HomeMy WebLinkAboutBuilding Board of Appeals 2006 Minutes v�� S ING DEPARTMENT OF PLANNING &
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
Ic x 10 BUILDING SAFETY OFFICE
Virg Bernero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
December 12, 2006
The December 2006 meeting of the City of Lansing Building Board of Appeals was
called to order at 2:02 p.m. by Chairman Randall Kamm. The following members were
in attendance:
Randall Kamm, Chairman �a
Donald Heck, Vice Chairman
Dean Taylor c- �-
James Drake
Members absent: None
Staff Present: James Bennett, Secretary It
Brian Davis, Assistant Fire Marshal ��
Doug Halstead, Building Inspector
Brenda Jodway, Recording Secretary
Petitioners Present: David Ferguson
Public Present: None
Chairman Kamm asked for the approval of the November 14, 2006 minutes. Don Heck
made a motion to approve the minutes as amended. Motion seconded by Dean Taylor.
Motion carried.
Old Business: None
New Business:
Case No.: Address: Petitioner:
BBA-013-2006 1309 Turner ST. David Ferguson
Randall Kamm introduced Mr. Ferguson who is requesting that he be permitted to
provide fire sprinklers in lieu of emergency escape and rescue openings in some
sleeping rooms of certain dwelling units.
Building Board of Appeals Minutes Page 1
December 12,2006
Jim Bennett reminded the Board members that these are the same units that were
brought before the Building Board of Appeals as case BBA-001-2005 on April 12, 2005,
that were ruled as four detached duplexes. He said these are the ones on Turner Street
with their backs facing the river.
Randall Kamm asked if they were new construction and Mr. Bennett responded yes.
Mr. Kamm asked Mr. Ferguson if there is a problem in providing emergency escape and
rescue openings.
Mr. Bennett explained that the original design had three stories; the lower story had a
garage stall for each duplex and laundry rooms and stairways up to the two units. Both
of the units had balconies off from the back. The second floor balconies on the
drawings were open. A change was made during the construction and without prior
approval, they closed the balconies in. Now the bedroom that is behind the balcony no
longer has an emergency escape and rescue opening directly to the outside and no
longer complies. So Mr. Ferguson is here to request to allow this change. He is
proposing to sprinkle the buildings with a R-13 system. If these were R2 Apartment
buildings, there is an exception in the Michigan Building Code that would allow that. But
since these are Duplexes they are R3 and are under the Michigan Residential Code
which does not contain that same exception. So he is coming to the Board of Appeals
to propose an alternative method to meet that requirement by sprinkling which would
otherwise not be required in an R3.
Mr. Bennett said that the Building Safety Office and Fire Prevention are in support of
this appeal because it's quite apparent that if it's good enough for an apartment building
then it's good enough for a single family residence. We do have a couple conditions
that we would like attached.
After additional discussion, Don Heck moved to approve the use of fire sprinklers in lieu
of emergency escape and rescue openings in certain second floor dwellings of the
Turner Street development; including units addressed off from Dodge River Drive with
the conditions set for in Attachment A as revised. Seconded by Dean Taylor, Motion
carried unanimously.
Other Business: None
Public Comment: None
At 2:47 p.m., Don Heck moved to adjourn. Motion seconded by James Drake. Motion
carried.
Res pec submitted,
James Bennett, Secretary Draft date: December 18, 2006
Approved date: (`/��� 9, g 0 o
cc: Mayor's Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file-original
Building Board of Appeals Minutes Page 2
December 12,2006
Approved by the Board: January 23, 2007
MINUTES OF THE BOARD OF COMMISSIONERS REGULAR MEETING
LANSING BOARD OF WATER AND LIGHT
Tuesday, November 28, 2006 rpu� n1
The Board of Commissioners met in the Boardroom of the Administrative Offices, 1232 ft*0
Drive, Lansing, Michigan. ✓
Present: Commissioners Gary Calkins, Robert Cochran, Joseph Graves, Semone James
(teleconference), Julee Rodocker and Robin Smith.
(Note: 41h Ward Vacancy exists.)
Absent: Commissioner Santiago Rios
The Secretary declared a quorum present.
Chairperson Smith asked all to rise for the Pledge of Allegiance to the Flag.
Chairperson Smith called the meeting to order at 5:39 p.m.
APPROVAL O F MINUTES
By motion of Commissioner Calkins, seconded by Commissioner Graves the minutes of the
October 30, 2006 special board meeting were unanimously approved.
PUBLIC COMMENT
THE CHAIR ANNOUNCED THAT MEMEBERS OF THE PUBLIC ARE WELCOME TO
SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER SUBJECT
NOW, OR AT THE END OF THE MEETING.
Judith Mulha, Friends of Francis Park noted that the purpose of their organization is to promote
and enhance Francis Park, which was established in 1908. In 2008 they will celebrate the parks
1001h birthday. Ms. Mulha requested the Board's participation in planning the celebration in two
regards: 1) advice on returning a water feature to the park and 2) suggestions on how to promote
the return of the river aspect to the park. She went onto state that over time tree growth has
occurred which now covers what used to be a clear view of the river. Ms. Mulha also reported
that Michigan State University's School of Architecture is working on a new master plan, which
they have not had in the past 20 years. She would like to engage the BWL to discuss partnership
possibilities for the upcoming community project.
Board Mtg.Minutes
November 28,2006
Page 2 of 37
June Kneostman, 1521 Cambridge Road of the Garden Club of Great Lansing reported that they
have never really worked with the City in the past and the Francis Park project would be the first.
They have worked on several other projects in the area such as, the MSU children's garden and
the Lansing Public Library Japanese viewing garden. Ms. Kneostman noted that they typically
direct their efforts to people and projects that are interested in beautification and in making the
City a more attractive place to live and visit. She went onto state that due to financial problems
park maintenance has decreased and the Francis Park rose garden is in need of attention as
activity use has dropped by 50%. Ms. Kneostman advised that the MSU Department of
Landscape Architecture met with the City of Lansing's Park Department at Francis Park. After
said meeting, she noted that MSU agreed to work with City Council, community participants and
students in developing a master plan that would incorporate everyone's suggestions. Ms.
Knoeostman invited the BWL to participate with them in undertaking this project. Brochures
and literature were given to Secretary Jones to keep on record and distribute to the
Commissioners.
COMMUNICATIONS
None.
COMMITTEE REPORTS
esolution 200611:4
Joint Meeting
Lansing City Council and
Board of Water and Light Commissioners
November 1,2006
Chairperson Smith called the joint meeting to order at 7:49 a.m. The meeting was held at the
Radisson Hotel, 111 North Grand Avenue, Lansing.
Councilmember's Present: Joan Bauer, Kathie Dunbar, Brian Jeffries, Harold Leeman and,
Carol Wood. Absent: Councilmember's Sandy Allen, Tim Kaltenbach, and Randy Williams.
Commissioners Present: Gary Calkins, Robert Cochran, Semone James, Santiago Rios, Julee
Rodocker, and Robin Smith. Absent: Commissioner Joseph Graves.
(Note: 41h Ward Vacancy exists.)
City Staff Present: City Attorney Brigham Smith and Mayor Chief of Staff Jerry Ambrose.
BWL Staff Present: Interim General Manager Dick Peffley, Sr. Vice President of Operations
Bill Cook, Manager of Finance and Planning Sue Flores, Interim Internal Auditor Charles
Moore, Corporate Secretary Rhonda Jones, and Governmental Affairs Analyst Calvin Jones.
The purpose of the joint meeting was for the BWL to present an update to City Council on the
following topics:
1. General Manager Selection Process. Board Chair Smith reported that a request for proposal
(RFP) seeking Executive Search Services for the purpose of obtaining assistance in hiring a
General Manager for the BWL was sent to respective bidders on October 25, 2006. Sealed
Board Mtg.Minutes
November 28,2006
Page 3 of 37
proposals are due back to the BWL by November 10, 2006. Upon selection of an Executive
Search firm the Commissioners will proceed with the General Manager selection process.
Councilmember Wood asked if the process would be similar to the last one? She also asked if
the General Manager would have to reside in Lansing?
Board Chair Smith responded by stating yes to both questions and also advised that the process
would be shorten. She went onto report that the model previously developed was adopted by
APPA.
2. Human Resource Audit Update. Board Chair Smith advised Council that in August 2006,
Michael Goree of Growth Strategies Consulting, Inc was awarded the RFP to conduct the
Human Resource Audit. Mr. Goree has since reviewed several BWL documents and met with
the Commissioners and several employees including union representatives. A final report is
forthcoming and tentatively scheduled for delivery by early December 2006.
Commissioner Cochran also explained that Dick Peffley, Interim General Manager has given Mr.
Goree full access to the organization. During the audit he has met with 75 non-bargaining and
100 bargaining employees. Commissioner Cochran went onto report that Mr. Goree is very
frank and he has received positive feedback from employees regarding their interactions with
Mr. Goree. Commissioner Cochran went onto state that there is an issue with the Rules of
Procedure since the current version has not been approved. However, it was suggested that upon
completion of the current review each Commissioner would speak to their respective
Councilmember counterpart in encouraging the adoption of the current guidelines.
Commissioner Rios advised that the Rules of Procedure would not affect the audit since this is
not an investigation but an opportunity to review the process and procedures.
Board Chair Smith advised that the Human Resource department has been very receptive to the
audit and in working with Mr. Goree.
3. Collective Bargaining Agreement. Board Chair Smith reported that the IBEW Local 352
ratified the union contract on October 18, 2006 and the Board approved it at a Special Board
meeting on October 31, 2006. The contract represents a two-year extension that was signed and
approved prior to its expiration date. Board Chair Smith went onto commend everyone for their
participation in the negotiation process.
Interim General Manager Peffley also stated that the contract was different as it included a
healthcare taskforce of which some individuals have already attended a seminar on the topic. He
went onto state that he will work with Joseph Davis, Business Manager of IBEW Local 352 and
Jim Dravenstat-Moceri, Executive Board member of IBEW Local 352 in addressing the
ambiguous contract language. Mr. Peffley also stated that trying to change the contract language
would have made the process more difficult whereas, the method they are utilizing will attempt
to make it a more positive experience.
4. Tree Trimming. Mr. Peffley reported that the BWL would finish its first cycle of tree
trimming by June 2007. He also stated that the next cycle should not be as harsh as the first one
and therefore, it should not warrant as many complaints. After visiting North Fairview and
speaking to area residents, he requested the tree trimming crew to return that evening to pick-up
Board Mtg.Minutes
November 28,2006
Page 4 of 37
the remaining debris. Mr. Peffley went onto state that a meeting with the City Forester is
scheduled for November 71h and Mark Nixon, Communications Director is coordinating a
community meeting for further discussion.
City Council expressed concerned over pending tree trimming areas, the relationship between the
BWL and the City Forestry department, and policy.
Staff explained that the BWL is open to any suggestions including that of working with the City
Forestry department as suggested by Councilmember Dunbar. It was also noted that the Forestry
department is must be notified anytime the BWL needs to cut a tree limb 6 inches or larger in
diameter or if a tree must be removed. The notification process was followed in the North
Fairview situation. However, there is agreement between the contractors and the City Forester as
the whether or not more than 6 inches were cut.
Councilmember Baur stated that power companies in other areas have been sued to prevent the
cutting of trees in nice neighborhoods.
Joseph Davis, Business Manager of IBEW Local 352 stated that there is a tight rope in clearing
areas and as such, tree clearing is important to reliability and safety. He went onto state that an
ice storm will often determine where tree trimming needs to occur.
Commissioner Rios advised that we must work hard to develop the process and balance
efficiency with what is done. He went onto state that we are not in an ice storm situation right
now and so there is time to look at the issue. Commissioner Rios noted that the BWL might
want to consider working with a local firm as opposed to an out of state contractor.
Board Chair Smith commended everyone for the dialogue on this issue.
Council President Leeman asked if tree trimming is conducted all year round?
Bill Cook, Sr. Vice President of Operations responded by stating yes and also advised that more
tree trimming work can be done during the winter months.
5. Lead Water Services Replacement Program. Board Chair Smith reported that as of
September 30, 2006 of the 12,919 services needing replacement, 3,315 have been completed.
She went onto state that the BWL is currently ahead of schedule and 26% of the replacement
work is complete.
Councilmember Jeffries inquired into the compaction aspect of the roadway.
Mr. Cook advised that street repair is 11.5% of the total cost and by fiscal year end the BWL will
have spent$13,000,000 of which compaction is a large part.
Councilmember Woods asked if the BWL restores the right away and if the 2003 policy is being
followed?
Mr. Cook stated that the BWL is working with the City Planning Department in regards to
restoration issues and also advised that he could look into the policy that Councilmember Woods
is referring to.
Board Mtg.Minutes
November 28,2006
Page 5 of 37
Councilmember Jeffries asked if the process is to use sod or seed?
Mr. Cook reported that the BWL uses Spartan seed and compacts to standard.
Council President Leeman asked if the BWL completes the replacements when the City replaces
a road? He also stated that he notices that sometimes the area sinks after the replacement work
has been done.
Mr. Cook stated that the BWL works closely with the City to coordinate that effort. He also
noted that there is a practice in place and not a policy. He went onto report that a compaction
test is done before the fill. Mr. Cook also advised that the sinking area maybe a temporary patch
due to economies of scale and a permanent patch would be completed at a later date.
Council President Leeman asked BWL staff to verify if the work is done within a 30-day
timeframe.
Councilmember Woods departed at 8:31 a.m. due to a prior obligation.
6. Integrated Resource Plan (IRP). Board Chair Smith reported six recommendations from
Sargent & Lundy's findings regarding the Integrated Resource Plan that are as follows:
• Over the next 5 to 10 years, continue status quo electric generation operations and
maximize the value of the excess generating capacity
• Fully evaluate the option to retire the Moores Park units
• Implement a more comprehensive condition assessment program for the Eckert, Erickson
and Moores Park units
• Evaluate selective additions of emission controls, but use emission allowance purchases
as the primary means of complying with CAIR and CAMR
• Consider ownership or long-term power purchase from large wind power projects
• Consider the option of starting to add new generating facilities within the next 10 years to
address the need for better long-term balance in the age and technology mix of the BWL
generating fleet
Mr. Peffley reported that the IRP was an extensive one-year project with a reputable company
(Sargent &Lundy) that indicated that BWL maintenance is in the upper quartile. The current
capital investment strategy also revealed that Eckert units 1-3 are ok until 2015. The BWL is
presently in a good position that allows capitalization of sales and wholesale. Mr. Peffley added
that they would also look at adding base load generation and develop a plan for the future.
Mr. Cook noted that the Governor has spoken a great deal about renewables and the IRP
indicated that the BWL should start to look at those items, which they are to do.
