BWL facilities. This rate is not available for standby or emergency service. Monthly Rate- Shall be computed in accordance with the following charges: Capacity Charge: $26.90 per ton for all tons of billing demand less than or equal to 105% of the contract demand, and $36.90 per ton for all tons exceeding 105% of the contract demand. Commodity Charge: $0.0910 per ton-hr 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 Monthly Charge-The capacity charge included in the rate. Billing Demand-The billing demand shall be the maximum demand(tons) supplied during the 15-minute period of maximum use, but not less than 85% of the contract demand. Temperature Factor Adiustment-During the months of May through October: if the customer's return water temperature is below 57 degrees Fahrenheit(F), the customer's commodity charge will be increased by 2.0% for either; (1) each degree Fahrenheit the customer's supply and return water temperature differential is less than 15' F or, (2) each degree Fahrenheit the customer's return water temperature is below 57° F, whichever is less. Metering -All services using chilled water from the BWL chilled water system shall be metered. The BWL shall, through consultation with the customer, determine the form in which the commodity shall be metered. 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 BWL Rules and Regulations for Chilled Water Service which are incorporated herein by this reference. Adopted: March 26, 1991 Effective: April 15, 1991 March 26, 1991 27 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS RESOLVED, That Resolution 91-3-1 (Communications/Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER EVANS RESOLVED, That Resolution 91-3-2 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. I BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-3-3 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-3-4, 91-3-5 and 91-3-6, respectively, (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. . BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-3-7 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. NEW BUSINESS April Board Meeting Rescheduled. Due to schedule conflicts, the regular meeting of April 23 was rescheduled to be held on Tuesday, April 30, 1991, at 5:30 p.m. GENERAL MANAGER'S REMARKS In the absence of General Manager Pandy, the following activities were reported by Assistant General Manager Wolfe: Preliminary 1991-92 Budget Review. The next Committee of the Whole meeting will be held on Tuesday, April 9, at 5:30 p.m. Staff will present the preliminary overview of the Fiscal 1991-92 Budget. 28 March 26, 1991 Circuit Court Ruling on Electric Service to Watertown Township. Clinton County Circuit Judge Timothy M. Green has upheld the right of the Board of Water and Light to serve electricity to customers in Watertown Township. Judge Green rejected a suit filed by Consumers Power Company challenging the BWL's right to serve customers in the township. The ruling confirms the BWL's right to continue serving its existing customers in the township and to offer its electric service to new development in Watertown. It was noted that Consumers Power Company has twenty days to appeal. Public Hearine on the City's Combined Sewer Overflow Control Project Plan. A notice from the City of Lansing has been received regarding a public hearing on the Draft Project Plan for Combined Sewer Overflow Control Facilities. The project is proposed to be constructed over a 30-year period at a total estimated cost of$176 million. The public hearing will be held on April 17, 1991, at 7 p.m. in the Gardner Middle School auditorium. The BWL will be represented to comment on the impact the project plan will have on water usage and water bills if these costs are passed on through the sewer bills. APPA Safety Award. The BWL received the APPA 1990 Safety Award for Third Place, Group F, for public power systems having worked 1,000,000 to 1,999,999 worker-hours per year. The award will be displayed throughout the BWL system, and an article will appear in the next issue of WATTS AND DROPS. The Commissioners commended staff for their excellent safety efforts. Share the Success Update. The Share the Success (STS) report through January, 1991, stands at 402 points. The preliminary STS total through February, 1991, indicates a total of 415 points, a gain of 13 points. This appears to be the best score ever received at this late period in the fiscal year. It was noted that recommendations will be submitted at the next Board meeting regarding a couple of proposed adjustments to the performance measures. The steam heat availability measure was cited as one example. Moores Park Station is scheduled to be shut down for scheduled maintenance from May to July--this was not reflected in the Fiscal 1990-91 STS performance measures approved by the Board on November 27, 1990. BWL Line Worker Relief Efforts for Public Service in Kokomo. Indiana. On March 18, the BWL sent 17 Line Workers to assist in electrical service restoration efforts to the Kokomo, Indiana area. The assistance was offered after a major ice storm swept through central Indiana. The Line crew, who reported back to work in Michigan on March 26, worked 16 hours per day for six days straight while in Kokomo. Costs are expected to be fully recovered. Following discussion, it was suggested that a press release regarding the BWL's relief efforts be sent to APPA for the PUBLIC POWER magazine. Commissioner Belen commented that it would be appropriate for the BWL to recognize the 17 Line Workers for their dedicated assistance under adverse conditions to Public Service of Indiana. Erickson Station Maintenance. Erickson Station is scheduled for its 18-month routine maintenance. The four-week outage will start April 1. Maintenance work will include modifications to Erickson's precipitators. Fuel costs are expected to be slightly impacted, since Erickson Station is the BWL's most efficient unit. Michigan Municipal Cooperative Group (MMCG) Press Kit. The Commissioners received a MMCG press kit to clarify the issues involved between MMCG and Consumers Power Company (CPCO). MMCG is engaged in major efforts to obtain equal transmission access with CPCO and other major investor-owned utilities. Unless MMCG obtains adequate transmission rights, its systems may be disadvantaged permanently in obtaining economic power supply. The press kit was put together by BWL Communications and Marketing Director John Strickler, Craig Bon of Wolverine Power Supply Cooperative, and Jon Hofman of Michigan Municipal Electric Association (MMEA) to provide information regarding this Ll ch 26, 1991 litigation in a simplified form. Copies of the press have been sent to various news costs t date and procedural steps coming g Assistant General Manager Wolfe reported Decisions B to an end relative to FERC hearings. D.ties w ll be continuing inoother forms--such f as t year. In the meantime a number of other act rove the transferring of the license of Nuclear Regulatory Commission, which has to app Palisades from CPCO to the Palisades Generating Company. REMARKS BY BOARD COMMISSIONERS Commissioner Belen inquired if staff has heard any discussion r She expressed oissues ofn ern that ion as voiced by the Mayor during his state of the budget staff be cognizant of any issues relative to privatization that may be raised by the city. Plant Commissioner Sebolt inquired on the status of Dp�Water aryrasked how the detailed portionof restoration and facade construction. Commissioner some of the exterior building architecture would be preserved. s. water Utility Director Clyde reporte the nextject isfew c rre tlHe expl in the ained that some of the Reconditioning work will proceed within work will involve replication with the facade that is going over the surface. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER EVANS That the absence of Commissioner Strolle be excused. Adopted unanimously. PUBLIC COMMENTS Mr. Alwin Schmid, Manager of the Commerce Center, thanked o the Bw staff for their sioners for considering the demand reduction (Resolution 91-Mar assistance; namely, General Manager Joe Pandy, Marketing Manager Mark Taylor, and Marketing Analyst Linda Rasor-Loerke. On motion of Commissioner O'Leary, the Board adjourned at 6:03 p.m. )9!�' Mary E Sova, Secretary Filed: March 27, 1991 James D. Blair, City Clerk March 26, 1991 21 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, March 26, 1991 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, O'Leary, Sebolt, and Williams - 6 Absent: Commissioner Strolle -1 The Secretary declared a quorum present. Assistant General Manager Wolfe, 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 ! c7 BY COMMISSIONER SEBOLT-- 00 SECONDED BY COMMISSIONER WILLIAMS ; 3 That minutes of regular session of February 26, 1991 be approved as comailed. c= Adopted unanimously. u' 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 COMMUNICATIONS A letter of thanks for the Board's expression of sympathy was received from the family of the late Commissioner E. Lane Jessop. Placed on file. Chairman Hassler reported that the Board's memorial resolution for E. Lane Jessop was personally delivered to his widow, Virginia Jessop. Mrs. Jessop asked that her sincere appreciation be conveyed to the Commissioners. 22 March 26, 1991 March 26, 1991 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: COMMUNICATIONS/MARKETING Res. No. 91-3-1 That the Commerce Center Building, 300 S. Capitol,be granted a four month waiver from the requirement of Electric Primary Service Rate 5,that the customer pay not less than 60%of the highest registered demand during the on-peak period in the preceding eleven months. Also, that the Commerce Center be billed for actual registered demand beginning with the bill rendered in March, 1991, and continuing through the bill rendered in June, 1991. -------------------- In May, 1990,the Commerce Center established a 17-month-high demand of 1,509 KW. For seven of the ensuing nine months, it has been subject to the 60%ratchet charge due to the loss in June, 1990, of its largest tenant,the Michigan Department of Social Services (DSS). DSS rented 220,000 square feet of the building's 245,000 square feet of rentable space. This action will provide temporary rate relief to a valued customer during a time of extreme economic hardship. The action will not relieve the Commerce Center from paying for actual demands that it registers during this period, nor is it relieved from paying energy charges established in Rate 5. Staff estimates that the impact on electric revenue will be approximately$12,000 if the resolution is approved. -------------------- HUMAN RESOURCES Res. No. 91-3-2 That Ken Mier, a Power Plant Operator B-- Water Treatment in Eckert Station Operations, be awarded a total of$138.20 for suggestion proposal number 1991-063, to install a hose in the Eckert demineralizer bed vessel for more efficient resin changes and to use old tankers as receptacles for the waste resin. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$632.00 in the first year. -------------------- March 26, 1991 23 PENSION Res. No. 91-3-3 That Gerald H. Longcor, Parts Controller in Production Maintenance, be placed on a disability pension of$449.21 per month effective August 21, 1990. He has selected Option IV (disability with Workers' Comp. offset) with the provision that after his death, if his wife, Peggy J. Longcor, survives him she will receive $449.21 per month for the rest of her life. If his wife predeceases him, the pension amount of$449.21 will revert back to the regular pension amount of$520.54 for the rest of his life. -------------------- Mr. Longcor has worked for the BWL for 11.83 years and is 51 years of age. -------------------- TREASURER/CONTROLLER Res. No. 91-3-4 Authorize the sale of three Board-owned vehicles, which have been replaced, through competitive bids. The vehicles to be sold are BWL vehicles#9, #82 and#312. -------------------- An itemized list of the obsolete vehicles to be sold is on file with the Corporate Secretary. -------------------- Res. No. 91-3-5 That the attached chilled water rate schedule be adopted and effective April 15, 1991. Rate No. 1 - General Chilled Water Service (See Page 26) -------------------- Staff is reviewing the rates based on input received at the hearing. -------------------- 24 March 26, 1991 TREASURER/CONTROLLER Continued Res. No. 91-3-6 Resolved that the sewerage billing and collection reimbursement factor will be determined as follows: Effective 7-1-91 40% Effective 7-1-92 45% Effective 7-1-93 50% -------------------- This is intended to provide for the equitable sharing of expenses between the Board and the City. -------------------- WATER Res. No. 91-3-7 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 $34,890.00 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 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. Further,that upon receipt of the sum of $34,890.00 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. March 26, 1991 25 WATER (Continued) (Res. No. 91-34) To provide a potable water supply within the proposed new district requires the installation of 1,500 feet of water main and hydrants at an estimated cost of $34,890.00. The main extension will serve 23 residential customers. One-time connection fees will amount to$12,880.00. Estimated annual revenue is $6,900.00 Water mains to be installed in Spring of 1991 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, -a�tt11__. K Joseph Pandy,Jr. General Manager JP/bg 26 March 26, 1991 Board of Water and Light,Lansing, Michigan Original Sheet No. CB1 GENERAL CHILLED WATER SERVICE RATE NO. 1 Availability -This rate is available to any customer desiring service from the Board of Water and Light(BWL) district cooling system. Service will be provided upon the customer entering into a contract with the BWL. The contract will govern the customer's contract demand and terms and conditions of service, which may vary due to customer requirements and the impact on BWL facilities. This rate is not available for standby or emergency service. Monthly Rate- Shall be computed in accordance with the following charges: Capacity Charge: $26.90 per ton for all tons of billing demand less than or equal to 105% of the contract demand, and $36.90 per ton for all tons exceeding 105% of the contract demand. Commodity Charge: $0.0910 per ton-hr 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 Monthly Charge-The capacity charge included in the rate. Billing Demand -The billing demand shall be the maximum demand(tons) supplied during the 15-minute period of maximum use, but not less than 85% of the contract demand. Temperature Factor Adjustment-During the months of May through October: if the customer's return water temperature is below 57 degrees Fahrenheit(F), the customer's commodity charge will be increased by 2.0% for either; (1) each degree Fahrenheit the customer's supply and return water temperature differential is less than 15" F or, (2) each degree Fahrenheit the customer's return water temperature is below 57° F, whichever is less. Metering - All services using chilled water from the BWL chilled water system shall be metered. The BWL shall, through consultation with the customer, determine the form in which the commodity shall be metered. 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 BWL Rules and Regulations for Chilled Water Service which are incorporated herein by this reference. Adopted: March 26, 1991 Effective: April 15, 1991 March 26, 1991 27 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS RESOLVED, That Resolution 91-3-1 (Communications/Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER EVANS RESOLVED, That Resolution 91-3-2 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-3-3 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-3-4, 91-3-5 and 91-3-6, respectively, (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-3-7 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. NEW BUSINESS April Board Meeting Rescheduled. Due to schedule conflicts, the regular meeting of April 23 was rescheduled to be held on Tuesday, April 30, 1991, at 5:30 p.m. GENERAL MANAGER'S REMARKS In the absence of General Manager Pandy, the following activities were reported by Assistant General Manager Wolfe: Preliminary 1991-92 Budget Review. The next Committee of the Whole meeting will be held on Tuesday, April 9, at 5:30 p.m. Staff will present the preliminary overview of the Fiscal 1991-92 Budget. 28 March 26, 1991 Circuit Court Ruling on Electric Service to Watertown Township. Clinton County Circuit Judge Timothy M. Green has upheld the right of the Board of Water and Light to serve electricity to customers in Watertown Township. Judge Green rejected a suit filed by Consumers Power Company challenging the BWL's right to serve customers in the township. The ruling confirms the BWL's right to continue serving its existing customers in the township and to offer its electric service to new development in Watertown. It was noted that Consumers Power Company has twenty days to appeal. Public Hearing on the City's Combined Sewer Overflow Control Proiect Plan. A notice from the City of Lansing has been received regarding a public hearing on the Draft Project Plan for Combined Sewer Overflow Control Facilities. The project is proposed to be constructed over a 30-year period at a total estimated cost of$176 million. The public hearing will be held on April 17, 1991, at 7 p.m. in the Gardner Middle School auditorium. The BWL will be represented to comment on the impact the project plan will have on water usage and water bills if these costs are passed on through the sewer bills. APPA Safety Award. The BWL received the APPA 1990 Safety Award for Third Place, Group F, for public power systems having worked 1,000,000 to 1,999,999 worker-hours per year. The award will be displayed throughout the BWL system, and an article will appear in the next issue of WATTS AND DROPS. The Commissioners commended staff for their excellent safety efforts. Share the Success Update. The Share the Success (STS) report through January, 1991, stands at 402 points. The preliminary STS total through February, 1991, indicates a total of 415 points, a gain of 13 points. This appears to be the best score ever received at this late period in the fiscal year. It was noted that recommendations will be submitted at the next Board meeting regarding a couple of proposed adjustments to the performance measures. The steam heat availability measure was cited as one example. Moores Park Station is scheduled to be shut down for scheduled maintenance from May to July--this was not reflected in the Fiscal 1990-91 STS performance measures approved by the Board on November 27, 1990. BWL Line Worker Relief Efforts for Public Service in Kokomo, Indiana. On March 18, the BWL sent 17 Line Workers to assist in electrical service restoration efforts to the Kokomo, Indiana area. The assistance was offered after a major ice storm swept through central Indiana. The Line crew, who reported back to work in Michigan on March 26, worked 16 hours per day for six days straight while in Kokomo. Costs are expected to be fully recovered. Following discussion, it was suggested that a press release regarding the BWL's relief efforts be sent to APPA for the PUBLIC POWER magazine. Commissioner Belen commented that it would be appropriate for the BWL to recognize the 17 Line Workers for their dedicated assistance under adverse conditions to Public Service of Indiana. Erickson Station Maintenance. Erickson Station is scheduled for its 18-month routine maintenance. The four-week outage will start April 1. Maintenance work will include modifications to Erickson's precipitators. Fuel costs are expected to be slightly impacted, since Erickson Station is the BWL's most efficient unit. Michigan Municipal Cooperative Group (MMCG) Press Kit. The Commissioners received a MMCG press kit to clarify the issues involved between MMCG and Consumers Power Company (CPCO). MMCG is engaged in major efforts to obtain equal transmission access with CPCO and other major investor-owned utilities. Unless MMCG obtains adequate transmission rights, its systems may be disadvantaged permanently in obtaining economic power supply. The press kit was put together by BWL Communications and Marketing Director John Strickler, Craig Borr of Wolverine Power Supply Cooperative, and Jon Hofman of Michigan Municipal Electric Association (MMEA) to provide information regarding this 29 larch 26, 1991 litigation in a simplified form. Copies of the press kit have been sent to various news media. Assistant General Manager Wolfe reported on BWL costs to date and procedural steps coming to an end relative to FERC hearings. Decisions on this case are not expected before one year. In the meantime number son, whichlties will be continuin in other forms--such as has to approve the tra he Nuclear Regulatorynsferring of he license of Palisades from CPCO to the Palisades Generating Company. REMARKS BY BOARD COMMISSIONERS Commissioner Belen inquired if staff has heard any discussion regarding issues of privatization as voiced by the Mayor during his state of the budget remarks. She expressed concern that staff be cognizant of any issues relative to privatization that may be raised by the city. Commissioner Sebolt inquired on the status of the Dye Water Conditioning Plant exterior restoration and facade construction. Commissioner O'Leary asked how the detailed portion of some of the exterior building architecture would be preserved. Water Utility Director Clyde reported that the project is currently in the preliminary stages. Reconditioning work will proceed within the next few months. He explained that some of the work will involve replication with the facade that is going over the surface. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER EVANS That the absence of Commissioner Strolle be excused. Adopted unanimously. PUBLIC COMMENTS Mr. Alwin Schmid, Manager of the Commerce Center, thanked the Commissioners for considering the demand reduction (Resolution 91-3-1). He also thanked BWL staff for their assistance; namely, General Manager Joe Pandy, Marketing Manager Mark Taylor, and Marketing Analyst Linda Rasor-Loerke. On motion of Commissioner O'Leary, the Board adjourned at 6:03 p.m. .' 4L 4M Mary E Sova, Secretary Filed: March 27, 1991 James D. Blair, City Clerk '0 April 30, 1991 MINUTES OF BOARD OF COMNIISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, April 30, 1991 The Board of Commissioners met in rescheduled 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, O'Leary, Sebolt, Strolle, and Williams - 7 Absent: None Board Vacancy: (1) The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Secretary Sova and Staff members were present. -< i The Invocation was given by Chairman Hassler. �• ,:, The Pledge of Allegiance was said by all. t ; APPROVAL OF 1VIINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS oo s That minutes of regular session of March 26, 1991 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. Lloyd Teets, 116 E. Elm, Lansing, spoke regarding the small claims suit in the amount of$580.40 initiated by the Board of Water and Light (BWL) against defendant Lloyd Teets as remedy for exhausted collection efforts. Mr. Teets reported that the BWL did not comply with his request to produce sixteen witnesses to appear at the hearing in Small Claims Court on his behalf. He stated that BWL Staff Attorney Lawrence Wilhite had written to him advising that the BWL would only voluntarily produce those witnesses necessary to prove its claim. Mr. Teets stated that on that basis he was left with no alternative but to "bump it up to the Civil Division of District Court", adding that he now has the opportunity to file a counter claim and seek remuneration for damages. Mr. Teets claimed he has spent approximately $15,000 in time and effort on a April 30, 1991 31 disputed amount of$19.94. In summary, Mr. Teets made the following points: 1) He disputes the accuracy of the BWL's claim of$580.40, (2) he acknowledged owing only $560.46, (3) that he is only disputing an amount of$19.94, from a billing rendered at 4501 In ham Street (property now demolished), and (4) that the BWL collected the subject $19.94 illegally. (Additional remarks made in response to an inquiry made by Commissioner Williams--see page 5L) COMMUNICATIONS A thank you note was received from Mrs. Virginia Jessop expressing her appreciation for the Board's memorial resolution honoring her late husband and BWL Commissioner, E. Lane Jessop. Placed on file. FINANCE COMMITTEE REPORT April 30, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Finance Committee met with the Internal Auditor on March 26, 1991, to receive a quarterly update report. Committee members present were Commissioners Belen, Evans, Hassler, Williams, and O'Leary (alternate). At the last Internal Audit update on January 22, 1991, Internal Auditor Kellie Willson was directed to submit a proposed plan addressing systems consulting needs utilizing the expertise of Internal Auditing staff. The goal of Internal Auditing has been to improve controls and to help make the BWL more efficient and effective. An operational approach has been used in the past. Internal Auditing will now also move toward balancing the following BWL needs: 1. Traditional audit responsibilities 2. Systems consulting work 3. Management and staff education about controls Following discussion, it was the consensus of the committee that emphasis on education and self-assessment by management will improve understanding of controls and will result in a greater commitment to maintaining them. $2 April 30, 1991 BY THE FINANCE COMMITTEE Resolution 91-4-1 Internal Audit Approach RESOLVED, That the following new INTERNAL AUDIT approach recommendations be approved: Risk AnWyjis ■ Continue to meet with top managers regularly to understand their concerns and to monitor areas of risk. ■ Perform a formal risk analysis of BWL and update it annually. Education and Self Assessment ■ Develop materials and approaches to help managers and staff evaluate the efficiency and effectiveness of their area. ■ Develop and conduct a pilot self-assessment workshop. The focus should be on helping managers and staff improve the efficiency and effectiveness of their areas. ■ Help departments and divisions to develop self-assessment tools. Systems and Procedures ■ Perform systems and procedures consulting. However, this will be used as temporary assistance to management. It will be used when there is agreement that this approach is necessary to design solutions or implement recommendations effectively. ■ Identify for the external auditors the lack of independence where they might otherwise rely on the work of the Internal Auditors. Traditional Auditing ■ Continue to use traditional audits to verify that formal control mechanisms exist and they are functioning effectively. ■ Use traditional audits to verify and document the nature and extent of known problems. April 30, 1991 33 General ■ Use existing Internal Audit staff and resources to develop this new approach. ■ Work jointly with other areas within BWL, as appropriate, on each of the above. ■ Assess the impact on resources after gaining experience with these techniques. Respectfully submitted, Phillip E. Hassler, Chairman Finance Committee BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER SEBOLT That the Finance Committee Report, including Resolution 91-4-1, be approved as presented. Adopted unanimously. COMMTI'TEE OF THE WHOLE REPORT April 30, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met with staff on April 9, 1991 to review the preliminary Fiscal 1991-92 budget and to receive a report on the Board of Water and Light's (BWL) financial position. Present were Commissioners Belen, Evans, Hassler, Sebolt, Strolle, and Williams (Chair Pro Tem). Absent was Commissioner O'Leary. General Manager Pandy reported that financial problems facing other businesses in the Lansing area has had a major impact on BWL revenues. Sales are down and expenses are up. A four-part strategy for maintaining the utility's financial stability, while minimizing the impact on employees and customers, will involve a combination of the following options: 1. Budget reductions 2. Moderate rate increases 3. Borrowing approximately $30 million by issuing bonds for major capital improvements 4. Right-sizing, to study the structure of the BWL to meet future challenges 34 April 30, 1991 FISCAL YEAR 1991-92 BUDGET Budget Cuts. General Manager Pandy presented a proposed operating budget by category for Fiscal 1992. The proposed budget is .6% lower than the Fiscal 1991 budget. The budget, excluding fuel, is down 4.7% from the 1991 budget. This is quite an achievement considering relatively flat sales, inflation in the 4-5% range, increased purchased power costs (+$6 million), and wage and salary increases during the prior year (+$2 million). The new budget funds 34 fewer positions than the current budget. Two programs for achieving cuts without resorting to layoffs will involve (1) Employee Pooling and (2) Voluntary Work Reduction Options. Spending on capital projects will also be cut 8% to under $31 million in Fiscal 1992. Discontinue Appliance Repair Program. The BWL Appliance Repair Service began on September 8, 1947 by Board action. Average BWL repairs over the past years have been over 1000 for small appliances and over 300 for major appliances. Internal studies have shown that this program is no longer cost effective. Resolution 91-4-2 Discontinue Appliance Repair Service RESOLVED, That the following action plan be implemented: 1. Discontinue the Outside Major Appliance Repair Service by June 1, 1991. 2. Discontinue the Inside Small Appliance Repair Service by June 1, 1991. 3. That repair statements unpaid as of June 30, 1991, be added to the customer's electric account. Resolution 91-4-3 Fiscal 1991-92 Budget RESOLVED, That the annual budget covering Fiscal 1991-92 be approved as presented (see Attachment A). FURTHER RESOLVED, That the Capital Projects in Exhibit 3 of the budget booklet be authorized in the amount of the project estimate. Capital expenditures for Fiscal 1991-92 are limited to the amount included in the budget. ANNUAL REVIEW OF ELECTRIC, WATER, AND STEAM REVENUES Treasurer/Controller Dana Tousley presented the results of an annual study on long-term revenue requirements. The purpose of the study was to determine if overall rate levels are adequate to meet revenue requirements. pril 30, 1991 Resolution 91-4-4 Plans to Imr)lement Electric Rate Increases RESOLVED, That the BWL proceed with plans to implement electric revenue increases effective January 1, 1992, 1993 and 1994. The minimum revenue increase required is 4.5% to 6.0% each year. The exact rate increase for each customer class will be determined by the latest cost of service study. Staff will have a rate study prepared by September 1991 to begin the rate process. FURTHER RESOLVED, That staff be authorized to proceed with plans for a bond issue sometime in calendar year 1992. RIGHT-SIZING General Manager Pandy gave an overview of the "right-sizing" concept and its relevance to the BWL. A proposed plan to evaluate how the BWL is structured to meet the organization's long-term goals was presented. The study would analyze various staff functions to determine if significant opportunities exist for a more cost-effective operation and to address the needs of our customers in future years. The diagnostic review will require six to seven weeks to complete. Cresap's proposal letter, dated April 5, 1991, was reviewed with the Board as the basis for structuring an agreement for this work. Resolution 91-4-5 Authorization to Retain Cresap. Management Consultants RESOLVED, That the management consulting firm of Cresap, a Towers Perrin company, be retained to conduct a diagnostic evaluation of BWL support services. The consultants would conduct an objective, diagnostic evaluation of the systems, operations and management of the support services of the BWL. FURTHER RESOLVED, That the scope of the diagnostic evaluation include the following staff functions: ■ Customer Service ■ Communication and Marketing ■ Human Resources ■ Treasurer/Controller ■ Project Engineering ■ Environmental Engineering ■ Information Systems ■ Electric Planning ■ Steam and Water Planning Respectfully submitted, Gerald W. Williams, Chair Pro Tern. Committee of the Whole 36 April 30, 1991 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS That the Committee of the Whole Report, including Resolutions 91-4-2, 91-4-3, 91-4-4, 91-4-5, respectively, be approved as presented. Adopted unanimously. pril 30, 1991 37 ATTACHMENT A BOARD OF WATER AND LIGHT-LANSING MICHIGAN BUDGET-FISCAL YEAR ENDING JUNE 30, 1992 WATER ELECTRIC STEAM TOTAL ------ ------ ------ 1 PROJECTED INCOME STATEMENT FY 92 2 -------------------------------- --------------------------------- 3 OPERATING REVENUE [1] 13,291,634 120, 805,000 11,262,840 145,359,474 4 5 Operation/Maint Expense 10,179,409 100,523,362 9,235,632 119,938,403 6 Depreciation Expense 15,029,000 7 ---------- 8 TOTAL OPERATING EXPENSE 134,967,403 9 ---------- 10 OPERATING INCOME 10,392,071 11 Other Income [2] 7,360,682 12 Other Expense [3] 1,316,645 13 ---------- 14 NET INCOME 16,436,108 15 16 RATE OF RETURN-2/91 RATE BASE 5.2% 17 18 PROJECTED CASH FLOW FY 92 19 20 Restricted Operating Cash [4] 14, 300,000 21 Restricted General Cash [5] 23,914,000 22 Available General Cash 2,153,000 23 Const/Special Project Cash 27,335,000 24 ---------- 25 BEGINNING CASH 7-1-91 67,702,000 26 27 Sources of Cash 28 Net Income 16,436,108 29 Depreciation 15,029,000 30 Deferred Exp & Accrued Int [6] 609,992 31 ---------- 32 TOTAL SOURCES OF CASH 32,075, 100 33 ---------- 34 SOURCES OF CASH + BEGINNING CASH 99,777,100 35 36 Uses of Cash 37 Debt Principal [7] 1,127,212 38 Normal & Major Capital 31,811,000 39 Return on City Equity 4,728,701 40 ---------- 41 TOTAL USES OF CASH 37,666,913 42 43 Restricted Operating Cash 14,943,501 44 Restricted General Cash 25,587,980 45 Available General Cash 2,303,710 46 Const/Special Project Cash 19,274,996 47 ---------- 48 ENDING CASH 6-30-92 62,110,187 ;g April 30, 1991 ATTACHMENT A BOARD OF WATER AND LIGHT - BUDGET FOOTNOTES FISCAL YEAR ENDING JUNE 30, 1992 [1] Revenue based on sales forecast for water (8,981,546 CCF) , Electric (2,451,000 MWH) and Steam (1, 541,808 MLB) . These sales levels are .93% lower, 3.6% higher, and 9.17% higher respectively than the twelve month period ended February 1990. [21 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, 1991 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, 1991 Restricted General Cash balances Belle River Contract $14,267,000 Coal Build-up 1,681,000 Uninsured Losses 7,966,000 Total Restricted General Cash $23,914,000 [61 Five year amortization of deferred expenses for Eckert turbine #1 reblade and Erickson turbine reblade and overhaul. [7] Debt repayment includes principal payment for the 1989 Revenue Bonds, Pension debt, the Lake Lansing land contract, and the Michigan Ash building at Erickson. [8] Normal Capital expenditures represent total amounts estimated for all Distribution projects, and Production, Transmission and Common projects less than $100,000, during Fiscal Year 1992. Major Capital expenditures represent total amounts estimated for Production, Transmission and Common projects greater than $100,000, during Fiscal Year 1992. ;Y 'O ATTACHMENT A BOARD OF WATER i LIGHT - LANSING, MICHIGAN BUDGET FOR FISCAL YEAR ENDING JUNK 30, 1992 DIVISION SUMMARY - OPERATIONS i MAINTENANCE EXPENSE Restated for Budget Comparison ---------------------------------------------------------- Vehicle i Material Production Outside Expenses Net Equipment i Fuels/Cher. Services to be Labor /l/ Charges Supplies Purch Power i Other /2/ Total Water Electric Steam Distributed Total ----- ------- -------- ----------- ------- ----- ----- -------- ----- ----------- ----- IDNIIIISTRATIVE $901,423 $2,400 $17,470 $0 $18,009,221 $18,930,514 $144,518 $1,276,923 $81,101 $17,427,972 $18,930,514 ELECTRIC UTILITY 16,345,759 590,671 2,795,209 57,335,330 2,589,939 79,656,908 0 78,722,886 0 934,022 79,656,908 WATER UTILITY 3,374,877 157,337 310,072 2,005,636 1,335,954 7,183,876 7,183,876 0 0 0 7,183,876 STEIN UTILITY 1,866,340 66,300 385,550 4,687,437 1,353,559 8,359,186 0 0 8,359,186 0 8,359,186 TECHNICAL SERVICES 3,661,994 52,696 791,664 0 1,654,843 6,161,197 0 0 0 6,161,197 6,161,197 HUMAN RESOURCES 614,417 0 23,840 0 153,970 792,227 0 0 0 792,227 792,227 ENGINEERING PLANNING 155,875 0 38,307 0 123,183 317,365 8,055 130,347 2,200 176,763 317,365 CONNUNICATION AND MARKETING 206,939 884 65,502 0 153,161 426,486 2,900 26,047 350 397,189 426,486 TREASURER/CONTROLLBR 1,664,220 47,825 24,833 0 160,576 1,897,454 0 2,000 0 1,895,454 1,897,45' CONSUMBR SERVICES 4,092,203 95,940 267,905 0 874,238 5,330,286 302,290 462,096 0 1,565,900 5,330,286 GRAND TOTAL $32,884,047 $1,014,053 $4,720,352 $64,028,40) $26,408,644 $129,055,499 $7,641,639 $80,620,299 $8,442,837 $32,350,724 $129,055,499 Distributed Expenses: Spread to Water, Electric, i Stea■ /3/ 2,537,770 19,903,063 792,795 -23,233,628 0 Vehicle and Equipment Charges /4/ -1,014,053 -1,014,053 Indirect Costs Spread to Capital Budget /5/ -8,103,043 -8,103,043 04/16/91 NET BUDGET BY UTILITY $10,179,409 $100,523,362 $9,235,632 $0 $119,938,40) P April 30, 1991 �11..0 ill.iIiv BOARD OF WATER AND LIGHT - DIVISION SUMMARY FOOTNOTES FISCAL YEAR ENDING JUNE 30, 1992 [1] Net Labor refers to the dollar amount of labor charged to operations and maintenance expense accounts. [2] Outside Services and Other include such items as insurance, pension funding, FICA, service engineers, maintenance contractors, consultants, utilities, travel and conference, dues and subscriptions. [3] 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 525 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. [5] Indirect costs applied to capital projects represents overhead charged to fixed capital and credited to expense. April 30, 1991 41 April 30, 1991 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. 