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Home My WebLink About2021 Minutes BWL Approved by the Board of Commissioners January 25,2022 Hometown People,Hometown Pwv LANSING BOARD OF WATER AND LIGHT BOARD OF COMMISSIONERS SPECIAL MEETING MINUTES December 21, 2021 The Board of Commissioners met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:30 p.m. on Tuesday, December 21, 2021. Chairperson David Price called the meeting to order at 5:30 p.m. The Acting Corporate Secretary called the roll. Present: Commissioners David Price, Dusty Horwitt, Semone James, DeShon Leek, Tracy Thomas, and Sandra Zerkle. Non-Voting Commissioners present: Larry Merrill (Delta Township), and Brian Ross (DeWitt Township). Absent: Commissioners Beth Graham and Tony Mullen and Non-Voting Commissioner Douglas Jester (East Lansing) The Acting Corporate Secretary declared a quorum. Chair Price led the Pledge of Allegiance. PUBLIC COMMENT None. MEETING PURPOSE: Approval of RFP Selected HR Hiring Consultant Chair Price stated that he called for this Special meeting to consider the approval of RFP Selected HR Hiring Consultant and would like to put forward a Resolution. Chair Price turned the floor over to Michael Flowers, Interim Executive Director of Human Resources. Mr. Flowers requested Board approval of the resolution for the Approval of RFP Selected HR Hiring Consultant and opened the floor for discussion. A discussion followed in which the Commissioners asked for clarification of the pricing systems for the three companies and whether the hiring fees were for each employee position. Mr. Flowers provided the hiring fees, approval cost and additional expenses that each company proposed and a comparison of the value of each proposal. Special Board Mtg, December 21,2021 Page 2 of 5 Commissioner Zerkle asked for clarification of the pricing system for the three companies that are being considered as the HR Hiring Consultant. Mr. Flowersproud a comparison of the the hiring fees, approval cost and additional expenses that each company proposed value of each proposal. Commissioner James asked if the hiring fees proposed were for each employee position and Mr. Flowers affirmed. Commissioner Thomas asked for further clarification on the pricing of the three companies that submitted RFP's and Mr. Flowers responded. Commissioner Leek asked, as a piggy-back to Commissioner Thomas' request, as the new Commissioners don't have the information from previous services provided, if the reason that the proposal from Pinnacle Professional Services was so thin compared to the other two proposals was because Pinnacle was already retained with the BWL, and the other proposals go into depth, and they get nothing from Pinnacle. Mr. Flowers responded that Pinnacle provided one page of bulleted items and didn't expand upon anything like the other proposals did. Commissioner Thomas stated that based on Commissioner Leek's question and Mr. Flower's response quote, "that was the only information that Pinnacle provided", he would be voting no to Pinnacle. Commissioner Horwitt asked for a ball-park amount of any additional costs that were ng a mentioned in one of the proposals and the comfort range from evel for$500 to $1,6001 and he hasdpreviously Flowers responded that the costs would g negotiated fees. Commissioner Horwitt also aainnacle.any Mr Flowers respo ded working with any of the companies as Mr. Flowers hd recommended P that he has worked briefly with Pinnacle and extensively with Global and both have worked very well, but he has not worked with Blue Chip previously. Chair Price asked how many applicants there were for the Corporate Secretary position currently and Mr. Flowers said that there were at least 25. Motion by Commissioner Zerkle, Seconded by Commissioner James, to eliminate Pinnacle Professional Services from the selection process for the HR Hiring Consultant. Discussion: Commissioner Zerkle stated that due to the limited information provided by Pinnacle Professional Services that they be not considered and be removed from the hiring consultant selection process. Commissioner James commented that Pinnacle Professional Services was not independent of the Board of Water and Light and should not be considered. Action: Carried Unanimously. Commissioner Thomas requested further discussion on the two remaining companies as Pinnacle Professional Services was the one that was recommended and was talked about because the information provided was limited. He appreciated Blue Chip sharing what they Special Board Mtg. December 21,2021 Page 3 of 5 shared, that they were diverse, had a female in charge, and hired 425 people in one year. He added that he was equally impressed with Global Business Resources Group, with their independence and hitting and reaching out to different and diverse sites. Global provided extensive information on their qualifications, references and how they would conduct an applicant search. He added that Global was local. Commissioner Horwitt added that he was also impressed with Global Business Resources Group for the same reasons. RESOLUTION #2021-12-02 Approval of RFP Selected HR Hiring Consultant WHEREAS, Chapter 2, Section 5-202 of the Lansing City Charter requires the Board of Commissioners to appoint a Director, Internal Auditor and Corporate Secretary. WHEREAS, Section 19.6 of the Board of Water & Light's ("BWL") Administrative Rules of Procedure states: The Board of Commissioners may hire external consultants, such as accountants, but not outside legal counsel. The full Board will meet before a consultant is hired to determine the scope of the issues to be addressed by the consultant, the consultant's budget, and the scope of contact with the Board. One Board member may be authorized as the primary contact with the consultant. WHEREAS, at the regular Board meeting on November 16, 2021, the Board of Commissioners approved a Resolution 2021-11-03 to retain a hiring consultant to assist with filling vacancies in the positions of Internal Auditor and Corporate Secretary. WHEREAS, Resolution 2021-11-03 directed the Executive Director of Human Resources to issue a Request for Proposal for the sole purpose of obtaining proposals for recruiting hiring consultants and for the Board of Commissioners to then choose and retain the consultant. WHEREAS, BWL staff engaged in its normal public procurement process for the purpose of soliciting and evaluating proposals from a variety of independent recruiting firms and received three qualifying proposals. RESOLVED, having reviewed the proposals received and considered the recommendations of the Chair, the Vice Chair and the Executive Director of Human Resources, the Board of Commissioners hereby selects Global Business Resource Group as the hiring consultant to assist the Board with the recruitment and hiring of a new Internal Auditor and Corporate Secretary; and FURTHER RESOLVED, the Chair of the Board of Commissioners shall execute any agreements necessary to effectuate the selection of said hiring consultant. Motion by Commissioner Price, Seconded by Commissioner Zerkle to approve the Resolution for the RFP Selected HR Hiring Consultant. Special Board Mtg. December 21,2021 Page 4 of 5 Action: Carried Unanimously. Further discussion followed on the hiring process and the three qualified candidates previously interviewed the Internal Auditor position. Commissioner Zerkle requested a discussion on how the hiring process would proceed with the hiring consultant and the time frame for the search. Mr. Flowers responded that Global Business Resources Group would be retained, and a plan of action would be made with the HR Committee. Mr. Flowers stated that with the pool of candidates already received interviews could begin within six to eight weeks. Commissioner Thomas asked if the three candidates for the Internal Auditor position that have already been interviewed that were provided by Pinnacle Professional Services would be included in the Global Business Resources Group Process. Commissioner Thomas said that Global Business Resources Group would probably nhave Commdifferent issioner, commissioner questions Ho witt their applicants, in addition the HR committee has aew Mr. Flowers responded that the three candidates would still be considered for the position if they were still available. Commissioner Zerkle asked if the three candidates would be re-interviewed. Mr. Flowers responded that the three candidates may need to be re-interviewed for a fresh comparison for the best qualified candidate and it would be the choice of the Commission to reinterview. Commissioner James asked to whom the hiring consultant would report. Chair Price responded that he is the contact person as the Chair of the HR Committee, but the process is run by the entire HR Committee. Commissioner James requested that Resolution #2021-11-03 be amended to add a second contact in addition to the Chairperson to whom the Hiring Consultant would report. Commissioner Thomas asked Commissioner James to consider the follow o state that the friendly amendment, that Resolution 012-11-03 be amended an Resour es Commttee tThat fr e dly amendme g Consultant report directly to the entire Hum nt was accepted. Motion by Commissioner Zerkle, Seconded by Commissioner James, to amend Resolution #2021-11-03, Retain a Hiring Consultant, to strike from the resolution "with the Chairperson as the primary contact". Action: Carried Unanimously (Yeas: Commissioners David Price, Dusty Horwitt, Semone James, DeShon Leek,Tracy Thomas, and Sandra Zerkle; Nays: None) The resolution will read as follows: RESOLVED, the Board of Commissioners will require the Consultant to report directly to the Human Resources Committee. Special Board Mtg. December 21,2021 Page 5 of 5 Commissioner Thomas requested verification from Mr. Flowers, that information from the Hiring Consultant would be sent to all four of the HR Committee members, at the same time. Mr. Flowers affirmed. Commissioner Horwitt requested that whether the candidate has exercised independence previously on the job be included as an interview question. Chair Price responded that discussion is held with the hiring consultant on the direction Commissioners would like to go and to set timelines for interviewing. Commissioner Ross asked that since another search firm was hired for the three previous Internal Auditor candidates, if a candidate was selected from the first search firm would two fees need to be paid. Mr. Flowers responded that the recruiter from which a candidate has been selected is entitled to a fee and the consultant that was hired by resolution would be entitled to a fee for services provided if the candidate was not selected through them. Commissioner James asked about the contractual relations with Pinnacle Professional Services. Mr. Flowers responded that the contract was with the Board of Water and Light and not with the Board of Commissioners. MANAGER'S REMARKS/COMMENTS There were no Manager's remarks. COMMISSIONERS' REMARKS/COMMENTS Commissioner Thomas thanked Mr. Flowers for all his work. PUBLIC COMMENT There were no public comments. EXCUSED ABSENCE Motion by Commissioner Zerkle, Seconded by Commissioner Leek to excuse Commissioners Beth Graham, Douglas Jester, and Tony Mullen from tonight's meeting. Action: Motion Carried. ADJOURNMENT Chair Price adjourned the meeting at 6:18 p.m. Filed with Lansing City Clerk: 01-04-22-Unofficial Minutes 01-26-22-Official Minutes Approved by the Board of commissioners January 25,2022 Vol Hometown Pcapfc.Homci r n Pan' LANSING BOARD OF WATER AND LIGHT BOARD OF COMMISSIONERS SPECIAL MEETING MINUTES December 14, 2021 The Board of Commissioners met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:30 p.m. on Tuesday, December 14, 2021. Chairperson David Price called the meeting to order at 5:30 p.m. Corporate Secretary Griffin called the roll. Present: Commissioners David Price, Beth Graham, Dusty Horwitt, Semone James, DeShon Leek, Anthony Mullen, Tracy Thomas, and Sandra Zerkle. Non-Voting Commissioners present: Douglas Jester (East Lansing), Larry Merrill (Delta Township), and Brian Ross (DeWitt Township). Absent: None The Corporate Secretary declared a quorum. Commissioner Graham led the Pledge of Allegiance. PUBLIC COMMENT None. MEETING PURPOSE: Consider a Resolution for a Special Electric Service Contract for Large Manufacturing Customer electric Chair Price stated that he called for this ial meeting to and would like to puder a t forward al Resolutionrvice contract for a large manufacturing customer Chair Price turned the floor over to General Manager (GM) Dick Peffley who introduced the president and CEO of Lansing Economic Area Partnership (LEAP), Bob Tresize. Mr. Tresize commended the leadership of the BWL, as it is the reason the project is being considered by General Motors. General Motors will be constructing a $2.5 billion, 2,500,000 million square feet, electric vehicle (EV) battery plant that will create 1,700 jobs by 2028-2029 and about 1,000 jobs in 2025 when it goes into production. Construction can start as soon as the first quarter of 2022 and there will be at least several thousand construction workers putting the plant together over three years. Mr. Tresize added that this type of project could propel economic development in the Lansing area--the EV battery plant will sustain vehicle production plants Special Board Mtg. December 14,2021 Page 2 of 5 and suppliers in the area, and the new technology platform will attract related businesses to the region. The City of Lansing and Delta Township Board of Trustees unanimously approved a renewed 425 revenue sharing agreement that was required for the construction site. Then the Lansing City Council approved an 18-year renaissance zone adjacent to the GM plant for future plants. The City of Lansing also scheduled a public hearing to be held on December 20, 2021 at 4:30 p.m. to consider the passage of a public act for a millage for those that are not covered by the renaissance zone. The electric rate that is being considered for approval will be sent in a package to GM for further negotiations. GM Peffley requested Board approval of a resolution to finalize a special contract with a major manufacturing company. GM Peffley reported that BWL was approached by a customer considering building within BWL's service territory. Their requirements are nationally competitive electric rates for 100 megawatts of energy with an 80% load factor and a 20-year contract. BWL was approached by a similar customer a year ago but the customer selected a different state with lower rates. A proposal was submitted to the current prospective customer that included a very competitive rate and a 20-year term as requested.The customer found the proposal very attractive and requested a draft contract, which was provided. From previous experience this request is usually a very good sign. This rate can be offered without negatively affecting BWL's other customers and will not trigger a rate increase. The contract will allow BWL to pass fuel cost adjustment through the PSAR (a cost indicator tool) during the term of the contract and the BWL gross revenue over the life of the contract is $868M. The addition of 100 megawatts of load represents a 33% increase in BWL's overall generation portfolio and BWL has sufficient energy to supply the customer until 2027. Different scenarios on how to supply the energy after 2027, such as purchase power agreements, increasing BWL's renewable portfolio, and adding base load generation have been looked into. At this time,the best option to ensure that BWL can deliver the energy at the guaranteed rate over a 20-year co tract, will be to increase the generating portfolio at the Delta Energy Plant site. By approving his resolution, a line item is expected to be seen in next years' capital budget to evaluate the installation of additional generating capacity at BWUs Delta Energy Park site. To provide the magnitude of a 100MW project, BWL currently has over 50,000 residential customers and this project will require 25% more energy than all of these customers combined. Another comparison is that adding the total load of BWL's top 10 customers would not equal the energy requirements of this project. RESOLUTION #2021-12-01 Special Electric Service Contract for Large Manufacturing Customer WHEREAS, The Lansing Board of Water & Light ("BWL") is committed to being the "Utility of the Future" while supporting community growth. The BWL will provide carbon neutral utility products, services and programs that are financially accessible to all customers with exceptional customer service. This will be accomplished by utilizing evolving, cutting-edge technology, as well as partnering with the Greater Lansing region and a highly skilled, diverse workforce ("Vision"). Special Board Mtg. December 14,2021 Page 3 of 5 WHEREAS, two of the BWL's 2021-202S Strategic Plan Priorities are focused on Customer & Community and Climate & Environment ("Strategic Priorities"). Key strategies that support these priorities include: ➢ Supporting, encouraging, and enabling emerging beneficial electrification. ➢ Promoting economic development and regional partnership that create growth and synergy. WHEREAS, one of the BWL's largest electric commercial/industrial customers has entered a joint venture with another manufacturing company ("prospective customer") that directly supports beneficial electrification. WHEREAS, the project is expected to result in a significant increase in both electric load and revenue. WHEREAS, the facility operational and electric load characteristics are unlike the BWL's typical commercial/industrial customer base, represents a "one of kind" customer profile and is not suited for the BWL's existing rate structure. WHEREAS, the BWL has designed an incremental cost rate to serve the prospective customer that is expected to hold other customers harmless and not burden the entire BWL commercial/industrial rate base. WHEREAS, the BWL is unaware of a similarly situated commercial/industrial customer to warrant change in its rate design and tariff structure at this time. WHEREAS, the additional economic development benefits warrants a Special Electric Service Contract for the above-mentioned investment, which is expected to include special electric service rates and additional provisions that mitigate BWL risks. WHEREAS, a Special Electric Service Contract for the above-mentioned investment is in alignment with the BWL's Vision and Strategic Priorities. WHEREAS, because the provisions of Special Electric Service Contract for the above-mentioned investment are unique to the BWL's standard rate tariff, approval by the Board of Commissioners is appropriate. WHEREAS, staff has been actively engaged in discussions with the prospective Customer and may be selected as the utility provided to support the above-mentioned investment. WHEREAS, staff respectfully request the Board of Commissioners to authorize the General Manager to finalize and execute on behalf of the BWL a Special Contract with the prospective customer in the event the BWL is selected as the utility provider to support the above- mentioned investment. Special Board Mtg. December 14,2021 Page 4 of 5 RESOLVED, the General Manager is authorized to finalize and execute on behalf of the BWL a Special Electric Service Contract for the above-mentioned investment with the prospective customer. Motion by Commissioner Zerkle, Seconded by Commissioner Mullen to approve the Resolution for the Special Electric Service Contract for Large Manufacturing Customer. Chair Price inquired what the 20-year contract would mean as a cost savings to the customer. GM Peffley responded that over the term of the contract, it is a $936 million incentive for the customer. Commissioner Merrill asked what would occur if another large customer requested the same service and conditions. GM Peffley responded that the customer would be offered a similar contract with an incentive based on the amount of service requested. Action: Motion Carried Unanimously. GM Peffley gave a brief update on the four 55-foot utility poles that were snapped 15 feet above ground by strong winds on Saturday morning, December 11, 2021, and involved a train dragging the lines 1,000 feet down the track, the breaking of 24 additional poles and destroying more than 6 miles of electric cable. No one was injured, service was restored to all except 62 of the 4,200 customers within 12 hours, and service to 60 of the remaining customers was restored within 30 hours. A highly skilled workforce was credited for the quick service restoration along with updated procedures, training, appropriate inventory, and help by mutual aid crews. The poles had been completely replaced less than four years ago as one of the newest upgrades in the system. The repairs made to the poles are temporary but safe and will be rebuilt in the summer of 2022 after engineers complete the design. A video taken by drone cameras was presented. The damage cost has not yet been fully determined but is estimated to be around $1 million. Commissioner Price commended the onsite workforce, media relations and the GM for quickly addressing the incident and updating the public. GM Peffley responded that he had met with emergency responders who were expecting it to take a week to restore power and told them power would be restored within hours. MANAGER'S REMARKS/COMMENTS There were no Manager's remarks. COMMISSIONERS' REMARKS/COMMENTS Commissioner Zerkle thanked the 70 employees that were involved in restoring service on Saturday afternoon. Special Board Mtg. December 14,2021 Page 5 of 5 Commissioner Ross wished everyone Happy Holidays. PUBLIC COMMENT Michael Faraone, Lansing, MI spoke about tree cutting on his property. Even though he has his trees cut himself, trees have been marked on his property by Wright Tree Service and he would like a resolution of the issue. ADJOURNMENT Chair Price adjourned the meeting at 6:03 p.m. Filed with Lansing City Clerk: 12-16-21-Unofficial Minutes 01-26-22-Official Minutes Approved by the Board of Commissioners 01-25-22 Hometown People.Hometown Power: MINUTES OF THE BOARD OF COMMISSIONERS MEETING LANSING BOARD OF WATER AND LIGHT November 16, 2021 The Board of Commissioners met at the Lansing Board of Water n Tuesday, ot (BWQ bead 6, rter REO This Town Depot located at 1201 S. Washington Ave., Lansing, M meeting was publicly noticed for 5:30 P.M. Chairperson David Price called the meeting to order at 5:53 p.m. The Corporate Secretary, M. Denise Griffin, called the roll. The following Commissioners were present: Chairperson David rarice, Bet Graham, Prese Dusty Hor Non-Voting Semone James, Deshon Leek, Tony Mullen,Tracy Thomas, Commissioners Douglas Jester (East Lansing), Larry Merrill (Delta Township), and Brian Ross (DeWitt Township) Absent: None The Corporate Secretary declared a quorum. Commissioner Ross led the Pledge of Allegiance. Chair After consultation with General Counsel Mark Matus and Finance iAudit r Appoinitmentair Price removed from the Agenda, item 10.d., Resolution for Interim Internal APPROVAL OF MINUTES rove the Regular Board Motion by Commissioner Mullen,Seconded by Commissioner Graham,to approve Meeting minutes of September 28, 2021. Action: Motion Carried. PUBLIC COMMENTS There were no public comments. COMMUNICATIONS Letter of Resignation from BWL Corporate Secretary Griffin. Received and Placed on File. Absent: None The Corporate Secretary declared a quorum. Public Comments There were no public comments. Approval of Minutes Motion by Commissioner Leek,Seconded by Commissioner Mullen,to approve the Human Resources Committee meeting minutes of July 13, 2021. Action: Motion Carried Job Description Review Charter Appointed Position of Corporate Secretary An edited draft of the job description for the Charter Appointed Position of Corporate Secretary was provided to the Human Resources Committee for review and discussion. Motion by Commissioner Mullen,Seconded by Commissioner Leek,to approve the "DRAFT" October 2021 version of the Charter Appointed Corporate d to the Board he of Commissioner's (Board Chairperson) signature line at the end of the documen recruitment process for the position of Corporate Secretary. Action: Motion Carried. Commissioner Mullen asked if the search for the replacement for the Corporate Secretary position would be conducted in the same manner as the search for the Internal Auditor position. Chair Price responded that when the job description for the Internal Auditor was approved, it was given to the HR Department to recruit for the position. The HR Department has internal and external tools to recruit for the position and the review of the applicants is part of the process, followed by the interview of the selected candidates by the Board. Chair Price would like to present the selected candidate to the Board for approval at the November Regular Board Meeting. Commissioner James asked if there is an independent research human resources firm that is used for the recruiting. Human Resources Director, Lynnette Keller, responded u ers twoand dates ereecruit d through the at two of the were es for the recruitedBItor WL position were recruited through external website and two candidates are internal. Hiring Process Update—Charter Appointed Position of Internal Auditor Human Resources Director, Lynnette Keller, presented the requirements needed for qualification for the Internal Auditor position and stated that six applications were received. A discussion followed on the qualifications of the applications received. Commissioner Zerkle asked for the salary range and e Internal before en Auditor re the position ffley responded that the information would be acquirednd provided was sent o the ring ters. Ms. Commissioner Thomas asked if the job description h through thetBWL welbsite to folllow compl anlcer affirmed and added that all applicants are loggedg GM Peffley added that all of the applicants have been presented at this meeting. Electronic Mail received From Michelle Chambers regarding Moores Park Neighborhood Trees. Referred to Management. Received and Placed on File. Electronic Mail received From the Crane Family regarding Moores Park Neighborhood tree trimming. Referred to Management. Received and Placed on File. Electronic Mail received From Mary Pollack regarding Streetlight outage on Saginaw Harrison. Referred to Management. Received and Placed on File. Electronic Mail received From Ellen Todd regarding BWL investment performance. Referred to Management. Received and Placed on File. Electronic Mail received From Jonathan Korpi regarding BWL customer service. Referred to Management. Received and Placed on File. Electronic Mail received From a BWL Employee regarding a complaint against an Executive Staff Member. Referred to Management. Received and Placed on File. Commissioner Horwitt commented on the BWL employee complaint against an Executive Staff member. Commissioner Horwitt stated that he has become more aware of issues of racial injustice and would like the complaint to be taken seriously. He added that people make mistakes and the mistakes can be addressed. GM Peffley responded that all complaints are taken seriously and are referred to the HR Department and General Counsel, or outside counsel if needed. GM Peffley added that outside counsel will provide a recommendation and he will bring it to the board. Chair Price asked for a brief statement as he didn't consider it a board matter. Commissioner Leek requested that the recommendation be provided to the board. Commissioner James commented that she had received several calls in addition to an anonymous letter and would like the issue assessed and addressed. Commissioner James asked GM Peffley to report back to the Commissioners and GM Peffley responded that he would report back to the Commissioners in two weeks. Commissioner James also asked for a survey to be conducted and GM Peffley responded that he would look into a survey being conducted. Commissioner Mullen commented that employees with departments are given authority to run their departments but if an issue arises it is to be addressed. COMMITTEE REPORTS Chair David Price presented the Human Resources Committee Meeting Reports: HUMAN RESOURCES COMMITTEE Meeting Minutes October 12, 2021 The Human Resources Committee of the Lansing Board of Water and Light (BWL) met at BWL Headquarters REO Town Depot located at 1201 S. Washington Ave., Lansing, MI on Tuesday, October 12, 2021. Human Resources (HR) Committee Chairperson David Price called the meeting to order at 4:58 p.m. and asked the Corporate Secretary to call the roll. Present: Commissioners Chair David Price, DeShon Leek, Tony Mullen and Tracy Thomas. Also present: Commissioners Semone James (arrived @ 5:00 p.m.) and Sandra Zerkle; and Non-Voting Commissioner Brian Ross (DeWitt Township) referred was L website or if here Commissioner Leek asked if the third party to Ms which Keller sresponded thathPi B Pinnacle Staffing wastused was a company used as an external recruiter for this recruiting process. Commissioner Mullen asked what the various acronyms for the requirements represented. Ms. Keller responded that CPA stands for Certified Public Accountant, CIA stands for Certified Internal Auditor, CFE stands for Certified Fraud Examiner, and CISA stands for Certified Information System Auditor. GM Peffley reported the salary ranges for the Internal Auditor salar position of $113,000 to $169,000. The previous Internal Auditor was at Director Level 4 with a prior Internal Auditor was at Director Level 6 with a salary range of$139,700 to $209,000. GM Peffley commented that if an internal candidate is being considered that may not have the minimum requirements yet, if the internal candidate has 60% of the qualifications, prior practice has been that an internal candidate would be a good selection. Commissioner Thomas commented that the CISA exam is difficult and asked whether the CISA requirement could be extended from six months to one year. GM Peffley responded that certification requirements have been extended for employees in the past based on the circumstances. Commissioner Zerkle asked whether or not the CISA requirement is the most crucial because it affects the IT department system and audits. GM Peffley responded that the guidelines elcdent cybera tack,fn prey io d a third party can be consulted. Chair Price commented that duet the discussions the Board decided that the CISA certification in cybersecurity was important. Commissioner Zerkle asked whether any applications that were received weren't accepted. Ms. Keller responded that all the applicants were brought forward in the meeting. Ms. Keller recommended that five of the applicants be interviewed and that she will follow up with the sixth applicant. Chair Price recommended that the recruitment process for the position of Internal Auditor be closed with the option to reopen if needed. Motion by Commissioner Thomas, Seconded by Commissioner Mullen to interview the applicants already received and close the recruitment process for the position of Internal Auditor. Action: Motion Carried. Ms. Keller reported that the current approved salary range for a fully qualified candidate for the described Internal Auditor position is $129,800 to $197,200 with a midpoint of$163,500. Commissioner James questioned if the Commissioners that were not on the HR Committee had input in the selection of the Internal Audit candidates that would be interviewed. There was a discussion in response to Commissioner James' question and inquiry about this matter being dealt with in the Committee of the Whole, and it was stated that the HR Committee is the designated committee responsible for the hiring process. During the discussion it was stated that all commissioners could provide their input during the interview meetings, however the HR Committee will vote to make a Retirement Plan Committee (RPC) Update Chair Mullen commented that authority had been delegated to the Retirement Plan Committee to make any needed changes to administrative items and compliance actions in the retirement plans. CFO Shawa provided the Retirement Plan committee tothgi Trustee meets gh Thete afunod ve nrview g st us the Pension program would be sent to the full Board prior of the VEBA plan has doubled over the last 10 years and the VEBA plan administrative services agreement has now been drafted and includes a change in strategy from a building up funding strategy to a maintaining funding strategy. The agreement includes formally establishing the BWL's administrative role with respect to processing fees and expenses, and the placing of parameters to review and calculate quarterly funding of the of pan benefits from the trusCommissioner Zerkle asked whether the Board needed to approve any of the actions taken and what was the amount of money spent on employee CFO d th t$15 to $16 mill on is quarterly report will be provided going forward that shows claims paid an spent each year for current employees as CFO Shawa responded that dretirees. Commissioner re?mbursemen erkle t s would about reimbursements that would be given to retiree only be made to the BWL operating account for the eligible expenses being paid out. Commissioner Mullen commented that the amount in the retirement fund can only be used for retirees' benefits but extra money to be given to the retirees can beauthorized A d c scion wasy the rrdegruested to betheld in e fund other than the Pension fund, such as the operating fund the January Finance Committee meeting regarding retiree benefits. Internal Auditor Status Report Principal Auditor Brian Schimke presented the Internal Auditor Status Report. Tentative FY 2022 Audit Plan FY 2021 Audit Plan Recently Closed ipe„•,,,,, ,.�:,, •F:ea:e.' n.Fnx a.aa Pan has err a«. FY 2021 Audit Progress Report Audit_ Summary wr7ra c>'A d^^a,6 a"" e.r�-2P,,0A—e" par'assxn Uenpa)e N n r ro+le FY, ?anca A It m i Au I PI n lead Fy11.OS Cybersecurily,IT Vulnar,bllllias8 penetration Teatlnq a tot OvenLmS 11 U e y S ed1 to Slnrt or conned Audlt I.TI R dl P II P � d P SDO woe Iha vendor hired to conduct the audit,perform the _Payroll(Fir"r+o Audd) 1.J 1'll dAccounls Racelvobla-Ard'ISlalus:Complatad, panenetlon lee��ng,end kicked olf the Audit In April 2021. 2 n Au F T R I I d 11 al Abovel-Rumen Audis Report laeuad 3/1712021 -SDO perlormad a Cyber Maturity A,a -rr ant and Resources,Las'Audll:October 2017 2,p h C dU+ape end Control-Ardis Status:Completed. pmraVellon Tealof our Networke. yM a Mobile Devices-Inlormetion7e<hnology.Legit Audit Audit Report Issued]l3012021 -The BWL ranked ahavo average In both facets of the audll DCtaW!2017 end bolter Then our industry peers In almost ail cataDoriea. a .,IC 1 Proceesl-Opsrelione 3 f,{ppp ;MI50 S"II'nna-Audit Sralus:Complsled,Audit _Flnsl Report was laeued to the Comndseonere beck on (Fi,,st rune Auddl Roped Is gad N1012021 l IR de 0.alantlon d.C b II ITV I bll,11 96p nelmlloi Te 1;_Inn-ALL41 seplernher l0^,2021. 3.E Inr I f II M $Iglus:Compl.md,Audd Report Issued 09110R021 _SDO was very compllmenlery of the SWL'e parlonnence- M enll-LayellMeneyemenVSwN Proceasea,Leat -I W011l(I ublicly thank eve rya"'who Participnlad A like to P pudll:Me+eh 2016 First r, a Audll) and conhihutad le the succaae or the audit. S.0 'tlp I 1 Menoaomen{-BWL OIhsr( _ ._ Other Items Internal Audit's Addressing FY 2022 Audit Progress Report FY22 nA R,oun,d Pear Revlaw III A d1 PI �e e -Raqulrad to ha completed every five yens to maintain A III E t d A I t d omplin nca with IIA standards.The sal Paer Review wag Cunantly U ndvwovschedula,_�lo smn.or o,nplet ed In FY2017. F I IA' R I t' 'th M n emanl 1.Pewoll Audit-Aud'I status'.Nea Not 011icielly Commenced. gigs prove effic Engaged In Prellnilnery Work Which Sagan on 0812312021 -IcnolTlemenling shale to im Y•enlinnca unlcelian.nlina angegament,and taster synarglea with Management. Enaurin Smooth Trennillon to New Direcloi of lnlernel Audit -Verilying all workpapers were nved accordingly In our dotnhoeie dallo Is for new Olrec or,and anauring the day.Ioalaynoperotlons or IA are being pe formed. and Commissioner Zerkle commented that she didn't receive the report from September lothosed publicly. only received an email stating the information in the cybersecurity audit wouldn't Mr. Schimke stated that the information in the audit report si nor James asked wh discussed final repot session due to the sensitivity of the information. Cocorr was sent to the Commissioners. Commissioner Mullen and Mr. Schimke responded that an executive summary of the audit report was provided which provided BDO's findings from the two phases of the Respectfully submitted Tony Mullen, Chair Finance Committee Chair David Price presented the Pension Fund Trustee Meeting Report: PENSION FUND TRUSTEES COMMITTEE Meeting Minutes November 16, 2021 The Pension Fund Trustees of the Lansing Board of Water&Light(BWL) met at the BWL Headquarters in the REO Town Depot located at 1201 S. Washington Ave., Lansing, MI) at 5:00 P.M. on Tuesday, November 16, 2021. Trustee and Board Chairperson David Price called the meeting to order at 5:00 p.m. Corporate Secretary Griffin called the Roll: The following Trustees were present: Beth Graham (arrived @5:26 p.m.), Dusty Horwitt (arrived at 5:22 p.m.), Semone James (arrived @5:22 p.m.), DeShon Leek, Tony Mullen, David Price,Tracy Thomas, and Sandra Zerkle. Also Present: Douglas Jester (East Lansing), Larry Merrill (Delta Township), and Brian Ross (DeWitt Township) Absent: None The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Trustee Zerkle and Seconded by Trustee Mullen to approve the minutes from the November 17, 2020; March 16, 2021; and May 25, 2021 Pension Fund Trustees Meetings. Action: Motion Carried. Pension Fund Chief Financial Officer (CFO) Heather Shawa provided an overview of the information from the Pension Memo and Pension Dashboard. VEBA plan updates include Atlanta Capital being appointed to replace Aristotle as a VEBA small/mid cap investment manager, amending the plan for non- bargaining employee premium sharing, and executing three rebalancing transactions as needed for the VEBA Trust to maintain required asset allocations. DC plan updates include the transition to Nationwide, application to an IRS Voluntary Correction Program for DC Plans 1 & 2, and extending the Captrust contract for investment advisory services through 5/31/2023. The DB Plan has approximately $62 million in funded assets and 127% funding status; the VEBA Plan has approximately $248 million in funded assets and 168% funding status. This is an increase of 39% which is largely due to market performance of 25% returns. These results were achieved while maintaining very low fees of 0.65% and 0.63%. The 401(a) and 457(b) plans have 1,081 and 966 participants respectively and there are 261 active loans. Commissioner Zerkle asked how the loans were repaid and what percentage was lost by taking out a loan on the 401. CFO Shawa responded that the participants repay their loans and can have up to two loans outstanding. CFO Shawa responded that it depended on their asset allocation. Mr. Taylor responded that the money borrowed wouldn't be part of market returns on what is invested. Mr. Scott Taylor, BWL Finance Manager, introduced the financial advisory panel. The Panel provided financial plan information and followed by a question and answer session. 1) Nathan Burk, Vice President and Senior Consultant with Asset Consulting Group (ACG); ACG assists in investment allocation, evaluation of investment managers, reporting of investment performance and investment policy statements. 2) Mark Miller, Founder and Principal Consultant with Benassist Retirement Consulting, LLC; Mr. Miller provides actuarial evaluation reports, assists with required annual state filing requirements, and performs calculations for DB employee benefits at retirement. 