HomeMy WebLinkAbout2000 Minutes BOWL 12:35 DEC 22, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #88240 PAGE: 2118
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MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, December 19, 2000
The Board of Commissioners met in rescheduled regular session at 5:35 p.m., in the Boardroom
of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair Diane Royal called
the meeting to order.
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Charles M.
Creamer, Nancy W. Duncan, David O'Leary, and Diane R. Royal. ;.,
Absent: Commissioner Ernest J. Christian and Mark A. Murray.
The Secretary declared a quorum present. c.7
All said the Pledge of Allegiance.
APPROVAL OF MINUTES
Motion made by Commissioner Callen, seconded by Commissioner O'Leary, to approve the
minutes of regular session held October 24, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO
SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER SUBJECT
NOW, OR AT THE END OF THE MEETING.
No persons spoke.
CONIA-IUNICATIONS
Letter from Frederick L. Stackable regarding his building, commonly known as 300, 306 and
310 North Grand Avenue, Lansing.
Received and placed on file. Management's letter, dated October 27, 2000, in response to Mr.
Stackable's concern was reviewed and placed on file.
Letter from Mary Ellen Getzmiller regarding her utility bill.
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December 19,2000
Received and placed on file. Management's letter, dated November 13, 2000, in response to Ms.
Getzmiller's request was reviewed and placed on file.
Thank you card from Commissioner Rosemarie Aquilina in appreciation for the flowers sent by
the Board as congratulations for the birth of her daughter.
Received and placed on file.
REPORTS OF COMMITTEES
2000-12-1
FINANCE COMMITTEE REPORT
The Finance committee met on October 30, 2000 to review the audit of the Board of Water and
Light Enterprise Fund.
Committee members in attendance were Chair Mark A. Murray, Commissioners Ronald C.
Callen, Nancy W. Duncan, David O'Leary and Board Chair Diane Royal.
Robert Phelps, Senior Manager, and Michael Stvczenski, partner, of Deloitte & Touche
presented the results of the audit for fiscal year ended June 30, 2000. They issued a clean
opinion of the financial statements of the Board of Water and Light(BWL) and answered
questions raised by committee members. The auditors reported that they received the full
cooperation of management and staff and had unrestricted access to senior management in the
performance of their audit. The audit report was filed with the City of Lansing on October 18,
2000. The BWL Pension Fund Trustees at their upcoming annual meeting will review the audits
for the Employees' Defined Benefit Pension Plan and Employees Defined Contribution Pension
Plan.
The Committee agreed to meet on a quarterly basis to cover key issues pertaining to the utility's
financial and operating condition. Issues identified for future discussion include:
• The utility's performance measures and performance audits
• Bond indebtedness and credit rating
• Capital expenditures and returns
• Budget review
• Rate review
• Quarterly reports from the Internal Auditor on the general condition of the utility
Staff was asked to identify issues related to Financial Accounting Standard (FAS) 70. Staff is to
submit to the committee for review a written report that describes the advantages and
disadvantages of deferrals and their impacts on the financial statements, budgets, and customer
bills. The report should also include a review of utility industry trends with respect to significant
accounting practices such as construction work in process and workers' compensation, for
example.
The Finance Committee recommends the following resolution:
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Bbard Minides Page 121
December 19.2000
Resolution Authorizing Filing
Audits ii,ith the State Treasurer
RESOLVED, That the Corporate Secretary be directed to file copies of the Fiscal
Year 2000 audit reports of the Board of Water and Light Enterprise Fund, the
Defined Benefit Pension Plan, Defined Contribution Pension Plan and the reports
on auditing procedures Nvith the State Treasurer as required by the Uniform
Budgeting and Accounting Act(Public Act 2 of 1968, as amended).
Submitted by,
Finance Committee
Mark A. Murray, Chair
Moved by Commissioner O'Leary, seconded by Commissioner Creamer, that the Finance
Committee Report be considered as being read in full and that the resolution be approved.
Action: Carried unanimously.
2000-12-2
BOARD REPORT OF PLANNING RETREAT
The Board of Commissioners held a planuling retreat on Saturday, November 18, 2000, at the
University Club of Michigan State University from 8:00 a.m. to 11:45 a.m.
Present: Commissioners Ronald Callen, Charles Creamer, Nancy Duncan, Mark
Murrav, David O'Leary, and Diane Royal.
Absent: Commissioners Rosemarie Aquilina and Ernest Christian.
Staff General Manager Joseph Pandy, Jr. and Corporate Secretary Mary Sova
Present:
The Commissioners met to discuss the role of the Board. The discussion centered on their
responsibility and function in making policy decisions that will assure the delivery of reliable
and economical utility services now and in the future. To accomplish this, the Commissioners
agreed that their focus as a Board should be to:
■ Set strategic direction of the organization
■ Monitor organizational performance
■ Review and approve significant policies designed to ensure compliance with law and
ethical standards
■ Perform regulatory functions by establishing the utility's animal budget and setting the
rates for utility services
0 Act in the long tern best interest of the utility with all due diligence
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December 19,2000
■ Represent the interests of the Owners of the utility
The Commissioners concurred that their prunary responsibility is to oversee the management of
the BWL and not the day-to-day business operations. They identified ways to work most
productively to meet their policymaking obligations. They spent some time defining the
authority and responsibilities of board committees. They concluded that issues nonnally taken to
the Committee of the Whole nil-lit be better delegated to board committees to thoroughly study
topics of importance. The following committee structure was defined:
Regular Executive Finance Human Resources Nominating Pension
Board Committee Committee Committee Committee Trustees
(4 Members) (4 Members) (4 Members) (4 Members) (All)
(Quarterly)
• Committer Policies&Procedures Finan-1 Employee Survey Results Nominate slate of Implement
Provisions of
recommendations Strategic Review Performance • Iabor Relations officers
• Reco=endaticns by Cperationa! Review • Monitor Financial Activity Suggest Beard the Pcnsron
Committee Chairs Performance—metrics Capital Budget oCthe Pension Fmd candidates Tart
• Receives all committee revievr • Annual G&d.S (actuarial evaluation and • Oversee
inf.— Risk Assessment Budeet(Sales) pension iry .rnent) Management of
• Delegates certain authority Ad Hoc Assigments Repots to the Board and Pension Assets
to Executive C.—ittce Consult as appropn a:e Penvon Trustees
• lob Perfonnarice Evaluation
• Staffhppointments
In light of the above listed functions of the board and their committees, the Commissioners
discussed the importance for management to provide the Commissioners with adequate and
timely documentation on a systematic basis. This information helps to increase the
Commissioners' overall knowledge of the BWL. It also affects their ability to properly perform
their accountability function and to demonstrate the proper discharge of their duties and
responsibilities.
The Commissioners concurred with the following meeting activities:
■ All regular board and committee meetings will be open to the public as provided by
statute for meetings of public bodies.
■ Meetings will be longer, but less frequent.
■ Board meetings will be held quarterly for duration of up to one-half day.
■ The committee chair will serve as an advocate at regular board meetings to clarify the
subject matter discussed at the committee level.
■ Staff support will be utilized by committees to conduct research on the subject at hand.
■ Management presentations at Board or committee meetings will be left at the discretion
of the General Manager.
The General Manager presented an overview of the agreement between the City of Lansing and
the BWL on tilen return o equity. The Commissioners discussed the need to establish ad hoc
assignunents to perforni specific tasks that may arise from time to time. The first such ad hoc
assignment was created to look into the annual payment in lieu of taxes to the City. An ad hoc
negotiations team was formed consisting of Commissioner Dave O'Leary(designated as the
chair), Mark Murray and Diane Royal.
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December 19,2000
With the above conclusions reached by the Commissioners, staff was directed to prepare the
following documents for review and consideration at the January Board meeting:
Revised draft of the Board's Rules of Administrative Procedure urcorporating the changes
discussed.
■ Revised schedule of regular board and committee meetings, based on issues that would
normally come before the full board or one of its committees.
The plalming session adjourned at 11:45 a.m.
Aloved by Commissioner Duncan, seconded by Commissioner O'Leary, thatthe Board Report
of the Planning Retreat be considered as being read in full.
Action: Carried unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
Background nzaterials on items presented are on file in the Office of the Corporate Secretary.
2000-12-3
KELLY SERVICES AS PRIMARY VENDOR FOR TEMPORARY CLERICAL AND
TECHNICAL EMPLOYEES
RESOLVED, That the Board of Water and Light enter into a three-year contract with Kelly
Services for approximately $1.3 million to be the primary vendor for temporary employees for
clerical and technical positions covering the period of December 1, 2000 through November 30,
2003.
Aloved by Commissioner Aquilina, seconded by Commissioner Duncan, that the resolution be
approved.
Action: Carried unanimously.
2000-12-4
SPECIALIZED MOBILE RADIO LICENSE SOLD TO NEXTEL
RESOLVED, That the 800 MHz Specialized Mobile Radio (SMR) licenses issued by the Federal
Communications Commission (FCC) be sold to Nextel West Corporation, and that the General
Manager be authorized to execute the agreement to effect the sale of the licenses.
--------------------
Nextel will compensate BWL for the market value of these licenses. The purchase of these
licenses is subject to a confidentiality agreement with Nextel Vilest Corporation.
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December 19,2000
A/Ioved by Commissioner Duncan, seconded by Commissioner Aquilina, that the resolution be
approved.
Discussion: General Manager Pandy briefed the Board on the terns and conditions of the
agreement.
Action: Carried unanimously.
2000-12-5
REVISED WATER RATE NO. 3—WATER SYSTEM CONNECTION FEES
RESOLVED, That the proposed Water Rate No. 3 —Water System Connection Fees, appended
to these minutes (see.Attachmenti) be adopted and made effective for water service connections
made on or after January 19, 2001.
FURTHER RESOLVED, That the rate schedule for Water Rate No. 3 —Water System
Connection Fees adopted July 25, 2000 and effective January 1, 2001, be rescinded effective
immediately.
Moved by Commissioner O'Leary, seconded by Commissioner Creamer, that the resolutiai be
approved.
Discussion: Chairperson Royal noted that this resolution is based on the Public Hearing that
preceded the Board meeting (December 19, 2000). There were no comments received from the
pubic in opposition to the proposed rate change.
Action: Carried unanimously.
2000-12-6
RESOLUTION DECLARING OFFICIAL INTENT TO REIMBURSE PROJECT
EXPENDITURES WITH BOND PROCEEDS AND AUTHORIZING PUBLICATION OF
NOTICE OF INTENT TO ISSUE BONDS
WHEREAS, the Board of Water and Light(BWL) (the "Issuer") proposes to issue its tax-exempt
bonds (the `Bonds") to finance the cost of renovating and improving the water, steam and
electric utilities system of the City of Lansing as hereinafter described (the "Project"); and
WHEREAS, it is anticipated that the issuer will advance all or a portion of the costs of the
Project prior to the issuance of the Bonds, such advance to be repaid from proceeds of the Bonds
upon issuance thereof; and
WHEREAS, Section 1.1 50-2 of the Treasury Regulations on Income Tax(the "Reimbursement
Regulations") specifies conditions under which a reimbursement allocation may be treated as an
expenditure of bond proceeds, and the Issuer intends by this resolution to qualify amounts
advanced by the Issuer to the Project for reimbursement from proceeds of the Bonds in
accordance with the requirements of the Reimbursement Regulations.
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NOW, THEREFORE, BE IT RESOLVED BY THE ISSUER, as follows:
1. The Project shall consist of improvement, renovation and extension of certain portions of the
water, steam and electric utilities system of the City of Lansing, uicluding some or all of the
following: (1) replacing pumps and pump controls at Cedar Pumping Station, (11) replacing
filters and refurbishing water reservoirs at Dye Water Conditioning Plant, (111)modifying
filters at Wise Road Water Conditioning Plant, (iv) reinforcing and supporting existing water
mains under selected bridges and replacing or upgrading selected water valves in the Water
Distribution System, (v) upgrading the precipitator at Moores Park Steam Plant Boiler 93,
(vi) purchasing and installing a pressure reducing valve at Moores Park Steam Plant, (vii)
upgrading the stearn main to GM plant 6, (viii) replacing the steam main in Allegan Street,
and, (ix) phase II of the construction of a chiller plant and related distribution system to serve
a downtown chilled water district.
2. The maximum principal amount of obligations expected to be issued for the Project is
$30,000,000.
3. The Issuer hereby declares its official intent to issue Bonds to finance the costs of the
Project, and hereby declares that it reasonably expects to reimburse the Issuer's advances to
the Project as anticipated by this resolution.
4. The Bonds shall be authorized by proper proceedings subsequent to this resolution.
5. Staff is authorized and directed to publish in a local newspaper of general circulation a notice
of intention to issue bonds substantially in the form appended to these minutes (see Attachment
II), with such changes as are approved by bond counsel, BWL counsel and staff.
6. All prior resolutions and parts of resolutions insofar as they may be in conflict with this
resolution are herebv rescinded.
Moved by Commissioner Aquilina, seconded by Commissioner Creamer, that the resolution be
approved.
Discussion: General Manager Pandy noted that by publishing the Notice of Intent, the BWL
will be able to recover costs incurred retroactively in the last sixty days from the date of notice.
Staff will review bond issue details with the Finance Committee, including justification for each
project. A fornial resolution authorizing the issuance of bonds will then come to the Board once
market rates are known and related borrowing-type decisions are made.
Action: Carried unanimously.
2000-12-7
BOARD MEETING SCHEDULE
RESOLVED, That pursuant to the provisions in Article II, Section 2.1 of the Board's Rules of
Administrative Procedure, the Board of Commissioners will meet on the following dates for the
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first six months of 2001 unless otherwise notified or as a result of date conflicts with rescheduled
City Council meetings:
2001
Tuesday January 23
Tuesday February 27
Tuesday March 27
Tuesday April24
Tuesday May 22
Tuesday June 26
Meetings will be held in the Board Room located in the Board of Water and Light Customer
Service Center, 1232 Haco Drive, Lansing, and begin at 5:30 p.m.
RESOLVED FURTHER, That a notice of the meeting schedule be published in the Lansing
State Journal the iveek of January 7, 2001.
Moved by Commissioner Callen, seconded by Commissioner Duncaln, that the resolution be
approved.
Discussion: At the Board planning retreat on November 18, 2000, staff was directed to prepare a
revised draft of the Board's Rules of Administrative Procedure, incorporating changes on the
frequency of Board and committee meetings, for Board consideration in January, 2001. The
Rules, as amended, will be subject to approval by Lansing City Council. The Commissioners
agreed that a new Board meeting schedule would be published in the newspaper once the revised
Rules are approved by City Council. In the interim, the public will be notified of meeting date
changes through posted notices m the BWL lobby and City Clerk's Office.
Action: Carried unanimously.
EXECUTIVE SESSION
Motion by Commissioner Caller. seconded by Commissioner Duncan to move into executive
session to discuss a potential litigation settlement related to the Ottawa Street Station(5:55 p.m.).
Action: Adopted. PEAS: Commissioners Aquilina, Callen, Creamer, O'Leary,
Royal, and Werbelow.
NAPS: None
ABSENT: Commissioners Christian and Murray
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December 19.2000
OPEN SESSION
The Board returned to open session at 6:30 p.m.
2000-12-8
SETTLEMENT OF LITIGATION CLAIMS
The Board of Commissioners is authorized by Charter to approve settlement of litigation.
The Staff Attorney, with concurrence of the Assistant General Manager and upon request of its
Insurer, has recommended that the Board of Water and Light settle the litigation filed against it
by Plaintiff in the Federal District Court, Western Division, Docket No. 5:98-CV-70, and titled
Performance Abatement Services, Inc. v. SCS Group, Inc. and the Lansing Board of Water and
Light.
The Board of Commissioners has been advised as to the settlement discussions that have taken
place between the parties, the merits of the Board of Water and Light's legal defenses, the costs
associated with this matter through trial, and all known risks.
RESOLVED, That the Board of Commissioners authorize settlement of the above captioned
litigation in the amount not to exceed that recommended by First Reinsurance in a confidential
letter dated November 2r'd, 2000, with such amount to be funded by First Reinsurance and with
terms and conditions to be negotiated by the Board of Water and Light's defense attorneys.
RESOLVED FURTIIER, That such amount shall be paid ul consideration of the release of all
clairns.
RESOLVED FURTHER, That the General Manager is authorized to execute all documents
related to the settlement of these claims.
Moved by Commissioner O'Leary, seconded by Commissioner Creamer, that the resolution be
approved.
Action: Carried unanimously.
UNFINISHED BUSINESS
General Manager Pandy reported that in September 26, 2000, the Board authorized staff to enter
into a predevelopment agreement with Carrier Hotels—USA, LLC, which has subsequently
become Convergency Centers, Inc. (Convergency). Mr. Pandy reported that their requirement
for telecommunications is up to approximately 117,000 square feet. They have large electrical
demands as well as coolu1g demands and floor loading to support the heavy equipment to be
placed in the facility. Mr. Pandy called upon Staff Attorney Lam,Wilhite who has been
handling the negotiations and the due diligence process to brief the Commissioners on the status
of the project.
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Staff Attorney Wilhite stated that development discussions related to this project began in July,
2000, when an inquiry was received from real estate broker Van Martm regarding a potential
tenant for Ottawa Station who wants to start a"telecom hotel," which would house file servers
and other technology that allows businesses to conduct electronic commerce. Mr. Wilhite
reported that General Manager Pandy, at that point, recused himself from any substantive
discussion of the matter because of his business relationships and acted only as a resource person
on the project.
A site plan and drawing for each level of the Ottawa Station was displayed. Mr. Wilhite reported
that the offer made by the developer was to bring the shell of the building to a leasable condition
in return for the BWL transferring condominium units to the developer. BWL staff has met with
the Mayor and his staff to brief them on the project for input and consensus. Mr. Wilhite noted
that the basis for the predevelopment agreement was an effort to memorialize the BWL's intent
to explore potential business relationships. At that time staff was cautioned by the Board to
proceed very deliberately. Mr. Wilhite noted that the Board is being asked to take several
interim steps that could lead to a final development agreement if this matter continues to move in
the right direction.
Mr. Wilhite reviewed the assumptions that were considered by staff when reviewing the
feasibility of the project. He stated that at the end of his presentation he would be asking the
Board to authorize staff to proceed to the next level of due of diligence investigation. That being
the completion of an appraisal of the plant, preparation of a business case analysis to support the
proposed development, preparation of a joint development agreement between the BWL and
Convergency Centers, and to declare portions of the Ottawa Station as surplus property subject
to approval by Lansing City Council. Mr. Wilhite commented that staffs proposed
recommendation includes no further financial obligations, other than an appraisal and additional
staff time.
A slide, prepared by General Manager Pandy, was displayed showing a general and broad
analysis of projected cost and estimated utility demand for electricity and chilled water services
for this project. Mr. Wilhite stated that under the terms of the Joint Predevelopment Agreement,
each party has certain deliverable obligations. The BWL's major concern with Convergency is
whether or not they have the financial strength to carry out its plans for Ottawa Station. Mr.
Wilhite reviewed the various business-related documents submitted by Convergency as part of
the due diligence process. A complete schedule of development has not been received from
Convergency; however, they would like to service a major tenant, requiring about 20,000 square
feet (of the total 117,000 square feet) that needs to be in the marketplace between April and June,
2001.
The Commissioners engaged in a lengthy question and answer period related to the nature of the
business, risks involved, and financial liability of the developer. Staff responded that a properly
structured joint development agreement and utility services would be the safeguard to protect
BWL customers. Following discussion, the Commissioners concurred that the business case,
based on potential utility revenues and the value of the commercial space, should be reviewed
with the Finance Committee before a final resolution is brought back to the Board for
consideration.
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December 19,2000
42000-12-9
REDEVELOPMENT OF OTTAIVA STATION
WHEREAS, the Lansing Board of Water and Light(BWL)has entered into a Joint
Predevelopment Agreement(JPDA) with Carrier Hotels (now known as Convergency Centers,
Inc.); and
WHEREAS, the parties to the JPDA respectively desired to investigate and explore a potential
business relationship with respect to the development of a portion of Ottawa as a neutral optical
hub (carrier hotel) with the BWL as a utility provider; and
WHEREAS, Convergency Centers has substantially complied with its "due diligence"
obligations under the JPDA and pursuant to a confidentiality agreement, provided to the BWL,
among other thuigs, its Business Plan for Ottawa Station, a letter of financial commitment, and
necessary load information; and
WHEREAS, BWL staff has reviewed this confidential inforination and, in turn, submitted the
terms and conditions upon which it will supply utility services to Convergency Centers.
RESOLVED, That the Board of Water and Light Commissioners expresses its support of the
proposed redevelopment of Ottawa Station, and subject to further review, authorize the General
Manager and Corporate Secretary to submit and prepare the following documents:
1) Business case analysis to support the proposed development; and
2) Plan to commercially develop or dispose of the remaining square footage; and
3) Completion of appraisal for Ottawa Station; and
4) Commission Agreement between the BWL and CB Richard Ellis/Martin.
5) Resolution declaring relevant portions of Ottawa Station as surplus property and
authorizing the sale of condominium units to Convergency Centers subject to approval by
Lansing City Council; and
6) Joint Development Agreement between the BWL and Convergency Centers.
Moved by Commissioner Creamer, seconded by Commissioner Duncan, that the resolution be
approved.
Action: Carried unanimously.
NEW BUSINESS
None.
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December 19,2000
RESOLUTIONS
2000-12-10
RESOLUTION HONORING TERRY D. GRAHA.Nl
WHEREAS, In recognition of his outstanding career with the Board of Water and Light, it is a
pleasure and a privilege to commend Terry D. Graham on behalf of the citizens he has served so
well. On January 2, 2001, he retired from this municipal utility after serving in a variety of
capacities with distinction. We thank him for his many contributions throughout his more than
thirty-three-year career; and
WHEREAS, Possessing leadershp ability, managerial expertise, and sincere concern for the
people he served, Terry Graham earned numerous promotions ranging from Payroll Supervisor
(1967), Administrator in Personnel (1973), Wage and Salary Administrator in Personnel (1975),
Superintendent of Stores (1980), Manager of Customer Service (1981), Director of Marketing
(1986), Director of Administrative Services (1987), Director of Consumer Services (1990), and
most recently Executive Assistant to the General Manager(2000); and
WHEREAS, Terry Graham's business expertise and loyalty to the citizens of Lansing were
demonstrated in his commitment to promote the development and awareness of the highest
quality level of customer service at the Board of Water and Light. .Among Terry's credits in the
customer service area were the installation of a new phone menu system to provide greater
reliability for handling large volunnes of calls during system emergencies and the consolidation
of various field employee jobs from the electric and water utilities creating the Customer
Account Representatives (CARS) group to improve response time to customer needs. Employees
and customers of the Board of Water and Light will long benefit from Terry's continued pursuit
of improvement and quality performance. His diligent leadership and commitment to creating
loyal customers are qualities that will enable him to continue as an outstanding entrepreneur in
the business enviromnnent; and
WHEREAS, Tem,Graham generously shared his experience and knowledge by volunteering
service to professional and community organizations; such service as past president of the
Greater Lansing Management Association and the Kiwanis Club, active service in the Lansing
Jaycees, Junior Achievement, Old Newsboys Association and Capital Area United Way
campaigns.
RESOLVED, That we commend and congratulate Terry D. Graham on this 19th day of
December, 2000, for his successful career with the Board of Water and Light. We wish Terry
and his lovely wife, Sharon, happiness in their new ventures.
Moved by Commissioner- Creamer, seconded by Commissioner O'Leary, that the resolution be
approved.
Action: Carried unanimously.
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Board Minutes Page 131
December 19,2000
GENER,XL MANAGER'S REMARKS
Customer Attitude Survey: General Manager Pandy reported that the results of the Customer
Attitude Survey, performed by Market Strategies, Inc. (MSI), is being presented to all 712
employees in a series of meetings he will be holding with every department. Very positive
results were received in the fall survey. The BWL was ranked above average operating utilities
on 18 of the 19 benchniarked comparisons. Mr. Pandy noted that there were fifty utilities in the
survey database across the country. The BWL scored highest relative to the average MSI
benchmarked utility on being a company you can trust(+19), showing concern and caring (+18
points), and being believable (+17). Mr. Pandy stated that he is proud of the results in light of
industry turnoil with electric deregulation and also with the new BWL compensation plan and
the question of unionization being considered by groups of employees. Mr. Pandy congratulated
employees for keeping their focus on getting the job done and serving the customers. He
remarked that it is obvious the customers are recognizing their excellent service.
REMARKS BY COMMISSIONERS
Commissioner Creamer asked how the Customer Attitude Survey results compare with previous
years.
General Manager Pandy responded that most of the trends are up. In response to Commissioner
Callen's question, Mr. Pandy stated that the BWL is below the average on one measure: the
preference for current electric utility over another with 10 percent louver rates. For the average
utility, 50 % of the people said they would stay with their present utility, and 49% of BWL
customers said they would stay, which puts the BWL—1°"o of the MSI average. A copy of the
report summarizing the benclunarking comparisons will be provided to the Board.
[Commissioner Aquilina left the meeting at 7:09 p.m.]
Commissioner Creamer suggested that it would be nice for the Board Chair to recognize the
success of the Customer Attitude Survey in one of the BWL's publication. Commissioner Royal
agreed to follow-up with that suggestion.
Commissioner Callen asked for an analysis report on the California deregulation experience.
Assistant General Manager Bill Cook agreed to provide a report on this issue in January.
On a related topic, General Manager Pandy reported that staff is awaiting a decision by the
Michigan Public Service Commission (MPSC) on the question of offering the Cusbmer Choice
Program for natural gas. He noted that the BWL's three-year Natural Gas Customer Choice
Program is up in April, 2001. Presuming the MPSC approves the Choice Program; the BWL
will need to decide whether it wants to continue the program, particularly in light of an uncertain
natural gas market.
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December 19,2000
EXCUSED ABSENCES
On motion by Commissioner Callen, seconded by Commissioner Duncan, that the absences of
Commissioners Christian and Murrav be excused.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO
SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
No persons spoke.
ADJOURNMENT
There being no objection, the meeting adjourned by unanimous consent at 7:15 p.m.
/s/Alfwy E. Sova, Secretary
Filed with Lansing GO,Clerk-
December 22, 2000
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Board MmiAes Page 133
December 19,2000
ATT 4CHMENT 1
(Re:Resolution 42000-12-5)
JVATER SYSTEM CONNECTION FEES
R-,kTE NO. 3
System Connection Fees - The following schedule of fees shall apply to all new water service
connections made to the mains. This fee shall not apply to active services that are being
replaced.
Service Connection to
Main 1/19/01 1/1/02 1/1/03
1" or smaller $1,000 $17000 $1,000
11/2" $1,966 $2,081 $2,194
2" $3,495 $3,700 $3,900
3" $3,932 $4,163 $4,388
4" $6,990 $7,400 $7,800
6" $15,728 $16,650 $17,550
8" and over $27,961 $29,600 $31,200
Tax Adjustment - Bills shall be increased within the limits of any govern mental 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.
Delaved Payment Charge - A delayed payment charge of 5% of the unpaid balance, excluduig
delayed payment charges, shall be added to any bill that is not paid on or before the due date.
Rules and Regulations - Service under this rate is subject to the Board of Water and Light Rules
and Regulations for Water Service, which is incorporated herein by this reference.
Adopted: December 19, 2000 Effective: January 19, 2001
12:45 DEC 22, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #88240 PAGE: 17/18
Pale 13A Board Minutes
December 19.2000
ATTACHAIIENT 11
(Re: Resolutiai#2000-12-6)
NOTICE OF INTENTION OF THE CITY OF LANSING, BY AND THROUGH THE
BOARD OF«7ATER AND LIGHT TO ISSUE REVENUE BONDS IN AN AMOUNT
NOT TO EXCEED $30,000,000 AND NOTICE OF RIGHT TO PETITION FOR
REFERENDUM THEREON
TO ALL ELECTORS AND TAXPAYERS
OF THE CITY OF LANSING AND
OTHER INTERESTED PARTIES:
NOTICE IS GIVEN. That the City of Lansing, Ingham and Eaton Counties, Michigan by and
through the Board of Water and Light, intends to authorize the sale, issuance and delivery of
revenue bonds in the principal amount of not to exceed $30,000,000 pursuant to Act 94, Public
Acts of 1933, as amended, for the purpose of paying part of the cost of remodeling, updating and
extending the life of the water, steam and electric utilities of the City of Lansing, including some
or all of the followi1ng: (1)replacing pumps and pump controls at Cedar Pumping Station, (11)
replacing filters and refurbishing water resel-voirs at Dye Water Conditioning Plant, (ill)
modifying filters at Wise Road Water Conditioning Plant, (iv) reinforcing and supporting
existing water mains under selected bridges and replacing or upgrading selected water valves in
the Water Distribution System, (v)upgrading the precipitator at Moores Park Steam Plant Boiler
#3, (vi) purchasing and installing a pressure reducing valve at Moores Park Steam Plant; (vii)
upgrading the steam main to General Motors' plant 6, (viii)replacing the steam maul in Allegan
Street, and, (ix) phase II of the construction of a chiller plant and related distribution system to
serve a downtown chilled water district.
The net revenues of facilities of the City of Lansing for the supply and distribution of water and
the generation and distribution of electricity, steam and steam heat will be pledged to the
payment of principal of and interest on the bonds.
The lnaminum amount of the bonds to be issued is $30,000,000.
The bonds will mature in not to exceed 25 annual installments with interest at a rate not to
exceed 10% per amnum on the unpaid principal balance of the bonds from time to time
outstanding.
RIGHT TO PETITION FOR REFERENDUM
THIS NOTICE IS GIVEN to and for the benefit of the electors and taxpayers of the City of
Lansing and other interested parties in order to inform them of the intention of the City of
Lansing to sell, issue and deliver the bonds and also to infornn them of the right to petition for a
referendum upon the question of selling, issuing and delivering the bonds. The petition must be
signed by not less than 10% or 15,000, whichever is less, of the registered electors of the City of
12:46 DEC 22, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #88240 PAGE: 18/18
Beard hlmiAes Page 135
December 19,2000
Lansing, residing within the City of Lansing. The City of Lansing intends to sell, issue and
deliver the bonds without a vote of tine electors thereon, but the City of Lansing will not sell,
issue and deliver the bonds until 45 days after publication of this notice. If the petition is filed
with the City Clerk within the 45-day period, the City of Lansing will not sell, issue or deliver
the bonds unless approved by a majority of the electors of the City of Lansing voting thereon at a
general or special election.
This notice is given by order of the City of Lansing, by and through the Board of Water and
Light, pursuant to Act 94 of the Public Acts of Michigan, 1933, as amended. Further
information may be obtained at the office of the undersigned Secretary.
Dated:December 19, 2000 /s/Allary E. Sova, Corporate Secretary
Board of YVater and Light of the Cio) of Lansing
BOARD OF WATER AND LIGHT
1232 Haco Drive-Lansing, Michigan
Agenda
October 24, 2000 - 5:30 p.m.
I. Roll Call (Board Commissioners Aquilina, Callen, Christian, Creamer, Duncan, Murray,
O'Leary, and Chairman Royal - 8)
H. Pledge of Allegiance
III. Approval of Minutes: Regular Session of September 26, 2000
IV. Public Comments
Members of the public are welcome to speak to the Board on any agenda subject or on any
other subject now, or at the end of the meeting.
V. Communications and Petitions
VI. Reports of Committees
VII. Manager's Recommendations
A. Authorize a public hearing on December 12, 2000 modifying water system connection
fees, rate 3.
B. Authorize granting of easement in Alaiedon Township to Consumers Energy.
C. Authorize granting of easement in Delta Township to Consumers Energy.
D. Amend BWL policy manual Section 7-01 on"Authority to Invest Operating and
Pension Funds".
E. Approve revised BWL Home Ownership Program for Employees (BWL-HOPE).
VIII. Unfinished Business
IX. New Business
X. Resolutions
XI. Manager's Remarks
XII. Commissioner's Remarks =
XIII. Motion of Excused Absence
XIV. Public Comments
Members of the public are welcome to speak to the Board on any Board of Water and Light
subject.
XV. Adjournment
15:49 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #86113 PAGE 2/12
Page 108
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, October 24, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Vice Chair Charles
Creamer called the meeting to order_
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Ernest J. Christian,
Charles M. Creamer, Nancy W. Duncan, Mark A. Murray, and Damid O'Leary.
Absent: Diane R. Royal.
C.—
The Secretary declared a quorum present.
All said the Pledge of Allegiance.
_0
APPROVAL OF MINUTES
r`
co
Motion was made by Commissioner Christian, seconded by Commissioner Callen, to
approve the minutes of regular session held September 26, 2000.
Carved unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Mary Clark, Vice President of Campaign for the Capital Area United Way (CAUW), and
Sue Wagner, Vice President of Major Gift-Giving for CAUW, presented General Manager
Pandy with a plaque recognizing the Board of Water and Light's leadership in community
giving and membership on the Corporate Council.
General Manager Pandy noted that BWL effort in the CAUW campaign is an example of
partnership between the union and management. The BWL is in the top ten in terms of
employee giving based on dollars contributed by employees. The BWL's corporate goal
is $115,000 and will strive to achieve a 100% employee participation.
BWL employee, Richard Taylor, stated that he had a follow-up question to a written
response received from General Manager Pandy regarding the 65"'percentile issue relative
15:49 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #BG113 PAGE: 3/12
Board Minutes Page 109
October 24,2000
to market rate compensation for the Technical Skill Family. He said that Mr. Pandy's
answer was unclear. Mr. Taylor requested further clarification on the difference between
"percentile" and "percent' and how the numbers were calculated. He stated that trust
continues to be an issue and challenged management's decision to hire a labor relations
consultant to discourage the organizing drive.
COMMUNICATIONS
Letter from Curtis Gates, Business Agent of International Brotherhood of Electrical
Workers (IBEW), Local 352, regarding information on Gabriel Hall and Associates.
Received and placed on file.
REPORTS OF COMMITTEES
No committee reports
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-10-1
PUBLIC HEARING ON WATER SYSTEM CONNECTION FEES- RATE 3
RESOLVED, That the proposed Water System Connection Fees Rate No. 3, (appended to
these minutes) adopted July 25, 2000 and effective January 1, 2001, be the subject of a
public hearing prior to further consideration by the Board of Commissioners.
FURTHER RESOLVED, That a public hearing to solicit public input on this matter be set
for Tuesday, December 12, 2000 at 5:30 p.m. in the Board of Water and Light Offices at
1232 Haco Drive. Also, that the Corporate Secretary be directed to file with the City
Clerk information regarding pending changes in the rate structures on or before October
25, 2000.
Moved by Commissioner Christian, seconded by Commissioner Aquilina, that the
resolution be approved.
Discussion: Clyde Dugan, Director of Marketing, provided rational as to why the change
to Rate No. 3 is being recommended. He reported that after the Commissioners adopted
this rate schedule in July 2000, staff received significant input from contractors and public
officials. Staff then conducted a comparative study of the new fees with other water
connections fees in the area. Based on the results, it was determined that the previously
approved water system connection fees were excessive and would harm the BWL's ability
15:50 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #86113 PAGE: 4/12
Page 110 Board Minutes
October 24,2000
to attract new customers. Mr. Dugan noted that the proposed fees set a new rate for
residential equivalent services of one inch or smaller and then applied an arithmetic change
for larger services up to eight inches and above. He explained that the BWL uses the
system buy-in methodology described by the American Water Works Association
(AWWA), which resulted in high increases, particularly for new services two inches and
above. The calculation, however, needs to be and has been in the past, modified for local
conditions and competitive pressures. This was not done in the rates proposed and
adopted in July.
Dana Tousley, Chief Financial Officer, reported that there would be no budgetary impact
since the rate was not included in any of the revenue forecasts. The fee is an increase of
the capital contribution required for new water service. It is a one-time charge to
customers who are hooking into the water system for the first time. A public hearing for
December 12� is recommended. Staff also requests that the Board consider approving the
new rate at its regular meeting on December 1P, which coincides with the public hearing
date. [This would allow the rate to take effect at least thirty days from the hearing date,
which would be January 12`s.] The other rates previously approved by the Board in July
will take effect on January 1, 2001. If the public hearing brings forth issues that need to
be addressed, they can be discussed at that same meeting.
General Manager Pandy stated that it is out of the ordinary for staff to ask the Board to
adopt a rate on the same night as the public hearing. But in an effort to try to replace the
previous schedule of the higher rates with the new Rate No. 3, the Board is being asked to
consider both the hearing and the action on December IP.
After lengthy discussion and questions concerning the basis for lowering the connection
fees and whether the contractors and public officials would be satisfied with the modified
fees, the Commissioners concurred with setting the public hearing date.
Action: Carried unanimously.
92000-10-2
GRANTING OF EASEMENT-ALAIEDON TOWNSHIP
RESOLVED, that the Board authorize the granting of an easement to Consumers Energy
for underground electric facilities at a cost of$1.00, subject to the approval of City
Council as required under Article 2, Section 5-203.3 of the Lansing City Charter. The
easement is located on a portion of the west side of the Hulett Road Pump Station
property in Alaiedon Township. This easement has been requested by Consumers Energy.
Easement Description: The west 10 feet of Parcel A described below:
Parcel A
A PARCEL OF LAND IN THE NW 1/4 OF SECTION 5, T. 3 N., R. 1 W.,
ALAIEDON TOWNSHIP, INGHAM COUNTY, MICHIGAN, PARTICULARLY
DESCRIBED AS FOLLOWS: COMMENCING AT THE NORTH 1/4 CORNER OF
15:51 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 *86113 PAGE: 5/12
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October 24,2000
SECTION 5, T. 3 N., R. 1 W, ALAIEDON TOWNSHIP, NGHAM COUNTY,
MICHIGAN (SAID 1/4 CORNER BEING RECORDED N L. 9, P. 452 OF NGHAM
COUNTY LAND CORNER RECORDATION CERTIFICATES); THENCE ALONG
THE 1/4 LINE S 00035'16" E 1309.17 FT.; THENCE S 88°19'51"W 551.90 FT. TO
THE POINT OF BEGINNING OF THIS DESCRIPTION: THENCE CONTINUING S
88019'51"W 240.00 FT.; THENCE NORTHERLY (PARALLEL TO THE N-S 1/4
LINE OF SECTION 5)N 00°35'16"W 377.14 FT. TO THE NORTH LINE OF LAND
OWNED BY THE "FORSBERG FAMILY L.L.C."AND KNOWN AS ALAIEDON
TOWNSHIP TAX PARCEL NUMBER 06-05-100-047, SAID TOTAL TAX PARCEL
CONTAINING 32.746 ACRES OF LAND, MORE OR LESS (ACCORDING TO
TOWNSHIP RECORDS); THENCE ALONG THE NORTH LINE OF SAID TAX
PARCEL S 89058'59" E 239.97 FT.; THENCE SOUTHERLY (PARALLEL TO THE
N-S 1/4 LINE OF SECTION 5) S 00°35'16" E 370.08 FT. TO THE POINT OF
BEGINNING OF THIS DESCRIPTION. THIS PARCEL IS SUBJECT TO THE
RIGHTS OF THE NGHAM COUNTY DRAIN COMMISSION FOR THE
"DNGMAN DRAIN", SAID RIGHTS GRANTED N A RELEASE OF RIGHT OF
WAY RECORDED N L. 73, PP. 386-388, MISCELLANEOUS RECORDS OF
NGHAM COUNTY, ALSO SUBJECT TO GAS LINE EASEMENT RIGHTS OF
CONSUMER ENERGY COMPANY AS RETAINED N A"PARTIAL RELEASE OF
EASEMENT"EXECUTED ON FEBRUARY 8, 1999 BY VINCENT D. EDWARDS
(CONSUMERS ENERGY COMPANY GAS FIELD MANAGER), SAID GAS LINE
EASEMENT ENCUMBERING THE WEST 10 FEET OF THE SUBJECT
PROPERTY, AND SUBJECT TO ANY AND ALL OTHER EASEMENTS AND
RESTRICTIONS OF RECORD. SAID PARCEL CONTAINS 89,650 SQ. FT. OR
2.0581 ACRES OF LAND, MORE OR LESS.
--------------------
This easement will permit Consumers Energy to operate a north-south underground
electric facility in a location west of the reservoir on the pump station property. This
easement will encumber the same 10 feet presently encumbered by a gas main and gas
main easement. The Board of Water and Light is not currently using nor has any
foreseeable use of this portion of the Hulett Road Pump Station property for utility
purpose.
Moved by Commissioner Christian, seconded by Commissioner Aquilina, that the
resolution be approved.
Action: Carried unanimously.
#2000-10-3
GRANTING OF EASEMENT—DELTA TOWNSHIP
RESOLVED, that the Board authorize the granting of an easement to Consumers Energy
for overhead electric facilities at a cost of$1.00, subject to the approval of City Council as
required under Article 2, Section 5-203.3 of the Lansing City Charter. The easement area
15:52 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203
#86113 PAGE 6i12
Board Minutes
Page 112 October 24,2000
is located on a portion of the most easterly end of the Erickson Station property.
Consumers Energy has requested the new easement for relocated electric facilities.
Easement Description:
THE EASTERLY 145 FEET OF THAT PART OF A 30 FOOT WIDE STRIP OF
LAND IN THE N.E. 1/4 OF SECTION 34, T. 4 N., R. 3 W., DELTA TOWNSHIP,
EATON COUNTY, MICHIGAN, LYING NORTHWESTERLY OF AND ADJACENT
TO THE NORTHWESTERLY LINE OF GRAND TRUNK WESTERN RAILROAD
LAND AND WESTERLY OF CREYTS ROAD, AND ANY OTHERST LINE OF SECTION 34, LEASEM NTS JECT TO E
RIGHTS OF THE PUBLIC IN
AND RESTRICTIONS OF RECORD.
-------------------
This easement will permit Consumers Energy to operate their north-south overhead
electric facility in a location westerly of the widened Creyts Road now under construction
by the Eaton County Road Commission. The Board of Water and Light is not currently
using nor has any foreseeable use of this portion of the Erickson Station property for utility
purpose.
Moved by Commissioner Christian, seconded by Commissioner Callen, that the resolution
be approved.
Action: Carried unanimously.
#2000-10-4
AUTHORITY TO INVEST OPERATING AND PENSION FUNDS
RESOLVED, That Section
r and Li01 on `Authority to ht policy manual be Investment Operating
ogeadand
as follows:
Pension
Funds" in the Board of Water g P
The General Manager and/or one of the following designated representatives in the
sequence listed below, shall be authorized to invest operating and pension funds in such
securities as permitted by law and to purchase, sell, sign and endorse for transfer,
certificates representing said securities and invested in the name of the Board of Water and
Light(BWL):
1. Chief Financial Officer
2. Manager, Fina -4-
akSeFviees GENERAL ACCOUNTING
3. Assistant General Manager
The Revenue Bond Act of 1933 (PA 94 of 1933, MSA 5.2731), as amended,L�
C) ,• �Ge ,o k, I Qu �92-6-A-and BWL Bond Resolution 89-10-3 govern and restrict the
investment of BWL operating funds. PENSION FUNDS ARE GOVERNED BY THE
- - on P.06
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#86113 PAGE 7i12
Page 113
Board Minutes
October 24,2000
PUBLIC RETIREMENT SYSTEM INVESTMENT ACT(MCL 38.1132 ET. SEQ.), AS
AMENDED.
--------------------
This Resolution amends the policy adopted by the Board on January 25, 2000 (Res.
92000-1-3). Lansing Ordinances 18A, 18B and 26A are no longer in effect because the
bonds are paid.
Moved by Commissioner Christian, seconded by Commissioner Murray, that tie
resolution be approved.
ages Its own pension
Discussion: Commissioner Duncan
Chieftf the BWL Financial Officer Dana Tous ey manages fund.
General Manager Pandy responded that
the fund. The Board discussed outside fund management several years ago, and opted to
leave investment arrangements unchanged.
Action: Carried unanimously.
42000-10-5
BWL HOME OWNERSHIP PROGRAM FOR EMPLOYEES (BWbHOPE)
WHEREAS, the Board of Water and Light desires to encourage employees to reside
within the City of Lansing; and
WHEREAS, the Board of Water and Light wishes to increase Lansing's neighborhood
stability by increasing the number of owner-occupied homes in the City of Lansing; and
WHEREAS, The Board of Water and Light desires to have employees located proximate
to work sites within the city limits.
NOW THEREFORE BE IT RESOLVED, that the BWL Home Ownership Program for
Employees (BWL-HOPE) originally adopted by Resolution 97-4-3 be revised to allow
employees to own and occupy homes throughout the City of Lansing, but excluding areas
covered by Act 425.
BE IT FURTHER RESOLVED, that the General etager, Corporate Secretary
to
and
Director of Human Resources are authorized to execute those documents necessary
implement the BWIrHOPEa or full time BWL employees,Memorandum of Understanding for tEmploye E the mployees in bargaining
including but not limited to
units.
ually for each
BE IT FURTHER RESOLVED, that 00 be budgeted the BWL reserves the right to unilaterally
terminatescal year
effective with fiscal year 2000 20O1 but that
terminate BWIrHOPE during any fiscal year.
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Page 114 October 24,2000
BE IT FURTHER RESOLVED, that BWL-HOPE provide forgivable
or ter fiscal n payment
loan of$5,000 per eligible employee for up to six(6) employeesP
r, and that
such funds will be issued on a first-come/first-serve basis.
Moved by Commissioner Murray, seconded by Commissioner O'Leary, that the
resolution be approved.
ted
Discussion: General Manager Pandy reportedthat the BWL's designated as economically ally depressedus ncthe
ownership to houses located within four im
that only a handful of employees participated in the
City of Lansing. Mr. Pandy reported
tence. After discussion with the City and others who have a
program in its three-year exis
that the Lansing home ownership incentive program
similar program, staff has concludedvailable through the
should cover the entire city. Mr. Pandy
loW�that
rat s for ans are remodeling homes located in
Initiatives Support Corporate (LISC)
the four areas designated as economically depressed. Under the revised BWL-Home
Ownership Program, full-tune employees can receive forgivable $5,000 loans to purchase
of Lansing. Each year the employee remains in the house and
a house within the Citye lo is forgiven. In essence, the
stays employed at the BWL, 20% of wee lea s l
short of five years, the loanis payable
forgiven after five years. If the employee
back to the BWL.
Commissioners Creamer and Callen spoke to the benefits of having such a program in the
City of Lansing. Commissioner Murray said that he intends to support management's
recommendation by virtue of the small dollar amount requested and the fact that the home
ownership program is a worthy endeavor.small pever, he stated his rograms u�a variety olni f area in anon
$WL empt
should not be in the business of running P
to address larger community issues. He would prefer to see management focus on the
L rather than creating the burden for a department to keep track of
core business of the BW
these kinds of small programs. �Heci n eq ty paymenttotthe City as more appropriate
United Way and the concept of
turn
kinds of activities.
General Manager Pandy responded that the BWL Home Ownership Program was initiated
in response to Mayor Hollister's call to the community for partnership with the City.
Action: Carried unanimously.
UNFINISHED BUSINESS
None.
NEW BUSINESS
None.
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6113 PH��:
yilc
15:54 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 p#8#8 115
age
Board Minutes
October 24,2000
RESOLUTIONS
None.
GENERAL MANAGER'S REMARKS
Update on Pending Union Election: General Manager
andy handed d to outta on the
f the
10"' edition of"Know Your Rights, an information upcoming union election. Mr. Pandy reportanelection date that the for ion _for BWL clerical g held Oand technical
2000, was adjourned without a decision or
employees. He noted that management renewed eturn offer
ff eparate cle the rical and techniccal n on a compromise
that would lead to an early election date. In
employee elections, management offered to waive its right toaining unllsst that
unionerejected the
circulated and signed in each
has beenres rescheduled roposed go November 7.
offer; consequently theg
OPEIU Attempt to Represent Supervisors and Professional Employees. General
from Thomas
Manager Pandy handed o ut a copy of a letter received on October 24, 2000,
ees international Union, Local 512,
James Katona of he Office and Professional Employ
which advises that OPEN intends to file a petiti r a representation election for the
supervisors and professional employees of the BWL
New Electrical Contracting Venture Explored. John R. Howell of Dimondale,
Michigan, owner of an electrical contracting and agricultural business, has offered to sell
his business to the BWL because of the utility's local has a relationship with the State resence and reputation as a quality
of
service provider. The electrical contracting company
Michigan and other large customers, and its cork signals. MranPandy reported on thly focused on State e
such such as lighting freeways, airports, and traffic
company's contracts, the value of the business, and how the company would be integrated
into the BWL operations.
Following lengthy discussion on the potential acThesition, it was the consensus of the
Commissioners quest oned he success
Board to pass on this new venture at thison a statewide
of integrating the workforce into the organization. Then BWL workers, particularly in
business was also a concern because it may be stretching
light of the breadth of additional projects contemplated in the local area.
Needs. General Manger Pandy reported on the status of a
MSU Explores Power Supply University seeking
request for qualifications received infrdevelopment m fn State and instaation of a merchant
qualifications of firms interest
Independent Power Plant to cogenerate steam and
e l heat and powecity. He aanr. He out a cod the
cep al
outline of MSU's request for proposal for combinedhe
s being explored
U. Mr. Pandy stated that f
extent of the project and he option develo S pr proposal that makes economic
BWL is willing to partner with several bidders P
sense for MSU and the BWL. Questions to be explored include finding a substation site
P.09
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15:55 OCT 26, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 3"(1-bcr��
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October 24,2000
Page 116
the appropriate economic scale for generation capacity, the ability
for 138 Kv substation,stem sand other related issues.
to interconnect steam sy
substation yard structures for the
otors Platinum Plant Update. General Manager Pandy reported on bid
General M a very tight
results for site work and foundation cots Bids came in favorable, considering
General Motors (GM)Platinum project.
labor market and a strong economy.
REMARKS BY COMMISSIONERS
Commissioner Callen inquired about the General Motors steam line repair costs.
Com ro ect
timManager Pandy responded that the repair eotorsaand the BWL met to discuss legal
General g
came in at approximately$3.5 million. General M
remedies and costs associated with the steam line repair. s Gates' letter, dated
Commissioner Murray asked for comments in response to Curti
October 3,
2000, and sent to the Commissioners relative to Gabriel Hall and Associates
having unfair labor practices.
me Larry Wilhite responded that the document ocany gtouiMr. Gates'id not mean
Staff Atto y
was a non-admission settlement record(no one is a m g bout Mr. Hall. A letter
" al Labor Relations Board ruled upon an unfair labor
aractice. Mr. Wilhite
the Nation
stated that the document contains some it c the urate info pained m the document who
was received from the operating
he acted completely within
indicated that Mr. Hall was never fired and that to his opinion,
the law.
commented that he has re that observed
r ed tha that
limit be applied to
Commisse thre&mnule
ioner O'Leary implemented. g
limit for public comments is not being P
with the order of business.
maintain a good flow
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15:55 OCT 267 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 9Ftfb110
page117
Board Minutes
October 24,2000
NEW BUSINESS
None.
EXCUSED ABSENCES
On motion by
Commissioner Christian, seconded by Commissioner Callen, that the
absence of Commissioner Royal be excused.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF WATER AND LG HT WELCOMEPU"BLIC
TO SPEAK TO THE BOARD ON ANY BOARD
SUBJECT.
importance of two employee classification
BWL employee, Joseph Davis, asked about theat two ears ago the BWL redesigned its
groups (clerical and technical). He stated,"create synergy,g empower employees, and
processes with a focus to eliminate` silos, ete in the marketplace and
streamline the structure of the organization to better comp of employees
become the Only utility that customer s Vitro abutlegal ramifications that a have delayed the
are requesting a voice on union representation,
ts
goals.
election process. He added that it is not his interest too dries and accomplishing nn gPersonal,
but to move forward with the business of performing J of interest'' it should be
By eliminating the legal aspects of the grievance on"community
feasible for management and the union to decide when the vote should be held. t
Business Manager of IBEW, Local 352, presented his pouf
BWL employee, Curt Gates, ees in clerical and technical
of view on the recent hearing held to decide whether employu- i a single unit.
job classifications should vote in separate elections or two oPtron°g One was to split the
He stated that he was approached by management w e. Or by not accepting thus option,
two groups, which would lead to an early there earn The union opted to stay the course. Mr.
the election process could go on for an y loyaltythat was once
Gates stated that he is worried the employees
gamz lee haveethe best ints not have erest of the City of Lansing
enjoyed. He commented that theP Y
and want to see the BWL remain one of the best companies in the area.
ADJOURNMENT
On motion by
Commissioner Murray, seconded by Commissioner Callen, the meeting
adjourned by unanimous consent at 6:40 p.m.
Is/Mary E. Sova, Secretary
Filed October 26, 2000
Marilynn Slade,City Clerk
P.11
nnnpn OF WATER & LIG
96%
ID: BOARD OF WRTER & LIG TEL NO: (517) 371-bCUO
Board Minutes
15:56 OCT 26, 2000 October 24,2000
Page 118
Attachment to Resolution#2000-10-1
Proposed Rate Schedule
WATER SYSTEM CONNECTION FEES
RATE NO. 3
schedule of fees shall apply to all new water
S stem Connection Fees-The following
1 to active services that are
service connections made to the mains. This fee shall not apply
being replaced.
Service Connection to 11� 1/_ 1� 1/
Main
$1,000
$1,,081 $2,194
000 $1,000
1" $2
or smaller $1,966 $3,900
11/2" $3,495 $3,700
$4,388
2" $3,932 $4,163
311 $6,990 $7,400 $7,800
411 $16,650 $17,550
6 $15,728 $31,200
$27,961 $29,600
g" and over
Bills shall be increased within the limits of any gove�cntal authority
Tam anent B
other
r its operation, or the production and/or sale of
or political subdivision which levies taxes, license fees, franchise fees, or compelled
charges against the Boards propel', revent other customers from being P
water, to offset any such cost and thereby p
to share such local increases.
delayed payment charge of 5% of the unpaid balance,
Delayed Patent Chaff A es shall be added to any bill that is not paid on or before
excluding delayed payment charges,
the due date. and
e ations - Service under this rate is subject to the Board
herein by this
Light Rules and Regulations for Water
Rules and R11 Service, which is incorporated
reference.
Effective: January 12, 2001
Adopted: "Proposed"
P.12
__ •-,� BOARD OF WATER & L I G
96%
Page 98
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, September 26, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair Diane Royal called
the meeting to order.
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Charles M. Creamer,
Nancy W. Duncan, David O'Leary, and Diane R. Royal.
Absent: Commissioners Ernest J. Christian and Mark A. Murray.
The Secretary declared a quorum present.
All said the Pledge of Allegiance. r— ,
Co
APPROVAL OF MINUTES c a
Motion was made by Commissioner O'Leary, seconded by Commissioner Callen; to
approve the minutes of regular session held August 22, 2000 and closed sessiorl,.11eld
September 12, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Paul Hufnagel, 2545 Oxford, Lansing, addressed the Board as president of the Greater
Lansing Labor Council. He expressed the Council's concern about the BWL's recent
hiring of a labor consultant to discourage the employee organizing effort. Mr. Hufnagel
spoke about the long history of labor unions and their importance in the community. He
cited examples of projects completed in record time by union labor and the cooperation
between contractors, the City and the building trades. He expressed concern that the
democratic process would not take place. He asked the Board to reconsider its decision
to utilize a consultant, and provide the employees an opportunity to run an election
without interference by an outside consultant.
Board Minutes Page 99
September 26,2000
BWL employee Curt Gates, Business Manager of IBEW Local 352, spoke about the latest
effort by the labor consultant and some BWL senior management. He reported that the
vote scheduled for September 22nd was cancelled due to the labor consultant contesting
the "community of interest" issue between the clerical and technical groups. He stated
that lack of trust was an issue raised by employees through the last employees' survey and
that hiring a consultant to discourage unionization efforts has disturbed an already
frustrated group. He emphasized that employees are the issue; they make the BWL work.
BWL employee Richard Taylor stated that since he has been employed with the BWL in
1981, the clerical and technical employees were classified as one group. He indicated that
the effort to unionize started as the result of the compensation study. He reported on his
recent experience with his annual performance evaluation and expressed his opinion that
the new performance appraisal system is unrealistic in terms of how employees will be
rated.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
#2000-9-1
COMMITTEE OF THE WHOLE REPORT
Present were Commissioners Aquilina, Christian, Creamer, Murray, O'Leary and Royal.
Absent were Commissioners Callen and Duncan.
The Committee of the Whole met on September 12, 2000, to receive an update on the
following activities:
1. Repairs to the Steam Main Serving General Motors. General Manager Pandy
reported on restoration work completed to date on the 20-inch steam line serving
General Motors that ruptured on June 27. The line was restored with full service
on September 7. Remaining work is targeted for completion by September 30.
Current expenditures to date are approximately $2.2 million. Final costs are
projected to be approximately $3.0 million as compared to the original budget
amount of$4.1 million.
2. Corporate and Process Measurement. General Manager Pandy reported on
corporate and process performance measures for fiscal year 2000-01, in which
employees are eligible to receive bonuses based on various measures concerning
financial, customer, internal business processes and employee learning and
development. The measures are linked to corporate measures and the business
plan. The implementation schedule for the new compensation system, variable pay
Page 100 Board Minutes
September 26,2000
plan and balanced scorecard was reviewed. Discussion centered on the importance
of defining the key priorities and appropriate weighting for the measures. Mr.
Pandy reported that some of the measures are being revised to better align them
with BWL goals.
3. Ottawa Station Matters. The Committee of the Whole resolved in closed session
(6:23 p.m.) to meet with the Staff Attorney regarding strategy in connection with
pending litigation related to the Ottawa Street Station. The meeting of the
Committee of the Whole was then opened to the public (7:10 p.m.).
General Manager Pandy then briefed on the status of negotiations with a
prospective telecommunications vendor to develop the Ottawa Street Station.
Mr. Pandy outlined the scope of the project and the terms and conditions of the
proposed joint pre-development agreement. A joint meeting amongst parties
involved to discuss issues pertinent to the project was held with the Mayor and his
staff on September 12. The City is evaluating the merits of the project for
feedback to the Board of Water and Light by the next regular Board meeting on
September 26.
Submitted by,
Ronald C. Callen, Chair Pro Tern
COMMITTEE OF THE WHOLE
Moved by Commissioner O'Leary, seconded by Commissioner Duncan, that the
Committee of the Whole Report be received and placed on file.
Action: Carried unanimously.
At the September 12th Committee of the Whole meeting, the Commissioners agreed to
review the pre-development agreement prior to the regular Board meeting before
authorizing the General Manager to enter into the joint pre-development agreement with
the prospective telecommunications tenant to develop the Ottawa Street Station.
General Manager Pandy reported that the potential vendor has executed the Joint Pre-
Development Agreement. He handed out a copy of the agreement, noting that some
minor changes had been made to the document as compared to an earlier version provided
to the Commissioners. Mr. Pandy reported that he received positive feedback on
September 25th from the Mayor and his staff to continue to investigate the feasibility of
development of a major portion of the Ottawa Street Station. He handed out an article
entitled, "Telecom Hotels Come on Line," which appeared in the September 11, 2000,
issue of Engineering News Record (ENR). Mr. Pandy noted that this development use is
occurring all over the United States and that it is not unique to Lansing.
Motion: Following a question and answer period, motion was made by Commissioner
O'Leary, seconded by Commissioner Creamer, to authorize the General Manager to enter
into a pre-development agreement for the Ottawa Street Station.
Board Minutes Page 101
September 26,2000
Discussion: This authorization allows the BWL to proceed with the due diligence review
to investigate financial capability, terms and conditions of utility services, and various
requirements. The Board will be updated on the progress of the investigative process,
anticipated to take from 30 to 45 days.
Action: Carried unanimously.
PERSONNEL CONMTTEE REPORT
Present: Commissioners Callen, Duncan, O'Leary and Royal.
Absent: Commissioner Aquilina
The Personnel Committee met on September 22, 2000, to review the results of
performance appraisals conducted for the three Board-appointed positions.
Performance appraisals and salary increases for the three positions reporting to the Board
are administered according to the Board of Water and Light wage and salary plan for non-
bargaining administrative employees. Human Resources Director Linda Gardner
presented the results of performance ratings completed by the Commissioners for each of
the three Board-appointed positions. Following review and discussion, the following
resolutions were proposed for Board consideration:
#2000-9-2
Resolution of Personnel Committee to
Remove from the Table the Resolution
to Appoint Charter Staff Positions
WHEREAS, At the regular meeting of July 25, 2000, it was the consensus of the Board to
table the Resolution regarding the reappointment of the three charter staff positions
pending completion of their performance evaluations.
WHEREAS, The Personnel Committee conducted a review of performance appraisal
results on September 22, 2000, be it
RESOLVED, The Personnel Committee hereby recommends that the resolution regarding
the appointment of the charter staff positions be taken from the table for Board
consideration.
Page 102 Board Minutes
September 26,2000
#2000-9-3
Resolution to Reappoint Charter Staff Positions
WHEREAS, The Board's Rules of Administrative Procedures specify that the Board is to
appoint a Director, Corporate Secretary and Internal Auditor, respectively, at the first
regular meeting in July of each year, be it
RESOLVED, That the Board cast a unanimous vote for the reappointment of the
following staff positions for Fiscal Year 2000-01, or, until a successor is appointed,
whichever last occurs:
Director and General Manager - Joseph Pandy, Jr.
Director of Metrics and Audits - Kellie L. Willson
Corporate Secretary - Mary E. Sova
#2000-9-4
Resolution to Authorize Compensation Increases
for Director and General Manager, Director of Metrics and Audits,
and Corporate Secretary for Fiscal Year 2000-01
RESOLVED, That Director and General Manager Joseph Pandy, Jr., Director of Metrics
and Audits Kellie Willson, and Corporate Secretary Mary Sova are hereby eligible to
receive salary increases effective as of July 1, 2000,
RESOLVED FURTHER, That increases in the range of 3.0% to 4.0% for the three
positions reporting to the Board, based on their performance ratings, are hereby confirmed
as reviewed by the Personnel Committee on September 22, 2000, and filed with Human
Resources.
Motion by Commissioner O'Leary, seconded by Commissioner Creamer, that the
Personnel Committee Report be received.
Action: Adopted unanimously,
Motion by Commissioner Duncan, seconded by Commissioner Callen, that the resolution
to remove from the table the previous resolution to appoint the charter staff positions
(# 2000-9-2) be approved.
Action: Adopted unanimously.
Motion by Commissioner Callen, seconded by Commissioner O'Leary, that the resolution
to reappoint the charter staff positions (#2000-9-3) be approved.
Board Minutes
Page 103
September 26,2000
Action: Adopted unanimously.
Motion by Commissioner O'Leary, seconded by Commissioner Callen, that the resolution
authorizing compensation increases for the Director and General Manager, Director of
Metrics and Audits, and Corporate Secretary (#2000-9-4) be approved.