91-4-6 That the Lansing Board of Water and Light enter into a Mutual Aid Agreement with members of the Michigan Municipal Electric Association (MMEA) to mutually provide emergency assistance for their respective electric systems. -------------------- This agreement will standardize requirements, obligations, and conditions for the furnishing of emergency assistance between municipal electric systems. Services shall be compensated based on: Labor: Direct costs (including overtime) multiplied by 1.5 (for overhead costs) Material: Cost plus 10% Equipment: Standard rates Expenses: Out-of-pocket at cost -------------------- Res. No. 91-4-7 To revise the Water Availability Measure for the FY 1990-91 Share the Success Plan by reducing both the base and goal by one MGD. -------------------- Due to a 10%reduction in the budgeted labor man-hours for well field maintenance, this reduction in maintenance represents a projected 1.45 MGD loss of capacity. (Clyde Dugan's memo of February 21, 1991 is enclosed). -------------------- 42 April 30, 1991 ADMINISTRATIVE (Continued) Res. No. 91-4-8 To revise the Steam Availability Measure for the FY 1990-91 Share the Success Plan due to the shut down of Moores Park Station beginning May 23, 1991. -------------------- This measure for FY 1990-91 was based on the Moores Park Station being in service the entire 12 months but with the understanding that if a shutdown could be scheduled, the measure would be revised. (Joette Woodard-Yauk's memo of February 7, 1991 is enclosed). -------------------- Res. No. 91-4-9 That the Water Reliability Measure be revised by reducing both the base and goal by 0.4 hours/interruption. -------------------- The base and goal for this fiscal year included an additional 0.4 hours/interruption to reflect scheduled major valve maintenance. This valve maintenance will not be performed this fiscal year due to a reduction in the budget and budgeted maintenance labor man-hours. -------------------- COMMUNICATIONS/MARKETING Res. No. 91-4-10 Authorize $20,000 to Market Strategies, Inc., 1000 Town Center, Suite 1600, Southfield, MI, to conduct annual customer attitude survey. The survey will be used to determine the perception of residential customers toward the BWL and its services, and to measure performance of certain Communications programs and customer satisfaction for Share the Success Program. -------------------- This year's survey will include 500 interviews and approximately 50 questions. It will measure overall favorability toward the BWL as well as public perception of specific service characteristics. The survey will also probe electric and water usage habits of residential customers to aid Engineering Planning in developing load forecasts. -------------------- April 30, 1991 43 ENGINEERING PLANNING Res. No. 91-4-11 Purchase order be issued to ABB Power Systems Inc., Advanced Systems Technology, Pittsburgh, PA, in the amount of$58,950, to provide a 138kV Capacitor Installation Study in accordance with the proposal dated April 4, 1991. -------------------- The scope of the work includes: Labor, expenses and travel to provide a 138kV Capacitor Installation Study that will be used as a basis for developing a Conceptual Design. Included will be the amount of capacitors needed, optimum location, effects on utility systems and corrective measures that may be required, protection, equipment and material required and cost estimates. (Roger Ophaug and Doug Wood's memo dated April 17, 1991 is enclosed.) -------------------- LEGAL Res. No. 91-4-12 Purchase the following insurance coverage: Public Officials and Employees Liability Insurance from the Lyman and Sheets Agency representing Virginia Surety Company, Inc., for one (1) year commencing April 27, 1991, at an annual premium of$76,700. This would provide a limit of liability of$5 million. There would be a $5,000 deductible for individual reimbursement with a $10,000 aggregate. The corporate reimbursement deductible would be $50,000 per claim. -------------------- This selection is viewed as the best value. Hall & Kennedy, Inc., representing the International Surplus Lines Insurance Company, provided a bid 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 per insured individual. The BWL's expiring coverage is with the Hall & Kennedy, Inc. which represented the same insurance company. The limit of liability was for$5 million and there were similar terms and conditions at the same annual premium. 4 .-1pri1 30, i91:+1 PENSION Res. No. 91-4-13 That Ruth A. Pickell, Clerk B in Customer Service, be placed on a disability pension of $707.08 per month effective April 1, 1991. She has selected Option IV with the provision that after her death, if her husband,John R. Pickell, survives her he will receive $707.08 for the rest of his life. If her husband predeceases her, the pension amount of $707.08 will revert back to the regular pension amount of $764.78 for the rest of her life. -------------------- Mrs. Pickell has worked for the BWL for 20.00 years and is 51 years of age. -------------------- Res. No. 91-4-14 That Mary Jean McElrath, Clerk B in Customer Service, be placed on a disability pension of $721.54 per month effective April 1, 1991. She has selected Option V with the provision that after her death, if her husband, Willie E. McElrath, survives her he will receive $360.77 per month for the rest of his life. If her husband predeceases her, the pension amount of$721.54 will revert back to the regular pension amount of $753.31 for the rest of her life. -------------------- Mrs. McElrath has worked for the BWL for 19.70 years and is 53 years of age. -------------------- TECHNICAL SERVICES Res. No. 91-4-15 1. That the contract for Professional Engineering Services with Burns & McDonnell of Kansas City, Missouri, be extended for one (1) year; and, 2. That the contract for Professional Engineering Services with Burns & Roe of Ordell, New Jersey, be extended for one (1) year; and 3. That the contract for Professional Engineering Services with Solid Fuel Technology of Toledo, Ohio, be extended for one (1) year. -------------------- These contracts were awarded on March 11, 1988 for a three (3) year term. Because of the extensive design work required for extending the life of our production facilities, the Engineering and Operation staff is still behind on the design of capital projects. Rather than adding employees to meet the short-term needs,the consultants will be utilized to supplement our staff. April 30, 1991 45 TECHNICAL SERVICES (Continued) (Res. No. 91-4-15) As in the past three years, the three consultants will be utilized on as-needed basis. They will be asked to submit quotes on individual projects, and the award will be gilven to the lowest. The utilization of these consultants will be approved by the General Manager on a project-to-project basis. This approach of continued use of the retained three consultants for one more year will: a. reduce evaluation time spent by staff; b. improve consultant response to meet our need; c. maintain competitiveness. -------------------- TREASURERICO NTROLLER Res. No. 91-4-16 That the revised Section O, Investment Recovery, Pg. 29 of the Purchasing Policy, dated April 30, 1991, be adopted by the Board and that it supersede Section O, Obsolete or Surplus Supplies and Equipment, Pg. 29 of the Purchasing Policy adopted on July 24, 1990 (Resolution 90-7-5). (See Page 46) -------------------- The revision to Section O, Pg. 29, of the policy consists of changes to reflect the current practices of the BWL with respect to disposal of obsolete or surplus supplies and equipment. Copies of the current policy and the proposed revision are enclosed. -------------------- Respectfull submitted, Joseph Pandy,Jr. General Manager JProg kpril 30, 19910 Proposed Change to Section 0. 1 Obsolete or Surplus Supplies and Equipment 0. INVESTMENT RECOVERY 1. Non-stock Items All BWL Departments shall advise the Manager of Stores of any obsolete, surplus, or scrap materials, supplies, and equipment, which in the using department's opinion are no longer used or have become worn out or are unsuitable for BWL use. 2. Stock Items Prior to October 31, of each year, the Manager of Stores will consult with the BWL department(s) involved, in regard to those items in stores stock which may appear to be obsolete, for their recommendation as to disposition of the items. 3. Investment Recovery Committee A committee appointed by the General Manager shall review items recommended as surplus, obsolete, or scrap, and determine whether the items should be disposed of, and the appropriate method or methods of disposal. 4. Disposal Methods of disposal may include sale by competitive bid, public auction, scrapping, recycling, or any other appropriate means. The Purchasing Department is responsible for disposal and will maintain an Investment Recovery Data Base of bidders and a record of all sales. 5. Board Approval Board of Commissioners approval is required for disposing of any BWL assets which are no longer used or useful, such as obsolete pumps, motors, fans, etc., with a net depreciated book value or fair market value of over $15,000, all vehicular equipment, and BWL owned electrical service equipment to qualified customers converting to customer owned service rate. ADOPIID BY BOARD: APRIL 30, 1991 Page 29 of 32 47 April 30, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-4-6 through 91-4-9, respectively, (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-4-10 (Communications/Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolution 91-4-11 (Engineering Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-4-12 (Legal) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-4-13 and 91-4-14 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-4-15 (Technical Services) of the General Manager's Recommendations be approved. At the request of Commissioner Williams, General Manager Pandy provided additional information regarding the professional engineering service contracts. He presented a summary of work that has occurred over the past three fiscal years by the engineering firms of Burns & McDonnell, SFT, and Burns & Roe. It was projected that $1 million would be spent between the three engineering firms during the three-year period, however, total project costs resulted #-ii '30, 1991 in $543,306. Mr. Pandy stated that BWL engineering staff tracks its own performance, using consultants only when project loads exceed in-house work schedules and expertise. Following discussion, Resolution 91-4-15 was adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-4-16 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. NEW BUSINESS Appeal Hearing- Mattie Robinson. Clinton Canady III of 310 N. Grand Avenue, Lansing, appeared on behalf of his client, Mattie Robinson, to appeal the independent hearing officer's decision regarding a disputed steam billing at 237 S. Washington. As standard appeals procedure, Mr. Canady responded to the following inquiries : 1. Did you receive copies of the report relevant to the case? Answer in summaU: Yes. Mr. Canady stated that he submitted other materials presented to the hearing officer, which were not included with the investigation report previously mailed to the Commissioners. Chairman Hassler acknowledged that the Commissioners received Mr. Canady's supplemental materials yesterday. 2. Do you question any of the facts presented? If so, what? Answer in summaU: Mr. Canady stated that it his contention the hearing officer ruled in his client's favor due to several discrepancies not accounted for. He pointed out that at no time prior to December of 1989 had there ever been an excess of 30 units of steam consumed at the facility in question. An independent plumber checked the steam heating system in December 1990, at the request of Ms. Robinson, and found no malfunction. Mr. Canady further stated that a billing discrepancy only gave rise to the issue of whether or not the meter was operating correctly. He further noted that the BWL's policy of having the customer present to review the meter at the time of its removal was not followed. Steam Division personnel changed the meter in his client's absence without prior notification. He pointed out that steam usage was down after the meter was changed. Mr. Canady questioned how the $150 credit issued by the hearing officer was calculated from the total bill of$1,385.99. He asked the Board to substitute the $150 credit amount with another figure, since in his opinion, there was no rationale for arriving at that amount. Finally, Mr. Canady's concluded his remarks by stating that it is his contention Ms. Robinson owes a total of $535 based on the historical pattern of the account and on the basis of equity. General Manager Pandy presented exhibits of Ms. Robinson's steam account summarizing annual comparisons of steam used and billed over a five-year period for the months October to June. He reported that the system inspection conducted by Ms. Robinson's plumber indicated the motorized valve was working properly. A subsequent investigation was held by BWL steam personnel to assist Ms. Robinson in determining the possible causes of the increased 49 April 30, 1991 usage, it was revealed that a steam trap was leaking through. Mr. Pandy noted that steam usage declined in December, 1990, after the plumber serviced the meter. He further noted that the meter was tested to determine the accuracy of the meter and that it tested 2.7% slow, in the customer's favor. Commissioner Hassler advised Mr. Canady that although it is the responsibility of the BWL to supply adequate and reliable steam service to its customers, it is not, however, the responsibility of the BWL to know how the steam is used once it is delivered to the meter. Considerable discussion followed regarding what had transpired during the period in question. Following the question and answer period, there was consensus that based on the facts presented, it was unlikely the true cause and effect would be known. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER WILLIAMS That the General Manager be directed to use his executive authority to negotiate an equitable settlement on this matter. If a settlement is not reached, that the matter be brought back to the Board for final resolution. Adopted unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy, reported on the following activities: Oil Discharge Incident. An oil spill incident on February 13, 1991, resulted in the discharge of approximately six gallons of oil into the Grand River from Eckert Station. The Michigan Department of Natural Resources has issued a final order of abatement of water pollution and an administrative consent order. The consent order calls for a civil penalty of$10,000 and partial compensation of$2,500 for the cost of the investigation and compliance actions. The BWL is appealing the order on the basis that the fines are not considered to be reasonable. General Manager Pandy noted that Environmental Engineering staff alerted the MDNR soon after the oil discharge occurred. He further stated that staff needs to be mindful of the fact that the State of Michigan will be heavily relying on environmental fines as one approach to raise additional funds. Water Bank Assistance Being Discussed. The Society of St. Vincent de Paul has intervened on behalf of numerous water customers who are no longer receiving state aid to avoid shutoffs. This charitable organization has recently paid the BWL $10,989 on 72 water accounts, scheduled for shutoff. In essence they are a charitable organization trying to step in where the State of Michigan has backed off from a social service program. BWL staff will be meeting with Society of St. Vincent de Paul representatives to talk about future ramifications and the possibility of a water bank similar to the Energy Bank to assist needy customers. Mr. Pandy indicated he is not optimistic about a Water Bank raising the amount of money needed. This opinion is on the basis that the Energy Bank raised $70,000 in 1990, of which 60 percent went to Consumers Power Company and 40 percent went to the BWL. Trade Council Tour to lunland. General Manager Pandy handed out a copy of the agenda for the Finnish Trade Council tour covering the period May 19-25. This tour is totally supported by the Finnish government and vendors of utility technology. Mr. Pandy will be accompanied by 12 other General Managers of municipal utilities and an engineering firm who arranged the tour. April 30, 1991 30 Board Retreat. General Manager Pandy handed out the following items in preparation for the Board Retreat on June 20-22, 1991: (1) An agenda of suggested issues for Commissioner input and comments, and (2) A HANDBOOK FOR NEW PUBLIC POWER POLICYMAKERS, prepared by the American Public Power Association. A packet of information on Board/Staff Management evaluation, suggested by Commissioner O'Leary, will also be supplied to each Commissioner prior to the retreat. Commissioner Belen suggested that it would be appropriate for the Commissioners to meet as a Committee of the Whole prior to the retreat to set specific goals. After brief discussion, it was the consensus of the Board to meet in a Committee of the Whole in May to develop an agenda for the Board Retreat. AWWA Highlights BWL Share the Success Program. General Manager Pandy reported that the 1990 Annual Conference Proceedings of the American Water Works Association (AWWA) documented the BWL's Share the Success program, based on a presentation he made at their Annual Meeting. BWL 1989 Annual Report Wins Two Awards. The Lansing Advertising Club presented the 1991 ADDY Award to the BWL and Ciesa, Inc., based on the Annual Report category, for the BWL's 1989 Annual Report. Ciesa, Inc. was also honored with the Lansing Gallery of Superb Printing Award from the Lansing Club of Printing House Craftsmen for outstanding craftsmanship in the production of the BWL's 1989 Annual Report. John Strickler was congratulated for his role in making these awards possible. BWL Applies for ELP Publication Engineering Design Award. The BWL has submitted an application to the Electric Light and Power (ELP) Publication for an engineering design award for the new 138kV Substation adjacent to the North Lansing Landfill. A copy of the application was circulated for review. Mr. Pandy remarked that the aesthetic design of the structure is quite innovative. The Commissioners will have an opportunity to tour this new facility in the near future during a Committee of the Whole meeting. Follow-Up Report on BWL Assistance to Public Service in Kokomo Indiana Area. The BWL rendered an invoice of$186,500 for the BWL's Line Construction Crew relief efforts from March 18-25, 1991 to Public Service of Indiana. He reported that a check was received this week for the exact amount billed. Video on Lansing Region - Michigan's Capital Choice Program. A brochure and a copy of the video was handed out on the Lansing Regional Chamber of Commerce Capital Choice Program. Mr. Pandy noted that Consumers Power Company produced the video as their contribution to the Capital Choice effort. A few minutes of the video was previewed. 