HomeMy WebLinkAbout1994 Minutes BOWL 01 -05-94A08 : 25 IRCH
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PUBLIC NOTICE
Schedule of Regular Meetings
of the
Board of Water and Li.Qht Commissioners
For the First Six Months of 1994
Regular meetings of the Board of Water and Light Commissioners of the City of Lansing,
Michigan, are scheduled to be held at 5:30 p.m. in the Board Room on the Second Floor
of the Main Office Building, 123 West Ottawa Street, on the following dates:
1994
January 25 - Tuesday
February 22 - Tuesday
March 22 - Tuesday
April26 - Tuesday
May 24 - Tuesday
June 28 - Tuesday
In the event a special meeting or rescheduled meeting is held, a notice of same will be
posted at 123 West Ottawa Street, Lansing, Michigan, at least 18 hours prior to the time
of the meeting.
In accordance with the American with Disabilities Act (ADA), please
call the Corporate Secretary's Office at 371-6033 a week in advance of
the public meeting to request special accommodations such as
mobility, visual, hearing or other assistance.
Posted by order of the Board of Water and Light Commissioners in conformity with Act
267, PA 1976.
BOARD OF WATER AND LIGHT
6-
Mary . ova, C4orate Secretary
(517) 3 -6033
Date Posted: January 4, 1994
cc: City Clerk
Mayor's Office
City Council Office
Township Clerks
Paee 130
MINUTES OF BOARD OF COMMISSIONERS' MEETING
r, n,1) ri:.,, t1• 4
. 1 I
LA;NSING BOARD OF WATER AND LIGHT CiLC fit': i G
LA NIG CI fY C L E R
Tuesday, December 20, 1994
The Board of Commissioners met in rescheduled regular session at 5:30 p.m.. in the Main Office
Building. 123 West Ottawa Street. Lansing. Michigan. The meeting was called to order by Chairman
Hassler.
Present: Commissioners Christian. E%ans. Hassler. Lontz. O'Leary. Sebott. Strolle. and Williams-8
Absent. None
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That minutes of regular session of November 22. 1994. be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED
THE OPPORTUNITY TO ADDRESS THE COMIbIISSIONERS 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 AND PETITIONS
There were no communications or petitions.
Hoard Meeuna Minutes 131
December 20. 1994
PERSONNEL COMMITTEE REPORT
The Personnel Committee met on December 15. 1994. at 12 Noon. to revueN� the status of the Pension
Fund investments.
Present %Ncre Commissioners Strolle (Chair). Evans. O'Leary. and Sebolt.
Pension Fund Investments. The Committee reviewed the status of the Pension Fund investments for the
period covering July I. 1994. through September 30. 1994. Committee recommendations have been
submitted to the Pension Fund Trustees for action.
Retirement Benefit Increases. The Committee reviewed supplemental actuarial valuations to determine
the increase in the unfunded actuanal accrued liability and the pension plan contribution rate under
%anous monthic pension increase options.
Following deliberation,the Personnel Committee recommends the following resolution for Board action:
increases to Monthlv Pension and Other Benefits
(94-12-1)
RESOLVED.That the monthly pension paid to pensioners or beneficiaries of pensioners
who retired prior to January 1. 1991. be increased by 1.0%for each year retired before
January 1. 1991. for a maximum increase of$150.00 per month. The increase is to take
effect January 1. 1995, Vested pensioners do not receive this increase. The Personnel
Committee plans to review pension levels again in 1998 for a possible increase effective
January 1. 1999.
RESOLVED FURTHER. That the Medicare reimbursement for eligible pensioners and
spouses be increased to S25 per month. effective January 1. 1995.
RESOLVED FURTHER. That effective January 1. 1995. pensioners or beneficiaries
who do not need to have hospitalization coverage through the BWL may. with proof of
other insurance, drop their basic hospitalization. These pensioners or beneficiaries will
be paid the equivalent of the BWL portion of the single coverage premium under the
point-of-service plan on a monthly basis. BWL pensioners or beneficiaries will not be
allowed to duplicate BWL coverage or be eligible for BWL cash in lieu of flexible
benefits plan payment if covered by a BWL plan as their alternate health coverage.
Board of Water and Light estimated annual operating costs will increase$173.900. due to the pension
increase,and $31.500 due to the Medicare subsidy increase.
Respectfully submitted,
John Strolle. Chair
PERSONNEL COMMITTEE
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER WILLIAMS
That the Personnel Committee Report. including Resolution 94-12-1 (Increases to
.1 fonthh,Pension and tither benefits)be approved as presented.
.adopted unanimously.
Page 132 Board Meeting Minutes
December 20. 1994
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole ntct on December 13. 1994. to receive update reports on the follo«ing items:
I BWL and Department of Social Services Total Quality Improvement Team Report
Electric Transmission and Distribution 15 Year Plan
Present NNere: Commissioners Williams(Chair Pro Tem), Christian, Hassler, Lontz. 0-Leary. Sebolt. and
Strollc. Excused absence was Commissioner Evans(out of town).
BW L AM)DEPARTMENT OF SOCIAL.SERVICES(DSS) TOTAL Qt:ALITI'IMPROVEMENT TEAM REPORT.
Trent Bannon. Supervisor of Credit and Collections in the BWL's Customer Service Department.
presented an overview on the formation of the BWL and DSS Total Quality Improvement (TQI)Team.
The mission of the TQI Team was to improve communication responses between the BWL and DSS so
that essential account information is provided to DSS in a timely, accurate and cost effective manner. The
leant s objective xNas to (1) identify solutions acceptable to both DSS and BWL. (2) reduce average
response time to DSS requests. and(3) reduce BWL costs associated with providing DSS requests. A
cause and effect diagram was displayed showing the methods used for improving the process and the
results. With the process improvement identified and the necessary steps taken for the successful
completion of this project.the action plan was implemented August 1994. The following are the benefits
which resulted for the BWL and DSS.
BWL Benefits:
• Eliminated the need for a dedicated person to respond to over 10.000 DSS requests annually.
• A full-time BWL Customer Service Representative is now available for other customer calls.
• Service to DSS has improved.
• Increased understanding of DSS procedures and improved communications.
DSS Benefits:
• Immediate access to accurate BWL customer information.
• Reduced process time for information requests.
• Improved service and response time to DSS clients.
Electric Transmission and Distribution Fifteen Year Development Plan. Bruce Archer. Senior
Electric Planning Engineer, presented the BWL's future anticipated BWL electric transmission system
expansion and reinforcement needs as well as major distribution system improvements. Mr. Archer
reported that the 13-year plan represents a basic building block.from which future reviews will expand in
both detail and scope. An executive summary was presented of the capital investment involved. the issues
driving the investment.and the impact on manpower resources. The basis for the projects and guidelines
for project development were discussed.
Respectfully submitted.
Gerald W. Williams, Chair Pro Tem
COMMITTEE OF THE WHOLE
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER EVANS
That the Committee of the Whole Report be received as presented.
Adopted unanimously.
13oard Meetins Minutes 133
December 20, 1994
GENERAL `TANAGER'S RECOMMENDATIONS
kDMINISTRATIVE
Res. No. 94-12-2
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 sir
(0) months.
1995
January 24 - Tuesday
February 28 - Tuesdav
March 28 Tuesday
Apri125 - Tuesday
Mav 23 - Tuesdav
June 27 - 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 9. 199�.
--------------------
Res. No. 94-12-3
That the Board approve Amendment No. 6 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 Contract will be extended thirteen (13) months. with an
expiration date of January 31. 1996.
2. There shall be no minimum volume commitment.
3. Rates will be reduced by$0.23 per ton and will be as follows:
RATES
District Single Car Trainload
Kenova&Thacker 1 $17.55 S 17.04
Thacker II $18.04 S 17.54
;'asc 1 4 Board Meeting Minutes
December 20. 1994
4 Thesc rnes N%ill be held firm and free from escaiation for the enure
amendment period.
--------------------
By amending this contract with Norfolk Southern and Grand Trunk Western. the BWL
Will be able to maintain its broad base of potential Spot coal suppliers. This will ensure
that Spot coal competition is maximized and purchased at the lowest delivered cost
possible.
--------------------
Res. No. 94-12-4
That the Board retain the services of Energy Services Group. Inc. (ESG) to assist the
Board of Water and Light(BWL)with fuels procurement related matters. More
Specifically.ESG will be assisting with the economic analysis and procurement
associated with the acquisition of private rail car equipment.the Costain IFC87 coal
contract price re-opener and any other fuel supply related matters that may arise on an
as-needed. as-required basis.
-------------------
The recommendation of utilizing the services of Energy Services Group. Inc. is based on
a sole source bid. ESG assisted the BWL in its most recent coal and transportation
contract negotiations and has a very thorough understanding of BWL operations. This
use of ESG.s services will cover the period from January 1 to December 31. 1995 and
«ill be paid at an hourly rate of S135 with a total estimated cost of$20.000 (exclusive of
travel and lodging).
--------------------
Res. No. 94-12-5
Authorize the General Manager and BWL Staff to pursue the commercial development
of the Ottawa Station. subject to further review by the Board before contracts are
awarded.
--------------------
Development is consistent with the Task Force Report of November 7. 1994.which has
been reviewed with the Mayor and City Council at the joint meeting of December 6.
1994.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolutions 94-12-2 through 94-12-5. respectively. be approved.
Adopted unanimously.
Board Meeting Minutes 135
December 20. 1994
HUMAN RESOURCES
Res. No. 94-12-6
That Mikeael Dikeman. a Construction Mechanic Assistant for Construction Services.
and John Holliday. an Apprentice Lineworker for Overhead Line Construction. each be
awarded a total of$399.18 for suggestion proposal number 1994-158. to use plastic non-
perforated hose kith the super vac, which saved the cost of installing four permanent
v ac lines.
--------------------
By implementing this proposal. it is estimated that the BWL will realize a net savings of
57.233.68 in the first year.
--------------------
Res. No. 94-12-7
That Roger L. Simmons. a Maintenance Mechanic Supervisor for Production
Maintenance. be awarded a total of$145 for suggestion proposal number 1995-028 to
install scre,-ns on suction lines to prevent foreign objects from getting into pumps and
check valves.
--------------------
By implementing this proposal. it is estimated that the BWL will realize a net savings of
S700 in the first year.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER SEBOLT--
That Resolutions 94-12-6 and 94-12-7 be approved.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-12-8
Resolved. to adopt the following rate schedules elective January 13. 1995:
General Steam Service- Rate No. 1 (rate schedule attached)
Industrial Steam Service -Rate No. 2 (rate schedule attached).
I'aae 136 Board Meeting Minutes
December 20. 1994
These rates �Nerc the subject of a Public Hearing on December 13. 1994. The new rates
appl} to steam used on or after January 13. 1995.
Further Resolved. to rescind General Steam Service- Rate No. 1 effective September 5.
1991 and Industrial Steam Service-Rate No. 2 effective April 1. 1990.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-12-8 be approved.
.Adopted unanimously.
WATER
Res. No. 94-12-9
That the Board authorize the General Manager and Corporate Secretary to enter into a
Buv/Sell agreement for the purchase of the following parcel of land located on the
north,,yest corner of Grovenburg Road and Edgewood Blvd., Lansing, described as:
Parcel#151 Block 230. Section 7.T3N R2W. COM 1317.14 FT.
S. of NE COR SEC 7.TH W 441.68 FT.. SE LY 469.1 FT
ALONG 1475.39 Fr RAD CURVE TO LT CHORD BEARING
S 47 DEG 01MIN 33SCD. E 467.13 FT. N 71.71 FT. E 100 Fr.
N 245.28 FT TO BEG.
Purchase cost of this parcel is$15.000 not including fees and closing costs.
-------------------
The Buy/Sell Agreement will be executed through Prudential Hubbell Realty for the
purchase of this parcel. The purchase of this parcel was anticipated as part of the
previously authorized Capital Project#85-47. Authorization 9200. (Land acquisition
and engineering for well #307A as part of the State of Michigan Act 307 Well
Replacement Program).
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-12-9 be approved.
Adopted unanimously.
Hoard Meetine Minutes 137
December 20. 1994
GENERAL MANAGER'S REMARKS
General Manager Pand} reported on the following items:
Electric Utility Update. The export market continues to be very strong. The Systems Operations
Department reports that export sales are up 145.8%through November as compared to the same time
period last Near.
Steam Utility Update. General Motors (GM) has expressed renewed interest in the BWL supplying
steam to Glvl's Fisher Bode plant. Negotiations between the Steam Utility and GIN/1 are in process.
Water Utility Update. On December 19. Delta Township Trustees considered two items related to their
eater sNstem. Thee defeated a motion, by a vote of 6 to I. to build their own iron removal system.
Ho«cvcr thcv Notcd o to I in favor of continuing negotiations with the BWL for an agreement to provide
the toxNnshtp with conditioned water. The Delta Township Board is scheduled to meet again on January
16. 1995. for a final decision on the best approach for their water supply.
Old Newshoys Report. On December 16, a total of$796.55 was collected from BWL employees for the
Old Newsbovs. This is an increase from the amount collected last year.
Holiday Greetings. On behalf of the employees. General Manager Pandy thanked the Board for their
support and�%ishcd them a Mem• Christmas and a Happy New Year.
REMARKS BY COMMISSIONERS
The Commissioners extended their holiday greetings to the employees.
EXCUSED ABSENCES
None
ADJOURNMENT
On motion of Commissioner Lentz. the Board adjourned at 5:50 p.m.
6 . 41111,
Mary E. a, Secretary
Filed: December 22, 1994
Marilvnn Slade, Cite Clerk
Board of Water and Light, Lansing, Michigan First Revised Sheet No. SB1
GENERAL STEAM SERVICE
RATE NO. 1
Availability -This rate is available to anv customer receiving service from the Board of Water and Light (BWL) steam
distnbution system with a maximum gauge pressure of fifteen pounds per square inch (15 psi).
Steam services at gauge pressures above 15 psi but not exceeding 100 psi, when available. may he supplied at the option
of the BWL or upon request by the customer.
Nature of Service - Saturated steam up to a maximum gauge pressure of 15 psi except as indicated above.
Nionthiv Rate
Customer Charge 53.70 per customer per month
Energy Charge Billing Months of June through November
56.35 per 1000 lbs. for the first 200,000 lbs.
$6.69 per 1000 lbs. for all 1000 lbs. over 200,000 lbs.
Billing Months of December through May
$6.45 per 1000 tbs for the first 200,000 tbs.
56.79 per 1000 lbs. for all 1000 lbs. over 200.000 lbs.
Surcharge - A surcharge of ten (10) percent shall be added to the above rates for steam service supplied upon customer's
request for service at gauge pressure above 15 psi but not exceeding 100 psi.
Fuel Cost Adjustment - The fuel cost adjustment shall consist of an increase or decrease of 0.16 ($0.0016) cents per
thousand pounds of steam billed for each full 0.1 ($0.001) cent or fraction thereof increase or decrease in the average
delivered cost of fuel burned monthly above or below 168.3 ($1.683) cents per million Btu. (A fraction of 0.05
(50.0005) cents or less will not be considered a full 0.1 ($0.001) cent. a fraction of 0.06 (50.0006) cents or greater will
be considered a full 0.1 ($0.001) cent.)
The price per million Btu for each billing month shall be the average delivered cost of fuel consumed during the
preceding calendar month.
Amine Treatment Adjustment - The amine treatment adjustment allows for the monthly adjustment of rates to reflect
the actual cost incurred due to amine feed. The factor shall be applied to each 1000 pounds (tbs) billed. The factor shall
consist of 1.124 times the weighted average amine cost per 1000 tbs treated during the previous 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 anv other charges against the BWL's property, or its operation, or the
production and/or sale of steam, to offset any such cost and thereby prevent other customers from being 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.
Delaved 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.
Adopted: December 20, 1994 Effective: January 13. 1995
Board of Water and Light, Lansing, Michigan First Revised Sheet No. S132
GENERAL STEAM SERVICE
RATE NO. 1
Reconnect Charue - .-% reconnect charge of S25.00 shall be added to any account which discontinues and reconnects
scrvice at the same address within a twelve ( l2) month period.
Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Steam Service which
are incorporated herein by this reference.
Adopted: December M. 1994 Effective: January 13, 1995
Board of Water and Light, Lansing, Michigan First Revised Sheet No. SB3
INDUSTRIAL STEAM SERVICE
RATE NO. 2
Availabilitv: This rate is available to any customer engaged in mining or manufacturing and receiving steam at any BWL
plant wall at a minimum gauge pressure of 250 psi. Service will be provided upon customer entering into a steam supply
contract with the BWL. Terms and conditions of the contract may vary due to customer requirements and the impact on
BWL facilities.
Monthly Rate:
Demand Charge: 50.80 per pound per hour (lb/hr) for all lb/hrs of contract demand.
50.70 per pound per hour (lb/hr) for al lb/hrs exceeding contract
demand
Commodity Charge: $3,88 per thousand pounds (Mlb)
Fuel Cost Adjustment: The fuel cost adjustment shall consist of an increase or decrease of 0.16 ($0.0016) cents per
thousand pounds of steam billed for each full 0.1 ($0.001) cent or fraction thereof increase or decrease in the average
delivered cost of fuel burned monthly above or below 168.3 ($1.683) cents per million Btu. [A fraction of 0.05 ($0.0005)
cents or less will not be considered a +u11 0.1 ($0.001) cent: a fraction of 0.06 ($0.0006) cents or greater will be
considered a full 0.1 (SO.001) cent.J
The price per million Btu for each billing month shall be the average delivered cost of fuel consumed during the preceding
calendar month.
Minimum Charge: Monthly Demand Charge above.
Taff Adiustment: Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes, license fees, or any other charges against the BWL's property. or its operation, or the production and/or sale
of steam, to offset any such cost and thereby prevent other customers from being compelled to share such local increases.
Billing Demand: The billing demand is the maximum demand (1b/hrs) supplied during the 15 minute period of maximum
use during the month, but not less than the contract demand.
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 Steam Service which are
incorporated herein by this reference.
Adopted: December 20. 1994 Effective: January 13, 1995
Paee 121
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday,November 22, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building, 123 West
Ottawa Street. Lansing, Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Christian. Hassler. Lontz. O'Leary. Sebolt. Strolle, and Williams-7
Absent: Commissioner Evans.
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT
SECONDED BY COMMISSIONER STROLLE
That minutes of regular session of October 25. 1994. 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 Street. Lansing, asked how the water districts established.in Delhi Township
impact a regional water authority.
General Manager Pandy responded that the 106 water districts in the Charter Township of Delhi will have
no impact on the proposed regional water authority.
Mr. Teets stated that he is in favor of regionalization, but is not in favor of the way the Mid-Michigan
Water Authority is being structured. He said that in his opinion it does not best serve the stockholders of
the Board of Water and Light(BWL).
Board Meetine Minutes Page 122
November 22, 1994
COMMUNICATIONS AND PETITIONS
There were no communications or petitions.
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on November 8, 1994, to discuss the following topics:
1. ISD Projects
2. ISD Contingency Planning
3. Capital Projects Status
P.resent were: Commissioners Christian.Evans,Hassler,Lontz, O'Leary, Sebolt, Strolle, and Williams
(Chair Pro Tem).
ISD Projects. Harvey Briggs, Information Systems Department(ISD)Manager, presented a progress
report of ISD projects completed over the past two years and future work flow. Local Area Network
(LAN) installations throughout BWL facilities were reviewed. The LAN system has allowed users to
expedite business by capturing and forwarding communications more efficiently through electronic mail.
ISD projects listing labor hours and estimated labor costs were reviewed. Through coordinated efforts,
main emphasis has been placed in the development of a corporate database for efficiency in storing,
retrieving, and organizing data on customers,employees,and financial operations. Discussion was held
relative to criteria and economic analyses used in setting ISD project priorities.
ISD Contingency Planning. Joyce Linne, Supervisor of ISD Systems Information, reported on the status
of ISD's Contingency Planning project. An overview of Contingency Planning Phases I (August 1991 to
.August 1993)and II(October 1993 to March 1994) was presented. The testing process carried out over the
past six months was reviewed. A simulation test of recovery procedures is to be conducted annually
thereafter. The current Contingency Plan will be used during any extended outage of the Data Center to
ensure timely restoration of applications which are critical to the continuing operation of the Board of
Water and Light.
Capital Projects Status. Project Engineering staff presented status reports on the following projects:
■ FINISHED WATER TRANSMISSION SYSTEM. Project Engineer Jan Nelson presented an update on the
design and construction status of the new High Lift Station and the High Lift Electric Reliability
project for the Finished Water Transmission System. The new pumping station will be located south
of the John F. Dye Water Conditioning Plant. Contracts committed and those proposed were
reviewed. Budget cost estimates for the High Lift Station and Electric Reliability Projects are
$5,470,000 and$1.145,000 respectively. The total estimated cost for both projects is$6,615,000.
The pumping station is scheduled for operation by June of 1995.
■ CONTINUOUS EMISSION MONITORING SYSTEM. Project Engineer Mike Spurbeck presented the project
scope of the Continuous Emissions Monitoring(CEM) System. This project covers the design and
installation of an EPA certified CEM System for each flue at the Eckert and Erickson Stations. There
are six flues,one for each unit. at Eckert and one at Erickson. This will require a total of seven CEM
Svstems. The Moores Park and Ottawa Station flues are not required by the EPA to be included in
the CEM System. Each CEM System will monitor emissions from one of the BWL's electric
generating units and will generate a report of emissions data to the EPA under provisions of
40CFR75 requirements. Data from the existing opacity monitors was integrated into the new CEM
Page 123 Board Meeting Minutes
November 22, 1994
Svstem for monitoring and reporting to the EPA along with the emissions data. Final installation,
testing, and certification of the CEM System is required to be completed by January 1. 1995. The
original budgeted cost estimate for this project was$3.500,000. The present projected completion
cost for the project is$2.932.000.
■ OTTAWA STATION PCB EQUIPMENT REPLACEMENT. Project Engineer Ed Mote reported on the project
scope of PCB equipment replacement at Ottawa Station. He reported that PCB equipment
replacement costs were higher than estimated.
Original project scope included:
• Remove six(6)existing PCB House Service Transformers
• Remove six(6)existing PCB Precipitator Transformers
Install one(1)non-PCB House Service Transformer
Additions to project scope
• Install one(1)backup non-PCB House Service Transformer
• Remove PCB contaminated concrete flooring
The installation of the second transformer was decided upon because it was found through system
testing that in the event of the loss of the original transformer or its feeding cable, the
compressed air supply needed for the operation of critical high voltage circuit breakers could not
be maintained. With the addition of the second transformer,such a first contingency loss would
have no effect on either the air compressors or the circuit breakers they support.
After removal of the transformers. it was discovered that PCB had leaked and contaminated the
concrete,which necessitated the removal and replacement of the contaminated concrete before
the transformers could be installed.
The Committee of the Whole presents the following resolution for Board approval:
Ottawa Station PCB Equipment Replacement
Major Capital Protect Overrun and Project Additions
(Resolution 94-11-1)
RESOLVED, That the cost estimate for Authorization 9166,Project No. 93-107,
Ottawa Station(PCB Equipment Replacement)be increased as follows:
Original Estimated Cost-$230.000
Revised Completion Cost-$305,000
■ CEDAR STREET CHIMNEY DEMOLITION AND REPAIR. Project Engineer Chandrakant Khiroya(a.k.a.
CC)reported on the project scope of the demolition and repair of the Cedar Street chimney.
Original scope of work included:
• demolition of top 40' -0" of the chimney
• tuck pointing masonry joints
installation of new cap and grounding system.
Addition to project scope:
• Original estimate included$52,500 for the demolition and repair of the
chimnev. The low bid received in response to request for proposals was
$31,557 over the estimate.
The Committee of the Whole presents the following resolution for Board approval:
Board Meeting Minutes Page 124
November 22, 1994
Cedar Street Chimney Demolition and Repair
Maior Capital Project Overrun
(Resolution 94-11-2)
RESOLVED, That the cost estimate for Authorization 9365.Project No. 95-125, Cedar
Street Chimney be increased as follows:
Original Estimated Cost $ 69.000.00
Revised Completion Cost $100,557.00
Respectfully submitted
Committee of the Whole
BY COMMISSIONER HASSLER--
SECONDED BY COMMISSIONER SEBOLT
That the Committee of the Whole Report, including Resolutions 94-11-1 (increasing cost
estimate for Ottawa Station PCB Equipment Replacement)and 94-11-2 (increasing cost estimate
for Cedar Street Chimney Demolition and Repair), be approved as presented.
Adopted unanimously.
General Manager Pandy distributed a copy of an additional recommendation relating to a capital project
overrun and project additions for the Voice Messaging System.
TECHNICAL SERVICES (late item)
Res. No. 94-11-6
That the cost estimate for Authorization 9169,Project No. 93-136, Voice Messaging
System be increased as follows:
Original Estimated Cost- $2101,000
Revised Completion Cost-$276,000
The increased costs were due to:
1. Bids rece;ved for recommended equipment higher than estimated.
2. Additional engineering costs due to rebid of equipment after department review
and redefining of the scope of the voice messaging system.
3. Addition of a UPS system to support the BWL's storm management system with
the voice mail system.
4. Addition of one-time CENTREX connection costs.
The system is targeted to be installed in January, 1995.
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER SEBOLT
That supplemental Resolution 94-11-6 be approved as presented.
Adopted unanimously.
Page 125 Board Meeting Minutes
November 22, 1994
GENERAL MANAGER'S RECOMMENDATIONS
PENSION
Res. No. 94-11-3
That Cynthia L. Krawczyk,a Clerk C in Meter Reading,be placed on a disability
pension of$384.55 per month effective September 1, 1994. She has selected Option IV
with the provision that after her death, if her husband, William A. Krawczyk, survives
her he will receive 100%or$384.55 per month for the rest of his life as provided under
Option IV. If her husband predeceases her. the pension amount of$384.55 will revert
back to the regular pension amount of$402.07 for the rest of her life.
Mrs. Krawczvk has worked for the BWL for 11.11 years and is 41 years of age.
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That Resolution 94-11-3 be approved.
Adopted unanimously.
WATER
Res. No. 94-11-4
That the Board agree to serve water to proposed Water District No. 106.Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
November 1, 1994 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. 106 established by Township
resolution on 11/1/94, and will provide a potable water supply to said district.
2. The Township will be required to make a$17,116.60 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 CVI)covering the furnishing of a potable water supply
in Water District No. 106.
4. Water mains are to be installed in accordance with the current
Board's Policies and Procedures for Water Service.
Board Meeting Minutes Page 126
November 22, 1994
Further. that upon receipt of the sum of$17.116.60 from the Township, the project be
approved for installation. and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement(Supplement CVI)to furnish a potable
water supply in Water District No. 106.
The geographical area of Water District No. 106 is as follows:
Charlar Commercial Park,Lots 1-10.
To provide a potable water supply within the proposed new district requires the
installation of 780 feet of water main and fire hydrants at an estimated cost of
$17,116.60,
The main extension will serve ten(10)commercial customers. One-time connection
fees will amount to$13.300. Estimated annual revenue is$6.000.
Water mains to be installed in Fall/Winter of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of the
agreement.
Res. No. 94-11-5
Authorize the General Manager and the Corporate Secretary to enter into a contract
with Stoner Associates for the conversion of the Stoner Workstation Service(SWS)
hydraulic model from a single user annual license to a single user permanent license.
Upgrade costs of$36.570 are to be phased in over a period of two years. FY'95 costs
are included in the current budget. Phasing of the costs are as follows:
FY'95 $15,900
FY'96 $20,670
In November of 1993. the SWS software was licensed on a one(1)year trial basis for a
cost of$12,000. Based on performance of the SWS model over the last year and with a
review of other available hydraulic software packages, it is recommended that the BWL
modify its license agreement to convert to a permanent single user license of the SWS
software. Annual maintenance and support costs of$4,900 will be incurred beginning
in FY'97.
The SWS software package is a proprietary product of Stoner Associates and is
unavailable from other commercial sources. Therefore. Stoner Associates should be
considered a sole source for purchase of the SWS software license.
-------------------
BY COMMISSIONER SEBOLT
SECONDED BY COMMISSIONER CHUSTIAN
That Resolutions 94-11-4 and 94-11-5 be approved.
Adopted unanimously.
Page 127 Board Meeting Minutes
November 22, 1994
GENERAL MANAGER'S REMARKS
General Manager Pandy reported on the following items:
Safety Update. A copy of the American Public Power Association's (APPA) updated safety manual was
displayed. APPA's new safety manual is being used by the BWL system wide. The BWL's total safety
performance during the month of October was.04, with a fiscal year to date total of 1.34 compared to.85
for the same time last year. Our goal is to remain below 4.0
Excess Power Sales Up. The BWL is continuing to quote for excess power sales to other entities through
the Michigan Public Power Agency(MPPA)pool. There was an opportunity to quote an additional 20
megawatts to Wolverine Power Cooperative, however, MPPA was not awarded the bid. Wolverine had
decided they wanted to have a diversity of sources. Despite that,BWL exports sales are above last year's
sales and above forecast.
Flovd & Marlene Henley Thank BWL. A copy of a thank you letter received by Karl Bachman.
Supervisor of the BWL's Electric Transmission and Distribution was distributed for review. The letter
expresses Floyd&Marlene Henley's appreciation to the BWL's T&D crew for their efficient work in
cleaning up debris after trimming tree branches on the north side of Willoughby Road.
Baseball Stadium Update. BWL staff continues to meet weekly with the City's baseball stadium
committee. Mr. Pandy reported that the original plan to lower the grade of Cedar Street has been
discarded.and replaced with an approximately one and one-half foot encroachment on Cedar and Larch
Streets. The architects have been able to fit the stadium into the footprint of the Cedar/Larch corridor
without involving major utility relocations; however,there is an active water well on the stadium site that
would have to be accommodated. The BWL has given the City an estimate for the well relocation.
Status on Property Dispute with the City. General Manager Pandy reported that there is a proposed
resolution before the Council's Ways and Means Committee with regard to the disposition of funds from
the sale of the BWL's surplus property at 6551 S. Pennsylvania. After the real estate commission is paid,
the proposed resolution returns$42,000 to the City and$37,000 would be retained by the BWL to
purchase a comparable parcel for locating a water well. The proposed resolution. which was on the
Council's November 14th agenda, was pulled for further discussion by Councilmembers. Efforts to
resolve the proceeds issue from the sale of this parcel continue. The question at stake is how the Council
is likely to approach similar property sale situations in the future.
Return on Equity Payments to the City. General Manager Pandy advised the Commissioners of Mayor
Hollister's request for monthly return on equity payments to the City instead of a lump sum payment at
the end of the BWL's fiscal year. Mr. Pandy handed out a memo written by Treasurer/Controller Dana
Tousley, dated November 17, 1994, summarizing in part the provisions of the June 30, 1992, return on
equity agreement with the City. Mr. Tousley states in his memo that paying the City on a monthly basis
"will change the terms and conditions of the agreement and the financial impact on BWL customers. To
remain financially whole, the BWL should discount each monthly payment at the interest rate it would
earn if it held the money until June 30." The Commissioners engaged in a lengthy discussion relative to
the role of the BWL as a utility. It was agreed that a delicate balance exists between the BWL's
responsibility in attracting a strong customer base and maintaining a competitive rate structure for its
customers. Following discussion the consensus was that the Board believes the return on equity
agreement with the City should be followed in its written form; monthly payments would need to reflect
the time value of money at the current interest rate or other compensating considerations given by the
City.
Board Meeting Minutes Page 128
November 22, 1994
Color Change for BWL Vehicles. The BWL has selected a new color for its replacement vehicles. The
official BWL color change fiom tan to white was suggested by BWL Fleet Services Manager Nick Burwell
for several reasons:
■ Only one manufacturer could provide the BWL's tan color for light duty vehicles
■ Changing the official color to white will allow nearly all auto manufacturers to bid
■ The "up charge" cost paid for the custom tan color will be eliminated
■ The "pre-replacement" in 1995 of a significant portion of on-the-road vehicles. as a result of 1992
Energy Act requirements, will produce a significant cost savings to the BWL
The last vehicle color change took place in 1985 during the BWL's centennial celebration, when the color
green was replaced with tan.
The United Way Campaign a Success. The BWL is enjoying another successful United Way Campaign
by raising over$97,500. The BWL's goal was$93,000. The average per capita is over$127 per
employee. Special recognition was given to Project Engineering(RA 410)with 33 out of 34 employees
donating and Account Services(RA 539)with 10 out of 11 employees donating. The Non-Bargaining
employees donated over$63.000. the Bargaining employees donated over$33,500, and the Retirees gave
over$900. Mr. Pandv noted it is rather remarkable that with 200 fewer employees. the BWL has
maintained the same giving level as in the past.
BWL Steam Utility Proposal to Sparrow Hospital. An executive summary of a proposal jointly
prepared by the Steam and Electric Utilities to supply the energy needs of Sparrow Hospital and Health
Systems was distributed for review. Sparrow Hospital has been given four equipment options for energy
alternatives over a 20-year contract period. One alternative is a steam main connecting Sparrow to the
BWL's steam system with BWL electric service as currently provided. In the second alternative Sparrow's
steam and electric requirements are provided from a co-generation facility owned and operated by the
BWL and sited on Sparrow's campus.
Share the Success Update. The Share the Success points through October, 1994 total 312. Associated
with what has been achieved this year. there would be savings of over$2 million. The Share the Success
payment based on 3.12 would be$1,092.000, and the net gained to customers would be over$932.000.
Consumers Power Co Proposes an Electric Revenue Increase. Consumers Power Company(CPCo)
has filed a request with the Michigan Public Service Commission on November 10, 1994. for an annual
electric revenue increase of$104.4 million,assuming that the Commission will approve its currently
pending proposal for a Rate K tariff for industrial customers(Case U-10625). In summarizing the
proposed revenue increases by percent, Mr. Pandy noted that the residential class will bear the burden of
the increase as outlined below:
Proposed Proposed
Initial Second Step
Increase Adjustment
Residential 10.83% 4.25%
General Secondary_ 0.38% -4.13%
General Primary 1.57% -2.16%
Streetlighting 8.67% 3.02%
Rate UR -0.77% -4.72%
Public Pumping 2.76% - 1.52%
Total Sales Revenue 4.90% 0.00%
Board Meeting Minutes
Page 129 November 22, 1994
CPCo has also submitted two alternative revenue requirement proposals: (1) if CPCo is allowed to offer
discounts to certain large customers and those customers are retained on its system, and if CPCo is
allowed to recover the costs of purchasing an additional 260 megawatts of capacity from the Midland
Cogeneration Venture project. CPCo states its revenue increase requirement will be$87.5 million in base
rates and approximately $52 million in power supply costs:or (2) in the event that its currently pending
Rate K proposal is not approved and certain large customers leave CPCo's system, CPCo's revenue
increase requirement will be$120.5 million.
Rescheduled Board Meeting. Moved by Commissioner Sebolt, seconded by Commissioner Christian,
(Resolution 94-11-7)that the regular meeting of December 27 be rescheduled to December 20.
Adopted unanimously.
REMARKS BY COMMISSIONERS
Commissioner Hassler announced that General Manager Joe Pandy will be completing ten years of
employment at the BWL on December 1, 1994. He reminded the Commissioners that Joe Pandy barely
came on board when the worst ice storm in the BWL's history struck the area. Among significant issues
noted during his past ten years were:
■ The Belle River buy-in was finalized
■ Strategic Planning was introduced to the BWL
■ Ottawa Station was retired
■ The potential sale of the BWL was halted
■ The City and BWL entered into a ten-year Return on Equity Agreement
Commissioner Hassler presented Joe Pandy with a ten-year BWL jacket,and on behalf of the
Commissioners and employees congratulated him on his accomplishments.
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That the absence of Commissioner Evans(due to a schedule conflict)be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Lontz, the Board adjourned at 6:30 p.m.
Mh va, tary
Filed. November 30, 1994
Marilynn Slade, City Clerk
Page III
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
C. 1
Tuesdav, October 25 1994
L���xSl;�� Ci 1 io
The Board of Commissioners met in regular session at 5:30 p.m.. in the Main Office Building, 123 West
Ottawa Street. Lansing, Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Christian. Evans. Hassler. Lontz. O'Leary. Sebolt. Strolle, and Williams-8
Absent: None
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That minutes of regular session of September 27. 1994. be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED
THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE
AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS.
ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT
THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
COMMUNICATIONS AND PETITIONS
A letter of thanks to the Board of Water and Light was received from the Lansing Gus Macker
Tournament Director. E. Paul Rathbun II. Special appreciation was extended to BWL employee. Calvin
Jones. for his organizational contribution.
Placed on file.
Board Meeting Minutes Page 112
October 25. 1994
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on October 11. 1994. to discuss the following topics:
1. Steam Rate Increase
2. Alternative Fuels Test Burn Results
3. Water Regionalization
4. Fiscal Year 1994-95 Strategic Planning
Present were: Commissioners Evans. Hassler. Lontz. Sebolt. Strolle, and Williams(Chair Pro Tem).
Absent were Commissioners Christian(vacation)and O'Leary(out of town due to business matters).
STE:xu R VTEs. Steam Utility Director Joette Woodward-Yauk reviewed projected steam revenue
requirements for the ten-year period 1994-2004. She reported that the steam utility's current net rate of
return is.41%. Without a rate increase, the projected net rate of return through 1999 would drop to a
-4.5%. The Board has an established goal of a 6 percent net rate of return for the Steam Utilitv. The last
Central District rate increase went into effect Julv 16. 1983. An overall rate increase of 3.0%to 3.1%
targeted for implementation on January 13. 1995 is being proposed. A similar increase by late 1997 or
early 1998 is also being studied. These rate increases would provide sufficient revenue to pay increasing
operating costs and required capital expenditures for the Steam Utility.
The Committee of the Whole submits the following resolution:
Set Public Hearing Date
for Steam Rate Changes
(94-10-1)
RESOLVED. That the proposed steam rates listed below and detailed in the attached
proposed rate schedules be made the subject of a public hearing prior to further
consideration(see Attachment A at the end of minutes. after page 120).
Rate No. 1 -General Steam Service
Rate No. 2 - Industrial Steam Service
FURTHER RESOLVED. That a public hearing to solicit public input on this matter be
set for Tuesday. December 13. 1994. 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. as required in the City Charter, information regarding pending
changes in the rate structures.
ALTERNATIVE FUELS. Stiff reviewed the status of the following projects:
■ Erickson Coal Pile Drainage Improvements Project. Fuel Supply&Results Engineer. Bill
Krawczyk, presented a status report on the Erickson Coal Pile Drainage Improvements Project. The
following project objectives were met and completed on September 13. 1994. at a cost of$184.535:
1. Excavate existing ditches and clean out or replace culverts to re-establish proper
drainage.
2. Reclaim the coal pile inside the 250 ft. boundary.
3. Enhance the drainage around the coal handling buildings.
4. Complete final grading of area affected by the 1990 oil spill.
5.-_Screen the Ottawa coal for blending with Erickson coal pile.
Page I I. Board Meeting Minutes
October 25, 1994
■ Western Coal Test Burn. Fuel Supply& Results General Supervisor Ron Ishimoto presented an
overview of initial obscryauons of the Western Coal Test Burn Project. The purpose of the project
iNas to ascertain x�hether burmna a blend of Western and Eastern Coal could be utilized at the BWL
to reduce overall delivered costs. The test burn was conducted on Unit#4 at Eckert Station for a
duration of 6-1/2 «eeks (8/22.94 - 10/5/94). The blend ratio was based on Eastern Coal (80%)and
low sulfur Western coal (20`0). Mr. Ishimoto reported that Western coal test burn results indicate(1)
the dust suppression system N%as very effective, (2) there was no negative operational impact. and(3)
coal handling was not adversely impacted. Pending results to be reported to the Board at a later date
include the results of the ash leachate analysis and the boiler performance test.
■ Enviro-Fuel Test Burn. Moores Park Steam Plant Manager, Pete Thelen, presented an overview of
Enviro-Fuel (paper pellets) test burn results. The test was conducted on Unit#13 at Moores Park
Station for a duration of 3-1/2 weeks (7/25/94 - 8/15/94). The blend ratio was based on 75%MP88
coal and 25%Enviro-Fuel. Mr. Thelen reported on test burn observations, the environmental impact.
test burn costs. ash disposal cost comparisons and future opportunities.
The Committee of the Whole submits the following resolution:
.Next Phase of Enviro-Fuel Test
(94-10-2)
RESOLVED_ Staff is directed to proceed with a next phase test burn to determine
whether the coal/Em iro-Fuel blend can satisfy operational parameters under full load.
• Negotiate a new price for the Enviro-Fuel that will offset the additional landfill
costs.
• Negotiate a lower$/cu.yd. ash disposal rate with Granger
• Research potential ways to reduce ash leachate residuals
• Work with Montcalm Fibre to enhance the quality control on the production
side to reduce the amount of variability from shipment to shipment.
• Research how other users of Enviro-Fuel are disposing of ash.
W:\-rER REGIONALIZATION. General Manager Pandy reviewed the status of water regionalization
discussions with the City. The Board adopted a resolution on April 24. 1994. requesting the City to adopt
the Articles of Incorporation of the Mid-Michigan Water Authority and to designate the BWL as its agent.
The Citv Council referred this item to the Council's Public Service Committee. BWL staff has met
numerous times with the Public Service Committee to answer questions during their review. This issue
has been subsequently submitted to the Council's Committee of the Whole.
Fisc.,rL 1995 STRATEGIC PLANNING. The Commissioners received a copy of the Fiscal 1995 Business Plan.
General Manager Pandy presented a summary report on strategic planning issues discussed by staff: A
Task Force on Electric Competition has been formed to develop strategies to meet and exceed goals set by
the competition in the electric industry. The Ottawa Station Task Force is moving forward to identify
alternatives, estimated costs. and schedule for the BWL to make Ottawa available for commercial
development. This item will be a topic of discussion at the joint meeting between the BWL
Commissioners and the Citv Council scheduled to be held on November 10, 1994.
Respectfully submitted.
Gerald W. Williams, Chair Pro Tern
Committee of the Whole
3oard MeeUII2 MMULCS Page 114
October 25. 1994
BY COMMISSIONER WIL1,IAMS--
SECONDED BY COMMISSIONER SEBOLT
That the Committee of the Whole Report. including Resolution 94-10-2 regarding the
nest phase of the Enviro-Fuel Test. be approved as presented.
Adopted unanimously.
FINANCE COMMITTEE REPORT
The Finance Committee met on October 18. 1994. to review the Fiscal Year 1993-94 audit of the Board of
Water and Light (BWL).
Prescnt wcrc Commissioners Christian (Chair), Hassler. and Lontz. Absent was Commissioner Williams
(due to business matters).
The Finance Committee reports that the review of the audit of the BWL Financial Statements for the year
ended June 30. 1994, was held with Daniel Lockman and Robert Phelps of Deloitte&Touche and BWL
management and staff.
An overview of the financial results was presented by management and Deloitte&Touche. The auditors
proposed no audit adjustments that m their judgment, either individually or in the aggregate, would have
a significant effect on the BWL's financial reports. The auditors also reported that no material weakness
in internal accounting control has come to their attention. Mr. Dan Lockman stated that they experienced
no difficulties in performing their audit and noted that they received full cooperation of management and
staff.
The recommendation of the Finance Committee is included with the General Manager's
Recommendations to the Board.
Respectfully submitted.
Ernest J. Christian. Chair
Finance Committee
BY COMMISSIONER CHRISTIAN--
SECONDED BY COMMISSIONER SEBOLT
That the Finance Committee Report be approved as presented.
Adopted unanimously.
GENERAL:MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-10-3
That the Board award a two year purchase order to Benetech. Inc.. to provide freeze
conditioning services for all BWL contract coals. The purchase order particulars are as
follows:
Pa_ee 115 Board Meeting Minutes
October 25. 1994
1. The purchase order covers the freeze conditioning seasons for FY 95 and FY 96.
2. The purchase order utilizes the BWL proven method of application that is weather
forecast dependent. BWL controlled and accountable. and uses todav's best
chemistry to maximize the effectiveness of treatment while minimizing cost.
3. The purchase order contains provisions for termination upon lack of performance
and/or cooperation.
4. Pricing to be as follows:
a. Side Release Agent. BT-945. at$0.90/gal. Last year's cost was
$0.91/gal.
b. Bodv Feed. BT-922. at$0.68/gal. Last year's cost was$0.77/gal.
c. Bodv Feed for Moores Park Steam Plant coal. BT-910. at
$1.22/gal. Last year's cost was$1.25/gal.
d. Application fee; $12.00/hour. Last year's cost was $12.00/hour.
The above pricing will remain in effect and firm for the FY 95 and FY 96
seasons.
--------------------
By entering into this purchase order with Benetech. Inc.. the BWL will further reduce its
freeze conditioning costs. while maintaining its low incidence of coal that could not be
unloaded.
--------------------
Res. No. 94-104
Copies of 1994 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 16. 1994.
The audit report for the Board of Water and Light and the report on the system of
internal control has been received and reviewed by the Finance Committee. The
auditors found no significant items that warranted submission of a management letter.
The 1994 audit report for the Plan for Employees' Pensions has been received and
reviewed by the Personnel Committee.
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 State
Journal is not required by law. However. it may be done at the discretion of the General
Manager.
--------------------
Board Meeting Minutes Page 116
October 25, 1994
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolutions No. 94-10-3 and 94-10-4 be approved.
Adopted unanimously.
COMMUNICATIONS
Res. No. 94-10-5
Authorize Market Strategies, Inc. to conduct a semi annual attitude survey at a price not
to exceed$17.500.
--------------------
The survev is used to determine the perception of residential customers toward the BWL
and its services. and to measure performance of communications programs and customer
satisfaction for the Share the Success program. The survey is administered twice
annually for approximately the same cost as the former annual survey. This is done by
shortening the questionnaire and interviewing fewer customers.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-10-5 be approved.
Adopted unanimously.
WATER
Res. No. 94-10-6
That the Board agree to serve water to proposed Water District No. 105, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on October
18. 1994. 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. 105 established by Township
resolution on October 18. 1994. and will provide a potable water supply to said
district.
2. The Township will be required to make a$30.624 non-refundable contribution-
in-aid of construction to cover the charges set forth in the Board's Policies and
Procedures for Water Service for installing the necessary distribution facilities
to serve said district.
Paee 117 13oard Meeting Minutes
October 25. 1994
The Board and the Township are to enter into a written agreement(Supplement
CV)covering the furnishing of a potable water supply in Water District No.
105.
4. Water mains are to be installed in accordance with the current Board's Policies
and Procedures for Water Service.
Further. that upon receipt of the sum of$30.624 from the Township. the project be
approved for installation, and the General Manager and the Corporate Secretary be
authorized to sien the aforementioned agreement(Supplement CV) to furnish a potable
eater supply in Water District No. 105.
The geographical area of Water District No. 105 is as follows:
Jamestown Condominiums. Lots 1 thru 31.
To provide a potable water supply within the proposed new district requires the
installation of 1.320 feet of water main and fire hvdrants at an estimated cost of
S30.624.
The main extension will serve thirty-one(31) residential customers. One-time
connection fees will amount to$20.832. Estimated annual revenue is$10.540.
Water mains to be installed in FaIVWinter of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of the
agreement.
-------------------
BY COMMISSIONER CI-IRISTIAN--
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-10-6 be approved.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy reported on the following items:
Active Employee Compensation Costs. A copy of an annual report of active employee compensation
for Fiscal Year 1993-94 was handed out. The analysis compares Fiscal 1994 costs by specific type of
compensation per hour paid and per hour worked with Fiscal 1993. Mr. Pandv noted that total
compensation decreased by 0.1%as compared to the same period last year. Average full-time employees
for Fiscal 1994 was at 859 compared to 891 in Fiscal 1993. a reduction of 3.6%. The numbers are
expected to look even better this next vear by virtue of the hiring freeze, the recent early retirements that
occurred on September 1. 1994. and other cost-cutting efforts.
City of Lansing Matters. General Manager Pandy presented an update on pending matters with the
Citv.