Action: Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on iten7s presented are on file in the Office of the Corporate
Secreta7 y.
#2000-9 -5
MODIFY CAPITAL BUDGET
RESOLVED, That the Board of Water and Light capital budget for fiscal year 2001 be
modified to include the cost of providing steam service to General Motors at its Lansing
Grand River Assembly Plant. In addition, the electric and water costs to serve Lansing
Grand River Assembly Plant will be modified to reflect the current division of
expenditures between electric, water and steam for FY 2001.
Current Modified
FY 2001 FY 2001
Pro ect Project# Expenditure Expenditures
GM Grand River Assembly
Steam Reinforcement/Service New $0 $800,000
GM Grand River Assembly
Electric Reinforcement/Service 00-117 $1,593,000 $1,369,000
GM Grand River Assembly
Water Reinforcement/Service 00-126 $912,000 $1,004,000
Total $2,505,000 $3,173,000
Moved by Commissioner Callen, seconded by Commissioner O'Leary, that the resolution
be approved.
Discussion: General Manager Pandy reported that the resolution proposes the
modification of the capital budget to include the steam reinforcement and relocation of the
steam service. This was a part of the original $7.6 million estimate to serve General
Motors (GM), based on a financial analysis done in October of 1998 (a copy of the analysis
was handed out). Also handed out were copies of the BWL's obligation and estimated cost
for this project and the most current summary of electrical load changes for the GM's
Lansing Grand River Assembly Plant. Mr. Pandy indicated that even by GM's own
Page 104 Board Minutes
September 26,2000
estimates, the electrical load has grown by approximately one third. Since April,1999, the
load was roughly 100 percent higher than the BWL had anticipated in its conservative
financial projections. Mr. Pandy reported on projected loads for GM's Mid-Michigan
Plant in Delta Township. Based on projections, the BWL's investment for these projects
should generate more revenue resulting in a positive return earlier than the year 2004.
In response to Commissioner Callen's question relative to anticipated costs due to
increased projected demand, General Manager Pandy said that installation costs for
additional substations to serve GM's Grand River Plant will be funded by the central
utilities complex development. He noted, however, that the BWL is evaluating future
needs for another circuit from Eckert Station, which is not included in this year's capital
budget.
Action: Carried unanimously.
UNFINISHED BUSINESS
None
NEW BUSINESS
There being no objections, the order of business was slightly modified to hear the General
Manager's remarks before discussing plans for the upcoming Board Retreat.
RESOLUTIONS
None.
GENERAL MANAGER'S REMARKS
Response to Public Comments Relative to the Union Election. General Manager
Pandy responded to public comments regarding the union election issue. He
acknowledged that there is a question with regard to what constitutes a"community of
interest" between groups of employees. This issue relates to questions raised by some
employees on whether technical and clerical employees should be represented within the
same bargaining unit. Mr. Pandy reported that there was a flaw in the Michigan
Employment Relations Commission (MERC) notice, which did not provide a standard ten-
day notice of the election date. The manner in which MERC sent the notices to the union
and to the BWL was a technical flaw that caused a delay in the election date of September
22, 2000. The purpose of ten-day notice is to allow all eligible employees an opportunity
to arrange their schedules to participate in the election.
Board Minutes Page 105
September 26,2000
Financial Statistics and Trends. General Manager Pandy handed out copies of a
financial report titled, "Selected Historical Financial Statistics and Trends for Fiscal Year
ended June 30, 2000," prepared by Chief Financial Officer Dana Tousley. This
information will be discussed in more detail during the upcoming Board retreat. An
analysis that looks at ratios and other financial indicators is being prepared by Director of
Metrics and Audits Kellie Willson and will be available shortly.
REMARKS BY COMMISSIONERS
Commissioner Creamer asked for a clarification on the role of the consultant engaged to
advise management on the pre-election campaign; namely, Gabriel Hall and Associates.
General Manager Pandy responded that Gabriel Hall is a labor relations professional who
was retained by the BWL during the 1988 unionization effort. His purpose is to guide
management with respect to conducting an informational campaign and the avoidance of
unfair labor practices under the Public Employee Relations Act. Mr. Hall has expertise on
how the Michigan Employment Relations Commission (MERC) is to conduct its affairs
and what its rules are. Mr. Hall has conducted interviews with managers in an effort
determine the major employee issues. Mr. Pandy and Staff Attorney Wilhite noted that it
is not the role of the consultant to contact the clerical or technical employees who are
eligible to vote in the election. The consultant's contact with union officials is limited and
is normally in front of a MERC official.
Commissioner Duncan asked about the expectation of when MERC might reschedule the
election.
Staff Attorney Wilhite responded that a notice was received from MERC advising that an
administrative hearing on the issue of"community of interest" is set for October 6 h. The
election will be set by MERC some time after the hearing.
Commissioner Duncan asked for an explanation of the BWL's potential sale of 800 MHZ
radio frequencies, as reported to the Board in the meeting packet.
General Manager Pandy responded that in the 1980's, the BWL applied for and was
successful in receiving a Federal Communications Commission (FCC) license for radio
frequencies in the 800 MHZ band used by the BWL for its radio communications system,
which includes an interconnect to telephone capabilities. Mainly the BWL utilizes those
frequencies for its own communications; i.e., electrical and water operations and
emergency situations. The BWL has provided frequency access to other City of Lansing
departments such as Public Service, Forestry, and Parks and Recreation who pay the BWL
for the service. Nextel Communications acquired those frequencies, which the BWL has
had and operates under its license, in an FCC auction process.
Staff Attorney Wilhite reported that the FCC auctioned off and awarded the BWL
bandwidth to Nextel who was the high bidder. The FCC stipulated that the BWL and
Page 106 Board Minutes
September 26,2000
Nextel had to enter into a one-year period of voluntary negotiation to be followed by a
mandatory negotiations process. At the end, both parties must reach an agreement. The
voluntary negotiation period will end in approximately February 2001.
Commissioner Callen inquired about No, compliance costs reported in the Board meeting
packet.
General Manager Pandy reported that depending on compliance options, estimates range
from as low as $9 million to as high as $250 million. A study is currently underway on
No,, compliance strategies targeted for completion in the fall.
NEW BUSYNESS
The Commissioners engaged in lengthy discussion on topics for the Board retreat and
reached consensus on critical issues that should be discussed.
The Board retreat will be held on Saturday, November 18`h, 8 a.m. to 12 Noon.
Topics identified for the retreat were listed in the order of priority.
1. The Role of the Board
2. Strategic Business Plan
3. Human Resource Management
4. The General Health of the BWL
5. Competition/Competitive Strategies
6. Major Projects - Capital and Construction Plans
7. Annual Budget
The Commissioners agreed that the agenda should be narrowed to two broad topics; the
role of the Board and return on equity. The Chair will finalize the agenda and will discuss
staff support with the General Manager.
There was consensus that a second retreat should be scheduled in the near future to
continue discussions on the remaining topics.
EXCUSED ABSENCES
On motion by Commissioner O'Leary, seconded by Commissioner Duncan, that the
absences of Commissioners Christian and Murray be excused.
Carried unanimously.
Board Minutes Page 107
September 26,2000
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
BWL employee, Joseph Davis, commended the Commissioners on topics chosen for their
retreat. He emphasized the importance of addressing human resource management,
particularly employee issues related to training and staffing and the BWL's strategic plan.
He stated that it is his hope the BWL will still be part of the community in ten or twenty
years from now and that he would continue to be one of its employees.
ADJOURNMENT
On motion by Commissioner Duncan, seconded by Commissioner Creamer, the meeting
adjourned by unanimous consent at 6:55 p.m.
Is/Mary E. Sova, Secretary
Filed September 28, 2000
Marilynn Slade, City Clerk
SEP-26-2000 14:45 BD OF WRTER LIGHT 1 517 Z71 6655 P.02i11
Page 98
MINUTES OF THE BOARD OF COMIVHSSIONERS' MEETING. _
LANSING BOARD OF WATER AND LIGHT
Tuesday, September 26, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive,Lansing, Michigan. Chair Diane Royal called
the meeting to order.
Present: Commissioners Rosemarie E. Aquilina,Ronald C. Callen, Charles M.
Creamer, Nancy W.Duncan, David O'Leary, and Diane R. Royal.
Absent: Commissioners Ernest J. Christian and Mark A. Murray.
The Secretary declared a quorum present.
All said the Pledge of Allegiance.
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Callen, to
approve the minutes of regular session held August 22, 2000 and closed session held
September 12, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PU13LIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Paul Hufnagel, 2545 Oxford, Lansing, addressed the Board as president of the Greater
Lansing Labor Council. He expressed the Council's concern about the BWL's recent
hiring of a labor consultant to discourage the employee organizing effort. Mr. Hufiiagel
spoke about the long history of labor unions and their importance in the community. He
cited examples of projects completed in record time by union labor and the cooperation
between contractors, the City and the building trades. He expressed concern that the
democratic process would not take place. He asked the Board to reconsider its decision
to utilize a consultant, and provide the employees an opportunity to run an election
without interference by an outside consultant.
SEP-28-2000 14:46 BD OF WRTER LIGHT 1 517 371 6855 P.03/11
Board Minutes Page 99
September 26,2000
BWL employee Curt Gates, Business Manager of IBEW Local 352, spoke about the
latest effort by the labor consultant and some BWL senior management. He reported that
the vote scheduled for September 22°d was cancelled due to the labor consultant
contesting the "community of interest" issue between the clerical and technical groups.
He stated that lack of trust was an issue raised by employees through the last employees'
survey and that hiring a consultant to discourage unionization efforts has disturbed an
already frustrated group. He emphasized that employees are the issue; they make the
BWL work.
BWL employee Richard Taylor stated that since he has been employed with the BWL in
1981, the clerical and technical employees were classified as one group. He indicated
that the effort to unionize started as the result of the compensation study. He reported on
his recent experience with his annual performance evaluation and expressed his opinion
that the new performance appraisal system is unrealistic in terms of how employees will
be rated.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
#2000-9-1
COMMITTEE OF THE WHOLE REPORT
Present were Commissioners Aquilina, Christian, Creamer, Murray, O'Leary and Royal.
Absent were Commissioners Callen and Duncan.
The Committee of the Whole met on September 12, 2000, to receive an update on the
following activities:
1. Repairs to the Steam Main Serving General Motors. General Manager Pandy
reported on restoration work completed to date on the 20-inch steam line serving
General Motors that ruptured on June 27. The line was restored with full service
on September 7. Remaining work is targeted for completion by September 30.
Current expenditures to date are approximately$2.2 million. Final costs are
projected to be approximately$3.0 million as compared to the original budget
amount of$4.1 million.
2. Corporate and Process Measurement. General Manager Pandy reported on
corporate and process performance measures for fiscal year 2000-01, in which
employees are eligible to receive bonuses based on various measures concerning
financial, customer, internal business processes and employee learning and
development. The measures are linked to corporate measures and the business
plan. The implementation schedule for the new compensation system, variable
SEP-2B-2000 14:46 BD OF WRTER LIGHT 1 517 371 6655 P.04i11
Page 100 Board Minutes
September 26,2000
pay plan and balanced scorecard was reviewed. Discussion centered on the
importance of defining the key priorities and appropriate weighting for the
measures. Mr. Pandy reported that some of the measures are being revised to
better align them with BWL goals.
3. Ottawa Station Matters. The Committee of the Whole resolved in closed
session (6:23 p.m.) to meet with the Staff Attorney regarding strategy in
connection with pending litigation related to the Ottawa Street Station. The
meeting of the Committee of the Whole was then opened to the public (7:10 p.m.).
General Manager Pandy then briefed on the status of negotiations with a
prospective telecommunications vendor to develop the Ottawa Street Station.
Mr. Pandy outlined the scope of the project and the terms and conditions of the
proposed joint pre-development agreement. A joint meeting amongst parties
involved to discuss issues pertinent to the project was held with the Mayor and his
staff on September 12. The City is evaluating the merits of the project for
feedback to the Board of Water and Light by the next regular Board meeting on
September 26.
Submitted by,
Ronald C. Callen, Chair Pro Tern
COMMITTEE OF THE WHOLE
Moved by Commissioner O'Leary, seconded by Commissioner Duncan, that the
Committee of the Whole Report be received and placed on file.
Action: Carried unanimously.
At the September 12'Committee of the Whole meeting, the Commissioners agreed to
review the pre-development agreement prior to the regular Board meeting before
authorizing the General Manager to enter into the joint pre-development agreement with
the prospective telecommunications tenant to develop the Ottawa Street Station.
General Manager Pandy reported that the potential vendor has executed the Joint Pre-
Development Agreement. He handed out a copy of the agreement, noting that some
minor changes had been made to the document as compared to an earlier version
provided to the Commissioners. Mr.Pandy reported that he received positive feedback
on September 25`h from the Mayor and his staff to continue to investigate the feasibility
of development of a major portion of the Ottawa Street Station. He handed out an article
entitled, "Telecom Hotels Come on Line,"which appeared in the September 11, 2000,
issue of Engineering News Record(ENR). Mr. Pandy noted that this development use is
occurring all over the United States and that it is not unique to Lansing.
Motion: Following a question and answer period, motion was made by Commissioner
O'Leary, seconded by Commissioner Creamer, to authorize the General Manager to enter
into a pre-development agreement for the Ottawa Street Station.
SEP-2B-2000 14:46 BD OF WRTER LIGHT 1 517 371 6B55 P.05/11
Pagc 101
Board Minutes
Scptcmbcr 26,2000
Discussion: This authorization allows the BWL to proceed with the due diligence review
to investigate financial capability,terms and conditions of utility services, and various
requirements. The Board will be updated on the progress of the investigative process,
anticipated to take from 30 to 45 days.
Action: Carried unanimously.
PERSONNEL COMMITTEE REPORT
Present: Commissioners Callen, Duncan, O'Leary and Royal.
Absent: Commissioner Aquilina
The Personnel Committee met on September 22, 2000, to review the results of
performance appraisals conducted for the three Board-appointed positions.
Performance appraisals and salary increases for the three positions reporting to the Board
are administered according to the Board of Water and Light wage and salary plan for non-
bargaining administrative employees. Duman Resources Director Linda Gardner
presented the results of performance ratings completed by the Commissioners for each of
the three Board-appointed positions. Following review and discussion, the following
resolutions were proposed for Board consideration:
#2000-9-2
Resolution of Personnel Committee to
Remove from the Table the Resolution
to Appoint Charter Staff Positions
WHEREAS, At the regular meeting of July 25, 2000, it was the consensus of the Board to
table the Resolution regarding the reappointment of the three charter staff positions
pending completion of their performance evaluations.
WHEREAS, The Personnel Committee conducted a review of performance appraisal
results on September 22, 2000, be it
RESOLVED, The Personnel Committee hereby recommends that the resolution
regarding the appointment of the charter staff positions be taken from the table for Board
consideration.
SEP-28-2000 14:47 BD OF WRTER LIGHT 1 517 371 6855 P.06/11
Page 102 Board Minutes
Scptcmbcr 26,2000
#2000-9-3
Resolution to Reappoint Charter Staff Positions
WHEREAS, The Board's Rules of Administrative Procedures specify that the Board is to
appoint a Director, Corporate Secretary and Internal Auditor, respectively, at the first
regular meeting in July of each year,be it
RESOLVED, That the Board cast a unanimous vote for the reappointment of the
following staff positions for Fiscal Year 2000-01, or, until a successor is appointed,
whichever last occurs:
Director and General Manager - Joseph Pandy, Jr.
Director of Metrics and Audits - Kellie L. Willson
Corporate Secretary - Mary E. Sova
#2000-9-4
Resolution to Authorize Compensation Increases
for Director and General Manager,Director of Metrics and Audits,
and Corporate Secretary for Fiscal Year 2000-01
RESOLVED, That Director and General Manager Joseph Pandy, Jr., Director of Metrics
and Audits Kellie Willson, and Corporate Secretary Mary Sova are hereby eligible to
receive salary increases effective as of July 1, 2000.
RESOLVED FURTHER, That increases in the range of 3.0% to 4.0% for the three
positions reporting to the Board,based on their performance ratings, are hereby
confirmed as reviewed by the Personnel Committee on September 22, 2000, and filed
with Human Resources.
Motion by Commissioner O'Leary, seconded by Commissioner Creamer, that the
Personnel Committee Report be received.
Action: Adopted unanimously.
Motion by Commissioner Duncan, seconded by Commissioner Callen, that the resolution
to remove from the table the previous resolution to appoint the charter staff positions
(#2000-9-2)be approved.
Action: Adopted unanimously.
Motion by Commissioner Callen, seconded by Commissioner O'Leary, that the
resolution to reappoint the charter staff positions (#2000-9-3)be approved.
SEP-26-2000 14:47 BD OF WRTER LIGHT 1 517 371 6655 P.07i11
Pagc 103
Board Minutes
September 26,2000
Action: Adopted unanimously.
Motion by Commissioner O'Leary, seconded by Commissioner Callen, that the
resolution authorizing compensation increases for the Director and General Manager,
Director of Metrics and Audits, and Corporate Secretary (42000-9-4) be approved.
Action: Adopted unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-9 -5
MODIFY CAPITAL BUDGET
RESOLVED,That the Board of Water and Light capital budget for fiscal year 2001 be
modified to include the cost of providing steam service to General Motors at its Lansing
Grand River Assembly Plant. In addition, the electric and water costs to serve Lansing
Grand River Assembly Plant will be modified to reflect the current division of
expenditures between electric, water and steam for FY 2001,
Current Modified
FY 2001 FY 2001
Project
Project# Expenditure Expenditures
GM Grand River Assembly
Steam ReinfoIcement/Service New $0 $800,000
GM Grand River Assembly
Electric Reinforcement/Service 00-117 $1,593,000 $1,369,000
GM Grand River Assembly
Water Reinforcement/Service 00-126 $912.000 $1,004,000
Total $2,505,000 $3,173,000
Moved by Commissioner Callen, seconded by Commissioner O'Leary, that the
resolution be approved.
Discussion: General Manager Pandy reported that the resolution proposes the
modification of the capital budget to include the steam reinforcement and relocation of
the steam service. This was a part of the original$7.6 million estimate to serve General
Motors (GM), based on a financial analysis done in October of 1998 (a copy of the analysis
was handed out). Also handed out were copies of the BWL's obligation and estimated cost
for this project and the most current summary of electrical load changes for the GM's
Lansing Grand River Assembly Plant. Mr. Pandy indicated that even by GM's own
estimates,the electrical load has grown by approximately one third. Since April,1999,
SEP-2B-2000 14:47 BD OF WRTER LIGHT 1 517 371 6B55 P.OBi11
Board Minutcs
Page 104 September 26,2000
the load was roughly 100 percent higher than the BWL had anticipated in its conservative
financial projections. Mr. Pandy reported on projected loads for GM's Mid-Michigan
Plant in Delta Township. Based on projections, the BWL's investment for these projects
should generate more revenue resulting in a positive return earlier than the year 2004.
In response to Commissioner Callen's question relative to anticipated costs due to
increased projected demand, e General
Manager Pandy said that installation costs for
sery GM's
additional substations to Grand River Plant will be funded by the central
utilities complex development. He noted,however, that the BWL is evaluating future
needs for another circuit from Eckert Station, which is not included in this year's capital
budget.
Action: Carried unanimously.
UNFINISHED BUSYNESS
None
NEW BUSINESS
There being no objections, the order of business was slightly modified to hear the General
Manager's remarks before discussing plans for the upcoming Board Retreat.
RESOLUTIONS
None.
GENERAL MANAGER'S REMARKS
Response to Public Comments Relative to the Union Election. General Manager
Pandy responded to public comments regarding the union election issue. He
acknowledged that there is a question with regard to what constitutes a"community of
interest"between groups of employees. This issue relates to questions raised by some
employees on whether technical and clerical employees should be represented within the
same bargaining unit. Mr. Pandy reported that there was a flaw in the Michigan
Employment Relations Commission(MERC)notice, which did not provide a standard
ten-day notice of the election date. The manner in which MERC sent the notices to the
union and to the BWL was a technical flaw that caused a delay in the election date of
September 22, 2000. The purpose of ten-day notice is to allow all eligible employees an
opportunity to arrange their schedules to participate in the election.
SEP-2B-2000 14:49
BD OF WRTER LIGHT 1 517 371 6B55 P.09/11
Page105
Board Minutes
September 26,2000
Financial Statistics and Trends. General Manager Pandy handed out copies of a
financial report titled, "Selected Historical nlanc al Officer Dan Tousleys nancial Statistics and Trend This Fiscal Year
ended June 30, 2000," prepared by Chief Fi
information will be discussed in more detail during the upcoming Board retreat. An
analysis that looks at ratios and other financial indicators is being prepared by Director of
Metrics and Audits Kellie Willson and will be available shortly.
REMARKS By COMMISSIONERS
Commissioner Creamer asked for a clarification on the role of the consultant engaged to
advise management on the pre-election campaign; namely, Gabriel Hall and Associates.
General Manager Pandy responded that Gabriel Hall is a labor relations professional who
was retained by the BWL during the 1988 unionization effort. His purpose is to guide
management with respect to conducting an informational campaign and the avoidance of
unfair labor practices under the Public Employee Relations Act. Mr. Hall has expertise
on how the Michigan Employment Relations Commission (MERC) is to conduct its
affairs and what its rules are. Mr. Hall has conducted interviews with managers in an
effort determine the major employee issues. Mr. Pandy and Staff Attorney Wilhite noted
that it is not the role of the consultant to contact the clerical or technical employees who
are eligible to vote in the election. The consultant's contact with union officials is limited
and is normally in front of a MERC official.
Commissioner Duncan asked about the expectation of when MERC might reschedule the
election.
Staff Attorney Wilhite responded that a notice was received from MERC advising that an
administrative hearing on the issue of"community of interest" is set for October 6'. The
election will be set by MERC some time after the hearing.
Commissioner Duncan asked for an explanation of the BWL's potential sale of 800 MHZ
radio frequencies, as reported to the Board in the meeting packet.
General Manager Pandy responded that in the 1980's, the BWL applied for and was
successful in receiving a Federal Communications Commission (FCC) license for radio
frequencies in the 800 MHZ band used by the BWL for its radio communications system,
which includes an interconnect to telephone capabilities. Mainly the BWL utilizes those
frequencies for its own communications; i.e., electrical and water operations and
emergency situations. The BWL has provided frequency access to other City of Lansing
departments such as Public Service, Forestry, and Parks and Recreation who pay the
BWL for the service. Nextel Communications acquired those frequencies, which the
BWL has had and operates under its license, in an FCC auction process. Nextel is willing
to pay the BWL approximately$2 million for these frequencies. Negotiations are
underway with el to aa are notre the 800 EEIZ band.tNe Necessary radio
equipment to meet
suitable for BWL L n needs that
SEP-28-2000 14:49
BD OF WRTER LIGHT 1 517 371 6855 P. 10/11
Board Minutes
Pagc 106 September 26,2000
BWL communication needs would be provided by Nextel to allow for a seamless
transition to the new frequencies.
Staff Attorney Wilhite reported that the FCC auctioned off and awarded the BWL
bandwidth to Nextel who was the high bidder.
voluntary stipulated ration to bethe BWL and
fol owed by a
Nextel had to enter into a one-year period o ary negotiation
mandatory negotiations process. At the end,both parties must reach an agreement. The
voluntary negotiation period will end in approximately February 2001.
Commissioner Callen inquired about No,compliance costs reported in the Board meeting
packet.
General Manager Pandy reported that depending on compliance options, estimates range
from as low as $9 million to as
e $250 million.
11i in the Ludy is currently underway on
No. compliance strategies targeted for P
NEW BUSYNESS
The Commissioners engaged in lengthy discussion on topics for the Board retreat and
reached consensus on critical issues that should be discussed.
The Board retreat will be held on Saturday,November 186', 8 a.m. to 12 Noon.
Topics identified for the retreat were listed in the order of priority.
1. The Role of the Board
2. Strategic Business Plan
3. Human Resource Management
4. The General Health of the BWL
5. Competition/Competitive Strategies
6. Major Projects- Capital and Construction Plans
7. Annual Budget
The Commissioners agreed that the agenda should be narrowed to two broad topics; the
role of the Board and return on equity. The Chair will finalize the agenda and will
discuss staff support with the General Manager.
There was consensus that a second retreat should be scheduled in the near future to
continue discussions on the remaining topics.
EXCUSED ABSENCES
On motion by Commissioner O'Leary, seconded by Commissioner Duncan, that the
absences of Commissioners Christian and Murray be excused.
Carried unanimously.
SEP-28-2000 14:50 HD OF WRTER LIGHT
1 517 371 6855 P. 11/11
Pagc107
Hoard Minutes
September 26,2000
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF WATER LIC AND LIGHT SUBJECT.
WELCOME
TO SPEAK TO THE BOARD ON A
BWL employee, Joseph Davis, commended the Commissioners on topics chosen for their
retreat. He emphasized the importance of addressing human resource management,
particularly employee issues related to training and staffing and the B.WL's strategic plan.
He stated that it is his hope the BWL will still be part of the community in ten or twenty
years from now and that he would continue to be one of its employees.
ADJOURNMENT
On motion by Commissioner Duncan, seconded by Commissioner Creamer, the meeting
adjourned by unanimous consent at 6:55 p.m.
Is/Mary E. Sova, Secretary
Filed September 28, 2000
Marilynn Slade, City Clerk
Page 86
Preliminary—Subject to Board Approval
c.
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING ,-.; `1
G
LANSING BOARD OF WATER AND LIGHT CO
-, CZ)
Tuesday, August 22, 2000
n1
cn
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair Diane Royal called
the meeting to order.
Present: Commissioners Ronald C. Callen, Ernest J. Christian, Charles M. Creamer,
Nancy W. Duncan, Mark A. Murray, and Diane R. Royal.
Absent: Commissioners Rosemarie E. Aquilina and David O'Leary.
The Secretary declared a quorum present.
All said the Pledge of Allegiance,
APPROVAL OF MINUTES
Motion was made by Commissioner Christian, seconded by Commissioner Callen, to
approve the minutes of regular session held July 25, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
BWL employee Richard Taylor stated that he has not received answers to questions raised
at the last few Board meetings, specifically whether the market rate for the Technical Skill
Family was set at the 65 h percentile. Mr. Taylor urged the Board to reject the resolution
to retain the labor consulting firm of Gabriel Hall and Associates to assist management
relative to the union organizing efforts by clerical-technical employees. He requested a
joint meeting between the employees and the Commissioners to discuss their grievances.
Thomas J. Katona, representing the Office & Professional Employees International Union
(OPEIOU), Local 512, 2178 Commons Parkway, Okemos, Michigan, objected to
engaging the services of a labor consultant to assist management in preparing for the union
Page 87 Board Minutes
August 22,2000
election on September 22. He urged the Commissioners to thoroughly research the
subject of"union busting" before voting on the resolution.
General Manager Pandy told the Board that he had responded to all of Mr. Taylor's
questions by letter, dated August 11, 2000, in which the 65th percentile issue relative to
the Technical Skill Family was clarified. He reported that the 65th percentile of the
Technical Skill Family was $42,824 (using Grade 3 as an example). When the Board
suggested setting the control point at the 501h percentile, plus 10 percent, this equated to
$40,400 plus 10 percent for a total of$44,440. Consequently the 50th percentile plus 10
percent was a higher rate than the 65"' percentile rate. The action taken by the Board is in
favor of Mr. Taylor and the other positions in the Technical Skill Family.
COMMUNICATIONS
E-mail communication from Pat Talbot expressing concern with management retaining a
consultant to counter the union organizing drive.
Received and placed on file.
REPORTS OF COMMITTEES
None.
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-8-1
LUGNUTS SPONSORSHIP
RESOLVED, That the General Manager be authorized to renew the BWL's sponsorship
agreement with the Lansing Lugnuts for a five-year period at an annual cost of$53,000.
-----------------------
The sponsorship agreement names the Board of Water and Light (BWL) as the exclusive
utility sponsor of the Lugnuts and includes nightly promotions and special events that
promote the utility and its community involvement. The sponsorship package has been
designed to complement the BWL's overall branding goal that positions us as Lansing's
hometown utility. The renewal represents an increase of five percent over our current
sponsorship agreement and is protected from future increases over the five-year term of
the contract.
Board Minutes Page 88
August 22,2000
Moved by Commissioner Murray, seconded by Commissioner Callen, that the resolution
be approved.
Discussion: Commissioner Creamer requested general feedback on the success rate of the
sponsorship and how it fits into the BWL's overall branding concept.
Communications Director John Strickler responded that overall, the BWL has been very
pleased with the relationship it has had with the Lansing Lugnuts. Several meetings are
held with the Lugnuts personnel on an annual basis to discuss the sponsorship package
and to develop promotions that fit into the BWL's objectives. This ensures the right
strategies are being implemented. A memo addressed to General Manager Pandy, from
Mr. Strickler, dated August 3, 2000, was included with the Board packet outlining the
successes of the program and components of the five-year agreement.
Action: Carried unanimously.
#2000-8-2
ADOPTION OF RATE SCHEDULE
RESOLVED, That the Electric Renewable Energy Rider detailed in the attached rate
schedule, appended to these minutes, be adopted and made effective for electric
consumption on or after January 1, 2001.
This rate was the subject of a public hearing July 11, 2000. The Commissioners pulled the
rider at their July 25, 2000, regular meeting for consideration at a later date.
Moved by Commissioner Murray, seconded by Commissioner Creamer, that the
resolution be approved.
Discussion: Commissioner Royal noted that the Board tabled the resolution at the July
251h meeting, because one Commissioner was planning to abstain due to a conflict of
interest, and not enough Commissioners were present to approve the rate.
General Manager Pandy updated the Board on efforts to offer a green power energy
option to customers. He reported that staff had been negotiating a proposal with a dairy
farm in southwest Michigan on a project that would utilize the methane fuel produced
from cow biomass waste to generate one megawatt of power (enough to supply 2,800
residential customers with half their electricity requirements). In conducting a due
diligence on the project, the Michigan Department of Environmental Quality (DEQ)
became involved and determined that the water runoff from the dairy farm had Ecoli
bacteria several hundred times the allowable limits. The DEQ issued a consent order for
the dairy farm to clean up the water runoff problem. In light of the environmental
concerns, the BWL determined that the proposal did not meet commonly accepted
conditions for qualifying as green power. The viability of working with the dairy farm on
the biomass is a long-term project, pending the clean up. Another green energy option
being explored includes wind turbine generation. Negotiations are in process between the
Page 84 Board Minutes
August 22,2000
Michigan Public Power Agency (MPPA) and the Chippewa Indian tribe near Traverse City
where a successful wind turbine generator has been developed. A joint venture through
the BWL's membership in MPPA may include additional wind power for BWL
participation as part owner of the project. Also, staff is exploring the economics of
refurbishing a portion of the BWL's hydroelectric power on the North Lansing Dam. Mr.
Pandy noted that hydropower has its limits due to the river flow and elevation change in
the North Lansing portion of the Grand River. Wind and hydropower are emerging, while
biomass has dropped down in the order of probability due to the dairy farm's water runoff
problem. A wind turbine generator could happen within a year; and if economically
feasible, hydroelectric power could occur by two years. Biomass is approximately two
years out.
Action: Adopted by the following vote:
YEAS: Christian, Creamer, Duncan, Murray, Royal
NAYS: None
ABSENTIONS: Callen
ABSENT: Aquilina, O'Leary
#2000-8-3
RETENTION OF A CONSULTANT
WHEREAS, The International Brotherhood of Electrical Workers (IBEW), Local 352,
has filed a petition for election with the Michigan Employment Relations Commission
(MERC) to represent all full time and regular part-time clerical and technical persons
employed by the Board of Water and Light; and
WHEREAS, BWL management desires to conduct an informational campaign to persuade
employees of the benefits of non-bargaining unit membership; and
WHEREAS, Advising the BWL management of its duties and prohibitions with respect to
conducting an informational campaign and the avoidance of unfair labor practices under
the Public Employee Relations Act calls for specialized knowledge and expertise.
WHEREAS, BWL management has interviewed two consultants for this purpose.
NOW THEREFORE BE IT RESOLVED, That the General Manager is authorized to
retain Gabriel Hall and Associates at an hourly rate of$160.00 to provide the scope of
services as set forth in the attached letter.
Moved by Commissioner Creamer, seconded by Commissioner Duncan, that the
resolution be approved.
Board Minutes Page 90
August 22,2000
Discussion: Commissioner Murray noted that a fairly obvious issue exists with regard to
appropriate communication versus the alleged "union busting." He asked if the
consultant's experience with other similar campaigns resulted in unfair labor practices or
simply allegations in which no unfair labor practices actually occurred.
General Manager Pandy responded that Gabriel Hall has offered to provide references
from union officials who have testified that he conducts himself in a professional manner
and in compliance with the law. Copies of these references will be obtained for review.
Staff Attorney Wilhite added that Mr. Hall has been involved in over one thousand pre-
election campaigns, and no unfair labor practices have been filed against him. The BWL
previously utilized his services in 1988, which resulted in a clean, above-board campaign.
Mr. Wilhite assured the Board that there would be no direct interaction between Mr. Hall
and the employees. Mr. Hall will meet only with the management group to assist in
developing communication strategies and delivering its message consistent with the Public
Employee's Relations Act.
Action: Adopted by the following vote:
YEAS: Christian, Creamer, Duncan, Murray, Royal
NAYS: Callen
ABSENT: Aquilina, O'Leary
UNFINISHED BUSINESS
None
NEW BUSINESS
Chair Diane Royal announced the standing committee assignments for fiscal year 2000-01:
Executive Committee
Diane R. Royal, Chair
Charles M. Creamer, Vice Chair
Ronald C. Callen, Chair Pro Tern
Finance Committee
Mark A. Murray, Chair
Ernest I Christian
Charles M. Creamer
David O'Leary
Alternates: Ronald C. Callen, Nancy W. Duncan
Page 91 Board Minutes
August 22,2000
Personnel Committee
Ronald C. Callen, Chair
Rosemarie E. Aquilina
Nancy W. Duncan
Diane R. Royal
Alternates:Mark A.Murray, David O'Leary
Nominating Committee
Ernest J. Christian, Chair
Nancy W. Duncan
Mark A. Murray
Diane R. Royal
Alternates: Ronald C. Callen, Charles M. Creamer
RESOLUTIONS
RESOLUTION HONORING JUDSON M. WERBELOW
WHEREAS, It is with respect and appreciation that we recognize Judson M. Werbelow
for his service as a Commissioner of the Lansing Board of Water and Light as he brings
his term to a close.
WHEREAS, Judson M. Werbelow was appointed to the Board on September 16, 1996, as
an At-Large Commissioner. He served on the Finance, Personnel and Nominating
Committees and on the Board's Special Committee on the Development of the Ottawa
Street Power Station; and
WHEREAS, Among significant BWL activities and projects implemented during his
tenure on the Board were: the new defined contribution retirement plan for employees
(1997), Integrated Resource Plan for electric and steam options (1997), relocation of the
Customer Service Center and Administration Building to Haco Drive (1998), plan to fund
retiree health care (1999), Y2K preparations (1999), two revenue bond issues to finance
capital improvements (1999), redesign of BWL organizational processes (1999-2000),
construction of a new central utilities complex to serve the General Motors Grand River
Assembly Plant (2000), construction of a chilled water system to serve downtown
buildings (2000), major water extensions to serve Alaiedon Township, Bath Township,
City of DeWitt/DeWitt Township and East Lansing-Meridian Township (1999-2000), new
compensation system for non-bargaining employees (2000), and electric utility
restructuring legislation (2000).
WHEREAS, Judson M. Werbelow's knowledge has been tapped by countless officials in
the Lansing region, who sought his advice. His legal expertise has been an immense
assistance during economic development and revenue bond issues. His wisdom,
Board Minutes Page 92
August 22,2000
professionalism, and generosity have earned him widespread acclaim and our deepest
appreciation. We are confident that the Lansing Board of Water and Light and its
customers will long benefit from his service.
WHEREAS, Through the years, Judson M. Werbelow has been recognized by the Lansing
community for his sound moral character, and has lent his time and expertise to make
Lansing a better community. He has served in leadership roles on numerous community
initiatives and has earned many community service awards.
NOW THEREFORE, The Lansing Board of Water and Light Commissioners, hereby
thanks Judson Werbelow on this 22"a day of August, 2000, for his exemplary service to
the Lansing Board of Water and Light and to the people in the Greater Lansing area.
Moved by Commissioner Creamer, seconded by Commissioner Christian, that the
resolution be approved.
Action: Carried unanimously.
GENERAL MANAGER'S REMARKS
Employee Home Ownership Program. General Manager Pandy updated the Board on
the status of the BWL Employee Home Ownership incentive plan. He reported that the
BWL allocated up to five grants of$5,000 each to employees for home ownership in four
distressed areas in Lansing. Two employees have taken advantage of the program in the
two years it has been in effect. The program continues through the current fiscal year.
Mr. Pandy indicated that if the program were extended to the entire City and not restricted
to focus neighborhoods, more employees would be interested. A complicating factor
would be created by extending the program city wide because the Local Initiatives
Support Corporation (LISC) would no longer be able to administer the program due to a
focus change from a community development program (tax deductible) to an employee
benefit (non-tax deductible). This change would require the BWL to work with a different
community development organization or administer it in-house through Human
Resources. Mr. Pandy stated that if the Board wishes to revitalize the program, a citywide
program would encourage greater participation. He noted that a hurdle with the present
program through LISC is meeting the income test, as most BWL employees are
compensated in a manner that puts them above the minimum income level to qualify for
grants and matching funds through LISC.
The Commissioners expressed concern with the impact an expanded citywide program
would create on Human Resources at a time when there are other priorities. There would
be tax consequences to consider by a citywide program, since it would become part of
total compensation. The Commissioners requested follow-up information on the
experience of other organizations, such as the City of Lansing and Sparrow Hospital.
Page 93 Board Minutes
August 22,2000
Status of General Motors' Steam Main Repairs. General Manager Pandy reported that
progress on replacing the 36 expansion joints is two weeks ahead of schedule, and the
integrity of the line has been restored. Cleanup and restoration work remains to fully
complete the job. BWL management is reviewing legal options in recovering costs
associated with the steam line rupture.
Assistant General Manager Bill Cook reported that the steam main is scheduled to be fully
in service by September 6, 2000.
Status of Chilled Water Project. The chilled water project is well underway, with the
project at $876,000 under budget. A status report of chilled water customers was handed
out for information. General Manager Pandy noted that seven new customers have been
identified since the project started, which would involve $1.6 million of additional
extensions. Marketing staff is conducting a financial pro forma based on a ten-year
analysis to determine if the potential loads are feasible. A color-coded map was handed
out showing the sequence of loads to be connected to the chilled district. Also distributed
was a copy of a thank you letter to the Mayor from Leanne Stites, Executive Director of
the Principal Shopping District, dated August 21, 2000, which recognizes key individuals-
-including BWL project engineer Jan Nelson--credited for a smooth transition during the
downtown chiller construction.
Report on Major Projects. General Manager Pandy handed out a tracking list of major
projects. He reported that all the projects listed would not automatically be served by the
BWL. Many are competitive projects left for the customer to determine choice between
BWL and Consumers Energy. Commissioner Murray suggested adding a column to the
list indicating a unit of workload or dollars involved to quickly assess the key
organizational challenges. He said a quarterly or semi-annual assessment to monitor the
BWL's competitive position would also be beneficial. Mr. Pandy reported on competitive
projects the BWL has gained and lost over the past several years. He added that
approaches and strategies in dealing with the competition is an important topic for the
Board to discuss at a future meeting.
Status of Central Utilities Complex. Work on the central utilities complex (CUC) to
serve the General Motors Grand River Assembly plant is on schedule, with 98% of the
costs identified by contracts and bids. The project is approximately $1 million under
budget.
The Next Central Utilities Complex (CUC)—Delta Township. General Manager
Pandy updated the Board on activities involving the next central utilities complex to serve
the General Motors (GM) Mid-Michigan Plant in Delta Township, Mr. Pandy reported
that he was contacted by GM requesting the BWL's commitment to work with the CUC
bidders to formulate an acceptable business case for a combined heat and power project at
the GM Mid-Michigan Plant. Mr. Pandy noted that the BWL has a long-term contract
with GM to supply all their electricity at the new facility. A benefit to the BWL would be
having a black start capability to provide gas-fired generation to start the system in the
Board Minutes Page 94
August 22,2000
event of a Midwest blackout. The potential of marketing the new generating capacity on
the wholesale market adds value for the parties.
GM has requested a commitment indicating the BWL is willing to cooperate and work in
good faith to jointly investigate with the selected CUC bidder the business case of a
cogeneration facility at GM's Mid-Michigan Plant. Mr. Pandy pointed out that the
commitment letter is not intended to create a binding offer or contract for the purchase or
sale of electric energy or capacity between the BWL and the bidder, nor does it in any way
obligate either of the parties to enter into any agreement or to proceed with any possible
relationship or transaction without the Board's approval.
Mr. Pandy discussed financing issues relevant to the project. The proposed central
utilities complex (in Delta Township) is expected to cost approximately $100 million. He
noted that when initial discussions on the next CUC were held, the Board clearly indicated
it did not want to finance and own the entire project as was done with the first CUC
project for GM's Grand River Assembly Plant. The BWL issued $78 million of taxable
bonds, participated in the design and construction of the complex, and is involved in its
operation and maintenance. Mr. Pandy stated that if the Board elects to finance a piece of
the next CUC project for a combined heat and power option, the BWL would be adding
generation to its system at an estimated $10415 million investment secured by a 15-year
contract from GM.
Commissioner Murray suggested that since the financing would be taxable, the question of
ownership and financing should be explored with the fullest range of options available to
benefit the BWL. Mr. Pandy responded that staff has been exploring the various
alternatives.
Following lengthy discussion, the Commissioners gave their consensus for the General
Manager to submit a"comfort" letter to General Motors. Mr. Pandy told the Board that
follow-up information on the specifics of the project would be submitted to the Board by
the end of the current calendar year.
Status of the Ottawa Station Redevelopment Project. General Manager Pandy handed
out a copy of a Joint Pre-Development Agreement, which was forwarded to a prospective
telecommunications vendor last week. He reported that comments have not been received
from the prospective vendor. A meeting has been arranged with Mayor Hollister and his
staff for their concurrence on the project. Mr. Pandy noted that the telecommunications
project appears more viable as compared to the plan submitted by Steiner & Associates,
by virtue that first-tier cities are getting telecommunications hubs for Internet service
providers. Two key elements needed by the developer are: (1) building strength that can
handle over 200 pounds per square foot structurally to support the weight of the
equipment and (2) concentrated electric and chilled water services. Other key ingredients
include access to the fiber optic network of the city and access to the whole capital loop.
Staff Attorney Larry Wilhite, who is leads BWL negotiations on this project, reported that
the investigation period to determine whether the project is viable is estimated at 30 to 45
Page 95 Board Minutes
August 22,2000
days. This allows enough time for the developer to meet with the City administration and
explore the value of the building. The type of agreement for the Ottawa Plant (lease or
ground agreement) has yet to be determined.
Mr. Pandy noted that at the July 25th Board meeting, he reported about another
telecommunications firm that expressed interest in the building, however, they have fallen
by the wayside. Steiner & Associates has not indicated a willingness to proceed with the
project. Steiner's study indicated the project would involve $20-$25 million of grant
funds. Gregg Hanner, a vice president of Steiner & Associates verbally indicated his
interest to pursue the project, but nothing has been proposed in writing.
Status on BWL Gas Aggregation Program. General Manger Pandy handed out a 15-
month recap of the gas aggregation program (April 1999—June 2000). Results indicate a
positive net income of$60,225.82. Savings to BWL gas customers were $211,337.80,
customers of AMI (township customers) $123,647.19 for a total of$334,984.99. The
program matures in 2001.
External Audit Contract. General Manager Pandy distributed a copy of a memo to the
Mayor and his staff regarding the annual independent audit of the BWL. The five-year
agreement with the firm of Deloitte & Touche concludes with this year's audit (FY 2000).
The BWL will need to work with the City to determine the new auditing firm for fiscal
year 2000-01 and future years. Director of Metrics & Audits, Kellie Willson, will be
working with City staff on this process.
Competitive Issue by the Capital City Airport. General Manager Pandy reported that
he has advised the Mayor and his staff that the Capital Region Airport Authority will
consider the development of an approximate 85-acre industrial park tract on the east side
of the Capital City Airport. The BWL's competitor is competing for electric service at
this development by virtue of their franchise to operate in DeWitt, as does the BWL.
Capital Area United Way and Cash Contributions. The Capital Area United Way
(CAUW) has recognized the BWL for its leadership in the 2000 Corporate Council. The
BWL was acknowledged in the Bronze level of sponsorship for the campaign report in the
LANsiNG STATE JouRNAL. The BWL also installs and maintains the campaign
thermometers that report to the community how the campaign is progressing. The
CAUW has asked the BWL if it would be preferable to write a check and let another
organization take care of the thermometers. Mr. Pandy stated that the BWL's policy is
not to make cash contributions, but instead has provided in-kind services and sponsorships
to the CAUW at an approximate annual cost of$10,000 over the past eight to nine years.
He stated that it would be more cost effective for BWL to write a check to CAUW than to
continue to maintain, install, and remove the campaign thermometers. He invited
comments from the Board on this issue.
BWL Sponsors Legislative Luncheon at the Oldsmobile Classic. The BWL is
sponsoring the legislative reception at the Oldsmobile Classic on August 241h for
legislative officials and economic development people in the community.
Board Minutes Page 96
August 22,2000
Proposed BWL History Book Project. The BWL has been approached by Raymond G.
Kuhl, a retired executive of the Michigan Electric Cooperative Association, regarding a
proposed BWL history book project. Mr. Kuhl is the author of a book entitled, ON TI-MIR
OWN POWER— A STORY ON MICHIGAN'S ELECTRIC COOPS. Mr. Pandy reviewed the cost
associated with the project. Following discussion, the Commissioners determined that the
project would not be practical at this time.
REMARKS BY COMMISSIONERS
Commissioner Callen stated that the annual financial report (FY ended June 2000) shows a
substantial increase in net income. He asked for an explanation.
General Manager Pandy responded that as the year progressed and rate increases were
being advocated, a serious expense reduction effort was underway. Each of the BWL
processes did their share to control expenses. Reductions in coal and transportation
expenses contributed to the savings. Mr. Pandy noted that savings from the new leased
railcars recently authorized by the Board totaled $149,000 over a seven-week period (July
1 to August 18). The annual savings is projected to be $1.1 million.
Commissioner Callen commented that the California experience with deregulation appears
to be a disaster. He suggested that it would be worthwhile for staff to provide information
on what has gone wrong and how that compares with Michigan's new deregulation law.
He also noted that in reviewing the BWL's Share the Success results for Fiscal Year 2000,
it was noted that the residential customers' degree of confidence of the BWL is somewhat
lower than what is desired. He urged that careful thought be given on the implications of
that survey result.
EXCUSED ABSENCES
On motion by Commissioner Christian, seconded by Commissioner Murray, that the
absences of Commissioners Aquilina and O'Leary be excused.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
Deb Bittner, Vice President of the Clerical-Technical Union of Michigan State University,
stated that as a member of a labor union, she believes people have the right to choose their
own paths and work to make sure they have a voice in their workplace. She said that
unions are not the enemy, but instead provide support to the community. She asked why
the BWL would want to jeopardize its relationship with the community by hiring a
Page 97
Board Minutes
August 22,2000
consultant for the sole purpose of discouraging workers from belonging to a union. She
urged the Board to make sure the election is indeed as "squeaky-clean" as the one
management claims the consultant will run.
BWL employee Joseph Davis, President of MEW Local 352, stated that the MEW is still
here, and the vote will proceed on September 22. The MEW will in no way take the
outcome negatively. Mr. Davis also stated for the record that a recent article, which
appeared in the Lansing Business Journal, included a photograph of Mr. Davis and George
Bibbings, Manager of the Maintenance and Construction Resource Center. He noted that
the article erroneously listed Mr. Bibbings as a union member. Mr. Davis set the record
straight that Mr. Bibbings—a former union member—is currently his manager. He noted
that there was no intent to misconstrue Mr. Bibbings' position.
Chair Diane Royal reassured those who addressed the Board on the unionization matter,
that the Board's intentions are completely above board. The firm of Gabriel Hall and
Associates is being retained strictly to provide labor-consulting services to management.
It is the Board's understanding that Mr. Hall operates a professional business and the
Board intends that will happen on this consultation.
Thomas Katona, representing the Office & Professional Employees International Union
(OPEN), Local 512, commented that he is disappointed the Board has authorized the
hiring of the labor consultant. He shared his belief in the old adage that injury to one is
injury to all. He asked the Board to research what these consultants do and how they
work behind the scenes. He suggested that the Board monitor the progress of this
campaign, to assure the tactics described in the literature do not occur.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Creamer, the meeting adjourned by
unanimous consent at 7:10 p.m.
Q�
A/Malrsova, Secretary
Filed August 24, 2000
Marilynn Slade, City Clerk
13:51 RUG 25, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6293 #84303 PAGE: 2/13
Page 86
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, August 22, 2000
The Board of Commissioners met in regular session at 530 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair Diane Royal called
the meeting to order.
Present: Commissioners Ronald C. Callen, Ernest J. Christian, Charles M. Creamer,
Nancy W. Duncan, Mark A. Murray,and Diane R. Royal.
Absent: Commissioners Rosemarie E. Aquilina and David O'Leary.
The Secretary declared a quorum present.
CJ
' i
All said the Pledge of Allegiance. _ --
�.
APPROVAL OF MINUTES = ;
Motion was made by Commissioner Christian, seconded by Commissioner Caller; to
approve the minutes of regular session held July 25, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
BWL employee Richard Taylor stated that he has not received answers to questions raised
at the last few Board meetings, specifically whether the market rate for the Technical Skill
Family was set at the 65ffi percentile. Mr. Taylor urged the Board to reject the resolution
to retain the labor consulting firm of Gabriel Hall and Associates to assist management
relative to the union organizing efforts by clerical-technical employees. He requested a
joint meeting between the employees and the Commissioners to discuss their grievances.
Thomas J. Katona, representing the Office & Professional Employees International Union
(OPEIOU), Local 512, 2178 Commons Parkway, Okemos, Michigan, objected to
engaging the services of a labor consultant to assist management in preparing for the union
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August 22,2000
election on September 22. He urged the Commissioners to thoroughly research the subject
of"union busting"before voting on the resolution.
General Manager Pandy told the Board that he had responded to all of Mr. Taylor's
questions by letter, dated August 11, 2000, in which the 65`h percentile issue relative to the
Technical Skill Family was clarified. He reported that the 65`h percentile of the Technical
Skill Family was $42,824 (using Grade 3 as an example). When the Board suggested
setting the control point at the 50ffi percentile, plus 10 percent, this equated to $40,400 plus
10 percent for a total of$44,440. Consequently the 50`h percentile plus 10 percent was a
higher rate than the 65`" percentile rate. The action taken by the Board is i i favor of Mr.
Taylor and the other positions in the Technical Skill Family.
COMMUNICATIONS
E-mail communication from Pat Talbot expressing concern with management retaining a
consultant to counter the union organizing drive.
Received and placed on file.
REPORTS OF COMMITTEES
None.
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-8-1
LUGNUTS SPONSORSHIP
RESOLVED, That the General Manager be authorized to renew the BWL's sponsorship
agreement with the Lansing Lugnuts for a five-year period at an annual cost of$53,000.
-----------------------
The sponsorship agreement names the Board of Water and Light(BWL) as the exclusive
utility sponsor of the Lugnuts and includes nightly promotions and special events that
promote the utility and its community involvement. The sponsorship package has been
designed to complement the BWL's overall branding goal that positions us as Lansing's
hometown utility. The renewal represents an increase of five percent over our current
sponsorship agreement and is protected from future increases over the five-year term of
the contract.
Moved by Commissioner Murray, seconded by Commissioner Callen, that the resolution
be approved.
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Discussion: Commissioner Creamer requested general feedback on the success rate of the
sponsorship and how it fits into the BWL's overall branding concept.
Communications Director John Strickler responded that overall, the BWL has been very
pleased with the relationship it has had with the Lansing Lugnuts. Several meetings are
held with the Lugnuts personnel on an annual basis to discuss the sponsorship package and
to develop promotions that fit into the BWL's objectives. This ensures the right strategies
are being implemented. A memo addressed to General Manager Pandy, from Mr.
Strickler, dated August 3, 2000, was included with the Board packet outlining the
successes of the program and components of the five-year agreement.
Action: Carried unanimously.
92000-8-2
ADOPTION OF RATE SCHEDULE
RESOLVED, That the Electric Renewable Energy Rider detailed in the attached rate
schedule, appended to these minutes, be adopted and made effective for electric
consumption on or after January 1, 2001.
This rate was the subject of a public hearing July 11, 2000. The Commissioners pulled
the rider at their July 25, 2000, regular meeting for consideration at a later date.
Moved by Commissioner Murray, seconded by Commissioner Creamer, that the
resolution be approved.
Discussion: Commissioner Royal noted that the Board tabled the resolution at the July
251 meeting, because one Commissioner was planning to abstain due to a conflict of
interest, and not enough Commissioners were present to approve the rate.
General Manager Pandy updated the Board on efforts to offer a green power energy option
to customers. He reported that staff had been negotiating a proposal with a dairy farm in
southwest Michigan on a project that would utilize the methane fuel produced from cow
biomass waste to generate one megawatt of power(enough to supply 2,800 residential
customers with half their electricity requirements). In conducting a due diligence on the
project; the Michigan Department of Environmental Quality(DEQ)became involved and
determined that the water runoff from the dairy farm had Ecoli bacteria several hundred
times the allowable limits. The DEQ issued a consent order for the dairy farm to clean up
the water runoff problem. In light of the environmental concerns, the BWL determined
that the proposal did not meet commonly accepted conditions for qualifying as green
power. The viability of working with the dairy faun on the biomass is a long-term project,
pending the clean up. Another green energy option being explored includes wind turbine
generation. Negotiations are in process between the Michigan Public Power Agency
(MPPA) and the Chippewa Indian tribe near Traverse City where a successful wind
turbine generator has been developed. A joint venture through the BWL's membership in
MPPA may include additional wind power for BWL participation as part owner of the
project. Also, staff is exploring the economics of refurbishing a portion of the BWL's
hydroelectric power on the North Lansing Dam. Mr. Pandy noted that hydropower has its
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August 22,2000
limits due to the river flow and elevation change in the North Lansing portion of the Grand
River. Wind and hydropower are emerging, while biomass has dropped down in the order
of probability due to the dairy farm's water runoff problem. A wind turbine generator
could happen within a year; and if economically feasible, hydroelectric power could occur
by two years. Biomass is approximately two years out.
Action: Adopted by the following vote:
YEAS: Christian, Creamer, Duncan, Murray, Royal
NAYS: None
ABSENTIONS: Callen
ABSENT: Aquilina, O'Leary
42000-8-3
RETENTION OF A CONSULTANT
WHEREAS, The International Brotherhood of Electrical Workers (IBEW), Local 352, has
filed a petition for election with the Michigan Employment Relations Commission
(MERC)to represent all full time and regular part-time clerical and technical persons
employed by the Board of Water and Light; and
WHEREAS, BWL management desires to conduct an informational campaign to persuade
employees of the benefits of non-bargaining unit membership; and
WHEREAS, Advising the BWL management of its duties and prohibitions with respect to
conducting an informational campaign and the avoidance of unfair labor practices under
the Public Employee Relations Act calls for specialized knowledge and expertise.
WHEREAS, BWL management has interviewed two consultants for this purpose.
NOW THEREFORE BE IT RESOLVED, That the General Manager is authorized to
retain Gabriel Hall and Associates at an hourly rate of$160.00 to provide the scope of
services as set forth in the attached letter.
Moved by Commissioner Creamer, seconded by Commissioner Duncan, that the
resolution be approved.
Discussion: Commissioner Murray noted that a fairly obvious issue exists with regard to
appropriate communication versus the alleged "union busting." He asked if the
consultant's experience with other similar campaigns resulted in unfair labor practices or
simply allegations in which no unfair labor practices actually occurred.
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General Manager Pandy responded that Gabriel Hall has offered to provide references
from union officials who have testified that he conducts himself in a professional manner
and in compliance with the law. Copies of these references will be obtained for review.
Staff Attorney Wilhite added that Mr. Hall has been involved in over one thousand pre-
election campaigns, and no unfair labor practices have been filed against him. The BWL
previously utilized his services in 1988, which resulted in a clean, above-board campaign.
Mr. Wilhite assured the Board that there would be no direct interaction between Mr. Hall
and the employees. Mr. Hall will meet only with the management group to assist in
developing communication strategies and delivering its message consistent with the Public
Employee's Relations Act.
Action: Adopted by the following vote:
YEAS: Christian, Creamer, Duncan, Murray, Royal
NAYS: Callen
ABSENT: Aquilina, O'Leary
UNFINISHED BUSINESS
None
NEW BUSINESS
Chair Diane Royal announced the standing committee assignments for fiscal year 2000-01:
Executive Committee
Diane R. Royal, Chair
Charles M. Creamer, Vice Chair
Ronald C. Callen, Chair Pro Tenn
Finance Committee
Mark A. Murray, Chair
Ernest J. Christian
Charles M. Creamer
David O'Leary
Alternates: Ronald C. Callen, Nancy W. Duncan
Personnel Committee
Ronald C. Callen, Chair
Rosemarie E. Aquilina
Nancy W. Duncan
Diane R. Royal
Alternates:Mark A.Murray, David O'Leary
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Nominating Committee
Ernest J. Christian, Chair
Nancy W. Duncan
Mark A. Murray
Diane R. Royal
Alternates:Ronald C. Callen, Charles Al. Creamer
RESOLUTIONS
RESOLUTION HONORING JUDSON M. WERBELOW
WHEREAS, It is with respect and appreciation that we recognize Judson M. Werbelow
for his service as a Commissioner of the Lansing Board of Water and Light as he brings
his term to a close.
WHEREAS, Judson M. Werbelow was appointed to the Board on September 16, 1996, as
an At-Large Commissioner. He served on the Finance, Personnel and Nominating
Committees and on the Board's Special Committee on the Developmentof the Ottawa
Street Power Station; and
WHEREAS, Among significant BWL activities and projects implemented during his
tenure on the Board were: the new defined contribution retirement plan for employees
(1997), Integrated Resource Plan for electric and steani options (1997), relocation of the
Customer Service Center and Administration Building to Haco Drive (1998), plan to fund
retiree health care(1999), Y2K preparations (1999), two revenue bond issues to finance
capital improvements (1999), redesign of BWL organizational processes (1999-2000),
construction of a new central utilities complex to serve the General Motors Grand River
Assembly Plant(2000), construction of a chilled water system to serve downtown
buildings (2000), major water extensions to serve Alaiedon Township, Bath Township,
City of DeWitt/DeWitt Township and East Lansing-Meridian Township (1999-2000), new
compensation system for non-bargaining employees (2000), and electric utility
restructuring legislation(2000).
WHEREAS, Judson M. Werbelow's knowledge has been tapped by countless officials in
the Lansing region, who sought his advice. His legal expertise has been an immense
assistance during economic development and revenue bond issues. His wisdom,
professionalism, and generosity have earned him widespread acclaim and our deepest
appreciation. We are confident that the Lansing Board of Water and Light and its
customers will long benefit from his service.
WHEREAS, Through the years, Judson M. Werbelow has been recognized by the Lansing
community for his sound moral character, and has lent his time and expertise to make
Lansing abetter community. He has served in leadership roles on numerous community
initiatives and has earned many community service awards.
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August 22,2000
NOW THEREFORE, The Lansing Board of Water and Light Commissioners, hereby
thanks Judson Werbelow on this 22nd day of August, 2000, for his exemplary service to
the Lansing Board of Water and Light and to the people in the Greater Lansing area.
Moved by Commissioner Creamer, seconded by Commissioner Christian, that the
resolution be approved.
Action: Carried unanimously.
GENERAL MANAGER'S REMARKS
Employee Home OwnersMp Program General Manager Pandy updated the Board on
the status of the BWL Employee Home Ownership incentive plan. He reported that the
BWL allocated up to five grants of$5,000 each to employees for home ownership in four
distressed areas in Lansing. Two employees have taken advantage of the program in the
two years it has been in effect. The program continues through the current fiscal year.
Mr. Pandy indicated that if the program were extended to the entire City and not restricted
to focus neighborhoods, more employees would be interested. A complicating factor
would be created by extending the program city wide because the Local Initiatives
Support Corporation(LISC) would no longer be able to administer the program due to a
focus change from a community development program (tax deductible)to an employee
benefit(non-tax deductible). This change would require the BWL to work with a different
community development organization or administer it irrhouse through Human Resources.
Mr. Pandy stated that if the Board wishes to revitalize the program, a citywide program
would encourage greater participation. He noted that a hurdle with the present program
through LISC is meeting the income test, as most BWL employees are compensated in a
manner that puts them above the minimum income level to qualify for grants and matching
funds through LISC.
The Commissioners expressed concern with the impact an expanded citywide program
would create on Human Resources at a time when there are other priorities. There would
be tax consequences to consider by a citywide program, since it would become part of
total compensation. The Commissioners requested follow-up information on the
experience of Sparrow Hospital's home ownership program and other organizations, such
as the City of Lansing and Sparrow Hospital.
Status of General Motors' Steam Main Repairs. General Manager Pandy reported that
progress on replacing the 36 expansion joints is two weeks ahead of schedule, and the
integrity of the line has been restored. Cleanup and restoration work remains to fully
complete the job. BWL management is reviewing legal options in recovering costs
associated with the steam line rupture.
Assistant General Manager Bill Cook reported that the steam main is scheduled to be fully
in service by September 6, 2000.
Status of Chilled Water Project. The chilled water project is well underway, with the
project at$876,000 under budget. A status report of chilled water customers was handed
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out for information. General Manager Pandy noted that seven new customers have been
identified since the project started, which would involve $1.6 million of additional
extensions. Marketing staff is conducting a financial pro forma based on a ten-year
analysis to determine if the potential loads are feasible. A color-coded map was handed
out showing the sequence of loads to be connected to the chilled district. Also distributed
was a copy of a thank you letter to the Mayor from Leanne Stites, Executive Director of
the Principal Shopping District, dated August 21, 2000, which recognizes key individuals-
-including BWL project engineer Jan Nelson--who are credited for a smooth transition
during the downtown chiller construction.
Report on Major Projects. General Manager Pandy handed out a tracking list of major
projects. He reported that all the projects listed would not automatically be served by the
BWL. Many are competitive projects left for the customer to determine choice between
BWL and Consumers Energy. Commissioner Murray suggested adding a column to the
list indicating a unit of workload or dollars involved to quickly assess the key
organizational challenges. He said a quarterly or semi-annual assessment to monitor the
BWL's competitive position would also be beneficial. Mr. Pandy reported on competitive
projects the BWL has gained and lost over the past several years. He added that
approaches and strategies in dealing with the competition is an important topic for the
Board to discuss at a future meeting.
