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HomeMy WebLinkAbout1988 Various Boards Meeting Minutes Part 3 FINAL -102 July 26, 1988 f Office, Board of Water and Light Lansing, Michigan Tuesday, July 26, 1988 The Board of Commissioners met in regular session at 5:30 p.m.and the meeting was called to order by Chairman Hassler. Roll- Cal-1 Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Strolle, Williams, and Chairman Hassler--8 Absent: Commissioner --0 Quorum The Secretary declared a quorum present. General Manager Pandy and Executive Staff were present. (An attendance list of staff members is available from the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all present. BY COMMISSIONER BELEN SECONDED BY COMMISSIONER JESSOP Approval of Minutes That minutes of regular session of June 20, 1988 be approved as mailed. Adopted unanimously. Res' 88-7-8 - Phil-lip Hassler BY COMMISSIONER JESSOP re-elected Chairman; Jack SECONDED BY MCCOMB Sebolt re-elected Vice-0iair- man; Gerald Williams re- Resolution 88-7-8 elected Chai nnan Pro-Tem; Joseph Pandy re-appointed Move the reelection of Chairman Hassler, Vice-Chairman Sebolt and General Manager; Kellie Chairman Pro-Tem Williams for the ensuing year or until their Willson re-appointed Internal successors are elected. Further, that General Manager Pandy, Internal Auditor; Mary Sova re- Auditor Kellie Willson and Board Secretary Mary Sova be reappointed appointed Secretary of the Board for the ensuing year or until their replacements are appointed. Adopted unanimously Public C,ampnts CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. Presentation by MM Re: Andrew Morrison from Market Opinion Research presented information to response to custaner survey the Board on the customer response to a survey that was done to 600 BWL customers from May 7-13, 1988. Customers were surveyed about the activities and services of the BWL. This years survey provides more of a challenge than the last two years have. It was noted that more July 26, 1988 103 young people in the 18-29 age group were surveyed than in the past (approximately 3%) but that this shouldn't have that much of an impact on the statistics. Chairman Hassler noted that more communication and bill inserts were used this year. Resolution 88-7-9 COMMITTEE OF THE WHOLE July 26, 1988 Res. 88-7-9 Board of Commissioners CArmdttee of the Whole Board of Water and Light Report re: Lansing, Michigan 1. Central Steam District; reliability evaluation Dear Ladies and Gentlemen: (with Ottawa cycle off) 2. Share the Success FY The Committee of the Whole reports it met on Tuesday, July 12, 1988 '87-88 Results with the General Manager and staff to receive a briefing on the 3. Share the Success FY following items: '88-89 Measures and Cost Benefit Analysis 1. Central Steam District; reliability evaluation (with Ottawa cycle off) 2. Share the Success FY '87-88 Results 3. Share the Success FY '88-89 Measures and Cost Benefit Analysis Present were Commissioners Williams (Chair Pro Tem) , Hassler, Jessop, and Strolle. Absent were Commissioners Belen, Evans, McComb and Sebolt. The Commissioners heard the results of selected scenarios that would improve Central Steam District system performance and reliability. The total cost of the proposed Central Steam District reliability project is estimated to run approximately $400,000. This will require the authorization of an addition to the FY 1988-89 Budget. The General Manager presented a report on the Share the Success program for Fiscal Years 1987-88 and 1988-89. Following the review and discussion, the Commissioners suggested that the performance measures for fines and citations be modified to provide more weight for serious or fatal accidents. The meeting was held for informational purposes only, and no action was taken. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER JESSOP SECONDED BY COMMISSIONER EVANS That the Committee of the Whole Report be approved as presented. Adopted unanimously. 105 July 26, 1988 HUMAN RESOURCES Res. No. 88-7-3 That the request of Nolan M. Owen for a continuance of his leave of absence be granted, without pay and without Continued leave of accumulation of pension service credit and seniority, until absence for Nolan January 1 , 1989. This will extend his leave for a total M. 0wen of twenty-three and eighty-one hundredths (23.81) years. Mr. Owen is the AFL-CIO Representative on the United Community Chest staff. This leave is granted in accordance with the BWL's Leave of Absence policy for public or community service leaves. -------------------- We will be submitting a recommendation regarding his pension next month. (See letters from Max Zemer, Business Manager of Local 352 IBEW and from Mr. Owen attached). -------------------- Res. No. 88-7-4 That Mr. Mark S. Nelson, shift supervisor, Erickson Station, be awarded $131 .43 for his suggestion to hook up Suggestion Award to a line from the suction line of the degasifier pump to the Nbr'k W. Nelson analyzer for sampling. Mr. Nelson's suggestion should increase productivity and save chemical costs, water, and wear on the equipment. ------------ ------- By using this suggestion, it is estimated the BWL will save $564.34 the first year. -------------------- Res. No. 88-7-5 That Mr. Frank Keck and Mr. Ken Meir, Power Plant Operator B's, Eckert Station, be awarded $305.00 ($102.50 each) for Suggestion Award to their suggestion to make a valve change on the wastewater Hank Keck and line to the surge tank. The operation will reduce annual Ken Meir cleaning time and reduce equipment costs. -------------------- By using this suggestion, it is estimated the BWL will save $2,300 the first year. -------------------- July 26, 1988 107 BY COMMISSIONER MCCOMB SECONDED BY COMMISSIONER JESSOP Res. 88-7-1 and 88-7-2 RESOLVED, That Resolution 88-7-1 and 88-7-2 (Administrative) approved of the General Manager's Recommendations be approved. Dick Rice spoke re: Dick Rice from the Electric Test Group spoke and answered questions on radio system the Motorola Communications and Electronics radio system that the BWL is purchasing. He stated the new radio system is safer and more efficient than what we are presently using. BY COMMISSIONER SEBOLT SECONDED BY COMMISSIONER WILLIAMS Res. 88-7-3 through RESOLVED, That Resolution 88-7-3, 88-7-4, 88-7-5 and 88-7-6 88-7-6 approved (Human Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER MCCOMB SECONDED BY COMMISSIONER JESSOP Res. 88-7-7 approved RESOLVED, That Resolution 88-7-7 (Steam) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS Qiaisman Hassler receives Mr. Pandy noted that Chairman Hassler received Honorable Mention in honorable mention the STATE JOURNAL "88 GREATS". CFCO power loss Mr. Pandy reported that Consumers Power Company lost a major 700 MVA transformer which was struck by lightning. CPCO purchased 40 MW from the BWL at 100% load factor for one week; BWL profit on this transaction was $51,500. New BWL video shown re: The BWL video "MANAGING THE CUSTOMER EXPERIENCE", was shown to the better serving our custcmers Commissioners. The film describes the BWL's five-year plan for excellence to better serve customers. The video was developed for employee information and to help them become more customer conscious. The Commissioners suggested also showing the video to community groups and customers. August 1988 meeting dates The August Board Meeting will be held on August 30. There will be a Committee of the Whole Meeting on August 16. Adjournment On motion of Commissioner Strolle, the Board adjourned at 6:34 p.m. Rosemary Sullivan, Assistant Secretary Filed: July 27, 1988 Rita M. Bauman, City Clerk 1)7122/198 8 CITY OF LANSING PUBLIC SERVICE DEPARTMENT TRANSPORTATION DIVISION OFFICIAL PROCEEDINGS OF THE TRAFFIC BOARD OF THE CITY OF LANSING MEETING OF JULY 13P 1988 CALL TO ORDER The meeting was called to order at 7: 31-1 pm by Chairperson Smith. Roll Call Present : Roard members: Ar.ambula, Cook, Linhart , Person, Riddle, Smith, WiLkinson, Wrooel Absent : `hoard members : None Excused ,Absences There were no excused absences. Items for Suspension of Rules It was moved by Mr. Person and supported by Mrs. WiLkinson to consider all Reports of the Secretary except 433-50 as action items . Yeas - h 'Nays - , C a r r i e;i. APPROVAL OF MINUTES It was moved by MIr. Person and supported by Mrs. Linhart that the minutes be approved with one correction on page 10 under New eusiness Item No. 5 that the street name sign was missing only and not the post. Yeas - b Nays - J Carried. It was moved by ;sirs . Linhart and supported by Mr. Cools that the three minute time period be extended to aLLow for comments by the public on agenda items. Yeas - 6 ?'days - C a r r i ed. 14essrs. ArambuLa and Riddle arrived at the meeting. 