51 April 30, 1991 REMARKS BY BOARD CONMSSIONERS As a point of clarification, Commissioner Williams asked Mr. Lloyd Teets if he would agree to pay the $500+ balance owed to the BWL with the understanding that the $19.94 Mr. Teets is disputing would be written off by the BWL. Mr. Teets stated that he doesn't deny he owes the BWL $560.46, but added that he is going to pay the $560.46 when the court deducts it from the judgment to be awarded to him. On motion of Commissioner O'Leary, the Board adjourned at 6:55 p.m. Mary E. va, Secretary Filed:May 3, 1991 James D. Blair, City Clerk 30 April 30, 1991 MINUTES OF BOARD OF COMMSSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, April 30, 1991 a3 The Board of Commissioners met in rescheduled session at 5:30 p.m, at the Main Mfice Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to or*r f by Chairman Hassler. ::? Present: Commissioners Belen, Evans, Hassler, O'Leary, Sebolt, Strolle, andr- Williams - 7 - Absent: None ^ == Board Vacancy: (1) W co The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Secretary Sova and Stalf members were present. � 1 The Invocation was given by Chairman Hassler. ! The Pledge of Allegiance was said by all. —=D� ; v> APPROVAL OF MINUTES -- BY COMMISSIONER SEBOLT-- ry SECONDED BY COMMISSIONER WILLIAMS cn That minutes of regular session of March 26, 1991 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. Lloyd Teets, 116 E. Elm, Lansing, spoke regarding the small claims suit in the amount of$580.40 initiated by the Board of Water and Light (BWL) against defendant Lloyd Teets as remedy for exhausted collection efforts. Mr. Teets reported that the BWL did not comply with his request to produce sixteen witnesses to appear at the hearing in Small Claims Court on his behalf. He stated that BWL Staff Attorney Lawrence Wilhite had written to him advising that the BWL would only voluntarily produce those witnesses necessary to prove its claim. Mr. Teets stated that on that basis he was left with no alternative but to "bump it up to the Civil Division of District Court", adding that he now has the opportunity to file a counter claim and seek remuneration for damages. Mr. Teets claimed he has spent approximately $15,000 in time and effort on a kpri l 30, 1991 31 disputed amount of$19.94. In summary, Mr. Teets made the following points: 1) He disputes the accuracy of the BWL's claim of$580.40, (2) he acknowledged owing only $560.46, (3) that he is only disputing an amount of$19.94, from a billing rendered at 4501 In ham Street (property now demolished), and (4) that the BWL collected the subject $19.94 illegally. (Additional remarks made in response to an inquiry made by Commissioner Williams--see page 5L) COMMUNICATIONS A thank you note was received from Mrs. Virginia Jessop expressing her appreciation for the Board's memorial resolution honoring her late husband and BWL Commissioner, E. Lane Jessop. Placed on file. FINANCE COMMITTEE REPORT April 30, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Finance Committee met with the Internal Auditor on March 26, 1991, to receive a quarterly update report. Committee members present were Commissioners Belen, Evans, Hassler, Williams, and O'Leary (alternate). At the last Internal Audit update on January 22, 1991, Internal Auditor Kellie Willson was directed to submit a proposed plan addressing systems consulting needs utilizing the expertise of Internal Auditing staff. The goal of Internal Auditing has been to improve controls and to help make the BWL more efficient and effective. An operational approach has been used in the past. Internal Auditing will now also move toward balancing the following BWL needs: 1. Traditional audit responsibilities 2. Systems consulting work 3. Management and staff education about controls Following discussion, it was the consensus of the committee that emphasis on education and self-assessment by management will improve understanding of controls and will result in a greater commitment to maintaining them. 32 April 30, 1991 BY THE FINANCE COMMITTEE Resolution 91-4-1 Internal Audit Approach RESOLVED, That the following new INTERNAL AUDIT approach recommendations be approved: Risk Analysis ■ Continue to meet with top managers regularly to understand their concerns and to monitor areas of risk. ■ Perform a formal risk analysis of BWL and update it annually. Education and Self Assessment ■ Develop materials and approaches to help managers and staff evaluate the efficiency and effectiveness of their area. ■ Develop and conduct a pilot self-assessment workshop. The focus should be on helping managers and staff improve the efficiency and effectiveness of their areas. ■ Help departments and divisions to develop self-assessment tools. Systems and Procedures ■ Perform systems and procedures consulting. However, this will be used as temporary assistance to management. It will be used when there is agreement that this approach is necessary to design solutions or implement recommendations effectively. ■ Identify for the external auditors the lack of independence where they might otherwise rely on the work of the Internal Auditors. Traditional Auditing ■ Continue to use traditional audits to verify that formal control mechanisms exist and they are functioning effectively. ■ Use traditional audits to verify and document the nature and extent of known problems. kpril 30, 1991 33 General ■ Use existing Internal Audit staff and resources to develop this new approach. ■ Work jointly with other areas within BWL, as appropriate, on each of the above. ■ Assess the impact on resources after gaining experience with these techniques. Respectfully submitted, Phillip E. Hassler, Chairman Finance Committee BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER SEBOLT That the Finance Committee Report, including Resolution 91-4-1, be approved as presented. Adopted unanimously. COMMITTEE OF THE WHOLE REPORT April 30, 1991 Board of Commissioners Board of Water and Light Lansing, Michigan The Committee of the Whole met with staff on April 9, 1991 to review the preliminary Fiscal 1991-92 budget and to receive a report on the Board of Water and Light's (BWL) financial position. Present were Commissioners Belen, Evans, Hassler, Sebolt, Strolle, and Williams (Chair Pro Tem). Absent was Commissioner O'Leary. General Manager Pandy reported that financial problems facing other businesses in the Lansing area has had a major impact on BWL revenues. Sales are down and expenses are up. A four-part strategy for maintaining the utility's financial stability, while minimizing the impact on employees and customers, will involve a combination of the following options: 1. Budget reductions 2. Moderate rate increases 3. Borrowing approximately $30 million by issuing bonds for major capital improvements 4. Right-sizing, to study the structure of the BWL to meet future challenges 4 April 30, 1991 FISCAL YEAR 1991-92 BUDGET Budget Cuts. General Manager Pandy presented a proposed operating budget by category for Fiscal 1992. The proposed budget is .6% lower than the Fiscal 1991 budget. The budget, excluding fuel, is down 4.7% from the 1991 budget. This is quite an achievement considering relatively flat sales, inflation in the 4-5% range, increased purchased power costs (+$6 million), and wage and salary increases during the prior year (+$2 million). The new budget funds 34 fewer positions than the current budget. Two programs for achieving cuts without resorting to layoffs will involve (1) Employee Pooling and (2) Voluntary Work Reduction Options. Spending on capital projects will also be cut 8% to under $31 million in Fiscal 1992. Discontinue Appliance Repair Program. The BWL Appliance Repair Service began on September 8, 1947 by Board action. Average BWL repairs over the past years have been over 1000 for small appliances and over 300 for major appliances. Internal studies have shown that this program is no longer cost effective. Resolution 91-4-2 Discontinue Appliance Repair Service RESOLVED, That the following action plan be implemented: 1. Discontinue the Outside Major Appliance Repair Service by June 1, 1991. 2. Discontinue the Inside Small Appliance Repair Service by June 1, 1991. 3. That repair statements unpaid as of June 30, 1991, be added to the customer's electric account. Resolution 91-4-3 Fiscal 1991-92 Budget RESOLVED, That the annual budget covering Fiscal 1991-92 be approved as presented (see Attachment A). FURTHER RESOLVED, That the Capital Projects in Exhibit 3 of the budget booklet be authorized in the amount of the project estimate. Capital expenditures for Fiscal 1991-92 are limited to the amount included in the budget. ANNUAL REVIEW OF ELECTRIC, WATER, AND STEAM REVENUES Treasurer/Controller Dana Tousley presented the results of an annual study on long-term revenue requirements. The purpose of the study was to determine if overall rate levels are adequate to meet revenue requirements. pril 30, 1991 35 Resolution 9144 Plans to Implement Electric Rate Increases RESOLVED, That the BWL proceed with plans to implement electric revenue increases effective January 1, 1992, 1993 and 1994. The minimum revenue increase required is 4.5% to 6.0% each year. The exact rate increase for each customer class will be determined by the latest cost of service study. Staff will have a rate study prepared by September 1991 to begin the rate process. FURTHER RESOLVED, That staff be authorized to proceed with plans for a bond issue sometime in calendar year 1992. RIGHT-SIZING General Manager Pandy gave an overview of the "right-sizing" concept and its relevance to the BWL. A proposed plan to evaluate how the BWL is structured to meet the organization's long-term goals was presented. The study would analyze various staff functions to determine if significant opportunities exist for a more cost-effective operation and to address the needs of our customers in future years. The diagnostic review will require six to seven weeks to complete. Cresap's proposal letter, dated April 5, 1991, was reviewed with the Board as the basis for structuring an agreement for this work. Resolution 91-4-5 Authorization to Retain Cresap, Management Consultants RESOLVED, That the management consulting firm of Cresap, a Towers Perrin company, be retained to conduct a diagnostic evaluation of BWL support services. The consultants would conduct an objective, diagnostic evaluation of the systems, operations and management of the support services of the BWL. FURTHER RESOLVED, That the scope of the diagnostic evaluation include the following staff functions: ■ Customer Service ■ Communication and Marketing ■ Human Resources ■ Treasurer/Controller ■ Project Engineering ■ Environmental Engineering ■ Information Systems ■ Electric Planning ■ Steam and Water Planning Respectfully submitted, Gerald W. Williams, Chair Pro Tern Committee of the Whole 36 April 30, 1991 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS That the Committee of the Whole Report, including Resolutions 91-4-2, 91-4-3, 91-4-4, 91-4-5, respectively, be approved as presented. Adopted unanimously. pril 30, 1991 ATTACHMENT A 37 BOARD OF WATER AND LIGHT-LANSING MICHIGAN BUDGET-FISCAL YEAR ENDING JUNE 30, 1992 WATER ELECTRIC STEAM TOTAL 1 PROJECTED INCOME STATEMENT FY 92 2 -------------------------------- -------------------------------- 3 OPERATING REVENUE [1] 13,291,634 120,805,000 11, 262,840 145, 359,474 4 5 Operation/Maint Expense 10,179,409 100, 523,362 9, 235,632 119, 938,403 6 Depreciation Expense 15,029,000 7 ---------- 8 TOTAL OPERATING EXPENSE 134,967,403 9 ---------- 10 OPERATING INCOME 10, 392,071 11 Other Income [2] 7,360,682 12 Other Expense [3] 1, 316,645 13 ---------- 14 NET INCOME 16,436,108 15 16 RATE OF RETURN-2/91 RATE BASE 5.2% 17 18 PROJECTED CASH FLOW FY 92 19 20 Restricted Operating Cash [4] 14,300,000 21 Restricted General Cash [5] 23,914,000 22 Available General Cash 2,153,000 23 Const/Special Project Cash 27, 335,000 24 ---------- 25 BEGINNING CASH 7-1-91 67,702,000 26 27 Sources of Cash 28 Net Income 16,436,108 29 Depreciation 15,029,000 30 Deferred Exp & Accrued Int [6] 609,992 31 ---------- 32 TOTAL SOURCES OF CASH 32,075,100 33 ---------- 34 SOURCES OF CASH + BEGINNING CASH 99,777,100 35 36 Uses of Cash 37 Debt Principal [7] 1,127, 212 38 Normal & Major Capital 31,811,000 39 Return on City Equity 4,728,701 40 ---------- 41 TOTAL USES OF CASH 37,666,913 42 43 Restricted Operating Cash 14,943,501 44 Restricted General Cash 25,587,980 45 Available General Cash 2,303,710 46 Const/Special Project Cash 19,274,996 47 ---------- 48 ENDING CASH 6-30-92 62,110,187 38 April 30, 1991 ATTP.CHMENT A BOARD OF WATER AND LIGHT - BUDGET FOOTNOTES FISCAL YEAR ENDING JUNE 30, 1992 [1] Revenue based on sales forecast for water (8,981,546 CCF) , Electric (2,451,000 MWH) and Steam (1, 541,808 MLB) . These sales levels are .93% lower, 3.6% higher, and 9.17% higher respectively than the twelve month period ended February 1990. [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, 1991 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, 1991 Restricted General Cash balances Belle River Contract $14,267,000 Coal Build-up 1,681,000 Uninsured Losses 7,966,000 Total Restricted General Cash $23,914,000 [6] Five year amortization of deferred expenses for Eckert turbine #1 reblade and Erickson turbine reblade and overhaul. [7] Debt repayment includes principal payment for the 1989 Revenue Bonds, Pension debt, the Lake Lansing land contract, and the Michigan Ash building at Erickson. [8] Normal Capital expenditures represent total amounts estimated for all Distribution projects, and Production, Transmission and Common projects less than $100,000, during Fiscal Year 1992. Major Capital expenditures represent total amounts estimated for Production, Transmission and Common projects greater than $100,000, during Fiscal Year 1992. ;t- .b ATTACHMENT A BOARD OF WATER & LICNT - LANSING, MICHIGAN BUDGET FOR FISCAL YEAR ENDING JUNE 30, 1992 DIVISION SUMMARY - OPERATIONS & MAINTENANCE EXPENSE Restated for Budget Coiparison Vehicle & Material Production Outside Expenses Net Bquipsent & Fuels/Chef. Services to be Labor /1/ Charges Supplies Purch Power & Other /2/ Total Water Electric Stem to Total IMINISTRITIVB $901,423 $2,400 $17,470 $0 $18,009,221 $18,930,514 $144,518 $1,276,923 $81,101 $17,427,972 $18,930,511 ACTRIC UTILITY 16,345,759 590,671 2,795,209 57,335,330 2,589,939 79,656,908 0 78,722,886 0 934,022 79,656,908 TBR UTILITY 3,374,877 157,337 310,072 2,005,636 1,335,954 7,183,876 7,183,876 0 0 0 7,183,876 'BIM UTILITY 1,866,340 66,300 385,550 4,687,437 1,353,559 8,359,186 0 0 8,359,186 0 8,359,186 CNNICIL SERVICES 3,661,994 52,696 791,664 0 1,654,843 6,161,197 0 0 0 6,161,197 6,161,197 Nil RESOURCES 614,417 0 23,840 0 153,970 792,227 0 0 0 792,227 792,227 GIVIRRIMG PLANNING 155,875 0 38,307 0 123,183 317,365 8,055 130,347 2,200 176,763 317,365 INUNICATION IND MARKETING 206,939 884 65,502 0 153,161 426,486 2,900 26,047 350 397,189 426,486 BISURBR/CONTROLLBR 1,664,220 47,825 24,833 0 160,576 1,897,454 0 2,000 0 1,895,454 1,897,0`- NSUMBR SERVICES 4,092,203 95,940 267,905 0 874,238 5,330,286 302,290 462,096 0 4,565,900 5,330,286 GRIND TOTAL $32,884,047 $1,014,053 $4,720,352 $64,028,403 $26,408,644 $129,055,499 $7,641,639 $80,620,299 $8,442,837 $32,350,724 $129,055,499 Distributed Expenses: Spread to Water, Electric, & Steas /3/ 2,537,770 19,903,063 792,795 -23,233,628 0 Vehicle and Equipient Charges /4/ -1,014,053 -1,014,053 Indirect Costs Spread to Capital Budget /5/ -8,103,043 -8,103,041 (16/91 NET BUDGET BY UTILITY $10,179,409 $100,523,362 $9,235,632 $0 $119,938,403 40 April 30, 1991 BOARD OF WATER AND LIGHT - DIVISION SUMMARY FOOTNOTES FISCAL YEAR ENDING JUNE 30, 1992 [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. [41 The cost of owning and operating vehicles is in RA 525 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. [51 Indirect costs applied to capital projects represents overhead charged to fixed capital and credited to expense. April 30, 1991 41 April 30, 1991 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. 91-4-6 That the Lansing Board of Water and Light enter into a Mutual Aid Agreement with members of the Michigan Municipal Electric Association (MMEA) to mutually_ provide emergency assistance for their respective electric systems. -------------------- This agreement will standardize requirements, obligations, and conditions for the furnishing of emergency assistance between municipal electric systems. Services shall be compensated based on: Labor: Direct costs (including overtime) multiplied by 1.5 (for overhead costs) Material: Cost plus 10% Equipment: Standard rates Expenses: Out-of-pocket at cost -------------------- Res. No. 91-4-7 To revise the Water Availability Measure for the FY 1990-91 Share the Success Plan by reducing both the base and goal by one MGD. -------------------- Due to a 10% reduction in the budgeted labor man-hours for well field maintenance, this reduction in maintenance represents a projected 1.45 MGD loss of capacity. (Clyde Dugan's memo of February 21, 1991 is enclosed). -------------------- 42 ADril 30, 1991 ADMINISTRATIVE (Continued) Res. No. 91-4-8 To revise the Steam Availability Measure for the FY 1990-91 Share the Success Plan due to the shut down of Moores Park Station beginning May 23, 1991. -------------------- This measure for FY 1990-91 was based on the Moores Park Station being in service the entire 12 months but with the understanding that if a shutdown could be scheduled, the measure would be revised. (Joette Woodard-Yauk's memo of February 7, 1991 is enclosed). -------------------- Res. No. 91-4-9 That the Water Reliability Measure be revised by reducing both the base and goal by 0.4 hours/interruption. -------------------- The base and goal for this fiscal year included an additional 0.4 hours/interruption to reflect scheduled major valve maintenance. This valve maintenance will not be performed this fiscal year due to a reduction in the budget and budgeted maintenance labor man-hours. -------------------- COMMUNICATIONS/MARKETING Res. No. 91-4-10 Authorize $20,000 to Market Strategies, Inc., 1000 Town Center, Suite 1600, Southfield, MI, to conduct annual customer attitude survey. The survey will be used to determine the perception of residential customers toward the BWL and its services, and to measure performance of certain Communications programs and customer satisfaction for Share the Success Program. -------------------- This year's survey will include 500 interviews and approximately 50 questions. It will measure overall favorability toward the BWL as well as public perception of specific service characteristics. The survey will also probe electric and water usage habits of residential customers to aid Engineering Planning in developing load forecasts. -------------------- April 30, 1991 43 ENGINEERING PLANNING Res. No. 91-4-11 Purchase order be issued to ABB Power Systems Inc., Advanced Systems Technology, Pittsburgh, PA, in the amount of$58,950, to provide a 138kV Capacitor Installation Study in accordance with the proposal dated April 4, 1991. -------------------- The scope of the work includes: Labor, expenses and travel to provide a 138kV Capacitor Installation Study that will be used as a basis for developing a Conceptual Design. Included will be the amount of capacitors needed, optimum location, effects on utility systems and corrective measures that may be required, protection, equipment and material required and cost estimates. (Roger Ophaug and Doug Wood's memo dated April 17, 1991 is enclosed.) -------------------- LEGAL Res. No. 91-4-12 Purchase the following insurance coverage: Public Officials and Employees Liability Insurance from the Lyman and Sheets Agency representing Virginia Surety Company, Inc., for one (1) year commencing April 27, 1991, at an annual premium of$76,700. This would provide a limit of liability of$5 million. There would be a $5,000 deductible for individual reimbursement with a $10,000 aggregate. The corporate reimbursement deductible would be $50,000 per claim. -------------------- This selection is viewed as the best value. Hall & Kennedy, Inc., representing the International Surplus Lines Insurance Company, provided a bid 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 per insured individual. The BWL's expiring coverage is with the Hall & Kennedy, Inc. which represented the same insurance company. The limit of liability was for$5 million and there were similar terms and conditions at the same annual premium. +4 Aprii 30, 1991 PENSION Res. No. 91-4-13 That Ruth A. Pickell, Clerk B in Customer Service, be placed on a disability pension of$707.08 per month effective April 1, 1991. She has selected Option IV with the provision that after her death, if her husband,John R. Pickell, survives her he will receive $707.08 for the rest of his life. If her husband predeceases her, the pension amount of $707.08 will revert back to the regular pension amount of $764.78 for the rest of her life. -------------------- Mrs. Pickell has worked for the BWL for 20.00 years and is 51 years of age. -------------------- Res. No. 91-4-14 That Mary Jean McElrath, Clerk B in Customer Service, be placed on a disability pension of$721.54 per month effective April 1, 1991. She has selected Option V with the provision that after her death, if her husband, Willie E. McElrath, survives her he will receive $360.77 per month for the rest of his life. If her husband predeceases her, the pension amount of $721.54 will revert back to the regular pension amount of $753.31 for the rest of her life. -------------------- Mrs. McElrath has worked for the BWL for 19.70 years and is 53 years of age. -------------------- TECHNICAL SERVICES Res. No. 91-4-15 1. That the contract for Professional Engineering Services with Burns & McDonnell of Kansas City, Missouri, be extended for one (1) year; and, 2. That the contract for Professional Engineering Services with Burns & Roe of Ordell, New Jersey, be extended for one (1) year; and 3. That the contract for Professional Engineering Services with Solid Fuel Technology of Toledo, Ohio, be extended for one (1) year. -------------------- These contracts were awarded on March 11, 1988 for a three (3) year term. Because of the extensive design work required for extending the life of our production facilities,the Engineering and Operation staff is still behind on the design of capital projects. Rather than adding employees to meet the short-term needs, the consultants will be utilized to supplement our staff. 