Status of Central Utilities Complex. Work on the central utilities complex(CUC)to
serve the General Motors Grand River Assembly plant is on schedule, with 98% of the
costs identified by contracts and bids. The project is approximately $1 million under
budget.
The Next Central Utilities Complex(CUC)—Delta Township. General Manager
Pandy updated the Board on activities involving the next central utilities complex to serve
the General Motors (GM) Mid-Michigan Plant in Delta Township. Mr. Pandy reported
that he was contacted by GM requesting the BWL's commitment to work with the CUC
bidders to formulate an acceptable business case for a combuied heat and power project at
the GM Mid-Michigan Plant. Mr. Pandy noted that the BWL has a long-term contract
with GM to supply all their electricity at the new facility. A benefit to the BWL would be
having a black start capability to provide gas-fired generation to start the system in the
event of a Midwest blackout. The potential of marketing the new generating capacity on
the wholesale market adds value for the parties.
GM has requested a commitment indicating the BWL is willing to cooperate and IAork in
good faith to jointly investigate with the selected CUC bidder the business case of a
cogeneration facility at GM's Mid-Michigan Plant. Mr. Pandy pointed out that the
commitment letter is not intended to create a binding offer or contract for the purchase or
sale of electric energy or capacity between the BWL and the bidder, nor does it in any way
obligate either of the parties to enter into any agreement or to proceed with any possible
relationship or transaction without the Board's approval.
Mr. Pandy discussed financing issues relevant to the project. The proposed central utilities
complex(in Delta Township) is expected to cost approximately $100 million. He noted
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that when initial discussions on the next CUC were held, the Board clearly indicated it did
not want to finance and own the entire project as was done with the first CUC project for
GM's Grand River Assembly Plant. The BWL issued $78 million of taxable bonds,
participated in the design and construction of the complex, and is involved in its operation
and maintenance. Mr. Pandy stated that if the Board elects to finance a piece of the next
CUC project for a combined heat and power option, the BWL would be adding generation
to its system at an estimated $10415 million investment secured by a 15-year contract
from GM.
Commissioner Murray suggested that since the financing would be taxable, the question of
ownership and financing should be explored with the fullest range of options available to
benefit the BWL. Mr. Pandy responded that staff has been exploring the various
alternatives.
Following lengthy discussion, the Commissioners gave their consensus for the General
Manager to submit a"comfort" letter to General Motors. Mr. Pandy told the Board that
follow-up information on the specifics of the project would be submitted to the Board by
the end of the current calendar year.
Status of the Ottawa Station Redevelopment Project. General Manager Pandy handed
out a copy of a Joint Pre-Development Agreement, which was forwarded to a prospective
telecommunications vendor last week. He reported that comments have not been received
from the prospective vendor. A meeting has been arranged with Mayor Hollister and his
staff for their concurrence on the project. Mr. Pandy noted that the telecommunications
project appears more viable as compared to the plan submitted by Steiner & Associates, by
virtue that first-tier cities are getting telecommunications hubs for Internet service
providers. Two key elements needed by the developer are: (1) building strength that can
handle over 200 pounds per square foot structurally to support the weight of the
equipment and (2) concentrated electric and chilled water services. Other key ingredients
include access to the fiber optic network of the city and access to the whole capital loop.
Staff Attorney Larry Wilhite, who is leads BWL negotiations on this project; reported that
the investigation period to determine whether the project is viable is estimated at 30 to 45
days. This allows enough time for the developer to meet with the City administration and
explore the value of the building. The type of agreement for the Ottawa Plant(lease or
ground agreement)has yet to be determined.
Mr. Pandy noted that at the July 25th Board meeting, he reported about another
telecommunications firm that expressed interest in the building, however, they have fallen
by the wayside. Steiner& Associates has not indicated a willingness to proceed with the
project. Steiner's study indicated the project would involve $20-$25 million of grant
funds. Gregg Hanner, a vice president of Steiner& Associates verbally indicated his
interest to pursue the project, but nothing has been proposed in writing.
Status on BWL Gas Aggregation Program. General Manger Pandy handed out a 15-
month recap of the gas aggregation program (April 1999—June 2000). Results indicate a
positive net income of$60,225.82. Savings to BWL gas customers were $211,337.80,
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customers of AMI (township customers) $123,647.19 for a total of$334,984.99. The
program matures in 2001.
External Audit Contract. General Manager Pandy distributed a copy of a memo to the
Mayor and his staff regarding the annual independent audit of the BWL. The five-year
agreement with the firm of Deloitte& Touche concludes with this year's audit(FY 2000).
The BWL will need to work with the City to determine the new auditing firm for fiscal
year 2000-01 and future years. Director of Metrics & Audits, Kellie Willson, will be
working with City staff on this process.
Competitive Issue by the Capital City Airport. General Manager Pandy reported that
he has advised the Mayor and his staff that the Capital Region Airport Authority will
consider the development of an approximate 85-acre industrial park tract on the east side
of the Capital City Airport. The BWL's competitor is competing for electric service at
this development by virtue of their franchise to operate in DeWitt, as does the BWL.
Capital Area United Way and Cash Contributions. The Capital Area United Way
(CAUW) has recognized the BWL for its leadership in the 2000 Corporate Council. The
BWL was recognized in the Bronze level of sponsorship for sponsoring the campaign
report in the LANSING STATE JOURNAL. The BWL also installs and maintains the
campaign thermometers that report to the community how the campaign is progressing.
The CAUW has asked the BWL if it would be preferable to write a check and let another
organization take care of the thermometers. Mr. Pandy stated that the BWL's policy is not
to make cash contributions, but instead has provided in-kind services and sponsorships to
the CAUW at an approximate annual cost of$10,000 over the past eight to nine years. He
stated that it would be more cost effective for BWL to write a check to CAUW than to
continue to maintain, install, and remove the campaign thermometers. He invited
comments from the Board on this issue.
BWL Sponsors Legislative Luncheon at the Oldsmobile Classic. The BWL is
sponsoring the legislative reception at the Oldsmobile Classic on August 24`h for
legislative officials and economic development people in the community.
Proposed BWL History Book Project. The BWL has been approached by Raymond G.
Kuhl, a retired executive of the Michigan Electric Cooperative Association, regarding a
proposed BWL history book project. Mr. Kuhl is the author of a book entitled, ON TIIt
OWN POWER—A STORY ON MICHIGAN'S ELECTRIC COOPS. Mr. Pandy reviewed the cost
associated with the project. Following discussion, the Commissioners determined that the
project would not be practical at this time.
REMARKS BY COMMISSIONERS
Commissioner Callen stated that the annual financial report(FY ended June 2000) shows a
substantial increase in net income. He asked for an explanation.
General Manager Pandy responded that as the year progressed and rate increases were
being advocated, a serious expense reduction effort was underway. Each of the BWL
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processes did their share to control expenses. Reductions in coal and transportation
expenses contributed to the savings. Mr. Pandy noted that savings from the new leased
railcars recently authorized by the Board totaled $149,000 over a seven-week period (July
1 to August 18). The annual savings is projected to be $1.1 million.
Commissioner Callen commented that the California experience with deregulation appears
to be a disaster. He suggested that it would be worthwhile for staff to provide information
on what has gone wrong and how that compares with Michigan's new deregulation law.
He also noted that in reviewing the BWL's Share the Success results for Fiscal Year 2000,
it was noted that the residential customers' degree of confidence of the BWL is somewhat
lower than what is desired. He urged that careful thought be given on the implications of
that survey result.
EXCUSED ABSENCES
On motion by Commissioner Christian, seconded by Commissioner Murray, that the
absences of Commissioners Aquilina and O'Leary be excused.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT
SUBJECT.
Deb Bittner, Vice President of the Clerical-Technical Union of Michigan State University,
stated that as a member of a labor union, she believes people have the right to choose their
own paths and work to make sure they have a voice in their workplace. She said that
unions are not the enemy, but instead provide support to the community. She asked why
the BWL would want to jeopardize its relationship with the community by hiring a
consultant for the sole purpose of discouraging workers from belonging to a union. She
urged the Board to make sure the election is indeed as "squeaky-clean" as the one
management claims the consultant will run.
BWL employee Joseph Davis, President of IBEW Local 352, stated that the IBEW is still
here, and the vote will proceed on September 22. The IBEW will in no way take the
outcome negatively. Mr. Davis also stated for the record that a recent article, which
appeared in the Lansing Business Journal, included a photograph of Mr. Davis and George
Bibbings, Manager of the Maintenance and Construction Resource Center. He noted that
the article erroneously listed Mr. Bibbings as a union member. Mr. Davis set the record
straight that Mr. Bibbings—a former union member—is currently his manager. He noted
that there was no intent to misconstrue Mr. Bibbings' position.
Chair Diane Royal reassured those who addressed the Board on the unionization matter,
that the Board's intentions are completely above board. Mr. Hall is being retained strictly
14:00 AUG 25, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #e4303 PAGE: 13/13
Page 97 Board Minutes
August 22,2000
to provide labor consulting services to management. It is the Board's understanding that
Gabriel Hall and Associates operates a professional organization and the Board intends
that will happen on this consultation.
Thomas Katona, representing the Office & Professional Employees International Union
(OPEIU), Local 512, commented that he is disappointed the Board has authorized the
hiring of the labor consultant. He shared his belief in the old adage that injury to one is
injury to all. He asked the Board to research what these consultants do and how they
work behind the scenes. He suggested that the Board monitor the progress of this
campaign, to assure the tactics described in the literature do not occur.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Creamer, the meeting adjourned by
unanimous consent at 7:10 p.m.
Is/Mary E. Sova, Secretary
Filed August 24, 2000
Marilynn Slade, City Clerk
Page 75
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
c '0
cJ Ti
Tuesday, July 25, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the '-
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair Diane Royal c`alied.,--
the meeting to order.
Present: Commissioners Ronald C. Callen, Ernest J. Christian, Charles M. Creamer,
David O'Leary, and Diane R. Royal. (One Board vacancy, confirmation
pending.)
Absent: Commissioners Rosemarie E. Aquilina and Mark A. Murray.
The Secretary declared a quorum present.
All said the Pledge of Allegiance.
ANNUAL ORGANIZATION MEETING
REPORT OF THE NOMINATING COMMITTEE
The Nominating Committee met on July 17, 2000, to review Commissioner survey
responses for consideration of nominations for Board officers.
By unanimous decision of the Nominating Committee, it is recommended that the
following Commissioners be elected to the offices indicated:
#2000-7-1
Slate of Officer Candidates
Chair: - Diane Royal
Vice Chair: - Charles Creamer
Chair Pro Tern: - Ronald Callen
Resolution to Appoint Charter Staff Positions
The Board's Rules of Administrative Procedures specify that the Board is to appoint a
Director, Corporate Secretary and Internal Auditor, respectively, at the first regular
meeting in July of each year, be it
Page 76 Board Minutes
July 25,2000
RESOLVED, That the Board cast a unanimous vote for the reappointment of the
following staff positions for fiscal year 2000-2001, 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
Respectfully submitted,
NOMINATING COMMITTEE
Rosemarie E. Aquilina, Chair
Mark A. Murray
Judson M. Werbelow
Ernest J. Christian (Alternate)
Motion by Commissioner Christian, seconded by Commissioner Callen, to table the
Resolution on the reappointment of the three Charter staff positions pending completion
of their performance evaluations.
Action: Carried unanimously.
Motion by Commissioner Christian, seconded by Commissioner Callen, to adopt the
slate of officers as submitted by the Nominating Committee.
Action: Carried unanimously.
APPROVAL OF MINUTES
Motion was made by Commissioner Callen, seconded by Commissioner Christian, to
approve the minutes of regular session held June 27, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
BWL employee Curt Gates introduced himself to the Commissioners as the new Business
Manager of the International Brotherhood of Electrical Workers (IBEW), Local 352,
representing BWL Bargaining Unit employees. Mr. Gates replaced former Business
Manager Max Zemer, who recently retired from the BWL.
Board Minutes Page 77
July 25,2000
BWL employee Richard Taylor raised the following questions:
1. What is the status of the Lansing Home Ownership Program for BWL employees
whereby $5,000 is offered to eligible BWL employees who moved back to the City
of Lansing? Mr. Taylor requested that consideration be given to reinstating the
program and publicizing it to employees.
2. The General Manager reported at the April 25, 2000 regular meeting that the market
rate for the Technical Skill Family (Grades 1 through 6) would be set at the 65"'
percentile of the grade range. Has this been done?
3. Non-Bargaining Employees were told that Position Description Questionnaires
(PDQ's)would be used to assist management to analyze the type of work an
employee performs. How can an employee compare the PDQ with similar positions
when that information is not available to the employee?
4. To better accommodate eligible employees to exercise their right to vote on the
unionization question, Mr. Taylor suggested some changes to various voting
locations:
• Switch the Boardroom voting location to the Lunchroom in the main office.
• Keep the Line Department bullpen on Pennsylvania Avenue as a second
location, but add a third location for employees housed in the Hazel Street
building.
5. He disagreed with statements published in the BWL leaflet"Know Your Rights, 3"
edition, July 16, 2000, relative to the unionization effort.
COMMUNICATIONS
Letter from Judson M. Werbelow, resigning his position as Commissioner of the Board of
Water and Light effective immediately.
Received and placed on file. A resolution acknowledging Mr. Werbelow's excellent
service to the Board of Water and Light is being prepared.
Communications received by E-mail and phone calls in support of the Renewable Energy
Rider under consideration from the following individuals: Matt Anderson, Christina
Carra, Elise Harvey, Antonia Marenich, Jan Patrick, Tim Rosenboom, Rebecca Skovill,
and Ron Whitmore.
Acknowledged and placed on file.
REPORTS OF COMMITTEES
None.
Page 78 Board Minutes
July 25,2000
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-7-2
NEW WATER,ELECTRIC AND STEAM RATE SCHEDULES
RESOLVED, That the water, electric, and steam rate schedules listed below and detailed
in the attached rate schedules be adopted and made effective for water, electric or steam
consumption on or after January 1, 2001.
Water Utility
Rate No. 1 Residential Water Service
Rate No. 2 Commercial &Industrial Water Service
Rate No. 3 Water System Connection Fees
Rate No. 4 Fire Service and Fire Hydrant Charges
Rate No. 5 Lawn Sprinkling Water Service
Lansing City Enterprise Community Rebate (cancel and delete)
Electric Utility
Rate No. 1 Residential Electric Service
Rate No. 2 Residential All-Electric Service (cancel and delete)
Rate No. 3 General Electric Service
Rate No. 4 Large General Electric Service
Rate No. 5 Primary Electric Service
Rate No. 7 Municipal Water Pumping Electric Service
Rate No. 9 Outdoor Lighting Service
Rate No. 10 Process Heating Electric Service (cancel and delete)
Rate No. 11 Traffic Light Service
Rate No. 12 Space Conditioning and Electric Water Heating Service
Rate No. 21 Residential Electric Service— Senior Citizen
Rate No. 31 Street Lighting Service—Board Owner Systems
Rate No. 32 Street Lighting Service—Customer Owner Systems
Economic Development Rider
Lansing City Enterprise Community Rebate (cancel and delete)
Page 79
Board Minutes
July 25,2000
n E, b��� � (THIS SCHED ULE WAS P ULLED FOR CONSIDERATION
AT THE NEXT REG ULAR MEETING)
Steam Utility
Rate No. 1 General Steam Service
Lansing City Enterprise Community Rebate (cancel and delete)
Rate No. 4 General Chilled Water Service
----------------------
These rates were the subject of a public hearing July 11, 2000. A transcript of that
hearing is included in the board packet
materials.
the board materialsfor the hearing or schedules
read into
filed
with the city clerk were either included in
the record at the public hearing.
Motion by Commissioner Creamer, seconded by Commissioner O'Leary, that the
resolution be approved.
Discussion: Commissioner Callen expressed his concern that the BWL's competitive
rate advantage is being eroded by raising rates three years in a row when two of
Michigan's major competitors are being ordered by the state to lower rates for residential
customers as part of deregulation. He stated that he plans to vote for the rate increase,but
wanted to voice his concern about the impact of the rate changes. In light of the large
advantage the BWL is losing, Commissioner Callen asked the General Manager and
Chief Financial Officer to look into the matter very seriously throughout the next several
months to determine whether there are other possible options, rather than to raise the rates
as proposed over the next three-year period.
General Manager Pandy responded that Commissioner Callen's points are well taken.
Mr. Pandy distributed a typical bill comparison prepared by Consumers Energy for the
quarter ending June 30, 2000. The BWL currently has an advantage over Consumers
Energy in the range of 15% to 35% for residential electric service. BWL small
commercial and industrial electric service rates are below Consumers Energy by 20 to
28%. In the large commercial and industrial electric service rates, the BWL's rate
advantage is on the order of 10% to 28%. Mr. Pandy stated that the BWL is concerned
about having a rate advantage for the industrials and also protecting the rate differential
for the residential and commercial customers. He noted that the BWL has not had rate
increases since 1997, and labor costs,higher fuel costs, debt service and inflation make it
difficult to trim operating expenses of more than$180 million.
Commissioner Callen disclosed that he plans to recuse himself from voting on the
Renewable Energy Rider due to a potential conflict of interest through his involvement
by providing consulting services to renewable energy proponents in the area.
Page 80
Board Minutes
July 25,2000
Staff Attorney Wilhite noted that with only five Commissioners in attendance, there
would not be enough votes to pass the resolution, as five affirmative votes are required to
approve rate changes. He suggested separating out the Renewable Energy Rider and
voting on the remainder of the rate schedules under consideration.
Motion by Commissioner Creamer, seconded by Commissioner O'Leary:
RESOLVED, To amend the resolution by delaying action on the Renewable Energy
Rider (green power) until the next regular meeting.
RESOLVED FURTHER, That the water, electric, and steam rate schedules, as amended,
be adopted and made effective on or after January 1, 2001.
Action: Adopted by the following vote:
YEAS: Callen, Christian, Creamer, O'Leary, Royal
NAYS: None
ABSENT: Aquilina and Murray.
Note: A Board vacancy exists; appointment confirmation is pending.
#2000-7-3
SHARE THE SUCCESS
RESOLVED, That from 0 to 2.5% of fiscal year base pay be available for Corporate
Share the Success payments to eligible Non-Bargaining and Bargaining Unit employees.
RESOLVED FURTHER, That the level of BWL net income will determine the extent to
which the Corporate Share the Success incentive will be paid. Net income above the
approved budgeted level will be allocated 50-50 between BWL and the incentive pay
plan fund.
RESOLVED FURTHER, That payouts be based on BWL's performance on its fiscal year
2001 corporate measures in four areas:
1. Financial Performance
2. Customer Satisfaction
3. Internal Business Processes
4. Employee Learning and Development
--------------------
In June 2000, the Personnel Committee reviewed components of variable pay plans for
Non-Bargaining Unit employees and the proposed fiinding for those plans. Also in June
2000, the Commissioners approved implementation of variable pay plans for Non-
Bargaining Unit employees. One component of that variable pay plan is Corporate Share
Board Minutes Page 81
July 25,2000
the Success and it is also available to Bargaining Unit employees. BWL's contract with
IBEW requires the Board of Commissioners to annually determine the amount available
for Corporate Share the Success payments.
Moved by Commissioner Creamer, seconded by Commissioner Christian, that the
resolution be approved.
Action: Carried unanimously.
#2000-7-4
LEASING OF RAIL CARS
RESOLVED, That the Board of Water and Light (BWL) enter into a lease agreement
with General Electric Railcar Services Corporation(GERSC) of Chicago, Illinois, a unit
of General Electric Capital Corporation, for the supply of rail cars. The lease agreement
particulars are as follows:
1. The tern of this agreement shall be eighteen (18)months (July 1, 2000—
December 31, 2001).
2. GERSC shall provide three (3) train sets of one hundred twenty (120)
aluminum fully automatic rapid discharge coal hopper rail cars with the
assurance that they will maintain the integrity of the train sets at all times
during the term of the lease.
3. The lease rate shall be $250 per car per month(full service—inclusive of all
normal maintenance expenses).
Moved by Commissioner O'Leary, seconded by Commissioner Callen, that the
resolution be approved.
Discussion: General Manager Pandy congratulated Richard Peffley- Director of
Production, Steve Brennan- Manager of Production, and Ron Ishimoto of Coal and Rail
Services, for finding a way to reduce the cost of shipping BWL coal. They seized the
opportunity to use surplus coal cars at an attractive leasing rate that realized a cost
savings of$.83 per ton. By leasing these railcars, the BWL is saving on the cost of the
unit trains, which are 120-car trains that are hauled as one unit from the mine. The BWL
is able to haul more tonnage because the aluminum cars are lighter. Also, there will be
savings in labor productivity because of the superior rapid automatic door coal hoppers.
Total savings are estimated at$800,000 per year. Staff plans to conduct a comparative
analysis in the future on leasing versus direct purchase of railcar sets.
Action: Carried unanimously.
Page 82 Board Minutes
July 25,2000
General Manager Pandy presented the following late item for consideration:
#2000-7-5
INCREASE TO CAPITAL BUDGET
RESOLVED, That the BWL Capital Budget for Fiscal Year 2001 be increased
$3,154,000 to accommodate the following project:
Project Project Cost FY 2001
GM 20-inch steam main upgrade $3,154,000 $3,154,000
--------------------
This project will upgrade the 20-inch steam main to General Motors Plant #6 by
replacing failed or questionable bellows type expansion joints with upgraded slip joints in
manholes. This project also includes expanded trap station installations. Upgrade of this
steam main is recommended due to concerns over the integrity of the existing steam
main, which provides the only source of steam to the GM Plant#6 complex.
The timing of this project is critical and must allow the line to be placed back into service
by September 2000.
--------------------
Moved by Commissioner O'Leary, seconded by Commissioner Christian that the
resolution be approved.
Discussion: General Manager Pandy briefed the Board on the status of the 20-inch
steam main repair and financial ramifications. The work schedule, cash flow and funding
was reviewed in detail, and a written report prepared by Assistant General Manager Bill
Cook and Chief Financial Officer Dana Tousley, dated July 24, 2000, was provided to the
Commissioners summarizing actions taken to date. Mr. Pandy noted that the total cost
for the steam main repair effort is estimated to be $4,102,740 (which breaks down to
$949,600 for O&M and$3,153,140 for capital).
There was lengthy discussion relative to efforts to be taken to recover losses associated
with this failure.
Action: Carried unanimously.
NEW BUSINESS
None.
Board Minutes Page 83
July 25,2000
GENERAL MANAGER'S REMARKS
Ottawa Station Redevelopment. Reported that interest in the Ottawa Power Station
continues to heighten. He briefed on the various parties who have expressed interest.
• Received written proposal for a telecommunications facility plus two restaurants.
• Received a letter of interest from CB Richard Ellis/Martin on behalf of a Marriott
franchisee who would like to visit the site as a possible location for building a new
hotel adjacent to the Ottawa Station.
• Received a verbal proposal from a telecommunications firm interested in locating
telecom equipment there. This proposal would compete with the written proposal
as to the development of the power station. The Mayor's Office has invited BWL
staff to a meeting on this proposal set for August 4th
• Received a verbal offer from Gregg Hanner of Steiner & Associates to assist the
City in seeking HUD or Federal Transportation grant monies to fully develop the
project.
Staff Attorney Larry Wilhite is taking the lead for BWL negotiations with prospective
users. An analysis of what is determined to be the best use for the BWL, the City and the
downtown will be provided to the Commissioners in the near future. Mr. Pandy invited
input from the Commissioners relative to proposed development suggestions.
Commissioner Royal urged caution when negotiating proposals based on a short decision
time line or schedule.
Nitrogen Oxides (NO,,) Compliance Overview. General Manager Pandy handed out a
memo prepared by Nicholas Burwell, Manager of Environmental Services, dated July 20,
2000, regarding compliance with NO,, regulations that are part of the amendments to the
Clean Air Act. He noted that Michigan is in a problem situation as are other Midwest
states that have been challenged by the Northeast states as to the amount of emissions that
occur in Michigan. The Michigan Department of Environmental Quality (MDEQ) has
been fighting this at the federal level, but is not doing very well. Russ Harding, MDEQ
Director, has indicated he is not optimistic about prevailing in court and is advising
industry in the State of Michigan to prepare to meet the May 1, 2003 No, requirements.
Compliance options range from technological to administrative, Various vendors have
verbally provided varying estimates of how much it will cost the BWL to comply with
these potential No,, requirements. Compliance methodologies range from $9 million to as
high as $250 million. Staff is staying close to this issue and is exploring alternative
solutions.
Great Lakes Renewable Energy Fair. The Great Lakes Renewable Energy Association
is holding its sixth annual Renewable Energy Fair in Lansing on August 4-6, 2000, at the
Page 84 Board Minutes
July 25,2000
Riverfront Park and Lansing Community College, The BWL is one of the sponsors of this
event. Commissioners were urged to attend. A brochure was handed out.
REMARKS BY COMMISSIONERS
Commissioner Creamer asked for more information on the Lansing Home Ownership
Program and the LISC home improvement program for employees who locate in the City
of Lansing. He asked for an overview of program guidelines and its utilization by BWL
employees.
EXECUTIVE SESSION
Moved by Commissioner O'Leary, seconded by Commissioner Royal, that the Board
convene in Executive Session to consult with the Staff Attorney regarding a possible
settlement of specific pending litigation (6:35 p,m.).
Adopted by the following vote:
YEAS: Callen, Christian, Creamer, O'Leary, Royal
NAYS: None
ABSENT: Aquilina and Murray.
Note: A Board vacancy exists; appointment confirmation is pending.
The Board returned to open session at 6:55 p.m.
Motion by Commissioner Christian, seconded by Commissioner O'Leary, to approve the
following resolution:
#2000-7-6
SETTLEMENT OF EMPLOYMENT CLAIM
WHEREAS, the Board of Commissioners is authorized to approve settlement of
employment claims; and
WHEREAS, the Staff Attorney, with the concurrence of the Director of Human
Resources, has recommended that the Board of Water and Light settle the employment
claim against it as filed in the Ingham County Circuit Court and docketed as No. 99-
91064-NZ; and
WHEREAS, the Board of Commissioners has been advised as to the merits of the Board's
legal defenses and the costs associated with defense of this matter through trial.
RESOLVED, That the Board of Commissioners authorizes settlement of the above
captioned employment claim in the amount as recommended by the Staff Attorney in a
Board Minutes Page 85
July 25,2000
confidential letter of July 19, 2000, and that such amount shall be paid in consideration of
the release of all claims and resignation from employment by the plaintiff.
RESOLVED FURTHER, That the General Manager is authorized to execute all
documents related to the settlement of this claim.
Action: Carried unanimously.
EXCUSED ABSENCES
On motion by Commissioner Christian, seconded by Commissioner Callen, that the
absences of Commissioners Aquilina and Murray be excused.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
No persons spoke.
ADJOURNMENT
On motion by Commissioner Callen, seconded by Commissioner Christian, the meeting
adjourned by unanimous consent at 6:57 p.m.
Is/Mary E. Sova, Secretary
Filed July 27, 2000
Marilynn Slade, City Clerk
WATER UTILITY RATES
Board of Water and Light, Lansmg, Michigan
RESIDENTIAL WATER SERVICE
RATE NO. 1
Availability-This rate is available to any single-family residence or multifamily dwelling of 4 units or less served
by one meter.
Monthly Rate-Shall be computed in accordance with the following charges.
Basis Service Charge:per customer per month or part thereof:
Meter 1/1/01 1/1/02 1/1/03
5/8" $5.55 $5.90 $6.20
3/4" * $7.77 $8.26 $8.68
1" $14.43 $15.34 $16.12
1'/4" or 1'/2" $32.19 $34.22 $35.96
2" $56.61 $60.18 $63.24
Commodity Charge:per ccf of water used per month;
$1.34 $1.41 $1.48
* The BWL standard residential installation is a 1"service line with a'/4"meter. The BWL reserves the right,in its
sole judgment,to install 5/8"meters on any new service installation when circumstances warrant.
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¢ 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.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,franchise fees,or any other charges against the 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 Basic Service Charge applied for 30 days.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers taming 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: July 25,2000 Effective: January 1,2001
Board of Water and Light, L-.ising, Michigan
GENERAL WATER SERVICE
RATE NO.2
Availability-This rate is available to any customer served on the BWL's water system. Service under this rate is
not available for resale.
Monthly Rate-Shall be computed in accordance with the following charges.
Basic Service Charge:per customer per month or part thereof;
Meter 1/1/01 1/1/02 1/1/03
5/8" $5.55 $5.90 $6.20
3/4" * $7.77 $8.26 $8.68
1" $14.43 $15.34 $16.12
1'/4"or 1%" $32.19 $34.22 $35.96
2" $56.61 $60.18 $63.24
3" $127.65 $135.70 $142.60
4" $227.55 $241.90 $254.20
6" $511.71 $543.98 $571.64
8" $909.09 $966.42 $1,015.56
10" $1,420.80 $1,510.40 $1,587.20
Commodity Charge:per ccf of water used per month;
$1.34 $1.41 $1.48
*The BWL standard residential installation is a 1"service line with a 3/4"meter. The BWL reserves the right, in its
sole judgment,to install 518"meters on any new service installation when circumstances warrant.
Power and Chemical Cost Adjustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.1¢increase or decrease in the average cost of power and chemicals
required to deliver treated water to the customer's meter above or below 17.5¢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.
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 Basic Service Charge applied for 30 days.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the 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: July 25,2000 Effecrive: January 1,2001
Board of Water and Light, Lansrng, Michigan
WATER SYSTEM CONNECTION FEES
RATE NO.3
System Connection Fees-The following schedule of fees shall apply to all new water service connections made to
the mains. This fee shall not apply to active services which are being replaced.
Service Size Connection to
Main 1/1/01 1/1/02 1/1/03
1" or smaller $2,272 $2,405 $2,535
1%a" or 1'/2" $5,068 $5,365 $5,655
2" $8,913 $9,435 $9,945
3" $20,097 $21,275 $22,425
4" $35,825 $37,925 $39,975
6" $80,562 $85,285 $89,895
8"and over $143,124 $151,515 $159,705
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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: July 25, 2000 Effective: January 1,2001
Board of Water and Light, Lansing, Michigan
FIRE SERVICE
RATE NO.4
Fire Service - A fire service line will be installed to a fine hydrant(s)or a customer's detector check valve in
accordance with the schedule of charges for water system connection fees(Rate 3) and the current water service
installation charges set forth in the Rules and Regulations for Water Service. The location of the detector check
valve shall be determined by the Water Distribution Engineering Department.
Fire service lines shall be used for fire protection purposes only. No additional charges will be made for water used
for testing and fire purposes. The customer shall maintain the detector check valve and fire protection system
connected thereto in good condition in compliance with Section 34-9,Repair and Protection of Equipment, of the
Code of the City of Lansing,Michigan.
Monthly Fire Service Charge-Water supply and maintenance of a fire service line to a detector check valve shall
be provided in accordance with the following schedule of charges:
Service Size 1/1/01 1/1/02 1/1/03
4"or smaller $40 $42 $45
6" $90 $95 $100
8" $160 $170 $178
10" or larger $250 $265 $278
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 Char e-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: July 25,2000 Effective: January 1,2001
Board of Water and Light, Lansing, Michigan
LAWN SPRINKLING WATER SERVICE
RATE NO.5
Availability-This rate is available to any customer seined on the BWL's water system where the meter or service is
installed solely for lawn sprinkling. Municipalities having jurisdiction over sewer system rates may designate other
uses of water which are subject to this rate.
Monthlv Rate-Shall be computed in accordance with the following charges.
Basic Service Charge:Billings subject to this rate are not subject to a Basic Service Charge.
Commodity Charge: per ccf of water used per month
1/1/01 1/1/02 1/1/03
all ccf $1.34 $1.41 $1.48
Power and Chemical Cost Adjustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.1¢ increase or decrease in the average cost of power and chemicals
required to deliver treated water to the customer's meter above or below 17.5¢ 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.
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-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5% of the unpaid balance, excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers taming 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: July 25,2000 Effective: January 1, 2001
Board of Water and Light, ,.LLnsing, Michigan
FIRE HYDRANT CHARGES
RATE NO. 6
Annual Fire Hydrant Charge- Water Supply and maintenance of a fire service line to a public or private fire
hydrant shall be provided in accordance with the following annual schedule of charges:
1/1/01 1/1/02 1/1/03
All Hydrants $305 $320 $336
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-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: July 25, 2000 Effective: January 1,2001
ELECTRIC UTILITY RATES
Board of Water and Light,Lansing,L_,chigan
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 unit 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-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate - Shall be computed in accordance with the following charges:
1/1/01 1/1/02 1/1/03
Basic Service Charge $3.50 $4.00 $4.25 per customer per month
Commodity Charge Suminer Billing Months of June through October
$.0580 $.0600 $.06300 per kWh for the first 500 kWh
$.0620 $.0641 $.0673 per kWh for all over 500 kWh
Winter Billing Months of November through May
$.0580 $.0600 $.06300 per kWh for the first 500 kWh
$.0603 $.0624 $.0656 per kWh for all over 500 kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Enemy Cost Adiustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Delayed Pavment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7,00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Auxiliary Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or
solar powered generating equipment may take service under this rate schedule under special agreement with the BWL.
The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all
reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's
generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of
$.022/kWh delivered. Customers selling energy to the BWL shall pay a charge of$6.40 per month or part thereof instead
of the above Basic Service Charge.
Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:July 25,2000 Effective: January 1,2001
Board of Water and Light,Lansinb,Michigan
GENERAL ELECTRIC SERVICE
RATE NO.3
Availability-This rate is available to any customer desiring secondary voltage service for any purpose when supplied at
one point of delivery through one meter. The limitation to secondary-voltage service may be waived in instances where
the character of the electric load at the premises served has changed substantially. This rate is not available for emergency
or standby service.
Nature of Service-The service is alternating current, 60 hertz,single phase or three phase. The secondary voltage is
determined by the Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges.
1/1/O1 1/1/02 1/1/03
Basic Service Charge $10 $12 $15 per customer per month
Commodity Charge Summer Billing Months of June through October
$.069 $.0710 $.0740 per kWh
Winter Billing Months of November through May
$.0664 $.0683 $.0712 per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes, license fees,franchise fees,or any other charges against the BWL property, or its operation,or the production
and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Metering=-Where the BWL elects to measure the service on the primary side of the transformers,the metered kWh thus
measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives
service through more than one meter,the consumption as registered by the different meters will not be combined for
billing purposes,but will be computed and billed separately.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Auxiliary Power Provision-Customers desiring electric service as an auxiliary source of power to wind or solar
powered generating equipment may take service under this rate schedule under special agreement with the BWL. The
customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable
costs associated with any alteration of BWL equipment required for proper operation of the customer's generating
equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh
delivered. Customers selling energy to the BWL shall pay a charge of$12.46$25.00 per month or part thereof instead of
the above Basic Service Charge.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:July 25,2000 Effective:January 1,2001
Board of Water and Light,Lansing, viichigan
LARGE GENERAL ELECTRIC SERVICE
RATE NO.4
Availability-This rate is available to any customer desiring secondary voltage for any purpose when the electrical
requirements are supplied at one point of delivery through one metering installation and the billing demand is 15 kW or
more. The limitation to secondary-voltage service may be waived in instances where the character of the electric load at
the premises served has changed substantially. This rate is not available for standby or emergency services.
Nature of Service-The service is alternating current,60 hertz,single phase or three phase. The secondary voltage is
determined by the Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges.
1/1/01 1/1/02 1/1/03
Basic Service Charge $30 $30 $32 per customer per month
Capacity Charge $8.60 $8.60 $8.75 Per kW for all kW of Maximum Demand
Commodity Charge Summer Billing Months of June through October
$.0361 $.0383 $.0394 per kWh
Winter Billing Months of November through May
$.0330 $.0350 $.0360 per kWh
Reactive Power Charge $0.008 per kvarh in excess of 50%of total kWh.
The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour(kvarh)metering installed in
accordance with BWL Rules and Regulations regarding power factor.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the BWL 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.
Billing Demand-The billing demand shall be the kW supplied during the 15-minute period of maximum use during the
month.
Metering-Where the BWL elects to measure the service on the primary side of the transformer,the metered kW and
kWh quantities thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one metering installation,the consumption as registered by the different
metering installations will not be combined for billing purposes,but will be computed and billed separately.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:July 25,2000 Effective:January 1,2001
Board of Water and Light,Lansint,,Michigan
PRIMARY ELECTRIC SERVICE
RATE NO. 5
Availability-This rate is available to any customer desiring primary voltage service when the electrical requirements are
supplied at one point of delivery through one metering installation (except as provided below for Multiple Delivery Point
Aggregation)and the billing demand is 100 kW or more. This rate is not available for standby or emergency service.
Nature of Service-The service is alternating current, 60 hertz,three phase. The primary voltage is determined by the
Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges:
1/1/O1 1/1/02 1/1/03
Basic Service Charge $75.00 $75.00 $80.00
Capacity Charge $7.00 per customer per month
$7.00 $7.10 Per kW for all kW of On-Peak Billing Demand,plus
$2.30 $2.30 $2.35 Per kW for all kW of Maximum Demand
Commodity Charge Summer Billing Months of June through October
$0.0315 $0.0336 $0.0347 Per kWh for all kWh during the On-Peak Period,plus
$0.0277 $0.0286 $0.0313 Per kWh for all kWh during the Off-Peak Period,plus
Winter Billing Months of November through May
$0,0300 $0.0320 $0.0330 per kWh for all kWh during the On-Peak Period,plus
$0.0277 $0.0286 $0.0313 per kWh for all kWh during the Off-Peak Period
Reactive Power Charge $0.008 per kvarh in excess of 50%of total kWh
The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour(kvarh)metering installed in
accordance with B WL Rules and Regulations regarding power factor.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees, franchise fees,or any other charges against the Board's property, or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Bfflin2 Demand
On-Peak Billing Demand: The On-Peale Billing Demand shall be the kW supplied during the 15-minute period
of maximum use during the On-Peale Period during the month.
Maximum Demand: The Maximum Demand shall be the kW supplied during the 15-minute period of
maximum use during the month whether on-peak or off-peak.
Schedule of on eak and off- eak eriods-The On-Peak Period shall be from 10:00 a.m, until 6:00 p.m.,Monday
through Friday. All other hours shall comprise the Off-Peale Period.
Adopted: July 25,2000
Effective:January 1,2001
Board of Water and Light,Lansing, Lviichigan
PRIMARY ELECTRIC SERVICE
RATE NO.5
Multiple Delivery Point Aggregation-The 15-minute period demands of multiple delivery points of a customer may be
summed for determination of the total On-Peal(Billing Demand under the following conditions: (a)the Maximum
Demand at each delivery point must equal or exceed 100 kW;(b)the total On-Peal(Billing Demand shall not be less than
4,000 kW; and(c)the customer shall agree to a service contract with the BWL for the customer's full electrical service
requirements at the aggregated delivery points for a period of not less than five(5)years. Aggregation shall be applicable
for determination of the On-Peak Billing Demand only. All other charges,including the Basic Service Charge and
Maximum Demand, shall apply to each delivery point independently.
Metering-When the BWL elects to measure the service on the secondary side of the transformers,the metered kW and
kWh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one meter installation, consumption as registered by the different meter
installations will not be combined for billing purposes,but will be billed and computed separately except as provided for
in Multiple Delivery Point Aggregation.
Equipment Supplied by Customer-The customer shall be responsible for fumishing,installing and maintaining all
necessary transforming,controlling and protective equipment required for service beyond the BWL primary-voltage
delivery point. At the sole option of the BWL,a customer may lease such transformers or other equipment from the BWL
under terms established by the BWL.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted: July 25,2000 Effective:January 1,2001
Board of Water and Light,Lansink,Michigan
MUNICIPAL WATER PUMPING ELECTRIC SERVICE
RATE NO. 7
Avai�labilih -This rate is available to any political subdivision or agency of the State of Michigan desiring service for
potable water pumping and associated potable water production equipment when the entire electrical requirements are
supplied at one point of delivery through one meter. This rate is not available for emergency,standby,or auxiliary
service.
Nature of Service-The service is alternating current,60 hertz,three phase. The secondary or primary voltage is
determined by the BWL.
Monthly Rate-Shall be computed in accordance with the following charges.
]/1/Ol 1/1/02 1/1/03
Basic Service Charge $10.00 $10.00 $10.00 Per customer per month
Commodity Charge $.0520 $.0540 $.0560 Per kWh
Minimum BHI-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adiustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Metering-Where the BWL elects to measure the service on the primary side of the transformers serving the customer,
the metered kWh thus measured will be reduced 3%for billing purposes to adjust for transformer losses.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:July 25,2000
Effective: January 1,2001
Board of Water and Light,Lansing,.,Lichigan
LARGE CAPACITY ELECTRIC SERVICE
RATE NO.8
Availability-This rate is available to any customer desiring primary voltage service when:(a)the electrical requirements
are supplied at one or more points of delivery as provided below for Multiple Delivery Point Aggregation; (b)where the
total On-Peak Billing Demand is 25,000 kW or more;and(c)the customer agrees to a service contract with the BWL for
the customer's full electrical service requirements at the applicable delivery points for a period of not less than ten(10)
years. This rate is not available for standby or emergency service.
Nature of Service-The service is alternating current,60 hertz,three phase. The primary voltage is determined by the
Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges:
Basic Service Charge $250.00 per delivery point per month
Capacity Charge $8.00 per kW for all kW of On-Peak Billing Demand,plus
$1.50 per kW for all kW of Maximum Demand
Commodity Charge Summer Billing Months of June through October
$0.0300 per kWh for all kWh during the On-Peak Period,plus
$0.0260 per kWh for all kWh during the Off-Peak Period,plus
Winter Billing Months of November through May
$0,0288 per kWh for all kWh during the On-Peale Period,plus
$0.0260 per kWh for all kWh during the Off-Peak Period
Reactive Power Charge $0.008 Per k varh in excess of 50%of total kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
EnerjZy 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 incorporated herein by this reference.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes, license fees,franchise fees, or any other charges against the Board's property,or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Billing Demand
On-Peak Billing Demand: The On-Peale Billing Demand shall be the total kW supplied to all applicable
delivery points during the 15-minute period of maximum use during the On-Peak Period during the month. (See
Multiple Delivery Point Aggregation.)
Maximum Demand: The Maximum Demand for each delivery point shall be the kW supplied during the 15-
minute period of maximum use during the month whether on-peak or off-peak.
Adopted: 7/29/97 Effective:9/1/97
Board of Water and Light, Lansinr,,Michigan
LARGE CAPACITY ELECTRIC SERVICE
RATE NO.8
Schedule of on-peak and off-peak Periods-The On-Peale Period shall be from 10:00 a.m, until 6:00 p.m.,Monday
through Friday. All other hours shall comprise the Off-Peale Period.
Multiple Delivery Point Ag regation-The 15-minute period demands of multiple delivery points of a customer shall be
summed for determination of the total On-Peak Billing Demand under the following conditions: (a)the Maximum
Demand determined at each delivery point must equal or exceed 1,000 kW; and(b)the total On-Peale Billing Demand
shall not be less than 25,000 kW. Aggregation shall be applicable for determination of the On-Peale Billing Demand only.
All other charges,including the Basic Service Charge and Maximum Demand, shall apply to each delivery point
independently.
Meterin -When the BWL elects to measure the service on the secondary side of the transformers,the metered kW and
kWh quantities thus measured will be increased by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one meter installation,consumption as registered by the different meter
installations will not be combined for billing purposes, but will be billed and computed separately except as provided for
Multiple Delivery Point Aggregation.
Equipment Supplied by Customer-The customer shall be responsible for furnishing,installing and maintaining all
necessary transforming, controlling and protective equipment required for service beyond the BWL primary-voltage
delivery point. At the sole option of the BWL,a customer may lease such transformers or other equipment from the BWL
under terms established by the BWL.
Delayed Payment Charge-A delayed payment charge of 5% of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:7/29/97
Effective: 9/1/97
Board of Water and Light,Lansing,.riichigan
OUTDOOR LIGHTING SERVICE
RATE NO. 9
Availability-This rate is available to any customer located within the Board of Water and Light(BWL) service
area for dusk to dawn lighting of customer's premises. The BWL furnishes and maintains all lights. The
installation will overhang private property from existing or new poles set at points accessible to BWL constriction
and maintenance equipment. This rate is not available for purposes of street,highway, or public thoroughfare
lighting.
Monthly Rate-Shall be computed in accordance with the following charges.
Luminaires on Overhead Mast Arm on existing BWL poles
High Pressure Sodium 1/1/01 1/1/02 1/1/03
100 W $8.39 $8.78 $9.04
250 W $14.15 $14.80 $15.24
400 W $15.13 $15.83 $16.30
Mercury Vapor'
175 W $8.80 $9.21 $9.48
400 W $15.13 $15.83 $16.30
Floodlighting Luminaires on Bracket Arm on existing BWL poles
High Pressure Sodium
100 W $11.99 $12.54 $12.91
250 W $15.03 $15.72 $16.18
400 W $17.60 $18.41 $18.95
Metal Halide
400 W $21.87 $22.88 $23.55
1000 W $37.82 $39.57 $40.73
1500 W $52.49 $54.92 $56.53
In the event additional facilities or rearrangement of existing facilities is required, the BWL shall install, operate and
maintain such facilities for the following monthly charges.
Type of Facilities
1/1/01 1/1/02 1/1/03
35-foot wood poles including span of overhead $6.14 $8.98 $11.62 Per pole
secondary extension
37-foot concrete pole including span of overhead $14.60 $16.52 $17.01 Per pole
secondary extension
Other facilities,hand set poles,or rearrangement 1.67%of est. cost
of existing facilities
Adopted: July 25, 2000 Effective: January 1, 2001
Board of Water and Light,Lansii,,,Michigan
OUTDOOR LIGHTING SERVICE
RATE NO.9
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes, license fees,franchise fees, or any other charges against the Board's property, or its operation, or
the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Service Contract-A written service agreement shall be entered into to take BWL service for a term of years
determined as follows:
(a) One year, if additional facilities are not required, or
(b) Three years,if additional facilities are required
(c) Five years,for metal halide lamps or if monthly charges calculated at 1,67%of estimated cost,
(d) Ten years,if special contractual arrangements are made.
In the event the customer discontinues service before the end of the agreement term, the established rate for the
remaining portion of the agreement shall immediately become due and payable. The BWL will replace lamps or
make repairs when practicable after the customer has reported that the installation requires servicing. Such
replacements and repairs will be made during regular working hours. The BWL may refuse or restrict the service
provided in this rate to seasonal type customers and/or may require such customers to pay for the service annually in
advance where the pernianency of the customer is doubtfiil or has not been demonstrated by the customer. If
relocation, including adjustment, of the outdoor protective light or relocation of other facilities used in connection
with the light is desired by the customer during the term of the contract, the BWL will provide this service,if
feasible, at the customer's expense.
Adopted: July 25, 2000 Effective: January 1, 2001
Board of Water and Light,Lansing,_._,chigan
TRAFFIC LIGHT SERVICE
RATE NO. 11
Availability-This rate is available to any political subdivision or agency of the State of Michigan desiring unmetered
secondary service for operating traffic lights installed on streets or highways for traffic control and guidance.
Nature of Service-The service is alternating current, 60 hertz,single phase, 120/240 nominal volts
Monthly Rate- Shall be computed in accordance with the following charges.
1/1/01 1/1/02 1/1/03
Basic Service Charge $1.65 $1.80 $2.00 Per customer per month
Commodity Charge $.0276 $.0293 $.0310 Per watt of active load per month
The actual labor,material,miscellaneous and indirect charges experienced maintaining and relamping traffic signals
during the preceding month.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Determination of Active Load-The active load of flasher lamps or cyclically operated traffic control lamps shall be 50%
of total wattage of all lamps used during one complete cycle of operation. The active load of continuous,non-intermittent
steady burning lamps shall be 100%of the total wattage of all lamps used.
Delayed Payment Charge-A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges,
shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted: July 25, 2000 Effective:January 1,2001
Board of Water and Light, Lansit,s,Michigan
SPACE CONDITIONING AND
ELECTRIC WATER HEATING SERVICE
RATE NO. 12
Availability-This rate is available to any customer desiring service for commercial/industrial space conditioning and/or
electric water heating furnished through a separate meter to which no other electrical device except electric space heating,
electric air conditioning,humidity control equipment or electric water heating equipment may be connected. Electric
space heating will be considered to include heating by light system provided the primary means of space heating at the
time of maximum heating requirements will be furnished by the lighting system with the balance of the heating
requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for
heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air
conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal
source of space heating,or to the use of electricity for occasional or seasonal substitute for another method of water
heating.
Nature of Service-The service is alternating current,60 hertz, single phase at Board of Water and Light(BWL)available
secondary voltage. Three phase service will be furnished at BWL option.
Monthly Rate-Shall be computed in accordance with the following charges.
1/1/01 1/1/02 1/1/03
Basic Service Charge $20.00 $20.00 $20.00
Commodity Charge Summer Billing Months of June through October
$.0797 $.0822 $.0848 per kWh
Winter Billing Months of November through May
$.0495 $.0511 $.0526 per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Eneru 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 incorporated herein by this reference.
Tax Adiustment-Bill shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the BWL property,or its operation, or the production
and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:July 25, 2000 Effective: January 1,2001
Board of Water and Light,Lansing,.—ichigan
RESIDENTIAL ELECTRIC SERVICE,
SENIOR CITIZEN
RATE NO.21
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 the same meter. The customer must be 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 unit when a portion
of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that
service for residential and non-residential 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-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate--Shall be computed in accordance with the following charges.
1/1/01 1/1/02 1/1/03
Basic Service Charge $3,50 $4.00 $4.25
Commodity Charge $.0405 $,0429 $.0455 per kWh for the first 300 kWh
$.0683 $.0724 $,0768 per kWh for the next 200 kWh
$.0917 $,0971 $.1030 per kWh for all over 500 kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted: July 25,2000 Effective:January 1,2001
Board of Water and Light,Lansing,Michigan
STREET LIGHTING SERVICE
BOARD OWNED SYSTEMS
RATE NO.31
Availability-Available to any political subdivision or agency of the State of Michigan for street lighting service
for any system consisting of one or more luminaires where the BWL has an existing distribution system with
secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires.
Where an overhead line extension is required to serve one or more luminaires,the BWL will famish 350 linear feet
of line extension per luminaire served from such extension. A special agreement will be required if more than 350
linear feet of line extension per lunrinaire is required.
Nature of Service-The BWL will furnish,install, own, operate, and maintain all equipment comprising the street
lighting system, and supply the unmetered energy. The BWL reserves the right to famish service from either a
series or multiple system or both.
Annual Rate- Me annual rate per lununaire with fixture and setting,payable in twelve(12)monthly installments,
shall be as follows;
High Pressure Sodium Luminair 1/1/01 1/1/02 1/1/03
70 W $64 $66 $68
100 W $73 $75 $77
150 W $83 $86 $89
250 W $103 $106 $109
400 W $131 $135 $139
1000 W $266 $275 $284
Mercury Vapor Luminaire'
100 W $69 $71 $73
175 W $81 $84 $87
250 W $96 $99 $102
400 W $123 $127 $131
1000 W $233 $241 $249
Metal Halide Luminaire
175 W $142 $147 $152
250 W $163 $168 $173
400 W $165 $170 $175
1000 W $320 $330 $340
1500 W $489 $505 $521
Induction Luminaire
85 W $69 $71 $73
165 W $82 $85 $88
Adopted:July 25,2000 Effective: January 1,2001
'Rates apply to existing luminaires onlv and are not oven to new husine.cs exrenr where the RWT elprtc nt flip—cf—r
Board of Water and Light,Lansing,michigan
STREET LIGHTING SERVICE
BOARD OWNED SYSTEMS
RATE NO.31
Annual Rate(continued)
plus an additional annual charge, depending on type of installation, of:
1/1/01 1/1/02 1/1/03
Wood Pole—Overhead Service None None None
Wood Pole—Underground Service $75 $77 $79
Concrete Pole—Overhead Service $116 $120 $124
Concrete Pole—Underground Service $116 $120 $124
Post Top $75 $77 $79
Historic—Single Top $241 $249 $257
Large Historic—Dual Top $706 $729 $752
Small Historic—Dual Top $503 $519 $535
Wall/Tunnel—8760 hours $103 $106 $109
Wall/Tunnel—4200 hours $62 $64 S66
Bollard $239 $247 $255
Customer Contribution -The annual rates are based on fixtures normally stocked by the BWL, and installed
utilizing normal construction techniques. The BWL may, at its option,upon customer request install a street
lighting system not covered by the rates below. The customer, after installation, will be required to make a one time
contribution equal to the difference between the actual installed cost and the BWL estimated installed cost of a
standard installation. The annual unit charge for each luminaire will then be as stated below.
Unit Replacement-The BWL may, at its option,upon customer request replace existing street light units. After
installation,the customer shall make a one time contribution equal to the undepreciated value of the unit plus the
cost of removal.
Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to
termination charges, contributions in aid of construction, term or other special considerations when the customer
requests service, equipment or facilities not normally provided under this rate.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes, license fees,franchise fees,or any other charges against the BWL property, or its operation, or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted: July 25,2000 Effective: January 1, 2001
Board of Water and Light,Lansing,ivlichigan
STREET LIGHTING SERVICE
CUSTOMER OWNED SYSTEMS
RATE NO.32
Availability-Available to any political subdivision or agency of the State of Michigan for street lighting service
for any system consisting of one or more luminaires where the BWL has an existing distribution system available.
Nature of Service-The BWL will connect the customer's equipment to BWL lines,furnish the control equipment,
supply the unmetered energy, control the burning hours of the lamps,provide normal replacement of luminaire
refractors,control devices and lamps. The customer will furnish,install and own all equipment comprising the
street lighting system,including,but not limited to the overhead wires or underground cables between luminaires
and the supply circuits extending to the point of attachment with the BWL . All maintenance and replacement of the
customer's equipment except normal lamp and glass replacement shall be paid by the customer. The BWL reserves
the right to furnish service from either a series or multiple system or both.
Annual Rate-The annual rate per luminaire,payable in twelve(12) monthly installments,shall be as follows:
High Pressure Sodium Luminaire 1/1/01 1/1/02 1/1/03
70 W $33 $34 $35
100 W $43 $44 $45
150 W $52 $54 $56
250 W $72 $74 $76
400 W $101 $104 $107
1000 W $237 $245 $253
Mercury Vapor Luminaire'
175 W $48 $50 $52
250 W $65 $67 $69
400 W $91 $94 $97
1000 W $202 $209 $216
Incandescent Luminaire2
2500 L $68 $70 $72
4000 L $108 $111 $114
6000 L $130 $134 $138
Maintenance Charge-The actual labor,material,miscellaneous and indirect charges experienced maintaining street
light units during the preceding month.
Combined Rates -The annual rate for units consisting of more than one luminaire shall be the appropriate
combination of individual unit charges above.
Adopted: July 25,2000 Effective:January 1, 2001
'Rates apply to existing luminaires only and are not open to new business except where the BWL elects, at the customer's
request,to install additional luminaires within an area already served by a mercury vapor liahtinQ system.
Board of Water and Light,Lansing,iviichigan
STREET LIGHTING SERVICE
CUSTOMER OWNED SYSTEMS
RATE NO.32
Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to
termination charges, contributions in aid of construction,term or other special considerations when the customer
requests service, equipment or facilities not normally provided under this rate.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes, license fees,franchise fees, or any other charges against the BWL property, or its operation, or
the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted: July 25, 2000 Effective:January 1,2001
Board of Water and Light,Lansing,lvlichigan
ECONOMIC DEVELOPMENT RIDER
Purpose-The primary purpose of this rider is to enhance economic development in the Board of Water and Light
(BWL)service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a
major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the
BWL and its customers.
Availability-This rider is available to industrial customers on Large General Electric Service Rate No. 4 or Primary
Electric Service Rate No. 5 or Large Capacity Electric Service Rate No. 8. For purposes of this rider, an industrial
customer is defined as any business that manufactures a product for sale or research and development. This would
include usage for facilities directly associated with and on the same premises as the manufacturing business such as
offices and warehouses. A customer desiring service under this rider must contract for such service on or before
December 31, 2003. 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-A new customer is a new industrial customer taking service on or after January 1, 1991,
where the new load results in 100 kW or more of billing demand.
Existing Customer-An existing customer is an existing industrial customer who contracts for a bona fide
increase in connected load resulting in an increase of 100 kW, or 10% of their historical billing demand,
whichever is greater, or more of billing demand on or after January 1, 1991.
Monthly Rate
Capacity Charge: A percentage of the capacity charge included in the principal service rate, less credits, as follows:
Contract
Year %
1 50%
2 60%
3 70%
4 80%
5 90%
Contracted Historical Billing Demand-An existing customer's contracted historical billing demand will be the
average of the three highest registered demands, including metering adjustments, during the twelve (12) month period
prior to the contract or as established by mutual consent. The contracted historical billing demand shall be subject to
the 60%provision during the contract period. The BWL reserves the right to establish a contracted historical billing
demand for all customers with duplicate or replacement operations within the BWL service area.
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 or 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 customer's 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: July 25, 2000 Effective: January 1, 2001
Board of Water and Light,Lansing, ,yiichigan
ENERGY COST ADJUSTMENT
The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying
electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment.
In applying the Energy Cost Adjustment the applicable rate per kWh shall be increased or decreased by the amount
of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating
the monthly Energy Cost Adjustment.
Definitions
Energy Cost Adjustment-the amount per kWh by which the applicable rates shall be adjusted for billing in each
month.
Energy Costs-those costs incurred in supplying retail electricity. Such costs include fuel burned, energy costs
associated with firm power purchases,net interchange power costs,and costs associated with other temporary power
transactions. The cost of fuel burned shall include the delivered cost of fuel(base cost, escalations,
premiums/penalties,transportation, demurrage), outside lab fees and other outside costs related to fuel procurement,
and fuel additives such as freeze proofing.
Over/Under Recovery-the difference between actual Energy Costs for prior months and the amount of energy
cost recovered by means of the Base Cost of Energy and the Energy Cost Adjustment. The Over/Under Recovery
shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month.
Base Cost of Energy-the average Energy Cost included in the energy rates of the various rate schedules. Such
amount shall not be recovered by means of the Energy Cost Adjustment. The current Base Cost of Energy is
$0.017921 per kWh sold,
Procedures
Estimated Energy Cost shall be projected for a twelve-month period, Any amount of Over/Under Recovery
(positive or negative) shall be added to the Energy Cost to determine the total cost basis for the Energy Cost
Adjustment. The total cost basis shall be divided by the projected total retail billed sales for the twelve-month
period resulting in the average energy cost per kWh. The Base Cost of Energy shall be subtracted from the average
energy cost to result in the Energy Cost Adjustment.
The Energy Cost Adjustment shall be reviewed and, as necessary,revised periodically in accordance with the
provisions of this schedule,but not less frequently than every twelve months.
Effective February 2, 1999, through February 2,2003,the Energy Cost Adjustment is frozen at$0,001000 per kWh.
Thus,the total cost of fuel and purchased power charged to customers is set at$0,018921 per kWh(Base 0.017921
+ECA 0.001000).
Adopted: 1/26/99 Effective: 2/l/99
Board of Water and Light,Lansing,Michigan
SCHEDULED CURTAILMENT/INTERRUPTIBLE SERVICE RIDER
Availability-This rider is available to customers on Priinary Electric Service Rate No. 5 or Large Capacity Electric
Service Rate No. 8 and any applicable future primary or transmission service rate approved by the commissioners.
A customer desiring service under this rider must contract to curtail or interrupt its demand by 1,000 kW or more,
upon notice by the Board of Water and Light(BWL). The amount of curtailable or interruptible demand subject to
this rider may be limited by the Commissioners in total and by customer.
Conditions of Curtailment/Interruption-The Commissioners may determine the total kW demand subject to this
rider. The General Manager has authorization to negotiate with qualifying customers as to the following teens and
conditions of this rider; [1]the customer kW demand subject to interruption or curtailment, [2]metering
requirements, [3]the duration of any intenuption or curtailment, [4] the notice period, and, [5]buy through
provisions(if any).
The contract with the customer will contain the conditions under which the BWL will require curtailment or
interruption. Any reduced rate available will include some contribution to fixed costs and depend upon the
customer's individual circumstances.
The customer agrees to pay$50 per kW for the highest 15-minute kW demand created during the curtailed or
interrupted period plus replacement energy out of pocket cost plus 10%should the customer choose not to curtail or
interrupt electric load.
Definitions
Curtailed load-The customer agrees to reduce electric load upon notice from the BWL.
Intemipted load-The customer agrees to receive no electricity upon notice from the BWL.
Adopted:December 14, 1999 Effective:January 1,2000
STEAM UTILITY RATES
Board of Water and Light, Lansing, Michigan
GENERAL STEAM SERVICE
RATE NO. 1
Availability-This rate is available to any customer receiving service from the Board of Water and Light(BWL)steam
distribution 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 be 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.
Monthly Rate
1/1/01 1/1/02 1/1/03
Basic Service Charge $5.00 $6.00 $7.00 per customer per month
Commodity Charge Billing Months of June through November
$6.55 $6.75 $6.95 per 1000 lbs. for the first 200,000 lbs.
$6.90 $7.15 $7.35 per 1000 lbs, for all 1000 lbs. over 200,000 lbs.
Billing Months of December through May
$6.65 $6.85 $7.05 per 1000 lbs for the first 200,000 lbs.
$7.00 $7.25 $7.45 per 1000 lbs. for all 1000 lbs. over 200.000 lbs.
Surcharize-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(30.0016) 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 buried 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 full 0.1 ($0.001)cent; a fraction of 0.06($0.0006) cents or greater will be considered
a full 0.1 ($0.001)cent.) The price per million Btu 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 (lbs)billed. The factor shall
consist of 1.124 times the weighted average amine cost per 1000 lbs 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 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.
Minimum Charge-The Basic Service 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.
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.
Reconnect Charge-A reconnect charge of$25.00 shall be added to any account which discontinues and reconnects
service at the same address within a twelve(12)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: July 25, 2000 Effective: January 1,2001
Board of Water and Light, Lansing, Michigan
INDUSTRIAL STEAM SERVICE
RATE NO.2
Availability: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: $0.80 per pound per hour(lb/hi)for all lb/hrs of contract
demand.
$0.70 per pound per hour(lb/hr) for all lb/hrs exceeding
contract demand
Commodity Charge: $3.88 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 full 0.1 ($0,001) cent; a fraction of 0.06($0.0006)cents or
greater will be considered a full 0.1 ($0.001)cent.] The price per million Btu for each billing month shall be the
average delivered cost of fuel consumed during the preceding calendar month.