Commissioner Calkins asked staff to comment on the steam issue.
Mr. Peffley noted that General Motors was 70% of the BWL's steam load, which represented
one of the largest steam contracts in the country. Recommendations regarding the steam system
will be forthcoming in the near future.
Commissioner Rios asked staff to speak to the issue of environmental regulations.
Board Mtg.Minutes
November 28,2006
Page 6 of 37
Mr. Peffley reported that there are no pending environmental regulations that would shut down
BWL units. There are some expenses involved and testing is currently underway.
Board Chair Smith advised Council that BWL staff is regularly updating the Commissioners to
make them aware of any potential changes that may affect the way they conduct business.
Jerry Ambrose, Mayor Chief of Staff stated that he appreciated the 30% steam rate increase as
oppose to 65%. He went onto ask what type of feedback is the BWL receiving from customers?
Mr. Peffley reported that they are scheduled to bring forth a plan within 30-days relative to steam
recommendations. He went onto state that they did not want to make a request for another 30%
rate increase.
Mr. Cook further advised that the BWL is still in the evaluating process of cutting cost and
finding other uses for steam.
Commissioner James asked staff to look at alternative uses for steam such as ethanol. She went
onto state that Michigan State University (MSU) is in the process of developing a potential plan
to develop the product in the Lansing area.
Council President Leeman asked about the status of taking responsibility for MSU's utilities?
Mr. Cook responded by stating that periodically MSU contacts the BWL regarding the
possibility of obtaining water service. However, MSU recently refurbished their entire steam
and electric systems and thus received grants from the State of Michigan to pay for the cost.
Maintaining control of their own system allows them the opportunity to avoid the out of pocket
costs that are associated with changing the utilities to BWL.
Councilmember Jeffries asked if there is an option to consider the crossover (or subsidization) of
utilities?
Mr. Peffley indicated that that issue would be addressed in the proposal.
Mr. Ambrose asked if chilled water has been reviewed?
Mr. Peffley responded by stating that chilled water is primarily an issue of too much load relative
to demand. If steam costs are decreased then it may help but there is nominal room for
improvement.
Councilmember Jeffries noted that the BWL must be sensitive to whether or not residents are
subsidizing the downtown area and the suburbs.
Board Chair Smith advised that although the plan would be all encompassing she believes that in
theory no cross subsidization was adopted to avoid subsidiary issues.
Commissioner Rios departed at 8:53 a.m. due to a prior obligation.
Board Mtg.Minutes
November 28,2006
Page 7 of 37
7. Overview of BWL Finances. Sue Flores, Manager of Finance and Planning reviewed the
financial report for the fiscal period of July 1, 2006 thru September 30, 2006. During the review
Ms. Flores reported that net income is $10,255,000, wholesales sales are up, and the operating
and maintenance budget is lower than the original projected expenses. It was also advised that
the BWL is selling its excess sulfur dioxide (SO2) environmental credits to other utilities.
Staff explained to Council that there are economies of scale that allow the BWL to rely on the
cap and trade mechanism as a means to help maintain the existing units. It was also reported that
nationwide each state has a pollution limit that it can reach. In addition to selling excess SO2
credits, the BWL currently purchases nitrogen oxide (NOx) credits.
Councilmember Dunbar expressed concern over the fact that excess pollutant credits are sold as
opposed to rewarding organizations by another means besides excess credit sales. She went onto
ask staff where are the credits being sold and is it affecting Michigan?
Mr. Peffley responded by stating that that the credits are sold out of state. He also advised
Council that the sale of pollution credits is a federally mandated program managed by the
Department of Environmental Quality. Mr. Peffley went onto explain that Michigan
environmental regulations are stricter than that of other states, which helps the BWL achieve its
goal.
Ms. Flores continued the finance report and advised that due to a change in administrative
procedures the BWL is projected to save $500,000 on health insurance. However, she explained
that the BWL would not receive a check for the savings amount, as this is a reduction in the
BWL's increase against budgeted items.
Board Chair Smith recommended a full financial review take place with City Council at a
Committee of the Whole meeting so that they may have talking points relative to the budget.
Commissioner Cochran asked if it is correct to state that this is the best wholesale season ever?
Mr. Cook replied by stating that the wholesale market has been good essentially for the reasons
pointed out the IRP. There are few coal plants being built at this time and so those in need of
generation are purchasing power on the wholesale market.
The Commissioners advised Council that 30% of the revenue was from wholesale sales due to
the availability of excess capacity. Currently, plants are not being built due to the associated
costs and environmental regulations.
Councilmember Dunbar asked if it time to start looking at wind generation or clean generation,
which can also become a tourist attraction or a source of education?
Mr. Davis explained the reliability issues related to wind generation.
8. Commissioner Seat Vacancy. Council President Leeman reported that Mayor Bernero is
reviewing candidate names and will submit them for approval.
Commissioner Calkins reiterated the need to obtain timely City Council approval for the
amended Rules of Procedure once they are presented to the City Attorney's office and then
Board Mtg.Minutes
November 28,2006
Page 8 of 37
forwarded to City Council. It was further indicated that prior submitted guidelines had not yet
received approval. However, since the Board is in the process of reviewing the existing
guidelines then new amended rules may be forthcoming.
9. Other
a. Ethanol Plants. b built in t
state of b
being,bypFoduet. He also stated that for-ty two ethanol plants aFe eur+endy
built thFoughout the
the teelinelegy is not Yet Feady te build it on an eeonoinie niod
Commissioner Cochran reported that four ethanol plants are under construction in our region, 42
plants nationwide. These plants are going to put upward price pressure on corn supplies, and will
also put downward price pressure on the by-products of the process. Research is ongoing to
economically use cellulose (ic) as a raw stock for conversion to ethanol. Then, leftovers from
farming, forestry, and other agricultural by-products can be used for ethanol production. This
research holds promise, but is not yet in hand.
Commissioner Smith stated that they are in the process of looking at this topic with MSU and the
BWL wants to be at the table when the discussions begin.
Councilmember Bauer stated that Council and the Commissioners should continue
communications because their quarterly meetings and partnership relationships are very
important. She went onto note her appreciation for Calvin Jones and operational access to Mr.
Peffley.
b. Grosbeck 3 Easement. Council President Leeman asked about the status of the Pat
Linderman Grosbeck 3 easement as it is moving along and he would like to see the BWL sign off
on the project. He also inquired into the line pit on Aurelius Road.
Staff responded by stating that BWL General Counsel is working on the project. In response to
Aurelius Road, two of the pits have been moved and they are working with the Department of
Environmental Quality to see what can be done with the other pit.
c. I-496 Steam Leaks. Council President Leeman asked if there would be any I-496 steam leaks
this season.
Staff explained that it depends on how much steam GM takes because it is difficult to regulate
steam traps. However, they do have it under better control than last year and once the plant is
closed then they will shut down the line. Staff reported that they are hesitant to invest additional
capital in a line that will soon be closed.
d. Delta Township Survey. Staff reported that they are working with Delta Township in
addressing contractual concerns relative to the water agreement. Delta had been relying on the
BWL to address issues outside of the bounds of the contract. Nevertheless, they are working to
correct the situation. The contractual period is indefinite and the BWL thinks that the fees
should increase by approximately 90%. The next step of the process is nonbinding mediation
and if that does not work then they could go to court. Staff also advised that a cost of service
study was conducted. However, the township has hired a consultant to review the data and
subsequent findings.
Board Mtg.Minutes
November 28,2006
Page 9 of 37
The meeting adjourned at 9:33 a.m.
Motion by Commissioner Cochran, seconded by Commissioner Graves, to receive the Joint City
Council/BWL Commissioner Report as presented.
Action: Carried unanimously
esolution 2006-II-2
COMMITTEE OF THE WHOLE
November 14, 2006
The Committee of the Whole of the Board of Water and Light met at the Executive Offices,
Lansing beginning at 4:00 p.m. on Tuesday, November 14, 2006.
Commissioner Rios called the meeting to order and asked the secretary to call the roll. The
following members were present: Commissioners Gary Calkins, Robert Cochran, Joseph
Graves, Semone James, Santiago Rios, Julee Rodocker and Robin Smith (arrived at 4:25 p.m.).
Absent: None. (Note: 41h Ward Vacancy)
Public Comment
There were no public comments.
New Designated and Alternate Designated Rep for the Acid Rain Program
Amy Cavanaugh, General Counsel presented the Board with a resolution in which new BWL
designated representatives would be appointed for the purpose of reporting to the Environmental
Protection Agency under the Clean Air Act. The Clean Air Act requires that the resolution be
presented to the owners of the affected source to designate the respective representatives.
Motion by Commissioner Calkins, seconded by Commissioner Graves to accept staff's
recommendation to appoint Mary Dwyer and Robert Van Ells as the new designated and
alternate designated representatives for the Acid Rain Program.
Carried unanimously.
Discussion of Rules of Procedure
Ms. Cavanaugh reviewed the suggested changes to the Rules of Procedures proposed by the Ad
Hoc Committee from a previous meeting held on October 17, 2006. The discussion involved
issues related to the number of members needed for a committee, public hearing information, and
electronic equipment disbursement.
In addition to the discussion, Commissioner Cochran advised that a cell phone policy relative to
BWL employee usage is in the process of being developed but is not yet complete. Ms.
Cavanaugh stated that she is unaware of the policy. However, Dick Peffley, Interim General
Manager explained that they are in the process of completing a policy that addresses standby
Board Mt&Minutes
November 28,2006
Page 10 of 37
employees that would eliminate the use of pagers, reduce standby time and overall cost. He went
onto explain that the Board as a whole is covered under the BWL's existing cellular contract.
Motion by Commissioner James, seconded by Commissioner Graves to move the proposed
changes to the Rules of Procedure to the Board for a full vote.
Discussion: The discussion primarily centered around the proposed changes to the number of
votes needed for extraordinary measures, committee chair appointments, and retaining
consultants without prior Board approval. The Commissioners explained that continuing the 5-
vote measures on items of extraordinary circumstances is idealistic as it maintains a certain level
of difficulty in passing or failing certain measures. However, others expressed concern in that
Board vacancies can cause an impasse in addressing various matters. Therefore, it was
suggested that the Rules of Procedures be changed to reflect voting measures for the majority of
the sitting Board members as opposed to a majority of the Board seats.
In an effort to reduce exclusionary practices and allow for a more democratic process the
proposed guidelines suggested changing the method in which committee chair appointments are
conducted. During discussion, concern was expressed regarding the perceived convoluted
process for which committee chair appointments would take place if the proposed language
changes were adopted.
Commissioner Smith introduced a friendly amendment to the motion in which the proposed
changes to the nominating process (committee chair appointments) would be removed from the
amended Rules of Procedure.
Commissioner James accepted the motion as amended and further advised that the Ad Hoc
Committee would decide whether or not to revisit the issue of committee chair appointments and
bring forth a new recommendation if deemed necessary.
Carried unanimously.
PURPA Requirements (Smart Metering)
Motion by Commissioner Calkins, seconded by Commissioner Cochran to move the PURPA
requirements (Smart Metering) recommendation to the full Board.
Carried unanimously.
Update on Safety Council Report
Jack Hill, Director of Safety provided an update to the Board regarding BWL's safety record.
He advised that the Safety Council suggested the BWL avoid trying to initiate too many projects
at once. There are nine major categories and a 30-month program to implement the initiatives.
Input and participation is obtained from the Joint Safety Council (JSC) that includes executive
staff and the Process Advisory Committee (PAC), which is made up of equal levels of bargaining
and non-bargaining employees on different levels. Mr. Hill went on to report that they found
that the BWL has practices in place but they cannot validate them. He also advised that the year-
to-date safety incident rate through October 2006 is 6.3, the target record (an average of
Consumers Energy and Detroit Edison) is 4.9, and the year end total for 2005 was 9.5. Mr. Hill
Board Mtg.Minutes
November 28,2006
Page l 1 of 37
went onto explain that employees with three infractions come before a management review
board to discuss and review the occurrence with the employee.
Commissioner Rios asked if the BWL has a process in which to audit whether or not the BWL
has the equipment in place to make sure that we are being safe?
Staff indicated that Delivery has a list sheet for their trucks that show whether or not the needed
safety equipment is in place.
Commissioner Smith asked if the BWL is considering the implementation of a reward system
based on finding the safety errors in the "What's Wrong With This Picture" pictorial in the
Pipeline?
Mr. Hill responded by stating yes and advised that they are looking at changing the process so
that employees will be required to tie the errors back to the safety book policy number to
encourage familiarity with the guidelines.
Commissioner Rodocker asked if there is a policy in place wherein if a person has regular
injuries then they could be terminated due to liability?
Mr. Peffley explained that they do not have a policy in place. However, it is reviewed on a case-
by-case basis.
Commissioner Rodocker also asked if there are chronic persons within the organization?
Mr. Peffley advised that there are a few persons with chronic safety issues and they are currently
working with those individuals.
BWL Growth and Expansion
Bill Cook, Senior Vice President of Operations reviewed the presentation on BWL's growth and
expansion efforts. The presentation included information on strategies, standardized evaluations,
community economic development participation, governmental collaboration, 425 agreements,
marketing process, rules and regulations, new steam and electric customers, growth areas, steam
market incentives, customer service, energy education and products and services. During the
presentation several questions were raised relative to expanding the BWL's relationship with
Michigan State University (MSU), steam development projects, and branding. As such the
following questions were asked and answered:
Commissioner Smith asked if the BWL fostered a better relationship with MSU then would those
actions enhance the possibility of MSU taking water service from the BWL?
Mr. Cook responded by stating no and explained that the cost of taking water service is a strong
deterrent to MSU.
Commissioner Graves asked if the BWL is placing new downtown development projects on
steam?
Board Mtg.Minutes
November 28,2006
Page 12 of 37
Mr. Cook explained not the newer projects as it depends on whether or not it is economical for
the customer. He also advised that several customers are backing away from steam due to the
potential rate increases.
A question was raised in regards to offering broadband services at which staff reported that it
typically works best in areas that are not saturated with existing services.
Commissioner Rios stated that the presentation was good. However, they need to look at steam
because they are not in a position to eliminate the service and yet need to make it work. He also
indicated that the BWL needs to improve its marketing efforts so that everyone knows that the
BWL is not just a utility company.
After further discussion, the Commissioners expressed a strong desire for the BWL to improve
its branding position of products and services.
Commissioner Graves also stated that the question of whether or not steam will exist or cease is
still present as steam is not an open or shut case.
Commissioner Rios further expounded by stating that he did not intend to imply that steam is an
open or shut case, only that the BWL is not in a position to walk away from the service.