3) Anthony Bergstrom, Financial Advisor and Relationship Manager with Captrust; Captrust assists with fund line up selection and monitoring, investment performance reporting, fee benchmarking and fiduciary compliance for the DC plans. 4) Michael Burkhart, Executive Relationship Manager with Nationwide; Nationwide is the DC Plan administrator and provides personalized resources to help employees and retirees reach their financial goals. Mr. Nathan Burk gave a capital market update for 2021. Mr. Burke stated that as the market came from the bottom due to the pandemic, due to the cutting of Federal Reserve interest rates to zero and pumping liquidity into the system, there were strong equities in the fiscal year period—up on average of about 40% to 60%. Fixed income rates were a little higher and private real estate was higher due to the industrial sector. Mr. Burke noted that the VEBA plan had a 25.2% return on assets for FY 2021 and the DB plan had a return of 22.13%. Commissioner Mullen asked if anything special is done with real estate investments, relating to the real estate situation in 2008. Mr. Burk responded that there are two primary real estate managers in the VEBA and DB plans who invest in high quality properties without taking a lot of risk. Commissioner Mullen also asked if the real estate situation with China has any effect on decisions made. Mr. Burke responded that all of the real estate investments are domestic. Chair Price asked how unusual it was for retirement funds to have a 25% return in one year. Mr. Burke responded that it is not common, not to be expected and it was a very good year. Mr. Mark Miller spoke about the actuary of the DB and VEBA plans funding. He noted that the funded status for the DB plan is 127.3% while the average for funded plans in Michigan is 75%. The funded status for the VEBA plan is 167.8% while the average for funded plans in Michigan is 50.9%. BWL is in the top 3% out of 862 Michigan plans. Mr. Anthony Bergstrom with Captrust spoke about the investment management, fiduciary lansprocess and the plan design,vendor monitoring, and participant engagement for the 401(a) and 457(b) p conversion from ICMA to Nationwide. Mr. Michael Burkhart with Nationwide provided information about the retirement services that Nationwide furnishes. RESOLUTION #2021-11-01 ACCEPTANCE OF 2021 AUDITED FINANCIAL STATEMENTS FOR DEFINED BENEFIT PENSION PLAN DEFINED CONTRIBUTION PENSION PLAN AND RETIREE BENEFIT PLAN Resolved,that the Corporate Secretary receive and place on file the Defined Benefit, Defined Contribution, and Retiree Benefit Plan reports presented during the Pension Trustee Meeting. -------------------------- Staff comments: All three Plans received clean audit reports. Motion by Trustee Mullen, Seconded by Trustee Zerkle, to accept the 2021 Audited Financial Statements for Defined Benefit Pension Plan, Defined Contribution Pension Plan, and Retiree Benefit Plan. Action: Motion Carried. Other None. Adiourn There being no further business,the Pension Fund Trustees meeting adjourned at 5:47 p.m. MANAGER'S RECOMMENDATIONS There were no General Manager recommendations. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. RESOLUTIONS RESOLUTION 2021-11-02 Longevity Adjustment Charter Position of Corporate Secretary Whereas, In recognition of the Corporate Secretary's many years of dedicated and exemplary service to the Board of Water & Light and its Commissioners. RESOLVED, On October 12, 2021 The Human Resources Committee by motion authorized the Chairperson and the Vice Chairperson to finalize the exiting employment arrangements between Ms. Griffin and the BWL. FURTHER RESOLVED, all accumulated and unused paid time off(as of December 31, 2021 and January 7, 2022), which includes Vacation and Free-Choice' and a final longevity adjustment to the Corporate Secretary's compensation is appropriate given of her many years of dedicated and exemplary service is hereby approved. FINALLY RESOLVED That the Chairperson and the Vice Chairperson of the Board of Commissioners are authorized to execute all contractual amendments or agreements on behalf of the Board of Commissioners to effectuate the final longevity adjustment. Motion by Commissioner Mullen, Seconded by Commissioner Zerkle, to approve the Resolution for the Corporate Secretary's longevity adjustment. Action: Motion Carried. RESOLUTION 2021-11-03 Retain a Hiring Consultant WHEREAS,the Board of Water & Light has an immediate need to fill the Charter appointed positions of Internal Auditor and Corporate Secretary; WHEREAS, Chapter 2, Section 5-202 of the Lansing City Charter states it is the responsibility of the Board of Commissioners to appoint an Internal Auditor and Corporate Secretary: "(2) The Board shall appoint an Internal Auditor... (3) The Board shall appoint its own Secretary..." WHEREAS, the Board of Commissioners requires professional assistance ("Consultant") in filling its appointment responsibility; WHEREAS, Section 19.6 of the Board of Water & Light's ("BWL") Administrative Rules of Procedure states: "The Board of Commissioners may hire external consultants, such as accountants, but not outside legal counsel. The full Board will meet before a consultant is hired to determine the scope of the issues to be addressed by the consultant, the consultant's budget, and the scope of contact with the Board. One Board member may be authorized as the primary contact with the consultant...". WHEREAS, the Human Resources Committee recommended by motion to retain a Consultant to assist with filling the positions of the Internal Auditor and the Corporate Secretary; CFO Heather Shawa and Finance Manager, Scott Taylor gave a review of the September 2021 Year- to-date Financial Summary. Mr. Taylor reported the e°most critical metrics and following: Cash both are i million. a strong Days Cash on Hand and Debt Service Coverage are th position. After the completion of bringing Delta Energy Park on line and working through the COVID- 19 environment, a portion of our current cash balances budgeted eted partly due to COVID and partly due to infrastructure. Operating Expenses are lower thang it being the first quarter when we have just closed out prior year initiatives and are just in the beginning phases of the new year's initiatives. Commissioner Mullen asked if there was a separation of fuel recovery mthe O&M Budget t for these it was volatile. Mr.Taylor responded that there wasa separate variances in fuel. Mr.Taylor also reported on the Ratios and noted that the Debt to Total Assets is in the red but it is typical for utilities who generate their own power like the BWL to have a higher ratio because of the additional cost of constructing their own generation facilities rather than buying their power from the market. Days Sales Outstanding is in the red but BWL is working with the customers. Commissioner Jester asked how close the mix of electricity sales by class were to being back to normal. Mr.Taylor responded that industrial sales underperformed primarily due to General Motors not operating at full capacity while residential tthe status commerclal sales was for outperformed and offset the shortfall. Commissioner Jester also asked wha disconnections. CFO Shawa responded that past due customer he shut off pool Were reduced by about$3 million and 16,000 customer accounts were included September Capital Report CFO Heather Shawa gave the September Capital Report. The report contains the top ten projects, roject is part of the BSmart program excluding the Delta Energy Project. The ESRI Implementation p and is on the watchlist as it is approaching exceedance. Commissioner Mullen asked for clarification regarding the phases with regard to planned costs and exceedances. CFO Shawa responded that the budget for the project is not considered firm until after the project is scoped and designed. If and expected total project cost increase exceeds the reporting threshold after that point, the project is brought to the Board for exceedance acceptance. GM Peffley added that an accurate cost is achieved withthe scope ost and Commdesign and one management is held responsible to be within 1S% or $200,000 ofdesigned Mullen commented that authorization was given for this process. Commissioner Zerkle asked whether approval had been given for this project exceedance process. CFO Shawa responded that there is an updated resolution that supports this process. CFO Shawa added that when the capital budget is presented,the phases of the projects are provided. GM Peffley commented that graphs indicating in which phase or gate the projects are in is provided for the Commissioner prior to presenting for acceptance. ded Commissioner James asked whether a report of the capital budget°andlons could be any exceedanpesvf GM which states any vendor costs, the proximity to the projected Peffley and CFO Shawa responded that they could provide Commissioner James a report. audit and which was intended to serve as the final report for this audit. Mr. Schimke responded that Internal Audit and BDO reviewed the FY21-05 cybersecurity audit with CFO Heather Shawa, CIO Rod Davenport and Internal Controls, and Finance Manager, Scott Taylor. IT agreed to remediations proposed by management. Commissioner Zerkle asked if there were a couple of the audits that Mr. Schimke could start or complete before the Internal Auditor position was filled. Mr. Schimke responded that the audit plan had not been approved yet but three or four possible could be completed. Mr. Schimke stated that he was given approval for preliminary work on the Payroll audit. He added that the new Internal Auditor may create a different audit plan. Commissioner Zerkle asked if further authority should be given to Mr. Schimke. Commissioner James commented that it would be up to the Board to determine what would be in the audit plan. A discussion followed on giving Mr. Schimke further authority to work on additional proposed audit plans. Motion by Commissioner Mullen, Seconded by Commissioner Zerkle, to appoint Principal Auditor Brian Schimke as Interim Internal Auditor and give him authority to work on the internal audit plan as Interim Internal Auditor until a Director of Internal Audit is appointed. (Resolution to be presented the full Board for consideration) Action: Motion Carried t and come up th Commissioner Mullen requested that Mr• Schimke coreslnue with the themat the JanluarylFinance committee three more audits that need to be completed and present meeting if he is appointed as the Interim Internal Auditor at the Board meeting. Commissioner Zerkle asked if the risk assessment could be presented at the January Finance Committee meeting. Mr.Schimke responded that he would bring suggestions but would like to speak with management regarding resources required to commit to the audits. Commissioner James asked about the five-year peer review that needs to be completed.by the end of the fiscal year. Mr. Schimke responded that it did need to be completed by June 30, 2022 as the last one was done in 2017 and he has received instructions from previous Internal Auditor Phil Perkins. y have he urces Mr. Schimke stated that he woul dlnke to Mr�Schimkeiscuss lth management whether added that he would like to includettwo or three to commit to the audits in the p alternate audits along with the six or seven audits determined from the risk assessment. Commissioner James asked if Mr. Schimke would only be working on the payroll audit and the peer review. Mr. Schimke responded he would be working on those two items and additional items. Other There was no other business. Adiourn Chair Tony Mullen adjourned the meeting at 8:01 p.m. Absent: Commissioner Beth Graham The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes the Committee of Motion by Commissioner Mullen, Seconded by Commissioner Thomas,to approve the Whole meeting minutes of September 14, 2021. Action: Motion Carried. Regular Board Meeting Schedule 2022 Resolution missioner Mullen, to approve the Regular Board Motion by Commissioner Price, Seconded by Com Meeting Schedule 2022. Action: Motion Carried. Renewable Energy Update General Manager Peffley gave the renewable energy update. GM Peffley reported that BWL met the es requirements for the agreement with the Sierra Club for S clean end of Ju ne 2021ef ve°/months of lahelad that is required by the State of Michigan for renewables, at the of schedule. BWL is on track to meet the 50% goal by 2030. G 8°/ s from Peffley frl o reported that 15% of gas. GM Peffley BWL's renewable energy is from solar, 67/° is from wind, and added that the percentage of renewable energy from solar would increase as the Ranger Power solar of the project, of which BWL is the largest owner for purchase \renewable portfolio ier, would be online s generatiat the end ng more year. BWL is also exploring battery technology for when the energy than the domestic load. Commissioner Jester asked about the wind energy project in Tuscola County, Michigan. GM Peffley responded that BWL negotiated and lowered the cost by 25%for the 68 MW wind field. Commissioner James requested a written summary of the renewable energy update and GM Peffley responded that he would provide it to her. cates a breakdown Commissioner Horwitt asked if there was a pie chart on the Pe fle vressponded thatsite that he would send the of all the places from where electricity is generated. GM Y information to the Commissioners and also check on the website. Tree Trimming Update to General Manager gave the tree trimming update. Trees remain The in thel current quarter sections of the service territory and 685 have been completed section will be trimmed by the end of January 2022. The second round of trimming trees according to the new standard has also begun. Commissioner Mullen withdrew his previous motion and another motion was made. Motion by Commissioner Mullen, Second by Commissioner Leek to start the process to hire an independent search firm for both the Corporate Secretary and Internal Auditor positions. Action: Motion Failed (Yeas 2: Commissioner Leek, Commissioner Mullen; Nays 2: Chair Price, Commissioner Thomas Another motion was made. Motion by Commissioner Mullen, Second by Commissioner Thomas to start the process to hire an independent search firm to produce candidates for the positions of Corporate Secretary and Internal Auditor, which will be thoroughly vetted by the HR Committee Action: Motion Carries (Yeas 3: Commissioner Leek, Commissioner Mullen, Commissioner Thomas; Nays 1: Commissioner Price) Other None Adiourn Chair Price adjourned the meeting at 7:20 p.m. Respectfully Submitted, David Price, Chair Human Resources Committee Commissioner Sandra Zerkle presented the Committee of the Whole Report: COMMITTEE OF THE WHOLE Meeting Minutes November 9, 2021 The Committee of the Whole of the Lansing Board of Water and Light (BWL) met at the BWL Head quarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, on Tuesday, November 9, 2021. Committee of the Whole Chair Sandra Zerkle called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. Present: Commissioners Sandra Zerkle, Dusty Horwitt, Semone James, DeShon Leek, Tony Mullen, David Price, and Tracy Thomas, and Non-Voting Members: Douglas Jester(East Lansing), Larry Merrill (Delta Township) and Brian Ross (DeWitt Township) Respectfully Submitted Sandra Zerkle, Chair Committee of the Whole Commissioner Tony Mullen presented the Finance Committee Report: FINANCE COMMITTEE Meeting Minutes November 9, 2021 The Finance Committee of the Board of Water and Light (BWL) met at the BWL Headquarters — REO Town Depot, located at 1201 S. Washington Ave., Lansing, MI on Tuesday, November 9, 2021. Finance Committee Chair Tony Mullen called the meeting to order at 6:29 p.m. and asked the Corporate Secretary to call the roll. Present: Commissioners Tony Mullen, Semone James, David Price and Sandra Zerkle. Also, present: Commissioners Dusty Horwitt, DeShon Leek, and Non-Voting Commissioners Douglas Jester (East Lansing), Larry Merrill (Delta Township) and Brian Ross (DeWitt Township). Absent: Commissioner Beth Graham The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Zerkle, Seconded by Commissioner James, to approve the Finance Committee meeting minutes of September 14, 2021. Action: Motion Carried. September YTD Financial Summary F�wndit.Swmnary- September2021 ...;,» '_ FLuncial5ummuq,%September21121 •., ;Y— - C.I.h Im c Sl.u•mrnl NTD I:alirn F.m plucrc Daly 7 wires even Commissioner Horwitt asked if the BWL has considered pand is being offered to customers, who ho pay is expensive. GM Peffley responded that it is expensiugh that vebe the extra cost. GM Peffley added that if the wires are burg in back e righthe of way, damage c has to obe is on re the root transformers also sit in the yardture of trees and if the erather than on poles. relocated. Thehe Personnel Issue Committee of the Whole Chairperson Sandra Zerkle Client Privilege memorastated that General ndum la da s present provided the Committee of the Whole with an Attorn y and available to discuss the contents of that memorandum with us. Motion by Commissioner Price, Seconded by Commissioner es to go into closed session for memorandum as permitted by purpose of reviewing the contents of the attorney-client the Open Meetings Act, specifically MCL 15.268(e). Action: Motion Carried. Roll Call Vote: Yeas: Commissioners Sandra Zerkle, Dusty Horwitt, Semone James, Deer Larron y Merrill, and Mullen, David Price, and Tracy Thomas; and Non-Voting Commissioners Douglas Jester, y Nays: None. Action: Motion Carried. The Committee of the Whole Meeting went into closed session at 6:45 p.m. Motion by Commissioner Price, Seconded by Commissioner Thomas to return to open session. Action: Motion Carried. The Committee of the Whole Meeting reconvened to open session at 7:15 p.m. Motion by Commissioner Price, Seconded by Commissioner s�°han the parameters presented authorize General Counsel Mark Matus to negotiate a settlement with Mr. Wesley Le Action: Motion Carried. (Yeas 6: Commissioners Zerkle, Horwitt, Leek, Mullen, Price,Thomas; Nays 1: Commissioner James) Other questions about a story about PFAS (polyfluoroalkyl GM Peffley reported on a late item regarding 0 feet eep substances) detected in the airport area, noting that BWL�15 and haas 125 lls that ve been tested are ueveoy year s nce in the Saginaw aquifer. The wells started being tested in 2018. GM Peffley stated that any questions can be referred to BWL Environmental Compliance Specialist, Angie Goodman. Adjourn Chair Zerkle adjourned the meeting at 6:23 p.m. recommendation to the full Board, and all Commissioners will be able to vote whether to accept the candidate that the Committee brings forward at the Board meeting. Chair Price stated that the interviews would be conducted at a Human Resources Committee meeting that will be scheduled for October 261h and 271h at 4:30 p.m. Chair Price added that if the Commissioners' selection results in a tie between two candidates, another HR Committee Meeting will be scheduled, and additional interviews will be conducted with the candidates. Commissioner Thomas requested that a 30/60/90-day plan be provided by each of the Internal Auditor applicants prior to their interviews. The Commissioners agreed that the HR Department request a 30/60/90-day plan from each of the applicants for the Commissioners to review. The 30/60/90-day plans will be provided with the HR packet and in paper copy for the HR Committee meetings. Other Commissioner Leek commented about the email that all Commissioner's received regarding Corporate Secretary's Griffin's unused paid time off and offered the follow motion: Motion by Commissioner Leek, Seconded by Commissioner Mullen to authorize the Chairperson and the Vice Chairperson to finalize Corporate Secretary Griffin's exit arrangements between her and the BWL, with details to be completed and agreed upon by November 9, 2021. Action: Motion Carried Adjourn Chair Price adjourned the meeting at 6:37 p.m. Respectfully Submitted, David Price, Chair Human Resources Committee HUMAN RESOURCES COMMITTEE Meeting Minutes October 26, 2021 The Human Resources Committee of the Lansing Board of Water and Light (BWL) met at the BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 4:30 p.m. on Tuesday, October 26, 2021. Human Resources (HR) Committee Chairperson David Price called the meeting to order at 4:30 p.m. and asked the Corporate Secretary to call the roll. The following members were present: Commissioners Chair David Price, DeShon Leek, Tony Mullen and Tracy Thomas. Also present: Commissioners Dusty Horwitt and Sandra Zerkle; and Non-Voting Commissioner Brian Ross (DeWitt Township) Absent: None Public Comments None Approval of Minutes conded by Commissioner Thomas, to approve the Human Motion by Commissioner Mullen, Se Resources Committee meeting minutes and the Closed Session meeting minutes of October 12, 2021. Action: Motion Carried. Interview Candidates for the Charter Appointed Position of Internal Auditor The Human Resources (HR) Committee conducted the first set of interviews with three of the five applicants for the Charter Appointed position of Internal Auditor, in accordance with Section 5-202.2 of the Lansing City Charter, which states: "The Board shall appoint an Internal Auditor who shall report directly to the Board. The Internal Auditor shall serve at the pleasure of the Board." The HR Committee members presented the three applicants with hypothetical situation questions as well as questions about previous experiences in particular work areas. Upon conclusion of each applicant's interview, the HR Committee engaged in discussion, reviewed, and considered each applicant. Other None Adiourn Chair Price adjourned the meeting at 7:40 p.m. Respectfully Submitted, David Price, Chair Human Resources Committee HUMAN RESOURCES COMMITTEE Meeting Minutes October 27, 2021 The Human Resources Committee otedeat 120 Lansing SBoard Wash ngton Water Ave.a LansingB MI' at met 4 30 the p m. on Headquarters-REO Town Depot loca Wednesday, October 27, 2021. Human Resources (HR) Committee Chairperson David Price called the meeting to order at 4:30 pm and asked the Corporate Secretary to call the roll. The following members were present: Commissioners Chair David Price, DeShon Leek, Tony Mullen and Tracy Thomas. Also present: Commissioners Semone James (by phone), Dusty Horwitt and Sandra Zerkle; and Non-Voting Commissioner Brian Ross (DeWitt Township) Absent: None Public Comments None Interview Candidates for the Charter Appointed Position of Internal Auditor The Human Resources (HR) Committee conducted the second set of interviews with two of the five applicants for the Charter Appointed position of Internal Auditor, in accordance with Section 5-202.2 of the Lansing City Charter, which states: "The Board shall appoint an Internal Auditor who shall report directly to the Board. The Internal Auditor shall serve at the pleasure of the Board." The HR Committee members presented the two candidates with hypothetical situation questions as well as questions about previous experiences in particular work areas. Upon conclusion of each applicant's interview, the HR Committee engaged in discussion, reviewed, and considered each applicant. Commissioner Zerkle recommended that the Director of the Human Resources Department forward the information of all applicants to the Human Resources Committee with an indication of the level of qualification for the Internal Auditor position. Commissioner Thomas commented that the interviewing process should be thorough in order to obtain the right applicant who would fill the position for a lengthy amount of time. Commissioner Thomas also asked for a search firm independent of BWL Management to search for candidates for the Internal Auditor position. Chair Price reported the scoring values for each candidate and noted that Commissioner Thomas didn't vote. Commissioner Thomas commented that it is the Board of Commissioners' responsibility to appoint a qualified person for the position of the three employees. The process is to be perceived as fair and objective and the applicant should possess the qualifications to perform the job and work well with the BWL culture. Commissioner Thomas added that additional time should be taken to find the best applicant,the application should be opened to a broader pool of applicants, and a search firm should be enlisted to assist with the selection. Commissioner Thomas stated that in the previous hiring process, the Board of Commissioners interviewed the applicants, along with the search firm, and the Human Resources Department didn't. Commissioner Thomas stated that he would vote no as he didn't feel comfortable with the current process. Human Resources Executive Director, Lynnette Keller, responded that a search firm had been contracted from which the top two candidates were obtained. Ms. Keller added that the job posting was sent out through multiple mechanisms, such as the BWL website, Indeed.com, and Glassdoor.com. Commissioner Mullen commented that a search firm was hired for the last interviewing process for the position of Internal Auditor and it didn't work out. Commissioner Mullen thought BWL's internal service through the Human Resources Department would be adequate for this interview process. Commissioner Mullen added that he thought the current candidates were adequate but has no problem with the application process being reopened. Chair Price stated that the hiring process started with an approved Internal Auditor job description, then the HR Department utilize their contracted search firm and posted the job opening on several sites. When the applications were received in house, the applications were sent to all of the Commissioners to review and five candidates were selected to interview. Chair Price asked what else could be done to improve the process. Commissioner Thomas responded that the information wasn't received until right before the Committee meeting. Commissioner Leek commented that the Commissioners were provided the information from the applicants but weren't included by the HR Department in the process. Commissioner Thomas added that the Commissioners are not involved in the hiring process of the 650+ BWL employees but the three employees are their responsibility. The process should involve extensively searching for an applicant as the Internal Auditor position is a major position in the company with a large financial responsibility. Chair Price stated that the HR Department does the vetting of the qualifications of the applicants and the Commissioners conduct the interviews of the applicants just like managers of BWL departments conduct the interviews of applicants for their departments. Motion by Chair David Price, Seconded by Commissioner Tony Mullen to reopen the hiring process for additional candidates and to have the Human Resources Department hire an additional independent search firm. Action: Motion failed. (Yeas 2: Commissioners DeShon Leek and Tracy Thomas; Nays 2: Chair Price and Commissioner Tony Mullen) Commissioner Mullen commented that he didn't think the hiring process needed to be reopened or that an additional search firm was needed but was not completely opposed to it. Commissioner Mullen is willing to change his vote to obtain additional applicants from a wider net. Commissioner Thomas stated that the current applicants would still be considered. Commissioner Zerkle asked if there would be guidelines put in place for the length of time to receive additional applications. Commissioner Mullen stated that he had no problem with delegating authority to the Human Resources Department for proceeding with recruiting applications for the Internal Auditor position. Commissioner Mullen made a motion to reopen the application process for the Internal Auditor position with an independent search firm and finish the process by the end of November. Commissioner Thomas requested that the Board of Commissioners be mentioned and included in the motion to reopen the application process and search with an independent search firm and that by the end of November be removed from the motion. Commissioner Horwitt commented that it was important to have the appearance of independence in the process, the search firm should report to the Board of Commissioners and it would give added confidence to the Board that the decision was made without BWL management's influence. Commissioner Mullen asked that the hiring of a new Internal Auditor be done as expeditiously as possible. Commissioner Thomas asked for a copy of the previous hiring process to be sent to the Commissioners. Chair Price stated that the previous Internal Auditor hiring process transpired from January to May 2019 and included acquiring a search firm, searching for applicants, survey responses from Commissioners, initial screening of candidates by the HR Director, and scheduling interviews. WHEREAS,the Board of Commissioners desires to use the services of the Executive Director of Human Resources to issue a Request for Proposal ("RFP"); to obtain obn choose from multiple proposals ("Proposals") from hiring recruiters from which the Board of Commissioners and RESOLVED, the Board of Commissioners hereby directs the Executive Director of Human Resources to issue a RFP for the sole purpose of obtaining Proposals for recruiting consultants. RESOLVED, the Board of Commissioners will choose and retain the Consultant for the above-stated purposes from the Proposals provided. RESOLVED, the Board of Commissioners will require the Consultant to report directly to the Human Resources Committee,with the Chairperson as the primary contact. NOW,THEREFORE BE IT RESOLVED FURTHER, the Board of Commissioners will require the terms of Consultant engagement, specifically describing the scope, consistent with Section 19.6 of the Board of Water & Light's ("BWL") Administrative Rules of Procedure. Motion by Commissioner Zerkle, Seconded by Commissioner Graham, to approve the Resolution for the Retention of a Hiring Consultant to assist with the recruitment for the Internal Auditor and Corporate Secretary positions. Discussion: Commissioner Merrill questioned the process of hiring a consultant to select candidates since interviews had already been conducted. Chair Price stated that there were comments made about the process not being open, although emails were sent regarding the process and no responses were received. Chair Price stated that Initially he and Commissioner Mullen voted no to the motion in the HR Committee, but Commissioner Mullen changed his vote so that the motion could be forwarded to the full board for conside ration.to going g issio rer Merrill asked why the process had been considered faulty and appeared with hiring a consultant. Commissioner Thomas stated that his objection to the process was due to the late reception of the 30/60/90 day work plans tand the bra t that requested, were the no Rubric scoring system that was not implemented timely candidates outside of the State of Michigan. He also stated that he did not have the opportunity to review the only relevant document dated August 30th, due to a personal matter, death of best friend,who passed away on August 30th. Commissioner Thomas stated that these Board Appointed positions are important positions; and he added that the HR Department can process the paper work, but there needs to be a "independent" consultant hired to work with the HR Committee to lect the ndependent)candidates a m was these hired for pprev onus s. Commissioner Zerkle commented that an outside appointment selections. Chair Price called the question to stop the discussion/de Zerkle; s l: a e. Roll Call Vote 7:C mmissioner Graham, Horwitt, James, Leek, Mullen,Thomas and Motion on the Floor as follows: rove the Resolution for Motion by Commissioner Zerkle, Seconded by Commissioner Graham,to approve ruitment for the Internal Auditor and the Retention of a Hiring Consultant to assist with the rec Corporate Secretary positions. Action: Motion Carried. (Yeas 6: Commissioners Graham, Horwitt, James, Leek,Thomas, and Zerkle; Nays 2: Commissioners Mullen and Price) RESOLUTION 2021-11-04 Regular Board Meeting Schedule 2022 In accordance with the Lansing Board of Water & Light's Rules of Administrative Procedure, a schedule of dates, places, and times for each regular meeting of the Board of Commissioners for the calendar year shall be adopted in November. RESOLVED, that regular meetings of the Lansing Board of Water & Light's Board of Commissioners are hereby set for calendar year 2022 as follows, unless otherwise notified or as a result of date conflicts with rescheduled City Council meetings: 2022 Lansing Board of Water& Light Board of Commissioners Regular Board Meeting Schedule Tuesday January 25 Tuesday March 22 Tuesday May 24 Tuesday July 26 Tuesday September 27 Tuesday November 15 Meetings will be held in the Lansing Board of Water & Light REO Town Depot located at 1201 S. Washington Ave., Lansing, MI at 5:30 p.m. RESOLVED FURTHER, that a notice of the meeting schedule shall be published in a newspaper of general circulation in Ingham County the week of January 1, 2022. Motion by Commissioner Leek, Seconded by Commissioner Zerkle, to approve the 2022 Regular Board Meeting Schedule. Action: Motion Carried. Proposed Resolution Interim Internal Auditor PULLED FROM THE AGENDA WHEREAS, on November 9, 2021 the Finance Committee recommended that BWL Principal Auditor Brian Schimke be named as the Interim Internal Auditor and report directly to the Board of Commissioners until a permanent Internal Auditor has been named. WHEREAS, as the Interim Internal Auditor, Mr. Schimke is authorized to work on the Internal Audit Plan. RESOLVED, that Brian Schimke will serve as the Interim Internal Auditor until the Charter Appointed position of(Director) Internal Auditor is filled by the Board of Commissioners. RESOLUTION 2021-11-05 Grant of Settlement Authority WHEREAS, On November 9, 2021 the Committee of the Whole met in Closed Session for an Attorney Client Privilege Memorandum as permitted in Open Meetings Act, specifically MCL 15.268(e). WHEREAS, by motion the Committee of the Whole recommended authorization for the Legal Counsel to negotiate a settlement between the BWL and Mr. Wesley Lewis within the set-forth parameters. RESOLVED, that the Board of Commissioners, authorizes Legal Counsel to negotiate a settlement of claims made against the Board by Mr. Wesley Lewis within the recommended parameters. Motion by Commissioner Mullen, Seconded by Commissioner Zerkle,to approve the Resolution for Authority to Settle Action: Motion Carried. MANAGER'S REMARKS There were no manager's remarks. COMMISSIONERS' REMARKS There were Commissioner's remarks. PUBLIC COMMENTS There were no public comments. ADJOURNMENT Chair Price adjourned the meeting at 6:43 p.m. M.Denise Griffin,Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk 11-19-21 Approved by the Board of Commissioners:01-25-22 Official Minutes filed(electronically)with Lansing City Clerk:01-26-22 Approved by the Board of Commissioners 11-16-21 AMM Hometown People.Hometown Power. MINUTES OF THE BOARD OF COMMISSIONERS MEETING LANSING BOARD OF WATER AND LIGHT September 28, 2021 The Board of Commissioners met at the Lansing Board of Water and Light (BWL) Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:30 p.m. on Tuesday, September 28, 2021. Chairperson David Price called the meeting to order at 5:30 p.m. Chair Price welcomed Non-Voting Commissioner Brian Ross representing DeWitt Township. The Corporate Secretary, M. Denise Griffin, called the roll. Present: Commissioners David Price, Semone James, DeShon Leek, Tony Mullen, Tracy Thomas, and Sandra Zerkle. Non-Voting Commissioners present: Douglas Jester (East Lansing), Larry Merrill (Delta Township), and Brian Ross (DeWitt Township) Absent: Commissioner Beth Graham Corporate Secretary Griffin declared a quorum. Commissioner Leek led the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Commissioner Mullen, Seconded by Commissioner Leek, to approve the Regular Board Meeting minutes of July 27, 2021. Action: Motion Carried. PUBLIC COMMENTS ON AGENDA ITEMS There were no public comments on agenda items. COMMUNICATIONS Electronic mail received from Kyla Holmes regarding tree removal - Referred to Management. Received and Placed on File Electronic mail received from Kathi Raffone regarding an overgrown field - Referred to Management. Received and Placed on File Approval of Minutes Motion by Commissioner Thomas, Seconded by Commissioner Zerkle, to approve the Human Resources Committee meeting minutes of May 18, 2021. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. FY 2022 Board Appointee Performance Reviews HR Committee Chair Mullen opened the floor for the Board Appointee Performance Reviews. Corporate Secretary Corporate Secretary M. Denise Griffin requested a closed session for the purpose of receiving her contractual year-end performance evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). Motion by Commissioner Thomas,Seconded by Commissioner Leek,to enter into closed session to discuss the contractual year-end performance evaluation of Corporate Secretary M. Denise Griffin. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee went into closed session at 5:35 p.m. Motion by Commissioner Thomas, Seconded by Commissioner Leek, to reconvene into open session. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to open session at 5:52 p.m. Upon conclusion of the Closed Session, the following motion was offered: Motion by Commissioner Thomas, Seconded by Commissioner Leek,to forward a resolution reappointing M. Denise Griffin to the Charter position of Corporate Secretary for FY22 to the full Board for consideration. Commissioner Thomas commended Corporate Secretary Griffin on her good work and serving the eleven Commissioners. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. to Motion by Commissioner Thomas, Seconded by commissioners er le, nod swardune he Resolution the full Board for the Collective Bargaining Agreement between BWL and IBEW date g for consideration. Action: Motion Carried. Excused Absence There were no excused absences. Other There was no other business. Adjourn HR Chair Mullen adjourned the meeting at 5:25 p.m. Respectfully Submitted, Tony Mullen, Chair Human Resources Committee Chair David Price presented the Finance Committee Report: FINANCE COMMITTEE Meeting Minutes July 13, 2021 The Finance Committee of the Board of Water and Light (BWL) met at the BWL Headquarters—REO Town Depot, located at 1201 S. Washington Ave., Lansing, MI on Tuesday, July 13, 2021. Finance Committee Chair David Lenz, called the July 13, 2021, 5:30 p.m. Finance Committee meeting to order at 5:30 p.m. Corporate Secretary Griffin took the roll call to acknowledge attendance. Present: Commissioners David Lenz, Beth Graham, David Price and Tracy Douglas Jester Allso r present:ast eSaond Leek, Tony Mullen, and Sandra Zerkle; and Non-Voting Commissioners Larry Merrill (Delta Township). Absent: Commissioner Ken Ross The Corporate Secretary declared a quorum. Public Comments There were no public comments. Approval of Minutes the Finance Committee Motion by Commissioner Price, Seconded by Commissioner Graham, to approve meeting minutes of May 11, 2021. Action: Motion Carried. of which includes submittal to the Lansing City Council for approval. Commissioner Lenz asked if the Nominating Committee exists so that Commissioners who are nominated are not casting a vote for themselves. Corporate Secretary Griffin stated that the Nominating Committee usually consists of Commissioners who are not seeking the position of Chairperson or Vice Chairperson. Excused Absence None Adjourn There being no further business, the meeting adjourned at 5:01 p.m. Respectfully submitted, Tony Mullen, Chair Nominating Committee Commissioner Tony Mullen presented the Human Resources Committee Reports: HUMAN RESOURCES COMMITTEE Meeting Minutes June 15, 2021 The Human Resources Committee of the Lansing Board of Water and Light (BWL) met via WebEx (BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI) at 5:30 p.m. on Tuesday, June 15, 2021. Event Address for Attendees: https://lbwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=e31f1898a5116bb599080eb3f46b268aa Event Number for Attendees: 132 102 7716 Event Password: B7u7JdVKW9p Audio Conference: United States Toll +1-408-418-9388 Access Code: 132102 7716 Human Resources (HR) Committee Chairperson Tony Mullen called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: Tony Mullen remotely, Lansing, MI (Member) DeShon Leek remotely, Lansing, MI (Member) Tracy Thomas remotely, Lansing, MI (Member) Sandra Zerkle remotely, Lansing, MI (Member) Stuart Goodrich remotely, Delhi Township, MI Beth Graham remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI David Price remotely, Lansing, MI Ken Ross remotely, Lansing, MI Absent: None The Corporate Secretary declared a quorum. Public Comments None. May YTD Financial Summary Chief Financial Officer (CFO) Heather Shawa provided highlights from the May 2021 YTD Financial Summary and noted that the May 2021 YTD financial statement has not closed yet due to the implementation and interfacing of the new iPayables system and the Customer Information System(CIS). CFO Shawa noted that she will email the May financial statement information to the Commissioners when it is available. An update will be provided on the June year-end financial information at a future meeting. The total operating revenue for May YTD was $347 million compared to a budget YTD of$351 million and the $4.2 million variance under budget was primarily in wholesale. The total net income was $39 million compared to the budget YTD of just under $3 million. Commissioner Mullen asked whether the $36 million variance will be spent next year. CFO Shawa responded that the return on assets is expected to be exceeded again this year and will be reinvested in the infrastructure. CFO Shawa added that a high-risk area is residential uncollectibles and bad debt which is being watched closely. GM Peffley responded that the uncollectibles amount should decrease as shutoffs will start again and payments will begin to be made. Commissioner Zerkle questioned if additional financial help grants or packages will be received to take care of customers. GM Peffley responded that none are expected at this time. He added that $9 million was promised and a check for $3 million was received but had to be sent back. Commissioner Jester inquired about the net price increase in wholesale electricity and gas prices and questioned if the increases were due to polar vortex events. GM Peffley responded that gas prices increased and BWL has a lot of gas under contract and that he would provide the percentages to the commissioners. Gas prices are passed to the customers through fuel cost adjustments on monthly bills. CFO Shawa provided a report of capital projects spend excluding Delta Energy Park. The report provides a summary of what projects might require a capital project exceedance request. It was recommended that this be reported in three different Finance committee meetings and will be provided in the packet in those future meetings. The report gives what is projected for the top ten projects, remaining planned projects, and annual projects. The grand total provides the fiscal year to date budget and projected for all projects. s,n•eel><mlMlror•+JSa+M-nwlle a..•,t t,uJ Sr xS as nd•t5 n re,3oe aeunv � a A:v 3 v4s+. u 3 S S 4JMNJJ f %wi S.vu f tna V S tmPts S w30x1 ,r94+J S S :tieif Vra� i�a ,mam u.+a s on f ; tJDLt)u S n S I.tuS� v a�S,v iN✓.wi y� „ rn+w euwu aa>5,>0 f t�alfs 4 � J.1 f tu5 LW 001 y5/tia wv saw Vv.aa tuovuna+ 5 a OLO S t, i 31faLwt i u ea J 5 • ta.. t2Ja5JrJ 'I+%ti iWn'i9 'IWFIi W�Tndreamanv+uS.u.Yra.Ma.Nnavua.rran i+uva Leuuxm S :J9.a15> uJY3i > Nd..aiJ S a+ASJ•S YA5J3 41M S iYriJla SLLLti t4IDia Su9lluu wVJue.arcp 5.xw.wrx Ja.n 5+sn +w.a<mnvw+ S tilt+Y S i]:at0f f aSW.tN f IWM, .,.3..n. .tua f iaH.W 9tux NLJCIS 9r'JGiVJ Si 3 LFua.J sew. f v!�S 4Jia o,aw.w 3 vw.xo 3 trJ ru...:M•a rav,n v,xr s tay.9u> ,.twti,V 5 wa.•.. v.,an xaan 5 Lan,w 3 LtaAaiJ J IJII],ull •stun S ri 5 S v:1*•+•�MJ• nnyvwenwin p.run axhutiHt xnhsVa Len:.J.rtal.msJ to r annu^(+nrvYxevrol w:m:rha Nnwa...aa..wre V+umn'.'L''Ja1+an..a.:.wx ar•SJxa,etsxa.nw.a. oject oul commissioner Zerkle asked whether the amount over budget for the i last r Manlisted w t Sy be discussed ADM ) in a future meeting. CFO Shawa responded that the Advanced Dist t is one of the projects in the BSmart program and it was hit with a ith so with e scheduling che resolution f gdelor ays some due to quest for an COVID-19, and it will be on the September Finance agenda exceedance. Finance Chair Lenz inquired whether the ADMS project was with an outside vendor. CFO Shawa responded that it is with ACS software and it is their platform anedtheir thevendor. CFO Shawa tion which they will provide. Chair Lenz also asked if additional payment was being request y t responded not at this time however, there is a change order section in the contract and an escalation process internally for review and approval. Retirement Plan Committee (RPCI Update CFO Shawa provided the Retirement Plan Committee (RPC) update. investment reported to therHuman taken will be reported to the Finance committee and any administrative actions will be 25- Resources Committee. The VEBA large cap equity fund target asset all catson is rom BWL30%withancial rangadvorosfand 35% and it hit 35% in February 2021. Recommendations weresought the recommendation was made and approved by the RPC to transfers from the fund large will be funded equity to theJul real assets fund. The Blackstone fund was previously funded and the AEW 2021. Internal Audit Status Report Internal Auditor, Mr. Wesley Lewis, presented the Internal Auditor Status Report. FY 2021 Audit Progress Report FY 2022 Risk Usment Process Autlll E a m nt d A 11vItIe I Audit Pla C hn l t d Curr rally Underway, S h d I dt start Ch na d 1. Initial Input Was received from Management during March and April 2021. 1• U trill dA e 1 N N bl -A dll:talus:C°mplaled,Autlll Rapod llsuado.d 1031 2. Follow-Up with them has taken place. a u o e Iml-apart SUNI:e°mpnlae.AVee Ra da 112111 uaa1o11 3. IA has already started risk before id-Maybusine 2 processes that are duo for audit. 1• This process will be done before mid-May 2021. a, ..pPA tlM1506111in°s-A eA�l rlilus:L°mPl°Ud,Autlll Nap°rl lssustl 611 o11a11once COmmitt 4. C a 1Y P as and R VUlnarabilNas-A'tlit c•_900 tnmpletetl Pan 1 l0y�n^aWlily preliminary audit Assessmenli of Ne dude engagement Pad2l�nerabe�Aaset:.menl antl PeneVabGl Tesbng)anOu 4. for Initial feedback mlld-May 2021.a This dy oWill be share trevlewed and tweaked eases cunenlly In Ina place a cnmpk6ng Nr.pan o(Nc auOR. necessary. e .r e nano-atralaele plan"d ENlcal Ativ°cala Syslam(Inclutlas N°tllnei- :a1 sValeak Plans-0pe to mo M �^9" me so�mpand Nrougn wnmrnnq decusswns wnn uK Iwothe, 5. IA will share[ha audit plan with the CFO toward the end of May for their January 2U21 approval° Ne dude engagement loafuNr<rascal period_ feVl9W and feedback. owner,IA ae+ermmed tnalnlwum mare zense+o slpon< 6. IA WIII present the audit plan to Senior Management during the second week U)FN ATF t-The same slluaeon apples Io NIs aunt e�ag¢menl.me new Process went Ilve.m September 2020 and rcpattd Ne�3eneral ntanagefs H°aln<. of June 2021 for their review and feedback. 6. Omar Audit Amlvllias-Ongolrll 7. IA will present the audit plan to the Flnance Committee for Its consideration and approval during Its July 2021 meeting. rt 1 its U :Esrlmatad slap and coniplerMn dines al all eneseemanls lktedaM•r an subfnnla changx. B. Finance Committee I for Its consideration on and present ndapproval duri I during BOC ta July 2021 meeting report to the ' Finance Committee MeeW1g 4 Finance C-11hee Meelm9 3 � � 711312021 7113t2021 — Commissioner Lenz asked when the cybersecurity process report would be completed and provided. Mr. vided n and Lewis responded that he would be meeting on Thursday was the fast and tsrepodrtbin thistarea. Mr. Lewis within two weeks. Commissioner Lenz asked if this affirmed. Commissioner Zerkle responded that there was a similar audt t the oulnerabmpletedlty asse sssment previously. Commissioner Lenz suggested providing a simplereport synapsis of the results. Mr. Lewis agreed that the suggestion was a good idea. Motion by Commissioner Lenz, Seconded by Commissioner Graham to nominate Commissioner Tracy Thomas as the Vice Chairperson for the 2021-2022 fiscal year Roll Call Vote: Yeas: Commissioners David Lenz Nays: Commissioners Tony Mullen, Beth Graham, and Deshon Leek Action: Motion Failed Motion by Commissioner Leek, Seconded by Chair Mullen to nominate Commissioner Sandra Zerkle as the Vice Chairperson for the 2021-2022 fiscal year. Discussion: Commissioner Lenz questioned if Commissioner Thomas and Commissioner Zerkle had been vice chair prior to this past year. Chair Mullen affirmed Commissioner Zerkle had held the officer position of vice chair previously as well as the officer position Grahamaperson an had noted that commire extnsive ssioner one rZerkleexperience d d have a with BWL and Board related matters. commissioner great deal of institutional knowledge. Roll Call Vote: Yeas: Commissioners Tony Mullen, Beth Graham, Deshon Leek, and David Lenz. Nays: None Action: Motion Carried Motion by Commissioner Leek, Seconded by Commissioner Graham to present the slate of Officers for 2021-2022 to the full Board for consideration as follows: Chair: David Price Vice Chair: Sandra Zerkle Roll Call Vote: Yeas: Commissioners Tony Mullen, Beth Graham, Deshon Leek, and David Lenz Nays: None Action: Motion Carried Nominating Committee Chairperson Mullen stated that the recommended slate of officers will be presented to the full Board for consideration at the July 27th Board/Annual Organizational meeting; and that Nominations would also be taken from the floor for the Officer positions of Chairperson and Vice Chairperson at the said meeting. Chair Mullen commented that as the Nominating Committee is small and believes that there isn't a reason for its existence, and that Commissioners should be able to submit their names for.the Chair and Vice Chair positions to be voted on at the full Board meeting or have the Committee of the Whole as the Nominating Committee. Commissioner Lenz questioned if there is a specific reason for a Nominating Committee. Corporate Secretary Griffin responded that the BWL Board of Commissioner's Administrative Rules of Procedure designates the Nominating Committee as a Standing Committee that is specifically charged with the task of nominating and presenting a slate of officers at its Annual Organizational Meeting. Chair Mullen commented that the rules could be changed by the Board. In response, Corporate Secretary Griffin relayed that there is a process for making changes to the Administrative Rules of Procedures, one 2. BWL did not get selected for the water grant for which they applied but will work with lobbyists to find out why and report back to the Commissioners. 3,The Federal Infrastructure Plan is still in committee and when the plan is signed the Finance Department has a team ready to determine the best use for the funding. 4. Prior to the pandemic BWL averaged about $1 million per month in unpaid utility bills, and in August after the pandemic started there was $13.2 million in unpaid bills. Pandemic Relief Fairs with 12 community partners were held a month ago to assist with bill paying. About 100 people were expected and 1,000 people showed up and were assisted. Chair Price commended the BWL and stated that the relief was an outstanding thing to do. 5. The First Step Program is in its thirteenth year. Fourteen students work alongside BWL employees from January to May. The students work 15 hours a week at $12 per hour and those that complete the program receive an additional $2,0000 stipend for a participating college. The application process is currently in effect for participation for January 2022. Commissioner Mullen commented that Lansing students are to be encouraged to apply as BWL is a local entity. GM Peffley responded that there is now a better relationship with the leadership of the Lansing School District and that the applications go through Michigan Works rather than BWL. Lansing students will be encouraged to apply. 6. The Amazon Fulfillment Center is a one million square foot warehouse that is being built on the corner of Mt. Hope and Creyts Roads in the BWL service territory. It will be serviced at three or four watts of energy per square feet if a contract is signed. 7. The BWL Policy on removing trees states that trees can't be removed without the owner's approval. BWL is currently working with the Moore's Park Neighborhood and it is in the last quarter of the tree trimming sections. BWL has gone from being near the bottom in restoration time to being at the top in the state of Michigan at 50 minutes. Chair Price commented on being slammed in reports after the ice storm for not maintaining the tree trimming scheduling, that weather has become more severe and other utilities may take days for restoration. The safety of the line workers and restoration time are the most important items. GM Peffley added that he doesn't want trees to be cut down but safety and service to customers is more important. 8. In the Advanced Metering Infrastructure (AMI) program the BWL conducted a successful campaign in which there were 8,000 meters left to change in the spring and now there are 3,500 meters left to change. 9. There was a question sent through the BWL communication process from a customer about a water bill discrepancy and excess water use while the customer was on vacation. The water was running while customer was on vacation and the Smart meter was able to indicate that there was water usage. 10. After 10 years, BWL has regained a 10.8% differential between the nearest customer on residential rates. Commissioner Jester inquired about the water meter that leaked while the customer was on vacation and if there would be a leak notification created. GM Peffley responded that there is notification project in progress that will send a notification if there is not a zero-usage reading if a customer indicates they will be on vacation. Commissioner Zerkle commented that she appreciates the updates that GM Peffley provides and that BWL employees have a part in the accomplishments of the programs. Commissioner Leek inquired about the hiring process for the Internal Auditor position and the Commissioners' tasks in the process. GM Peffley responded that a job description was put together and it was sent the Human Resources (HR) Committee, which they approved. BWL marketed the position through internal resources and a head hunter that is on contract. Three applications were received for the Internal Auditor position and forwarded to the HR Committee Chair. Applications will be received through next week. GM Peffley reviewed the questions asked in the previous interviewing process and will forward them to the Commissioners for edits. The next step after that will be to set up the interview process. Chair Price stated that he polled the HR Committee earlier and a meeting is being scheduled in two weeks to review the applications received along with the HR Director. Commissioner Thomas asked for a list of the 12 community partners that participated in the Pandemic Relief Fairs. Commissioner James asked for information about the process for open enrollment and benefits. She also asked for information regarding the pros and cons for the services provided by the Pension provider for retirement and why that provider was selected. GM Peffley responded that the information would be sent to her. COMMISSIONERS' REMARKS There were no Commissioners' remarks. EXCUSED ABSENCE Motion by Commissioner Mullen, Seconded by Commissioner Zerkle, to excuse Commissioner Graham from tonight's meeting. Action: Motion Carried. PUBLIC COMMENTS Bryan Taylor, Moores Park Neighborhood, spoke against the tree trimming that is planned and the proposals that have been offered and presented. Mr. Taylor asked that the tree trimming be postponed until the BWL can meet with the Moore's Park Neighborhood and discuss what can be done to manage the power lines in the neighborhood and protect the trees. Alana Binker, Moores Park Neighborhood, spoke against the tree trimming that is planned. ADJOURNMENT Chair Price adjourned the meeting at 6:24 p.m. M.Denise Griffin,Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk 10-01-21 Approved by the Board of Commissioners:11-16-21 official Minutes filed(electronically)with Lansing City Clerk: 11-17-21 The Human Resources Committee went into closed session at 6:26 p.m. Motion by Commissioner Thomas, Seconded by Commissioner Leek, to reconvene into open session. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to open session at 7:06 p.m. Upon conclusion of the Closed Session, the following motion was offered: Motion by Commissioner Leek, Seconded by Commissioner Thomas,to forward a resolution reappointing Wesley Lewis to the Charter position of Internal Auditor for FY22 to the full Board for consideration. Roll Call Vote: Yeas: Commissioners Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: Commissioners Tony Mullen Action: Motion Carried. Subsequent Steps for Board Appointed Employees Contracts Motion by Commissioner Mullen, Seconded by Commissioner Thomas, to charge the HR Chair and the Board Chair with the task of working with the appointed employees on their respective annual merit considerations on behalf of the Board of Commissioners. Commissioner Thomas noted that the motion for the reappointments was being forwarded to the full board. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None Action: Motion Carried. Excused Absence None. Other Commissioner Zerkle commended GM Peffley on his efforts during the COVID-19 pandemic, how the employees and customers were treated, and all the considerations that were put into place for their safety and well-being. Adjourn Chair Mullen adjourned the meeting at 7:14 p.m. Respectfully Submitted, Tony Mullen, Chair Human Resources Committee Public Comments None. Approval of Minutes Motion by Commissioner Zerkle, Seconded by Commissioner Graham,to approve the Finance Committee meeting minutes of July 13, 2021. Action: Motion Carried. Baker Tilly External Audit Report and Resolution Chief Financial Officer (CFO) Heather Shawa provided background information on the annual external audit report. Ms. Shawa introduced external auditor Aaron Worthman, Partner and CPA at Baker Tilly Virchow Krause, LLP. Mr. Worthman presented and highlighted the external audit report which included an audit overview, management's responsibilities, the audit approach and results, accounting changes relevant to BWL,and trending challenges and opportunities. BWL received an unmodified or clean opinion which is the highest level of assurance provided. Mr. Worthman stated that 30%of the audit process was internal controls, 40%was substantive testing and 30%was reviewing financial reports. Internal controls include disbursements, payroll, billing and information technology while substantive testing consists of reviewing cash and investments and fixed asset purchases. Mr. Worthman reported that there were no deficiencies in internal controls. Mr. Worthman noted from the financial statements the income available for revenue bond debt retirement was $52.7 million for 2021 and was a significant increase from $29.7 million in 2020. Mr. Worthman also noted that operating revenues increased by $15.9 million or 6% and was mainly due to increased rates in 2020. Operating expenses decreased $18.3 million or 5.7% which was mostly due to decreased administrative expenses in health care and positive investment performance. Mr. Worthman also reported that there was a substantial increase in debt services due to capitalized interest payments on the last borrowings and this will level off in 2023. Chair Zerkle asked if the COVID-19 pandemic was the reason for the greatest part of the increase in water and electric revenues. Mr. Worthman responded that the rate increase for 2020 was the reason for the increase in revenues. GM Peffley added there was an increase in residential electricity and water use due to employees working from home and it wasn't offset by a decrease in commercial consumption. Mr. Worthman reported that the disclosures in the financial statements are neutral, consistent and clear. He stated that, when reviewing the financial statements and financial plans, assets and projected outcomes are an assumed value and the audit determines whether these are reasonable assumptions. Chair Mullen commented that there were bound presentations of the audit on the side table for all of the Commissioners and thanked the CFO and Finance Department for their work on the audit. Commissioner Merrill inquired about net fund assets with no allocation and whether there were any benchmarks or standards for balancing prudence and what customers are charged. Mr. Worthman responded that the Government Finance Officers Association (GFOA) website provides information on benchmarking and what should be reviewed. The information isn't specific to utilities but to governmental entities. CFO Shawa responded that recommendations are being reviewed and that information placed on the Financial Dashboard is benchmarked. Commissioner Merrill asked if information from other public utilities was compared for an industry standard. GM Peffley responded that information from all public utilities is reviewed for competiveness through information obtained through American Public Power Association (APPA). Motion by Commissioner Zerkle, Seconded by Commissioner Graham, to forward to the Board Meeting the Acceptance of the Resolution for the 2021 Audited Financial Statements. Action: Motion Carried. Advanced Distribution Management System (ADMS) Capital Project Exceedance Policy and Resolution CFO Shawa stated that the ADMS project is part of the BSmart program and is the replacement of the prior Outage Management System (OMS). Phase I was fully implemented and Phase II is the energy side of it. Additional approved scope is 50% of the ADMS project exceedance request and the other 50% is internal and outside labor and additional hardware purchases. GM Peffley responded that the regulations changed after the project was started and has been included in the exceedance request. CFO Shawa requested approval of the exceedance in order to complete the project. Motion by Commissioner Graham, Seconded by Commissioner Zerkle, to forward to the Board Meeting the Advanced Distribution Management System Capital Project Exceedance Policy Resolution. Action: Motion Carried. July YTD Financial Summary Finance Manager, Scott Taylor gave a review of the July 2021 Year-to-date Financial Summary. Mr.Taylor reported the following: revenues were budgeted at $32 million and it is at $31 million; operating expenditures were budgeted at $26 million and $23 million was spent; Net Income was budgeted just above $ million and it is now a little under$8 million. Mr. Taylor noted that as July and August are typically slower months financial factors are typically under budget. Update on Federal Infrastructure Plan GM Peffley reported that in response to Commissioners' request about funding from the government and will provide an update on water at the Regular Board meeting. Grants are requested through the city as the opportunities are available. CFO Shawa gave an update on the Federal infrastructure plan. The Federal infrastructure plan is being monitored as it is awaiting being passed. Clean drinking water, electric vehicles infrastructure, distribution planning and energy efficiency, and cybersecurity efforts are items of interest for BWL. Chair Mullen inquired whether the funding that is being requested is in addition to what BWL would spend or is it in place of what would be spent. Commissioner Zerkle responded that it would be extra money to start a project that has been budgeted. GM Peffley added that the funding requested would be in addition in order that a project could be completed sooner. Commissioner Zerkle commended the BWL program that assisted with the Financial Pandemic Relief Fair. GM Peffley responded that BWL shuts off less customers' utilities than any other utility in the state. GM Peffley added that there was increase of unpaid bills from $1 million to $11 million during the pandemic and that there was $30 million of financial assistance available to pay past due bills. BWL hopes that at least $5.5 million of the unpaid bills will be paid through the financial assistance available. Other Motion by Commissioner Zerkle, Seconded by Commissioner Graham, to excuse Commissioner Semone James from tonight's meeting. Action: Motion Carried Adiourn Chair Tony Mullen adjourned the meeting at 7:16 p.m. Respectfully submitted Tony Mullen, Chair Finance Committee MANAGER'S RECOMMENDATIONS There were no Manager's Recommendations. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. RESOLUTIONS RESOLUTION 2021-09-01 PA 152 Health Care Premium Sharing WHEREAS, Governor Rick Snyder, on September 27, 2011, signed legislation known as the "Public Funded Health Insurance Contribution Act", Public Act 152 of 2011 (the "Act") limiting the amount public employers may pay for government employee medical benefits, and; WHEREAS, the Act took effect January 1, 2012 and applies to all public employers including the Lansing Board of Water & Light, and; WHEREAS, the Act contains three options for complying with the requirements of the Act; WHEREAS, the three options are as follows: 1) Section 3 - "Hard Caps" Option - limits a public employer's total annual health care costs for employees based on coverage levels, as defined in the Act; 2) Section 4 - "80%/20%" Option - limits a public employer's share of total annual health care costs to not more than 80%. This option requires an annual majority vote of the governing body; 3) Section 8 - "Exemption" Option - a local unit of government, as defined in the Act, may exempt itself from the requirements of the Act by an annual 2/3 vote of the governing body; WHEREAS, the Board of Commissioners desires to maintain premium sharing at 20% for all active employees for medical benefits effective January 1, 2022 through December 31,2022, RESOLVE that the Board of Commissioners by a majority vote has decided to adopt the 80%/20% option as its choice of compliance under the Act; NOW, THEREFORE, BE IT RESOLVED the Board of Commissioners of the Lansing Board of Water & Light elects to comply with the requirements of 2011 Public Act 152, the Publicly Funded Health Insurance Contribution Act, by adopting the 80%/20% option for the medical benefit plan coverage year January 1, 2022 through December 31,2022. Motion by Chair Price, Seconded by Commissioner Mullen, to approve the Resolution for the PA 152 Health Care Premium Sharing. Action: Motion Carried. RESOLUTION 2021-09-02 Fiscal Year 2021 Audited Financial Statements of the Enterprise Fund and Pension Fiduciary Funds RESOLVED, that the fiscal year 2021 Audited Financial Statements of the Board of Water and Light have been reviewed and are hereby accepted as presented. FURTHER RESOLVED, that the Corporate Secretary is hereby directed to file a copy of the fiscal year 2021 Audited Financial Statements of the Board of Water and Light and the report on auditing procedures with the State Treasurer as required by the Uniform Budgeting and Accounting Act (Public Act 2 of 1968, as amended) no later than December 31, 2021. FURTHER RESOLVED, that the Corporate Secretary is hereby directed to file a copy of the fiscal year 2021 Audited Financial Statements of the Board of Water and Light with the City of Lansing no later than October 2021. Motion by Commissioner Mullen, Seconded by Commissioner Leek, to approve the Resolution for the Fiscal Year 2021 Audited Financial Statements of the Enterprise Fund and Pension Fiduciary Funds. Action: Motion Carried. RESOLUTION 2021-09-03 Capital Project Exceedance:PG-40025 Advanced Distribution Management System WHEREAS, Lansing Board of Water & Light's (BWL) Policy F1-13, previously known as Policy #15-02, entitled Capital Project Exceedance Approval requires BWL Board of Commissioners approval for specific capital projects that are expected to exceed their previously approved designed budget amount by both 15% and $200,000 prior to completion of the project; and WHEREAS, the previously approved budget for Capital Project PG-40025 Advanced Distribution Management System was $4,603,120; and WHEREAS, the projected final total cost for Capital Project PG-40025 Advanced Distribution Management System is $6,315,943, should the project be completed; and WHEREAS, BWL staff and management reviewed the project cost in detail, which .includes but is not limited to the rationale and circumstances for the increased budget projection; and WHEREAS, BWL staff and management recommends that the Capital Project PG-40025 Advanced Distribution Management System projected spending be approved; and RESOLVED, the BWL Board of Commissioners approve projected spending for Capital Project PG-40025 Advanced Distribution Management System with a projected final total cost of$6,315,943. Motion by Commissioner Mullen, Seconded by Commissioner Thomas,to approve the Resolution for the Capital Project Exceed ance:PG-40025 Advanced Distribution Management System Action: Motion Carried (Yeas 5: Commissioners Price, Leek, Mullen, Thomas, Zerkle) (Abstaining 1: Commissioner James) MANAGER'S REMARKS General Manager Dick Peffley provided the following information: 1. Delta Energy Plant (DEP) will run and tune the gas turbines in the 2"d week of October and will also start up the support equipment to fire up the steam generator to be brought online in the middle of November. There was a $12 million (3%) impact by COVID-19 due to labor. DEP is currently available for emergency use. Commissioner Leek asked for a completion date on DEP and how it was affected by COVID-19. GM Peffley responded that pre-COVID 19 DEP was to be brought online in September, but now it will be in November. Commissioner Zerkle asked for confirmation that the DEP would be running in October. GM responded that DEP is available for use and there is fine tuning that is being conducted, but it will be completely operational in November. Approved by the Board of Commissioners 09-28-21 '1W Hometown People.Hometown Power. MINUTES OF THE BOARD OF COMMISSIONERS MEETING LANSING BOARD OF WATER July 27, 2021 The Board of Commissioners met at the Lansing Board of Water and Light ( dayHul y27a2021,RE0 Town Depot located at 1201 S. Washington Ave., Lansing, MI, at 5:30 P.M. on Chairperson David Price called the meeting to order at 5:30 P.M. War Chair Price we lcomed new Commissioner Semone James representing the city was note ngatt Sndan B and new Non-Voting Commissioner Brian Ross representing DeWitt Township w The Corporate Secretary, M. Denise Griffin, called the roll. Tony Mullen, Tracy Thomas, and Present: Commissioners David Price, S one James, SDoug Douglas Jester(East Lansing), Larry Merrill (Delta Sandra Zerkle. Non-Voting CommissionersPresent: Township), issioner Beth Graham and Non-Voting Commissioner Brian Ross (DeWitt Township). Absent. Comm Corporate Secretary Griffin declared a quorum. Commissioner Mullen led the Pledge of Allegiance. SPECIAL COMMUNICATION a. Letter of Resignation from BWL At Large Commissioner Ken Ross Motion by Comm issioner Mullen, Seconded by Commissioner Leek to accept, receive and place on File the July 13, 2021 letter of resignation from Commissioner Ken Ross. Action: Motion Carried ELECTION OF OFFICERS FY 2021-2022 Nominating Committee Chairperson Tony Mullen presented the June 15, 2021 Nominating Committee oner Report. Theproposed avid Price ro osed slate of officers for Fiscal Year 2021-2022 is acCh rpersonl The D were no serving as Chairperson; and Commissioner Sandra Zerkle serving as Vice further nominations for the officers' positions. Motion by Commissioner Mullen, Seconded by Commissioner Leek to approve the nominations of Commissioner David Price to serve as the Chairperson and Commissioner Zerkle to serve as the Vice Chairperson of the Board of Commissioners for Fiscal Year 2021-2022. Action: Motion Carried. Chair Price requested approval for the appointments of Commissioner Tony Mullen as the member of the Executive Committee to fill the past Chairperson position as the past Chairperson, Sandra Zerkle, is now filling the Vice Chairperson position of the Executive Committee, and Commissioner DeShon Leek as the final member of the Executive Committee. Motion by Commissioner Price, Seconded by Commissioner Thomas to approve the appointments of Commissioner Tony Mullen and Commissioner DeShon Leek to serve as the third and fourth members on the Board of Commissioners Executive Committee. Action: Motion Carried. SPECIAL PRESENTATION On behalf of the Board of Commissioners, Chair Price presented Certificates of Appreciation to Delhi Advisory Commissioner, Stuart Goodrich and City of Lansing 111 Ward Commissioner, David Lenz. APPROVAL OF MINUTES Motion by Commissioner Mullen, Seconded by Commissioner Zerkle, to approve the Regular Board Meeting minutes of May 25, 2021 and the Special Board Meeting minutes of June 17, 2021. Action: Motion Carried. PUBLIC COMMENTS ON AGENDA ITEMS There were no public comments on agenda items. COMMUNICATIONS Electronic mail received from Claude Beavers regarding the Customer Portal - Referred to Management. Received and Placed on File COMMITTEE REPORTS Commissioner Tony Mullen presented the Nominating Committee Report: NOMINATING COMMITTEE Meeting Minutes June 15, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Nominating Committee meeting of the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI, at 4:30 p.m. on Tuesday, June 15, 2021. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ed8c3f9dO79bale9532ceeeef22648917 Event Number for Attendees: 132 808 7891 Event Password: WbgjpxHm292 Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 808 7891 Nominating Committee Chair, Tony Mullen, called the meeting to order at 4:43 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: Tony Mullen remotely, Lansing, MI (Member) Beth Graham remotely, Lansing, MI (Member) Deshon Leek remotely, Lansing, MI (Member) David Lenz remotely, Lansing, MI (Member) Stuart Goodrich remotely, Delhi Township, MI Ken Ross remotely, Lansing, MI Absent: None Public Comments There were no public comments. Approval of Minutes Motion by Commissioner Leek, Seconded by Commissioner Graham to approve the Nominating Committee meeting minutes of June 23, 2020. Roll Call Vote: Yeas: Commissioners Tony Mullen, Beth Graham, Deshon Leek, and David Lenz Nays: None Action: Motion Carried Officer & Committee Survey and Committee Selection Results Memoranda Nominating Committee Chair Mullen stated that the Officer Committee Survey and Committee Selection Results Memoranda and Committee Survey Results and Comments Forms were included in the Nominating Committee meeting packet for review and asked if there was any discussion regarding the documents. There was no discussion. Nomination of Board Officer Candidates for Fiscal Year 2021-2022 Chairperson and Vice Chairperson Nominating Committee Chair Mullen opened the floor for nominations for the Chairperson for the 2021- 2022 fiscal year and for the Vice Chairperson for the 2021-2022 fiscal year. Motion by Chair Mullen, Seconded by Commissioner Graham to nominate Commissioner David Price to serve as the Chairperson for the 2021-2022 fiscal year. Roll Call Vote: Yeas: Commissioners Tony Mullen, Beth Graham, Deshon Leek, and David Lenz Nays: None Action: Motion Carried General Manager the y requested a closed session foret n ps Acptoexempt onvMCL 15.268(aing his )tua General Manager Richard Peffle year-end performance evaluation as permitted by the Open Me g Motion by Commissioner Thomas,Seconded by Commissioner Leek, o enter cha d Peffle closed session to discuss the contractual year-end performance evaluation of General Manager, Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, and Tracy Thomas. Nays: None. Action: Motion Carried. Commissioner Zerkle was having technological issues and was unable to respond. The Human Resources Committee went into closed session at 5:57 p.m. Motion by Commissioner Thomas, Seconded by Commissioner Leek, to reconvene into open session. Commissioner Thomas thanked GM Peffley for his leadership and for handling the challenges in the past year. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, and Tracy Thomas. Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to open session at 6:24 p.m. Upon conclusion of the Closed Session, the following motion was offered: ' b Commissioner Thomas,Seconded by Commissioner Leek,to forward a resolution reappointing motion Y Peffley to the Charter position of General Manager for FY22 to the full Board or Richard (Dick) consideration. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, and Tracy Thomas. Nays: None. Action: Motion Carried. Internal Auditor purpose of receiving his contractual Wesley Internal Auditor, Lewis, requested a closed session for the dperformance evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). year-en n b Commissioner Thomas,Seconded by Commissioner Leek,toWesle nter into closed session to discuss Mottoy the contractual year-end performance evaluation of Internal Auditor, s. Roll Call Vote: y Mullen, Deshon Leek, and Tracy Thomas. Yeas: Commissioners Ton Nays: None. Action: Motion Carried. HUMAN RESOURCES COMMITTEE Meeting Minutes July 13, 2021 The Human Resources Committee of the Lansing Board of Water and Light (BWL) met at BWL Headquarters REO Town Depot located at 1201 S. Washington Ave., Lansing, MI at 5:15 p.m. on Tuesday, July 13, 2021. Human Resources (HR) Committee Chairperson Tony Mullen called the meeting to order at 5:15 p.m. and asked the Corporate Secretary to call the roll. Present: Commissioners Tony Mullen, DeShon Leek, Tracy Thomas, and Sandra Zerkle. Also present: Commissioners Beth Graham, David Lenz, and David Price; and Non-Voting Commissioners Douglas Jester (East Lansing), and Larry Merrill (Delta Township) Absent: None The Corporate Secretary declared a quorum. Public Comments There were no public comments. Approval of Minutes Motion by Commissioner Zerkle, Seconded by Commissioner Leek, to approve the Human Resources Committee meeting minutes of June 15, 2021. Action: Motion Carried. Collective Bargaining Agreement—BWL and IBEW General Manager (GM) Dick Peffley spoke about the Collective Bargaining Agreement between BWL and IBEW and presented a resolution to be forwarded to the Board for consideration. GM Peffley presented two points regarding the contract. • The tentative agreement was made four months ahead of the deadline and contains a four-year contract with a 3.5% increase in the first year and three 3% increases in the remaining years. The contract is from November 2021 through November 2024. The goal was for an economic package to be settled in advance in order that there would be less distraction and stress for the work force while coming out of the pandemic. There are projects and opportunities where flexibility in the work force will be needed and the tentative agreement will smooth the process with the option of continuing negotiations as needed. Commissioner Zerkle commended GM Peffley, the IBEW and the staff for putting the contract together quickly and within financial guidelines. GM Peffley responded that he was pleased with the contract result, as he had requested that Ron Byrnes, IBEW (Local 352) Business Manager and Michael Flowers, Executive Director of Labor Relations, put together a contract and bring it to him for discussion. The contract he received from the above mentioned, differentiated only 0.5% in what he had looked-for, and that was very pleasing. Commissioner Leek also congratulated GM Peffley and IBEW Local 352 on the contract negotiations process. the Human Resources Executive Director, Lynnette Keller, presented two topics regarding ear ingty e A 152 Healrements h affoCare Premium Sharing, options for employer caps on healthcare costs a nd the act. Ms. Keller reported that the BWL no longer needs to opt our th Michigan's employer/employee however a resolution needs to be adopted or approved annually fo health care cost option as set forth in PA 152. Ms. Keller reported thats cannot i 9the Aof CT affordability provisions elons for January 1, 2022 stipulates health insurance he affordability calculations. Ms. Keller respectfully requested entities must add Opt Out/Waiver pay that the Committee forward the annually required resolution to the full Board for consideration. Motion by Commissioner Mullen, Seconded by Commissioner Graham, to forward the PA 152 Health Care Premium Sharing Resolution to the full board for consideration Action: Motion Carried Other Motion by Commissioner Graham, Seconded by Commissioner Mullen,to excuse Commissioners Semone James and David Price from tonight's meeting. Action: Motion Carried Adjourn Chair Zerkle adjourned the meeting at 6:24 p.m. Respectfully Submitted Sandra Zerkle, Chair Committee of the Whole Commissioner Tony Mullen presented the Finance Committee Report: FINANCE COMMITTEE Meeting Minutes September 14, 2021 The Finance Committee of the Board of Water and Light (BWL) met atSeptember teh t BWL Headquarters—REO Town T p Depot, located at 1201 S. Washington Ave., Lansing, MI on Tuesday, 2021. Fina nce Committee Chair Tony Mullen called the meeting to order at 6:31 p.m. and asked the Corporate Secretary to call the roll. t: Commissioners Tony Mullen, Beth Graham, and Sandra Zowlnshi )sandrBrian R ss (DeW g Presen Larr Merrill (Delta T p Commissioners Douglas Jester (East Lansing), Y Township). Absent: Commissioner Semone James The Corporate Secretary declared a quorum. Information Officer, Rod Davenport, presented the IT and Security Update. Mr. Davenport Chief he Department (ITD)— presented information on the focus areas in erseculr ty information on proovgded from infrastructure infrastructure, business value, IT projects and cyb network optimization and hardware lifecycle management; infor�elivering business value IT's included p included the role of the Business Relationship Manager ts cluded(BY 20 projects clom,pleted and projects on deck; cted business value; information from IT probe ' n from c bersecurity included cyber resources additions and the focusefo rFY22ewoul audit be onuasset information Y by BDO Audit &Assurance. Mr. Davenpor alignment, ephan ed orted resoDurcetplanning and projections, and achieving lifecycle management, business tanning cycle. the target of a 3.5 Cyber Maturityscore by the end of the current strategic p the ssioner Mullen asked if the IT audit presented was the same audit in the document Commi Commissioners were sent. Mr. Davenport affirmed. North American Electric Reliabilit Cor oration NERC Complianceresented he NERC Compliance update. Ms. Ms. Caitlin Chavez, BWL's NERC Compliance Supervisor, p encass 14 categories, with one new Chavez stated that there is a total of 83 NERC standardsthat and will be enforceable. Ms. Chavez gave standard and nine revised standards that have been approvedRegulatory a history of how mandatory compliance requirements developedEnergy Reliability Organization (ERO), NERC, Commission (FERC),who approves policies and standards;the ReliabilityFirst, who oversees BWL s who drafts policies and standards; and the Regional Entity, complianc e with policies and standards. BWL also works with id lann� t Independent System Operators (MISO) for compliance obligations in real time and for futureping. GM Peffley com mented that there are several variables that can cause avariance ri which re brought him do. him and commended the compliance department on the quality an efficiency (PowerPoint available online in meeting packet) Ener Waste Reduction EWR & Renewable Ener U date Environmental Ser vices and Reliability Compliance Manager, Lori Myott, provided the t�everalep programs Update on BWL's Energy Waste Reduction (EWR) Program.exceeded Myott reported goal. Ms. Myott were halted during the COVID-19 pandemic but BWL still exceeded its 2020 savings g upgrades. Ms. le energy portfolio mandate, its own 3070 presented residential program highlights and gave an overview of business programs an upg Myott also reported that BWL met the states 12.5 ° renewable 0 oat and is complying, with all aspects of PA342. (Pow erPoint available online in clean energy by 202 g meeting packet) mmented on the energy efficiency program and stated thaWwe o for rep acing AC'ds Commissioner Jester co with a heat pump a offer similar incentives for replacing an air conditioner (AC) ' . GM Peffley responded that the credit is for customers to whom BWL has reached with more effluent AC s out, who have new heat pumps installed which use less natural gas. wired about the program(s) delays and their reinstate we tsmn r ade with ustomOe\ COW Chair Zerkle inq s Chair Zerkle's inquiry, Ms. Myott stated that limited contact appointments and that most of the programs were only delayed about four months. PUBLIC ACT PA 152 Health Care Premium Sharing Resolution Electronic mail received from Ashlee Barker regarding tree trimming in the Moores Park Neighborhood - Referred to Management. Received and Placed on File Electronic mail received from Pauline Thomas regarding a water bill discrepancy- Referred to Management. Received and Placed on File Late Item Electronic mail received from Danielle Crane, Bryan Taylor and Tina Olson regarding tree trimming and the Moores Park Neighborhood Association - Referred to Management. Received and Placed on File Late Item Electronic mail received from Bryan Taylor and Tina Olson regarding balancing community needs and protecting power lines - Referred to Management. Received and Placed on File COMMITTEE REPORTS Commissioner Sandra Zerkle presented the Committee of the Whole Report: COMMITTEE OF THE WHOLE Meeting Minutes September 14, 2021 The Committee of the Whole of the Lansing Board of Water and Light(BWL) met at the BWL Headquarters- REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, on Tuesday, September 14, 2021. Committee of the Whole Chair Sandra Zerkle called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. Present: Commissioners Sandra Zerkle, Beth Graham, DeShon Leek, Tony Mullen, and Tracy Thomas, and Non-Voting Members: Douglas Jester(East Lansing), Larry Merrill (Delta Township) and Brian Ross (DeWitt Township) Absent: Commissioners Semone James and David Price The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Graham, Seconded by Commissioner Mullen, to approve the Committee of the Whole meeting minutes of May 11, 2021. Action: Motion Carried. IT and Security Update FY 22 Audit Plan Proposed FY 2022 Audit Plan Details Proposed FY 2022 Audit Plan—Highlights Planned Audits: Estimated Hours Payroll-Time Recording,Payroll 600 Top Six Engagements for FY 2022(as discussed and agreed with Senior P—rising,and Payment of overtime Management): Human Resources-Employee Master File 100 1. Time Recording,Payroll Processing and Payment of Overtime- infarmeaonTechnotogv-Manapemamof 500 Payroll(First Time AudPil Mobile Devices 2. Employee Master File(To Be Included in#1 Above)-Human outage Management system-outage Sao Resources,Last Audit:October 2017 Management system 3. Manage Mobile Devices -Information Technology,Last Audit: October Enterprise information Mananement— 500 2017 Operation. 4. Outage Management System(Current Process)-Operations(First Capital Protect.Management-SWL Other 600 Time Audit) Other.Engagements and Projects: 5. Enterprise Information Management(Records Retention Management) Peer Review Preparation and Engagement,as 500 -Legal/Management/Board Processes,Last Audit: March 2014 Required by the institute of Internal Auditors 6. Capital Projects Management-BWL Other(First Thne Audit) Ongoing Management Assistance too Nero'The audit enpapemenn listed above,along with anticipated sun and cgmpletlona,are Special Projects and Requests 200 and will be subject to change. Total Required Hours 3,600 i� Finance Committee sleeting b Finance Committee Meeting 6 7ommitt 1 Finance Committee Chair Lenz asked whether the audits would be just planned audits and/or annual audits. Mr. Lewis responded that five or six planned audits per year would be conducted. Mr. Lewis added that an external peer review audit is due this year and time needs to be allotted for it. Finance Chair Lenz asked if outside consultants were needed for any of the audits. Mr. Lewis responded that the external peer review is the only audit that will have outside consultants unless there is a special request. Chair Lenz expressed the importance of planning and preparing for additional cost in I/A budget. Commissioner Zerkle asked how often and what length of time is scheduled for audits to be conducted and whether the audits being planned were due to concerns from the respective departments. Mr. Lewis responded that some of the audits planned were for revolving processes, determining progress in processes, and for assessing risks that might come up. Motion by Commissioner Price Seconded by Commissioner Graham, to forward the FY22 Audit Plan Resolution to the full board for approval. Action: Motion Carried. Internal Audit Department Charter Internal Auditor Wesley Lewis presented the Internal Audit Department Charter. Motion by Commissioner Price, Seconded by Commissioner Graham, to forward the Internal Audit Department Charter Resolution to the full board for approval. Discussion: Commissioner Merrill suggested that as the audit charter is the document that represents the Board speaking to the audit department of its expectations, the audit charter should be reviewed and revised to reflect the Board's advisement and directives. Chair Lenz commented that the audit charter was revised in 2019 and the current version is being forwarded to the full board for approval. Commissioner Price commented that there was concern with the prior audit document presented and the Board was in agreement with keeping the current audit charter without the changes. Commissioner Zerkle commented in agreement that there were concerns with the changes. Commissioner Merrill added that if the current document remains effective until it is modified or repealed and then brought forward to the Board as a redraft,the Board should speak with one voice to make a binding charter in order to enforce compliance. h Internal ly Chair Lenz responded that the current audit charter will ultimateAespons responsible fouditor to r Commissioners to review. Mr. Lewis responded in agreement that the Board is the audit charter and that there should be periodic reviews as needed. Charter approval p oivaioner Price l could be postponred ed about the deadline for approval and questioned if the Internal Au p until the next Finance Committee meeting after the Commissionthat the Audit Chartrs reviewed and ferred revisions to the approvaltyould be current Audit Charter. In conclusion,the Commissioners agreed suggestions to the postponed allowing all Commissioners' time to review and submit any changes or document. Commissioner Price Rescinded his motion to forward the Internal Audit Department Charter Resolution. Finance Committee Chair Lenz directed Internal Auditor ewis to osend all Commissioners' the current Audit Charter document to allow them to review and submit Bi Annual Internal Audit Open Management Responses Updatethe CFO Shawa introduced Elisha Franco, Finance and Planning Senior sactions Internal Audit Open Management Responses Update. Ms. Franco informed the Board of the open for revising and updating the P-Card Manual and Program and the e andatory ifor MPPA/MI O bildlings Additional open actions included implementing formal and w proceduresthe and implementing a formal user access security review process for written of Performicies and rance ocedures Energyfor R Risk OATI System with ECD 7/31/2021. Closed actions included develop Management (ERM) Status Report with an ECD and actual completion with an ECD 12/31/2020 andma standardization and centralization of storage of purchasing documentation actual completion date of 1/31/2021. Open Actions{cantinuedi :..ro uce.uacww-,w.+a Rm.*•cco n:t:an: M.�....w,«..,�.�...�.w..r.+ ........ v:�axw....a,:- xaa«.�.....cwo .TM« .«+�.a«..s.,,...«...w•,..x.. .w..y...,.x .� ,. ..�.,,..:Ka,>°.waa..:�w,�...x,.2•+<... is n, .,w.. Q�,. .r..<„eu<.++n w«<-a....•:a u..<r..v.. '".'.""�,,.<.<w....:. .<::.::k: ".•� �,:".s".",.',G w:,:..h •«,1.xrxx,.:x.m:.<,u ..<uu.r.�.:.�+.+x,.e...xxu }S «°..°°".�,:,�:...rP:... „ c }'• Llu,d r t:.m Ic n tinu<:Jj . ,. Closed ��c`n nw+.xnns a . WN;xYAa6 U.r dw`r±x.w-1•a.nwrs.r,V yx«M.ax a utuv P:�xu« tM«w+.w..rs.a,Mw w.w<na..pmnv"n�•,•.c..a�a)+wi t]zxG.nu tu,a,m.«w••.o•x«{x t-Nt m.irnnMnP�n.w�:..«a..<mreu:•w+ y�{I�;SL. umama.awi w.awra,,wc.,.m nwt.•<,nm.y v N $. , 1 an<w,wwawr..Nw..,«.rryiroM ee«•+^'»'21 a �. rmat of proviing the open tions Commissioner Zerkle asked Ms. Franco whether the previous o es° onded that the informationcco Id information in a chart or spreadsheet was still in use. Ms. Fran p still be provided in the format in which it was previously done. Co o asownh m toer r review asked if intern Lewis Auditor Lewis was provided with a compilation of the information responded that staff provides him with the information to review e deCvFOd th wa added that open actions are not closed and reported to the Board until internal audit has Chair Lenz asked whether training for new procedures was conducted by the Finance Department and Ms. Franco responded that each department provides their own training. CFO Shawa added that training support is provided by Human Resources when needed, during managers' meetings and through the automated Learning Management System (LMS). Other Motion by Commissioner Price, Seconded by Commissioner Graham, to approve the absence of Commissioner Ken Ross. Adiourn Chair David Lenz adjourned the meeting at 6:46 p.m. Respectfully submitted, David Lenz Chair Finance Committee MANAGER'S RECOMMENDATIONS General Manager Richard Peffley gave an update on the Delta Energy Plant and stated that even during the pandemic, building has continued to go forward and has provided enough energy for market capacity. The next step is for 24/7 commercial operations and there are two challenges, a delay in obtaining the visas for the start-up engineers and a small amount of labor slowdown. Chair Price asked if GM Peffley knew when the visas for the engineers would be available. GM Peffley responded that he didn't know and that it was a day by day issue. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. RESOLUTIONS RESOLUTION 2021-07-01 Appointment of the Charter Position of Corporate Secretary The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, at its first regular meeting following July 1st of each year or as soon as practicable thereafter. RESOLVED, That the Board of Commissioners hereby appoints the following individual to the Charter position of Corporate Secretary fiscal year 2021-2022 or until a successor is appointed, whichever last occurs: M. Denise Griffin, Corporate Secretary ute any FUR THER RESOLVED,That the Chair of the Board of Commissioners is authrorizee d to by the Human d all contractual amendment documents which reflect merit adjustments reco Resources Committee for FY 2021's performance. on b Commissioner Thomas, Seconded by Commissioner Mullen, to approve the reappointment of Moti Y the Corporate Secretary for the Fiscal Year 2021-2022. Roll Call Vote: James, Deshon Leek, Tony Mullen, Tracy Thomas, and Sandra Yeas: Commissioners David Price, Semone Zerkle. Nays: None. Action: Motion Carried. RESOLUTION 2021-07-02 Appointment of the Charter Position of Director and General Mana er The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and Gene ral Manager, Internal Auditor, and Corporate Secretary, at its first regular meeting following July 1st of each year or as soon as practicable thereafter. oints the following individual to the Charter RESOLVED,That the Board of Commissioners hereby app appointed, position of Director and General Manager for fiscal year 2021-2022 or until a successor is whichever last occurs: Richard R. Peffley, Director and General Manager ute any FURTHER RESOLVED,That the Chair of the Board of Commissioners is authorized t by the Human d all contractual amendment documents ehformance.ich reflect merit adjustments recommended Resources Committee for FY 202 p Motion by Com missioner Mullen, Seconded by Commissioner Thomas, to approve the reappointment of the Director and General Manager for the Fiscal Year 2021-2022. Roll Call Vote: one James, Deshon Leek,Tony Mullen, Tracy Thomas, and Sandra Yeas: Com missioners David Price, Sem Zerkle. Nays: None. Action: Motion Carried. RESOLUTION 2021-07-03 Appointment of the Charter Position of Internal Auditor The Board's Rules of Administrative Procedures specify that the Board is to appoint a Director and General Manager, Internal Auditor, and Corporate Secretary, at its first regular meeting following July 1st of each year or as soon as practicable thereafter. RESOLVED, That the Board of Commissioners hereby appoints the following individual to the Charter position of Internal Auditor for fiscal year 2021-2022 or until a successor is appointed, whichever last occurs. Wesley Lewis, Internal Auditor FURTHER RESOLVED,That the Chair of the Board of Commissioners is authorized to execute any and all contractual amendment documents which reflect merit adjustments recommended by the Human Resources Committee for FY 2021's performance. Motion by Commissioner Thomas,Seconded by Commissioner Leek,to approve the reappointment of the Internal Auditor for the Fiscal Year 2021-2022. Chair Price stated that he would not approve the reappointment of the Internal Auditor. Although he appreciated the enthusiasm Mr. Lewis brought to the position, Chair Price stated he didn't think the appointment was a good fit for the Board of Water and Light. Roll Call Vote: Yeas: None. Nays: Commissioners David Price, Semone James, Deshon Leek, Tony Mullen, Tracy Thomas, and Sandra Zerkle. Action: Motion Failed for Reappointment. RESOLUTION 2021-07-04 Collective Bargaining Agreement between the Lansing Board of Water & Light and the International Brotherhood of Electrical Workers AGL-CIO Local 352 WHEREAS, on June 1, 2021 the Board of Water & Light and IBEW Local 352 entered into a Tentative Agreement to extend the Collective Bargaining Agreement for four years effective November 1, 2021 through October 31, 2025; and WHEREAS, the terms and conditions of the Tentative Agreement are in accordance with the direction and authority that was delegated by the General Manger; and WHEREAS, the Tentative Agreement was submitted by the IBEW Local 352 negotiating team to the IBEW membership for its approval and was ratified on June 22, 2021. RESOLVED, that the Board of Commissioners approve the "BWL/IBEW Tentative Agreement" dated and signed June 1, 2021. The Official Finalized Contract Agreement is on file in the Office of the Corporate Secretary and the Board of Water and Light's Human Resources Intranet Site. Motion by Commissioner Zerkle,Seconded by Commissioner Leek to approve the resolution for Collective ainin A reement between the Lansing Board of Water & Light and the International Brotherhood of Barg g g Electrical Workers, AFL-CIO, Local 352. Com missioner Mullen and Commissioner Zerkle commended management, union leaders and staff for arriving at an agreement quickly and amenably. Roll Call Vote: e James, Deshon Leek,Tony Mullen, Tracy Thomas, and Sandra Yeas: Commissioners David Price, Semon Zerkle. Nays: None. Action: Motion Carried. Proposed Resolution Fiscal Year 2022 Audit Plan Approval LVED That the Board of Commissioners hereby approves the Fiscal Year 2022 Audit Plan submitted by RESO , Internal Audit. Motion by Commissio ner Price, Seconded by Commissioner Zerkle,to postpone the approval of the Internal Audit Plan for FY 2022 until Commissioners could fully review the plan. Action: Motion Carried. MANAGER'S REMARKS There were no Manager's remarks. COMMISSIONERS' REMARKS he Comm issioner Zerkle commented that Commissioner David Lenz did am excellent cel�amm b chairinioner g t Finance eridian Committee and thanked Commissioner Stuart Goodrich for serving as Township. Commiss ioner Thomas thanked Commissioner Lenz and Commissioner under Vi Goodrich for Zerklelron service, welcomed Commissioner James, and congratulated Chair rice a appointments as Chair and Vice Chair. as not Commission er Merrill expressed his regret that the Internal Auditor's c of Ware renewed and and Light. thanked Wesley Lewis for his service to the community and Lansing Boar EXCUSED ABSENCE Motion by Commissioner Thomas, Seconded by Commissioner Mullen, to excuse Commissioner Beth Graham and Commissioner Brian Ross from tonight's meeting. Action: Motion Carried. PUBLIC COMMENTS Mr. Claude Beavers spoke regarding difficulties with the new customer portal and thanked Customer Service employee John for his help. Mr. Beavers also inquired whether accommodations could be made during the Board Meetings for those that have difficulty hearing. ADJOURNMENT Chair Price adjourned the meeting at 6:05 p.m. M.Denise Griffin,Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk 07-29-21 Approved by the Board of Commissioners: 09-28-21 Official Minutes filed(electronically)with Lansing City Clerk: 10-01-21 Approved by the Board of commissioners July 27,2021 Hometown people.Hamrtm++n power. LANSING BOARD OF WATER AND LIGHT BOARD OF COMMISSIONERS SPECIAL BOARD MEETING MINUTES June 17, 2021 The Board of Commissioners of the Lansing Board of Water n d Light (BWL) met on Web x (JBuWL Headquarters-REO Town Depot located at 1201 S. Washing 17, 2021. The meeting was Publicly Noticed for 5:30 p.m. Event Address for Attendees for Special Board Meeting: https://Ibwl eve nts.webex.com/lbwlevents/onstage/g.p p•7 MTID-- Event Number for Attendees for Special Board Meeting: 132 302 5002 Event Password for Special Board Meeting: bmDwSs2F3b5 Audio Conference for Special Board Meeting: United States Toll +1-408-418-9388 Access Code: 132 302 5002 ############################### Chairperson David Price called the meeting to order at 5:30 p.m. Corporate Secretary Griffin called the roll. TheouglEasJester following Commissioners were present via audio/video: Stuart Goodrich remotely, Holt, MI Price remotely, Lansing, MI remotely, East Lansing, MI (arrived@5:33 p.m.) DeShon Leek remotely, Lansing, MI Tony Mullin remotely, Lansing, MI otely, Lansing Township, MI Ken Ross remotely, Lansing, MI Merrill remotely, Delta Township, MI Sandra Zerkle remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI Absent: Commissioner Beth Graham The Corporate Secretary declared a quorum. Commissioner Price led the Pledge of Allegiance. PUBLIC COMMENT There were no public comments. MEETING PURPOSE: Consider a Resolution Ado tin a Final Proiect Plan for Water S stem Im rovements atin an Authorized Projec and Desi n t Representative by eneral Chair Price stated that he called for this Special Board m PlaingorWate as r System requested improvements Peffley to consider a Resolution Adopting a Final Prod Special Board Mtg. June 17,2021 Page 2 of 4 Designating an Authorized Project Representative. Chair Price gave the floor to General Manager (GM) Dick Peffley to present the resolution. General Manager Peffley stated that the resolution before the Board is for a grant from the State of Michigan, EGLE Department that will offset costs of three of BWUs water projects that have already been budgeted. The BWL cannot apply for the grant without the approval of the Board of Commissioners, in other words, approval of this resolution will allow the Administration to apply for the grant. Once approved the BWL will then review the components in the grant to determine whether it is propitious for the company. If accepted and the BWL moves forward with pursuing the grant, Commissioners will be updated and provided with details at a September Committee or Board meeting. RESOLUTION 2021-06-01 A Resolution Adopting a Final Project Plan for Water System improvements and Designating an Authorized Project Representative WHEREAS, the Lansing Board of Water and Light (BWL) is seeking low interest funding to assist in its efforts to improve existing water treatment and distribution systems through the State of Michigan, Department of Environmental Quality's (EGLE) Drinking Water State Revolving Fund (DWSRF); and WHEREAS, as a requirement of the DWSRF Loan Program, municipalities applying for DWSRF loans are required to submit to EGLE an adopted Project Plan (Project Plan) describing the proposed improvement to existing water treatment and distribution systems program projects; and WHEREAS, the purpose of the Project Plan is for the replacement of aging water main, valves, associated fire hydrants and appurtenance located within the City of Lansing's Combined Sewer Separation Areas of 034D, 034E and 015S to improve water quality and reliability and to improve flow efficiency and public health protection; and WHEREAS, the Project Plan for water main replacement will be in partnership with the City of Lansing's Combined Sewer Overflow project; and WHEREAS, the Lansing board of Water and Light authorized Fishbeck to prepare a Project Plan, which recommends the construction of the following three (3) project areas • CSO Subarea 034D Sewer Separation Project; and • CSO Subarea 034E Sewer Separation Project; and • CSO Subarea 015S Sewer Separation Project; and WHEREAS, the estimated total project cost of the three (3) project areas is $ 19.2 Million; and WHEREAS, a Public Hearing to receive public comment on the Project Plan was held on June 7, 2021 and no public comments were received for cons deratio NOW THEREFORE BE IT RESOLVED that the Lansing Board of Water and scut ht formally water mad pts the replacement n ect Plan and agrees to implement the selected alternative - Alternative1 open conjunction with City of Lansing Combined Sewer Overflow project. Special Board Mtg. June 17,2021 Page 3 of 4 BE IT FURTHER RESOLVED, that the Water Distribution Principal Engineer, a position currently held by Michael Lehtonen, P.E., is designated as the authorized representative for all activities associated with the project referenced above, including the submittal of said Project Plan as the first step in applying to the State of Michigan for a Drinking Water State Revolving Fund Loan to assist in the implementation of the selected alternative. Motion by Commissioner Mullen, Seconded by Commissioner Leek to approve the Resolution for Adopting a Final Project Plan for Water System Improvements and Designating an Authorized Project Representative. Yeas (names of Members voting Yes): Commissioners David Price, DeShon Leek, David Lenz,Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays (names of Members voting No): None I certify that the above Resolution was adopted by Board of Water and Light Board of Commissioners (the governing body of the applicant) on June 17, 2021. BY: M. Denise Griffin Corporate Secretary Name (please print or type) Title V Dewede q June 17 2021 Signature Date Commissioner Zerkle asked for confirmation that this resolution was for approval to apply for a grant for projects, that information would be provided to the Board after BWL staff reviewed the grant, and the Board of Commissioners would sign for the grant after the grant was received. GM Peffley confirmed. MANAGER'S REMARKS/COMMENTS GM Peffley had no remarks. COMMISSIONERS' REMARKS/COMMENTS Commissioner Merrill asked for additional information regarding the monthly BWL Executive Report received by email where the reporting stated that there was a violation notice regarding an exceedance of the mercury limit. Commissioner Merrill asked for the significance of this information. GM Peffley responded that all violations are taken seriously, and the Erickson station had a malfunction in the mercury control equipment. General Manager Peffley added that repairing the malfunction involved running the plant to fine tune it and while running the plant for repairs, violations occurred. Special Board Mtg. June 17,2021 Page 4 of 4 Commissioner Leek wished everyone a Happy Father's Day. Commissioner Goodrich stated that he appreciated being allowed to participate on the Board this past year. Corporate Secretary Griffin wished GM Peffley a Happy Birthday. PUBLIC COMMENT There were no public comments. MOTION OF EXCUSED ABSENCE Motion by Commissioner Mullen, Seconded by Commissioner Leek to excuse Commissioner Graham from tonight's meeting. Roll Call Vote: Yeas: Commissioners David Price, DeShon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. ADJOURNMENT Chair Price adjourned the meeting at 5:47 p.m. Filed with Lansing City Clerk: 06-24-21 Unofficial Minutes 07-29-2021 Official Minutes Approved by the Board of Commissioners 07-27-21 Hometown People.Hometown Power: MINUTES OF THE BOARD OF COMMISSIONERS MEETING LANSING BOARD OF WATER AND LIGHT May 25, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Regular Board of Commissioners meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Tuesday, May 25, 2021. This meeting was publicly noticed for 5:30 p.m. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ec28985d8llf3Ob5bO49a27eaO8Oe4a42 Event Number for Attendees: 132 644 2247 Event Password: R7ggmtu5VM8 Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 644 2247 Chairperson David Price called the meeting to order at 5:30 p.m. The Corporate Secretary, M. Denise Griffin, called the roll. The following Commissioners were present via audio/video: Chairperson David Price remotely, Lansing, MI Beth Graham remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI (arrived @5:39 p.m.) Larry Merrill remotely, Delta Township, MI Tony Mullen remotely, Lansing, MI Ken Ross remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI Absent: Non-Voting Commissioner Stuart Goodrich (Delhi Township) Corporate Secretary Griffin declared a quorum. Chair Price led the Pledge of Allegiance. Chair Price recognized and congratulated General Manager Dick Peffley and spoke about his 45 years of service. Executive Assistant, Ms. Smiljana Williams, presented GM Peffley with a Certificate of Service and gift card. APPROVAL OF MINUTES Motion by Commissioner Thomas, Seconded by Commissioner Mullen, to approve the Regular Board Meeting minutes of March 23, 2021. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek,Tony Mullen, Ken Ross,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. PUBLIC COMMENTS There were no public comments. COMMUNICATIONS Electronic mail received from Lindsey Hampton regarding the LIEAF program -Referred to Management. Received and Placed on File COMMITTEE REPORTS Commissioner Tracy Thomas presented the Committee of the Whole Report: COMMITTEE OF THE WHOLE Meeting Minutes May 11, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Committee of the Whole (COW) meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI, on Tuesday, May 11, 2021. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ebc65b57b27Of4406eb04c5dfd3387498 Event Number for Attendees: 132 169 7679 Event password: NgSimdxR332 Audio conference: United States Toll +1-408-418-9388 Access code: 132 169 7679 Committee of the Whole Chair Tracy Thomas called the meeting to order at 5:36 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: (COW Chairperson)Tracy Thomas remotely, Lansing, MI Stuart Goodrich remotely, Delhi Township, MI Beth Graham remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI DeShon Leek remotely, Lansing, MI David Lens remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tony Mullen remotely, Lansing, MI David Price remotely, Lansing, MI Ken Ross remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI Absent: None The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Zerkle, Seconded by Commissioner Graham, to approve the Committee of the Whole meeting minutes of March 9, 2021. Commissioner Ross requested a correction be made to the March 9, 2021 minutes to reflect the following amendment to the motion for the proposed Resolution for the 2021 Corporate Sustainability & Climate Response: "Commissioner Price asked for a second on the motion for the Amendments and there was none." A roll call vote was taken to approve the Committee of the Whole meeting minutes of March 9, 2021 with the amendment. Yeas: Commissioners Thomas, Graham, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Rules and Regulations Electric,Water, Steam, Chilled Water Services Summary and Resolution General Manager Dick Peffley introduced General Counsel Mark Matus who presented a summary of the updates to the Electric, Water, Steam, and Chilled Water Services Rules and Regulations. Mr. Matus highlighted areas of the substantive changes, non-substantive changes, plus the fees and charges. Under general provisions, a recorded easement will be required for all four of the utility services where a property needs to be crossed for the connection of service. Customer Service updated their terms for bill payment from 15 days to 21 days. Clarifications were made for when there is a sharing of a residency with a customer receiving service from BWL in that there is a responsibility for any charges incurred. Commissioner Ross asked whether a tenant that moves out of an apartment where the primary tenant is a delinquent customer would be able to establish service at another residence. Mr. Matus responded that the tenant that moves would be able to establish service and that he would review the language in the rules and regulations. Commissioner Zerkle asked whether it is made clear to tenants requesting service that not only is the tenant in whose name the service is placed there is a responsibility for charges but also all other tenants. Mr. Matus responded that the BWL rules and regulations are not law but how BWL operates and the rules apply when the tenant would like to become a customer at the residence. He added that it was placed in writing in the rules and regulations for clarification. Commissioner Mullen asked whether each utility being separate was in the rules and regulations. Mr. Matus responded that it was in the rules and regulations indirectly and that the rules and regulations are terms and conditions for BWL service for customers. Commissioner Ross asked if and when a delinquent customer would be allowed to request the extended outage credit if an outage occurred while the customer was delinquent. Mr. Matus responded that when the customer makes an application for the extended outage credit the customer's account needs to be current. Commissioner Zerkle asked what is meant by the term customer choice. Mr. Matus responded that a customer can select which contractor the customer would like to install service in their facility. BWL will inspect the installation but the customer pays the costs. This was written in the rules and regulations to clarify the language. Commissioner Zerkle also asked what a curb feed box is. GM Peff ley responded that in water service there is a main running down the center of the road with a line hooked to it which runs to the curb and sidewalk, and the curb feed box holds the shut off valve and this line runs into the house. Mr. Matus added that three customers have installed chilled water service and that is the reason for the update to the chilled water service rules and regulations. Motion by Commissioner Price, Seconded by Commissioner Mullen,to forward the Resolution for the FY 2021-2022 Rules and Regulations for Electric, Water, Steam, and Chilled Water Services to be effective July 1, 2021 to the full board for consideration. A roll call vote was taken: Yeas: Commissioners Thomas, Graham, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Other There was no other business. Adiourn Commissioner Thomas adjourned the meeting at 6:14 p.m. Respectfully Submitted Tracy Thomas, Chairperson Committee of the Whole Commissioner David Lenz presented the Finance Committee Report: FINANCE COMMITTEE Meeting Minutes May 11, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Finance Committee meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Tuesday, May 11, 2021. Event Address for Attendees: https://lbwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ebc65b57b27Of4406ebO4c5dfd3387498 Event Number for Attendees: 132 169 7679 Event password: NgSimdxR332 Audio conference: United States Toll +1-408-418-9388 Access code: 132 169 7679 Finance Committee Chair David Lenz, called the May 11, 2021, 6:00 p.m. Finance Committee meeting to order at 6:25 p.m. Corporate Secretary Griffin took the roll call to acknowledge attendance. The following Commissioners were present via audio/video: David Lenz remotely, Lansing, MI (Member) Beth Graham remotely, Lansing, MI (Member) David Price remotely, Lansing, MI (Member) Ken Ross remotely, Lansing, MI (Member) Stuart Goodrich remotely, Delhi Township, MI Douglas Jester remotely, East Lansing, MI DeShon Leek remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI (Alternate) Absent: None The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Price, Seconded by Commissioner Graham, to approve the Finance Committee meeting minutes of March 9, 2021. Motion Carried by the following Roll Call Vote: Yeas: Commissioners Lenz, Graham, Price, Ross Nays: None Action: Motion Carried. March YTD Financial Summary CFO Heather Shawa gave a review of the March 2021 YTD Financial Summary. Chief Financial Officer Heather Shawa reported that Total Cash was $391.5 million which was an increase of$1.6 million from last month. Days Cash on Hand ended the month at 244 and along with Debt Service Coverage remained strong. CFO Shawa stated that at the last Finance Committee meeting,the Commissioners asked for a comparison of the financial summary for March 2020 and March 2021 which will be provided in the COVID-19 presentations. CFO Shawa noted that YTD Income Statement and fiscal year end projections will be updated on the April dashboard. Two of the five ratios are within benchmarks. Debt to Total Assets was a little high, as expected, due to bond issuance and the Bad Debt Ratio is high largely because the allowance was increased at the end of the year. Days Sales Outstanding is underperforming by one day. Commissioner Ross asked about the difference in the actual YTD net income and budgeted YTD net income. CFO Shawa responded that Mr. Paul Eory would elaborate on that in the COVID-19 presentation. Employee count YTD is 696 and the budgeted YTD is 732. In Payroll Data the Labor$/Hours Worked metric has remained in line with year prior. Overall YTD benefits costs are underbudget, but are medical claims are expected to increase with removal of COVID-19 restrictions. CFO Shawa introduced Finance and Planning Supervisor, Mr. Paul Eory, who presented an overview of COVID-19's impact on the BWL from March 2020 to March 2021. Mr. Eory reported on customer payments, Delta Energy Park construction, financial and operational levers, retail sales impact, and the financial status YTD through March 2021. Customer payments have reduced due to the COVID-19 pandemic. Delta Energy park has delayed commercial operation, resulting in FY 2021 income statement budget variances. Various financial and operational levers have provided BWL flexibility in responding to the COVID-19 pandemic. Retail sales have rebounded since initial stay at home orders but are still trending below weather adjusted expectation. Through March 2021, BWL's fiscal year 2021 income statement has largely been affected by COVID-19,through unpredicted high investment returns, slowed down spending, and the delay in Delta Energy park financing and capitalization. c.n I.,,:;,:, h,.r cowo-leo-npac:mn'<•z tr::.:,;I,:1 Pd CO1Od:pn Agemey M1Shut Ons6 GOIlecllon Aa my I INUI,[cewn,Nln v lNs'nNan. RCwmctl Shut QN Process f1,v4,Ys[l4 ean.arwn A4unry., �� RC Pllacemonlso,icy 1,Y»,[v.nm...,nalNe ba,na '" NSI 1,>,114JJY AICO[teEnr.S,4 ___ - I,U4,[teunln.n,arxJ eY,n[a SICVPcd Shul Off Pruu•+s3 nls. Nf1.i,J.4Yv donllnuctl COIICCf On Y 1113Clive ACeountslOery i43 a�u""-,n a,vw arvnrn c .4s n:aii� Y CGb•G')1rr>.