Minimum Char e: Monthly Demand Charge above.
Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes, license fees, 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(lb/lu-s) 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
Board of Water and Light, Lansing, Michigan
GENERAL STEAM SERVICE
RATE NO.3
Availability-This rate is available to any customer receiving service from the Board of Water and Light(BWL)steam
transmission or distribution system with a gauge pressure in excess of 100 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. This service may include both firm and curtailable service.
Monthly Rate -Per contract terms.
Fuel Cost Adjustment-The fuel cost adjustment shall consist of an increase or decrease of 0.16(50.0016)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 full 0.1 ($0.001) cent;a fraction of 0,06($0.0006) cents or greater will be considered
a full 0.1 ($0.001)cent.) The price per mullion Btu for each billing month shall be the average delivered cost of fuel
consumed during the preceding calendar month.
Amine Treatment Adjustment-Per contract terms.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes, license fees,franchise fees, or any other charges against the BWL's property, or its operation, or the
production and/or sale of steam, to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Minimum Char e-Per contract terms.
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,unless superceded by the terms and conditions of the customer contract.
Adopted: July 30, 1996 Effective:August 15, 1994
Board of Water and Light, Lansing, Michigan
GENERAL CHILLED WATER SERVICE
RATE NO.4
Availability—this rate is available to any customer desiring service from the Board of Water and Light(BWL)district
cooling system. Service will be provided upon the customer entering into a contract with the BWL. The contract will
govern the customer's contract demand and terms and conditions of service, which may vary due to customer requirements
and the impact on BWL facilities. This rate is not available for standby or emergency service.
Monthly—Shall be computed in accordance with the following charges:
Capacity Charge: $40.64 per ton for all tons of billing demand less than or equal to 105% of the contract
demand, and$56.90 per ton for all tons of billing demand exceeding 105% of the contract demand.
Commodity Charge: $0,115 per ton-hr
Tax Adjustment—Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes, license fees,franchise fees, or any other charges against the BWL's property, or its operation, or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Minimum Monthly Charge—The capacity charge included in the rate.
Billing Demand—The billing demand shall be the maximum demand(tons)supplied during the 15-minute period of
maximum use,but not less than 85% of the contract demand. The General Manager is authorized to waive billing demand
in excess of 105%of the contract demand where such billing demand is incurred is the result of emergency conditions on a
customer's system and such emergency condition is caused by equipment or piping failure and the BWL concurs in the
existence of an emergency condition.
Temperature Factor Adjustment—During the months of May through October;if the customer's return water
temperature is below 57 degrees Fahrenheit(F),the customer's commodity charge will be increased by 2.0%for either; (1)
each degree Fahrenheit the customer's supply and return water-temperature differential is less than 15°F or, (2) each degree
Fahrenheit the customer's return water temperature is below 57'F,whichever is less. The General Manager is authorized
to waive the application of the Temperature Factor Adjustment where warranted in cases of customer hardship where such
hardship is caused by facilities constructed prior to the BWL's District Cooling System.
Metering—All services using chilled water from the BWL chilled water system shall be metered. The BWL shall,through
consultation with the customer, determine the form in which the commodity shall be metered.
Delayed Payment Charge—A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Rules and Regulations—Service under this rate is subject to the BWL Rules and Regulations for Chilled Water Service
that are incorporated herein by this reference.
Adopted: July 25,2000 Effective: January 1,2001
Page 56
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT / .
Tuesday, June 27, 2000
The Board of Commissioners met in rescheduled regular session at 5:00 p.m., in the
Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair
Diane Royal called the meeting to order.
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Ernest J. Christian,
Charles M. Creamer, Mark A. Murray, David O'Leary, Diane R. Royal and
Judson M. Werbelow.
Absent: None.
The Secretary declared a quorum present.
All said the Pledge of Allegiance,
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Murray, to
approve the minutes of regular session held May 23, 2000.
Carried unanimously.
SPECIAL PRESENTATION
Representatives from the development firm of Steiner & Associates, commissioned by the
Board of Water and Light to conduct a market analysis and perform design work for the
redevelopment of the Ottawa Street Power Station, were present to brief the Board on
their findings. General Manager Pandy introduced Yaromir Steiner, Chief Executive of
Steiner & Associates and Gregg Hanner, Vice President of Development, Steiner &
Associates. Mr. Steiner presented an executive summary of their analysis for an urban
leisure-time and retail/entertainment project at the Ottawa Street Power Station. He
reported that the project would combine a total of over 384,000 square feet of physical
area with the possibility of a 100-200-room hotel. Land for the project would encompass
the Ottawa Street Power Station and adjacent property north of the complex to the
Shiawassee Street Bridge. The $60 million project would incorporate:
• Multiplex theaters, up to 16 screens
• Arcade games and entertainment
• Live entertainment
Board Minutes Page 57
June 27,2000
• Themed restaurants
• Unique-to-the market retail
• Fitness club
• Offices
It was noted that a limited-service hotel involves another phase of the project and is
not included in the $60 million project.
The project would require a community investment of$25 million, mostly from local, state
and federal government grants. Mr. Steiner responded to questions pertaining to risk, cost
and design issues. The Commissioners were provided with a copy of the comprehensive
study for in depth review and future discussion.
Commissioners Aquilina and Creamer arrived at 5:23 p.m.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Larry Steckelberg from the staff of State Senator Dianne Byrum thanked the Board for
making an investment in electric utility expertise provided to the Senator as legislation to
restructure the State's electric industry was being debated over the last few years. He
acknowledged services offered by Assistant General Manager Bill Cook and John Davis of
Noble Kheder& Associates. Mr. Steckelberg noted that the BWL is in a unique position
of being a sizeable municipal utility that self generates, with a lot of exposure in physical
plant and investment that would be stranded if it found itself in the wrong position in any
legislation. He urged the Board to continue to invest in that expertise as deregulation
activity moves ahead, and as newly elected legislators come on board with limited
knowledge about municipal utility needs.
BWL employee Kathy Gorman expressed concerns with the proposed compensation plan
for non-bargaining unit employees. She explained how her current base pay would be
frozen due to the proposed market-based plan and the market pay rate for her job
classification. Ms. Gorman told the Board that she appealed her designated classification,
but it was denied. Ms. Gorman noted that there are some employees who are very
dissatisfied with what is happening to them as a result of the proposed compensation plan.
Commissioner Christian arrived at 5:40 p.na.
BWL employee Richard Taylor commented that he delivered a packet of information to
each Commissioner with a complete copy of the William M. Mercer Report, which he
requested under the Freedom of Information Act. He made reference to his letter of
June 25, 2000, which provides a summary of past activities pertaining to the compensation
Page 58 Board Minutes
June 27,2000
plan. He pointed out differences between the Dorey, Reagan report and the William M.
Mercer report. He noted that there are several job categories in the Mercer report, which
are not included in the Dorey, Reagan report. Also, he stated his belief that Dorey,
Reagan & Associates did not conduct a comprehensive pay review. He questioned how
payments to Dorey, Reagan& Associates were authorized and if payments have exceeded
the amount of$111,950, approved by the Board (Res.#2000-1-4).
COMMUNICATIONS
Three letters from anonymous BWL employees in opposition to the proposed new
compensation plan for non-bargaining unit employees.
Letters from Board of Water and Light employees Steve Brennan, Tom Foster, Richard
Peffley, George Podany, Randall Roost, and Robert Van Ells in support of the proposed
compensation plan.
Letter from Board of Water and Light employee, John Rossi, expressing concerns with the
proposed compensation plan.
Letter and attachments from Board of Water and Light employee Richard Taylor with
comments about the William Mercer, Inc. report and concerns with the proposed
compensation plan.
Motion by Commissioner Christian, seconded by Commissioner Murray to receive and
place the employee communications on file.
Action: Carried unanimously.
REPORTS OF COMMITTEES
#2000-6-1
PERSONNEL COMMITTEE REPORT
The Personnel Committee met on June 22, 2000, to review the BWL's new pay plan for
non-bargaining unit employees, recommended by management.
Committee Members present were: Commissioners O'Leary, Christian, Royal and
Werbelow. Others present were Commissioners Callen and Creamer.
At the last Board meeting held May 23, 2000, a resolution to adopt the new compensation
plan fell one vote short of the majority of serving Commissioners needed to approve the
action. With two Commissioners having been absent, it was determined that it would be
appropriate to review and respond to issues raised at the last Board meeting.
Board Minutes Page 59
June 27,2000
Linda Gardner, Director of Human Resources, outlined the objectives of the new non-
bargaining unit compensation system:
• Designed to pay salaries that are competitive with those of comparable utilities for
positions of similar responsibility; and
• Relate salaries directly to measured job performance; and
• Administer salaries within the BWL on a consistent basis; and
• Attract, retain, and develop qualified employees who can help the BVVL achieve its
mission; and
• Provide a framework for assigning positions to salary ranges on a fair and
consistent basis; and
• Establish and maintain salary ranges that are competitive in the marketplace; and
• Ensure the performance expectations and assessments are discussed regularly with
employees; and
• Support the planning and budgeting process; and
• Ensure that salary-related decisions are made without regard to race, religion,
color, age, handicap, gender, national origin, or other discriminatory factors.
Ms. Gardner provided a summary of what has changed since the Base Pay Management
System was first brought to the Board.
• All non-bargaining unit employees hired before July 1, 2000, will have their base
pay capped at 10% above the market rate, and
• The appeals date was extended and all appeals have been addressed; and
• Roth IRA's are being offered, in addition to the current 457 and 401A pension
options, to employees to invest their variable pay monies toward retirement as a
post-tax option.
The Performance Evaluation Plan was developed because of the need to replace
the previous performance appraisal instrument and in response to the employee
survey where management received a low score on performance feedback. Ms.
Gardner emphasized the importance to follow through with a feedback plan
independent of whether or not a new non-bargaining unit base pay plan is
implemented.
Page 60 Board Minutes
June 27,2000
Paul Reagan of Dorey, Reagan& Associates presented detailed information
regarding what has been developed to date. His presentation included information
on job descriptions/core job duties, performance appraisal and development
system, training timetable, and the implementation plan. The variable pay plans for
the corporate, process and individual pay incentives were explained.
Following a lengthy question and answer period, the Committee voted to forward a
resolution to the Board for consideration (see Resolution 2000-6-2).
Respectfully submitted,
David O'Leary, Chair
Personnel Committee
Motion by Commissioner Creamer, seconded by Commissioner Murray, to accept the
Personnel Committee Report as presented.
Discussion: Commissioner O'Leary noted that the new BWL performance appraisal
system will be implemented September 1, 2000
Action: The Committee of the Whole Report was unanimously adopted.
#2000-6-2
Resolution to Adopt New Compensation Plan
for Non-Bargaining Unit Employees
BY THE PERSONNEL COMMITTEE
WHEREAS, Dorey, Reagan& Associates (consultant) was engaged by the BWL
(Resolution #2000-1-4) to assist with the following goals:
• Recommend and implement changes to the Non-Bargaining Unit Compensation
Plan;
• Align the compensation system with a process-based organization;
• Provide information enabling the BWL to design pay strategies, which are market
driven; and
WHEREAS, staff and the consultant presented details of the new compensation plan for
Non-Bargaining Unit Employees on September 2, 1999, September 28, 1999 and October
27, 1999, with recommendations regarding changes; and
WHEREAS, the Personnel Committee on October 27, 1999, determined that the Board of
Water and Light base pay in relation to market should be established at the 50th percentile;
and
Board Minutes Page 61
June 27,2000
WHEREAS, the Compensation Plan was presented to the Board on May 23, 2000, and
was not approved by 5 affirmative votes; and
WHEREAS, the Personnel Committee met on June 22, 2000, to address concerns raised
by Commissioners.
RESOLVED:
1. That the brochure on the new BWL Compensation Plan for Non-Bargaining Unit
Employees, submitted by Human Resources and consultant Dorey, Reagan&
Associates, dated April 4, 2000, be received and filed.
2. That the new compensation plan shall be set as a two-tiered system.
• The market rate will remain at the 501h percentile of the market for
employees hired as of July 1, 2000. The market rate will serve as the cap
of base pay; and
• The base pay cap of current employees will be set at 10% above the market
rate.
3. That 5% over maximum limit for Non-Bargaining Unit Employee increases be
authorized for FY 1999-2000 only.
4. That the General Manager be authorized to implement the recommended changes
to the salary ranges and pay structures of the new Non-Bargaining Unit
Compensation Plan, effective July 1, 2000.
5. That the General Manager be authorized to implement a variable pay plan for Non-
Bargaining Unit Employees for FY 2000-2001 with the following components:
Maximum Variable Pay
Percentage of Base
Corporate Share the Success 2.5%
Process Performance Results 5.0%
Individual Performance incentive 7.5%
6. That the individual variable pay amount be offered in a lump sum rather than being
spread over 26 pay periods.
7. That 3.5% of the Non-Bargaining Unit Employee payroll, budgeted for FY 2000-
2001, be used for performance increases, based on variable amounts, effective
July 1, 2000.
8. That the General Manager, upon consultation with the Assistant General Manager
and the Director of Human Resources, be authorized to pay employees with skills
Page 62 Board Minutes
June 27,2000
and experience deemed to be critical to the BWL, at base pay levels above the 50"'
percentile.
9. That 5% of the total 7.5% Individual Performance incentive pay for Directors and
Managers be based on the quality of performance appraisals conducted by them or
their employees.
- - - - - - - - - - - - - - - - - - - -
Item#2, above, allows for a gradual transition to the new compensation plan and
reduces the percentage of employees above market rate by approximately 30%.
Furthermore, it will shift approximately $200,000 from variable to base pay, with
an additional $30,000 for pension and benefit costs.
Item#3, above, lifts the 5% increase over maximum limit for Non-Bargaining Unit
(NBU) Employees for FY 1999-2000 only. This qualifies NBU employees for a
one-time variable pay increase that may exceed the maximum.
Motion by Commissioner Creamer, seconded by Commissioner Murray, to approve the
resolution to adopt the new BWL Compensation Plan for Non-Bargaining Unit employees
(Resohltion 2000-6-2).
Discussion: Commissioner Royal summarized the crux of her reservations with the
proposed compensation plan: She indicated her preference to further develop the pay plan
before approving it so that employees are more comfortable with it. She noted her
concern with conflicts between the Dorey, Reagan plan versus the William Mercer plan
because employees have not received satisfactory answers to questions raised regarding
the two plans. And she stated that criteria for performance appraisals and training for
managers and supervisors should be more definitively spelled out before implementing the
new compensation plan.
Commissioner Callen noted that he has been trying to catch up, since he has been gone for
a couple of meetings. He echoed Chairperson Royal's sentiments. He said that there is no
question in his mind that staff is headed in the right direction with respect to a
compensation-based performance program in replacing a system that should have been
replaced sometime ago. He stated, however, that he too is concerned with implementing
the pay plan too hastily, given concerns raised in the employee survey. He indicated that
he would prefer to see some resolution to the position description issue before the new
plan is implemented.
Commissioner Christian indicated that he supports slowing the process to assure the new
pay plan is in order, particularly since it is significantly different from the existing program.
He noted that it is imperative an attitude of"change agents" is developed, and urged that
everyone work together on this change because it takes time to fully develop the vision of
the BWU.
Board Minutes Page 63
June 27,2000
Commissioner Creamer said that he appreciated the employee input regarding the
proposed pay plan. He noted that some changes have been made to the plan as a result of
employee concerns as well as concerns raised by a number of the Commissioners. He also
stated his belief that merit-based pay plans are essential and critical to moving companies
forward. He added that while he too has some concerns about the speed of implementing
the pay plan, he is convinced that whenever a significant change is made to a program of
this nature, there will be apprehension by employees. He expressed concern that there is
not a consistent performance appraisal process in place at the BWL. Commissioner
Creamer stated that it is essential for the BWL to move ahead with the new compensation
plan; and as it moves ahead, a few mistakes may be made as the new plan is a work in
progress,
Commissioner Murray stated that an earlier meeting he was the only vote against the
compensation plan primarily due to a question on the ability for the BWL to effectively
measure performance. He pointed out that how an organization measures performance is
essential to an organization's health and success as compared to the early stages of a
particular formula for merit pay. He noted that ultimately the Board's responsibility is at
the policy level, thus the General Manager and his team would be held accountable by the
Board for the effective implementation of the proposed total compensation plan. He
reminded that there are some substantial challenges ahead in order to accomplish this.
Inherently the implementation of such an effort would continue to be a work in progress.
He also noted that it is management's job to do this successfully, and to fail to do so
would be a very serious problem. Commissioner Murray said that at a policy level, the
proposed compensation plan has been refined meaningfully, and he plans to support it.
Action: The resolution to adopt the new compensation plan for non-bargaining unit
employees was adopted by the following vote:
YEAS: Aquilina, Creamer, Murray, O'Leary, and Werbelow— 5
NAYS: Callen, Christian and Royal -3
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-6-3
BOARD MEETING SCHEDULE
RESOLVED, That pursuant to the provisions in Article II, Section 2.1 of the Board's
Rules of Administrative Procedure, the following dates for regular meetings of the Board
of Water and Light Commissioners for the ensuing six (6) months are hereby set.
Page 64 Board Minutes
June 27,2000
2000
July 25 - Tuesday
August 22 - Tuesday
September 26 - Tuesday
October 24 - Tuesday
November 21 - Tuesday
December 12 - 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.
RESOLVED FURTHER, That a notice of the meeting schedule be published in the
Lansing State Journal the week of July 3, 2000.
Motion by Commissioner Callen, seconded by Commissioner Christian, to adopt the
resolution.
Action: Carried unanimously
#2000-6-4
PAYMENT IN LIEU OF TAXES TO THE CITY
RESOLVED, That the Board pay $6,429,067 to the City of Lansing pursuant to our
agreement dated June 30, 1992.
RESOLVED FURTHER, That all Receiving Fund cash and investments remaining
following the above payment be transferred effective June 30, 2000 to the Special Project
Fund for future capital projects.
Motion by Commissioner Callen, seconded by Commissioner Aquilina, to adopt the
resolution.
Discussion: The agreement with the City ends June 30, 2002, unless extended in writing
by the Commissioners and the City Council.
Action: Carried unanimously
Commissioner O'Leary left the room at 6:00 p.m.
Board Minutes Page 65
June 27,2000
#2000-6-5
BUSINESS PLAN FOR 2001
RESOLVED, That the Board of Water and Light Business Plan for 2001 be adopted. The
proposed Business Plan is for the fiscal year ending June 30, 2001.
--------------------
The last page of the Business Plan is a draft of BWL Corporate and Process
Measures. The measures have not yet been finalized and are for information only
at this time. The corporate measures will be reviewed and recommended by the
employee performance measures committee to the Share the Success management
committee. The management committee's final recommendation will be forwarded
to the General Manager for approval. The amount available for Share the Success
payments will be determined by the Commissioners at the July 2000 Board
Meeting.
Motion by Commissioner Christian, seconded by Commissioner Callen, to adopt the
resolution.
Action: Carried unanimously
#2000-6-6
FEES FOR CONTRACTOR INSTALLED RESIDENTIAL WATER SERVICES
RESOLVED, That fees for residential water services installed by contractors be adopted,
effective July 1, 2000, as follows:
Fee Description When Applied Proposed Fee
Permit Application Initial Request $250
Annual Permit (See Board amendment below) Annually $150
Service Site Inspection Each Site Visit $75
Standard Service Meter Set As Required $132
Back Flow Prevention Meter Set As Required $253
Split Service Meter Set As Required $224
--------------------
Fees for contractor installed residential water services are new fees, which cover BWL
costs associated with the Water Customer Choice Program adopted by Board resolution
#2000-5-7.
Page 66 Board Minutes
June 27,2000
Fees will cover BWL costs of assessing contractor qualifications and quality of work for
approval to install residential water services, annual administration and review, inspection
of work and installation of meter sets.
Motion by Commissioner Creamer, seconded by Commissioner Christian, to adopt the
resolution.
Discussion: In response to Commissioner Werbelow's inquiry, General Manager Pandy
clarified that the fees will recover costs incurred associated with allowing contractors to
install residential services. The fees are in addition to what the owner pays the
contractors. Marketing Director Clyde Dugan noted that the reason for an annual permit
fee is to prequalify contractors to eliminate the need to prequalify them for each service
installation. Following discussion, the Commissioners consented to a friendly amendment
to the resolution by changing the second line of the Fee Description column as follows:
Annual CONTRACTOR'S QUALIFICATION PERMIT FEE.
Action: Carried unanimously, as amended.
#2000-6-7
BULK WATER SALES—HYDRANT USAGE FEES
RESOLVED, That the BWL charges for water hydrant usage and pool filling be
established, effective July 1, 2000, as follows:
Hydrant Usage
Schedule of Fees
(Effective 7-9-00)
Permit application fee $120.00
Consumption fee:
1" RPZ (to serve 1" and smaller connections) $25.00 per month
2" RPZ (to serve 1'/2-2" connections) $50.00 per month
(*per month, or any portion thereo))
Hydrant Usage Non-compliance Fee $250.00
(Refundable at expiration of permit contingent on
proper hydrant usage)
Water Theft Penalty Fee (See Board amendment below) $500.00 1st occurrence
("Further violations may be prosecuted to the fullest
extent of the lcnv)
Board Minutes Page 67
June 27,2000
Any changes of location to include a different hydrant must be approved by the Board
of Water and Light in advance of the change, in order to prevent a non-compliance
fee.
Additional Purchase Items
RPZ Purchase Cost
1" $223.00
2" $418.00
Hydrant Wrench Purchase Cost $22.00
Permits will be valid from April 1 — October 31 of each year.
POOL FILL FLAT RATE $195.00
Motion by Commissioner Christian, seconded by Commissioner Callen, to adopt the
resolution.
Discussion: In response to an inquiry made by Commissioner Werbelow, General
Manager Pandy clarified that fees for bulk water sales are designed to deal with customers
who purchase bulk water from a hydrant. The fee schedule provides a set of rates
applicable for the use of hydrants to fill a tank truck or other hydrant uses, such as at a
construction cleanup site; i.e., a contractor may want to use a hydrant to wash a road or
clean up dirt that has gathered on a road surface. The fee schedule is an attempt to
delineate BWL fees and rates for those types of services. Mr. Pandy noted that the
Consumption Fee is a rate for getting water connected based on the size of connection,
which would be either a 1-inch or 1-1/2 to 2-inch size, together with a commodity charge.
The customer also pays for the water used, based on the BWL's retail rate. He reported
that fees are being updated to reflect the BWL's actual cost of providing such services; the
fees and charges will be updated annually. Marketing Director Clyde Dugan gave a
historical overview of bulk water sales and hydrant usage. In response to Commissioner
Royal's question, Mr. Dugan clarified that the Hydrant Wrench Purchase Cost of$22.00
establishes a flat rate for the BWL to provide a special hydrant wrench--adapted for
hydrants on the BWL system.
Commissioner Murray asked about the governance role of the BWL relative to
prosecutorial discretion. General Manger Pandy responded that the Water Theft Penalty
Fee is intended for the BWL to levy $500.00 for the first occurrence, and then if someone
repeats the incident, the BWL would file charges for theft. Staff Attorney Wilhite added
that generally the State is the complaining party of the criminal matter. He noted that
there is a statute on meter tampering, theft and related issues. The BWL would make the
complaint to the prosecutor. Commissioner Murray noted that if the intent is to charge
another $500.00 fee for a second incident of theft, the resolution should be modified.
Page 68 Board Minutes
June 27,2000
Motion: Following discussion, it was moved by Commissioner Murray and seconded by
Commissioner Callen to propose a friendly amendment to the Water Theft Penalty Fee as
follows: $500.00 -] PER occurrence. Further Vielatiens may be preseetited to the f,lles+
extent e f the l ANY VIOLATION OF THIS POLICY MAY ALSO BE REPORTED
TO THE PROSECUTOR'S OFFICE.
Action: Carried unanimously
Commissioner Callen suggested that for future fee schedule changes, it would be helpful
for the Commissioners to receive a comparative list of fee changes showing the current
and proposed fees.
#2000-6-8
WELLHEAD PROTECTION PLAN
RESOLVED, That the Board approve the City of Lansing Wellhead Protection Program
Plan as provided to the Commissioners under separate cover.
--------------------
The Wellhead Protection Plan will serve as a guidance document for protection of the
region's groundwater resource from contamination and misuse. It was developed through
the cooperative efforts of the Tri County Regional Planning Commission, the
Groundwater Management Board, the Board of Water and Light, the City of Lansing,
Michigan State University, the Michigan Department of Environmental Quality, the
Ingham County Health Department, and Delhi Township.
Motion by Commissioner Callen, seconded by Commissioner Creamer, to adopt the
resolution.
Action: Carried unanimously
2000-6-9
EMPLOYEE BENEFITS OPTION PLAN—2000-2001
WHEREAS, The Share the Success (STS) Employee Benefits Option Committee has
reviewed and researched numerous options for the Share the Success bonus program.
The option package has administrative costs only, while providing employees the
opportunity to purchase additional fringe benefits.
RESOLVED, That the final recommendations submitted by the STS Employee Benefits
Options Committee be approved:
I. Options available through the "Whatif' Program
1. Purchase of Vacation * No change
Board Minutes Pabe 69
June 27,2000
2. Purchase of Free Choice * No change
3. ICMA"Deferred Compensation Plan" No change
4. ICMA"Roth IRA" **** New Option
5. FSA(Flexible Spending Account) *** No change
6. Charitable Contributions ** Lansing Board of Water &Light Fund
Ele's Place"A healing center for grieving children"
II. Options available through Human Resources
7. Long Term Disability Program Annual enrollment for"buy-up" option changes
8. UNUM Term Life Insurance Annual enrollment for changes
9. Cancer, Intensive Care, Voluntary Annual enrollment for changes
Inder nlity(previously called Direct Cash
Supplement), Accident Expense AFLAC Plans
Purchase of Vacation and Free Choice will be limited to ten (10) total days to include no
more than two (2) Free Choice Days.
** To lower administrative costs, all checks less than $5.00 will be defaulted to the charities
options. Opt out procedures will be available for employees declining the default.
*** Maximum annual contribution for health care expenses is $7,500 and dependent care
maximum is $5,000 (see IRS rules).
**** Lump sum and/or continued payroll deduction.
Motion by Commissioner Murray, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously
#2000-6-10
CAPITAL BUDGET INCREASE
—ALLEGAN STREET STEAM MAIN PROJECT
RESOLVED, That the BWL Capital Budget for fiscal year 2000 be increased $145,000
and the Capital Budget for fiscal year 2001 be increased $1,517,000 to accommodate the
following project:
Project Project Cost FY 00 Expenditures FY 01 Expenditures
Allegan St. Steam Main $1,662,000 $145,000 $1,517,000
This project will replace the steam main on Allegan Street from Walnut to Pine and also
extend the main to Sycamore turning south on Sycamore to feed the State
Page 70 Board Minutes
June 27,2000
Library/Museum. Replacement of this steam main section is recommended due to
concerns over the integrity of the existing steam main, which provides the only source of
steam to the State of Michigan complex on Allegan Street, coupled with the benefits of
doing this construction along with the Chilled Water mains.
In addition to serving the State Library/Muscum, the extension of the steam main from
Allegan and Pine is a one-year advancement of work required to supply steam service to
the Hall of Justice Building on Martin Luther King Blvd. A portion of a $1,025,000 total
Contribution-in-Aid is allocated to this work. Construction of the Chilled Water mains
along the same route provides an opportunity for cost savings including reduced street
work exposure.
Motion by Commissioner Murray, seconded by Commissioner Werbelow, to adopt the
resolution.
Action: Carried unanimously.
UNFINISHED BUSINESS
Review Implementation of Rate Increases
At the request of Commissioner Royal, the rate increase implementation schedule
approved at the May 23, 2000, meeting was placed on the agenda for reconsideration.
With two Commissioners having been absent, she deemed it appropriate to bring up this
matter for discussion.
General Manger Pandy reported that the original recommendation considered at the last
meeting had an August 10, 2000, effective date. City officials have requested that BWL
consider postponing its rate increases until January 1, 2001, to mitigate the effect of the
sewer rate increase for customers on a fixed income. The City is implementing sewer rate
increases by 5 percent effective July 1, 2000. Mr. Pandy noted that if the Commissioners
prefer to move the effective date of BWL rate increases to January I", subsequent
increases would also be moved to January I", rather than an August to August cycle for
the second and third years. An analysis prepared by Chief Financial Officer Dana Tousley
was provided to the Commissioners showing the financial consequence of deferring the
five-month time period to January 1, 2001. The analysis included a calculation of revenue
increases needed in the next two years in an attempt to keep the BWL whole in terms of
revenues received over the three-year period. A comparison was provided on the impact
if the BWL adjusts the rate increases to make up the revenue loss in the same three-year
period. Calculations of resulting revenue increases in percentages for each year were also
reviewed.
Mr. Tousley reviewed the planning and budgeting process that takes place to determine if
rate increases or bonding should be considered.
Board M1nLILC6 Page 71
June 27,2000
Commissioner Royal expressed concern with the BWL's lack of coordination with the
City on rate increases. She noted that the impact of simultaneous BWL and City rate
increases could be problematic to residential ratepayers on tight budgets. She indicated
her preference to review and adjust rates annually for smoother, inflationary-type of
adjustments, rather than three years of rate increases followed by no increases in
subsequent years.
Following discussion, there was consensus among the Commissioners to move to a
January time frame for annual increases. An advantage to shifting rate increases to
January is that it may help diminish the misunderstanding among ratepayers that the
increase to sewer rates is the responsibility of the BWL, when in fact it is not.
In response to Commissioner Creamer's question relative to possible legal implications for
deferring rate increases five months from the date of a public hearing, Staff Attorney
Wilhite opined that to move rate increases back by five months would not damage
anyone's due process rights.
#2000-6-11
Resolution Authorizing Deferral of
Rate Increases for Water, Electric and Steam
until January 1, 2001
RESOLVED, That any rate increases considered for water, electric and steam shall be
deferred until January 1, 2001. Further, that the implementation period for future Board
of Water and Light rate increases shall be readjusted from August to a January time frame.
Moved by Commissioner Creamer, seconded by Commissioner Callen that the resolution
be approved.
Discussion: The public hearing set for Tuesday, July 11, 2000, at 5:30 p.m. for
comments on proposed rate changes will continue as scheduled. Mr. Pandy noted that the
decision to postpone the rate increases will have an impact on the BWL's net income.
Revised budget and financial targets will be presented for review at the next meeting.
Action: Carried unanimously.
NEW BUSINESS
None.
GENERAL MANAGER'S REMARKS
Capital Project Status Report. General Manager Pandy handed out a copy of the
Annual, Planned and Bonded Capital Projects status report as of May 31, 2000. He
Page 72 Board Minutes
June 27,2000
reported that the only capital project number that requires some justification is 2000-006
(Purchase/Scrap Transformers). The reason for the justification is due to transformer
demand and costs to meet new customer service requests are higher than projections.
Hulett Road Pump Station and Reservoir Update. General Manger Pandy reported
that the Hulett Road Pump Station and reservoir are completed. This project is the 10
million gallon per day pump station and 2 million gallon underground storage reservoir
that is visible looking north from I-96 west off the Okemos Road exit. The project has
one 16-inch raw water supply line and two 16-inch mains; one serves the Jackson National
Life Headquarters and Alaiedon Township, and the other serves Meridian Township and
Alaiedon District#2. The project cost to date is at $3.4 million as compared to the budget
estimate of$4.6 million, and it is expected to come in at the budget estimate when all
costs are charged to the project.
Report on Water Utility Financial Performance. At the request of Commissioner
Murray, General Manager Pandy handed out a brief analysis that explained the variance in
water operating income. Mr. Pandy reported that water operating income is
approximately $1 million less than budgeted (47.2%), water revenue is down compared
to budget due to the following factors: (1) the Select Steel Corporation deal did not
materialize (4500,000), (2) water customer accounting and service expenses associated
with going to 24 hours/7 days per week of customer service operations, the water portion
of the new emergency phone system and the Bath Township meter reading not budgeted
(+$300,000), (3) the water portion of administrative/general expenses were higher than
budgeted, due to lower than expected transfers to fixed capital (+$100,000), and (4) the
water depreciation expenses were higher than budgeted (+$1oo,000). Mr. Pandy stated that
management is continuing to find ways to cut costs, increase sales, and increase rates.
Chiller Line Construction Schedule. General Manager Pandy handed out a map of the
chiller line work schedule for the first and second phases of the project. He reported that
both phases are under construction. The City of Lansing has approved a noise variance
allowing the BWL to work on the first part (Phase lb) and authorizing the BWL to work
from 6 a.m. to 8 p.m., including weekends. A similar variance request for the Phase-la
work will be the subject of a City Council public hearing on Julyl7. Commissioner
Murray suggested that, in conjunction with the City, it would be helpful for the driving
public to see additional signage that communicates when downtown streets will be closed
and reopened. Mr. Pandy agreed to follow up with the Public Service Department to
discuss this concept.
Report on the Steam Main Rupture. General Manager Pandy reported that the 20-inch
steam main feeding into General Motor's (GM) Plant #6 has suffered a severe failure on
Tuesday morning (6/27/00) at approximately 6:00 a.m. The operation of the 20-inch
steam main has been plagued with problems due to various leaks at joint locations. A map
was displayed showing the location of the steam main and the problem areas. In the
interest of public safety, South Martin Luther King, Jr. Blvd near Olds Avenue and
Williams Street was closed after the leak blew a large hole in the ground along the steam
main. There were no injuries. Mr. Pandy reported that arrangements for the rental of
Board Minutes Page 73
June 27,2000
portable boilers to cover the Plant 96 steam load are in process. Assistant General
Manager Bill Cook reported that the steam supply to Plant 46 is being halted at
approximately 8:00 p.m. (6/27/00), which will create production problems for GM. He
outlined efforts underway in dealing with this issue and the action plan. He also reported
that experts have been hired to analyze the design of the steam main and to determine the
cause of the joint failures. Mr. Cook briefed on the financial implications to repair the
steam main. Mr. Cook noted that to repair the large break and if all 24 expansion joints
need to be replaced, the cost could exceed $5 million, depending on the final plan to be
adopted. The cost to the BWL to rent portable boilers for three months (July through
September) to cover the Plant #6 steam load this summer is expected to total $500,000.
General Motors to Construct a New Plant in Delta Township. General Manager
Pandy reported that General Motors (GM) has announced they will build a vehicle
manufacturing complex in Delta Township. The second major production facility
launched in the Lansing area this year as part of GM's global manufacturing strategy. The
complex will consist of a body shop, paint shop and general assembly facility; a regional
Metal Fabricating Division metal center; and a central utilities complex to serve the site.
The BWL will be providing service to GM in Delta Township, serving an approximately
30MW load.
REMARKS BY COMMISSIONERS
None.
EXCUSED ABSENCES
There being no objection, Commissioner O'Leary (who left the meeting at 6:00 p.m.) was
excused.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
BWL employee Joseph Davis, President of IBEW, Local 352, commended Richard Taylor
for standing up and making his comments regarding the new compensation plan. Mr.
Davis advised the Board that a special conference call is scheduled with the Michigan
Employment Relations Commission on Friday, June 30`1'with regard to the IBEW
representing the Clerical-Technical group. He stated that he was hoping the Board would
have delayed action on the new pay plan until concerns raised by some employees had
been satisfied.
Richard Taylor stated that one thing he did not mention in his earlier remarks to the Board
was that according to the April and May 2000 Board minutes, the Technical Skill Family,
Page 74 Board Minutes
June 27,2000
Grades 1 through 6 would be set at the 65`" percentile rather than the 50°i percentile. He
noted that in reviewing his "blue sheet," on job and compensation information, his new
market rate was set at 60%.
ADJOURNMENT
On motion by Commissioner Murray, seconded by Commissioner Werbelow, the meeting
adjourned by unanimous consent at 7:08 p.m.
Is/Mary E. Sova, Secretary
Tiled June 30, 2000
Marilynn Slade, City Clerk
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Page 56
MINUTES OF THE BOARD OF COMMISSIONERS' IN'IEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, June 27, 2000
The Board of Commissioners met in rescheduled regular session at 5:00 p.m., in the
Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan. Chair
Diane Royal called the meeting to order.
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Ernest J. Christian,
Charles M. Creamer, Mark A. Murray, David O'Leary, Diane R.Royal and
Judson M. Werbelow.
Absent: None.
The Secretary declared a quorum present.
All said the Pledge of Allegiance.
APPROVAL OF MINUTES
Mofion was made by Commissioner O'Leary, seconded by Commissioner Murray, to
approve the minutes of regular session held May 23, 2000.
Carried unanimously.
SPECIAL PRESENTATION
Representatives from the development firm of Steiner & Associates, commissioned by the
Board of Water and Light to conduct a market analysis and perform design work for the
redevelopment of the Ottawa Street Power Station, were present to brief the Board on their
findings. General Manager Pandy introduced Yaromir Steiner, Chief Executive of Steiner
& Associates and Gregg Hanner, Vice President of Development, Steiner & Associates.
Mr. Steiner presented an executive summary of their analysis for an urban leisure-tune and
retail/entertainment project at the Ottawa Street Power Station. He reported that the
project would combine a total of over 384,000 square feet of physical area with the
possibility of a 100-200-room hotel. Land for the project would encompass the Ottawa
Street Power Station and adjacent property north of the complex to the Shiawassee Street
Bridge. The $60 million project would incorporate:
• Multiplex theaters, up to 16 screens
• Arcade games and entertainment
• Live entertainment
• Themed restaurants
• Unique-to-the market retail
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June 27,2000
• Fitness club
• Offices
It was noted that a limited-service hotel involves another phase of the project and is not
included in the $60 million project.
The project would require a community investment of $25 million, mostly from local,
state and federal government grants. Mr. Steiner responded to questions pertaining to risk,
cost and design issues. The Commissioners were provided with a copy of the
comprehensive study for in depth review and future discussion.
CommissionersAquilina and Creamer arrived at 5:23 p.m.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Larry Steckelberg from the staff of State Senator Dianne Byrum thanked the Board for
making an investment in electric utility expertise provided to the Senator as legislation to
restructure the State's electric industry was being debated over the last few years. He
acknowledged services offered by Assistant General Manager Bill Cook and Johan Davis of
Noble Kheder & Associates. Mr. Steckelberg noted that the BWL is in a unique position
of being a sizeable municipal utility that self generates, with a lot of exposure in physical
plant and investment that would be stranded if it found itself in the wrong position in any
legislation. He urged the Board to continue to invest in that expertise as deregulation
activity moves ahead, and as newly elected legislators come on board with limited
knowledge about municipal utility needs.
BWL employee Kathy Gorman expressed concerns with the proposed compensation plan
for non-bargaining unit employees. She explained how her current base pay would be
frozen due to the proposed market-based plan and the market pay rate for her job
classification. Ms. Gorman told the Board that she appealed her designated classification,
but it was denied. Ms. Gorman noted that there are some employees who are very
dissatisfied with what is happening to them as a result of the proposed compensation plan.
Commissioner Christian arrived at 5:40 p.m.
BWL employee Richard Taylor commented that he delivered a packet of information to
each Commissioner with a complete copy of the William M. Mercer Report, which he
requested under the Freedom of Information Act. He made reference to his letter of
June 25, 2000, which provides a summary of past activities pertaining to the compensation
plan. He pointed out differences between the Dorey, Reagan report and the William M.
Mercer report. He noted that there are several job categories in the Mercer report, which
are not included in the Dorey, Reagan report. Also, he stated his belief that Dorey,
Reagan& Associates did not conduct a comprehensive pay review. He questioned how
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Page 58 June 27,2000
payments to Dorey, Reagan& Associates were authorized and if payments have exceeded
the amount of$111,950, approved by the Board (Res.#2000-1-4).
COMMUNICATIONS
Three letters from anonymous BWL employees in opposition to the proposed new
compensation plan for non-bargaining unit employees.
Letters from Board of Water and Light employees Steve Brennan, Tom Foster, Richard
Peffley, George Podany, Randall Roost, and Robert Van Ells in support of the proposed
compensation plan.
Letter from Board of Water and Light employee, John Rossi, expressing concerns with the
proposed compensation plan.
Letter and attachments from Board of Water and Light employee Richard Taylor with
comments about the William Mercer, Inc. report and concerns with the proposed
compensation plan.
Motion by Commissioner Christian, seconded by Commissioner Murray to receive and
place the employee communications on file.
Action: Carried unanimously.
REPORTS OF COMMITTEES
92000-6-1
PERSONNEL COMMITTEE REPORT
The Personnel Committee met on June 22, 2000, to review the BWL's new pay plan for
non-bargaining unit employees, recommended by management.
Committee Members present were: Commissioners O'Leary, Christian, Royal and
Werbelow. Others present were Commissioners Callen and Creamer.
At the last Board meeting held May 23, 2000, a resolution to adopt the new compensation
plan fell one vote short of the majority of serving Commissioners needed to approve the
action. With two Commissioners having been absent, it was determined that it would be
appropriate to review and respond to issues raised at the last Board meeting.
Linda Gardner, Director of Human Resources, outlined the objectives of the new non-
bargaining unit compensation system:
• Designed to pay salaries that are competitive with those of comparable utilities for
positions of similar responsibility; and
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June 27, 2000
• Relate salaries directly to measured job performance; and
• Administer salaries within the BWL on a consistent basis; and
• Attract; retain, and develop qualified employees who can help the BWL achieve its
mission; and
• Provide a framework for assigning positions to salary ranges on a fair and
consistent basis; and
• Establish and maintain salary ranges that are competitive in the marketplace; and
• Ensure the performance expectations and assessments are discussed regularly with
employees; and
• Support the planning and budgeting process; and
• Ensure that salary-related decisions are made without regard to race, religion,
color, age, handicap, gender, national origin, or other discriminatory factors.
Ms. Gardner provided a summary of what has changed since the Base Pay Management
System was first brought to the Board.
• All non-bargaining unit employees hired before July 1, 2000, will have their base
pay capped at 10% above the market rate; and
• The appeals date was extended and all appeals have been addressed; and
• Roth IRA's are being offered, in addition to the current 457 and 401A pension
options, to employees to invest their variable pay monies toward retirement as a
post-tax option.
The Performance Evaluation Plan was developed because of the need to replace
the previous performance appraisal instrument and in response to the employee
survey where management received a low score on performance feedback. Ms.
Gardner emphasized the importance to follow through with a feedback plan
independent of whether or not a new non-bargaining unit base pay plan is
implemented.
Paul Reagan of Dorey, Reagan & Associates presented detailed information
regarding what has been developed to date. His presentation included information
on job descriptions/core job duties, performance appraisal and development
system, training timetable, and the implementation plan. The variable pay plans for
the corporate, process and individual pay incentives were explained.
Following a lengthy question and answer period, the Committee voted to forward a
resolution to the Board for consideration (see Resolution 2000-6-2).
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Page 60 Board Minutes
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Respectfully submitted,
David O'Leary, Chair
Personnel Committee
Motion by Commissioner Creamer, seconded by Commissioner Murray, to accept the
Personnel Committee Report as presented.
Discussion: Commissioner O'Leary noted that the new BWL performance appraisal
system will be implemented September 1, 2000
Action: The Committee of the Whole Report was unanimously adopted.
42000-6-2
Resolution to Adopt New Compensation Plan
for Non-Bargaining Unit Employees
BY THE PERSONNEL COMMITTEE
WHEREAS, Dorey, Reagan & Associates (consultant) was engaged by the BWL
(Resolution #2000-1-4) to assist with the following goals:
• Recommend and implement changes to the Non-Bargaining Unit Compensation
Plan;
• Align the compensation system with a process-based organization;
• Provide information enabling the BWL to design pay strategies, which are market
driven; and
WHEREAS, staff and the consultant presented details of the new compensation plan for
Non-Bargaining Unit Employees on September 2, 1999, September 28, 1999 and October
27, 1999, with recommendations regarding changes;and
WHEREAS,_the Personnel Committee on October 27, 1999, detenniied that the Board of
Water and Light base pay in relation to market should be established at the 501h percentile;
and
WHEREAS, the Compensation Plan was presented to the Board on May 23, 2000, and
was not approved by 5 affumative votes; and
WHEREAS, the Personnel Committee met on June 22, 2000, to address concerns raised
by Commissioners.
RESOLVED:
1. That the brochure on the new BWL Compensation Plan for Non-Bargaining Unit
Employees, submitted by Human Resources and consultant Dorey, Reagan &
Associates, dated April 4, 2000, be received and filed.
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2. That the new compensation plan shall beset as a two-tiered system.
• The market rate will remain at the 50`}'percentile of the market for
employees hired as of July 1, 2000. The market rate will serve as the cap
of base pay; and
• The base pay cap of current employees will be set at 10% above the market
rate.
3. That 5% over maximum limit for NoaBargainirig Unit Employee increases be
authorized for FY 1999-2000 only.
4. That the General Manager be authorized to implement the recommended changes
to the salary ranges and pay structures of the new Non-Bargaining Unit
Compensation Plan, effective July 1, 2000.
5. That the General Manager be authorized to implement a variable pay plan for Non-
Bargaining Unit Employees for FY 2000-2001 with the following components:
Maximum Variable Pay
Percentage of Base
Corporate Share the Success 2.5%
Process Performance Results 5.0%
Individual Performance incentive 7.5%
6. That the individual variable pay amount be offered in a lump sum rather than being
spread over 26 pay periods.
7. That 3.5% of the Non-Bargaining Unit Employee payroll, budgeted for FY 2000-
2001, be used for performance increases, based on variable amounts, effective
July 1, 2000.
8. That the General Manager, upon consultation with the Assistant General Manager
and the Director of Human Resources, be authorized to pay employees with skills
and experience deemed to be critical to the BWL, at base pay levels above the 50"'
percentile.
9. That 5% of the total 7.5% Individual Perfornance incentive pay for Directors and
Managers be based on the quality of performance appraisals conducted by them or
their employees.
- - - - - - - - - - - - - - - - - - - -
Item #2, above, allows for a gradual transition to the new compensation plan and
reduces the percentage of employees above market rate by approximately 30%.
Furthermore, it will shift approximately $200,000 from variable to base pay, with
an additional $30,000 for pension and benefit costs.
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Item ##3, above, lifts the 5% increase over maximum limit for NoaBargairvng Unit
(NBU) Employees for FY 1999-2000 only. This qualifies NBU employees for a
one-time variable pay increase that may exceed the maximum.
Motion by Commissioner Creamer, seconded by Commissioner Murray, to approve the
resolution to adopt the new BWL Compensation Plan for Non-Bargaining Unit employees
(Resolution 2000-6-2).
Discussion: Commissioner Royal summarized the crux of her reservations with the
proposed compensation plan: She indicated her preference to further develop the pay plan
before approving it so that employees are more comfortable with it. She noted her concern
with conflicts between the Dorey, Reagan plan versus the William Mercer plan because
employees have not received satisfactory answers to questions raised regarding the two
plans. And she stated that criteria for performance appraisals and training for managers
and supervisors should be more definitively spelled out before implementing the new
compensation plan.
Commissioner Callen noted that he has been trying to catch up, since he has been gone for
a couple of meetings. He echoed Chairperson Royal's sentiments. He said that there is no
question in his mind that staff is headed in the right direction with respect to a
compensation-based performance program in replacing a system that should have been
replaced sometime ago. He stated, however, that he too is concerned with implementing
the pay plan too hastily, given concerns raised in the employee survey. He indicated that
he would prefer to see some resolution to the position description issue before the new
plan is implemented.
Commissioner Christian indicated that he supports slowing the process to assure the new
pay plan is in order, particularly since it is significantly different from the existing
program. He noted that it is imperative an attitude of"change agents" is developed, and
urged that everyone work together on this change because it takes time to fully develop the
vision of the BWL.
Commissioner Creamer said that he appreciated the employee input regarding the
proposed pay plan. He noted that some changes have been made to the plan as a result of
employee concerns as well as concerns raised by a number of the Commissioners. He also
stated his belief that merit-based pay plans are essential and critical to moving companies
forward. He added that while he too has some concerns about the speed of implementing
the pay plan, he is convinced that whenever a significant change is made to a program of
this nature, there will be apprehension by employees. He expressed concern that there is
not a consistent performance appraisal process in place at the BWL. Commissioner
Creamer stated that it is essential for the BWL to move ahead with the new compensation
plan; and as it moves ahead, a few mistakes may be made as the new plan is a work in
progress.
Commissioner Murray stated that an earlier meeting lie was the only vote against the
compensation plan primarily due to a question on the ability for the BWL to effectively
measure performance. He pointed out that how an organization measures performance is
essential to an organization's health and success as compared to the early stages of a
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particular formula for merit pay. He noted that ultimately the Board's responsibility is at
the policy level, thus the General Manager and his team would be held accountable by the
Board for the effective implementation of$ie proposed total compensation plan. He
reminded that there are some substantial challenges ahead in order to accomplish this.
Inherently the implementation of such an effort would continue to be a work in progress.
He also noted that it is management's job to do this successfully, and to fail to do so
would be a very serious problem. Commissioner Murray said that at a policy level, the
proposed compensation plan has been refined meaningfully, and hie plans to support it.
Action: The resolution to adopt the new compensation plan for non-bargaining unit
employees was adopted by the following vote:
YEAS: Aquilina, Creamer, Murray, O'Leary, and Werbelow— 5
NAYS: Callen, Christian and Royal -3
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-6-3
BOARD MEETING SCHEDULE
RESOLVED, That pursuant to the provisions in Article II, Section 2.1 of the Board's
Rules of Administrative Procedure, the following dates for regular meetings of the Board
of Water and Light Commissioners for the ensuing six(6)months are hereby set.
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June 27,2000
2000
July 25 - Tuesday
August 22 - Tuesday
September 26 - Tuesday
October 24 - Tuesday
November 21 - Tuesday
December 12- 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.
RESOLVED FURTHER, That a notice of the meeting schedule be published in the
Lansing State Journal the week of July 3, 2000.
Motion by Commissioner Callen, seconded by Commissioner Christian, to adopt the
resolution.
Action: Carried unanimously
#2000-6-4
PAYMENT IN LIEU OF TAXES TO THE CITY
RESOLVED, That the Board pay $6,429,067 to the City of Lansing pursuant to our
agreement dated June 30, 1992.
RESOLVED FURTHER, That all Receiving Fund cash and investments remaining
following the above payment be transferred effective June 30, 2000 to the Special Project
Fund for future capital projects.
Motion by Commissioner Callen, seconded by Commissioner Aquilina, to adopt the
resolution.
Discussion: The agreement with the City ends June 30, 2002, unless extended in writing
by the Commissioners and the City Council.
Action: Carried unanimously
Commissioner O'Leary left the room at 6:00 p.m.
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#2000-6-5
BUSINESS PLAN FOR 2001
RESOLVED, That the Board of Water and Light Business Plan for 2001 be adopted. The
proposed Business Plan is for the fiscal year ending June 30, 2001.
--------------------
The last page of the Business Plan is a draft of BWL Corporate and Process
Measures. The measures have not yet been finalized and are for inforniation only
at this time. The corporate measures will be reviewed and recommended by the
employee performance measures committee to the Share the Success management
committee. The management committee's final recommendation will be
forwarded to the General Manager for approval. The amount available for Share
the Success payments will be determined by the Commissioners at the July 2000
Board Meeting.
Motion by Commissioner Christian, seconded by Commissioner Callen, to adopt the
resolution.
Action: Carried unanimously
#2000-6-6
FEES FOR CONTRACTOR INSTALLED RESIDENTIAL WATER SERVICES
RESOLVED, That fees for residential water services installed by contractors be adopted,
effective July 1, 2000, as follows:
Fee Description When Applied Proposed Fee
Permit Application Iiutial Request $250
Annual Penn it(see Board amendment Annually $150
below
Service Site Inspection Each Site Visit $75
Standard Service Meter Set As Required $132
Back Flow Prevention Meter Set As Required $253
Split Service Meter Set As Required $224
--------------------
Fees for contractor installed residential water services are new fees, which cover BWL
costs associated with the Water Customer Choice Program adopted by Board resolution
#2000-5-7.
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June 27,2000
Fees will cover BWL costs of assessing contractor qualifications and quality of work for
approval to install residential water services, annual administration and review, inspection
of work and installation of meter sets.
Motion by Commissioner Creamer, seconded by Commissioner Christian, to adopt the
resolution.
Discussion: In response to Commissioner Werbelow's inquiry, General Manager Pandy
clarified that the fees will recover costs incurred associated with allowing contractors to
install residential services. The fees are in addition to what the owner pays the contractors.
Marketing Director Clyde Dugan noted that the reason for an annual permit fee is to
prequalify contractors to eliminate the need to prequalify them for each service
installation. Following discussion, the Commissioners consented to a friendly amendment
to the resolution by changing the second line of the Fee Description column as follows:
Annual CONTRACTOR'S QUALIFICATION PERMIT FEE.
Action: Carved unanimously, as amended.
#2000-6-7
BULK WATER SALES—HYDRANT USAGE FEES
RESOLVED, That the BWL charges for water hydrant usage and pool filling be
established, effective July 1, 2000, as follows:
Hydrant Usage
Schedule of Fees
(Effective 7-9-00)
Permit application fee $120.00
Consumption fee:
1" RPZ (to serve 1" and smaller connections) $25.00 per month
2" RPZ (to serve 1'/2-2" connections) $50.00 per month
(*per month, or any portion thereoj)
Hydrant Usage Non-compliance Fee $250.00
(Refundable at expiration of permit contingent on
proper hydrant usage)
Water Theft Penalty Fee (see Board amendment below) $500.00 1 st occurrence **
(**Further violations may be prosecuted to the fullest
extent of the law)
Any changes of location to include a different hydrant must be approved by the Board
of Water and Light in advance of the change, in order to prevent a non-compliance
fee.
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Additional Purchase Items
RPZ Purchase Cost
1" $223.00
2" $418.00
Hydrant Wrench Purchase Cost $22.00
Permits will be valid from April 1 — October 31 of each year.
POOL FILL FLAT RATE $195.00
Motion by Commissioner Christian, seconded by Commissioner Callen, to adoptthe
resolution.
Discussion: In response to an inquiry made by Commissioner Werbelow, General
Manager Pandy clarified that fees for bulk water sales are designed to deal with customers
who purchase bulk water from a hydrant. The fee schedule provides a set of rates
applicable for the use of hydrants to fill a tank truck or other hydrant uses, such as at a
construction cleanup site; i.e., a contractor may want to use a hydrant to wash a road or
clean up dirt that has gathered on a road surface. The fee schedule is an attempt to
delineate BWL fees and rates for those types of services. Mr. Pandy noted that the
Consumption Fee is a rate for getting water connected based on the size of connection,
which would be either a 1-inch or 1-1/2 to 2-inch size, together with a commodity charge.
The customer also pays for the water used, based on the BWL's retail rate. He reported
that fees are being updated to reflect the BWL's actual cost of providing such services; the
fees and charges will be updated annually. Marketing Director Clyde Dugan gave a
historical overview of bulk water sales and hydrant usage. In response to Commissioner
Royal's question, Mr. Dugan clarified that the Hydrant Wrench Purchase Cost of$22.00
establishes a flat rate for the BWL to provide a special hydrant wrench--adapted for
hydrants on the BWL system.
Commissioner Murray asked about the governance role of the BWL relative to
prosecutorial discretion. General Manger Pandy responded that the Water Theft Penalty
Fee is intended for the BWL to levy$500.00 for the first occurrence, and then if someone
repeats the incident, the BWL would file charges for theft. Staff Attorney Wilhite added
that generally the State is the complaining party of the criminal matter. He noted that there
is a statute on meter tampering, theft and related issues. The BWL would make the
complaint to the prosecutor. Commissioner Murray noted that if the intent is to charge
another $500.00 fee for a second incident of theft, the resolution should be modified.
Motion: Following discussion, it was moved by Commissioner Murray and seconded by
Commissioner Callen to propose a friendly amendment to the Water Theft Penalty Fee as
follows: $500.00 1'PER occurrence. Fuf4her Violations ___ b t a + the fuller
ro5cc'a'cca-co cnc-roix��
� r
-yen*of 4he!a ANY VIOLATION OF THIS POLICY MAY ALSO BE REPORTED
TO THE PROSECUTOR'S OFFICE.
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Action: Carried unanimously
Commissioner Callen suggested that for future fee schedule changes, it would be helpful
for the Commissioners to receive a comparative list of fee changes showing the current
and proposed fees.
#2000-6-8
WELLHEAD PROTECTION PLAN
RESOLVED, That the Board approve the City of Lansing Wellhead Protection Program
Plan as provided to the Commissioners under separate cover.
--------------------
The Wellhead Protection Plan will serve as a guidance document for protection of the
region's groundwater resource from contamination and misuse. It was developed through
the cooperative efforts of the Tri County Regional Planning Commission, the Groundwater
Management Board, the Board of Water and Light; the Citv of Lansing, Michigan State
University, the Michigan Department of Environmental Quality, the Ingham County
Health Department, and Delhi Township.
Motion by Commissioner Callen, seconded by Commissioner Creamer, to adopt the
resolution.
Action: Carved unanimously
2000-6-9
EMPLOYEE BENEFITS OPTION PLAN—2000-2001
WHEREAS, The Share the Success (STS) Employee Benefits Option Committee has
reviewed and researched numerous options for the Share the Success bonus program. The
option package has administrative costs only, while providing employees the opportunity
to purchase additional fringe benefits.
RESOLVED, That the final recommendations submitted by the STS Employee Benefits
Options Committee be approved:
I. Options available through the "Whatif' Program
1. Purchase of Vacation * No change
2. Purchase of Free Choice * No change
3. ICMA "Deferred Compensation Plan" No change
4. ICMA "Roth IRA" **** New Option
5. FSA(Flexible Spending Account) *** No change
6. Charitable Contributions ** Lansing Board of Water& Light Fund
Ele's Place "A healing center for grieving children"
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II. Options available through Human Resources
7. Long Term Disability Program Annual enrollment for"buy-up"option changes
8. UNUM Term Life Insurance Annual enrollment for changes
9. Cancer,Intensive Care, Voluntary Annual enrollment for changes
Indemnity(previously called Direct Cash
Supplement), Accident Expense AFLAC Plans
* Purchase of Vacation and Free Choice will be limited to ten (10) total days to include no
more than two (2) Free Choice Days.
** To lower administrative costs, all checks less than $5.00 will be defaulted to the charities
options. Opt out procedures will be available for employees declining the default.
*** Maximum annual contribution for health care expenses is $7,500 and dependent care
maximum is $5,000 (see IRS rules).
**** Lump sum and/or continued payroll deduction.
Motion by Commissioner Murray, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously
#2000-6-10
CAPITAL BUDGET INCREASE
—ALLEGAN STREET STEAM MAIN PROJECT
RESOLVED, That the BWL Capital Budget for fiscal year 2000 be increased $145,000
and the Capital Budget for fiscal year 2001 be increased $1,517,000 to accommodate the
following project:
Project Project Cost FY 00 Expenditures FY 01 Expenditures
Allegan St. Steam Main $1,662,000 $145,000 $1,517,000
This project will replace the steam main on Allegan Street from Walnut to Pine and also
extend the main to Sycamore turning south on Sycamore to feed the State
Library/Museum. Replacement of this steam main section is recommended due to
concerns over the integrity of the existing steam main, which provides the only source of
steam to the State of Michigan complex on Allegan Street, coupled with the benefits of
doing this construction along with the Chilled Water mains.
In addition to serving the State Library/Museum, the extension of the steam main from
Allegan and Pine is a one-year advancement of work required to supply steam service to
the Hall of Justice Building on Martin Luther King Blvd. A portion of a $1,025,000 total
Contribution-ul-Aid is allocated to this work. Construction of the Chilled Water mains
14:33 JUN 30, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #92691 PAGE: 16120
Page 70 Board Minutes
June 27,2000
along the same route provides an opportunity for cost savings including reduced street
work exposure.
Motion by Commissioner Murray, seconded by Commissioner Werbelow, to adopt the
resolution.
Action: Carved unanimously.
UNFINISHED BUSINESS
Review Implementation of Rate Increases
At the request of Commissioner Royal, the rate increase implementation schedule
approved at the May 23, 2000, meeting was placed on the agenda for reconsideration.
With two Commissioners having been absent, she deemed it appropriate to bring up this
matter for discussion.
General Manger Pandy reported that the original recommendation considered at the last
meeting had an August 10, 2000, effective date. City officials have requested that BWL
consider postponing its rate increases until January 1, 2001, to mitigate the effect of the
sewer rate increase for customers on a fixed income. The City is implementing sewer
rate increases by S percent effective July 1, 2000. Mr. Pandy noted that if the
Commissioners prefer to move the effective date of BWL rate increases to January It,
subsequent increases would also be moved to January I", rather than an August to August
cycle for the second and third years. An analysis prepared by Chief Financial Officer
Dana Tousley was provided to the Commissioners showing the financial consequence of
deferring the five-month time period to January 1, 2001. The analysis included a
calculation of revenue increases needed in the next two years in an attempt to keep the
BWL whole in terms of revenues received over the three-year period. A comparison was
provided on the impact if the BWL adjusts the rate increases to make up the revenue loss
in the same three-year period. Calculations of resulting revenue increases in percentages
for each year were also reviewed.
Mr. Tousley reviewed the planning and budgeting process that takes place to determine if
rate increases or bonding should be considered.
Commissioner Royal expressed concern with the BWL's lack of coordination with the
City on rate increases. She noted that the impact of simultaneous BWL and City rate
increases could be problematic to residential ratepayers on tight budgets. She indicated
her preference to review and adjust rates annually for smoother, inflationary-type of
adjustments, rather than three years of rate increases followed by no increases in
subsequent years.
Following discussion, there was consensus among the Commissioners to move to a
January time frame for annual increases. An advantage to shifting rate increases to
January is that it may help diminish the misunderstanding among ratepayers that the
increase to sewer rates is the responsibility of the BWL, when in fact it is not.
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Board Minutes Page 71
June 27, 2000
In response to Commissioner Creamer's question relative to possible legal unplications for
deferring rate increases five months from the date of a public hearing, Staff Attorney
Wilhite opined that to move rate increases back by five months would not damage
anyone's due process rights.
42000-6-11
Resolution Authorizing Deferral of
Rate Increases for Water, Electric and Steam
until January 1, 2001
RESOLVED, That any rate increases considered for water, electric and steam shall be
deferred until January 1, 2001. Further, that the implementation period for future Board of
Water and Light rate increases shall be readjusted from August to a January time frame.
Moved by Commissioner Creamer, seconded by Commissioner Callen that the resolution
be approved.
Discussion: The public hearing set for Tuesday, July 11, 2000, at 5:30 p.m. for
comments on proposed rate changes will continue as scheduled. Mr. Pandy noted that the
decision to postpone the rate increases will have an impact on the BWL's net income.
Revised budget and financial targets will be presented for review at the next meeting.
Action: Carried unanimously.
NEW BUSINESS
None.