45 April 30, 1991 TECHNICAL SERVICES (Continued) (Res. No. 91-4-15) As in the past three years, the three consultants will be utilized on as-needed basis. They will be asked to submit quotes on individual projects, and the award will be given to the lowest. The utilization of these consultants will be approved by the General Manager on a project-to-project basis. This approach of continued use of the retained three consultants for one more year will: a. reduce evaluation time spent by staff; b. improve consultant response to meet our need; c. maintain competitiveness. -------------------- TREASURER/CONTROLLER Res. No. 91-4-16 That the revised Section O, Investment Recovery, Pg. 29 of the Purchasing Policy, dated April 30, 1991, be adopted by the Board and that it supersede Section O, Obsolete or Surplus Supplies and Equipment, Pg. 29 of the Purchasing Policy adopted on July 24, 1990 (Resolution 90-7-5). (See Page 46) -------------------- The revision to Section O, Pg. 29, of the policy consists of changes to reflect the current practices of the BWL with respect to disposal of obsolete or surplus supplies and equipment. Copies of the current policy and the proposed revision are enclosed. -------------------- Respectful- submitted, 5%c Joseph Pandy,Jr. General Manager JP/bg 46 ril 30, 1991 Proposed Change to Section 0. , Obsolete or Surplus Supplies and Equipment 0. INVESTMENT RECOVERY 1. Non-stock Items All BWL Departments shall advise the Manager of Stores of any obsolete, surplus, or scrap materials, supplies, and equipment, which in the using department's opinion are no longer used or have become worn out or are unsuitable for BWL use. 2. Stock Items Prior to October 31, of each year, the Manager of Stores will consult with the BWL department(s) involved, in regard to those items in stores stock which may appear to be obsolete, for their recommendation as to disposition of the items. 3. Investment Recovery Committee A committee appointed by the General Manager shall review items recommended as surplus, obsolete, or scrap, and determine whether the items should be disposed of, and the appropriate method or methods of disposal. a_. Disposal Methods of disposal may include sale by competitive bid, public auction, scrapping, recycling, or any other appropriate means. The Purchasing Department is responsible for disposal and will maintain an Investment Recovery Data Base of bidders and a record of all sales. 5. Board Approval Board of Commissioners approval is required for disposing of any BWL assets which are no longer used or useful, such as obsolete pumps, motors, fans, etc. , with a net depreciated book value or fair market value of over $15,000, all vehicular equipment, and BWL owned electrical service equipment to qualified customers converting to customer owned service rate. ADOMD BY BOARD: Page 29 of 32 APRIL 30, 1991 9 47 April 30, 1991 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-4-6 through 91-4-9, respectively, (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-4-10 (Communications/Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That Resolution 91-4-11 (Engineering Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-4-12 (Legal) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-4-13 and 91-4-14 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-4-15 (Technical Services) of the General Manager's Recommendations be approved. At the request of Commissioner Williams, General Manager Pandy provided additional information regarding the professional engineering service contracts. He presented a summary of work that has occurred over the past three fiscal years by the engineering firms of Burns & McDonnell, SFT, and Burns & Roe. It was projected that $1 million would be spent between the three engineering firms during the three-year period, however, total project costs resulted pril 30, 1991 in $543,306. Mr. Pandy stated that BWL engineering staff tracks its own performance, using consultants only when project loads exceed in-house work schedules and expertise. Following discussion, Resolution 91-4-15 was adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-4-16 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. NEW BUSINESS Appeal Hearing - Mattie Robinson. Clinton Canady III of 310 N. Grand Avenue, Lansing, appeared on behalf of his client, Mattie Robinson, to appeal the independent hearing officer's decision regarding a disputed steam billing at 237 S. Washington. As standard appeals procedure, Mr. Canady responded to the following inquiries : 1. Did you receive copies of the report relevant to the case? Answer in summary: Yes. Mr. Canady stated that he submitted other materials presented to the hearing officer, which were not included with the investigation report previously mailed to the Commissioners. Chairman Hassler acknowledged that the Commissioners received Mr. Canady's supplemental materials yesterday. 2. Do you question any of the facts presented? If so, what? Answer in summary: Mr. Canady stated that it his contention the hearing officer ruled in his client's favor due to several discrepancies not accounted for. He pointed out that at no time prior to December of 1989 had there ever been an excess of 30 units of steam consumed at the facility in question. An independent plumber checked the steam heating system in December 1990, at the request of Ms. Robinson, and found no malfunction. Mr. Canady further stated that a billing discrepancy only gave rise to the issue of whether or not the meter was operating correctly. He further noted that the BWL's policy of having the customer present to review the meter at the time of its removal was not followed. Steam Division personnel changed the meter in his client's absence without prior notification. He pointed out that steam usage was down after the meter was changed. Mr. Canady questioned how the $150 credit issued by the hearing officer was calculated from the total bill of$1,385.99. He asked the Board to substitute the $150 credit amount with another figure, since in his opinion, there was no rationale for arriving at that amount. Finally, Mr. Canady's concluded his remarks by stating that it is his contention Ms. Robinson owes a total of $535 based on the historical pattern of the account and on the basis of equity. General Manager Pandy presented exhibits of Ms. Robinson's steam account summarizing annual comparisons of steam used and billed over a five-year period for the months October to June. He reported that the system inspection conducted by Ms. Robinson's plumber indicated the motorized valve was working properly. A subsequent investigation was held by BWL steam personnel to assist Ms. Robinson in determining the possible causes of the increased 49 April 30, 1991 usage, it was revealed that a steam trap was leaking through. Mr. Pandy noted that steam usage declined in December, 1990, after the plumber serviced the meter. He further noted that the meter was tested to determine the accuracy of the meter and that it tested 2.7% slow, in the customer's favor. Commissioner Hassler advised Mr. Canady that although it is the responsibility of the BWL to supply adequate and reliable steam service to its customers, it is not, however, the responsibility of the BWL to know how the steam is used once it is delivered to the meter. Considerable discussion followed regarding what had transpired during the period in question. Following the question and answer period, there was consensus that based on the facts presented, it was unlikely the true cause and effect would be known. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER WILLIAMS That the General Manager be directed to use his executive authority to negotiate an equitable settlement on this matter. If a settlement is not reached, that the matter be brought back to the Board for final resolution. Adopted unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy, reported on the following activities: Oil DischarEe Incident. An oil spill incident on February 13, 1991, resulted in the discharge of approximately six gallons of oil into the Grand River from Eckert Station. The Michigan Department of Natural Resources has issued a final order of abatement of water pollution and an administrative consent order. The consent order calls for a civil penalty of$10,000 and partial compensation of$2,500 for the cost of the investigation and compliance actions. The BWL is appealing the order on the basis that the fines are not considered to be reasonable. General Manager Pandy noted that Environmental Engineering staff alerted the MDNR soon after the oil discharge occurred. He further stated that staff needs to be mindful of the fact that the State of Michigan will be heavily relying on environmental fines as one approach to raise additional funds. Water Bank Assistance Beim Discussed. The Society of St. Vincent de Paul has intervened on behalf of numerous water customers who are no longer receiving state aid to avoid shutoffs. This charitable organization has recently paid the BWL $10,989 on 72 water accounts, scheduled for shutoff. In essence they are a charitable organization trying to step in where the State of Michigan has backed off from a social service program. BWL staff will be meeting with Society of St. Vincent de Paul representatives to talk about future ramifications and the possibility of a water bank similar to the Energy Bank to assist needy customers. Mr. Pandy indicated he is not optimistic about a Water Bank raising the amount of money needed. This opinion is on the basis that the Energy Bank raised $70,000 in 1990, of which 60 percent went to Consumers Power Company and 40 percent went to the BWL. Trade Council Tour to Fudand. General Manager Pandy handed out a copy of the agenda for the Finnish Trade Council tour covering the period May 19-25. This tour is totally supported by the Finnish government and vendors of utility technology. Mr. Pandy will be accompanied by 12 other General Managers of municipal utilities and an engineering firm who arranged the tour. 50 ,pri1 30, 1991 Board Retreat. General Manager Pandy handed out the following items in preparation for the Board Retreat on June 20-22, 1991: (1) An agenda of suggested issues for Commissioner input and comments, and (2) A HANDBOOK FOR NEW PUBLIC POWER POLICYMAKERS, prepared by the American Public Power Association. A packet of information on Board/Staff Management evaluation, suggested by Commissioner O'Leary, will also be supplied to each Commissioner prior to the retreat. Commissioner Belen suggested that it would be appropriate for the Commissioners to meet as a Committee us of the Board prior mee n retreat a Committee off the W ific goals. After brief diof the scussion, was the copse agenda for the Board Retreat. AWWA Highlights BWL Share the Success Program. General Manager Pandy reported that the 1990 Annual Conference Proceedings of the American Water Works Association (AWWA) documented the BWL's Share the Success program, based on a presentation he made at their Annual Meeting. BWL 1989 Annual Report Wins Two Awards. The Lansing Advertising Club presented the 1991 ADDY Award to the BWL and Ciesa, Inc., based on the Annual Report category, for the BWL's 1989 Annual Report. Ciesa, Inc. was also honored with the Lansing Gallery of Superb Printing Award from the Lansing Club of Printing House Craftsmen for outstanding craftsmanship in the production of the BWL's 1989 Annual Report. John Strickler was congratulated for his role in making these awards possible. BWL Applies for ELP Publication Engineering Design Award. The BWL has submitted an application to the Electric Light and Power (ELP) Publication for an engineering design award for the new 138kV Substation adjacent to the North Lansing Landfill. A copy of the application was circulated for review. Mr. Pandy remarked that the aesthetic design of the structure is quite innovative. The Commissioners will have an opportunity to tour this new facility in the near future during a Committee of the Whole meeting. Follow Up Report on BWL Assistance to Public Service in Kokomo, Indiana Area. The BWL rendered an invoice of$186,500 for the BWL's Line Construction Crew relief efforts from March 18-25, 1991 to Public Service of Indiana. He reported that a check was received this week for the exact amount billed. Video on Lansing Region Michigan's Capital Choice Program. A brochure and a copy of the video was handed out on the Lansing Regional Chamber of Commerce Capital Choice Program. Mr. Pandy noted that Consumers Power Company produced the video as their contribution to the Capital Choice effort. A few minutes of the video was previewed. 51 April 30, 19% �F.MARK4 By BOARD COI\'�'IISSIONER As a point of clarification, Commissioner Williams asked Mr. Lloyd Teets if he would agree to pay the $500+ balance owed to the BWL with the understanding that the $19.94 Mr. Teets is disputing would be written off by the BWL. Mr. Teets stated that he doesn't deny he owes the BWL $560.46, but added that he is going to pay the $560.46 when the court deducts it from the judgment to be awarded to him. On motion of Commissioner O'Leary, the Board adjourned at 6:55 p.m. zvv.l Mary E. v Secretary Filed:May 3, 1991 James D. Blair, City Clerk 14 February 26, 1991 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, February 26, 1991 The Board of Commissioners met in regular session at 5:30 p.m, in the Main Office,, c� Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to or by Chairman Hassler. =f Present: Commissioners Belen, Evans, Hassler, O'Leary, Sebolt, Strolle, =X3 G and Williams - 7 Y r' r Absent: None cr'. t The Secretary declared a quorum present. N c.� General Manager Pandy, Secretary Sova and Staff members were present. w The meeting was dedicated to, and an invocation was delivered by Chairman Hassler, in memory of Commissioner E. Lane Jessop. A period of silent medication followed. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN That minutes of regular session of January 22, 1991 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. Tom Mulder, representing Geert D. Mulder and Sons, reported that his home building business is subdividing forty lots in Lancen Village South No. 5. He requested that consideration be given allowing his business to either use their own subcontractor for water service installations or to renegotiate with Water Utility staff the BWL's installation cost. Mr. Mulder noted that a $14,000 cost difference exists in favor of an outside contractor as compared to the BWL's bid. He commented that in order to continue building affordable homes in the Lansing area, he must maintain the lowest possible costs in all areas of construction. February 26, 1991 15 General Manager Pandy commented that the BWL has had a long-standing policy of installing its own water service. The utility is obligated to maintain the water installations for its life, which may be 50 to 70 years. He explained the importance of using the best quality materials that are properly constructed and installed to avert future problems. Mr. Pandy gave cost comparisons received from two outside contractors for a similar water installation project in Higgins Subdivision. It was pointed out that BWL inspection costs would need to be added to contractor bids. Following discussion, Mr. Pandy noted that the BWL tries to remain competitive with contractor costs. He agreed to meet with Mr. Mulder to resolve concerns with cost differences. FINANCE COMMITTEE REPORT February 26, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Finance Committee met with the Internal Auditor on January 22, 1991, to receive a quarterly activities report for the period covering October, 1990 to January, 1991. Present were Commissioners Belen, Hassler (Chair), and Williams. Absent was Commissioner Evans. Internal Auditor Kellie Willson reported that a preliminary audit of Cashiers was completed in November and detailed recommendations covering management, procedures and training were submitted to the Consumer Services Director for concurrence. A project plan based on audit recommendations, outlining six major goals and defining objectives and approaches for each goal, has been developed. Attention to the new Customer Information System is the highest priority goal of the six outlined in the plan. Discussion was held on the benefits of exercising the proactive arm of internal auditing to assist the organization to enhance its systems and controls. The Internal Auditor was directed to bring back to the Board a plan addressing systems consulting needs utilizing the expertise of Internal Auditing staff. Respectfully submitted, Phillip E. Hassler, Chairman Finance Committee BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER SEBOLT That the Finance Committee Report be received as submitted and placed on file. Adopted unanimously. 