07/22/1988 PUBLIC COMMENT ON AGENDA ITEMS DOWNTOWN MERCHANT ASSOCIATION'S PROPOSAL FOR CHANGES IN TRAFFIC AND PARKING OPERATIONS ls. Carole Richey proprietor of Parrinello' s and president of the Downtown Merchants Associaton adJressed the Traffic Board regarding a proposal to change the traffic and parking operation on the swashington '�',13LL and Katama.zoo Street. Hs. Richey stated there are some recommendations from the Transportation Division staff that cannot be accepted by the DMA. 1 . Free parking time versus the instatLation of meters on a one year triaL period. How can this be done on a year trial basis and what about the cost of the meters! The DMA does not want change for change' s sake, and thinks their free parking oroposaL is a good and a positive change for downtown Lansing. 2. Increased cost in enforcement - The Customer Service Representative will monitor the parkinge answer questions, distribute maps and give direction to the public: this is not just enforcement. The position is one of good wi LL and not a negative job. ?pis. Richey asked why one position wouLd cost $40,000 when there are three persons working in the maLL at the present time? Ms. Richey stated employees working in the downtown area park in prime parking areas. Nigh price tickets should not be issued to shoppers, .and what type of tickets could be issued other than ` 8.n0 tickets? There is no parking turnover when vehicles are parked for many hours at a meter. The first tevet of the parking garages should be used for turnover parking. iQ is not tooking for a "free ride" but they want to revitalize the down- town and want a commitment from the City of Lansing. Ms. Ritchey stated she does not go aLoncg with the compromise proposat from the Transportation Division staff and finds it ridiculous and insulting. Pis. OiLtie L. DoweLL a member of the Downtown Merchant Associ- ation reiterated the comments from Ms . Richey. TRAFFIC CONTROL REQUEST : PATRICIA ST. AND SUNROSE AVE. Mr. Brian 3uysse of 5336 Sunrose Avenue stated there is a high rate of soeed on Sunrose Avenue at approximately 45 mph . The street is used as a "cut thru". The children cross at the intersection of Patricia street and Sunrose Avenue and stop signs shouLd help to aLLeviate the speeding and add to the safety of children crossing at the intersection. COMMUNICATIONS AND PETITIONS 1 . Public Safety and Properties Committee "•linutes a. Meeting of Tuesday April 26, 1988 b. Meeting of Tuesday May 10 , 1988 C. Meeting of Tuesday May 26, 1988 d. Meeting of Tuesday June 21 , 1988 2 07/22/1988 Received and placed on file. 2 . Petition from residents of Kensington Road. Referred to the Secretary. 3. Letter from Mrs. Daisy Bennett of 532 E. Nlorthrup Street. Referred to the Secretary. 4. Letter from Mr. and firs. Shaw of 1011 FerLey Street Referred to the Secretary. 3. Letter from Mr. Jim Reuschleinp manager of 1/ iLLage Town- houses Cooperative. Received and placed on file. REPORTS OF THE SECRETARY 1 . TF,AFFIC CONTROL REQUEST: PATRICIA ST. AND SUNROSE AVE. Mr. FLo.yd reported a request was received from ?'�Ir. Brian Buysse to instaLL stop signs at the intersection of Patricia St . and Sunrose Ave. There have been no accidents at the intersection in the Last five Years. The safe approach speed is 13 mph because of an obstruction at the northeast corner. The southeast corner is vacant and there is a cut -de-sac to the east . Stop signs previously installed at Sunrose and aLuebeLL have not reduced the speed of traffic. There is very tittle traffic in this area. The staff recommends that the request for stop signs be denied and that a yieto sign be installed on Patricia Street at Sunrose Avenue. At a "T" intersection the non-through street should not have the priority because of drive expectation. ilir. Cook asked if the obstruction was the small evergreen tree at the northeast, and is a yield control necessary. Per. FLoyd stated yes, the evergreen tree will eventuatLy grow Larger. It was moved by Mr. Arambula and supported by i,ls. WiLkinson that the Traffic Board concur with the staff recommendation to install a yield sign on Patricia St. at Sunrose Avenue. Yea s - s Nays - Carried. 07/ 22/1988 2. Dt?WdTOWN MERCHANT ASSOCIATION'S PROPOSAL FOR CHANGES IN TRAFFIC AND PARKING OPERATIONS Mr. 9erridge stated the Downtown Merchant Association' s Proposal for Changes in Traffic and Parking Operations contains work from Past Traffic Board studies and recommendations. Meetings have been held on these issues since September, 1987 and are not new to either party. The City of Lansing did request the opening of the :300 block of the Washington Mall only in conjunction with converting Kalamazoo Street to two-way traffic operation. The opening of the Washington MaLL is a complex issue which entails parking control, time Limit enforcement and free parking in one smaLL area. There has not been much compromise on some of the issues between the City of Lansing, Transportation Division and the Downtown Merchants Association. The compromise plan should protect ev- eryone ' s interest. Mr. Berridge stated the compromise plan presented by the Transportation Division is not ridiclous or in- sulting to anyone. Installation of meters would come from the existing operating budget and can be used as spare meters after they are removed. The mall has the greatest demand for parking than any other Location in the City of Lansing and turn over is critical and time zone enforcement is difficult . Cost of enforcement will come from the revenue. The downtown businesses are not Losing parking spaces to the downtown office buildings. There is parking space available in the parking garages with a mix of hourly and monthly parking, and the addition_L expansion to the iJorth Grand Garage. The Traffic Poard members continued to discuss the report with input from :Mr. Berridge and the members of the DMA. It was moved by f1s. WiLkinson and supported by Pirs. Linhart that the Traffic Poard Sub-Committee meet on July 21 , 198E at 7:CAD AM in the Transportation Division office at 219 N. Grand Ave. Yeas - -3 Nays - 0 Carried. Mrs . Linhart and 'Messrs. Arambula and Person were reappointed to the Traffic 3oard Sub-committee by Chairperson Smith. "•fir. 9erridge reported there wiLL be no Traffic Board meeting for the month of August 1988, and a Special Traffic ioard meeting is scheduled for JuLy 27, 1988. It was moved by !Ms. Wilkinson and supported by Mrs. Linhart that the Traffic Soard meet on July 27, 1988 at 3 :.30 tam. Yeas - ,Nays - 0 Carri ed. 4 07I22/1988 3. BAKER STREET . PROPOSED CHANGE IN PARKING REGULATIONS Mr. Perridge stated that Maker Street will be rebuilt to three Lanes with a Left turn center Lane. ALL parking wiLL have to be removed from both sides of Baker Street from PennsyLvania to Washington and changed to one hour narking on the south side from Cedar to 6aity Street. There should be enough width for a lane Of movin.q traffic. It was moved by f1r. Arambula and supported by Mrs. Linhart that the Traffic Board concur with the foLLowing recommendation of the Transportation Division staff : Name of Side Restriction Street Restd. From TO Delete NPAAT raker North Pennsylvania Washington Except military x, tractor-trailer truck pkg only between Herbert 150 ' east of 4ashington Delete NPAAT Baker South Washington Herbert Delete L Hr Pkg 3aker South Herbert Bailey Add NPAAT Baker North PennsyLvania Washington Add N)PAAT Baker South Washington Cedar Add L Hr Pkg Baker South Cedar Bailey 3AW-6FM Yeas - 8 Nays - n Carried. 4. 80S PARKING : 1C0 BLOCK S. WALNUT STREET Mr. Ransom reported the Transportation Division has posted the area on Yatnut_ Street that was used for bus parking to No Parking Bus OnLy for a ninety day trial period. In the past the Trans- portation Division has worked with the State of Michigan to allow buses to park on WaLnut Street for visitor parking to the State Capitol. The Transportation Division staff recommends the No Parking Pus Only restriction on the east side of WaLnut Street from ALLegan Street to 230 feet north of ALLegan Street be made .permanent. There have been no problems or complaints since the No !parking Sus OnLy signs were instaLLed. 