Parameters of the Interim Internal Auditor's Scope
Charles Moore, Interim Internal Auditor reported that he is in the process of obtaining a list of
items to prioritize and he has also met with Dick Peffley, Interim General Manager to discuss
those matters. It should take approximately 30-days to compile those items and as such he has
begun auditing projects in which the external auditor has expressed prior concern.
Commissioner Smith departed at 7:00 p.m.due to a prior obligation.
Commissioner Calkins stated that he believes the current interim auditor should establish
parameters for what the new permanent auditor should review upon their hiring into the BWL.
He also inquired into the items that the previous auditor, Glenn Holloway suggested prior to his
departure.
Commissioner Graves advised that he is not trying to dismiss the external auditors report.
However, he is reliant on Mr. Moore or persons like him due to his lack of expertise in this area.
Commissioner James explained that the scope of work should involve Mr. Moore working with
Mr. Peffley and developing the parameters for the new internal auditor. She also stated that she
wants to make sure that the unions' needs are addressed during the process.
Jim Dravenstat-Moceri, IBEW Local 352 Executive explained that he cannot say what the unions
needs are specifically. However, they are very interested in what is said relative to the audit.
Mr. Moore stated that they did not start the process until after he had spoken to Mr. Peffley.
However, they need to make sure that the items that keep appearing on Plante &Moran's auditor
reports are corrected.
Board Mtg.Minutes
November 28,2006
Page 13 of 37
Commissioner Calkins stated that he would downplay the audit and create structure.
Commissioner James commented that she wanted to ensure that the Board has the deliverables at
the end of the project and she would also like input from the other Commissioners.
Mr. Moore stated that the number one priority is to get that process in place as there is a
minimum number of audits that you should receive everyone year such as, construction and
investments. He also stated that they are not just doing audits to occupy their time but to
complete that task while reviewing the process.
Commissioner Rios advised that the following items should be prioritized:
1. Review previous internal auditor's items, list of things changed—why and why not
2. Overall process audit plan
3. Review material list
Mr. Moore indicated that he would add an analysis of the financial projections to his existing
projects.
Commissioner James stated that she would convene with the Finance Committee and Mr. Moore
to discuss and submit a plan to the Board for approval.
Six-year Forecast
Mr. Peffley stated that the revised six-year forecast is not a recommendation because there are
policy ramifications. It is an indication that they can live within the confines of the budget and it
does not place a burden on the ratepayers. He also stated that they have the capability to plug in
utility rates and a rate of return to determine viable numbers. Mr. Peffley also advised that the
revised forecast demonstrates that the BWL can live within its means with modest rate changes.
Commissioner Graves suggested that instead of reviewing the forecast, he recommends that Mr.
Moore review the data and provides input as to what has been presented. Once the review has
been submitted then they will reschedule another meeting to discuss the forecast in detail.
Commissioner Rios agreed with the suggestion and advised that they also need to identify policy
issues to fully discuss at a later date.
Commissioner Calkins responded by stating that they need to develop a philosophy on steam.
Commissioner Rios replied that a philosophy is a policy issue and that they also need to
determine their rate differential between the BWL and other utilities.
There being no further business the meeting adjourned at 7:20 p.m.
Respectfully submitted
Santiago Rios, Chair Pro Tem
Committee of the Whole
Motion by Commissioner Cochran, seconded by Commissioner Graves, to receive the
Committee of the Whole Report as presented.
Board Mtg.Minutes
November 28,2006
Page 14 of 37
Action: Carried unanimously.
MANAGER'S RECOMMENDATIONS
esolution 2006-11-3
2006 Integrated Resource Plan, Policy Assumptions and Action Plan
WHEREAS, the Energy Policy Act of 1992 requires utilities with annual sales exceeding 500
GWh to consider integrated resource planning; and
WHEREAS, the Board of Water and Light adopted policy 19-07, which states that the Board of
Water and Light will employ Integrated Resource Planning as defined in the Energy Policy Act
of 1992; and
WHEREAS, the Board of Water and Light has recently completed an Integrated Resource Plan
for the period 2006 through 2030; and
WHEREAS, the Board of Water and Light commissioners at their October 10, 2006 Committee
of the Whole meeting considered the recommendations of the Integrated Resource Plan, policy
assumptions and action plan.
RESOLVED, that the attached policy assumptions, recommendations and action plan be
adopted.
--------------------
Motion by Commissioner Calkins, seconded by Commissioner Cochran, to adopt Resolution
2006-11-3 regarding the 2006 Integrated Resource Plan, Policy Assumptions and Action Plan.
Action: Carried unanimously.
esolution 2006-11-
Smart Metering and Interconnection Standards as Required by the Energy Policy
2005
RESOLVED, that the Lansing Board of Water and Light previously commenced consideration
of the Smart Metering and Interconnection standards referenced in the Energy Policy Act of
2005; and
FURTHER RESOLVED, that the Lansing Board of Water and Light shall hold a public hearing
to accept public comment on the Smart Metering and Interconnection standards, to be scheduled
in March 2007.
--------------------
Motion by Commissioner Graves, seconded by Commissioner Rodocker, to adopt Resolution
2006-11-4 for the Smart Metering and Interconnection Standards as required by the Energy
Policy Act of 2005.
Board Mtg.Minutes
November 28,2006
Page 15 of 37
Action: Carried unanimously.
esolution 2006-I1-
Designated Representative and Alternative Designated Representative to Comply
with Clean Air Act
RESOLVED, that Mary Dwyer and Robert Van Ells are respectively named the BWL's
designated representative and alternate designated representative for the purpose of reporting to
the Environmental Protection Agency (EPA) under the Clean Air Act; and
RESOLVED FURTHER, that the designated representative and the alternate designated
representative are authorized to bind the BWL by their respective actions, inactions, and
submissions with respect to the Clean Air Act.
--------------------
Motion by Commissioner Rodocker, seconded by Commissioner Graves, to adopt Resolution
2006-11-5 regarding the Designated Representative and Alternative Designated Representative
to Comply with the Clean Air Act.
Action: Carried unanimously.
UNFINISHED BUSINESS
Internal Auditor Search Update. Commissioner Smith reported that this was the time set aside
for Charles Blockett (of Charles Blockett, Jr. and Associates) to come before the Board and
present the credentials for the candidates that applied for the Internal Auditor position. All of the
Commissioners received packets that included detailed data received as a result of the
recruitment strategy. Commissioner Smith went onto state that it was her understanding that one
of their primary objectives was to reduce the candidate pool to five finalists. However, the
Board was not prepared to do and instead asked Mr. Blockett to provide an update and an explain
the next phase of the process. Commissioner Smith charged each Commissioner with selecting
their top 5 candidates and submitting their names to Secretary Jones and Mr. Blockett by Friday,
December 1" so that they may have further discussion at the next meeting. The next meeting is
tentatively scheduled for the Committee of the Whole on Monday, December 18, 2006.
Commissioners Calkins and Cochran support the ideal of reducing the finalist count from 5 to 3
provided that the Board would have discussion regarding the remaining candidates prior to
reducing the number of finalists. The Commissioners agreed to have further conversation on this
topic at their next meeting. Mr. Blockett advised that it would require additional modification to
the plan but that reducing the finalists to three is the Board's decision. He went onto note that in
his experience he has found that five is typically a good pool of candidates. Commissioner
Smith also concurred and reported that interviewing five candidates will give them a good basis
of comparison, especially due to the key position this individual will hold.
Mr. Blockett reported that he initially received 41 applicants of which he narrowed the candidate
pool to the top 10 based on the criteria laid out by the Commissioners. Some of the criteria
included: 1) CPA, CIA or CFE certification, 2) advanced degree and 3) utility experience.
Board Mtg.Minutes
November 28,2006
Page 16 of 37
Thereafter, he narrowed the list to 21 individuals, 18 of which he conducted in depth telephone
interviews. Based on the Board's charge to Mr. Blockett, he reduced the candidate pool to ten
and sent the Board a packet of materials on November 21, 2006 that included said information.
Mr. Blockett stated that it is his understanding that during the December 181h meeting they will
reach consensus on the top 5 candidates and establish interview dates. Once the candidate pool
is reduced to five then he will conduct an extensive background, reference and criminal record
check on each individual. Mr. Blockett noted that the delay in selecting the finalists would
extend the timeline by approximately 2-weeks. After the candidates are selected, he would then
notify them of the pending interviews, remaining process, and also ask for a written report so that
the Commissioners may view their work from different dimensions. Mr. Blockett further
explained that an Advisory Committee consisting of 10 individuals (typically senior
management) would receive training and develop interview questions so that they may conduct
an hour interview with each finalist. After which, a memo would be written advising of their
first and second choices and the rationale behind their decision. The information from the
Advisory Committee would provide additional input and observations for the Commissioners
consideration in choosing the Auditor. Mr. Blockett noted that this is a 2-day process of which
interviews are conducted on the first day and an optional public forum could take place on the
second day. The public forum would consist of allowing each candidate five minutes to talk
about his or her selves and the remaining time would consist of a meet and greet.
In an effort to shorten the process, the Commissioners agreed to eliminate the public forum and
reduce the interviewing time to 1 — 1 1/2 days. Thereby, allowing the Advisory Committee to
interview the candidates with subsequent interviews by the Commissioners.
Commissioner Graves expressed concern regarding the value of the information that would be
received by an Advisory Committee due to the healthy tension between this position and staff.
Mr. Blockett strongly recommended obtaining as much input as possible and he also advised that
the interview questions asked by the committee would be completely different than that of the
Commissioners. It was suggested that receiving viewpoints from persons with varying
backgrounds in the organization maybe helpful. The Commissioners agreed to move further
discussion on this topic to the December 181h meeting.
Action items for December 181h (tentative) meeting date:
• Narrow the finalist pool to a minimum of five candidates (and discuss whether or not to
further reduce the selection to three).
• Determine tentative finalists interviewing dates
• Reach consensus on whether or not to form an Advisory Committee
• Schedule a time and date for Mr. Blockett to conduct training and develop interview
questions with the Commissioners.
NEW BUSINESS
None.
Board Mtg.Minutes
November 28,2006
Page 17 of 37
RESOLUTIONS
esolution 2006-11-
BOARD OF WATER AND LIGHT
RESOLUTION HONORING RONALD C. CALLEN
WHEREAS, it is a pleasure to extend this expression of our thanks and best wishes to
Ronald C. Callen for his service as a Commissioner of the Board of Water and Light; and
WHEREAS, Ronald C. Callen was appointed to the Board of Commissioners on April
20, 1998 as a Fourth Ward Commissioner. This Board wishes to acknowledge his many
contributions to the Board of Water and Light, the City of Lansing and its citizens; and
WHEREAS, Ron served as Vice-Chair, Chair Pro Tem and three times as Chair of the
Board of Commissioners, a member of the Executive Committee since 2000, the Nominating
Committee 1998-99, Finance Committee 1999-2000 and 2003-04, and the Human Resources
Committee 1998-99, 2000-01 (Chair), 2001-03; and
WHEREAS, Ron Callen's commitment to excellence in public service has provided the
Board of Water and Light with outstanding leadership. His expertise includes integrated
resource planning, especially in areas concerning the environment, nuclear power use, high-level
nuclear waste disposal and plant decommissioning; and
WHEREAS, Ron Callen's 25 years of experience in utility regulation and public
involvement has assisted him as a Commissioner to enhance the quality of the Lansing Board of
Water and Light operations and protect the interests of citizens,business, and industry in
Lansing.
RESOLVED, That the members of the Board of Water and Light Commissioners hereby
honor and commend Ronald C. Callen upon leaving this Board with over eight years of
distinguished service. In Regular Session this 281h day of November 2006, we sincerely wish
Ron continued success in all his endeavors.
Moved by Commissioner Smith, seconded by Commissioner James, to approve the resolution.
Action: Carried unanimously
esolution 2006-11-
Resolution by the Board of Commissioners
#2006-11-7
BOARD MEETING SCHEDULE
In accordance with the Board's Rules of Administrative Procedure, a schedule of dates, places
and times for each regular meeting of the Board for the calendar year shall be adopted by the
Board in November.
Board Mtg.Minutes
[November 28,2006
Page 18 of 37
RESOLVED, That regular meetings of the Board of Commissioners are hereby set for calendar
year 2007 as follows, unless otherwise notified or as a result of date conflicts with rescheduled
City Council meetings:
2007
Tuesday January 23
Tuesday March 27
Tuesday May 22
Tuesday July 24
Tuesday September 25
Tuesday November 27
Meetings will be held in the Board Room located in the Board of Water and Light Customer
Service Center, 1232 Haco Drive, Lansing, at 5:30 p.m.
RESOLVED FURTHER, That a notice of the meeting schedule be published in the Lansing
State Journal the week of January 7, 2007.
Motion by Commissioner Graves, seconded by Commissioner Rodocker, to approve the
resolution.
Action: Carried unanimously.
esolution 2006-11-
Resolution by the Board of Commissioners
#2006-11-8
Amend the Rules of Procedure of the Board of Water and Light
RESOLVED, that the Board of Commissioners hereby approves the Rules of Procedure, as
amended, with an effective date of January 1, 2007, subject to City Council concurrence.
RESOLVED FURTHER, that the Rules of Procedure be submitted to the City Attorney for
approval as to form. The City Charter specifies that the Rules shall then be submitted to the City
Clerk for transmission to the City Council for concurrence.
Motion by Commissioner Calkins, seconded by Commissioner Cochran, to adopt Resolution
2006-11-8 regarding the amendment of the Rules of Procedure of the Board of Water and Light.
Action: Carried unanimously.
Discussion: The Commissioners charged Amy Cavanaugh, General Counsel with the
responsibility of ensuring that a copy of the amended Rules of Procedure are simultaneously
given to the City Attorney and City Council. The Commissioners also agreed to contact their
respective City Council counterpart to encourage the expeditious approval of said changes.
Board Mtg.Minutes
November 28,2006
Page 19 of 37
Ms. Cavanaugh responded by stating that the document is traditionally sent to the City Attorney
for approval as to form on then onto the City Clerk. However, there is nothing prohibiting their
suggestion based on the City Charter.
BOARD OF WATER AND LIGHT
OF THE CITY OF LANSING, MICHIGAN
RULES OF PROCEDURE
AS AMENDED 11/28/06
I. MEETINGS
1.1 Regular Meetings
1.1.1 The Board of Water and Light (BWL) Commissioners shall hold
regular bi-monthly meetings on the fourth Tuesday of the month in
the Board Room, 1232 Haco Drive or at such other place, as the
Board shall determine, unless a regular meeting is rescheduled as
provided herein.
1.1.2 A schedule of dates, places and times for each regular bi-monthly
meeting to be held in the calendar year shall be adopted by the
Board during November of each year.