16 Febniary 26, 1991 February 26, 1991 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: ADMINISTRATION Res. No. 91-2-1 That BWL enter into an interim agreement with Michigan Public Power Agency (MPPA) to provide monitoring and dispatching service for the Belle River Project until the new MPPA Power Pool begins operating later in 1991. BWL will provide energy from on line units at its "out-of-pocket" cost plus 10% when BWL energy can be supplied cheaper than other back-up energy sources. When BWL capacity is reserved in advance it will be provided at $2.00/kW/month or $.50/kW/week. -------------------- This agreement will provide participants energy at lowest possible cost until the Power Pool becomes operational in late 1991. -------------------- Res. No. 91-2-2 RESOLVED, That the Director and General Manager is hereby appointed to serve as the Lansing Board of Water and Light's representative to the Michigan Municipal Electric Association (MMEA). RESOLVED FURTHER, That the Assistant General Manager is hereby appointed to be the alternate representative in the absence of the primary representative. RESOLVED FURTHER, That the Corporate Secretary of the Board of Water and Light shall cause a true copy of this resolution to be mailed to MMEA. -------------------- MMEA is updating its records and has requested confirmation of BWL official representation. -------------------- February 26, 1991 17 INTERNAL AUDITOR Res. No. 91-2-3 That the Board of Commissioners advise Lansing City Council it has received a proposal dated January 24, 1991, and a clarification letter dated February 4, 1991, from Deloitte & Touche. The clarification letter quotes a not-to-exceed fee of$29,700 for audits of the Board of Water and Light and its Pension Fund for the fiscal year ending June 30, 1991. This proposal was requested in accordance with the City Council resolution adopted on May 30, 1989, regarding engaging independent auditors for the fiscal years ended June 30, 1989 - 1993. Further, that the Board of Commissioners advise Lansing City Council that the quoted cost appears reasonable and recommends the firm be retained to conduct these audits according to their proposal and clarification letter. -------------------- The Deloitte & Touche firm has conducted this professional audit in prior years on a competitive basis. -------------------- PENSION Res. No. 91-2-4 That Sally R. Campau, Administrative Secretary in Technical Services, be placed on a disability monthly pension of$544.72 per month effective February 1, 1991. She has selected Option I with the provision that after her death, if her husband, Richard M. Campau survives her, he will receive $544.72 per month for the rest of his life. Ms. Campau has worked for the BWL for 13.59 years. -------------------- Res. No. 91-2-5 That James E. Stewart, Electric System Operator C, at BESOC, be placed on a disability monthly pension of$1,020.08 per month effective July 2, 1990. He has selected Option VI with the provision that after his death, if his wife, Kathleen A. Stewart survives him, she will receive $816.06 per month for the rest of her life. Mr. Stewart has worked for the BWL for 23.33 years. -------------------- Respectfull submitted, Joseph Pandy, Jr. General Manager JP/rs 18 February 26, 1991 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-2-1 and 91-2-2 (Administration) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-2-3 (Internal Audit) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-2-4 and 91-2-5 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER SEBOLT RESOLUTION OF TRIBUTE AS A MEMORIAL FOR E. LANE JESSOP WHEREAS, The members of the Board of Commissioners are saddened at the passing of their colleague and friend, E. Lane Jessop, who was an able and valued member of the Board for seventeen years. His sudden death at age 77 leaves a void that cannot be filled, but his presence enriched many people in this community; and WHEREAS, A Lansing native with strong ties to the Ingham County area, E. Lane Jessop graduated from Eastern High School and Michigan State University. He served our nation with distinction in the U. S. Navy during World War II, serving in the South Pacific Fleet. Upon his return to civilian life, he enjoyed a successful insurance career since 1935 and was the founder of the Lane Jessop Agency, Inc.;and WHEREAS, A man of many talents and interests, E. Lane Jessop was a past President of the Downtown Optimist Club, a past Master of Walter French Lodge #557 F.& A.M., a member of Capitol Chapter #9 R.A.M.; a former member of the Masonic Temple Association Board of Directors, a former Director of the Lansing Regional Chamber of Commerce, and the Urban Redevelopment Board. Highly respected as community involved and a public servant, E. Lane Jessop set standards of leadership that shall long endure as his legacy. In all his activities, E. Lane Jessop was known for his kindly words and his hearty disposition; and 19 ruary 26, 1991 WHEREAS, E. Lane Jessop was appointed to the Board o Commissioners he cult merss and f the Board of Water and Light on February 25, 1974. He was deeply employees of this utility. He served on numc sed a ieadership throe eoas Truard of the chaired tBoard Personnel committee for ten years and also exer of Water and Light Pension Fund. oard NOW, THEREFORE, BE IT RESOLVED,d Thesalut Bohe 1lfe leadershipard of nand achers of hevements of Water and Light hereby officially honors an E. Lane Jessop; and RESOLVED FURTHER, It is with great to his famect ly;l andntributions to this Board, that we extend this expression of our condole nesRESOLVED FURTHER, That this resolution be inscribed on irginaa Jees ssop, as evidence of copy be transmitted to f the minutes and a his dear wife and friend of fifty years, the esteem that will long be held for his memory by the Board of Commissioners. Adopted by the following vote: Yeas: Commissioners Belen, Evans, Hassler, O'Leary, Sebolt, Strolle and Williams Nays:None GENERAL MANAGER'S REMARKS The following activities were reported by the General Manager: he iorit EMPLOYEE FOOD DONATIONS. A settDirector of Cristo Rey Comer of thanks was received mtun ty Centern for Advisory Committee from Tony Benavid , WL over 500 pounds of donated food received be area needy families.from Camille Abood forethe comunity $163 Events committee received a thank you to the Greater Lansing Food Bank to feed the hungry in the community. REVIEW OF BWL FINANCIAL STATUS. Mr.f hasdreport presented an the 2 month pe overview of the riod L's financial condition. The following is a highlight ending January 31, 1991: Unit Sales Water sales are up 1.4%, due to the new Customer Information System billing on a monthly basis rather than quarterly, which increased the units reported Electric sales are off by 9.9%; sales for resale are off more than 56% with Consumers Power selling low cost Midland power throughout the state - Steam sales are off 19.7%, as a result of BOC's downturn in steam use Rev_ Water revenue is up 9.9% due to 1990 and 1991 rate increases - Electric revenue is down 5.9% - Steam revenue is down 19.9% Total revenue is down $8.5 million as compared to the same period last year. The net cash flow year toyear iss down $30 million. However, the previous year included $16 million of bondproceeds. 20 February 26, 1991 Despite budget tightening, the numbers are not doing well. • Budget cuts include: $6.5 million from O & M $7 million from capital • Revenues are 3.5% below budget • O & M expenses are 5.1% below budget • Total expenses are off 5% • Rates of return are below BWL targets: Water 2.32% Electric 4.10% Steam 10.19% • There are currently 48 employees less than budgeted • Staff is continuing to investigate ways to curtail expenses Lengthy discussion followed regarding alternatives being explored by staff which include: (1) reduction of capital expenditures, (2) freezing O & M budget at Fiscal 1990-91 level after cuts were made in October, 1990, (3) moderate rate increases spread over several years, and (4) borrowing through a bond issue during this time of low interest rates. These financial matters will be the topic of the April Committee of the Whole meeting. MARKETING CAPACITY AND ENERGY AT THE WHOLESALE LEVEL. A letter to the Michigan South Central Power Agency (MSCPA), written by Assistant General Manager Joe Wolfe, was handed out. The letter indicates the BWL is willing to provide limited amounts of capacity and energy to be used by MSCPA members for economic development Purposes. The power would be sold on a rate basis similar to that being sold to Michigan Pubic Power Agency (MPPA) members. Mr. Pandy noted that MSCPA is an agency separate from MPPA. Five cities in Michigan are members of MSCPA and are paying the highest cost power in the state. LANSING REGIONAL CHAMBER OF COMMERCE - CAPITAL CHOICE. General Manager Pandy reported that a significant size customer is being pursued by the Chamber of Commerce, BWL, and EDC. The energy intensive company has indicated they are pleased with the BWL's low stable electric rates. Company representatives are planning to visit Lansing to look at sites within the BWL service area. More information will be available once a firm commitment is made. On motion of Commissioner O'Leary, the Board adjourned at 6:20 p.m. Aaae.4m Mary E. Secretar Y Filed: March 1, 1991 James D. Blair, City Clerk 14 February 26, 1991 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, February 26, 1991 The Board of Commissioners met in regular session at 5:30 p.m, in the Main Office Building, 123 W. Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler. Present: Commissioners Belen, Evans, Hassler, O'Leary, Sebolt, Strolle, and Williams - 7 Absent: None The Secretary declared a quorum present. General Manager Pandy, Secretary Sova and Staff members were present. The meeting was dedicated to, and an invocation was delivered by Chairman Hassler, in memory of Commissioner E. Lane Jessop. A period of silent medication followed. The Pledge of Allegiance was said by all. APPROVAL OF MINUTES BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN That minutes of regular session of January 22, 1991 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. Tom Mulder, representing Geert D. Mulder and Sons, reported that his home building business is subdividing forty lots in Lancen Village South No. 5. He requested that consideration be given allowing his business to either use their own subcontractor for water service installations or to renegotiate with Water Utility staff the BWL's installation cost. Mr. Mulder noted that a $14,000 cost difference exists in favor of an outside contractor as compared to the BWL's bid. He commented that in order to continue building affordable homes in the Lai ngtrV h z tain the lowest possible costs in all areas of construction. G G L Wc� G �� . AU DIN ISN!f-` 'a01- February 26, 1991 15 General Manager Pandy commented that the BWL has had a long-standing policy of installing its own water service. The utility is obligated to maintain the water installations for its life, which may be 50 to 70 years. He explained the importance of using the best quality materials that are properly constructed and installed to avert future problems. Mr. Pandy gave cost comparisons received from two outside contractors for a similar water installation project in Higgins Subdivision. It was pointed out that BWL inspection costs would need to be added to contractor bids. Following discussion, Mr. Pandy noted that the BWL tries to remain competitive with contractor costs. He agreed to meet with Mr. Mulder to resolve concerns with cost differences. FINANCE COMMITTEE REPORT February 26, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Finance Committee met with the Internal Auditor on January 22, 1991, to receive a quarterly activities report for the period covering October, 1990 to January, 1991. Present were Commissioners Belen, Hassler (Chair), and Williams. Absent was Commissioner Evans. Internal Auditor Kellie Willson reported that a preliminary audit of Cashiers was completed in November and detailed recommendations covering management, procedures and training were submitted to the Consumer Services Director for concurrence. A project plan based on audit recommendations, outlining six major goals and defining objectives and approaches for each goal, has been developed. Attention to the new Customer Information System is the highest priority goal of the six outlined in the plan. Discussion was held on the benefits of exercising the proactive arm of internal auditing to assist the organization to enhance its systems and controls. The Internal Auditor was directed to bring back to the Board a plan addressing systems consulting needs utilizing the expertise of Internal Auditing staff. Respectfully submitted, Phillip E. Hassler, Chairman Finance Committee BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER SEBOLT That the Finance Committee Report be received as submitted and placed on file. Adopted unanimously. 16 Febnjary 26, 1991 February 26, 1991 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: ADMINISTRATION Res. No. 91-2-1 That BWL enter into an interim agreement with Michigan Public Power Agency (MPPA) to provide monitoring and dispatching service for the Belle River Project until the new MPPA Power Pool begins operating later in 1991. BWL will provide energy from on line units at its "out-of-pocket" cost plus 10% when BWL energy can be supplied cheaper than other back-up energy sources. When BWL capacity is reserved in advance it will be provided at $2.00/kW/month or $.50/kW/week. -------------------- This agreement will provide participants energy at lowest possible cost until the Power Pool becomes operational in late 1991. -------------------- Res. No. 91-2-2 RESOLVED, That the Director and General Manager is hereby appointed to serve as the Lansing Board of Water and Light's representative to the Michigan Municipal Electric Association (MMEA). RESOLVED FURTHER, That the Assistant General Manager is hereby appointed to be the alternate representative in the absence of the primary representative. RESOLVED FURTHER, That the Corporate Secretary of the Board of Water and Light shall cause a true copy of this resolution to be mailed to MMEA. -------------------- MMEA is updating its records and has requested confirmation of BWL official representation. -------------------- February 26, 1991 17 INTERNAL AUDITOR Res. No. 91-2-3 That the Board of Commissioners advise Lansing City Council it has received a proposal dated January 24, 1991, and a clarification letter dated February 4, 1991, from Deloitte & Touche. The clarification letter quotes a not-to-exceed fee of$29,700 for audits of the Board of Water and Light and its Pension Fund for the fiscal year ending June 30, 1991. This proposal was requested in accordance with the City Council resolution adopted on May 30, 1989, regarding engaging independent auditors for the fiscal years ended June 30, 1989 - 1993. Further, that the Board of Commissioners advise Lansing City Council that the quoted cost appears reasonable and recommends the firm be retained to conduct these audits according to their proposal and clarification letter. -------------------- The Deloitte & Touche firm has conducted this professional audit in prior years on a competitive basis. -------------------- PENSION Res. No. 91-2-4 That Sally R. Campau, Administrative Secretary in Technical Services, be placed on a disability monthly pension of$544.72 per month effective February 1, 1991. She has selected Option I with the provision that after her death, if her husband, Richard M. Campau survives her, he will receive $544.72 per month for the rest of his life. Ms. Campau has worked for the BWL for 13.59 years. -------------------- Res. No. 91-2-5 That James E. Stewart, Electric System Operator C, at BESOC, be placed on a disability monthly pension of$1,020.08 per month effective July 2, 1990. He has selected Option VI with the provision that after his death, if his wife, Kathleen A. Stewart survives him, she will receive $816.06 per month for the rest of her life. Mr. Stewart has worked for the BWL for 23.33 years. -------------------- Respectfull submitted, Joseph Pandy, Jr. General Manager JP/rs 18 Febniary 26, 1991 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-2-1 and 91-2-2 (Administration) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolution 91-2-3 (Internal Audit) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN RESOLVED, That Resolutions 91-2-4 and 91-2-5 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER SEBOLT RESOLUTION OF TRIBUTE AS A MEMORIAL FOR E. LANE JESSOP WHEREAS, The members of the Board of Commissioners are saddened at the passing of their colleague and friend, E. Lane Jessop, who was an able and valued member of the Board for seventeen years. His sudden death at age 77 leaves a void that cannot be filled, but his presence enriched many people in this community; and WHEREAS, A Lansing native with strong ties to the Ingham County area, E. Lane Jessop graduated from Eastern High School and Michigan State University. He served our nation with distinction in the U. S. Navy during World War II, serving in the South Pacific Fleet. Upon his return to civilian life, he enjoyed a successful insurance career since 1935 and was the founder of the Lane Jessop Agency, Inc.;and WHEREAS, A man of many talents and interests, E. Lane Jessop was a past President of the Downtown Optimist Club, a past Master of Walter French Lodge #557 F.& A.M., a member of Capitol Chapter #9 R.A.M.; a former member of the Masonic Temple Association Board of Directors, a former Director of the Lansing Regional Chamber of Commerce, and the Urban Redevelopment Board. Highly respected as community involved and a public servant, E. Lane Jessop set standards of leadership that shall long endure as his legacy. In all his activities, E. Lane Jessop was known for his kindly words and his hearty disposition; and 19 bruary 26, 1991 WHEREAS, E. Lane Jessop was appointed w the as d Board of Commissioners e of the herBs and of Water and Light on February 25, 1974. He deeplyaired employees of this utility. He served d also exercised a committees eadershiphroeoas Truard steehof thetBoard Personnel Committee for ten years of Water and Light Pension Fund. ers of the NOW, THEREFORE, BE IT RESOLVED,honors and salutes the life, eadershipoard of nand achievements of Water and Light hereby officially E. Lane Jessop; and RESOLVED FURTHER, It is with great respect for his contributions to this Board, that we extend this expression of our condolences to his family; and RESOLVED FURTHER, That this resolution be inscribed on the Jessop,ofthe as evidence Bence of copy be transmitted to his dear wife and friend of fifty years, the esteem that will long be held for his memory by the Board of Commissioners. Adopted by the following vote: Yeas: Commissioners Belen, Evans, Hassler, O'Leary, Sebolt, Strolle and Williams Nays:None GENERAL MANAGER'S REMARKS The following activities were reported by the General Manager: EMPLOYEE FOOD DONATIONS. A letter of thanks was received by the BWL Minority Advisory Committee from Tony Benavides, Director of Cristo Rey Community Center, for over 500 pounds of donated food hank received ou ether from Camille Abood for area needy families. etheir donationWL uoft$163 Events Committee received a y to the Greater Lansing Food Bank to feed the hungry in the community. REVIEW OF BWL FINANCIAL STATUS. Mr. Pandy presented an overview of the BWL's financial condition. The following is a highlight of his report covering the 12 month period ending January 31, 1991: Unit Sales Water sales are up 1.4%, due to the new Customer Information System billing on a monthly basis rather than quarterly, which increased the units reported Electric sales are off by 9.9%; sales for resale are off more than 56% with Con low wer - Stem sales ars re offer s19.7%, as aost result oland f BOC s downturn in steam hout the uate se Steam Revenues - Water revenue is up 9.9% due to 1990 and 1991 rate increases - Electric revenue is down 5.9% - Steam revenue is down 19.9% Total revenue is down $8.5 million as compared to the same period last year. The net cash flow year to year is down $30 million. However, the previous year included $16 million of bond proceeds. 