3
Board Meetine Minutes Paee 118
October 25. 1994
■ Real Estate Transactions. Mr. Pandy reviewed the history of the BWL's vacant 6551 S. Pennsylvania
Avenue property. Originally. the 12.899 sq. ft. triangular parcel was excess Pennsylvania Avenue
right-of-way from the State of Michigan to the City of Lansing. On August 16. 1982. the City
Council resolved that the property be sold to the BWL for one dollar(S 1.00) for a future well site.
The BWL holds the quit claim deed in its name. The Safe Drinking Water Act now requires well
isolation from other developments, thus this parcel cannot comply. On December 21. 1994. the
Board declared the property as surplus and no longer used or useful for the operations of the BWL's
utilities. The Board authorized the sale of the property to a private developer. subject to City Council
approval. The City Council referred this item to the Ways and Means Committee where it continues
to remain until the question of how to divide the proceeds between the City and BWL is resolved.
The City Attorney has been asked by the Ways and Means Committee to render a legal opinion on
this matter. The BWL has maintained that its position is to keep BWL customers whole with respect
to the value of the land. It is not the BWL's intent to make a profit from the sale. but rather to
purchase suitable replacement land for public utility use. The BWL's proposed solution is to share in
the fair market value with the City of Lansing receiving the bulk of the proceeds.
■ Water Regionalization. Staff Attorney Larry Wilhite is continuing to work with City Jim Attorney
Smiertka relative to various concerns over the Mid-Michigan Water Authority. A copy of an opinion.
dated October 20. 1994. prepared by Mr. Wilhite and given to the City Attorney, was handed out for
reference. The opinion addresses the question of financial responsibilities for bonded indebtedness of
the Mid-Michigan Water Authority. The opinion concludes that the revenue bonds of the Mid-
Michigan Water Authority arc not general business obligations of the BWL or City of Lansing. In the
event of a default. the Revenue Bond Act makes it clear that the bondholder may only look to the
revenues derived from the operation of the public improvement, and not to the full faith and credit of
the Citv unless it is pledged. A copy of a resolution adopted by the City Council on October 24. 1994.
regarding the City of Lansing's intent to participate in the Mid-Michigan Water Authority was also
distributed to the Commissioners. The resolution states that the City's intent to participate in the
Mid-Michigan Water Authority is "subject to review and approval of the final published Articles of
Incorporation and Bylaws by the Citv Attorney and official adoption by Citv_ Council after publication
of the final Articles Of'Incorporation."
;News Article on Quality of Tau Water. A USA TODAY news article. dated October 20. 1994, featured
a section on how people from Midwest cities view their water systems. Mr. Pandy called attention to a
nice endorsement from a BWL customer. Betty Nixon, who was quoted in the article. When asked if she
was concerned with the quality of Lansing's drinking water, she responded. "No. I guess it's because I
have had faith in the system that our water is safe. I've considered our water here in Lansing to be safe,
and it tastes good in comparison to a lot of cities that I've visited. I think we're fortunate."
Timeline for Water Regionalization Efforts. A memo prepared by Water Utility Director Clyde Dugan.
dated October 25. 1994. regarding the timeline for action on wholesale water agreements and the Mid-
Michigan Water Authority was distributed for reference. Mr. Pandy reviewed the schedule of meetings
and deadlines for the Mid-Michigan Water Authority, Lansing Township, Delta Township, and the City
of Lansing. The Mid-Michigan Water Authority is scheduled to become operational January 1. 1995.
Timeline for Lansing Baseball Stadium. The timeline to construct the proposed Lansing "Sultans"
Baseball Stadium b_v March 31. 1996 was reviewed. The BWL is working with the City to help them meet
their 13-1/2 month construction schedule. Utilities that need to be replaced have been identified.
Stormwater Utility Studv. The City Council received a studv from Mayor Hollister on developing a
stormwater utility program for Lansing. The Mayor is asking for the Council's assistance in convening an
Ad Hoc Committee for evaluating the study and developing the final report and recommendation for
implementation of the stormwater utility. The BWL is among one of three billing options being explored.
Page 119 Board Meeting Minutes
October 25, 1994
Area Hospitals End Merger Discussions. The Michigan Capital Healthcare Board voted to discontinue
merger discussions with St. Lawrence Hospital/Mercy Health Services because of financial considerations.
Mr. Pandv expressed his concern that the Lansing community will not realize the millions of dollars in
savings that could have been effected by a merger of the two hospitals.
Michigan Municipal Electric Association (MMEA) Conference. General Manager Pandv reported on
the MMEA Fall Conference held October 19-21, t994. The changing power market was the focus of
discussions at the conference. Commissioner Williams who was also in attendance shared his
observations on the challenge competition presents for the survival of an electric utility in the next decade.
Steam Sales Update. Commissioner Williams questioned data reported on the September 1994 Budget
Variance Analysis. He inquired why steam sales have gone up, while the revenues have gone down.
General Manager Pandy reported that two factors have impacted steam sales and revenues. The savings
in coal prices resulted in a credit Fuel Cost Adjustment. Also. General Motors' contractual steam demand
is adjusted each year based on prior years usage. GM has been reducing their steam usage, consequently,
the result has been a reduction in contract demand payments each year in recent history.
International District Energy Association. A study tour of Danish and Swedish community energy
systems is planned by the International District Energy Association(IDEA) on April 22-29, 1995.
General Manager Pandy noted that IDEA funds may be available to subsidize all or part of the conference
fee and round-trip airfare for government officials and policyrnakers. Mr. Pandv suggested passing on
this information to City Councilmembers who may be interested in learning more about district energy
systems, such as the Chilled Water System proposed by the BWL.
Energy Capacity Markets. The BWL has submitted a proposal to South Eastern Michigan Rural
Electric Cooperative(SEMREC) in Adrian.Michigan for 5-10 MW at 80%load factor for the period
1995 to 2014. This quote to has been given to SEMREC on behalf of the BWL and the Michigan Public
Power Agency power pool.
Michigan Municipal Electric Association Dues Formula. A proposal is under review by the Michigan
Municipal Electric Association (MMEA) to adjust the dues formula to a kilowatt-hour basis(10 cents per
MWH based on KWH sales) for all MMEA members. The revised dues formula would get away from
the disparity in costs per kilowatt-hour and put all MMEA systems on the same basis. Currently the dues
formula is capped favoring the larger systems. The restructured dues proposal will be considered by the
MMEA Board during the Spring 1995 conference. General Manager Pandy reported that MMEA is
attempting a new approach by phasing out the Michigan Municipal Cooperative Group(MMCG), and
continue on its own to deal with competitive issues relative to transmission access and Consumers Power
Competitive Rate K. Mr. Pandy noted that the bulk of MMCG funds have been used to pay legal fees for
lawyers and consultants to pursue federal and state issues that seriously impact municipal utilities. The
BWL has been a part of the MMCG since 1992.
Mr. Pandy also reported that he has been re-elected to the MMEA Board for a second four-year term.
Summary of Employee Count. General Manager Pandy reported that the current Fiscal 1995 employee
count is at 792 employees. Management initially. forecasted reaching the 800 mark by the year 2000.
Mr. Pandv commended staff for accomplishing the rightsizing goal in one year and the efforts of all
employees in trying to run the organization with a significantly reduced workforce.
Electric Generating Units. Mr. Pandy presented an overview of the ages of each of the BWL's
generators. He noted that all six of Eckert Station's units will be over 30 years of age by the year 2002.
The Erickson unit will be 29 years old by the year 2002. He noted that when the time comes to replace the
megawatts generated by the two plants, investment costs will be in the hundreds of millions of dollars.
Discussion was held on the estimated cost of replacing a coal-fired plant, including associated
Board Meeting Minutes Page 120
(ktober 25, 1994
Discussion was held on the estimated cost of replacing a coal-fired plant. including associated
environmental costs and the rate of return needed to accomplish that. Commissioner Hassler suggested
preparing an estimate on the cost per megawatt to build a plant today to arrive at a more realistic total
cost.
Proposed Cite Fiber Optics Ordinance. The BWL has been asked to provide input to the City's
proposed Fiber Optics ordinance. Issues concerning regulations, franchise fees, pole attachments are
being reviewed. An update on the ordinance will be presented to the Board at a later time once more
information is available.
REMARKS BY COMMISSIONERS
Commissioner Lontz suggested that the Ottawa Station Task Force should explore the possibility of
applying for site cleanup grants. He stated that State grants are available for site reclamation, site plan
development and water quality bonds. The grant(s) would allow the BWL to conserve on cleanup costs.
Commissioners Williams and Hassler complimented staff on the new Capital Projects Report format.
Commissioner Williams inquired if the BWL submitted any claims for MUSTFA monies under the
Michigan Underground Storage Tank Financial Assurance (MUSTFA) Fund. Technical Services Director
John Elashkar replied that the BWL has received approximately$80.000.
EXCUSED ABSENCES
No absences
ADJOURNMENT
On motion of Commissioner Lontz, the Board adjourned at 6:26 p.m.
I( Lt2/ . �
&�
Mary E. So . Secretary
Filed: October 31, 1994
Marilvnn Slade. Citv Clerk
CHtIEMT 1 cr 4 )
GENERAL STEAM SERVICE.
RATE NO. 1
Mailability - This rate is available to ,uv customer receiving service from the Board of Water and Light (BWL) stetun
:iistnbuuon systcm with a maxnnum gauge pressure of fifteen pounds per square inch (15 psi).
Steam services at gauge pressures above 15 psi but not exceeding 100 psi, when available, may be supplied at the option of
the BWL or upon request by the customer.
Nature of Service - Saturated stewn up to a maximum gauge pressure of 15 psi except as indicated above.
Monthly Rate
Customer per custoiner.per rualth
Charge
Energy Billing Months.;ut:J <tEli+zu 'ilk vetnbcr
Charge
56.35 per 1000 lbs. for the first 200.000 lbs.
S6.69 per 1000 lbs. for all 1000 lbs. over 200,000 lbs.
. <<»Billing Months of D666b d*ugh May
S&45 p 10II( Jbs for the first 200.000 lbs.
r 1 Ibs,for all 1000 lbs. over 200.000 lbs.
56.79 :...
qurcharge - A surcharge of ten (10) percent shall be add�dJwtic above rates for steam service supplied upon customer's
request for service at gauge pressure above 15 psi but not exceeding 100 psi.
Fuel Cost Adjustment- The fuel cost adjustment shall consist of an increase or decrease of 0.16 (S0.0016) cents per
thousand pounds of steam billed for each full ().1 (S0.00I)cent or fraction thereof increase or decrease in the average
delivered cost of fuel burned monthly above or below 168.3 (S1.683)cents per million Btu. (A fraction of 0.05 (S0.0005)
_ents or less will not be considered a full 0.1 (S0.001) c,.;nt: a fraction of 0.06 (S0.0006)cents or greater will be considered
a full 0.1 (S0.001) cent.)
The price per million Btu for each billing month shall be the average delivered cost of fuel consumed during the preceding
calendar month.
Amine Treatment Adwti m n - The amine treatment adjustment allows for the monthly adjustment of rates to reflect the
actual cost incurred due to amine feed. The factor shall be applied to each 1000 pounds (Ibs) billed. The factor shall
consist of 1.124 times the weighted average amine cost per 1000 lbs treated during the previous month.
Tax Ad ,v ment- Bills shall be increased within the Ijmits of anv governmental authority or political subdivision which
levies taxes, license fees. franchise fees.or any other charges against the BWL's property,or its operation, or the
production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Animism Charge -ne 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.
ATTACHMENT A ;2 or a )
Delayed Payment Charge - A delayed payment charge of 5%of the unpaid balance.excludutg delayed payment charges.
shall be added to any bill which is not paid on or before the due date.
Reconnect Charig- A reconnect charge o► S25A)shall be added to any account which discontinues and reconnects
;crvice at the same address within a twelve (12) month period.
Rules and R g a ions - Service under this rue is subject to the BWL Rules and Regulations for Steam Service which are
Incorporated herein by this reference.
::.>r v:
:t`
ATTACIVENJT A. (3 c
INDUSTRIAL STEAM SERVICE
RATE NO.
Availability: This rate is available to any customer cngagcd in mining, or manufacturing and receiving steam at any BWL
Plant, wall at a miniinum gauge pressure of 250 psi. Service will he provided upon customer entering into a steam supply
.:ontract with the BWL. Terns and conditions of the contract may vary due to customer requirements and the impact on
BWL facilities.
�1on hl, Rate:
Demand Charge: SO.KO per pound per hour(Ib/hr) for all Whrs of contract demand.
S0.70 per po.tutd:_per hour(lb/hr) for al lbfhrs exceeding contract
Commodity Charge: S3 R.V$ 'thousand pounds (i�ilb)
Fuel Cost Adiustmentr The fuel cost adjusunent shall consist of an incr �iar.tkcresse of 1T16 (SO.0016)cents per
thousand pounds of steam billed for each full 0.1 (SO.001)cent or.frac iQa ijh cofitiefease or decrease in the average
delivered cost of fuel burned monthly above or below 16$:3151 :6$3)cc'rta:.p'er million Btu. %A fraction of 0.05 (SO.0005)
.rents or less will not be considered a full 0.1 (`s0.O04 e~nt,::.fraaj&of 0.06 (SO.0006) cents or greater will be considered
a full 0.1 (SO.001)cent.]
The price per million Btu fqr eac It IKlli mum shall be the average dd.11verccf'ost oiE fiiel consumed during the preceding
calendar month.
Minimum Charge: Monthly bemand Charge above;
Tax Adinstment: Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes, license fees,or any other charges against the BWL's propcnv. or its operation.or the production and/or sale of
,team, to offset anv such cost and thereby prevent other customers from being compelled to share such local increases.
Billing Demand: The billing demand is the maximum demand (lb/hrs) supplied during the 15 minute period of maximum
use during the month, but not less than the contract demand.
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 Remila io s: Service under this rate is subject to the BWL Rules and Regulations for Steam Service which are
incorporated herein by this reference.
ATTACHMENT A (4 of 4 )
The following tables show the impact the rate change has on the average customer.
AVERAGE GENERAL STEAM SERVICE RATE NO. 1 - SUMMER RATES
Units Old New Difference '
o._.......
_.._... .......... ....... _......__...............
_.........................._... ............................
. Q.M0 C�> $3.60 $3.70 $0.10
.. ` 80MIbs $497.60 $508.00 $10.40
OMlbs $0.00 $0.00 $0.00 tQN
6 6.58 $0.M.. ";
$ .58 $ ::..
AVERAGE GENERAL STEAM SERVICE RATE NO. 1 - WINTER RATES
Old New Difference >:. " ..............
Units °e# fEa'tB
Itl $3.60 $3.70 $0.10
» ....... _;:::..:::; :.::<''>� ..: ::<1 200MIbs $1,264.00 $1,290.00 $26.00...:>
>`< 38MIbs $253.0 $25 $ ;#.:..:..::..
:::.............. .
...�+�...: ......
..
12. 2 1
$19.71 $19.71 $0.00
.....
AVERAGE INDUSTRIAL STEAM SERVICE RATE NO. 2
Dw N iffer nce:>:>'>,:,:
Units Old e e
_.: 287,000lb/hr $229,600.60 $229,6 0.60
>:< <
64,074MIbs $240,918.24 $248,607.12 $7,688.88<:>. ; >
r' T ! ($2,894.88) $786.63 $3,681.52 #,'�:.�,
><< '8OOr
31
$3,285 2 $3,28 2 $
£tAfl
Prepared by:Paul Wierchicki
1
0,;_29_ I it : r); Pa2e98
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, September 27, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building, 123 West Ottawa
Street. Lansing, Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Christian. Evans (arrived at 5:34 p.m.), Hassler. Lontz, O'Leary, Sebolt, Strolle.
and Williams.
Absent: None
The Secretary declared a quonmi present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT
SECONDED BY COMMISSIONER WILLIAMS
That minutes of regular session of August 23. 1994. 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 spoke on the Belle River Project. his concern about the dispute policy, and his previous controversy
with the Board of Water and Light.
COMMUNICATIONS AND PETITIONS
None.
Board Nleenna Minutes pa_e qy
September 27, 1994
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on September 13. 1994, to discuss the following topics:
1. Integrated Resource Planning
2. Belle River project
3. Comfort Street Property
Present were: Commissioners Williams (Chair Pro Tem). Christian. Hassler, Lontz. O'Leary. Sebolt. and Strolle.
Excused absence was Commissioner Evans (out of town).
INTEGRATED RESOURCE PLANNING (iRP). David Bolan. IRP Senior Engineer, from the BWL's Electric
Planning and System Studies Department. presented an overview of the Energy Policy Act of 1992 (Act). The
purpose of the Act is to provide for improved energy efficiency. The Act amends PURPA(Public Utilities
Regulatory Policies Act of 1979) by including requirements that utilities with annual retail sales of 500 GWhr or
more must decide on whether or not integrated resource planning is necessary(BWL annual retail sales were 2186
GWhrs during CY 1993). The BWL's action plan to implement the new PURPA Integrated Resource Planning
requirements under the Act includes the folloxving suggested time table:
■ 9/13/94 - Provide information to the Board on BWL requirements for initiating integrated
resource planning under the Energy Policy Act of 1992.
■ 9/27/94 - Board is to set a public hearing date to consider integrated resource planning.
■ 12/15/94 -Recommend a consultant Nvith specialized expertise to conduct a needs
assessment of integrated resource planning.
■ 3/15/95 -Consultant will have completed the needs assessment with justification which will
include cost estimates, and a process snap for BWL to use in integrated resource
planning.
■ 4/15/95 -Present the consultant's conclusions and recommendations to BWL staff at an
O&E meeting.
■ 5/95 - Establish community advisor,group(s) to initiate education on integrated
resource planning.
■ 7/28/95 - Present staffs recommendation at an O&E meeting. Consider advisory group and
consultant input.
■ 8/08/95 -Present staffs recommendation to the Board at a Committee of the Whole meeting.
■ 9/12/95 -Hold required special public hearing to present recommendation for integrated
resource planning.
■ 9/26/95 -Board to adopt a position on integrated resource planning at the regularly
scheduled Board meeting.
■ 10/95 -Make available to the public the outcome of the liearing as well as the evidence
and findings for that decision.
?ate 100 13oard Meeting Minutes
September», 1994
Following discussion. there�Nas concurrence to proceed with the suggested time line. The Committee of the Whole
recommends the folloN�ing resolution.
Integrated Resource Planning
(Resolution 94-9-1)
RESOLVED, That a Public Hearing to solicit public input on Integrated Resource Planning be set for
Tuesday, September 12. 1995, in accordance��ith the Energy Policy Act of 1992: and
FURTHER RESOLVED. That the General Manager be authorized to engage a consultant to provide the
following professional engineering services on Integrated Resource Planning:
■ Develop a process map to layout a procedure to accomplish various detailed Integrated Resource
Plans.
■ Provide justification for doing, or not doing an IRP with the appropriate level of detail and reasons
therefor.
■ Supply a more tine-tuned cost estimate for doing various detailed Integrated Resources Plans.
Cost estimates for the professional engineering services could be up to approximately S 15.000.
BELLE RIVER PROJECT. Electric System Control Division Director Bill Cook presented a
performance oven•iew of the Belle River Power Plant. Details of the following operational items were
outlined:
• Belle River Chronology as of 1982 to 1995.
• Belle River Capacity (1991 - 1995)
• BWL Portion of Belle River(1991-1995)
• BWL Energy Breakdown (MWHR)
• Belle River Delivered Energy Costs
• Belle River Bond Issues
• Belle River Debt Sen ice Comparison
• S/MWHR Fuel Cost Comparison
• MPPA Load Curves for June 1. 1994
• S/MWHR Total Production Cost Comparison
• Belle River Unit Availabilitv
• Belle River Total Plant Capability_ Availability
• Belle River Entitlement Usage
• Belle River and Back-up Usage
• Detroit Edison Compam (DECo) Provided Belle River Back-up to BWL
• Belle River Operational Benefits and Opportunities
• BWL/NIPPA Belle River Back-up Sales to Non-Pool Participants
• Belle River Operational Benefits and Opportunities
Mr. Cook reported that results of comparison analyses, show that the Belle River buy-in has turned out to be cost
effective. The BWL has benefited through its (1) firmed energy supply. (2) economic opportunities. and(3)
operational flexibility.
The Commissioners were updated on recent developments in regard to the firer price dispute between MPPA and
Detroit Edison Company. The two parties have decided to use arbitration. Discussions are currently being held
with regard to the method of appointing arbitrators.
Board Meetin Minutes Paue l0I
�entember 27_Q 1994
COMFORT STREET PROPERTY, General Manager Pandy reported that interest to purchase vacant parcels V
and VI of the BWL's Comfort Street property has been expressed by a business entity. A map showing the parcels
under consideration was revieNNed. A lot split for each parcel would be required to exclude the Grand River
frontage. Parcel V(excluding the river frontage) contains approximately 2.8 acres of land. This parcel contains
two gravel week and a airrently non-producing water Nyell (Well 10-14). Parcel VI (excluding the nyer frontage)
contains approximately sixteen"(16) acres of land. This parcel contains a capped ash landfill and numerous ground
%Hater monitoring yells. Continued periodic access to these monitoring \yells is necessan-. This parcel is
cncunibered by a high voltage overhead electric transmission line operated by the BWL. An easement for the 138
hV transmission line Nyould be required.
Comfort Street Property
(Resolution 94-9-2)
RESOLVED, That the General Manager be authorized to submit a resolution at the regular
meeting scheduled October 25. 1994. requesting that Comfort Street Parcels V and VI as
described above be declared surplus and placed on the market for sale.
Respectfully submitted.
COMMITTEE OF THE WHOLE
Gerald W. Williams, Chair Pro Tern
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER CHRISTIAN
That the Committee of the Whole Report. including Resolution 94-9-1 regarding Integrated Resource Planning and
Resolution 94-9-2 regarding the Comfort Street Propem', be approved as presented.
Adopted unanimously.
PERSONNEL COMMITTEE REPORT
The Personnel Committee met on September 13. 1994, to review and discuss the following matters:
1. Pension Fund Investments
2. Performance Review for the Three Board-Appointed Positions
Present were Personnel Committee Members Strolle (Chair), O'Lcarv. and Sebolt. Also present were
Commissioners Hassler and Williams. Excused absence: Commissioner Evans (out of towns.
PENSION PLAN INVESTMENT REVIEW. The report of the Personnel Committee concerning the Pension
Fund investments and related matters has been submitted to the Pension Fund Trustees for action.
PERFORMANCE APPRAISALS The Personnel Committee submits the following resolution and recommends
Board approval:
Resolution Concerning Performance Appraisals
(Resolution 94-9-3)
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
Pace 102 Board Meettne Minutes
September 27. 1994
RESOLVED. That the General Manager. Internal Auditor. and Corporate Secretary are eligible
to receive salary increases effective as of July 1. 1994. according to the Fiscal 1994 Performance
Increase Matrix: and
RESOLVED FURTHER. That the ratings of the three persons reporting to the Board be hereby
confirmed as follows:
General Manager Joseph Pandy. Jr. -Rating in the range of 5.0 - 5.49
Internal Auditor Kellie Willson -Rating in the range of 4.5 -4.99
Corporate Secretary Mary Sova -Rating in the range of 4.5 -4.99
Respectfully submitted.
John Strolle. Chair
PERSONNEL COMMITTEE
BY COMMISSIONER STROLLS
SECONDED BY COMMISSIONER WILLIAMS
That the Personnel Committee Report. including Resolution 94-9-3 regarding performance
appraisals, be approved as submitted.
Adopted unanimousiv.
GENERAL MANAGER'S RECOMMENDATIONS
CONSUMER SERVICES
Res. No. 94-9-4
Revise the Customer Security Deposit Policy (Sec. 4-7) to make it more general to include other
forms of security Without listing them.
Revise the Interest on Deposits and Applying Deposits Policy (Sec. 4-8) to enable BWL to hold
deposits despite a satisfactory payment history if there is reason to believe the customer is a credit
risk.
(Nexv language is shown in italics and language to be deleted is shown with str-ik gl.)
Sec. 4-7 Customer:Jccount Security Deposit Policy
WHEREAS. The Board of Water and Light is committed to applying a fair and
equitable Custo,uerAccount Security Deposit Policy. while following a policy of sound business
practice. and
WHEREAS.The Board must also insure the security of the BWL in the event of default:
IT IS THEREFORE RESOLVED that the Board of Water and Light may require a
deposit security in : as required to protect the interests of'the
131IL.
Board Meeting Minutes Patre 103
September 27, 1994
The itpPxiciiin has-ii--peer pr'rx'�'-'riciii
The— lie ant-has—ct-histo f' fe.:.,,. ' 1, l7W Bii c ieyee�
app, + c i i ox 9iiicr¢cr�rr:��rmrnT-c�ci[�icc yr ciiipw�cw.
0 The appiieant has it histe.,. of ene.`. theft '
The piican is .,'..:fkt�.,., G,.I`...,, al .,nWe.T.idustrial
BE IT FURTHER RESOLVED, that the General Manager. or his designated representative, shall
establish procedures consistent With this Resolution and be responsible for the implementation
thereof.
BE IT FURTHER RESOLVED. that the Consumer Services Division's "Standards and
Guidelines,kfanual"contain detailed information on the requirements of deposits customer
account security.
Sec. 4-8 Interest on Security Deposits and Applying Security Deposits
The Board of Water and Light will pay interest on all security deposits for the time the
security deposit is held by the Board of Water and Light.
Customer Security Deposits may be refunded or applied to a customer's account after
one year provided the customer has established a satisfactory payment record with the Board of
Water and Light and the Board of'I6ater and Light has determined the customer is not a credit
risk.
--------------------
BY COMMISSIONER SEBOLT
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-9-4 be approved.
Adopted unanimously.
PENSION
Res. No. 94-9-5
That William E. Beak. Superintendent of Erickson Station. be placed on a Voluntary Early
Retirement Program (VERP) pension of S4.175.80 per month effective September 1. 1994. He
has selected Option III with the provision that after his death. if his wife. Carolyne B. Beak.
survives him she will receive 70`%,or$2.923,06 per month for the rest of her life as provided
under Option 1II.
-------------------
Mr. Beak has worked for the BWL for 3 7.13 N cars and is 58 years of age.
--------------------
Page Io4 Board Meetins Minutes
September 27, 1994
Res. No. 94-9-6
That Ronald T. Byrnes. Underground Supervisor in Line Construction. be placed on an Early
Reduced Voluntar•Earle Retirement Program ('�,ERP) pension of$2.182.56 per month effective
September 1. 1994. He has selected Option II with the provision that after his death. if his wife.
Constance A. Byrnes. survives him she will receive 50110 or$1.091.28 per month for the rest of
her life as provided under Option II.
--------------------
Mr. Byrnes has worked for the BWL for 29.33 years and is 50 years of age.
--------------------
Res. No. 94-9-7
That Ronald A. Campeau. Station Shift Supervisor at Erickson Station, be placed on a Voluntary
Early Retirement Program (VERP) pension of$2.372.24 per month effective September 1. 1994.
He has selected Option III i\nh the provision that alter his death, if his wife.Betty A. Campeau.
survives him she will receive 73%)or$1,779.18 per month for the rest of her life as provided
under Option III.
--------------------
Mr. Campeau has worked for the BWL for 28.22 years and is 51 years of age.
--------------------
Res. No. 94-9-8
That Delbert L. Cater. Maintenance Supervisor in Production Maintenance. be placed on a
Voluntary Early Retirement Program (VERP) pension of$2.026.37 per month effective
September 1. 1994. He has selected Option III with the provision that after his death, if his wife.
Marilvn J. Cater. survives him she will receive 80%,or$1.621.10 per month for the rest of her
life as provided under Option III.
--------------------
Mr. Cater has worked for the BWL for 29.09 years and is 57 years of age.
--------------------
Res. No. 94-9-9
That Lyle J. Gantz. Boulevard Supervisor in Line Construction, be placed on a Voluntary Early
Retirement Program (VERP) pension of$1,735.42 per month effective September 1. 1994. He
has selected Option III, with partial Workers' Compensation Offset, and the provision that after
his death. if his wife. Patricia K. Gantz. survives him she will receive 75%,or$1.301.57 per
month for the rest of her life as provided under Option III.
--------------------
Mr. Gantz has worked for the BWL for 30.27 years and is»years of age.
Board Meeting Minutes Page 105
September 27, 1994
--------------------
Res. No. 94-9-10
That James J. Lantz. Lamp Exchange Supervisor in Customer Services. be placed on a Voluntary
Early Retirement Program (VERP) pension of$2.274.93 per month effective September 1. 1994.
He has selected Option VI with the proO ion that after his death, if his wife. Mary A. Lantz,
survives him she will receive 651/,or$1.478.70 per month for the rest of tier life. If his wife
predeceases him, the pension amount of$2.274.93 will revert back to the regular pension amount
of$2.706.54 for the rest of his life as provided under Option VI.
--------------------
Mr. Lantz has worked for the BWL for 3.1.12 years and is 61 years of age.
--------------------
Res. No. 94-9-11
That John T. Miller. Traffic Signal Maintenance Supervisor in EM&M. be placed on an Early
Reduced Voluntary Earlv Retirement Program(VERP) pension of$2.169.25 per month effective
September 1. 1994. He has selected Option IV with the provision that after his death. if his wife.
Judith E. Miller. sur�iyes hi►rt she will receive 100"/o or$2.159.25 per month for the rest of her
life. If his wife predeceases him. the pension amount of$2.169.25 will revert back to the regular
pension amount of$2.487.22 for the rest of his life as provided tinder Option 1V.
--------------------
Mr. Miller has worked for the BWL for 32.19 years and is 50 years of age.
--------------------
Res. No. 94-9-12
That William H. Mills. System Support Engineer at BESOC,be placed on a Voluntary Early_
Retirement Program(VERP) pension of$2.682.18 per month effective September 1. 1994. He
has selected Option IiI with the provision that after his death, if his wife. Emma A. Mills.
survives him she will receive 30'%O or$804.65 per month for the rest of her life as provided under
Option III.
--------------------
Mr. Mills has worked for the BWL for 30.52 years and is 60 years of age.
--------------------
Res. No. 94-9-13
That Harold E. Noble. Maintenance Planner in Production Maintenance, be placed on a
Voluntary Early Retirement Program (VERP) pension of$2.187.06 per month effective
September 1, 1994. He has selected Option VI with the provision that after his death, if his wife.
Joyce E. Noble, survives him she will receive 80%,or$1.749.65 per month for the rest of her life.
If his wife predeceases him. the pension amount of$2.187.06 will revert back to the regular
pension amount of$2.450.13 for the rest his life as provided under Option VI.
Page 106 Board Meeuns!Minutes
September 27.. 1994
--------------------
Mr. Noble has worked for the BWL for 29.02 years and is 52 years of age.
--------------------
Res. No. 94-9-14
That Joseph N. Peters. Overhead Supervisor in Line Construction. be placed on an Early Reduced
Voluntary Early Retirement Program (VERP)pension of$2.367.92 per month effective
September 1. 1994. He has selected Option VI with the provision that after his death, if his wife.
Betty J. Peters. survives him she will receive 15%or$355.19 per month for the rest of her life. If
his wife predeceases him. the pension amount of$2.367.92 will revert back to the regular
pension amount of$2.421.43 for the rest of his life as provided under Option VI.
--------------------
Mr. Peters has worked for the BWL for 31.08 years and is 50 years of age.
--------------------
Res. No. 94-9-15
That James H. Russell. Equipment Mechanic Supervisor in Fleet Services. be placed on a
Voluntary Early Retirement Program (VERP) pension of$2.217.10 per month effective
September 1. 1994. He has selected Option VI with the provision that after his death. if his wife.
Carol A. Russell. survives him she will receive 40%or$886.84 per month for the rest of her life.
If his wife predeceases him. the pension amount of$2.217.10 will revert back to the regular
pension amount of$2.378.79 for the rest of his life as provided under Option VI.
--------------------
Mr. Russell Las workcd for the BWL for 30.19 vears and is 59 years of aae.
--------------------
Res. No. 94-9-16
That Jack L. Shafer. General Supervisor-Operations at Erickson Station. be placed on a
Voluntary Early Retirement Program(VERP) pension of$2.590.00 per month effective
September 1. 1994. He has selected Option III with the provision that after his death. if his wife.
Elizabeth K. Shafer. survives him she will receive 75%or$1.942.50 per month for the rest of her
life as provided under Option III.
--------------------
Mr. Shafcr has N\orked for the BWL for 28.69 years and is 55 years of age.
--------------------
Board Nleetins Minutes Paee 107
September 27. 1994
Res. No. 94-9-17
That Terre N. Tisdale. Government Affairs Administrator in Marketing. be placed on a
Voluntary Earle Retirement Program (VERP)pension of$2.468.78 per month effective
September 1. 1994. He has selected Option III with the provision that after his death. if his wife.
Gwendolyn C. Tisdale. survives him she will receive 65%or$1.60-4.71 per month for the rest of
her life as provided under Option III.
--------------------
Mr. Tisdale has worked for the BWL for 27.51 }ears and is 54 years of age.
--------------------
Res. No. 9a-9-18
That Marvin N. Townsend. Energy Auditor for Customer Services. be placed on a Voluntary
Early Retirement Program (VERP) pension of$1.082.12 per month effective September 1. 1994.
He has selected Option VI with the provision that after his death. if his wife. Susan L. Townsend.
survives him she will receive 15%or$162.32 per month for the rest of her life. If his wife
predeceases him. the pension amount of$L082.12 will revert back to the regular pension amount
of$1.1.45.27 for the rest of his life as provided under Option VI.
--------------------
Mr. Townsend has worked for the BWL for 15.40 \cars and is 61 years of aee.
--------------------
BY COMMISSIONER STROLLE
SECONDED BY COMMISSIONER WILLIAMS
That Resolutions 94-9-5 through 94-9-18 be adopted.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-9-19
Authorize the sale of obsolete Board-owned vehicles and equipment through competitive bids.
The items are BWL units 463. #11 L #123. #154. #158. #159 and#162.
--------------------
An itemized list is on file with the Corporate Secretary.
--------------------
Res. No. 94-9-20
A. That the following Water and Electric rate schedules.all of which were the subject of a Public
Hearing on September 13. 1994. be adopted and applied to all consumption used or services
rendered on or after October 15. 1994:
Pace 108 Board Meeting Minutes
September 27. 1994
Rate 1 Residential Water Service (Sheet Nos. WB 1 and WB2)
Rate 1 Residential Electric Service(Sheet Nos. EB1 and EB2)
Rate 2 Residential All-Electric Service(Sheet Nos. EB3 and EB4)
Rate 21 Residential Electric Service. Senior Citizen (Sheet No. EB17)
B. That the following Water and Electric rate schedules now in effect be rescinded for billing
purposes for any consumption used or services rendered on or after October 15. 1994:
Effective
Rate 1 Residential Water Service 1-1-94
Rate I Residential Electric Service 1-1-92
Rate 2 Residential All-Electric Service 1-1-92
Rate 21 Residential Electric Sen•ice. Senior Citizen 1-1-92
--------------------
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER EVANS
That Resolution 94-4-19 and 94-4-20 be adopted.
Adopted unanimously.
WATER
Res. No. 93-9-21
That the Board agree to sen•e water to proposed Water District No. 104. Delhi Township,as
requested by resolution of the Delhi Charter Township Board on September 20. 1994. 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. 104 established by Township resolution on
September 20. 1994. and will provide a potable water supply to said district.
2. The Township will be required to make a$41.876 non-refundable contribution-in-aid of
construction to cover the charges set forth in the Board's Policies and Procedures 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 CIV)
covering the furnishing of a potable water supply in Water District No. 104.
4. Water mains are to be installed in accordance with the current Board's Policies and
Procedures for Water Service.
Further. that upon receipt of the sum of$41.876 from the Township, the proiect be approved for
installation. and the General Manager and the Corporate Secretary be authorized to sign the
aforementioned agreement (Supplement CIV) to furnish a potable water supply in Water District
No. 104.
Board Meeting Minutes Pane 109
September 27, 1994
The geographical area of Water District No. 104 is as follows:
College Heights Estates Subdivision No. 4. Lots 63 thru 86.
To provide a potable eater supply within the proposed new district requires the installation of
1.803 feet of water main and fire hvdrants at an estimated cost of$41.876.
The main extension will sere twenty-four(24) residential customers. One-time connection fees
will amount to$16.128. Estimated annual revenue is $8.160.
Water mains to be instal!c_! i-i Fall/Winter of 1994 following the receipt of the Township's non-
refundable contribution-ut-a,: of construction and the signing of the agreement.
--------------------
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER STROLLE
That Resolution 94-9-21 be adopted.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy reported on the following items:
Legal Counsel. A resolution will be sent to the Citv Ways and Means Committee for approval designating Canady
Law Offices,Dykema Gossett. Foster. Swift. Collins and Smith. and Fraser.Trebilcock. Davis and Foster to
conduct outside legal work on behalf of the Cite and/or Board of Water and Light for the next two years.
Dickinson. Wright is not on the list as they are currentl_� involved in the early retirement controvers},with the City
of Lansing.
General Manager recognized Dr. Era Evans as being featured in FOUNDATION FOCUS published Lansing
Community College.
Bob Olson and Karl Bachman receive congratulations for their complimentary letters from customers.
Communications Director John Strickler's response to recent Point of View column in LANSING STATE
JOURNAL, in which Board of Water and Light is portrayed as uncaring toward its residential customers.
especially the poor and elderly, was distributed.
The current Organizational Chart was handed out to the Commissioners for reference. Mr. Pandv stated that as of
the pay-period ending September 17. the Board of Water and Light has 756 full time employees and 3 part-time
employees. When all positions are filled. the number of employees will probably be between 780 and 790; the goal
was 792. We are down 200 employees from four years ago.
An award was received on Adopt-A-River Program from KEEP MICHIGAN BEAUTIFUL. INC., this gives
favorable publicity to the program.
Tentative schedule for Michigan Municipal Electric Association (MMEA) 1994 fall conference handed out. If any
Commissioners are interested in attending, contact Mr. Pandv.
Consolidated Financial Statements and Budget Variance Analysis were handed out.
Page 110 Board Meeting Minutes
September 27. 1994
Communication to Mayor and Cite Council. from Dana Tousles. regarding Fiscal 1994 Audit Report-BWL
Executive Summary, was handed out and reviewed.
MPPA has selected Frederick D. Palmer. General Manager and Chief Executive Officer of Western Fuels
Association. Inc.. as advocate arbitrator in Michigan Public Power Agency dispute xyith Detroit Edison Company.
The dispute is over fuel cost allocation in regard to MPPA's minority ownership interest in Belle River Generation
Station in St. Clair, Michigan.
Communication to Mayor and City Council from Joseph Pandy handed out regarding Water Regionalization. A
back-ground paper entitled "Lansing and the Mid-Michigan Water Authority" was discussed. The paper contains
general statements. and an issues and answers section addressing particular questions and concerns. Mr. Pandy
discussed Citv of Lansing, and Delta and Lansing Townships current issues regarding Water Regionalization. City
Committee of the Whole will vote on October 6 to either accept or reject the Articles of Incorporation and By-Laws
of the Mid-Michigan Water Authority.
Copy of letter to Lansing Regional Chamber of Commerce, and other community interest groups asking for support
of Water Regionalization was handed out.
A list of BWL/City Council pairing structure_ and notes from 9-19-94 Strategic Planning Meeting was given to
Commissioners. It is imperative to continue good communications with City of Lansing. The Board of Water and
Light will host the next joint meeting with the City. possibly in October. The suggestion was made that Water
Regionalization and the future of Ottawa Station be the topics of this meeting.
Discussion on the benefits of Water Regionalization for the City and Townships Ryas held.
The Tuesday. September 27. 1994. issue of the LANSING STATE JOURNAL, had an article on ash being
uncovered by road crews in Delta Township:this does not involve the BWL.
Mr. Pandv received a call from an attornev from the Catholic Diocese of Lansing objecting to waiver of liability
used with groups wishing to tour any Board of Water and Light facilities. The BWL will continue to use this
waiver that has been used for approximately 20 years.
A Water crew recently bored into electric cables. no one was injured. Disciplinary_ action is being taken with the
crews.and procedures inforced.
REMARKS BY BOARD COMMISSIONERS
Mr. Williams commented on new Organizational Chart and the number of new people reporting directly to the
General Manager.
ADJOURNMENT p
On motion of Commissioner Lontz. the Board adjourned at 6:10 p.m. �!
Ro mars Sullivan. ssist,in 'ccretain,
Filed: September 29, 1994
Marilvnn Slade, City Clerk
Board of Water and Light . Lansing, Michigan 2nd Revised Sheet No. WB 1
RESIDENTIAL WATER SERVICE
RATE NO. 1
AVAILABILITY
This rate is available to any single-family or multifamily dwelling of 4 units or less served by
one meter.
MONTHLY RATE. Shall be computed in accordance with the following charges.
Customer Charge: per customer per month or part thereof:
Meter l/l/94 1/l/95 1/1/96
5/8" 54.74 55.10 55.36
3/4" 56.63 S7.13 57.49
F, 511.85 512.74 513.38
1 1/a" or 1�/" 527.48 529.54 531.02
2" 545.02 548.40 550.82
Commodity Charge: per ccf of water used per month:
0- 2 ccf 50.59 50.63 $0.66
over 2 ccf S 1.24 S 1.33 51.40
Power and Chemical Cost Adjustment:
The power and chemical cost adjustment shall consist of an increase or decrease of 0.10
per ccf billed for each 0.1 Q increase or decrease in the average cost of power and
chemicals required to deliver treated water to the customer's meter above or below
17.50 per ccf. The cost per ccf for the billing period shall consist of the weighted
average cost of chemicals, electricity, steam and oil used in pumping and treatment
facilities during the one month period preceding the month billed by two months.
Suburban Surcharge:
For all customers situated outside the boundaries of the City of Lansing,a 5 percent
surcharge shall be applied to the total of the customer charge and commodity charge
including any power and chemical cost adjustment during the calendar year 1994. This
charge shall no longer be applied to consumption occurring on or after January 1, 1995.
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 water, to offset
any such cost and thereby prevent other customers from being compelled to share such
local increases.
Minimum Charge:
The minimum charge shall be the above customer charge applied for 30 days.
Adopted: September 27, 1994 Effective: October 15, 1994
Board of Water and Light, Lansing, Michigan end Revised Sheet No. WB2
DELAYED PAYMENT CHAR(: .
A delayed payment charge of iX of the unpaid balance,excluding delayed payment charges.
shall be added to anv bill which is not paid on or before the due date.
APPLICATION CHARGE
A 57.00 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 Board.
RULES AND REGULATIONS
Service under this rate is subject to the Board of Water and Light Rules and Regulations for
Water Service which are incorporated herein by this reference.
Adopted: September 27, 1994 Effective:October 15, 1994
Board of Water and Light, Lansing,Michigan 2nd Revised Sheet No. EB 1
RESIDENTIAL ELECTRIC SERVICE
RATE NO. 1
Availability-This rate is available to any single-family or multifamily dwelling of 4 units or less 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 or multifamily dwelling of 4 units or less
when a portion of the dwelling unit is used for commercial,industrial,or resale purposes unless the
wiring is so arranged that service for residential and non-residential 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 52.83 53.05 53.20 per customer per month or part thereof
Charge
Energy 5.0517 5.0544 5.0562 per kWh for the first 500 kWh
Charge
S.0`62 5.0592 5.0611 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.
Ennergl 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 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 Charge- The customer charge included in the rate.
Delayed Payment ChaEU- 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 57.00 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.
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.
Adopted: September 27, 1994 Effective:October 15, 1994
Board of Water and Light. Lansine. Michigan 2nd Revised Sheet No. EB2
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 S.022/kWh delivered. Customers selling
energy to the BWL shall pay a customer charge of S6.40 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: September 27, 1994 Effective:October 15. 1994
Board of Water and Light . Lansing, Michigan 2nd Revised Sheet No. EB3
RESIDENTIAL ALL-ELECTRIC SERVICE
RATE NO. 2
Availability- This rate is available to any single-family or multifamily dwelling of 4 units or less 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 or multifamily dwelling of 4 units or less
when a portion of the dwelling unit is used for commercial,industrial,or resale purposes unless the
wiring is so arranged that service for residential and non-residential 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 52.83 53.05 53.20 per customer per month or part thereof
Charge
Energy Summer Billing Months of June through October
Charge
5.0517 5.0544 5.0562 per kWh for the first 500 kWh
5.0562 5.0592 5.0611 per kWh for all over 500 kWh
Winter Billing Months of November through May
5.0517 5.0544 5.0562 per kWh for the first 500 kWh
5.0553 5.0583 5.0602 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.
Energy Cost Adj uc m n -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 Charge-The customer charge included in the rate.
Delayed Payment Chace -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 57.00 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: September 27, 1994 Effective: October 15. 1994
Board of Water and Licht , Lansing, Michigan 2nd Revised Sheet No. E134
: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 5.022/I:Wh delivered. Customers selling
energy to the BWL shall pay a customer charge of 56.40 per month or part thereof instead of the above
customer charge.
Rules and Reg nla ions - Service under this rate is subject to the BWL Rules and Regulations for Electric
Service which are incorporated herein by this reference.
Adopted: September 27, 1994 Effecdve: October 15, 1994
Board of Water and Light , Lansing, Michigan Ind Revised Sheet No. EB 17
ELECTRIC SERVICE,SENIOR CITIZEN
RATE NO. 21
Availahility -This rate is available to any single-family or multifamily dwelling of 4 units or less 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 or multifamily dwelling of 4 units or less
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, 120P40 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 52.83 53.05 53.20 per customer per month or part thereof
Charge
Energy 5.0380 5.0402 5.0416 per kWh for the first 300 kWh
Charge
S.0615 5.0650 5.0673 per kWh for the next 200 kWh
5.0843 5.0891 5.0923 per kWh for all over 500 kWh
Water Heating Discount-When an approved electric water heater is pennanently 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.
Energy Cost Adins m n -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 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 Charge- A `f;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: September 27, 1994 Effective: October 15. 1994
BOARD OF WATER AND LIGH,
123 W. Ottawa Street
Lansing,Michigan
Agenda
September 27, 1994
5:30 p.m.
Roll Call (Board Commissioners Christian,Evans,Lontz,O'Leary,Sebolt,Strolle,Williams and
Chairman Hassler-8)
Invocation
Pledge of Allegiance
Approval of Minutes (Regular Session of August 23, 1994)
Public Comments
MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO
ADDRESS THE BOARD REGARDING ANY ITEM ON THE AGENDA AT THE TIME
SUCH ITEM IS OPEN FOR DISCUSSION BY THE BOARD. ANYONE WISHING TO
COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME
OR IMMEDIATELY PRIOR TO ADJOURNMENT.
Communications and Petitions
Thank you letter from Ronald A. Larabee for the honor and recognition of renaming Haco
Drive facility after him.
Reports of Committees
1. Committee of the Whole Report-Gerald W.Williams,Chair,re.Res. 94-9-1 &94-9-2
2. Personnel Committee Report-John Strolle,Chair,re. Res. 94-9-3
Manager's Recommendations
CONSUMER SERVICES
94-9-4 Revise Customer Security Deposit Policy and Interest on Deposits and
Applying Deposits Policy.
PENSION
94-9-5 Approve Option III(VERP)pension for William E. Beak,effective
September 1, 1994.
94-9-6 Approve Option II,early reduced(VERP) pension for Ronald T. Brynes,
effective September 1, 1994.
94-9-7 Approve Option III (VERP) pension for Roald A.Campeau,effective
September 1, 1994.
94-9-8 Approve Option III (VERP)pension for Delbert L.Cater, effective
September 1, 1994.
94-9-9 Approve Option III (VERP),with partial Workers'Compensation Offset
pension for Lyle J. Gantz,effective September 1, 1994.
94-9-10 Approve Option VI (VERP)pension for James J.Lantz,effective
September 1, 1994.
94-9-11 Approve Option IV,early reduced(VERP) pension for John T. Miller,
effective September 1, 1994.
94-9-12 Approve Option III (VERP) pension for William H. Mills,effective
September 1, 1994.