1.2 Special Meetings
1.2.1 Special meetings of the Board may be called by the General
Manager or Corporate Secretary on the request of the Chair of the
Board or on the request of any two members.
1.2.2 Members of the Board shall have at least 18 hours written notice of
a special meeting designating the time and purpose of such
meeting. The notice shall be delivered personally to each member
of the Board or left at his or her usual place of residence or
business by the Corporate Secretary or someone designated by the
Corporate Secretary.
1.3 Rescheduled Meetings
1.3.1 The Chair may reschedule any regular or special meeting.
1.3.2 Notice of any rescheduled meeting shall be given as required
pursuant to Section 1.2.2, and Section 2.2.
1.4 Conflicting Times
All regular Board meetings shall be scheduled to avoid conflicting with
regular meetings of the Lansing City Council.
Board Mtg.Minutes
November 28,2006
Page 20 of 37
1.5 Committee of the Whole Meetings
1.5.1 The Board may convene as a Committee of the Whole upon call by
the Vice Chair or any two members of the Board.
1.5.2 Notice shall be provided in accordance with the provisions for
special meetings.
1.5.3 The Committee of the Whole shall report its recommendations, if
any, for consideration by the Board at a regular or special meeting.
1.6 Closed Meetings
Meetings that are closed to the public may be closed to the public only for
those purposes permitted under the Michigan Open Meetings Act, as
amended.
II. NOTICE OF MEETINGS
2.1 Publication of Dates
A notice listing the dates of the regular meetings shall be published
annually in a newspaper of general circulation in Ingham County at least
three days prior to the time of the regularly scheduled meeting in January.
At the regularly scheduled meetings in November each year, the Board
shall name the newspaper in which the notice shall be published.
2.2 Posting Notice
Notice of all meetings of the Board shall be posted in accordance with
state law.
2.3 Designated Person
The Corporate Secretary shall be responsible for posting notices.
III. QUORUM FOR A REGULAR OR SPECIAL MEETING
3.1 Number Required
The presence of five members of the Board, in person or by telephonic
attendance, shall be a quorum for the transaction of business at all regular
and Special Meetings; provided a majority of the attending members of
the Board are present at the location designated in the public notice.
Board Mtg.Minutes
November 28,2006
Page 21 of 37
3.2 Lack of Quorum
In the absence of a quorum, those present may adjourn any meeting or
hearing to a later date or hold the meeting for the purpose of considering
such matters as are on the agenda. No action taken in the absence of a
quorum shall be valid or effective unless and until ratified and confirmed
at a subsequent regular or special meeting at which a quorum is present
and at which five affirmative votes are given for ratification.
IV. OFFICIAL ACTION AT REGULAR OR SPECIAL MEETINGS
4.1 The concurring vote of the majority of all Members of the Board confirmed by the
City Council shall be necessary for official action and such vote may only take place at regular
or special meetings of the Board on the following items:
4.1.1 Adopting the annual fiscal year budget and any amendments
thereto.
4.1.2 Adopting rates for furnishing electric, water, and steam service.
4.1.3 Appointment or removal of the Director, Internal Auditor, and
Secretary.
4.1.4 Purchase and sale of real property.
4.1.5 Sale or exchange of facilities as set forth in 5-207 of Lansing's City
Charter.
4.1.6 Providing compensation, benefits, conditions of employment, and
retirement plans.
4.1.7 Removal of a Commissioner from service as an officer, except at
the end of the officer's term.
4.2 Except as may be required by law or by section 10.1.4, all other matters
considered by the Board shall require the affirmative vote of a simple majority
of members present at a regular or special meeting.
4.3 The Board speaks through resolutions. A member of the Board may only
speak on the Board's behalf in accordance with its resolutions. See 18.2.3.
V. VOTING
5.1 Roll Call Vote
A roll call vote shall be required for holding a closed meeting as specified
by the Open Meetings Act or upon request of any Board member.
5.2 Unanimous Consent
Board Mtg.Minutes
November 28,2006
Page 22 of 37
If there is no objection to the proposed action, the action may be taken by
unanimous consent, except actions required by roll call vote pursuant to
these rules, the Charter of the City of Lansing, or the law of the State of
Michigan.
5.3 Conflict of Interest
If a Board member has a conflict of interest on an issue before the Board,
he or she shall reveal the conflict, not participate in discussion or any
decision regarding the issue, and shall refrain from discussing the issue
with any other Board member or Staff.
VI. ANNUAL ORGANIZATION
The Board shall organize at its first regular meeting following July 1" or as soon
thereafter as is reasonably convenient, by selecting one of its members as Chair
and, one of its members as Vice Chair, each of whom shall serve until the first
regular meeting in the following July or a successor has been selected.
VII. DUTIES OF OFFICERS
7.1 Chair
The Chair shall preside at all regular or special meetings of the Board and
public hearings conducted by the Board, see that all orders and regulations
are executed and complied with, see that all legal contracts with the BWL
for or in the name of the City are performed, and shall perform such other
duties as may be from time to time lawfully required of the Chair. The
Chair shall also be an ex officio member of all committees of the Board,
unless the Chair is an official member of a Committee. If the Chair is an
official member of a Committee, she or he shall possess all voting
privileges. It shall not be necessary for the Chair to relinquish the chair
for the purpose of participating in debate or for the making of routine
motions and resolutions.
7.2 Vice Chair
In the absence of the Chair, the Vice Chair shall perform all the duties and
have all the powers of the Chair. The Vice Chair shall also preside over
meetings of the Committee of the Whole.
7.3 Past Chair
The Past Chair shall assume the duties of the Chair when neither the Chair
nor the Vice Chair is present.
VIII. CHARTER POSITIONS
Board Mtg.Minutes
November 28,2006
Page 23 of 37
8.1 Director Secretary and Internal Auditor
The Board shall, at its first regular meeting following July 1"of each year,
or as soon as practicable thereafter, appoint a Director, an Internal
Auditor and a Secretary. The Director shall also be known as the General
Manager, and shall be the highest executive officer of the Board of Water
and Light. The Secretary shall also be known as the Corporate Secretary.
The Internal Auditor shall also be known as the Director of Internal Audit.
These positions shall be contract positions, shall report directly to the
Board of Commissioners, and shall serve at the pleasure of the Board of
Commissioners.
8.2 Unless otherwise determined by the Board of Commissioners, contract
reviews for the Charter Position employees shall commence no later than sixty
(60) days prior to the end of the fiscal year and be completed no later than the
start of the next fiscal year.
IX. STANDING COMMITTEES
9.1 Committees
9.1.1 In order to carry out its policymaking obligations, the Board of
Water and Light Commissioners shall meet as often as needed, as
one or more standing committees, in the Board Room, 1232 Haco
Drive or at such other place, as the Board shall determine. Notice
of these meetings shall be provided in accordance with the Lansing
City Charter and state law.
9.2 COMMITTEE CHAIRS
9.2.1 The following standing committees shall be appointed by the Chair:
Finance
Human Resource
Nominating
9.2.2 The Finance Committee shall have oversight responsibility for financial
performance measures and audits, capital expenditures and returns, bond
indebtedness and credit rating, annual O&M budget, rate review, and the
investment policies of the retirement plans.
9.2.3 The Nominating Committee shall at its first regular meeting following July
1" of each year, nominate a slate of officers at its annual organizational
meeting and shall endeavor to rotate officers of the Board annually. The
Nominating Committee may suggest candidates to serve on the Board.
The Board shall review suggestions made by the Nominating Committee
and may make recommendations to the Mayor.
Board Mtg.Minutes
November 28,2006
Page 24 of 37
9.2.4 Ad Hoc Committee shall convene whenever the need arises to address an
issue or topic that would not appropriately fall within either of the other
standing committees and would not require the attention of the Committee
of the Whole.
9.2.5 The Human Resources Committee shall have oversight responsibility for
non-bargaining salary adjustments, employee survey results, labor
relations, performance appraisal review for Board-appointed positions,
Board staff appointments, salary, wages, and employee benefits.
9.2.6 The Executive Committee shall possess the authority of the Board to
direct the management of the affairs and business of the BWL. During the
intervals between the Board of Commissioners' meetings, the Executive
Committee shall assist in the development of the BWL's position on major
issues and submit and recommend this position to the Board for
consideration and action. The Executive Committee shall consider all
matters not specifically assigned to other standing committees. The
Executive Committee shall consider and act upon such other activities as
directed or referred to it by the Board or as otherwise specified in these
Rules.
9.3 Appointment of Standing Committees
The Chair shall appoint the standing committees and such other special
committees as the Board may from time to time establish. The first
member named on each committee shall be the Chair of the committee.
All committees, except the Executive Committee, shall have four (4)
regular members and two (2) alternates who shall serve in the absence of
regular member(s). The Executive Committee shall consist of the Chair,
Vice Chair and most immediate Past Chair and one (1) Commissioner
elected by the Board, whose term shall be concurrent with the terms of the
Officers. If no Past Chair is present on the Board, the Board shall elect a
second Executive Committee member.
The Nominating Committee shall not consist of any members who intend
to run for an officer position.
9.4 Sub-Committees Authorized
The standing Executive Committee shall establish such sub-committees as
deemed necessary.
9.5 Quorum for Committee Meetings
A quorum for a standing committee shall be three.
9.6 Committee Meetings
meetings of standing committees may be called by the General Manager
or Corporate Secretary on the request of the Chair of the Board, Chair of a
committee or any two committee members.
9.7 Committee Reports
Board Mtg.Minutes
November 28,2006
Page 25 of 37
Each standing committee shall report its recommendation, if any, for
consideration by the Board at a regular or special meeting.
Upon adoption of a motion to accept (or approve) a committee report, the
recommendation of the committee becomes the action of the Board;
provided, however, if any resolutions are necessary to carry out the report,
they shall be enacted separately pursuant to section 18.5.
9.8 Committee Resolutions
Committee reports recommending action by the Board shall have
incorporated in the report the necessary resolutions or motions to
accomplish the action.
9.9 Discharge of Consideration
A committee shall be discharged of any matter referred to it by an
affirmative vote of two-thirds of the Board.
X. AGENDA FOR REGULAR MEETINGS
10.1 Order of Business
10.1.1 The order of business at any regular meeting of the Board
shall be as follows:
1. Roll Call
2. Approval of Minutes
3. Public Comments on agenda items shall be limited
to three (3) minutes unless waived at the discretion
of the Chair
4. Communications
5. Committee Reports
6. General Manager's Recommendations
7. Unfinished Business
8. New Business
9. Resolutions
10. Manager's Remarks
11. Remarks by members of the Board.
12. Motion of Excused Absence
Board Mtg.Minutes
November 28,2006
Page 26 of 37
13. Public Comments on BWL-related matters shall be
limited to three (3) minutes unless waived at the
discretion of the Chair
14. Adjournment
10.1.2 In the absence of any objection, the presiding officer
shall have the discretion to vary the order of
business.
10.1.3 Preparation of Agenda
A preliminary agenda shall be prepared by the General
Manager and made available for distribution three days
preceding a regular or special meeting for informational
purposes only. However, the agenda is subject to unilateral
change by the General Manager up until the meeting.
10.1.4 Changes to the A eg nda
In the absence of any objection, the General Manager or
any member of the Board may add or subtract an agenda
item at a meeting. In the event of objection, an affirmative
vote of the majority of the Board shall be required to add,
or subtract an agenda item.
10.1.5 Public Comments
Immediately following Approval of Minutes, the Chair will
announce that members of the public are invited to address
the Board regarding any item on the agenda. Anyone
wishing to comment on any matter not on the agenda may
do so immediately prior to adjournment. The Chair may
exercise its discretion in prescribing how members of the
public will seek recognition, or imposing reasonable time
limits for comments under the circumstances, or in limiting
remarks to the subject matter under discussion.
10.1.6 Reports and Recommendations of Director and General
Manager
The Director and General Manager shall advise the Board
by mail of Reports and Recommendations to be considered
at each regular meeting.
XI. AGENDA FOR COMMITTEE MEETINGS
11.1 Order of Business
11.1.1 The order of business at any committee
meeting of the Board shall be as follows:
1. Roll Call
Board Mtg.Minutes
November 28,2006
Page 27 of 37
2. Public comment on agenda items shall be limited to three
(3) minutes unless waived at the discretion of the chair
3. Agenda Topics
4. Other
5. Adjourn
11.1.2 A concurring vote of a majority of
committee members present shall be
necessary to move a recommendation to
the Board.
XII. PUBLIC HEARINGS
12.1 The Board is required to hold a public hearing at least thirty days before
the effective date of any changes in rate structure. The Board may also choose to
hold public hearing on other topics as necessary or appropriate.
12.2 Although the Board will generally hold its public hearings in the Board
Room at 1232 Haco Drive, Lansing, the Board may conduct public hearings at
such places that it determines will best serve the public interest.
12.3 Notice of the hearing will be placed in at least one (1) newspaper of
general circulation in the Lansing, Michigan area, no less than fourteen (14) days
before the public hearing. The notice shall state the date, time, place and subject
of the hearing. Notice shall also be posted electronically on the LBWL's website.
12.4 A quorum of the Board shall be necessary to conduct a public hearing.
12.5 No Commissioner shall engage in ex parte conversations about the topic
of the public hearing either before or after the hearing until the full Board takes
action on the topic.
12.6 Public hearings shall be open to the public, in accordance with the Open
Meetings Act.
12.7 Individuals and organizations are invited to comment on the topic of the
public hearing, either orally or in writing. Written comments should be addressed
to the Corporate Secretary and should be presented on or before the date of the
hearing. Oral comments shall be presented at the public hearing. The Chair may
set reasonable limits on the length of oral presentations. Abusive or obscene
comments shall not be permitted.
12.8 A transcript or recording of the hearing shall be made and kept for no less
than three years.
12.9 In the case of a rate hearing, the Board will generally have a separate
meeting or meetings after the public hearing to discuss the proposed changes to
the rate structure and vote on the proposed changes. If the Board's discussions
indicate that it intends to raise any customer's rate higher than proposed during
the public hearing, the Board shall hold an additional public hearing on the
proposed higher rate in accordance with this section before voting on the rates.
The Board is not required to hold any additional hearings in order to approve a
rate lower than the rate proposed at the public hearing.
Board Mtg.Minutes
November 28,2006
Page 28 of 37
12.10 If the Board acts on the topic discussed at the public hearing, it shall do so
at a public meeting and shall approve a written resolution describing its action.
XII. MEMBERS OF THE BOARD
12.1 Attendance
Each member of the Board shall attend all meetings of the Board in person
or by teleconference unless otherwise excused. Each member must attend
at least fifty (50) percent of regular or special meetings of the Board and
fifty (50) percent of assigned committee meetings during any fiscal year.