20 February 26, 1991 Despite budget tightening, the numbers are not doing well. • Budget cuts include: $6.5 million from O & M $7 million from capital • Revenues are 3.5% below budget • O & M expenses are 5.1% below budget • Total expenses are off 5% • Rates of return are below BWL targets: Water 2.32% Electric 4.10% Steam 10.19% a There are currently 48 employees less than budgeted e Staff is continuing to investigate ways to curtail expenses Lengthy discussion followed regarding alternatives being explored by staff which include: (1) reduction of capital expenditures, (2) freezing O & M budget at Fiscal 1990-91 level after cuts were made in October, 1990, (3) moderate rate increases spread over several years, and (4) borrowing through a bond issue during this time of low interest rates. These financial matters will be the topic of the April Committee of the Whole meeting. MARKETING CAPACITY AND ENERGY AT THE WHOLESALE LEVEL. A letter to the Michigan South Central Power Agency (MSCPA), written by Assistant General Manager Joe Wolfe, was handed out. The letter indicates the BWL is willing to provide limited amounts of capacity and energy to be used by MSCPA members for economic development purposes. The power would be sold on a rate basis similar to that being sold to Michigan Pubic Power Agency (MPPA) members. Mr. Pandy noted that MSCPA is an agency separate from MPPA. Five cities in Michigan are members of MSCPA and are paying the highest cost power in the state. LANSING REGIONAL CHAMBER OF COMMERCE - CAPITAL CHOICE. General Manager Pandy reported that a significant size customer is being pursued by the Chamber of Commerce, BWL, and EDC. The energy intensive company has indicated they are pleased with the BWL's low stable electric rates. Company representatives are planning to visit Lansing to look at sites within the BWL service area. More information will be available once a firm commitment is made. On motion of Commissioner O'Leary, the Board adjourned at 6:20 p.m. Mary E. S a, Secretar Y Filed: March 1, 1991 James D. Blair, City Clerk 1 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, January 22, 1991 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, Hassler, Jessop, O'Leary, Sebolt, Strolle, and Williams - 7 Absent: Commissioner Evans -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 SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS That minutes of regular session of December 18, 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. Lloyd Teets, 116 E. Elm Street, Lansing, appeared before the Board. He stated that would refer his right to petition the Commissioners for redress of grievances until immediately prior to adjournment of the meeting. N 2 January 22, 1991 CONMTTEE OF THE WHOLE REPORT January 22, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Committee of the Whole met with staff on January 15, 1991, to review the following items: 1. Steam Utility addition to Fiscal 1990-91 Capital Budget 2. Chilled Water System Present were Commissioners Belen, Evans, Jessop, Hassler, O'Leary, Sebolt, Strolle, and Williams. ADDITION TO CAPITAL BUDGET Steam Utility Director Joette Woodard-Yauk reported that BOC (Buick-Oldsmobile- Cadillac) has scheduled a shutdown of their Plant One facility for product changeover during June and July 1991. With one minor system change, the BWL will be able to take a complete shutdown of Moores Park Station and supply BOC's reduced steam requirements and the Central District customers from the Eckert Steam System during this time period. The shutdown of Moores Park will allow equipment repair and replacement work to take place, which due to the plant's ringed header configuration, has not been done since the plant was originally brought on line. The scope of the project was detailed. DISTRICT COOLING Staff presented an overview of the District Cooling optimization evaluation conducted by Lutz, Daily and Brain (LDB) consulting engineers and the status of the District Cooling Project. LDB recommended that the system be designed for an ultimate system load of 15,000 tons and an installed capacity of 19,500 tons. Estimated construction cost of the total system is $33,500,000. Thirty five facilities were identified for connection to the system. The District Cooling system was to be developed in phases. From start of engineering design to operation of the first phase is 16 months. After a detailed presentation, lengthy discussion was held on the following items: a) the impact of District Cooling on the steam and electric utilities and the BWL's ability to manage system demand, b) customers who had indicated a serious intent to negotiate contracts to connect to the system, c) a 20-year financial analysis, d) the pros and cons of establishing the system, and e) the proposed Chilled Water rate structure and hearing date. January 22, 1991 3 The Committee of the Whole recommends the adoption of the following resolutions: RECOM MNDATIONS Resolution 91-1-14 Steam Utility Addition to 1990-91 Capital Budget That the Moores Park Outage project be added to the Steam Utility's 1990- 91 Capital Budget as an authorized project not to exceed $400,000. It is estimated that $300,000 of the project monies will be expended in Fiscal Year 1990-91 and $100,000 carried over into Fiscal Year 1991-92. Resolution 91-1-15 Authorization to Proceed with Preliminary Engineering Design of District Cooling 1. That the proposed General Chilled Water Service Rate No. 1 be established for customers desiring service from the Board of Water and Light District Cooling System (Attachment A). 2. That a public hearing to solicit input on the General Chilled Water Service Rate No. 1 be set for Tuesday, March 12, 1991. This date could mean an April 15, 1991 effective date for the proposed rate. 3. That staff be directed to file the proposed rate and the public hearing date with the City Clerk as required by the Lansing City Charter on or before Thursday, January 24, 1991. 4. That staff be authorized to proceed with final engineering design provided sufficient contracts can be obtained to justify the District Cooling System. Staff is further authorized to bid the engineering design or use the consulting engineering firm of Lutz, Daily & Brain, depending upon the length of time it will take to obtain a contract for lease of the State Chiller Facility. The estimated cost of engineering for Phase I is $2 million. 5. Further, that a joint meeting with the Lansing City Council be set for a briefing on the Board of Water and Light's plan to establish a District Cooling System in the downtown area. 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, including Resolutions 91-1-14 and 91-1-15, be approved as presented. Adopted unanimously. 4 January 22, 1991 ATTACHMENT A Board of Water and Light,Lansing,Michigan Original Sheet No. CB1 PROPOSED GENERAL CHILLED WATER SERVICE RATE NO. 1 Availability-This rate is available to any customer desiring service from the Board of Water and Light (BWL)chilled water system. Service will be provided upon customer entering into a contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on BWL facilities. This rate is not available for standby or emergency service. Monthly Rate-Shall be computed in accordance with the following charges: Capacity Charge: $26.90 per ton for all tons of billing demand less than or equal to 105% of the contract demand, and $36.90 per ton for all tons exceeding 105% of the contract demand. Commodity Charge: $0.0910 per ton-hr Tax Adiustment-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 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-The billing demand shall be the maximum demand(tons) supplied during the 15- minute period of maximum use, but not less than 85% of the contract demand. Temperature Factor Adjustment-The customers commodity charge will be increased by 2.0% for each degree Fahrenheit(F) in the customers return water below the expected return temperature of 60 F. Metering-All services using chilled water from the BWL chilled water system shall be metered. The BAIL shall, through consultation with the customer, determine the form in which the commodity shall be metered. 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 BWL Rules and Regulations for Chilled Water Service which are incorporated herein by this reference. January 22, 1991 5 January 22, 1991 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: HUMAN RESOURCES Res. No. 91-1-1 That Patrick Harte, an Equipment Mechanic in Fleet Services, be awarded a total of$244.00 for suggestion proposal number 1990- 225, to install automatic shut-down units on heavy equipment used in solitary circumstances. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$1,690.00 in the first year. -------------------- LEGAL Res. No. 91-1-2 That the General Manager be authorized to retain the law firms of Dickinson, Wright, Moon, VanDusen and Freeman; Loomis, Ewert, Parsley and Ederer; Dykema, Gossett, Goodnow, Spencer and Trigg; Willingham and Cote'; and Varnum, Riddering, Schmidt and Howlett as special counsel, subject to approval of the Lansing City Council. These firms will provide, as needed, advice in the areas of employment relations, public finance, municipal law, litigation, real estate and general commercial law. These firms shall be retained for a period of one (1) year and shall be reimbursed at their respective hourly rates. Further, that Resolution No. 89-6-12 be, and is, hereby rescinded. -------------------- 6 January 22, 1991 LEGAL - (Continued) These firms are currently rendering, or have rendered, legal services to the BWL during the 1990-91 fiscal year. Each firm has offices in the Lansing area and were selected for specialized reasons, although on a given matter, one firm could perform as capably as another. The anticipated uses for these firms are as follows: Dickinson, Wright: labor and finance; Loomis, Ewert: rate matters; Dykema, Gossett: environmental, territorial disputes; Willingham & Cote': insurance claims, environmental; Varnum, Riddering: public power issues, MPPA opinion. Use of special counsel would be subject to the recommendation of Staff Counsel and approval of the General Manager. -------------------- PENSION Res. No. 91-1-3 That Chester B. Beagle, Coal Operator A in Coal Handling Department, be placed on a monthly pension of$1,666.93 per month effective January 2, 1991. He has selected Option III with the provision that after his death, if his wife, Lula Jean Beagle, survives him she will receive 75% or $1,250.20 per month for the rest of her life. Mr. Beagle has worked for the BWL for 39.50 years. -------------------- Res. No. 91-1-4 That Ray H. Blonshine, Secondary Meter Specialist in the Electric Maintenance and Metering Department, be placed on a monthly pension of$1,426.64 per month effective January 2, 1991. He has selected Option VI with the provision that after his death, if his wife, Alice L. Blonshine, survives him she will receive 90% or $1,283.98 per month for the rest of her life. Mr. Blonshine has worked for the BWL for 35.72 years. -------------------- January 22, 1991 7 PENSION - (Continued) Res. No. 91-1-5 That Laurence J. Dyer, Coal Operator A in Coal Handling Department, be placed on a monthly pension of$1,415.97 per month effective January 2, 1991. He has selected Option III with the provision that after his death, if his wife, Joyce Ann Dyer, survives him she will receive 65% or $920.38 per month for the rest of her life. Mr. Dyer has worked for the BWL for 33.52 years. -------------------- Res. No. 91-1-6 That Paul R. Gangstad, Water Plant Operator in Water Production Department, be placed on an early reduced monthly pension of $1,315.15 per month effective January 2, 1991. He has selected Option II with the provision that after his death, if his wife, Margey J. Gangstad, survives him she will receive 50% or $657.58 per month for the rest of her life. Mr. Gangstad has worked for the BWL for 30.66 years. -------------------- Res. No. 91-1-7 That Louise McHenry, Office Supervisor in ISD, be placed on a monthly pension of$1,567.56 per month effective January 2, 1991. She has selected Option VI with the provision that after her death, if her husband, Robert P. McHenry, survives her he will receive 15% or $235.13 per month for the rest of his life. Ms. McHenry has worked for the BWL for 34.04 years. -------------------- Res. No. 91-1-8 That Jaylene C. Vaughn, Clerk 2A in Credit Department, be placed on an early reduced monthly pension of$1,344.34 per month effective January 2, 1991. She has selected Option VI with the provision that after her death, if her husband, Eugene V. Vaughn, survives her he will receive 20% or $268.87 per month for the rest of his life. Ms. Vaughn has worked for the BWL for 35.91 years. 8 January 22, 1991 PENSION - (Continued) Res. No. 91-1-9 That James F. Weller, Operating Supervisor in Water Production Department, be placed on a disability pension of$1,702.77 per month effective January 2, 1991. He has selected Option I with the provision that after his death, if his wife, Joan I. Weller, survives him, she will receive $1,702.77 per month for the rest of her life. Mr. Weller has worked for the BWL for 34.77 years. -------------------- Res. No. 91-1-10 That Russell L. Williams, Station Shift Supervisor at Eckert Station, be placed on a monthly pension of$1,779.51 per month effective January 2, 1991. He has selected Option III with the provision that after his death, if his wife, Donna Jean Williams, survives him, she will receive 15% or $266.93 per month for the rest of her life. Mr. Williams has worked for the BWL for 35.30 years. -------------------- TREASURER/CONTROLLER Res. No. 91-1-11 Authorize the award of a purchase order to Business Resources, Inc., Lansing, MI for the period of January 22, 1991 to December 31, 1993 for the purchase of office supplies as required. The estimated value of the purchase order is $125,896. -------------------- Other bidders were Macauley's Office Supply, Lansing, MI. ($143,206), and DBI, Lansing, MI. ($151,156). -------------------- January 22, 1991 9 WATER Res. No. 91-1-12 That charges in the Board of Water and Light's Rules and Regulations for Water System Extensions, Sheet 12.05, be changed to $20.35 per linear-foot of watermain installed, with an additional 15% per linear-foot on improved roads, and $1,655.00 per hydrant installed during the 1991 construction season, and that these charges be applied to service lines tapped off applicable Board of Water and Light-financed watermains. -------------------- The recommended charges have been determined in accordance with the procedure set forth in the Water System Extension Policy (Sheets 12.03-12.04). They represent a decrease of$.25 per foot for main installation and an increase of$20.00 per hydrant for hydrant installation over the charges in effect for the 1990 construction season. -------------------- Res. No. 91-1-13 It is recommended that Sheet 8.00 and 8.02, Paragraph 2 and 6, be revised so that the Board of Water and Light assumes "ownership" of all water services regardless of whether installed by the BWL or the customer. Further, that the water utility be directed to perform all necessary maintenance replacement on former customer-owned services as if they were originally installed by the BWL. Sheet 8.00 2. INSTALLATION OF SERVICE CONNECTION All Customer Service Connections from the watermain in the street to a point inside the Customer's exterior building wall shall be installed only by the Board. The Board will maintain all Customer Service Connections whieh-th-e Board has installed. 10 January 22, 1991 WATER - (Continued) Sheet 8.02 6. MAINTENANCE OF SERVICE CONNECTION All repairs required by any Customer Service Connection which-has-beer}installed-by-th&Boud will be made by the Board at no cost to the Customer unless damage is a result of negligence, willful damage or carelessness by the Customer, owner or his tenants. Those-Eustomer Serviee Eonneetien-&-installed7-by-the-owoer-or--pr-ivate-e(mtFaetor piioF-te-1-92-7 Fein-theentire-Fesponsibility-o€the-ow-nef until seFvie-e4s--replac-ed-by-the-BoaFd,--as-eovered-by PaFagFaph-2,-Sheet-8.00-c&4hese-mles- -------------------- In paragraphs 2 and 6 above, wording to be removed is shown with a sttiket-hreugh. -------------------- The resolution places the 9362 owners with customer installed services on the same footing as other BWL Customers. These services have met or exceeded their useful life, thus their book value is zero. The resolution will eliminate the need for the customers to seek a plumber or to pay for a replacement service. See Clyde Dugan's memo of 12-14-90 enclosed. -------------------- Respectfully submitted, w Joseph Pandy, Jr. General Manager JP/rs ry 22, 1991 11 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution'91-1-1 (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 91-1-2 (Legal) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-1-3 through 91-1-10, respectively, (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-1-11 (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolutions 91-1-12 and 91-1-13 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS The following activities were reported by the General Manager: BWL SECURITY. General Manager Pandy advised that management has visited the BWL's Security Procedures Manual to assure that security procedures are in place during this time of war in the Persian Gulf. All employees have been informed to be especially mindful of the BWL's exposure to terrorist activities. Mr. Pandy and staff briefed on some of the measures being taken at BWL facilities. Mr. Pandy noted that there are no specific threats at this time, but prudent management dictates extra vigilance during troubled times. 12 January 22, 1991 U.S.S.R. CONFERENCE ON FREE ENTERPRISE AND TRADE In his January 17, 1991, memorandum to the Commissioners, General Manager Pandy attached a letter from the U.S.S.R. Association of Foreign Economic Cooperation for Medium and Small Business requesting the Lansing Regional Chamber of Commerce participate in the U.S./U.S.S.R. Conference on Free Enterprise and Trade. Mr. Pandy requested the Board's authorization to attend this conference. The BWL's policy allows the General Manager, each three years, to pursue a specific area or topic of interest which would be of value to the BWL. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That the General Manager is hereby authorized to participate in the U.S/U.S.S.R. Conference on Free Enterprise and Trade to be held May 18-25, 1991. FURTHER RESOLVED, That a sum of Five Thousand ($5,000) Dollars be authorized for said conference and research reimbursement. Adopted unanimously. THE SMART HOUSE SYSTEM. General Manager Pandy presented an overview of the Smart House system, which was developed by the utility industry and national home builders. The Smart House is an innovative energy and communications distribution system that enables convenient and centralized control of automated features throughout the home. The Smart House concept can be best described as a new type of electrical wiring and gas piping system with electronic components which allow the home subsystems to be functionally integrated. Some of the features of a Smart House package include: o Safety o Entertainment o HVAC o Lighting Control o Communications o Energy Management This concept was introduced in Dallas in 1985 by the National Association of Home Builders. Studies have indicated that a Smart House system would cost approximately $6,000 more than a conventional home, representing 4 to 5 percent of the building cost. Mr. Pandy stated he is interested in pursuing this concept in the BWL's service area in consortium with home builders, electrical contractors, and Consumers Power Company. Following discussion, there was a consensus of support among the Commissioners for the BWL to proceed with promoting the Smart House integrated home automation concept. January 22, 1991 13 PUBLIC COMMENTS Mr. Lloyd Teets presented a 20-page written petition of grievances to the Board of Commissioners, identified as Exhibit K-3. He stated that he liked putting things in writing so that his statements may be entered as an exhibit in a court of law. He said the purpose for his appearance was not to address the Board in detail on the alleged $19.94 (4501 Ingham Street) final bill, but to talk about his first two disputes on value of choice. Following an elapse of three minutes, Mr. Teets was reminded by Chairman Hassler that his time limit had expired. After brief comments, Mr. Teets stated that he would send the Board a copy of the balance of his prepared address. EXCUSED ABSENCES BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP That the absence of Commissioner Evans be excused. Adopted unanimously. On motion of Commissioner O'Leary, the Board adjourned at 6:02 p.m. v Ros ary Sullivan Assistant Secretary Filed: January 24, 1991 James D. Blair, City Clerk 1 MINUTES OF BOARD OF COMMISSIONERS' MEETING LANSING BOARD OF WATER AND LIGHT Tuesday, January 22, 1991 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, Hassler, Jessop, O'Leary, Sebolt, Strolle, and Williams - 7 Absent: Commissioner Evans -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 SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS That minutes of regular session of December 18, 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. Lloyd Teets, 116 E. Elm Street, Lansing, appeared before the Board. He stated that would refer his right to petition the Commissioners for redress of grievances until immediately prior to adjournment of the meeting. 