5 ,07/22/1988 It was moved by Mr. Cook and supported by Mr. Person that the Traffic tioard concur with the Transportation Division staff rec- ommendation to establish a No Parking Bus Only restriction on the east side of Walnut Street from Allegan Street to 23C feet north of ALleg-an Street . Yeas - s' Hays - 0 Carried. S. N'0 P4RKINC, CAPITOL AVENUE ',1r. Ranson reported .a request was received to install a traffic signal at the intersection of Capitol Avenue and Lenawee Street. An investigation by the staff revealed right angle accidents oc- curred from southbound Capitol traffic and westbound Lenawee traffic because of visibility problems at the intersection. Staff recommends removing two parking spaces to increase southbound and westbound visibility by estabtishing a No Parking zone on the east side of Capitol Avenue from Lenawee Street to a point 160 feet north of Lenawee Street. Mr. Cook stated the State Employee Credit Union is on one corner and this an oven area. Because of the large volume of right turn on red traffic at the intersection of Capitol and Kalamazoo Street, No Turn On Red signs should be installed to eliminate the number of accidents. Mr. Berridge said because of the lack of gaps of traffic on Capitol Avenue, the no parking zone should improve the visibility and permit traffic to get across the intersection safely. Traf- fic signat studies will be ,made at Capitol Ave. " Lenawee and Lenawee St. and Grand Avenue. Mr. Floyd reported that traffic count studies will be made on Lenawee Street :after Kalamazoo Street becomes a two-way opera- tion. He suggested that no change such as "No Turn On Red" be made on Kalamazoo until the effects of the two-way change are made. It was moved by Mr. Cook and supported by Mrs. Linhart that the Traffic hoard concur with the Transportation Division staff rec- om.mendation to establish a No Parking zone on the east side of Capitol Avenue from Lenawee Street to a point 160 feet north of Lenawee Street. Yeas - 3 Nays - 11 Car ri ed. b. STRATHMORE ROAD PARKING REQUEST Mr. Ransom stated that the Transportation Division received petitions from residents in the 2200' and 2300 blocks of Strathmore Road to repeal the current parking restrictions. 6 07/2:2 /1988 Strathmore Road is 25 feet wide and does not attow parking on both sides of the street. The Transportation Division staff recommendation is to repeal the One Flour Parking 3 :L5^ AM to 6:00 P I and the No Parking 7AiM to 7PM except Sundays; and that parking be attow•ed on moth sides of Strathmore Road from 'Washington Avenue to Rockford Road. It was moves; by Mrs. Linhart and supported by Mr. Arambuta that the Taffic hoard concur with the recommendation by the Transpor- tation Division staff. Yeas - 8 Plays - rj Carried. 7. TRAFFIC CONTROL REQUEST: HAVERILL AVE. AND WINTERSET DR . Mr. Floyd reported that a request was received from Mr. Jim Reuschtein, manager of Viltage Townhouses Cooperative requesting a yield siren at the intersection of Haveritt Avenue and Winterset Drive. The intersection is a "T" intersection and the safe ap- proach speed is 20 mph when cars are parked in a lot in the southeast quadrant. Transportation Division staff recommended that a yield sign be instatted on Nlinterset Drive at Haverhilt Avenue. It was moved by ?GIs. Witkinson and supported by Mrs. Linhart that a yield sin be instalted on Winterset Drive at Haverhill Avenue. Yeas - 3 Nays - 0 Carried. ACTION ITEMS None TABLED ITEMS i\one INFORMATIONAL ITEMS 1 . MICHIOAP! MANUAL OF UNIFORM TRAFFIC CONTROL DEVICES Mr. r3erridge distributed a copy of the Plichigan illanuat of Uni- form Traffic Control Devices to each Traffic Board member. The manuat contains principals and practices of traffic engineering. Mr. Berridge requested that the manual be returned to the Transportation Division if a board member no longer remains on the Traffic Coard. If any member has a question about the manuat he or she may ask Messrs. Spagnolty, Floyd and Ransom. r 07/22/1 988 2. REVISION TO THE TRAFFIC CODE Mr. Berridge stated the copies of revisions to the traffic code might contain information not retative to the Traffic Board which can be discarded. 3. NORTH GRAi,0 PARKING GARAGE EXPANSION Mr. Berridge stated the starting date for the North Grand Park— ing Garage expansion will be JuLy 19, 1988. 4. 9ID OPEiNING FOR THE SOUTH CAPITOL GARAGE RESTORATION' flr. 9 e r r i d g e reported the bids for the South Capitol Garage restoration witL be opened on July 19, 1988. 5. DO'WNITOWN, PARKING STUDY Mr. fierridge reported that the downtown parking study is behind scheduLn. Transportation Division is working with the consultant to try to resolve the delay. OLD BUSINESS 1 . TRAFFIC AT CLIPPERT ST. AND GRAND RIVER AVE. Mr. Person asked if the staff has investigated the intesection of CLiopert Street and Grand River Avenue. Mr. ('erridle said he has investigated the area and because of the an,) Le of the intersection it shouLd not be difficuLt for traffic to cross. The Transportation Division staff wiLL make a study and traffic volume counts wilt be made on CLippert Street. A tr.:-iffic signal could be instaLLed to prohibit southbound through traffic . Mr. Person suggested instaLLing an arrow for right turns. NEW BUSINESS 1 . COM,,ll NlICATIO%!S FOR CITY PROJECTS Mrs. Linhart suggested that transcripts of meetings pertaining to City neighborhood projects be forwarded to the Traffic Goard meetings in advance of the meeting. ;ors . Linhart stated she received a communication from the Eastside Association the same day of the meet ing. ITEMS FOR SUSPENSION OF THE RULES None PUBLIC COMMENT ON NON—AGENDA ITEMS 8 07122d1988 None ADJOURNMENT It was moved by Mr. Person that the meeting be adjourned. The meeting adjourned at 9: 40 tam. Respectfully submitted,. LANSIN G TRAFFIC 90ARD David A. Berridge 0' Secretary .:J Janu--v 26, 1988 1 Office, Board of Water and Light Lansing, Michigan Tuesday, January 26, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, McComb (arrived at 5:36 p.m.) , Schoettle, and Chairman Hassler--5 Absent: Commissioner Jessop, Sebolt, and Williams--3 Quorum The Secretary declared a quorum present at 5:36 p.m. Staff Present General Manager Pandy, Assistant General Manager Wolfe, Treasurer/Controller Nourse, Fuels Procurement Manager Abood, Water Utility Director Dugan, Security Administrator Cochran, Public Information Analyst Johnsen, Engineering Planning Director Ophaug, Communications and Marketing Director Strickler, Marketing General Superintendent Taylor, Financial Planning Director Tousley, Human Resources Director Vander Jagt, Staff Attorney Wilhite, Internal Auditor Willson, Steam Utility Director Woodard-Yank, Purchasing Superintendent Younglove, and Secretary Sova were present. Invocation The Invocation was given by Chairman Hassler. Pledge of The Pledge of Allegiance was said by all present. Allegiance BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER EVANS Approval of That minutes of rescheduled regular session of December 15, Minutes 1987 be approved as mailed. Adopted unanimously. Public Comnents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Conminication from A letter was received from S. Mark Wilkerson, 841-107 Brookside, S. Mark Wilkerson Lansing, with regard to not being properly notified of the BWL's re: application Customer Application Charge when establishing service in his name. charge Mr. Wilkerson's concerns were addressed in a written response from General Manager Pandy, dated January 13, 1988. The Commissioners concurred with the response and the letter was placed on file. 2 January 26, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: HUMAN RESOURCES Res. No. 88-1-1 That a three year contract be awarded to Sparrow Three-year contract Hospital, Lansing, Michigan, in the amount of $61,950 awarded to Sparrow for Personnel Testing (Audiometric, Asbestos, Hospital for Respirator), effective February 1, 1988. This was the "Personnel Testing" bid received of seven possible bidders. effective 2-1-88 ------- ------------ This was a unit price bid based on estimated number of tests to be performed. Base bid was for one year with alternate bids requested for three years. For con- tinuity purposes, we are recommending a three year contract which provides for cancellation at the end of each contract year, at the BWL's option. Those declining to bid were: Pro-Tech Services, Inc.; Lansing General Hospital; Industrial