GENERAL MANAGER'S REMARKS
Capital Project Status Report. General Manager Pandy handed out a copy of the
Annual, Planned and Bonded Capital Projects status report as of May 31, 2000. He
reported that the only capital project number that requires some justification is 2000-006
(Purchase/Scrap Transformers). The reason for the justification is due to transformer
demand and costs to meet new customer service requests are higher than projections.
IIulett Road Pump Station and Reservoir Update. General Manger Pandy reported
that the Hulett Road Pump Station and reservoir are completed. This project is the 10
million gallon per day pump station and 2 million gallon underground storage reservoir
that is visible looking north from 1-96 west off the Okemos Road exit. The project has
one 16-inch raw water supply line and two 16-inch mains; one serves the Jackson National
Life Headquarters and Alaiedon Township, and the other serves Meridian Township and
Alaiedon District#2. The project cost to date is at$3.4 million as compared to the budget
estimate of$4.6 million, and it is expected to come in at the budget estimate when all
costs are charged to the project.
14:35 JUN 30, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #82691 PAGE: 18i20
Page 72 Board Minutes
June 27,2000
Report on Water Utility Financial Performance. At the request of Commissioner
Murray, General Manager Pandy handed out a brief analysis that explained the variance in
water operating income. Mr. Pandy reported that water operating income is
approximately $1 million less than budgeted (-47.2%), water revenue is down compared
to budget due to the following factors: (1)the Select Steel Corporation deal did not
materialize (-$-500,000), (2) water customer accounting and service expenses associated with
going to 24 hours/7 days per week of customer service operations, the water portion of the
new emergency phone system and the Bath Township meter reading not budgeted
(+$300,000), (3)the water portion of administrative/general expenses were higher than
budgeted, due to lower than expected transfers to fixed capital (+$100,000), and (4) the
water depreciation expenses were higher than budgeted (+$100,000). Mr. Pandy stated that
management is continuing to find ways to cut costs, increase sales, and increase rates.
Chiller Line Construction Schedule. General Manager Pandy handed out a map of the
chiller line work schedule for the first and second phases of the project. He reported that
both phases are under construction. The City of Lansing has approved a noise variance
allowing the BWL to work on the first part(Phase lb) and authorizing the BWL to work
from 6 a.m. to 8 p.m., including weekends. A similar variance request for the Phase-la
work will be the subject of a City Council public hearing on July17. Commissioner
Murray suggested that, in conjunction with the City, it would be helpful for the drivuig
public to see additional signage that communicates when downtown streets will be closed
and reopened. Mr. Pandy agreed to follow up with the Public Service Department to
discuss this concept.
Report on the Steam Main Rupture. General Manager Pandy reported that the 20-uich
steam main feeding into General Motor's (GM) Plant#6 has suffered a severe failure on
Tuesday morning (6/27/00) at approximately 6:00 a.m. The operation of the 20-inch
steam main has been plagued with problems due to various leaks at joint locations. A map
was displayed showing the location of the steam main and the problem areas. In the
interest of public safety, South Martin Luther King, Jr. Blvd near Olds Avenue and
Williams Street was closed after the leak blew a large hole u1 the ground along the steam
main. There were no injuries. Mr. Pandy reported that arrangements for the rental of
portable boilers to cover the Plant 46 steam load are in process. Assistant General
Manager Bill Cook reported that the steam supply to Plant#6 is being halted at
approximately 8:00 p.m. (6/27/00), which will create production problems for GM. He
outlined efforts underway in dealing with this issue and the action plan. He also reported
that experts have been hired to analyze the design of the steam main and to determine the
cause of the joint failures. Mr. Cook briefed on the financial implications to repair the
steam main. Mr. Cook noted that to repair the large break and if all 24 expansion joints
need to be replaced, the cost could exceed $5 million, depending on the final plan to be
adopted. The cost to the BWL to rent portable boilers for three months (July through
September)_to cover the Plant#6 steam load this summer is expectedto total $500,000.
General Motors to Construct a New Plant in Delta Township. General Manager
Pandy reported that General Motors (GM)has announced they will build a vehicle
manufacturing complex in Delta Township. The second major production facility
launched in the Lansing area this year as part of GM's global manufacturing strategy. The
complex will consist of a body shop, paint shop and general assembly facility; a regional
14:36 JUN 30, 2200 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #82691 PAGE: 19/20
Board Minutes Page 73
June 27, 2000
Metal Fabricating Division metal center; and a central utilities complex to serve the site.
The BWL will be providing service to GM in Delta Township, serving an approximately
30MW load.
REMARKS BY COMMISSIONERS
None.
EXCUSED ABSENCES
There being no objection, Commissioner O'Leary(who left the meeting at 6:00 p.m.) was
excused.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT
SUBJECT.
BWL employee Joseph Davis, President of IBEW, Local 352, commended Richard
Taylor for standing up and making his comments regarding the new compensation plan.
Mr. Davis advised the Board that a special conference call is scheduled with the Michigan
Employment Relations Commission on Friday, June 3dh with regard to the IBEW
representing the Clerical-Technical group. He stated that he was hoping the Board would
have delayed action on the new pay plan until concerns raised by some employees had
been satisfied.
Richard Taylor stated that one thing he did not mention in his earlier remarks to the Board
was that according to the April and May 2000 Board minutes, the Techncal Skill Family,
Grades I through 6 would be set at the 65`h percentile rather than the 50"'percentile. He
noted that in reviewing his "blue sheet," on job and compensation information, his new
market rate was set at 60%.
ADJOURNMENT
On motion by Commissioner Murray, seconded by Commissioner Werbelow, the meeting
adjourned by unanimous consent at 7:08 p.m.
Is/Mary E. Sova, Secretary
Filed June 30, 2000
14:36 JUN 30, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #82691 PAGE: 2O/2O
Board Minutes
Page 74 June 27,2000
Marilynn Slade, City Clerk
Page 38
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT s
r _..... i._-t
Tuesday, May 23, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing,Michigan. The meeting was called to
order by Chair Diane Royal.
Present: Commissioners Rosemarie E. Aquilina, Ernest J. Christian, Charles M.
Creamer, Mark A. Murray, David O'Leary, and Diane R. Royal.
Absent: Commissioners Ronald C. Callen and Judson M. Werbelow.
The Acting Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Creamer, to
approve the minutes of regular session held April 25, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Fred Porter from the NAACP, 3700 West Holmes, spoke on surveys conducted on
governmental agencies goods and services purchased. He made reference to a letter from
the BWL dated March 24, 2000, and commended the Board on what it intends to do.
However, he expressed disappointment on the low percentage of minority vendors being
utilized by the BWL.
Brenda Hanford, 3631 Birchfield Dr., spoke regarding her utility bill. She and her
husband have been trying to get on an equal monthly payment plan with the BWL and it
has been denied.
Board Minutes Page 39
May 23,2000
Dick Taylor, BWL Test Group, spoke on the BWL Compensation Plan that was approved
at the Committee of the Whole, and is to be voted on this evening. Mr. Taylor feels that
there are still many unanswered questions on this plan. Several of the requests that he
made at the Board Meeting of April 25, 2000, have not yet been addressed.
COMMUNICATIONS
An anonymous letter was received regarding the proposed pay plan for non-union
workers, and a resolution approving taking $3.2 million a year, for the next 20 years,
from the defined benefit pension plan.
Received and placed on file.
REPORTS OF COMMITTEES
#2000-5-1
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on May 9, 2000, to discuss and consider the following
items:
1. Fiscal Year 2000-2001 Budget
2. Rate Review for Electric, Water and Steam Utilities
3. Compensation Plan
4. Consolidated Utility Policies and Customer Choice
Present were Commissioners Aquilina, Christian, Creamer, Murray, O'Leary, and
Werbelow. Absent and excused were: Commissioners Callen and Royal.
Fiscal Year 2000-2001 Budget.
Chief Financial Officer Dana Tousley presented details of the preliminary budget by
process for FY 2000-2001. He reviewed the history of rate increases,projected income
statement and sales and revenue forecast.
Following discussion, the Committee concurred with the proposed budget as submitted.
A resolution for the adoption of the FY 2000-2001 is included in the General Manager's
Recommendations for consideration at the regular meeting of May 23, 2000.
Page 40 Board Minutes
May 23,2000
Utility Rate Review.
Chief Financial Officer Dana Tousley presented an overview of the FY 2000-2001 annual
rate review process and the BWL's financial condition. He reported that additional
revenue is needed to reinvest in the system. Rate adjustments need to be considered for
the electric, water and steam utilities. Options reviewed included:
Water Rates
Fiscal Year Option 1 Option 2
2001 7% 5%
2002 6% 5%
2003 5% 5%
Electric Rates
Fiscal Year Option 1 Option 2
2001 5% 3%
2002 2% 3%
2003 2% 3%
Steam Rates
Fiscal Year (Central District Only)
2001 1%
2002 1%
2003 1%
Staff agreed to present additional rate information for electric and water increases for
review at the regular meeting.
The Committee voted unanimously to recommend the setting of a public hearing date of
July 11, 2000, to consider proposed rate adjustments for electric, water and steam. This
item is included in the General Manager's Recommendations for consideration at the
regular meeting of May 23, 2000.
Miscellaneous Fees and Charges.
General Manager Pandy presented an overview of various fees and charges associated
with trenching, site inspections,pole attachments, and other related services. It was noted
that some of the fees and charges have not been revised in a number of years.
Following discussion, the Committee voted unanimously to recommend approval of the
changes to the electric and water fees and charges in the form presented. This item is
included in the General Manager's Recommendations for consideration at the regular
meeting of May 23, 2000.
Compensation Plan.
General Manager Pandy and Human Resources Director Linda Gardner presented an
overview of the history and the fundamental approach of the new compensation plan for
non-bargaining employees. The new pay structure includes two major components: base
pay and variable pay. Base pay for each skill family is competitive with the market. Pay
Board Minutes Page 41
May 23,2000
ranges will be adjusted annually, based on market surveys. Variable pay is compensation
above base pay. It must be re-earned each year,based on performance results on
achievement of annual objectives. Variable pay includes multiple components based on
the balanced scorecard concept, consisting of the following incentives:
Corporate: Corporate measures and results.
Process: Measures and performance results for each of the processes.
Individual: Individual employee performance.
Six employees spoke during the Public Comments portion of the meeting to express their
concerns regarding the salary survey, performance appraisal system and retaining skilled
and technical employees at the BWL.
Following discussion, the Committee of the Whole voted, five to one, to take from the
table the Resolution to Adopt the New Compensation Plan for Non Bargaining Unit
Employees, as amended and attached to this Report, for consideration at the regular
meeting on May 23, 2000. (YEAS: Aquilina, Christian, Creamer, O'Leary, Werbelow.
NAYS.- Murray. ABSENT: Callen, Royal)
Consolidated Utility Policies and Customer Choice.
General Manager Pandy reported on a new approach for water system extensions to
provide timely service to customers and reduce costs. The continuing expansion of the
water utility retail service area has resulted in significant additional required work effort
in the primary areas of engineering, records management and construction. Although
these impacts are funded by customer charges and contributions in aid of construction,
new and innovative ways of doing business are required to meet the market demand for
retail water service without increasing installation delays and backlogs and without
increasing BWL exposure to unrecovered costs. A team from the Delivery and
Marketing processes explored and analyzed the impact and options available to meet the
challenges. The team concluded that the BWL should develop a process that will allow
"customer choice" for service installations and watermain installation on customer sites.
Customer choice provides the customer the option of choosing whether to have qualified
contractors, or plumbers install water system components within the requirements of the
BWL for same, or have the BWL install at a defined cost.
Following discussion, the Committee voted unanimously to recommend the approval of
the proposed Customer Choice program. This item is included in the General Manager's
Recommendations for consideration at the regular meeting of May 23, 2000.
Submitted by:
Charles M. Creamer, Chair Pro
Committee of the Whole
Page 42 Board Minutes
May 23,2000
Discussion: General Manager Pandy read the three new amendments made to the
resolution on the new Compensation Plan. Commissioner Murray appreciated staff
considering his concerns expressed in the Board Meeting of April 25, 2000.
Commissioner Royal expressed her concern about the performance criteria not being
formulated to this date.
Motion by Commissioner Creamer, seconded by Commissioner O'Leary, to receive the
Committee of the Whole Report.
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-5-2
APPROVAL OF UNION CONTRACT
WHEREAS, the Board of Water and Light(BWL) and the International Brotherhood of
Electrical Workers (IBEW) Local 352 recognize the critical and ongoing need to improve
customer service and reduce cost. As part of this labor agreement, the BWL and IBEW
Local 352 are committed to a partnership;working together to improve the BWL's ability
to compete in a rapidly changing marketplace.
RESOLVED, That the four-year agreement reached between Management and the Union
Negotiating Committee is retroactive to November 1, 1999, unless otherwise designated
in the agreement, and is hereby approved. The labor agreement is to expire at Midnight,
October 31, 2003.
RESOLVED FURTHER, That the Chair and the Secretary be authorized to sign the labor
agreement incorporating the settlement changes. An executive summary of major issues
resolved is attached. (See Attachment C.)
Motion by Commissioner Christian, seconded by Commissioner Creamer, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-3
EXTENSION OF COAL SALES AGREEMENT
RESOLVED,that the current coal requirements agreement dated June 26, 1996 for
Moores Park Steam Plant between BWL and Lodestar Energy be extended six (6)
months, starting October 1, 2000 and ending March 31, 2001 at a reduction in price of
6.3%.
Board Minutes Page 43
May 23,2000
In consideration of the contract extension, Lodestar has agreed to provide not less than
35,000 tons from 4/19/00 until 9/30/00 and not less that 35,000 tons from 10/1/00 until
3/31/01.
Motion by Commissioner O'Leary, seconded by Commissioner Christian, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-4
REVISION OF ELECTRIC FEES AND CHARGES
RESOLVED, that the BWL charges identified in the "Board of Water and Light Rules for
Electric Service" be revised, effective June 1, 2000, as follows:
ELECTRIC FEES and CHARGES
Charge Description When Applied Proposed Previous Last Revised
Charge Charge
Residential line extensions Greater than 600 ft At cost $2.10/ft May 22, 1989
Winter Construction charge December 15— $8.50/trench ft $6.00/trench May 22, 1989
March 1 ft
Site Inspection When applicable $75 ea. $15 ea. May 22, 1989
Residential direct-buried When requested by $4.00/trench ft $2.40/trench May 22, 1989
service customer ft
$200 minimum
Commercial direct-buried When requested by $4.00/trench ft $2.40/trench May 22, 1989
service customer ft
$200 minimum
$100
minimum
Riser pole charge When requested by $250 ea. $75 ea. May 22, 1989
customer
Temporary service overhead Install&remove $185 ea. $65 ea. May 22, 1989
service drop, 100 ft
max
Temporary underground When requested by $350 ea. $80 ea. May 22, 1989
customer,
(Normal)
Connection&
Page 44 Board Minutes
May 23,2000
disconnection only
April 15—November
1
Temporary underground When requested by $350 ea. $215 ea. May 22, 1989
customer,
(Winter)
Connection&
disconnection only
November 1 —April
15
Joint trench charges To other utilities $1.70 if 3 joint $1.75/ft
users summer
$2.55 if 2 joint $2.75/ft
users winter
Winter charge (may include
may also apply. winter charge
also
The Electric Fees and Charges are brought up to date to reflect the BWL's actual cost of
providing such services. Many of these fees have not been updated since the late 1980's.
In the future, these fees and charges will be updated annually.
The updating of Electric and Water Fees and Charges will positively impact BWL capital
requirements by increasing the expected contribution in aid received from new customers,
thus reducing BWL capital requirements by an estimated$75,000 in Fiscal 2001.
Discussion: Commissioner Aquilina inquired if the changes in fees and charges need to
be part of the Public Hearing. Chief Financial Officer Dana Tousley responded that the
fees do not affect the price of electric, water or steam.
Commissioner O'Leary noted that the water, electric and steam rates, as proposed, may
be changed after the Public Hearing.
Motion by Commissioner Aquilina, seconded by Commissioner O'Leary, to adopt the
resolution.
Action: Carried unanimously.
#2000-S-S
REVISION OF WATER FEES AND CHARGES
RESOLVED, that the BWL charges for Water service and hydrant construction and
operation be changed, effective June 1, 2000, as follows:
Board Minutes Page 45
May 23,2000
WATER FEES and CHARGES
Charge Description When Applied Proposed Previou Last
Charge s Revised
Charge
Water Main Installation Unimproved road w/fire $27.10/ft $27.10/ft Apr 20,
Charges, 6"& 8", larger coverage, (1/2 amount= 1999
sizes by agreement Frontage Fee,if not
previously collected)
Improved Roads Estimated 15%adder Dec 31,
Cost 1996
Fire Hydrant installation Charged on mains 12"& $2,165 ea. $2,015 ea. Apr 20,
charge smaller 1999
Up to and Incl. 1"Main-to- $850 ea. $850 ea. Apr 20,
Curb Box 1999
Water Services Up to and incl. 1"Curb $15.10/ft $14.67/ft Apr 20,
Box-to-Building 1999
(Connection Fee applicable) Up to and incl. 1"split $350,ea. $135 ea. Jan 1, 1994
irrigation service
Greater than 1"Main-to- Firm price Firm price Jan 1, 1997
Curb Box quote quote
Greater than 1"Curb Box- Firm price Firm price Jan 1, 1997
to-Building quote quote
Greater than 1"split Firm price Firm price Jan 1, 1997
irrigation service quote quote
Winter Construction Water Services,2"and $12.50/ft $3.00/ft
under adder adder
Additional charges Frontage Fees and split Firm price Firm price
services other than quote quote
published sizes,restoration,
relocations,etc.
Page 46 Board Minutes
May 23,2000
Frozen meter charge 2"d occurrence,or after 5/8" = $137 5/8" = $137 Oct 7, 1999
notice
3/4" = $150 3/4" = $150
1" = $175 1" = $175
1 %"= $426 1 %"= $426
2" =$598 2" = $598
The Water Fees and Charges are brought up to date to reflect the BWL's actual cost of
providing such services. In the future, these fees and charges will be updated annually.
The updating of Electric and Water fees and charges will positively impact BWL's capital
requirements by increasing the expected contribution in aid received from new customers,
thus reducing BWL capital requirements by an estimated$75,000 in Fiscal 2001.
Motion by Commissioner Creamer, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-6
POLE ATTACHMENT FEES
RESOLVED, that the BWL Pole Attachment fees be changed, effective June 1, 2000, and
previous Resolutions rescinded, as follows:
ELECTRIC FEES and CHARGES
Charge Description When Applied Proposed Charge Previous Last Revised
Charge
Joint Use and Third Party, At cost At cost Various
make ready Agreements
Pole Attachment fees Annual fee $9.75 per $4.95 per January 1,
attachment pole 1987
$200 minimum $60
minimum
Application deposit, $15 per pole $15 per pole January 1,
credited to make ready 1987
costs $300 minimum $100
minimum
Board Minutes Page 47
May 23,2000
The Pole Attachment fees are brought up to date to reflect the BWL's cost of providing
such service.
The updating of the Pole Attachment fees are expected to generate an additional $120,000
in revenue in Fiscal 2001.
Motion by Commissioner Christian, seconded by Commissioner Murray, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-7
CUSTOMER CHOICE FOR WATER'SERVICE & MAIN INSTALLATIONS
RESOLVED, That BWL will allow customer choice for water service and main
installations on customer sites. Customer choice will allow qualified contractors and/or
developers to construct water system installations that meet B WL specifications and
construction standards; the water system installations constructed in this manner will
become assets that are owned by the BWL.
RESOLVED FURTHER, That fees be assessed to recover the cost of ensuring
compliance with these specifications and standards.
Motion by Commissioner Creamer, seconded by Commissioner Murray, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-8
PROPOSED RATE SCHEDULES
RESOLVED, that the proposed water, electric, and steam,rate schedules listed below and
detailed in the attached proposed rate schedules be made the subject of a public hearing
prior to further consideration by the Board of Commissioners. (See Attachment A—
appended to minutes).
Adopted Effective
Water Utility
Rate No. 1 —Residential Water Service 09/27/94 10/15/94
Rate No. 2—Commercial &Industrial Water Service 10/21/93 01/01/94
Rate No. 3 —Water System Connection Fees 07/29/97 09/01/97
Page 48 Board Minutes
May 23,2000
Rate No. 4—Fire Service and Fire Hydrant Charges 12/21/93 01/01/94
Rate No. 5 —Lawn Sprinkling Water Service 12/21/93 01/01/94
Lansing City Enterprise Community Rebate 11/26/96 01/01/97
Electric Utility
Rate No. 1 —Residential Electric Service 11/26/96 01/01/97
Rate No. 2—Residential All-Electric Service 11/26/96 01/01/97
Rate No. 3 —General Electric Service 11/26/96 01/01/97
Rate No. 4—Large General Electric Service 07/29/97 09/01/97
Rate No. 5 —Primary Electric Service 07/29/97 09/01/97
Rate No. 7—Municipal Water Pumping Electric Service 11/26/96 01/01/97
Rate No. 9—Outdoor Lighting Service 01/26/99 02/01/99
Rate No. 10—Process Heating Electric Service 07/29/97 09/01/97
Rate No. 11 —Traffic Light Service 11/26/96 01/01/97
Rate No. 12— Space Conditioning and Electric Water Heating 11/26/96 01/01/97
Service
Rate No. 21 —Residential Electric Service—Senior Citizen 11/26/96 01/01/97
Rate No. 31 —Street Lighting Service—Board Owned Systems 01/26/99 02/01/99
Rate No. 32—Street lighting Service—Customer Owned 01/26/99 02/01/99
Systems
Economic Development Rider 11/26/96 01/01/97
Lansing City Enterprise Community Rebate 11/26/96 01/01/97
Proposed Renewable Energy Rider(Green Power)
Board Minutes Page 49
May 23,2000
Steam Utility
Rate No. 1 —General Steam Service 12/20/94 01/13/95
Lansing City Enterprise Community Rebate 11/26/96 01/01/97
Rate No. 1 —General Chilled Water Service 03/26/91 04/15/91
FURTHER RESOLVED, that a public hearing to solicit public input on this matter be set
for Tuesday, July 11, 2000 at 5:30 p.m., in the Board of Water and Light Offices at 1232
Haco Drive. Also that the Corporate Secretary be directed to file with the City Clerk
information regarding pending changes in the rate structures on or before May 26, 2000.
Discussion: The Commissioners discussed the proposed options for electric, water and
steam. Mr. Pandy showed slides giving a history of rates, and indicating why the Board
of Water and Light is asking for a rate increase. He reported that the City plans to raise
sewer rates and City Officials have asked the BWL to hold off on the rate increase until
January 1, 2001. Mr. Pandy explained that waiting until January 2001 would result in
about$1.95 million revenue loss for the five months. Commissioner O'Leary inquired as
to how the new deregulation bill would affect the electric rate increase. Mr. Pandy
announced that the deregulation bill passed the Senate today by a vote of 25 to 12. The
BWL remains exempt from Public Service Commission rules; all BWL rates are the
authority of the Board of Commissioners. Even with a rate increase, BWL rates remain
below those of Consumers Energy and Detroit Edison. Discussion ensued on how
levelized rates affect cash flow and the cost of postponing the rate increases.
Motion by Commissioner Royal, seconded by Commissioner O'Leary, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-9
FY 2001 BUDGET
RESOLVED, That the annual budget covering Fiscal 2000-2001 be approved as
presented. (See Attachment B.)
FURTHER RESOLVED, That capital projects are authorized in the amount of the project
estimate. Capital expenditures for fiscal 2000-2001 are limited to the amount included in
the budget.
Page 50 Board Minutes
May 23,2000
Motion by Commissioner Creamer, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously.
UNFINISHED BUSINESS
#2000-5-10
Resolution to Adopt New Compensation Plan for Non-Bargaining Unit Employees
WHEREAS, Dorey, Reagan&Associates (consultant)was engaged by the BWL
(Resolution 92000-1-4) to assist staff with the following goals:
1. Recommend and implement changes to the Non-Bargaining Unit
compensation plan.
2. Align the compensation system with a process-based organization.
3. Provide information enabling the BWL to design pay strategies,
which are market driven.
The last redesign of the BWL compensation system was conducted in June, 1980.
WHEREAS, Staff and the consultant presented details of the new compensation plan for
Non-Bargaining Unit employees with recommendations regarding changes.
WHEREAS, as discussed by the Personnel Committee on October 27, 1999, and
approved by the Board, the Board of Water and Light base pay in relation to market is
established at the 50`h percentile.
WHEREAS, The internal equity issue related to the Technical Skill Family, Grades 1
through 6, was reassessed, especially in relation to the Bargaining Unit.
RESOLVED:
1. That the report on the new BWL Compensation Plan for Non-Bargaining
Unit employees, submitted by Human Resources and consultant Dorey,
Reagan &Associates, dated April 4, 2000,be received and filed.
2. That based on staff analysis and subsequent review by the Board, the
market rate for the Technical Skill Family--Grades 1 through 6--be
established at the 65th percentile of the grade range.
3. That the 5% over maximum limit for Non-Bargaining Unit Employee
increases be lifted for FY 1999-2000 only. This qualifies Non-
Bargaining Unit Employees for a one-time variable pay increase that may
exceed the maximum.
Board Minutes Page 51
May 23,2000
4. That the individual variable pay amount be offered in a lump sum rather
than being spread over 26 pay periods.
5. That the General Manager be authorized to implement the recommended
changes to the salary ranges and pay structures as set forth in the report
on skill families effective July 1, 2000.
6. That 3.5% of the Non-Bargaining Unit employee payroll be budgeted for
FY 2000-2001 to be used for performance increases,based on variable
amounts, effective July 1, 2000.
7. That the General Manager be authorized to implement a variable pay
plan for the non-bargaining unit employees for FY 2000-2001 with the
following components:
Maximum Variable Pay Percenta
Corporate Share The Success Base
Process Performance Results 2.5%
Individual Performance Incentive 5.0%
7.5%
8. That the General Manager be authorized to pay employees with skills and
experience which are critical to the BWL at base pay levels above the
50'h percentile. These exceptions shall be reviewed in consultation with
the Assistant General Manager and Director of Human Resources.
9. That in order to emphasize the importance of performance appraisals and
feedback for employees, all directors' and managers' individual incentive
pay for FY 2000-2001 shall have 5% of the total 7.5%variable pay
determined on the basis of the quality of performance appraisals
conducted by these directors and managers.
10. That the new compensation plan shall be set as a two-tiered system.
■ For new employees as of July 1, 2000,the market rate will remain
at the 50`h percentile of the market. The market rate will serve as
the cap of base pay.
■ For current employees, the cap of their base pay will be set at
10% above the market rate.
This proposed change allows for a gradual transition to the new plan and reduces the
percentage of employees above market rate by approximately 30%. Furthermore, it will
shift approximately $200,000 from variable to base pay, with an additional $30,000 for
pension and benefit costs.
Page 52 Board Minutes
May 23,2000
Motion by Commissioner Murray, seconded by Commissioner Creamer, to take the
proposed resolution for the Compensation Plan off the table.
Action: Motion to take off the table was carried unanimously.
Discussion Prior To Vote: Commissioner Christian expressed concern on the current
lack of an appraisal system. Human Resource Director Linda Gardner stated that the
appraisal system is in the process of being developed. She reported that Position
Description Questionnaires (PDQ's) are currently being used as job descriptions,but have
not yet been transferred to job descriptions. Commissioner Christian also asked Ms.
Gardner how many appeals had been received; she responded that 120 out of 316
employees had filed appeals, this equals about 42%. Commissioner Royal expressed
concern that she does not see the necessity of pushing this pay plan too quickly, but
would rather see the plan more in place before adoption. Mr. Pandy stated that this is a
continuous improvement plan which may not be totally in place in the beginning; the plan
will be ongoing and will change year after year.
The Chair called the question on the Resolution to Adopt the New Compensation Plan for
Non Bargaining Unit Employees, as amended.
Action: The resolution was not passed, as five affirmative votes of the total Board are
required for passage.
YEAS: Aquilina, Creamer, Murray, O'Leary- 4
NAYS: Christian, Royal—2
ABSENT: Callen, Werbelow -2
NEW BUSINESS
#2000-5-11
PROPOSED RESOLUTION TO OFFER THE ROTH IRA PROGRAM TO
EMPLOYEES
WHEREAS, The Board of Water and Light desires to provide a payroll deduction Roth
IRA Program to the employee pension options, and
WHEREAS, Roth IRA contributions may be made after withholding taxes up to an
annual contribution of$2,000.00, and
WHEREAS, ICMA manages the BWL's 457 Deferred Compensation Plan and offers an
IRS-approved Roth Program, and
WHEREAS, Prudential,which manages the BWL Defined Contribution Plan
investments, offers an IRS-approved Roth Program, and
RESOLVED, That the BWL is hereby authorized to offer payroll deduction to its
employees for Roth IRA options from both ICMA and Prudential retirement services.
Board Minutes Page 53
May 23,2000
RESOLVED FURTHER, That the Chief Financial Officer is directed to take such actions
as may be necessary to carry the Roth IRA Program into operation.
Discussion: Commissioners discussed the advantages and disadvantages of Roth IRA's.
Motion by Commissioner Christian, seconded by Commissioner Murray, to adopt the
resolution.
Action: Carried unanimously.
RESOLUTIONS
#2000-5-12
RESOLUTION HONORING JOHN ELASHKAR
WHEREAS, the Lansing Board of Water and Light Commissioners wish to honor John
Elashkar on the occasion of his retirement from the BWL on May 20, 2000, after more
than 30 years of outstanding service and exceptional achievements, and
WHEREAS, Hanna El-Ashkar had arrived in the United States of America as an alien
visitor with six months visa from his home in Deir Mimas, Merjeyoun, Lebanon and was
hired by the BWL in 1970 as a civil engineer, having graduated from the American
University of Beirut; and
WHEREAS, John Elashkar became a naturalized citizen of the United State of America
on October 28, 1976; and
WHEREAS, John Elashkar's professional competence as an engineer was recognized by
the BWL in a series of promotions, including:
1977 Supervisor/Civil &Architectural Engineer
1980 Superintendent of Project Engineering
1981 General Superintendent/Project Engineering
1986 Director of Engineering
Professional Engineer#24740; and
WHEREAS, John Elashkar's breadth of knowledge and technical skills were recognized
by the BWL in the fields of Information Systems, Environmental Services, Construction
Services, and Materials Services resulting in his promotion to Director of Technical
Services in 1990; and
Page 54 Board Minutes
May 23,2000
WHEREAS, John Elashkar's business judgment and managerial expertise were
recognized by the BWL in his promotion to Assistant General Manager in October, 1998;
and
WHEREAS, John Elashkar's intelligence, experience, and professional discipline has
contributed enormously to the citizens of the Greater Lansing Region in the provision of
reliable, efficient and safe electrical power, public water supply and thermal energy; and
under his leadership, BWL engineered and constructed over$443 million of capital
improvements; and
WHEREAS, John Elashkar's engineering skills permanently changed the skyline of
Lansing with construction of BWL's modern electrostatic precipitators and three power
plant chimneys towering 624 feet above the Eckert Power Station.
NOW THEREFORE BE IT RESOLVED, that the Board of Water and Light
Commissioners salute the many achievements, dedication, and professional competence
of John Elashkar.
RESOLVED FURTHER, that in keeping with his highest achievement, the Board of
Water and Light Commissioners do hereby designate and name the Eckert Power Station
Chimneys as "John Elashkar Monuments", and direct that a plaque commemorating his
career at the BWL be affixed at the Eckert Power Station in honor of John Elashkar's
many contribution to the well-being of our community.
Action: Resolution approved by consensus.
Retired Assistant General Manager John Elashkar expressed his gratitude to the Board of
Water and Light for his 30 years of employment. He said that he learned a lot, and
developed valuable friendships.
GENERAL MANAGER'S REMARKS
Chilled Water Contract—State of Michigan: General Manager Pandy announced
there is a signed agreement with the State of Michigan for Chilled Water. Construction
will begin this summer. The BWL will work with the City on a noise ordinance so that
work can be done from 6:00 a.m. until 7:00 p.m. Mr. Pandy expressed his appreciation
for the work of Clyde Dugan,John Elashkar, Sue McCormick, Jan Nelson, Dana Tousley
and Larry Wilhite, in securing this agreement.
Commissioner Christian asked for the time line of this project. Mr. Pandy said that
service will begin in the Spring of 2001.
Ottawa Station Update: General Manager Pandy handed out color-drawings showing a
rendering of the proposed Ottawa Station Redevelopment Project. The feasibility study
from Steiner and Associates has not yet been received.
Board Minutes Page 55
May 23,2000
REMARKS BY COMMISSIONERS
Commissioner Christian expressed his appreciation to John Elashkar for everything he
has done for the Board of Water and Light, and wished him well in his retirement.
EXCUSED ABSENCES
By Commissioner Christian, seconded by Commissioner Murray, that the absences of
Commissioners Callen and Werbelow be excused.
Adopted unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
Cathy Gorman, BWL Employee, expressed her appreciation on not passing the
Compensation Plan.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Creamer, the meeting
adjourned at 7:20 p.m.
Is/Rosemary Sullivan, Acting Secretary
Filed. May 30, 2000
Marilynn Slade, City Clerk
Board of Water and Light,Lansing,Mi an
Attachment A
PROPOSED
RESIDENTIAL ELECTRIC SERVICE
RATE NO. i
Availability- Ibis 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 unit 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-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate - Shall be computed in accordance with the following charges:
8/10/00 9/1/01 9/1/02
Basic Service Charge $3.50 $4.00 $4.25 per customer per month
Energy Charge Summer Billing Months of June through October
$.0580 $.0600 $.06300 per kWh for the first 500 kWh
$.0620 $.0641 $.0673 per kWh for all over 500 kWh
Winter Billing Months of November through May
$.0580 $.0600 $.06300 per kWh for the first 500 kWh
$.0603 $.0624 $.0656 per kWh for all over 500 kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Auxiliary Power Provision-Domestic customers desiring electric service as an auxiliary source of power to wind or
solar powered generating equipment may take service under this rate schedule under special agreement with the BWL.
The customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all
reasonable costs associated with any alteration of BWL equipment required for proper operation of the customer's
generating equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of
$.022/kWh delivered. Customers selling energy to the BWL shall pay a charge of$6.40 per month or part thereof instead
of the above Basic Service Charge.
Rules and Regulations - Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,L, ig,Michigan
Attachment A
This Rate is canceled
RESIDENTIAL ALL ELEC-T-PdG SERVICE
RATE TIQ'1TE NO.2
heating,AtftflfthjUfy This f4e is m,&i1able to afty single family or-multifafflily dwelling ef 4 units ef less"eft�he entir-e eleetfie
fequifements for water
Sefi,iee under this fate is fiet available te any single faffiily er-ffittftifth�nily dwelling ef 4 units ef:less'wheft a peFtietl ef the
dwelling unit is used far-eeffifflefeial,indttstr-ia4,or-r-esale pur-peses tiftless the wifing is se affanged that sefviee flaf
Nature of Serviee The sersiee is elternetingeuffent,60 heftz,single phase, 120 240 nafninal-:eltr
S3.20
$0.0543
$0.0580 per-1E Lh f f all , f 500!A�
p.,�
$0
A miff.. Bill The fflinimufn bill is the 1..sie s ehafge ineluded i the niefithly fate.
fees,Energy Cost �dj!!�._gpf This rate is subjeet te ffa Ener-gy Cost Adjustment faetef added te the abeve enefgy ehafges
TaNAdeustm-fit Bills shall be inef eased within the lifflits ef eny gevemfnental autherity ef pelitieal sub divisien whieh
levies taxes,heense fiEffiehise fees,
epefa4iaftf )
Delayed Pay.M=gpi�E!!@Egg A delayed payment ehafge ef 5%of the unpaid balaftee,exeluding delayed pffyffient
)
shall be added te any bill that is not paid ett of bef9r-e the due dftt-e-.
AppliegfienCObayfg-ge A$7.00 ehafge shall be added to the first fegulaf bill fer all ettstefnefs tuming en sef-viee a a
selaf:pelbrefed getterafing equipment may take senriee under-this fate sehedule undef speeial agfeementwith the BWL.
The eustenier-shall pey the eharges set fi3fth abeN,e. A etistafner-taking attmiliafy power-under-this f:ate sheR pay all
reasettable easts asseeiated with afty a4ter-alieft of BAIL equipment fequir-ed far-pfepef epeffftiefi of the eustefnef's
gefiefa4ing equipment ift pafallel with the B3Aq=systeffi. A eustefflef ffi&y eleet te sell enefgy te the BIAIL eA the rate a
Rules and Reg-!-!!gjjep!!._� Sef-viee under-this Fate is subjeet te the BlAq�Rules afid Regtfla4iens fef EleetFie Se
ineefpefated herein by this r-efer-eftee.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mi-' 'Ian
Attachment A
PROPOSED
GENERAL ELECTRIC SERVICE
RATE NO.3
Availability-This rate is available to any customer desiring secondary voltage service for any purpose when supplied at
one point of delivery through one meter. The limitation to secondary-voltage service may be waived in instances where
the character of the electric load at the premises served has changed substantially. This rate is not available for emergency
or standby service.
Nature of Service-The service is alternating current,60 hertz,single phase or three phase. The secondary voltage is
determined by the Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9/1/O1 9/1/02
Basic Service Charge $10 $12 $15 per customer per month
Energy Charge Summer Billing Months of June through October
$.690 $.0710 $.0740 per kWh
Winter Billing Months of November through May
$.0664 $.0683 $.0712 per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Metering-Where the BWL elects to measure the service on the primary side of the transformers,the metered kWh thus
measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives
service through more than one meter,the consumption as registered by the different meters will not be combined for
billing purposes,but will be computed and billed separately.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Auxiliary Power Provision-Customers desiring electric service as an auxiliary source of power to wind or solar
powered generating equipment may take service under this rate schedule under special agreement with the BWL. The
customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable
costs associated with any alteration of BWL equipment required for proper operation of the customer's generating
equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh
delivered. Customers selling energy to the BWL shall pay a charge of$12.46 per month or part thereof instead of the
above Basic Service Charge.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lr ig,Michigan
Attachment A
PROPOSED
LARGE GENERAL ELECTRIC SERVICE
RATE NO.4
Availability-This rate is available to any customer desiring secondary voltage for any purpose when the electrical
requirements are supplied at one point of delivery through one metering installation and the billing demand is 15 kW or.
more. The limitation to secondary-voltage service may be waived in instances where the character of the electric load at
the premises served has changed substantially. This rate is not available for standby or emergency services.
Nature of Service-The service is alternating current,60 hertz,single phase or three phase. The secondary voltage is
determined by the Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9/1/01 9/1/02
Basic Service Charge $30 $30 $32 per customer per month
Capacity Charge $8.60 $8.6D $8.75 Per kW for all kW of Maximum Demand
Energy Charge Summer Billing Months of June through October
$.0361 $.0383 $.0394 per kWh
Winter Billing Months of November through May
$.0330 $.0350 $.0360 per kWh
Reactive Power Charge 1 $0.008 per kvarh in excess of 50%of total kWh.
The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour(kvarh)metering installed in
accordance with BWL Rules and Regulations regarding power factor.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Billing Demand-The billing demand shall be the kW supplied during the 15-minute period of maximum use during the
month.
Metering-Where the BWL elects to measure the service on the primary side of the transformer,the metered kW and
kWh quantities thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one metering installation,the consumption as registered by the different
metering installations will not be combined for billing purposes,but will be computed and billed separately.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mir" 3n
Attachment A
PROPOSED
PRIMARY ELECTRIC SERVICE
RATE NO.5
Availability-This rate is available to any customer desiring primary voltage service when the electrical requirements are
supplied at one point of delivery through one metering installation(except as provided below for Multiple Delivery Point
Aggregation)and the billing demand is 100 kW or more. This rate is not available for standby or emergency service.
Nature of Service-The service is alternating current,60 hertz,three phase. The primary voltage is determined by the
Board of Water and Light(BWL).
Monthly-Shall be computed in accordance with the following charges:
8/10/00 9/1/01 9/1/02
Basic Service Charge $75.00 $75.00 $80.00 per customer per month
Capacity Charge $7.00 $7.00 $7.10 Per kW for all kW of On-Peak Billing Demand,plus
$2.30 $2.30 $2.35 Per kW for all kW of Maximum Demand
Energy Charge Summer Billing Months of June through October
$0.0315 $0.0336 $0.0347 Per kWh for all kWh during the On-Peak Period,plus
$0.0277 $0.0286 $0.0313 Per kWh for all kWh during the Off-Peak Period,plus
Winter Billing Months of November through May
$0.0300 $0.0320 $0.0330 per kWh for all kWh during the On-Peak Period,plus
$0.0277 $0.0286 $0.0313 per kWh for all kWh during the Off-Peak Period
Reactive Power Charge $0.008 per kvarh in excess of 50%of total kWh
The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour(kvarh)metering installed in
accordance with BWL Rules and Regulations regarding power factor.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Billing Demand
On-Peak Billing Demand: The On-Peak Billing Demand shall be the kW supplied during the 15-minute period
of maximum use during the On-Peak Period during the month.
Maximum Demand: The Maximum Demand shall be the kW supplied during the 15-minute period of
maximum use during the month whether on-peak or off-peak.
Schedule of on-peak and off-peak periods-The On-Peak Period shall be from 10:00 a.m.until 6:00 p.m.,Monday
through Friday. All other hours shall comprise the Off-Peak Period.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lr ig,Michigan
Attachment A
PRIMARY ELECTRIC SERVICE
RATE NO.5
Multiple Delivery Point Aggregation-The 15-minute period demands of multiple delivery points of a customer may be
summed for determination of the total On-Peak Billing Demand under the following conditions: (a)the Maximum
Demand at each delivery point must equal or exceed 100 kW;(b)the total On-Peak Billing Demand shall not be less than
4,000 kW;and(c)the customer shall agree to a service contract with the BWL for the customer's full electrical service
requirements at the aggregated delivery points for a period of not less than five(5)years. Aggregation shall be applicable
for determination of the On-Peak Billing Demand only. All other charges,including the Basic Service Charge and
Maximum Demand,shall apply to each delivery point independently.
Metering-When the BWL elects to measure the service on the secondary side of the transformers,the metered kW and
kWh quantities thus measured will be increased by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one meter installation,consumption as registered by the different meter
installations will not be combined for billing purposes,but will be billed and computed separately except as provided for
in Multiple Delivery Point Aggregation.
Equipment Supplied by Customer-The customer shall be responsible for furnishing,installing and maintaining all
necessary transforming,controlling and protective equipment required for service beyond the BWL primary-voltage
delivery point. At the sole option of the BWL,a customer may lease such transformers or other equipment from the BWL
under terms established by the BWL.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mir 3n
Attachment A
PROPOSED
MUNICIPAL WATER PUMPING ELECTRIC SERVICE
RATE NO.7
Availability-This rate is available to any political subdivision or agency of the State of Michigan desiring service for
potable water pumping and associated potable water production equipment when the entire electrical requirements are
supplied at one point of delivery through one meter. This rate is not available for emergency,standby,or auxiliary
service.
Nature of Service-The service is alternating current,60 hertz,three phase. The secondary or primary voltage is
determined by the BWL.
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9/01/O1 9/01/02 =
Basic Service Charge $10.00 $10.00 $10.00 Per customer per month
Energy Charge $.0520 $.0540 $.0560 Per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
EnerLy 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 incorporated herein by this reference.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the BWL property,or its operation,or the production
and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Metering-Where the BWL elects to measure the service on the primary side of the transformers serving the customer,
the metered kWh thus measured will be reduced 3%for billing purposes to adjust for transformer losses.
%I
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,U g,Michigan
Attachment A
LARGE CAPACITY ELECTRIC SERVICE
RATE NO.8
Availability-This rate is available to any customer desiring primary voltage service when:(a)the electrical requirements
are supplied at one or more points of delivery as provided below for Multiple Delivery Point Aggregation;(b)where the
total On-Peak Billing Demand is 25,000 kW or more;and(c)the customer agrees to a service contract with the BWL for
the customer's full electrical service requirements at the applicable delivery points for a period of not less than ten(10)
years. This rate is not available for standby or emergency service.
Nature of Service-The service is alternating current,60 hertz,three phase. The primary voltage is determined by the
Board of Water and Light(BWL).
Monthlv Rate-Shall be computed in accordance with the following charges:
Basic Service Charge $250.00 per delivery point per month
Capacity Charge _$8.00 per kW for all kW of On-Peak Billing Demand,plus
$1.50 per kW for all kW of Maximum Demand
Energy Charge Summer Billing Months of June through October
$0.0300 per kWh for all kWh during the On-Peak Period,plus
$0.0260 per kWh for all kWh during the Off-Peak Period,plus
Winter Billing Months of November through May
$0.0288 per kWh for all kWh during the On-Peak Period,plus
$0.0260 per kWh for all kWh during the Off-Peak Period
Reactive Power Charge $0.008 Per k varh in excess of 50%of total kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Billing Demand
On-Peak Billing Demand: The On-Peak Billing Demand shall be the total kW supplied to all applicable
delivery points during the 15-minute period of maximum use during the On-Peak Period during the month. (See
Multiple Delivery Point Aggregation.)
Maximum Demand: The Maximum Demand for each delivery point shall be the kW supplied during the 15-
minute period of maximum use during the month whether on-peak or off-peak.
Adopted:7/29/97 Effective:9/l/97
Board of Water and Light,Lansing,M' '-an
Attachment A
LARGE CAPACITY ELECTRIC SERVICE
RATE NO.8
Schedule of on-peak and off-peak periods-The On-Peak Period shall be from 10:00 a.m.until 6:00 p.m.,Monday
through Friday. All other hours shall comprise the Off-Peak Period.
Multiple Delivery Point Aggregation-The 15-minute period demands of multiple delivery points of a customer shall be
summed for determination of the total On-Peak Billing Demand under the following conditions: (a)the Maximum
Demand determined at each delivery point must equal or exceed 1,000 kW;and(b)the total On-Peak Billing Demand
shall not be less than 25,000 kW. Aggregation shall be applicable for determination of the On-Peak Billing Demand only.
All other charges,including the Basic Service Charge and Maximum Demand,shall apply to each delivery point
independently.
Metering-When the BWL elects to measure the service on the secondary side of the transformers,the metered kW and
kWh quantities thus measured will be increased by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one meter installation,consumption as registered by the different meter
installations will not be combined for billing purposes,but will be billed and computed separately except as provided for
Multiple Delivery Point Aggregation.
Equipment Supplied by Customer-The customer shall be responsible for furnishing,installing and maintaining all
necessary transforming,controlling and protective equipment required for service beyond the BWL primary-voltage
delivery point. At the sole option of the BWL,a customer may lease such transformers or other equipment from the BWL
under terms established by the BWL.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
`Rules and Re ulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted: 7/29/97 Effective: 9/1/97
Board of Water and Light,L, ig,Michigan
Attachment A
PROPOSED
OUTDOOR LIGHTING SERVICE
RATE NO.9
Availability-This rate is available to any customer located within the Board of Water and Light(BWL)service
area for dusk to dawn lighting of customer's premises. The BWL furnishes and maintains all lights. The
installation will overhang private property from existing or new poles set at points accessible to BWL construction
and maintenance equipment. This rate is not available for purposes of street,highway,or public thoroughfare
lighting.
Monthly Rate-Shall be computed in accordance with the following charges.
Luminaires on Overhead Mast Arm on existing BWL poles
High Pressure Sodium 8/10/00 9/01/01 9/01/02
100 W $8.39 $8.78 $9.04
250 W $14.15 $14.80 $15.24
400 W 315.13 $15.83 $16.30
Mercury Vapor'
175 W $8.80 $9.21 $9.48
400 W $15.13 $15.83 $16.30
Floodlighting Luminaires on Bracket Arm on existing BWL poles
High Pressure Sodium
100 W $11.99 $12.54 $12.91
250 W $15.03 $15.72 $16.18
400 W $17.60 $18.41 $18.95
Metal Halide
400 W $21.87 $22.88 $23.55
1000 W $37.82 $39.57 $40.73
1500 W $52.49 $54.92 $56.53
In the event additional facilities or rearrangement of existing facilities is required,the BWL shall install,operate and
maintain such facilities for the following monthly charges.
Type of Facilities
8/10/01 9/01/01 9/01/02
35-foot wood poles including span of overhead $6.14 $8.98 $11.62 Per pole
secondary extension
37-foot concrete pole including span of overhead $14.60 $16.52 $17.01 Per pole
secondary extension
Other facilities,hand set poles,or rearrangement 1.67%of est. cost
of existing facilities
Adopted: Proposed Effective:August 10,2000
'Rates apply to existing luminaires only and are not open to new business.
Board of Water and Light,Lansing,Mir' 3n
Attachment A
OUTDOOR LIGHTING SERVICE
RATE NO.9
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,franchise fees, or any other charges against the Board's property,or its operation,or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges, shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Service Contract-A written service agreement shall be entered into to take BWL service for a term of years
determined as follows:
(a) One year, if additional facilities are'not required, or
(b) Three years, if additional facilities are-required
(c) Five years,for metal halide lamps or if monthly charges calculated at 1.67%of estimated cost,
(d) Ten years, if special contractual arrangements are made.
In the event the customer discontinues service before the end of the agreement term,the established rate for the
remaining portion of the agreement shall immediately become due and payable. The BWL will replace lamps or
make repairs when practicable after the customer has reported that the installation requires servicing. Such
replacements and repairs will be made during regular working hours. The BWL may refuse or restrict the service
provided in this rate to seasonal type customers and/or may require such customers to pay for the service annually in
advance where the permanency of the customer is doubtful or has not been demonstrated by the customer. If
zplocation,including adjustment,of the outdoor protective light or relocation of other facilities used in connection
with the light is desired by the customer during the term of the contract,the BWL will provide this service,if
feasible,at the customer's expense.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,La g,Michigan
Attachment A
This rate is canceled
PROCESS HEATING TING E1 ECT-RIn SERVICE
RATE TAy
Availability This rate is available to&ny ettsteffief desit-7ing pnffiary Yeltage sefviee undeF the fellewifig eenditiensi(a)
the eleetfieal r-equireffients afe supplied at ene paint ef delivery thr-eugh efte Metering
' r
(e)heat derived ffeffi
f
f
less than ten(4-0)yeafs. Ris rate is fiat available f6f slandly
Afenthl ,Rate cat, it be eefnptEtPf in aeeefdaneewith the F ll h
b 6
8
$0.0350 ,nor-1,\IIE fee the kWh
UPrnn nnnnoo �,.,;�-!EA Eh rvx arc c�rcca� -
008 perk'ar-h in exeess ef 50 Ftotal 1-.cr.)l ll cr
0
Minirr>um Rill The fainimuffi bill is the basie sef- iee haf-g..:__1uded in
and ealettleAed as defined en a separate fate sehedule ineefper-ated hefeift by this fefer-enee
levies taiEes,heense fees,ftaiiehise&es,ef any ether-ehafges against the Beafd's prepefty,er-i— the
Energy Cost�A dju qtfn pnt This rate is subjeet to Em Fner-gy Gest AE�ttstfnent faeter added to the abeve eftefgy ehafges
eenTe
n at ..haf e sueh 1 inef eases.
BiNine Demand
1sfeqUir-ements F Ft 'i 1._1
Curtailment Period Demand, is the 1EIAI
YYlied during the i 5 fninute_
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mi an
Attachment A
PROCESS HEATING ELECTRIC SERVICE
RATE NO. 10
Multiple Delivery Point Age.Egggfigg
billing
installatiens will net be eaffibitted fbr billing puFpeses,but will be billed and eeniputed separate!y e3Eeept as pr-eN,ided fey
installing andffiaintaifling all
under tefffis established by the BWL.
shall be added to any 1-,:11 that: et.&id e r-Leff.,the due dat—
A $7 00,.1...fge shall 1.,.added to the fifst r ul..r bill f
Rules and Reg—!—! Ser-Aee ander-this fate is subjeette the BAIL Rules afid Regtila4ians fer-Eleetiie Se.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,L• ig,Michigan
Attachment A
PROPOSED
TRAFFIC LIGHT SERVICE
RATE NO. 11
Availability-This rate is available to any political subdivision or agency of the State of Michigan desiring unmetered
secondary service for operating traffic lights installed on streets or highways for traffic control and guidance.
Nature of Service-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9/01/01 9/01/02
Basic Service Charge $1.65 $1.80 $2.00 Per customer per month
Energy Charge $.0276 $.0293 $.0310 Per watt of active load per month
The actual labor,material,miscellaneous and indirect charges experienced maintaining and relamping traffic signals
during the preceding month.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or the
production and/or sale of electribal energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Determination of Active Load-The active load of flasher lamps or cyclically operated traffic control lamps shall be
50%of total wattage of all lamps used during one complete cycle of operation. The active load of continuous,non-
intermittent steady burning lamps shall be 100%of the total wattage of all lamps used.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mi, an
Attachment A
PROPOSED
SPACE CONDITIONING AND
ELECTRIC WATER HEATING SERVICE
RATE NO. 12
Availability-This rate is available to any customer desiring service for commercial/industrial space conditioning and/or
electric water heating furnished through a separate meter to which no other electrical device except electric space heating,
electric air conditioning,humidity control equipment or electric water heating equipment may be connected. Electric
space heating will be considered to include heating by light system provided the primary means of space heating at the
time of maximum heating requirements will be fumished by the lighting system with the balance of the heating
requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for
heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air
conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal
source of space heating,or to the use of electricity for occasional or seasonal substitute for another method of water
heating.
Nature of Service-The service is alternating current,60 hertz,single phase at Board of Water and Light(BWL)available
secondary voltage. Three phase service will be furnished at BWL option.
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9/01/01 9/01/02
Basic Service Charge ' $20.00 $20.00 $20.00
Energy Charge Summer Billing Months of June through October
$.0797 $.0822 $.0848 per kWh
Winter Billing Months of November through May
$.0495 $.0511 $.0526 per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adjustment-Bill shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the BWL property,or its operation,or the production
and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,L, "ng,Michigan
Attachment A
PROPOSED
RESIDENTIAL ELECTRIC SERVICE,
SENIOR CITIZEN
RATE NO.21
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 the same meter. The customer must be 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 unit when a portion
of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that
service for residential and non-residential 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-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9/O1/O1 9/O1/02
Basic Service Charge $3.50 $4.00 $4.25
Energy Charge $.0405 $.0429 $.0455 per kWh for the first 300 kWh
$.0683 $0.724 $.0768 per kWh for the next 200 kWh
$.0917 $.0971 $.1030 per kWh for all over 500 kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
EnerLry Cost Adiustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
^and calculated as defined on a separate rate schedule 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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mic in
Attachment A
PROPOSED
STREET LIGHTING SERVICE
BOARD OWNED SYSTEMS
RATE NO.31
Availability-Available to any political subdivision or agency of the State of Michigan for street lighting service
for any system consisting of one or more luminaires where the BWL has an existing distribution system with
secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires.
Where an overhead line extension is required to serve one or more luminaires,the BWL will furnish 350 linear feet
of line extension per luminaire served from such extension. A special agreement will be required if more than 350
linear feet of line extension per luminaire is required.
Nature of Service-The BWL will furnish,install, own,operate,and maintain all equipment comprising the street
lighting system, and supply the unmetered energy. The BWL reserves the right to furnish service from either a
series or multiple system or both.
Annual Rate-The annual rate per luminaire with fixture and setting,payable in twelve(12)monthly installments,
shall be as follows;
High Pressure Sodium Luminair 8/01/00 9/01/01 9/01/02
70 W $64 $66 $68
1001W $73 $75 $77
150 W $83 $86 $89
250 W $103 $106 $109
400 W $131 $135 $139
1000 W $266 $275 $284
Mercury Vapor Luminaire'
100 W $69 $71 $73
175 W $81 $84 $87
250 W $96 $99 $102
400 W $123 $127 $131
1000 W $233 $241 $249
Metal Halide Luminaire
175 W $142 $147 $152
250 W $163 $168 $173
400 W $165 $170 $175
1000 W $320 $330 $340
1500 W $489 $505 $521
Induction Luminaire
85 W $69 $71 $73
165 W $82 $85 $88
Adopted:Proposed Effective:August 10,2000
'Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's
request,to install additional luminaires within an area already served by a mercury vapor lighting system.
Board of Water and Light,I -sing,Michigan
Attachment A
PROPOSED
STREET LIGHTING SERVICE
BOARD OWNED SYSTEMS
RATE NO.31
Annual Rate(continued) -
plus an additional annual charge,depending on type of installation, of:
8/10/00 9/01/01 9/01/02
Wood Pole—Overhead Service
Wood Pole—Underground Service $75 $77 $79
Concrete Pole—Overhead Service $116 $120 $124
Concrete Pole—Underground Service $116 $120 $124
Post Top $75 $77 $79
Historic—Single Top $241 $249 $257
Large Historic—Dual Top $706 $729 $752
Small Historic—Dual Top $503 $519 $535
Wall/Tunnel—8760 hours $103 $106 $109
Wall/Tunnel—4200 hours $62 $64 $66
Bollard $239 $247 $255
Customer Contribution-The annual rates are based on fixtures normally stocked by the BWL,and installed
utilizing normal construction techniques. The BWL may,at its option,upon customer request install a street
lighting system not covered by the rates below. The customer,after installation,will be required to make a one time
contribution equal to the difference between the actual installed cost and the BWL estimated installed cost of a
standard installation. The annual unit charge for each luminaire will then be as stated below.
Unit Replacement-The BWL may,at its option,upon customer request replace existing street light units. After
installation,the customer shall make a one time contribution equal to the undepreciated value of the unit plus the
cost of removal.
Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to
termination charges,contributions in aid of construction,tern or other special considerations when the customer
requests service,equipment or facilities not normally provided under this rate.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,franchise fees,or any other charges against the BWL property,or its operation,or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges, shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Micr' 'n
Attachment A
PROPOSED
STREET LIGHTING SERVICE
CUSTOMER OWNED SYSTEMS
RATE NO.32
Availability-Available to any political subdivision or agency of the State of Michigan for street lighting service
for any system consisting of one or more luminaires where the BWL has an existing distribution system available.
Nature of Service-The BWL will connect the customer's equipment to BWL lines, furnish the control equipment,
supply the unmetered energy, control the burning hours of the lamps,provide normal replacement of luminaire
refractors, control devices and lamps. The customer will furnish,install and own all equipment comprising the
street lighting system,including,but not limited to the overhead wires or underground cables between luminaires
and the supply circuits extending to the point of attachment with the BWL. All maintenance and replacement of
the customer's equipment except normal lamp and glass replacement shall be paid by the customer. The BWL
reserves the right to furnish service from either a series or multiple system or both.
Annual Rate-The annual rate per luminaire,payable in twelve(12)monthly installments, shall be as follows:
High Pressure Sodium Luminaire 8/01/00 9/01/01 9/01/02
70 W $33 $34 $35
100 W $43 $44 $45
150 W $52 $54 $56
250 W $72 $74 $76
400 W $101 $104 $107
1000 W $237 $245 $253
Mercury Vapor Luminaire'
175 W $48 $50 $52
250 W $65 $67 $69
400 W $91 $94 $97
1000 W $202 $209 $216
Incandescent Luminaire2
2500 L $68 $70 $72
4000 L $108 $111 $114
6000 L $130 $134 $138
Maintenance Charge-The actual labor,material,miscellaneous and indirect charges experienced maintaining street
light units during the preceding month.
Combined Rates-The annual rate for units consisting of more than one luminaire shall be the appropriate
combination of individual unit charges above.
Adopted:Proposed Effective:August 10,2000
`Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's
request,to install additional luminaires within an area already served by a mercury vapor lighting system.
2 Rates apply to existing luminaires only and are not open to new business.
Board of Water and Light,L?--^ing,Michigan
Attachment A
PROPOSED
STREET LIGHTING SERVICE
CUSTOMER OWNED SYSTEMS
RATE NO.32
Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to
termination charges,contributions in aid of construction,term or other special considerations when the customer
requests service,equipment or facilities not normally provided under this rate.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes, license fees, franchise fees,or any other charges against the BWL property, or its operation,or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mic' n
Attachment A
PROPOSED
ECONOMIC DEVELOPMENT RIDER
Purpose-The primary purpose of this rider is to enhance economic development in the Board of Water and Light
(BWL) service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a
major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the
BWL and its customers.
Availability-This rider is available to industrial customers on Large General Electric Service Rate No. 4 or Primary
Electric Service Rate No. 5 or Large Capacity Electric Service Rate No. 8. For purposes of this rider, an industrial
customer is defined as any business that manufactures a product for sale or research and development. This would
include usage for facilities directly associated with and on the same premises as the manufacturing business such as
offices and warehouses. A customer desiring service under this rider must contract for such service on or before
December 31, 2003. 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-A new customer is a new industrial customer taking service on or after January 1, 1991,
where the new load results in 100 kW or more.of billing demand.
Existing Customer-An existing customer is an existing industrial customer who contracts for a bona fide
increase in connected load resulting in an increase of 100 kW, or 10% of their historical billing demand,
whichever is greater, or more of billing demand on or after January 1, 1991.
Monthly Rate
Capacity Charge: A percentage of the capacity charge included in the principal service rate, less credits, as follows:
Contract
Year %
1 50%
2 60%
3 70%
4 80%
5 90%
Contracted Historical Billing Demand-An existing customer's contracted historical billing demand will be the
average of the three highest registered demands, including metering adjustments, during the twelve(12)month period
prior to the contract or as established by mutual consent. The contracted historical billing demand shall be subject to
the 60% provision during the contract period. The BWL reserves the right to establish a contracted historical billing
demand for all customers with duplicate or replacement operations within the BWL service area.
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 or 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 customer's 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: Proposed Effective: August 10, 2000
Board of Water and Light,L, ng,Michigan
Attachment A
ENERGY COST ADJUSTMENT
The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying
electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment.
In applying the Energy Cost Adjustment the applicable rate per kWh shall be increased or decreased by the amount
of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating
the monthly Energy Cost Adjustment.
Definitions
Energy Cost Adjustment-the amount per kWh by which the applicable rates shall be adjusted for billing in each
month.
Energy Costs-those costs incurred in supplying retail electricity. Such costs include fuel burned,energy costs
associated with firm power purchases,net interchange power costs,and costs associated with other temporary power
transactions. The cost of fuel burned shall include the delivered cost of fuel(base cost,escalations,
premiums/penalties,transportation,demurrage), outside lab fees and other outside costs related to fuel procurement,
and fuel additives such as freeze proofing.
Over/Under Recovery-the difference between actual Energy Costs for prior months and the amount of energy
cost recovered by means of the Base Cost of Energy and the Energy Cost Adjustment. The Over/Under Recovery
shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month.
Base Cost of Energy-the average Energy Cost included in the energy rates of the various rate schedules. Such
amount shall not be recovered by means of the Energy Cost Adjustment. The current Base Cost of Energy is
$0.017921 per kWh sold.