2 January 22, 1991 CONBUTTEE OF THE WHOLE REPORT January 22, 1991 Board of Commissioners Board of Water and Light Lansing, MI The Committee of the Whole met with staff on January 15, 1991, to review the following items: 1. Steam Utility addition to Fiscal 1990-91 Capital Budget 2. Chilled Water System Present were Commissioners Belen, Evans, Jessop, Hassler, O'Leary, Sebolt, Strolle, and Williams. ADDITION TO CAPITAL BUDGET Steam Utility Director Joette Woodard-Yauk reported that BOC (Buick-Oldsmobile- Cadillac) has scheduled a shutdown of their Plant One facility for product changeover during June and July 1991. With one minor system change, the BWL will be able to take a complete shutdown of Moores Park Station and supply BOC's reduced steam requirements and the Central District customers from the Eckert Steam System during this time period. The shutdown of Moores Park will allow equipment repair and replacement work to take place, which due to the plant's ringed header configuration, has not been done since the plant was originally brought on line. The scope of the project was detailed. DISTRICT COOLING Staff presented an overview of the District Cooling optimization evaluation conducted by Lutz, Daily and Brain (LDB) consulting engineers and the status of the District Cooling Project. LDB recommended that the system be designed for an ultimate system load of 15,000 tons and an installed capacity of 19,500 tons. Estimated construction cost of the total system is $33,500,000. Thirty five facilities were identified for connection to the system. The District Cooling system was to be developed in phases. From start of engineering design to operation of the first phase is 16 months. After a detailed presentation, lengthy discussion was held on the following items: a) the impact of District Cooling on the steam and electric utilities and the BWL's ability to manage system demand, b) customers who had indicated a serious intent to negotiate contracts to connect to the system, c) a 20-year financial analysis, d) the pros and cons of establishing the system, and e) the proposed Chilled Water rate structure and hearing date. January 22, 1991 3 The Committee of the Whole recommends the adoption of the following resolutions: RECOMMENDATIONS Resolution 91-1-14 Steam Utility Addition to 1990-91 Capital Budget That the Moores Park Outage project be added to the Steam Utility's 1990- 91 Capital Budget as an authorized project not to exceed $400,000. It is estimated that $300,000 of the project monies will be expended in Fiscal Year 1990-91 and $100,000 carried over into Fiscal Year 1991-92. Resolution 91-1-15 Authorization to Proceed with Preliminary Engineering Design of District Cooling 1. That the proposed General Chilled Water Service Rate No. 1 be established for customers desiring service from the Board of Water and Light District Cooling System (Attachment A). 2. That a public hearing to solicit input on the General Chilled Water Service Rate No. 1 be set for Tuesday, March 12, 1991. This date could mean an April 15, 1991 effective date for the proposed rate. 3. That staff be directed to file the proposed rate and the public hearing date with the City Clerk as required by the Lansing City Charter on or before Thursday, January 24, 1991. 4. That staff be authorized to proceed with final engineering design provided sufficient contracts can be obtained to justify the District Cooling System. Staff is further authorized to bid the engineering design or use the consulting engineering firm of Lutz, Daily & Brain, depending upon the length of time it will take to obtain a contract for lease of the State Chiller Facility. The estimated cost of engineering for Phase I is $2 million. 5. Further, that a joint meeting with the Lansing City Council be set for a briefing on the Board of Water and Light's plan to establish a District Cooling System in the downtown area. 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, including Resolutions 91-1-14 and 91-1-15, be approved as presented. Adopted unanimously. 4 January 22, 1991 ATTACHMENT A Board of Water and Light,Lansing, Michigan Original Sheet No. CB1 PROPOSED GENERAL CHILLED WATER SERVICE RATE NO. 1 Availability-This rate is available to any customer desiring service from the Board of Water and Light (BWL)chilled water system. Service will be provided upon customer entering into a contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on BWL facilities. This rate is not available for standby or emergency service. Monthly Rate-Shall be computed in accordance with the following charges: Capacity Charge: $26.90 per ton for all tons of billing demand less than or equal to 105% of the contract demand, and $36.90 per ton for all tons exceeding 105% of the contract demand. Commodity Charge: $0.0910 per ton-hr Tax_Adiustment-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 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-The billing demand shall be the maximum demand(tons)supplied during the 15- minute period of maximum use, but not less than 85% of the contract demand. Temperature Factor Adiustment-The customers commodity charge will be increased by 2.0% for each degree Fahrenheit(F) in the customers return water below the expected return temperature of 60 F. Metering -All services using chilled water from the BWL chilled water system shall be metered. The BWL shall, through consultation with the customer, determine the form in which the commodity shall be metered. 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 BWL Rules and Regulations for Chilled Water Service which are incorporated herein by this reference. A A--toa• F.Mefivv. 5 1991 January 22, 1991 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: HUMAN RESOURCES Res. No. 91-1-1 That Patrick Harte, an Equipment Mechanic in Fleet Services, be awarded a total of$244.00 for suggestion proposal number 1990- 225, to install automatic shut-down units on heavy equipment used in solitary circumstances. -------------------- By implementing this proposal, it is estimated that the BWL will realize a net savings of$1,690.00 in the first year. -------------------- LEGAL Res. No. 91-1-2 That the General Manager be authorized to retain the law firms of Dickinson, Wright, Moon, VanDusen and Freeman; Loomis, Ewert, Parsley and Ederer; Dykema, Gossett, Goodnow, Spencer and Trigg; Willingham and Cote'; and Varnum, Riddering, Schmidt and Howlett as special counsel, subject to approval of the Lansing City Council. These firms will provide, as needed, advice in the areas of employment relations, public finance, municipal law, litigation, real estate and general commercial law. These firms shall be retained for a period of one (1) year and shall be reimbursed at their respective hourly rates. Further, that Resolution No. 89-6-12 be, and is, hereby rescinded. -------------------- 6 January 22, 1991 LEGAL - (Continued) These firms are currently rendering, or have rendered, legal services to the BWL during the 1990-91 fiscal year. Each firm has offices in the Lansing area and were selected for specialized reasons, although on a given matter, one firm could perform as capably as another. The anticipated uses for these firms are as follows: Dickinson, Wright: labor and finance; Loomis, Ewert: rate matters; Dykema, Gossett: environmental, territorial disputes; Willingham & Cote': insurance claims, environmental; Varnum, Riddering: public power issues, MPPA opinion. Use of special counsel would be subject to the recommendation of Staff Counsel and approval of the General Manager. -------------------- PENSION Res. No. 91-1-3 That Chester B. Beagle, Coal Operator A in Coal Handling Department, be placed on a monthly pension of$1,666.93 per month effective January 2, 1991. He has selected Option III with the provision that after his death, if his wife, Lula Jean Beagle, survives him she will receive 75% or $1,250.20 per month for the rest of her life. Mr. Beagle has worked for the BWL for 39.50 years. -------------------- Res. No. 91-1-4 That Ray H. Blonshine, Secondary Meter Specialist in the Electric Maintenance and Metering Department, be placed on a monthly pension of$1,426.64 per month effective January 2, 1991. He has selected Option VI with the provision that after his death, if his wife, Alice L. Blonshine, survives him she will receive 90% or $1,283.98 per month for the rest of her life. Mr. Blonshine has worked for the BWL for 35.72 years. -------------------- January 22, 1991 7 PENSION - (Continued) Res. No. 91-1-5 That Laurence J. Dyer, Coal Operator A in Coal Handling Department, be placed on a monthly pension of$1,415.97 per month effective January 2, 1991. He has selected Option III with the provision that after his death, if his wife, Joyce Ann Dyer, survives him she will receive 65% or $920.38 per month for the rest of her life. Mr. Dyer has worked for the BWL for 33.52 years. -------------------- Res. No. 91-1-6 That Paul R. Gangstad, Water Plant Operator in Water Production Department, be placed on an early reduced monthly pension of $1,315.15 per month effective January 2, 1991. He has selected Option II with the provision that after his death, if his wife, Margey J. Gangstad, survives him she will receive 50% or $657.58 per month for the rest of her life. Mr. Gangstad has worked for the BWL for 30.66 years. -------------------- Res. No. 91-1-7 That Louise McHenry, Office Supervisor in ISD, be placed on a monthly pension of$1,567.56 per month effective January 2, 1991. She has selected Option VI with the provision that after her death, if her husband, Robert P. McHenry, survives her he will receive 15% or $235.13 per month for the rest of his life. Ms. McHenry has worked for the BWL for 34.04 years. -------------------- Res. No. 91-1-8 That Jaylene C. Vaughn, Clerk 2A in Credit Department, be placed on an early reduced monthly pension of$1,344.34 per month effective January 2, 1991. She has selected Option VI with the provision that after her death, if her husband, Eugene V. Vaughn, survives her he will receive 20% or $268.87 per month for the rest of his life. Ms. Vaughn has worked for the BWL for 35.91 years. -------------------- 8 January 22, 1991 PENSION - (Continued) Res. No. 91-1-9 That James F. Weller, Operating Supervisor in Water Production Department, be placed on a disability pension of$1,702.77 per month effective January 2, 1991. He has selected Option I with the provision that after his death, if his wife, Joan I. Weller, survives him, she will receive $1,702.77 per month for the rest of her life. Mr. Weller has worked for the BWL for 34.77 years. -------------------- Res. No. 91-1-10 That Russell L. Williams, Station Shift Supervisor at Eckert Station, be placed on a monthly pension of$1,779.51 per month effective January 2, 1991. He has selected Option III with the provision that after his death, if his wife, Donna Jean Williams, survives him, she will receive 15% or $266.93 per month for the rest of her life. Mr. Williams has worked for the BWL for 35.30 years. -------------------- TREASURER/CONTROLLER Res. No. 91-1-11 Authorize the award of a purchase order to Business Resources, Inc., Lansing, MI for the period of January 22, 1991 to December 31, 1993 for the purchase of office supplies as required. The estimated value of the purchase order is $125,896. -------------------- Other bidders were Macauley's Office Supply, Lansing, MI. ($143,206), and DBI, Lansing, MI. ($151,156). -------------------- 1 9 WATER Res. No. 91-1-12 That charges in the Board of Water and Light's Rules and Regulations for Water System Extensions, Sheet 12.05, be changed to $20.35 per linear-foot of watermain installed, with an additional 15% per linear-foot on improved roads, and $1,655.00 per hydrant installed during the 1991 construction season, and that these charges be applied to service lines tapped off applicable Board of Water and Light-financed watermains. -------------------- The recommended charges have been determined in accordance with the procedure set forth in the Water System Extension Policy (Sheets 12.03-12.04). They represent a decrease of$.25 per foot for main installation and an increase of$20.00 per hydrant for hydrant installation over the charges in effect for the 1990 construction season. -------------------- Res. No. 91-1-13 It is recommended that Sheet 8.00 and 8.02, Paragraph 2 and 6, be revised so that the Board of Water and Light assumes "ownership" of all water services regardless of whether installed by the BWL or the customer. Further, that the water utility be directed to perform all necessary maintenance replacement on former customer-owned services as if they were originally installed by the BWL. Sheet 8.00 2. INSTALLATION OF SERVICE CONNECTION All Customer Service Connections from the watermain in the street to a point inside the Customer's exterior building wall shall be installed only by the Board. The Board will maintain all Customer Service Connections whieh-the-Board h-as-inswled. 10 January 22, 1991 WATER - (Continued) Sheet 8.02 6. MAINTENANCE OF SERVICE CONNECTION All repairs required by any Customer Service Connection whieh-has-beep,in9ftH.ed-by-th&Boafd will be made by the Board at no cost to the Customer unless damage is a result of negligence, willful damage or carelessness by the Customer, owner or his tenants. Those-CustomerSer-yiee Eonneetiens 4nstalled--by-the-ewr}er-or--ptivate-eentraelor prior--te-I-}2-7-rein-the-extrFe-Fesponsibilily-ef the-owner until-�r:viee-is--r,*aee 4y-the-Board,--as-eover,ed-by PaFagFaph-2,7--Sheet-8.00-e lhese-n&s-; -------------------- In paragraphs 2 and 6 above, wording to be removed is shown with a slFike-thFeugh. -------------------- The resolution places the 9362 owners with customer installed services on the same footing as other BWL Customers. These services have met or exceeded their useful life, thus their book value is zero. The resolution will eliminate the need for the customers to seek a plumber or to pay for a replacement service. See Clyde Dugan's memo of 12-14-90 enclosed. -------------------- Respectfully submitted, Joseph Pandy, Jr. General Manager JP/rs ►ary 22, 1991 BY COMMISSIONER SEBOLT-- R WILLIAMS SECONDED BY COMMISSIONE of the General RESOLVED, That Resolution 91-1-1 (Human Resources) Manager's Recommendations be approved Adopted unanimously. BY COMMISSIONER SEBOLT-- WILLIAMS SECONDED BY COMMISSIONER D That Resolution 91-1-2 (I-egg) of the General Manager's RESOLVE , Recommendations be approved, Adopted unanimously. BY COMMISSIONER SEBOLT-- R WILLIAMS SECONDED BY COMMISSIONS res ectively, (Pension) of That Resolutions 91-1-3 through 91-1-10, P RESOLVED, 's Recommendations be approved. the General Manage- Adopted unanimously. By COMMISSIONER SEBOLT-- WILLIAMS SECONDED BY COMMISSIONER Resolutions 91-1-11 (Tress Reso urer/Controller) of the General That RESOLVED, Manager's Recommendations be approved. Adopted unanimously. By COMMISSIONER SEBOLT-- R WILLIAMS SECONDED BY COMMISSIONS of the General That Resolutions 91-1-12 and 91-1-13 (Water) RESOLVED, roved. Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS the General Manager: The following activities were reported by advised that management hasdvunedthis he Bm Lof ITY. General Manager Pandy rocedures are in place g BWL SECUR Security Procedures Manual to assure that security p bed pe some of the measures ec employees have been informed tube especially mindful o the e S y and staff b war in the Persian Gulf. All emp .y specific threats at this time, facilities. Mr. Pandy noted that there are d sP BWL's exposure to terrorist activities. Mr. Pan y during troubled times. being taken at BWL but prudent management dictates extra vigilance u g January 22, 199i U.S.S.R. CONFERENCE ON 1991, memorandum to the CommiRs EonerN ENTERPRISE AND U.S.S.R. Association of Forei n TRADE In his January 17, requesting the Lansing g Economic Cooperation for Medium attached a letter from the Conference on Free En Chamber of for edium and Small Business attend this conference. Th Band Trade. Mr. pand -requested Participate in the U.S./U.S.S.R. Pursue a specific area or topic of interest which would General Manager,the Board's authorization to y allows the General be of value to the BW three years, to BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT RESOLVED, That the General Ma nager anageris hereby authorized to 1991 Conference on Free Enterprise and Trade to be held May in the y 18-25, FURTHER RESOLVED, That a sum of Five Thousand ($5,000) Dollars be authorized for said conference and research reimbursement. Adopted unanimously. THE SMART HOUSE SYSTEM Smart House system Ms d • General Manager Pand The Smart goose is an innovative enerevelgy by the utility induPresented an overview of the convenient and centralized control of automated features throu ry and national home builders. gy and communications distribution system that enables House concept can be best described as a new t with electronic components which allow the home subs st ghout the home. The Smart Some le the features of a Smarttype of electrical wiring and gas Piping House package Y ems to be functionally integrated.m P ge include: o Safety o HVAC o Entertainment o Communications ° Lighting Control o Energy Management This concept was introduced in Dallas in 1985 by the National Studies have indicated that a Smart a conventional home, representing Smart 4 Association of Home Builders. House system would cost approximately interested in pursuing teips conce gin the Bpercent of the building c $6,000 more than builders, electrical contractors, aped Consumers,pservice Wer C� g cost. Mr. with sited he is area in consortium with home Following discussion, there was a consensus of supportCompany. BWL to proceed with promoting the Smart g among the Commissioners House integrated home automation concept.the 13 PUBLIC COMMENTS Mr. Lloyd Teets presented a 20-page written petition of grievances to the Board of Commissioners, identified as E i as an exhibit nta hat he liked court of law. He d thethings in purposetfog h so that his statements may be entered is appearance was not to address the Boarddisputes in ton value alleged $19.94 (4501 Ingham Street) final bill, but to talk about his first Following an elapse of three minutes, Teets Mr aTeets stated that he would send the Board a Hassler that his time limit had expired. After brief comments, copy of the balance of his prepared address. EXCUSED ABSENCES BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP That the absence of Commissioner Evans be excused. Adopted unanimously. On motion of Commissioner O'Leary, the Board adjourned at 6:02 p.m. . cv Ros ary Sullivan Assistant Secretary Filed: January 24, 1991 James D. Blair, City Clerk