Failure to do so will be brought to the attention of City Council and may
be grounds for removal by City Council from the office as a member of
the Board.
12.1.1 Attendance in person by members of the Board at all meetings of
the Board and Committees is encouraged. If personal attendance is
not possible, attendance may be by teleconference or
videoconference as long as the member's comments are heard by
the entire assembly. Further, a majority of the Board or Committee
must be physically present at the location specified in the notice of
the meeting. All votes taken during a teleconference meeting shall
be by roll call.
Should a member participate in a Closed Meeting, in accordance
with 1.6, via teleconference or videoconference, such member
shall affirmatively state for the record that no unauthorized person
can hear or view any portion of the Closed Meeting. Telephonic or
videoconference participation in Closed Meetings is only
permissible if the conversation cannot be overheard by
unauthorized individuals.
12.2 Disqualification to Vote
Any member of the Board having a direct or indirect financial interest in
any matter before the Board, or who may stand to gain or lose financially
or otherwise due to action of the Board on any matter, shall indicate such
interest to the Board and be disqualified from voting on such matter as set
forth in Section 5-505 of the Lansing City Charter.
XIII. RECONSIDERATION OF ACTION
Any member may move to reconsider a previous action of the Board. Such motion to
reconsider shall be made not later than the next regular Board meeting.
XIV. MINUTES
14.1 Preparation and Filing
The Secretary shall keep minutes of regular and special meetings of the
Board and shall file a copy in the office of the City Clerk as a public
record. No official action taken by the Board shall be valid or effective
until a copy of the minutes of the meeting at which such action was taken
shall have been filed with the City Clerk.
Board Mtg.Minutes
November 28,2006
Page 29 of 37
14.2 Corrections
Corrections in the regular or special meeting minutes shall be made not
later than the next meeting after the meeting to which the minutes refer.
The corrected minutes shall show both the original entry and the
correction.
14.3 Delivery to Members
The Secretary shall provide each member of the Board with a copy of the
regular or special meeting minutes as soon as it has been filed with the
City Clerk. Corrected minutes shall be available no later than the next
subsequent meeting after correction.
14.4 Public Inspection
Proposed minutes will be available for public inspection not more than
eight (8) business days after the meeting to which the minutes refer.
Approved minutes will be available for public inspection not later than
five (5) business days after the meeting at which the minutes are approved.
Copies of the minutes will be made available to the public at a reasonable
estimated cost for printing or copying. (1976 Public Act 267).
XV. CONFIDENTIALITY
15.1 Communications
Members of the Board shall treat all information marked "confidential" or
"privileged" accordingly and shall not release such information to unauthorized
individuals, unless disclosure is required by law. All such information shall be
returned to the Corporate Secretary or destroyed.
15.2 Closed Session
All written and verbal information obtained and/or discussed in Closed Session
shall be confidential and never discussed or shared outside of Closed Session,
unless otherwise specified by law.
XVI. CONTRACT LIMITATIONS
The Board shall not have the power to make any contract with or give any official
position to any person who is known to be in default to the City.
XVII. AMENDMENTS
Any member of the Board may initiate amendments to the Rules of Administrative
Procedure by presenting them in writing at any regular meeting. All members of the
Board must be notified of such amendments mailed at least four (4) days before the
amendment is to be voted upon. The affirmative vote of five (5) members shall be
required to amend the rules of procedure.
Board Mtg.Minutes
November 28,2006
Page 30 of 37
XVIII. MISCELLANEOUS
18.1 Parliamentary Procedure
All questions of procedure not covered by these rules or the City Charter
of the City of Lansing shall be governed by the provisions in "Robert's
Rules of Order."
18.2 News Media Regulations
18.2.1 Members of the news media shall be provided with a table
in the Board Room for their use. They shall have made
available to them, upon request, a copy of the General
Manager's Recommendations and any data accompanying
the recommendations not marked "Confidential" at 10:00
a.m. one working day prior to the date of the meeting.
18.2.2 Following the adjournment of a Board meeting, members
of the news media may request interviews of members of
the Board.
18.2.3 All policy statements shall be made on behalf of the Board
by the Chair. See 4.3.1.
18.3 Vacancy, Resignation, Absence of Elected Officers
18.3.1 In the event the office of Chair shall become vacant by
death, resignation or otherwise, the Vice Chair shall assume
the office of Chair, and the most immediate Past Chair shall
assume the office of Vice Chair.
18.3.2 In the absence of the Chair, Vice Chair and Past Chair, a
Temporary Chair shall be elected, who would hold office
during the session, until the return or election of the Chair,
Vice Chair or Past Chair.
18.4 Freedom of Information
It shall be the policy of this Board to follow the provisions of Public Act
442, 1976, as it may be amended by legislative enactment or judicial
decision.
18.5 Resolutions
Any member of the Board may sponsor a resolution. Any resolution may
be co-sponsored by other members of the Board. A resolution must be
submitted for placement on the Agenda as specified under Article X -
Agenda. The sponsor of a resolution may withdraw the resolution at any
time prior to enactment. Consent of the co-sponsors to withdrawal is not
required.
18.6 Reimbursement of Expenses
Board Mtg.Minutes
November 28,2006
Page 31 of 37
18.6.1 Consultant Expenses: The Board may hire external consultants,
such as outside counsel and accountants. 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. If time constraints preclude a meeting of the full
Board to discuss hiring the consultant, the Executive Committee may meet
to approve the initial contact with the consultant, but may not authorize an
expenditure of more than $1,000 to a consultant without the approval of
the full Board. The consultant's work product shall be written and shall be
immediately transmitted to all Board members upon completion of the
requested work. All payments to consultants hired by the Board shall be
deducted from the Board's budget. Board funds may not be expended to
address an issue only applicable to one Commissioner.
18.6.2 Board Member Travel Expenses: The Board recognizes the value
of membership and attendance at conferences, workshops, and meetings at
the state, regional, and national levels that are appropriate and necessary to
carry out Board of Water and Light business. As such, the Board
encourages:
1. The attendance of its members in at least one out-of-state and
one in-state conference seminar per year.
2. Each newly appointed member of the Board is encouraged to
attend a formal workshop on governance as offered by the
American Public Power Association.
Additional travel must be pre-approved by the Executive
Committee.
Travel expenses shall be reimbursed in accordance with the
Board's Travel Expense Policy.
18.6.3 Board Member Miscellaneous Expenses: Members of the Board
may incur additional business expenses while representing the Board of
Water and Light in the community. Business expenses such as cell phone,
business luncheons, and parking are such examples of legitimate business
expenses. Upon filing a claim in the prescribed form, each member of the
Board shall be reimbursed for reasonable and necessary expenses incurred
in the discharge of the Board Member's official duties, in accordance with
the Board's Expense Reimbursement Policy
The Executive Committee shall review Commissioner expenses on a
quarterly basis.
Adopted by the Board 5/8/79, and amended 8/14/79, 11/14/79, 3/11/80, 11/11/80, 7/14/81,
8/11/81, 7/13/82, 7/26/83, 6/26/84, 3/5/85, 12/18/90, 1/5/91, 7/28/98, 1/23/01, 11/19/02, 3/28/06,
and 11/28/06.
Board Mt.-.Minutes
November 28,2006
Page 32 of 37
MANAGER'S REMARKS
Commissioner Smith noted that after speaking to Mr. Peffley the coal and rail update was
removed from the agenda. She also advised that if there are any Commissioners that would like
to receive the 15-minute presentation then Mr. Peffley will schedule time to speak with them.
Mr. Peffley explained that the coal and rail update was originally presented at the Committee of
the Whole meeting to a relatively large audience. In the interest of time they will not present the
update again and will instead focus on the steam utility update.
Steam Utility Plan-Status Update
Bill Cook, Senior Vice President of Operations noted that the Board passed Resolution 2006-8-5
approximately 90 days ago that dealt with the 35% steam rate increase. At the time, staff was
asked to develop a steam strategic plan that addressed issues relative to the Integrate Resource
Plan (IRP), costs and efficiencies, utility growth, the consideration of opting out of steam, and
the development of a rate increase strategy. Mr. Cook further advised that the analysis is not yet
complete. However, they wanted to present a steam utility update on where they are in the
process to date. The presentation materials included information on the following:
• Adjust the steam rate increase down to 35%
The estimated increase in net revenue due to the 35% rate increase is $2,178,000 annually. This
resulted in a FY2007 revenue reduction of$1,878,000 for the original increase recommendation
of 65%. Mr. Cook noted that the BWL's overall income of all utilities including the 35%
increase was budgeted at $35,000 for all four utilities through October 2006. The 35% rate
increase presently in effect caused a net loss of$1,600,000 whereas, the corresponding original
budgeted rate increase of 65% would have resulted in a net loss of$1,2000,000. He went onto
report that through September 2006 all BWL utilities have a combined net income of
$10,254,506. The combined net income for this period was estimated in the FY2007 budget to
be $5,111,111. Mr. Cook explained that organizationally as of September 2006, net income is
twice as high as anticipated due to the sell of electricity and emission credits. He also reported
that steam sales are lower than expected due to (warm) weather conditions. Mr. Cook
commented that the steam utility as a financially independent entity is still losing money and has
loss $1,600,000 fiscal year to date.
• Develop a Steam Strategic Plan/Process to Include, A) Comprehensive 3-5 year Business
Plan
State of Michigan Concerns. Mr. Cook noted that he contacted Phyllis Mellon, Chief Deputy
Director of the State of Michigan to ensure that the BWL had supplied them with all of the
requested materials. Ms. Mellon is interested in the BWL's long-term strategies with respect to
steam and will contact the BWL in the future to discuss the issue. Mr. Cook also stated that the
State expressed interest in having an independent consultant do a cost of service study. There
was no discussion as to who would be responsible for the cost of said study.
The Commissioners expressed an interest in knowing what the discussions will entail. For
example, does the State want to discuss the materials forwarded to them, generating additional
steam load, steam utility solutions or the impact steam increases will have on State facilities.
Board Mtg.Minutes
November 28,2006
Page 33 of 37
Mr. Cook advised that they keep in touch with large customers so that they are aware of any
significant changes in their usage profile so that they may incorporate those changes. He also
indicated that the discussion would probably cover a range of those topics mentioned by the
Commissioners. He went onto explain that the State has always been a good partner with the
BWL and they are one of their largest customers. Mr. Cook noted that they certainly would want
to involve the State in anything they do because they will be impacted by the BWL's decisions.
Commissioner Smith concurred and further noted that she wanted to make sure that the BWL
involves the State as much as possible with the process. She also noted that customer
involvement will allow them to see why the BWL is making the decisions that it is making in
trying to make the best decisions for all parties involved.
Commissioner Graves advised that he understands that the State is one of the BWL's larger
customers and suggested that they be reminded of their responsibility in growing load and
assisting the BWL in developing the steam plan.
• GM Contract Early Contract Termination Fees.
a. Plant 1 termination fee is $5,200,000. GM has paid $520,000 and a reduction of
$600,000 was made to settle a separate metering and billing issue. GM is not contesting
the dollar amount.
b. Plant 6 Rate of Return Guarantee is $9,322,000. GM is contesting the dollar amount.
c. Debt service balance on the steam line serving Plant 6 is $3,020,491. GM is not
contesting the dollar amount.
The BWL is currently working with GM to finalize these payments and the contract allows GM
to withhold payment until 2009. Therefore, the BWL does not expect that any payments will be
received prior to that date.
Commissioner Smith asked if the six-year forecast will contain any dollars from the pending
contract termination fees?
Mr. Cook replied by stating that the dollars will not appear in the 2007 or 2008 forecast.
• Elements of the IRP
a. Minimize investment in Eckert 1-3 until detailed Moores Park retirement evaluation is
completed
b. Delayed $2.9 million from FY2007 capital budget (except for those that are absolutely
critical to maintain service).
c. Fully evaluate option to retire Moores Park (analysis ongoing)
• Plans to Further Reduce Costs
Mr. Cook noted that operations and maintenance (O&M) expenses state that 27% of steam cost
is coal, 25% labor and 11% benefits. This is an indication that cost-cutting measures will not be
a painless endeavor. He also advised that steam utility costs allocations are also under review as
some costs may or may not be appropriately charged.
0 Plans to Improve Efficiencies Including Scaling Back
Board M[g.Minutes
November 28,2006
Page 34 of 37
The steam abandonment policy is in draft form and will be brought before the Board in the near
future. The policy essentially addresses the issue of unproductive or uneconomic sections of the
steam utility that can be pruned off. Presently, areas have been selectively chosen based on a
capital expenditure basis where the cost of maintenance fees outweighs annual revenue. Mr.
Cook went onto report that at some point in weighing alternatives the issue of who is going to
pay for the steam conversion will arise.
• Analysis and Plan for Business Growth Potential
Steam utility marketing plan has been completed, and indicates modest growth potential. Some
of the steam marketing challenges include a limited service territory (approximately one square
mile in size), age of infrastructure (dates back to 1906), high construction costs, potential rate
increases and the price of steam vs. natural gas.
Commissioner Graves asked if the BWL is serving all State facilities located within the steam
radius? Staff responded by stating yes.
Commissioner Smith asked how does Lansing Community College fit into the load growth as the
University Center is coming online; do they have more potential for downtown growth?
Mr. Cook responded by stating that Lansing Community College is one of larger steam
customers. They are in much of the investment that the BWL feels makes sense in basically
getting piping to them to repair some of the leaks.
• Consider the option of getting out of steam business entirely
Mr. Cook stated that in 1981 the BWL faced the same dilemma. They in fact have a letter from
Earl Brush, to our customers stating that the steam utility was in need of significant repair and
some reliability considerations were going to have to be done at that time. They were looking at
a time when steam was 8% above the price of natural gas and they recommended a 13% increase
in lst year and a 20% increase in the 2nd year. As part of that process, they called the steam
customers in to present their case and then received input from the public with respect to steam
customers. Mr. Cook also reported that out of curiosity they used the IRP data to see what kind
of systems purchase steam utilities. They found that there are firms that purchase steam systems
at bargain prices, strip them of any value and either leave or advise the customers that they will
no longer provide that service. He noted that that is probably not an acceptable alternative for
the BWL but it is what is happening in the industry.
Another issue yet to be addressed is Consumers Energy's ability to provide natural gas to the
downtown area and who will absorb the cost of the conversion from steam to natural gas. The
BWL is aware that they do not have a high-pressure gas system downtown because they have not
needed it in the past. As a result, Consumers Energy would need to enhance their transmission
system and discuss the associated cost to the customer. Mr. Cook went onto state that they have
not approached Consumers Energy to discuss the issue at this present time. He further reported
that it might make economic sense to keep the State of Michigan, Lansing Community College,
and GM while trying to resolve the rest of issues as opposed to a complete gutting of the system.