Procedures
estimated Energy Cost shall be projected for a twelve-month period. Any amount of Over/Under Recovery
(positive or negative)shall be added to the Energy Cost to determine the total cost basis for the Energy Cost
Adjustment. The total cost basis shall be divided by the projected total retail billed sales for the twelve-month
period resulting in the average energy cost per kWh. The Base Cost of Energy shall be subtracted from the average
energy cost to result in the Energy Cost Adjustment.
The Energy Cost Adjustment shall be reviewed and, as necessary,revised periodically in accordance with the
provisions of this schedule,but not less frequently than every twelve months.
Effective February 2, 1999,through February 2,2003,the Energy Cost Adjustment is frozen at$0.001000 per kWh.
Thus,the total cost of fuel and purchased power charged to customers is set at$0.018921 per kWh(Base 0.017921
+ECA 0.001000).
Adopted: 1/26/99 Effective:2/1/99
Board of Water and Light,Lansing,Mic' in
Attachment A
SCHEDULED CURTAILMENT/INTERRUPTIBLE SERVICE RIDER
Availability-This rider is available to customers on Primary Electric Service Rate No. 5 or Large Capacity Electric
Service Rate No. 8 and any applicable future primary or transmission service rate approved by the commissioners.
A customer desiring service under this rider must contract to curtail or interrupt its demand by 1,000 kW or more,
upon notice by the Board of Water and Light(BWL). The amount of curtailable or interruptible demand subject to
this rider may be limited by the Commissioners in total and by customer.
Conditions of Curtailment/Interruption-The Commissioners may determine the total kW demand subject to this
rider. The General Manager has authorization to negotiate with qualifying customers as to the following terms and
conditions of this rider; [1]the customer kW demand subject to interruption or curtailment, [2]metering
requirements, [3] the duration of any interruption or curtailment, [4]the notice period, and, [5]buy through
provisions(if any).
The contract with the customer will contain the conditions under which the BWL will require curtailment or
interruption. Any reduced rate available will include some contribution to fixed costs and depend upon the
customer's individual circumstances.
The customer agrees to pay$50 per kW for the highest 15-minute kW demand created during the curtailed or
interrupted period plus replacement energy out of pocket cost plus 10%should the customer choose not to curtail or
interrupt electric load.
Definitions
Curtailed load-The customer agrees to reduce electric load upon notice from the BWL.
Interrupted load-The customer agrees to receive no electricity upon notice from the BWL.
Adopted:December 14, 1999 Effective:January 1,2000
Board of Water and Light,Ls �ng,Michigan
Attachment A
This rate is canceled
r ♦NSING CITY ENT-ERPPdSE COMMUNITY REB AT-
Purpose Th se ef this r-ebate is to eneaurage investfaent ift the proposed Lansing C-ity Ente
Gerrifflunity. The Lansing City Enterprise Garriffitinity is defined as the fellowing 1990 eenstis tfaets!Nurn"
and 65 er-as detefffiined by the City ef Lansing.
>
Availability This rebate is evailable fer a twe year peried frem the date the bansing City Enterprise Gefflffiullity is
.e.,.,v.aib ilccrcptirxoirr:•
v
Enterprise Gernmunity.
2. This rebate is aNailable enly te etisterflefs restarting an e36sting idle water,e.--.... in Ih-e
Lansing City Enterprise Geraffittnity after a peried of ne eeris
3. This rebate is net available te Eleetrie Rate 4 er Eleetrie Rate 5 eastaffiefs whe sip a eefitfaet fe,
Payment Upon appheatieft by the eustefflef a-nd appfeval by the Gity of hansing Effid the Beard efWateF arid Light,the
0eleetfie,
Adopted:Proposed Effective:August 10,2000
Board of Water and Light,Lansing,Mic' n
Attachment A
PROPOSED
RENEWABLE ENERGY RIDER—
(GREEN PRICING RIDER)
Nature of Service-The BWL will provide green power to system per the participant enrollment,however,the BWL does
not guarantee that the actual electricity delivered to each participant's facility at any specific time will be produced from a
green supply resource.
Availability-'This rider is available to customers making use of any BWL Electric Rate Schedule.
Monthly Rate—Customers electing this premium service option will receive an additional charge for monthly energy of
up to$7.50 per month for each 250 kWh block of electricity they choose to purchase under this rider. Actual prices will
be published each November and will be based on the expected additional cost of renewable resources and other
renewable/conservation programs for the upcoming year. Participation will be limited to the amount of resources that the
BWL is able to secure.
Minimum Bill--If the participant's actual monthly consumption is less than 250 kWhs,the participant will be charged for
the full month's premium.
Term and Form of Contract--All participants for this service under this rider will require a written contract stating the
number of 250 kWh blocks and the specified period of time in which they will be enrolled.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light, Lansin 'Michigan
Attachment A
PROPOSED
RESIDENTIAL WATER SERVICE
RATE NO. 1
Availability-This rate is available to any single-family residence or multifamily dwelling of 4 units or less served
by one meter.
Monthly Rate- Shall be computed in accordance with the following charges.
Basis Service Charge:per customer per month or part thereof:
Meter 8/10/00 9/1/O1 9/1/02
5/8" $5.55 $5.90 $6.20
3/4" $7.77 $8.26 $8.68
1" $14.43 $15.34 $16.12
1'/4"or 1'/z" $32.19 $34.22 $35.96
2" $56.61 $60.18 $63.24
Commodity Charge:per ccf of water used per month;
Commodity Charge:per ccf of water used per month;
$1.34 $1.41 $1.48
Power and Chemical Cost Adiustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.1¢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.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees, franchise fees,or any other charges against the 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 Basic Service Charge applied for 30 days.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the 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: Proposed Effective:August 10,2000
Board of Water and Ligl- T ansing, Michigan
Attachment A
PROPOSED
GENERAL WATER SERVICE
RATE NO.2
Availability-This rate is available to any customer served on the BWL's water system. Service under this rate is
not available for resale.
Monthly Rate-Shall be computed in accordance with the following charges.
Basic Service Charge:per customer per month or part thereof; -
Meter 8/10/00 9/1/O1 9/1/02
518" $5.55 $5.90 $6.20
3/4" $7.77 $8.26 $8.68
1" $14.43 $15.34 $16.12
1'/4"or 1%" $32.19 $34.22 $63.24
2" $56.61 $60.18 $35.96
3" $127.65 $135.70 $142.60
41' $227.55 $241.90 $254.20
61' $511.71 $543.98 $571.64
g„ $909.09 $966.42 $1,015.56
10" $1,420.80 $1,510.40 $1,587.20
Commodity Charge:per ccf of water used per month;
$1.34 $1.41 $1.48
Power and Chemical Cost Adjustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.1¢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.
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 Basic Service Charge applied for 30 days.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the 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:Proposed Effective:August 10,2000
Board of Water and Light, Lansin• `Michigan
Attachment A
PROPOSED
WATER SYSTEM CONNECTION FEES
RATE NO.3
System Connection Fees-The following schedule of fees shall apply to all new water service connections made to
the mains. This fee shall not apply to active services which are being replaced.
Service Size Connection to
Main 8/10/00 9/1/01 9/01/02
3/4" $1,223 $1,295 $1,365
1" $2,272 $2,405 $2,535
1'/4"or 1%" $5,068 $5,365 $5,655
2" $8,913 $9,435 $9,945
3" $20,097 $21,275 $22,425
4" $35,825 $37,925 $39,975
6" $80,562 $85,285 $89,895
8"and over $143,124 $151,515 $159,705
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.
:,Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: Proposed Effective: August 10,2000
Board of Water and Lig" Lansing, Michigan
Attachment A
PROPOSED
FIRE SERVICE
RATE NO.4
Fire Service - A fire service line will be installed to a fire hydrant(s)or a customer's detector check valve in
accordance with the schedule of charges for water system connection fees(Rate 3) and the current water service
installation charges set forth in the Rules and Regulations for Water Service. The location of the detector check
valve shall be determined by the Water Distribution Engineering Department.
Fire service.lines shall be used for fire protection purposes only. No additional charges will be made for water used
for testing and fire purposes. The customer shall maintain the detector check valve and fire protection system
connected thereto in good condition in compliance with Section 34-9,Repair and Protection of Equipment, of the
Code of the City of Lansing,Michigan.
Monthly Fire Service Charge-Water supply and maintenance of a fire service line to a detector check valve shall
be provided in accordance with the following schedule of charges:
Service Size 8/10/00 9/1/01 9/01/02
4"or smaller $40 $42 $45
6" $90 $95 $100
8" $160 $170 $178
10"or larger $250 $265 $278
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-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges, shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: Proposed Effective: August 10,2000
Board of Water and Light, Lansin; tichigan
Attachment A
PROPOSED
LAWN SPRINKLING WATER SERVICE
RATE NO.5
Availability-This rate is available to any customer served on the BWL's water system where the meter or service is
installed solely for lawn sprinkling. Municipalities having jurisdiction over sewer system rates may designate other
uses of water which are subject to this rate.
Monthly Rate-Shall be computed in accordance with the following charges.
Basic Service Charge:Billings subject to this rate are not subject to a Basic Service Charge.
Commodity Charge:per ccf of water used per month
8/10/00 9/1/O1 9/1/02
all ccf $1.34 $1.41 $1.48
Power and Chemical Cost Adjustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.1¢increase or decrease in the average cost of power and chemicals
required to deliver treated water to the customer's meter above or below 17.5¢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.
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-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the 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:Proposed Effective:August 10,2000
Board of Water and Ligh` Lansing, Michigan
Attachment A
PROPOSED
FIRE HYDRANT CHARGES
RATE NO.6
Annual Fire Hydrant Charge- Water Supply and maintenance of a fire service line to a public or private fire
hydrant shall be provided in accordance with the following annual schedule of charges:
8/10/00 9/1/01 9/1/02
All Hydrants $305 $320 $336
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,franchise fees,or any.other charges against the Board's property, or its operation,or
the production and/or sale of water, to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Minimum Charge-Billings§ubject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges, shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
Board of Water and Light, Lansir 'fichigan
Attachment A
This page is canceled
LANSING CITY ENTERMSE COMMUNITY REBATE
�iifp69e Tl e f this ,bat i + fwestffieat t «in the ,1 T ram'+J.
i'" b Y
Goxzxzatrxar . The-�-rcy-s=xxrefprrSc-GvmmQ.nity is defined-$S-the fAl1fJtiYft3g 1 990-F2$Stis tr$!'tTMmmvci3
,z rr,v,i lrrri,�rrrnr�8,z�1 and 65 of:as dete'Fnified by the Gity of
Availability xc¢sscris available for-a-tip`67P3r period-€fAm the date-the Laftsing Gity B$t2ipr-iSe-Gemmuflity is
established. Axrproxzm-zs of+�hi.ricbvci��t¢P-Snm2-$9 t�P-pfi9Fipi Y$tP�-@1PEtHf-9��t2�-Scncciutc=iit the c1. This r-ebate is available a*to etistemer-s following 63wepfieffi.
b b
= This xcvacrxs available only rtocaJc m?fS b—Ei}F}St=iiig-idle F``at2r--@1PetiiEOI-steam
3. This Febate is not available to EleetFie Rate 4 or-Eleetfie Rate 5 eustafner-s whe sign a eefttfaet fer sef:viee
r aymeat—TrTpon apph alien by the eustemer-and-appfeyal by the Gity of Lansing and the Board ef Alater-and Light,
Adopted: Proposed Effective: August 10, 2000
Board of Water and Light, Lansing, Micnigan
Attachment A
PROPOSED
GENERAL STEAM SERVICE
RATE NO. 1
Availability-This rate is available to any customer receiving service from the Board of Water and Light(BWL)steam
distribution 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 be 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.
Monthly Rate
8/10/00 9/1101 9/1/02
Basic Service Charge $5.00 $6.00 $7.00 per customer per month
Commodity Charge Billing Months of June through November
$6.55 $6.75 $6.95 per 1000 lbs. for the first 200,000 lbs.
$6.90 $7.15 $7.35 per 1000 lbs. for all 1000 lbs. over 200,000 lbs.
Billing Months of December through May
$6.6� $6.85 $7.05 per 1000 lbs for the fast 200,000 lbs.
$7.00 $7.25 $7.45 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($0.0005)
cents or less will not be considered a full 0.1 ($0.001)cent;a fraction of 0.06($0.0006)cents or greater will be considered
a full 0.1 ($0.001)cent.) The price per million Btu 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(lbs)billed. The factor shall
consist of 1.124 times the weighted average amine cost per 1000 lbs 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 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.
Minimum Charge-The Basic Service 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.
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.
Reconnect Charge-A reconnect charge of$25.00 shall be added to any account which discontinues and reconnects
service at the same address within a twelve(12)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:Proposed Effective:August 10.,2000
1
Board of Water and Light, L-.ising, Michigan
Attachment A
INDUSTRIAL STEAM SERVICE
RATE NO.2
Availability: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: $0.80 per pound per hour(lb/hr)for all lb/hrs of contract
demand.
$0.70 per pound per hour(lb/hr)for all lb/hrs exceeding
contract demand
Commodity Charge: $3.88 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 full 0.1 ($0.001)cent; a fraction of 0.06($0.0006)cents or
greater will be considered a full 0.1 ($0.001)cent.] The price per million Btu for each billing month shall be the
average delivered cost of fuel consumed during the preceding calendar month.
Minimum CharLye: Monthly Demand Charge above.
Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,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(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 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
2
Board of Water and Light, Lansing, Micnigan
Attachment A
GENERAL STEAM SERVICE
RATE NO.3
Availability-This rate is available to any customer receiving service from the Board of Water and Light(BWL)steam
transmission or distribution system with a gauge pressure in excess of 100 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. This service may include both firm and curtailable service.
Monthly Rate -Per contract terms.
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 full 0.1 ($0.001)cent;a fraction of 0.06($0.0006)cents or greater will be considered
a full 0.1 ($0.001)cent.) The price per million Btu for each billing month shall be the average delivered cost of fuel
consumed during the preceding calendar month.
Amine Treatment Adjustment-,Per contract terms.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees, franchise fees,or any other charges against the BWL's property, or its operation,or the
production and/or sale of steam,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Minimum Charee-Per contract terms.
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,unless superceded by the terms and conditions of the customer contract.
Adopted: July 30, 1996 Effective: August 15, 1994
3
Board of Water and Light, L..tsing, Michigan
Attachment A
This Rate is Canceled
�^ r' dq-r a d t F ll 1990 b N t
Availability This r-ebate is available fer-a twe ye F-per-ied ffefn the Elate the Lans
2. This febate is avail
Gity r J
ef the total c'
..l_,,utility -g paid d l the
b J `ii - ssscf
viacr
Adopted: Proposed Effective: August 10, 2000
4
Board of Water and Light, Lansing, MrLaigan
Attachment A
PROPOSED
GENERAL CHILLED WATER SERVICE
RATE NO.4
Availability—this rate is available to any customer desiring service from the Board of Water and Light(BWL)district
cooling system. Service will be provided upon the customer entering into a contract with the BWL. The contract will
govern the customer's contract demand and terms and conditions of service,which may vary due to customer requirements
and the impact on BWL facilities. This rate is not available for standby or emergency service.
Monthly Rate—Shall be computed in accordance with the following charges:
Capacity Charge: $40.64 per ton for all tons of billing demand less than or equal to 105%of the contract
demand,and$56.90 per ton for all tons of billing demand exceeding 105%of the contract demand.
Commodity Charge: $0.115 per ton-hr
Tax Adjustment—Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees, franchise fees,or any other charges against the BWL's property, or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Minimum Monthly Charge—The capacity charge included in the rate.
Billing Demand—The billing demand shall be the maximum demand(tons)supplied during the 15-minute period of
maximum use,but not less than 85%of the contract demand. The General Manager is authorized to waive billing demand
in excess of 105%of the contract demand where such billing demand is incurred is the result of emergency conditions on a
customer's system and such emergency condition is caused by equipment or piping failure and the BWL concurs in the
existence of an emergency condition.
Temperature Factor Adjustment—During the months of May through October;if the customer's return water
temperature is below 57 degrees Fahrenheit(F),the customer's commodity charge will be increased by 2.0%for either;(1)
each degree Fahrenheit the customer's supply and return water temperature differential is less than 15°F or,(2)each degree
Fahrenheit the customer's return water temperature is below 57'F,whichever is less. The General Manager is authorized
to waive the application of the Temperature Factor Adjustment where warranted in cases of customer hardship where such
hardship is caused by facilities constructed prior to the BWL's District Cooling System.
Meterjng—All services using chilled water from the BWL chilled water system shall be metered. The BWL shall,through
consultation with the customer,determine the form in which the commodity shall be metered.
Delayed Payment Charge—A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Rules and Regulations—Service under this rate is subject to the BWL Rules and Regulations for Chilled Water Service
that are incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
5
Attachment B
BOARD OF WATER AND LIGHT, CITY OF LANSING MICHIGAN
BUDGET FISCAL YEAR ENDING JUNE 30, 2001 Revenue Increases W=7%, E=3%, S=1%
Chilled Water in Steam Utility Excludes CUC
WATER ELECTRIC STEAM TOTAL
PROJECTED INCOME STATEMENT
$(000) FY 2001
� h
SALES ccf/kwhlmlb }
10,982,315 3,137,770,000 2,410,780 y
OPERATING REVENUE
a 18,865 162,569 17,229 198,663 ti
s Operations and Maintenance Expense 13,252 f
Depreciation Expense 135,787 12,743 161,782 5
,TOTAL OPERATING EXPENSE 3,134 16,934 1.519 21,587
5
16,386 152,721 14,262 183,369 1
;OPERATING INCOME
2,479 9,848 2,967 15,294 !!
Other Income
Other Expense 1,647 3 947 584 6,1781. q
424 1.597 1.066 4.087
NET INCOME A
2,702 12,198 2,485 17,38511
{NET INCOME AFTER CITY PAYMENT +
4RETURN ON NET ASSETS (3/31/00) 2,119 6,836 1,812 10,767
OPERATING RATIO 1'9%: 2.9% 5.3% 2.8%!i
,.Y
PROJECTED CASH�FLOW$(000)
c I
Restricted Operating Cash
Restricted General Cash 1,971 16,535 1,900 20,406
Special Project/Construction Cash (1,981) 16,155 (3,374) 101800
'BEGINNING CASH 7-1-2000 5.618 7 6-18 20.812 34.048
5,608 40,308 19,338 65,254
r
3 Sources of Cash
Net Income 2 702
Bond Proceeds 12,198 2,485 17,385
Depreciation 9,000 0 11,000 20,000
TOTAL SOURCES OF CASH �-� 16.934 11519 21,587
14,836 29,132 15,004 58,972
SOURCES OF CASH +BEGINNING CASH a
20,444 69,440 34,342 124,226
Uses of Cash
Debt Principal
i Transfer Repayment 971 1,671
59
34 1,318 3,960
7049
Capital Expenditures ( 2) 249 0 pp
Payment to City ' 29,472 29,991 66,512 9
'TOTAL USES OF CASH 583 5.362 673 6.618
8,946 35,913 32,231 77,090I
Restricted Operating Cash ti
;; Restricted General Cash 1,657 16,973 1,593 20,223 y
Special Project/Construction Cash 3,237 6,000 1,000 10,237
4ENDING CASH 6-30-2001 6.604 10,554 482 16,676
11,498
:__..�,.r:1:�_4.,,.r__..�ti._.w._....�.,......:.:...,..,.�.....�,.�W...,_.....,.w.,.,..a:.....,..�..�,,:_...<..,_..�,. 33,527 2,111
Attachment B
BOARD OF WATER AND LIGHT, CITY OF LANSING MICHIGAN
BUDGET FISCAL YEAR ENDING JUNE 30, 2001
CENTRAL UTILITY COMPLEX
PROJECTED INCOME STATEMENT$(000) FY 2001
SALES 0
OPERATING REVENUE 616.
Operations and Maintenance Expense 560
Depreciation Expense .0
TOTAL OPERATING EXPENSE 560
OPERATING INCOME 56
Other Income 1,500
Other Expense 0
NET INCOME 1,556
NET INCOME AFTER CITY PAYMENT N/A
RETURN ON NET ASSETS (3/31/00) N/A
OPERATING RATIO 90.9%
PROJECTED CASH FLOW$(000) FY 2001
Restricted Operating Cash 0
Restricted General Cash 0
Special Project/Construction Cash 60,000
BEGINNING CASH 7-1-2000 60,000
Sources of Cash
Net Income 1,556
Bond Proceeds 0
Depreciation 0
TOTAL SOURCES OF CASH 1.556
SOURCES OF CASH + BEGINNING CASH 61,556
Uses of Cash
Debt Principal 0
Transfer Repayment 0
Capital Expenditures 61,500
Payment to City 0
TOTAL USES OF CASH 61,500
Restricted Operating Cash 0
Restricted General Cash 0
Special Project/Construction Cash 56
ENDING CASH 6-30-2001 56
2
Attachment C
SUMMARY OF CONTRACT PACKAGE
November 1, 1999—October 31, 2003
Basic Agreement
A. Four (4) year agreement retroactive to November 1, 1999
(expiring October 31, 2003).
B. Parties agree to a "Moving Forward Statement" that will replace
the "Living Agreement".
I. Economic Changes
A. Wage Increases
11/1/99 — 3.5%
10/31/00
11/1/00 — 3.0%
10/31/01
11/1/01 — 3.0%
10/31/02
11/1/02 — 3.0%
10/31/03
B. A 0.5% Lump Sum bonus which equals $229.00 per BU employee, for
the elimination of the 90/10 program.
C. Revised Attachment A-I effective for employees hired on and after July
1, 2000.
D. Uniformity of premium for Production Relief Operators $.35 to
$.50/hour.
E. Health Care
1. Blue Cross Blue Shield of Michigan-Preferred
Provider Organization-Community Blue. Includes
choice of physicians (No requirement to have Primary
Care Physicians) and hospitals.
2. Prescription drug co-pay of$2.00 for generic and
$12.00 for brand named drugs. Office visit co-pays
are still $5.00. The Flexible Spending Account may
be used for any out of pocket medical expenses
including prescription drug co-pays. The prescription
drugs will be provided by National Prescription
Administrators (N.P.A.) and will include a mail order
package for maintenance prescriptions.
Attachment C
3. Delta Dental-continuation of current insurance
4. Cap on cash-in-lieu of equal to $186.00 per month-
F. Paid Time Off Credit increased from 150 to a maximum of 175 days.
II. Other Issues
A. Eliminate Acting Supervisor pay.
B. Eliminate First Occasions.
1. Last pay out of_6.5 —9 days in April 2000.
2. Revised Excessive Absenteeism Program—changes eligibility
requirements.
C. Will handle grievances, special conferences, etc., in regularly scheduled
weekly meetings with the Union B.A. and the Director H.R. and report out
to the rest of the organization.
D. Memorandums of Understanding that already exist will be placed in a
separate book.
E. Attachment B—Electric Production—Steam Production Operators will be
eligible to bid for positions in the Electric Production Process.
F. Attachment E—All except two (2)Apprenticeships have been revised to
incorporate Federal Department of Labor,Bureau of Training, standards.
G. Housekeeping Items
1. Language revised to incorporate Process Organization titles.
2. Some language placed into the body of the contract.
H. Extension of 60 day provision for Permanent Transfers. Will use the same
language that is used for extending Probationary employees.
1. 20-day language for bidding on jobs has been replaced with 15 days and 5
days for visiting another job or re-bidding on a job.
1 517 371 6855 P.02i60
MRY-30-2000 16:55
BD OF WRTER LIGHT
Page 38
MINUTES OF THE BOARD OF COMNUSSIONERS' MEETING_.'
LANSING BOARD OF WATER AND LIGHT...... _ _;
Tuesday,May 23,2000
of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
The Board Michigan-
order The meeting was called to
Administrative Offices, 1232 Haco Drive,Lansing,
by Chair Diane Royal. Charles M•
Present: Commissioners Rosemarie E. Aquilina, Ernest J. Christian,
Creamer,Mark A.Murray,David O'Leary, and Diane R. Royal.
Absent: Commissioners Ronald C. Callen and Judson M. Werbelow.
The Acting Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
.bnunyLAI,, QF MINUTES
was made by Commissioner O'Leary, seconded by Commissioner Creamer, to
Motion
s of regular session held Apn125, 200
approve the minute
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PU13LIC ARE WELCOME
ON ANY OTHER
TO SPEAK TO THE BOARD �ANY
AGENDA MEETING.
SUBJECT NOW, OR AT THE
Fr
ed Porter from the NAACP, 3700. West Holmes,He made refee on rence to a letter from
governmental agencies goods and servces ys conducted on
purchased.
OD what it intends to do.
the BWL dated March 24, 2000, and commended the Bta e of minority vendors being
However, he expressed disappointment on the low percen g
utilized by the BWL-
ske regarding her utility bill. She and her
Brenda Hanford, 3631B trochfiield Dr., popo monthly payment plan with the BWL and it
husband have been trying get on an
has been denied.
P.02
MRY-30-2000 16:56 BD OF WRTER LIGHT 1 517 371 6855 P.03/60
Page 39
Board Minutes
May 23,2000
Dick Taylor, BWL Test Group, spoke on the BWL Compensation Plan that was approved
at the Committee of the Whole, and is to be voted on this evening. Mr. Taylor feels that
there are still many unanswered questions on this plan. Several of the requests that he
made at the Board Meeting of April 25, 2000,have not yet been addressed.
COMMUNICATIONS
An anonymous letter was received regarding the proposed pay plan for non-union
workers, and a resolution approving taking $3.2 million a year, for the next 20 years,
from the defined benefit pension plan.
Received and placed on file.
REPORTS OF COMMITTEES
#2000-s-1
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on May 9,2000, to discuss and consider the following
items:
1. Fiscal Year 2000-2001 Budget
2. Rate Review for Electric, Water and Steam Utilities
3. Compensation Plan
4. Consolidated Utility Policies and Customer Choice
Present were Commissioners Aquilina, Christian, Creamer,Murray, O'Leary, and
Werbelow. Absent and excused were: Commissioners Callen and Royal.
Fiscal Year 2000-2001 Budget.
Chief Financial Officer Dana Tousley presented details of the preliminary budget by
process for FY 2000-2001. He reviewed the history of rate increases, projected income
statement and sales and revenue forecast.
Following discussion,the Committee concurred with the proposed budget as submitted.
A resolution for the adoption of the FY 2000-2001 is included in the General Manager's
Recommendations for consideration at the regular meeting of May 23, 2000.
MRY-30-2000 16:56 HD OF WRTER LIGHT 1 517 371 6655 P.04i60
Board Minutes
Page 40 May 23,2000
Utility Rate Review.
Chief Financial Officer Dana Tousley presented an overview of the FY 2000-2001 annual
rate review process and the BWL's financial condition. He reported that additional
revenue is needed to reinvest in the system. Rate adjustments need to be considered for
the electric, water and steam utilities. Options reviewed included:
Water Rates
Fiscal Year lion 1 Option 2
2001 7% 5%
2002 6% 5%
2003 5% 5%
Electric Rates
Fisca r do gnt-OLM
2001 5% 3%
2002 2% 3%
2003 2% 3%
Steam Rates
Fiscal Year (Central District On1Y�
2001 1%
2002 1%
2003 1%
Staff agreed to present additional rate information for electric and water increases for
review at the regular meeting.
The Committee voted unanimously to recommend the setting of a public hearing date of
July 11, 2000, to consider proposed rate adjustments for electric, water and steam. This
item is included in the General Manager's Recommendations for consideration at the
regular meeting of May 23, 2000.
Miscellaneous Fees and Charges.
General Manager Pandy presented an overview of various fees and charges associated
with trenching, site inspections,pole attachments, and other related services. It was noted
that some of the fees and charges have not been revised in a number of years.
Following discussion,the Committee voted unanimously to recommend approval of the
changes to the electric and water fees and charges in the form presented. This item is
included in the General Manager's Recommendations for consideration at the regular
meeting of May 23, 2000.
Compensation Plan.
General Manager Pandy and Human Rcsources Director Linda Gardner presented an
overview of the history and the fundamental approach of the new compensation plan for
non-bargaining employees. The new pay structure includes two major components: base
pay and variable pay. Base pay for each skill family is competitive with the market. Pay
MRY-30-2000 16:56 BD OF WRTER LIGHT 1 517 371 6855 P.05i60
Page 41
Board Minutes
May 23,2000
ranges will be adjusted annually,based on market surveys. Variable pay is compensation
above base pay. It must be re-earned each year,based on performance results on
achievement of annual objectives. Variable pay includes multiple components based on
the balanced scorecard concept, consisting of the following incentives:
Corporate: Corporate measures and results.
Process: Measures and performance results for each of the processes.
Individual: Individual employee performance.
Six employees spoke during the Public Comments portion of the meeting to express their
concerns regarding the salary survey,performance appraisal system and retaining skilled
and technical employees at the BWL.
Following discussion, the Committee of the Whole voted, five to one,to take from the
table the Resolution to Adopt the New Compensation Plan for Non Bargaining Unit
Employees, as amended and attached to this Report, for consideration at the regular
meeting on May 23, 2000. (YEAS:Aquilina, Christian, Creamer, O'Leary, Werbelow.
NAYS: Murray)
Consolidated Utility Policies and Customer Choice.
General Manager Pandy reported on a new approach for water system extensions to
provide timely service to customers and reduce costs. The continuing expansion of the
water utility retail service area has resulted in significant additional required work effort
in the primary areas of engineering, records management and construction. Although
these impacts are funded by customer charges and contributions in aid of construction,
new and innovative ways of doing business are required to meet the market demand for
retail water service without increasing installation delays and backlogs and without
increasing BWL exposure to unrecovered costs. A team from the Delivery and
Marketing processes explored and analyzed the impact and options available to meet the
challenges. The team concluded that the BWL should develop a process that will allow
"customer choice"for service installations and watermain installation on customer sites.
Customer choice provides the customer the option of choosing whether to have qualified
contractors, or plumbers install water system components within the requirements of the
BWL for same, or have the BWL install at a defined cost.
Following discussion, the Committee voted unanimously to recommend the approval of
the proposed Customer Choice program. This item is included in the General Manager's
Recommendations for consideration at the regular meeting of May 23, 2000.
Submitted by:
Charles M. Creamer, Chair Pro
Committee of the Whole
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Pagc 42 May 23,2000
Discussion: General Manager Pandy read the three new amendments made to the
resolution on the new Compensation Plan. Commissioner Murray appreciated staff
considering his concerns expressed in the Board Meeting of April 25, 2000.
Commissioner Royal expressed her concern about the performance criteria not being
formulated to this date.
Motion by Commissioner Creamer, seconded by Commissioner O'Leary, to receive the
Committee of the Whole Report.
GENE MANAGER'S RECOIVIMENDATIO—NS
Background materials on items presented are on f le in the Office of the Corporate
Secretary.
#2000-5-2
APPROVAL OF UNION CONTRACT
WHEREAS, the Board of Water and Light(BWL)and the International Brotherhood of
Electrical Workers (IBEW) Local 352 recognize the critical and ongoing need to improve
customer service and reduce cost. As part of this labor agreement,the BWL and IBEW
Local 352 are committed to a partnership;working together to improve the BWL's ability
to compete in a rapidly changing marketplace.
RESOLVED, That the four-year agreement reached between Management and the Union
Negotiating Committee is retroactive to November 1, 1999, unless otherwise designated
in the agreement, and is hereby approved. The labor agreement is to expire at Midnight,
October 31, 2003.
RESOLVED FURTHER,That the Chair and the Secretary be authorized to sign the labor
agreement incorporating the settlement changes. An executive summary of major issues
resolved is attached.
Motion by Commissioner Christian, seconded by Commissioner Creamer, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-3
EXTENSION OF COAL SALES AGREEMENT
RESOLVED, that the current coal requirement's agreement dated June 26, 1996 for
Moores Park Steam Plant between BWL and Lodestar Energy be extended six (6)
months, starting October 1, 2000 and ending March 31, 2001 at a reduction in price of
6.3%.
In consideration of the contract extension, Lodestar has agreed to provide not less than
35,000 tons from 4/19/00 until 9/30/00 and not less that 35,000 tons from 10/1/00 until
3/31/01.
MRY-30-2000 16:57 BD OF WRTER LIGHT 1 517 371 6655 P.07/60
Board Minutes Page 43
May 23,2000
Motion by Commissioner O'Leary, seconded by Commissioner Christian, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-4
REVISION OF ELECTRIC FEES AND CHARGES
RESOLVED, that the BWL charges identified in the "Board of Water and Light Rules for
Electric Service" be revised, effective June 1, 2000, as follows:
Er ECTUTC FEES and CHARGES
Charge Description when Applied Proposed Previous Last Revised
Charge Charge
Residential line extensions Greater than 600 ft At cost $2.10 It May 22, 1989
Winter Construction charge December 15— $8.50/trench ft $6.00/trench May 22, 1989
March 1 ft
Site Inspection When applicable $75 ea. $15 ea_ May 22, 1989
Residential direct-buried When requested by $4.00/trench ft $2.40/trench May 22, 1989
service customer ft
$200 minimum
Commercial direct-buried When requested by $4.00/trench ft $2.40/trench May 22, 1989
service customer ft
$200 minimum
$100
minimum
Riser pole charge When requested by $250 ea. $75 ea. May 22, 1989
customer
Temporary service overhead Install&remove $185 ea. $65 ea. May 22, 1989
service drop, 100 ft
max
Temporary underground When requested by $350 ea. $80 ea. May 22, 1989
customer,
(Normal) Connection&
disconnection only
April 15—November
1
MRY-30-2000 16:57
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Board Minutes
Pagc 44 May 23,2000
Temporary underground When requested by $350 ea. $215 ea. May 22, 1989
customer,
(Winter)
Connection&
disconnection only
November 1—April
15
Joint trench charges To other utilities $1.70 if 3 joint $1.75/ft
users surruner
$2.55 if 2 joint $2.75/ft
users winter
Winter charge (may include
may also apply. winter charge
also
The Electric Fees and Charges are
brought
fees have not been updated sincesthe at cost
1980's.
providing such services. Many of these
In the future, these fees and charges will be updated annually.
The updating of Electric and Water Fees and Charges will positively impact BWL capital
requirements by increasing the expected contribution in aid received from new customers,
thus reducing BWL capital requirements by an estimated$75,000 in Fiscal 2001.
Discussion: Commissioner Aquilina inquired if the changes in fees and charges need to
be part of the Public Hearing. Chief Financial Officer Dana Tousley responded that the
fees do not affect the price of electric,water or steam.
Commissioner O'Leary noted that the water, electric and steam rates, as proposed,may
be changed after the Public Hearing.
Motion by Commissioner Aquilina, seconded by Commissioner O'Leary,to adopt the
resolution.
Action: Carried unanimously.
#2000-5-5
REVISION OF WATER FEES AND CHARGES
RESOLVED, that the BWL charges for Water service and hydrant construction and
operation be changed, effective June 1, 2000, as follows:
MAY-30-2000 16:57
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Page 45
Board Minutes
May 23,2000
FWA1U&EUdMLQHARgES
Proposed Previou Lest
Charge Description When Applied p Charge s Revised
Charge
Water Main Installation Unimproved road w/fire $27.10/ft $27.10/ft Apr 20,
1999
Charges,6"&8",larger covcrage,(1/2 amount=
sizes by agreement Frontage Fee,if not
previously collected)
improved Roads Estimated 15%adder Dec
1,
Cost
Charged on mains 12"& $2,165 ea. $2,015 ea. Apr 20,
charge20,
Fire Hydrant installation smaller
Up to and Incl. 1"Main-to- $850 ea. $850 ea. Apr 20,
1999
Curb Box
Water Services Up to and incl. 1"Curb $15.10/ft $14.67/ft Apr 20,
Box-to-Building
1999
(Connection Fee applicable) Up to and Incl. 1"split $350 ea. $135 ea. Jan 1, 1994
irrigation service
Greater than 1"Main-to- Firm price Firm price Jan 1, 1997
Curb Box quote quote
Greater than 1"Curb Box- Firm price Firm price Jan 1, 1997
to-Building quote quote
Greater than 1"split Firm price Firm rice Jan 1, 1997
irrigation service quote :quote:
Winter Construction Water Services,2"and $12.50/ft $3.00/ft
under adder adder
Frontage Fees and lit Firm price Firm price
Additional chargesg p
services other than quote quote
published sizes,restoration,
relocations,etc.
MRY-30-2000 16:57
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Board Minutes
Page 46 May 23,2000
Frozen meter charge 2i4 occurrence,or after 5/8" _ $137 5/8" _ $137 Oct 7, 1999
notice
/." =$150 '/a" = $150
1" = $175 1" = S175
=$426 1 `/2"=$426
2" = $598 2" =$598
The Water Fees and Charges are brought up to date to reflect the BWL's actual cost of
providing such services. In the future, these fees and charges will be updated annually.
The updating of Electric and Water fees and charges will positively impact BWL's capital
requirements by increasing the expected contribution in aid received from new customers,
thus reducing BWL capital requirements by an estimated$75,000 in Fiscal 2001.
Motion by Commissioner Creamer, seconded by Commissioner Aquilina,to adopt the
resolution.
Action: Carried unanimously.
#2000-5-6
POLE ATTACHMENT FEES
RESOLVED, that the BWL Pole Attachment fees be changed, effective June 1, 2000, and
previous Resolutions rescinded, as follows:
ELECI'RiC YEES and CHAEfM
Charge Description When Applied Proposed Charge =Charge
Last Revised
Joint Use and Third Parry, At cost. At cost Various
make ready Agreements
Pole Attachment fees Annual fee $9.75 per $4.95 per January 1,
attachment pole 1987
$200 minimum $60
minimum
Application deposit, $15 per pole 7$15perpoie Ja987ry1,
credited to make readycosts S300 minimum
minimum
MRY-30-2000 16:57 BD OF WRTER LIGHT 1 517 371 6B55 P. 11/60
Board Minutes Page 47
May 23,2000
The Pole Attachment fees are brought up to date to reflect the BWL's cost of providing
such service.
The updating of the Pole Attachment fees are expected to generate an additional S 120,000
in revenue in Fiscal 2001.
Motion by Commissioner Christian, seconded by Commissioner Murray,to adopt the
resolution.
Action: Carried unanimously.
#2000-5-7
CUSTOMER CHOICE FOR WATER SERVICE & MAIN INSTALLATIONS
RESOLVED, That.BWL will allow customer choice for water service and main
installations on customer sites. Customer choice will allow qualified contractors and/or
developers to construct water system installations that meet BWL specifications and
construction standards; the water system installations constructed in this manner will
become assets that are owned by the BWL.
RESOLVED FURTHER,That fees be assessed to recover the cost of ensuring
compliance with these specifications and standards.
This customer choice option provides a developer or builder the flexibility to control
timing of the water service and main installation avoiding backlogs and construction
delays which are unacceptable to the customer. In addition, recent costs for supplemental
contracting indicates that BWL costs and risk can be reduced while meeting the
customer's service requirements.
Installation by qualified customer contractors and builders with standards and dedication
to the public system is the standard in surrounding communities as well as 70% of the
industry nationwide.
Motion by Commissioner Creamer, seconded by Commissioner Murray, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-8
PROPOSED RATE SCHEDULES
RESOLVED, that the proposed water, electric, and steam, rate schedules listed below and
detailed in the attached proposed rate schedules be made the subject of a public hearing
prior to further consideration by the Board of Commissioners. (See Attachment A—
appended to minutes).
MRY-30-2000 16:5B BD OF WRTER LIGHT 1 517 371 6B55 P. 12/60
Page 48 Board Minutes
May 23,2000
Adopte Effec 've
Water Utility
Rate No. 1 —Residential Water Service 09/27/94 10/15/94
Rate No. 2—Commercial &Industrial Water Service 10/21/93 01/01/94
Rate No. 3 —Water System Connection Fees 07/29/97 09/01/97
Rate No. 4—Fire Service and Fire Hydrant Charges 12/21/93 O1/01/94
Rate No. 5—Lawn Sprinkling Water Service 12/21/93 01/01/94
Lansing City Enterprise Community Rebate 11/26/96 01/01/97
Electric Utility
Rate No. 1 —Residential Electric Service 11/26/96 01/01/97
Rate No. 2—Residential All-Electric Service 11/26/96 01/01/97
Rate No. 3—General Electric Service 11/26/96 01/01/97
Rate No. 4—Large General Electric Service 07/29/97 09/01/97
Rate No. 5—Primary Electric Service 07/29/97 09/01/97
Rate No. 7—Municipal Water Pumping Electric Service 11/26/96 01/01/97
Rate No. 9—Outdoor Lighting Service 01/26/99 02/01/99
Rate No. 10—Process Heating Electric Service 07/29/97 09/01/97
Rate No. 11 —Traffic Light Service 11/26/96 01/01/97
Rate No. 12— Space Conditioning and Electric Water Heating 11/26/96 01/01/97
Service
Rate No. 21 —Residential Electric Service—Senior Citizen 11/26/96 01/01/97
Rate No. 31 — Street Lighting Service—Board Owned Systems 01/26/99 02/01/99
Rate No. 32—Street lighting Service—Customer Owned 01/26/99 02/01/99
Systems
MAY-30-2000 16:58 BD OF WRTER LIGHT
1 517 371 6855 P.13i60
Page 49
Board Minutes
May 23,2000
Economic Development Rider 11/26/96 01/01/97
Lansing City Enterprise Community Rebate 11/26/96 01/01/97
Proposed Renewable Energy Rider(Green Power)
Steam Utility
Rate No. 1 —General Steam Service 12/20/94 01/13/95
Lansing City Enterprise Community Rebate 11/26/96 O1115191
Rate No. 1 —General Chilled Water Service 03/26/91 0415/9
FURTHER RESOLVED,that a public hearing to solicit public input on this matter be set
for Tuesday, July 11, 2000 at 5:30 p.m.,in the Board of Water and Light Offices at 1232
Haco Drive. Also that the Corporate Secretary be directed to file with the City Clerk
information regarding pending changes in the rate structures on or before May 26, 2000.
Discussion: The Commissioners discussed the proposed options for electric, water and
steam. Mr. Pandy showed slides giving a history of rates, and indicating why the Board
of Water and Light is asking for a rate increase. He reported that the City plans to raise
sewer rates and City Officials have asked the BWL to hold off on the rate increase until
January 1, 2001. Mr. Pandy explained that waiting until January 2001 would result in
about $1.95 million revenue loss for the five months. Commissioner O'Leary inquired as
to how the new deregulation bill would affect the electric rate increase. Mr. Pandy
announced that the deregulation bill passed the Senate today by a vote of 25 to 12. The
BWL remains exempt from Public Service Commission rules; all BWL rates are the
authority of the Board of Commissioners. Even with a rate increase, BWL rates remain
below those of Consumers Energy and Detroit Edison. Discussion ensued on how
levelized rates affect cash flow and the cost of postponing the rate increases.
Motion by Commissioner Royal, seconded by Commissioner O'Leary, to adopt the
resolution.
Action: Carried unanimously.
#2000-5-9
FY 2001 BUDGET
RESOLVED, That the annual budget covering Fiscal 2000-2001 be approved as
presented. (See Attachment B.)
MRY-30-2000 16:5B BD OF WRTER LIGHT 1 517 371 BB55 P. 14/60
Page 50 Board Minutes
May 23,2000
FURTHER RESOLVED,That capital projects are authorized in the amount of the project
estimate. Capital expenditures for fiscal 2000-2001 are limited to the amount included in
the budget.
Motion by Commissioner Creamer, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously.
UNFINISHED BUSINESS
#2000-5-10
Resolution to Adopt New Compensation Plan for Non-Bargaining Unit Employees
WHEREAS,Dorey, Reagan & Associates (consultant) was engaged by the BWL
(Resolution #2000-1-4) to assist staff with the following goals:
1. Recommend and implement changes to the Non-
Bargaining Unit compensation plan.
2. Align the compensation system with a process-
based organization.
3. Provide information enabling the BWL to design
pay strategies,which are market driven.
The last redesign of the BWL compensation system was conducted in June, 1980.
WHEREAS, Staff and the consultant presented details of the new compensation plan for
Non-Bargaining Unit employees with recommendations regarding changes.
WHEREAS, as discussed by the Personnel Committee on October 27, 1999, and
approved by the Board, the Board of Water and Light base pay in relation to market is
established at the 50"percentile.
WHEREAS, The internal equity issue related to the Technical Skill Family, Grades 1
through 6, was reassessed, especially in relation to the Bargaining Unit.
RESOLVED:
1. That the report on the new BWL Compensation Plan for Non-
Bargaining Unit employees, submitted by Human Resources and
consultant Dorey, Reagan & Associates, dated April 4, 2000, be
received and filed.
2. That based on staff analysis and subsequent review by the Board,
the market rate for the Technical Skill Family—Grades 1 through
6--be established at the 65th percentile of the grade range.
MAY-30-2000 16:5B BD OF DATER LIGHT 1 517 371 6855 P. 15/60
Board Minutes Page 51
May 23,2000
3. That the 5%over maximum limit for Non-Bargaining Unit
Employee increases be lifted for FY 1999-2000 only. This
qualifies Non-Bargaining Unit Employees for a one-time variable
pay increase that may exceed the maximum.
4. That the individual variable pay amount be offered in a lump sum
rather than being spread over 26 pay periods.
5. That the General Manager be authorized to implement the
recommended changes to the salary ranges and pay structures as set
forth in the report on skill families effective July 1, 2000.
6. That 3.5% of the Non-Bargaining Unit employee payroll be
budgeted for FY 2000-2001 to be used for performance increases,
based on variable amounts, effective July 1,2000.
7. That the General Manager be authorized to implement a variable
pay plan for the non-bargaining unit employees for FY 2000-2001
with the following components:
Maximum Variable Pay
Corporate Share The Success Percentage of Base
Process Performance Results 2.5%
Individual Performance Incentive 5.0%
7.5%
8. That the General Manager be authorized to pay employees with
skills and experience which are critical to the BWL at base pay
levels above the 50"percentile. These exceptions shall be
reviewed in consultation with the Assistant General Manager and
Director of Human Resources.
9. That in order to emphasize the importance of performance
appraisals and feedback for employees, all directors' and
managers' individual incentive pay for FY 2000-2001 shall have
5% of the total 7.5%variable pay determined on the basis of the
quality of performance appraisals conducted by these directors and
managers.
10. That the new compensation plan shall be set as a two-tiered
system.
For new employees as of July 1, 2000, the market rate will
remain at the 50'percentile of the market. The market rate
will serve as the cap of base pay.
MRY-30-2000 16:59 HD OF WPTER LIGHT 1 517 371 6855 P.16/60
Page 52 Board Minutes
May 23,2000
■ For current employees, the cap of their base pay will beset
at 10% above the market rate.
This proposed change allows for a gradual transition to the new plan and reduces the
percentage of employees above market rate by approximately 30%. Furthermore, it will
shift approximately$200,000 from variable to base pay,with an additional $30,000 for
pension and benefit costs.
Motion by Commissioner Murray, seconded by Commissioner Creamer, to take the
proposed resolution for the Compensation Plan off the table.
Action: Motion to take off the table was carried unanimously.
Discussion Prior To Vote: Commissioner Christian expressed concern on the current
lack of an appraisal system. Human Resource Director Linda Gardner stated that the
appraisal system is in the process of being developed. She reported that Position
Description Questionnaire's (PDQ's) are currently being used as job descriptions, but
have not yet been transferred to job descriptions. Commissioner Christian also asked Ms.
Gardner how many appeals had been received; she responded that 120 out of 316
employees had filed appeals, this equals about 42%. Commissioner Royal expressed
concern that she does not see the necessity of pushing this pay plan too quickly,but
would rather see the plan more in place before adoption. Mr. Pandy stated that this is a
continuous improvement plan which may not be totally in place in the beginning; the plan
will be ongoing and will change year after year.
The Chair called the question on the Resolution to Adopt the New Compensation Plan for
Non Bargaining Unit Employees, as amended.
Action: The resolution was not passed, as five affirmative votes of the total Board are
required for passage. (YEAS: Aquilina, Creamer, Murray, D'Leary-4. NAYS: Christian,
Royal-2.)
NEW BUSINESS
#2000-5-11
PROPOSED RESOLUTION TO OFFER THE ROTH IRA PROGRAM TO
EMPLOYEES
WHEREAS, The Board of Water and Light desires to provide a payroll deduction Roth
IR.A,Program to the employee pension options, and
WHEREAS, Roth IRA contributions may be made after withholding taxes up to an
annual contribution of$2,000.00, and
WHEREAS, ICMA manages the BWL's 457 Deferred Compensation Plan and offers an
IRS-approved Roth Program, and
MRY-30-2000 16:59
BD OF DATER LIGHT 1 517 371 6B55 P.17/60
Pap 53
Board Minutcs
May 23,2000
WHEREAS,Prudential,which manages
the BWL
Program, ef Defined Contribution Plan
investments, offers an IRS-approved �
RESOLVED, That the BWL is hereby authorized to offer payroll deduction to its
employees for Roth IRA options from both ICMA and Prudential retirement services.
RESOLVED FURTHER,That the Chief Financial Officer is directed to take such actions
as may be necessary to carry the Roth IRA Program into operation.
Discussion: Commissioners discussed the advantages and disadvantages of Roth IRA's.
Motion by Commissioner Christian, seconded by Commissioner Murray,to adopt the
resolution.
Action: Carried unanimously.
RESOLUTIONS
#2000-5-12
RESOLUTION HONORING JOHN ELASHKAR
WHEREAS, the Lansing Boar Water and d of
on May 20 Commissioners5 2000, after
John Elashkar on the occasion of hisretirement
eti ement from the BWL
more than 30 years of outstanding service and exceptional achievements, and
WHEREAS, Hanna El-Ashkar had arrived in the United States of America as an
alien visitor with six months visa from his home in Deir Mimas, Mer eyoun,Lebanon and
was hired by the BWL in 1970 as a civil engineer,having graduated from the American
University of Beirut; and
WHEREAS, John Elashkar became a naturalized citizen of the United State of
America on October 28, 1976; and
WHEREAS, John Elashkar's professional competence as an engineer was
recognized by the BWL in a series of promotions, including:
1977 Supervisor/Civil & Architectural Engineer
1980 Superintendent of Project Engineering
1981 General Superintendent/Project Engineering
1986 Director of Engineering
Professional Engineer#24740; and
MAY-30-2000 16:59 HD OF WRIER LIGHT
1 517 371 6655 P.18/60
Board Minutes
Page 54 May 23,2000
WHEREAS, John Elashkar's breadth of knowledge and technical skills were
recognized by the BWL in the fields of Information Systems, Environmental Services,
Construction Services, and Materials Services resulting in his promotion to Director of
Technical Services in 1990; and
WHEREAS, John Elashkar's business judgment and managerial expertise were
recognized by the BWL in his promotion to Assistant General Manager in October, 1998;
and
WHEREAS, John Elashkar's intelligence, experience, and professional discipline
has contributed enormously to the citizens of the Greater Lansing Region in the provision
of reliable, efficient and safe electrical power,public water supply and thermal energy;
and under his leadership, BWL engineered and constructed over$443 million of capital
improvements; and
WHEREAS, John Elashkar's engineering skills permanently changed the skyline
of Lansing with construction of BWL's modern electrostatic precipitators and three
power plant chimneys towering 624 feet above the Eckert Power Station.
NOW THEREFORE BE IT RESOLVED, that the Board of Water and Light
Commissioners salute the many achievements, dedication, and professional competence
of John Elashkar.
RESOLVED FURTHER, that in keeping with his highest achievement, the Board
of Water and Light Commissioners do hereby designate and name the Eckert Power
Station Chimneys as "John Elashkar Monuments", and direct that a plaque
commemorating his career at the BWL be affixed at the Eckert Power Station in honor of
John Elashkar's many contribution to the well-being of our community.
Action: Resolution approved by consensus.
Retired Assistant General Manager John Elashkar expressed his gratitude to the Board of
Water and Light for his 30 years of employment. He said that he learned a lot, and
developed valuable friendships.
GENERAL MANAGER'S REMARKS
Chilled Water Contract—State of Michigan: General Manager Pandy announced
there is a signed agreement with the State of Michigan for Chilled Water. Construction
will begin this summer. The BWL will work with the City on a noise ordinance so that
work can be done from 6:00 Am until 7:00 PM. Mr.Pandy expressed his appreciation
for the work of Clyde Dugan, John Elashkar, Sue McCormick, Jan Nelson,Dana Tousley
and Larry Wilhite, in securing this agreement.
Commissioner Christian asked for the time line of this project. Mr. Pandy said that
service will begin in the Spring of 2001.
BD OF WRTER LIGHT 1 517 371 6655 P. 19/60
MRY-30-2000 17:00 pagc 55
Board Minutes
May 23,2000
wing
Ottawa Station Update: General Manager Pan handed
P°ote color-drawings
feasibility°studya
rendering of the proposed Ottawa Station RedevelopmentJ
from Steiner and Associates has not yet been received.
RED BY COMMISSIONERS
Commissioner Christian expressed his appreciation to him Johnwell as n r fois re everything
ryrth g he
has done for the Board of Water and Light, an
FxriTLED ABSENCES
By Commissioner Christian, seconded by Commissioner Murray, that the absences of
Commissioners Callen and Werbelow be excused.
Adopted unanimously.
PUBLIC'' CQMM M
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC
AND�H SUBJECT.
WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER
Cathy Gorman,BWL Employee, expressed her appreciation on not passing the
Compensation Plan.
,ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Creamer,the meeting
adjourned at 7:20 p.m.
Is/Rosemary Sullivan, Acting Secretary
Filed: May 30, 2000
Marilynn Slade, City Clerk
,o
MAY-30-2000 17:00 BD OF WRTER LIGHT 1 517 371 6B55 P.20i60
tsoara or water ana Ltgm,Lansing iicnigan
PROPOSED
RESIDENTIAL ELECTRIC SERVICE
RATE NO. I
Avallabilitv-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 unit 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-The service is altemating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate - Shall be computed in accordance with the following charges:
8110l00 9/1</QI 4/1102
Basic Service Charge $3.50 S4.00 $4.25 per customer per month
Energy Charge Summer Billing Months of June through October
$.0580 $.0600 $.06300 per kWh for the first 500 kWh
$.0620 $.0641 $.0673 per kWh for all over 500 kWh
Winter Billing Months of November through May
$.0580 $.0600 S.06300 per kWh for the first 500 kWh
$.0603 $.0624 $.0656 per kWh for all over 500 kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adiustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Aaplication Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
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
$.0221kWh delivered. Customers selling energy to the BWL shall pay a charge of 56.40 per month or part thereof instead
of the above Basic Service Charge.
Rules and Regulations - Service under this rate is subject to the 13WL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:00 BD OF WRTER LIGHT 1 517 371 6B55 P.21i60
rsoara of w atcr ana Ltgnt,Lansing micmgan
This Rate is canceled
'ESI]DE TTT A T ►T T CT EC-T- JG EPER4/7E
�Or2 _
&erviee under this rate is neE as,oi'able te any.9' hife-milly d-lo.,011iRg of 4 tmito of less v4ieft a PeRien ef gie
Me"thlyRote? Shall be Mp.
So9ie,Sef%,iee Charge 93.20
9Q .0543 per-WA foF the first 500 WAt
D . �o
^S0$n.n
Water
.
tames,hmase
fees,
gemeraiing equipment in"Fallel%ith the BV-q�oyetem. A eust a eel!energy to the BVPL e4 the rate e
Rules md SoMee undef this rate is 6*eet Ee the BAIL Rules and Regulatiens for-Eiee�fio 9 -
Adopted:Proposcd Effective:August 10,2000
MRY-30-2000 17:00 BD OF WRTER LIGHT 1 517 371 6655 P.22i60
nutuu vi VV=1 nnu L1gn1,Lansinjz -ncmgun
PROPOSED
GENERAL ELECTRIC SERVICE
RATE NO.3
Availability-This rate is available to any customer desiring secondary voltage service for any purpose when supplied at
one point of delivery through one meter. The limitation to secondary-voltage service may be waived in instances where
the character of the electric load at the premises served has changed substantially. This rate is not available for emergency
or standby service.
Nature of Service-The service is alternating current,60 hertz,single phase or three phase. The secondary voltage is
determined by the Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9101 9/1/02
Basic Service Charge $10 $12 $15 per customer per month
Energy Charge Summer Billing Months of June through October
$.690 $.0710 $.0740 per kWh
Winter Billing Months of November through May
$.0664 $.0683 $.0712 per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Metering-Where the BWL elects to measure the service on the primary side of the transformers,the metered kWh thus
measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the customer receives
service through more than one meter,the consumption as registered by the different meters will not be combined for
billing purposes,but will be computed and billed separately.
Delaved Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
&tkxiliary Power Provision-Customers desiring electric service as an auxiliary source of power to wind or solar
powered generating equipment may take service under this rate schedule under special agreement with the BWL. The
customer shall pay the charges set forth above. A customer taking auxiliary power under this rate shall pay all reasonable
costs associated with any alteration of BWL equipment required for proper operation of the customers generating
equipment in parallel with the BWL system. A customer may elect to sell energy to the BWL at the rate of$.022/kWh
delivered. Customers selling energy to the BWL shall pay a charge of$12.46 per month or part thereof instead of the
above Basic Service Charge.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:01 BD OF WRTER LIGHT 1 517 371 6855 P.23i60
PROPOSED
LARGE GENERAL ELECTRIC SERVICE
RATE NO.4
Availability-This rate is available to any customer desiring secondary voltage for any purpose when the electrical
requirements are supplied at one point of delivery through one metering installation and the billing demand is 15 kW or
more. The limitation to secondary-voltage service may be waived in instances where the character of the electric load at
the premises served has changed substantially. This rate is not available for standby or emergency services.
Nature of Service-The service is alternating current,60 hertz,single phase or three phase. The secondary voltage is
determined by the Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges.
8/10/00 9JIM 9!1/02
Basic Service Charge $30 $30 $32 per customer per month
Capacity Charge $8.60 $8.60 $8.75 Per kW for all kW of Maximum Demand
Energy Charge Summer Billing Months of June through October
$.0361 $.0383 $.0394 per kWh
Winter Billing Months of November through May
$.0330 $.0350 $.0360 per kWh
Reactive Power Charge $0.008 per kvarh in excess of 50%of total kWh.
The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour(kvarh)metering installed in
accordance with BWL Rules and Regulation regarding power factor.
,Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Ent 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 incorporated herein by this reference.
Tax Adjustment-Bills shall be increased within the limits of any govemmental 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.
Billing Demand-The billing demand shall be the kW supplied during the 15-minute period of maximum use during the
month.
Metering-Where the BWL elects to measure the service on the primary side of the transformer,the metered kW and
kWh quantities thus measured will be reduced by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one metering installation,the consumption as registered by the different
metering installations will not be combined for billing purposes,but will be computed and billed separately.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Aaaileatlon Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and RcEWations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:01 BD OF WRTER LIGHT 1 517 371 6655 P.24i60
Duaru ul vv atcr anu Ltgnt,Lansing micmgan
PROPOSED
PRIMARY ELECTRIC SERVICE
RATE NO.5
AyailabJ1ity-This rate is available to any customer desiring primary voltage service when the electrical requirements are
supplied at one point of delivery through one metering installation(except as provided below for Multiple Delivery Point
Aggregation)and the billing demand is 100 kW or more. This rate is not available for standby or emergency service.
Nature of Service-The service is alternating current,60 hertz,three phase. The primary voltage is determined by the
Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges:
$/10/00 9L= 9/1 02
Basic Service Charge $75.00 $75.00 $80.00 per customer per month
Capacity Charge $7.00 $7.00 $7.10 Per kW for all kW of On-Peak Billing Demand,plus
$2.30 $2.30 $2.35 Per kW for all kW of Maximum Demand
Energy Charge Summer Billing Months of June through October
$0.0315 $0.0336 $0.0347 Per kWh for all kWh during the On-Peak Period,plus
$0.0277 $0.0286 $0.0313 Per kWh for all kWh during the Off-Peak Period,plus
Winter Billing Months of November through May
$0.0300 $0.0320 $0.0330 per kWh for all kWh during the On-Peak Period,plus
$0.0277 $0,0286 $0.0313 per kWh for all kWh during the Off-Peak Period
Reactive Power Charge $0.008 per kvarh in excess of 50%of total kWh
The Reactive Power Charge shall be applicable to customers who have reactive kilovar hour(kvarh)metering installed in
accordance with BWL Rules and Regulations regarding power factor.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adiustnaent-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation, or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Billing Demand
On-Peak Billing Demand: The On-Peak Billing Demand shall be the kW supplied during the 15-minute period
of maximum use during the On-Peak Period during the month.
Maximum Demand: The Maximum Demand shall be the kW supplied during the 15-minute period of
maximum use during the month whether on-peak or off-peak.
Schedule of on-Desk and off-Weak per
cods-The On-Peak Period shall be from 10:00 a.m.until 6:00 p.m.,Monday
through Friday. All other hours shall comprise the Off-Peak Period.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:01 BD OF WRTER LIGHT 1 517 371 6B55 P.25i60
aviuu ur w a=anu r,ignr,Lansing micmgan
PRIMARY ELECTRIC SERVICE
RATE NO.5
Multiple Delivery Point Aggregatlon-The 15-minute period demands of multiple delivery points of a customer may be
summed for determination of the total On-Peak Billing Demand under the following conditions: (a)the Maximum
Demand at each delivery point must equal or exceed 100 kW; (b)the total On-Peak Billing Demand shall not be less than
4,0001:W; and(c)the customer shall agree to a service contract with the BWL for the customer's full electrical service
requirements at the aggregated delivery points for a period of not less than five(5)years. Aggregation shall be applicable
for determination of the On-Peak Billing Demand only. All other charges,including the Basic Service Charge and
Maximum Demand,shall apply to each delivery point independently.
Metering-When the BWL elects to measure the service on the secondary side of the transformers,the metered kW and
kWh quantities thus measured will be increased by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one meter installation,consumption as registered by the different meter
installations will not be combined for billing purposes,but will be billed and computed separately except as provided for
in Multiple Delivery Point Aggregation.
Equipment SuRpl,ley Customer-The customer shall be responsible for furnishing,installing and maintaining all
necessary transforming,controlling and protective equipment required for service beyond the BWL primary-voltage
delivery point. At the sole option of the BWL,a customer may lease such transformers or other equipment from the BWL
under terms established by the BWL.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7,00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
MAY-30-2000 17:02 BD OF IWRTER LIGHT 1 517 Z71 6B55 P.26i60
Board of Water and Light,Lansing- '4ichigan
PROPOSED
MUNICIPAL WATER PUMPING ELECTRIC SERVICE
RATE NO,7
Availabillty-This rate is available to any political subdivision or agency of the State of Michigan desiring service for
potable water pumping and associated potable water production equipment when the entire electrical requirements are
supplied at one point of delivery through one meter. This rate is not available for emergency,standby,or auxiliary
service.