+r.,on Go.,Erlclg/Park F izincal&Wmilional L e,cm - fS.'::yn,. ✓lie:.e.�:.r�,n ✓• h,map n ✓wr.w s:e�.an. wm...u.e..�m, ✓,, m.,..n Yan xvrv,WNv� OpNCwm� l narpa'n,n9 a,twnaale AIM O^D Cv., A�reaem,rl wNVYsa lnvMel ny vmly<I n ev mask ✓lx:r On<Y.N ✓lY0.4mpgOr4 mOrenla , F E a '. au,- azs�aa,,:«s�['x,� .H;°>kt t.t � ry,�Fa✓a :•w .crg�az _. RetaJ Sales Cbango from COVID-19-Electric .,.[etsY•I .e�,.1;uI ,.rn. .. .. , .. .SD'C4 vtlun'nos .,._ „ ...r._. ....... ........-....,..-.. .. ... ....... rc Yt .. av�v¢a�c jee '::- ."..,..•,,..,.,n•..,... ..•.............e..,... •ResxeniY doss Ms Seem 1'Y_• s�ps;enl rolsU[�. I� - 4:h4r.CryustC� CSP^.:1C0 Sa1Ci •Thosevends am Scenario ... ... •.. Nne^.w0 m 6mh cmmn>2,p I„n u.a.J rt.,,anm,p 1eNie entl rvJtor :iv7::w:tii4hl:As$n.._ Kay _ ..t -;',::.:.-.o.;l..•.; ,.caa::sw�Ji:...Na 7 =.-a.::':t(IfrresY":.•o'�f` ..-.s �GY'b i [ F,n,,wcal Status F isca!Y;;ar 2021-03 In Summary "-"' "'' """' •" •Cuslulner uaylnunls Lave reduced due to the COVID-19 Pandemic. •Del:n Energy Park has delayed comrnercial operation.resulling:n FY2021 income stalement budget variances. """" "'" "' •Various financial&operational levers have oraviderl B`NL flexibility in 'f•n°m w.::r,.. - responding to the COVID-19 Pandemic.. nv L.ma ...u,wr;_-.. u-..�„ ,...,I,•- .. - ... •Recall sates have rebounded since radial slay at home order but are still ,,,:,.., a. .,.. ., .,, s1-:,•,u.:., .I.....: Irend:ng below weather adjusted expectation. ,., - - ,,;.,,,.; ,,,,;,. - -y_,_ •Through March 2021,nur fiscal year 2D21 inconm statement has largely befnl �- - ^+ •- - - •- affected by COVID-19,through unpruc!imed high investment returns,slowed dorm spending.n 1d Vic de a n Della Energy Park financing and 'R+.. ..,... •,. mn..,r. .,.... ...-.,., .... laPllallZalwll. Yy Commissioner Ross asked about the supply chain disruption in the perspective of utilities and Delta Energy Park construction. GM Peffley responded that most of the supplies for Delta Energy Park have been received but the travel bans are affecting the subject matter experts who are in Sweden. The subject matter experts are communicating through laptops, which is slower but all three of the turbines have been run. The plant is scheduled to start running in early fall. CFO Shawa responded that there haven't been any issues to date with the supply chain but there are starting to be extended lead times for some parts which will be ordered ahead of time. Commissioner Thomas asked what was saved with employees working at home rather than in the office. GM Peffley responded that the information will be gathered and put together for an upcoming meeting. CFO Shawa responded that information can be provided at the next Finance Committee meeting. Retirement Plan Committee (RPQ Updates CFO Shawa stated there will be a standing agenda item for Retirement Plan Committee updates and any investment actions that have been taken since the last Finance Committee meeting. Administration actions will be presented at the next Human Resources Committee meeting. CFO Shawa reported the following investment activity updates: • VEBA Small/Mid-Cap Fund Manager Change of approximately$23.51VI and 10% of VEBA plan assets from Aristotle to Atlanta Capital • VEBA Rebalancing of$6.5M and 3% of portfolio from large cap equity to real assets, $3.5M has been completed already and $3M is expected to take place next quarter • DB Plan Distributions Commissioner Lenz asked from where the money comes if$3.5M million is generated and $51VI is paid out. CFO Shawa responded that both the DB and VEBA are fully funded and there won't be any shortfall. CFO Shawa introduced Accounting and Finance Manager, Mr. Scott Taylor and Ms. Dori Drayton, Senior Vice President at CapTrust, as the financial advisor for the DC, 401, and 457 Plans. Mr. Taylor reviewed the recommendations for the investment policy statements for the DC Plans. With the transition of the plans from Plante Moran Financial Advisors to CapTrust, restating and reorganizing changes are being made to these statements for the retirement plans. One of the benefits of transitioning to CapTrust is more robust reporting and monitoring capabilities of accounts. Commissioner Ross asked whetherthe Committee as an investment fiduciary is a delegation bythe Board. Ms. Drayton responded that there are general fiduciary duties for the governing body and in addition there are investment fiduciary responsibilities as defined in Public Act 314. Commissioner Ross also asked whether there is an adequate framework in the governance and delegation to the committee who provides the information to be reviewed. Ms. Drayton responded that there was adequate governance and flow of information. Commissioner Ross also asked what deviations are normal under the policy goals and objectives section. Ms. Drayton responded by stating that the investment policy statement says that an investment advisor will be utilized to serve the plan. She then said that if, for example, it was determined that instead of using an advisor, an internal team would be assigned to the role, that would create a technical deviation. This part of the policy would allow time to update the policy to reflect the desire for this change without resulting in a technical violation. Commissioner Ross asked what degree of detail in transparency will be provided and how it will be provided. CFO Shawa responded that the recommendation for a standing reoccurring agenda item will provide updates. In addition,the Retirement Plan Committee takes minutes at the meetings, the financial advisors provide advice and counsel, quarterly performance reporting of the plans, and a pension fund trustees meeting is held annually. Mr. Taylor added that there is an annual dashboard that is provided at the annual Trustees meeting, of which one page is dedicated to the 401 and 457 plans, which can be reviewed as to whether the information can be provided more frequently. Motion by Commissioner Ross, Seconded by Commissioner Price, to forward the Resolution for the Investment Policy Statements for the DC plans to the Pension Fund Trustees Meeting for consideration. Roll Call Vote: Yeas: Commissioners Lenz, Graham, Price, Ross Nays: None Action: Motion Carried. FY22 Operating Budget and FY22-27 Forecast Presentation GM Peffley remarked that the staff did an incredible job with minimal increases this year. This year's budget allows the continuation of transitioning to being the utility of the future, provides funding to 0&M for maintaining high quality of service, provides funding to replace obsolete systems, and paves the way to increase water main replacement from two miles a year to eight miles a year. More efficient use of the work force has been implemented and a double-digit rate advantage will be realized over the nearest competitor. CFO Shawa spoke about the FY 22 Operating Budget and FY 22-27 Forecast. Ms. Shawa reported on the strategic objectives, the key budget and forecast assumptions, volume history and forecast by utility, operating budget and forecast, capital budget and forecast and subsequent steps. BWUs prior Strategic Plan,adopted in 2e16,detailed the following goals and objectives: FY v°as Kev ACCOmoI shpLtll}jpCg1Y6; So"COmple[wn OflgO Cr 1ficetinn at REO Planl 6na:tgyf C.n.M Malnla'n1M pMmlal..bony n/tly BlvL Issued Se es>o>1 A&B bonds Alurs-oBW.'a;Rganger/wnsaM Ur+leyi[+latnn taui•e h.nd,nq Tlx• /�Fp IIB�I� Cap.ty Tetl at D,lta En<r Park eaaue ue+wee peneiplNt hmd•gane nsi+aea o+>aMsip,Jina men g gl' swnp,th[^u�rLu,cul drat W.[cgv Imp'e sad Captal 11ojec11 P-.,,,(CPT) giro:egy h,Ob/tcRve a:Pracuc<g°od financial ftewardship Adapled new 5lrateg.c%an r.rnpng fn nr X'M's;aPIN wvg.•r.nd,eW.se•ren[Ba'w••um Ml•Aw+le CentinueA Brmart tlealoyments a, rrnq[ampnsrtn, •Tm,smonlo Nation defo:OCPlanf n•),r«ra.a r•�'•• ...w—.a. n.r,.., Paused evtt ,shutoff,due to COM .c iq Pandem y •r .�-r.,v.,,aa,r,., •[anlinurA cyhrr secuhly,rsiiiency as MVMtanm ab>RaeVC�atwnd,al^Kfw nwiu[' •C nwweArolloand ennaiurments madein the org niiatbn8 pr 'q aal ma.uet iAgzg.ms nag.rtemant,perlorman[e anagement,an m E employee -n... ...a,...a a:.,.p>.rraaeawl•.w.r,•• enl procesua ))lexe ticat vwngs through prxenlm mtMt wah nevmN P'nn�•nfM unatnataM rcwnvn •Imple let p< 1 Psavmqq td,itle ntmmp:weratl cgmpelibvtnesi mspx+w epersrb^sormWeyrn enddetrrprtvlauslyDlalined rate Incream •••'••••*••+r .•,,,,,,,,,,,,,a•. •,..U...r.:.e atcwrmawr•rK.n,o.,e to ratr+sawng wgtree�.tt ar,ttAn XOA+.yel Jrwrrw.adw lr.as•n0•aw Orrw.a.nrvr>s. GM Peffley commented on the 90% completion of ISO Certification at REO Plant and stated it is the second ISO certification out of 2000+ utilities in the country. Looking forward,the aess•aoa5 Strategic Plan includes six key Rrategrcsthat focus on ourinancial resiliency: MaimaiIiyli tredR rating nvn is curremly ratec AA(gE'1 and Aaa(Ywdf i1 wi+h ytape eudooks Cucromari Community StrategYe nrnwY•.: v nrnmrdn+rmmrnsaM.gorul prnvwtgalM1ar rr..lr grwM:n arN •Gen rdle allav(ua:¢relarn On aitet)(ROA) sy^<ov t vAdrevale Raaur+swnial tv mvruVel u;en2s Op.rational peapianNBCon auslmpro ant Strategy snrrw.ayu: •^- •sn ••n^�i,su•lurm«i�nv:awetja1iNl lntl.d,rlry:e !� IM^t•ry aM•.svom;la sr.Vo•t..u.rlo•sa,;eawusi„a'aremerl llvl Ealxre An apaora:r RSA,eurmnt+n>n,a»,Isms+ S Mfan•unee.LCM w,:ni N e m. X Finandal5tralrgyslsr_P: RegW�[al[Wuont r[g,arederyd,Bvardof CvmmnPvn[rc Cm:naH:n ern+r wa Mtrs:nMure lnrr "andn[wecUmstrs IpevA,uon xn:I,nrMl Prllmv,MNf ai w»)p»TIpN_4aMa Finantia151ratrgy anr.,...>u: drid,caryrtaaonuiatY++mvq+ya,^ny arWrNs,;gstes, v/r�u yl>nninabrratF[tis Yrurt in f'r•»e f act«san0:•Iw+a curl rtlt •Enswe edrqua:e liquidity •KnanciN Svat°gy3Mr-�••r v: Bs+l rout be ode le aayturcntodgaUons .vu,tur vV>munnes aM aecla waenrn root eMmre BV/'_t s.[npt'tnenrat I..... ...... .......•„�v.r sea dsya Finantlel Strategy,n• .•I.,. .,,,,,,sr,sw. 1lrrtdy.rr and rope. r r,A d,wrutranen gspwtanrtNc a ',L„a '+.[.u:_sy;_ .a i'_wi'.al^r�l T�' � a'k "r; �``•ra�.i-2s—t:`�—Q..fs'LL. r1:2'A :. _ fi y - t '%ds IMF"+ �tt`a �• 7 X $ W. aw'.:2 .f• t im: rbslaii�'�f• Commissioner Ross asked whether the target rate of return on assets of 4.2%was an aspirational goal for the Board. CFO Shawa responded that priorto the beginning of the COVID-19 pandemic BWLwas on track to attain the 4.2% goal in 2024 and that it is a realistic and important goal for 2026. The 4.2% return on assets benefits customers with more reliable and quality service. GM Peffley added that the Finance Department provided all the numbers and his only concern was the competitiveness of rates and then balanced it with the capital work that would be done and the items on which he remarked at the beginning of this presentation. To ensure adequate Ipuidityr th<Board of Cammissioners adopsetl a Minimum[ash It—Pequnement PelirY rn tar!IB<tdation Ivor.-o5'oal T.uybelaurs 6—W."N".sitwll[rn.I resimmr,'ki•e+o[anvbxdy,.Pd qaa y T.nsninsurt cash"It"requ'r<m<+I n c<i01111d vsmg a,tk bled[Jcdalwn of - NefoPo'inglrY[atM1r<Vvaenrentr. TY Rrtn.t.kVy - v.rn.Mrn�,.Aran w: ;ry�anrey Dd . q rar4 qnn .tratry •� .u1rr Rarr fAa? par 4rr`a ]eht 5t+.<r F '>S arras FEarn'w PSy na NJ:9R ry ....Yaa•Ml Cayul:nyvve+m:Nt♦ tq 9•a Cantu q Factsta:h regy reman;smu'sped or"I latla•ana wormed to - [mu Cee-mm<tne turn mv.m<asA mserva.c11Lglnt ® .es—, 1 r.r... Tae cal[da:iun n eo19,eJ tuea<h o!sM1e sylh Ian rA�l trs ind ar1uMIY aid:Iran Coal P.,C awes +99'agatrd to drtarrmne she wertl tlwt.mmvor,m CeJ+rr+rrvr rpunrment C--svAe. 'Ina co,dun[ewtn t.is Pd,ry,Ue DoarC wrl<mur<[to . ae6erocoteP lW iVa�k•ttalrws rccas.me<tr the mnmrm uth r<te�e requuemrnlaasdned,n tl tl,.rr pdky . - - ..�wi.(l�k .+.d n-}.' -.Sb_er+JLY�`ri4.v- =dJyl:.G iMS.rF+Ll��1� e..iG"'.YaL—.J..[i F:.T•. •Eapecled operation of Oella Energy Park SePtembe']oas. Ent4son lS[loud May xox3 [Ir[[rt.Camwnat:en\blame 9fatrt'<wnwnptfon Vdume N 1are9iCp'an Is su tsauwl tccry pported by th.s budget 8 forecast. ,mew •Defined Benefit and Vd—a,y Post Employment BenefitslDR(YEBA) m+•r...r - -- rnw•stmem•<nuns A•<mr<ung la•grl -. � -;� a Totale""d,9ye,-rsb.rdgeseA a;7xo fine FV toll anA Attl nes In ach suueed ng yea nrough(Y xax6.f.r FY-so .,d1aunt IF, ;v Forthe tend yea mar w FYI'ratern[leasesha.ebeendefem<d Auem COVIU.r9.r rvr9team•Cen1u 11Rnydunrr Chakd Water�Ca,raympttanrrr Wmrrmamroplrcementsachi<ve A miles per year FYxo268 FY2017 Ifa.ttl) ydomrtM.ir,al Ret urn on_Guityto t h I city ba sed oncu....t t-year agree me nt ~ •" ^^'r! rzn e:P'-9 June xan .. Malor steam[ustamc'Contraa capres OCteb.......Forc[ast assum es Contractisrrne—datcurrentte.ms. -- a,n.aa....rr.rw.sn..nr,aa n,...[we..-aysa.r.r.a r.a.rm..+ary •••• ...,.....J,.t1.,r. _... n GM Peffley commented that the Erickson closure in May of 2023 will be two and a half years prior to what was previously stated as the cost of energy and the capacity market has changed. Exit strategies for employees are being worked on. GM Peffley commented on the sales forecast and stated that it will be achieved as BWL is adding additional customers. �.. r. 7 Commissioner Merrill asked what the average number was for the return on assets at the end of the fiscal year historically. CFO Shawa responded that 4.2% was the goal for this fiscal year, last year was 4.14%, and in 2015 and 2016 it was just above 2% and increased in 2017, 2018 and 2019. She added that additional information could be researched and provided. Commissioner Merrill asked for the reason that the target for the return on asset for 2022 was 2.6%when 4.2% has been achieved previously. Mr.Taylor responded that bringing the new plant online will be about$20M and will affect the return on assets. GM Peffley responded that there also be a rate hike. Commissioner Price commented that 4.2% was adopted as a goal by resolution four years ago and replaced an unachievable goal of 6.17%. Commissioner Jester asked if the cost of setting up on-bill financing and investments in electric vehicle infrastructure were included in the budget. GM Peffley responded that technology for on-bill financing will arrive in the fall and $400,000 is being worked on for charging stations. Commissioner Jester asked whether funds to be loaned would be BWL funds or third-party funds. CFO Shawa said that it hadn't been determined yet. GM Peffley added that Holland's on-bill financing that has been successfully implemented is being reviewed. Mr. Taylor reported on the capital portfolio budget and forecast. Commissioner Lenz asked about the increase in the amount in REO plant spending. GM Peffley responded that the gas turbines are being rebuilt due to age. Commissioner Lenz asked what determined whether the turbines would be rebuilt or replaced. GM Peffley responded that the rebuild refurbishes the turbines to like-new condition. pn.Mnb....wNb)MwEmm.paabbq.bA __ GM Peffley commented on the repetitive project of the replacing of two miles of pipe every year. There are 800 miles of pipe, which has a life of 100 years, and two miles a year was falling behind the lifespan of the pipe. The increase to eight miles a year will allow the replacing of the pipe within its lifespan. Mr. Peffley commented on the model for the projects that will be done and stated it will keep unnecessary exceedances from being requested and better prices can be attained. Commissioner Lenz asked if a presentation could be given in the future to demonstrate the difference between annual projects and planned projects and how the projects are monitored for project management efficiency. GM Peffley responded that could easily be done at a future meeting. Commissioner Lenz asked what percent of the design budget is vendor-based versus internal. Mr. Taylor responded that he would send the figures by email to Commissioner Lenz. Commissioner Ross and Commissioner Lenz commended GM Peffley, CFO Shawa and Mr. Taylor on the effort and presentation of the budget and forecast. CFO Shawa thanked the commissioners and said there was a team of 10 employees that worked on the budget and forecast. Motion by Commissioner Price, Seconded by Commissioner Ross, to forward the FY22 Operating Budget and FY22-27 Forecast Resolution to the full board for approval. Roll Call Vote: Yeas: Commissioners Lenz, Graham, Price, Ross Nays: None Action: Motion Carried. Internal Audit Status Report Internal Auditor, Mr. Wesley Lewis, presented the Internal Auditor Status Report. Audit Progress Report ' scn sun o"on,�u:I.a cPr..nu„TmE.n,.a. FY 2022 Risk Assessment Process Update - pl:p.I�a!ssrveun�:.nrPn-e�:::wuace I._,gg;gleati=mp..a.a.nip.hu:..e�o'wml mpw wa.nc.lotl rmm M,n.p.mml Eu.lnp M.rm.nE.Pnuwl. a ..nancc, }. re bw�P wim m.m n..la,.n Pl.c.. vnN L,.n,.., r r.rr.n.„.+, i. E. ,tiv.l Erl..onr.lrlp bPem...prec..u.m.I.r.tlP.ror.Pan. Tlrlaprpl<...wlllab.Eon.balm.mIEJA.y}E}l. nE lc. Frnm. .. .pr.11min.ry.uall plan well r IFLLCaKw. 1w MilMl l..Eb.ch mid—ll}Eal.Tni.will b.r.v-.ntl — w^l:.,u 3. I..Ills.o en wIN IM1•CIO Iow.rE lM.ntl pl MeY for lM1.Ir ~iS:.'w'_N1+.xxmrlln....+a�..+�bp 4o.v.+r.er.P.j...nr�....r n—...-.....n 6. IAvwlll pr.a.nl u�auErl plan to S.nlpr Man.g.nbm tlunng Ill....o w..Y n.n T...uwrc ...Ell 1pr tn.v rwbw.ntl l..Ee.ca. .. opvr.u.n.nr.w.. rlrwq T. wuill pr...nl Ib..utlit Pl.n la U.rinenc.Cerrvnrll..Ipr Ila can.IEerelion �t..n.r,.r..ar:v.Wv„e rue..er....e.r.^n.ln..r.r........v..,rrro t'u.v. anE.PWEval Euring n.July]o}1 m..11np. E. Tn.Ilnenc.Lemmill..well pna.nl In.au l Plena.Pen el lu r.porl le In. pOC Ipr r.cenaltl.r.11en.ntl.ppr.v.l tlurinp Ila Jury}Ell m..11lrp, Commissioner Lenz asked if there is an expected completion date for the audit that was delayed due to vendor issues. Mr. Lewis responded that the forecasted date is in the second week of June and if there are any changes he will keep the Commissioners informed. Other Chair Price stated that there will be a Fund Trustees meeting the same week as the Board meeting. The Pension Fund Trustees meeting will be held with the purpose of accepting the Investments Policy Statements for the DC Plans approved by the Board. Adjourn Chair David Lenz adjourned the meeting at 8:49 p.m. Respectfully submitted David Lenz, Chair Finance Committee Commissioner Mullen presented the Human Resources Committee Report: HUMAN RESOURCES COMMITTEE Meeting Minutes May 18, 2021 The Human Resources Committee of the Lansing Board of Water and Light (BWL) met via WebEx (BWL Headquarters-REO Town Depot located at 1201 S.Washington Ave., Lansing, MI) at 5:30 p.m. on Tuesday, May 18, 2021. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ecbb07lb695d2ff0afd75dc6l559be7e4 Event Number for Attendees: 132 8816463 Event Password: DFsAw7rNS22 Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 8816463 Human Resources (HR) Committee Chairperson Tony Mullen called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: Tony Mullen remotely, Lansing, MI (Member) DeShon Leek remotely, Lansing, MI (Member) Tracy Thomas remotely, Lansing, MI (Member) Sandra Zerkle remotely, Lansing, MI (Member) Stuart Goodrich remotely, Delhi Township, MI Larry Merrill remotely, Delta Township, MI David Price remotely, Lansing, MI Ken Ross remotely, Lansing, MI Absent: None The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Thomas, Seconded by Commissioner Leek, to approve the Human Resources Committee meeting minutes of March 16, 2021. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Retirement Plan Committee (RPC)Administrative Updates• Nationwide Transition General Manager Peffley introduced CFO Heather Shawa to present the Retirement Plan Committee(RPC) Administrative updates. CFO Shawa introduced CAPTRUST advisor, Ms. Dori Drayton, who was available to answer questions. CFO Shawa reported that the transition to Nationwide became effective on April 29, 2021. Nationwide held 12 virtual workshops to assist participants with the transition and a BWL account representative was reserved the first two weeks of May. There was an overwhelming response with positive feedback for both of these. Ms. Shawa reported that updates to the 457 Plan document and adoption agreements were made to ensure and clarify alignment with IRS Code requirements and that all plan documents and adoption agreements will be made accessible in an updated Trustee resource. Ms. Shawa concluded with an update that an official request for reimbursement from ICMA-RC for applicable expenses/fees related to the Voluntary Correction Program had been made. Commissioner Mullen asked if the reimbursements from ICMA have been completed or if there could be future disputes made. CFO Shawa responded that ICMA is required per agreement to reimburse and the full amount had been requested. Commissioner Zerkle asked whether participants will pay for both ICMA and Nationwide fees if the Roth IRA account that participants had with ICMA are not available with Nationwide. CFO Shawa responded that participants will pay the fee for the Roth IRA product as it is outside BWL's plan. Human Resources Executive Director, Ms. Lynnette Keller, clarified that there is a post-tax election Roth option that is sponsored by the BWL 457 Plan and a Roth IRA that is outside of the plan. Human Resources Department—A Year In Review GM Peffley gave the floor to Human Resources (HR) Executive Director, Ms. Lynnette Keller, to present the HR Department Year in Review. Ms. Keller reported alignment with HR Key Priorities to the Utility of the Future Vision and Strategic plan such that cultivating a generative safety culture; attracting, developing and retaining a highly skilled, diverse and culturally intelligent workforce; cultivating employee engagement that promotes a positive work environment, professional development, and career growth with emphasis on succession planning are the three main strategies in the strategic plan. Ms. Keller reported on the areas where HR contributed: some examples include recruiting and retention; safety and security; benefits and retirement; organizational development and training including ISO certification and the.Leadership Academy; organizational change management including the training of 25 new Prosci certified change practitioners; employee engagement; technology upgrades including implementing the Pacycor Recruiting and Onboarding Systems; performance management including deployment of the Performance Review Application tool; compensation management including reviewing and updating all non-bargaining position descriptions; diversity, equity and inclusion; and internal improvements. The key priorities shared align with the utility of the future vision, and the strategic priority of engagement and diversity. IAN HUn9on Q4101ale4s .,,�.,; � �� ;�:e.,:end�r_..�-,t•, Ilrnefits and �(/(��►�} 9 i� �ij1�4J ft!ire ment Mianamenc iran.r �4 EniV�oY"-"Evj:agemvnl Commissioner Thomas commented that Ms. Keller's presentation was informative and that the portion that was presented regarding equity, inclusion, recruiting and retention were explained well, but did have some questions or concerns regarding the lack of information in regard to diversity. Commissioner Thomas suggestions to include the Word diversity in the wheel (see graphic above)to emphasize the important of the great work that was presented in the strategic plan. Commissioner Zerkle requested definitions for some of the HR terminology, asked whether a quarterly or semi-annual report on the results of the diversity plans implemented would be provided, and what was being considered for employees as the COVID-19 mask restrictions have been lifted. GM Peffley responded that BWL is governed by MIOSHA and that employees who want to return to in-person work will start to return on May 24, 2021. The remainder of the employees will return in phases in July 2021. MIOSHA requirements are being reviewed to ensure that there is adherence to their guidelines. GM Peffley also responded that definitions for the HR terminology will be provided. Appointed Employee Development Process Human Resources Committee Chairperson Tony Mullen stated that this document is a skeleton of what it could be and that this was the beginning of developing a process for Board Appointed Employee's development process. Attending Commissioners engaged in dialogue, suggested language and word- smithed the proposed process document. Other None. Adiourn Chair Mullen adjourned the meeting at 6:59 p.m. Respectfully Submitted, Tony Mullen, Chair Human Resources Committee MANAGER'S RECOMMENDATIONS There were no General Manager recommendations. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. RESOLUTIONS Chair Price stated that a substitute resolution was emailed to the Commissioners which clarified discussion held at the COW meeting regarding the responsibility for the electric bill where an occupant resides at the same place as a customer with a delinquent account and the occupant wishes to put the account in their own name. RESOLUTION 2021-05-01 FY22 Rules and Regulations for Electric, Water, Steam and Chilled Water Utility Services Subject: Board of Commissioners Update of Fiscal Year 2022 amendments to the Rules and Regulations for Utility Services, Including Fees and Charges and a draft resolution for approval. Background: The Rules and Regulations set forth the terms and conditions of utility services and govern these issues: • General Provisions • Service Conditions • Use of Service • Metering • Application of Rates • Responsibility for Payment of Bills • Dispute and Hearing Procedure • Distribution System Extensions • Services • Fees and Charges • Compliance • Other individual Utility Issues BWL staff periodically review the Rules and Regulations to recommend changes designed to promote clarity and consistency, address change in practice or procedure, address new issues, and ensure that fees and charges are adequate to cover actual costs. Fiscal Year 2022 changes fall into three categories: (1) Substantive changes that may alter the meaning or effect of a rule; (2) Non-substantive changes designed to address grammar, clarity and consistency across utilities, but not to change the meaning, substance or effect of a rule; and (3) Fee and Charges increases to recover actual costs where they have increased since the last update in FY20. 1. SUBSTANTIVE CHANGES A. Across Utilities - Electric,Water, Steam and Chilled Water • Revision of Rule 2—General Provisions o 2.1.H—Added language that as a condition of service, the BWL must have a recorded easement on the Customer's Premises for access and installation, maintenance, removal, relocation of the electric distribution system and any other equipment reasonably related to the provision of service. • Revision of Rule 4.3.B, Customer Piping and Equipment o Revised to clarify that only when the BWL's planned or emergency work was not performed in accordance with industry standards will the BWL be responsible for repairs or restoration. • Revision of Rule 4.6 or 4.7, Disconnection of Service o Revised to clarify that a Demolition Service Request form must be signed by the property owner for service to be permanently disconnected for demolition. • Revision of Rule 7.1, Responsibility for Payment of Bills o Revised to indicate bills are mailed 21 days before the due date instead of 15 days. o Added language to clarify current and past practice that unpaid amounts incur a 5% late fee. o Added language to clarify that a new service request cannot be added until a delinquent account is paid in full. o Added language to clarify current and past practice that a family member of a deceased customer may place service in their name or the in the name of the Estate if a written request is made by the personal representative and supporting documentation is provided. o Added language to clarify current and past practice that when an occupant has lived with a residential Customer within the last 3 years, currently resides with the Customer, and the Customer has a delinquent account that remains unpaid, is not in dispute, and accrued during shared residency, the occupant is also considered responsible for the unpaid bill when seeking to put the delinquent account into their own name. B. Electric • Revision of Rule 1, Definitions o Revised definition of"Service Location" to clarify it is the point at which the BWL has agreed to deliver electric power to the Customer. • Revision of Rule 5.4, Multiple Occupancy Buildings o Added language that the BWL may impose a meter mislabel fee (new fee) if the building owner has not complied with the requirements of this Rule 5.4. • Revision of Rule 6.1, General,Application of Rates o For purposes of time-of-use rates, added language to identify the holidays the BWL recognizes for application of such rates. • Addition of Rule 7.5, Extended Outage Credit o Added language to address the extended outage credit currently called the Electric Catastrophic Storm Outage Credit which provides that Customers can receive a $25.00 credit for an electric outage of more than 120 consecutive hours when a catastrophic condition (results in an official state of emergency or results in an interruption for 10% or more of the BWL's customers) plus an additional credit of$5 per day thereafter until service is restored. (Resolution 2014-01-01).The credit will now be applicable to Customers with no past due balance who experience an electric outage solely attributable to BWL-owned equipment for 120 consecutive hours or more. Application must be made within 6 months of the first day of the outage. The credit of$5 per day after the initial 120 hours is being deleted. This revision to Rules and Regulations for Electric would supersede Resolution 2014-01-01. • Deletion of Rule 11.7.C, Commercial and Industrial Underground Services o Deleted because the BWL no longer installs secondary commercial services and language describing the charge is not needed. • Deletion of Rule 11.8.C, Multi-Dwelling Structure Services o Removed because the BWL no longer installs secondary commercial services and language describing the charge is not needed. • Revision of Rule 13.2, Authorized Attachments o Added language that the maximum number of tangent communication cables or fiber line attachments shall be 5 per pole. • Revision of Rule 14.1, General, Parallel Power Sources o Revision of Customer generating systems sizing to help with planning for the BWL's electric distribution system and future Rate changes that will align with systems up to 150 kW AC. • Addition of Rule 14.4, Operation o Added language that imposes a new requirement that Customer generating systems with an AC nameplate capacity of 20 kW or higher have a dedicated generation meter owned and maintained by the Customer, or the Customer must provide the BWL with a generation report within 24 hours of request by the BWL. C. Water • Revision of Rule 5.4, Multiple Occupancy Buildings o Added language that the BWL may impose a meter mislabel fee (new fee) if the building owner has not complied with the requirements of this Rule 5.4. • Revision of Rule 11.4.A, Domestic Water Service o Added language to correspond to new curb box fill fee which applies when the curb stop has been closed by the BWL and is subsequently opened by an unauthorized Person requiring the BWL to again close the curb stop and fill the curb box with soil to prevent its operation. • Revision of Rule 11.5.A, Fire Service o Revision to limit when a detector check by-pass meter will be installed, owned and maintained by the BWL. It will not be installed when the BWL has determined the by-pass meter is not warranted or is impractical. Such meters are often redundant because flow in a fire service is already monitored by the fire department. D. Chilled Water • Revision of Rule 4.3, Customer Piping and Equipment o Revision to specifically define the connection point of Customer Piping. o Revisions to clarify and define responsibilities of the Customer to install and maintain Customer Pumps and to install and maintain all connections to BWL equipment. o Revision to clarify how Customer Piping may be configured—as either a Direct Connection or an Indirect Connection subject to review and approval by the BWL. • Revision of Rule 4.5, Improper Use and Tampering o Added language to address the intentional disabling of Customer Pumps to defeat circulation, constituting a disruption to chilled water service which may result in disconnection and the imposition of reconnection and tampering fees. Shutdowns for maintenance and refurbishment of Customer Piping are permissible. • Revision of Rule 5.2, Sizing, Installation, and Ownership o Added language to clarify metering equipment will be installed within Customer Piping and Customer is responsible for all connections to metering equipment. • Addition of Rule 9, Customer Choice Program o Added language to align with the BWL authorizing customer choice contractors to install chilled water service piping and chilled water mains. Language is consistent with Rule 9 of Rules and Regulations for Water. • Revision of Rule 11.3.13 (formerly Rule 10.3.13), Chilled Water Service o Revision to specify the Customer will install the master isolation valves on Customer Piping at its expense and is responsible for ownership and maintenance. E. Steam No substantive revisions 2. NON-SUBSTANTIVE CHANGES A. Across Utilities- Electric, Water, Steam and Chilled Water • Revision of Rule 2, General Provisions 0 2.1.A— Revised language to include correct link to Rate Schedules and all contact information for Utility Services. 0 2.2.A- Revised language to clarify that all types of consumption and demand data collected for all utilities are included. • Revision of Rule 6.2, Resale o Revised language to clarify BWL must approve the resale of the utility service. • Revision of Rule 9 or 10, Easements o Added language consistent with new Rule 2.1H which permits the BWL to place other equipment on the Customer's premises for the provision of service. • Revision of Rule 9 or 10, Non-Standard Equipment o Added language to clarify that non-standard equipment the BWL elects to provide is subject to availability and lead times. B. Electric • Revision of Rule 1, Definitions o Revised definition of"Multi-Dwelling Structure" for consistency with definition of "Residence." • Revision of Rule 5.2, Installation and Ownership o Added language to clarify which metering enclosures the BWL will provide and which the Customer must provide. • Revision of Rule 5.7, Primary Rate Meter Installations o Added language to clarify primary rate metering equipment should be installed on the exterior of the building for communications capability. • Revision of Rule 6.8A, Cogeneration and Small Power Production Facility o Removed Rate references as the Rate numbers because they might change. • Revision of Rule 10.5, Refunds of Deposit (for Distribution Line Extensions) o Added language to clarify the BWL will not refund any portion of a deposit for a Distribution Line Extension attributable to revenue from Customers intended to receive service as part of the extension project. • Revision of Rule 11.7.A and Addition of Rule 11.7.6, Commercial and Industrial Underground Services o Revision to clarify who installs, owns and maintains underground secondary service conductors for commercial and industrial buildings. • Revision of Rule 11.7.F, Commercial and Industrial Underground Services o Revision to clarify cabinets and enclosures up to 3000 Amperes can be purchased from the BWL. • Addition of Rule 11.8.13, Multi-Dwelling Structure Services o Added language to be consistent with Rule 11.7.13. to clarify who installs, owns and maintains underground secondary service conductors for multi-dwelling structures. C. Water • Revision of Rule 4.3, Customer Piping and Equipment o Added language to clarify the Customer's responsibility to connect their plumbing to our Meter. D. Chilled Water • Revision of Rule 1, Definitions o Added definition of"Advanced Metering Infrastructure"to ensure consistency with other utility services. o Added definition of"Customer Pumps" to ensure consistency between the Rules and Regulations and the chilled water connection standards. o Added definition of"Direct Connection" to ensure consistency between the Rules and Regulations and the chilled water connection standards. o Added definition of "Indirect Connection"to ensure consistency between the Rules and Regulations and the chilled water connection standards. o Added definition of "Meter" to ensure consistency between the Rules and Regulations and the chilled water connection standards. o Revised definition of"Service Location" to be more accurate and to clarify it must be within 5 feet from the outside of the building. o Revised definition of Service Valves to clarify the Service Valves will be owned by the BWL but may not be installed by the BWL as per Rule 9, these valves may be installed by a customer choice contractor. • Revision of Rule 3.2, Availability of Service o Added language to describe the characteristics of chilled water service. • Revision of Rule 4.1, General, Use of Service o Added language to clarify what may be operated by personnel authorized by the BWL only. • Revision of Rule 10.5 (formerly Rule 9.5), Installation of Distribution System Extension o Added language to clarify the types of plans the Customers must provide for BWL review and approval to ensure a more thorough review. • Revision of Rule 11.3.A (formerly Rule 10.3.A), Chilled Water Service o Revision to clarify which valves can be operated by the BWL as there has been recent confusion on who has the right to operate valves, especially those located on the Customer's Premises. o Moved #5 to be under 11.3.D. • Revision of Rule 11.3.13 (formerly Rule 10.3.6), Chilled Water Service o Deletion of#2 due to redundancy and conflict with modified language specifying the connection point at within 5 feet from the outside of the building. • Revision of Rule 11.3.0 (formerly Rule 10.3.C), Chilled Water Service o Added language to clarify the Customer is not permitted to withdraw or introduce water, air or any other substance to the Chilled Water Distribution System and is required to notify the BWL of any situation which results in a water draw or introduction of foreign materials to the distribution system or of any chilled water leaks. • Revision of Rule 11.3.D (formerly Rule 10.3.D), Chilled Water Service o Moved language from 11.3.A and revised to clarify the Customer is responsible to ensure air and debris are not present within Customer Piping which is a Direct Connection and the BWL will not supply chilled water to Customer Piping until pipe cleaning has been successfully performed. E. Steam • Revision of Rule 1, Definitions o Added definition of"Advanced Metering Infrastructure" to ensure consistency with other utility services. 