Health, Inc.; Blue Cross Network - Health Central; St. Lawrence Hospital (no response 1987, declined to bid in 1984), and Ingham Medical Hospital (no response 1987, 1984 estimated bid was $84,956). -------------------- Res. No. 88-1-2 That Mr. Raymond Polihonki, Jr. , an Underground Super- Suggestion award to visor in the Line Construction Department, be awarded Raymond Polihonki, Jr. $174.50 for his suggestion to change broken bushings in the primary side of padmount transformers with a Fiber Insulated Rod. Mr. Polihonki's idea will reduce the time required to change the broken bushings by elimin- ating the need for switching and an outage. -------------------- By using this suggestion, it is estimated that the BWL will save $995.00 the first year. -------------------- January 26, 1988 3 HUMAN RESOURCES (Continued) Res. No. 88-1-3 That Mr. Dean C. Hedglen, a Water Field Representative in the Water Transmission and Distribution Department, Suggestion award to be awarded $241.40 for his suggestion to use a wire reel Dean C. Hedglen holder that he designed, when installing remote meters. The holder has been used by the meter change-out crew for approximately three months and it has proven to be a functional and labor saving device. -------------------- By using this suggestion, it is estimated that the BWL will .gave $1,664 the first year. -------------------- MARKETING Res. No. 88-1-4 That a new peak billing demand of 3,800 kW be estab- New Peak billing lished for Lindell Forge for the months of June, July demand established and August, 1987. In addition, that the BWL establish for Lindell Forge for a credit on ratchet charges for kW demand registered by June, July & August Lindell Forge between October 10, 1987 and the August, 1987; a credit on 1988 read date. The credit may be redeemed by Lindell ratchet charges for as demand-free capacity any time between January 26, KW demand authorized 1988 and August 31, 1990. The credit may be claimed against any billing demand above 2,200 kW. -------------------- We believe this will act as an incentive to return business to its Lansing facility. We have discussed this proposed rate treatment with Lindell officials and they are agreeable to it. -------------------- PENSION Res. No. 88-1-5 That Ronald F. Butts, Superintendent of Purchasing Early reduced pension Department, be placed on an early reduced pension of authorized for Ronald $1,168.32 per month effective February 1, 1988. He has F. Butts, effective selected Option III which provides for his wife, Peggy 2-1-88 A. Butts, to receive 80% or $934.66 per month for the rest of her life if she survives him. Mr. Butts has worked for the BWL for 22.40 years and is 59 years of age. -------------------- 4 January 26, 1988 STEAM 88-1-6 That the BWL enter into a new coal supply contract with Costain Coal, Inc. to replace the current contract with New Coal Supply Corr- Industrial Fuels Corporation (IFC), which expires on tract with Costain 12-31-88 for coal requirements of Moores Park Steam Coal, Inc. to replace plant. IFC is now owned by Costain. The major terms of current contract with this contract are as follows: Industrial Fuels Corp. (to expire 12-31--88) 1. Modified stoker coal use in 1988 is priced at for coal require ants $51.19 FOB mine in accordance with current contract of Moores Park Steam which expires 12-31-88. Estimated tonnage is about Plant 10,000 tons. 2. Effective l/l/88 a nine year all-requirements contract for coal burned in Moores Park Steam Plant. 3. Base price of $26.00 per ton FOB mine for all non- stoker coal with standard escalation provisions. 4. Beginning 1-1-89 stoker coal (if required) will be priced at $4.50 per ton above the escalated base price of regular steam coal ($26.00 base). 5. Market price re-openers in 1992 and 1994 for base prices effective 1-1-93 and 1-1-95. 6. Annual volume will be equal to Moores Park Steam Plant burn, estimated to be 100,000 tons per year after 1988. 7. Quality specifications are 13,000 BTU/lb., max. 10% ash, max. 1.00% sulphur with premium and penalty provisions for deviations from spec. -------------------- These terms are expected to save BWL over $600,000 in calendar 1988, and restore us to market price levels in 1989 and beyond. -------------------- Respectfully submitted, V61111- Joseph Pandy,�Jr- General Manager January 26, 1988 5 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88-1-1 through RESOLVED, That Resolutions 88-1-1, 88-1-2, and 88-1-3 (Human 88-1-3 adopted Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88-1-4 adopted RESOLVED, That Resolution 88-1-4 (Marketing) of the General Manager's Recommendations be approved. Commissioner McComb questioned how Resolution 88-1-4 relates to other companies who may be in a similar situation. General Manager Pandy stated that in the past, a waiver would be given on the "ratchet demand charges" to companies who had demonstrated they were closing an operation, for the year in which they ceased operation or disconnected equipment. Mr. Pandy noted that this new approach, establishing a credit bank, protects the BWL's interest while holding out an incentive for the company to bring back more electric load into the BWL's system. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88-1-5 adopted RESOLVED, That Resolution 88-1-5 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88-1-6 adopted RESOLVED, That Resolution 88-1-6 (Steam) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS New WELODE TO General Manager Pandy handed out a WELCOME TO LANSING folder LANSING folder and containing a new brochure put together by the Board of Water and Light brochure introduced and the City of Lansing Economic Development Corporation. The brochure features a full page on the low-cost utility service offered by the Board of Water and Light (BWL) . The BWL sponsored the folders and the City paid for the new brochures. Other information pertinent to the City of Lansing will also be contained in the folder. 6 January 26, 1988 FY 1987 Annual Report The BWL Fiscal Year 1987 Annual Report was handed out. The emphasis features creative of the report is on people--featuring the creative talents of BWL talents of•BWL employees and their families in arts and crafts. The report employees and their summarizes achievements of FY 1986-87 goals and objectives established families in the strategic planning process and outlines the "Share the Success" program developed in 1987. Fly Ash projects to General Manager Pandy noted that the January 18,1988 issue of the receive DEFD financial PUBLIC POWER WEEKLY featured an article on the following two BWL fly support ash projects: (1) the application 'of fly ash to farm land and (2) the experiment of using fly ash sludge to make wallboard for use as a building material. The American Public Power Association DEED (Demonstration of Energy-Efficient Developments) program is providing &�nanci support for both project+. BWL submits an appli General Manager Pandy handed out a copy of an application submitted by cation for the E. F. the BWL for the E. F. Scattergood System Achievement Award for APPA Scattergood System member systems. Judging for this award will occur next week at the Achievement Award APPA headquarters in Washington, D. C. The award will be presented at the National APPA Conference to be held June-27-29 in Seattle, Washington. The winner will be notified sometime in February. Performance indicators Data comparing the BWL to public power utilities having 50,000-100,000 show BWL ranks favorably customers was handed out. Performance indicators clearly showed the as compared to utilities BWL ranked favorably in many categories. Among those reviewed were: having 50,000-100,000 (1) revenue per kWh, (2) revenue per customers, (3) return on customers investment, and (4) debt-equity ratio. The APPA utility performance measurements will be reviewed in more detail at the February 9 Committee of the Whole meeting. BWL "Share the Success" General Manager Pandy reported that the BWL's "Share the Success" program in the fore- program was covered at APPA's Performance Measurements Committee front of APPA member meeting. He noted that the BWL's "Share the Success" program is utilities indeed a unique plan, and is in the forefront of APPA member utilities. He added that Colorado Springs has a program applicable only to top management. Memphis Gas, Light and Water is starting a plan this year with seven performance measures with a 2% bonus. Their money will be pooled and distributed to all employees in even dollars, regardless of pay level. Non-Bargaining General Manager Pandy reported that on January 21, Non-Bargaining Unit Clerical unionization clerical efforts to unionize were voted down 44 to 15. voted down COMMISSIONERS' REMARKS Status of "Share the Commissioner McComb inquired on the status of the point totals for the Success" Program "Share the Success" program. January 26, 1988 7 Share the Success General Manager Pandy reported that the year-to-date total for - continued December, 1987, was 355 points--an improvement of 24 points over the previous month. It was noted that in calculating the heat rate for the fiscal year, the Erickson Station outage was overlooked. With Erickson being the best heat rate on the system and being out of the picture for three weeks, the heat rate goal will be impacted. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Fxcused absences That the absences of Commissioners Jessop, Sebolt and Williams be excused. Adopted unanimously. Adjournment On motion of Commissioner Schoettl.e, the Board adjourned at 5:57 p.m. 41V nary E. Sova, Secretary Filed: January2727, 1988 Rita M. Bauman, City Clerk BOARD OF WATER & LIGHT JANUARY 26, 1988 8 February.23, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, February 23, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Boll Call Present: Commissioners Belen, Evans, McComb, Sebolt, Williams, Schoettle, and Chairman Hassler--7 Absent: Commissioner Jessop--1 Quorum The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Treasurer/Controller Nourse, Risk Manager Blanchard, Security Administrator Cochran, Administrative Services Director Graham, Engineering Director Elashkar, Public Information Analyst Johnsen, Information Systems Director Kingsbury, Engineering Planning Director Ophaug, Electric Utility Director Peffley, Communications and Marketing Director Strickler, Marketing General Supervisor Taylor, Financial Planning Director Tousley, Staff Attorney Wilhite, Internal Auditor Willson, Steam Utility Director Woodard-Yank, Purchasing Superintendent Younglove, and Secretary Sova were present. Invocation The Invocation was given by Chairman Hassler. Pledge of The Pledge of Allegiance was said by all present. Allegiance BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of January 26, 1988 be Minutes approved as mailed. Adopted unanimously. Public Comments CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. February 23, 1988 9 COMMITTEE OF THE WHOLE REPORT Curndttee of the February 23, 1988 Whole Report Re: (1) Financial Board of Commissioners Reporting Board of Water and Light (2) Combined Lansing, Michigan Billing (3) Economic Dear Ladies and Gentlemen: Development Incentives The Committee of the Whole reports it met on February 9, 1988 to receive (4) APPA a presentation on the following items: Performance Mimes 1. Financial Reporting 2. Combined Billing 3. Economic Development Incentives 4. APPA Performance Measures Present were Commissioners Belen, Evans, Hassler, McComb, and Williams. Absent were Commissioners Jessop, Schoettle and Sebolt. A summary of the topics discussed follows: 1. FINANCIAL REPORTING - A briefing on monthly financial and ............................................................................................... performance reports currently being sent to the Commissioners was presented by Director of Financial Planning Dana Tousley. The Commissioners concurred that the detail contained in the reports could be streamlined. Resolution 88-2-1 Res. 88-2-1 That the monthly financial and performance reports currently Monthly financial/ sent to the Commissioners be reduced to the following reports: performance reports to be condensed - Monthly Consolidated Financial Statement with notes - Monthly Budget Variance Analysis with notes - Monthly Share the Success Update with notes 2. COMBINED BILLING - An in depth presentation on the status of ................................................................................ the Combined Billing System was given by Director of Information Systems 011ie Kingsbury. The presentation covered the (a) original scope of the project, (b) additions, (c) system software, (d) requirements added during the design of the system, (e) new billing philosophy, and (f) project team stability. Phase II consists of subsystems not included in Phase I and will be prioritized according to user request. The Committee of the Whole recommends: Resolution 88-2-2 Res. 88-2-2 That the Board confirm the new completion time line of Revised completion January 1, 1989 for Phase 1 of the Combined Billing System. date for Combined Billing projected confirmed for 1-1-89 10 February 23, 1988 3. ECONOMIC DEVELOPMENT INCENTIVES - A detailed presentation on economic development incentives and; billing demand ratchet relief was presented by Director of Financial Planning Dana Tousley. Actions to promote investment in the community and to address difficulties .encountered by some industrial customers with the BWL's current demand rates are hereby recommended: Resolution 88-2-3 ..___._............._... ....._............................................ Res. 88-2-3 - 1. That the Commissioners tentatively approve the proposed Economic development economic development rider presented in Attachment A. rider for industrial customers on Rates 2. That the Commissioners tentatively approve changing the 4 or 5 billing demand ratchet from 75% to 60% in Electric Rate 4 - Public Hearing set - Large General Service and Electric Rate 5 - Primary for 4-12-88 Service (see Attachment B for rate schedules) . - Proposed rate changes to be 3. That the date of the public hearing to solicit public filed with input on the above rate changes be set for Tuesday, April City clerk 12, 1988. This date could mean a June 1, 1988 effective - Proposed rate date for the proposed changes. change discussed with interested 4. That staff be directed to file the proposed rate changes industrial customers and the public hearing date with the City Clerk as required by the Lansing City Charter on or before Thursday, February 25, 1988. 5. That staff be directed to confer with interested industrial customers prior to the Board meeting on Tuesday, February 23, 1988 to determine their level of interest and potential use of the proposed rate changes. APPA Performance 4. APPA PERFORMANCE MEASURES - The American Public Power Measures reviewed Association ( ...... ............................................................................................................... APPA.. ) performance.. .. meas.. ures, which compared the BWL to other comparing BWL with APPA utilities having 50,000 to 100,000 customers, were presented by the utilities of General Manager. The results of the performance measures survey similar size indicate the BWL ranks well above average. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER EVANS That the Committee of the Whole Report, including Resolutions 88-2-1 on Financial Reporting, 88-2-2 on Combined Billing, and 88-2-3 on Economic Development Incentives be approved as presented. Adopted unanimously. Febnkary•73, 1988 11 Attachment A BOARD OF WATER AND LIGHT LANSING, MICHIGAN PROPOSED ECONOMIC DEVELOPMENT RIDER PURPOSE The primary purpose of this rider is to enhance economic development in the Board of Water and Light service area. It will be offered to customers when, in the utility's judgement, the availability of the rider is a major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the Board of Water and Light and its customers. AVAILABILITY: This rider is available to industrial customers on Rate 4 or Rate 5. For purposes of this rider, an industrial customer is defined as any business which manufactures a product for sale or research and development. This would include usage for facilities directly associated with and on the same premises as the manufacturing business such as offices and warehouses. A customer desiring service under this rider must contract for such service on or before December 31, 1990. This rate will be available for a period of five years from the date of the contract. All provisions of this rider are the same as the principal service rate with the following exceptions: New Customer: Open to a new industrial customer taking service on or after January 1, 1988 where the new load results in 100 kw or more of billing demand. Existing Customer: Open to an existing industrial customer who contracts for a bona fide increase in connected load resulting in an increase of 100 kw, or 10% of their historical billing demand, whichever is greater, or more of billing demand on or after January 1, 1988. 