Nature of Service-The service is alternating current,60 hertz,three phase. The secondary or primary voltage is
determined by the BWL.
Monthly Rate-Shall be computed in accordance with the following charges.
8/10100 01 01 01 02
Basic Service Charge $10.00 $10.00 $10.00 Per customer per month
Energy Charge 5.0520 $.0540 $.0560 Per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule 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.
Meterin -Where the BWL elects to measure the service on the primary side of the transformers serving the customer,
the metered kWh thus measured will be reduced 3%for billing purposes to adjust for transformer losses.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted.Proposed Effective:August 10,2000
MRY-30-2000 17:02 BD OF WRTER LIGHT 1 517 371 6B55 P.27i60
ovaru ui w agar anu Ltgne,LUISM}r. rvuemg:rn
LARGE CAPACITY ELECTRIC SERVICE
RATE NO.8
Availability-This rate is available to any customer desiring primary voltage service when: (a)the electrical requirements
are supplied at one or more points of delivery as provided below for Multiple Delivery Point Aggregation;(b)where the
total On-Ptak Billing Demand is 25,000 kW or more;and(c)the customer agrees to a service contract with the BWL for
the customer's full electrical service requirements at the applicable delivery points for a period of not less than ten(10)
years. This rate is not available for standby or emergency service.
Nature of Service-The service is alternating current,60 hertz,three phase. The primary voltage is determined by the
Board of Water and Light(BWL).
Monthly Rate-Shall be computed in accordance with the following charges:
Basic Service Charge $250.00 per delivery point per month
Capacity Charge $8.00 per kW for all kW of On-Peak Billing Demand,plus
$1.50 per kW for all kW of Maximum Demand
Energy Charge Summer Billing Months of June through Ocrober
$0.0300 per kWh for all kWh during the On-Peak Period,plus
$0.0260 per kWh for all kWh during the Off-Peak Period,plus
Winter Billing Months of November through May
$0.0288 per kWh for all kWh during the On-Peak Period,plus
$0.0260 per kWh for all kWh during the Off-Peak Period
Reactive Power Charge $0.008 Per k varh in excess of 50%of total kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Enemy 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 incorporated herein by this reference.
Tax Adlustmient-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Billing Demand
On-Peak Billing Demand: The on-Peak Billing Demand shall be the total kW supplied to all applicable
delivery points during the 15-minute period of maximum use during the On-Peak Period during the month. (See
Multiple Delivery Point Aggregation.)
Maximum Demand: The Maximum Demand for each delivery point shall be the kW supplied during the 15-
minute period of maximum use during the month whether on-peak or off-peak.
Adopted:7/29/97 Effccti ve: 9/1/97
MRY-30-2000 17:02 BD OF WRTER LIGHT 1 517 371 6655 P.26/60
Board of Water and Light,Lansmr `4tehtgan
LARGE CAPACITY ELECTRIC SERVICE
RATE NO.8
e;ti^d��le of on-neAk 9nd off-{Leak o re iods-The On
Period shall be from 10:00 a.m.until 6:00 p.m.,Monday
through Friday. All other hours shall comprise the Off-Peak Period.
Multiple De ivery Point Aggregation-The 15-minute period demands of multiple delivery points of a customer shall be
summed for determination of the total On-Peak Billing Demand under the following conditions: (a)the Maximum
Demand determined at each delivery point must equal or exceed 1,000 kW;and(b)the total On-Peak Billing Demand
shall not be less than 25,000 kW. Aggregation shall be applicable for determination of the On-Peak Billing Demand only.
All other charges,including the Basic Service Charge and Maximum Demand,shall apply to each delivery point
independently.
Metering-When the BWL elects to measure the service on the secondary side of the transformers,the metered kW and
kWh quantities thus measured will be increased by 3%for billing purposes to adjust for transformer losses. Where the
customer receives service through more than one meta installation,consumption as registered by the different meter
installations will not be combined for billing purposes,but will be billed and computed separately except as provided for
Multiple Delivery Point Aggregation.
Equipment Supplied by Cpstomer-The customer shall be responsible for famishing,installing and maintaining all
necessary transforming,controlling and protective equipment required for service beyond the BWL primary-voltage
delivery point. At the sole option of the BWL,a customer may lease such transformers or other equipment from the BWL
under terms established by the BWL.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A S7.00 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 ReQulatlons-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:7/29/97 Effective: 9/1/97
MRY-30-2000 17:02 BD OF WRTER LIGHT 1 517 371 6855 P.29/60
tjoam of water ana Lignt,Lansmp micnigan
PROPOSED
OUTDOOR LIGHTING SERVICE
RATE NO.9
Availability-This rate is available to any customer located within the Board of Water and Light(BWL)service
area for dusk to dawn lighting of customer's premises. The BWL furnishes and maintains all lights. The
installation will overhang private property from existing or new poles set at points accessible to)3WL construction
and maintenance equipment. This rate is not available for purposes of street,highway,or public thoroughfare
lighting.
Monthly Rate-Shall be computed in accordance with the following charges.
Luminaires on Overhead Mast Arm on existing BWL poles
High Pressure Sodium $/ 0 0 9/01/01 9/01 02
100 W $8.39 $8.78 $9.04
250 W $14.15 $14.80 $15.24
400 W $15.13 $15.83 $16.30
Mercury Vapor
175 W $8.80 $9.21 $9.48
400 W $15.13 $15.53 $16.30
Floodlighting Luminaires on Bracket Arm on existing BWL poles
High Pressure Sodium
100 W $11.99 $12.54 $12.91
250 W $15.03 $15.72 $16.18
400 W $17.60 $18.41 $18.95
Metal Halide
400 W $21.87 $22.88 $23.55
1000 W $37.82 $39.57 $40.73
1500 W $52.49 $54.92 $56.53
In the event additional facilities or rearrangement of existing facilities is required,the BWL shall install, operate and
maintain such facilities for the following monthly charges.
Type of Facilities
8/10/01 9/01/01 9/01/02
35-foot wood poles including span of overhead $6.14 $8.98 $11.62 Per pole
secondary extension
37-foot concrete pole including span of overhead $14.60 $16.52 $17.01 Per pole
secondary extension
Other facilities,hand set poles,or rearrangement 1.67%of est. cost
of existing facilities
Adopted:Proposed Effective:August 10,2000
'Razes apply to existing luminaires only and are not open to new business.
MRY-30-2000 17:03 HD OF WRTER LIGHT 1 517 371 6855 P.30i60
uv4V Vl •.4abl W.Y LiIL[lll,La11J111lC- 1�1lV llll,f Gil
OUTDOOR LIGHTING SERVICE
RATE NO.9
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges,shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Service Contract-A written service agreement shall be entered into to take BWL service for a term of years
determined as follows:
(a) One year,if additional facilities are not required,or
(b) Three years,if additional facilities are required
(c) Five years, for metal halide lamps or if monthly charges calculated at 1.67%of estimated cost,
(d) Ten years, if special contractual arrangements are made.
In the event the customer discontinues service before the end of the agreement term,the established rate for the
remaining portion of the agreement shall immediately become due and payable. The BWL will replace lamps or
make repairs when practicable after the customer has reported that the installation requires servicing. Such
replacements and repairs will be made during regular working hours. The BWL may refuse or restrict the service
provided in this rate to seasonal type customers and/or may require such customers to pay for the service annually in
advance where the permanency of the customer is doubtful or has not been demonstrated by the customer. If
relocation,including adjustment, of the outdoor protective light or relocation of other facilities used in connection
with the light is desired by the customer during the term of the contract,the BWL will provide this service, if
feasible, at the customer's expense.
Adopted:Proposed Effective:August 10,2000
MAY-30-2000 17:03 BD OF WRTER LIGHT 1 517 371 6855 P.31/60
JJVMU VL •V CALVL O1lU L1�,11 L,LG1L7lll�.• I 11 NllltY.JUII
This rate is canceled
n• ENo .10
ided
eenneeted load of
f ,
OF a file
fifieluding pms,isieitst
here,
n a..f Water-and Tight raua+
$250.09 per eustenwfpeFTaenth
Gapaeity Charge .90
Charge 69.8749
;$}59
fteaeflw Power Charge S9.09$
f+ energy Om
fees, ) f
ett
Nike
Dpmartd
11U2
MeAmem Demand! is the 1 W PJA0.7 d o the IS fninute per-,. .,9yA ase d g the fnenfli.
Adoptcd:Proposed Effective:August 10,2000
MRY-30-2000 17:03 BD OF WRTER LIGHT 1 517 371 6B55 P.32i60
PROCESS
HEATING C7 L'C:MC SERA710E
D A T'fvS7 E NO.TU
I - jhe tetai-Maximum Demand shefl not be legs than
suffuned fey-deteffninafief,of the total Gunailmen-
All egier- r
r
meeessarf f
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:03 BD OF WRTER LIGHT 1 517 371 6655 P.33/60
tsoara or water ana Ltgnt,Lanstne ivucntgan
PROPOSED
TRAFFIC LIGHT SERVICE
RATE NO. 11
Availabiliri-This rate is available to any political subdivision or agency of the State of Michigan desiring unmetered
secondary service for operating traffic lights installed on streets or highways for traffic control and guidance.
Nature of Service-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Monthly Rate-Shall be computed in accordance with the following charges.
8110/00 9/01/0 9/
Basic Service Charge $1.65 51.50 $2.00 Per customer per month
Energy Charge $.0276 $.0293 $.0310 Per watt of active load per month
The actual labor,material,miscellaneous and indirect charges experienced maintaining and relamping traffic signals
during the preceding month.
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
:rax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the Board's property,or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Determination of Actiye_Load-The active load of flasher lamps or cyclically operated traffic control lamps shall be
50%of total wattage of all lamps used during one complete cycle of operation. The active load of continuous,non-
intermittent steady burning lamps shall be 100%of the total wattage of all lamps used.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Rules and Regulatious-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
NRY-30-2000 17:04 BD OF WRTER LIGHT 1 517 371 BB55 P.34i60
auruu v► yr atcl aiw JA6UL,i.:uuwg. ivilungari
PROPOSED
SPACE CONDITIONING AND
ELECTRIC WATER HEATING SERVICE
RATE NO.12
Availability-This rate is available to any customer desiring service for commercial/industrial space conditioning and/or
electric water heating furnished through a separate meter to which no other electrical device except electric space heating,
electric air conditioning,humidity control equipment or electric water heating equipment maybe connected. Electric
space heating will be considered to include heating by light system provided the primary means of space heating at the
time of maximum heating requirements will be furnished by the lighting system with the balance of the heating
requirements furnished by supplementary electric heating equipment. This rate is not available to new applications for
heat for light systems received after March 1, 1979. This rate is not applicable to the use of electricity for electric air
conditioning unless the customer has permanently installed electric space heating equipment and uses it as the principal
source of space heating,or to the use of electricity for occasional or seasonal substitute for another method of water
heating.
Nature of Servlee-The service is alternating current,60 hertz,single phase at Board of Water and Light(BWL)available
secondary voltage. Three phase service will be furnished at BWL option.
Mgnthly Rate-Shall be computed in accordance with the following charges.
8 1J 0/00 9 01 01 9/0y
Basic Service Charge $20.00 $20.00 $20.00
Energy Charge Summer Billing Months of June through October
$.0797 $.0822 $.0848 per kWh
Winter Billing Months of November through May
$.0495 S.0511 $.0526 per kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adjustment-This rate is subject to an Energy Cost Adjustment factor added to the above energy charges
and calculated as defined on a separate rate schedule incorporated herein by this reference.
Tax Adjustmeut-Bill shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the BWL property,or its operation,or the production
and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Cha ge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rulea grid Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted: Proposed Effective:August 10,2000
MRY-30-2000 17:04 BD OF WRTER LIGHT 1 517 371 BB55 P.35/60
Board of Water and Light,Lansino Michigan
PROPOSED
RESIDENTIAL ELECTRIC SERVICE,
SENIOR CITIZEN
RATE NO.21
Availability-T mil
This rate is available to any single fay or multifamily dwelling of 4 units or less when the entire electric
requirements are supplied at one point of delivery through the same meter. The customer must be 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 unit when a portion
of the residence or dwelling unit is used for commercial,industrial,or resale purposes unless the wiring is so arranged that
service for residential and non-residential 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-The service is alternating current,60 hertz,single phase, 120/240 nominal volts.
Montbly Rate-Shall be computed in accordance with the following charges.
810 9/0101 9/01/02
Basic Service Charge $3.50 $4.00 $4.25
Eaergy Charge $.0405 $.0429 $.0455 per kWh for the first 300 kWh
$.0683 $0.724 $.0768 per kWh for the next 200 kWh
$.0917 $.0971 S.1030 per kWh for all over 500 kWh
Minimum Bill-The minimum bill is the basic service charge included in the monthly rate.
Energy Cost Adlustment-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 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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the BWL.
Rules and Regulations-Service under this rate is subject to the BWL Rules and Regulations for Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:04 HD OF WRTER LIGHT 1 517 371 6655 P.36/60
nuaru uL w aLcr anu i tbnt,i,unsmg •cntgan
PROPOSED
STREET LIGHTING SERVICE
BOARD OWNED SYSTEMS
RATE NO.31
Availability-Available to any political subdivision or agency of the State of Michigan for street lighting service
for any system consisting of one or more luminaires where the BWL has an existing distribution system with
secondary voltage available. Luminaires may be installed with no limitations as to spacing between luminaires.
Where an overhead line extension is required to serve one or more luminaires, the BWL will furnish 350 linear feet
of line extension per luminaire served from such extension. A special agreement will be required if more than 350
linear feet of line extension per luminaire is required_
Nature of Service-The BWL will furnish,install, own,operate,and maintain all equipment comprising the street
lighting system,and supply the unmetered energy. The BWL reserves the right to furnish service from either a
series or multiple system or both.
Annual Rate-The annual rate per luminaire with fixture and setting,payable in twelve(12)monthly installments,
shall be as follows;
High Pressure Sodium Luninsir 8/01/00 9101101 9/01/02
70 W $64 $66 $68
100 W $73 S75 $77
150 W $83 $86 $89
250 W $103 $106 $109
400 W $131 $135 $139
1000 W $266 $275 $284
Mercury Vapor Luminaire'
100 W $69 $71 S73
175 W $81 $84 $87
250 W $96 $99 $102
400 W $123 $127 $131
1000 W $233 S241 $249
Metal Halide Luminaire
175 W $142 S147 $152
250 W $163 $168 $173
400 W $165 $170 $175
1000 W 3320 $330 $340
I500 W $489 $505 $521
Induction Luminaire
85 W S69 $71 $73
165 W $82 $85 $88
Adopted: Proposed Effective:August 10,2000
'Rates apply to existing luminaires only and arc not open to new business except where the BWL elects,at the customer's
request,to install additional luminaires within an area already served by a mercury vapor lighting system.
MRY-30-2000 17:04 HD OF WRTER LIGHT 1 517 371 6855 P.37i60
nuuru ui wnrcr unu LlgRL,Lallsiug, cuigau
PROPOSED
STREET LIGHTING SERVICE
BOARD OWNED SYSTEMS
RATE NO.31
Annusl Rate(continued)
plus an additional annual charge,depending on type of installation,of
8/10/00 9/01/01 9/01102
Wood Pole—Overhead Service
Wood Pole—Underground Service $75 $77 $79
Concrete Pole—Overhead Service $116 $120 $124
Concrete Pole—Underground Service $116 $120 $124
Post Top $75 $77 $79
Historic—Single Top $241 $249 $257
Large Historic—Dual Top $706 $729 $752
Small Historic—Dual Top $503 $519 $535
Wall/Tunnel-8760hours $103 $106 $109
Wall/Tunnel—4200 hours $62 $64 $66
Bollard $239 $247 $255
Customer Cogtribution-The annual rates are based on fixtures normally stocked by the BWL,and installed
utilizing normal construction techniques. The BWL may, at its option,upon customer request install a street
lighting system not covered by the rates below. The customer, after installation,will be required to make a one time
contribution equal to the difference between the actual installed cost and the BWL estimated installed cost of a
standard installation. The annual unit charge for each luminaire will then be as stated below_
Unit Ryplacemcn. -The BWL may, at its option,upon customer request replace existing street light units. After
installation,the customer shall make a one time contribution equal to the undepreciated value of the unit plus the
cost of removal.
Special Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to
termination charges,contributions in aid of construction,term or other special considerations when the customer
requests service,equipment or facilities not normally provided under this rate.
Tax Adiustment-Bills shall be increased within the limits of any govemmental authority or political subdivision
which levies taxes,license fees,franchise fees,or any other charges against the BWL property,or its operation,or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:05 HD OF WRTER LIGHT 1 517 371 6655 P.38/60
LV(4Y Vl ,r"-I "U3 Llglll,LOlW III�,' V111�,GJI
PROPOSED
STREET LIGHTING SERVICE
CUSTOMER OWNED SYSTEMS
RATE NO.32
Availability-Available to any political subdivision or agency of the State of Michigan for street lighting service
for any system consisting of one or more luminaires where the BWL has an existing distribution system available.
Nature of Service-The BWL will connect the customer's equipment to BWL lines, furnish the control equipment,
supply the unmetered energy,control the burning hours of the lamps,provide normal replacement of luminaire
refractors, control devices and Iamps. The customer will furnish,install and own all equipment comprising the
street lighting system,including,but not limited to the overhead wires or underground cables between luminaires
and the supply circuits extending to the point of attachment with the BWL. All maintenance and replacement of
the customer's equipment except normal lamp and glass replacement shall be paid by the customer. The BWL
reserves the right to furnish service from either a series or multiple system or both.
Annual Rate-The annual rate per lununaire,payable in twelve(12)monthly installments,shall be as follows:
High Pressure Sodium Luminaire 8/01/00 9/01/0 9 0] 02
70 W $33 $34 $35
100 W $43 $44 $45
150 W $52 $54 $56
250 W $72 $74 $76
400 W $101 $104 $107
1000 W $237 $245 $253
Mercury Vapor Luminaire'
175 W $48 $50 $52
250 W $65 $67 $69
400 W $91 $94 597
1000 W $202 $209 $216
Incandescent Luminairez
2500 L $68 $70 $72
4000 L $108 $111 $114
6000 L $130 $134 $138
Maintenance Charge-The actual labor,material,miscellaneous and indirect charges experienced maintaining street
light units during the preceding month.
Combined Rates-The annual rate for units consisting of more than one luminaire shall be the appropriate
combination of individual unit charges above.
Adopted:Proposed Effective:August 10,2000
'Rates apply to existing luminaires only and are not open to new business except where the BWL elects,at the customer's
request,to install additional luminaires within an area already served by a mercury vapor lighting system.
Rates apply to existing luminaires only and are not open to new business.
MRY-30-2000 17:05 BD OF WRTER LIGHT 1 517 371 6855 P.35/60
PROPOSED
STREET LIGHTING SERVICE
CUSTOMER OWNED SYSTEMS
RATE NO.32
Sneeial Terms and Conditions-The BWL reserves the right to make special contractual arrangements as to
termination charges,contributions in aid of construction,term or other special considerations when the customer
requests service, equipment or facilities not normally provided under this rate.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees,franchise fees, or any other charges against the BWL property, or its operation, or
the production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from
being compelled to share such local increases.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill that 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 Electric Service
incorporated herein by this reference.
Adopted.Proposed Effective:August 10,2000
MRY-30-2000 17:05 BD OF WRTER LIGHT 1 517 371 6B55 P.40i60
PROPOSED
ECONOMIC DEVELOPMENT RIDER
Purpose-The primary purpose of this rider is to enhance economic development in the Board of Water and Light
(BWL)service area. It will be offered to customers when,in the utility's judgment, the availability of the rider is a
major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the
BWL and its customers.
Availability-This rider is available to industrial customers on Large General Electric Service Rate No. 4 or Primary
Electric Service Rate No. 5 or Large Capacity Electric Service Rate No. 8. For purposes of this rider, an industrial
customer is defined as any business that manufactures a product for sale or research and development. This would
include usage for facilities directly associated with and on the same premises as the manufacturing business such as
offices and warehouses. A customer desiring service under this rider must contract for such service on or before
December 31, 2003. 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-A new customer is a new industrial customer taking service on or after January 1, 1991,
where the new load results in 100 kW or more of billing demand.
Existing Customer-An existing customer is an existing industrial customer who contracts for a bona fide
increase in connected load resulting in an increase of 100 kW, or 10% of their historical billing demand,
whichever is greater, or more of billing demand on or after January 1, 1991.
Monthly Rate
Capacity Charge: A percentage of the capacity charge included in the principal service rate, less credits, as follows:
Contract
Year %
1 50%
2 60%
3 70%
4 80%
5 90%
Contracted Histulcal Billing Demand-An existing customer's contracted historical billing demand will be the
average of the three highest registered demands, including metering adjustments, during the twelve(12)month period
prior to the contract or as established by mutual consent. The contracted historical billing demand shall be subject to
the 60%provision during the contract period. The BWL reserves the right to establish a contracted historical billing
demand for all customers with duplicate or replacement operations within the BWL service area.
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 or 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 customer's 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 Cheese-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: Proposed Effective: August 10, 2000
MRY-30-2000 17:06 BD OF WRTER LIGHT 1 517 371 6655 P.41i60
DOUTU UL W SLcr unu i-ism,L'amilig uugml
ENERGY COST ADJUSTMENT
The Energy Cost Adjustment permits the monthly adjustment of rates for the costs of energy incurred in supplying
electricity to retail customers. All residential and general service rates are subject to the Energy Cost Adjustment.
In applying the Energy Cost Adjustment the applicable rate per kWh shall be increased or decreased by the amount
of the current Energy Cost Adjustment. The following definitions and procedures will be followed in calculating
the monthly Energy Cost Adjustment
Definitions
Energy Cost Adjustment-the amount per kWh by which the applicable rates shall be adjusted for billing in each
month.
Energy Costs-those costs incurred in supplying retail electricity. Such costs include fuel burned, energy costs
associated with firm power purchases,net interchange power costs,and costs associated with other temporary power
transactions. The cost of fuel burned shall include the delivered cost of fuel(base cost,escalations,
premiums/penalties,transportation,demurrage),outside lab fees and other outside costs related to fuel procurement,
and fuel additives such as freeze proofing.
Over/Under Recovery-the difference between actual Energy Costs for prior months and the amount of energy
cost recovered by means of the Base Cost of Energy and the Energy Cost Adjustment. The Over/Under Recovery
shall be added to the Energy Costs for purposes of computing the Energy Cost Adjustment for each month.
Base Cost of Energy-the average Energy Cost included in the energy rates of the various rate schedules. Such
amount shall not be recovered by means of the Energy Cost Adjustment. The current Base Cost of Energy is
$0.017921 per kWh sold.
Procedures
Estimated Energy Cost shall be projected for a twelve-month period. Any amount of Over/Under Recovery
(positive or negative)shall be added to the Energy Cost to determine the total cost basis for the Energy Cost
Adjustment. The total cost basis shall be divided by the projected total retail billed sales for the twelve-month
period resulting in the average energy cost per kWh. The Base Cost of Energy shall be subtracted from the average
energy cost to result in the Energy Cost Adjustment.
The Energy Cost Adjustment shall be reviewed and,as necessary,revised periodically in accordance with the
provisions of this schedule,but not less frequently than every twelve months.
Effective February 2, 1999,through February 2,2003, the Energy Cost Adjustment is frozen at$0.001000 per kWh_
Thus,the total cost of fuel and purchased power charged to customers is set at$0.018921 per kWh(Base 0.017921
+ECA 0.001000).
Adopted: 1/26/99 Effective:2/1/99
MRY-30-2000 17:06 BD OF WRTER LIGHT 1 517 371 6855 P.42i60
SCHEDULED CURTAILMENT/INTERRUPTIBLE SERVICE RIDER
Availability-This rider is available to customers on Primary Electric Service Rate No. 5 or Large Capacity Electric
Service Rate No. 8 and any applicable future primary or transmission service rate approved by the commissioners.
A customer desiring service under this rider must contract to curtail or interrupt its demand by 1,000 kW or more,
upon notice by the Board of Water and Light(BWL). The amount of curtailable or interruptible demand subject to
this rider may be limited by the Commissioners in total and by customer.
Conditions of Curtailment/Interruption-The Commissioners may determine the total kW demand subject to this
rider. The General Manager has authorization to negotiate with qualifying customers as to the following terms and
conditions of this rider; [1] the customer kW demand subject to interruption or curtailment, (2]metering
requirements, [3] the duration of any interruption or curtailment, [4]the notice period,and, [5]buy through
provisions(if any).
The contract with the customer will contain the conditions under which the BWL will require curtailment or
interruption. Any reduced rate available will include some contribution to fixed costs and depend upon the
customer's individual circumstances.
The customer agrees to pay$50 per kW for the highest 15-minute kW demand created during the curtailed or
interrupted period plus replacement energy out of pocket cost plus 10%should the customer choose not to curtail or
interrupt electric load.
Definitions
Cg_tailed load-The customer agrees to reduce electric load upon notice from the BWL.
Interrupted load-The customer agrees to receive no electricity upon notice from the BWL.
Adopted:December 14, 1999 Effective:January 1,2000
MRY-30-2000 17:06 BD OF WRTER LIGHT 1 517 371 6B55 P.43i6O
....vim..v_ .._..... ....... .0.., �...._O- ...._.b.�.
This rate is canceled
R ♦ tSING CITY ENTERPRISE
NT RPRIS C(M MUNITV REBATE
and-6 .. de L1 .he G oft _—
vr � J C
e
;. q:h,'a rebate iq not eysilable t,&BleeRie Rate 4 of Sleetimic Rate 5 eustemer-9 whe sign a eentfeet fei-senie
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:06 BD OF WRTER LIGHT 1 517 371 6855 P.44/60
......... ..... . _..,..e.............
r ..b ..
PROPOSED
RENEWABLE ENERGY RIDER—
(GREEN PRICING RIDER)
Nature of Service:The BWL will provide green power to system per the participant enrollment,however,the BWL does
not guarantee that the actual electricity delivered to each participant's facility at any specific time will be produced from a
green supply resource.
Anilability-This rider is available to customers making use of any BWL Electric Rate Schedule.
Monthly Rate—Customers electing this premium service option will receive an additional charge for monthly energy of
up to$7.50 per month for each 250 kWh block of electricity they choose to purchase under this rider. Actual prices will
be published each November and will be based on the expected additional cost of renewable resources and other
rcncwable/conservation programs for the upcoming year. Participation will be limited to the amount of resources that the
BWL is able to secure.
Mintmom BW:If the participant's actual monthly consumption is less than 250 kWhs,the participant will be charged for
the full month's premium.
Term and Form of Contract:All participants for this service under this rider will require a written contract stating the
number of 250 kWh blocks and the specified period of Time in which they will be enrolled.
Adopted:Proposed Effective:August 10,2000
MRY-30-2000 17:06 BD OF WRTER LIGHT 1 517 371 SB55 F.45i60
noara or waver ana LAgnL, La- ng, ivucwgau
PROPOSED
RESIDENTIAL WATER SERVICE
RATE NO.1
AyailgbilitY-This rate is available to any single-family residence or multifamily dwelling of 4 units or less served
by one meter.
Monthly Rate-Shall be computed in accordance with the following charges.
Basis Service Charge:per customer per month or part thereof:
Meter 8/10/00 2am 9/1/02
5/8" $5.55 $5.90 $6.20
3/4" $7.77 $8.26 $8.68
1" $14.43 $15.34 $16.12
1'/a"or 1'/2" $32.19 $34.22 $35.96
2" $56.61 $60.18 $63.24
Commodity Charge:per ccf of water used per month;
Commodity Charge:per ccf of water used per month;
$1.34 $1.41 $1.48
Power and Chemical Cost Adjustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.1¢ 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.
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 Basic Service Charge applied for 30 days.
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.
Anolie 'o Chafe-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the 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:Proposed Effective:August 10, 2000
1
MRY-30-2000 17:07 90 OF WRTER LIGHT 1 517 371 BB55 P.46i60
PROPOSED
GENERAL WATER SERVICE
RATE NO.2
Availability-This rate is available to any customer served on the BWL's water system. Service under this rate is
not available for resale.
Monthly Rate-Shall be computed in accordance with the following charges.
Basic Service Charge:per customer per month or part thereof;
Meter 8/10/00 9/1/01 9 0
518" $5.55 $5.90 $6.20
3/4" $7.77 $8.26 $8.68
1" $14.43 $15.34 $16.12
1%" or 1%" $32.19 $34.22 $63.24
2" $56.61 $60.18 $35.96
3" $127.65 $135.70 $142.60
4" $227.55 $241.90 $254.20
6" $511.71 $543.98 $571.64
8" $909.09 $966.42 $1,015.56
10" $1,420.80 $1,510.40 $1,587.20
Commodity Charge:per ccf of water used per month;
$1.34 $1.41 $1.48
Power and Chemical Cost AdiuS ment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.10 per ccf billed for each 0.10 increase or decrease in the average cost of power and chemicals
required to deliver treated water to the customer's meter above or below 17.5$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.
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 Charee-The minimum charge shall be the above Basic Service Charge applied for 30 days.
Delayed Payment Charee-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective ofprior 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:Proposed Effecrive:August 10,2000
MAY-30-2000 17:07 BD OF WRTER LIGHT 1 517 371 6B55 P.47i60
DUaLLU UL VVLILCL iLUU JUIrUL, LO 'LS, l�ubausnu
PROPOSED
WATER SYSTEM CONNECTION FEES
RATE NO.3
System Connection Fees-The following schedule of fees shall apply to all new water service connections made to
the mains. This fee shall not apply to active services which are being replaced.
Service Size Connection to
Main 8/10/00 9/1/01 9
JQJ/02
3/4" $1,223 $1,295 $1,365
1', $2,272 $2,405 $2,535
1'/,"or $5,068 $5,365 $5,655
2" $8,913 $9,435 $9,945
3" $20,097 $21,275 $22,425
4" $35,825 $37,925 $39,975
6" $80,562 $85,285 $89,895
8"and over $143,124 $151,515 $159,705
Tay: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.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance, excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: Proposed Effective: August 10,2000
MRY-30-2000 17:07 BD OF WRTER LIGHT 1 517 371 6855 P.48i60
DUHrU Ul VViltCr YUIU L1g1AL7 Lb UJ;1 1YJULAU9&U
PROPOSED
FIRE SERVICE
RATE NO.4
Fire Service - A fire service line will be installed to a fire hydrant(s)or a customer's detector check valve in
accordance with the schedule of charges for water system connection fees(Rate 3)and the current water service
installation charges set forth in the Rules and Regulations for Water Service. The location of the detector check
valve shall be determined by the Water Distribution Engineering Department.
Fire service lines shall be used for Ere protection purposes only. No additional charges will be made for water used
for testing and fire purposes. The customer shall maintain the detector check valve and fire protection system
connected thereto in good condition in compliance with Section 34-9,Repair and Protection of Equipment,of the
Code of the City of Lansing,Michigan.
Mon h ire Service Charge-Water supply and maintenance of a fire service line to a detector check valve shall
be provided in accordance with the following schedule of charges:
Service Size 8 10 00 9/1101 9/01/02
4"or smaller $40 $42 $45
6" $90 $95 $100
8" $160 $170 $178
10" or larger $250 $265 $278
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes,license fees, franchise fees,or any other charges against the 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-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Rules and Regulations-Service under this rate is subject to the Board of Water and Light Rules and Regulations
for Water Service which are incorporated herein by this reference.
Adopted: Proposed Effective: August 10, 2000
4
MAY-30-2000 17:07 BD OF WRTER LIGHT 1 517 371 BB55 P.49i60
PROPOSED
LAWN SPRINKLING WATER SERVICE
RATE NO.5
AvailabLty-This rate is available to any customer served on the BWL's water system where the meter or service is
installed solely for lawn sprinkling. Municipalities having jurisdiction over sewer system rates may designate other
uses of water which are subject to this rate.
Monthly Rate-Shall be computed in accordance with the following charges.
Basic Service Charge:Billings subject to this rate are not subject to a Basic Service Charge.
Commodity Charge:per ccf of water used per month
8/10100 9 1 O1 9/l/02
all ccf $1.34 $1.41 $1.48
Power and Chemical Cost_,t#djustment-The power and chemical cost adjustment shall consist of an increase or
decrease of 0.1¢per ccf billed for each 0.10 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.
Tax Adiustment-Bills shall be increased within the limits of any governmental authority or political subdivision
which levies taxes, license fees, franchise fees,or any other charges against the 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-Billings subject to this rate are not subject to a minimum charge.
Delayed Payment Charge-A delayed payment charge of 5%of the unpaid balance,excluding delayed payment
charges,shall be added to any bill which is not paid on or before the due date.
Application Charge-A$7.00 charge shall be added to the first regular bill for all customers turning on service at a
service location irrespective of prior service with the 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:Proposed Effective:August 10,2000
S
MRY-30-2000 17:OB BD OF WRTER LIGHT 1 517 371 6855 P.50i60
yuaa u uu •r a&C& auu anguy AaV- vJs, naauusau
PROPOSED
FIRE HYDRANT CHARGES
RATE NO.6
Annual Fire Hydrant Charge- Water Supply and maintenance of a fire service line to a public or private fire
hydrant shall be provided in accordance with the following annual schedule of charges:
8/10 00 1 Ol 2/1 m
All Hydrants $305 $320 $336
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-Billings subject to this rate are not subject to a minimum charge.
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 Ree,ulatio -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:Proposed Effective: August 10, 2000
6
MRY-30-2000 17:08 BD OF WRTER LIGHT 1 517 371 EB55 P`51i6Oy "
13 UlLl U UL ♦V LLLCL UUU LIKULI J-wl�.Lllb', 1�'Lll.'111�4J1
This page Is canceled
r •�Tcrwrr GIPJ T RMSE r�nuRlL,r PNWIZ RtQ mE
�r�+rn:u-iQo'a cvi�niror�ri�c xa�araTa
Affpese Th se F hi r-e1... Leming GifY
BIN
i A,15,
d act Sete._. :_ed b-f rt,e Git.. . _"S
-rs sr®a ov vi-o=rvcccczaaac�-r-�+wvi--�anaaa�},
estAbliehed- Ail pFeA46ioas 4 iWe i-ebaie afe The some as the piineipsl-waw, eleetfie or steam serviee rate with
City Geffffatinity.
Adopted: Proposed Effective: August 10, 2000
7
...... -ten ^�nnn r7• C 1 C-117 771 G.GIci� 99% P.51
MRY-30-2000 17:08 BD OF WRTER LIGHT 1 517 371 6855 P.52i60
Board of Water and Light, Lansu lEchigan
PROPOSED
GENERAL STEAM SERVICE
RATE NO. 1
Availability-This rate is available to any customer receiving smicc from the Board of Water and Light(BWL)steam
distribution 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 be supplied at the option of the BWL or upon
request by the customer.
Nature of Se ice-Saturated steam up to a maximum gauge pressure of 15 psi except as indicated above.
Monthly Rate
Shoo 9/1/Ol 9/l/02
Basic Service Charge $5.00 $6.00 $7.00 per customer per month
Commodity Charge Billing Months of June through November
$6.55 $6.75 $6.95 per 1000 lbs. for the first 200,000 lbs.
$6.90 $7.15 $7.35 per 1000 lbs. for all 1000 lbs.over 200,000 lbs.
Billing Months of December through May
$6.65 $6.85 $7.05 per 1000 lbs for the first 200,000 lbs.
$7.00 $7.25 $7.45 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($0.0005)
cents or less will not be considered a full 0.1 ($0.001)cent; a fraction of 0.06($0.0006) cents or greater will be considered
a full 0.1 ($0.001)cent.) The price per million Btu 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(lbs)billed. The factor shall
consist of 1.124 times the weighted average amine cost per 1000 lbs 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 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 bcing compelled to share
such local increases.
Minimum Charge-The Basic Service 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 fum.ishing service.
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.
Reconnect Charge-A reconnect charge of$25.00 shall be added to any account which discontinues and reconnects
service at the same address within a twelve(12)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: Proposed Effective:August 10.,2000
1
MRY-30-2000 17:OB BD OF WRTER LIGHT 1 517 371 6655 P.53i60
Board of Water and Light, Lansu liichigan
INDUSTRIAL STEAM SERVICE
RATE NO.2
Availability:_This rate is available to any customer engaged in muting 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: $0.80 per pound per hour(lb/hr)for all lb/hrs of contract
demand.
$0.70 per pound per hour(lb/hr)for all lb/hrs exceeding
contract demand
Commodity Charge: $3.88 per thousand pounds (Mlb)
Fuel Cost Adiustment; 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 (51,683)cents per million Btu. (A fraction
of 0.05($0.0005)cents or less will not be considered a full 0.1 ($0.001)cent;a fraction of 0.06($0.0006)cents or
greater will be considered a full 0.1 ($0.001)cent.] The price per million Btu for each billing month shall be the
average delivered cost of fuel consumed during the preceding calendar month_
Minimum Charge: Monthly Demand Charge above.
Tax 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 BV&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(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 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
2
coaz�- a4x P.53
MRY-30-2000 17:09 BD OF WRTER LIGHT 1 517 371 6855 F.54i60
Board of Water and Tight, Lansin,,, Michigan
GENERAL STEAM SERVICE
RATE NO.3
Availability-This rate is available to any customer receiving service from the Board of Water and Light(BWL)steam
transmission or distribution system.with a gauge pressure in excess of I GO 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. This service may include both firm and curtailable service.
Month Rate -Per contract terms.
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 163.3 ($1.683)cents per million Btu.(A fraction of 0.05 ($0.0005)
cents or less will not be considered a full 0.1 ($0.001)cent; a fraction of 0.06($0.0006)cents or greater will be considered
a full 0.1 ($0.001)cent.) The price per million Btu for each billing month shall be the average delivered cost of fuel
consumed during the preceding calendar month.
Amine Treatment Adjustment-Per contract terms.
Tax Adjustment-Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees,franchise fees,or any other charges against the BWL's property, or its operation,or the
production and/or sale of steam,to offset any such cost and thereby prevent other customers from being compelled to share
such local increases.
Minimum Charge-Per contract terms.
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,unless superceded by the terms and conditions of the customer contract.
Adopted: July 30, 1996 Effective:August 15, 1994
3
M CA
MRY-30-2000 17:05 HD OF WRTER LIGHT 1 517 371 6655 P.55i6O
Board of'Water and Light, LansL_ Achigan
This Rate is Canceled
LANSNG GPM-7 x-: scx,crya vvM rcMrsZwvrrcn
2,3�,7,Sz'��z3zA,13, and 65 of as dotefmimed by the Gify ei
M It {.Ilir This 1.ate iq 'i 1,1e t w,. yefif pe-4
_ed-&am the date the lAming Git 1;ateipriae Ge nity io
iiuro rebate is available eab,to eusEemeF9-javaDing @ new water, el---.',, seryiee in the LAwing City
3. This rebate is neE available Ee Eleetfie Rate 4 er Elemie Rate 5 eastemefs whe sign a emtmet fetf qefviee Unde
Adopted: Proposed Effective: August 10, 2000
4
,. .� can Ana cocc QQv P_SS
MAY-30-2000 17:09 BD OF WRTER LIGHT 1 517 371 6B55 P.56i60
Board of Water and Light, Lansh. vfichigan
PROPOSED
GENERAL CaMLED WATER SERVICE
RATE NO.4
Availab
Ili
1—this rate is available to any customer desiring service from the Board of Water and Light(BWL)district
cooling system. Service will be provided upon the customer entering into a contract with the BWL. The contract will
govern the customer's contract demand and terms and conditions of service,which may vary due to customer requirements
and the impact on BWL facilities. This rate is not available for standby or emergency service.
Mont U Rate—Shall be computed in accordance with the following charges:
Capacity Charge: $40.64 per ton for all tons of billing demand less than or equal to 105%of the contract
demand,and$56.90 per ton for all tons of billing demand exceeding 105%of the contract demand.
Commodity Charge: $0.115 per tan-hr
Tax Adiustment—Bills shall be increased within the limits of any governmental authority or political subdivision which
levies taxes,license fees, franchise fees,or any other charges against the BWL's property, or its operation,or the
production and/or sale of electrical energy,to offset any such cost and thereby prevent other customers from being
compelled to share such local increases.
Minimum Monthly Charge—The capacity charge included in the rate.
Billing Demand—The billing demand shall be the maximum demand(tons)supplied during the 15-minute period of
maximum use,but not less than 85%of the contract demand. The General Manager is authorized to waive billing demand
in excess of 105%of the contract demand where such billing demand is incurred is the result of emergency conditions on a
customer's system and such emergency condition is caused by equipment or piping failure and the BWL concurs in the
existence of an emergency condition.
Temperature Factor Adiustment—During the months of May through October; if the customer's return water
temperature is below 57 degrees Fahrenheit(F), the customer's commodity charge will be increased by 2.0%for either; (1)
each degree Fahrenheit the customer's supply and return water temperature differential is less than 15°F or, (2)each degree
Fahrenheit the customer's return water temperature is below 570 F,whichever is less. The General Manager is authorized
to waive the application of the Temperature Factor Adjustment where warranted in cases of customer hardship where such
hardship is caused by facilities constructcd prior to the BWL's District Cooling System.
Metering—All services using chilled water from the BWL chilled water system shall be metered. The BWL shall,through
consultation with the customer, determine the form in which the commodity shall be metered.
Delayed Payment Charge—A delayed payment charge of 5%of the unpaid balance,excluding delayed payment charges,
shall be added to any bill that is not paid on or before the due date.
Rules and Reg ations—Service under this rate is subject to the BWL Rules and Regulations for Chilled Water Service
that are incorporated herein by this reference.
Adopted:Proposed Effective:August 10,2000
5
MRY-30-2000 17:09 HD OF WRTER LIGHT 1 517 371 6B55 P.57i60
BOARD OF WATER AND LIGHT,CITY OF LANSING MICHIGAN Revenue Increases W=7%, EC3%, S=1%
BUDGET FISCAL YEAR ENDING JUNE 30, 2001 Chilled Water in Steam Utility Excludes CUC
WATER ELECTRIC STEAM TOTAL
PROJECTED INCOME STATEMENT$(000) FYM2001
,SALES ccf/kwhlmlb 10,982,316 3,137,770,000 2,410,780
JOPERATING REVENUE 18,865 162,669 17,229 198,663
Operations and Maintenance Expense 13,252 135,787 12,743 161,782 "
j Depreciation Expense 3.134 16.934 LEI 21.587
,TOTAL OPERATING EXPENSE 16,386 152,721 14,262 183,369
;OPERATING INCOME
2,479 9,848 2,967 15,2941
Other Income 1,647 3,947 584 6,178
Other Expense 1.424 1 m -4,M
'NET INCOME 2,702 12,198 2,485 17,385
i
)NET INCOME AFTER CITY PAYMENT 2,119 6,836 1,812 10,767
(RETURN ON NET ASSETS (3/31/00) 1.9% 2.9% 5.3% 2.8%.
,OPERATING RATIO_ _.,.,,_..._ _. _ 90.0% __ Y 97.22% _. 86.7% _ _......,._95:6%1
!PROJECTED CASH FLOW$(000)W FY 2001.
Restricted Operating Cash 1,971 16,535 1.900 20,406
i Restricted General Cash (1,981) 16,155 (3,374) 10,800
Special Project/Construction Cash 5.618 7.618 20.812 34.938
BEGINNING CASH 7-1-2000 5,608 40,308 19,338 65,254
F Sources of Cash
i Net Income 2,702 12,198 2,485 17,385
Bond Proceeds 9,000 0 11,000 20,000
Depreciation 3.134 16,934 1.519 21,587
TOTAL SOURCES OF CASH 14.82 29,132 15.QSL4 58,972
g=URCES OF CASH +BEGINNING CASH 2O,444 89,440 34,342 124,226 ,
1
Uses of Cash
{ Debt Principal 971 1,671 1,318 3,950 .
{ Transfer Repayment 343 (592) 249 0
Capital Expenditures 7,049 29,472 29,991 66,512
I Payment to City �@3 5.362 6 618
`TOTAL USES OF CASH 8,946 35,913 32,231 77,090
Restricted Operating Cash 1,657 16,973 1,593 20,223
Restricted General Cash 3,237 6,000 1,000 10,237
Special Project/Construction Cash 6.604 10,554 L4.8Z.1 16.67
PENDING CASH 6-30-2001 11,498 33,527 2,111 47,136
sY.rr�.�+h....w..r..r�._.r.�r_..+w.w�.......-.._i._-..r._.�-...__..�.._-�......__._i.�.-...__.•..._.�i....rer.....i�.M...._....J�.__.wvw.�._.��_._�,..r...,w..r..n+.ir.r..wr_�__
.....- -- --- 1 71 Z7/ C.QCZcl- 4q% P.57
MAY-30-2000 17: 10 BD OF WRTER LIGHT 1 517 371 6655 P.58/60
BOARD OF WATER AND L,GHT, CITY OF LANSING MICHIGAN
BUDGET FISCAL YEAR ENDING JUNE 30, 2001
CENTRAL UTILITY COMPLEX
PROJECTED INCOME STATEMENT$(000) FY 2001
SALES 0
OPERATING REVENUE 616
Operations and Maintenance Expense 560
Depreciation Expense Q
TOTAL OPERATING EXPENSE 560
OPERATING INCOME 56
Other Income 1,500
Other Expense Q
NET INCOME 1,556
NET INCOME AFTER CITY PAYMENT N/A
RETURN ON NET ASSETS (3/31/00) N/A
OPERATING RATIO 90 9%
PROJECTED CASH FLOW$(000) FY 2001
Restricted Operating Cash 0
Restricted General Cash 0
Special Project/Construction Cash QO,000
BEGINNING CASH 7-1-2000 60,000
Sources of Cash
Net Income 1,556
Bond Proceeds 0
Depreciation Q
TOTAL SOURCES OF CASH 1.556
SOURCES OF CASH + BEGINNING CASH 61,556
Uses of Cash
Debt Principal 0
Transfer Repayment 0
Capital Expenditures 61,500
Payment to City Q
TOTAL USES OF CASH 61,500
Restricted Operating Cash 0
Restricted General Cash 0
Special Project/Construction Cash 5L
ENDING CASH 6-30-2001 56
2
3
I
(�I
m
I
BOARD OF WATER AND LIGHT,CITY OF LANSING.MICHIGAN fV
m
BUDGET FOR FISCAL YEAR ENDING JUNE 30,2001 m
m
PROCESS SUMMARY-OPERATIONS AND MAINTENANCE EXPENSE
N
Produclkn Restated for BUdgel Camp dson
Fuefs/Chernica15 Outside m
Burden Malarial& &Purchased Services Expenses to Number of
Net Labor an tabor Supplies Power S Other Total Water Electric Steam be Distributed Total Emptayees
0] [2) (31
STING PROCESS 673,8D2 303,054 17.200 - 115,099 1,109,155 180,472 833,623 87,060 - 1,1D9,155 11.0
Iz]
3MER SERVICE PROCESS 3.518,161 2,008,806 208.112 - 1.863,049 7,599,128 2,465,603 5,041,646 40,354 51,525 7,599.128 5-4 C7
O
ERY PROCESS 8,552,143 3,450,623 1,469.462 43,639,292 2.198,574 59,310,294 2,315,089 52.419.372 619.947 3,955,876 59.310,294 206.0
UCTION PROCESS 14,656.804 7,177,101 5.441.400 46,468,121 8,579,597 82,343,113 7.409.590 01.287,983 11,393,903 2,251,629 82,343,113 300-5
m
ESS SUPPORT 1,178,330 1,881,573 522,000 - 1,420,7D0 4,982,6D3 - - 4,962,6D3 4.962,603 83.0 r
IESS SUPPORT 2,483.726 1.584.631 203.559 1,665.175 5.937,282 9,050 5,927.432 5,937.282 50.0 :1E
:ANCES,PAID TIME-OFF&OTHER 9.854,261 (16.306.180) - 16,592,204 10,060,377 32,100 379,000 30,500 9,618,777 10,060.377 17.0
GRAND TOTAL 40,917,417 - 7,862,714 90,127,413 32,434,398 171,341,942 12,410,662 119,971,474 12,171.764 26,787,842 171,341,942 765.5
DlsMbLrW Expenses:
Spread to Water.Electric&Steam(41 841.305 15,814,981 571,665 (17.227,952)
Indirect Costs Spread to Capilel Budget(5] (9,000,D00) (9,000,000)
Expenses for the Central Utility Complex(6) (559,890) (559,890) :)
N
NET BWL BUDGET BY UTILITY 13,252,167 135,706,455 12,743,430 161,782,052 756.5
N
GJ
N
m
(n
ti]
0)
W m
MRY-30-2000 17: 10 BD OF WRTER LIGHT 1 517 371 6B55 P.60/60
BOARD OF WATER AND LIGHT—PROCESS SUMMARY FOOTNOTES
FISCAL YEAR 2001
1) Net Labor refers to the dollar amount of labor charged to operations and
maintenance expense accounts.
2) Burden on Labor applies a rate of 60% to all straight-time labor charges on
operations and maintenance expense accounts. The 60% burden rate
allocates employees' paid time off and supplements to pay to the proper
operations and maintenance expense accounts.
3) Outside Services and Other include such items as insurances, pension
funding, FICA, maintenance contractors, consultants, mileage
reimbursements, travel and conference.
4) Administrative, general, and engineering expenses are allocated to Water,
Electric and Steam Utilities based on such factors as personnel, labor
charges, fuel costs and meters in service.
5) Indirect costs applied to capital budget represents overhead charged to capital
expenditures and credited to expenses.
6) The Central Utility Complex expenses are excluded. The Central Utility
Complex has a separate budget.
4
Page 26
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT3 )
19
Tuesday, April 25, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to
order by Chair Diane Royal.
Present: Commissioners Ernest J. Christian, Charles M. Creamer, Mark A. Murray,
David O'Leary, Diane R. Royal and Judson M. Werbelow (by conference
phone).
Absent: Commissioners Rosemarie E. Aquilina and Ronald C. Callen.
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Christian, to
approve the minutes of regular session held March 28, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
Richard Taylor, Board of Water and Light (BWL) non-bargaining unit employee for the
Delivery Process, distributed a document which he prepared for the Commissioners
summarizing Board actions, discussions and memoranda, relative to the proposed BWL
compensation plan for non-bargaining unit employees. The document also listed questions
about the plan. In his address to the Board, Mr. Taylor made the following points:
• Many employees find the new salary ranges disagreeable.
• Questioned the sources of the new salary ranges.
Board Minutes Page 27
April 25,2000
• Questioned why an earlier consultant hired to assist with the job classification study
was replaced with Dorey, Reagan and Associates.
• Questioned the wage analysis relative to the percentage of employees at the minimum,
market rate and maximum of the pay ranges.
• Questioned how the Position Description Questionnaires (PDQ's), completed by non-
bargaining unit employees, were aligned with the market rates and titles of similar
positions.
Lori Pung, BWL non-bargaining unit employee in Financial Services, stated that
employees do not feel the proposed compensation plan is fair and that they were not given
adequate time to review the new pay plan before filing appeals. She made the following
points:
• Employees feel they are considered mediocre employees by having their base pay set at
market midpoint.
• The information was released prematurely without a lot of explanation.
• Employees are confused on the future direction of the compensation plan.
• Employees feel that the plan does not support or attract new competent employees.
Ms. Pung urged the Board to reconsider the plan.
General Manager Pandy responded to the issues raised. He stated that non-bargaining
unit employee PDQ's were used in job classifications. He reviewed the process for
employees to appeal their job classification within the new classification structure. He
took exception to the comment that employees are being treated as mediocre. He stated
that the compensation plan has both fixed pay and variable pay components to reward for
results. He displayed a slide that showed how the plan attempts to set base salaries at the
market rate for positions and to reward employees with additional variable pay for
performing at a high level. Other issues discussed included:
Pay ranges for each of the skill families will be adjusted each year based on a review of
the market, the condition of the economy, and the BWL's financial outlook.
Adjustments to pay ranges will be made in January followed by performance
evaluations in July.
• The BWL and the consulting firm of Dorey, Reagan and Associates collected
information from pay surveys that included pay data from hundreds of companies.
Major employers in the Lansing area as well as investor-owned and municipally-owned
utilities from across the country were represented in the data. A list of companies
surveyed was distributed and reviewed in detail with the Board.
Board Minutes
Page 28 April 25,2000
General Manager Pandy stated that management had listened to employee feedback with
the new plan and, based on that, will be recommending the following three proposed
changes to the Resolution to Adopt the New Compensation Plan for Non-Bargaining Unit
Employees (this item follows the Committee of the Whole Report): (1) variable pay will be paid in
a lump sum, rather than spreading it over 26 pay periods; (2) capping variable pay at the
range maximum has been lifted for FY 1999-2000 because it is a year of transition to the
new plan; and (3) the 65 per
will be used for the Technical Skill Family, Grades 1
through 6, rather than the 50 percentile.
Chairperson Royal announced that this item would be discussed in more detail when the
Committee of the Whole Report is considered.
COMMUNICATIONS
Letter from Boys & Girls Club of Lansing requesting BWL support for their 11`h Annual
Steak and Burger Dinner.
It was noted that management has already responded to this request. Received and placed
on file.
Letter from Rosemary Sullivan expressing concern with the proposed compensation plan
for non-bargaining unit employees.
Received and placed on file for pending discussion.
REPORTS OF COMMITTEES
COMMITTEE OF THE WHOLE REPORT
The Committee of the Whole met on April 11, 2000, to discuss the following items:
1. New Compensation Plan for Non-Bargaining Unit Employees
2. Preliminary Fiscal Year 2000-2001 Budget
3. Michigan State University Proposals
Present were Commissioners Aquilina, Christian, Creamer, O'Leary and Werbelow (by
speakerphone). Excused Absences were Commissioners Callen, Murray and Royal.
New Compensation Plan for Non-Bargaining Unit Employees
Human Resource Director Linda Gardner and Paul Reagan of Dorey, Reagan&
Associates presented the design objectives for the new compensation plan for Non-
Bargaining Unit employees. The pay plan was designed with the following basic
principles:
Board Minutes
April 25,2000 Page 29
• Internally equitable
• Externally competitive in the market
• Aligned with the BWL's success as a utility
The process undertaken in order to meet the design objectives included grouping
jobs into eight skill families based on similar skill requirements and analyzing the
skills, knowledge, duties and experience requirements of each job using the
Position Description Questionnaires completed by each of the job incumbents. Job
descriptions were reviewed by their Directors for accuracy, BWL jobs were
compared to similar jobs in the market and matched with survey benchmark jobs.
The market median pay rates were compared to BWL jobs within each skill family,
and pay ranges for each skill family were developed. A series of slides were
displayed to illustrate various examples of how employees will move through their
pay ranges.
Following a lengthy question and answer period, a separate Resolution to Adopt the New
Compensation Plan for Non-Bargaining Unit Employees was recommended for Board
consideration. (Proposed resolution is appended to the Committee of the Whole Report.)
Tentative Agreement Reached with the Union
General Manager Pandy reported that tentative agreement has been reached between the
management bargaining team and the union bargaining team on all issues. A summary of
the contract package was handed out for review. The current contract has been extended
to allow for ratification of the package; scheduled to take place on April 251h, A
recommendation will be coming to the Board for approval, subject to union ratification.
FY 2000-2001 Budget
OO&M and Capital Budget, A preliminary review of the FY 2001 budget was presented.
Summaries of the past ten years' budgets vs. actual expenditures for the total BWL were
reviewed. The complete FY 2001 budget and the adequacy of existing water, electric and
steam rates will be discussed at the Committee of the Whole in May for consideration and
subsequent recommendation to the Board.
Advertising Budget. Communications Director John Strickler and Dennis Pace of Pace &
Partners reviewed the rationale for the BWL's advertising program and what it can
accomplish. They reported that the advertising campaign has informed customers about
BWL attributes, programs and initiatives, and it has raised customer measures in
favorability, loyalty and customer satisfaction among those who have been exposed to the
messages. Following discussion, the Commissioners concurred with staff FY 2001
media placement proposal. Option two was selected recognizing that the election season
is approaching, thus a larger presence of advertising by the political media will be
occurring.
Board Minutes
Page 30 April 25,2000
Option Two
Total six months on the air
$142,000
200 GRPs/week(Gross Rating Points=reach x frequency)
Once the election is over, staff proposes that the o annual
return to the market with an
1 revenue (approximately $300,000
expenditure that would be annualize d at 0,2/0
currently), but which would save six months of advertisin mtedia that a ime. The e designed tol ell a
advertising is the placement of paid messages in the mass
product or service or promote the utility's attributes. Sponsorships are not counted in the
BWL's definition of advertising.
Michigan State University Retail Electric Service Options
d Marketing
Clyde Dugan, Director of Marketing and Mark Taylor, eUnn ers t (MSU)
presented an overview of a proposal being prepared for Michigan State
to provide retail electric service. At the request t MSU,
Ucapacity,am con is version of the electric
service options to provide MSU with 40MW of y
University's 4160-volt distribution system to c went and futureelectrion ic capacity
or
purchase of the entire MSU system. MS
requirements were reviewed along with a status of the W eUou lined The BWL's pr polsal
Five retail service options and associated investments
is being submitted to MSU in mid-April for consideration.
Respectfully submitted,
Charles M. Creamer, Chair Pro Tern
Committee of the Whole
Christian, to approve the
Motion by Commissioner O'Leary, seconded by Commissioner
Committee of the Whole Report.
at the
Discussion on the Proposed Compensation Plan: a CommiThe ttee of threed e Whole R port,resolution
on the new BWL compensation plan, which follows th
would be considered separately.
th Michigan
Commissioner Murray questioned the lack of direct e to arrive acomprison t Michigan m utilities, s
market
compared to the study, adjusting the national average
of b focus on
He noted that he fully supports the concept related to the balance between
merit performance based pay. He raised questions
isal versus skill development and training, and emphasized the
performance appra
ic method o
InIportance of having a systemat n� zure merit-based system of epay
expressed concern with simultaneously moving to a p
without having a performance appraisal system well implemented and well understood.
Board Minutes
April 25,2000
Page 31
Commissioner Creamer asked about the appeal and review process and the timing appeal notification to employees. g of the
Human Resource Director Linda Gardner provided an overview of the role Human
Resources, the directors and managers played in the notification process and the basis
an appeal. In response to a question from Commissioner O'Leary about the downside of
extending the appeal process, Ms. Gardner stated that the July 1, 2000, implementation
date for the compensation plan would be delayed. Also, extending the appeal process
would delay moving employees who are below the minimum of the range to the new
minimum, targeted for May 15,2000.
Commissioner Christian observed that the short time frame to digest the information
for employees to talk with their managers might preclude some employees from sub and
an appeal form. He suggested extending the appeal process by at least another week.fitting
Commissioner Royal noted that because the new compensation plan is significant)
changed as compared to the program currently in effect, her preference would be topostpone a decision on the proposed resolution until all Commissioners have an
Opportunity to review staffs responses to questions raised.
Action: The Committee of the Whole Report was approved, but the follow' resolution
was tabled. g on
Resolution to Adopt New Compensation Plan
for Non-Bargaining Unit Employees
BY THE COMMITTEE OF THE WHOLE
WHEREAS, Dorey, Reagan & Associates (consultant) was engaged by the BWL
(Resolution#2000-1-4) to assist staff with the following goals:
1• Recommend and implement changes to the Non-Bargaining Unit (NBU
compensation plan. )
2. Align the compensation system with a process-based organization.
3. Provide information enabling the BWL to design pay strategies, which are
market driven.
The last redesign of the BWL compensation system was conducted in June, 1980,
WHEREAS, Staff and the consultant presented details of the new compensation lan for
Non-Bargaining Unit employees with recommendations regarding changes. p
Board Mimttes
Page 32 April 25,2000
WHEREAS, as discussed by the Personnel Committee Obn relation to market is
and
approved by the Board, the Board of Water and Light base pay
established at the 50`h percentile.
WHEREAS, The internal equity issue related to o the TechBarnical
Skill
Family, Grades 1
through 6, was reassessed, especially in relation
RESOLVED:
1. That the report on the new BWL Compensation Plan for RN n-Bareagan Assogainingatesit
employees, submittedry Human il 4, 2000, e Resources
and filed
(consultant), dated April
[Changes below proposed by management are denoted in upper case.]
2. THAT BASED ON STAFF ANALYSIS ANDUB- SIEQ�S�L FA�MWILY THE
BOARD, THE MARKET RATE FOR THE TECHNICAL
GRADES 1 THROUGH 6--BE ESTABLISHED AT THE 65TH PERCENTILE OF
THE GRADE RANGE.
3. THAT THE 5% OVER MAXIMUM LIMIT FOR NON-BARGAINING UNIT
EMPLOYEE INCREASES BE LIFTED FOR T EMPLOYEES SCAL YEAR
FOR AONE--TIME
THIS QUALIFIES NON-BARGAINING UN
VARIABLE PAY INCREASE THAT MAY EXCEED THE MAXIMUM.
4, THAT THE MIVIDUAL VARIABLE PAY ART BE OFFERED IN 6 PAY PERIODS A
LUMP SUM RATHER THAN BEING SPREAD
5. That the General Manager be authorized to implement the recommended changes to
forth in the report onskill families effective
the salary ranges and pay structures as set
July 1, 2000.
6. That 3.5 percent of the Non-Bargaining Unit e c ploy
Jul ee ply oll e budgeted for FY
2001 to be used for performance increases effe y
20 .
Motion by Commissioner Murray, seconded by Commissioner Royal, to Table the rNon-Bargaining Unit employees and to
Resolution on the BWL Compensation Plan fo
refer it back to the Committee of the Whole.
Discussion: Following lengthy discussion, it was u decided
that management would
prepare responses to the questions raised for disc
Whole meeting.
Action: The resolution was TABLED and referred back to the Committee of the Whole
for further discussion and responses to questions raised.
Board Minutes
April 25,2000
Page 33
General Manager Pandy handed out a co
py of Which he wrote for the May issue of PIPELINEn article on the new compensation plan,
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate p ate
Secretary.
#2000-4-1
FUNDING PROCESS FOR RETIREE BENEFITS
RESOLVED, That the Board adopt a process for funding retiree benefits US b
VEBA Trust and, to the extent permitted by law, excess pension assets in the deft both a
benefit pension plan. As long as there are sufficient excess pension assets in the defined
benefit pension plan and Section 420 transfers are permitted b law, B defined
transfer amounts reimbursed from the defined benefit pension plan to thhe VEBA ty
Additional contributions to the VEBA Trust from BWL operating funds to SupplementTrust.