3. FEES AND CHARGES Charge Q.NAPfbn When Applied mo❑large Prepe,M FMchaage w<�-<.metre-<xe°�e.ee.re»I,r.rw�eRd.d No bren Imtan rt[ow.y Wia+F�s<edRttostne<viv 5;13rnmr<n A[Nr}f( mmertblurvkn .nvreduns..pa+k-since 55�11 P.Erro':[ w,lau.e-+g!nvro•�:MeD+n-&roger l.:,, S.5— K'Iree+I+e<nr'eGe^.I<Ife<!Mw0.: la.>aW FFF'D`fF b-d.tpan+Mleercedrle S35trD<ra'eerv< M[Imi+mpervg l.< [acM1atvrerce S1)5 5)Ss krtomntercYw+IM1 W+In AedM due to 4 rpu[<'n Rde V el rlc BHle+ Fa[F uc[cn<xevpb<irclm[c!t[:td pDN01[ASi $e5D SnO:towneons olbbr, Imedtrerce ke [+[M1acvrerce S])5 $355 krcombtergy rdtM1 W+In A'ry lime-inDer $155 YR rlolMlo eoserconl of btor, N alpole NNl:me-i ee'ASre qD NOT FAST Charge Desalpllon When Applied FY30 Char[. 7—t Z Ch.— X al the cM1arge for eilM1er side pl nreel it nil previouny pnenm. ter main wont fo l+ge every 5197/II Adiu,teebcoan I6' us m,lontipn eudto[°v,aM eSUS minimum,S I e/I1In erteu of 535/1to<e[e<,of AGus ed 1.rover cons 0a —t e l era saMeoulpmenl $I,gSD ldlnlmum,53D/Il in e,[en $3,300 M�Mmum,$35/It In excess du,of l f c rot labor, Curb Bo,tp Bull rag lsareel eetP zrerloral,°n co,t of ns eel rcsloralwn on ena,aM Ow n °or Ma sett X--n.-,e 139D 5330 AaNaeem[nv<r em of hbor. eeah aM eouipment °Ilabor, WaterxM<e,IBoard l-Aledl Ind°or Meier xl%'-With Spill In eaJpn $lgs Se55 m�ilterial+laM e9ulpmenc IC°nrK[lion fee appli—Nj calk orlm X' xt wiN Meter pl S'.." 58305 �Iln aeslaM epulcpmesmllabor, gabon OMtloor Meier orX'Mele.xl wlN Meter dt-Cusbmer CM1alce ...O 5195 Aeiurlee to[pvzr cons of l+ta r, am I labor onlYl .erlal,aM eyulpment l of eai,ting service to alkwlor,dil Oomestl[or s305 Scss etetl to corxr[o,u ollab°r, onYrvlce maAd,t dalr aed e9u1 pmem age ter selling meter onasdll,eMce alter lnilial 5195 Adjusted to[over cons of labor, allatbn stgD lxM[e Meier Pil ref-Crulpmer C.-Program(I.bpr°NVI S100 S3v5 ned l° vec'c-1 oll+bor, Wh,.re--d bV Curlomer L. IrclWine]'Curb B°anpMeter Plt 5110 S135 once to cover cost,Dilator, erlah aM eoulpmenl [e Dem°nu°" lee m b to analrcludlrrg l'Crxb eoa.lo-guilE',rg 53as 23bs IsaMe9uipmesnlla Wlmer ans rpct�on Charge 1Valer Mcer,'aMuntler 511/1rerch 11 533R hIt Net° ro ab° n°[[rr°en[e Dd;prme le[pKr[pm oname xrvlce Up 1 $2. 53i.S leruh arW eouiDmenl u of labor, 1 Xmces 5330 5335 ter41s eeu1P-1 g e-Chary Mlus sof labor, 1 X'xMcer raM Maledal' $1,r.I0 Isla saM e9Wpmenl raM Mal led loc Dilator, ces ep•159o0 5a1n5 era runnl gwarer order Nsbeen kruea wing—m Clurge reed to cover costs pllabor, and i'aM up 1plMun $ins 5365 ,aM eouipment Hydra rat flaw Pert1n1 en sled W eu°er 5365 23YD sleam[overcols°Ilab°r, oh.,.cs—hi FY20 Change - Proposed M2 Charge niml DID'ess CHILLED WATER FEES and CHARGES Charge Deserliption When Applied FY20 Charge Proposed FY22 Charge Added Customer Choice Program; Permit Application Initial ri by Contractor seekni;qui Of D NOT EXIST 542S For climmits.y.ithIlWo, (Customer Choice Pmgrlm) Added CustomerChoice Program; Annual Contractor's Oualf,""I Permit Fee Ali DID NOT EXIST $ISO For I miStenCy with Water On-litl main,a III Co Trii—All' For a protect with a Board esti-led constrection cost of 10%m,pecvon fee-Noo rs�ibbl, adrinnign'ron charge ON co"st the Forcentage charged based on ZFIIC;Ptld p"llill Costs Ad edCustamer Choice Program; ��,pr.jeCt,,t�"003rdeSti,atedCoMtIUCE�nCOSIgre�ter DIDNOIEXIST 5%inspection fee-reconcilable For rd so mistency with Water (Customer Cho ice Program) a d"Inl5tralro I chat File. The LgWL reserves the ight to adjust the percentage cha Filed with actual Inspection Cost$Licers ,ornpolon of the project The ch ffer—will be reimbursed or Wled to the Customer,eicept In cases where actual IsPeco-st'I"' inspect-lh,rgl. W—T-Fering i.E Each occurrence $275 IS285 I For cci with Water Interference Fee Each OCCUTIFEE, $275 1�285 For C.ml,t,,cy with Water STEAM FEES and CHARGES Charge Description When Applied FY20 Charge PFopDs;edFY22 lCharge Ead—ct""'i, $275 gS285 For consistency with Water Interference Fee Urn leturin— $275 $285 For consistency with Water When Customer requested meter calibration check is With!, $195 $205 For co nsistencY with Wate r Mete,Calibration Charge plus or minus 2%accuracy 4' DRAFT RESOLUITON APPROVING FY22 RULES& REGULATIONS RESOLVED, 1hntF\sca|Year2U21-2O2IRu|esandRegu|atinnsforE|ectrc,\Nate� StearnandCh|Ued t dbv K4ana�ernentnnK�ay11 2OZ1 tobeeffect\ve July 1, ZOZ1. VVaterServicesbeapprnvedospresen e -. , , Motion by Commissioner Mullen, Seconded by Commissioner Lenz, to accept the substitute Resolution for the Fiscal Year 2021-2022 Electric, Water, Steam and Chilled Water Services Rules and Regulations as the official Resolution for the FY2021-2022 Electric, Water, Steam, Chilled Water Services Rules and Regulations, to be effective July 1, 2001. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Motion by Commissioner Ross, Seconded by Commissioner Mullen to approve the substitute Resolution for the Fiscal Year 2021-2022 Electric, Water, Steam and Chilled Water Services Rules and Regulations as presented, to be effective July 1, 2021. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. RESOLUTION 2021-05-02 Revised Investment Policy Statements of the DC Plans WHEREAS, the Lansing Board of Water& Light (the "Sponsor") sponsors the Lansing Board of Water and Light Defined Contribution Plan and Trust 1; Lansing Board of Water and Light Defined Contribution Plan and Trust 2; and Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust (the "DC Plans"); and WHEREAS, the Retirement Plan Committee, established by the Sponsor and delegated certain duties by the Trustees related to the investment of the DC Plans' assets in November 2018; and WHEREAS, the Retirement Plan Committee also periodically reviews the DC Plans' Investment Policy Statements ("IPSs"), and, as the result of its most recent review, recommends revisions to the Plans' IPSs; and WHEREAS, the Retirement Plan Committee along with the General Manager recommends the Sponsor adopt the revisions which reflect these recommendations in the attached Lansing Board of Water and Light Defined Contribution Plan and Trust 1 Investment Policy Statement; Lansing Board of Water and Light Defined Contribution Plan and Trust 2 Investment Policy Statement; and Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust Investment Policy Statement; and WHEREAS, the Sponsor wants to adopt the revisions reflected in the attached Lansing Board of Water and Light Defined Contribution Plan and Trust 1 Investment Policy Statement; Lansing Board of Water and Light Defined Contribution Plan and Trust 2 Investment Policy Statement; and Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust Investment Policy Statement; THEREFORE, it is: RESOLVED, that, after its review, and based on the recommendation from the Retirement Plan Committee along with the General Manager, the Sponsor adopts and approves the attached Lansing Board of Water and Light Defined Contribution Plan and Trust 1 Investment Policy Statement; Lansing Board of Water and Light Defined Contribution Plan and Trust 2 Investment Policy Statement; and Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust Investment Policy Statement. Motion by Commissioner Thomas, Seconded by Commissioner Lenz, to approve the Resolution for the Investment Policy Statements of the DC Plans. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. RESOLUTION 2021-05-03 Fiscal Year 2022-2027 Budget and Forecast RESOLVED, that the Annual Operating and Capital Budget covering Fiscal Year 2022 is hereby approved as presented; and RESOLVED, that the Operating and Capital Forecast for the Fiscal Years 2023-2027 is hereby accepted as presented; and FURTHER RESOLVED, that the Corporate Secretary be directed to make the appropriate filings with the Lansing City Clerk's office in accordance with the Lansing City Charter regarding the above actions. -------------------- Staff Comments: Staff recommends an operating and maintenance budget of$340.2M and a capital budget of$118.8M for Fiscal Year 2022. The Operating and Capital Forecast for Fiscal Years 2023-2027 includes potential rate increases in Fiscal Years 2023-2027.The potential rate increases are for forecast purposes only and have not been approved through a public rate hearing process. The forecast rate increases are subject to revision and, in any case, prior to implementation, must be subject to the BWL's formal rate setting process as per Lansing City Charter, Section 5-205 which refers to the BWL's authority to set just and reasonable rates and defines the public hearing process. In accordance with the provisions of the Lansing City Charter, Article 5, Chapter 2, Section 5-203.5 and Section 5-203.6, staff recommends the Finance Committee approve the budget and forecast for presentation and adoption by the Board at its May 25, 2021 board meeting. Motion by Commissioner Lenz, Seconded by Commissioner Graham, to approve the Resolution for the Fiscal Year 2022-2027 Budget and Forecast and direct the Corporate Secretary to make the appropriate filings with the Lansing City Clerk's office in accordance with the Lansing City Charter. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. MANAGER'S REMARKS GM Peffley reported the following: 1. The Delta Energy Plant generated its first megawatt of electricity in the morning of Tuesday, May 25, 2021. Unit one ran for six hours, unit two will run Wednesday, May 26, and unit three will run Thursday, May 27. The units need to operational to be declared commercial but will only be available for emergency use during the summer. 2. The CIS Payment System will go live over the Memorial Day weekend. New billing statements will be sent out, a new portal with a pay now feature, plus a lot of things customer requested will be available. Commissioner Leek asked if the completion date of Delta Energy Park would be at the end of summer or in the fall. GM Peff ley replied that October 1, 2021 is the scheduled completion date with 24/7 operation for the three units and an allocation time of one year for debugging. COMMISSIONERS' REMARKS There were no Commissioners' remarks. EXCUSED ABSENCE Motion by Commissioner Thomas, Seconded by Commissioner Graham, to excuse Commissioner Goodrich from tonight's meeting. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. PUBLIC COMMENTS There were no public comments. ADJOURNMENT Chair Price adjourned the meeting at 5:54 p.m. M.Denise Griffin,Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk 05-26-21 Approved by the Board of Commissioners: 07-27-21 Official Minutes filed(electronically)with Lansing City Clerk 8-3-21 Approved by the Board of commissioners 05-25-21 Hometown People.Hometown Power: MINUTES OF THE BOARD OF COMMISSIONERS MEETING LANSING BOARD OF WATER AND LIGHT March 23, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Regular Board of Commissioners meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Tuesday, March 23, 2021. This meeting was publicly noticed for 5:30 p.m. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ee6377d6a2307cb37ed0eb7b417d37375 Event Number for Attendees: 132 087 2728 Event Password: 7y5kGCBve5i Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 087 2728 Chairperson David Price called the meeting to order at 5:30 p.m. The Corporate Secretary, M. Denise Griffin, called the roll. The following Commissioners were present via audio/video: Chairperson David Price remotely, Lansing, MI Stuart Goodrich remotely, Holt, MI (arrived @ 5: 50 p.m.) Beth Graham remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tony Mullen remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI Ken Ross remotely, Charlotte County, Florida Sandra Zerkle remotely, Lansing, MI Absent: None Corporate Secretary Griffin declared a quorum. Chair Price led the Pledge of Allegiance. APPROVAL OF MINUTES Motion by Commissioner Thomas, Seconded by Commissioner Mullen, to approve the Regular Board Meeting minutes of January 26, 2021 and the Special Board Meeting minutes of March 16, 2021. Roll Call Vote: eshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Yeas: Commissioners David Price, Beth Graham, D Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. PUBLIC COMMENTS There were no public comments. COMMUNICATIONS There were no communications. COMMITTEE REPORTS Commissioner Mullen presented the Human Resources Committee Report: HUMAN RESOURCES COMMITTEE Meeting Minutes February 16, 2021 The Human Resources Committee of the Lansing Board of Water and Light (BWL) met via WebEx (BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI) at 5:30 p.m. on Tuesday, February 16, 2021. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=eee4960e38d5408d2864c3c44a1306f8f Event Number for Attendees: 132 164 4144 Event Password: jKyaAjP7g82 Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 164 4144 Human Resources (HR) Committee Chairperson Tony Mullen called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: Tony Mullen remotely, Lansing, MI Deshon Leek remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI Beth Graham remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI David Price remotely, Lansing, MI Ken Ross remotely, Charlotte County, FL David Lenz remotely, Lansing, MI Stuart Goodrich remotely, Holt, MI (arrived at 6:03pm) Absent: None The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Thomas, Seconded by Commissioner Zerkle, to approve the Human Resources Committee meeting minutes of November 10, 2020. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Mid-Year Personnel Evaluation—Charter Appointed Employees HR Committee Chair Mullen opened the floor for the charter appointed employees' mid-year personnel evaluations. Chair Mullen suggested conducting a mid-year discussion every year and requested that it be discussed at the February 25, 2021 Executive Committee meeting. Corporate Secretary Corporate Secretary M. Denise Griffin requested a closed session via MS Teams for the purpose of receiving her contractual mid-year personnel evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). Motion by Commissioner Thomas, Seconded by Commissioner Zerkle, to enter into closed session via MS Teams to discuss the contractual mid-year personnel evaluation of Corporate Secretary M. Denise Griffin. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried The Human Resources Committee went into a MS Teams closed session at 5:35 p.m. Motion by Commissioner Zerkle, Seconded by Commissioner Leek, to reconvene into open session via WebEx. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to WebEx open session at 5:59 p.m. Motion by Commissioner Leek, Seconded by Commissioner Zerkle to adjust the salary of the Corporate Secretary to align her salary to an equitable and appropriate pay rate at the Director II level. Commissioner Mullen noted there were two recommendations upon approval of the salary adjustment: the first recommendation was that the adjustment be given in two parts -the first half of the adjustment be given right away and the second half in June 2021; the second recommendation was that the full salary adjustment be given right away. Commissioner Zerkle recommended that the Chair of the Board, the Chair of the HR Committee and the Corporate Secretary participate in a discussion and bring back a proposal. Commissioner Price commented that the dollar amount had already been suggested. Commissioner Mullen asked the Corporate Secretary if she required further discussion and the Corporate Secretary replied in agreement with Commissioner Price that the proposal was acceptable. Commissioner Price requested an amendment to the motion to state the salary adjustment amount and Chair Mullen requested that the amendment include that the adjustment be given in two parts, before the next board meeting and in June 2021. Motion by Commissioner Leek, Seconded by Commissioner Zerkle to adjust the salary of the Corporate Secretary to align her salary to an equitable and appropriate pay rate of the Director II level top salary, with an increase in salary to be given in two parts, the first increase to be given before the next Board meeting and second part of the increase to be given in June 2021 Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. General Manager General Manager Richard Peffley requested a MS Teams closed session for the purpose of receiving his contractual mid-year personnel evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). Motion by Commissioner Leek, Seconded by Commissioner Zerkle, to enter into a MS Teams closed session to discuss the contractual mid-year personnel evaluation of General Manager, Richard Peffley. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee went into a MS Teams closed session at 6:08 p.m. Motion by Commissioner Leek, Seconded by Commissioner Mullen, to reconvene into WebEx open session. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to WebEx open session at 6:15 p.m. Chair Mullen stated that it was brought to his attention that GM Peffley was not receiving the full employer contribution to his 401k retirement plan for the last couple of years. The recent voluntary correction program issued for the retirement plans corrected GM Peffley's 401k retirement plan. To avoid further shortfalls GM Peffley will be added to the small 401a plan for appointed employees. Commissioner Leek asked how the error was discovered. GM Peffley replied that the deductions and contributions allowed in the 401k plan which has a cap, along with salary increases,was reducing his total compensation. The whole percentage amount of his salary that he selected was not being placed in the 401k plan due to the cap. The contributions can be placed in the small 401a plan which doesn't have the same limits. Motion by Chair Mullen for the HR Committee make a change to GM Peffley's employment contract to add him to the small 401a plan. Chair Mullen Removed his motion from the floor and will request from BWL General Counsel Mark Matus a memorandum explaining the 401k and 401a plan or to present at the next meeting. Mr. Matus will also send information to the Board prior to the next HR meeting. Commissioner Thomas inquired whether the shortfall had been corrected for the years 2018-2021. Chair Mullen replied that the years 2018-2020 have been corrected, but for 2021 the request is to add GM Peffley to the 401a plan. Commissioner Zerkle commented that the Board members are the pension overseers. Chair Mullen replied that the Board delegated authority to the General Manager who delegated authority to the Retirement Plan Committee for all the retirement plans except the small 401a. Commissioner Lenz asked if this was discovered during the issues related to the VEBA funding from a couple months ago. Chair Mullen replied that GM Peffley has been aware of the issue and just brought it forward. Commissioner Price added for further explanation that there is a structural problem with the 401k with a cap that limits the amount of contribution, and the dollar amount of the percentage of salary that GM Peffley is deducting to contribute exceeds the cap on the 401k. Commissioner Lenz asked whether the 401k plan contribution n percentage since theee s atcap s Chair more added retroactively than what the plan allows for, and replied he would request that information from Mr. Matus as well. Internal Auditor ams closed session for the purpose of receiving his Internal Auditor, Wesley Lewis, requested a MS Te contractual mid-year personnel evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). ed by Commissioner Leek, to enter into a MS Teams closed Motion by Commissioner Zerkle, Second session to discuss the contractual mid-year personnel evaluation of Internal Auditor, Wesley Lewis. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee went into MS Teams closed session at 6:38 p.m. Motion by Commissioner Zerkle, Seconded by Commissioner Thomas, to reconvene into WebEx open session. Roll Call Vote: hon Leek,Tracy Thomas, and Sandra Zerkle. Yeas: Commissioners Tony Mullen, Des Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to WebEx open session at 7:53 p.m. Chair Mullen stated that Internal Auditor Wesley Lewis requested to return to open session. Chair Mullen offered three suggestions in consideration of Mr. Lewis' future employment. Commissioner Zerkle requested, that before a decision is made, the Executive Committee put the wis and procedural items together that egned concepncoveontheetween r.relat'onshipe between Board. the Internal Auditor and Commissioner Thomas expressed Management. xecutive mmittee Motion by Commissioner Zerkle, Seconded by ooethelr as a process for the three ssiner Leek, to refer to eemployees no order to the matter of putting procedural information g help the Board and employees when situations arise. Roll Call Vote: Yeas: Commissioners Deshon Leek, Sandra Zerkle. Nays: Commissioners Tony Mullen,Tracy Thomas Action: Motion Fails. rding possible steps that could be taken on how to deal with the There was continued discussion rega at there be a HR committee meeting on February 23, 2021 to discuss current situation. It was suggested th the continued employment of the current Internal Auditor. (The proposed meeting was not officially noticed, and never occurred.) Commissioner Lenz commented that there is a different understanding of what the Internal Auditor, Commissioners and Management think the audit charter says, and that is creating insecurities and non- cooperation by all involved. After further discussion, it was suggested that any recommendations on how to proceed with this matter be emailed to HR Chair Mullen before the next committee meeting. Other None. Adjourn Chair Mullen adjourned the meeting at 8:20 p.m. Respectfully Submitted, Tony Mullen, Chair Human Resources Committee Chairperson Price presented the Executive Committee Report: EXECUTIVE COMMITTEE Meeting Minutes February 25, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic, the Executive Committee meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Thursday, February 25, 2021. Event Address for Attendees: https://lbwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=e4f99152a7a98ddbf28e4417f8f25e2ac Event Number for Attendees: 132 560 7332Event password: dHvnSTK4Z54 Audio conference: United States Toll +1-408-418-9388 Access code: 132 560 7332 Executive Committee Chair David Price called the February 25, 2021 Executive Committee meeting to order at 5:30 p.m. Corporate Secretary Griffin took the roll call to acknowledge attendance. The following Commissioners were present via audio/video: David Price remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI (Board Chairperson) (Vice Chairperson) Sandra Zerkle remotely, Lansing, MI Anthony Mullen remotely, Lansing, MI (Past Chairperson) (Member) Beth Graham remotely, Lansing, MI Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI (arrived @ 6:27 p.m.) I Ken Ross remotely, Charlotte County, FL Stuart Goodrich remotely, Holt, MI (arrived @5:42 p.m.) Larry Merrill remotely, Delta Township, MI Absent: None. The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Zerkle, Seconded by Commissioner Thomas, to approve the Executive Committee meeting minutes of December 17, 2020. Roll Call Vote: Yeas: Commissioners David Price, Anthony Mullen, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Personnel Issue Chair Price stated that an attorney-client privileged memorandum has been provided to the Executive Committee and it is appropriate to go into Closed Session for the purpose of reviewing the contents of the attorney-client privileged memorandum as permitted by the Open Meetings Act, specifically MCL 15.268(h) and MCL 15.243(g). Motion by Commissioner Thomas, Seconded by Commissioner Zerkle, to go into Closed Session for the purpose of reviewing the contents of the attorney-client privileged memorandum as permitted by the Open Meetings Act, specifically MCL 15.268(h) and MCL 15.243(g). Roll Call Vote: Yeas: Commissioners David Price, Anthony Mullen, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The following individuals were invited into the closed session: Executive Committee and other Commissioners, BWL General Counsel Mark Matus, BWL Corporate Secretary M. Denise Griffin, and Miller Canfield Chief Diversity Officer, Michelle Crockett. The Special Committee of the Whole Meeting went into closed session at 5:34 p.m. Motion by Commissioner Mullen, Seconded by Commissioner Thomas to return to open session. Roll Call Vote: Yeas: Commissioners David Price, Anthony Mullen, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Special Committee of the Whole Meeting reconvened to open session at 6:29 p.m. Board Self-Evaluation Review Chair Price reported that the Board is doing well in most categories and briefly reviewed the results. The Executive Committee would like to continue the discussion on Governance policy, how committees are structured, how committees are attended, and how training will be structured. Other There was no other business. Excused Absence None. Adiourn Chairperson Price adjourned the meeting adjourned at 6:35 p.m. Respectfully submitted, David Price, Chair Executive Committee Commissioner Tracy Thomas presented the Committee of the Whole Report: COMMITTEE OF THE WHOLE Meeting Minutes March 9, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Committee of the Whole (COW) meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI, on Tuesday, March 9, 2021. Event Address for Attendees: https://lbwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=eb4523814816b78ld6e68fc662d442021 Event Number for Attendees: 132 820 5250 Event password: ugPEpxWT833 Audio conference: United States Toll +1-408-418-9388 Access code: 132 820 5250 Committee of the Whole Chair Tracy Thomas called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: (COW Chairperson)Tracy Thomas remotely, Lansing, MI Stuart Goodrich remotely, Delhi Township, MI Douglas Jester remotely, East Lansing, MI (@5:54 P.M.) Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tony Mullen remotely, Lansing, MI David Price remotely, Lansing, MI Ken Ross remotely Charlotte County, Florida Sandra Zerkle remotely, Lansing, MI Absent: Commissioner Beth Graham The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Price, Seconded by Commissioner Zerkle, to approve the Committee of the Whole meeting minutes of January 12, 2021. A roll call vote was taken: Yeas: Commissioners Thomas, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Diversity, Equity & Inclusion (DEI) Program Update General Manager Peffley introduced Executive Assistant Ms. Smiljana Williams who introduced the Diversity, Equity & Inclusion (DEI)Committee: Ms. Marie Mireles, BWL Associate Attorney; Mr. Malcomb Hardy, BWL Utility Designer; Mr.Jeff Schwarz, Purchasing & Warehouse Department Supervisor; Mr. Alex Newman, Project Engineering Department Project Manager; and DEI Executive Sponsor, MS. Brandie Ekren, Strategic Planning & Development Executive Director. Ms. Williams provided information on the purpose and commitment of the DEI program to be an inclusive environment where all employees are respected and valued; where there are equal opportunities to develop, advance and be heard; where there is equitable treatment and elimination of discrimination in all forms and at all organizational levels; where the fundamental value and dignity of all people is acknowledged; and where an environment is created and maintained that respects diverse traditions, heritages,and experiences. Ms. Mireles provided information on the strategic plan initiative which included strategy and education, marketing and communication, plus measuring success and accountability. The strategy and education focus is on developing tactics that accomplish goals of the strategic plan and developing foundational and educational tactics. Mr. Malcomb Hardy provided information on marketing and communication which included awareness and cultural sensitivity, celebrating diversity and inclusion, and encouraging dialogue, and how these goals are accomplished. Mr.Jeff Schwarz provided information on measuring success and accountability which included developing a baseline assessment for initiative maturity, benchmarking and goal setting, defining and measuring success based on surveys and points of contacts, ensuring alignment with the corporate strategic plan and balanced scorecard, and providing feedback and insight to support a diverse, equitable and inclusive environment. Mr.Alex Newman provided information on the Employee Resource Groups (ERGS) which champion efforts for governing instruments; support workforce engagement, inclusion and diversity by working to improve corporate culture, to enhance employee retention, and to foster employee connectivity; and give valuable insight to internal focus groups. Ms. Brandie Ekren provided an update for the path ahead for the DEI Initiative. W Initiative's Purpose and Commitment Puryose 5upporl the BWL's m antl valuer by promoting shared,aulhenllc ralun of Ineluslon, coolly,respect xnd undenlanding of lMse he rmrF Mlh lhrouglwul our oryaCiiallCn antl oily.TMrel Crc,al the B W L ve MV Yeas all people MIA dignity and Irlrness first.We Mue„we averse opmlon:ana..orlair,.:and,.e.nn meet ppoyN Mkre lney are on melt ameralov ane mcwalpn lw,rnev. fit-1-environment..lore all ernyWy.•es are rape dantl valued; c ECwI opparWnily so devcl,tl,advaMc antl be heard. ECuiUble treatment antl ellminallon of discriminalian m all lU forms,al all organisational IeveL•. AcknoMedge and honor the furMamenlal value ar:d dlgnlly of all faetiplu,IrlcludWg our Amer antl ttlese MIh vrtlom vm do business. Crcaling and maintaining an enrironmenl lhaa respecU diverse lradl,o heritages and caperieriras. i.. Commissioner Price suggested that Corporate Counsel begin the process to provide training in Diversity, Equity and Inclusion for the BWL Board. Commissioner Zerkle asked if there was numerical data that could be provided from the DEI report. Ms. Ekren responded that the DEI Committee is in the process of developing the report and is working with HR Executive Director Ms. Lynette Keller. Commissioner Zerkle also asked if the ways that outreach was conducted would be included in the report. Ms. Ekren responded that community outreach is a measurable goal that will be included in the report. GM Peffley added that outreach is tracked and developed, and a hiring practice report was furnished to the DEI committee. Corporate Sustainability& Climate Response— Resolution Executive Director of Strategic Planning, Ms. Brandie Ekren, introduced Ms. Lori Myott, Manager of Compliance and Environmental Services; Ms. Natalie Mooney, Environmental Stewardship Administrator; and Mr. George Stojic, former Executive Director of Strategic Planning and Development. Ms. Ekren reviewed the Corporate Sustainability & Climate Response presentation as it relates to short- and long- term planning. Such short- and long-term planning is supported by 3 key pillars: economic growth, environmental stewardship and social development. SUSTAINABILITY=CORPORATE SUSTAINABILITY Corporate Sustainability Corporate.Sustai nabihty focuses on long-term value to both internal and external stakeholders whilr.making shart-term decisions._ Ecanomlc Growth '•,p EYe nn new S sooa �t EY,:on buts st Prac[•tesrm e�Ipnuon of enho f/n atrnd , nw Eye un est,`bl.shae pantic,th.'t ss b sincssa twniet nc ideas and tires that I Jnvr Practices that Pou •'ew—mental Nat tYPiuY s• dove futum Ialt—f shot tt•nn p,.Wbleand ruundafion for the 5°clal .r� Stewardship ol:ler l�vrs wch as ustalnable med—,,d.ng De IOPment •�- .sat— g,uwth. term lcor .Pcratlpnal business N the nxessnin+. ruarel. M Y p s. M ott spoke about the next major steps for climate response and carbon an�u�neutrality: c f tiim year ng and publishing an annual report; tracking and sharing progress with the employees p to year to create a culture in which decisions are evaluated based on a Irty balas ance of fiten i conmental, rs economic and social factors; and moving towards great u community and employees without compromising safety, affordability or reliability. the Ms. Ekren stated that the desired outcomes before Dainabbtr 2021 are to report for July 2022epublicatiooraby Sustainability program, by developing an annual su Y b formalizing the Climate Response Strategy which executing the Strategic Plan with progress tracking developing a reliminary Carbon Neutrality Plan that addresses desired program outcomes and tactics;by provide an update in Fall of 2021. Ms. Ekren is intended to be enhanced as time progresses; and to pty requested replacement of the current 2013 environmental stewardship w iThe proposed reisiolutionlfo malizes ution with a Corporate Sustainability resolution that includes a climate BWL's commitment for carbon neutrality and includes BWL's orateSustainability;mission, vat es; how of a BWL sting measures, monitors and determines success; emphasis on popportunities for enhancement environmental stewardship and sire to beility the policy til utility of the futureidentification of given climate change and the Commissioner Zerkle asked whether this resolution refers � s. Ms. Ekren responded that this o ric ate eternges when new meters have e is and creating space for electric vehicles and elect included in the climate response section. Motion by Commissioner Price, Seconded by Commissione��for conseek,to ideratone Resolution for the 2021 Corporate Sustainability & Climate Response to the full Boa Commissioner Ross offered amendments that he feels would work towards having a portfolio with complete renewability. First amendment, where it states in the resolution thatT�heBVW�wilpro°de carbononeutralrAND Commissioner Ross requested to amend the language to FURTHER EVENTUALLY TOTALLY RENEWABLE, products" and to add prior to the last paragraph,ortf"FUolio when RESOLVED, the BWL sets a long term goal of achieving a totally renewable energy p economically and technologically feasible. THER Second amendment, to replace the addition prior to the last paragraph TERM GOAL OF ACHIEVING RESOLVED, ACHIEVING ATOTALLY ACHIEVING CARBON NEUTRALITY, THE BWL SETS A LONG- RENEWABLE ENERGY PORTFOLIO WHEN ECONOMICALLY AND TECHONOLOGICALLY FEASIBLE, IN A SAFE, RELIABLE AND AFFORDABLE MANNER." Commissioner Jester spoke to recommend the adoption of the amendment and noted the difference between achieving carbon neutrality and achieving a totally renewable energy portfolio. Commissioner Jester stated that carbon neutrality is a balance of offsets with carbon emissions to achieve net zero carbon emissions, and a totally renewable energy portfolio consists of only renewable energy resources. Commissioner Mullen spoke to wait on the second amendment as complete renewable energy is not feasible for some people. Commissioner Thomas added that the aspiration is for economical utilities. Commissioner Price asked if the long-term goal was to have net zero carbon emissions or a totally renewable energy portfolio. GM Peffley discussed whether complete renewable energy was feasible for every customer. Commissioner Lenz added that when moving toward renewables with current technology, energy needs to be converted from outside of the Lansing area as Lansing doesn't have enough wind generation ability. He asked if this changed BWL's business model and does it turn BWL into more of a power distributor rather than a power generator. GM Peffley replied that energy in the form of Returned Energy Credits (REC's) are purchased from outside sources currently and that BWL will remain a power generator. GM Peffley added that there will always be a backup power source when BWL has enough of a renewable energy portfolio. Ms. Ekren added that the business model will be impacted which is part of the reason for the corporate sustainability plan. Mr. George Stojic stated that the goal to fight climate change includes cost effectiveness, reducing carbon emissions to net zero, and to use every tool to achieve the goal. Commissioner Price stated that he would vote no to the amendments for complete carbon neutrality as that isn't the end goal. He stated that the end goal is zero carbon emissions and not achieving 100% renewable energy. Commissioner Jester responded in agreement to Commissioner Lenz' comment on a need for local renewable energy sources to add more reliability to BWL customers. Commissioner Jester stated that there is a need for energy storage for generation and distribution as a power source as other power sources such as natural gas has not been totally reliable. GM Peffley agreed with Commissioner Jester that relying 100% on renewable energy/natural gas is not the end goal. Commissioner Price asked for a move on the motion for the Amendments. There was no support for the amendments and the motion died. A roll call vote was taken on the Resolution as originally presented: Yeas: Commissioners Thomas, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Other Motion by Commissioner Price, Seconded by Commissioner Ross for an excused absence for Commissioner Graham. A roll call vote was taken on the original motion: Yeas: Commissioners Thomas, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Adjourn Commissioner Thomas adjourned the meeting at 7:25 p.m. Respectfully Submitted Tracy Thomas, Chairperson Committee of the Whole Commissioner David Lenz presented the Finance Committee Report: FINANCE COMMITTEE Meeting Minutes March 9, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Finance Committee meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Tuesday, March 9, 2021. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=eb4523814816b78ld6e68fc662d442021 Event Number for Attendees: 132 820 5250 Event password: ugPEpxWT833 Audio conference: United States Toll +1-408-418-9388 Access code: 132 820 5250 Finance Committee Chair David Lenz, called the March 9, 2021, 6:00 p.m. Finance Committee meeting to order at 7:32 p.m. Corporate Secretary Griffin took the roll call to acknowledge attendance. The following Commissioners were present via audio/video: David Lenz remotely, Lansing, MI (Member) Ken Ross remotely, Port Charlotte, FL (Member) David Price remotely, Lansing, MI (Member) Sandra Zerkle remotely, Lansing, MI (Alternate) Stuart Goodrich remotely, Holt, MI Douglas Jester remotely, East Lansing, MI Deshon Leek remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tracy Thomas remotely, Lansing, MI Absent: Commissioner Beth Graham The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Price, Seconded by Commissioner Ross, to approve the Finance Committee meeting minutes of January 12, 2021. Motion Carried by the following Roll Call Vote: Yeas: Commissioners Lenz, Price, Ross Nays: None Action: Motion Carried. Tabled Items from July 21, 2020: 1) Current Internal Audit Charter, 2) Proposed Internal Audit Charter, 3) Resolution Motion by Chair Lenz, Seconded by Commissioner Price, to remove the tabled items from the table and dissolve the items. Roll Call Vote: Yeas: Commissioners Lenz, Price, Ross Nays: None Action: Motion Carried. January YTD Financial Summary CFO Heather Shawa gave a review of the January 2021 YTD Financial Summary. Financial summary-January 2°1 >.T_.,..^ ..^•..__ Alnandal5ummary January 2021 ..