94-9-13 Approve Option VI (VERP)pension for Harold E. Noble,effective
September 1, 1994.
94-9-14 Approve Option VI,early reduced(VERP) pension for Joseph N.Peters,
effective September 1, 1994.
94-9-15 Approve Option VI (VERP)pension for James H.Russell,effective
September 1, 1994.
PENSION (Contii )
94-9-16 Approve Option III (VERP) pension for Jack L.Shafer,t-ective
September 1, 1994.
94-9-17 Approve Option III (VERP) pension for Terry N.Tisdale,effective
September 1, 1994.
94-9-18 Approve Option VI (VERP)pension for Marvin N.Townsend,
effective September 1, 1994.
TREASURER/
CONTROLLER
94-9-19 Authorize sale of obsolete Board-owned vehicles&equipment through
competitive bid; items are#63,#111,#123,#154,#158,#159¢..
94-9-20 That the Water and Electric rate schedules that were the subject of a Public
Hearing on 9/13/94, be adopted&applied to all consumption used or
services rendered on or after October 15, 1994; and,that the same Water and
Electric rate schedules now in effect be rescinded for billing purposes for any
consumption used or services rendered on or after October 15, 1994.
WATER
94-9-21 Board to furnish water to proposed Water District No. 104 in Delhi
Township; estimated cost$8,160; Delhi Township to make$41,876
non-refundable contribution-in-aid of construction;Board and Township
t0 2Iitel"into a wiifteri agreement; authorize General Manager and
Corporate Secretary to sign agreement.
Unfinished Business
New Business
Resolutions
Manager's Remarks
Remarks by Board Commissioners
Motions of Excused Absence
Adjournment
Page 81
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesdav,August 23, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building, 123 West
Ottawa Street. Lansing. Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Christian. Evans. Hassler. Lontz, Sebolt, Strolle, and Williams-7
Absent: Commissioner O'Leary. -1
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That minutes of regular session of July 26. 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED
7 ic'nnr�nn'*-r rwrT-r-��-rn �r�r�n r.cc -r-.m --�--SS----1 .� O
TI-u yr a VnI-T Tlq 1 1ll�1LLnt JJ lill %-%J LLV11JS1V1IL't\J iC1 vtltuJI1VV ANY! 1V1 ON TT
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 AND PETITIONS
A letter from former Commissioner Sister Mary Janice Belen. RSM, thanking the Board for honoring her
at a special dinner was acknowledged.
Received and placed on file.
Page 82 Board Meeting Minutes
August 23, 1994
COMMITTEE OF THE WHOLE REPORT
August 23. 1994
The Committee of the Whole met on August 9. 1994, to discuss the following topics:
1. Wholesale Water Service Agreements
2. Outside Legal Counsel
3. Energy Adjustment Clause
4. City of Lansing Coordination
Present were Commissioners Christian, Evans. Hassler, O'Learv_ . Sebolt, and Strolle. Absent were
Commissioners Lontz and Williams.
Wholesale Water Senice Agreements. Water Utility Director Clyde Dugan reported that contract
negotiations with Lansing Township and Delta Township on supplying wholesale conditioned water for
their distribution are proceeding favorably. Significant points discussed regarding the proposed wholesale
water service agreements are summarized:
• Capacity-The BWL will be marketing excess portions of its current and future water production
capacity through wholesale contracts.
• Ownership -The BWL's facilities and assets will remain with the BWL. None of the BWL's physical
assets will be transferred. Mains installed as a part of the agreements will be the property of the
B WL.
• Payment-Payments will be required of the communities that reserve capacity from the BWL's
facilities.
• Capitalization and Depreciation-All BWL facilities will be capitalized and depreciated in
accordance with current procedures
• System Interconnects-The cost of connections between distribution and transmission systems will be
borne by the Townships. The BWL may participate in these costs, to the extent that the BWL
receives a benefit from them.
• Wells- .Water supply wells drilled in the BWL's retail service territory will be the property of the
BWL, and will be treated the same as other production facilities. Ownership of wells in the
Townships stays with the Townships.
• Wholesale Rates-The BWL has developed a wholesale rate for conditioned water. This wiii be the
basis of the charges for water sales to the Townships.
• Raw Water Rates-Rates for raw water are yet to be developed. discussions are ongoing.
The presentation included exhibits showing BWL wholesale water sales analysis. including Lansing
Township and Delta Township requirements. Following discussion relating to the costing methods,
principles and preliminary contract provisions for wholesale water sales contracts. the Commissioners
agreed to proceed with finalizing the wholesale water sales contracts for execution. Also discussed was
opening an authorization to start construction in the amount of$500.000. A resolution to this effect will
be included in the General Manager's Recommendations at the regular meeting on August 23. 1994. for
consideration.
Board Meetmp Minutes Page 83
Aupust 23, 1994
Outside Leal Counsel. Staff Attornev Larry Wilhite presented an overview of the BWL's requests for
proposals to provide legal services for Fiscal Years 1994-1996. Fifteen local firms. or firms with
substantial Lansing offices. responded with proposals. Major areas of concern were municipal law. public
utility or energy law, environmental law, labor law, public finance, and commercial litigation. Two other
concerns deemed important were racial and gender demographics of the firm and the size of the firm's
Lansing office. An exhibit showing a compilation of the more important proposal responses was reviewed
in dctail. Following discussion, the Commissioners concurred with staffs proposal which is to be
included with the General Manager's Recommendations at the regular meeting of August 23, 1994, for
consideration.
Enemy Adjustment Clause. General Manager Pandy presented an overview of the dispute over
interpretation of the Belle River Participation contract language relative to coal procurement and the fuel
price. The issue is that the Michigan Public Power Agency(MPPA) is not sharing in Detroit Edison
Company's (DECo) savings from coal. A chronological history of events as of April 1992 leading up to
the fuel price dispute was reviewed. Mr. Pandy reported that this lengthy dispute has approached the
arbitration stage. As a result. DECo has invoiced MPPA an additional $4.8 million retroactively over the
past 3.5 years. MPPA and the BWL intend to pursue all legal remedies available. If DECo's position is
upheld, the impact on BWL customers by virtue of our 64%interest in Belle River would be over$3.1
million. Exhibits highlighting the issues of the Belle River contract were reviewed. This issue is
appearing in the BWL's financial statements as contingent liability.
Citv of Lansing Coordination. The status of coordination activities with the City of Lansing were
discussed:
• Treasurer/Controller Tousley reported on issues of separate water meters for outdoor use and the
definition of residential class customers. A City Council resolution, dated July 25. 1994, rescinded its
previous policy supporting separate residential water meters for outdoor uses, and requested that the
BWL stop installing separate water meters for outdoor uses in areas served by the City Sewage
Disposal System. Residential water customers who currently have separate meters for outdoor water
uses and who are served by the City's Sewage Disposal System will continue to be exempt from
sewerage charges for outdoor water usage measured by their separate meter.
• A recent change to the City's sewer ordinances has resulted in the need for the BWL to revise the
definition of a residential customer. The changes contemplated will reduce electric revenues
approximately$30.724 annually and increase water revenues from customers by approximately$599
annually. Changes to Residential Water Service Rates 1 and 5 and Residentiai Eiectnc Service Rates
1. 2, and 21 will be affected. A public hearing is scheduled September 13. 1994, for public
comments.
Agenda topics for the next quarterly meeting with the City are being developed.
Respectfully submitted.
COMMITTEE OF THE WHOLE
Phillip E. Hassler. Chairman of the Board
Page 94 Boaru iAeeting Minutes
August 23. 1994
BY COMMISSIONER HASSLER--
SECONDED BY COMMISSIONER CHRISTIAN
That the Committee of the Whole Report be approved as read.
Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-8-1
WHEREAS. Ron A. Larabee is a leader whose vision, devotion to purpose, and
technical skill enabled the Board of Water and Light's electric and steam generating
stations to maintain a high level of system availability in a cost-effective manner; and
WHEREAS. Ron A. Larabee has played a leading role in rebuilding and operating
Eckert Station units 2 thru 6 and installing and operating Moores Park boilers 11 thru
14. His operating expertise was again called upon during the design stages of Erickson
Station; and
WHEREAS, in 1973 he was promoted to Superintendent of the newly formed Central
Maintenance Department, a department that was created to consolidate and outfit the
maintenance crews to more efficiently service the Board of Water and Light's generating
facilities. The department began with 13 employees and one small lathe. Under his
relentless direction, it grew to 85 strong with a modern, self-sufficient machine shop and
warehouse complex: and
NOW, to honor his 42.5 years of dedicated service.
IT IS HEREBY RESOLVED that upon his retirement on September 1. 1994. the
Production Maintenance building at 1232 Haco Drive be renamed the RON A.
LARABEE MAINTENANCE CENTER.
WITNESS: The Board of Commissioners of the Board of Water and Light of Lansing.
Michigan, this 23rd day of August. 1994.
--------------------
Res. No. 94-8-2
That the Board approve a new Rail Transportation Agreement with CSX Transportation
(CSXT) and CN North America (CNNA), subject to approval as to form by the BWL's
Legal Counsel. The agreement particulars are as follows:
1. The term of this agreement will be for five(5)years commencing January 1. 1994
and expiring December 31. 1999.
Board Meeting Minutes Page 85
August 23, 1994
Administrative#94-8-2 (Continued)
2. The volume commitment«ill be for 90%minimum annual volume on all eastern
coal requirements for contract years 1995-1998. For contract year 1999 BWL may
elect either the 90%or a 35%minimum annual volume. Eastern coal is defined as
anv coal which is mined east of the Mississippi.
3. Rates will be adjusted quarterly. with the first adjustment effective 4/1/95. using the
Rail Cost Adjustment Factor indexes as published by the Association of American
Railroads. Rate adjustments shall not exceed an annual increase greater than 2.5%.
4. Rates will be reduced by $1.70 per ton if the BWL commits to the use of private
railcar equipment for a minimum twenty-four(24) month period during the term of
the agreement.
5. The Rate effective January 1. 1995 will be$16.15 per ton.
--------------------
By entering into this agreement with CSX Transportation and CN North America, the
BWL will realize a 10%rate reduction effective 1/1/95. Additionally, the 2.5%annual
rate adjustment cap will help to stabilize delivered fuel costs for BWL rate pavers
through the end of the decade. Lastly, with a commitment to eastern U.S. only coal
sourcing. the volume commitment option in 1999 and the opportunity to acquire private
railcar equipment, the BWL was able to meet its goal of acquiring transportation
services that were competitive, market oriented. reliable and flexible.
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER CHRISTIAN
That Resolutions 94-8-1 and 94-8-2 be approved.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-8-3
That the present tuition refund program for employees, adopted in October. 1967 and
amended Julv 1, 1980. and January 1. 1986.be changed effective July 1, 1994 to:
All employees in full-time per-Faanent REGULAR positions be
refunded fifty percent (50%)of all tuition and compulsory fees
for approved courses up to a maximum of nine(9)credits per
term or r semester. Employees must receive a "C"
grade or better for an undergraduate course and a "B" grade or
better for a graduate course to be eligible for reimbursement.
--------------------
(&4ket#reeghs show wording to be deleted: ALL CAPS show wording to be added).
Page 86 Board Meeting Minutes
August 23, 1994
Human Resources#94-8-3 (Continued)
This change results from the approval of a suggestion made by William Schmidt and
accepted by the Suggestion Committee. According to the evaluation of the suggestion,
the difference between quarters and semesters is the overall length. I I weeks compared
to 16 weeks. The number of credits represents the number of classroom hours per week.
Therefore the current policy limits an employee who chooses to attend classes at a
university on semesters. There is no significant financial impact anticipated as a result
of the recommended change and further, it will make the policy more equitable for all
employees attempting to increase their knowledge and skills through higher education.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-8-3 be approved.
Adopted unanimously.
LEGAL
Res. No. 94-84
That the General Manager be authorized to retain the following law firms as special
counsel on an as-needed basis:
1. Foster, Swift, Collins and Smith. P.C.
2. Dickinson. Wright. Moon, Van Dusen and Freeman
3. Willingham and Cote'
4. Clinton Canady Law Offices
These firms shall be retained for a period of two years and shall be reimbursed at their
respective hourly rates. They will provide as-needed advise in the areas of public
finance, municipal law, general commercial litigation, real estate. environmental law,
employment retention. These firms«Zll be submitted to the City Attorney for
recommendation to Citv Council. Use of special counsel would be subject to the
recommendation of Staff Counsel and the approval of the General Manager.
--------------------
BY COMMISSIONER EVANS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-8-4 be approved.
Adopted unanimously.
Board Meetinp-Minutes Page 87
August 23, 1994
PENSION
Res. No. 94-8-5
That Mr. Dale G. Allison, Maintenance Mechanic in Electric Production Maintenance,
be placed on a Voluntary Early Retirement Program (VERP) pension of$959.67 per
month effective September 1. 1994. He has selected Option III with the provision that
after his death. if his wife, Stella M. Allison, survives him she will receive 80%or
$767.74 per month for the rest of her life as provided under Option III.
--------------------
Mr. Allison has worked for the BWL for 14.95 years and is 60 years of age.
--------------------
Res. No. 94-8-6
That Mr. Kenneth W. Berridge. Transformer Repair Respecialist in EC&M, be placed
on an Early Reduced Voluntary Early Retirement Program (VERP)pension of$1,642.71
per month effective September 1. 1994. He has selected Option III with the provision
that after his death, if his wife. Penny L. Berridge, survives him she will receive 75%or
$1,232.03 per month for the rest of her life as provided under Option III.
Mr. Berridge has worked for the BWL for 27.73 years and is 50 years of age.
--------------------
Res. No. 94-8-7
That Mr. Basil Brown. Water Field Representative in Water Distribution,be placed on a
Voluntary Early Retirement Program(VERP)pension of$1.872.95 per month effective
Jepternwr 1. 1.994. He has selected Option rtuI :it1 uti.-Yvv iJivi .hat after his death. if
his wife. Jeanette M. Brown, survives him, she will receive 70%or$1.311.07 per month
for the rest of her life as provided under Option III.
--------------------
Mr. Brown has worked for the BWL for 34.23 years plus 1.095 years City of Lansing
credit and is 61 years of age.
--------------------
Pape 88 Board Meeting Minutes
August 23, 1994
Pension (Continued)
Res. No. 94-8-8
That Mr. Laurence A. Cairns. Maintenance Mechanic Assistant in Construction
Services Department. be placed on an Early Reduced Voluntary Early Retirement
Program (VERP) pension of$1,424.54 per month effective September 1. 1994. He has
selected Option I with the provision that after his death, said amount of pension shall
continue to his wife, Agnes M. Cairns, if she survives him as provided under Option I.
--------------------
Mr. Cairns has worked for the BWL for 27.969 years and is 50 years of age.
--------------------
Res. No. 94-8-9
That Mr. Larry A. Fenska. Pole Setting Machine Operator in Line Construction, be
placed on an Early Reduced Voluntary Early Retirement Program(VERP) pension of
$1.528.46 per month effective September 1. 1994. He has selected Option VI with the
provision that after his death, if his wife, Mary L. Fenska survives him she will receive
80%or$1.222.77 per month as provided under Option VI. If his wife predeceases him,
the pension amount of$1.528.46 will revert back to the regular pension amount of
$1.732.30 for the rest of his life.
--------------------
Mr. Fenska has worked for the BWL for 28.75 years and is 50 years of age.
--------------------
Res. No. 94-8-10
That Mr. James D. Helmker, Material Control Specialist in Stores Department, be
placed on a Voluntary Early Retirement Program(VT-RP)pension of$1,145.56 per
month effective September 1. 1994. He has selected Option VI with the provision that
after his death. if his wife, Patricia J. Helmker survives him she will receive 80%or
$916.45 per month for the rest of her life. If his wife predeceases him.the pension
amount of$1.145.56 will revert back to the regular pension amount of$1.359.36 as
provided under Option VI.
--------------------
Mr. Heimker has worked for the BWL for 21.397 vears and is 58 years of age.
--------------------
Board Meeting Minutes Page 89
August 23, 1994
Pension (Continued)
Res. No. 94-8-11
That Mr. Marion E. Johns. Operator A at Erickson Station, be placed on a Voluntary
Early Retirement Program(VERP) pension of$1.546.90 per month effective September
1. 1994. He has selected Option III with the provision that after his death. if his wife.
Virginia K. Johns, survives him she will receive 80%or$1.237.52 per month for the
rest of her life as provided under Option 1II.
--------------------
Mr. Johns has worked for the BWL for 26.539 years and is 56 years of age.
--------------------
Res. No. 94-8-12
That Mr. Donald R. Melton. Mechanic in Fleet Services, be placed on a Voluntary Early
Retirement Program(VERP)pension of$1.576.29 per month effective September 1,
1994. He has selected Option VI with the provision that after his death, if his wife,
Anna L. Melton, survives him she will receive 80%or$1.261.03 per month for the rest
of her life. If his wife predeceases him, the pension amount of$1,576.29 will revert
back to the regular pension amount of$1,862.15 for the rest of his life as provided under
Option VI.
---------------
Mr. Melton has worked for the BWL for 28.916 years and is 57 years of age.
-------------------
Res. No. 94-8-13
That Mrs. Mary Lou Vaughn-Kosier, Office Assistant in General Accounting,be placed
on a Voluntary Early Retirement Program(VERP)pension of$427.82 per month
effective September 1. 1994. She has selected Option VI with the provision that after
her death, if her husband. Richard D. Kosier. survives her he will receive 15%or$64.17
per month for the rest of his life as provided under Option VI.
--------------------
Mrs. Vaughn-Kosier has worked for the BWL for 7.41 years and is 61 years of age.
--------------------
Pape 90 Board Meeting Minutes
August 23, 1994
Pension (Continued)
Res. No. 94-8-14
That Mr. Gerald L. Wilton, Boulevard Foreman in Line Construction, be placed on a
Voluntary Early Retirement Program(VERP) pension of$2.258.38 per month effective
September L 1994. He has selected Option III with the provision that after his death, if
his wife. Lorna D. Wilton, survives him she will receive 75%or$1,693.79 per month
for the rest of her life as provided under Option III.
--------------------
Mr. Wilton has worked for the BWL for 34.389 years and is 56 years of age.
--------------------
Res. No. 94-8-15
That Mr. Gary A. Zimmerman, Vibration and Balance Specialist in Production
Maintenance. be placed on a Voluntary Early Retirement Program(VERP) pension of
$1.141.10 per month effective September 1, 1994. He has selected Option II with
Workers' Compensation offset with the provision that after his death, if his wife, Sharon
L. Zimmerman, survives him she will receive 50%or$570.55 per month for the rest of
her life as provided under Option II.
--------------------
Mr. Zimmerman has worked for the BWL for 18.1397 vears and is 57 years of age.
--------------------
BY COMMISSIONER CHRISTIAN--
SECONDED BY COMMISSIONER STROLLE
That Resolutions 94-8-5 through 94-8-15, respectively, be approved.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-8-16
Authorize the disposal of 25 pieces of calcining equipment, located at the calcining
plant at 148 S. Cedar Street. This equipment was installed in 1977 and has been
declared surplus based on the recommendation of the Water Utility. In accordance with
the Board of Water and Light's Investment Recovery policy, methods of disposal may
include competitive bid. scrapping or any other appropriate means. A list of equipment
is on file with the Corporate Secretary.
--------------------
C3oard Meeting Minutes Page 91
Aueust 23, 1994
Treasurer/Controller#94-8-16 (Continued)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-8-16 be approved.
Adopted unanimously.
WATER
Res. No. 94-8-17
WHOLESALE WATER SALES CONTRACTS
That the Board agrees to enter into wholesale water sales contracts, with Lansing
Township. for its West Side Water system, and with Delta Township, and authorizes the
General Manager and Corporate Secretary to execute said contracts.
CAPITAL PROJECT AUTHORIZATION
That. in anticipation of said contracts, the Board authorizes a preliminary, non-budgeted
Capital Project in the amount of$500,000 for the purpose of engineering and
construction for the interconnecting pipelines and appurtenances associated with said
wholesale water contracts, and authorizes the General Manager and Water Utility
Director to open an Authorization and incur expenses for this purpose.
The Commissioners have reviewed the costing methods, principles and the preliminary
contract provisions for wholesale water sales contracts at a Committee of the Whole
meeting. held on August 9, 1994.
The Commissioners have been advised that the contract negotiations between the Board
and each Township separately are proceeding favorably.but that it may be another
month or more before the contracts are ready for final consideration by the parties.
Also, that in order to provide wholesale water service in the summer of 1995,
construction of the distribution interconnect must proceed during this construction
season. Authorizing this capital proiect will allow construction to commence prior to
final resolution of the contracts or payment of any Contribution-in-aid of Construction
by the Townships.
--------------------
Res. No. 94-8-18
That the Board agree to serve water to proposed Water District No. 102. Delhi
Township. as requested by resolution of the Delhi Charter Township Board on August 9,
1994. 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:
Pape 92 Board Meeting Minutes
August 23, 1994
Water#94-8-18 (Continued)
1. The Board will accept Water District No. 102 estabLf'!ed by Township resolution
on August 9. 1994. and will provide a potable water ,ply to said district.
2. The Township will be required to make a $23.664 no! . imdable contribution-in-
aid of construction to cover the charges set forth in the __..,:,rd'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
CII) covering the furnishing of a potable water supply in Water District No. 102.
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$23.664 from the Township, the project be
approved for installation. and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement(Supplement CII) to furnish a potable
water supply in Water District No. 102.
The geographical area of Water District No. 102 is a follows:
Holbrook Hills Subdivision Phase 3, Lots 79 thru 100
To provide a potable water supply within the proposed new district requires the
installation of 1.020 feet of water main and fire hydrants at an estimated cost of
$23.664.
The main extension will serve twenty-two(22) residential customers. One-time
connection fees will amount to$14.784. Estimated annual revenue is$7.480.
Water mains to be installed in summer/fall of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of the
agreement.
--------------------
Res. No. 94-8-19
That the Board agree to serve water to proposed Water District No. 103. Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
August 9. 1994. 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. 103 established by Township resolution
on August 9. 1994. and will provide a potable water supply to said district.
Board Meeting Minutes Page 93
August 23, 1994
Water#94-18-19 (Continued)
2. The Township will be required to make a $36.308 non-refundable contribution-in-
aid of construction to cover the charges set forth in the Board's Policies and
Procedures 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
CIII)covering the furnishing of a potable water supply in Water District No. 103.
4. Water mains are to be installed in accordance with the current Board's Policies and
Procedures for Water Service.
Further, that upon receipt of the sum of$35,308 from the Township, the project be
approved for installation, and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement(Supplement CIII)to furnish a potable
water supply in Water District No. 103.
The geographical area of Water District No. 103 is as follows:
Hearthside Acres Subdivision, Phase 4, Lots 102-127
To provide a potable water supply within the proposed new district requires the
installation of 1.565 feet of watermain and fire hvdrants at an estimated cost of$36,308.
The main extension will serve twenty six(26) residential customers. One-time
connection fees will amount to$17,472. Estimated annual revenue is$8,840.
Water mains to be installed in Summer/Fall of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of the
agreement.
--------------------
Res. No. 94-8-20
WHEREAS. the City of Lansing owns and operates the sewage disposal system serving the City
of Lansing, and
WHEREAS. the Board of Water and Light acts as the city's billing agent for the city sewage
disposal system. basing the amount of the customer's sewage bill on the amount of water used by
the customer, and
WHEREAS. the Board of Water and Light traditionally has not applied sewage charges for
customers who separately meter water used exclusively outdoors, since such water does not enter
the sanitary sewer system. and
WHEREAS. the Board of Water and Light, in 1992. embarked on a program to facilitate the
installation of separate water meters that measure a residential customer's outdoor water use, and
WHEREAS. the Citv was aware of and concurred with the BWL's practice of exempting outdoor
water use from sewage charges, and
Pave 94 Board Meeting Minutes
August 23, 1994
Water#94-8-20 (Continued)
WHEREAS, on July 25. 1994. the Lansing City Council approved Resolution#437. This
resolution states that the exemption of outdoor water use from City sewage charges has a
measurable impact on the setting of sewage disposal rates, and
WHEREAS. Resolution#437 rescinds the City's previous policy supporting separate residential
water meters for outdoor uses and requests that the Board of Water and Light stop installing
separate water meters for residential customers served by the Lansing Sewage Disposal System,
and
WHEREAS. Resolution#437 states the City's intention that water customers who already have
separate meters for outdoor water uses should continue to be exempt from sewage charges,
NOW THERE BE IT RESOLVED, THAT in response to the City of Lansing's request. the Board
of Water and Light will halt installation of separate residential water meters for outdoor uses in
areas served by the City Sewage Disposal System, and
BE IT FURTHER RESOLVED, THAT all water customers who are served by the City Sewage
Disposal System. and who had separate outdoor meters installed prior to July 25. 1994, shall
continue to be exempt from sewage charges for outdoor water usage measured by their separate
meters, and
BE IT FURTHER RESOLVED, THAT the Board of Water and Light will continue to encourage
the installation of separate outdoor water use meters for customers in the rest of its service
territory.
-------------------
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-8-17 through 94-8-20. respectively,be approved.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy reported on the following activities items:
Communications Campaign. Communications Director John Strickler reported that the BWL monthly
newsletter mailed with each of the utility bills has taken a new direction. A planned media campaign
developed in association with Pace Creative is to be focused this fall. Representatives from Pace
Creative,-Dennis Pace, Owner, and Debbie Gunther, Account Representative, were introduced. Mr. Pace
provided an overview of the rationale behind the development of the new media messages. He overviewed
the initial "Hometown People. Hometown Power" image-building campaign undertaken two years ago,
which focused on the affordability and the effectiveness of delivering both water and electricity to
Lansing. Advertisements on billboards and newspaper focused on the people of the BWL as one of the
most important resources the utility has. Mr. Pace stated that in the last several customer attitude surveys,
it was noted these ads have run their course as compared to twenty months ago. A new set of media
messages comprised of TV spots and newsletters, created by Pace Creative, were shown to the
Page 95
Board Meeting Minutes
AnMISt 23. 1994
General Manager's Remarks(Continued)
BWL has gained through public relations efforts
Com
missioners. The ads have an environmental theme eand communicate to a younger audience(under
isr )
age 35). They also build on some of the momentum methods of
undertaken in community projects such as Adopt A River. It Was oot effectivehand existing message
a cost-effective campaign and(2) an integrative campaign using
ted
th a
ssioner Eva
commu
nication. Mr. Pace also noted that he and Commons professionals.sn MayoraHollister's diverse
group of Lansing area public relations and communications
campaign will involve television commercials.billboards an newspaper
Task Force.. The City s images image titled. "Lansing. We're Making It Happen! The BWL s
ads designed to enhance Lansing' positive public image.
communications campaign fits in nicely with the City s effort to project a Po
al
General Manager Pandy reported that Adopt A River ndv notedlth t lastt falltthe help
Adopt A River Program. plants to enhance the river banks. Mr. Pa u for
to purchase additional perennial p this project. The Committee is gearing p
BWL committed$5.000 per
year for three years to supportin to meet its goal
a second river cleanup planned September 10. The Adopt A River Committee is hoping
pity Support with this worthwhile project. He
kin contributions from other sources. commissioner Ernest Christian. Chair of the Contributions
by seeking
Committee for Adopt A River. urged continuedcom
thanked BWL staff members John Strickler.Terry Tisdale and others for their assistance.
He pointed out that in comparing receipts of$191.4
Reca of BWL FY 1994 Cash Position. General Mpo gte Pandy reviewed cash receipts receipts f$
disbursements for Fiscal Year ended June, less disbursements of$182.6. it give
gam. However. in reality the BWL used aPProximately$15 million more
million(of which$22.8 million were bond proceeds
g the
appearance of an$8.8 million g
iams
t in reviewin
than received from actual operations in revenues. Commissioner Jne1994 the l rates of return forfor water.electric.
Lively. He said the message is clear that something
Budget Variance Analysis Sheet for Fiscal Year en
and steam are-0.83%._-0.31%. and 0.41%- respec portion of the receivables is below
needs to be done. Commissioner Hassler added that i The past dueepoccounts Receivables.there is a
reviewing th
ne Consumer
noted improvement as compared to seven months g
$3 million. The good news is that the bad debt total is one-half of what it was a year ago.
nded
good w Dir
ector Terry Graham and Customer Services Manager tionth Turner were
`ell need to taketooaddress
gad work in this area. Discussion was held generation needs aTding e
our low rates of return and future powerg
Success Year-End Report. General Manager Pan for reported that
s of$1 3are the
S for a ne uccess t
Share the ints. The employees are eligiblery approximately$10
ended the fiscal vear with 375 po
program savings of$4.7 million. Through the seven year histo of STS. savings o
million have been realized after the STS pay
8 foot culvert pipe is being installed under the street of
ater Construction Tem oraril Closes Cedars Street. Cedar Street is closed between Michigansouth W A
Avenue and Kalamazoo due to c a BWL project. g ressure booster station under constructionletion of
connect the reservoirs o the east side a the new torrential
h p
the Dve Water Conditioning Plant. The severe k°o notrmal by the end of thiseweekelayed the comp
the project. The road
s;ay is expected to be back
Page 96
Board Meeting Minutes
August 23, 1994
General Manager's Remarks (Continued)
Detroit Edison Si7ns Ten-Year Deal with Bi Three Automakers. Detroit Edison Company(DECO)
has signed ten-year electrical contracts with General Motors Corporation.Chrysler Corporation. A summary of what the contract involve s handed out nd reviewed V DECo's
current rate is 5.5 cents per KWH: it drops to 5.0 cents immediately and at the five vear mark. it goes to
4.5 cents remaining for the balance of the ten-year contract. The Big Three will start negotiating with
Consumers Power Companv(CPCo) next week. CPCo's current rate is 5.0 cents per KWH and is
expected to get below Detroit Edison's contract. General Manager Pandy stated that competition in the
utility industry is expected to game. increase. Commissioner Hassler remarked that "cost is the name of the
"
Belie River Restricts Ca Lability Operating Limitation.,
General Manager Pandy handeda letter,
dated August 11, 1994. from Detroit Edison Company addressed to he Michigan Public Po ertAgency
(MPPA) relative to the Belle River capacity. Belle River is temporarily restricting the net demonstrated
operating capabilities of Belle River Units Nos. 1 and 2 is
use of the'burning of Western coal.
effect of this is that when they derate the capacity. MPPA is de at d proportionate tothe ownership e
interest in the plant. MPPA and the BWL intend to pursue this matter because Detroit Edison has taken a
unilateral action that is affecting the other owners. More information will be forthcoming in September.
Recap of Electric Utility Report for FY 1994 General Manager Pandy displayed graphics showing the
Electric System performance for Fiscal Year 1994 in the following areas:
■ Plant Availabilitv
■ Plant Net Heat Rate
■ Erickson Net Heat Rate
■ Electric Net Generation(Eckert. Erickson. Belle River&MPPA)
■ Resale of Power(Gross Profit and Fuel)
■ Electric Sales (Export and Retail)
IN Electric Number of Customers
Based on statistics presented. the Electric Utility experienced another outstanding year.
Electric Production Maintenance Buildin Renamed the Ron A. Larabee Maintenance Center.
General Manager Pandy displa}ed a plaque commemorating the renaming of the Electric Production
Maintenance facility at 1232 Haco Drive to the RON A. La.
MAINTENANCE CENTER. The
surprise ceremonv will be held on August 24. 1994. at 9:30 a.m. atEthe production maintenance facility.
The Commissioners were invited to attend. Mr. Pandy thanked the Board for their support of
Resolution 94-8-1 relative to facility's renaming.
Farewell Wishes to Ro Pefflev. The Board and staff congratulated Assistant General Manager Roy
Peflley on his retirement September 1. 1994. and thanked him for a job well done.
Board Meeting Minutes Page 97
nueust 23, 1994
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER WILLIAMS
That the absence of Commissioner O'Leary be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Lontz, the Board adjourned at 6:21 p.m.
Mary 'Secreta" ry
Filed: August 25, 1994
Marilynn Slade, City Clerk
Page 81
G . ;c1!
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesdav,August 23, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building, 123 West
Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Christian, Evans. Hassler. Lontz, Sebolt, Strolle. and Williams-7
Absent: Commissioner O'Leary. -1
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That minutes of regular session of July 26. 1994. be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED
THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE
AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS.
ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT
THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
COMMUNICATIONS AND PETITIONS
A letter from former Commissioner Sister Mary Janice Belen, RSM, thanking the Board for honoring her
at a special dinner was acknowledged.
Received and placed on file.
Pape 82 Board Meeting Minutes
August 23, 1994
COMMITTEE OF THE WHOLE REPORT
August 23, 1994
The Committee of the Whole met on August 9, 1994. to discuss the following topics:
1. Wholesale Water Service Agreements
2. Outside Legal Counsel
3. Energy Adjustment Clause
4. City of Lansing Coordination
Present were Commissioners Christian, Evans. Hassler, O'Leary. Sebolt, and Strolle. Absent were
Commissioners Lontz and Williams.
Wholesale Water Service Agreements. Water Utility Director Clyde Dugan reported that contract
negotiations with Lansing Township and Delta Township on supplying wholesale conditioned water for
their distribution are proceeding favorably. Significant points discussed regarding the proposed wholesale
water service agreements are summarized:
• Capacity-The BWL will be marketing excess portions of its current and future water production
capacity through wholesale contracts.
• Ownership -The BWL's facilities and assets will remain with the BWL. None of the BWL's physical
assets will be transferred. Mains installed as a part of the agreements will be the property of the
BWL.
• Payment-Payments will be required of the communities that reserve capacity from the BWL's
facilities.
• Capitalization and Depreciation - All BWL facilities will be capitalized and depreciated in
accordance with current procedures
• Svstem Interconnects-The cost of connections between distribution and transmission systems will be
borne by the Townships. The BWL may participate in these costs, to the extent that the BWL
receives a benefit from them.
• Wells- .Water supply wells drilled in the BWL's retail service territory will be the property of the
BWL, and will be treated the same as other production facilities. Ownership of wells in the
Townships stays with the Townships.
• Wholesale Rates -The BWL has developed a wholesale rate for conditioned water. This will be the
basis of the charges for water sales to the Townships.
• Raw Water Rates - Rates for raw water are yet to be developed. discussions are ongoing.
The presentation included exhibits showing BWL wholesale water sales analysis. including Lansing
Township and Delta Township requirements. Following discussion relating to the costing methods,
principles and preliminary contract provisions for wholesale water sales contracts, the Commissioners
agreed to proceed with finalizing the wholesale water sales contracts for execution. Also discussed was
opening an authorization to start construction in the amount of$500.000. A resolution to this effect will
be included in the General Manager's Recommendations at the regular meeting on August 23, 1994. for
consideration.
Board Meetine Minutes Page 83
August 23, 1994
Outside Legal Counsel. Staff Attornev Larry Wilhite presented an overview of the BWL's requests for
proposals to provide legal services for Fiscal Years 1994-1996. Fifteen local firms. or firms with
substantial Lansing offices, responded with proposals. Major areas of concern were municipal law, public
utility or energy law. environmental law, labor law, public finance, and commercial litigation. Two other
concerns deemed important were racial and gender demographics of the firm and the size of the firm's
Lansing office. An exhibit shoving a compilation of the more important proposal responses was reviewed
in detail. Following discussion, the Commissioners concurred with staffs proposal which is to be
included with the General Manager's Recommendations at the regular meeting of August 23, 1994, for
consideration.
Energy. Adjustment Clause. General Manager Pandy presented an overview of the dispute over
interpretation of the Belle River Participation contract language relative to coal procurement and the fuel
price. The issue is that the Michigan Public Power Agency(MPPA) is not sharing in Detroit Edison
Company's (DECO) savings from coal. A chronological history of events as of April 1992 leading up to
the fuel price dispute was reviewed. Mr. Pandy reported that this lengthy dispute has approached the
arbitration stage. As a result. DECo has invoiced MPPA an additional $4.8 million retroactively over the
past 3.5 years. MPPA and the BWL intend to pursue all legal remedies available. If DECo's position is
upheld, the impact on BWL customers by virtue of our 64%interest in Belle River would be over$3.1
million. Exhibits highlighting the issues of the Belle River contract were reviewed. This issue is
appearing in the BWL's financial statements as contingent liability.
Citv of Lansing Coordination. The status of coordination activities with the City of Lansing were
discussed:
Treasurer/Controller Tousley reported on issues of separate water meters for outdoor use and the
definition of residential class customers. A City Council resolution,dated July 25. 1994. rescinded its
previous policy supporting separate residential water meters for outdoor uses, and requested that the
BWL stop installing separate water meters for outdoor uses in areas served by the City Sewage
Disposal System. Residential water customers who currently have separate meters for outdoor water
uses and who are served by the City's Sewage Disposal System will continue to be exempt from
sewerage charges for outdoor water usage measured by their separate meter.
• A recent change to the City's sewer ordinances has resulted in the need for the BWL to revise the
definition of a residential customer. The changes contemplated will reduce electric revenues
approximately$30.724 annually and increase water revenues from customers by approximately$599
annually. Changes to Residential Water Service Rates 1 and 5 and Residential Electric Service Rates
1, 2, and 21 will be affected. A public hearing is scheduled September 13. 1994, for public
comments.
Agenda topics for the next quarterly meeting with the City are being developed.
Respectfully submitted.
COMMITTEE OF THE WHOLE
Phillip E. Hassler. Chairman of the Board
Page 84 Board Meeting Minutes
Aueust 23, 1994
BY COMMISSIONER HASSLER--
SECONDED BY COMMISSIONER CHRISTIAN
That the Committee of the Whole Report be approved as read.
Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-8-1
WHEREAS. Ron A. Larabee is a leader whose vision,devotion to purpose. and
technical skill enabled the Board of Water and Light's electric and steam generating
stations to maintain a high level of system availability in a cost-effective manner; and
WHEREAS. Ron A. Larabee has played a leading role in rebuilding and operating
Eckert Station units 2 thru 6 and installing and operating Moores Park boilers 11 thru
14. His operating expertise was again called upon during the design stages of Erickson
Station.and
WHEREAS, in 1973 he was promoted to Superintendent of the newly formed Central
Maintenance Department. a department that was created to consolidate and outfit the
maintenance crews to more efficiently service the Board of Water and Light's generating
facilities. The department began with 13 employees and one small lathe. Under his
relentless direction, it grew to 85 strong with a modern, self-sufficient machine shop and
warehouse complex. and
NOW. to honor his 42.5 years of dedicated service;
IT IS HEREBY RESOLVED that upon his retirement on September 1. 1994. the
Production Maintenance building at 1232 Haco Drive be renamed the RON A.
LARABEE MAINTENANCE CENTER.
WITNESS: The Board of Commissioners of the Board of Water and Light of Lansing.
Michigan, this 23rd day of August. 1994.
--------------------
Res. No. 94-8-2
That the Board approve a new Rail Transportation Agreement with CSX Transportation
(CSXT)and CN North America (CNNA), subject to approval as to form by the BWL's
Legal Counsel. The agreement particulars are as follows:
1. The term of this agreement will be for five(5)years commencing January 1, 1994
and expiring December 31. 1999.
Board Meeting Minutes Page 85
LIPUS[23, 1994
Administrative#94-8-2 (Continued)
2. The volume commitment will be for 90%minimum annual volume on all eastern
coal requirements for contract years 1995-1998. For contract year 1999 BWL may
elect either the 90%or a 35%minimum annual volume. Eastern coal is defined as
anv coal which is mined cast of the Mississippi.
3. Rates will be adjusted quarterly. with the first adjustment effective 4/l/95. using the
Rail Cost Adjustment Factor indexes as published by the Association of American
Railroads. Rate adjustments shall not exceed an annual increase greater than 2.5%.
4. Rates will be reduced by$1.70 per ton if the BWL commits to the use of private
railcar equipment for a minimum twenty-four(24) month period during the term of
the agreement.
5. The Rate effective January 1. 1995 will be S 16.15 per ton.
--------------------
By entering into this agreement with CSX Transportation and CN North America, the
BWL will realize a 10%rate reduction effective 1/l/95. Additionally, the 2.5%annual
rate adjustment cap will help to stabilize delivered fuel costs for BWL rate payers
through the end of the decade. Lastly, with a commitment to eastern U.S. only coal
sourcing. the volume commitment option in 1999 and the opportunity to acquire private
railcar equipment, the BWL was able to meet its goal of acquiring transportation
services that were competitive. market oriented. reliable and flexible.
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER CHRISTIAN
That Resolutions 94-8-1 and 94-8-2 be approved.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-8-3
That the present tuition refund program for employees, adopted in October, 1967 and
amended July 1. 1980.and January 1. 1986. be changed effective July 1. 1994 to:
All employees in full-time peffnanent REGULAR positions be
refunded fifty percent(50%)of all tuition and compulsory fees
for approved courses up to a maximum of nine (9)credits per
term or siN a e�.�-ed—��'_c semester. Employees must receive a "C"
grade or better for an undergraduate course and a "B" grade or
better for a graduate course to be eligible for reimbursement.
--------------------
(ctFikethFOUg S show wording to be deleted: ALL CAPS show wording to be added).
Pape 86 Board Meeting Minutes
August 23, 1994
Human Resources#94-8-3 (Continued)
This change results from the approval of a suggestion made by William Schmidt and
accepted by the Suggestion Committee. According to the evaluation of the suggestion,
the difference between quarters and semesters is the overall length; 11 weeks compared
to 16 weeks. The number of credits represents the number of classroom hours per week.
Therefore the current policy limits an employee who chooses to attend classes at a
university on semesters. There is no significant financial impact anticipated as a result
of the recommended change and further. it will make the policy more equitable for all
employees attempting to increase their knowledge and skills through higher education.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-8-3 be approved.
Adopted unanimously.
LEGAL
Res. No. 94-84
That the General Manager be authorized to retain the following law firms as special
counsel on an as-needed basis:
1. Foster, Swift. Collins and Smith, P.C.
2. Dickinson, Wright. Moon, Van Dusen and Freeman
3. Willingham and Cote'
4. Clinton Canady Law Offices
These firms shall be retained for a period of two years and shall be reimbursed at their
respective hourly rates. They will provide as-needed advise in the areas of public
finance, municipal law, general commercial litigation, real estate, environmental law,
employment retention. These firms will be submitted to the City Attorney for
recommendation to City Council. Use of special counsel would be subject to the
recommendation of Staff Counsel and the approval of the General Manager.
-------------------
BY COMMISSIONER EVANS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-8-4 be approved.
Adopted unanimously.
Board Meeting Minutes Page 87
August 23, 1994
PENSION
Res. No. 94-8-5
That Mr. Dale G. Allison. Maintenance Mechanic in Electric Production Maintenance,
be placed on a Voluntary Early_ Retirement Program(VERP)pension of$959.67 per
month effective September 1. 1994. He has selected Option III with the provision that
after his death, if his wife. Stella M. Allison, survives him she will receive 80%or
$767.74 per month for the rest of her life as provided under Option III.
--------------------
Mr. Allison has worked for the BWL for 14.95 years and is 60 years of age.
--------------------
Res. No. 94-8-6
That Mr. Kenneth W. Berridge, Transformer Repair Respecialist in EC&M,be placed
on an Eariv Reduced Voluntary Early Retirement Program (VERP)pension of$1,642.71
per month effective September 1. 1994. He has selected Option III with the provision
that after his death, if his wife. Penny L. Berridge, survives him she will receive 75%or
$1.232.03 per month for the rest of her life as provided under Option III.
--------------------
Mr. Berridge has worked for the BWL for 27.73 years and is 50 years of age.
--------------------
Res. No. 94-8-7
That Mr. Basil Brown, Water Field Representative in Water Distribution. be placed on a
Voluntary Early Retirement Program(VERP)pension of$1.872.95 per month effective
September 1. 1994. He has selected Option III with the provision that after his death, if
his wife. Jeanette M. Brown, survives him, she will receive 70%or$1.311.07 per month
for the rest of her life as provided under Option III.
--------------------
Mr. Brown has worked for the BWL for 34.23 years plus 1.095 years City of Lansing
credit and is 61 years of age.
--------------------
Page 88 Board Meeting Minutes
August 23, 1994
Pension (Continued)
Res. No. 94-8-8
That Mr. Laurence A. Cairns. Maintenance Mechanic Assistant in Construction
Services Department, be placed on an Early Reduced Voluntary Early Retirement
Program (VERP) pension of$1.424.54 per month effective September 1. 1994. He has
selected Option I with the provision that after his death, said amount of pension shall
continue to his wife. Agnes M. Cairns, if she survives him as provided under Option I.
--------------------
Mr. Cairns has worked for the BWL for 27.969 years and is 50 years of age.
--------------------
Res. No. 94-8-9
That Mr. Larry A. Fenska. Pole Setting Machine Operator in Line Construction, be
placed on an Early Reduced Voluntary Early Retirement Program (VERP) pension of
$1.528.46 per month effective September 1. 1994. He has selected Option VI with the
provision that after his death, if his wife, Mary L. Fenska survives him she will receive
80%or$1.222.77 per month as provided under Option VI. If his wife predeceases him,
the pension amount of$1.528.46 will revert back to the regular pension amount of
$1.732.30 for the rest of his life.
--------------------
Mr. Fenska has worked for the BWL for 28.75 years and is 50 years of age.
--------------------
Res. No. 94-8-10
That Mr. James D. Helmker. Material Control Specialist in Stores Department, be
placed on a Voluntary Early Retirement Program(VERP)pension of$1,145.56 per
month effective September 1. 1994. He has selected Option VI with the provision that
after his death, if his wife, Patricia J. Helmker survives him she will receive 80%or
$916.45 per month for the rest of her life. If his wife predeceases him, the pension
amount of$1.145.56 will revert back to the regular pension amount of$1.359.36 as
provided under Option VI.
--------------------
Mr. Helmkcr has worked for the BWL for 21.397 years and is 58 years of age.
--------------------
Board Meeting Minutes Page 89
,lueust 23, 1994
Pension (Continued)
Res. No. 94-8-11
That Mr. Marion E. Johns. Operator A at Erickson Station, be placed on a Voluntary
Early Retirement Program(VERP)pension of$1.546.90 per month effective September
1. 1994. He has selected Option III with the provision that after his death, if his wife.
Virginia K. Johns, survives him she will receive 80%or$1.237.52 per month for the
rest of her life as provided under Option III.
--------------------
Mr. Johns has worked for the BWL for 26.539 years and is 56 years of age.
--------------------
Res. No. 94-8-12
That Mr. Donald R. Melton, Mechanic in Fleet Services. be placed on a Voluntary Early
Retirement Program(VERP)pension of$1.576.29 per month effective September 1,
1994. He has selected Option VI with the provision that after his death, if his wife,
Anna L. Melton. survives him she will receive 80%or$1.261.03 per month for the rest
of her life. If his wife predeceases him, the pension amount of$1.576.29 will revert
back to the regular pension amount of$1,862.15 for the rest of his life as provided under
Option V1.
----------------
Mr. Melton has worked for the BWL for 28.916 years and is 57 years of age.
--------------------
Res. No. 94-8-13
That Mrs. Mary Lou Vaughn-Kosier, Office Assistant in General Accounting,be placed
on a Voluntary Early Retirement Program (VERP) pension of$427.82 per month
effective September 1. 1994. She has selected Option VI with the provision that after
her death, if her husband. Richard D. Kosier, survives her he will receive 15%or$64.17
per month for the rest of his life as provided under Option VI.
--------------------
Mrs. Vaughn-Kosier has worked for the BWL for 7.41 years and is 61 years of age.
--------------------
Paee 90 Board Meetine Minutes
August 23. 1994
Pension (Continued)
Res. No. 94-8-14
That Mr. Gerald L. Wilton, Boulevard Foreman in Line Construction,be placed on a
Voluntary Early Retirement Program(VERP) pension of$2.258.38 per month effective
September 1. 1994. He has selected Option III with the provision that after his death, if
his wife, Lorna D. Wilton, survives him she will receive 75%or$1.693.79 per month
for the rest of her life as provided under Option III.
--------------------
Mr. Wilton has worked for the BWL for 34.389 vears and is 56 years of age.