Section 420 transfers will not exceed the recommended annual contribution amount
required to cover current servic ze the unfunded e of active participants and amorti accrued
liability over 30 years. Valuations of the BWL's post-retirement benefit obligationrued
recommended annual contribution amount will be updat
consultants. ed periodically by benefits and the
By adopting this process for funding retiree benefits, BWL will begin to set aside
for the payment of retiree benefits in the future. The first transfer of about $3 2 money
from the defined benefit pension plan to the VEBA Trust will be made b June 3012000.
ion
Current law permits annual transfers in an amount equal to the amount paid duringthe
year on behalf of retirees. The ability to make these transfers of excess pension assets is
set to expire December 31, 2005.
Pension assets in the defined benefit pension plan may not be reduced below 125%
estimated pension obligation. The estimated available excess assets in the defined benefit
nehe
Pension plan are about $37 million. The estimated liability for retiree benefits is currently
efit
about $65.5 million, ntly
The recommended annual funding cost has two components: a normal cost that reflects
the accrual of service for active participants and an amortization of the unfunded a ects
liability. Based on a level dollar funding method and a 30-year amortization of the
ccrued
unfunded liability, the recommended annual contribution is currently $6.7 million. By
paying about $3.2 million directly from BVVL operating funds on behalf of retirees
reimbursing that amount from the defined benefit pension plan and transferring it to the
BA Trust, the maximum additional contribution to the VEBA would be about
$300,000 next year.
Board Minutes
Page 34 April 25,2000
Motion by Commissioner O'Leary, seconded by Commissioner Christian, to adopt the
resolution.
Action: Carried unanimously.
#2000-4-2
GRANTING OF USE AGREEMENT
RESOLVED, That the BWL grant a Use Agreement t located o the lat the north eSunsetty of Lansing for 4, Oend of t
of frontage on the southerly bank of the Grand River,
Street between Kaplan Street on the west and the railroad bridge that
ts spans oxe Grand
ately 14
River on the east; the parcel is one to 400 feet in width, a
nd acres. (Map attached). A substantial portion of the tRive�od Trail pl and tohmeet
City desires the property for the northern extension of the Lansing
MDNR requirements that the City acquire a riverfront property for park property that the
City sold to a developer.
roximately 30
The total parcel of land owned by the BWL at this as the Comfort Street location consists of pflyash landfilP'.
acres of land, a large portion of which was utilized
The BWL maintains monitoring wells within the proposed agreement area, which would
have to be protected in the Use Agreement.
In July of 1999, the City had an appraisal done which opined that the property had a
market value (as of 7/9/99) of$95,000. A complete property description as described in
the Use Agreement is on file in the Corporate Secretary's office.
Motion by Commissioner Christian seconded by Commissioner O'Leary, to adopt the
resolution.
Action: Carried unanimously.
92000-4-3
RETAIL WATER SERVICE AGREEMENT— CITY OF DeWITT
RESOLVED, That the Board enter into a Retail Water Service
wa eren all areas currently Agreement with ese ed
of DeWitt, a Michigan municipal corporation, City
to supply
by the City of DeWitt and in such areas as subsequently agreed to by the parties pursuant
to the Water Service Agreement.
FURTHER RESOLVED, That the CTe�ce Agreement ral r er and Corporate Secretary are
in such form as approved by the
authorized to sign the Retail Water S
Staff Attorney.
tian, seconded by Commissioner Creamer, to adopt the
Motion by Commissioner Chris
resolution.
Action: Carried unanimously.
Board Minutes
April 25,2000
Page 35
#2000-4-4
RETAIL WATER SERVICE AGREEMENT— TOWNSHIP OF DeWITT
RESOLVED, That the Board enter into Supplemental Agreement No. 5 to the Retail
Water Service Agreement dated July 14, 1995 with the Charter Township of DeWitt
to
amend the Water Service Area to include the entire extent of the Township. Further, to
provide water supply in all areas currently served by the Township and in such areas as
subsequently agreed to by the parties pursuant to the Water Service Agreement.
FURTHER RESOLVED, That the General Manager and Corporate Secretary are
authorized to sign Supplemental Agreement No. 5 in such form as approved b y the Staff
Attorney.
Motion by Commissioner Christian, seconded by Commissioner O'Leary, o to adopt t
resolution. p he
Action: Carried unanimously.
UNFINISHED BUSINESS
None.
NEW BUSINESS
None,
GENERAL MANAGER'S REMARKS
Ottawa Station Power Plant Awarded Redevelopment Grant. General Manager
Pandy reported that the State of Michigan has awarded the Board of Water and Light
Clean Michigan Initiative Waterfront Redevelopment Grant in the amount of$3 94I 60
to redevelop the waterfront at the Ottawa Street Power Station into a downtown 0
office/commercial/residential development. The grant cannot be used to redevelop
the
interior or exterior of the building. It is li
build mited to the public space surroundingthe build* and along the riverfront. Mr. Pandy noted that the grant offer for thisProject
is
contingent upon three factors: (1) completion of response activities for which the BWL is
responsible, (2) strong developer commitment; and (3) commitment to place the piazza
riverwalk, and outdoor public areas in city ownership or permanent easement. Staff will
work quickly to try to fill out the grant agreement and to comply with the terms of the
grant. Mr. Pandy reported that the project feasibility study from Steiner and Associates
has been delayed until mid-May.
Board Minutes
Page 36 April 25,2000
VIL
Rate Increase History. General Manager handy handed
ack t. The previo st opy the
inc ded
Rate Increase History page included with the Board p into a
thirty years of percentage increases, and the corrected commend general rate ncreas been dses for ll
twenty-year history. Staff plans to discuss and
utility services at the Committee of the Whole meeting to be held in May.
Newspaper Article Highlights the BWL's New Centtral til tot e LANSING STATE
ies Complex. General
Manager Pandy handed out a copy of an April 18, 2000, provide water,
articleJOURNAL featuring a story on the new centGMt1Grand River Asex osembly Plant. The
electricity and steam to the General Moto ( Tri en-Cinergy Solutions and US
g
article highlights the joint venture between the B e proposed osed Platinum
Filter. Mr. Pandy briefed the Boa
rd De
he locati
project (parts and assembly plain nt) Township and the prospect of another central
utilities complex to serve that new facility.
eneral Manager
d
Chilled Water Project Update. Ged water contract forasummer ait staff r
to
press the State of Michigan on the issue of a chill
conditioning of its downtown buildings. The BWL has d theSta e that he deadline
on the chiller equipment bids is Friday, April 29, 2000, consequently,
commitment is needed in order to take advantage of the favorablefa rable bids received by the
BWL and to meet next year's schedule for providing
Erickson Station Scheduled Outage Completed. General agerDaedy repo of rted that
Erickson Station's 18-month overhaul is completed. Richard Pef
ey,Production, and all the employees involved were congratulated
advised forthe modest amount of
the Board of a thrust
overtime that this six-week effort involved. Mr. handy a
the last major overhaul of
bearing failure at Eckert Station's 46 unit, He note atnat available options and solutions
Eckert's 46 turbine was done in 1995. Staff is evalu g
and will report back.
RE�,RKS BY COMMISSIONERS
None.
EXCUSED ABSENCES
By
Commissioner Christian, seconded by Commissioner Creamer, that the absences of
Commissioners Aquilina and Callen be excused.
Adopted unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE UBLID�HT WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF
Board Minutes
April 25,2000
Page 37
Brian Cooper, BWL non-bargaining uni
concerns with the proposed compensatt employee for the Delivery Process expressed
ion plan. Mr. Cooper prefaced his comments b
stating that with deregulation in the horizon, he is aware the BWL has to posture
be a competitive organization, He requested more information on how t y
p e itself to
study results were compiled, He noted also, based on the new compensation program,
he classification
that it might be appropriate for those employees who selected the Defined Be
Plan option to have another opportunity to evaluate their decision. Benefit Pension
Richard Taylor added to comments previously made at the beginning of the
stated that the employees put their best efforts into the BWL on a day-to-daymeeting. He
many put their lives on the line. He asked that employees be provided with a co s, and
completed Position Description Questionnaires, as many of them did not keep a file He again copy of their
g questioned why the report of an earlier consultant hired to pconduct copy.he
compensation study was not used.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Creamer, the
adjourned at 7:08 p.m, meeting
/s/Mary E. Sova, Secretary
Filed: May 1, 2000
--------------
Marilynn Slade, City Clerk
Page 13
MINUTES OF THE BOARD OF COMMISSIONERS' MEETINGr F-C E IV E D
LANSING BOARD OF WATER AND LIGHT ' 3 4 N I: 3 3
Ci T Y CLER
Tuesday, March 28, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to
order by Chair Diane Royal.
Present: Commissioners, Ronald C. Callen, Ernest J. Christian, Mark A. Murray, David
O'Leary, Diane R. Royal and Judson M. Werbelow (by conference phone).
Absent: Commissioners Rosemarie E. Aquilina and Charles M. Creamer.
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Christian, to
approve the minutes of regular session held February 22, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
COMMUNICATIONS
No cormnunications.
Page 14 Board Minutes
March 28, 2000
REPORTS OF COMMITTEES
#2000-3-1
PERSONNEL COMMITTEE REPORT
The Personnel Conunittee met on February 28, 2000, to review the results of the Board of
Water and Light Employee Satisfaction Survey, conducted by Market Strategies, Inc.
(MSI).
Committee members present were Cominissioners Christian, Royal, O'Leary, and
Werbelow (via speakeiphone). Also present was Commissioner Callen.
Communications Director John Strickler presented the results of the Employee
Satisfaction Survey. The main objectives of the survey were to explore links between
employee satisfaction and customer satisfaction and to provide basic information about
employee perfonnance, perceptions of the work environment, employee satisfaction and
retention. The survey was developed with cooperation and input from IBEW Local 352
as well as from non-bargaining employees who participated in focus groups. To ensure
confidentiality, the survey was conducted by written questionnaire, passed out to
employees at the workplace in sealed envelopes provided by MSI. Management did not
see the results of individual survey returns. Employees mailed the completed
questioiuzaire directly to MSI.
Survey results were cornrnunicated to all employees through a special issue of the Board
Digest and by group presentations on a face-to-face basis between Process Directors and
their employees.
The survey concluded that there is a strong link between employee satisfaction and
employee retention and between conditions in the workplace and employee satisfaction.
It found moderate links between employee satisfaction and customer satisfaction and
between workplace conditions and customer satisfaction. Satisfaction was found to be
somewhat higher among non-bargaining employees than bargaining unit employees.
Perceptions of senior management direction and senior management performance
received the lowest marks among employees. Employees were also strongly critical of
supervision's performance in providing feedback and evaluation. Results in these areas
were reviewed in detail. The MSI report points to areas that will have the greatest impact
on improving employee satisfaction. Improvements in employee perceptions of senior
management performance and direction will have the most significant impact, followed
by improvements in areas related to work envirorunent and support.
General Manager Pandy acknowledged that the survey results are serious and that it is
clear there is a lot of work to do to improve how management works together as a group
and to communicate the strategic directions to the workforce. He reviewed topics
discussed at a two-day retreat and the next steps as senior management journeys to
address the issues that emerged from the report. This included an outline of actionable
items, listing specific areas that management has committed to address relevant to
Board Minutes Page 15
March 28,2000
corporate direction, work environnnent, communication, relationship and senior
management performance. Mr. Pandy stated that senior management intends to involve
employees in seeking solutions.
The Personnel Committee engaged in lengthy discussion regarding the survey and its
findings. The committee encourages participation by all the Commissioners on how to
monitor and validate the progress of senior management's initiatives to improve
employee satisfaction. The committee will continue to monitor staff s progress in
developing solutions that will lead to better employee satisfaction and higher customer
satisfaction with regular reports to the Board for input.
Respectfully submitted,
/s/David O'Leary, Chair
Personnel Committee
Motion by Commissioner Callen, seconded by Commissioner Christian, to adopt the
Personnel Report as presented.
Action: Carried unanimously.
COMMITTEE OF THE WHOLE REPORT
The Connnittee of the Whole met on March 14, 2000, to discuss the following topics:
1. Policies Relative to Growth
2. Steam and Chilled Water Services
3. Water Service Agreement for City of DeWitt and DeWitt Township
Present were Commissioners Aquilina, Callen, Christian, Creamer, Royal, and Werbelow
(by speakerphone). Absent were Commissioners Murray and O'Leary.
Policies on Growth and Development. Director of Audits &Metrics Kellie Willson
made an executive summary presentation on proposed Board of Water and Light (BWL)
policies on growth and development. The following three policies were developed to
assure consistency and compatibility with respect to growth, clearly define authority
delegated to the General Manager, and define authority retained by the Board of
Commissioners:
Page 16 Board Minutes
March 28, 2000
LINE EXTENSIONS AND SERVICE TERRITORY
Purposes of this Policy
• Define the authority delegated to the General Manager with respect to line
extensions and service territory expansions.
• Define the criteria for extending service and for expanding the service
territory after the adoption of this policy. This policy does not apply to
plamled replacements or upgrades of existing infrastructure.
RESOLVED, That the Board of Commmissioners adopt the BWL's "Line Extensions and
Service Territory Policy."
#2000-3-2
Line Extensions and Service Territory Expansions Policy
General Manager's Authority:
The General Manager may authorize the extension of service to new or existing
customers when the following criteria are met:
• The project is economically justified according to the approved
guidelines and parameters and the justification has been formally
documented.
• The project complies with all regulatory and legal constraints.
• Utility services will not be adversely affected.
• The project does not specifically require approval by the Board of
Commissioners
The General Manager shall establish project evaluation guidelines and parameters and
review them at least annually with the Commissioners.
• Projects will be evaluated according to established guidelines.
Board of Cosnmissioners'Responsibility:
Approval of the Board of Commissioners shall be required for the following:
• All new agreements with a municipality for water service territory
expansions after the adoption of this policy.
Board Minutes Page 17
March 28,2000
• Any project that is not included in the capital budget, is justified for
other reasons, but does not meet the standard economic justification
criteria.
• Any project that is not included in the capital budget, and the total
project cost is expected to exceed$1,000,000. And, the capital budget
in total will not be exceeded.
• Any project included in the capital budget, but expected to exceed the
budgeted amount by the greater of 15% of the budgeted amount or
$200,000. This applies to the aggregate for electric,water and steam
expenditure forecasts in the Amlual Capital Budget and to individual
projects in the Plain-led Capital Budget.
• Any project the law requires be approved by the Commissioners.
ECONOMIC DEVELOPMENT
Purposes of this Policy:
• Define the responsibility of the Commissioners with respect to
Economic Development.
• Define BWL support for economic development within its service area
after the adoption of this policy.
RESOLVED, That the Board of Commissioners adopt the BWL's "Economic
Development Policy."
#2000-3-3
Economic Development Policy
Board of Commissioners'Responsibility
Approval of the Board of Commissioners shall be required for BWL participation
in any economic development project that does not fit the requirements for the
Electric Economic Development Rider Rate.
Guidelines include the following:
• The project contributes to the economic vitality of the BWL service
area.
• The project retains, grows, or diversifies the BWL customer base.
• The project is done pursuant to a contract and the length of the contract
permits BWL to recover its investment.
Page 18 Board Minutes
March 28, 2000
There appears to be a long-tern benefit to BWL and its customers. A long-tern benefit
is defined as a benefit that is realized over a period of more than the ten years typically
used for evaluation of projects.
NEW VENTURES
#2000-3-4
Resolution Adopting the New Venture Policy
The number of Board of Water and Light (BWL) competitors has increased with the
advent of deregulation in the electric utility industry, as a result of mergers, acquisitions,
and the development of new energy entities. These competitors are offering increased
and varied utility and ancillary services to their customers. It is the business judgment of
BWL staff that the inability to offer ancillary services may erode the BWL's customer
base, which may result in future rate increases to compensate for the loss.
BWL staff has concluded that it has both the personnel and the resources to offer
competitive ancillary services and, by meeting certain criteria as set out below in the
"New Venture Policy,"may offer such services without adversely impacting its current
customers.
The Board of Commissioners has determined that the offering of ancillary services is
within the BWL's lawful authority, since, under Michigan law, the BWL may undertake
those business activities naturally connected with and belonging to the running of a utility
business which a private competitor would be able to undertake. In addition, such
ancillary services will benefit BWL customers as a whole and constitute a proper public
purpose.
RESOLVED, That the Board of Commissioners adopt the BWL's "New Venture Policy."
New Venture Policy
New ventures are those ancillary services, which flow from utility services expressly
authorized by Council resolution or City Charter, and which are naturally connected to
services expressly authorized by Council resolution or the City Charter. The
Commissioners must approve all new ventures that involve the net expenditure of
$50,000 or more. Staff will evaluate each new venture separately to avoid creating unfair
competition.
The BWL may undertake new ventures when the following criteria are met:
1. The BWL customer base will benefit as a whole.
2. The new venture will meet or exceed the measures of the BWL's
corporate financial policy.
Board Minutes Page 19
March 28,2000
3. The customers benefiting from the new venture will pay the frill
cost of the new venture.
4. The new venture complies with all laws and regulations applicable
to such new venture.
5. The new venture is for the purpose of optimally utilizing persomiel
and resources, or when credible market research indicates that a
significant portion of the BWL's customer base desires the new
venture, or when a significant competitive advantage will accnie to
the BWL.
Project Evaluation Guidelines. Project evaluation guidelines have been developed to:
(1) standardize economic evaluation approach; (2) supplement the analysis with non-
financial factors; and (3) review the major projects to improve future project evaluations.
OTHER MATTERS
Steam and Chilled Water Services. General Manager Pandy reported that the State of
Michigan continues to express interest in utilizing the Board of Water and Light's (BWL)
chilled water loop in downtown Lansing. However, there are still some issues that need
to be resolved before entering into a contract. The conceptual design for installing the
chilled water system at the Ottawa Power Station is progressing on schedule. Detailed
project estimates are due from Stanley Consultants by March 17. Initially 10,000 tons of
capacity is planned, with space remaining for future chillers for a total of up to 20,000
tons of capacity. Construction could start as early as this June if signed agreements are
secured within the next month from the State of Michigan and Ingham County for their
consolidated courts.
City of DeWitt and DeWitt Township Retail Water Service. Marketing Manager Sue
McCormick presented an executive summary of the analysis completed for the proposed
City of DeWitt and DeWitt Township retail water service project, using the new
evaluation guidelines described above (see Policies on Growth and Development). A
spreadsheet was handed out consisting of analyses prepared for three cases (Basecase,
Lowcase and Highcase) for review and discussion.
Ms. McCormick gave an overview of the strategic direction that spearheaded the water
extension system to the DeWitt area. She briefed on water interconnect activities, which
included: (1) the extension on Airport Road to Watertown Township; (2) the extension
on State Road in DeWitt Township to serve Bath Township; and (3) the design decision
of the reinforcement project (30" vs. 24") built from the Dye Water Conditioning Plant's
high pressure pumping station up to State Road along the Wood Road corridor. Also,
Bath Township and Watertown Township have been secured as future water service
areas. The BWL currently operates the existing Bath Township water system, which is
detached from the BWL system; however, a connection to the BWL system is planned in
the near future. In 1994, the BWL entered into a retail water service agreement for a
portion of DeWitt Township, south of I-69. The intercomzect under consideration would
Page 20 Board Minutes
March 28, 2000
expand BWL's service area to include all of the City of DeWitt's corporate limits,
including the remainder of DeWitt Township,north of I-69. Extension of retail service to
these communities is a good fit and completes the three townships north of Lansing as all
new water service areas.
A question and answer period followed relative to the projections used for the analyses.
After lengthy discussion, the Commissioners indicated their support for staff to finalize
negotiations. The City of DeWitt and DeWitt Township plan to sign the retail water
service agreements in April. Upon receiving signed agreements, staff will then bring
forward a recommendation in April for approval to enter into retail water service
agreements with the City of DeWitt and DeWitt Township.
UPDATE ISSUES
General Manager Pandy briefed the Board on the status of the following issues:
• Electric deregulation is picking up momentum in the Legislature.
• General Motors' discussions with the City of Lansing and Delta Township relative to
a new GM assembly plant in Delta Township are underway. Infrastructure details and
BWL's involvement were highlighted.
Commissioner Callen called attention to the Persomlel Committee Report, dated February
28, 2000, regarding the employee satisfaction survey. He emphasized the importance of
the survey and requested that an advance copy of the Personnel Committee Report be
provided to all the Commissioners.
Respectfiilly submitted,
/s/ Charles M. Creamer, Chair Pro Tern
Committee of the Whole
Motion by Commissioner Christian, seconded by Commissioner O'Leary, to adopt the
Line Extensions and Service Territory Expansions Policy (#2000-3-2).
Action: Carried u nammously.
Motion by Commissioner Christian, seconded by Commissioner Callen, to adopt the
Economic Development Policy (#2000-3-3).
Action: Carried unanimously.
Motion by Commissioner Christian, seconded by Commissioner O'Leary, to adopt the
New Venture Policy (#2000-3-4).
Action: Carried unanimously.
Motion by Commissioner Callen, seconded by Commissioner Christian, to adopt the
Committee of the Whole Report, with the resolutions, as presented.
Board Minutes Page 21
March 28,2000
Action: Carried unanimously.
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-3-5
RETIREE BENEFIT PLAN AND TRUST AGREEMENT
RESOLVED, That the Lansing Board of Water and Light Retiree Benefit Plan and Trust
Agreement is hereby adopted as of the date indicated therein; and
FURTHER RESOLVED, That the Post-Retirement Benefit Plan for eligible employees
of Lansing Board of Water and Light is hereby adopted effective as indicated therein; and
FURTHER RESOLVED, That the signatures of the Chair of the Board of Commissioners
and the Corporate Secretary on each document are hereby authorized and ratified.
Motion by Conunissioner Christian, seconded by Commissioner O'Leary, to adopt the
resolution.
Action: Carried unanimously.
#2000-3-6
MOTOR CONTROL CENTERS 4, 5, 6—ECKERT STATION
RESOLVED, That the original budget of$200,000 for the Plamled Capital Project to
upgrade the Motor Control Centers 4, 5, 6 at the Eckert Station be supplemented in the
amount of$90,000.00 to cover the cost of changes in the project scope. Funding for
Coal Handling Upgrade—Eckert Station will be reduced an equivalent amount to remain
within the total Capital Budget for FY 2000.
Motion by Commissioner O'Leary, seconded by Commissioner Christian, to adopt the
resolution.
Action: Carried unanimously.
Page 22 Board Minutes
March 28, 2000
#2000-3-7
INCREASE IN CAPITAL BUDGET
RESOLVED, That the following Capital Budget projects for fiscal year 2000 be
increased to reflect unexpected expenditures.
Original
Project Project New Project
Project Number Cost Cost
Rebuild T&D System 00-004 $695,000 $1,900,000
Distribution Mains—Lansing 00-020 $36,000 $515,000
Distribution Mains—DeWitt Township 00-022 $50,000 $200,000
Distribution Mains—Bath Township 00-023 $830,000 $2,500,000
Distribution Mains—Watertown 00-024 $950,000 $1,320,000
Township
Stearn Services 00-033 $51,000 $90,000
Steam Main Replacement & 00-034 $200,00 $400,000
Reinforcement
This resolution is being submitted in conformance with Board Policy 15-02 that was
adopted January 25, 2000 for the reporting and approval of any Capital Project exceeding
15% or$200,000.
Motion by Commissioner Christian, seconded by Connnissioner O'Leary, to adopt the
resolution.
Discussion: General Manager Pandy summarized the reasons for the unexpected
expenditures. Project overruns are categorized in three areas: (1) customer driven issues
due to the strong economy and unexpected demand, (2) contractual commitments, and (3)
underestimated projects. Commissioners Callen and Murray asked for a summary
showing the portion of the $4 million overrun that represents unanticipated demand
Board Minutes Page 23
March 28,2000
versus early failure systems or underestimated costs. Staff agreed to prepare a
comparison outline and send it to the Connnissioners.
Action: Carried unanimously.
UNFINISHED BUSINESS
None.
NEW BUSINESS
None.
GENERAL MANAGER'S REMARKS
Possible General Motors Plant in Delta Township. General Manager Pandy briefed on
the most recent developments of a proposed General Motors (GM) manufacturing facility
in Delta Township. The GM project probably will include a metal stamping plant (2001)
and a possible assembly plant (2002). Mr. Pandy reported that the assembly plant would
require a larger Central Utilities Complex (CUC), than the facility the BWL will own and
jointly operate at the new Lansing Grand River Plant. The Board engaged in lengthy
discussion about financing issues, operational limits with new business partnerships, and
constriction management. The Board will be kept abreast as more details unfold on this
important new GM/CUC project.
Separate Water Meters. General Manager Pandy reported that the City Council's
Committee on Public Services is considering a resolution to allow for separate water
meters for outdoor uses such as sprinkler systems. The legality of whether the resolution
amends a 1994 City Ordinance, which disallowed the continued use of separate water
meters for outdoor use, will be discussed with the City.
Electric Deregulation. General Manager provided an overview on the status of
legislative efforts on electric deregulation, which is meeting with opposition from the
Small Business Association and the Attorney General's Office. They claim that the
transition costs that private utilities will collect will not save anybody any money.
Director of Delivery Bill Cook reported that SB 937 was originally developed by a
coalition, which the BWL was a part of. He reviewed the fundamental issues that need to
be resolved before the BWL could support the bill; those issues are the tie-bar to other
legislation dealing with territorial limits and the Board's autonomy.
Major Project Status Report. Marketing Analyst Randy Roost provided a
demonstration of a new web application to assist with Major Project status reporting. It
was developed for the Marketing Process' intranet site, designed to serve as a tool for
employees to access infonnation internally about projects the BWL is competing for and
Page 24
Board Minutes
March 28, 2000
hopes to acquire. A number of options are available to help employees keep track of
projects and their location, some of which are graphical in nature and others are in text
format. Employees also have the ability to submit information and suggestions from the
intranet site via a project data form relative to potential projects in the Greater Lansing
area.
MPPA Municipal Competitive Trust. The Michigan Public Power Agency(MPPA) is
setting tip a Municipal Competitive Trust with proceeds from the Belle River fuel dispute
over how much was paid for the coal delivered to the Belle River Project. MPPA has
realized approximately $20 million of fiends from the resolution of the dispute. The BWL
share is approximately 65 percent of that amount. The Trust will have $13,235,492 in the
BWL account to reduce future Belle River invoices. Since 1997, Belle River is
calculating the fuel rates at a more appropriate rate. The dispute is close to final
settlement.
Chilled Water Project Update. General Manager Pandy reported that bids have been
received on the chiller equipment for the Chilled Water Project. Staff is reluctant to
award the bid on March 31, 2000, until a signed contract is received from the State of
Michigan. The BWL's ability to meet the State's project completion schedule is at risk.
Mr. Pandy indicated that staff has done everything possible to move the project forward,
however, it is now up to the State to commit in writing. He noted that the State has
indicated they are still well intentioned and trying to respond.
Report to NAACP on BWL Purchasing Practices. General Manager Pandy handed
out a copy of a letter sent to the local branch of the NAACP in response to their request
for a report on the BWL's purchasing activity with minority, women, and handicapper
suppliers. Mr. Pandy summarized the high points of the report. Commissioner Christian
observed that although there is an increase in purchase order dollars, the penetration with
minority/women/handicapper-owned suppliers has remained at a two percent level. He
urged that more emphasis be given to increasing the percentage of purchase order dollars
spent with these suppliers.
BWL Suite for Lansing Lugnuts Games. General Manager Pandy reported that the
BWL co-sponsors a suite for the Lansing Lugnuts home games. The suite is shared with
Capitol Bank Corp, and used to entertain customers, employees, and occasionally donate
it to local charities. A listing of dates the suite is available for BWL-use was distributed.
Up to twenty tickets are available for each of the dates listed on the sheet.
Committee of the Whole Topics: General Manager Pandy named two tentative topics
for the next Committee of the Whole meeting to be held April 111h: (1) New
Compensation System and (2) Preliminary FY 2001 Budget. Mr. Pandy noted that there
have been some questions about the budget for advertising in the electronic and the
printed media. This item will be a subpart of the budget review.
Union Negotiations Update. General Manager Pandy reported that the management
bargaining team continues to meet with the IBEW Local 352 team. More negotiations
are scheduled this week. Both sides hope to reach a mutual agreement on a contract.
Page 25
Board Minutes
March 28,2000
REMARKS BY COMMISSIONERS
Commissioners Werbelow and O'Leary raised concerns about plans for a Board retreat
and Commissioner Royal responded to the issues raised. Regarding topics for the retreat,
the agenda will be developed with the consensus of the Commissioners.
Cominissioner Royal asked if the report from Steiner &Associates on the redevelopment
of the Ottawa Power Plant would be available by the next Committee of the Whole
meeting. Mr. Pandy indicated that he is hopeful the report will be received by then;but if
he hears the report will not be available until a couple of days after April 1 lt�', he may
slide the date of the Committee of the Whole meeting.
EXCUSED ABSENCES
By Commissioner Christian, seconded by Commissioner Murray, that the absences of
Commissioners Aquilina and Creamer be excused.
Adopted unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
No persons spoke.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Callen, the meeting
adjourned at 6:58 p.m.
Is/Mary E. Sova, Secretary
Filed: March 30, 2000
Marilynn Slade, City Cleric
Page 9
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING ,;,
LANSING BOARD OF WATER AND LIGHT
Tuesday, February 22, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to
order by Chair Diane Royal.
Present: Commissioners Ronald C. Callen, Ernest J. Christian, Charles M. Creamer,
Mark A. Murray, David O'Leary, Diane R. Royal and Judson M. Werbelow
(by conference phone).
Absent: Commissioner Rosemarie E. Aquilina,
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Creamer, to
approve the minutes of regular session held January 25, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
No committee reports.
Page 10 Board Minutes
February 22,2000
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-2-1
UPGRADE STACK CAP AT ERICKSON STATION
RESOLVED, That the Planned Capital Project Estimate (Project 00-111) to Upgrade the
Stack Cap at the Erickson Station be increased from $35,000 to $210,000 to cover the
cost of more extensive repairs. These repairs are necessary to preserve the stack and its
liner, as well as to bring the stack back into compliance with various codes and standards.
Funding for Phase I of the Western Coal Conversion will be reduced an equivalent
amount to rernain within the total Capitol Budget for FY 2000.
Motion by Commissioner Creamer, seconded by Commissioner Callen, to adopt the
resolution.
Action: Carried unanimously.
UNFINISHED BUSINESS
No unfinished business.
NEW BUSINESS
Board Retreat: Chair Diane Royal briefed on plans for a Board retreat to be held
sometime in May or June. Suggested topics include: (1) the role of Commissioners and
frequency of meetings, (2) deregulation, (3) long-term capital expenditures, and (4)
investment policies. The agenda and date of the retreat will be firmed up with input from
all Commissioners.
GENERAL MANAGER'S REMARKS
Financial Statements for January Reviewed. General Manager Pandy reported that
strong cost control measures are paying off as indicated by the positive financial picture
for the month of January. The January financial statements show that revenue went up
while expenses went down as compared to the same period last year. Mr. Pandy stated
that staff is analyzing revenue requirements for discussion with the Board in April with
alternative recommendations on rate adjustments for each of the utilities.
General Motors Utility Sales and Revenue. General Manager Pandy presented a
comparative summary of sales and revenue from General Motors (GM) for electric, steam
and water utilities for FY1999 versus FY1998. Mr. Pandy reviewed the forecast for
Board Minutes Page 11
February 22,2000
GM's Lansing Grand River Plant relative to sales, loads, purchases, and capacity factors
for electric, water, and steam for FY 2001- 2004. The impact for the loss in revenue fiom
GM Plants#1 and 6 in years 2004-2005 was discussed. Mr. Pandy also briefed the
Commissioners on competitive issues relevant to Delta Township.
Update on Natural Gas Aggregation Program. General Manager Pandy reported that
the cumulative cash flow for the BWL natural gas aggregation program is positive as of
January 31, 2000.
Maintenance and Meter Reading Services for West Side Water System. General
Manager Pandy reported that the BWL has entered into an agreement with the West Side
Water System to provide maintenance services on an as-needed or emergency basis. A
separate agreement for the BWL to provide meter-reading services has also been
negotiated with the West Side Water System.
Update on Electric Deregulation Legislation. General Manager Pandy distributed a
copy of a written testimony to be delivered by System Delivery Director Bill Cook to the
Senate Energy and Technology Committee on February 23. The testimony outlines the
BWL's position with respect to electric restructuring, and in particular Senate Bills 937,
940 and 941.
Union Contract. General Manager Pandy reported that the union voted down the latest
contract package by a 268 to 31 vote on February 3". He stated that tentative agreement
has been reached with the union on health care. Plans are in process to switch Non-
Bargaining Unit (March j) and Bargaining Unit employees (April 1) to Blue Cross-Blue
Shield PPO, the new health care provider, at less cost than what the current health care
carrier can provide. An unresolved issue with the union is the A-1 Schedule,which is a
lower pay level based on market wage rates for new employees hired after July 1, 2000.
Union employees are working on a day-to-day basis under the old contract, while
negotiations continue.
LCC Business and Technology Forum. The Commissioners were invited to the annual
Reutter Business Technical Institute luncheon to be held on Thursday, March 23, 12 noon
at the Lansing Center. Program speakers include Mayor David Hollister; Doug Rothwell,
CEO, Michigan Economic Development; Bruce McAttee, CAP Coordinator for Region
1C, UAW; Bob Anderson, Manager of the General Motors Lansing Grand River
Assembly Plant.
REMARKS BY COMMISSIONERS
Commissioner Werbelow requested an update the chilled water project.
General Manager Pandy reported that the City of Lansing has concurred that the Ottawa
Station is the best site for the chilled water project. The G-1 (general use) zoning is in
place, and no special land use permit is required. The State of Michigan is in the process
Page 12
Board Minutes
February 22,2000
of reviewing the documents on chilled water services. Once their written corrrrnitment is
received, the BWL will proceed to build the chilled water plant. Negotiation with the
county is at a stand still, as county officials evaluate the feasibility of building its own
chiller to serve the new county building.
EXCUSED ABSENCES
By Commissioner Christian, seconded by Commissioner Callen, that the absence of
Commissioner Aquilina be excused.
Adopted unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
No persons spoke.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Creamer, the meeting
adjourned at 6:12 p.m.
Is/Mary E. Sova, Secretary
Filed: February 28, 2000
Marilynn Slade, City Clerk
12:25 FEB 28, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #78649 PAGE: 2/5
Page 1
CD
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING :.
r�.
LANSING BOARD OF WATER AND LIGHT
1
Tuesday, February 22, 2000
C, r.
r- ro
rn
The Board of Commissioners met in regular session at 5:30 p.m., ui the Boardroom of the C n
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to
order by Chair Diane Royal.
Present: Commissioners Ronald C. Callen, Ernest J. Christian, Charles M. Creamer,
Mark A. Murray, David O'Leary, Diane R. Royal and Judson M. Werbelow
(b); conference phone).
Absent: Commissioner Rosemarie E. Aquilina,
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner O'Leary, seconded by Commissioner Creamer, to
approve the minutes of regular session held January 25, 2000.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
No committee reports.
12:25 FEB 28, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #78649 PAGE: 3/5
Page 2 Board Minutes
January 25,2000
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
92000-2-1
UPGRADE STACK CAP AT ERICKSON STATION
RESOLVED, That the Planned Capital Project Estimate (Project 00-111) to Upgrade the
Stack Cap at the Erickson Station be increased from $35,000 to $210,000 to cover the cost
of more extensive repairs. These repairs are necessary to preserve the stack and its liner,
as well as to bring the stack back into compliance with various codes and standards.
Funding for Phase I of the Western Coal Conversion will be reduced an equivalent amount
to remain within the total Capitol Budget for FY 2000.
Motion by Commissioner Creamer, seconded by Commissioner Callen, to adopt the
resolution.
Action: Carried unanimously.
UNFINISHED BUSINESS
No unfinished business.
NEW BUSINESS
Board Retreat: Chair Diane Royal briefed on plans for a Board retreat to be held
sometime in May or June. Suggested topics include: (1)the role of Commissioners and
frequency of meetings, (2) deregulation, (3) long-temi capital expenditures, and (4)
investment policies. The agenda and date of the retreat will be firined up with input from
all Commissioners.
GENERAL MANAGER'S REMARKS
Financial Statements for January Reviewed. General Manager Pandy reported that
strong cost control measures are paying off as indicated by the positive financial picture
for the month of January. The January financial statements show that revenue went up
while expenses went down as compared to the same period last year. Mr. Pandy stated
that staff is analyzing revenue requirements for discussion with the Board in April with
alternative recommendations on rate adjustments for each of the utilities.
General Motors Utility Sales and Revenue. General Manager Pandy presented a
comparative summary of sales and revenue from General Motors (GM) for electric, steam
and water utilities for FY 1999 versus FY 1998. Mr. Pandy reviewed the forecast for
12:26 FEB 28, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #78649 PAGE: 4/5
Board Minutes Page 3
January 25,2000
GM's Lansing Grand River Plant relative to sales, loads, purchases, and capacity factors
for electric, water, and steam for FY 2001- 2004. The impact for the loss m revenue from
GM Plants #1 and 6 in years 2004-2005 was discussed. Mr. Pandy also briefed the
Commissioners on competitive issues relevant to Delta Township.
Update on Natural Gas Aggregation Program. General Manager Pandy reported that
the cumulative cash flow for the BWL natural gas aggregation program is positive as of
January 31, 2000.
Maintenance and Meter Reading Services for West Side Water System General
Manager Pandy reported that the BWL has entered into an agreement with the West Side
Water System to provide maintenance services on an as-needed or emergency basis. A
separate agreement for the BWL to provide meter-reading services has also been
negotiated with the West Side Water System.
Update on Electric Deregulation Legislation. General Manager Pandy distributed a
copy of a written testimony to be delivered by System Delivery Director Bill Cook to the
Senate Energy and Technology Committee on February 23. The testimony outlines the
BWL's position with respect to electric restructuring, and in particular Senate Bills 937,
940 and 941.
Union Contract. General Manager Pandy reported that the union voted down the latest
contract package by a 268 to 31 vote on February 3`d. He stated that tentative agreement
has been reached with the union on health care. Plans are in process to switch Non-
Bargaining Unit(Ifarch i) and Bargaining Unit employees (April 1) to Blue Cross-Blue
Shield PPO, the new health care provider, at less cost than what the current health care
carrier can provide. An unresolved issue with the union is the A-1 Schedule, which is a
lower pay level based on market wage rates for new employees hired after July 1, 2000.
Union employees are working on a day-to-day basis under the old contract, while
negotiations continue.
LCC Business and Technology Forum. The Commissioners were invited to the annual
Reutter Business Technical Institute luncheon to be held on Thursday, March 23, 12 noon
at the Lansing Center. Program speakers include Mayor David Hollister; Doug Rothwell,
CEO, Michigan Economic Development; Bruce McAttee, CAP Coordinator for Region
1C, UAW; Bob Anderson, Manager of the General Motors Lansing Grand River
Assembly Plant.
REMARKS BY COMMISSIONERS
Commissioner Werbelow requested an update the chilled water project.
General Manager Pandy reported that the City of Lansing has concurred that the Ottawa
Station is the best site for the chilled water project. The G-1 (general use)zoning is in
place, and no special land use permit is required. The State of MicEgan is in the process
of reviewing the documents on chilled water services. Once their written commitment is
12:27 FEB 28, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #78649 PAGE: 5/5
Page 4 Board Minutes
January 25,2000
received, the BWL will proceed to build the chilled water plant. Negotiation with the
county is at a stand still, as county officials evaluate the feasibility of building its own
chiller to serve the new county building.
EXCUSED ABSENCES
By Commissioner Christian, seconded by Commissioner Callen, that the absence of
Commissioner Aquil na be excused.
Adopted unanunously.
PUBLIC COMIVIENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT
SUBJECT.
No persons spoke.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Creamer, the meeting
adjourned at 6:12 p.m.
Is/Mary E. Sova, Secretary
Filed: February 28, 2000
Marilynn Slade, City Clerk
BOARD OF WATER AND LIGHT
1232 Haco Drive-Lansing,Michigan
Agenda
January 25,2000-5:30.p:m.`
I. Roll Call(Board Commissioners Aquilina, Callen, Christian,,grTs Ay, O'Leary, Werbelow
and Chairman Royal- 8)
II. Pledge of Allegiance
III. Approval of Minutes: Regular Session of December 14, 1999
1V. Public Comments
Members of the public are welcome to speak to the Board on any agenda subject or on any other
subject now, or at the end of the meeting.
V. Communications and Petitions
VI. Reports of Committees
VII. Manager's Recommendations
A. Adopt Second Amendment to BWL Defined Benefit Plan.
B. Amend car allowance reimbursements.
C. Approve BWL policy statements and resolutions; and,replace same in Policy Manual dated July
1996.
D. Award contract to Dorey, Reagan&Associates to re-design the NBU Compensation System
VIII. Unfinished Business
IX. New Business
X. Resolutions
XI. Manager's Remarks
XH. Commissioner's Remarks
XIII. Motion of Excused Absence
XIV. Public Comments
Members of the public are welcome to speak to the Board on any Board of Water and Light subject.
XV. Adjournment
Page 1
MINUTES OF THE BOARD OF COMMISSIQNERS'.'MEETING
LANSING BOARD OF WATEWAND-LIGHT
'Jo
Tuesday, January 25, 2000 '1 1 1 GLEr 1t
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to
order by the Chair, Diane Royal.
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Ernest J. Christian,
Charles M. Creamer, Mark A. Murray, David O'Leary, Diane R. Royal and
Judson M. Werbelow (by conference phone).
Absent: None
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner Christian, seconded by Commissioner Aquilina, to
approve the minutes of regular session held December 14, 1999.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
No committee reports.
Page 2 Board Minutes
January 25,2000
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-1-1
SECOND AMENDMENT TO BWL DEFINED BENEFIT PLAN
RESOLVED, That the Second amendment to the Lansing Board of Water and Light
Defined Benefit Plan for Employees' Pensions is hereby adopted effective as of July 1,
1999; and
FURTHER RESOLVED, That the Chair of the Board of Commissioners and the
Corporate Secretary are hereby authorized to execute the Amendment and related
documents on behalf of the Corporation
Motion by Commissioner Christian, seconded by Commissioner Aquilina, to adopt the
resolution.
Discussion: General Manager Pandy noted that the amendment establishes a 401(h)
subaccount that the BWL may use in the future to help pay for retiree health care costs.
Action: Carried unanimously.
#2000-1-2
CAR ALLOWANCE REIMBURSEMENT
RESOLVED, That the present car allowance reimbursement rates effective December 1,
1992 applicable to BWL employees required to provide personal transportation in
performing their respective job assignments, be amended effective February 1, 2000, as
follows:
That the per mile reimbursement rate for Plan A(occasional drivers) be set at the
Business Standard Mileage Rate and the per mile reimbursement for Plan B (required
for job —formerly known as Plan C), be set at 75% of the Business Standard Mileage
Rate announced periodically by the IRS. In addition, a flat rate reimbursement (paid
biweekly)will be paid to Plan B employees (those employees required to have a
personal automobile available for performing their job assignments). The flat rate
(currently $25.39 per pay period) will be periodically reviewed and adjusted, if
necessary, by Human Resources.
Plan A: Business Standard Mileage Rate for all miles driven.
Plan B: 75% of the Business Standard Mileage Rate for all miles driven
PLUS a biweekly flat rate to be determined by Human Resources
(currently $25.39 per pay period).
Board Minutes Page 3
January 25,2000
Motion by Commissioner Christian, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously.
#2000-1-3
CORPORATE POLICIES AND PROCEDURES
WHEREAS, The Board appointed a special policy committee assigned to review the
current Board of Water and Light Policy Manual; and
WHEREAS, The Special Policy Review Committee met on October 25, 1999, to review a
draft of broad policy statements, as prepared by staff, for comments and input; and
WHEREAS, The Committee of the Whole thoroughly reviewed the proposed policy
statements for input and consensus on November 30, 1999.
RESOLVED, The Board of Commissioners hereby approves the Board of Water and
Light policy statements and associated resolutions (attached).
FURTHER RESOLVED, That the Board of Water and Light Policy Manual dated July
1996, be replaced with the new policies and resolutions submitted herewith.
Motion by Commissioner Aquilina, seconded by Commissioner Creamer, to adopt the
resolution.
Discussion: The Commissioners were provided with an attachment containing suggested
amendments to the proposed policies and resolutions submitted by Commissioners
Werbelow and Royal for review and input.
Commissioner Murray raised the question of the appropriate role of the Commissioners
relative to the General Manager. He stated that in his judgment the Commissioners should
focus on providing fundamental governance and direction on major policy issues and allow
the General Manager to manage the organization within the broad parameters of important
policy issues.
General Manager Pandy gave a historical perspective on the BWL's long record of having
detailed policies and resolutions. He stated that it has been the practice of the Board to
disclose decisions by setting policy and adopting resolutions to effect the policies in order
to stand the test of public scrutiny.
Commissioner Callen remarked that he would like to see more specificity in the policies.
In cases where there are requirements that are referred to in the policies, the specifications
should be spelled out in the policy statements, such as a particular City Charter
requirement.
Page 4
Board Minutes
January 25,2000
Following discussion, there was consensus that the suggested changes in the attachment
(Policies and Resolutions—comments and revisions), faxed to the Commissioners on January 25,
2000, be incorporated in the final written policies and resolutions.
Action: Carried unanimously.
#2000-1-4
REDESIGNING THE COMPENSATION SYSTEM
RESOLVED, That a contract be awarded to Dorey, Reagan & Associates in an amount
not to exceed $111,950 to recommend and implement changes in the Non-Bargaining Unit
(NBU) compensation plan. The contractor will make recommendations to align our
compensation system with a process-based organization, and to provide information
enabling the BWL to design pay strategies, which are market driven. The contractor will
also advise the BWL on implementation of a system, which incorporates a variable pay
approach.
Motion by Commissioner O'Leary, seconded by Commissioner Aquilina, to adopt the
resolution.
Discussion; In response to questions raised by the Commissioners, General Manager
Pandy reported that the scope of the contract to redesign the compensation system was
expanded from what was originally proposed in April 1998 (Res. 98-4-1). He noted that this
study is the first major review of the Non-Bargaining Unit compensation plan in over
twenty years,
Action: Carried unanimously.
UNFINISHED BUSINESS
No unfinished business.
NEW BUSINESS
No new business.
GENERAL MANAGER'S REMARKS
Series 1999A and 1999B Bond Issue Cost. General Manager Pandy reported that bond
issuance costs were below the estimated 1.5% of the face amount of the bonds. Bond
issuance costs as summarized below;
Page 5
Board Minutes
January 25,2000
Bond Issue
Tax-Exempt Series 1999A' Taxable Series 1999B a
$48,230,000.00 $78,455,000.00
Face Amount of Bonds $562,938.71 $1,125,493.78
Total Issuance Cost 1 17% 1.43%
Issue Cost as Percent of Face
Amount
Aa3 Aaa
Bond Rating—Moody's AA AAA
Bond Rating—Standard&Poor's 5 23% 7 62%
Net Interest Cost 5.14% 7.58%
Average Coupon 9.6 11.0
Average Bond: Life—Years
' To finance BWL capital improvements needs
To finance the Central Utilities Complex to serve General Motors' new Lansing Grand River Assembly
Center.
Cost Reductions. Efforts are underway in all processes to reduce BWL costs. The
Commissioners received a reported submitted by the Production Process demonstrating
reductions in overtime, while simultaneously reducing outstanding work orders and
without heavy reliance on outside contractors.t
trac ors. le t monthon reports on the other
processes will be submitted within thep
s.
General Motors' Lansing Grand River Site Dedication. The site dedication media
briefing to announce General Motors' (GM) newest U.S. facility, the Lansing Grand River
Assembly Center (LGR), is set for Monday, January 31, 2000. Speakers include GM
President Rick Wagoner, Governor John Engler, Mayor David Hollister, UAW Local 652
Chair Art Baker, and LGR Plant Manager Bob Anderson.
Chilled Water Project Update
Saga Broadcasting Corp.- Proposed Settlement Agreement. General Manager Pandy
distributed a copy of a proposed Settlement Agreement with Saga Broadcasting Corp.
(Saga) relative to siting the chilled water facility
the premises
the proposed agreement were
Walnut
Street, Lansing, owned Ingham County. Th
reviewed.
Ottawa Station as a Viable Site for the Chilled Water Facility. General Manager Pandy
reported that BWL engineering staff has evaluated the use of the Ottawa Station as a
viable site for the chilled water plant. The analysis indicates the chiller plant could be
located at the Ottawa Plant, potentially at savings over the Walnut Street site. Graphic
slides were displayed showing that the chilled water plant would take up about 22,000
square feet (using the basement and mezzanine of the turbine hall, both of which are below
the street grade) of the Ottawa Stations 190,000 square feet, and would still leave the rest
of the facility available for commercial redevelopment. The advantages and disadvantages
Page 6
Board Minutes
January 25,2000
of the Ottawa Station site versus the Walnut Street site indicates cost increases in
extending the piping of the chilled water distribution system would be more than offset by
savings in environmental, legal and land costs.
Ingham_ Cam, General Manager Pandy briefed the Board on the status of negotiations
with Ingham County on the responsibility for environmental clean-up if soil contamination
is found at the 327 W. Walnut Street property. This site is currently a parking lot, but was
formerly the location of a gasoline station.
After a question and answer period, the Commissioners gave staff the option of pursing
the Ottawa Station either as an alternate or as the preferred site for locating the chilled
water plant. The Commissioners will be kept informed on the progress as the options are
being evaluated. Mr. Pandy told the Board that he plans to discuss the Ottawa Station
option with the Mayor and city officials.
Status of the Ottawa Station Site Demolition Project. General Manager Pandy
reported on activities relevant to the demolition project at Ottawa Station. Bids are due
on January 26, 2000, for completion of the demolition work.
Dimondale Dam Property. General Manager Pandy reported that the Village of
Dimondale has expressed renewed interest in acquiring the BWL property within the
Village corporate limits for their planned Dimondale Island Park. He noted that this
matter has been pending since 1997 with the Village of Dimondale at which time
discussion took place about conveying the property to the Village for nominal
consideration for the development of a recreational facility. The Village proposes
purchasing the property and dams in their current condition for $1.00, and releasing the
BWL from any obligations to repair or maintain the dams. Mr. Pandy noted that the BWL
has owned this property for many years, but it is not suitable for hydroelectric power
generation or any other BWL use. Following discussion the Commissioners concurred
that it would be good use of the property to convey it to the Village and let them develop
it for their community.
Employee Satisfaction Survey. General Manager Pandy presented the results of the
employee satisfaction survey conducted by Market Strategies, Inc. He summarized the
scores for questions pertaining to: (1) Overall satisfaction with the BWL as a place to
work, (2) Satisfaction with your current position, (3) Overall satisfaction with BWL as a
company, and (4)How well does your job meet your expectations? This is the first time a
comprehensive survey has been conducted at the BWL to measure employee satisfaction.
The primary objectives of the survey were to explore links between employee satisfaction
and customer satisfaction and to provide basic information about employee perfo rmance,
perceptions of the work environment, employee satisfaction and retention. Perceptions of
senior management direction and senior management performance received the lowest
marks among employees. The Directors are presenting survey results to employees in
their processes throughout the BWL for feedback in seeking solutions. The survey results
Page 7
Board Minutes
January 25,2000
and subsequent actions to address them will be the subject of a future Personnel
Committee meeting.
Local
orted that
Update on Negotiations with IBEW . ee have reached Manager egreement for a four-year
management and the IBEW negotiating committ
contract. The package will be presented to the IBEW bership er Highli conside ghts of the erasion, but
without an endorsement from the IBEW s bargaining team.
agreement, economic changes and procedural issues
respond to que do reviewed.. The eadi gnof the
Director of Human Resources, was present p
contract package will take place on Friday,
January 2g`h. She told the Board that the
union leadership serving on the union negotiating d am �heirmembe ship to vote oncatd that they would read trte
proposed agreement as a management package an
however, they would not endorse it. The vote on the management proposal is set for
Thursday, February 3 .
Northwest Well Site Property. General Manager
dan easement/license that the agreement
ty of
Lansing Parks and Recreation Department isrequesting
from the BWL for a portion of the Northwest a e1 Wilhite spoke to this issue. He noted
extension of the River Tra property for the westerly
il. Staff Attorney ry
that the strip of land the City wants the B)vVL to relinquish
a great addition to the C ty In t
The Commissioners agreed that the River Trail has been
the spirit of cooperation with the City, they concurred that a recommendation to relinquish
the strip of land requested be brought forth for approval.
REMARKS BY COMMISSIONERS
Commissioner Callen conveyed a message with o respect to Y2K from Councilmember
Harold Leeman: "Thanks for keeping the lights
General Manager Pandy acknowledged the work of m Y2employees
and many of whom gaveBup
WL
who worked for over a year in preparing the BWL o
their New Years Eve to make sure the BWL was protected and prepared.
EXCUSED ABSENCES
There were no absences.
Page 8
Board Minutes
January 25,2000
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
Joseph (Joe)Davis, President of IBEW Local 352, explained why the union ne otiatin
team is not endorsing the contract package. He stated that union negotiating team g
members were close to achieving a package they could support, however the general
increase is 0.5% lower than requested, and .the prescription co-pay is $5.00 higher than
requested. For these two reasons, the union negotiating team is not endorsing the
package, but has agreed to offer the proposal to the membership for a vote on February
ADJOURNMENT
On motion by Commissioner Callen, seconded by Commissioner Creamer, the meeting
adjourned at 7:00 p.m.
Is/Mary E. Sava, Secretary
Filed: Janua7y 28, 2000
Marilynn Slade, City Clerk
13: 18 JAN 31, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #77997 PAGE: 219
Page 1
MINUTES OF THE BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, January 25, 2000
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the
Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to
order by the Chair, Diane Royal.
Present: Commissioners Rosemarie E. Aquilina, Ronald C. Callen, Ernest J. Christian,
Charles M. Creamer, Mark A. Murray, David O'Leary, Diane R. Royal and
Judson M. Werbelow(by conference phone).
Absent: None
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner Christian, seconded by Commissioner Aquilina, to
approve the minutes of regular session held December 14, 1999.
Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME
TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER
SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
No committee reports. -<
M 77,
`
z? CID
13: 19 JAN 31, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #77897 PAGE: 3/9
Page 2 Board Minutes
January 25,2000
GENERAL MANAGER'S RECOMMENDATIONS
Background materials on items presented are on file in the Office of the Corporate
Secretary.
#2000-1-1
SECOND AMENDMENT TO BWL DEFINED BENEFIT PLAN
RESOLVED, That the Second amendment to the Lansing Board of Water and Light
Defined Benefit Plan for Employees' Pensions is hereby adopted effective as of July 1,
1999; and
FURTHER RESOLVED, That the Chair of the Board of Commissioners and the
Corporate Secretary are hereby authorized to execute the Amendment and related
documents on behalf of the Corporation
Motion by Commissioner Christian, seconded by Commissioner Aquilina, to adopt the
resolution.
Discussion: General Manager Pandy noted that tic amendment establishes a 401(h)
subaccount that the BWL may use in the future to help pay for retiree health care costs.
Action: Carried unanimously.
#,2000-1-2
CAR ALLOWANCE REIMBURSEMENT
RESOLVED, That the present car allowance reimbursement rates effective December 1,
1992 applicable to BWL employees required to provide personal transportation in
performing their respective job assignments, be amended effective February 1, 2000, as
follows:
That the per mile reimbursement rate for Plan A (occasional drivers)be set at the
Business Standard Mileage Rate and the per mile reimbursement for Plan B (required
for job—formerly known as Plan C), be set at 75% of the Business Standard Mileage
Rate announced periodically by the IRS. In addition, a flat rate reimbursement(paid
biweekly) will be paid to Plan B employees (those employees required to have a
personal automobile available for performing their job assignments). The flat rate
(currently $25.39 per pay period) will be periodically reviewed and adjusted, if
necessary, by Human Resources.
Plan A: Business Standard Mileage Rate for all miles driven.
Plan B: 75% of the Business Standard Mileage Rate for all miles driven
PLUS a biweekly flat rate to be determined by Human Resources
(currently $25.39 per pay period).
13: 19 JAN 31, 2000 ID: BOARD OF 14ATER & LIG TEL NO: (517) 371-6203 #77897 PAGE: 4/9
Board Minutes Page 3
January 25,2000
Motion by Commissioner Christian, seconded by Commissioner Aquilina, to adopt the
resolution.
Action: Carried unanimously.
#2000-1-3
CORPORATE POLICIES AND PROCEDURES
WHEREAS, The Board appointed a special policy committee assigned to review the
current Board of Water and Light Policy Manual; and
WHEREAS, The Special Policy Review Committee met on October 25, 1999, to review a
draft of broad policy statements, as prepared by staff, for comments and input; and
WHEREAS, The Committee of the Whole thoroughly reviewed the proposed policy
statements for input and consensus on November 30, 1999.
RESOLVED, The Board of Commissioners hereby approves the Board of Water and
Light policy statements and associated resolutions (attached).
FURTHER RESOLVED, That the Board of Water and Light Policy Manual dated July
1996, be replaced with the new policies and resolutions submitted herewith.
Nlotion by Commissioner Aquilina, seconded by Commissioner Creamer, to adopt the
resolution.
Discussion: The Commissioners were provided with an attaclunent containing suggested
amendments to the proposed policies and resolutions submitted by Commissioners
Werbelow and Royal for review and input.
Commissioner Murray raised the question of the appropriate role of the Commissioners
relative to the General Manager. I-Ie stated that in lus judgment the Commissioners should
focus on providing fundamental governance and direction on major policy issues and
allow the General Manager to manage the organization within the broad parameters of
important policy issues.
General Manager Pandy gave a historical perspective on the BWL's long record of having
detailed policies and resolutions. He stated that it has been the practice of the Board to
disclose decisions by setting policy and adopting resolutions to effect the policies in order
to stand the test of public scrutiny.
Commissioner Callen remarked that lie would like to see more specificity in the policies.
hn cases where there are requirements that are referred to in the policies, the specifications
should be spelled out in the policy statements, such as a particular City Charter
requirement.
13:20 JAN 31, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #77897 PAGE: 5/9
Page 4 Board Minutes
January 25,2000
Following discussion, there was consensus that the suggested changes in the attaclmient
(Policies andResolu ions—comments and revisio�u), faxed to the Commissioners on January 25,
2000, be incorporated in the final written policies and resolutions.
Action: Carried unanimous]),.
92000-1-4
REDESIGNING THE COMPENSATION SYSTEM
RESOLVED, That a contract be awarded to Dorey, Reagan & Associates in an amount
not to exceed S1117950 to recommend and implement changes in the Non-Bargaining Unit
(NBU) compensation plan. The contractor will make recommendations to align our
compensation system with a process-based organization, and to provide information
enabling the BWL to design pay strategies, which are market driven. The contractor will
also advise the BWL on implementation of a system, which incorporates a variable pay
approach.
Motion by Commissioner O'Leary, seconded by Commissioner Aquilina, to adopt the
resolution.
Discussion: In response to questions raised by the Commissioners, General Manager
Pandv reported that the scope of the contract to redesign the compensation system was
expanded from what was originally proposed in April 1998 (Res. 98-4-1). He noted that this
study is the first major review of the Non-Bargaining Unit compensation plan in over
t\venty years.
Action: Carried unanimously.
UNFINISHED BUSINESS
No unfinished business.
NEW BUSINESS
No new business.
GENERAL MANAGER'S REMARKS
Series 1999A and 1999B Bond Issue Cost. General Manager Pandv reported that bond
issuance costs were below the estimated 1.5% of the face amount of the bonds. Bond
issuance costs as summarized below:
13:21 JAN 31, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #77897 PAGE: 6/9
Board Minutes Page 5
January 25,2000
Bond Issue Tax-Exempt Series 1999A 1 Taxable Series 1999B z
Face Amount of Bonds $48,230,000.00 $78,455,000.00
Total Issuance Cost $562,938.71 $1,125,493.78
Issue Cost as Percent of Face 1.17% 1.43%
Amount
Bond Rating—Moody's Aa3 Aaa
Bond Rating—Standard&Poor's AA AAA
Net Interest Cost 5.23%a 7.62%
Average Coupon 5.14% 7.58%
Average Bond: Life—Years 9.6 11.0
I To finance BWL capital improvements needs
Z To finance the Central Utilities Complex to serve General Motors'new Lansing Grand River Assembly
Center.
Cost Reductions. Efforts are underway in all processes to reduce BWL costs. The
Commissioners received a reported submitted by the Production Process demonstrating
reductions in overtime, while simultaneously reducing outstanding work orders and
without heavy reliance on outside contractors. Cost reduction reports on the other
processes will be submitted within the next couple of months.
General Motors' Lansing Grand River Site Dedication. The site dedication media
briefing to announce General Motors' (GM)newest U.S. facility, the Lansing Grand River
Assembly Center(LGR), is set for Monday, January 31, 2000. Speakers include GM
President Rick Wagoner, Governor John Engler, Mayor David Hollister, UAII' Local 652
Chair Art Baker, and LGR Plant Manager Bob Anderson.
Chilled IVater Project Update
Saga Broadcasting Corp.-Proposed Settlement Agreement. General Manager Pandy
distributed a copy of a proposed Settlement Agreement with Saga Broadcasting Corp.
(Saga) relative to siting the chilled water facility on the premises known as 327 W. Walnut
Street, Lansing, owned Ingham County. The terns of the proposed agreement were
reviewed.
Ottawa Station as a Viable Site for the Chilled Water Facility. General Manager Pandy
reported that BWL engineering staff has evaluated the use of the Ottawa Station as a
viable site for the chilled water plant. The analysis indicates the chiller plant could be
located at the Ottawa Plant, potentially at savings over the Walnut Street site. Graphic
slides were displayed showing that the chilled water plant would take up about 22,000
square feet(using the basement and mezzanine of the turbine hall, both of which are below
the street grade) of the Ottawa Station's 180,000 square feet, and would still leave the rest
of the facility available for commercial redevelopment. The advantages and disadvantages
of the Ottawa Station site versus the Walnut Street site indicates cost increases in
13:21 JAN 31, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 *77897 PAGE: 7/9
Page 6 Board Minutes
January 25,2000
extending the piping of the chilled water distribution system would be more than offset by
savings in environmental, legal and land costs.
13:18 JAN 31, 2000 ID: BOARD OF WATER & LIG TEL NO: (517) 371-6203 #77897 PAGE: 1/9
BOARD OF WATER AND LIGHT PO Box 13007, Lansing,MI 48901
�WATER&LIGHT F Date: Monday,Jan 31, 2000 1:
o
il
Number of pages including 9 cm er sheet:
To: City Clerk's Office From: Mary Sova
Phone: Phone:
Fax: 377-0068 Fax phone: (517)371-4203
CC:
REMARKS: ❑ Urgent ❑ For your review ❑ Reply ASAP ❑ Please comment
Attached is a set of the regular Board of Water and Light
Commissioners'meeting minutes of January 25,2000, for
filing with your office.
An original copy is being mailed to your office today.