2 Fdruary 23, 1988 Proposed Economic Development Rider - Page 2 MONTHLY RATE: Capacity Charge: A percentage of the capacity charge included in the principal service rate, as follows: Contract Year % 1 50% 2 60% 3 70% 4 80% 5 90% CONTRACTED HISTORICAL BILLING DEMAND: An existing customer's contracted historical billing demand will be the average of the three highest registered demands, including metering adjustments, during the 12 month period prior to the contract, or as established by mutual agreement. The contracted historical billing demand shall be subject to the 60% provision during the contract period. BILLING DEMAND: For a new customer, the entire billing demand shall be subject to the capacity charge in this rider and shall never be less than 100 kw and shall not be subject to the 60% provision. For an existing customer, the contracted historical billing demand shall be billed at the capacity charge in the customer's principal service rate. Only the billing demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not be subject to the 60% provision. MINIMUM CHARGE: A new customer shall have a minimum billing demand of 100 kw. An existing customer shall have a minimum billing demand equal to 60% of the contracted historical billing demand. Adopted Effective February.23, 1988 13 * indicates change Attachment B BOARD OF WATER AND LIGHT LANSING, MICHIGAN PROPOSED LARGE GENERAL SERVICE RATE NO. 4 AVAILABILITY This rate is available to any customer desiring secondary voltage for any pur- pose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kW or more. This rate is not available for standby or emergency services . NATURE OF SERVICE Alternating current, 60 hertz, single phase or three phase. The secondary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges. Capacity Charge: $7.11 per kW for all kW of billing demand Energy Charge: $.0320 per kWh for all kWh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. 14 February 23, 1988 Proposed Large General Service - Rate No. 4 *BILLING DEMAND The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 75% 60* of the highest regis- tered demand in the preceding eleven months , nor less than 15kW. *POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 75% 60* of the highest registered demand of the preceding eleven months . (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. (c) Implementation of Section (b) above is delayed one (1) year from the effective date of these rates to allow customers with power factors below .8500 to remedy the situation. For this one year period, power factor less than .8000 shall cause an increased capacity charge in accordance with Section (b) above. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the primary side of the transformers, the metered kW and kWh quantities thus measured will be reduced by 3`k for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installa- tion, the consumption as registered by the different metering installations will not be combined for billing purposes , but will be computed and billed separately. February 23, 1988 15 Large General Service - Rate No. 4 DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed pay- ment charges, shall be added toiany bill which is not paid on or before the due date. APPLICATION CHARGE A $7.00 .charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. 16 February 23, 1988 Attachment B BOARD OF WATER AND LIGHT LANSING, MICHIGAN PROPOSED PRIMARY SERVICE RATE NO. 5 AVAILABILITY This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 100 kW or more. The customer shall furnish, install and maintain all necessary transform- ing, controlling and protective equipment required for the service. This rate is not available for standby or emergency service. NATURE OF SERVICE Alternating current, 60 hertz, three phase. The primary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges: Capacity Charge: $6.54 per kW for all kW of billing demand Energy Charge: $.0300 per kWh for all kWh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees , franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. * Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. *BILLING DEMAND The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 45 60* of the highest regis- tered demand in the preceding eleven months, nor less than 100 kW. 1 February 23, 1988 17 ,Primary Service - Rate No. 5 *POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 95% 60* of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. (c) Implementation of Section (b) above is delayed one (1) year from the effective date of these rates to allow customers with power factors below .8500 to remedy the situation. For this one year period, power factors less than .8000 shall cause an increased capacity charge in accordance with Section (b) above. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that . 8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be in- creased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installa- tion, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately. DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges , shall be added to any bill which is not paid on or before the due date. 3 FebrI ry 23, 1988 Primary Service - Rate No. 5 APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. February 23, 1988 - 19 February 23, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ENGINEERING Res. No. 88-2-4 That a Professional Services Contract in the amount not to exceed $49,580 be awarded to Datametrics Systems Corp. Professional Services of 5270 Lyngate Court, Burke, Virginia, for a "Capacity Contract for a capa- Utilization and Systems Performance Analysis" of BWL city utilization computer systems. and systems Performance Analysis The study will evaluate the present systems and projected future (3-5 years) workload and hardware requirements. -------------------- Other bidders were: Arthur Anderson & Co. ($110,000) ; and Touche Ross & Co. ($127,000) . Five other bidders were invited but declined to bid. ----------------- -- FINANCE Res. No. 88-2-5 That the Board approve the following insurance: Additional $4 million $4 million Additional Excess Liability Insurance for the Liability Insurance period of February 24, 1988 to September 30, 1988, from for period of 2/24/88- the Lyman and Sheets Agency representing the United 9/30/88 States Fidelity .and Guaranty Company for a prepaid premium of $59,700. -------------------- The BWL's current underlying general liability and $6 million excess liability insurance is with the same agent and insurer, at a premium of $19,708 per million. The annualized premium of $100,000 for the added $4 million equals $25,000 per million per year. In past years, our coverage and premiums were: Excess Coverage Premium 1986-87 $ 6.0 Million $ 97,482 1985-86 25.5 Million 189,459 1984-85 75.0 Million 90,279 20 February 23, 1988 FINANCE (Continued) (Res. No. 88-2-5) Another proposal was received from the Lansing Insurance Agency, Inc. , for $19 million excess liability insurance, but at higher premium rates for the first $5 million of coverage. The $59,700 insurance premium can be contained with the FY 1987-88 budget. Res. No. 88-2-6 That a purchase order be issued to ISS International Service System, Inc. , Lansing, in the amount of Cleaning and Main- $127,635.84 for the Cleaning and Maintenance of the main tenance of Main office building, 123 W. Ottawa Street, covering the three Office Building. year period beginning March 1, 1988 and ending February Contract awarded 28, 1991. Theirs was the lowest of six bids received to ISS International meeting BWL specifications. Service System, Inc. ------------------ for 3-year period - 3/11/88-2/Z8/91 Other bidders were: Spartan Maintenance, Inc. ($140,727) ; City Building Maintenance Co. ($149,565.72) ; Commercial Janitor Service, Inc. ($151,200) ; Hull's Professional Cleaning Services, Inc. ($156,408) ; and, Service Master Contract Cleaning Service ($175,957) . Pricing is firm except for changes in Federal, State or local minimum wage laws. Payments to be made on a monthly basis over the three year period. Funds to cover the cost of this service are and will be included in the respective fiscal year O&M