--------------------
Res. No. 94-8-15
That Mr. Gary A. Zimmerman, Vibration and Balance Specialist in Production
Maintenance, be placed on a Voluntary Early Retirement Program(VERP)pension of
$1.141.10 per month effective September 1, 1994. He has selected Option II with
Workers' Compensation offset with the provision that after his death. if his wife, Sharon
L. Zimmerman, survives him she will receive 50%or$570.55 per month for the rest of
her life as provided under Option II.
--------------------
Mr. Zimmerman has worked for the BWL for 18.1397 vears and is 57 years of age.
--------------------
BY COMMISSIONER CHRISTIAN--
SECONDED BY COMMISSIONER STROLLE
That Resolutions 94-8-5 through 94-8-15, respectively, be approved.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-8-16
Authorize the disposal of 25 pieces of calcining equipment, located at the calcining
plant at 148 S. Cedar Street. This equipment was installed in 1977 and has been
declared surplus based on the recommendation of the Water Utility. In accordance with
the Board of Water and Light's Investment Recovery policy, methods of disposal may
include competitive bid, scrapping or any other appropriate means. A list of equipment
is on file with the Corporate Secretary.
--------------------
Board Meeting Minutes Page 91
August 23, 1994
Treasurer/Controller#94-8-16 (Continued)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-5-16 be approved.
Adopted unanimously.
WATER
Res. No. 94-8-17
WHOLESALE WATER SALES CONTRACTS
That the Board agrees to enter into wholesale water sales contracts. with Lansing
Township. for its West Side Water system, and with Delta Township, and authorizes the
General Manager and Corporate Secretary to execute said contracts.
CAPITAL PROJECT AUTHORIZATION
That, in anticipation of said contracts, the Board authorizes a preliminary, non-budgeted
Capital Project in the amount of$500.000 for the purpose of engineering and
construction for the interconnecting pipelines and appurtenances associated with said
wholesale water contracts, and authorizes the General Manager and Water Utility
Director to open an Authorization and incur expenses for this purpose.
--------------------
The Commissioners have reviewed the costing methods, principles and the preliminary
contract provisions for wholesale water sales contracts at a Committee of the Whole
meeting, held on August 9, 1994.
The Commissioners have been advised that the contract negotiations between the Board
and each Township separately are proceeding favorably. but that it may be another
month or more before the contracts are ready for final consideration by the parties.
Also, that in order to provide wholesale water service in the summer of 1995,
construction of the distribution interconnect must proceed during this construction
season. Authorizing this capital project will allow construction to commence prior to
final resolution of the contracts or payment of any Contribution-in-aid of Construction
by the Townships.
--------------------
Res. No. 94-8-18
That the Board agree to serve water to proposed Water District No. 102, Delhi
Township. as requested by resolution of the Delhi Charter Township Board on August 9.
1994, 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:
Page 92 hoard Meeting Minutes
August 23, 1994
Water#94-8-18 (Continued)
1. The Board will accept Water District No. 102 established by Township resolution
on August 9. 1994, and will provide a potable water supply to said district.
2. The Township will be required to make a $23.664 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
CII)covering the furnishing of a potable water supply in Water District No. 102.
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$23.664 from the Township, the project be
approved for installation. and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement(Supplement CII) to furnish a potable
water supply in Water District No. 102.
The geographical area of Water District No. 102 is a follows:
Holbrook Hills Subdivision Phase 3, Lots 79 thru 100
To provide a potable water supply within the proposed new district requires the
installation of 1.020 feet of water main and fire hydrants at an estimated cost of
$23,664.
The main extension will serve twenty-two(22) residential customers. One-time
connection fees will amount to$14.784. Estimated annual revenue is $7.480.
Water mains to be installed in summer/fall of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of the
agreement.
--------------------
Res. No. 94-8-19
That the Board agree to serve water to proposed Water District No. 103. Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
August 9. 1994, 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. 103 established by Township resolution
on August 9, 1994. and will provide a potable water supply to said district.
Board Meeting Minutes Page 93
August 23, 1994
Water#94-18-19 (Continued)
2. The Township will be required to make a $36,308 non-refundable contribution-in-
aid of construction to cover the charges set forth in the Board's Policies and
Procedures 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
CIII)covering the furnishing of a potable water supply in Water District No. 103.
4. Water mains are to be installed in accordance with the current Board's Policies and
Procedures for Water Service.
Further, that upon receipt of the sum of$35,308 from the Township, the project be
approved for installation.and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement(Supplement CIII) to furnish a potable
water supply in Water District No. 103.
The geographical area of Water District No. 103 is as follows:
Hearthside Acres Subdivision. Phase 4. Lots 102-127
To provide a potable water supply within the proposed new district requires the
installation of 1.565 feet of watermain and fire hydrants at an estimated cost of$36.308.
The main extension will serve twenty six(26) residential customers. One-time
connection fees will amount to$17.472. Estimated annual revenue is$8,840.
Water mains to be installed in Summer/Fall of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of the
agreement.
--------------------
Res. No. 94-8-20
WHEREAS, the City of Lansing owns and operates the sewage disposal system serving the City
of Lansing, and
WHEREAS. the Board of Water and Light acts as the city's billing agent for the city sewage
disposal system. basing the amount of the customer's sewage bill on the amount of water used by
the customer, and
WHEREAS. the Board of Water and Light traditionally has not applied sewage charges for
customers who separately meter water used exclusively outdoors, since such water does not enter
the sanitary sewer system, and
WHEREAS. the Board of Water and Light, in 1992. embarked on a program to facilitate the
installation of separate water meters that measure a residential customer's outdoor water use, and
WHEREAS. the Citv was aware of and concurred with the BWL's practice of exempting outdoor
water use from sewage charges, and
Pave 94 Board Meeting Minutes
Aueust 23, 1994
Water#94-8-20 (Continued)
WHEREAS, on July 25, 1994, the Lansing City Council approved Resolution#437. This
resolution states that the exemr;tion of outdoor water use from City sewage charges has a
measurable impact on the sett;: ,g of sewage disposal rates. and
WHEREAS, Resolution#43 ..-scinds the City's previous policy supporting separate residential
water meters for outdoor uses and requests that the Board of Water and Light stop installing
separate water meters for residential customers served by the Lansing Sewage Disposal System,
and
WHEREAS, Resolution#437 states the City's intention that water customers who already have
separate meters for outdoor water uses should continue to be exempt from sewage charges,
NOW THERE BE IT RESOLVED. THAT in response to the City of Lansing's request. the Board
of Water and Light Nvill halt installation of separate residential water meters for outdoor uses in
areas served by the City Sewage Disposal System, and
BE IT FURTHER RESOLVED, THAT all water customers who are served by the City Sewage
Disposal System. and who had separate outdoor meters installed prior to July 25, 1994, shall
continue to be exempt from sewage charges for outdoor water usage measured by their separate
meters, and
BE IT FURTHER RESOLVED, THAT the Board of Water and Light will continue to encourage
the installation of separate outdoor water use meters for customers in the rest of its service
territory.
--------------------
BY COMMISSIONER WILLIAMS
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-8-17 through 94-820, respectively, be approved.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy reported on the following activities items:
Communications Campaign. Communications Director John Strickler reported that the BWL monthly
newsletter mailed with each of the utility bills has taken a new direction. A planned media campaign
developed in association with Pace Creative is to be focused this fall. Representatives from Pace
Creative,-Dennis Pace, Owner, and Debbie Gun!' _r, Account Representative, were introduced. Mr. Pace
provided an overview of the rationale behind �:ic ..:velopmen:of the new media messages. He overviewed
the initial "Hometown People, Hometown Power image-building campaign undertaken two years ago,
which focused on the affordability and the effectiveness of delivering both water and electricity to
Lansing. Advertisements on billboards and newspaper focused on the people of the BWL as one of the
most important resources the utility has. Mr. Pace stated that in the last several customer attitude surveys,
it was noted these ads have run their course as compared to twenty months ago. A new set of media
messages comprised of TV spots and newsletters, created by Pace Creative, were shown to the
Board Meeting Minutes Page 95
August 23, 1994
General Manager's Remarks(Continued)
Commissioners. The ads have an environmental theme and communicate to a younger audience (under
age 35). They also build on some of the momentum the BWL has gained through public relations efforts
undertaken in community projects such as Adopt A River. It was noted that the new media message is (1)
a cost-effective campaign and(2)an integrative campaign using cost effective and existing methods of
communication. Mr. Pace also noted that he and Commissioner Eva Evans participated with a diverse
group of Lansing area public relations and communications professionals. in Mayor Hollister's Image
Task Force.. The City's image campaign will involve television commercials. billboards and newspaper
ads designed to enhance Lansing's image titled. "Lansing. We're Making It Happen!" The BWL's
communications campaign fits in nicely with the City's effort to project a positive public image.
Adopt A River Program. General Manager Pandy reported that Adopt A River could use financial help
to purchase additional perennial plants to enhance the river banks. Mr. Pandy noted that last fall the
BWL committed$5.000 per year for three years to support this project. The Committee is gearing up for
a second river cleanup planned September 10. The Adopt A River Committee is hoping to meet its goal
by seeking contributions from other sources. Commissioner Ernest Christian. Chair of the Contributions
Committee for Adopt A River. urged continued community support with this worthwhile project. He
thanked BWL staff members John Strickler. Terry Tisdale and others for their assistance.
Recap of BWL FY 1994 Cash Position. General Manager Pandy reviewed cash receipts and
disbursements for Fiscal Year ended June. 1994. He pointed out that in comparing receipts of$191.4
million(of which$22.8 million were bond proceeds) less disbursements of$182.6. it gives the
appearance of an$8.8 million gain. However, in reality the BWL used approximately$15 million more
than received from actual operations in revenues. Commissioner Williams noted that in reviewing the
Budget Variance Analysis Sheet for Fiscal Year ended June 1994. the rates of return for water. electric.
and steam are-0.83%. -0.31%. and 0.41%. respectively. He said the message is clear that something
needs to be done. Commissioner Hassler added that in reviewing the Accounts Receivables. there is a
noted improvement as compared to seven months ago. The past due portion of the receivables is below
$3 million. The good news is that the bad debt total is one-half of what it was a year ago. Consumer
Services Director Terry Graham and Customer Services Manager Ken Turner were commended for their
good work in this area. Discussion was held regarding the direction the BWL will need to take to address
our low rates of return and future power generation needs.
Share the Success Year-End Report. General Manager Pandv reported that the Share the Success(STS)
ended the fiscal vear with 375 points. The employees are eligible for bonuses of$1.3 million, for a net
program savings of$4.7 million. Through the seven year history of STS, savings of approximately$10
million have been realized after the STS payments.
Water Construction Temporarily Closes Cedar Street. Cedar Street is closed between Michigan
Avenue and Kalamazoo due to a BWL project. An 8 foot culvert pipe is being installed under the street to
connect the reservoirs on the east side to the new high pressure booster station under construction south of
the Dve Water Conditioning Plant. The severe torrential rain over the weekend delayed the completion of
the project. The roadway is expected to be back to normal by the end of this week.
Page 96 liuc:_;.4eeting Minutes
August 23, 1994
General Manager's Remarks(Continued)
Detroit Edison Siens Ten-Year Deal with Big Three Automakers. Detroit Edison Companv(DECo)
has signed ten-year electrical contracts with General Motors Corporation. Ford Motor Company, and
Chrysler Corporation. A summary of what the contract involves was handed out and reviewed. DECo's
current rate is 5.5 cents per KWH. it drops to 5.0 cents immediately and at the five year mark. it goes to
4.5 cents remaining for the balance of the ten-vear contract. The Big Three will start negotiating with
Consumers Power Company(CPCo) next week. CPCo's current rate is 5.0 cents per KWH and is
expected to get below Detroit Edison's contract. General Manager Pandy stated that competition in the
utility industry is expected to increase. Commissioner Hassler remarked that "cost is the name of the
game."
Belle River Restricts Cavability Operating Limitation. General Manager Pandy handed out a letter,
dated August 1 1. 1994. from Detroit Edison Company addressed to the Michigan Public Power Agency
(MPPA) relative to the Belle River capacity. Belle River is temporarily restricting the net demonstrated
operating capabilities of Belle River Units Nos. 1 and 2 because of the burning of Western coal. The
effect of this is that when they derate the capacity. MPPA is derated proportionate to the ownership
interest in the plant. MPPA and the BWL intend to pursue this matter because Detroit Edison has taken a
unilateral action that is affecting the other owners. More information will be forthcoming in September.
Recap of Electric Utility Report for FY 1994. General Manager Pandy displayed graphics showing the
Electric System performance for Fiscal Year 1994 in the following areas:
■ Plant Availability
■ Plant Net Heat Rate
■ Erickson Net Heat Rate
■ Electric Net Generation(Eckert. Erickson, Belle River&MPPA)
■ Resale of Power(Gross Profit and Fuel)
■ Electric Sales (Export and Retail)
■ Electric Number of Customers
Based on statistics presented, the Electric Utility experienced another outstanding year.
Electric Production Maintenance Building Renamed the Ron A. ,1�.rabee Maintenance Center.
General Manager Pandy displayed a plaque commemorating the renaming of the Electric Production
Maintenance facility at 1232 Haco Drive to the RON A. LARABEE MAINTENANCE CENTER. The
surprise ceremony will be held on August 24. 1994. at 9:30 a.m, at the production maintenance facility.
The Commissioners were invited to attend. Mr. Pandy thanked the Board for their support of
Resolution 94-8-1 relative to facility's renaming.
Farewell Wishes to Rov Pefflev. The Board and staff congratulated Assistant General Manager Roy
Pefiley on his retirement September 1, 1994. and thanked him for a job well done.
Board Meeting Minutes Page 97
Aueust 23. ]994
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER WILLIAMS
That the absence of Commissioner O'Leary be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Lontz,the Board adjourned at 6:21 p.m.
Marv . tecreta
Filed: August 25, 1994
Marilynn Slade. City Clerk
56
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, July 26, 1994
The Board of Commissioners met in regular session at 5:34 p.m., in the Main Office Building, 123
West Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Christian, Hassler, Lontz, O'Leary, Sebolt, and Williams -6
Absent: Evans and Strolle -2
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
ANNUAL ORGANIZATION
Chairman Hassler announced that in accordance with provisions of the City Charter and the Rules
of Administrative procedure of the Board of Water and Light, the first regular meeting of the fiscal
year is designated as the organizational meeting. He called for the report of the Nominating
Committee for the results of the election of officers for the ensuing fiscal year.
REPORT OF THE NOMINATING COMMITTEE
(Resolution 94-7-1)
THE NOMINATING COMMITTEE, to whom was referred the duty of establishing the process
of nominating officers of the Board of Commissioners and staff appointments for Fiscal Year
1994-95,
REPORTS AS FOLLOWS: The Committee submits the following slate of officers for the ensuing
fiscal year, or until a successor is duly elected, whichever last occurs:
Chair - Phillip E. Hassler
Vice Chair - Eva L. Evans
Chair Pro Tern - Gerald W. Williams
57 Board Meeting Minutes
June 28, 1994
The Committee further submits the following slate of staff appointments for the ensuing fiscal year,
or, until a successor is appointed, whichever last occurs:
Director and General Manager - Joseph Pandy, Jr.
Corporate Secretary - Mary E. Sova
Internal Auditor - Kellie L. Willson
SIGNED BY COMMISSIONERS:
John Strolle, Chair
Eva Evans
David O'Leary
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER WILLIAMS
That the Report of the Nominating Committee, including Resolution 94-7-1, be
approved as presented.
Adopted unanimously.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER WILLIAMS
That minutes of regular session of June 28, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE
AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING
ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION
BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER
NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO
ADJOURNMENT.
No persons spoke.
Board Meetine Minutes 58
June 28, 1994
GENERAL MANAGER'S RECOMMENDATIONS
HUMAN RESOURCES
Res. No. 94-7-2
That Ruthann McGoldrick, a Customer Billing Representative for Customer
Accounts, be awarded a total of$321.60 for suggestion proposal number 1993-
227, to add a flag to arrangement screens of customers whose meters need to be
read to alert Customer Service Representatives before making arrangements on the
account.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a net
savings of$2,466 in the first year.
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-7-2 be approved as presented.
Adopted unanimously.
PENSION
Res. No. 94-7-3
That Robert A. Ricketts, Operator B at Eckert Station, be placed on a disability
pension of$988.32 per month effective April 26, 1994. He has selected a straight
pension with Workers' Compensation Offset and Eligible Domestic Relations Order
Offset.
--------------------
Mr. Ricketts has worked for the BWL for 21.31 years and is 56 years of age.
--------------------
Res. No. 94-7-4
That John M. Sanders, Stock Handler at Stores Department, be placed on a
disability pension of$573.23 per month effective June 15, 1994. He has selected
Option I with Workers' Compensation Offset with the provision that after his death,
said amount of pension shall continue to his wife, Norma Gean Sanders, if she
survives him, as provided under Option 1.
--------------------
Mr. Sanders has worked for the BWL for 18.68 years and is 58 years of age.
59 Board Meeting Minutes
June 28. 1994
Res. No. 94-7-5
That Clarence Hill, Lubricator in Electric Production Maintenance, be placed on a
disability pension of$506.04 per month effective June 19, 1994. He has selected
Option IV with Workers' Compensation Offset with the provision that after his
death, if his wife, Claudette S. Hill, survives him she will receive 100% or $506.04
as provided under Option IV. If his wife predeceases him, the pension amount of
$506.04 will revert back to the regular pension amount of$595.81 for the rest of
his life.
--------------------
Mr. Hill has worked for the BWL for 15.07 years and is 54 years of age.
--------------------
Res. No. 94-7-6
That Donald D. Gibbons, Security Guard at Stores Department, be placed on a
disability pension of$798.68 per month effective September 1, 1994. He has
selected Option IV with the provision that after his death, if his wife, Carolyn K.
Gibbons, survives him she will receive 100% or $798.68 per month as provided
under Option IV. If his wife predeceases him, the pension amount of$798.68 will
revert back to the regular pension amount of$929.31 for the rest of his life.
--------------------
Mr. Gibbons has worked for the BWL for 24.55 years and is 51 years of age.
--------------------
Res. No. 94-7-7
That Albert Oliver, Operator B-Water Treatment at Eckert Station, be placed on a
disability pension of$1,150.99 per month effective September 1, 1994. He has
selected Option I with the provision that after his death, said amount of pension
shall continue to his wife, Lorraine M. Oliver, if she survives him, as provided
under Option I.
--------------------
Mr. Oliver has worked for the BWL for 24.36 years and is 52 years of age.
--------------------
Board Meeting Minutes 60
June 28. 1994
BY COMMISSIONER CHRISTIAN--
SECONDED BY COMMISSIONER WILLIAMS
That Resolutions 94-7-3 through 94-7-7, respectively, be approved.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-7-8
RESOLVED, that the date for a Public Hearing to solicit public opinion on the
proposed changes to Residential Water Service Rates 1 and 5 and Residential
Electric Service Rates I, 2 and 21 be set for Tuesday, September 13, 1994. This
date could mean an October 15, 1994 effective date for the proposed changes.
FURTHER RESOLVED, that staff file the proposed rate changes and the public
hearing date with the City Clerk as required by the Lansing City Charter by Friday,
July 29, 1994.
--------------------
The proposed rate changes involve the definition of a residential customer and the
availability of dedicated water meter service.
--------------------
Res. No. 94-7-9
That the attached Lansing City Enterprise Community Rebate, which was the
subject of a public hearing at this meeting, be adopted and made effective for two
years from the date the Lansing City Enterprise Community is officially established.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-7-8 and 94-7-9 be approved.
Adopted unanimously.
E.ard - -1 -' _:.e _ :io. _ ',a
LANSING CITY ENTERPRISE COMMUNITY REBATE
Purpose-The primary purpose of this rebate is to encourage investment in the proposed Lansing City Enterprise
Community. The Lansing City Enterprise Community is defined as the following 1990 census tracts: Numbers 2,3,5,7,
8. 12. 13, 14. 15. 19, 20, 21 and 65.
Availahility-The rebate will be available to customers who locate or restart an idle service within the Lansing City
Enterprise Community. This rebate is available for a two year period from the date the Lansing City Enterprise
Community is established. All provisions of this rebate are the same as the principal water,electric or steam service rate
with the following exceptions:
1. This rebate is available to all customers installing a new water, electric or steam service in the Lansing City Enterprise
Community.
2. This rebate is available to all customers restarting an existing idle water,electric or steam service in the Lansing City
Enterprise Community after a period of no consumption.
3. This rebate is not available to Electric Rate 4 or Electric Rate 5 customers who sign a contract for service under the
Electric Economic Development Rider.
Paymen - Upon application by the customer and approval by the City of Lansing and the Board of Water and Light,the
customer will be paid a rebate on the previous 12 month's utility (water, electric,steam)charges. The rebate is ten(10)
percent of the total utility charges charged and paid by the customer under the various water,electric or steam service rates
applicable to that customer.
LANSING CITY ENTERPRISE COMMUNITY REBATE
Purim- The primary purpose of this rebate is to encourage investment in the proposed Lansing City Enterprise
Community. The Lansing City Enterprise Community is defined as the following 1990 census tracts: Numbers 2, 3,5,7.
H, 12, 13, 14. 15, 19, 20,21 and 65.
Availability - The rebate will be available to customers who locate or restart an idle service within the Lansing City
Enterprise Community. This rebate is available for a two year period from the date the Lansing City Enterprise
Community is established. All provisions of this rebate are the same as the principal water,electric or steam service rate
with the following exceptions:
1. This rebate is available to all customers installing a new water,electric or steam service in the Lansing City Enterprise
Community.
2. This rebate is available to all customers restarting an existing idle water,electric or steam service in the Lansing City
Enterprise Community alter a period of no consumption.
3. This rebate is not available to Electric Rate 4 or Electric Rate 5 customers who sign a contract for service under the
Electric Economic Development Rider.
Payment- Upon application by the customer and approval by the City of Lansing and the Board of Water and Light,the
customer will be paid a rebate on the previous 12 month's utility (water,electric, stewn)charges. The rebate is ten(10)
percent of the total utility charges charged and paid by the customer under the various water,electric or steam service rates
applicable to that customer.
1 _.. y.3n d r.�v1==., ._.._-. ;o. E4
LANSING CITY ENTERPRISE COMMUNITY REBATE
Purpose -The primary purpose of this rebate is to encourage investment in the proposed Lansing City Enterprise
Community. The Lansing City Enterprise Community is defined as the following 1990 census tracts: Numbers 2,3, 5,7,
H. 12, 13, 14. 15, 19,20. 21 and 65.
Avadahilit_y- The rebate will be available to customers who locate or restart an idle service within the Lansing City
Enterprise Community. This rebate is available for a two year period from the date the Lansing City Enterprise
Community is established. All provisions of this rebate are the same as the principal water,electric or steam service rate
with the following exceptions:
1. This rebate is available to all customers installing a new water,electric or steam service in the Lansing City Enterprise
Community.
2. This rebate is available to all customers restarting an existing idle water,electric or steatn service in the Lansing City
Enterprise Community after a period of no consumption.
3. This rebate is not available to Electric Rate 4 or Electric Rate 5 customers who sign a contract for service under the
Electric Economic Development Rider.
Payment- Upon application by the customer and approval by the City of Lansing and the Board of Water and Light, the
customer will be paid a rebate on the previous 12 month's utility (water,electric, steam)charges. The rebate is ten(10)
percent of the total utility charges charged and paid by the customer under the various water,electric or steam service rates
applicable to that customer.
Adoored: _':�::e: -- _994
61 Board Meeting Minutes
June 28. 1994
WATER
Res. No. 94-7-10
That the Board agree to serve water to proposed Water District No. 101, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on June
21, 1994, 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. 101 established by Township
resolution on 6/21/94, and will provide a potable water supply to said district.
2. The Township will be required to make a $70,412 non-refundable contribution-
in-aid of construction to cover the charges set forth in the Board's Policies and
Procedures 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
CI) covering the furnishing of a potable water supply in Water District No. 101.
4. Water mains are to be installed in accordance with the current Board's Policies
and Procedures for Water Service.
Further, that upon receipt of the sum of$70,412 from the Township, the project be
approved for installation, and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement (Supplement CI) to furnish a
potable water supply in Water District No. 101.
The geographical area of Water District No. 101 is as follows:
College Meadows Subdivision Phase I, Lots 1 thru 31.
To provide a potable water supply within the proposed new district requires the
installation of 3,035 feet of water main and fire hydrants at an estimated cost of
$70,412.
The main extension will serve thirty one (31) residential customers. One-time
connection fees will amount to $20,832. Estimated annual revenue is $10,540.
Water mains to be installed in Summer/Fall of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of
the agreement.
--------------------
Board Meeting Minutes 62
June 28. 1994
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-7-10 be approved.
Adopted unanimously.
The following was read by Chairman Hassler:
RESOLUTION OF APPRECIATION
TO SISTER MARY JANICE BELEN, R.S.M.
WHEREAS, It is with the greatest pleasure that the Board of Commissioners join in honoring
SISTER MARY JANICE BELEN, R.S.M., who served on this Board with dedication and
distinction since her appointment on March 24, 1975; and
WHEREAS, Sister Mary Janice Belen served on all of the Board's standing committees,
including other special committees such as the Public Opinion Poll Committee in 1979 to assess
bulk power supply, Search and Select Committee in 1984 to hire a new General Manager, and was
elected the Board's first woman chairperson in 1980 and 1981. During her tenure on the Board,
Sister Mary Janice Belen actively participated in numerous city and state planning commissions
and health and education advisory councils; and
WHEREAS, Sister Mary Janice Belen has consistently demonstrated her capacity to deal
creatively with ideas and possibilities. Her professionalism and insightful initiatives coupled with
her great spiritual and physical energy have provided both leadership and direction in an endeavor
to benefit others in this community; and
WHEREAS, It is also with great respect and admiration that the members of this Board join with
the employees of this utility and other well-wishers in paying tribute to Sister Mary Janice Belen
on her fifty-year Jubilee Celebration on August 14, 1994, as a member of the religious order of the
Sisters of Mercy, and
WHEREAS, Her keen and basic interest in people, in particular those who are in the greatest
need, has brought strength throughout her long service on the Board. We are confident that the
many contributions of Sister Mary Janice Belen to this Board will long continue to benefit the
entire community.
NOW THEREFORE, BE IT RESOLVED, The Board of Commissioners, in regular session
this 26th day of July, 1994, hereby commends and congratulates SISTER MARY JANICE
BELEN, R.S.M., for her 19.25 years of outstanding service and dedication to the Board of Water
and Light and the people of the Greater Lansing area.
63 Board Meeting Minutes
June 28. 1994
BY COMMISSIONER STROLLE--
SECONDEDD BY COMMISSIONER O'LEARY
That the resolution be approved as read.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy reported on the following items of interest:
BWL Receives Safety Award. The BWL took second place in the 1993 Public Utility Safety and
Health Contest sponsored by the National Safety Council. Our utility was grouped with combined
gas and electric utilities nationwide of similar size. The award is based on the fewest number of
chargeable accidents per work-hours of exposure. The employees were congratulated by General
Manager Pandy and the Commissioners.
Consumers Power Company Files Petition For a New Rate K. Consumers Power Company
(CPCo) has filed a petition with the Michigan Public Service Commission for approval of a new
competitive Rate K. The rate proposal would permit CPCo to unfairly compete against
municipally owned utilities and other investor-owned utilities in the State of Michigan. They
would be allowed to negotiate special rates for large customers with an electric demand of 3,000
Kilowatts or larger. In order to qualify, the customer needs only to be large and must show it can
get electricity for less than CPCo's published rates. A copy of a resolution opposing CPCo's Rate
K adopted by the City Council on July 25, 1994 was handed out for information. General
Manager Pandy noted that a state statute passed in the 1970's, allows the investor-owned utility to
serve municipal customers, but not the reverse. Discussion followed regarding options available to
public power utilities.
Update on City Matters. BWL staff members are covering City Council's weekly Committee of
the Whole meetings on a rotation basis for better coordination of City/BWL activities. Items of
interest discussed at the July 21 meeting include: (1) The Ways and Means Committee reported
that they have requested an opinion from the City Attorney as to who is the owner of Board of
Water and Light property. No further action is planned on resolving who receives the funds from
the sale of any property until an opinion is rendered. (2) The Economic Development Committee
reported on their meeting with several local bankers relative to local banking relationships.
Board Meeting Minutes 64
June 28. 1994
Fiber Optics Plans. General Manager Pandy was recently asked by the City Council to give a
status presentation on the BWL's five-year fiber optics plan. He reported to the Council that the
first phase of the plan is to go from the BWL Main Office Building out to the System Operating
Center (BESOC), then on to the Enterprise Substation. Funds for the first phase have been
included in this fiscal year's budget. Mr. Pandy noted that there appears to be different viewpoints
among the Councilmembers as to who should provide fiber optic service in the community. He
told them that the BWL is not proposing to serve the City at large, since Continental Cablevision
has already wired the City with fiber for cable television services, and Ameritech and other phone
companies are positioning to compete in that arena. Mr. Pandy added that the BWL is addressing
its own communication needs because it makes economic sense
Water Regionalization Update. General Manager Pandy reported that he is continuing to
communicate with the City regarding the proposed Mid-Michigan Water Authority. As the Mid-
Michigan Water Authority implementation timeline draws closer, the BWL continues to be
committed to attempt to resolve as many of the concerns of the City Council and City Attorney as
possible. A couple of meetings have been held with Councilmember Paul Novak to respond to
questions and concerns regarding the BWL's intent to join a regional water authority. Mr. Pandy
briefed the Commissioners on his discussion with the City. His presentation included the following
information:
I. Estimated benefit to BWL customers from wholesale water sales
II. Estimated BWL retail residential rate per ccf in 2004
III. Estimated monthly bills for Lansing and Delta Township for residential
customers using 8 ccf
IV. BWL fixed and variable cost versus wholesale water rate charged to
other utilities
The Board engaged in discussion regarding aspects of the BWL's relationship with the proposed
Mid-Michigan Water Authority (N4MWA). A question and answer period followed relative to
required standards for regional system distribution. Mr. Pandy told the Commissioners that he and
staff will continue to stay in contact with the City Council to hopefully satisfy their concerns and
encourage them to take positive action.
Tentative Agreement Reached with CSX Transportation. Negotiations have been completed
on a five-year CSX railroad contract pending Board approval. In addition to rate savings for our
customers, via the energy adjustment clause, other benefits to be derived from this agreement
include:
■ Reduction in initial rail rate
■ Future cost containment issues
■ Flexibility for coal movement
65 Board Meeting Minutes
June 28. 1994
A Letter of Intent and Understanding will be submitted to the Board for actioin at the regular
meeting on August 23.
General Manager Pandy congratulated Assistant General Manager Roy Peffley, Joe Wolfe, Fuels
Procurement & Testing staff Brian McLeod and Ron Ishimoto who worked for many months to
reach this tentative agreement.
BWL Workforce Reduction Program Status. Approximately 96 employees will be leaving the
BWL on September 1, 1994. General Manager Pandy reported that the results of the early
retirement program went above expectations. Staffing levels at the BWL will reach a target of 800
employees within the next six months to a year, which puts the organization ahead of its goal of
792 employees by 1999. A certain number of employees will need to be replaced due to occupied
and vacant positions considered critical for the BWL's operations. Mr. Pandy congratulated
Human Resources Director Mark Vander Jagt and his staff for a well designed voluntary early
retirement program. A combined retirement dinner party to recognize the retiring employees is
scheduled for August 29, 1994. The dinner will be held at the Holiday Inn South, and tickets are
$18.00 per person.
REMARKS BY BOARD COMMISSIONERS
Chairman Hassler announced appointments to the Board's standing committees:
Executive Committee
Hassler*, Evans, Williams
Finance Committee
Christian*, Hassler, Lontz, Williams
Alternates: O'Leary, Strolle
Personnel Committee
Strolle*, Evans, O'Leary, Sebolt
Alternates: Lontz, Williams
* First named is the Chair
Board Meeting Minutes 66
June 28. 1994
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT
SECONDED BY COMMISSIONER CHRJSTIAN
That the absences of Commissioners Evans and Strolle be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Lontz, the Board adjourned at 6:20 p.m.
. AC141kt�
Mary E. va, Secretary
Filed: August 3, 1994
Marilynn Slade, City Clerk
- 56
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, June 28, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building, 123
West Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman Hassler.
Present: Commissioners Belen, Christian, Evans (arrived at 6:00 p.m.), Hassler, O'Leary,
Sebolt, Strolle,and Williams -8
Absent: None
The Secretary declared a quorum present.
The Invocation was delivered 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 24, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE
AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING
ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION
BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER
NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO
ADJOURNMENT.
No persons spoke.
57 Board Meeting Minutes
June 28, 1994
SPECIAL RECOGNITION FOR
SISTER MARY JANICE BELEN, R.S.M.
On behalf of the Board and BAIL employees, Commissioner Hassler expressed gratitude to
outgoing Commissioner Sister Mary Janice Belen for serving on the Board with dedication and
distinction for over 19 years since her appointment on March 24, 1975. A standing ovation was
given by those present.
PERSONNEL COMMITTEE REPORT
The Personnel Committee met on May 19, 1994, to review and discuss the following matters:
1. Pension Fund Investments
2. Non-Bargaining Unit Wage and Salary Plan for Fiscal 1995
Present were Personnel Committee Members Sebolt (Chair) and Strolle. Also present was
Commissioner Hassler. Absent were Committee Members Evans and O'Leary.
Pension Plan Investment Review
Treasurer/Controller Tousley gave a summary presentation of the Pension Fund investments for
the quarterly period covering January 1 through March 31, 1994. The Committee's
recommendations were submitted to the Pension Fund Trustees for action.
Non-Bargaining Unit Wage and Salary Plan for Fiscal 1994-95
The recommended changes in compensation for the Non-Bargaining Unit employees for Fiscal
Year 1994-95 were presented by Steve Pollo, Employment and Compensation Administrator. The
recommendations were made after (1) conducting an external market survey, (2) analyzing Cost of
Living trends, (3) comparing Non-Bargaining and Bargaining Unit salaries within the Board of
Water and Light (BWL), (4) considering the BWL's ability to pay, and (5) receiving input from the
Non-Bargaining Unit Compensation Committee.
The Personnel Committee submits the following resolution and recommends Board approval:
Board Meeting Minutes 58
June 28, 1994
Non-Bargaining Unit Wage and Salary Recommendation
(Resolution 94-6-1)
RESOLVED, That effective July 1, 1994:
A. WAGES AND SALARIES -- FULL TIME EMPLOYEES
1. All current Non-Bargaining Unit salary ranges be increased
3.2% for Fiscal Year 1995;
2. all current Clerical-Technical (CT) employees in full-time
positions receive a 3.2% General Increase, and that their
performance increases be administered according to existing
policy;
3. the matrix for non-CT's be established to reflect half step
increments for performance increases; and
4. the vector for the matrix be set at 3.2% for First-Line
Supervisors, Professionals, and Middle Management payroll
categories; and 2.5% for the Administrative payroll category.
The purpose of the dual matrix is to encourage and motivate
others in the organization to be more cost conscious.
B. WAGES AND SALARIES -- PART-TIME EMPLOYEES
1. That part-time employees receive a 3.2% 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 Personnel Committee Report, including Resolution 94-6-1 (Non-
Bargaining Unit Wage and Salary Plan for Fiscal 1994-95), be adopted as
presented.
Adopted unanimously.
59 Board Meeting Minutes
June 28, 1994
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-6-2
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.
July 26 - Tuesday
August 23 - Tuesday
September 27 - Tuesday
October 25 - Tuesday
November 22 - Tuesday
December 27 - 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 July 11, 1994.
--------------------
Res. No. 94-6-3
That Resolution 91-2-2, entitled "Appointment to the Michigan Municipal Electric
Association", be amended as follows:
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
DIRECTOR OF ELECTRIC TRANSMISSION&
DISTRIBUTION is hereby appointed to be the alternate
representative in the absence of the primary representative.
--------------------
Board Meeting Minutes 60
June 28, 1994
Res. No. 94-6-4
RESOLVED, that in the absence of the General Manager, the below listed
Directors, in the sequence in which they are listed, or as otherwise designated by
the General Manager, shall be in charge of all Board operations:
1. Director, Technical Services
2. Director, Water Utility
3. Director, Steam Utility
4. Treasurer/Controller
--------------------
This supersedes Resolution 90-10-2 adopted by the Board on October 23, 1990.
--------------------
Res. No. 94-6-5
RESOLVED, that not less than two (2) of the following officers be required to sign
checks for the general checking account at First of America Bank and the
payroll/pension checking account at Michigan National Bank drawn on and after
June 28, 1994:
1. Director and General Manager
2. Treasurer/Controller
3. Director of Technical Services
4. Corporate Secretary
--------------------
This supersedes Resolution 90-8-8 adopted by the Board on August 28, 1990.
--------------------
Res. No. 94-6-6
RESOLVED, that the General Manager and Corporate Secretary are hereby
authorized to execute, on behalf of the Board of Water and Light in the general
conduct of its business, all agreements, contracts, deeds, leases, easements, permits
and other contractual documents pertinent to its operation, which have been
approved either by action of this Board or pursuant to policy established by this
Board; and
FURTHER RESOLVED, that in the absence of the General Manager or Corporate
Secretary, the Director of Technical Services and the Assistant Secretary,
respectively, are authorized to execute the described documents.
--------------------
61 Board Meeting Minutes
June 28, 1994
This supersedes Resolution 85-3-5 adopted by the Board on April 23, 1985.
--------------------
Res. No. 94-6-7
RESOLVED, that Resolution No. 82-2, as amended, entitled "BWL Authority to
Become a Member of the Michigan Public Power Agency (MPPA) and to
Participate with the MPPA Members in the Belle River Project", be revised by
amending item "5" of the sixth paragraph as follows:
5. That Joseph D. Wolfe, a contract employee of the BWL is hereby appointed to
be the Lansing Board of Water and Light's representative on the MPPA's Board of
Commissioners, and that Rey Pe ey, Assistant General Manager- and Eleetr-ie
Utility Direete JOSEPH PANDY, JR., is hereby appointed to be its alternate
representative.
--------------------
This supersedes Resolution 84-5, adopted on December 18, 1984, and Resolution
93-11-2, adopted on November 23, 1993.
--------------------
Res. No. 94-6-8
That Resolution 93-8-7, entitled "Designated Representatives for Eckert and
Erickson Stations Under the Acid Rain Program", be amended as follows:
WHEREAS, under the Acid Rain Program (at 40 CRF Subpart B), the owners and
operators for each affected source must designate a representative, and may
designate an alternate, to act on their behalf, and
WHEREAS, the Board of Water and Light (BWL) Eckert Station and Erickson
Station are affected sources under the Acid Rain Program;
NOW, THEREFORE, BE IT RESOLVED that the Board of Commissioners
appoint John Elashkar, Director of Technical Services, the designated
representative, and v Peffley, DirersteF of Eleet"" T T=lit—', JACK HILL,
DIRECTOR OF ELECTRIC PRODUCTION, the alternate designated
representative for Eckert and Erickson Stations under the Acid Rain Program.
--------------------
Board Meeting Minutes 62
June 28. 1994
Res. No. 94-6-9
Approve the recommendation for Performance Measures for the FY 1994/95 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 1994/95.
--------------------
If all goals are reached, BWL will realize financial impact of$3,295,864 based on
the nine financial impact measures. The employees will earn up to 500 points on a
5.0% STS bonus equal to $1,750,000 with the net financial impact to BWL being
$1,545,864. The other measures have a financial impact which is not quantifiable.
(See attached report from Employees' Performance Measures Committee dated
June 16, 1994).
--------------------
Res. No. 94-6-10
It is recommended that:
I. The Flexible Spending Account (FSA)be continued and that contract with
the Travelers Plan Administrators of Illinois, Inc. (TPA), for administration
of FSA be continued.
II. The following Share the Success (STS) Bonus Options are recommended
for FY 1994/95:
1. Deferred Cash No change.
2. Purchase of Vacation * Policy changes.
3. Purchase of Free Choice * Policy changes.
4. I.C.M.A. No change.
5. FSA (Flexible Spending Account) No change.
6. Vision Plan (BCBS) New RXoptical
no cost employee
discount vision
program.
7. Cancer Care, Intensive Care, AFLAC plan Add change.
8. Charitable Contributions ** No change.
9. Long Term Disability Program ** Replace w/Group Plan
(90-day waiting period,
50%of salary,
$3,000/month max.
w/standard offsets)w/
employee "buy up" option
to 60%of salary and
$5,000/month max.
(continues)
63 Board Meeting Minutes
June 28, 1994
* The purchase of vacation and free choice days will be limited to ten (10)total days
which includes no more than two (2) free choice days. In addition, new scheduling
rules are affective for FY 94/95 plan year.
** This year's contributions will be split equally between two(2) charities: Moores
Living Center and Shared Pregnancy Crisis Center.
*** Long Term Disability award pending(post June 30, 1994)due to expected rate
changes resulting from Voluntary Retirement Program.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER CHRISTIAN
That Resolutions 94-6-2 through 94-6-10, respectively, be approved as presented..
Commissioner Hassler commented on Resolution No. 94-6-9 relative to Fiscal 1994/95 Share the
Success Performance Measures. He expressed his disappointment on the Electric Reliability goal.
He pointed out that the goal increased from 3.25 average outage minutes per customer per month
to 3.50 which approximates the 3.49 average for the past six fiscal years. Commissioner Hassler
said that "average" for the past six years is no longer good enough, particularly with retail
wheeling increasing the competitive nature of the electric utility industry. The same concern
applies to the Water and Steam Reliability Measures.
The Bonus Measure for Employee Attendance also needs to be reviewed. Commissioner Hassler
quoted the statement in the report that "the Employee Attendance Measure has had little or no
impact on employee attendance as there has been no reduction in sick time..." He commented on
the need to develop programs to improve the attendance measure so that everyone carries their fair
share.
Commissioner Hassler suggested that management take a hard look at these measures and report
back to the Board on what can be done to improve the goals.
Adopted unanimously.
LEGAL
Res. No. 94-6-11
WHEREAS, pursuant to Resolution 92-4-13, the Board of Commissioners
authorized the General Manager to retain certain law firms for a two year period
ending April 28, 1994, subject to the recommendation of the City Attorney and
approval of Lansing City Council; and
WHEREAS, Lansing City Council, pursuant to the recommendation of the City
Attorney, authorized certain law firms to provide professional legal services to the
City of Lansing and the Board of Water and Light for a two (2) year period ending
September 8,1994; and
Board Meeting Minutes 64
June 28, 1994
WHEREAS, the Staff Attorney is currently seeking Request for Proposals (RFPs)
to provide professional legal services to the Board of Water and Light.
NOW, THEREFORE, Be It Resolved, that the Staff Attorney is authorized to pay
for legal fees incurred from the period of April 28, 1994 to the date of this
resolution and that the use of law firms for this period is hereby confirmed and
ratified.
FURTHER, that the General Manager's authority to retain the law firms listed in
Resolution 92-4-13 be extended until September 8, 1994.
--------------------
The BWL has incurred approximately $167,720.05 in legal fees year-to-date for
this fiscal year. The BWL has not been billed but may have incurred legal fees from
the period of April 28, 1994 to the present. Proposals will be due July 15, 1994.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-6-1 l be approved as presented.
Adopted unanimously.
PENSION
Res. No. 94-6-12
That Ernest R. Fedewa be placed on an early reduced, vested Pension of$131.26
per month effective December 1, 1994. He has selected Option IV with the
provision that after his death, if his wife, Barbara J. Fedewa, survives him she will
receive 100% ($131.26), as provided under Option IV. If his wife predeceases
him, the pension amount of$131.26 will revert back to the regular pension amount
of$156.42 for the rest of his live.
--------------------
Mr. Fedewa was employed with the BWL from June 5, 1957 to January 9, 1973,
for a net total of 15.59 years. He will be 56 years of age at the time of his vested
retirement.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-6-12 be approved as presented.
Adopted unanimously.
65 Board Meeting Minutes
June 28, 1994
TREASURER/CONTROLLER
Res. No. 94-6-13
That the Board pay $5,670,665 to the City of Lansing pursuant to our agreement
dated June 30, 1992.
Further, that all Receiving Fund cash and investments remaining following the
above payment be transferred effective June 30, 1994 to the Special Project Fund
for future capital projects.
--------------------
A memo of 6/13/94 is enclosed which shows the calculation for return on equity.
--------------------
Res. No. 94-6-14
That the attached Economic Development Rider, which was the subject of a public
hearing on May 10, 1994, be adopted and made effective June 28, 1994 for a
period of five (5) years to June 28, 1999.
--------------------
This renews the existing rider for Rate 4 and Rate 5.
--------------------
Res. No. 94-6-15
RESOLVED, that Resolution No. 89-8-13, entitled "Authority to Invest Operating
Funds", be amended as follows:
That the General Manager and/or one of the following designated representatives in
the sequence listed below, be authorized to invest operating funds in such securities
as permitted by law and to purchase, sell, assign and endorse for transfer,
certificates representing said securities and invested in the name of the Board of
Water and Light.
1. Treasurer/Controller
2 Assistant r, of l Manage
3-2. Manager, General Accounting
The Revenue Bond Act of 1933 (PA 94 of 1933, MSA 5.2731), as amended,
Lansing Ordinance 18A, 18B and 26A, and BWL Resolution 80-3, govern and
restrict the investment of BWL operating funds.
--------------------
Board Meeting Minutes 66
June 28. 1994
Res. No. 94-6-16
RESOLVED, that Resolution No. 90-4-1, entitled "Delegation of Asset Manager
Authority for Pension Assets", be rescinded. This resolution is being properly
taken to the Pension Fund Trustees for action.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That Resolutions 94-6-13 through 94-6-16, respectively, be approved as presented.
Adopted unanimously.
WATER
Res. No. 94-6-17
That the Board agree to serve water to proposed Water District No. 100, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on June
7, 1994, 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:
l. The Board will accept Water District No. 100 established by Township
resolution on June 7, 1994, and will provide a potable water supply to
said district.
2. The Township will be required to make a $26,912 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 C) covering the furnishing of a potable water supply in
Water District No. 100.
4. Water mains are to be installed in accordance with the current Board's
Policies and Procedures for Water Service.
Further, that upon receipt of the sum of$26,912 from the Township, the project be
approved for installation, and the General Manager and the Corporate Secretary be
authorized to sign the aforementioned agreement (Supplement C) to furnish a
potable water supply in Water District No. 100.
67 Board Meeting Minutes
June 28, 1994
The geographical area of Water District No. 100 is as follows:
Moorwood Farms No. 2 Subdivision - Lots 32 thru 53
To provide a potable water supply within the proposed new district requires the
installation of 1,160 feet of water main and fire hydrant at an estimated cost of
$26,912.
The main extension will serve twenty-two (22) residential customers now under
construction. One-time connection fees will amount to $14,784. Estimated annual
revenue is $7,480.
Water mains to be installed in Summer of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing of
the agreement.
--------------------
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER STROLLE
That Resolution 94-6-17 be approved as presented.
Adopted unanimously.
NEW BUSINESS
CUSTOMER ATTITUDE SURVEY RESULTS
Andrew Morrison of Market Strategies presented an executive summary on the results of the latest
customer attitude survey. Overall favorability and customer loyalty remained unchanged and near
the top of the list of utilities surveyed by Market Strategies. Improvements in restoring power and
environmental responsibility was noted. More than half of the BWL's customers supported the
recent decision to close the light bulb center. Mr. Morrison noted, however, that overall
satisfaction among electric customers decreased six points from the survey taken in December,
1993. The BWL was also perceived as less believable and less concerned about customers. Less
than normal marks were also received for communicating with customers.
Board Meeting Minutes 68
June 28, 1994
GENERAL MANAGER'S REMARKS
Assistant General Manager Roy Peffley reported on the following items of interest:
Sparrow Hospital Expansion Venture Update. A copy of a letter, dated June 22, 1994, from
General Manager Pandy to Sparrow Hospital's Director of Engineering was handed out for
information. The BWL has extended an offer to provide both electric and steam services to
Sparrow Hospital's proposed ambulatory care center and medical office building. Ground breaking
for this proposed facility is anticipated in the spring of 1995.