• Develop a Steam Strategic Plan/Process to Include, B) a rate increase strategy over the next
3-5 years that makes the steam business financially independent
Board Mtg.Minutes
November 28,2006
Page 35 of 37
Six Year Forecast- Status Quo: Continuing current operations in steam would require a 18.2%
per year rate increase in each of the next 5 years to stand alone.
Mr. Cook noted that the 18.2% is the benchmark. Therefore, any cost cutting measures to
improve operations would decrease from the benchmark. He went onto advise that some of the
issues discussed during the presentation will be brought before the Board during the lst quarter of
2007. The dates are very aggressive but they are trying to tie this project in with the budgeting
process for the upcoming year and as a result they will also attempt to finalize a recommendation
for Board approved by mid 2nd quarter of 2007.
Charles Moore, Interim Internal Auditor ask if it was possible to get an allocation of what the 37
steam utility employees (p. 8) costs are so that they may see how it is allocated as it will affect
labor costs and social security pension.
Mr. Cook noted that that is the direction they are moving towards in looking at the entire
business model for the steam utility in determining if every cost is legitimate. He also reported
that in 2005, they changed the allocation method and the allocation to steam increased 40-50%.
It went from 5 to 7.5% of the A&G cost, which has exacerbated some of the problems.
Commissioner Smith thanked staff for the presentation and indicated that it was the first time in
3-4 years that she had heard a comprehensive address relative to steam issues. She went onto
state that they can clearly see how the last rate increase affected their community as a whole and
that the BWL has a commitment to look at the issue from a ratepayers view not just financially.
Commissioner Smith noted that she does not believe in cross subsidization but they need to look
at what is going to be best. She further stated that this was the first she had heard the BWL talk
about having a core base of steam utility customers and looking at what we are going to do for
them. Commissioner Smith commented that the BWL did a good job on bringing a lot of the
residential properties in two of the areas but she thinks this is a good comprehensive approach in
getting more people involved in deciding what may happen. She also noted that it is the best
way to move forward and that the BWL should not just look at it as something that is always
going to be there and drain the other utilities because someway or another they are going to
begin to pay for it. Commissioner Smith also stated that when you look at the allocation of
resources in terms of manpower, fleet services and items of that nature they need to be properly
allocated.
Commissioner Graves stated that in moving forward it is clear to him that there is going to be
considerable financial considerations that relate to the financial stability of the BWL. He also
noted that there are going to be policy and legal issues that they will have to address in very
significant ways. Unfortunately, some of the legal issues are completely integrated with other
discussions. Therefore, he would like to put General Counsel on alert that these legal
discussions will take place with various components and these discussions may involve internal
as well as outside counsel.
Staff noted that in 1981, the BWL did not get as far in the process as they have to date (in 2007)
in determining how they would address the steam issues. However, in 1981 they decided to
increase the rates by 35% and reinvest $10,000,000 to install main in the downtown area to
increase reliability and pressure reducing valves at Eckert to allow steam to be supplied to
Moores Park.
Board Mtg.Minutes
November 28,2006
Page 36 of 37
A complete copy of the Steam Utility Plan-Status Update report dated November 2006 is on file
with the permanent minutes.
Interim General Manager Dick Peffley reported the following:
• They are in the process of signing a 4-year contract for 75,000 megawatts of hydro
renewable power. The contract takes effect January 1, 2007.
• The BWL could earn a possible $13,000,000 in revenue for wholesales sales if all excess
capacity is sold.
• Utility Financial Solutions will review the six-year forecast and he has also completed the
information necessary to provide Mr. Moore in regards to the revised forecast.
• The BWL's cost per kWh is the 41h lowest based on 2005 revenue per kW figures.
• There have been a total of 13 stories on the BWL; 7 positive, 5 neutral, and 1 negative.
• Capitol Advocacy Services Group, LLC was awarded the most recent lobbyist contract
with the BWL. Governmental Relations Analyst Calvin Jones introduced Noel A.
LaPorte, President. Mr. LaPorte expressed his gratitude and advised that he is looking
forward to working with the BWL and being proactive on the BWL's behalf.
Commissioner Smith thanked Mr. LaPorte for appearing before the Board and advised
that she was glad to hear that he would be proactive in addressing issues on their behalf.
She also commented that the Board would like to receive periodic status reports and they
are also open to appearing before the legislature (similar to the fashion in which the
former General Manager appeared) if such service is needed.
COMMISSIONERS' REMARKS
Commissioner Calkins inquired about the agenda for the upcoming Board retreat.
Commissioner Smith responded by stating that she had spoken to the facilitator and he will send
it to the Board by Wednesday, November 291h. She also pointed out an article on the Calvin
Jones family in the latest issue of"Greater Lansing Woman" and encouraged everyone to read it.
Commissioner Smith commended the BWL on its involvement in Silver Bells in the City,
especially that of the General Manager. She went onto note its benefit to the regional area.
EXCUSED ABSENCES
On motion by Commissioner Graves, seconded by Commissioner Rodocker that the absence of
Commissioner Rios be excused.
Carried unanimously.
PUBLIC COMMENT
There were no public comments.
ADJOURNMENT
On motion by Commissioner Cochran, seconded by Commissioner Graves, the meeting
adjourned at 7:24 p.m.
Board Mtg.Minutes
November 28,2006
Page 37 of 37
/s/Rhonda Jones, Corporate Secretary
Filed with Lansing City Clerk
December 9, 2006
DEPARTMENT OF PLANNING &
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
$' (517)483-4355•FAX: (517)377-0169
Ic H I G BUILDING SAFETY OFFICE
Virg Bernero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
December 12, 2006
The December 2006 meeting of the City of Lansing Building Board of Appeals was
called to order at 2:02 p.m. by Chairman Randall Kamm. The following members were
in attendance:
Randall Kamm, Chairman
Donald Heck, Vice Chairman
Dean Taylor
James Drake I�
Members absent: None
N n
Staff Present: James Bennett, Secretary 6
Brian Davis, Assistant Fire Marshal
Doug Halstead, Building Inspector C-;
Brenda Jodway, Recording Secretary mil ,,
_ a
Petitioners Present: David Ferguson
Public Present: None
Chairman Kamm asked for the approval of the November 14, 2006 minutes. Don Heck
made a motion to approve the minutes as amended. Motion seconded by Dean Taylor.
Motion carried.
Old Business: None
New Business:
Case No.: Address: Petitioner:
BBA-013-2006 1309 Turner ST. David Ferguson
Randall Kamm introduced Mr. Ferguson who is requesting that he be permitted to
provide fire sprinklers in lieu of emergency escape and rescue openings in some
sleeping rooms of certain dwelling units.
Building Board of Appeals Minutes Page I
December 12,2006
BBA-013-2006 Attachment A (as amended by Mr. Heck's motion)
The Building Safety Office (BSO) and Fire Prevention Office (FPO) support Mr.
Ferguson's appeal to provide fire suppression in lieu of emergency escape and
rescue openings in certain second floor dwelling units of his Turner Street
Development (includes units addressed off of Dodge River Dr.) with the following
conditions.
1. Revised construction documents, with seal and signature, shall be
submitted for review and approval. Drawings shall include the "as built"
changes in the construction and all proposed changes to the plans. The
BSO reserves the right to require changes to the construction to comply
with other aspects of the Code. Drawings shall be submitted by January
15, 2007
2. Field inspection by FPO to verify sprinkler coverage prior to occupancy
permit being issued. Any discrepancy shall be corrected prior to
occupancy.
Building Board of Appeals Minutes Page 3
December 12,2006
' l
DEPARTMENT OF PLANNING AND
v
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
(517)483-4355• FAX: (517)377-0169
I C BUILDING SAFETY OFFICE
Virg Bernero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N, Capitol Ave. at 2:00 pm
November 14, 2006
The November 14th 2006 meeting of the City of Lansing Building Board of Appeals was c6lied:to
order at 2-00 p.m. by Chairman Randall Kamm. He stated that Don Heck, one of the Board
Members has an excused absence today. The following members were in attendance:
Randall Kamm, Chairman
Dean Taylor
James Drake
Members absent: Donald Heck, Vice Chairman
Staff Present: James Bennett, Secretary
Brian Davis, Assistant Fire Marshal
Brenda Jodway, Recording Secretary
Petitioners Present: Kristopher Jones
Scott Harris
Fred McLaughlin, Architect, representing Scott Harris
Public Present: None
Chairman Kamm asked for the approval of the October 10, 2006 minutes. James Drake made a
motion to approve the minutes. Motion seconded by Dean Taylor. Motion carried.
Old Business: None
New Business:
Case No.: Address: Petitioner:
BBA-011-2006 1317 Illinois St. Kristopher Jones
Mr. Kamm introduced Kristopher Jones who is requesting to convert an existing room measuring
6'4" X 9'8" into a bedroom. This does not comply with section R304.2 of the Michigan Residential
Code or section 1460.25 of the Housing Code for minimum room dimensions.
Building Board of Appeals Page 1
Minutes of November 14,2006
separation so we are looking at a 3-hour fire door with a magnetic hold open system activated in
this case by smoke detection.
Brian Davis stated that smoke detector's that are more than 20" from the door works for the Fire
Code because they have to be within not less than 20" and not more than 5' of the door opening
on both sides. Also both units have their own exiting system with front and rear exits in each
building. The proposal has no bearing on the exit system in either occupancy. The gap would be
sealed by a 3-hour rating or two sets of 90 minute doors. Sprinkling is not required.
Randall Kamm added that the maintenance agreement between the owners should be recorded
with the Registrar of Deeds.
After additional discussion, a motion was made by James Drake to approve the appeal for a 3-
hour door and all required hardware & smoke detection. Seconded by Dean Taylor, motion was
approved unanimously.
Other Business: None
Public Comment: None
At 2:44 p.m., James Drake moved to adjourn. Motion seconded by Dean Taylor. Motion carried.
R pec Ily submitted _
James ennett, Secretary Draft date: December 6, 2006
Approved date: `X/I
cc: Mayor's Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file-original
Building Board of Appeals Page 3
Minutes of November 14,2006
y� S IG DEPARTMENT OF PLANNING AND
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 . Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
I CHI BUILDING SAFETY OFFICE
Virg Bernero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
November 14, 2006
The November 14th 2006 meeting of the City of Lansing Building Board of Appeals was called to
order at 2:00 p.m. by Chairman Randall Kamm. He stated that Don Heck, one of the Board
Members has an excused absence today. The following members were in attendance:
Randall Kamm, Chairman
Dean Taylor
James Drake
Members absent: Donald Heck, Vice Chairman
cn rz� �I7
Staff Present: James Bennett, Secretary c
Brian Davis, Assistant Fire Marshal m
Brenda Jodway, Recording Secretary
Petitioners Present: Kristopher Jones c d ca
Scott Harris tr-t w
Fred McLaughlin, Architect, representing Scott Harris
Public Present: None
Chairman Kamm asked for the approval of the October 10, 2006 minutes. James Drake made a
motion to approve the minutes. Motion seconded by Dean Taylor. Motion carried.
Old Business: None
New Business:
Case No.: Address: Petitioner:
BBA-011-2006 1317 Illinois St. Kristopher Jones
Mr. Kamm introduced Kristopher Jones who is requesting to convert an existing room measuring
6'4" X 9'8" into a bedroom. This does not comply with section R304.2 of the Michigan Residential
Code or section 1460.25 of the Housing Code for minimum room dimensions.
Building Board of Appeals Page 1
Minutes of November 14,2006
separation so we are looking at a 3-hour fire door with a magnetic hold open system activated in
this case by smoke detection.
Brian Davis stated that smoke detector's that are more than 20" from the door works for the Fire
Code because they have to be within not less than 20" and not more than 5' of the door opening
on both sides. Also both units have their own exiting system with front and rear exits in each
building. The proposal has no bearing on the exit system in either occupancy. The gap would be
sealed by a 3-hour rating or two sets of 90 minute doors. Sprinkling is not required.
Randall Kamm added that the maintenance agreement between the owners should be recorded
with the Registrar of Deeds.
After additional discussion, a motion was made by James Drake to approve the appeal for a 3-
hour door and all required hardware & smoke detection. Seconded by Dean Taylor, motion was
approved unanimously.
Other Business: None
Public Comment: None
At 2:44 p.m., James Drake moved to adjourn. Motion seconded by Dean Taylor. Motion carried.
R pec Ily submitted
James ennett, Secretary Draft date: December 6, 2006
Approved date:
cc: Mayor's Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file-original
Building Board of Appeals Page 3
Minutes of November 14,2006
.srwc DEPARTMENT OFF .ANNING AND
v
�.
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,suites C-1 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377 0169
1 BUILDING SAFETY OFFICE
CH � C3
Virg Bemero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
OCTOBER 10, 2006
The October 2006 meeting of the City of Lansing Building Board of Appeals was called to order at 2:05
p.m. by Chairman Randall Kamm. The following members were in attendance:
Randall Kamm, Chairman
Donald Heck, Vice Chairman -_
Dean Taylor
James Drake
Members absent: None
Staff Present: James Bennett, Secretary ,, 7-1
Brian Davis, Assistant Fire Marshal - C-, -1-n
Brenda Jodway, Recording Secretary C
c-
Petitioners Present: Chris Bennett -
Margene Franklin, (owner's representative)
James I. Aubuchon, Keystone Architects &Todd Thomann, Smart OFice
Systems (owner's representative) �
Public Present: None
Chairman Kamm asked for the approval of the September 12, 2006 minutes. Don Heck made a motion
to approve the minutes. Motion seconded by James Drake. Motion carried.
Old Business:
Jim Bennett stated that on case number BBA-008-2006 regarding 4512 Ingham St. there was a little
communication problem and the applicant, Chris Bennett, did not know that he needed to be present to
answer questions so the case was tabled. Mr. Bennett is here today.
Case No.: Address: Petit
BBA-008-2006 4512 Ingham St. Chris Bennett
Mr. Kamm introduced Chris Bennett who is requesting the continued use of a second floor area that does
not comply with the ceiling height requirements of the Michigan Residential Code.
Mr. Bennett said he was using the Community Development Program to get his furnace replaced and
when they (Community Development Inspector) were doing the inspection it was discovered that the
upstairs bedrooms used by his children did not comply with Code and Mr. Bennett discontinued the use
of the room until the matter can be resolved. He had recently purchased the house and after the
inspection he did some investigation and found out that the seller had been cited for not meeting Code
Case No.: +ddress: Peti'"-ner:
9BA-010-2006 3366 Remy Dr. Jan. Aubuchon
Mr. Kamm introduced James Aubuchon, Architect, of Keystone Design Group who wishes to design and
construct an addition to an existing mixed use building that will exceed the maximum area permitted by
section 506 of the Michigan Building Code 2003.