-_•• •M L C.t.lt 1 t tt til I t 11 1'1 U ............. d as bond Chief Financial Officer Heather Shawa reported that Total Cash increased as emonth at 229 cFY TD were received for 2020-2021 A and B Series issuance. Days Cash on Hand ended the net income was $29.4M, compared to a budget of $3.8Ma0 & due to depreciation from D spendpartment udget elta isEnedrgr budget; $12M of it is due to COVID-19 impact; $6M in vance is Park being brought on line later. generated from selling Chair Lenz commented that GM Peff ley mentioned that im act was was a lon income.ot of eCFO Shawa r plied that power to other parts of the country and asked what the p $2.7 M was the impact in February 2021 YTD Capital Budget, excluding Delta Energy Park(DEP),was in line with budget. Delta Energy Park, due to COVID19 and some timing from a large construction manager invoicing, was a little under spend but is expected to increase. tal YTD RoA is 4.13%, and the target was 4.14%. Two ss the five d the Bad Debt Ratio ishigh largely becaios are within benchmarks. Debt to use Assets was a little high, as expected, due to bond issuance and the allowance was increased at the end of the year. Days Sales Outstanding is underperforming by two days. Chair Lenz asked CFO Shawa to provide the normal value of the total Bad Debt amount prior to COVID- 19. CFO Shawa responded that the normal 12-month value is $1.2M to $1.5M and during COVID-19 it has doubled, but that was projected to happen Employee count YTD is 692 and the budgeted YTD is 732. In Payroll Data the Labor$/Hours Worked metric has remained in line with year prior. Overall YTD benefits costs are underbudget, due to BWL experiencing lower than expected medical claims. GM Peffley commented that the delay in the Delta Energy Park, that CFO Shawa mentioned, has been re- planned to have Delta Energy Park start on its original schedule. Just the equipment that is needed to run the units with a simple cycle is being worked on. The units will run for a day to be entered into the capacity market. The rest of the plant, such as efficiencies, will be worked on after that. Commissioner Zerkle commented on the payment plan for customers during COVID-19 and would like to see it kept in place for at least the rest of the year. GM Peffley replied that BWL would work with its customers through the rest of the pandemic. Commissioner Ross commended GM Peffley and CFO Shawa on the financial strategy associated with getting the Delta Energy Park units up and running and saving the rate payers money. Commissioner Ross asked for what length of time customers will have the benefit of the capacity of the coal plants. GM Peffley replied that one of the Eckert units has been extended to May. The capacity from the DEP simple cycle units will offset the loss of the Eckert units. It will take approximately one year for the new plant to run completely efficiently with trained employees. Erickson station is expected to be shut down by 2023. Commissioner Jester commented that he would like to discuss the capacity market with GM Peffley. Commissioner Jester noted that for low income customers there is a movement in other states for investor owned utilities to adopt a percentage of income payment plan that caps the customer's bill according to their income. He suggested that this be discussed during the next rate making cycle. Commissioner Jester added that he sent the Commissioners information from Ms.Jan Beecher regarding water rates,that could be applied to electricity rates for low income customers. Commissioner Leek asked how much it will cost to decommission the old coal plant and what will be the savings once it has been decommissioned. GM Peffley replied that since the Eckert station is still a transmission distribution station and three more substations have to be built before the property can be left, it will be about seven years before it is decommissioned. Executive Director of Operations Mr. Dave Bolan stated that the cost of taking the station to a dry state and putting safety measures in place will be about $1.2M and the savings will be about $1.5 million. Commissioner Thomas commented in response to Commissioner Zerkle that with the COVID-19 relief plan families will be receiving money that can be used to pay at least part of their utility bills. Commissioner Lenz commented in response to Commissioner Jester and asked howthe process to provide alternative rates to low income people would occur. CFO Shawa replied that increased rates are forecasted and included in the budget. A separate rate hearing process is held with public comments and with rates needing to be approved by the Board of Commissioners. GM Peffley replied that, in collaboration with the city, BWL is working on housing initiatives to help with utility bills. Commissioner Ross responded to Commissioner Jester's comments regarding the low-income rate making process. The low-income rate making process would need to be a deliberative process and suggested considering whether Ms. Jan Beecher would be available to donate time to talk about the rate making process to the Commissioners. The rate making process is a systematic, regimented process where facts and figures are developed with public comment and management. Commissioner Lenz commented that whether there will be continually increased unpaid utility bills depending on how COVID-19 plays out will have to be looked at seriously. CFO Shawa replied that when management provides a rate recommendation, an RFP is made for a consultant to review for a cost of service analysis. Investment Policy Statement (IPS)for DC Plans CFO Shawa reported that all the pension plans have investment policy statements (IPS) and it is a fiduciary process to review all IPS. The review is conducted annually by the Retirement Plan Committee with the plan investment advisor. CFO Shawa introduced Ms. Dori Drayton, Senior Vice President at CapTrust, as the financial advisor for the DC, 401, and 457 Plans. With the CapTrust review of the policies, some opportunities for improvement of the statements were identified and the revisions will be brought to the Finance Committee in May 2021. External Auditor RFP Bid Award and Resolution Chair Lenz presented a substitute resolution for the External Auditor RFP Bid Award Resolution. The substitute resolution includes the name of who was granted the bid. Motion by Commissioner Lenz, Seconded by Commissioner Price, to accept the substitute External Auditor RFP Bid Award Resolution. Roll Call Vote: Yeas: Commissioners Lenz, Price, Ross Nays: None Action: Motion Carried. CFO Shawa reported that the RFP was submitted and would like to recommend Baker Tilly as the Internal Auditor for the next five years from June 1,2021 to June 30, 2025. Key evaluation areas were the approach to audit quality,the plan based on organization industry efficiency and peer reviews,team knowledge and experience, qualifications specific to BWL industry, value added services, and also, scope and pricing. Internal audit also participated in the evaluation process team. CFO Shawa added that, per the charter, the City Council of Lansing will need to approve the recommendation of the external auditor. Motion by Commissioner Lenz, Seconded by Commissioner Price, to forward the substitute External Auditor RFP Bid Award Resolution to the full board for approval. Roll Call Vote: Yeas: Commissioners Lenz, Price, Ross Nays: None Action: Motion Carried. Internal Audit Status Report Internal Auditor, Mr. Wesley Lewis, presented the Internal Auditor Status Report. Audit Progress Report Audit Enaaaements and Activities In Audit Plan Curre ntly Underw av and/or Scheduled to Stert t. Purchase Cartl Usa antl Control-Audi(Srarus: Roponlhg Stage 2. Unbllled Acce unis Receivable-qudlr Sra rus: Reipon/ng Sre Oe 3. MPPA antl MI50 011llnns-This ait In progress. The locus Is on audit testing of a selected sample entlor tnvoce transactions. Es rim erudredIs Tlme oI Gomp/ellon: Mamh 1011 A. 5-Unfortunately,aver trying to negotiate.contract lelnl5 wllM1 800.w ached an Imp as Intl Ilad ton n Irom Ihem lao TM1us,w e In conlact with another IT Audit Con ullanl th al submitted an mlbal bid- Now Esr/marod Stan TIMM: TBD Ncw Esrlmared T/me or comp/ef/on: TOO 6. Coro,rate GovL-Strategic Plan an❑ Moll Ativeeate System(Includes Hotline)-(),date:a) Straledlc Plan fGue to the r mping of the c enl process into a which has resulted from the January 2021 approval of then w plan by the Board.and through t ring dlscusslons wl lh the pro— owner.IA determined that It would make sense to postpone me audit engagement to a future fiscal period. O)Elhlcal Advocate-The tame situation applies to this audit engagement. The new process went live In September 2020 and replaced the General Atanag e is Holline. 6. Other Audit Activhles-Ongoing Note EsIhr.(ad 91 and C.+np--,Tl.nos or Al/Engayemenls Us—A--Ara Suhject to Change. Finance Committee Meetinq 3 319/202I Chair Lenz asked how long it is expected for the cybersecurity process and IT vulnerabilities audit to take. Mr. Lewis responded that is expected to take approximately six weeks depending on how much information can be provided to the audit team. Preliminary FY 2022 Budget Proposed FY 2022 Internal Audit Budget IF 2022 FY 2021 proposed Approved Fr22+FY21 FY22 FY21 - of Br• —11 ell SO lec a�1 aM ee.t I]]91] I]laoe I1r 11 4 Finance Committee Meeting PFaIIn)inary X912021 Commissioner Thomas asked what the consultant fees were prior to 2019. Mr. Lewis responded that $60,000 was proposed in 2019 and that he increased the amount to$75,000 due to the new cybersecurity process audit. Commissioner Thomas asked if Mr. Lewis had additional staff to help with the audits. Mr. Lewis replied that external consultants will be contracted. Commissioner Thomas also asked if Mr. Lewis had the same number of staff as the previous Internal Auditor and more consultants. Mr. Lewis replied he had the same number of staff as the previous Internal Auditor and consultants that are available for additional auditing. Commissioner Lenz stated that the resolution for the budget isn't needed and doesn't need to be approved. Commissioner Ross commented that a consultants' pool and resources have been available to the Internal Auditor for the past years. The consultants are available to expand the Internal Auditor's capacity. ast Commissioner Price commented that a Principal Auditor was iced or full time unhe the l part Internal the Auditor. GM Peffley commented that the previous Principal Auditsuccession plan for the previous Internal Auditor. Other rove the absence of Motion by Commissioner Price, Seconded by Commissioner Ross, to approve Commissioner Beth Graham. Roll Call Vote: Yeas: Commissioners Lenz, Price, Ross Nays: None Action: Motion Carried. Adjourn Chair David Lenz adjourned the meeting at 8:45 p.m. Respectfully submitted David Lenz, Chair Finance Committee Commissioner Mullen presented the Human Resources Committee Report: HUMAN RESOURCES COMMITTEE Meeting Minutes March 16, 2021 The Human Resources Committee of the Lansing Board of Water a d Light (BWL)MI) at 5 3 t via We p.monbEx (B L Headquarters-REO Town Depot located at 1201 S.Washington February 16, 2021. Event Address for Attendees: https://Ibwlevents.webex.com/Ibwlevents/onstage/g.php?MTID=ed6ca7a6cOcfaf6f7323609f75a027689 Event Number for Attendees: 132 601 2112Event Password: C3m2MMyB4js Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 6012112 Human Resources (HR) Committee Chairperson Tony Mullen called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: Tony Mullen remotely, Lansing, MI Deshon Leek remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI rived @6:26 Stuart Goodrich remotely, Delhi Township, MI Beth Graham remotely, Lansing, aLansing,in , (I ( ved @6:28p )m) David Lenz remo y, Douglas Jester remotely, East Lansing, MI David Price remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Ken Ross remotely, Port Charlotte, FL Absent: None The Corporate Secretary declared a quorum. Public Comments Ms. Rosemary Sullivan, Lansing, BWL retiree spoke regarding transition from IRMC to Nationwide—asking es for more time to review options—has not received enoughreformed decision nse to prone de benefit informatrequestinlg ean - two or three weeks is not enough time to make a additional 30 days to make an informed decision on retirement benefits ionwide and if an GM Peffley responded that funds will automatically roll over from have days to select apother loyee or retiree does not like the Nationwide investments they ave another investment provider. Commissioner Price commented that in the letter from Ms. Sullivan it was understood that retirees had until April 15, 2021 to make a decision to remain with Nationwide. eived the letter. Commissioner Thomas asked if there was a test drive to Bent o t,nthere will be continued hw many retirees ccorrespondence GM Peffley responded that postal mail and email were sent out, and that a poll was conducted to determine to what extent notification was received. Approval of Minutes the Human Resources Motion by Commissioner Thomas, Seconded by Commissioner Leek, to approve Committee meeting minutes of February 16, 2021. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Retirement Plan Committee (RPC) Plan Governance Presentation Chair Mullen stated that at the last Human Resources C eme ittee irement fund andMeeng ussion mt introducedred BWL General the General Manager's deferred compensation into th Counsel, Mr. Mark Matus,to speak about the Retirement Plan Committee Plan Governance. 2 is for the ee Mr. Matus stated that all employees are part of DC Plan 1 and f the tat the DC DC Plan 2. GM Peffley'srcont ibutio pointed employees. Currently only the Corporate Secretary is part o ue to an to DC Plan 1 exceeded the cap on the plan causinghis investment. BWL'seemployebcontributon to administrative error during 2018 and 2019 there was a shortfall n General Manager's Plan 1 account, but it has since been corrected. Placing the in the DCneral ana aen 12 will n the DC Plan 2 is an option for the Board's future considers accommodate his investment choices so that he won't incur a loss in his investment. Commissioner Thomas asked what was the total amountneeded the errwa s$2,r775 for both years the lCMA plan rof including interest. Mr. Matus responded that the total amount of ro 2018 and 2019 but he didn't have the interest amount. Mr. Commissioner Leek asked if it was a mistake that GM DCfPllan 2 ey as notit was made in the C Ilan 2. le to hMmtus responded that GM Peffley had declined participation rney rie GM Peffley gave the floor to CFO Heather Shawa who introduced the RPC/PlalntGovteronance Oveirview Mireles and Ms. Mindi Johnson from Foster Swift who presented presentation. Ms. Mireles provided information on the fiduciary responsibilities of the Plan Administrator, Trustee, General Manager and RPC. gWL Retirement Plan Governance Plan a � Commissioner Ross asked if all the functions that are being currently performed were also being performed prior to 2016 but are just not documented in the same way. He also asked if someone that has fiduciary responsibilities is able to delegate the fiduciary r rontrolllelnvironment had everes and would the rlbeen ginal fiduciary still have responsibility. He also asked if aWLolbeenal identified. Ms. Mireles replied that the evaluated to determine whether there were any gaps t fiduciary responsibility stays with the original fiduciary and they responsible coon the eovironmht of the delegate. CFO Shawa replied that the RPC was formed to evaluate the t. Commissioner Ross stated that periodically the reviews need a a Board completed leted so not ndividat the Board has proper oversight and that the Board is fiduciarily responsible epresentative on the Commissioner Thomas asked if it was possible for a COmmissioner to be a that boa d to govern and Retirement Plan Committee. Ms. Mindi Johnson respondedhat it is common for to serve as fiduciaries. Commissioner Zerkle commented that the Board has operated o s fiduciaries with s long as she has been on the Board and the Finance Departmentprovide o de the Board of Commissioners information. She stated that she has not received information concerned about transition not receiving information from ICMA to Nationwide, and being fiduciarily responsible, before signing the agreement. Lansing Board of Water and Light Defined Contribution Plan and Trust GM Peffley gave the floor to CFO Shawa to present the Plan Document and Addendum, plus the Adoption Agreement for the transition of retirement benefits plans from anon to approved andtionwide. The eadopted by legation of the duties requires new trust agreements and the transition of the p the Board and Trustees. Trust Agreements and Executive summarV BWL Retirement Plans of the Mr. Scott Taylor, Finance Manager, presented an executive summary and Light Defplan ned Contr button Plao and agreements and trust agreements for the Lansing Board of Water Trust 1; Lansing Board of Water and Light Defined Contribution lananlan d Trust documents Trust 2; sing Board of before the Board and Light 457 Deferred Compensation Plan and Trust. The and Trustees as the Board has d appointed employees, and an 2 for the amendment authority over the three Trust agree l ments. The Plan and Trust documents remain the same uested arding of the but are being transitioned from ICMA to Nationwide. Mr. Taylor 457 Trugst to thefful\I Board for considerlat on. for the Adoption of the DC Plan 2, DC Trust 1, DC Trust 2, an Motion by Commissioner Zerkle, Seconded by Commissioner Leek, to forward the Resolution for the Adoption of the DC Plan 2, DC Trust 1, DC Trust 2, and 457 Trust to the full Board for consideration. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Motion by Chair Mullen,Seconded by Commissioner Zerkle,to recess to allow a Special Board Meeting to consider the Resolution for the Adoption of the DC Plan 2, DC Trsut 1, DC Trust 2 and 457 Trust. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. THE HUMAN RESOURCES MEETING RECESSED AT 6:37 P.M. FOR THE ALLOWANCE OF A SPECIAL BOARD MEETING AND A SPECIAL PENSION FUND TRUSTEES MEETING. THE HUMAN RESOURCES MEETING RECONVENED AT 6:53 P.M. Mid-Year Personnel Evaluation—Charter Appointed Employee HR Committee Chair Mullen opened the floor for the charter appointed employee's mid-year personnel evaluation. General Manager General Manager Richard Peffley requested a MS Teams closed session for the purpose of receiving his contractual mid-year personnel evaluation as permitted by the Open Meetings Act exemption MCL 15.268(a). Motion by Commissioner Thomas, Seconded by Commissioner Zerkle, to enter into a MS Teams closed session to discuss the contractual mid-year personnel evaluation of General Manager, Richard Peffley. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee went into a MS Teams closed session at 6:55 p.m. Motion by Commissioner Leek, Seconded by Commissioner Graham, to reconvene into WebEx open session. Roll Call Vote: Yeas: Commissioners Tony Mullen, Deshon Leek,Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. The Human Resources Committee reconvened to WebEx open session at 7:24 p.m. Other None. Adiourn Chair Mullen adjourned the meeting at 7:26 p.m. Respectfully Submitted, Tony Mullen, Chair Human Resources Committee MANAGER'S RECOMMENDATIONS There were no General Manager recommendations. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. RESOLUTIONS RESOLUTION 2021-03-03 Salary Adjustment for the Charter Position of Corporate Secretary Whereas; After further consideration of the grade and salary structure adopted for non-bargaining employees at the Lansing Board of Water and Light; and in consideration of the Corporate Secretary's experience, education and years of service; Whereas; A salary adjustment is appropriate to align the Corporate Secretary's salary to an equitable pay grade commensurate with top of the Director 002 level. Whereas: A Salary Adjustment shall be implemented in two equal parts, with the first being effective February 16, 2021, and the second increase effective June 1, 2021. FURTHER RESOLVED, That the Chair of the Board of Commissioners is authorized to execute any and all contractual amendments on behalf of the Board of Commissioners, which reflect adjustments recommended by the Human Resources Committee. Motion by Commissioner Mullen, Seconded by Commissioner Thomas,to approve the Resolution for the Salary Adjustment for the Charter Position of Corporate Secretary. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. RESOLUTION 2021-03-04 Corporate Sustainability & Climate Response 2021 Resolution WHEREAS,The Lansing Board of Water & Light ("BWL") is a municipally owned utility company organized under the Lansing City Charter as permitted by the Home Rule Cities Act, MCL 117.4(f)(c), and governed by the Board of Commissioners ("Board"). The Board, per the Lansing City Charter, is delegated administrative, executive and policy-making authority over the operation of the BWL, which includes the full and exclusive management of water, heat, steam and electric services and such additional services of the City of Lansing as may be agreed upon by the Board and City Council. WHEREAS, per the Lansing City Charter, the Board has appointed three individuals, Director (aka General Manager), Internal Auditor (aka Director of Internal Audit) and Secretary (aka the Corporate Secretary), who report directly to the Board and serve at the Board's pleasure. The General Manager is also responsible to the Board for carrying out the duties assigned by the Board, which includes but is not limited to the operation and management of the BWL. WHEREAS, it is the mission of the BWLto provide a safe, reliable and affordable utility experience through public ownership, climate consciousness and innovative strategies ("Mission"). WHEREAS, the vision of the BWL is a commitment to being the "Utility of the Future" while supporting community growth. The BWL will provide carbon neutral utility products, services and programs that are financially accessible to all customers with exceptional customer service. This will be accomplished by utilizing evolving, cutting-edge technology, as well as partnering with the Greater Lansing region and a highly skilled, diverse workforce ("Vision"). WHEREAS, industry and global discussions and reports have focused on harms,threats and dangers to the climate or planet. These harms, threats and dangers consequently impact the BWL's Mission and Vision. WHEREAS, the BWL plans to accomplish its Mission and Vision by operating under four fundamental values: (1) Integrity, (2) Innovation, (3) Inclusion and (3) Initiative ("Values"). WHEREAS, the BWL utilizes a variety of corporate performance tools, methodologies and frameworks to measure success and effectuate strategic management, such as maturity scales and the Balanced Scorecard (aka Corporate Scorecard). These aid in measuring the BWL's success of its Mission, Vision and Strategic Plan. WHEREAS, the Balanced Scorecard's core framework balances four perspectives for successful corporate performance: (1) Financial, (2) Customer and Stakeholder, (3) Internal Process and (4) Learning and Growth. WHEREAS,fundamental to successful accomplishment of the BWL's Mission and Vision through its Values includes a commitment to Corporate Sustainability, which includes a climate response strategy. WHEREAS, the concept of Corporate Sustainability is focused on long-term value to both internal and external stakeholders through the focus of 3 key pillars for operations: Social Development, Environmental Stewardship and Economic Growth.These 3 pillars often support one another to form sub- areas of focus such as: Socio-Economic, Socio-Environment and Eco-Efficiency. ("Corporate Sustainability") WHEREAS,the BWL is an integral part of the Lansing community and has the skills and assets to lead in promoting the community's environmental and economic wellbeing today and in the future. WHEREAS, in 2013 the BWL approved resolution 2013-03-01, entitled Environmental Stewardship and Sustainability Policy, which underscored its commitment to environmental stewardship and a desire to develop a company-wide culture of environmental Sustainability. Resolution 2013-03-01 called for the development of innovative business practices and programs. WHEREAS, the BWL successfully developed a number of programs and practices that supported environmental stewardship, examples of which include but are not limited to energy efficiency investments, water conservation, recycling, composting, pollution prevention, community outreach programs and expanding our renewable portfolio. WHEREAS, the Board desires to formalize and expand its commitment to Corporate Sustainability, Environmental Stewardship and to develop a climate response strategy. RESOLVED, the General Manager will develop a Corporate Sustainability program which includes procedures and methods for monitoring, measuring, promoting and improving Corporate Sustainability that emphasizes social development, environmental stewardship and economic growth. FURTHER RESOLVED, the Corporate Sustainability program shall also include climate response measures, practices, investments and tactics that incorporate but are not limited to the following: 1) Eco-friendly vendors and materials. 2) Energy, water and material waste reduction. 3) Recycling materials, equipment and appliances. 4) Reducing paper usage. 5) Renewable energy sources. 6) Energy-efficient transportation. 7) Support electric transportation and heating (aka beneficial electrification). 8) Usage of"Green" cleaning products and practices. 9) Live vegetation "Greenery" within facilities. FURTHER RESOLVED, the BWL shall set a short-term Clean Energy goal, which includes a combination of renewable energy and energy efficiency of 50% by 2030, or sooner. FURTHER RESOLVED, the General Manager will also enhance the BWL's climate response strategy by developing a plan and tracking progress towards Carbon Neutrality. FURTHER RESOLVED, the BWL sets a longer-term goal to reach Carbon Neutrality by 2040, or sooner. FURTHER RESOLVED, Resolution 2013-03-01, entitled Environmental Stewardship and Sustainability Policy is no longer operable and thus is replaced with this Corporate Sustainability & Climate Response Resolution. Motion by Commissioner Ross, Seconded by Commissioner Thomas, to approve the Corporate Sustainability & Climate Response 2021 Resolution_ Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. RESOLUTION 2021-03-05 Lansing Board of Water& Light External Auditor Recommendation WHEREAS, Lansing City Charter Section 3-404.1 requires an independent audit of all accounts of the City government, including the Board of Water and Light (BWL), at the close of each fiscal year, and all such audits shall be made by a Certified Public Accountant designated by the City Council; and WHEREAS, BWL staff engaged in its normal public procurement process for the purpose of soliciting and evaluating proposals from a variety of independent public accounting firms that have municipal utility audit experience to perform an audit of the BWL as required by Lansing City Charter Section 3-404 for fiscal years ending June 30 on the following respective years: 2021, 2022, 2023, 2024, and 2025; and WHEREAS, based on the public procurement evaluation of the proposals received, the BWL staff recommends the firm of Baker Tilly to perform these BWL audits; and RESOLVED, that the Board of Commissioners support BWL staff's recommendation; and FURTHER RESOLVED, the Board of Commissioners recommends that Lansing City Council approve and designate Baker Tilly to perform the annual financial audit for each of the fiscal years ending June 30 on the following respective years: 2021, 2022, 2023, 2024, and 2025 in accordance with Lansing City Charter 3-404.1; a n d FURTHER RESOLVED, that the Corporate Secretary is hereby directed to submit this resolution on behalf of the Board of Commissioners to City Council requesting their approval of Baker Tilly as recommended by the Board of Commissioners. Motion by Commissioner Lenz, Seconded by Commissioner Mullen,to approve the Resolution for Lansing Board of Water& Light External Auditor Recommendation. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. MANAGER'S REMARKS General Manager Dick Peffley gave an update on how customers are being supported that have been economically impacted by COVID-19. BWL has received $655,000 through the CARES Act which has been applied to customers' past due balances. BWL has also received a water restart grant of$13,000 which has been applied to water customers' past due balances. A letter was sent to 13,000 customers that are lec past due 30 days in utility bills, which accounts for $1.cmReion f BWL's u of efted debt,that they may be eligible for assistance under the COVID 19 Emergency at WL Commissioner Mullen asked how the money was distributed to those customers.in jeopa dy offhavinglthei hutiBt es reviewed the customers with the largest amounts owed an turned off and distributed the money. Commissioner Zerkle asked if this was the money the state legislature was holding up or has it been received and disbursed. GM Peffley replied that money received II be able to apply for t through the CARES he money under ct was received months ago and has been applied to customers bills. Customer the COVID-19 Emergency Rental Assistance Relief Act on April 1, 2021. 0 to Commissioner Ross asked if a report could be provided nnu the mbe o de Or )f gnq delinquencies and shutoffs.impact from March 2 GM March 2021 as compared to previous Years on the overall Peffley replied that a report will be prepared. He added t chip working around tasComm Commissioner Ross hit General Motors and the auto industry is hitting the Delta Energy Plant but BWL s asked if data could also be provided for supply issues that are pandemic related. GM Peffley replied that data would be provided. COMMISSIONERS' REMARKS ignature forms that have been sent and received be signed an Chair Price requested that the Trustee s returned as soon as possible. Commissioner Thomas thanked the Diversity, Equity, and Incla��idOWalker of Public policy Assocteam for the work they iates,and Inc. presentation that and as reques requested thde. GM at BWL help them with ey replied that Mr. itheir journey. reached out to BWLq Commissioner Graham thanked GM Peffley for quickly helping f e family whose if the eipwas aes d interpreter n and were flooding the neighbors' property. Commissioner Graham available for the different nationalities in the Lansing area.uch it. Hy replied that the efamily added that BWL cust merhat was service helped didn't speak English, but they were able to get through has the capability to speak 250 languages with live people. and Commissioner Ross directed this comment to Chair Price and Trustees,Chair Thomas has and hasn asked if a reacquaintance could be done of the reporting and duties of the t should d focused. delegated, where oversight lies, governance issues, and on what an discussion can Chair be Price replied that it applies to all the Committees and that regular reporting arranged and be done in the next COW meeting. PUBLIC COMMENTS There were no public comments. ADJOURNMENT Chair Price adjourned the meeting at 5:58 p.m. M.Denise Griffin,Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk 03-24-21 Approved by the Board of Commissioners: 05-25-21 official Minutes filed(electronically)with Lansing City Clerk: 05-26-21 Approved by the Board of Commissioners March 23,2021 W Hometown Peopre.Hometown Power. LANSING BOARD OF WATER AND LIGHT BOARD OF COMMISSIONERS SPECIAL BOARD MEETING MINUTES March 16, 2021 The Board of Commissioners of the Lansing Board of Water and Light (BWL) met via WebEx (BWL Headquarters-REO Town Depot located at 1201 S. Washington Ave., Lansing, MI) on Tuesday, March 16, 2021. The meeting was Publicly Noticed for 5:50 p.m. Event Address for Attendees: https://Ibwlevents.webex.com/lbwlevents/onstage/g.php?MTID=ed6ca7a6cOcfaf6f7323609f75a027689 Event Number for Attendees: 132 6012112 Event Password: C3m2MMyB4js Audio Conference: United States Toll+1-408-418-9388 Access Code: 132 6012112 Chairperson David Price called the meeting to order at 6:38 p.m. Corporate Secretary Griffin called the roll. The following Commissioners were present via audio/video: David Price remotely, Lansing, MI Stuart Goodrich remotely, Holt, MI Beth Graham remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI DeShon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Tony Mullin remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Ken Ross remotely, Charlotte County, FL Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI Absent: None The Corporate Secretary declared a quorum. Chair Price led the Pledge of Allegiance. PUBLIC COMMENT A written comment was received from Ms. Rosemary Sullivan, BWL Retiree, Lansing, MI regarding the transition to Nationwide Insurance. MEETING PURPOSE: Consider a Resolution to Approve and Adopt Restated: DC Plan 2, DC Trust 1, DC Trust 2, and 457 Trust. Commissioner Price stated that he called for this Special Board meeting to consider the approval of and adoption of restated DC Plan 2, DC Trust 1, DC Trust 2, and 457 Trust and would like to put forward a Resolution. Special Board Mtg. March 16,2021 Page 2 of 6 RESOLUTION 2021-03-01 Lansing Board of Water& Light Retirement Plans WHEREAS, the Lansing Board of Water& Light (the "Board") maintains the Lansing Board of Water and Light Defined Contribution Plan and Trust 1 (the "DC Plan 1"), the Lansing Board of Water and Light Defined Contribution Plan and Trust 2 (the "DC Plan 2"), and the Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust (the "457 Plan"); and WHEREAS, the Board desires to amend and restate the DC Plan 2; and WHEREAS, the Board desires to amend and restate the Trust Agreement for the Lansing Board of Water and Light Defined Contribution Plan and Trust 1 (the "DC Trust 1"), the Trust Agreement for the Lansing Board of Water and Light Defined Contribution Plan and Trust 2 (the "DC Trust 2), and the Trust Agreement for the Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust (the "457 Trust"); and WHEREAS, the Board has received and reviewed copies of the proposed DC Plan 2, DC Trust 1, DC Trust 2 and 457 Trust; and WHEREAS, the Board desires to approve and adopt the restated DC Plan 2, DC Trust 1, DC Trust 2 and 457 Trust. NOW THEREFORE, it is: RESOLVED, that the restated DC Plan 2 is hereby approved, effective as set forth therein; FURTHER RESOLVED, that the restated DC Trust 1 is hereby approved, effective as set forth therein; FURTHER RESOLVED, that the restated DC Trust 2 is hereby approved, effective as set forth therein; FURTHER RESOLVED, that the restated 457 Trust is hereby approved, effective as set forth therein; FURTHER RESOLVED,that any member of the Board of Commissioners, on behalf of the Board, is authorized to execute the restated DC Plan 2, DC Trust 1, DC Trust 2, 457 Trust and any other documents that are necessary to implement the foregoing resolutions. Motion by Commissioner Mullen, Seconded by Commissioner Thomas, to approve and adopt Restated: DC Plan 2, DC Trust 1, DC Trust 2 and 457 Trust. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried Special Board Mtg. March 16,2021 Page 3 of 6 Motion by Chair Price, Seconded by Commissioner Leek to recess the Special Board Meeting for the Commissioners to attend the Special Pension Fund Trustees meeting for the purpose of the Trustees to approve and adopt the Restated DC Plan 2, DC Trust 1, DC Trust 2, and 457 Trust Resolution. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. CHAIR PRICE RECESSED THE SPECIAL BOARD MEETING AT 6:44 P.M. FOR THE ALLOWANCE OF A SPECIAL PENSION FUND TRUSTEES MEETING. CHAIR PRICE RECONVENED THE SPECIAL BOARD MEETING AT 6:48 P.M. SPECIAL PENSION FUND TRUSTEE COMMITTEE REPORT Chair David Price presented the Pension Fund Trustee Meeting Report: SPECIAL PENSION FUND TRUSTEES MEETING MINUTES March 16, 2021 The Pension Fund Trustees of the Lansing Board of Water & Light (BWL) met via WebEx at the BWL Headquarters— REO Town Depot located at 1201 S. Washington Ave., Lansing, MI, on Tuesday, March 16, 2021. The meeting was Publicly Noticed for 5:55 p.m. Event Address for Attendees: https://lbwIevents.webex.com/ibwlevents/onstage/g.php?MTI D=ed6ca7a6cOcfaf6f7323609f75a027689 Event Number for Attendees: 132 6012112 Event Password: C3m2MMyB4js Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 6012112 Board Trustee David Price called the meeting to order at 6:44 p.m. Corporate Secretary Griffin called the roll. The following Trustees were present via audio/video: David Price remotely, Lansing, MI Beth Graham remotely, Lansing, MI Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Tony Mullin remotely, Lansing, MI Ken Ross remotely, Charlotte County, FL Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI Absent: None The Corporate Secretary declared a quorum. Special Board Mtg. March 16,2021 Page 4 of 6 Public Comments None. MEETING PURPOSE: Consider a Resolution to Approve and Adopt Restated: DC Plan 2, DC Trust 1, DC Trust 2, and 457 Trust. Chair Trustee Price stated that he called for this Special Pension Fund Trustee meeting to consider the approval of and adoption of restated DC Plan 2, DC Trust 1, DC Trust 2, and 457 Trust and would like to put forward a Resolution. RESOLUTION#2021-03-02 Lansing Board of Water& Light Retirement Plans WHEREAS, the Lansing Board of Water& Light (the "Board") maintains the Lansing Board of Water and Light Defined Contribution Plan and Trust 1 (the "DC Plan 1"), the Lansing Board of Water and Light Defined Contribution Plan and Trust 2 (the "DC Plan 2"), and the Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust (the "457 Plan"); and WHEREAS, the Board desires to amend and restate the DC Plan 2; and WHEREAS, the Board desires to amend and restate the Trust Agreement for the Lansing Board of Water and Light Defined Contribution Plan and Trust 1 (the "DC Trust 1"), the Trust Agreement for the Lansing Board of Water and Light Defined Contribution Plan and Trust 2 (the "DC Trust 2), and the Trust Agreement for the Lansing Board of Water and Light 457 Deferred Compensation Plan and Trust (the "457 Trust"); and WHEREAS, the Board has received and reviewed copies of the proposed DC Plan 2, DC Trust 1, DC Trust 2 and 457 Trust; and WHEREAS, the Board desires to approve and adopt the restated DC Plan 2, DC Trust 1, DC Trust 2 and 457 Trust. NOW THEREFORE, it is: RESOLVED, that the restated DC Plan 2 is hereby approved, effective as set forth therein; FURTHER RESOLVED, that the restated DC Trust 1 is hereby approved, effective as set forth therein; FURTHER RESOLVED, that the restated DC Trust 2 is hereby approved, effective as set forth therein; FURTHER RESOLVED, that the restated 457 Trust is hereby approved, effective as set forth therein; Special Board Mtg. March 16,2021 Page 5 of 6 FURTHER RESOLVED, that any member of the Board of Commissioners, on behalf of the Board, is authorized to execute the restated DC Plan 2, DC Trust 1, DC Trust 2, 457 Trust and any other documents that are necessary to implement the foregoing resolutions. Motion by Trustee Mullen, Seconded by Trustee Zerkle, to approve and adopt the Resolution for the Restated DC Plan 2, DC Trust 1, DC Trust2, and 457 Trust. Roll Call Vote: Yeas: Trustees David Price, Beth Graham, Deshon Leek, David Lenz, Anthony Mullen, Ken Ross, Tracy Thomas and Sandra Zerkle Nays: None. Action: Motion Carried. Other None. Adiourn There being no further business, the Special Pension Fund Trustees meeting adjourned at 6:48 p.m. Motion by Commissioner Mullen, Seconded by Commissioner Ross,to have Chair Price as the Chairperson of the Board sign the DC 1 Trust, DC 2 Trust and 457 Trust Documents Agreements on behalf of the Board of Commissioners. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Anthony Mullen, Ken Ross, Tracy Thomas and Sandra Zerkle Nays: None. Action: Motion Carried. MANAGER'S REMARKS/COMMENTS General Manager Dick Peffley responded to Commissioner Thomas' request for the total contribution amount to the General Manager's pension fund stating that$490 of interest was added to his $2,775 contribution totaling $3,265. COMMISSIONERS' REMARKS/COMMENTS There were no Commissioners' remarks. PUBLIC COMMENT Ms. Rosemary Sullivan, Lansing, BWL retiree spoke thanking the Commissioners for holding the Special Board Meeting a week early. Special Board Mtg. March 16,2021 Page 6 of 6 MOTION OF EXCUSED ABSENCE There were no excused absences. ADJOURNMENT Chair Price adjourned the meeting at 6:53 p.m. Filed with Lansing City Clerk: 03-24-21 Official Minutes Approved by the Board of Commissioners 03-23-21 Hometown People.Hometown Power: MINUTES OF THE BOARD OF COMMISSIONERS MEETING LANSING BOARD OF WATER AND LIGHT January 26, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Regular Board of Commissioners meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Tuesday, January 26, 2021. This meeting was publicly noticed for 5:30 p.m. Event Address for Attendees: https:Hlbwlevents.webex.com/lbwlevents/onstage/g.php?MTID=e317c629lb98ce01fcd4alfd9Ob4915cl Event Number for Attendees: 132 713 3991 Event Password: gT8UtMmbg22 Audio Conference: United States Toll +1-408-418-9388 Access Code: 132 713 3991 Chairperson David Price called the meeting to order at 5:30 p.m. The Corporate Secretary, M. Denise Griffin, called the roll. The following Commissioners were present via audio/video: Chairperson David Price remotely, Lansing, MI Stuart Goodrich remotely, Holt, MI (arrived @5:45 pm) Beth Graham remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI (arrived@ 5:32 p.m.) Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tony Mullen remotely, Lansing, MI David Price remotely, Lansing, MI Ken Ross remotely, Charlotte County, Florida Sandra Zerkle remotely, Lansing, MI Absent: None Corporate Secretary Griffin declared a quorum. Chair Price led the Pledge of Allegiance. Chair Price requested a motion to amend the agenda to add a late item, the City of Lansing newly implemented required Annual Ethics Training,which will allow the Board to consider a resolution that the Board will endeavor to be compliant with obtaining the City of Lansing's required ethics training and that the Rules of Procedure will be amended to include the annual ethics training as an annual event. Motion by Commissioner Thomas, Seconded by Commissioner Graham, to amend the agenda to add the late item, the City of Lansing Annual Board Ethics Training. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. APPROVAL OF MINUTES Motion by Commissioner Graham, Seconded by Commissioner Zerkle, to approve the Regular Board Meeting minutes of November 17, 2020. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. PUBLIC COMMENTS There were no public comments. COMMUNICATIONS There were no communications. COMMITTEE REPORTS Chairperson Price presented the Executive Committee Report: EXECUTIVE COMMITTEE Meeting Minutes December 17, 2020 Due to public safety concerns resulting from the COVID-19 Pandemic, the Executive Committee meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Thursday, December 17, 2020. Event Address for Attendees: https:Hlbwlevents.webex.com/lbwlevents/onstage/g.php?MTID=e5163781865ac93f5e8568649b5819ld7 Event Number for Attendees: 132 573 1544 Event password: zmDV5HErx32 Audio conference: United States Toll +1-408-418-9388 Access code: 132 573 1544 Executive Committee Chair David Price called the December 17, 2020 Executive Committee meeting to order at 5:00 p.m. Corporate Secretary Griffin took the roll call to acknowledge attendance. The following Commissioners were present via audio/video: David Price remotely, Lansing, MI Tracy Thomas remotely, Lansing, MI (Board Chairperson) (Vice Chairperson) Sandra Zerkle remotely, Lansing, MI Anthony Mullen remotely, Lansing, MI (Past Chairperson) (Member) Beth Graham remotely, Lansing, MI Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Ken Ross remotely,Charlotte County, FL(@5:06 p.m.) Douglas Jester remotely, East Lansing, MI Larry Merrill remotely, Delta Township, MI Stuart Goodrich remotely, Holt, MI (arrived @5:31 p.m.) Absent: None. The Corporate Secretary declared a quorum. Public Comments None. Governance Participation from Commissioners Items to revisit Onboarding information for Commissioners Chair Price introduced Commissioner Merrill to present the Governance seminar. Chair Price noted that the last governance seminar was held in the fall of 2014 and due to circumstances in the past year an update of the role of governance was deemed necessary. Commissioner Mullen requested that the Commissioners keep the goals of the governing process as simple as possible--select the goals and the steps to accomplish the goals. Commissioner Larry Merrill opened the floor and asked the Commissioners to speak concerning the following questions from the Governing Excellence presentation: • From what sources—public sector organization, private businesses, individuals, readings, education, experiences—do you derive guidance on your roles and responsibilities? • What are the similarities and differences between your"mental models" and your actual roles and responsibilities? Chair Price responded that his experience is from the non-profit sector as an executive director, as a board president, treasurer and member; and that as a Commissioner he governs on the board in the manner that he would expect if he was the customer that is being represented. Chair Price added that the differences between governing in the non-profit sector and at BWL as a public entity which add some difficulty include the political aspect and having three employees instead of one to set and carry out policy. Commissioner Graham responded that her experience as president of a realtor's association was different as there was one executive officer to whom the governing body reported and the governing body didn't interact with any of the company business. The governing body was similar in taking care of the concerns of the membership for the betterment of the association. Commissioner Lenz responded that his experience was different with a nonprofit membership driven organization as the board members were nominated and elected by the members. Commissioner Jester responded that his experience has been with non-profits, member organizations and municipal boards. He stated that there were procedural differences between those boards and the BWL board in that substantive discussion is held only in the committee meetings of the BWL. Commissioner Jester added that the concerns of the other boards were mainly with policy of the organization while BWL is a fiduciary board where more time is spent with governance, oversight and financials. Commissioner Ross responded that his experience has been with local government boards, a small municipality board, nonprofit boards and a for profit board. Commissioner Ross added that the BWL board is different in that it has both voting and non-voting members, different term lengths of members, and a high volume of material with technical subject matter for the Commissioners to review. Commissioner Ross also added that the BWL is different in that it is a public body subject to the Open Meetings Act and FOIA. Commissioner Zerkle responded that her experience has been with labor committees with only one speaker. Commissioner Zerkle added that rules and procedures for the BWL were provided through the BWL Corporate Secretary. Commissioner Thomas responded that his experience has been in education where everyone on the board had a specialty. Commissioner Thomas added that the education boards were similar to BWL as public boards with transparency and that the BWL was different from other public boards where a couple members may be the deciding members. Commissioner Goodrich responded that his experience has been on a municipal board where he led the meeting. Commissioner Goodrich added that the BWL board is different in that he has less of a say in what transpires. Commissioner Larry Merrill brought up for discussion and asked for the Commissioners' input concerning the following questions: • Is there anything the Board of Commissioners doesn't do regarding the functions of Board Governance by seeing to it that LBWL achieves what it should and avoids imprudent risks and unacceptable outcomes? • Does the LBWL achieve what it should through its vision, mission, values, strategic goals and objectives; through measurements of goals and objectives; through monitoring and evaluation; through policy compliance;through CEO effectiveness and board effectiveness; through adequate and efficiently used resources of competent staff and competent board? • Does the BWL assure reliable service, competitive rates, convenience, information, lower cost and transparent operations, participation in decision-making, involvement in the regulatory process, and whatever else the customer deems valuable? • Whether there is a difference between the corporate policies developed and adopted for governance of the BWL for affective administrative and executive management and the policies of the managing director. In response to Commissioner Merrill's question on the appropriate division of authority between the Board and the General and whether there needs to be more clarity Chair Price said that there needs to be clarification and a restatement of the governance policy. • Whether the Board should only review and approve the corporate strategic plan or should the Board provide input and develop it also? Chair Price said that the Board should be an integral part of the strategic plan rather than just take what is given to be reviewed. How is the General Manager held accountable for outcomes from the Board's approval process? Commissioner Merrill stated that the fiduciary role in the review and approval process as representatives of the utility's owners will need further conversation. Are the rate payers the owners of Lansing Board of Water and Light? Chair Price stated that the Lansing City Charter governs the Lansing Board of Water and Light and all the rate payers are not within the City of Lansing. Chair Price added that owners have a direct influence in governance and he doesn't think the rate payers do. To whom is the Board accountable? Commissioner Merrill stated that according to the Lansing City Charter 5-201 'the board shall be responsible to the Mayor and the City Council for the provision of these services in a manner consistent with the best practices." Commissioner Goodrich asked whether a member of the city council the BWL andit�s commissioner Merrill responded that the city charter created a separate board for different than the other city boards and commissions. in is owned by the rate payers) further discussion commissioner Merrill noted that BWL has a resolution, 2017-07-06,which states that BWL Chair Price responded that there are rate payers outside of the Lansing city limits and restated that owners have a direct influence in governance and he doesn't think the rate payers do and this should be further discussed. Whether the Board acts as an oversight committee for behalf of the owner Manager Comm commissioner Lenz as an instrument of the City of the Lansing to speak on responded that the Board balances the responsibilities between acting as an oversight committee and as an instrument of the City of Lansing. commissioner f el beesponded that since the involved in items such as aid he Board only meets every other month it would be difficult to strategic planning process, other than providing input, and have management responsibilities. Commissioner Mullen responded that the Board has the responsibilities to provide a good return on investment to the City of Lansing as owners, to rate payers, and to management and employees. Commissioner Price responded that representing the City of Lansing, (sn't exclusive passed by the from the management and employees carrying outpolicies and plans that are Board. Whether the role of the Board of Commissioners as an regulatory fiduciary adequately described reviewing the financial position, asset condition, legal environment compliance, technology changes, energy prices, competitors actions, and environment and climate impacts; identifying stakeholder concerns; setting strategic in unacceptable direction; providing outcomes;grces andthrough rate monitoring, making; delegating authority to staff; proscribing comes evaluating and providing additional input. Chair Price responded that the description is accurate as the Board deals with complicated issues and indicates how the Board lbutrather Commissioner Jester responded that it doesn't seem that the Board provides resources determines what is done with the resources. Commissioner resources. Merrill responded that when the Board sets rates and approves the budget it is providing Commissioner Goodrich commented that on boards he has previously VeCommis board s over Goodr ch hires the manager and just observes the manager take care of the business o perations also commented to the limitation on powers of boards and said e e Merrillthinkthe Managerment and stated had been given enough authority. Chair Price and Commissioner Mexpressed that the General Manager has been given adequate authority. • Whether the Board members govern well, whether existing board policies are up-to-date and understandable, and whether board members are compliant or there is a need for increased training. Commissioner Ross responded that because of the technical subject matter there is a need for increased training in the governance process, the mechanics of decision making and the committee structures. Chair Price added that in addition to the board member orientation packet formal hands-on training should be provided. Commissioner Jester commented that the information that was provided by the Corporate Secretary when he was appointed as a Commissioner was very helpful. He added that he needed to become familiar with the rhythm of the governing process. Commissioner Graham agreed with Commissioner Jester's comments and added that it would be helpful to attend a governing process training session. Commissioner Merrill asked for clarification or follow up of the following statements in board policies: • Whether the Board has delegated oversight responsibility to any committee or is the committee responsible for some level of monitoring and reporting back to the board. • The authority and accountability of respective management and staff is inseparable from the authority and accountability of the three employees. • An individual Commissioner cannot make decisions or recommendations, nor issue directives that are binding on the General Manager, Director of Internal Audit and Corporate Secretary. • The Board will conduct a self-evaluation every two years with the next evaluation to be conducted in 2020. Chair Price responded that the self-evaluation is in the planning stages and will be sent in the beginning of 2021, and a 360-degree evaluation will be sent to the Board employees. Commissioner Thomas commented that for the last five years a protocol has been in place that the Chair speaks on behalf of the board to media. He also asked to be part of the process in the self-evaluation planning stages. Commissioner Merrill asked that the spokesperson role also apply to instances in speaking with the staff. Commissioner Merrill asked for follow up on the following items: • protocol for placing an item on the agenda • whether a succession plan is in place for executives • whether communication from staff is shared equally with the commissioners • the procedure for dealing with problems/conflicts efficiently, coherently and sensitively Commissioner Merrill asked whether the issues that have been raised should be addressed. Commissioner Price stated that the objective for the governance seminar was to get all the Commissioners on the same page, to review what is in the governance policies, to make some enhancements, and to address what is lacking. Commissioner Zerkle commented that the input from the advisory commissioners is valued and the non- voting status in not a reflection of importance. Commissioner Goodrich commented that he appreciated the information from Commissioner Merrill and that the information was valuable for this board. Commissioner Ross commented that the input from the advisory Commissioners is valuable and that he really appreciated this governance meeting that was conducted by advisory Commissioner Larry Merrill. Commissioner Ross added that he didn't think the Board had fundamental problems but does have opportunity for continuous improvement and refinement. Chair Price commented that the advisory Commissioners were a direct result from the ice storm. Chair Price added that he didn't know why the term lengths were set as they are. Other There was no other business. Excused Absence None. Adiourn Chairperson Price adjourned the meeting adjourned at 7:12 p.m. Respectfully submitted, David Price, Chair Executive Committee Commissioner Tracy Thomas presented the Committee of the Whole Report: COMMITTEE OF THE WHOLE Meeting Minutes January 12, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Committee of the Whole (COW) meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI, on Tuesday,January 12, 2021. Event Address for Attendees: https:Hlbwlevents.webex.com/lbwlevents/onstage/g.php?MTID=ec2515cbd377187c68417ccaldb6b6365 Event Number for Attendees: 132 470 7852 Event password: Wb3epfSZC85 Audio conference: United States Toll +1-408-418-9388 Access code: 132 470 7852 Committee of the Whole Chair Tracy Thomas called the meeting to order at 5:30 p.m. and asked the Corporate Secretary to call the roll. The following Commissioners were present via audio/video: (COW Chairperson)Tracy Thomas remotely, Lansing, MI Stuart Goodrich remotely, Holt, MI (arrived @5:40 pm) Beth Graham remotely, Lansing, MI Douglas Jester remotely, East Lansing, MI Deshon Leek remotely, Lansing, MI David Lenz remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tony Mullen remotely, Lansing, MI David Price remotely, Lansing, MI Ken Ross remotely, Charlotte County, Florida Sandra Zerkle remotely, Lansing, MI Absent: None. The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Graham, Seconded by Commissioner Leek, to approve the Committee of the Whole meeting minutes of November 10, 2020. A roll call vote was taken: Yeas: Commissioners Thomas, Graham, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Strategic Plan 2021—Resolution Executive Director of Strategic Planning, Ms. Brandie Ekren, reviewed the proposed revisions to the BWL Mission,Vision and Values for the 2021 Strategic Plan and the proposed priorities, goals and strategies for the 2021-2025 Strategic Response. Commissioner Zerkle asked why the vision statement doesn't state that BWL is continuing to improve carbon neutrality products rather than will provide carbon neutrality products. Ms. Ekren responded that carbon neutrality is a goal rather than a current condition. Commissioner Merrill asked whether the Priorities in the 2021-2025 Strategic Response were listed in order of importance and if they were, Financial Stability should be the most important. He added that a strong financial position should be attained rather than a viable financial position and that the BWL has a legal responsibility for the financial stability of the utility but not for the other priorities. Commissioner Zerkle commented that the priorities may change every day and that importance shouldn't be placed on any of the priorities. Commissioner Price commented that without the Financial Stability as the most important priority the other four priorities aren't achievable. Commissioner Mullen commented in disagreement that if financial stability isn't placed first that other four Priorities will fail. If any of the others fail, such as climate and environment, businesses won't move into the area. Therefore, all of the 2021-2025 Strategic Priorities are interdependent and rely on the others for success. Commissioner Leek agreed with Commissioner Mullen that each of the 2021-2025 Strategic Priorities are important and one should not be ranked over the other. Chair Price made a motion that the resolution for the Strategic Priorities reflect that Financial Stability Priority be the first priority and interdependent with the other four priorities. Commissioner Graham seconded the motion. Commissioner Jester recommended rewording the Financial Stability Priority to sustaining a financially viable organization to enable the achievement of the other priorities. Upon conclusion of the discussion regarding the wording of the Resolution,the Motion by Chair Price and the Second by Commissioner Graham that was on the floor was withdrawn by the offeror. The resolution as recommended by Ms. Ekren met the needs for 2021-2025 Strategic Plan. Motion by Commissioner Price, Seconded by Commissioner Graham, to forward the Resolution for the Strategic Plan 2021 to the full Board for consideration. Ms. Ekren added that she would like to make a few small grammatical edits to the Resolution before it was approved by the Board. A roll call vote was taken: Yeas: Commissioners Thomas, Graham, Leek, Lenz, Mullen, Price, Ross, Zerkle Nays: None Action: Motion Carried. Capital Portfolio Process Update Chief Financial Officer, Ms. Heather Shawa, introduced Finance Manager, Mr. Scott Taylor, and Interim Manager and Senior Operations Advisor, Ms. Kellie Elford,to provide the Capital Portfolio Process Update. • Resolution Highlights 2, • Project Definitions-Annual and Planned 1, ur�►rut.es-_ap,�enMx,ho,—mmyyea,andtasr:.a,da,eiy-l+�t • Designed Budget Amount Highlight penod of bme to complete.typiollylns thanalew mrnlhs �„ • Management System Governance Additions-GM and — Board of Commissioners • Capital Process Governance Structure Additions-GM "_*d -_a Hap q,•,tin iu and Boa rd of Commissioners uewlumess.dwahon,om vcale,arvloititality rlammA p+oj«utypKally j • Draft Repotting Proposal inswde marrydiNeum' ofaauuor ry' and,e,wneamaedetaned.m- depth con tracW4 fo supper proxtiw rari maeogemmt.Pfanmd pqM / •Top 10 Planned Projects iraludes rt,or a+d uPoer u,ga uak,mtegvted p,genv • Designed budget amounts rlv<:rc.o:ay_uo of c,q^aw+a,a+e"pentmaa mvea • Project phase and completion date • Variances • Summary of other planned and annual projects "''•"' 'r"'• r. 'ti Capital Process Governance Structure -- - a�hvem nnx,A+.uw mare,u.eapww�n�%+wr.,atn slim ,mom,+ t,T.+,n.u.•H mn+vmneea.d ro++amt earo 'i,,� Mr. Taylor highlighted the budget and costs amount in the Capital Project Exceedance Approval (previously approved) Resolution and the project terms and definitions. Ms. Elford described the stages of a project and the approval steps for managers and directors, followed by the approval process for the executive staff and Board of Commissioners. Commissioner Zerkle asked when the deadline is set for the teams to have a project placed in the budget. Mr. Taylor responded that a continual process is encouraged and the structured process for the six-year forecast includes an initial submission by November, followed by a multi-step review process and review board. Projects that emerge during the year that are critical will also be reviewed. Commissioner Zerkle asked why projects were on the report in Phases 2 and 3 instead of in Phase 4 after the construction has been approved. Mr. Taylor responded that the projects are entered in Phase 1 as soon as costs start accruing. GM Peffley responded that Phase 4 is where the Board of Commissioners review the project, but the previous Phases are for the processes leading up to the Commissioners' review. Commissioner Mullen asked if the information on the reports could be provided in laymen's terms. GM Peffley responded that information can be provided in any manner that the Commissioners would like. Commissioner Lenz commented that the report contains basic information and is provided for oversight for the Commissioners and so that they are aware of how the projects are monitored before the Commissioners' review. Other Commissioner Mullen asked about the prohibitive cost of stopping the shut off of water, whether there is not only the fiduciary responsibility the BWL has to pay bills, but also whether there is a fiduciary responsibility to the City of Lansing to do something more and say this is what the BWL has done to help. Management will follow up with a response. GM Peffley informed the Commissioners that the IRP goal of 50% clean energy and carbon neutrality was not specifically outlined in the 2021-2025 Strategic Plan. While the IRP goals are supported by the 2021- 2025 Strategic Plan,there is an opportunity to update the current environmental sustainability resolution. The plan is to propose an updated resolution that addresses environmental sustainability in March in the form of a climate control resolution that emphasis the IRP goals of 50%clean energy and carbon neutrality. Adjourn Commissioner Thomas adjourned the meeting at 7:08 p.m. Respectfully Submitted Tracy Thomas, Chairperson Committee of the Whole Commissioner David Lenz presented the Finance Committee Report: FINANCE COMMITTEE Meeting Minutes January 12, 2021 Due to public safety concerns resulting from the COVID-19 Pandemic,the Finance Committee meeting for the Lansing Board of Water and Light (BWL) was conducted via WebEx Conferencing in Lansing, MI on Tuesday,January 12, 2021. Event Address for Attendees: https:Hlbwlevents.webex.com/lbwlevents/onstage/g.php?MTID=ec2515cbd377187c68417ccaldb6b6365 Event Number for Attendees: 132 470 7852 Event password: Wb3epfSZC85 Audio conference: United States Toll +1-408-418-9388 Access code: 132 470 7852 Finance Committee Chair David Lenz, called the January 12, 2021, 6:00 p.m. Finance Committee meeting to order at 7:20 p.m. Corporate Secretary Griffin took the roll call to acknowledge attendance. The following Commissioners were present via audio/video: David Lenz remotely, Lansing, MI (Member) Beth Graham remotely, Lansing, MI (Member) David Price remotely, Lansing, MI (Member) Ken Ross remotely, Charlotte County FI. (Member) Stuart Goodrich remotely, Holt, MI Douglas Jester remotely, East Lansing, MI Deshon Leek remotely, Lansing, MI Larry Merrill remotely, Delta Township, MI Tracy Thomas remotely, Lansing, MI Sandra Zerkle remotely, Lansing, MI Absent: None. The Corporate Secretary declared a quorum. Public Comments None. Approval of Minutes Motion by Commissioner Price, Seconded by Commissioner Graham, to approve the Finance Committee meeting minutes of November 10, 2020. Motion Carried by the following Roll Call Vote: Yeas: Commissioners Lenz, Graham, Price, and Ross Nays: None Tabled Items from July 21, 2020: REMAINED ON THE TABLE 1) Current Internal Audit Charter, 2) Proposed Internal Audit Charter, 3) Resolution November YTD Financial Summary CFO Heather Shawa gave a review of the November 2020 YTD Financial Summary. "n: .-+.stih..-..fir=.nt - _ _ Chief Financial Officer Heather Shawa reported that Total Cash decreased as expected as bond proceeds were spent down for Delta Energy. Days Cash on Hand ended the month at 231. Debt Service Coverage was solid at 3.89. FYTD net income was $26.8M, compared to a budget of $5.8M. Net income is over budget due to under budget department spend and higher than budgeted revenues, relative to fuel and purchased power costs. Budget Status YTD was 14% underspent, a large factor being $SM due to the VEBA plan market response. YTD Capital Budget, excluding Delta Energy Park (DEP), was a higher spend due to a shift in timing of a boiler back up project at REO. Delta Energy Park, due to COVID19 and some timing from a large construction manager invoicing, was a little under spend but is expected to increase. DEP series bonds price had nine times the offerings compared to bonds to be sold. Chair Lenz asked what the estimate of the COVID19 impact was on the DEP budget. Ms. Shawa and GM Peffley responded that the impact was $10M and the project is still budgeted at$495M. YTD RoA is 3.60%,which is greater than budgeted YTD RoA of 1.69%, due to over budget net income, as a result of the factors noted above. Debt to Total Assets was a little high, as expected, due to bond issuance and the Bad Debt Ratio is high largely because the allowance was increased at the end of the year. The other three Ratios are beating the benchmark. Employee count YTD is 690 and the budgeted YTD is 731. In Payroll Data the Labor$/Hours Worked metric has remained in line with year prior. Overall YTD benefits costs are underbudget,due to BWL experiencing lower than expected medical claims. Commissioner Goodrich asked how many positions are open that would be filled if there were qualified applicants. Ms. Shawa responded that there are about 25 positions for which HR is actively recruiting. GM Peffley responded that journeyman/lineworker and IT positions are more difficult to fill. Bi-Annual Internal Audit Management Response Report Out Finance Manager, Mr. Scott Taylor, presented the Bi-Annual Internal Audit Management Response Report Out. Mr.Taylor stated there are two open items and six items that have closed on the report. The first open item is a recommendation to standardize and centralize storage of purchasing documentation. The reason it is still open is that the training for this item is rolling out this January. The second open item is the development of a BWL Performance ERM Status Report. The reason it is still open is the remaining action of finalizing the measures of the report and it is expected to be completed by the end of February 2021. Internal Control Program Overview CFO Shawa introduced Ms. Elisha Franco, Senior Internal Control Analyst, who presented the Internal Control Program Overview. Ms. Franco described the function of the Internal Control Department as a means by which an organization's resources are directed, monitored and measured to prevent and detect fraud and protect the organization's resources. Ms. Franco explained the differences between the internal control function and the internal audit function. Ms. Franco provided the 2020-2021 work plan of reviewing remote work logs, customer projects, reconnection fees, and Fleet fuel operations. Commissioner Thomas asked whether the Senior Internal Control Analyst position was a new position. Ms. Franco responded that it was a vacant position before she filled it. Commissioner Ross asked Ms. Franco to provide insight to how internal control interacts with the internal auditor. Ms. Franco responded that internal control and internal audit meet biweekly and internal control provides information to management. Chair Lenz asked if internal control has its own monthly schedule of items to monitor. Ms. Franco responded that there are quarterly items to be reviewed every year and additional items can be added by management. Chair Lenz also asked if additional staffing will be needed to conduct the reviews. Ms. Franco responded that currently staffing is sufficient. Internal Audit Status Report Internal Auditor, Mr. Wesley Lewis, presented the Internal Auditor Status Report. Audit Progress Report Audit Progress Report(Cont'd) Other Items 6YaILEppf➢.mv It VrE PcfrvrtN.In XPNnSyllfallY_V]1tP3Y_rn4'9f m m.n t. Update on Ongoing Education and CedlScation of[A Staff E-rw RN4 V. m0 M90 Rlrr m*I re.myus�l nUycS cp S.�4 eeM.m rtrclua++iWlnel a ,id barv.:rieitar K..m ]reE�m>�Erv'el�meN Nnv t011 rllueik Nnwy-.:pet txnJ e+u:e,00M rnrorrar.rN.w:r G'++•�rm.✓o.m+. :rv..r xJr � e...as.n.tir.m.x..r...aa rJ.v+++u u.M.a..a, fig.ewro. J. GRE.NSw.4Vl.➢e19C$_eg3!-Tn:a.11.m51e1M oemEF nM'^* In-ry lu.-. V+1 pvmaN n...erc=New n V.. S. Nmevery N!cM tb:s Wm,R.w Oo-;up.'Caw w:N.so.yvgb m M+a +-�:n:.;�iw.e--•r sr�<a a:rniws�u.0,,,wn.sr„mM.r�r �+n.rr+i•.rca.Rc.,aerrrrn::z r..,l:.n n, n, rvf:. zrr ro s W_ Commissioner Zerkle asked if additional audit personnel have been approved recently. Mr. Lewis responded that IT audit consultants were approved last year for a vulnerability and cyber-securities audit. Other There was no other business. Adjourn Chair David Lenz adjourned the meeting at 8:08 p.m. Respectfully submitted David Lenz, Chair Finance Committee MANAGER'S RECOMMENDATIONS There were no General Manager recommendations. UNFINISHED BUSINESS There was no unfinished business. NEW BUSINESS There was no new business. RESOLUTIONS RESOLUTION 2021-01-01 2021-2025 Strategic Plan: Strategic Foundation Statements (Mission,Vision and Values) & Priorities Strategic Foundation Statements Mission The mission of the BWL is to provide a safe, reliable and affordable utility experience through public ownership, climate consciousness and innovative strategies. Vision The vision of the BWL is a commitment to being the "Utility of the Future" while supporting community growth. The BWL will provide carbon neutral utility products, services and programs with exceptional customer service that are financially accessible to all customers.This will be accomplished by utilizing evolving, cutting-edge technology, as well as partnering with the Greater Lansing region and a highly skilled, diverse workforce. Values Value Meaning Key Attributes Integrity We provide safe, reliable and • Accountable affordable service in an ethical and . Well-being conscientious manner.This • Transparent responsibility includes our impact on Sustainable the planet and people we serve. Innovation We evolve operations by mitigating • Creativity business and environmental risks with . Visionary • foresight and agility. . Impactful • Insightful Inclusion We celebrate and value differences. • Community As a corporate citizen that is publicly . Collaborative owned, contributions from our . Respectful employees and customers are . Balanced instrumental to our success. Initiative We are goal oriented and results • Dependable • driven. • Proactive • • Resilient • Leadership 2021-2025 Strategic Priorities Priority 1: Customer and Community Goal: Enhance the customer utility experience and enrich the community we serve Strategy 1: Measure, monitor and respond to customer feedback and expectations Strategy 2: Provide innovative and cost-effective utility products, services and programs that leverages technology Strategy 3: Support community engagement that includes education,volunteerism and sponsorships Strategy 4: Promote economic development and regional partnerships that create growth and synergy Priority 2:Workforce Engagement and Diversity Goal: Maintain a workforce that embraces safety, is agile, diverse, engaged and prepared to support the BWL's success Strategy 1: Cultivate a Generative Safety Culture Strategy 2: Attract, develop and retain a highly skilled, diverse and culturally intelligent workforce Strategy 3: Cultivate employee engagement that promotes a positive work environment, professional development and career growth with emphasis on succession planning Priority 3: Climate and Environment Goal: Maintain a leadership role in providing energy solutions that support a sustainable planet Strategy 1: Enhance and promote policies, practices and standards that support carbon reduction and a healthy eco-system Strategy 2: Increase renewable energy portfolio and energy waste reduction Strategy 3: Support emerging beneficial electrification opportunities Strategy 4: Enhance sustainable water operations Strategy 5: Educate customers on BWL's sustainable practices Priority 4: Operational Resiliency and Continuous Improvement Goal: Apply principles of operational resilience and continuous improvement to all organizational assets, such as equipment, people, and knowledge. Strategy 1: Identify and respond to opportunities for continuous improvement that balance performance, cost and risk Strategy 2: Apply industry benchmarks and standards reflecting best practices Strategy 3: Identify, mitigate and monitor barriers to providing utility services Priority 5: Financial Stability Goal: Maintain a financially viable organization Strategy 1: Continue to refine our rate structure for existing and new customers Strategy 2: Sustain fiscal and fiduciary responsibility through planning, analysis, policies, practices and internal controls Strategy 3: Pursue opportunities and adopt practices that enhance BWL's competitiveness Strategy 4: Identify, evaluate and implement revenue diversification opportunities Motion by Commissioner Thomas, Seconded by Commissioner Mullen, to approve the Resolution for the 2021-2025 Strategic Plan: Strategic Foundation Statements (Mission, Vision and Values) & Priorities. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. Commissioner Zerkle asked if there was a release date scheduled for the 2021-2025 Strategic Plan. GM Peffley responded that a press release will be sent out within a couple days. Ms. Brandie Ekren responded that a refined document should be ready with two weeks. RESOLUTION 2021-01-02 City of Lansing Annual Board Ethics Training WHEREAS, the City of Lansing (COL) has various boards and commissions that are either advisory or have decision making authority; and WHEREAS, all City boards and commissions are subject to the City of Lansing ethics ordinance, conflict of interest policies, and hold meetings that may be subject to the Open Meetings Act, 15.261 et seq; NOW, THEREFORE, BE IT RESOLVED that, on an annual basis, every Board member of the Board of Water and Light Board of Commission shall obtain training on the ethics ordinance, conflicts of interest, and the Open Meetings Act as Adopted by the COL Resolution #2020-190. BE IT FURTHER RESOLVED that the Office of the Lansing City Attorney shall coordinate such training, and it may take place in person, or via alternative method, at the discretion of the City Attorney; BE IT FURTHER RESOLVED that each year, at the Annual Business Meeting a resolution reaffirming this annual training requirement shall be presented to the Board of Commissioners for consideration, and upon passage shall be submitted to the City of Lansing for compliance confirmation in accordance with COL Resolution #2020-190; BE IT FURTHER RESOLVED that the BWL Rules of Procedure shall indicate the annual training requirements and issues such as allowing for the suspension of duties of a member if the annual training is not completed; Motion by Commissioner Thomas,Seconded by Commissioner Graham,to approve the Resolution for the City of Lansing Annual Board Ethics Training. Roll Call Vote: Yeas: Commissioners David Price, Beth Graham, Deshon Leek, David Lenz, Tony Mullen, Ken Ross, Tracy Thomas, and Sandra Zerkle. Nays: None. Action: Motion Carried. MANAGER'S REMARKS General Manager Dick Peffley provided information on the following items: 1. Delta Energy Plan bond closing has been completed and went smoothly. 2. BWL received Moody's periodic rating review which was half of a page of good news regarding BWL's fiscal responsibility, 3. BWL has been working with the Allen Neighborhood Association on a new micro grid demonstration and BWL may get the naming rights. 4. BWL just started the six-month Clean Energy campaign which runs on local and cable stations. The first two months of the campaign consist of clean energy commercials, the next two months are the Green Wise commercials, and the last two months are the Peffley Solar I Hometown People Hometown Power commercials. COMMISSIONERS' REMARKS Chair Price commented that the links to the commercials on YouTube have been included in the BWL weekly update. Commissioner Leek commended Mr. Patrick Walter of the BWL and Sean Eagan from the State of Michigan Department of Labor for the webinar that was presented on COVID19 Relief, in which there were 250 participants. PUBLIC COMMENTS There were no public comments. ADJOURNMENT Chair Price adjourned the meeting at 5:54 p.m. M.Denise Griffin,Corporate Secretary Preliminary Minutes filed(electronically)with Lansing City Clerk 01-28-21 Approved by the Board of Commissioners: 03-23-21 Official Minutes filed(electronically)with Lansing City Clerk:3-24-21