Electric Utility Sets New Peak. A copy of an electric production analysis for the months of April
and May, 1994, was handed out. Mr. Peffley noted that an improved economy and seasonably hot
weather contributed to the increased electric generation. A new all time peak of 461 MW was set
on June 16, exceeding a previous peak set in 1990 by approximately 20 MW. Mr. Peffley
reported that there were no voltage complaints received during the peak period. Export sales to
Consumers Power Company and the Wolverine Power Supply Cooperative were also very good
during this peak period. The Share the Success Program was credited for providing management
with direction and a basis for measuring how well the system is being maintained.
CSX Negotiation Update. Management is continuing negotiations with CSX Railroad for
reduced transportation rates to enhance the BWL's competitive market for the Electric Utility.
Discussions are progressing in a positive fashion, and it is hoped a settlement will be reached
sometime in July for Board ratification at the regular meeting in August.
REMARKS BY BOARD COMMISSIONERS
Commissioner Belen reacted to comments made earlier in the meeting regarding Sparrow
Hospital's future electric and thermal energy needs. She urged staff to communicate early with
Sparrow Hospital's Board. Discussion was held on the importance of joint support and
cooperation between Sparrow Hospital and the City.
Commissioner Hassler commented on the June 2, 1994, issue of STRAIGHT TALK which
discusses the concept of retail wheeling. Customers would have the flexibility to shop around for
the best utility rate, rather than being tied to electric service from their local utility. Some utilities
in Michigan have restructured their electric rates favoring large and midsize power users.
According to an article in the June 1994 issue of CURRENT, a Michigan Municipal Electric
Association publication, the Grand Haven Board of Light and Power has approved revised electric
rates to reflect current practices and revised allocation of utility costs. Consumers Power
Company (CPCo) has indicated their rates will increase by 50 percent in the next ten years. Last
month, CPCo increased residential rates by 5.4%, commercial by 2% and industry less than 1
percent (.8%). CPCo is preparing for intense competition and is looking to gain large users.
Commissioner Hassler emphasized that retail wheeling will be challenging utility companies all
69 Board Meeting Minutes
June 28. 1994
over the country forcing them to maintain low rates to support the business structure in their
communities. Commissioner Hassler again reminded that performance measures previously
enjoyed by the BWL will no longer be good enough.
Commissioner Williams asked if it would be possible to look at what the effective rates on
residential customers would be with the loss of different types of customers.
Treasurer/Controller Tousley responded that a contingency plan was developed a couple of years
ago at the request of the General Manager. Management examined the rate effects if 10-25
percent of the electric load were lost.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 6:20 p.m.
Mary E. So , Secretary
Filed: June 30, 1994
Marilynn Slade, City Clerk
Board of Water and Light, Lan i::•J, Michigan 2nd Revised Sheet No. EB25
ECONOMIC DEVELOPMENT RIDER
Purpose-The primary purpose of this rider is to enhance economic development in the Board of Water and Light(BWL)
service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a major factor
for the customer locating or expanding its operations and when the rider will result in a net benefit to the BWL and its
customers.
Availahility- This rider is available to industrial customers on Large General Service Rate No.4 or Primary Service
Rate No. 5 .
For purposes of this rider,an industrial customer is defined as any business whieh 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 June 28, 1999. 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 June 28. 1994 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 June 28. 1994.
Monthly Rate
Capacity Charge: A percentage of the capacity charge included in the principal service rate,less credits,as
follows:
Contract
Year %
1 50%
2 60%
3 70%
4 80%
5 90%
Contracted Historical BillinL 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: June :994 ffecr_ive: June 20 ,god
Board of Water and Light, Lansing, Michigan 'nd Revised Sheet No. EB26
ECONOMIC DEVELOPMENT RIDER
Billing Demand-For a new customer,the entire billing demand shall be subject to the capacity charge in this rider and
shall never be less than 100 kW and shall not be subject to the 60% provision.
For an existing customer,or a new customer with an established contracted historical billing demand,the contracted
historical billing demand shall be billed at the capacity charge in the customers principal service rate. Only the billing
demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not
be subject to the 60%provision.
Minimum Charge- A new customer shall have a minimum billing demand of 100 kW.-A customer with an established
contracted historical billing demand,shall have a minimum billing demand equal to 60% of the contracted historical
billing demand.
adopted: -.ne 1994 Effective: June 28 1994
49
05-27-94 PO4 :32 It'll
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, May 24, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office
Building, 123 West 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.
The Invocation was delivered by Chairman Hassler.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER BELEN
That minutes of regular session of April 26, 1994, 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 Street, Lansing, stated that he is not in favor of the proposed
Economic Development Rider for electric service. Mr. Teets stated that he does not see
where the customers receiving the existing Economic Development Rider would have
located outside of the Board of Water and Light service area had the rider not been
available. He stated that further study on the benefits of this rider is needed.
Board Meeting Minutes Page 50
May 24, 1994
COMMUNICATIONS AND PETITIONS
None
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on May 10, 1994, to discuss the following items:
1. Proposed Fiscal Year 1995 Budget Review
2. Customer Attitude Survey
3. Other related items
Present were Commissioners Belen, Christian, Evans, Hassler, O'Leary, Sebolt,
Strolle, and Williams.
Proposed Fiscal Year 1995 Budget. General Manager Pandy reported that
intensified efforts have been taken to control all costs, in line with an earlier strategic
planning report recommending that controllable operating costs be held to 75 percent of
the inflation rate. Treasurer\Controller Dana Tousley presented the proposed Fiscal 1995
Budget, which is 3 percent higher than the Fiscal 1994 budget. A total budget variance
analysis was presented. Mr. Tousley noted that the BWL's early retirement plan is
anticipated by a $2.3 million credit for labor. The credit, however, is reduced by increased
costs in the first year for benefit and sick leave payoffs estimated at $2 million and the
expected hiring of 25 employees at $700,000 to replace critical positions.
Proposed capital expenditures for Fiscal 1995 increased by 6.1 percent. The expenditures
projected allow for some slippage in actual cash flow due to project delays. Cash flow
and the remainder of the 1994 bond proceeds will finance these projects.
Mr. Tousley presented a preliminary ten-year forecast for the three utility services. A full
report will be forthcoming at a future Committee of the Whole meeting.
The Committee of the Whole submits the following resolution and recommends Board
approval:
Fiscal Year 1995 Budget
(Resolution 94-5-1)
RESOLVED, That the annual budget covering Fiscal Year 1995 be
approved as presented (see Attachment A).
51 Board Meeting Minutes
May 24, 1994
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 Year 1995 are limited to the amount
included in the budget.
--------------
Customer Attitude Survey. Justification for conducting frequent customer attitude
surveys was presented by Communications and Marketing Director John Strickler. The
survey is used to determine the perception of residential customers toward the Board of
Water and Light and its services. It is also used to measure the performance of certain
communications programs and customer satisfaction for the Share the Success program.
The survey is administered twice annually for approximately the same cost as the former
annual survey, by shortening the questionnaire and interviewing fewer customers.
The Committee of the Whole submits the following resolution and recommends Board
approval:
Customer Attitude Survey
(Resolution 94-5-2)
RESOLVED, That Market Strategies, Inc., be authorized to conduct a
semi-annual customer attitude survey at a price not to exceed $18,000.
Proposed Lansing City Enterprise Community Rebate. General Manager Pandy
discussed a rate incentive proposal for new or restarted residential, commercial, or
industrial utility services in the Lansing City Enterprise Community designed to stimulate
growth. A map outlining the geographic area of the Lansing City Enterprise Community
was displayed. Before Board action can be taken on this rebate proposal, a public hearing
is required for citizen input.
The Commissioners concurred with the Lansing City Enterprise Community Rebate
proposal and agreed to proceed with filing requirements, subject to discussion with the
City Council at the May 26, 1994,joint meeting.
The Committee of the Whole submits the following resolution and recommends Board
approval:
Lansing City Enterprise Community Rebate
(Resolution 94-5-3)
RESOLVED, That the date for a public hearing to solicit public input on
the proposed Lansing City Enterprise Community Rebate be set for
Tuesday, July 26, 1994. This date could mean an August 24, 1994,
effective date for the proposed changes.
Board Meeting Minutes Page 52
May 24, 1994
FURTHER RESOLVED, That staff be directed to file the proposed rate
changes (Attachment B) and the public hearing date with the City Clerk as
required by the Lansing City Charter no later than Friday, May 27, 1994.
Respectfully submitted,
Gerald W. Williams, Chair Pro Tern
Committee of the Whole
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER CHRISTIAN
That the Committee of the Whole Report, including Resolution Nos.
94-5-1 (Fiscal Year 1994-95 Budget), 94-5-2 (Customer Attitude Survey),
and 94-5-3 (Setting Public Hearing for Lansing City Enterprise
Community Rebate) be adopted as presented.
Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
HUMAN RESOURCES
Res. No. 94-5-4
That Roger Hall, an Operator B-Water Treatment for Eckert Station, be
awarded a total of$324.00 for suggestion number 1994-078, to move air
bag pressure gauges from hydrobin house to operator shack to improve
operator monitoring and save cost of bladders.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$2,500 in the first year.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-5-4. be approved as presented.
Adopted unanimously.
53 Board Meeting Minutes
May 24, 1994
TREASURER/CONTROLLER
Res. No. 94-5-5
Purchases, Annual Commodity
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, 1995 except for caustic soda which is subject to quarterly price revisions.
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. Following is a summary of
the lowest and best evaluated bids.
Annual Annual
Quantity Cost
Commodity (Est). Unit Cost (Est.) Vendor
Hydrofluosilicic Acid 160 tons $149.50/ton $ 23,920.00 PVS Nol/Wood
Chemicals,Inc.
Pebble Quicklime 11,000 tons $54.95/ton 604,450.00 Marblehead Lime
Co.
Soda Ash 1,600 tons $131.47/ton 210,352.00 Rhone-Poulenc Basic
Chemicals Co.
Granulated Salt 320 tons 68.25/ton 21,840.00 Akzo Salt,Inc.
Sulfuric Acid 528 tons 54.00/ton 28,512.00 Marsulex, Inc.
Caustic Soda 145.6 tons 268.00/ton 39,020.80 Old World
Industries,Inc.
Liquid Chlorine 97 tons 440.00/ton 42,680.00 Carrier-Stephens Co.
Sodium Haviland Products
Hexametaphosphate 36,000 lbs. .5865/lb. 21,114.00 Co.
Total: $991,888.80
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER CMUSTIAN
That Resolution 94-5-5 be approved as presented.
Adopted unanimously.
Board Meeting Minutes Page 54
May 24, 1994
GENERAL MANAGER'S REMARKS
Adopt-A-River Program A Success. The first of a series of river clean ups was
successfully completed on Saturday, May 21. Credited for their efforts in publicizing and
encouraging citizen participation in the Adopt-A-River Program were Communications
Director John Strickler and Government Affairs Administrator Terry Tisdale who
organized most of that event.
Consumers Power General Rate Case. A summary of the Consumers Power General
Rate Case involving an order for the approval of $57.6 million rate increase for
Consumers Power Company (CPCo) was handed out for reference. The rate was
recently approved by the Michigan Public Service Commission. The point of the summary
is that most of the burden of the rate increase was put on residential customers with
increases ranging from 5.4% to 5.9%. The commercial class received a 2% increase,
while Industrial received a.82% increase. Mr. Pandy stated that this clearly indicates
CPCo's strategy is to load their rate increases onto the residential class and try to attract
industry.
Cities Compete for Federal Grants. A copy of an article from USA TODAY, dated
May 23, 1994, regarding federal empowerment grants was handed out for information.
The article discusses competition among cities for federal grants available for innovative
redevelopment. The grants are to be used to stimulate economic development, creating
jobs, improving infrastructure, and other related revitalization approaches. Approximately
500 cities are expected to apply fpr the 65 - $3 million federal grants available for urban
enterprise communities. In keeping with the proposed Lansing City Enterprise
Community Rebate, companies that would develop within the Lansing City Enterprise
Community (zone) would be entitled to a 10% utility service rebate the first year.
Executive Order Prohibiting Discrimination. A copy of an Executive Order
prohibiting discrimination because of sexual orientation or gender preference issued by
Mayor David Hollister, May 18, 1994, was handed out for information. This order has
been directed to all officers, employees, agencies, boards, authorities and departments of
the City of Lansing. Mr. Pandy noted that the BWL is already in compliance with the
Order. Language with respect to sexual orientation is consistent with language included in
the BWL's new IBEW Local 352 labor contract.
Joint Meeting Between the City and the BWL. A copy of an agenda prepared by the
City Council for a joint meeting between the Councilmembers and the Commissioners was
handed out. The meeting is scheduled for May 26, 1994, and is being hosted by the City
Council. Agenda items include: (1) BWL appointments, (2) City Council/BWL
relationship, (3) Sale of BWL Pennsylvania Avenue property and proceeds,
(4) Water regionalization, and (5) Economic Development Rider for Lansing City
Enterprise Community.
55 Board Meeting Minutes
May 24, 1994
Commissioners' Service Record. Mr. Pandy presented a historical overview of past
Commissioners' service continuity record as a point of information. During the BWL's
109 year history, 105 Commissioners have served on the Board, with 23 of them serving
for ten or more years, and 63 serving for more than one term.
BWL Reorganization Chart Refined. A copy of a newly refined BWL organizational
chart dated May 1994 was handed out for reference. The updated chart more specifically
identifies department manager categories by name. Another update is expected shortly
once three manager positions within the Water Utility Division are filled. Changes with
respect to dual reporting structures included the Fuels Procurement and Testing Manager
and the Personnel Manager. Mr. Pandy noted that Brian McLeod, Manager of Fuels
Procurement and Testing, will be reporting to him on major decisions such as long-term
coal contracts and long-term railroad contracts. Mr. McLeod will also be reporting to
Electric Production Director Jack Hill on all other matters relating to day-to-day fuel
procurement, scheduling trainloads, and scheduling for various mines. This reporting
relationship is similar to that used when Joseph Wolfe was the Assistant General Manager
until his recent retirement in January 1994. Mr. Pandy also advised that Personnel
Manager Linda Gardner will be reporting to him on EEO and affirmative action matters,
while continuing to report to Human Resources Director Mark Vander Jagt on all other
activities.
REMARKS BY BOARD COMMISSIONERS
Nominating Committee Appointments. Chairman Hassler appointed the following
Commissioners to serve on the Nominating Committee to select new Board officers:
Commissioners Strolle (Chair), O'Leary, Belen and Evans. The Nominating Committee is
to submit their recommendation to the Board at the annual organizational meeting in July.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 6:03 p.m.
4v4lj
May E. S a, Secretary
Filed: May 27, 1994
Marilynn Slade, City Clerk
ATTACHMENT A
BOARD OF WATER AND LIGHT-LANSING MICHIGAN
BUDGET FISCAL YEAR ENDING JUNE 30, 1995
WATER ELECTRIC STEAM TOTAL
1 PROJECTED INCOME STATEMENT FY 95
2
3 OPERATING REVENUE [1] 13,868,261 132,534,000 10,107,187 156,509,448
4
5 Operation/Maint Expense 11,512,629 113,628,405 9,210,351 134,351,385
6 Depreciation Expense 15,273,000
7 ----------
8 TOTAL OPERATING EXPENSE 149,624,385
9 ----------
10 OPERATING INCOME 6,885,063
11 Other Income [2] 3,410,500
12 Other Expense [3] 2,107,190
13 ----------
14 NET INCOME 8,188,373
15
16 NET INCOME AFTER CITY PAYMENT 2,343,373
17 RATE OF RETURN-3/94 RATE BASE 0.9%
18
19 PROJECTED CASH FLOW FY 95
20
21 Restricted Operating Cash 21,652,000
22 Restricted General Cash 11,375,309
23 Special Project/Const Cash 32,331,907
24 ----------
25 BEGINNING CASH 7-1-94 [4] 65,359,216
26
27 Sources of Cash
28 Net Income 8,188,373
29 Depreciation 15,273,000
30 ----------
31 TOTAL SOURCES OF CASH 23,461,373
32 ----------
33 SOURCES OF CASH + BEG. CASH 88,820,589
34
35 Uses of Cash
36 Debt Principal & Reserve [5] 2,106,500
37 Capital Expenditures [6] 38,332,000
38 Payment to City 5,845,000
39 ----------
40 TOTAL USES OF CASH 46,283,500
41
42 Restricted Operating Cash 11,195,904
43 Restricted General Cash 11,830,321
44 Special Project/Const Cash 19,510,864
45 ----------
46 ENDING CASH 6-30-95 42,537,089
1
BOARD OF WATER AND LIGHT — BUDGET FOOTNOTES
FISCAL YEAR ENDING JUNE 30, 1995
[1] Revenue based on sales forecast for water (8,155,979 CCF), Electric
(2,401,625 MWH) and Steam (1,484,755 MLB). These sales levels are 3.8%
higher, 0.3% higher, and 3.8% higher respectively than the twelve month period
ended December 1993. Water revenue includes a 8.5% rate increase 1/1/94 and
a 7.6% rate increase 1/1/95. Electric revenue includes-a 4.6% rate increase
that was effective 1/1/94.
[21 Other Income includes earnings on short term securities and sewerage
collection fees.
[31 Other Expense includes interest on the 1989 and 1994 Revenue Bonds,
Pension debt, Lake Lansing land contract, Michigan Ash building at Erickson,
Steam Debt to Electric, and customer deposits.
(41 Projected June 30, 1994 Restricted Operating Cash balances
Operations and Maintenance Fund $21,152,000
Bond and Interest Fund 500,000
Total Restricted Operating Cash $21,652,000
Projected June 30, 1994 Restricted General Cash balances
Coal Buildup 3,101,365
Uninsured Losses 8,273,944
Total Restricted General Cash $11,375,309
[51 Debt repayment includes principal payment for the 1989 and 1994 Revenue
Bonds, Pension debt, the Lake Lansing land contract, and the Michigan Ash
building at Erickson.
[61 Capital expenditures represent total amounts estimated for all Annual
Capital Additions, Planned Capital Projects, and Bond Projects during Fiscal Year
1995.
BOARD OF WATER & LIGHT - LANSING, MICHIGAN
BUDGET FOR FISCAL YEAR ENDING JUNE 30, 1995
DIVISION SUMMARY - OPERATIONS & MAINTENANCE EXPENSE
Restated for Budget Comparison
----------------------------------------------------------
Vehicle 6 Material Production Outside Expenses
Net Equipment 6 Fuels/Chem. Services to be
Labor /l/ Charges Supplies Purcb Power 6 Other /2/ Total Water Electric Steam Distributed Total
ADMINISTRATIVE 2,861,475 1,104 69,250 0 19,450,036 22,381,865 226,149 1,534,513 67,379 20,553,824 22,381,865
ELECTRIC UTILITY 15,736,122 692,850 2,799,403 67,107,472 3,685.926 90,021,773 0 89,658,661 0 363,112 90,021,773
WATER UTILITY 3,902,255 185,629 458,572 1,729,955 882,424 7,158,835 7,158,835 0 0 0 7,158,835
STEAM UTILITY 2,159,596 66,802 483,257 4,307,762 1,326,877 8,364,294 0 0 8,364,294 0 8,364,294
TECHNICAL SERVICES 3,814,828 68,342 800,400 0 1,535,263 6,218,833 0 0 0 6,218,833 6,218,833
HUMAN RESOURCES 567,715 0 39,650 0 210,706 818,071 0 0 0 818,071 818,071
CORPORATE PLANNING 242,505 0 65,400 0 141,065 448,970 0 0 0 448,970 448,970
COMMUNICATION/MARKETING 256,318 2,680 71,050 0 235,520 565,568 0 22,250 0 543,318 565,56
TREASURER/CONTROLLER 1,839,499 84,799 42,462 0 187,907 2,154,667 0 0 0 2,154,667 2,154,667
CONSUMER SERVICES 4,251,939 138,520 153,105 0 864,493 5,408,057 257,603 695,540 29,925 4,424,989 5,408,057
GRAND TOTAL $35,632,252 $1,260,726 $4,982,549 $73,145,189 $28,520,217 $143,540,933 $7,642,587 $91,910,964 $8,461,598 $35,525,784 $143,540,933
Distributed Expenses:
Spread to Water, Electric, 6 Steam /3/ 3,870,042 21,717,441 748,753 -26,336,236 0
Vehicle and Equipment Charges /4/ -1,260,726 -1,260,726
Indirect Costs Spread to Capital Budget /5/ -7,928,822 -7,928,822
4/11/94 NET BUDGET BY UTILITY $11,512,629 $113,628,405 $9,210,351 $0 $134,351,385
W
BOARD OF WATER AND LIGHT - DIVISION SUMMARY FOOTNOTES
FISCAL YEAR ENDING JUNE 30, 1995
[1] 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 personnel, labor charges,
fuel costs, and meters in service.
[41 The cost of owning and operating vehicles is in RA 425 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.
4
ATTACHMENT B
PROPOSED LANSING CITY ENTERPRISE COMMUNITY REBATE
Purim-The primary purpose of this rebate is to encourage investment in the proposed Lansing City Enterprise
Community. The Lansing City Enterprise Community is defined as the following 1990 census tracts: Numbers 2,3,5,7,
8. 12, 13, 14. 15, 19,20.21 and 65.
Availability- The rebate will he available to customers who locate or restart an idle service within the Lansing City
Enterprise Community. This rebate is available for a two year period from the date the Lansing City Enterprise
Community is established. All provisions of this rebate are the same as the principal water,electric or steam service rate
with the following exceptions:
1. This rebate is available to all customers installing a new water,electric or steam service in the Lansing City Enterprise
Community.
2. This rebate is available to all customers restarting an existing idle water,electric or steam service in the Lansing City
Enterprise Community after a perimi of no consumption.
3. This rebate is not available to Electric Rate 4 or Electric Rate 5 customers who sign a contract for service under the
Electric Economic Development Rider.
Payment- Upon application by the customer and approval by the City of Lansing and the Board of Water and Light,the
customer will be paid a rebate on the previous 12 month's utility(water,electric,steam)charges. The rebate is ten(10)
percent of the total utility charges charged and paid by the customer under the various water,electric or steam service rates
applicable to that customer.
35
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, April 26, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building,
123 West Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman
Hassler.
Present: Commissioners Belen, Christian, Evans, Hassler, Sebolt, Strolle,
and Williams -7
Absent: Commissioner O'Leary -1
The Secretary declared a quorum present.
The Invocation was delivered 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 March 22, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE
AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS
REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN
FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT
ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR
IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
Board Meeting Minutes Page 36
April 26, 1994
COMMUNICATIONS AND PETITIONS
A letter was received from Mr. Harold Leeman, Jr., requesting that funds be allocated in the
Board of Water and Light's Fiscal 1995 budget for the painting of fire hydrants.
General Manager Pandy reported that the BWL's annual budget for hydrant maintenance is
$100,000 which provides for flushing, inspection and necessary repairs to each of the
approximately 4,000 hydrants. The hydrant painting program is designed to repaint hydrants
on a ten year cycle, plus any additional spot painting necessary. The ten-year painting cycle
will begin again in 1995. Mr. Pandy noted that one neighborhood association preferring to
have the hydrants painted more frequently, painted them with paint supplied by the BWL.
This option will be communicated in a newsletter to the presidents of neighborhood
associations.
A letter was received from Mrs. Rose M. Hough suggesting improvements to customer
billings and services. She suggested the use of window cut-out return envelopes instead of
pre-printed return address envelopes and the utilization of direct bill payments via EFT
(Electronic Bank Transfer).
A letter written by Consumer Services Director Terry Graham responding to the issues raised
by Mrs. Hough was acknowledged. Mr. Graham advised that the BWL has explored the
window cut-out return envelopes on several occasions and has found this option is not cost
effective. Mrs. Hough was also advised that the BWL offers a Direct Bank Payment Plan
which allows customers to pay their utility bills automatically from their bank checking
account.
A thank you note was received from Ms. Lucile Belen for the BWL's participation as a
corporate sponsor of "A Bouquet for Lucile."
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE (AUDITING)
Res. No. 94-4-1
Advise the Lansing City Council that we have received a proposal dated April
6, 1994 from Deloitte & Touche. Their proposal quotes a not-to-exceed fee of
$32,000 for audits of the Board of Water and Light and its Pension Fund for
the fiscal year ending June 30, 1994. We asked for this proposal in accordance
with the City Council resolution adopted on March 29 1993, on engaging
independent auditors for the fiscal years ended June 30, 1993-1995.
--------------------
The cost they have quoted appears reasonable. It is the amount quoted in their
April 1993 proposal, a 4.9% increase from last year. We recommend retaining
Deloitte & Touche to conduct these audits according to their proposal.
--------------------
37 Board Meeting Minutes
April 24, 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-4-1 be approved as submitted.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-4-2
That Margaret Bayers, an Operating Supervisor for Water Production
Operations, be awarded a total of$104.95 for suggestion proposal number
1993-201, to contract a glove cleaning company to restore soiled gloves to
usable condition.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a net
savings of$419.80 in the first year.
--------------------
Res. No. 94-4-3
WHEREAS, A new three-year labor agreement with the IBEW Local 352 was
approved by the Board on March 22, 1994.
RESOLVED, That the following employment and benefit changes
incorporated in the union contract be applied to the Non-Bargaining Unit
employees per the effective dates listed below:
A. Health Care
1. The BWL health care services will be provided by M-Care
Point of Service Health Plan effective no later than 10-01-94.
2. Dental care services will be provided by Delta Dental effective
7-01-94.
3. Effective 5-01-94, BWL employees will not be allowed to
duplicate BWL coverage or be eligible for BWL cash in lieu of
cash benefits plan payment if covered by a BWL plan as their
alternate health coverage.
4. Domestic partnership agreements are excluded from BWL
health care coverage.
Board Meeting Minutes Page 38
April 26. 1994
General Manager's Recommendations (cont'd)
B. Long Term Disability
1. BWL will pay for LTD for all regular full-time employees,
effective 10-1-94.
C. Overtime effective the pay period beginning 4-03-94.
L Overtime will be paid at 1.7 times
a. for up to 2 hours of scheduled overtime which is
contiguous with the regular work scheduled
b. for the first 8 hours of scheduled overtime on the first
day off
C. when an employee is on a 12-hour shift schedule and the
hours between 40 and 48 are a part of the employee's
normal work week.
2. Overtime will be paid at 2 times
a. for any unscheduled overtime
b. after 2 hours scheduled overtime contiguous with
regular work scheduled
C. for any unscheduled overtime on the first day
d. over 8 hours on the first scheduled overtime day
e. on the second overtime day
f, after 50 hours per week
g. on Sunday
h. on holidays when the holiday is a scheduled part of the
employees' normal work week.
3. Overtime will be paid at 2-1/2 times
a. for any overtime beyond 12 hours continuous work
b. for overtime on the actual holiday if the holiday is not a
scheduled part of the employees' normal workweek.
39 Board Meeting Minutes
April24, 1994
General Manager's Recommendations (cont'd)
D. Premiums
1. Shift premiums will be increased to $.70 per hour for the
afternoon shift and $1.00 per hour for the evening shift,
retroactive to 11-01-93.
E.. Leave of Absence
1. An employee on non-compensable illness or injury leave shall
lose seniority when the leave equals the employee's pre-leave
seniority, but not to exceed 2 years effective i 1-1-93.
2. An employee returning to work from a leave shall not have such
time count toward the maximum leave should the employee
return to leave status within 30 days effective 3-23-94.
3. Thirty (30) days after returning from a leave, vacation and free
choice will be granted and accrued according to a normal return
to work from leave of absence effective 3-23-94.
4. An employee returning from a leave for a temporary assignment
will be paid at the rate of the temporary classification effective
3-23-94.
F. Other Issues
1. The purchase of Share the Success Vacation and Free Choice
will be limited to 10 total days to include no more than 2 Free
Choice days effective 93-94 STS program year.
2. Employees will be paid at straight-time rate for jury dut service
effective 11-1-93.
3. The safety shoe allowance will be limited to 1 pair of safety
shoes every 12 months effective 11-1-93.
4. As in the past, comparison to the Bargaining Unit will be taken
into consideration when recommending a General Increase for
7-01-94.
--------------------
This list of Non-Bargaining Unit changes supersedes the Interim Non-
Bargaining Unit Changes Fiscal Year 1990-91 as adopted by the Board of
Commissioners on 10-16-90.
--------------------
Board Meeting Minutes Page 40
April 26, 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-4-2 and 94-4-3 be approved as submitted.
Adopted unanimously.
WATER
Res. No. 94-4-4
That the Board agree to serve water to proposed Water District No. 94, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
August 3, 1993 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. 94 established by Township
resolution on August 3, 1993, and will provide a potable water supply
to said district.
2. The Township will be required to make a $19,792 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 XCIV) covering the furnishing of a potable water supply
in Water District No. 94.
4. Water mains are to be installed in accordance with the current Board's
Policies and Procedures for Water Service.
Further, that upon receipt of the sum of$18,792 from the Township, the
project be approved for installation, and the General Manager and the
Corporate Secretary be authorized to sign the aforementioned agreement
(Supplement XCIV) to furnish a potable water supply in Water District No.
94.
The geographical area of Water District No. 94 is as follows:
Dutch Meadows Phase 4 Subdivision, Lots 40 thru 53.
To provide a potable water supply within the proposed new district requires
the installation of 810 feet of water main and fire hydrants at an estimated cost
of$18,792.
41 Board Meeting Minutes
April 24.. 1994
General Manager's Recommendations (cont'd)
The main extension will serve fourteen (14) residential customers. One-time
connection fees will amount to $8,638. Estimated annual revenue is $4,760.
Water mains to be installed in Spring/Summer of 1994 following the receipt of
the Township's non-refundable contribution-in-aid of construction and the
signing of the agreement.
--------------------
WATER
Res. No. 94-4-5
That the Board agree to serve water to proposed Water District No. 98, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
February 15, 1994, 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. 98 established by Township
resolution on February 15, 1994, and will provide a potable water
supply to said district.
2. The Township will be required to make a $39,904 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 XCVIII) covering the furnishing of a potable water supply
in Water District No. 98.
4. Water mains are to be installed In accordance. ith the current Board's
Rules and Regulations for Water Service.
Further, that upon receipt of the sum of$39,904 from the Township, the
project be approved for installation, and the General Manager and the
Corporate Secretary be authorized to sign the aforementioned agreement
(Supplement XCVIII) to furnish a potable water supply in Water District No.
98.
The geographical area of Water District No. 98 is as follows:
Lochwoode Estates, Subdivision No. 4, Lots 99 -128.
To provide a potable water supply within the proposed new district requires
the installation of 1,720 feet of water main and fire hydrants at an estimated
cost of$39,904.
Board Meeting Minutes Page 42
April 26, 1994
General Manager's Recommendations (cont'd)
The main extension will serve thirty (30) residential customers. One-time
connection fees will amount to $20,160. Estimated annual revenue is $10,200.
Water mains to be installed in Summer of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing
of the agreement.
--------------------
WATE
Res. No. 94-4-6
That the Board agree to serve water to proposed Water District No. 99, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
April 5, 1994, 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. 99 established by Township
resolution on April 5, 1994, and will provide a potable water supply to
said district.
2. The Township will be required to make a $26,796 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 XCIX) covering the furnishing of a potable water supply
in Water District No. 99.
4. Water mains are to be installed in accordance with the current Board's
Policies and Procedures for Water Service.
Further, that upon receipt of the sum of$26,796 from the Township, the
project be approved for installation, and the General Manager and the
Corporate Secretary be authorized to sign the aforementioned agreement
(Supplement XCIX) to furnish a potable water supply in Water District No.
99.
43 Board Meeting Minutes
April 24, 1994
General Manager's Recommendations (cont'd)
The geographical area of Water District No. 99 is as follows:
Duling Farm Estates Subdivision No. 2, Lots 20 thru 35.
To provide a potable water supply within the proposed new district requires
the installation of 1,155 feet of water main and fire hydrants at an estimated
cost of$26,796.
The main extension will serve sixteen (16) residential customers. One-time
connection fees will amount to $10,752. Estimated annual revenue is $5,440.
Water mains to be installed in Spring/Summer of 1994 following the receipt of
the Township's non-refundable contribution-in-aid of construction and the
signing of the agreement.
--------------------
WATER
Res. No. 94-4-7
That the following resolution be forwarded to the Lansing City Council requesting the
Council to adopt the Articles of Incorporation of the Mid-Michigan Water Authority,
and designate the Board of Water and Light as its agent, following notice by the City
Clerk that the articles have been published:
WHEREAS, at a joint meeting held between the Board of Water
and Light Commissioners and the City Council on February 10,
1994, the Board of Water and Light staff provided information on
the regional strategy to supply water needs to participating local
units of government; and
WHEREAS, the Mid-Michigan Water Authority seeks the
participation of surrounding communities to share water resources
and provide high quality water service for each; and
WHEREAS, the Board of Water and Light desires to become a
member of the Mid-Michigan Water authority.
Board Meeting Minutes Page 44
April 26. 1994
General Manager's Recommendations (cont'd)
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The Board of Water and Light Commissioners
requests the City Clerk, upon receipt of the Articles of Incorporation
of the Mid-Michigan Water Authority by the Lansing City Council,
to publish by May 31, 1994, a true copy of the Articles of
Incorporation of the Mid-Michigan Water Authority once in the
LANs1NG STATE JOURNAL as required by 1989 PA 292.
2. The Board of Water and Light Commissioners
requests the City Council, following notice of publication, to adopt
the Articles of Incorporation of the Mid-Michigan Water Authority
and delegate to the Board of Water and Light authority to act in all
matters associated with participation in the Mid-Michigan Water
Authority.
3. The Board of Water and Light Commissioners
requests the City Clerk, upon being notified that all participating
local government units have adopted the Articles of Incorporation,
to file a printed copy of the articles with the Secretary of State and
the clerk of each county in which is located all or part of a
participating local government unit as required by 1989 PA 292.
--------------------
The Board of Water and Light will be responsible for all of the City of
Lansing's share of costs associated with the incorporation and operation of
the Mid-Michigan Water Authority.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-4-4, 94-4-5, 94-4-6, and 94-4-7, respectively, be
approved as submitted.
Adopted unanimously.
45 Board Meeting Minutes
April 24, 1994
RESOLUTIONS
RESOLUTION REGARDING
WATER QUALITY AWARENESS WEEK
(Resolution 94-4-8)
WHEREAS, Governor John Engler has declared May 1 - 7 , 1994 as Water
Quality Awareness Week in the State Of Michigan; and
WHEREAS, An abundant supply of safe, high quality water is essential to the
health and comfort of the Board of Water and Light customers as well as the economic
growth of its service area; and
WHEREAS, The Board of Water and Light has been charged with this
responsibility and has provided a safe, reliable water supply since 1885 in an ever more
complex environment; and
WHEREAS, The Board of Water and Light recognizes the 20th
anniversary of the Safe Drinking Water Act; and
WHEREAS, The Board of Water and Light, in cooperation
with the American Water Works Association, the Michigan Water Environment Association,
and the Lansing Area Ground Water Management Board have all joined together in educating
the public on this limited natural resource and to call attention to Water Quality Awareness
Week.
NOW , BE IT RESOLVED THAT WE , THE BOARD OF
COMMISSIONERS, OF THE BOARD OF WATER AND LIGHT, IN THE CITY OF
LANSING, by the power vested in us, do hereby proclaim the week of May 1 - 7, 1994 as ;
" WATER QUALITY AWARENESS WEEK "
and urge all of our employees and customers to join us in celebrating our
abundant supply of a safe, reliable, and high quality source of water.
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-4-8 recognizing Water Quality Awareness Week be adopted.
Adopted unanimously.
Board Meeting Minutes Page 46
April 26, 1994
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Electric Utility Director Roy Peffley to Retire. Mr. Pandy announced that Electric Utility
Director Roy Peffley has informed him of his intention to take the early retirement option
effective September 1, 1994 under the Voluntary Workforce Reduction Program. Plans for
reorganizing the Electric Utility at the executive staff level were reviewed. Mr. Peffley will be
actively involved in the transitional phase of the Electric Utility's new organizational structure.
Adopt A River Program Launched. John Strickler and his staff and Commissioners
O'Leary and Christian were commended for their dedication and time to help launch the
Adopt A River program. Mr. Pandy stated that the BWL will continue to lead the effort and
provide administrative support services for Adopt A River through this summer. Effective
this Fall, the program will be administered by the Nature Way Association, a nonprofit
corporation that operates Woldumar Nature Center. The BWL will provide Nature Way
Association with a $5,000 annual grant over the next three years to assure the continuing
operation of the Adopt A River program. As program sponsors, thirty-one organizations will
be involved with river and bank cleanups during the year and may perform other beautification
projects.
Residential Customers Exempted from New Sales Tax Increase. Legislation recently
passed (HB 5508) will exempt residential customers from paying the new 6 percent sales tax.
The bill is on Governor Engler's Desk for signature. The sales tax for residential customers
will remain at 4 percent. The new 6 percent sales tax will be applied to non-residential
customers for billing cycles that begin after April 30.
Export Power Status Report. March 1994 was the BWL's best month for export power
sales since June 1989. During March, total revenue received from export sales was over
$1.2 million. Revenue associated with export power sales in Fiscal 1994 to date totaled over
$6.3 million. Accessibility, Belle River, the Michigan Public Power Agency (MPPA), and
reduced costs were cited as the reason for the increased sale. It was noted that with the Fem-d
Plant being off-line, the BWL has a good opportunity for future export power sales as long as
rates remain competitive.
Retail Wheeling Becoming a Reality in Michigan. The Michigan Public Service
Commission has approved a framework for a five-year experimental retail wheeling program
for The Detroit Edison Company and Consumers Power Company aimed at examining the
potential benefits to utility customers and the state's economy. The BWL is exploring this
program to determine if there is an opportunity for the MPPA to participate as an exporter.
The question of contiguous franchises is being researched.
47 Board Meeting Minutes
April 24, 1994
Cost of Power Production Comparison. An analysis conducted by Utility Data Institute
(UDI) ranking selected investor-owned utilities as low-cost producers was handed out for
reference. Utilities ranking at the top of the list are from the Pacific Northwest and rely more
on hydroelectric power--which has no fuel cost--and less on coal and nuclear power. An
independent analysis prepared by Treasurer/Controller Dana Tousley ranked the BWL 34th
among the investor-owned utilities listed with a five-year average cost/megawatthour (MWhr)
of electricity of$21.11.
"Just In Time" Market for Coal. Staff from the BWL's Fuel Supply and Results is working
with MAPCO Coal, Inc. in utilizing the Erickson Plant ground storage for the purpose of
facilitating and expanding MAPCO's industrial market base. Negotiations with MAPCO for an
exclusive option to market coal from the Erickson Plant's ground storage facility are
underway. This proposed project may present viable economic opportunities to both the BWL
and MAPCO.
Meridian Township Water Supply Program.. A copy of a letter written by Bert Teitzel,
Director of Engineering and Public Works, Meridian Township, was handed out for
information. Mr. Teitzel reports the conclusions of the Water Demand report, dated
December 1993, regarding the future water needs of the Township. The report concludes that
Meridian Township would not need to purchase water from the BWL through an
interconnect, as the township has sufficient wells to supply present water needs.
VIP Tour of Local Water Facilities. In observance of National Drinking Water Week, the
Groundwater Management Board is inviting elected officials to attend a VIP tour of local
water facilities on March 3, 1994. Commissioners were encouraged to attend.
Transportation System to East Lansing Discussed.
General Manager Pandy met with East Lansing Mayor Robert Phipps to discuss possible
partnership possibilities for public transportation between Lansing and East Lansing.
Mr. Pandy noted that Lansing Mayor David Hollister and MSU President Peter McPherson
have expressed a desire tc explore coordinated efforts to link Lansing and East Lansing to
better utilize all facilities in the area.
Annual 25 Year Dinner Scheduled. Sixteen employees will be service award recipients at
the 1994 BWL 25-Year Service Awards dinner to be held May 23 at the Holiday Inn South.
Mr. Pandy said that Treasurer/Controller Dana Tousley and Human Resources Director Mark
Vander Jagt are among those to be honored.
Personnel Committee Meeting Scheduled. The next Personnel Committee meeting is set
for May 19 at 12 Noon. Topics to be discuss include the quarterly review of pension fund
investments and the non-bargaining unit wage and salary plan for Fiscal 1995.
Board Meeting Minutes Page 48
April 26, 1994
Employee Involvement with Junior Achievement. Mr. Pandy congratulated the following
BWL employees for their efforts in raising $5,285 for Junior Achievement: Brian McLeod,
Ron Ishimoto, Jim Robie, 011ie Kingsbury, Randy Roost, Steve Simpson, and Shellie Starkey.
REMARKS BY BOARD COMMISSIONERS
In response to inquiries made by the Commissioners, Water Utility Director Clyde Dugan
reported that Delta and Lansing Townships are getting closer to signing Wholesale Water
Service Agreements. The two townships will be holding public hearings to discuss this issue
with their citizens and to receive input.
Commissioner Hassler noted that all three utilities met the Share the Success Cost of Service
goal.
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER CHRISTIAN
That the absence of Commissioner O'Leary be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 6:07 p.m.
Mary 4E. ova, Secretary
Filed: May 2, 1994
Marilynn Slade, City Clerk
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, April 26, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office Building,
123 West Ottawa Street, Lansing, Michigan. The meeting was called to order by Chairman
Hassler.
Present: Commissioners Belen, Christian, Evans, Hassler, Sebolt, Strolle,
and Williams -7
Absent: Commissioner O'Leary -1
The Secretary declared a quorum present.
The Invocation was delivered 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 March 22, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE
AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS
REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN
FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT
ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR
IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
Board Meeting Minutes Page 36
April 26, 1994
COMMUNICATIONS AND PETITIONS
A letter was received from Mr. Harold Leeman, Jr., requesting that funds be allocated in the
Board of Water and Light's Fiscal 1995 budget for the painting of fire hydrants.
General Manager Pandy reported that the BWL's annual budget for hydrant maintenance is
$100,000 which provides for flushing, inspection and necessary repairs to each of the
approximately 4,000 hydrants. The hydrant painting program is designed to repaint hydrants
on a ten year cycle, plus any additional spot painting necessary. The ten-year painting cycle
will begin again in 1995. Mr. Pandy noted that one neighborhood association preferring to
have the hydrants painted more frequently, painted them with paint supplied by the BWL.
This option will be communicated in a newsletter to the presidents of neighborhood
associations.
A letter was received from Mrs. Rose M. Hough suggesting improvements to customer
billings and services. She suggested the use of window cut-out return envelopes instead of
pre-printed return address envelopes and the utilization of direct bill payments via EFT
(Electronic Bank Transfer).
A letter written by Consumer Services Director Terry Graham responding to the issues raised
by Mrs. Hough was acknowledged. Mr. Graham advised that the BWL has explored the
window cut-out return envelopes on several occasions and has found this option is not cost
effective. Mrs. Hough was also advised that the BWL offers a Direct Bank Payment Plan
which allows customers to pay their utility bills automatically from their bank checking
account.
A thank you note was received from Ms. Lucile Belen for the BWL's participation as a
corporate sponsor of "A Bouquet for Lucile."
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE (AUDITING)
Res. No. 94-4-1
Advise the Lansing City Council that we have received a proposal dated April
6, 1994 from Deloitte & Touche. Their proposal quotes a not-to-exceed fee of
$32,000 for audits of the Board of Water and Light and its Pension Fund for
the fiscal year ending June 30, 1994. We asked for this proposal in accordance
with the City Council resolution adopted on March 29 1993, on engaging
independent auditors for the fiscal years ended June 30, 1993-1995.
--------------------
The cost they have quoted appears reasonable. It is the amount quoted in their
April 1993 proposal, a 4.9% increase from last year. We recommend retaining
Deloitte & Touche to conduct these audits according to their proposal.
--------------------
37 Board Meeting Minutes
April 24, 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-4-1 be approved as submitted.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-4-2
That Margaret Bayers, an Operating Supervisor for Water Production
Operations, be awarded a total of$104.95 for suggestion proposal number
1993-201, to contract a glove cleaning company to restore soiled gloves to
usable condition.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a net
savings of$419.80 in the first year.
--------------------
Res. No. 94-4-3
WHEREAS, A new three-year labor agreement with the IBEW Local 3 52 was
approved by the Board on March 22, 1994.
RESOLVED, That the following employment and benefit changes
incorporated in the union contract be applied to the Non-Bargaining Unit
employees per the effective dates listed below:
A. Health Care
1. The BWL health care services will be provided by M-Care
Point of Service Health Plan effective no later than 10-01-94.
2. Dental care services will be provided by Delta Dental effective
7-01-94.
3. Effective 5-01-94, BWL employees will not be allowed to
duplicate BWL coverage or be eligible for BWL cash in lieu of
cash benefits plan payment if covered by a BWL plan as their
alternate health coverage.
4. Domestic partnership agreements are excluded from BWL
health care coverage.
Board Meeting Minutes Page 38
April 26. 1994
General Manager's Recommendations (cont'd)
B. Long Term Disability
1. BWL will pay for LTD for all regular full-time employees,
effective 10-1-94.
C. Overtime effective the pay period beginning 4-03-94.
1. Overtime will be paid at 1.7 times
a. for up to 2 hours of scheduled overtime which is
contiguous with the regular work scheduled
b. for the first 8 hours of scheduled overtime on the first
day off
C. when an employee is on a 12-hour shift schedule and the
hours between 40 and 48 are a part of the employee's
normal work week.
2. Overtime will be paid at 2 times
a. for any unscheduled overtime
b. after 2 hours scheduled overtime contiguous with
regular work scheduled
C. for any unscheduled overtime on the first day
d. over 8 hours on the first scheduled overtime day
e. on the second overtime day
f. after 50 hours per week
g. on Sunday
h. on holidays when the holiday is a scheduled part of the
employees' normal work week.
3. Overtime will be paid at 2-1/2 times
a. for any overtime beyond 12 hours continuous work
b. for overtime on the actual holiday if the holiday is not a
scheduled part of the employees' normal workweek.
39 Board Meeting Minutes
April 24, 1994
General Manager's Recommendations (cont'd)
D. Premiums
1. Shift premiums will be increased to $.70 per hour for the
afternoon shift and $1.00 per hour for the evening shift,
retroactive to 11-01-93.
E.. Leave of Absence
1. An employee on non-compensable illness or injury leave shall
lose seniority when the leave equals the employee's pre-leave
seniority, but not to exceed 2 years effective 11-1-93.
2. An employee returning to work from a leave shall not have such
time count toward the maximum leave should the employee
return to leave status within 30 days effective 3-23-94.
3. Thirty (30) days after returning from a leave, vacation and free
choice will be granted and accrued according to a normal return
to work from leave of absence effective 3-23-94.
4. An employee returning from a leave for a temporary assignment
will be paid at the rate of the temporary classification effective
3-23-94.
F. Other Issues
1. The purchase of Share the Success Vacation and Free Choice
will be limited to 10 total days to include no more than 2 Free
Choice days effective 93-94 STS program year.
2. Employees will be paid at straight-time rate for jury duty service
effective 11-1-93.
3. The safety shoe allowance will be limited to 1 pair of safety
shoes every 12 months effective 11-1-93.
4. As in the past, comparison to the Bargaining Unit will be taken
into consideration when recommending a General Increase for
7-01-94.
--------------------
This list of Non-Bargaining Unit changes supersedes the Interim Non-
Bargaining Unit Changes Fiscal Year 1990-91 as adopted by the Board of
Commissioners on 10-16-90.
--------------------
Board Meeting Minutes Page 40
April 26, 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-4-2 and 94-4-3 be approved as submitted.
Adopted unanimously.
WATER
Res. No. 94-4-4
That the Board agree to serve water to proposed Water District No. 94, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
August 3, 1993 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. 94 established by Township
resolution on August 3, 1993, and will provide a potable water supply
to said district.
2. The Township will be required to make a $18,792 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 XCIV) covering the furnishing of a potable water supply
in Water District No. 94.
4. Water mains are to be installed in accordance with the current Board's
Policies and Procedures for Water Service.