budgets. HUMAN RESOURCES Res. No. 88-2-7 That Mr. Phillip L. Morey, Coal Operator A at Erickson Station, be awarded $330.00 for his suggestion to move Suggestion Award to the coal spotter (photo-electric eye) fifteen inches in Phillip L. 1''brey from the edge of the dumper. Mr. Morey's suggestion will make it impossible to dump a coal car unless it is centered on the dumper, thus avoiding a potentially hazardous situation, extensive damage to the equipment, and loss of unloading time. By using this suggestion, it is estimated that the BWL will save $2,550.10 the first year. February 23, 1988 21 PENSION Res. No. 88-2-8 That Raymond H. Brozzo, Construction Mechanic Leader in Construction Services Department, be placed on the Suggestion Award to retired list effective March 1, 1988, at a pension of Raymond H. Brozzo $1,242.93 per month for the rest of his life, with the provision that after his death, if his wife, E. Irene Brozzo, survives him she will receive 30% or $372.88 per month for the rest of her life as provided under Option VI. If his wife predeceases him, the pension amount of $1,242.93 will revert back to the regular pension amount of $1,317.10 for the rest of his life as provided under Option VI. Mr. Brozzo has worked for the BWL for 31.94 years and is 58 years of age. Respectfully submitted, Joseph Pandy, Jr. General Manager 22 February 23, 1988 BY COMMISSIONER MCCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-2-4 RESOLVED, That Resolution 88-2-4 (Engineering) of the Approved General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88-2-5 and RESOLVED, That Resolutions 88-2-5 and 88-2-6 (Finance) of 88-2-6 approved the General Manager's Recommendations be approved. Discussion was held with respect to additional excess liability insurance. Staff was requested to continue investigating other options of .liability insurance coverage such as a self-funding program. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res, 88-2 7 RESOLVED, That Resolution 88-2-7 (Human Resources) of the Approved General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS ,Res. 88-2-8 RESOLVED, That Resolution 88-2-8 (Pension) of the General approved Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS ?. F. Scattergood System General Manager Pandy reported that the American Public Power ,chievenmt Award-to be Association (APPA) has selected two public power systems as recipients presented to electric of the E. F. Scattergood System Achievement Award. The awards, to be Systems in Jacksonville, presented in June at the National APPA Conference, will go to the Iorida and Tillamook, Jacksonville Electric Authority in Florida and to the Tillamook regon People's Utility District in Oregon. Mr. Pandy noted that the Board of Water and Light's application will be kept on .file for consideration next year. Febniary 23, 1988 23 Grand Ledge Opera Housing General Manager Pandy reported that the Grand Ledge Opera Housing Authority expresses in- Authority has expressed an interest in purchasing a parcel of land terest in BWL-owned owned by the Board of Water and Light. This property, currently property in Grand Ledge leased to the Grand Ledge Parking Authority, is situated at the corner of Bridge and River Streets, Grand Ledge. Mr. Pandy said the BWL does not foresee a need for this parcel for utility purposes. The sale would be at fair market value and would be subject to voter approval as provided under the City Charter. Following discussion, staff was directed to prepare a recommendation for the sale of the property for consideration at the March 22 regular meeting. COMMISSIONERS' REMARKS Share the Success The Share the Success report for the month of January was reviewed. update BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS Excused Absence That the absence of Commissioner Jess.op be excused. Adopted unanimously. Adjournment On motion of Commissioner Schoettle, the Board adjourned at 5:56 p.m. A& . 4m Y Mar E. Sova, Secretary Filed: February 24, 1988 Rita M. Bauman, City Clerk BOARD OF WATER & LIGHT FEBRUARY 23 , 1988 LAi SWG CITY CLERK FED ZH' 2 1 PH 'FIB ut February 23, 1988 13 * indicates change Attachment B BOARD OF WATER AND LIGHT LANSING, MICHIGAN PROPOSED LARGE GENERAL SERVICE RATE NO. 4 AVAILABILITY This rate is available to any customer desiring secondary voltage for any pur- pose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kW or more. This rate is not available for standby or emergency services. NATURE OF SERVICE Alternating current, 60 hertz, single phase or three phase. The secondary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges. Capacity Charge: $7.11 per kW for all kW of billing demand Energy Charge: $.0320 per kWh for all kWh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. 14 February 23, 1988 Proposed Large General Service - Rate No. 4 *BILLING DEMAND The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 95% 60* of the highest regis- tered demand in the preceding eleven months, nor less than 15kW. *POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 95% 60* of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. (c) Implementation of Section (b) above is delayed one (1) year from the effective date of these rates to allow customers with power factors below .8500 to remedy the situation. For this one year period, power factor less than .8000 shall cause an increased capacity charge in accordance with' Section (b) above. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the primary side of the transformers, the metered kW and kWh quantities thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installa- tion, the consumption as registered by the different metering installations will not be combined for billing purposes, but will be computed and billed separately. February 23, 1988 15 Large General Service - Rate No. 4 DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed pay- ment charges, shall be added to any bill which is not paid on or before the due date. APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. 16 February 23, 1988 Attachment B BOARD OF WATER AND LIGHT LANSING, MICHIGAN PROPOSED PRIMARY SERVICE RATE NO. 5 AVAILABILITY This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 100 kW or more. The customer shall furnish, install and maintain all necessary transform- ing, controlling and protective equipment required for the service. This rate is not available for standby or emergency service. NATURE OF SERVICE Alternating current, 60 hertz, three phase. The primary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the follo,4ing charges: Capacity Charge: $6.54 per kW for all kW of billing demand Energy Charge: $.0300 per kWh for all kWh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. * Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. *BILLING DEMAND The billing demand shall be the kW supplied during the 15-minute period of maximum use during the month but not less than 75 60* of the highest regis- tered demand in the preceding eleven months, nor less than 100 kW. February 34, 2988 17 Primary Service - Rate No. 5 *POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 45% 60* of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. (c) Implementation of Section (b) above is delayed one (1) year from the effective date of these rates to allow customers with power factors below .8500 to remedy the situation. For this one year period, power factors less than .8000 shall cause an increased capacity charge in accordance with Section (b) above. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the secondary side of the transformers, the metered kW and kWh quantities thus measured will be in- creased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installa- tion, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately. DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. 