Mr. Aubuchon stated that they would like to put an addition on the existing building. The 11x17 drawing
in the packet shows the maximum area of a Code Compliant mixed use building. We are using the
information from Code section 506.1 for area modifications and including the frontage increase and the
sprinkler increase into the formula. It gives us an average perimeter separation distance of 74 ft. Under
section 506.2.1 which talks about width limits for the yard, under the exception, where the weighted
average quantity W divided by 30 can be a maximum of two. In the circumstance where it complies with
items 1, the building would be permitted to be unlimited in area by section 507, and 2 of the exception
that the only provision preventing compliance is the 60 ft. public way or yard requirement. What I'm
showing here is I can increase my W to 2 and max out my building area that way. It all goes down to
what the code's maximum size building is given the Business occupancy, the Manufacturing and the
Storage uses are within the mixed use maximum areas. What we are proposing is to provide fire barrier
walls separating the office from the storage and part of the F1 (about 3,000 sq. ft.) separated from the S.
What we are asking for is instead of a 37,000 sq. ft. addition, to build a 40,000 sq. ft. addition of S1
occupancy. What we propose to do is to install a monitored smoke detection system throughout the
entire building to compensate for the additional area over and above what the code allows as a maximum
area. That's a 3,000 sq. ft. increase for the smoke detection system.
After much discussion, Don Heck made a motion to allow the construction of an addition of 40,000 sq.ft.
to an existing Mixed use building that will exceed the maximum area permitted by Section 506 of the
Michigan Building Code 2003 at 3366 Remy Dr. Seconded by Dean Taylor, motion carried unanimously.
Public Comment None
Other Business:
Jim Bennett stated that the Building Safety Office would like to request that the Building Board of Appeals
make an editorial change to the Residential Ceiling Height Policy Statement which was originally done in
1993 and was revised in 2000 and 2002. There are two occasions where the term "rough opening" is
used, where he thinks "clear opening" was intended and it causes some confusion. He requests to
change the word "rough" in both Stage One and Stage Two for windows to "Clear." If we do that than the
5 sq. ft. of clear opening matches up with the Building Code for existing buildings, the Residential Code
for existing buildings, the Rehabilitation Code for existing buildings and the Property Maintenance Code,
James Drake made a motion to change the word "rough" in the Residential Ceiling Height Policy
Statement in Stage One and Stage Two for windows to "clear' . Seconded by Don Heck, motion carried.
At 3:00 p.m., Don Heck moved to adjourn. Motion seconded by James Drake" Motion carried
unanimously.
Res7ms�
d,
James Bennett, Secretary Draft date: October'' 12, 2006
Approved date: z►�' >>
cc: Mayor's Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file-original
Building Board of Appeals October 10,2006 Minutes Page 3
SING DEPARTMENT OF F ..-ANNING AND
NEIGHBORHOOD DEVELOPMENT
316 N. Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
I c H l BUILDING SAFETY OFFICE
Virg Bernero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
OCTOBER 10, 2006
The October 2006 meeting of the City of Lansing Building Board of Appeals was called to order at 2:05
p.m. by Chairman Randall Kamm. The following members were in attendance:
Randall Kamm, Chairman r
Donald Heck, Vice Chairman : > ;
Dean Taylor
CID
James Drake " f
Members absent: None ' F
Staff Present: James Bennett, Secretary
Brian Davis, Assistant Fire Marshal
Brenda Jodway, Recording Secretary
Petitioners Present: Chris Bennett
Margene Franklin, (owner's representative)
James I. Aubuchon, Keystone Architects &Todd Thomann, Smart Office
Systems (owner's representative)
Public Present: None
Chairman Kamm asked for the approval of the September 12, 2006 minutes. Don Heck made a motion
to approve the minutes. Motion seconded by James Drake. Motion carried.
Old Business:
Jim Bennett stated that on case number BBA-008-2006 regarding 4512 Ingham St. there was a little
communication problem and the applicant, Chris Bennett, did not know that he needed to be present to
answer questions so the case was tabled. Mr. Bennett is here today.
Case No.: Address: Petitioner:
BBA-008-2006 4512 Ingham St. Chris Bennett
Mr. Kamm introduced Chris Bennett who is requesting the continued use of a second floor area that does
not comply with the ceiling height requirements of the Michigan Residential Code.
Mr. Bennett said he was using the Community Development Program to get his furnace replaced and
when they (Community Development Inspector) were doing the inspection it was discovered that the
upstairs bedrooms used by his children did not comply with Code and Mr. Bennett discontinued the use
of the room until the matter can be resolved. He had recently purchased the house and after the
inspection he did some investigation and found out that the seller had been cited for not meeting Code
Case No.: Address: Pe' ner:
BBA-010-2006 3366 Remy Dr. Jarrovs Aubuchon
Mr. Kamm introduced James Aubuchon, Architect, of Keystone Design Group who wishes to design and
construct an addition to an existing mixed use building that will exceed the maximum area permitted by
section 506 of the Michigan Building Code 2003.
Mr. Aubuchon stated that they would like to put an addition on the existing building. The 11x17 drawing
in the packet shows the maximum area of a Code Compliant mixed use building. We are using the
information from Code section 506.1 for area modifications and including the frontage increase and the
sprinkler increase into the formula. It gives us an average perimeter separation distance of 74 ft. Under
section 506.2.1 which talks about width limits for the yard, under the exception, where the weighted
average quantity W divided by 30 can be a maximum of two. In the circumstance where it complies with
items 1, the building would be permitted to be unlimited in area by section 507, and 2 of the exception
that the only provision preventing compliance is the 60 ft. public way or yard requirement. What I'm
showing here is I can increase my W to 2 and max out my building area that way. It all goes down to
what the code's maximum size building is given the Business occupancy, the Manufacturing and the
Storage uses are within the mixed use maximum areas. What we are proposing is to provide fire barrier
walls separating the office from the storage and part of the F1 (about 3,000 sq. ft.) separated from the S.
What we are asking for is instead of a 37,000 sq. ft. addition, to build a 40,000 sq. ft. addition of S1
occupancy. What we propose to do is to install a monitored smoke detection system throughout the
entire building to compensate for the additional area over and above what the code allows as a maximum
area. That's a 3,000 sq. ft. increase for the smoke detection system.
After much discussion, Don Heck made a motion to allow the construction of an addition of 40,000 sq.ft.
to an existing Mixed use building that will exceed the maximum area permitted by Section 506 of the
Michigan Building Code 2003 at 3366 Remy Dr. Seconded by Dean Taylor, motion carried unanimously.
Public Comment None
Other Business:
Jim Bennett stated that the Building Safety Office would like to request that the Building Board of Appeals
make an editorial change to the Residential Ceiling Height Policy Statement which was originally done in
1993 and was revised in 2000 and 2002. There are two occasions where the term "rough opening" is
used, where he thinks "clear opening" was intended and it causes some confusion. He requests to
change the word "rough" in both Stage One and Stage Two for windows to "Clear." If we do that than the
5 sq. ft. of clear opening matches up with the Building Code for existing buildings, the Residential Code
for existing buildings, the Rehabilitation Code for existing buildings and the Property Maintenance Code.
James Drake made a motion to change the word "rough" in the Residential Ceiling Height Policy
Statement in Stage One and Stage Two for windows to "clear" . Seconded by Don Heck, motion carried.
At 3:00 p.m., Don Heck moved to adjourn. Motion seconded by James Drake. Motion carried
unanimously.
Respec mitted,
James Bennett, Secretary Draft date: October 12, 2006
Approved date:
cc: Mayor's Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file-original
Building Board of Appeals October 10,2006 Minutes Page 3
v
SING vEPARTMENT OF F -ANNING AND
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
BUILDING SAFETY OFFICE
ICHIG �
Virg Bernero, Mayor OFFICIAL PROCEEDINGS OF THE CITY OF LANSING t--
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
September 12, 2006
The September 2006 meeting of the City of Lansing Building Board of Appeals was called t$'DrdW at
2:05 p.m. by Vice Chairman Don Heck. The following members were in attendance:
Randall Kamm, Chairman (Arrived a little late due to traffic.)
Donald Heck, Vice Chairman
Dean Taylor
James Drake
Members absent: None
Staff Present: James Bennett, Secretary
Brian Davis, Assistant Fire Marshal
Craig Whitford, Code Compliance Officer
Brenda Jodway, Recording Secretary
Petitioners Present: Mr. Mark Diebolt & his representative Mr. Andrew Goldstein
Mr. John Sears & his representative Mr. Francis Wilmore, Architectural
Solutions
Ray Waldmiller representative for owners Stafford &Wood (who where not present)
Public Present: None
Vice Chairman Heck called the meeting to order and asked for the approval of the June 13, 2006
minutes. James Drake made a motion to approve the minutes. Motion seconded by Dean Taylor.
Motion carried.
Old Business: None
New Business:
Case No.: Address: Petitioner:
BBA-005-2006 304 Harris St. Mr. Mark Diebolt
Mr. Heck introduced Mr. Mark Diebolt who is requesting to continue the use of the basement
apartment (unit 3) that does not comply with the Building or Housing Code. The unit has inadequate
ceiling height and does not have hard wired smoke detection or an approved emergency escape and
rescue opening from the sleeping room.
The petitioner is represented by Mr. Andrew Goldstein, who explained that 304 Harris Street has
been an approved 4-unit rental for over 35 years. He stated that there is a list of things that needed
to be corrected to comply, and that Mr. Diebolt had met with Mr. Craig Whitford, Code Compliance
Officer and has made all u. the improvements except for a couple, I that as part of his proposal,
Mr. Diebolt has agreed to install hardwired Smoke Detector's and an egress window to comply with
the Code.
After much discussion, Dean Taylor stated that the Building Board has dealt with this kind of issue
many times and he felt that they have established precedence on this combination of ceiling height,
egress window and hardwired smoke detectors to allow occupancy in this situation. Therefore, he
made a motion that as long as Mr. Diebolt upgraded with an egress window and hardwired smoke
detectors, and met the other requirements of the Housing Code, to allow continued use of the 304
Harris Street lower level apartment (Unit 3). Seconded by James Drake, the motion carried
unanimously.
Case No.: Address: Petitioner:
BBA-006-2006 1221 Turner ST. Mr. John Sears
Chairman, Randall Kamm resumed as chair of the meeting and introduced Mr. John Sears who is
requesting that he be allowed to keep the existing stairwell and door opening used for access to the
residential apartments on the second floor. In order to maintain historical accuracy of this 191h
century building, it is not possible to provide required width in the stairway or entry door.
Representing Mr. Sears is Mr. Francis Wilmore of Architectural Solutions, who stated that they
propose after consultation with the Building Safety Office and the Fire Department, is to install hard
wired smoke detection on both the street level and lower level which will be commercial with
notification in both of the loft apartments on the upper level. In addition to this there will be fire alarm
pull stations in the stairway to the dwelling units, and in the Commercial spaces.
After some discussion, James Bennett stated that the front apartment will have complying egress
windows that face onto Turner Street. The rear unit has a deck balcony off the back that has access
to an alley. Both units will have complying emergency escape and rescue openings.
After some additional discussion Mr. Kamm asked Brian Davis, Assistant Fire Marshall if he had any
concerns.
After a little more discussion, Mr. Davis stated that once again with early warnings throughout the
building to warn the people that are going to be sleeping up there, everything else meets Code so I
wouldn't oppose what they are proposing.
Mr. Bennett added that the design from Architectural Solutions is already proposing two hour
floor/ceiling assemblies between the basement and 1st floor and also between the 1st floor and the
dwelling units on the second floor, which exceeds Code requirements.
Don Heck made a motion to allow the use of the existing door and stairwell at 1221 Turner St. with
the additions they have provided to us with the Fire Department and Building Safety's
recommendations (see attached) for items including smoke detection, notification, and local alarm
pull stations at approved locations. Seconded by James Drake, motion carried unanimously.
Case No.: Address: Petitioner:
BBA-007-2006 936 Green St. Stafford &Wood
Mr. Kamm introduced the next case where owners Stafford & Wood wish to create new living space
and a toilet room in a previously unoccupied attic area where ceiling height does not comply with the
Michigan Residential code.
Mr. Bennett stated that they are represented by their contractor Mr. Ray Waldmiller who has brought
some revised drawings where the owner has decided to do away with the toilet room on the third
floor.
BBA September 12,2006 Minutes
Page 2
Mr. Dean Taylor stated U.at he wanted all the people there to advised that he knows Mr.
Waldmiller in a business relationship but that he has no knowledge of this project whatsoever if that
bothers anybody. Randall Kamm asked if there were any objections from members of the Board
with Mr. Taylor's participation on this case. Everyone responded no.
Mr. Waldmiller spoke about the improvements they were doing which includes replacing the fiber
board with drywall which makes it more fire retardant; getting a separate circuit from the box in the
basement ran up to the third floor and putting in hard wired smoke detection; replacing the current
windows on the third with double casement egress size on each end. He said the stairway meets
code as far as rise and rung but they are replacing the treads, many of which are cracked and
broken with standard 3/ treads and adding a railing. He stated that they were basically upgrading
and making it safer.
Don Heck asked what exactly is the appeal.
Mr. Bennett stated that the policy that is set in place was intended to apply to existing spaces that
are already in use and consists of basically three stages. First, is the inspector's approval in the field
based on specified criteria. Second, the Building Official can grant an administrative modification
where policy criteria are met. The third stage is to come before the Board of Appeals. Although she
is not here to speak for herself, in the Building Official's (Christine Segerlind) opinion, this proposal is
creating a new space and is not strictly covered by the policy and so it was referred to the Board of
Appeals. The space would otherwise comply with the policy.
Don Heck made a motion to allow the creation of new living space in the previously unoccupied attic
space at 926 Green Street, provided that all the work is done in accordance with the Code
requirements. Seconded by Dean Taylor, motion passed unanimously.
Case No.: Address: Petitioner:
BBA-008-2006 4512 Ingham St. Chris Bennett
Mr. Chris Bennett the petitioner for the appeal regarding 4512 Ingham Street was not present.
James Bennett asked if there had been any calls or anything regarding his absence. Brenda
Jodway, Recording Secretary responded no.
After a little discussion, Don Heck made a motion to table case number BBA-008-2006 until such
time as the Board meets to hear the next appeal. Seconded by James Drake, motion carried
unanimously.
Other Business: None
Public Comment: None
At 2:38 pm, Don Heck moved to adjourn. Motion seconded by Dean Taylor. Motion carried.
Respectful) ubmitted,
James Bennett, Secretary
Draft date: September 14, 2006
Approved date:
cc: Mayor's Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file—original
BBA September 12,2006 Minutes
Page 3
Attachment: 1221 Turner Street Case number: BBA-006-2006 Applicant: Mr.John Sears
Fire Department and Building Safety Office have no objection with the following conditions.