Further, that upon receipt of the sum of$18,792 from the Township, the
project be approved for installation, and the General Manager and the
Corporate Secretary be authorized to sign the aforementioned agreement
(Supplement XCIV) to furnish a potable water supply in Water District No.
94.
The geographical area of Water District No. 94 is as follows:
Dutch Meadows Phase 4 Subdivision, Lots 40 thru 53.
To provide a potable water supply within the proposed new district requires
the installation of 810 feet of water main and fire hydrants at an estimated cost
of$18,792.
41 Board Meeting Minutes
April 24, 1994
General Manager's Recommendations (cont'd)
The main extension will serve fourteen (14) residential customers. One-time
connection fees will amount to $8,638. Estimated annual revenue is $4,760.
Water mains to be installed in Spring/Summer of 1994 following the receipt of
the Township's non-refundable contribution-in-aid of construction and the
signing of the agreement.
--------------------
WATER
Res. No. 94-4-5
That the Board agree to serve water to proposed Water District No. 98, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
February 15, 1994, 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. 98 established by Township
resolution on February 15, 1994, and will provide a potable water
supply to said district.
2. The Township will be required to make a $39,904 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 XCVIII) covering the furnishing of a potable water supply
in Water District No. 98.
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$39,904 from the Township, the
project be approved for installation, and the General Manager and the
Corporate Secretary be authorized to sign the aforementioned agreement
(Supplement XCVIII) to furnish a potable water supply in Water District No.
98.
The geographical area of Water District No. 98 is as follows:
Lochwoode Estates, Subdivision No. 4, Lots 99 -128.
To provide a potable water supply within the proposed new district requires
the installation of 1,720 feet of water main and fire hydrants at an estimated
cost of$39,904.
Board Meeting Minutes Page 42
April 26, 1994
General Manager's Recommendations (cont'd)
The main extension will serve thirty (30) residential customers. One-time
connection fees will amount to $20,160. Estimated annual revenue is $10,200.
Water mains to be installed in Summer of 1994 following the receipt of the
Township's non-refundable contribution-in-aid of construction and the signing
of the agreement.
--------------------
WATER
Res. No. 94-4-6
That the Board agree to serve water to proposed Water District No. 99, Delhi
Township, as requested by resolution of the Delhi Charter Township Board on
April 5, 1994, 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. 99 established by Township
resolution on April 5, 1994, and will provide a potable water supply to
said district.
2. The Township will be required to make a $26,796 non-refundable
contribution-in-aid of construction to cover the charges set forth in the
Board's Policies and Procedures 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 XCIX) covering the furnishing of a potable water supply
in Water District No. 99.
4. Water mains are to be installed in accordance with the current Board's
Policies and Procedures for Water Service.
Further, that upon receipt of the sum of$26,796 from the Township, the
project be approved for installation, and the General Manager and the
Corporate Secretary be authorized to sign the aforementioned agreement
(Supplement XCIX) to furnish a potable water supply in Water District No.
99.
43 Board Meeting Minutes
April 24, 1994
General Manager's Recommendations (cont'd)
The geographical area of Water District No. 99 is as follows:
Duling Farm Estates Subdivision No. 2, Lots 20 thru 35.
To provide a potable water supply within the proposed new district requires
the installation of 1,155 feet of water main and fire hydrants at an estimated
cost of$26,796.
The main extension will serve sixteen (16) residential customers. One-time
connection fees will amount to $10,752. Estimated annual revenue is $5,440.
Water mains to be installed in Spring/Summer of 1994 following the receipt of
the Township's non-refundable contribution-in-aid of construction and the
signing of the agreement.
--------------------
WATER
Res. No. 94-4-7
That the following resolution be forwarded to the Lansing City Council requesting the
Council to adopt the Articles of Incorporation of the Mid-Michigan Water Authority,
and designate the Board of Water and Light as its agent, following notice by the City
Clerk that the articles have been published:
WHEREAS, at a joint meeting held between the Board of Water
and Light Commissioners and the City Council on February 10,
1994, the Board of Water and Light staff provided information on
the regional strategy to supply water needs to participating local
units of government; and
WHEREAS, the Mid-Michigan Water Authority seeks the
participation of surrounding communities to share water resources
and provide high quality water service for each; and
WHEREAS, the Board of Water and Light desires to become a
member of the Mid-Michigan Water authority.
Board Meeting Minutes Page 44
April 26, 1994
General Manager's Recommendations (cont'd)
NOW, THEREFORE, BE IT RESOLVED THAT:
1. The Board of Water and Light Commissioners
requests the City Clerk, upon receipt of the Articles of Incorporation
of the Mid-Michigan Water Authority by the Lansing City Council,
to publish by May 31, 1994, a true copy of the Articles of
Incorporation of the Mid-Michigan Water Authority once in the
LANSING STATE JOURNAL as required by 1989 PA 292.
2. The Board of Water and Light Commissioners
requests the City Council, following notice of publication, to adopt
the Articles of Incorporation of the Mid-Michigan Water Authority
and delegate to the Board of Water and Light authority to act in all
matters associated with participation in the Mid-Michigan Water
Authority.
3. The Board of Water and Light Commissioners
requests the City Clerk, upon being notified that all participating
local government units have adopted the Articles of Incorporation,
to file a printed copy of the articles with the Secretary of State and
the clerk of each county in which is located all or part of a
participating local government unit as required by 1989 PA 292.
--------------------
The Board of Water and Light will be responsible for all of the City of
Lansing's share of costs associated with the incorporation and operation of
the Mid-Michigan Water Authority.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-4-4, 94-4-5, 94-4-6, and 94-4-7, respectively, be
approved as submitted.
Adopted unanimously.
45 Board Meeting Minutes
April 24, 1994
RESOLUTIONS
RESOLUTION REGARDING
WATER QUALITY AWARENESS WEEK
(Resolution 94-4-8)
WHEREAS, Governor John Engler has declared May 1 - 7 , 1994 as Water
Quality Awareness Week in the State Of Michigan; and
WHEREAS, An abundant supply of safe, high quality water is essential to the
health and comfort of the Board of Water and Light customers as well as the economic
growth of its service area; and
WHEREAS, The Board of Water and Light has been charged with this
responsibility and has provided a safe, reliable water supply since 1885 in an ever more
complex environment; and
WHEREAS, The Board of Water and Light recognizes the 20th
anniversary of the Safe Drinking Water Act; and
WHEREAS, The Board of Water and Light, in cooperation
with the American Water Works Association, the Michigan Water Environment Association,
and the Lansing Area Ground Water Management Board have all joined together in educating
the public on this limited natural resource and to call attention to Water Quality Awareness
Week.
NOW , BE IT RESOLVED THAT WE , THE BOARD OF
COMMISSIONERS, OF THE BOARD OF WATER AND LIGHT, IN THE CITY OF
LANSING, by the power vested in us, do hereby proclaim the week of May 1 - 7, 1994 as ;
" WATER QUALITY AWARENESS WEEK "
and urge all of our employees and customers to join us in celebrating our
abundant supply of a safe, reliable, and high quality source of water.
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-4-8 recognizing Water Quality Awareness Week be adopted.
Adopted unanimously.
Board Meeting Minutes Page 46
April 26. 1994
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Electric Utility Director Roy Peffley to Retire. Mr. Pandy announced that Electric Utility
Director Roy Peflley has informed him of his intention to take the early retirement option
effective September 1, 1994 under the Voluntary Workforce Reduction Program. Plans for
reorganizing the Electric Utility at the executive staff level were reviewed. Mr. Peflley will be
actively involved in the transitional phase of the Electric Utility's new organizational structure.
Adopt A River Program Launched. John Strickler and his staff and Commissioners
O'Leary and Christian were commended for their dedication and time to help launch the
Adopt A River program. Mr. Pandy stated that the BWL will continue to lead the effort and
provide administrative support services for Adopt A River through this summer. Effective
this Fall, the program will be administered by the Nature Way Association, a nonprofit
corporation that operates Woldumar Nature Center. The BWL will provide Nature Way
Association with a $5,000 annual grant over the next three years to assure the continuing
operation of the Adopt A River program. As program sponsors, thirty-one organizations will
be involved with river and bank cleanups during the year and may perform other beautification
projects.
Residential Customers Exempted from New Sales Tax Increase. Legislation recently
passed (HB 5508) will exempt residential customers from paying the new 6 percent sales tax.
The bill is on Governor Engler's Desk for signature. The sales tax for residential customers
will remain at 4 percent. The new 6 percent sales tax will be applied to non-residential
customers for billing cycles that begin after April 30.
Export Power Status Report. March 1994 was the BWL's best month for export power
sales since June 1989. During March, total revenue received from export sales was over
$1.2 million. Revenue associated with export power sales in Fiscal 1994 to date totaled over
$6.3 million. Accessibility, Belle River, the Michigan Public Power Agency (MPPA), and
reduced costs were cited as the reason for the increased sale. It was noted that with the Fermi
Plant being off-line, the BWL has a good opportunity for future export power sales as long as
rates remain competitive.
Retail Wheeling Becoming a Reality in Michigan. The Michigan Public Service
Commission has approved a framework for a five-year experimental retail wheeling program
for The Detroit Edison Company and Consumers Power Company aimed at examining the
potential benefits to utility customers and the state's economy. The BWL is exploring this
program to determine if there is an opportunity for the MPPA to participate as an exporter.
The question of contiguous franchises is being researched.
47 Board Meeting Minutes
April 24, 1994
Cost of Power Production Comparison. An analysis conducted by Utility Data Institute
(UDI) ranking selected investor-owned utilities as low-cost producers was handed out for
reference. Utilities ranking at the top of the list are from the Pacific Northwest and rely more
on hydroelectric power--which has no fuel cost--and less on coal and nuclear power. An
independent analysis prepared by Treasurer/Controller Dana Tousley ranked the BWL 34th
among the investor-owned utilities listed with a five-year average cost/megawatthour (MWhr)
of electricity of$21.11.
"Just In Time" Market for Coal. Staff from the BWL's Fuel Supply and Results is working
with MAPCO Coal, Inc. in utilizing the Erickson Plant ground storage for the purpose of
facilitating and expanding MAPCO's industrial market base. Negotiations with MAPCO for an
exclusive option to market coal from the Erickson Plant's ground storage facility are
underway. This proposed project may present viable economic opportunities to both the BWL
and MAPCO.
Meridian Township Water Supply Program.. A copy of a letter written by Bert Teitzel,
Director of Engineering and Public Works, Meridian Township, was handed out for
information. Mr. Teitzel reports the conclusions of the Water Demand report, dated
December 1993, regarding the future water needs of the Township. The report concludes that
Meridian Township would not need to purchase water from the BWL through an
interconnect, as the township has sufficient wells to supply present water needs.
VIP Tour of Local Water Facilities. In observance of National Drinking Water Week, the
Groundwater Management Board is inviting elected officials to attend a VIP tour of local
water facilities on March 3, 1994. Commissioners were encouraged to attend.
Transportation System to East Lansing Discussed.
General Manager Pandy met with East Lansing Mayor Robert Phipps to discuss possible
partnership possibilities for public transportation between Lansing and East Lansing.
Mr. Pandy noted that Lansing Mayor David Hollister and MSU President Peter McPherson
have expressed a desire to explore coordinated efforts to link Lansing and East Lansing to
better utilize all facilities in the area.
Annual 25 Year Dinner Scheduled. Sixteen employees will be service award recipients at
the 1994 BWL 25-Year Service Awards dinner to be held May 23 at the Holiday Inn South.
Mr. Pandy said that Treasurer/Controller Dana Tousley and Human Resources Director Mark
Vander Jagt are among those to be honored.
Personnel Committee Meeting Scheduled. The next Personnel Committee meeting is set
for May 19 at 12 Noon. Topics to be discuss include the quarterly review of pension fund
investments and the non-bargaining unit wage and salary plan for Fiscal 1995.
Board Meeting Minutes Page 48
April 26, 1994
Employee Involvement with Junior Achievement. Mr. Pandy congratulated the following
BWL employees for their efforts in raising $5,285 for Junior Achievement: Brian McLeod,
Ron Ishimoto, Jim Roble, 011ie Kingsbury, Randy Roost, Steve Simpson, and Shellie Starkey.
REMARKS BY BOARD COMMISSIONERS
In response to inquiries made by the Commissioners, Water Utility Director Clyde Dugan
reported that Delta and Lansing Townships are getting closer to signing Wholesale Water
Service Agreements. The two townships will be holding public hearings to discuss this issue
with their citizens and to receive input.
Commissioner Hassler noted that all three utilities met the Share the Success Cost of Service
goal.
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER CHRISTIAN
That the absence of Commissioner O'Leary be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 6:07 p.m.
Mary E. ova, Secretary
Filers: May 2, 1994
Marilynn Slade, City Clerk
Page 23
03-28-94AIO : 5�� f\CVD
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, March 22, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office
Building, 123 West Ottawa Street, Lansing, Michigan. The meeting was called to order
by Chairman Hassler.
Present: Commissioners Belen, Christian, Evans, Hassler, O'Leary, Strolle,
and W iihams -7
Absent: Commissioner Sebolt -1
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler in memory of BWL retiree A. Cliff
Hand who passed away on March 22, 1994. Mr. Hand retired on August 1, 1982, with 41
years of service at the BWL.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER WILLIAMS
That minutes of regular session of February 22, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL
BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS
REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN
FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO
COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS
TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
Board Meeting Minutes Page 24
March 22, 1994
COMMUNICATIONS AND PETITIONS
None.
PERSONNEL COMMITTEE REPORT
In the absence of Commissioner Sebolt, Commissioner O'Leary presented the highlights of
the Personnel Committee Report. The Board considered each resolution after it was read.
PERSONNET, COMMITTEE
Jack R. Sebolt, Chair
Eva Evans
David O'Leary
John Strolle
The Personnel Committee met on February 24, 1994, to discuss the following matters:
1. Pension Fund Investments
2. Executive Staff Functional Analysis Report
Present were Personnel Committee Members Evans, O`Leary, and Sebolt (Chair). Also
present were Commissioners Belen, Christian, Hassler, and Williams. Absent was
Commissioner Strolle.
Pension Plan Investment Review
The Pension Fund investments for the period covering October 1, 1993, through
December 31, 1993, were reviewed in detail. The Personnel Committee's
recommendation has been submitted to the Pension Fund Trustees for action.
ICMA 401A Money Purchase Plan
General Manager Joe Pandy reported that the ICMA-RC has developed a loan package
which could be added to the BWL's 401A Money Purchase Plan & Trust Agreement,
adopted July 1, 1988. At that time, management had expressed an interest to implement a
loan provision to be administered by ICMA as soon as a program was developed. The
Committee reviewed a copy of the ICMA loan guidelines and discussed the pros and cons.
The Personnel Committee offers the following resolution and recommends Board
approval:
Page 25 Board Meeting Minutes
March 22, 1994
Personnel Committee Report (cont'd)
Loan Provision for ICMA 401-A Money Purchase Plan
(Resolution 94-3-1)
That the General Manager be authorized to execute the "Summary of
Prototype Money Purchase Plan Amendments Document" for ICMA to
administer the loan program under the Board of Water and Light's 401-A
Money Purchase Plan through ICMA-RC.
MOVED BY COMMISSIONER O'LEARY--
SECONDED BY COMMISSIONER BELEN
Adopted unanimously.
Functional Analysis/Right Sizing
FUNCTIONAL ANALYSIS: General Manager Pandy presented the highlights of the
Executive Staffs Functional Analysis Report, dated January 21, 1994 (see Appendix A-1
and A-2). The detailed report was mailed to the Commissioners in advance in preparation
for the Personnel Committee meeting. An in depth discussion was held on workforce
reductions and savings that could be realized over the next five years (see Appendix B).
WORKFORCE REDUCTION: Treasurer/Controller Dana Tousley and Human Resources
Director Mark Vander Jagt outlined and discussed the voluntary workforce reduction
options.
After thorough deliberation, the Personnel Committee offers the following resolution and
recommends Board approval:
Voluntary Workforce Reduction Options
(Resolution 94-3-2)
That the Voluntary Workforce Reduction Options detailed in "Appendix-
C" be adopted and offered to employees under the terms and conditions
specified in "Appendix-C."
MOVED BY COMMISSIONER O'LEARY--
SECONDED BY COMMISSIONER WILLIAMS
Adopted unanimously.
LIGHT BULB CENTER SERVICES: Consumer Services Director Terry Graham presented an
overview of activities in the BWL's Light Bulb Center, including employee merchandise
sales and retail bulb sales services. The Bulb Program has been in existence for
Board Meeting Minutes Page 26
March 22. 1994
Personnel Committee Report (cont'd)
approximately 66 years--beginning October 1, 1907, until July 1, 1915, and later reinstated
on January 1, 1936 to the present. It was reported that the cost of the Bulb Program is
approximately $185,000 per year. In conjunction with the BWL's workforce reduction
and cost cutting plans, discontinuing the Bulb Center was recommended. Following
discussion, it was suggested that an announcement be prepared explaining the need to
eliminate the Light Bulb Center services.
The Personnel Committee offers the following resolution and recornrnends approval (see
General Manager's Recommendation#94-3-4):
Discontinue Light Bulb Program and
Employee Merchandise Program
(Resolution 94-3-4)
That the Light Bulb Program, encompassing free bulb services, retail bulb
sales, and the Employee Merchandise Program, be discontinued effective
July 1, 1994.
MOVED BY COMMISSIONER O'LEARY--
SECONDED BY COMMISSIONER WILLIAMS
Ken Vaughan of 114 Garden Street, Lansing, spoke on the proposed elimination of the
BWL Light Bulb Program. Mr. Vaughan urged that the free Light Bulb Program not be
discontinued. He stated that little things, such as free light bulbs, mean a lot to low-
income customers. He added that in his opinion the cost factor of$185,000 a year to
continue the program would not make a big difference to electric rates. He further stated
that discontinuing the program would affect the morale of customers who use the service.
Commissioner O'Leary explained that the decision to close the Light Bulb Center is not
being taken lightly. He noted that less than one-third of our customers are utilizing this
service, while the other two-thirds are subsidizing the program.
Commissioner Hassler thanked Mr. Vaughan for coming to express his views on this issue
He noted that the Board has deliberated the possibility of closing the Light Bulb Center on
four separate occasions. He added that the Board has been reluctant because of the
impact this decision would have on customers who use the service.
Page 27 Board Meeting Minutes
March 22. 1994
Personnel Committee Report (cont'd)
Following discussion, a roll call vote was taken.
Adopted by the following vote:
YEAS Commissioners Belen, Christian, Evans, Hassler, O'Leary, Strolle, Williams
NAYS: None
ABSENT: Commissioner Sebolt
General Manager Pandy told Mr. Vaughan that BWL management understands his
concern. He explained that discontinuing the Light Bulb Center is part of an overall cost-
cutting plan the BWL has designed to ensure our customers will continue to enjoy the
lowest electric rates in Michigan.
In response to Commissioners Strolle and Christian's inquiry on how the decision to close
the Light Bulb Center will be communicated to customers, Mr. Pandy said that an
announcement will be included in the April electric bills.
Commissioner O'Leary continued reading the Committee Report:
The Personnel Committee met again on March 17, 1994, to discuss the following items:
1. Tentative Union Contract Agreement
2. Rightsizing/Targeted Positions
Present were Personnel Committee Members Evans, O'Leary, Strolle, and Sebolt.
Also present were Commissioners Belen and Hassler.
Tentative Union Contract
General Manger Pandy reported that with mediation assistance on March 7th, a tentative
three-year settlement was reached with the IBEW Local 352 negotiating team. The
major issues resolved were reviewed in detail. A costibenefit analysis was presented
relative to total compensation. A ratification vote is scheduled for March 23, 1994. If
ratified by Local 352 members and the Board of Commissioners, the new contract would
be retroactive to November 1, 1993.
Board Meeting Minutes Page 28
March 22. 1994
Personnel Committee Report (cont'd)
Authorization to Approve Union Contract
(Resolution 94-3-11)
RESOLVED, That subject to IBEW Local 352 member ratification vote,
scheduled for March 23, 1994, the three-year agreement reached between
Management and the Union Negotiating Committee retroactive to
November 1, 1993, unless otherwise designated in the agreement, is hereby
approved. The labor agreement is to expire on October 31, 1996. An
executive summary of major issues resolved is attached (see Appendices
D-1 and D-2).
FURTHER RESOLVED, That the Chairman and Secretary be authorized
to sign the labor agreement incorporating the settlement changes.
BY COMMISSIONER O'LEARY--
SECONDED BY COMMISSIONER BELEN
Adopted unanimously.
Rightsizing
General Manager Pandy presented a detailed description on how the BWL plans to
implement its workforce reduction program. The "How To" scenarios developed by an
executive staff implementation task force for the BWL rightsizing efforts were outlined.
Following a question and answer period, a copy of the BWL Workforce Reduction
Program, as revised March 16, 1994, was handed out for reference.
The Personnel Committee offers the following resolution and recommends Board
approval
Authorization to Engage Consultants to Assist
in the Voluntary Workforce Reduction Program
(Resolution 93-3-3)
That the General Manager be authorized to implement a voluntary
workforce reduction program in substantial form, as set forth in the BWL
Workforce Reduction Program Report, dated March 23, 1994, and to
engage various consultants to assist in the voluntary workforce reduction
program.
Page 29 Board Meeting Minutes
March 22, 1994
Personnel Committee Report (cont'd)
The type of services to be provided include program development
consulting, management training, predecision group workshops, individual
financial consulting, individual career counseling, and individual out-
placement workshops on an as needed basis. These services will be
provided by several vendors over the next nine (9) months.
Total cost for all consulting services not to exceed $100,000.
BY COMMISSIONER WILLIAMS--
SECONDED BY CONURvIISSIONER EVAT3S
Adopted unanimously.
General Manager Pandy emphasized that the voluntary workforce reduction program has
been professionally crafted to treat the employees humanely. It is a totally voluntary plan;
the employees will make their own decision as to whether or not they wish to continue to
work or take the early retirement incentive or the voluntary separation incentive.
General Manager Pandy stated for the record that staff who crafted the voluntary
workforce reduction program options; namely, the Human Resources Director, the
Treasurer/Controller, and the General Manager are not eligible for either the early
retirement incentive or the voluntary separation incentive.
GENERAL MANAGER'S RECOMMENDATIONS
CONSUMER SERVICES
Res. No. 94-3-4
That the BWL's Free Light Bulb Service program be discontinued on July
1, 1994, and that customers be notified in advance to allow them to obtain
available bulbs before program is discontinued.
--------------------
As a part of ongoing cost containment efforts, discontinuing this program
will save over $185,000 per year and help to minimize electric rate
increases in the future.
--------------------
This item was adopted per the Personnel Committee Report (see page 26 of the minutes).
Board Meeting Minutes Page 30
March 22. 1994
General Manager's Recommendations (cont'd)
CORPORATE PLANNING
Res. No. 94-3-5
That a consulting contract for Automated Mapping/Facilities Management
(AM/FM) Engineering Services be awarded to Excellence in Managed
Automation (EMA) Services, Inc., St. Paul, Minnesota. The total price
including Option 2, external agency interview/assessment is not to exceed
$99,290 and is based on EMA Services, Inc. proposal dated January 13,
1994. Also, the BWL reserves the right to add, during the term of the
contract, Option. 1, Wide Area Network (WAN) Assessment, at a price not
to exceed $4,400.
--------------------
Award is based on a formal, point-based, best-evaluated bid process. EMA
Services, Inc. received the highest rating, with 92 of 100 total possible
points. The evaluation criteria emphasized past experience and references,
knowledge of existing AM/FM systems, cost, ability to comply with the
entire scope and timeline.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-3-5 be approved as submitted.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-3-6
That Jeff North, a Maintenance Mechanic Supervisor, and Cezar Libiran,
an Instrument & Control Technician for Water Production Maintenance,
each be awarded a total of$90.70 for suggestion proposal number 1993-
149, to install a pressure sensing device on the cistern pump casing at Dye
Water Plant with a visual/audible alarm to alert operator when the pump
loses suction so damage to pump is minimized.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$1,200 to the first year.
--------------------
Page 31 Board Meeting Minutes
March 22. 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER CHRISTIAN
That Resolution 94-3-6 be approved as submitted.
Adopted unanimously.
LEGAL
Res. No. 94-3-7
Purchase the following insurance coverage:
Public Officials and Employees Liability Insurance from Voss Insurance
Services representing the Mt. Airy Insurance Company for one (1) year at
an annual premium of$69,125 beginning April 27, 1994. This would
provide a limit of liability of$5 million and a retention of$50,000 per loss
or per insured individual.
--------------------
This selection is viewed as the best value.
The BWL's expiring coverage is with the Lyman and Sheets Agency
representing the Virginia Surety Company for $5 million at an annual
premium of$79,000.
The BWL also received bids from the Lyman and Sheets Agency
representing Virginia Surety Company, Inc., for $5 million for $70,058,
and Lansing Insurance Agency, representing American International
Special Lines Insurance Company, for $5 million for $88,740, including 2%
premium tax.
Renewal of this coverage will be negotiated for the next two (2) years.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER BELEN
That Resolution 94-3-7 be approved as submitted.
Adopted unanimously.
Board Meeting Minutes Page 32
March 22, 1994
General Manager's Recommendations (cont'd)
TREASURER/CONTROLLER
Res. No. 94-3-8
Authorize the purchase of an estimated 12 month requirement of cylinder
gases from Airco Gas and Gear, Lansing, Michigan, to the amount of
$61,420.20 as required for use in the Eckert and Erickson Stations
continuous monitoring systems. The contract period is from April 1, 1994
through March 31, 1995. Pricing is firm, and quantities will be released
only as required.
--------------------
The Airco Gas and Gear bid was the best evaluated bid. Scott Specialty
Gases, Troy, Michigan, submitted a bid in the amount of$93,331. AGA
Gas, Inc., Lansing, Michigan, submitted a bid of$100,289.
--------------------
RES. No. 94-3-9
Authorize the sale of obsolete Board-owned vehicles and equipment
through competitive bids. The items are BWL units 9328, 4332, #625,
4708, #774, and #795.
An itemized list is on file with the Corporate Secretary.
--------------------
Res. No. 94-3-10
Rate Changes
i. That the current Electric Econorac Development Ride, as ameiiued7
be renewed for five years to June 9, 1999.
2. That the date of the public hearing to solicit public input on the above
rate changes be set for Tuesday, May 10, 1994. This date could mean
a June 9, 1994 effective date for the proposed changes.
3. That Staff be directed to file the proposed rate changes and the
public hearing date with the City Clerk as required by the Lansing
City Charter on or before Friday, March 25, 1994.
--------------------
Page 33 Board Meeting Minutes
March 22. 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER CHRISTIAN
That Resolutions 94-3-8, 94-3-9, and 94-3-10, respectively, be approved.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Early Out D.-.ta-flis to be Com.m.unicated to Elinj&Vees. General Mianager Pancly
reported that he will be outlining the organization's voluntary workforce reduction
program to employees all day on March 23 through a series of meetings. His presentation
will include details on the early retirement and voluntary separation incentives and options
available to employees occupying targeted positions after the voluntary programs are
implemented. On March 24-25, the Division Directors will be announcing to their
departments the targeted positions to be phased out by July 1, 1999. He noted that
depending on organizational needs, targeted positions will be eliminated at various dates
between July 1, 1994 and July 1, 1999.
IBEW Local 352 Emaloyees to Vote on Tentative Labor Agreement. On Wednesday
evening, March 23, union employees will vote on a tentative three-year labor agreement.
General Manager Pandy commended the union for stepping up to the table, particularly
with respect to health care. A new medical health plan coverage under "M-Care" is part
of the tentative contract settlement. The M-Care Medical Health Plan combines the
resources of Michigan Capital Medical Center(formerly known as Ingham Medical Center
and Lansing General Hospital) and St. Lawrence Hospital and their affiliated physicians.
Mr. Pandy stated that M-Care provides a high quality health care program while also
allowing the BWL to control its health care costs. Both Bargaining and Non-Bargaining
employees will be eligible for enrollment in the M-Care plan.
REMARKS BY BOARD COMMISSIONERS
Commissioner Christian stated that from his experience with rightsizing, open
communication is the key to successfully implementing a voluntary workforce reduction
program. He praised Mr. Pandy and staff for the ongoing communications with
employees.
Commissioner Belen remarked that the manner in which Mr. Pandy will announce the
details of the voluntary workforce reduction program on March 23 is significant. She
noted that by having the same person delivering the program details through a series of
group meetings, it assures a consistent message to all employees.
Board Meeting Minutes Page 34
March 22. 1994
EXCUSED ABSENCES
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER BELEN
That the absence of Commissioner Sebolt be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 5:59 p.m.
Mary E. Sova, Secretary
Filed: March 25, 1994
Marilynn Slade, City Clerk
FY 99
EMPLOYEE REDUCTION BY PAYROLL CATEGORY
ADM PPM FLS C-T BU TOTAL
Administrative 1 3 0 0 0 4
Electric 0 16 7 11 6 40
Water 0 2 2 2. 5 11
Steam 0 0 0 0 1 1
Technical Services 0 7 2 10 11 30
Corporate Planning 1 0 a 2 -0 3
Communications/Marketing 0 0 0 0 0 0
Treasurer/Controller 0 3 0 4 2 9
Consumer Services 0 0 2 2 6 10
Human Resources 0 0 1 2 0 3
TOTAL 2 31 14 33 31 111
APPENDIX A-1
FY99
BWL EMPLOYEES
AUTH. POTENTIAL FY 99
RA AREA FY94 REDUCTIONS PROPOSED
100's Administrative 11 -4 7
200's` Electnc Utility 412 -40 372
300's` Water Utility 95 -11 84
350's` Steam Utility 23 - 1 22
400's' Technical Services 160 -30 130
480's' Corporate Planning 15 -3 12
485's' Communication/Marketing 9 0 g
500's Treasurer/Controller 47 -9 38
530's Consumer Services 115 -10 105
460's Human Resources 16 13
BWL TOTAL 903 -111 792
'Task Force Assignment
'w 4w�r%6WLSS.00c
APPENDIX A-2
WORKFORCE REAUCI C)N COST=NG
126 retirements and 26 Yii.res next 5 years
Retire Hire Net
Year 1 -70 25 -45
Year 2 O O 0
Year 3 -3 0 -3
Year 4 -27 0 -27
Yeas' 5 -26 1 -25
Totals -126 26 -100
3 _096 annual increase in wages_
Early retirement program 4 + 4 service and age
Penalty for early retirement retained
Paid retirement on new I4is
2ncreased pension cost paid over next 30 years
'rU=Cver savings for new hires is 15% net
Outside services to replace employees or
consultants involved are not included
AIQTIiUAL SAXr-MC-.S
Year 1 $2 , 166 , 337
Yeas' 2 $2 , 554, 640
Year 3 S2_ Z823 : 483
`Peas' 4 $4, 627, 060
Year 5+ $6 , 43-0, 112
Five Year Total $1L8 , 581 , 632
NPV <9� 7% $14, 661 , 022
Savings over noz- nal attrition is $93-6 , 709
APPENDIX-B
March 18, 1994
VOLUNTARY WORKFORCE RF.D1JC17ION PROGRAM OPTIONS
OPTIONS I: EARLY RETIREMENT PROGRAM
Eligible Group: Age 50 with 25 years of Pension Service Credits as of 8/31/94.
Age 55 with 15 years of Pension Service Credits as of 8/31/94.
Age 60 with any Pension Service Credit amount as of 8/31/94.
(Incentives do not change the eligible group)
Selection Window: May 1, 1994 to June 30, 1994
E ffQ�-1 W. September 1, 1994
IIIS&II$Yes: *I. Changes to Pension Benefit calculations
A. Add 4 years to Pension Service Credits.
B. Add 4 years to age.
II. Changes to cakarlations of Paid Retirement Allowance.
A. Add the additional years of service and age to the Paid Retirement
Allowance(PRA)formula.
B. PRA will be a minimum of 30 work days.
OPTION II: VOLUNTARY SEEPAlRA11ON PROGRAM
Eli ' le Ca=-. All Full Time Regular BWL employees.
Selection Window May 1, 1994 to June 30, 1994
Effective Date: September 1, 1994
Incentive: Pay 2 weeks of base regular compensation for each full year of Pension
Service Credit as of 8/31/94. Minimum of 9 weeks and a maximum of 48
weeks of severance pay. Basic Health Care Benefits at no cost to the
employee for six months.
EEL OYES OLF-r-LA CEMENT AND C0jjNSET IING user. 1.ry.CFS
Beginning April 1, 1994,employees will be provided group and individual counseling to assist
then in making career decisions. Counseling services provided will include:
A. Pre and Post Decision Counseling
B. Financial Planning
C. Retirement Planning
Outplacement and Counseling Services will be provided by Professional Agencies not affiliated
with the BWL
Employees may choose only one of the above o tinny
*As defined by the BWL 1990 Pension Plan,Section 7, "Amount of Pension",paragrdph 1.
VOTE: 1'ne Director and General Manager, Director of Human Resources and the
Treasurer/Controller are not eligible for Options I and II.
APPENDIX—C
SUMMARY OF TENTATIVE CONTRACT SETTLEMENT
November 1, 1993- October 31, 1996
This agreement is for three years and is retroactive to November 1, 1993.
I. Economic Changes
A. Wage Increases
11-01-93 - 10-31-94 3.3%
11-01-94- 10-31-95 3.0010
11-01-95- 10-31-96 3.07o
B. Shift Premium was increased 10 cents per hour.
C. Long Term Disability
BVIL wLl gay f--LM f-all ra6alar ftul-dine e4upioyees,effective date to be
determined.
D. Health Care
1. The BWL health care services will be provided by M-Care Point of Service Health
Plan effective 7-1-94.
2. Dental care services will be provided by Delta Dental.
3. BWL employees will not be allowed to duplicate BWL coverage or be eligible
for BWL cash in lieu of cash beams plan payment if covered by a BWL plan
as their alternate health coverage.
4. Domestic partnership agreements are excluded from BWL health care coverage.
E. Overtime
I. Overtime will be paid at 1.7 times
a. for up to 2 hours of scheduled overtime which is contiguous with the
regular work scheduled
b. for the first 8 hours of scheduled overtime on the first day off
c. when an employee is on a 12-hour shift schedule and the hours between
40 and 48 are a part of the employee's normal work week.
2. Overtime will be paid at 2 tunes
a. for any unscheduled overtime
b. after 2 hours scheduled overtime contiguous with regular work scheduled
c. for any unscheduled overtime on the first day
d. over 8 hours on the first scheduled overtime day
e. on the second overtime day
f. after 50 hours per week
g. on Sunday
h. on holidays when the holiday is a scheduled part of the employees'
normal work week
3. Overtime will be paid at 2&1/2 times
a. for any overtime beyond 12 hours continuous work
b. for overtime on the actual holiday if the holiday is not a scheduled part
of the employees'normal work week
F. Two-Persott Line Crews
To accommodate one person working in primary. Such specific
situations must be approved by the Joint Safety Committee,ratified by
those persons currently holding the position of Lineworker and must
be in keeping with industry practices. Two person line crews shall be
made up of two bargaining unit journeyworkers or a qualified
apprentice.
Summary of Contract Settlement
Page 2
G. Water Utility Wage Rates
The following classifications will be added to Attachment A-1 for employees hired in or
after 11-01-93: Equipment Operator C,Mechanic C,and Water Station B Operator.
E Lineworker Apprenticeship
Process training hours were increased to 8,000 hours.
II. Other Issues
A. Policy Statements
1. All bargaining unit entry level job vacancies will be posted on all bulletin boards.
2. BWL Voluntary Work Reduction program will be offered to bargaining unit
employees effective 11-1-93.
B. Leave of Absence
1. Bargaining unit employees having vacation credits may transfer such time to co-
workers who have exhausted all benefits and are on an approved leave of absence due
to sickness.
2. An employee on non-cornpensable illness or injury leave shall lose seniority
when the leave equals the empioyee's pre-leave seniority,but not to exceed 2 years.
3. An employee returning to work from a leave shall not have such time count toward
the maximum leave should the employee reran to leave status within 30 days.
4. 30 days after returrung from a leave,vacation and free choice will be granted and
accrued according to a normal return to work from leave of absence.
5. An employee returning from a leave for a temporary assignment will be paid at the
rate of the temporary ciassifrcation.
C. Share the Success
The purchase of Vacation and Free Choice will be limited to 10 total days to include
no more than 2 Free Choice days. The employee Options Committee will
recommend scheduling rules for purchased time.
D. Sexual orientation was added to the Anti-Discrimination Section.
E. Employees transferrin¢iwo the bargaining unit will establzsir smiornty on the date of
transfer after successful completion of the probationary period.
F. Employees will be paid at straight-time rate for jury duty service.
G. The safety shoe allowance will be limited to 1 pair of safety shoes every 12 months.
E Combination of Classifications:
1. Distribution Control Specialist and Stock Control Specialist are combined and
reclassified as Stock Distribution Specialist.
2. Electrician(EM&M,power plant,Water Production),Distribution Equipment
Tester,Transformer Repair Specialist are combined and reclassified as Electrician.
I. Pre-apprenticeship Pool
1. Journeyworkers qualify for apprenticeship openings in the same group as their
trade and any lower group.
2. The assessment process will be conducted 3 times per year.
Page23 0�-25-94P02 : 51 RCVD
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, March 22, 1994
The Board of Commissioners met in regular session at 5:30 p.m., in the Main Office
Building, 123 West Ottawa Street, Lansing, Michigan. The meeting was called to order
by Chairman Hassler.
Present: Commissioners Belen, Christian, Evans, Hassler, O'Leary, Strolle,
and Williams -7
Absent: Commissioner Sebolt -1
The Secretary declared a quorum present.
The Invocation was delivered by Chairman Hassler in memory of BWL retiree A. Cliff
Hand who passed away on March 22, 1994. Mr. Hand retired on August 1, 1982, with 41
years of service at the BWL.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER WILLIAMS
That minutes of regular session of February 22, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL
BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS
REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN
FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO
COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS
TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
Board Meeting Minutes Page 24
March 22, 1994
COMMUNICATIONS AND PETITIONS
None.
PERSONNEL COMMITTEE REPORT
In the absence of Commissioner Sebolt, Commissioner O'Leary presented the highlights of
the Personnel Committee Report. The Board considered each resolution after it was read.
PERSONNEL COMMITTEE
Jack R. Sebolt, Chair
Eva Evans
David O'Leary
John Strolle
The Personnel Committee met on February 24, 1994, to discuss the following matters:
1. Pension Fund Investments
2. Executive Staff Functional Analysis Report
Present were Personnel Committee Members Evans, O'Leary, and Sebolt (Chair). Also
present were Commissioners Belen, Christian, Hassler, and Williams. Absent was
Commissioner Strolle.
Pension Plan Investment Review
The Pension Fund investments for the period covering October 1, 1993, through
December 31, 1993, were reviewed in detail. The Personnel Committee's
recommendation has been submitted to the Pension Fund Trustees for action.
ICMA 401A Money Purchase Plan
General Manager Joe Pandy reported that the ICMA-RC has developed a loan package
which could be added to the BWL's 401A Money Purchase Plan & Trust Agreement,
adopted July 1, 1988. At that time, management had expressed an interest to implement a
loan provision to be administered by ICMA as soon as a program was developed. The
Committee reviewed a copy of the ICMA loan guidelines and discussed the pros and cons.
The Personnel Committee offers the following resolution and recommends Board
approval:
Page 27 Board Meeting Minutes
March 22, 1994
Personnel Committee Report (cont'd)
Following discussion, a roll call vote was taken.
Adopted by the following vote:
YEAS Commissioners Belen, Christian, Evans, Hassler, O'Leary, Strolle, Williams
NAYS: None
ABSENT: Commissioner Sebolt
General Manager Pandy told Mr. Vaughan that BWL management understands his
concern. He explained that discontinuing the Light Bulb Center is part of an overall cost-
cutting plan the BWL has designed to ensure our customers will continue to enjoy the
lowest electric rates in Michigan.
In response to Commissioners Strolle and Christian's inquiry on how the decision to close
the Light Bulb Center will be communicated to customers, Mr. Pandy said that an
announcement will be included in the April electric bills.
Commissioner O'Leary continued reading the Committee Report:
The Personnel Committee met again on March 17, 1994, to discuss the following items:
1. Tentative Union Contract Agreement
2. Rightsizing/Targeted Positions
Present were Personnel Committee Members Evans, O'Leary, Strolle, and Sebolt.
Also present were Commissioners Belen and Hassler.
Tentative Union Contract
General Manger Pandy reported that with mediation assistance on March 7th, a tentative
three-year settlement was reached with the IBEW Local 352 negotiating team. The
major issues resolved were reviewed in detail. A costibenefit analysis was presented
relative to total compensation. A ratification vote is scheduled for March 23, 1994. If
ratified by Local 352 members and the Board of Commissioners, the new contract would
be retroactive to November 1, 1993.
Board Meeting Minutes Page 28
March 22, 1994
Personnel Committee Report (cont'd)
Authorization to Approve Union Contract
(Resolution 94-3-11)
RESOLVED, That subject to IBEW Local 352 member ratification vote,
scheduled for March 23, 1994, the three-year agreement reached between
Management and the Union Negotiating Committee retroactive to
November 1, 1993, unless otherwise designated in the agreement, is hereby
approved. The labor agreement is to expire on October 31, 1996. An
executive summary of major issues resolved is attached (see Appendices
D-1 and D-2).
FURTHER RESOLVED, That the Chairman and Secretary be authorized
to sign the labor agreement incorporating the settlement changes.
BY COMMISSIONER O'LEARY--
SECONDED BY COMMISSIONER BELEN
Adopted unanimously.
Rightsizing
General Manager Pandy presented a detailed description on how the BWL plans to
implement its workforce reduction program. The "How To" scenarios developed by an
executive staff implementation task force for the BWL rightsizing efforts were outlined.
Following a question and answer period, a copy of the BWL Workforce Reduction
Program, as revised March 16, 1994, was handed out for reference.
The Personnel Committee offers the following resolution and recommends Board
approval:
Authorization to Engage Consultants to Assist
in the Voluntary Workforce Reduction Program
(Resolution 93-3-3)
That the General Manager be authorized to implement a voluntary
workforce reduction program in substantial form, as set forth in the BWL
Workforce Reduction Program Report, dated March 23, 1994, and to
engage various consultants to assist in the voluntary workforce reduction
program.
Page 29 Board Meeting Minutes
March 22, 1994
Personnel Committee Report (cont'd)
The type of services to be provided include program development
consulting, management training, predecision group workshops, individual
financial consulting, individual career counseling, and individual out-
placement workshops on an as needed basis. These services will be
provided by several vendors over the next nine (9) months.
Total cost for all consulting services not to exceed $100,000.
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER EVANS
Adopted unanimously.
General Manager Pandy emphasized that the voluntary workforce reduction program has
been professionally crafted to treat the employees humanely. It is a totally voluntary plan;
the employees will make their own decision as to whether or not they wish to continue to
work or take the early retirement incentive or the voluntary separation incentive.
General Manager Pandy stated for the record that staff who crafted the voluntary
workforce reduction program options; namely, the Human Resources Director, the
Treasurer/Controller, and the General Manager are not eligible for either the early
retirement incentive or the voluntary separation incentive.
GENERAL MANAGER'S RECOMMENDATIONS
CONSUMER SERVICES
Res. No. 94-3-4
That the BWL's Free Light Bulb Service program be discontinued on July
1, 1994, and that customers be notified in advance to allow them to obtain
available bulbs before program is discontinued.
--------------------
As a part of ongoing cost containment efforts, discontinuing this program
will save over $185,000 per year and help to minimize electric rate
increases in the future.
--------------------
This item was adopted per the Personnel Committee Report (see page 26 of the minutes).
Board Meeting Minutes Page 30
March 22, 1994
General Manager's Recommendations (cont'd)
CORPORATE PLANNING
Res. No. 94-3-5
That a consulting contract for Automated Mapping/Facilities Management
(AM/FM) Engineering Services be awarded to Excellence in Managed
Automation (EMA) Services, Inc., St. Paul, Minnesota. The total price
including Option 2, external agency interview/assessment is not to exceed
$99,290 and is based on EMA Services, Inc. proposal dated January 13,
1994. Also, the BWL reserves the right to add, during the term of the
contract, Option 1, Wide Area Network (WAN) Assessment, at a price not
to exceed $4,400.
--------------------
Award is based on a formal, point-based, best-evaluated bid process. EMA
Services, Inc. received the highest rating, with 92 of 100 total possible
points. The evaluation criteria emphasized past experience and references,
knowledge of existing AM/FM systems, cost, ability to comply with the
entire scope and timeline.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER EVANS
That Resolution 94-3-5 be approved as submitted.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-3-6
That Jeff North, a Maintenance Mechanic Supervisor, and Cezar Libiran,
an Instrument & Control Technician for Water Production Maintenance,
each be awarded a total of$90.70 for suggestion proposal number 1993-
149, to install a pressure sensing device on the cistern pump casing at Dye
Water Plant with a visuaUaudible alarm to alert operator when the pump
loses suction so damage to pump is minimized.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$1,200 in the first year.
--------------------
Page 31 Board Meeting Minutes
March 22, 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER CHRISTIAN
That Resolution 94-3-6 be approved as submitted.
Adopted unanimously.
LEGAL
Res. No. 94-3-7
Purchase the following insurance coverage:
Public Officials and Employees Liability Insurance from Voss Insurance
Services representing the Mt. Airy Insurance Company for one (1) year at
an annual premium of$69,125 beginning April 27, 1994. This would
provide a limit of liability of$5 million and a retention of$50,000 per loss
or per insured individual.
--------------------
This selection is viewed as the best value.
The BWL's expiring coverage is with the Lyman and Sheets Agency
representing the Virginia Surety Company for $5 million at an annual
premium of$79,000.
The BWL also received bids from the Lyman and Sheets Agency
representing Virginia Surety Company, Inc., for $5 million for $70,058,
and Lansing Insurance Agency, representing American International
Special Lines Insurance Company, for$5 million for $88,740, including 2%
premium tax.
Renewal of this coverage will be negotiated for the next two (2) years.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER BELEN
That Resolution 94-3-7 be approved as submitted.
Adopted unanimously.
Board Meeting Minutes Page 32
March 22, 1994
General Manager's Recommendations (cont'd)
TREASURER/CONTROLLER
Res. No. 94-3-8
Authorize the purchase of an estimated 12 month requirement of cylinder
gases from Airco Gas and Gear, Lansing, Michigan, in the amount of
$61,420.20 as required for use in the Eckert and Erickson Stations
continuous monitoring systems. The contract period is from April 1, 1994
through March 31, 1995. Pricing is firm, and quantities will be released
only as required.
--------------------
The Airco Gas and Gear bid was the best evaluated bid. Scott Specialty
Gases, Troy, Michigan, submitted a bid in the amount of$93,331. AGA
Gas, Inc., Lansing, Michigan, submitted a bid of$100,289.
--------------------
RES. No. 94-3-9
Authorize the sale of obsolete Board-owned vehicles and equipment
through competitive bids. The items are BWL units#328, #332, 9625,
#708, #774, and #795.
An itemized list is on file with the Corporate Secretary.
--------------------
Res. No. 94-3-10
Rate Changes
1. That the current Electric Economic Development Rider, as amended,
be renewed for five years to June 9, 1999.
2. That the date of the public hearing to solicit public input on the above
rate changes be set for Tuesday, May 10, 1994. This date could mean
a June 9, 1994 effective date for the proposed changes.
3. That Staff be directed to file the proposed rate changes and the
public hearing date with the City Clerk as required by the Lansing
City Charter on or before Friday, March 25, 1994.
--------------------
Page 33 Board Meeting Minutes
March 22, 1994
General Manager's Recommendations (cont'd)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER CHRISTIAN
That Resolutions 94-3-8, 94-3-9, and 94-3-10, respectively, be approved.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Early Out Details to be Communicated to Employees. General Manager Pandy
reported that he will be outlining the organization's voluntary workforce reduction
program to employees all day on March 23 through a series of meetings. His presentation
will include details on the early retirement and voluntary separation incentives and options
available to employees occupying targeted positions after the voluntary programs are
implemented. On March 24-25, the Division Directors will be announcing to their
departments the targeted positions to be phased out by July 1, 1999. He noted that
depending on organizational needs, targeted positions will be eliminated at various dates
between July 1, 1994 and July 1, 1999.
IBEW Local 352 Employees to Vote on Tentative Labor Agreement. On Wednesday
evening, March 23, union employees will vote on a tentative three-year labor agreement.
General Manager Pandy commended the union for stepping up to the table, particularly
with respect to health care. A new medical health plan coverage under "M-Care" is part
of the tentative contract settlement. The M-Care Medical Health Plan combines the
resources of Michigan Capital Medical Center (formerly known as Ingham Medical Center
and Lansing General Hospital) and St. Lawrence Hospital and their affiliated physicians.
Mr. Pandy stated that M-Care provides a high quality health care program while also
allowing the BWL to control its health care costs. Both Bargaining and Non-Bargaining
employees will be eligible for enrollment in the M-Care plan.
REMARKS BY BOARD COMMISSIONERS
Commissioner Christian stated that from his experience with rightsizing, open
communication is the key to successfully implementing a voluntary workforce reduction
program. He praised Mr. Pandy and staff for the ongoing communications with
employees.
Commissioner Belen remarked that the manner in which Mr. Pandy will announce the
details of the voluntary workforce reduction program on March 23 is significant. She
noted that by having the same person delivering the program details through a series of
group meetings, it assures a consistent message to all employees.
Board Meeting Minutes Page 34
March 22, 1994
EXCUSED ABSENCES
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER BELEN
That the absence of Commissioner Sebolt be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 5:59 p.m.
Mary E. Sova, Secretary
Filed: March 25, 1994
Marilynn Slade, City Clerk
FY 99
EMPLOYEE REDUCTION BY PAYROLL CATEGORY
ADM PPM FLS C-T BU TOTAL
Administrative 1 3 0 0 0 4
Electric 0 16 7 11 6 40
Water 0 2 2 2. 5 11
Steam 0 0 0 0 1 1
Technicai Services 0 7 2 10 11 30
Corporate Planning 1 0 -0 2 -0 3
CommunicationsiMarketing 0 0 0 0 0 0
Treasurer/Controller 0 3 0 4 2 9
Consumer Services 0 0 2 2 6 10
Human Resources Q 0 1 -a 0 3
TOTAL 2 31 14 33 31 111
APPENDIX A-1
FY99
BWL EMPLOYEES
AUTH. POTENTIAL FY 99
RA AREA FY94 REDUCTIONS PROPOSED
100's Administrative 11 -4 7
200's' Electric Utility 412 -40 372
300's' Water Utility 95 -11 84
350's` Steam Utility 23 - 1 22
400's` Technical Services 160 -30 130
480's` Corporate Planning 15 -3 12
485's` CommunicationiMarketing 9 0 9
500's Treasurer/Controller 47 -9 38
530's Consumer Services 115 -10 105
460's Human Resources 15- -_-a
13
BWL TOTAL 903 -111 792
'Task Force Assignment
APPENDIX A-2
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March 18, 1994
VOLUNTARY WORKFORCE RFDUCTION PROGRAM OPTIONS
OPTIONS I: EARLY RETIREMENT PROGRAM
Eligible Group: Age 50 with 25 years of Pension Service Credits as of 8/31/94.
Age 55 with 15 years of Pension Service Credits as of 8/31/94.
Age 60 with any Pension Service Credit amount as of 8/31/94.
(Incentives do not change the eligible group)
Selection Window: May 1, 1994 to June 30, 1994
Effective Date: September 1, 1994
Incentives *I. Changes to Pension Benefit calculations
A. Add 4 years to Pension Service Credits.
B. Add 4 years to age.
II. Changes to calculations of Paid Retirement Allowance.
A. Add the additional years of service and age to the Paid Retirement
Allowance(PRA)formula.
B. PRA will be a minimum of 30 work days.
OPTION II: VOLUNTARY SEPARATION PROGRAM
Eligible Q uR: All Full Time Regular BV&employees.
Selection Window May 1, 1994 to June 30, 1994
Effective Date: September 1, 1994
Incentive: Pay 2 weeks of base regular compensation for each full year of Pension
Service Credit as of 8/31/94. Minimum of 9 weeks and a maximum of 48
weeks of severance pay. Basic Health Care Benefits at no cost to the
employee for six months.
EMPLOYEE OUTPLACEMENT AND COUNSELING SERVICES
Beginning April 1, 1994,employees will be provided group and individual counseling to assist
them in making career decisions. Counseling services provided will include:
A. Pre and Post Decision Counseling
B. Financial Planning
C. Retirement Planning
Outplacement and Counseling Services will be provided by Professional Agencies not affiliated
with the BWL
Employ=may choose only one of the above o tin •orra.
*As defined by the BWL 1990 Pension Plan,Section 7, "Amount of Pension",paragraph 1.
NOTE: Tne Director and General Manager, Director of Human Resources and the
Treasurer/Controller are not eligible for Options I and II.
APPENDIX-C
SUMMARY OF TENTATIVE CONTRACT SETTLEMENT
November 1, 1993- October 31, 1996
This agreement is for three years and is retroactive to November 1, 1993.
I. Economic Changes
A- Wage Increases
11-01-93- 10-31-94 3.3%
11-01-94- 10-31-95 3.0010
11-01-95- 10-31-96 3.0010
B. Shift Premium was increased 10 cents per hour.
C. Long Term Disability
BWL will pay for LTD for all regular full-time employees,effective date to be
determined
D. Health Care
1. The BWL health care services will be provided by M-Care Point of Service Health
Plan effective 7-1-94.
2. Dental care services will be provided by Delta Dental.
3. BWL employees will not be allowed to duplicate BWL coverage or be eligible
for BWL cash in lieu of cash benefits plan payment if covered by a BWL plan
as their alternate health coverage.
4. Domestic partnership agreements are excluded from BWL health care coverage.
E. Overtime
1. Overtime will be paid at 1.7 times
a. for up to 2 hours of scheduled overtime which is contiguous with the
regular work scheduled
b. for the first 8 hours of scheduled overtime on the first day off
c. when an employee is on a 12-hour shift schedule and the hours between
40 and 48 are a part of the employee's normal work week.
2. Overtime will be paid at 2 times
a. for any unscheduled overtime
b. after 2 hours scheduled overtime contiguous with regular work scheduled
c. for any unscheduled overtime on the first day
d. over 8 hours on the first scheduled overtime day
e. on the second overtime day
f. after 50 hours per week
g. on Sunday
h. on holidays when the holiday is a scheduled part of the employees'
normal work week.
3. Overtime will be paid at 2&1/2 times
a. for any overtime beyond 12 hours continuous work
b. for overtime on the actual holiday if the holiday is not a scheduled part
of the employees'normal work week
F. Two-Person Line Crews
To accommodate one person working in primary. Such specific
situations must be approved by the Joint Safety Committee,ratified by
those persons currently holding the position of Lineworker and must
be in keeping with industry practices. Two person line crews shall be
made up of two bargaining unit journeyworkers or a qualified
apprentice.
"APPENDIX—D=1"
Summary_ of Contract Settlement
Page 2
G. Water Utility Wage Rates
The following classifications will be added to Attachment A-1 for employees hired in or
after 11-01-93: Equipment Operator C,Mechanic C,and Water Station B Operator.
E Lineworker Apprenticeship
Process training hours were increased to 8,000 hours.
II. Other Issues
A. Policy Statements
1. All bargaining unit entry level job vacancies will be posted on all bulletin boards.
2. BWL Voluntary Work Reduction program will be offered to bargaining unit
employees effective 11-1-93.
B. Leave of Absence
1. Bargaining unit employees having vacation credits may transfer such time to co-
workers who have exhausted all benefits and are on an approved leave of absence due
to sickness.
2. An employee on non-c ompensable illness or injury leave shall lose seniority
when the leave equals the employee's pre-leave seniority,but not to exceed 2 years.
3. An employee returning to work from a leave shall not have such time count toward
the maximums leave should the employee return to leave status within 30 days.
4. 30 days after returning from a leave,vacation and free choice will be granted and
accrued according to a normal return to work from leave of absence.
5. An employee returning from a leave for a temporary assignment will be paid at the
rate of the temporary classification.
C. Share the Success
The purchase of Vacation and Free Choice will be limited to 10 total days to include
no more than 2 Free Choice days. The employee Options Committee will
recommend scheduling rules for purchased time.
D. Sexual orientation was added to the Anti-Discrimination Section
E. Employees transferring into the bargaining unit will establish seniority on the date of
transfer after successful completion of the probationary period.
F. Employees will be paid at straight-time rate for jury duty service.
G. The safety shoe allowance will be limited to 1 pair of safety shoes every 12 months.
H. Combination of Classifications:
1. Distribution Control Specialist and Stock Control Specialist are combined and
reclassified as Stock Distribution Specialist.
2. Electrician(EM&M,power plant,Water Production),Distribution Equipment
Tester,Transformer Repair Specialist are combined and reclassified as Electrician
I. Pre-apprenticeship Pool
1. Journeyworkes qualify for apprenticeship openings in the same group as their
trade and any lower group.
2. The assessment process will be conducted 3 times per year.
3-8-94 APPENDIX D-2"
02-25-94P'12 : 0I RCVD
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, February 22, 1994
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, Christian, Hassler, O'Leary Sebolt,
and Williams -6
Absent: Commissioners Evans and Strolle -2
The Secretary declared a quorum present.
The Invocation was delivered 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 January 25, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL
BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS
REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN
FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO
COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS
TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
Board Meeting Minutes Page 17
February 22, 1994
COMMUNICATIONS AND PETITIONS
A thank you card was received from Commissioner Sister Mary Janice Belen, R.S.M., for
flowers sent after her surgery on January 28.
Placed on file.
REPORTS OF COMMITTEE
None
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-2-1
That the Board approve Amendment No. 5 to C-7615 Transportation
Contract with Norfolk Southern Railroad (NS) and Grand Trunk Western
Railroad (GTW), subject to approval as to form by the BWL's Legal
Counsel.
This Amendment No. 5 will provide for shipment of coal from the Thacker
II origin rate district. The Thacker II rate is $0.50/ton higher than the
Kenova and Thacker I rate districts currently listed in our contract.
--------------------
By amending this contract with Norfolk Southern and Grand Trunk
Western, the BWL will be able to expand its base of Spot coal suppliers on
the Norfolk Southern. This will ensure that Spot coal opportunities are
maximized.
--------------------
BY COMNIISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-2-1 be approved as submitted.
Adopted unanimously.
Page 18 Board Meeting Minutes
February 22,1994
HUMAN RESOURCES
Res. No. 94-2-2
The Leave of Absence Policy has been updated to include additional
information regarding Leave of Absence procedures including information
on the Family and Medical Leave Act of 1993.
Therefore, the Leave of Absence Policy, as adopted by the Board on April
14, 1975, and as changed in September 28, 1982 and September 25, 1990,
be approved to include the attached changes, in compliance with the Family
Medical Leave Act of 1993.
Further, that the Director and General Manager be directed to establish
written procedures to be in compliance with the Family Medical Leave Act
of 1993 and covering the leaves for Injury and Illness, Personal Business,
Military Service, and Military Reserve Leaves.
--------------------
See attached Family Medical Leave Policy with amendments. New
wording is in bold italics and deletions are shown as stiikethr-eugh.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-2-2 be approved as submitted.
Adopted unanimously.
PENSION
Res. No. 94-2-3
That Morgan L. Beard, Building Maintenance General Supervisor, be
placed on a pension of$2,237.85 per month effective January 2, 1994. He
has selected Option III with the provision that after his death, if his wife,
Judy B. Beard, survives him she will receive 80% or $1,790.28 per month
for the rest of her life as provided under Option III.
--------------------
Mr. Beard worked for the BWL for 37.32 years and is 62 years of age.
--------------------
Board Meeting Minutes Page 19
February 22. 1994
PENSION (continued)
Res. No. 94-2-4
That Kathryn F. Templeton, Open Account Collection Supervisor in
Customer Service, be placed on a disability pension of$1,875.18 per
month effective January 13, 1994. She has selected Option VI with the
provision that after her death, if her husband, Norther Templeton, survives
her he will receive 15% or $281.28 per month for the rest of his life as
provided under Option VI. If her husband predeceases her, the pension
amount of$1,875.18 will revert back to the regular pension amount of
$1,911.23 for the rest of her life.
--------------------
Mrs. Templeton has worked for the BWL for 29.56 years and is 56 years
of age.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-2-3 and 94-2-4 be approvd as submitted.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-2-5
Authorize purchase of the estimated 12 month requirement of system lamps
(approximately 28,785 lamps) covering the period from March 1, 1994
through February 28, 1995, from Michigan Electric Supply Co., Lansing,
Michigan, in the amount of$70,579.48. Pricing is firm through the
contract period. All materials to be released only as required.
--------------------
The other bidders were Kendall Electric, Inc. ($73,859.91), Westinghouse
Electric Supply Co. ($78,456.26), Graybar Electric Co. ($80,428.11),
Standard Electric Co. ($82,470.78) and All Phase Electric Supply Co.
($84,473.67).
W. W. Grainger, General Electric Co., Philips Lighting Co., and OSRAM
Sylvania were invited to bid but declined.
--------------------
Page 20 Board Meeting Minutes
February 22.1994
TREASURER/CONTROLLER (continued)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER BELEN
That Resolution 94-2-5 be approved as submitted.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items.-
Active Coal Inventory Report: With the recent moderation in weather and aggressive
pursuit of railroads and coal suppliers, an active inventory of approximately 200 train cars
of coal has been accumulated. A contractor also successfully dynamited the frost crust
along the outer perimeter of the Erickson Station coal pile. This enabled the coal handlers
to gain access to the coal pile. An article in the most recent issue of Watts & Drops
highlights activities of BWL employees during the extremely cold weather in February.
A Former Emplovee Writes to the City Council. A copy of a letter, dated February 17,
1994, sent to the Lansing City Council by Martha Sproul asking for oversight of the BWL
was handed out for information.
BWL Receives Environmental Awareness Plaque. The BWL received the Greater
Lansing Home Builders Association's Outstanding Achievement Award for Environmental
Awareness for 1993. This a.,ard is based or,t1 e B`NIL's recycling program. Mr. Pandy
congratulated Suellen Hozman of Purchasing for her efforts in overseeing the BWL's
recycling program.
BWL Receives Honorable Mention in APPA's Safetv Contest. The BWL received an
Honorable Mention award in Group F of the American Public Power Association's
(APPA) 1993 Safety Contest. The Group F category represents electric systems with 1 to
2 million worker-hours of annual exposure. Congratulations were given to Human
Resources Director Mark Vander Jagt, his safety staff, and the entire BWL organization
for a good year on safety.
Board Meeting Minutes Page 21
February 22, 1994
Letter to Grand Pointe Residents Retarding River Levels. A copy of a letter sent to
residents in the Grand Pointe area from Jack Hill, Superintendent of Eckert Station, dated
February 18, 1994, was handed out for information. The letter informs residents that with
spring nearly approaching, there is a potential for flooding in the Grand Pointe area. The
BWL maintains the water level immediately behind the dam at 833.4 feet above sea level,
plus or minus .2 feet on a year-around basis. The river has several areas that can cause
water flow restrictions due to ice jams. This condition holds back the water while the
water level at the Moores Park Dam can actually remain normal. The BWL will do
everything possible to keep the water level at the Moores Park Dam from exceeding the
normal level.
Return on Equity Payment to the City. A copy of a letter sent to Doug Rubley--City
Finance Department--from Dana Tousley, dated February 16, 1993, was handed out for
information. The letter provides estimates of the BWL Return on Equity payment to the
City for budgeting purposes.
Lucile Belen to be Honored. An event "A Bouquet for Lucile" is being planned by
community leaders to pay tribute to Lucile Belen for her thirty-seven years of service to
the City of Lansing and its residents as a councilmember at-large. Joe Pandy noted that
Lucile Belen has been an active supporter of public power and invited all Commissioners
to attend..
REMARKS BY BOARD COMMISSIONERS
On behalf of the Board, Commissioners Sebolt and Williams asked Joe Pandy to express
the Board's appreciation to BWL employees for exemplary efforts in maintaining utility
services to all affected customers during severely cold weather conditions.
Commissioner O'Leary asked for clarification on the bid tabulation for Medical Health
Care. He noted that the bid results were difficult to interpret. Human Resources Director
Mark Vander Jagt responded that the bid quotations are currently being evaluated. There
are various issues that need to be addressed before an award decision can be made.
Commissioner O'Leary reported that organizers of"A Bouquet for Lucile" are recruiting
corporate sponsors to help offset expenses for this function. Following discussion, there
was unanimous consent that it would be appropriate for the BWL to participate as a
corporate sponsor.
Commissioner Hassler asked that the letter sent to the City Council by former employee,
Martha Sproul, be forwarded to her attorney.
Page 22 Board Meeting Minutes
February 22.1994
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER CMSTIAN
That the absences of Commissioners Evans and Strolle be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 5:51p.m.
Ma E. ecretary
Filed• February 24, 1994
Marilynn Slade, City Clerk
fiTipCgMElYT Re: Resoiution 94-2-2
BOARD OF WATER AND LIGHT FAMILY MEDICAL LEAVE POLICY
General Leaves of Absence
In general, a Leave of Absence(LOA) is considered a privilege. In no i=twtees
leave.ford, ffi, M�%Jllatf)rleqvesting the A Leave of Absence must be requested
by the employee in writing, setting forth the reasons for requesting the leave. The
Board of Water and Light(BWL) requires a Leave of Absence any time the employee is
in an excused unpaid status that is consecutive and greater than 80 hours in duration.
Failure to apply for a Leave of Absence may place the employee in an unexcused
unpaid statute
In granting a Leave of Absence, the employee's service record and circumstances
requiring the leave will be considered. A Leave of Absence is normally granted in order
to protect the length of service and benefit rights for an employee whose services might
otherwise be terminated.
An employee who gives false reasons for obtaining a Leave of Absence or who
accepts employment elsewhere while on a Leave of Absence, or who is self-employed
for the purpose of making a profit during a Leave of Absence without prior notice to the
Board of Water and Light's Human Resources and approval of the Board of Water and
Light's General Manager, shall have the leave terminatedl cancelled and be terminated
from employment.
Board of Water m,d Light theiT normai enipioyee portion of the eest for heafth and iife
White on Leave of Absence,your health and life insurance benefits will
continue. Any of your benefits which had payroll deductions (Vision, UNUM Life or
LTD, etc.) will continue as long as you reimburse the Board of Water and Light for
those costs. Ifyou have elected such benefits, General AccountinglPayroll Dept will
bill you periodically for those expenses. Should you wish to verify the amount of any
copays,you can check your last few pay stubs or call the Benefits Section at 371-6262.
It is understood that Leaves of Absence for Bargaining Unit employees, except
for Public or Community Service Leaves, are covered in the Labor Agreement between
the Board of Water and Light and Local Union 352 of the I.B.E.W.
The Family and Medical Leave Act of 1993
It is understood that the Board of Water and Light's Leave of Absence policv
will comply with the Family Medical Leave Act of 1993 (FMLA) P.L. 103-3 as
amended from time to time. In addition, the Board of Water and Light may grant
certain additional rights which are stated in this LOA policy or as explained in
excerpts taken from 77ie Family and Medical Leave Act of 1993, For clarification
purposes the FMLA may effect the Injury or Illness and Personal Leave sections of the
Board LOA policv. In general, the FMLA provides specific definition of family and
FMLA cont.
Page 2 of 6
serious health conditions. Minimum Leave requirements are defined as well as notice
to the employee on appropriate required documentation for the Leave, and employment
and benefit protection rights are described.
Summary of the Family and Medical Leave Act of 1993
The following excerpts are provided as a section by section brief explanation of the
Act:
TITLE I- General Requirements for Leave
Section 101: Definitions
The law also includes broad definitions of the terms "parent"and "son or daughter. "
The term "son or daughter" is defined as "biological, adopted, or foster child, a step
chip legal ward, or a child of a person standing in loco parentis. " It was intended
"that the terms 'parent'and 'son or daughter'be broadly construed to ensure that an
employee who actually has day-today responsibility for caring for a child is entitled to
leave even if the employee does not have a biological or legal relationship to that
child " The term son or daughter also is specifically defined to include not only
children under the age of 18, but children above that age who are "incapable of sel f-
care because of mental or physical disability. "
"Serious health condition" is defined as "an illness, injury, impairment, or physical or
mental condition" involving either inpatient care or continuing treatment by a health
care provider.
Section 102: Leave Requirement
An eligible employee is entitled up to 12 unpaid work weeks of leave during any 12-
month period for three reasons:
I. Because of the birth or placement for adoption or foster care of a child Leave may
be taken for birth or placement of a child only within 12 months of that birth or
placement, or
2. Because of the serious health condition of a spouse, chip or parent; or
3 Because of the employee's own serious health condition.
The act allows employers to require employees to first use their paid vacation,personal
or sick leave for any part of the 12-week period. If paid leave is used by an employee,
the employer is required to provide only enough unpaid leave to total 12 weeks.
In the case of leave for birth or placements of a child an employee must provide 30
days'advance notice before the date on which the leave would begin. If the employee
is unable to provide 30 days'notice, he or she must provide "such notice as is
practicable. "
FMLA cont.
Page 3 of 6
If spouses employed by the same employer wish to take leave to care for a newly
arrived child or a sick parent, their aggregate leave is limited to lZ weeks. If the leave
is requested because of the illness of a child or of the other spouse, each spouse is
entitled to 12 weeks of leave.
Section 104: EmpLQyment and Benefits Protection
In general, an employee who completes a period of leave is to be returned either to the
same position he or she had before or to a position equivalent in pay, benefits, and
other terms and conditions of employment Leave is not to result in the loss of any
previously accrued seniority or employment benefits, but neither are any benefits
required to accrue during the leave.
Health benefits continue through an employee's leave. An employer may recover
health coverage premiums paid for an employee who fails to return from leave, except
if the reason is the continuation, recurrence, or onset of a serious health condition, or
something else beyond the employee's control: This is subject to certification.
Injury or Illness Leave
An employee who suffers an injury or illness and who offers a physician's
statement regarding the necessity for Leave of Absence as a result thereof, may be
granted a Medical Leave of Absence. Application for leaves shall be made to the Board
of Water and Light's Human Resources Director,Personnel Manager.
r
__I'a _'-- L__ en -
_y _I_
� ) a not iyJl tlGii3 — - --
began,
but riot to emeeed fi-ee
During any such leave due to compensable illness or injury,pension service
credit shall be retained but shall not be accumulated Seniority shall be retained and
accumulated during such a leave due to compensable illness or injury. An employee
on compensable illness or injury leave shall not lose pension service credit until having
been on such leave for a period equal to the pension service credit accumulated at the
time the leave began, (not to exceed five (5)years) or as provided by the FMLA.
FMLA cont.
Page 4 of 6
During any such leave due to non-compensable illness or injury,pension
service credit shall be retained but shall not be accumulated An employee on non-
compensable illness or injury leave shall not lose pension service credit until having
been on such leave for a period equal to the pension service credit accumulated at the
time the leave began, (not to exceed two (2)years) or as provided by the FMLA.
Upon return from Leave of Absence due to illness or injury, the Human
Resources Director, Personnel Section shall place the employee in a job as close to the
employee's previous rate of pay and ability, including physiefti abiiity, at the time (5f
return-as possible.
An employee desiring to return to work from a Leave of Absence due to non-
compensable illness or injury may be required by the Board of Water and Light to
furnish a statement from a personal and/or BWL physician that the employee has
adequately recuperated so to be fit to return to the work. Which wiii be assigned.
An employee returning to work from a compensable or non-compensable leave
of absence shall not have such time count toward the maximum leave of absence time
allowed should the employee return to leave of absence status within thirty (30) days.
After thirty (30) days, vacation and free choice will be granted and accrued in full
according to a normal return to work from leave of absence. Employees returning
from a leave status for a temporary assignment will be paid at the rate of the temporary
classification.
Personal Business Leave
An employee shall have the right to make application, in writing, to the
Department Head for a Personal Business Leave of Absence for reasons of a persuasive
nature which shall be stated in the application.
Such request may be for one (1) week or more, but not more than one (1)
calendar month at a time. Extension of a personal Leave of Absence may be granted,in
at management's discretion, for a further period or periods, to a total period of leave not
to exceed six (6) calendar months.
The employee's Department Head will forward the Leave request to the Board of
Water and Light's Human Resources'Personnel Section stating approval or disapproval.
All Leaves of Absence for Personal Business or extensions must be approved by the
Board of Water and Light's General Manager or designate.
During suer Personal Leaves, an employee's pension service credit shall be
retained but not accumulated.
FMLA cont.
Page 5 of 6
Military Service Leave
The Board of Water and Light reeagnizes that the matt complies with Leaves
of Absence regulations for an employee during the period of military service obligation
with the Armed Forces of the United States, and re-employment rights thereafter, wide
geyerned and as updated from time to time by applicable statutes and decisions of the
courts.
An employee being drafted or, involuntarily activated from reserve status,
volunteering for induction into the Armed Forces or volunteering for reserve active duty
shall be required to supply the Board of Water and Light's Human Resources a copy of
Orders for Induction, at which time the employee will be placed on Military Leave.
After completion of tear duty, in order to be considered for re-employment rights, the
employee will be required to furnish the Board of Water and Light's Human Resources
Division a copy of Discharge Papers, said discharge shall be honorable, general or under
honorable conditions.
An employee leaving the Board of Water and Light for Military Service Leave
wili be recittired to sign a Board Termination Natiee in�eating ieave of Nliiitwy Service.
The Employee will be carried in the Board of Water and Light's inactive payroll, Section
70, until the Board of Water and Lig t's nbiigatian to do so is terminated, is no longer
obligated under the applicable Federal Statutes, or the employee returns to work.
An employee on a Military Service Leave of Absence will have pension service
credit retained and accumulated upon return to full-time employment with the Board of
Water and Light.
Military Reserve Leave
For not to exceed two (2) weeks (10 work days) in anv one (1) fiscal year (July 1
to June 30), an employee,having at least one year Board of Water and Light seniority,
and who is required to participate in annual active duty training with the reserve
components of the Armed Forces of the United States will be granted Leave of Absence
for this purpose, provided the Department head and the Board of Water and Light's
Human Resources Division is furnished with prompt notice of such period(s) of duty
(Military Orders).
An employee who is required to participate in annual active duty training with the
reserve components of the Armed Forces of the United States, as referred to above, will
be paid the difference, if any, between base pay for such annual active duty training and
the pay which would have been received had the employee worked the regularly
scheduled shift during such period of service.
It is the employee's responsibility to provide the Board of Water and Light's
Payroll Department an authenticated copy of the military pay voucher at the conclusion
of the Leave of Absence.
FMLA cont.
Page 6 of 6
Situations involving additional Reserve Leave other than that which is detailed
above must be requested in writing to the Board of Water and Light's Human Resources
Division. The request will be considered and presented to the General Manager for his
approval or disapproval.
During such leaves, an employee's pension service credit will be retained and
accumulated.
d\policyVeave93
1/21/94
c2_? +-94P05 53 RCVD
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, February 22, 1994
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, Christian, Hassler, O'Leary Sebolt,
and Williams -6
Absent: Commissioners Evans and Strolle -2
The Secretary declared a quorum present.
The Invocation was delivered 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 January 25, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL
BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS
REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN
FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO
COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS
TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT.
No persons spoke.
Board Meeting Minutes Page 17
February 22, 1994
COMMUNICATIONS AND PETITIONS
A thank you card was received from Commissioner Sister Mary Janice Belen, R.S.M., for
flowers sent after her surgery on January 28.
Placed on file.
REPORTS OF COMMITTEE
None
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-2-1
That the Board approve Amendment No. 5 to C-7615 Transportation
Contract with Norfolk Southern Railroad (NS) and Grand Trunk Western
Railroad (GTW), subject to approval as to form by the BWL's Legal
Counsel.
This Amendment No. 5 will provide for shipment of coal from the Thacker
II origin rate district. The Thacker II rate is $0.50/ton higher than the
Kenova and Thacker I rate districts currently listed in our contract.
--------------------
By amending this contract with Norfolk Southern and Grand Trunk
Western, the BWL will be able to expand its base of Spot coal suppliers on
the Norfolk Southern. This will ensure that Spot coal opportunities are
maximized.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-2-1 be approved as submitted.
Adopted unanimously.
Page 18 Board Meeting Minutes
February 22.1994
HUMAN RESOURCES
Res. No. 94-2-2
The Leave of Absence Policy has been updated to include additional
information regarding Leave of Absence procedures including information
on the Family and Medical Leave Act of 1993.
Therefore, the Leave of Absence Policy, as adopted by the Board on April
14, 1975, and as changed in September 28, 1982 and September 25, 1990,
be approved to include the attached changes, in compliance with the Family
Medical Leave Act of 1993.
Further, that the Director and General Manager be directed to establish
written procedures to be in compliance with the Family Medical Leave Act
of 1993 and covering the leaves for Injury and Illness, Personal Business,
Military Service, and Military Reserve Leaves.
--------------------
See attached Family Medical Leave Policy with amendments. New
wording is in bold italics and deletions are shown as stfikethr-etigh.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolution 94-2-2 be approved as submitted.
Adopted unanimously.
PENSION
Res. No. 94-2-3
That Morgan L. Beard, Building Maintenance General Supervisor, be
placed on a pension of$2,237.85 per month effective January 2, 1994. He
has selected Option III with the provision that after his death, if his wife,
Judy B. Beard, survives him she will receive 80% or $1,790.28 per month
for the rest of her life as provided under Option III.
--------------------
Mr. Beard worked for the BWL for 37.32 years and is 62 years of age.
--------------------
Board Meeting Minutes Page 19
February 22. 1994
PENSION (continued)
Res. No. 94-2-4
That Kathryn F. Templeton, Open Account Collection Supervisor in
Customer Service, be placed on a disability pension of$1,875.18 per
month effective January 13, 1994. She has selected Option VI with the
provision that after her death, if her husband, Norther Templeton, survives
her he will receive 15% or $281.28 per month for the rest of his life as
provided under Option VI. If her husband predeceases her, the pension
amount of$1,875.18 will revert back to the regular pension amount of
$1,911.23 for the rest of her life.
--------------------
Mrs. Templeton has worked for the BWL for 29.56 years and is 56 years
of age.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER SEBOLT
That Resolutions 94-2-3 and 94-2-4 be approvd as submitted.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-2-5
Authorize purchase of the estimated 12 month requirement of system lamps
(approximately 28,785 lamps) covering the period from March 1, 1994
through February 28, 1995, from Michigan Electric Supply Co., Lansing,
Michigan, in the amount of$70,579.48. Pricing is firm through the
contract period. All materials to be released only as required.
--------------------
The other bidders were Kendall Electric, Inc. ($73,859.91), Westinghouse
Electric Supply Co. ($78,456.26), Graybar Electric Co. ($80,428.11),
Standard Electric Co. ($82,470.78) and All Phase Electric Supply Co.
($84,473.67).
W. W. Grainger, General Electric Co., Philips Lighting Co., and OSRAM
Sylvania were invited to bid but declined.
--------------------
Page 20 Board Meeting Minutes
February 22,1994
TREASURER/CONTROLLER(continued)
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER BELEN
That Resolution 94-2-5 be approved as submitted.
Adopted unanimously.
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Active Coal Inventory Report: With the recent moderation in weather and aggressive
pursuit of railroads and coal suppliers, an active inventory of approximately 200 train cars
of coal has been accumulated. A contractor also successfully dynamited the frost crust
along the outer perimeter of the Erickson Station coal pile. This enabled the coal handlers
to gain access to the coal pile. An article in the most recent issue of Watts & Drops
highlights activities of BWL employees during the extremely cold weather in February.
A Former Emplovee Writes to the Citv Council. A copy of a letter, dated February 17,
1994, sent to the Lansing City Council by Martha Sproul asking for oversight of the BWL
was handed out for information.
BWL Receives Environmental Awareness Plaque. The BWL received the Greater
Lansing Home Builders Association's Outstanding Achievement Award for Environmental
Awareness for 1993. This award is based on the BWL's recycling program. Mr. Pandy
congratulated Suellen Hozman of Purchasing for her efforts in overseeing the BWL's
recycling program.
BWL Receives Honorable Mention in APPA's Safety Contest. The BWL received an
Honorable Mention award in Group F of the American Public Power Association's
(APPA) 1993 Safety Contest. The Group F category represents electric systems with 1 to
2 million worker-hours of annual exposure. Congratulations were given to Human
Resources Director Mark Vander Jagt, his safety staff, and the entire BWL organization
for a good year on safety.
Board Meeting Minutes Page 21
February 22. 1994
Letter to Grand Pointe Residents Regarding River Levels. A copy of a letter sent to
residents in the Grand Pointe area from Jack Hill, Superintendent of Eckert Station, dated
February 18, 1994, was handed out for information. The letter informs residents that with
spring nearly approaching, there is a potential for flooding in the Grand Pointe area. The
BWL maintains the water level immediately behind the dam at 833.4 feet above sea level,
plus or minus .2 feet on a year-around basis. The river has several areas that can cause
water flow restrictions due to ice jams. This condition holds back the water while the
water level at the Moores Park Dam can actually remain normal. The BWL will do
everything possible to keep the water level at the Moores Park Dam from exceeding the
normal level.
Return on Equity Payment to the Citv. A copy of a letter sent to Doug Rubley--City
Finance Department--from Dana Tousley, dated February 16, 1993, was handed out for
information. The letter provides estimates of the BWL Return on Equity payment to the
City for budgeting purposes.
Lucile Belen to be Honored. An event "A Bouquet for Lucile" is being planned by
community leaders to pay tribute to Lucile Belen for her thirty-seven years of service to
the City of Lansing and its residents as a councilmember at-large. Joe Pandy noted that
Lucile Belen has been an active supporter of public power and invited all Commissioners
to attend..
REMARKS BY BOARD COMMISSIONERS
On behalf of the Board, Commissioners Sebolt and Williams asked Joe Pandy to express
the Board's appreciation to BWL employees for exemplary efforts in maintaining utility
services to all affected customers during severely cold weather conditions.
Commissioner O'Leary asked for clarification on the bid tabulation for Medical Health
Care. He noted that the bid results were difficult to interpret. Human Resources Director
Mark Vander Jagt responded that the bid quotations are currently being evaluated. There
are various issues that need to be addressed before an award decision can be made.
Commissioner O'Leary reported that organizers of"A Bouquet for Lucile" are recruiting
corporate sponsors to help offset expenses for this function. Following discussion, there
was unanimous consent that it would be appropriate for the BWL to participate as a
corporate sponsor.
Commissioner Hassler asked that the letter sent to the City Council by former employee,
Martha Sproul, be forwarded to her attorney.
Page 22 Board Meeting Minutes
February 22.1994
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER CHRISTIAN
That the absences of Commissioners Evans and Strolle be excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 5:5lp.m.
Ma E. va ecretary
Filed• February 24, 1994
Marilynn Slade, City Clerk
fiTTPCPME/YT Re: Resolution 94-2-2
BOARD OF WATER AND LIGHT FAMILY MEDICAL LEAVE POLICY
General Leaves of Absence
In general, a Leave of Absence(LOA) is considered a privilege. In no imt=tee�
leaves grmited antazratieaily, but must be requested by the ernpia-yee
A Leave of Absence must be requested
by the employee in writing, setting forth the reasons for requesting the leave. The
Board of Water and Light(BWL) requires a Leave of Absence any time the employee is
in an excused unpaid status that is consecutive and greater than 80 hours in duration.
Failure to apply for a Leave of Absence may place the employee in an unexcused
unpaid statute
In granting a Leave of Absence, the employee's service record and circumstances
requiring the leave will be considered. A Leave of Absence is normally granted in order
to protect the length of service and benefit rights for an employee whose services might
otherwise be terminated.
An employee who gives false reasons for obtaining a Leave of Absence or who
accepts employment elsewhere while on a Leave of Absence,or who is self-employed
for the purpose of making a profit during a Leave of Absence without prior notice to the
Board of Water and Light's Human Resources and approval of the Board of Water and
Light's General Manager, shall have the leave terrr,�Itated cancelled and be terminated
from the prfroil, and lose I ice eredit employment.
Board ei Witte, mid Light their 10L,nai em.FiOYee portion of the en.. and life
While on Leave of Absence,your health and life insurance benefits will
continue. Any of your benefits which had payroll deductions (Vision, UNUM Life or
LTD, etc.) will continue as long as you reimburse the Board of Water and Light for
those costs. Ifyou have elected such benefits, General AccountinglPayroll Dept will
bill you periodically for those expenses. Should you wish to verify the amount of any
copays,you can check your last few pay stubs or call the Benefits Section at 3714262.
It is understood that Leaves of Absence for Bargaining Unit employees, except
for Public or Community Service Leaves, are covered in the Labor Agreement between
the Board of Water and Light and Local Union 352 of the I.B.E.W.
The Family and Medical Leave Act of 1993
It is understood that the Board of Water and Light's Leave of Absence policy
will comply with the Family Medical Leave Act of 1993 (FMLA) P.L. 103-3 as
amended from time to time. In addition, the Board of Water and Light may grant
certain additional rights which are stated in this LOA policy or as explained in
excerpts taken from The Family and Medical Leave Act of 1993. For clarification
purposes the FMLA may effect the Injury or Illness and Personal Leave sections of the
Board LOA policy. In general, the FMLA provides specific definition of family and
FMLA cont.
Page 2of6
serious health conditions. Minimum Leave requirements are defined as well as notice
to the employee on appropriate required documentation for the Leave, and employment
and benefit protection rights are described.
Summary of the Family and Medical Leave Act of 1993
The following excerpts are provided as a section by section brief explanation of the
Act.
TITLE I- General Requirements for Leave
Section 101: De,finitions
The law also includes broad definitions of the terms "parent" and "son or daughter. "
The term "son or daughter" is defined as "biological, adopted, or foster child, a step
chi14 legal ward, or a child of a person standing in loco parentis. " It was intended
"that the terms parent'and 'son or daughter'be broadly construed to ensure that an
employee who actually has day-to-day responsibility for caring for a child is entitled to
leave even if the employee does not have a biological or legal relationship to that
child " The term son or daughter also is specifically defined to include not only
children under the age of 18, but children above that age who are "incapable of self-
care because of mental or physical disability. "
"Serious health condition" is defined as "an illness, injury, impairment, or physical or
mental condition" involving either inpatient care or continuing treatment by a health
care provider.
Section 102: Leave Requirement
An eligible employee is entitled up to 12 unpaid work weeks of leave during any 12-
month period for three reasons:
L Because of the birth or placement for adoption or foster care of a child Leave may
be taken for birth or placement of a child only within 12 months of that birth or
placement; or
2. Because of the serious health condition of a spouse, child, or parent; or
3. Because of the employee's own serious health condition.
The act allows employers to require employees to first use their paid vacation,personal
or sick leave for any part of the 12-week period. If paid leave is used by an employee,
the employer is required to provide only enough unpaid leave to total 12 weeks.
In the case of leave for birth or placements of a chip an employee must provide 30
days'advance notice before the date on which the leave would begin. If the employee
is unable to provide 30 days'notice, he or site must provide "such notice as is
practicable. "
FMLA cont.
Page 3 of 6
If spouses employed by the same employer wish to take leave to care for a newly
arrived child or a sick parent, their aggregate leave is limited to 12 weeks. If the leave
is requested because of the illness of a child or of the other spouse, each spouse is
entitled to IZ weeks of leave.
Section 104, Empigyment and Benefits Protection
In general, an employee who completes a period of leave is to be returned either to the
same position he or she had before or to a position equivalent in pay, benefits, and
other terms and conditions of employment. Leave is not to result in the loss of any
previously accrued seniority or employment benefits, but neither are any benefits
required to accrue during the leave.
Health benefits continue through an employee's leave. An employer may recover
health coverage premiums paid for an employee who fails to return from leave, except
if the reason is the continuation, recurrence, or onset of a serious health condition, or
something else beyond the employee's control, This is subject to certijicatiom
Injury or Illness Leave
An employee who suffers an injury or illness and who offers a physician's
statement regarding the necessity for Leave of Absence as a result thereof, may be
granted a Medical Leave of Absence. Application for leaves shall be made to the Board
of Water and Light's Human Resources Bireeter, Personnel Manager.
eredit sh&H be retained t i1vL uet,Llilretained
_ ___ __ _
iLip"Yotliated
period t11. iee� uly 11J1 _-- -___J't _____ __ __ at
the
_ leave
began,
btit not to exeeed five (5) years.
During any such leave due to compensable illness or injury,pension service
credit shall be retained but shall not be accumulated. Seniority shall be retained and
accumulated during such a leave due to compensable illness or injury. An employee
on compensable illness or injury leave shall not lose pension service credit until having
been on such leave for a period equal to the pension service credit accumulated at the
time the leave began, (not to exceed five (S)years) or as provided by the FMLA.
FMLA cont.
Page 4 of 6
During any such leave due to non-compensable illness or injury,pension
service credit shall be retained but shall not be accumulated An employee on non-
compensable illness or injury leave shall not lose pension service credit until having
been on such leave for a period equal to the pension service credit accumulated at the
time the leave began, (not to exceed two (2)years) or as provided by the FMLA_
Upon return from Leave of Absence due to illness or injury, the Human
Resources Bireeter, Personnel Section shall place the employee in a job as close to the
employee's previous rate of pay and ability, ineit2ding physien! nbiiity, at the time of
retmtt:as possible.
An employee desiring to return to work from a Leave of Absence due to non-
compensable illness or injury may be required by the Board of Water and Light to
furnish a statement from a personal and/or BWL physician that the employee has
adequately recuperated so to be fit to return to the work. whieh wiii be assigned.
An employee returning to work from a compensable or non-compensable leave
of absence shall not have such time count toward the maximum leave of absence time
allowed should the employee return to leave of absence status within thirty (30) days.
After thirty (30) days, vacation and free choice will be granted and accrued in full
according to a normal return to work from leave of absence. Employees returning
from a leave status for a temporary assignment will be paid at the rate of the temporary
classification.
Personal Business Leave
An employee shall have the right to make application, in writing, to the
Department Head for a Personal Business Leave of Absence for reasons of a persuasive
nature which shall be stated in the application.
Such request may be for one (1) week or more, but not more than one (1)
calendar month at a time. Extension of a personal Leave of Absence may be granted,in
at management's discretion, for a further period or periods, to a total period of leave not
to exceed six (6) calendar months.
The employee's Department Head will forward the Leave request to the Board of
Water and Light's Human Resources' Personnel Section stating approval or disapproval.
All Leaves of Absence for Personal Business or extensions must be approved by the
Board of Water and Light's General Manager or designate.
During sneh Personal Leaves, an employee's pension service credit shall be
retained but not accumulated.
FMLA cont.
Page 5 of 6
Military Service Leave
The Board of Water and Light reeogrizes that the matt complies with Leaves
of Absence regulations for an employee during the period of military service obligation
with the Armed Forces of the United States, and re-employment rights thereafter, wiii be
governed and as updated from time to time by applicable statutes and decisions of the
courts.
An employee being drafted or, involuntarily activated from reserve status,
volunteering for induction into the Armed Forces or volunteering for reserve active duty
shall be required to supply the Board of Water and Light's Human Resources a copy of
Orders for Induction, at which time the employee will be placed on Military Leave.
After completion of tam duty, in order to be considered for re-employment rights, the
employee will be required to furnish the Board of Water and Light's Human Resources
Division a copy of Discharge Papers; said discharge shall be honorable, general or under
honorable conditions.
An employee leaving the Board of Water and Light for Military Service Leave
will be carried in the Board of Water and Light's inactive payroll, Section
70, until the Board of Water and Light's obiigation to do so is terminated, is no longer
obligated under the applicable Federal Statutes, or the employee returns to work.
An employee on a Military Service Leave of Absence will have pension service
credit retained and accumulated upon return to full-time employment with the Board of
Water and Light.
Military Reserve Leave
For not to exceed two (2) weeks (10 work days) in any one (1) fiscal year (July 1
to June 30), an employee,having at least one year Board of Water and Light seniority,
and who is required to participate in annual active duty training with the reserve
components of the Armed Forces of the United States will be granted Leave of Absence
for this purpose, provided the Department head and the Board of Water and Light's
Human Resources Division is furnished with prompt notice of such period(s) of duty
(Military Orders).
An employee who is required to participate in annual active duty training with the
reserve components of the Armed Forces of the United States, as referred to above, will
be paid the difference, if any, between base pay for such annual active duty training and
the pay which would have been received had the employee worked the regularly
scheduled shift during such period of service.
It is the employee's responsibility to provide the Board of Water and Light's
Payroll Department an authenticated copy of the military pay voucher at the conclusion
of the Leave of Absence.
FMLA cont.
Page 6 of 6
Situations involving additional Reserve Leave other than that which is detailed
above must be requested in writing to the Board of Water and Light's Human Resources
Division. The request will be considered and presented to the General Manager for his
approval or disapproval.
During such leaves, an employee's pension service credit will be retained and
accumulated.
dIVolicy Ieave93
1/21/94
02-03-94A11 : 21 RCVD
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, January 25, 1994
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
Vice Chair Sebolt.
Present: Commissioners Belen, Christian, Sebait, Rrolle and Williams -5
Absent: Commissioners Evans, Hassler, and O'Leary -3
The Secretary declared a quorum present.
The Invocation was delivered by Vice Chair Sebolt.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER BELEN--
SECONDED BY COMMISSIONER WILLIAMS
That minutes of rescheduled regular session of December 21, 1993, and the
Special Meeting of January 11, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
VICE CHAIR 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.
No persons spoke.
Page 2 Board Meeting Minutes
January 25, 1994
COMMUNICATIONS AND PETITIONS
A thank you letter from Joseph P. Pavona, Director of Property Management Division,
State of Michigan, regarding modifying switch yard repair plans, was received.
Placed on file.
A thank you letter from Mayor David Hollister for the Board of Water and Light's support
of the 1994 Inaugural Celebration was received.
Placed on file.
REPORTS OF COMMITTEE
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on January 11, 1994, to discuss the following topics:
1. Agenda items for joint BWL/City meeting
2. Mid-Michigan Water Authority
3. Total Quality Improvement
Present were Commissioners Belen, Christian, Evans, Hassler, O'Leary, Strolle, and
Williams. Absent was Commissioner Sebolt.
Joint Meeting with the City. Topics to be discussed with the City at a joint meeting
scheduled for January 27, 1994 include:
1. Council Member/Commissioner Pairings
2. Mid-Michigan Water Authority
3. Fiber Optic Cable Plans
4. Total Quality Improvement
5. Ottawa Station Future
6. City Issues
Fiber Optics at the BWL. A presentation on fiber optics was delivered by Brian Cooper,
General Supervisor of Electric Distribution Engineering, covering the following:
1. Project Description and Objectives
2. Cost/Benefit Analysis
3. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
4. Holland BPW Fiber Optic Program
5. Recommended action steps
Board Meeting Minutes Page 3
January 25. 1994
Mid-Michigan Water Authority. Water Utility Director Clyde Dugan presented a
status report on the activities of the Mid-Michigan Water Authority (Authority). Copies
of the Articles of Incorporation and Bylaws of the Authority were reviewed. A draft
resolution for the City to designate BWL representatives to serve as member and alternate
of the Authority was handed out for discussion.
Total Quality Improvement. Representatives from the BWL Meter Reading
Department presented a summary report of their team's quality improvement project.
Four target areas analyzed by the team included:
■ Media Campaign on Customer Premise maintenance
Field Communication
■ Change Reporting
■ Updated Uniforms
Respectfully submitted,
COMMITTEE OF THE WHOLE
Gerald W. Williams, Chair Pro Tern
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That the Committee of the Whole Report be approved as submitted.
Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-1-3
That the Board retain the services of Energy Services Group, Inc. (ESG) to
assist the Board of Water & Light (BWL) with fuels procurement related
matters. More specifically, ESG will be assisting with the research,
formatting and completion of a "Fuel Supply Policies and Procedures"
(FSPP) manual, rail contract negotiations with CSX Transportation
(CSXT) and any other fuel matters that may arise on an as-needed, as-
required basis.
--------------------
Page 4 Board Meeting Minutes
January 25. 1994
The cost for fuel procurement related consultant services will not exceed
$60,000 (exclusive of travel and lodging) and will be paid on a monthly
basis for the 12 month period covering calendar year 1994.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-1-3 be approved as submitted.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-1-4
That Richard Griffith and Jeffery Sedgman, both Water Station A
Operators for Water Production Operations, each be awarded a total of
$332.50 for suggestion proposal number 1990-114, to tie the Wise Road
scraper and cross collector alarms in to the John Dye control panel.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$5,900 in the first year.
--------------------
Res. No. 94-1-5
That Stan Keeler, a Relay Technician for E.C.& M., be awarded a total of
$194.00 for suggestion proposal number 1993-029, to change the wiring at
Northeast substation on G and P lines according to drawing 43-187 to trip
breaker through 94P relay as is done at other substations.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$1,190 in the first year.
--------------------
Board Meeting Minutes Page 5
January 25, 1994
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That Resolutions No. 94-1-4 and 94-1-5 be approved as submitted.
Adopted unanimously.
TREASURER./C0NTR0LL E.R
Res. No. 94-1-6
Purchases, Annual Commodity - Amines
Authorize the purchase of an estimated 101,625 lbs. of Neutralizing
Amines from Betz Industrial in the amount of$223,476.00 for use at
Moores Park Steam Plant for the period of February 1, 1994 to June 30,
1995. Pricing per lb. is firm through June 30, 1995. Quantities will be
released as required.
--------------------
The Betz Industrial bid was the best evaluated bid. Nalco Chemical
Company submitted a bid in the amount of$215,448.00. Calgon
Corporation submitted a bid of$119,618.45 but did not meet
specifications.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That Resolution No. 94-1-6 be approved as submitted.
Adopted unanimously.
Page 6 Board Meeting Minutes
January 25, 1994
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Budget Variance Analysis. Mr. Pandy reported that a nine (9) percent increase in the
total operating and maintenance expense for December, 1993, as compared to the
previous 12 months, was due to more purchased power from Belle River. He noted that
while our purchased power went up $21 million, total operating expenses only went up
$9 million. Consequenty, in effect other expenses were reduced by $12 million. The
Commissioners received a handout of page E-5 of the Monthly Financial Statements
detailing the change in purchased power expenses for the last 12 months.
Energy Management System (EMS). Mr. Pandy reported on the implementation
progress of the Energy Management System (EMS) at the Brush Electric System
Operating Center (BESOC). The estimated project cost is $9.5 million, with $6.6 million
expended or committed to date. The BWL's net cash outlay to date is $1.8 million. He
noted that the contractor, Landis & Gyr, offered to provide DEC's newer Alpha platform
versus their VMS older platform. The BWL opted for the newer platform and agreed to a
six-month schedule extension, with an anticipated computer equipment delivery date of
December 1994. Design documents continue to be reviewed; hardware has been obtained
and is currently being integrated at the Landis & Gyr facility. Following discussion,
Commissioner Williams suggested updating the City on this project at a future meeting.
City Administration. A listing of City of Lansing department heads and Mayor
Hollister's immediate office staff was handed out for information. Mr. Pandy reported that
he has been invited by the Mayor to attend weekly staff meetings for the interchange of
information. He has also suggested to the Mayor that regular monthly meetings be held
between key directors from the BWL and the City to review plans, projects, construction
activities, and other topics of mutual concern.
Walk for Warmth Program. Mr. Pandy reported that the BWL raised $600 for the
Capital Area Community Services, Inc. (CACS) Walk for Warmth Program through the
efforts of many BWL employees who participated in the Roy Peffley 5 K Power
Run/Walk held on December 4, 1993. Special thanks was extended to the following
employees who were instrumental in organizing this event: Jim Chandler, Calvin Jones,
Ann Stump, Trent Bannon, and Roy Peflley. Funds raised in the Walk for Warmth
Program are used to assist low income families with their energy bills.
New President for DECo. It was reported that Anthony Earley was named president,
chief operating officer and a director of Detroit Edison Co. (DECo) effective March 1,
1994. John Lobbia, who formerly held the position of Detroit Edison president, will
continue as chairman and chief executive officer of the utility.
Board Meeting Minutes Page 7
January 25, 1994
DECo's REP to Supply Capacity and Energy. Mr. Pandy reported that Detroit Edison
Co. (DECo) has mailed requests for proposals to area utilities for purchasing a base of
1000MW of capacity and energy with an option of up to an additional 1 OOOMW for the
period June 6 through September 4, 1994. Proposals with an offer for 50MW or more are
to be submitted to DECo by February 18, 1994. The additional load requirement is
needed due to a fire in December at the Fermi 2 nuclear power plant in Monroe, Michigan.
This incident resulted in a complete shutdown of the plant. Mr. Pandy advised that the
BWL expects to offer 50-100MW depending on the seasonal load.
Weather Emergency Affects Coal Supply. The recent bitter cold weather, along with
the heavy snowfall in the coal field, taxed the BWL's coal handling capabilities. Mr. Pandy
noted that the ability to recover stockpile coal was hampered by a four-foot frozen crust
covering the pile at Erickson Station. Several employees present in the audience were
recognized for their leadership in coordinating BWL service during difficult conditions
caused by the freezing weather. The Commissioners applauded all the BWL employees
who worked exceptionally hard during bitterly cold conditions to restore utility services to
customers.
Functional Analysis/Rightsizing. Mr. Pandy reported that the executive staff has
completed a functional analysis of the Board of Water and Light and has determined that a
workforce of 800 employees or less is achievable without compromising essential services.
The reductions are necessary in order to keep BWL rates competitive as the utility moves
toward the next century. Mr. Pandy said he will be communicating with all BWL
employees tomorrow (January 26) on the need to control BWL costs and reduce the size
of the workforce between now and 1999.
Mr. Pandy outlined the recommendations of the Functional Analysis Report which focused
on the following issues:
A. A total of 111 position reductions were identified by payroll category.
B. Five special task forces have been assigned to study consolidation of
departments or work areas and to recommend appropriate staffing levels.
C. Potential effects on customer focus were listed.
D. Technology improvements to accompany workforce reductions for
increased productivity were discussed.
E. Three types of accelerated workforce reduction plans were identified:
(1) early retirement, (2) employee buyout, and (3) layoffs. Details of the
plan to focus on early retirement and employee buyout are expected to be
developed by the directors of the Treasurer/Controller and Human
Resources divisions. The plan could be offered in the third quarter of
1994.
Page 8 Board Meeting Minutes
January 25, 1994
F. An Implementation Task Force is to be formed to develop a plan for
implementing the workforce reduction. The task force's recommendations
are to be submitted by April, 1994.
H. Upon acceptance of this report by the Board of Commissioners, the report
will be immediately shared with management and union leaders, the Mayor
and City Council, and the news media through normal channels.
The Functional Analysis Report includes a recommendation to engage the consulting firm
of Right Associates to assist with planning timelines and addressing specific personnel and
staffing issues.
Following discussion, the Commissioners concurred with the recommendations of the
Functional Analysis Report. The workforce reduction plan is to be reviewed in more
detail with the Board at a future Committee of the Whole meeting prior to taking official
action.
REMARKS BY BOARD COMMISSIONERS
Revenue Bond Sale Status Report. Commissioner Strolle inquired about the status of
the local bond sale. Treasurer/Controller Tousley responded that the sale has been very
successful. He noted that as of 5:00 p.m. (January 25), all of the five and ten-year bonds
were sold, with $450,000 of the 15-year bonds remaining to be sold.
PUBLIC COMMENTS
Harold Leeman, Jr., 529 N. Francis, Lansing, commented on General Manager Pandy's
involvement in the Mayor's weekly cabinet meetings. Mr. Pandy clarified that he is not
officially a cabinet member, but that he has been invited by the Mayor to attend the weekly
meetings to exchange information of mutual concern.
Mr. Leeman asked for a progress report on the Clippert Street guard rail, which the BWL
is coordinating with the Michigan Department of Natural Resources. Staff will follow-up
and report back.
Mr. Leeman asked when would be the appropriate time for members of the public to make
input to the BWL's Fiscal 1995 budget priorities. Mr. Pandy responded that preliminary
budgeting for Fiscal 1995 is in process. Budget suggestions should be submitted to him or
the Board as soon as possible for review. The Board will be taking action on a proposed
Fiscal 1995 operating budget in May, 1994.
Board Meeting Minutes Page 9
January 25, 1994
Lloyd Teets, 116 E. Elm Street, Lansing, spoke on the following issues: (1)"The bottom
line" on BWL annual reports, (2) expressed reservation regarding the Mid-Michigan
Water proposal, and (3) supports fiber optics technology and also suggested that wireless
communications be included in future planning.
EXCUSED ABSENCES
BY COMMISSIONER SEBOLT--
SECONDED BY COMMISSIONER CHRISTIAN
That the absences of Commissioners Evans, Hassler, and O'Leary be
excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 6:05 p.m.
4VZ7.,
ary .1 Aa, ecretary
Filed: February 2, 1994
Marilynn Slade, City Clerk
02-02-9003 : 17 RCVD
MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, January 25, 1994
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
Vice Chair Sebolt.
Present: Commissioners Belen, Christian, Sebolt, Strolle and Williams -5
Absent: Commissioners Evans, Hassler, and O'Leary -3
The Secretary declared a quorum present.
The Invocation was delivered by Vice Chair Sebolt.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
BY COMMISSIONER BELEN--
SECONDED BY COMMISSIONER WILLIAMS
That minutes of rescheduled regular session of December 21, 1993, and the
Special Meeting of January 11, 1994, be approved as mailed.
Adopted unanimously.
PUBLIC COMMENTS
VICE CHAIR 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.
No persons spoke.
Page 2 Board Meeting Minutes
January 25, 1994
COMMUNICATIONS AND PETITIONS
A thank you letter from Joseph P. Pavona, Director of Property Management Division,
State of Michigan, regarding modifying switch yard repair plans, was received.
Placed on file.
A thank you letter from Mayor David Hollister for the Board of Water and Light's support
of the 1994 Inaugural Celebration was received.
Placed on file.
REPORTS OF COMMITTEE
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on January 11, 1994, to discuss the following topics:
1. Agenda items for joint BWL/City meeting
2. Mid-Michigan Water Authority
3. Total Quality Improvement
Present were Commissioners Belen, Christian, Evans, Hassler, O'Leary, Strolle, and
Williams. Absent was Commissioner Sebolt.
Joint Meeting with the City. Topics to be discussed with the City at a joint meeting
scheduled for January 27, 1994 include:
1. Council Member/Commissioner Pairings
2. Mid-Michigan Water Authority
3. Fiber Optic Cable Plans
4. Total Quality Improvement
5. Ottawa Station Future
6. City Issues
Fiber Optics at the BWL. A presentation on fiber optics was delivered by Brian Cooper,
General Supervisor of Electric Distribution Engineering, covering the following:
1. Project Description and Objectives
2. Cost/Benefit Analysis
3. SWOT Analysis (Strengths, Weaknesses, Opportunities, Threats)
4. Holland BPW Fiber Optic Program
5. Recommended action steps
Board Meeting Minutes Page 3
January 25. 1994
Mid-Michigan Water Authority. Water Utility Director Clyde Dugan presented a
status report on the activities of the Mid-Michigan Water Authority (Authority). Copies
of the Articles of Incorporation and Bylaws of the Authority were reviewed. A draft
resolution for the City to designate BWL representatives to serve as member and alternate
of the Authority was handed out for discussion.
Total Quality Improvement. Representatives from the BWL Meter Reading
Department presented a summary report of their team's quality improvement project.
Four target areas analyzed by the team included:
■ Media Campaign on Customer Premise maintenance
■ Field Communication
■ Change Reporting
■ Updated Uniforms
Respectfully submitted,
COMMITTEE OF THE WHOLE
Gerald W. Williams, Chair Pro Tem
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That the Committee of the Whole Report be approved as submitted.
Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
ADMINISTRATIVE
Res. No. 94-1-3
That the Board retain the services of Energy Services Group, Inc. (ESG) to
assist the Board of Water & Light (BWL) with fuels procurement related
matters. More specifically, ESG will be assisting with the research,
formatting and completion of a "Fuel Supply Policies and Procedures"
(FSPP) manual, rail contract negotiations with CSX Transportation
(CSXT) and any other fuel matters that may arise on an as-needed, as-
required basis.
--------------------
Page 4 Board Meeting Minutes
January 25. 1994
The cost for fuel procurement related consultant services will not exceed
$60,000 (exclusive of travel and lodging) and will be paid on a monthly
basis for the 12 month period covering calendar year 1994.
--------------------
BY COMMISSIONER STROLLE--
SECONDED BY COMMISSIONER WILLIAMS
That Resolution 94-1-3 be approved as submitted.
Adopted unanimously.
HUMAN RESOURCES
Res. No. 94-1-4
That Richard Griffith and Jeffery Sedgman, both Water Station A
Operators for Water Production Operations, each be awarded a total of
$332.50 for suggestion proposal number 1990-114, to tie the Wise Road
scraper and cross collector alarms in to the John Dye control panel.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$5,900 in the first year.
--------------------
Res. No. 94-1-5
That Stan Keeler, a Relay Technician for E.C.&M., be awarded a total of
$194.00 for suggestion proposal number 1993-029, to change the wiring at
Northeast substation on G and P lines according to drawing 43-187 to trip
breaker through 94P relay as is done at other substations.
--------------------
By implementing this proposal, it is estimated that the BWL will realize a
net savings of$1,190 in the first year.
--------------------
Board Meeting Minutes Page 5
January 25, 1994
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That Resolutions No. 94-1-4 and 94-1-5 be approved as submitted.
Adopted unanimously.
TREASURER/CONTROLLER
Res. No. 94-1-6
Purchases, Annual Commodity - Amines
Authorize the purchase of an estimated 101,625 lbs. of Neutralizing
Amines from Betz Industrial in the amount of$223,476.00 for use at
Moores Park Steam Plant for the period of February 1, 1994 to June 30,
1995. Pricing per lb. is firm through June 30, 1995. Quantities will be
released as required.
--------------------
The Betz Industrial bid was the best evaluated bid. Nalco Chemical
Company submitted a bid in the amount of$215,448.00. Calgon
Corporation submitted a bid of$119,618.45 but did not meet
specifications.
--------------------
BY COMMISSIONER WILLIAMS--
SECONDED BY COMMISSIONER STROLLE
That Resolution No. 94-1-6 be approved as submitted.
Adopted unanimously.
Page 6 Board Meeting Minutes
January 25. 1994
GENERAL MANAGER'S REMARKS
General Manager Pandy updated the Board on the following items:
Budget Variance Analysis. Mr. Pandy reported that a nine (9) percent increase in the
total operating and maintenance expense for December, 1993, as compared to the
previous 12 months, was due to more purchased power from Belle River. He noted that
while our purchased power went up $21 million, total operating expenses only went up
$9 million. Consequenty, in effect other expenses were reduced by $12 million. The
Commissioners received a handout of page E-5 of the Monthly Financial Statements
detailing the change in purchased power expenses for the last 12 months.
Energy Management System (EMS). Mr. Pandy reported on the implementation
progress of the Energy Management System (EMS) at the Brush Electric System
Operating Center (BESOC). The estimated project cost is $9.5 million, with $6.6 million
expended or committed to date. The BWL's net cash outlay to date is $1.8 million. He
noted that the contractor, Landis & Gyr, offered to provide DEC's newer Alpha platform
versus their VMS older platform. The BWL opted for the newer platform and agreed to a
six-month schedule extension, with an anticipated computer equipment delivery date of
December 1994. Design documents continue to be reviewed; hardware has been obtained
and is currently being integrated at the Landis & Gyr facility. Following discussion,
Commissioner Williams suggested updating the City on this project at a future meeting.
City Administration. A listing of City of Lansing department heads and Mayor
Hollister's immediate office staff was handed out for information. Mr. Pandy reported that
he has been invited by the Mayor to attend weekly staff meetings for the interchange of
information. He has also suggested to the Mayor that regular monthly meetings be held
between key directors from the BWL and the City to review plans, projects, construction
activities, and other topics of mutual concern.
Walk for Warmth Program. Mr. Pandy reported that the BWL raised $600 for the
Capital Area Community Services, Inc. (CACS) Walk for Warmth Program through the
efforts of many BWL employees who participated in the Roy Peffley 5 K Power
Run/Walk held on December 4, 1993. Special thanks was extended to the following
employees who were instrumental in organizing this event: Jim Chandler, Calvin Jones,
Ann Stump, Trent Bannon, and Roy Peffley. Funds raised in the Walk for Warmth
Program are used to assist low income families with their energy bills.
New President for DECo. It was reported that Anthony Earley was named president,
chief operating officer and a director of Detroit Edison Co. (DECo) effective March 1,
1994. John Lobbia, who formerly held the position of Detroit Edison president, will
continue as chairman and chief executive officer of the utility.
Board Meeting Minutes Page 7
January 25. 1994
DECo's REP to Supply Capacity and Energy. Mr. Pandy reported that Detroit Edison
Co. (DECo) has mailed requests for proposals to area utilities for purchasing a base of
1 OOOMW of capacity and energy with an option of up to an additional 1000MW for the
period June 6 through September 4, 1994. Proposals with an offer for 50MW or more are
to be submitted to DECo by February 18, 1994. The additional load requirement is
needed due to a fire in December at the Fermi 2 nuclear power plant in Monroe, Michigan.
This incident resulted in a complete shutdown of the plant. Mr. Pandy advised that the
BWL expects to offer 50-100MW depending on the seasonal load.
Weather Emergency Affects Coal Supply. The recent bitter cold weather, along with
the heavy snowfall in the coal field, taxed the BWL's coal handling capabilities. Mr. Pandy
noted that the ability to recover stockpile coal was hampered by a four-foot frozen crust
covering the pile at Erickson Station. Several employees present in the audience were
recognized for their leadership in coordinating BWL service during difficult conditions
caused by the freezing weather. The Commissioners applauded all the BWL employees
who worked exceptionally hard during bitterly cold conditions to restore utility services to
customers.
Functional Analysis/Rightsizing. Mr. Pandy reported that the executive staff has
completed a functional analysis of the Board of Water and Light and has determined that a
workforce of 800 employees or less is achievable without compromising essential services.
The reductions are necessary in order to keep BWL rates competitive as the utility moves
toward the next century. Mr. Pandy said he will be communicating with all BWL
employees tomorrow (January 26) on the need to control BWL costs and reduce the size
of the workforce between now and 1999.
Mr. Pandy outlined the recommendations of the Functional Analysis Report which focused
on the following issues:
A. A total of 111 position reductions were identified by payroll category.
B. Five special task forces have been assigned to study consolidation of
departments or work areas and to recommend appropriate staffing levels.
C. Potential effects on customer focus were listed.
D. Technology improvements to accompany workforce reductions for
increased productivity were discussed.
E. Three types of accelerated workforce reduction plans were identified:
(1) early retirement, (2) employee buyout, and (3) layoffs. Details of the
plan to focus on early retirement and employee buyout are expected to be
developed by the directors of the Treasurer/Controller and Human
Resources divisions. The plan could be offered in the third quarter of
1994.
Page 8 Board Meeting Minutes
January 25, 1994
F. An Implementation Task Force is to be formed to develop a plan for
implementing the workforce reduction. The task force's recommendations
are to be submitted by April, 1994.
H. Upon acceptance of this report by the Board of Commissioners, the report
will be immediately shared with management and union leaders, the Mayor
and City Council, and the news media through normal channels.
The Functional Analysis Report includes a recommendation to engage the consulting firm
of Right Associates to assist with planning timelines and addressing specific personnel and
staffing issues.
Following discussion, the Commissioners concurred with the recommendations of the
Functional Analysis Report. The workforce reduction plan is to be reviewed in more
detail with the Board at a future Committee of the Whole meeting prior to taking official
action.
REMARKS BY BOARD COMMISSIONERS
Revenue Bond Sale Status Report. Commissioner Strolle inquired about the status of
the local bond sale. Treasurer/Controller Tousley responded that the sale has been very
successful. He noted that as of 5:00 p.m. (January 25), all of the five and ten-year bonds
were sold, with $450,000 of the 15-year bonds remaining to be sold.
PUBLIC COMMENTS
Harold Leeman, Jr., 529 N. Francis, Lansing, commented on General Manager Pandy's
involvement in the Mayor's weekly cabinet meetings. Mr. Pandy clarified that he is not
officially a cabinet member, but that he has been invited by the Mayor to attend the weekly
meetings to exchange information of mutual concern.
Mr. Leeman asked for a progress report on the Clippert Street guard rail, which the BWL
is coordinating with the Michigan Department of Natural Resources. Staff will follow-up
and report back.
Mr. Leeman asked when would be the appropriate time for members of the public to make
input to the BWL's Fiscal 1995 budget priorities. Mr. Pandy responded that preliminary
budgeting for Fiscal 1995 is in process. Budget suggestions should be submitted to him or
the Board as soon as possible for review. The Board will be taking action on a proposed
Fiscal 1995 operating budget in May, 1994.
Page 9
Board Meeting Minutes
January 25. 1994
Lloyd Teets, 116 E. Elm Street, Lansing, spoke on the following issues: (1)"The bottom
line" on BL annual reports, (2) expressed reservation regarding the Mid-Michigan
W
Water proposal, and (3) supports fiber optics technology and also suggested that wireless
communications be included in future planning.
EXCUSED ABSENCES
BY CO1VMSSIONER SEBOLT--
SECONDED BY COMNIISSIONER CHRISTIAN
That the absences of Commissioners Evans, Hassler, and O'Leary be
excused.
Adopted unanimously.
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned at 6:05 p.m.
Q�', ?�UZt.�
�Y
S �/a, Secretary
Filed: February 2, 1994
Marilynn Slade, City Clerk
01 -14-94A08 : 36 RCVu
MINUTES OF SPECIAL MEETING
OF THE BOARD OF COMMISSIONERS
LANSING BOARD OF WATER AND LIGHT
Tuesday, January 11, 1994
The Board of Commissioners met in Special Session at 5.30 p.m. in the Board
Room, 123 West Ottawa Street, Lansing, Michigan. The meeting was called to
order by Chairman Hassler.
Present: Commissioners Belen, Christian, Hassler, O'Leary, Strolle,
and Williams -6
Absent: Commissioners Evans and Sebolt -2
General Manager Pandy, Treasurer/Controller Tousley, Secretary Sova and
Executive Staff members were present (An attendance list is filed in the
Corporate Secretary's Office.)
NOTICE OF SPECIAL MEETING
Notice is hereby given that a Special Meeting of the Board of Water and
Light Commissioners of the City of Lansing, Michigan, will be held at
5:30 p.m. on Tuesday, January 11, 1994, in the Board Room, 123 West
Ottawa Street, Lansing, Michigan.
Purpose of Meeting: To consider:
L Second Supplemental Revenue Bond Resolution
Amending Amended and Restated Bond Resolution
and First Supplemental Revenue Bond Resolution.
2. Resolution to Award Revenue Bonds.
The Chairman announced that this is the time set for considering the Second
Supplemental Revenue Bond Resolution which changes the dates of the bonds,
increases the rate covenant to 150% and increases the coverage required for
the issuance of additional bonds to 150%.
The following resolution was offered by Commissioner Williams who moved its
adoption, and seconded by Commissioner Belen.
2 January 11, 1994
SECOND SUPPLEMENTAL REVENUE BOND RESOLUTION AMENDING
AMENDED AND RESTATED BOND RESOLUTION AND
FIRST SUPPLEMENTAL REVENUE BOND RESOLUTION
(Resolution 94-1-1)
RESOLVED THAT:
Section 1 . Supplemental Resolution. This Second Supplemental
Revenue Bond Resolution is supplemental to, and is adopted in accordance
with, Sections 23 (a) (i) and (ii) of the Bond Resolution.
Section 2. Definitions. Unless the context indicates that another meaning
is intended, the following words and terms used in this Second Supplemental
Revenue Bond Resolution shall have the following meanings, and any other
words and terms which are defined in Act 94 or in the Bond Resolution shall
have the meanings as therein defined-
(i) Bond Resolution means the Amended And Restated
Bond Resolution adopted by the Board on October 24, 1989.
(ii) First Supplemental Revenue Bond Resolution"
means the First Supplemental Revenue Bond Resolution
Authorizing Water Supply and Electric Utility System Revenue
Bonds of the City of Lansing, Michigan, adopted by the Board on
October 26, 1993.
Section 3. Amendment of Definitions. Section 2 (ii) of the First
Supplemental Revenue Bond Resolution is amended to state:
(ii) "Series 1994A Bonds" means the Water Supply And
Electric Utility System Revenue Bonds, Series 1994A authorized
by Section 4 of the First Supplemental Revenue Bond Resolution.
Section 2 (iii) of the First Supplemental Revenue Bond Resolution is amended to
state:
(iii) "Series 1994B Bonds" means the Water Supply And
Electric Utility System Revenue Bonds, Series 1994B authorized
by Section 4 of the First Supplemental Revenue Bond Resolution.
Section 2 (iv) of the First Supplemental Revenue Bond Resolution is amended to
state:
(iv) "1994 Award Resolution" means the Resolution of the
Board Authorizing The Sale And Delivery Of The 1994 Bonds.
Section 2 (v) of the First Supplemental Revenue Bond Resolution is amended to
state:
(v) "1994 Bonds" means the Series 1994A Bonds and the
Series 1994B Bonds.
January 11, 1994 3
Section 4. Amendment of Designation of Bonds. Throughout the First
Supplemental Revenue Bond Resolution, the terms "Water Supply And Electric
Utility System Revenue Bonds, Series 1993A" and "Water Supply And Electric
Utility System Revenue Bonds, Series 199313" are amended to be: "Water
Supply And Electric Utility System Revenue Bonds, Series 1994A" and "Water
Supply And Electric Utility System Revenue Bonds, Series 1994B," respectively,
and all references to "Series 1993A Bonds" and "Series 1993B Bonds" and
"1993 Bonds" are amended to "Series 1994A Bonds," Series 1994B Bonds" and
"1994 Bonds," respectively. All references in the First Supplemental Revenue
Bond Resolution to "1993 Award Resolution" are amended to "1994 Award
Resolution."
Section 5. Amendment of Section 9 of Amended And Restated Bond
Resolution. Section 9 of the Bond Resolution is amended to provide:
The Board will at all times fix, establish, maintain and
collect rates, fees and charges for the sale of the
output, capacity, use or service of the System which,
together with other income, are reasonably expected
to yield Net Revenues to at least 150% of the
Aggregate Debt Service Requirement for the
forthcoming twelve (12) month period plus such
amount as is necessary to comply with all covenants
in this Bond Resolution and to pay all charges and
liens whatsoever payable out of Net Revenues in
such period.
Section 6. Amendment of Section 18 (a) of Amended And Restated Bond
Resolution. Section 18 (a) of the Bond Resolution is amended to provide:
(a) For repairs, extensions, enlargements and
improvements to the System or for the purpose
of refunding a part of any Outstanding Bonds
(unless such partial refunding is done in
compliance with (b) below) and paying costs of
issuing such Additional Bonds, including
deposits which may be required to be made to
a bond reserve account. Bonds for such
purposes shall not be issued pursuant to this
subparagraph (a) unless the average actual or
augmented Net Revenues of the System for
the fiscal year of the System ending not more
than 15 months prior to the sale of Additional
Bonds shall be equal to at least one hundred
fifty percent (150%) of the maximum Aggregate
Debt Service Requirement in any current or
future fiscal year on the Outstanding Bonds
and on the Additional Bonds then being
issued. If the Additional Bonds are to be
issued in whole or in part for refunding
Outstanding Bonds, the maximum Aggregate
Debt Service shall be determined by deducting
from the principal and interest requirements for
each operating year the annual Aggregate
Debt Service Requirement of any Bonds to be
4 January 11, 1994
refunded from the proceeds of the Additional
Bonds.
The remainder of Section 18 of the Bond Resolution shall not be modified or
amended by this Section 6.
Section 7. Conflicting Resolutions. All resolutions or orders, or parts
thereof, in conflict with the provisions of this Second Supplemental Revenue
Bond Resolution are repealed.
Section 8. Publication and Recordation. This Second Supplemental
Revenue Bond Resolution shall be published in full in The Lansing State
Journal, a newspaper of general circulation in the City of Lansing qualified
under State law to publish legal notices, promptly after its adoption, and shall be
recorded in the Minutes of the Board in such recording, authenticated by the
signatures of the Chairperson and the Secretary.
Section 9. Effective Date. This Second Supplemental Revenue Bond
Resolution shall be effective immediately upon its adoption.
Adopted and signed on the 11 th day of January, 1994.
C,hairpers6fi -Coroogat ecrefary
IN FAVOR: Commissioners Belen, Christian, Hassler, O'Leary, Strolle,
and Williams.
AGAINST: None
ABSENT: Commissioners Evans and Sebolt.
The Chairman announced that this is the time set for considering
the proposals for the purchase of the Water Supply and Electric Utility System
Revenue Bonds, Series 1994A, as advertised in The Detroit Legal News on
December 23, 1993.
The Treasurer/Controller presented the following proposals which
had been received on or before 11:00 o'clock p.m., Eastern Time, on this day:
Net Net
Interest Interest
Bidder Discount Cost Rate
Chemical Securities, Inc. 199,646.50 $15,389,611.71 5.029723t
A.G. Edwards & Sons, Inc. 196,000.00 15,546,289.27 5.080
Donaldson, Lufkin & Jenrette
Securities Corporation 199,598.05 15,543,977.43 5.080174
Raffensperger, Hughes & Co. ,
Inc. 200,000.00 15,939,934.00 5.2095
Merrill Lynch & Co. 199,864.75 15,437,735.79 5.0454
Clayton Brown & Associates,
Inc. 199,791.05 15,853,737.72 5.1814
Kidder, Peabody & Co. , Inc. 199,647.20 15,893,589.39 5.194436
PaineWebber, Inc. 200,000.00 15,904,993.54 5.1981
Raymond James & Associates 199,821.55 15,543,705.92 5.0800
Kemper Securities, Inc. 199,848.05 15,509,594.51 5.0689
January 11, 1994 5
The following resolution was offered by Commissioner Belen, who
moved its adoption, and seconded by Commissioner Williams.
AWARD RESOLUTION
(Resolution 94-1-2)
RESOLVED THAT:
1 . Unless otherwise defined herein or the context indicates a
contrary meaning, capitalized terms used in this Award Resolution shall have the
same meaning as in the Amended And Restated Bond Resolution adopted on
October 24, 1989 as supplemented by the First Supplemental Revenue Bond
Resolution adopted by the Board on October 26, 1993, and by the Second
Supplemental Revenue Bond Resolution adopted by the Board on January 11,
1994 (together, the "Bond Resolution").
2. The aggregate principal amount of Series 1994A Bonds
shall be $20,000,000 maturing on July 1 in the years and amounts set forth in
paragraph 3 of this Award Resolution.
3. The proposal of Chemical Securities, Inc. to purchase the
Series 1994A Bonds at par and accrued interest to the date of delivery, less a
discount of $199,646.50, and bearing interest per annum as follows:
Year of Principal Interest
Maturity Amount Rate
2000 $ 235, 000 6.20 V
2001 100, 000 6.20
2002 175,000 6.20
2003 240, 000 6.20
2004 675,000 6.20
2005 1, 650, 000 4.70
2006 1,750,000 4.80
2007 1, 850, 000 4.875
2008 1, 925, 000 4.90
2009 2,035,000 4.90
2010 2,150, 000 4.90
2011 2,265, 000 4.90
2012 2,410, 000 5.00
2013 2,540, 000 5. 00
being the bid which results in the lowest net interest cost, is accepted. All other
proposals are rejected and the good faith checks of the unsuccessful bidders are
ordered returned.
4. The Series 1994A Bonds shall be issued in accordance with
the terms set forth in the Bond Resolution and bearing interest as set forth
above.
5. The actions of the Treasurer/Controller in fixing January 11,
1994, for receipt of bids for the Series 1994A Bonds and in causing a Notice Of
Sale to be published in The Detroit Legal News on December 23, 1993, is
approved.
6. The form, substance and distribution of the Official
Statement relating to the Series 1994A Bonds and the Series 1994B Bonds
dated December 20, 1993, is approved and delivery of copies (revised to reflect
6 January 11, 1994
the interest rates adopted by this Award Resolution and to delete references to
the date for receiving bids) in accordance with the Notice Of Sale is authorized.
7. Series 1994B Bond maturing on July 1 in the years and
principal amounts and bearing interest on January 1 and July 1, commencing
July 1, 1994, as follows shall be offered for sale in Michigan to individuals
bearing interest as follows:
Year of Principal Interest
Maturity Amount Rate
1998 $1, 000, 000 3 .956
2003 1, 000, 000 4 .60
2008 1, 000, 000 5 .00
8. To the extent orders for Series 1994B Bonds exceed the
amount of Series 1994B Bonds available, the series 1994B Bonds shall be sold
on a "first come, first served basis." The General Manager and the
Treasurer/Controller are each authorized and directed to establish the
procedures for and complete the sale and delivery of the Series 1994B Bonds.
9. All resolutions or orders, or parts thereof, in conflict with this
Award Resolution are repealed.
its adoption. 10. This Award Resolution shall be effective immediately upon
Adopted and signed on the 11 th day of January, 1994.
(Za� �-4
'?, ,4� law (A,�V�
Chairman 61 Corp Se etary
In Favor: Commissioners Belen, Christian, Hassler, O'Leary, Strolle,
and Williams
Against: None
Absent: Commissioners Evans and Sebolt
ADJOURNMENT
On motion of Commissioner Christian, the Board adjourned
at 5:45 p.m.
rR'
May ova, Secretary
Filed: January 12, 1994
1�—��Marilynn Slade, City Clerk
01 -12-9�'411 :55 RCVD
MINUTES OF SPECIAL MEETING
OF THE BOARD OF COMMISSIONERS
LANSING BOARD OF WATER AND LIGHT
Tuesday, January 11, 1994
The Board of Com
Room, 123 west missioners met in Special Session at 5:30
order b Ottawa Street, Lansing, Michigan. The eti g was calle Board
Y Chairman Hassler. me d to
Present:
Commissioners Belen, Christian, Hassler, O'Leary,
and Williams -6 ry, Strolle,
Absent:
Commissioners Evans and Sebolt -2
General Manager Pandy, Treasurer/Controller Tousley Secretary Sova an
p members were present (An attendance list is filed in the d
Executive Staff
Corporate Secretary's Office.)
NOTICE OF SPECIAL MEETING
Notice is hereby given that a Special Meetin o the
Light Commissioners of the c; o
g Board of Water and
1'n' on Tuesd f Lansing, Michigan, will be held at
Ottawa Street, �' January 11, 1994, in the Board Room, 123 West
Lallsing Michigan.
PurpoSe ofMeeting: To consider:
1 Second Supplemental Revenue Bond Resolution
Amending Amended and Restated Bond Resolution
and First Supplemental Revenue Bond Resolution.
2 Resolution to Award Revenue Bonds.
The Chairman announced that this is
Supplemental Revenue the time set for considering the Se
increases the rate cove Bond Resolution which changes the dates of the and
the issuance Want to s to 1 and increases the coverage requiredbonds,
Of additional bonds to �50%.
The followin for
adoption g resolution was offered b
and seconded b Y Commissioner Williams who moved its
Y Cornrnissioner Belen.
January 11, 1994
2
RESOLUTION AMENDIN
TED BOND RESO RESONU ON
SECOND S
UPPLEMENTAL R TAENUE BOND D
AMENDED AND RES VENUE BO
T SUPPLEMENTAL RE 94.1_1)
FIRS (Resolution
THAT Supplemental
RESOLVED This Second tedi accordance
lemental Resolution. and is adop
Section I . esolution is supplemental to,
►► of the Bond Resolution. eanin9
Revenue Bond R and ( �) ental
with, Sections 23 (a) ►) econd Supplem other
nless the context indicattes that another
Section 2. Defies. Sand terms used in this and any
word means Bond Resolution shall
the following
is intended, the f shall have Act 94 or in
Revenue Bond Resolution are defined in
words and terms which And Restated
have the meanings as therein defined'. the Amended A
means ctober 24, 19B9.
(i) "Bond Resolution-
by the Board on O
Bond Resolution adoptedBond Resolution"
lemental Revenue end Resolution
(ii) "First Suemental Revenue B S stem Revenue
I and Electric Utility Sy of the Board on
means the First Supplemental i
by
Authorizing Water of Lansing,
Michigan, adop
Bonds of the City
1993. 2 ii of the First
October 26, efinitions- Section '
Amendment of D ended l And
Section 3- ater Supp Y
ental Revenue Bond Resolution is a eans the W author
Supplem onds m
Series 1994A au
(ii) ,,Series 1994A B onds
t System Revenue 6 ended to
► lemental Revenue Bond Resolut►o
Electric Ut►14 of the First Supp
by Section l Revenue Bond Resolution is am
Section 2 (iii) of the First Supplementa
ds means the Water Supply An
d
state, 4g Bon 1 gg4B authorized
,,Series 199 onds, Series esolution.
S stem Revenue B ended to
bySectionil4 of the First Supplemental Revenue Bond
Section 2 (iv) of the First Supplementa
I Revenue Bond Resolution is am
S Resolution of the
state: ,, means the R
Sale And delivery Of The 1994 Bonds.
ded to
"1994 Award Resolution
(iv) The S amen
Board Authorizing tali Revenue Bond Resolution is
Section 2 (v) of the First Supplemen
the Series 1994A Bonds and the
state: (
v) "1994 Bonds means
Series19948 Bonds.
3
January 11, 1994
First
Section 4. Amendment of De atthe terion of m sn Wat Throughout SuplyAndeElectric
Supplemental Revenue Bond Resolutionp And Electric
Utility System Revenue Bonds, Series 1993A" and "Water Supply
Utility System Revenue Bonds, Se Revenue
1993 Bonds aSeriesnded to 1994A" a d "Water
Supply And Electric Utility Syste
Supply And Electric Utility System Revenue Bonds, Series 1994B," respectively,
Bonds" and
and all references to "Series 1993A Bonds"
Bonds," Series B994B Bonds" and
"1993 Bonds are amended to Seri
111994 Bonds," respectively. All ferences Resolutions ahe amendee First dplo�19941Awr Revenue
Bond Resolution to 1993 Award
Resolution.
Section 5. Amendment of Secesol tionuion of As amendedmended nto peov dea Bond
Res_Resolution. Section 9 of the Bond R
The Board will at all times fix establish,
ftabheh, mintain le of the and
collect rates, fees and chargs stem which,
output, capacity, use or service of the Sy
together with other income, are reasonably expected
to yield Net Revenues to at least 150% of the
Aggregate Debt Service Requirement
for the
such
forthcoming twelve (12) month
period
l with all covenants
amount as is necessary comply
all charges and
in this Bond Resolution and to pay 9
liens whatsoever payable out of Net Revenues in
such period.
state
Section 6. Amendment of Section 1 solutionAs amendedmended nto peov de-. Bond
Resolution. Section 18 (a) of the Bond Re
(a) For repairs, extensions,stem enlargements for the purpose
improvements to the y
of refunding a part of any Outstanding Bonds
(unless such partial refunding is done in compliance with (b) below) and paying costs of
issuing such Additional Bonds, including
deposits which may be required to be made to
a bond reserve account. Bonds for such
purposes shall not be issued pursuant to this
subparagraph (a) unless the average actual or
augmented Net Revenues of the System for
the fiscal year of the System ending not more
than 15 months prior to the sale of Additional
Bonds shall be equal to at least one hundred
fifty percent (150%) of the maximum Aggregate
Debt Service Requirement in any current or
future fiscal year on the Outstanding Bonds
and on the Additional Bonds then being
issued. If the Additional Bonds are to be
issued in whole or in part for refunding
Outstanding Bonds, the maximum Aggregate
Debt Service shall be determined by deducting
from the principa annual Aggregate rest s for
each operating year the
Debt Service Requirement of any Bonds to be
4
January 11, 1994
refunded from the proceeds of the Additional
Bonds.
The remainder of Section 18 of the Bond Resolution shall not be modified or
amended by this Section 6.
Section 7. Conflictina Resolutions. All resolutions or orders, or parts
thereof, in conflict with the provisions of this Second Supplemental Revenue
Bond Resolution are repealed.
Section 8. Publication and Recordation. This Second Supplemental
Revenue Bond Resolution shall be published in full in The Lansing State
Journal, a newspaper of general circulation in the City of Lansing qualified
under State law to publish legal notices, promptly after its adoption, and shall be
recorded in the Minutes of the Board in such recording, authenticated by the
signatures of the Chairperson and the Secretary.
Section 9. Effective Date. This Second Supplemental Revenue Bond
Resolution shall be effective immediately upon its adoption.
Adopted and signed on the 11 th day of January, 1994.
airpers Q-
Corpo t ecretary
IN FAVOR: Commissioners Belen, Christian, Hassler, O'Leary, Strolle,
and Williams.
AGAINST' None
ABSENT: Commissioners Evans and Sebolt.
The Chairman announced that this is the time set for considering
the proposals for the purchase of the Water Supply and Electric Utility System
Revenue Bonds, Series 1994A, as advertised in The Detroit Legal News on
December 23, 1993.
The Treasurer/Controller presented the following proposals which
had been received on or before 11'00 o'clock p.m., Eastern Time, on this day:
Net Net
Bidder Discount Interest Interest
Chemical Securities, Inc. List Rate
A.G. Edwards & Sons, Inc. 199,646.50 $15,389,611.71
Donaldson, Lufkin & Jenrette 196.000.00 15,546,289.27 5.080723}
Securities Corporation
Raffensperger, Hughes & Co. , 199,598.05 15,543,977.43
Inc. 5.
080174
Merrill Lynch & Co. 200,000.00 15,939,934.00 5.2095
199,864.75
Clayton Brown & Associates, 15,437,735,79 5.0454
Inc.
Kidder, Peabody99,791.05 15,853,737.72
PaineWebbe , Ic& Co. ,Co Inc. 199,647.20 5.1814
r 15,893,589.39 5.194436
Raymond James & Associates 200,000.00 15,904,993.54 Kemper Securities, Inc. 199,821.55 15 5.1981
199,848.05 ,543,705.92 5.0800
15,509,594.51
5.0689
5
January 11, 1994
resolution was offered by Commissioner Belen, who
The following Commissioner Williams.
moved its adoption, and seconded by
AWARD RESOLUTION
(Resolution 94-1-2)
RESOLVED THAT:
rwise used
nethiseAwa d Resolutionein or the indicates a
1 . Unless othe shall have the
contrary meaning, capitalized terms used
meaning as in the Amended And RestatedFirst Supplemental emental tRevenuuetBond
ed on
same m g supplemented by the Fir 1993, the Second
October 24, 1989 as and
Resolution adopted by the Board
on o OctOadop ed by e Board on January 11,
Supplemental Revenue Bond
1994 (together, the "Bond Resolution").
2. The aggregate principal amount
ears and eamou ries ns Bonds
setforthin
shall be $20,000,000 maturing on July 1 in they
paragraph 3 of this Award Resolution. purchase the
3. The proposal of Chem test toical Securities, te of delivery,
toory less a
Series 1994A Bonds at par and accrued
teresdiscount of $199,646.50, and bearing t per annumaas follows'.
Interest
Year of Principal __Rate
Amount
Maturity 6 .20
100
2000 $ ,000 6 .20
2001 00,000 6.20
200 175,000 6.20
2003 240,000 6.20
2004 675,000 4.70
5 1, 650,000 4.80
200 1,750,000 4.875
2006
1,850,000 4.90
8 1, 925,000 4.90
200 0 2,035, 000 4.90
2009
2, 150,000 4.90
200 2,265,000 5.00
2011
2,410,000 5.00
2013 2, 540,000
id which results in the lowest net interestof the unsucce is ssful bidders are
. All other
being the b good faith checks
proposals are rejected and the
ordered returned.
onds shall nterest as set fortued in h
with
4. The Series 1994A B .n
the terms set forth in the Bond Resolution and bears g
above.
ds and in causing a Notice Of
5 The actions of the Treasurer/Controller o in fixing January
1994, for receipt of bids for the Series 1 al News on December 23, 1993, is
Sale to be published in The Detroit Leg
approved.
6. The form, substance and distribution
Seriesh1994BiBonds
Statement relating to the 3 es approved and delivery of copies (revised to reflect
dated December 20,
6
January 11, 1994
the interest rates adopted by this Award Resolution and to delete references
the date for receiving bids) in accordance with the Notice Of Sale is autho raiz to
zed.
7. Series 199413 Bond maturing on July 1 in the years and
principal amounts and bearing interest on January 1 and July 1, commencing
July 1, 1994, as follows shall be offered for sale in Michigan to individual
bearing interest as follows:
s
Year of
Matures Principal
Amount Interest
1998 —_Rate
2003 $1,000, 000
2008 1,000, 000 3 . 95"s
1,000, 000 4.60
5 . 0o
8. To the extent orders for Series 1994B Bonds exceed the
amount of Series 1994E Bonds available, the series 1994B Bonds shall be sold
on a "first come, first served basis." The General Manager and the
Treasurer/Controller are each authorized and directed to establish the
procedures for and complete the sale and delivery of the Series 1994B Bonds.
9. All resolutions or orders, or parts thereof, in conflict with this
Award Resolution are repealed.
10. This Award Resolution shall be effective immediately upon
its adoption.
Adopted and signed on the 11 th day of January, 1994.
Chairman
Corp Se et y
In Favor: Commissioners Belen, Christian, Hassler, O'Leary, Strolle
and Williams
Against: None
Absent: Commissioners Evans and Sebolt
ADJOURNMENT
at 5:45 p.m. On motion of Commissioner Christian, the Board adjourned
ry eova
Secretary
Filed: January 12, 1994
Marilynn Slade City Clerk
BOARD OF WATER'AND LIGHT
PUBLIC NOTICE
SPECIAL MEETING
NOTICE IS HEREBY GIVEN, That a Special Meeting of the Board of Water and Light
Commissioners of the City of Lansing, Michigan, will be held at 5:30 p.m. on Tuesday,
January 11, 1994, in the second floor boardroom of the Board of Water and Light Office
Building, 123 West Ottawa Street, Lansing, Michigan.
PURPOSE OF MEETING. TO CONSIDER:
1. SECOND SUPPLEMENTAL REVENUE BOND RESOLUTION
AMENDING AMENDED AND RESTATED BOND RESOLUTION AND
FIRST.SUPPLEMENTAL REVENUE BOND RESOLUTION
2. RESOLUTION TO AWARD REVENUE BONDS
COMMITTEE OF THE WHOLE MEETING
NOTICE IS FURTHER GIVEN, That the Commissioners will meet in a Committee of the Whole
immediately following the Special Meeting in the aforesaid boardroom.
PURPOSE OF MEETING: 1. DISCUSS AGENDA TOPICS FOR JOINT BWL/CITY MEETING
2. REVIEW(A)ARTICLES OF INCORPORATION AND BYLAWS OF THE
MID-MICHIGAN WATER AUTHORITY AND(B) DRAFT
RESOLUTION TO BE PRESENTED TO CITY COUNCIL
3. PRESENTATION ON TOTAL QUALITY IMPROVEMENT
-METER READING
In accordance ivith the American ivith Disabilities Act(ADA),please call the Corporate
Secretary's Office at 37I-6033 at least three business days prior to a public meeting to
request special accommodations such as mobility, visual, hearing, or other assistance.
Certified by:
BOARD OF WATER AND LIGHT
01 -0' -94Au8 : 33 RCVD
J'
Mary E. So
Corporate cretary
Post: 1/7/94
cc: B%L City:
Board of Commissioners City Clerk's Office
Executive starf City Council Office
B. Cochran (Security) mayor's Office
M. Fales (Building Maintenance)