1. Smoke detection within the dwelling units shall be installed according to the Michigan
Building Code 2003 (MBC) and alarm only within the affected unit.
2. Smoke detection shall be installed in the basement level, the first floor commercial space,
and the stairway/hallway (common area) to the dwelling units. Notification shall be provided
to the dwelling units by means of mini horn/strobes.
3. Local fire alarm pull stations shall be provided in the commercial space and the
stairway/hallway (common area) to the dwelling units. Notification shall be as above.
4. Approved signs shall be provided at the pull stations stating "Local Alarm Only —Call 911".
BBA September 12,2006 Minutes
Page 4
y s IG DEPARTMENT OF F _ANNING AND
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
BUILDING SAFETY OFFICE
HI
Virg Bernero,Mayor
Date: July 20, 2006
J�
To: City Clerk's OfficeCD
City Council Offices c,
City Hall Personnel
Mayor's Office
t
D
From: James Bennett�116.(�
r.7
RE:
BUILDING BOARD OF APPEALS
MEETING CANCELLATION NOTICE
The regularly scheduled Building Board of Appeals Meeting for Tuesday,
August 8, 2006, has been cancelled.
The next regularly scheduled meeting will be Tuesday, September 12, 2006,
at 2:00 pm in the Conference Room at 316 N. Capitol Ave., Suite C-3,
Lansing, Michigan.
CC'. Board Members (4)
Building Safety Lobby
Board Secretary
Appeal folders
Applicants
Public file-Original
v�.
Sj G DEPARTMENT OF PL,-%NNING AND
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue,Suites C-1 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
` I BUILDING SAFETY OFFICE
exit
Virg Bernero, Mayor
OFFICIAL PROCEEDINGS OF THE CITY OF LANSING
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
JUNE 13, 2006
The June 2006 meeting of the City of Lansing Building Board of Appeals was called to order at
2:04 p.m. by Chairman Randall Kamm.
Members Present Randall Kamm, Chairman
Donald Heck, Vice Chairman
Dean Taylor
James Drake
Members absent: None
Staff Present: James Bennett, Secretary
Brenda Jodway, Recording Secretary
Daryl Zuk, Code Compliance Officer
Petitioners Present: Najah Nona
Scott Gillespie
Public Present: None
Chairman Kamm asked for the approval of the February 14, 2006 minutes. Don Heck made a
motion to approve the minutes. Motion seconded by James Drake. Motion carried.
Old Business: None
New Business:
Case No.: Address: Petitioner:
BBA-003-2006 608 S. Mifflin Ave. Najah Nona
BBA-004-2006 620 May St. Scott Gillespie
Mr. Bennett introduced Darrel Zuk, Code Compliance Officer and petitioners Najah Nona and Scott
Gillespie. He also explained that Brian Davis, Assistant Fire Marshal was absent due to a death in
the family, but he did send an e-mail with the Fire Departments position on each case.
Randall Kamm called for case BBA-003-06, 608 S. Mifflin Ave., represented by petitioner Najah
Nona who is requesting to continue the use of one room located in the attic and two rooms located
in the basement as bedrooms. The rooms do not comply with the ceiling height requirements of
the Michigan Residential Code or the City of Lansing Housing Code.
Mr. Bennett said that Mr. L_ ,is has no problem with it provided:
1. They install egress windows to Code, by switching out attic window to casement or
whatever needs to be done and adding an egress window in basement bedroom
that is without an egress window.
2. They have hardwired (with battery backup) interconnected smoke detection installed
throughout the house as required for new construction by the Code.
After considerable discussion, Dean Taylor started to make a motion and asked if he was missing
anything?
Mr. Bennett stated that the Building Safety Office would want the intervening door between the
second basement bedroom and the porch basement to be removed, so that when the Fire
Department comes in they would have access directly to the basement to start searching that
room, without having to go through another door and figure out where things are.
After more discussion, Dean Taylor made a motion that Najah be allowed continuing use:
1. If he installs the egress window and window well in the basement bedroom.
2. If he installs hardwired interconnected battery back-up smoke detectors throughout.
3. If he removes the door separating the second bedroom from the exit.
4. If he installs an egress window in the attic bedroom.
After further discussion, Don Heck seconded the motion. Motion passed 2-1.
Randall Kamm called for case BBA-004-2006, 620 May Street, represented by petitioner Scott
Gillespie who is proposing to construct two (2) parking garage/carports (39 bays and 25 bays) of
non-combustible construction within three (3) feet of the property line without providing a fire rated
exterior wall as required by Table 602 of the Michigan Building Code.
Mr. Gillespie explained that the carport is at Prudden Place Apartments on the east property line,
bordering a railroad right of way. They will construct everything of metal, designed to match the
apartment buildings as best they can. Basically they will be protecting the apartment tenant's
vehicles from the elements.
Mr. Bennett explained that when a property line abuts a "public way" the owner is allowed to
include the distance to the center of the public way for purposes of determining fire separation-
distance. Railroad right-of-ways (ROW) used to be interpreted as "public ways", but with the
demise of railroads in recent years and the selling of ROW property to one or more adjacent
property owners, the railroad ROW is no longer interpreted as a public way.
The Building Safety Office does not object to the variance to consider the ROW as public way
given that.
1. The proposed structure is not normally occupied.
2. The proposed structure is non combustible construction.
3. The railroad ROW in question is unlikely to be abandoned since it connects the major
lines in and out of Lansing.
Mr. Bennett explained that Mr. Davis, Assistant Fire Marshal said via email that he had no
objection given that:
1. There were plenty of fire hydrants on site.
2. They could get the fire trucks down the side of the railroad ROW if needed.
3. There was substantial distance between the housing units and the proposed
structures.
Don Heck made a motion to consider the ROW as public way and allow Pruden Place Partners
LLC to construct the parking garages as proposed. Seconded by Dean Taylor, motion carried
unanimously.
Other Business: None
Public Comment: None
At 2:58 p.m., Don Heck moved to adjourn. Motion seconded by Dean Taylor. Motion carried.
Respectfully submitted,
James Bennett, Secreta
Draft date: June 22, 2006
ry
Approved date:
cc: Mayors Office Board Secretary
City Clerk's Office Building Safety Office Staff Representatives
Appeal folders Appeal applicants
Public file-original
CITY OF LANSING
BUILDING SAFETY OFFI(,-v,
BUILDING BOARD OF APPEALS
June 13, 2006
Yeah or Nay
BBA-003-2006 JAMES DRAKE
608 S. MIFFLIN AVENUE DON HECK
NAJAH NONA DEAN TAYLOR `
Motion passed 2-1.
Yeah or Nay
BBA-004-2006 JAMES DRAKE
620 May STREET DON HECK
SCOTT GILLESPIE DEAN TAYLOR
Motion passed unanimously.
SING DEPARTMENT OFF _ANNING AND
NEIGHBORHOOD DEVELOPMENT
M
316 N.Capitol Avenue,Suites C-1 &C-2 • Lansing MI 48933-1238
(517)483-4355 9 FAX: (517)377-0169
I C H t G BUILDING SAFETY OFFICE
Virg Bernero, Mayor
Date: April 20, 2006
To: City Clerk's Office
City Council Offices
City Hall Personnel
Mayor's Office
From: James Bennett
J49
RE:
BUILDING BOARD OF APPEALS
MEETING CANCELLATION NOTICE
The regularly scheduled Building Board of Appeals Meeting for Tuesday,
May 9, 2006, has been cancelled.
The next regularly scheduled meeting will be Tuesday, June 13, 2006, at 2:00
pm in the Conference Room at 316 N. Capitol Ave., Suite C-3, Lansing,
Michigan.
cc: Board Members (4)
Building Safety Lobby
Board Secretary
Appeal folders
Applicants
Public file-Original
Department of Planning and Neighborhood
Development
316 N.Capitol Ave.,Suite C-1—Lansing,MI 48933-1238—(517)483-4355—Fax(517)377-0169
Building Safety Office
Official Proceedings of the City of Lansing
BUILDING BOARD OF APPEALS
Held at 316 N. Capitol Ave. at 2:00 pm
February 14, 2006 `
The February 14, 2006 meeting of the City of Lansing Building Board of Appeals was
called to order at 2:05 pm by Chairman Randall Kamm. The following members were in
attendance.
Randall Kamm, Chairman
Donald Heck, Vice Chairman
James Drake
Members absent: Dean Taylor
Staff present: James Bennett, Secretary
Brian Davis, Assistant Fire Marshal
John Kloosterman, Plan Review Analyst
Petitioners present: Michelle Fossum, 2006 E. Michigan Ave.
Nancy Brandon, 2006 E. Michigan Ave.
Marty Ruiter, 626 Marshall St.
Public present: One male who declined to sign in.
The Board reviewed the minutes of the November 8, 2005 meeting. Chairman Kamm
requested a motion to approve the minutes. Motion to approve the minutes made by Mr.
Heck and seconded my Mr. Drake. Motion carried.
Old Business: None
New Business:
Case No: Address: Petitioner:
BBA-01-2006 2006 E. Michigan Michelle Fossum
1
Ms. Fossum requested relief from the requirement to provide a drywall ceiling in the
basement of the building she leases to operate Magdalena's Tea House. Ms. Fossum was
granted a building permit for minor renovations prior to opening the business as a Group
M, mercantile occupancy with a small accessory area for poetry reading, "open mike
nights", and performances by local musicians. The work under this permit was
completed, inspected, and approved. Over time Ms. Fossum has adapted her business
plan to place more emphasis on the performance space and would like to add food
service.
Ms. Fossum applied for a building permit and submitted architectural drawings to change
the use group to Group A-2,=add a kitchen area and additional toilet facilities. Mr.
Kloosterman reviewed the construction documents and noted the requirement for the
basement ceiling to be dry walled or fire suppression added in the basement. A phased
approval building permit and trade permits were issued so that work could begin, but
occupancy would not be granted until the matter was resolved.
The board questioned Ms. Fossum and the staff present about various alternatives. After
discussion Mr. Heck made the following motion.
1. That the electrical permit be amended to include the installation of hard wired,
interconnected smoke detection in the basement and first floor.
2. That smoke detection be added in the second floor residential space and
interconnected with the first floor.
When the above two items are completed, inspected, and approved, then occupancy
would be permitted for a maximum of sixty (60) days by which time the basement
ceiling shall be installed to comply with the letter of the code.
Second: Mr. Drake
Yes: Mr. Heck
Mr. Drake
No: Mr. Kamm
Motion carried.
Case No: Address: Petitioner:
BBA-02-2006 626 Marshall St. Mr. Marty Ruiter, GMB Architects
Background: 626 Marshall Street is the location of the new Pattengill Middle School. The
building design is similar in many respects to other school buildings designed by GMB
Architects and constructed around the State. The design includes a rotunda that is
classified as an atrium by the Michigan Building Code 2003 (MBC). Atriums are
required to have an automatic smoke control system to assure a tenable environment for
2
egress for a minimum of twenty (20)minutes by not letting the smoke layer fall to within
ten (10) feet above the walking surfaces. Previous editions of the code permitted the
design of exhaust method smoke control systems to be based on an "air changes per
hour" volume rate. This has been proven to be inadequate and the code currently requires
the systems to be a rational analysis engineered design. The smoke control system
proposed for the atrium was designed under previous code.
Mr. Ruiter addressed the Board to request that the smoke control system be accepted as
designed. In support of his request, he noted that the atrium is not part of the required
means of egress system for the second and third floors, only portions of the first(ground)
floor would exit through the:atrium. Second, the building is of non combustible
construction and no combustibles are stored or normally present within the atrium.
Mr. Ruiter submitted "Report of Test FR 4018 —Heat Release Rate Tests of Plastic Trash\
Containers" from the U.S. Department of Commerce,National Institute of Standards and
Technology(MIST) and a computer modeled simulation of the Pattengill atrium using
CFAST v6.06 software developed by NIST.
The Board questioned staff and Mr. Ruiter, and after discussion Mr. Heck made the
following motion.
To accept the 15,000 cfm smoke control system as currently designed for Pattengill
Middle School.
Second: Mr. Drake
Yes: Mr. Kamm
Mr. Heck
Mr. Drake
Motion carried.
Other Business: None
Public Comment: None
Motion made by Mr. Drake and seconded by Mr. Heck to adjourn. Motion carried.
Res ectfully submitted,
James E. Bennett, Secretary Draft Date: June 12, 200
Approved: 6 1113/0
Cc: Mayor's Office Board Secretary
City Clerks Office Building Safety Office
Appeal Folders Appeal Applicants
Public File-Original
3
y�tA S I NG DEPARTMENT OF PLHNNING AND
NEIGHBORHOOD DEVELOPMENT
M
316 N. Capitol Avenue,Suites C-1 &C-2 • Lansing MI 48933-1238
(517)483-4355 9 FAX: (517)377-0169
I C H I Cs 4' BUILDING SAFETY OFFICE
Virg Bernero, Mayor
Date: February 28, 2006 r N
p
To: City Clerk's Office c�i�
City Council Offices n
City Hall Personnel � t!
Mayor's Office
From: James Bennett
RE:
BUILDING BOARD OF APPEALS
MEETING CANCELLATION NOTICE
The regularly scheduled Building Board of Appeals Meeting for Tuesday,
March 14, 2006, has been cancelled.
The next regularly scheduled meeting will be Tuesday, April 11, 2006, at 2:00
pm in the Conference Room at 316 N. Capitol Ave., Suite C-3, Lansing,
Michigan.
cc: Board Members (4)
Building Safety Lobby
Board Secretary
Appeal folders
Applicants
Public file-Original
SING DEPARTMENT OF PLANNING AND
NEIGHBORHOOD DEVELOPMENT
316 N.Capitol Avenue, Suites C-1 &C-2 • Lansing MI 48933-1238
(517)483-4355•FAX: (517)377-0169
BUILDING SAFETY OFFICE
Virg Bernero, Mayor
Date: January 4, 2006 r
To: City Clerk's Office =; a
City Council Offices Cj1 i-n
City Hall Personnel = -
Mayor's Office
y rn W r�,t
f'6From: James Bennett
RE:
BUILDING BOARD OF APPEALS
MEETING CANCELLATION NOTICE
The regularly scheduled Building Board of Appeals Meeting for Tuesday,
January 10, 2006, has been cancelled.
The next regularly scheduled meeting will be Tuesday, February 14, 2006, at
2:00 pm in the Conference Room at 316 N. Capitol Ave., Suite C-3, Lansing,
Michigan.
cc: Board Members (4)
Building Safety Lobby
Board Secretary
Appeal folders
Applicants
Public file- Original