18 February 23, 1988 Primary Service —Rate No. 5 APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. February 23, 1988 19 February 23, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ENGINEERING Res. No. 88-2-4 That a Professional Services Contract in the amount not to exceed $49,580 be awarded to Datametrics Systems Corp. Professional Services of 5270 Lyngate Court, Burke, Virginia, for a "Capacity Contract for a capa- Utilization and Systems Performance Analysis" of BWL city utilization computer systems. and systems Performance Analysis The study will evaluate the present systems and projected future (3-5 years) workload and hardware requirements. -------------------- Other bidders were: Arthur Anderson & Co. ($110,000); and Touche Ross & Co. ($127,000). Five other bidders were invited but declined to bid. -------------------- FINANCE Res. No. 88-2-5 That the Board approve the following insurance: Additional $4 million $4 million Additional Excess Liability Insurance for the Liability Insurance period of February 24, 1988 to September 30, 1988, from for period of 2/24/88- the Lyman and Sheets Agency representing the United 9/30/88 States Fidelity and Guaranty Company for a prepaid premium of $59,700. -------------------- The BWL's current underlying general liability and $6 million excess liability insurance is with the same agent and insurer, at a premium of $19,708 per million. The annualized premium of $100,000 for the added $4 million equals $25,000 per million per year. In past years, our coverage and premiums were: Excess Coverage Premium 1986-87 $ 6.0 Million $ 97,482 1985-86 25.5 Million 189,459 1984-85 75.0 Million 90,279 20 February 23, 1988 FINANCE (Continued) jRes. No. 88-2-5) Another proposal was received from the Lansing Insurance Agency, Inc., for $19 million excess liability insurance, but at higher premium rates for the first $5 million of coverage. The $59,700 insurance premium can be contained with the FY 1987-88 budget. -------------------- Res. No. 88-2-6 That a purchase order be issued to ISS International Service System, Inc., Lansing, in the amount of Cleaning and Main- $127,635.84 for the Cleaning and Maintenance of the main tenance of Main office building, 123 W. Ottawa Street, covering the three Office Building, year period beginning March 1, 1988 and ending February Contract awarded 28, 1991. Theirs was the lowest of six bids received to ISS International meeting BWL specifications. Service System, Inc. for 3-year period - ------------------- 3/11/88-2/28/91 Other bidders were: Spartan Maintenance, Inc. ($140,727); City Building Maintenance Co. ($149,565.72); Commercial Janitor Service, Inc. ($151,200); Hull's Professional Cleaning Services, Inc. ($156,408); and, Service Master Contract Cleaning Service ($175,957). Pricing is firm except for changes in Federal, State or local minimum wage laws. Payments to be made on a monthly basis over the three year period. Funds to cover the cost of this service are and will be included in the respective fiscal year 0&M budgets. -------------------- HUMAN RESOURCES • Res. No. 88-2-7 That Mr. Phillip L. Morey, Coal Operator A at Erickson Station, be awarded $330.00 for his suggestion to move Suggestion Award to the coal spotter (photo-electric eye) fifteen inches in ill;p L. Morey from the edge of the dumper. Mr. Morey's suggestion will make it impossible to dump a coal car unless it is centered on the dumper, thus avoiding a potentially hazardous situation, extensive damage to the equipment, and loss of unloading time. By using this suggestion, it is estimated that the BWL will save $2,550.10 the first year. -------------------- February 23, 1988 21 PENSION Res. No. 88-2-8 That Raymond H. Brozzo, Construction Mechanic Leader in Construction Services Department, be placed on the Pension approved retired list effective March 1, 1988, at a pension of effective 3-1-88 for $1,242.93 per month for the rest of his life, with the Raymond H. Brozzo provision that after his death, if his wife, E. Irene Brozzo, survives him she will receive 30% or $372.88 per month for the rest of her life as provided under Option VI. If his wife predeceases him, the pension amount of $1,242.93 will revert back to the regular pension amount of $1,317.10 for the rest of his life as provided under Option VI. Mr. Brozzo has worked for the BWL for 31.94 years and is 58 years of age. -------------------- Respectfully submitted, Joseph Pandy, Jr.. General Manager 22 February 23, 1988 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-2-4 RESOLVED, That Resolution 88-2-4 (Engineering) of the Approved General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88--2-5 and RESOLVED, That Resolutions 88-2-5 and 88-2-6 (Finance) of 88-2-6 approved the General Manager's Recommendations be approved. Discussion was held with respect to additional excess liability insurance. Staff was requested to continue investigating other options of .liability insurance coverage such as a self-funding program. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-2-7 RESOLVED, That Resolution 88-2-7 (Human Resources) of the Approved General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88--2-8 RESOLVED, That Resolution 88-2-8 (Pension) of the General Approved Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS E. F. Scattergood System General Manager Pandy reported that the American Public Power Achievement Avrard to be Association (APPA) has selected two public power systems as recipients presented to electric of the E. F. Scattergood System Achievement Award. The awards, to be systems in Jacksonville, presented in June at the National APPA Conference, will go to the Florida and Tillamook, Jacksonville Electric Authority in Florida and to the Tillamook Oregon People's Utility District in Oregon. Mr. Pandy noted that the Board of Water and Light's application will be kept on file for consideration next year. February 23, 1988 23 Grand Ledge Opera Housing General Manager Pandy reported that the Grand Ledge Opera Housing Authority expresses in- Authority has expressed an interest in purchasing a parcel of land terest in BWLrowned owned by the Board of Water and Light. This property, currently property in Grand Ledge leased to the Grand Ledge Parking Authority, is situated at the corner of Bridge and River Streets, Grand Ledge. Mr. Pandy said the BWL does not foresee a need for this parcel for utility purposes. The sale would be at fair market value and would be subject to voter approval as provided under the City Charter. Following discussion, staff was directed to prepare a recommendation for the sale of the property for consideration at the March 22 regular meeting. COMMISSIONERS' REMARKS Share the Success The Share the Success report for the month of January was reviewed. update BY COMMISSIONER WILLIAMS- SECONDED BY COMMISSIONER EVANS Excused Absence That the absence of Commissioner Jessop be excused. Adopted unanimously. Adjournment On motion of Commissioner Schoettle, the Board adjourned at 5:56 p.m. Mary E. gova, Secretary Filed: February 24, 1988 Rilta M. Bauman, City Clerk 8 February 23, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, February 23, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, McComb, Sebolt, Williams, Schoettle, and Chairman Hassler--7 Absent: Commissioner Jessop--1 Quorum The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Treasurer/Controller Nourse, Risk Manager Blanchard, Security Administrator Cochran, Administrative Services Director Graham, Engineering Director Elashkar, Public Information Analyst Johnsen, Information Systems Director Kingsbury, Engineering Planning Director Ophaug, Electric Utility Director Peffley, Communications and Marketing Director Strickler, Marketing General Supervisor Taylor, Financial Planning Director Tousley, Staff Attorney Wilhite, Internal Auditor Willson, Steam Utility Director Woodard-Yauk, Purchasing Superintendent Younglove, and Secretary Sova were present. Invocation The Invocation was given by Chairman Hassler. Pledge of The Pledge of Allegiance was said by all present. Allegiance BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of January 26, 1988 be Minutes approved as mailed. Adopted unanimously. Public Cannents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. BOARD OF WATER & LIGHT FEBRUARY 23 , 1988 February 23, 1988 9 COMMITTEE OF THE WHOLE REPORT Ccninittee of the February 23, 1988 Whole Report Re: (1) Financial Board of Commissioners Reporting Board of Water and Light (2) Combined Lansing, Michigan Billing (3) Economic Dear Ladies and Gentlemen: Development Incentives The Committee of the Whole reports it met on February 9, 1988 to receive (4) APPA a presentation on the following items: Performance Measures 1. Financial Reporting 2. Combined Billing 3. Economic Development Incentives 4. APPA Performance Measures Present were Commissioners Belen, Evans, Hassler, McComb, and Williams. Absent were Commissioners Jessop, Schoettle and Sebolt. A summary of the topics discussed follows: 1. FINANCIAL REPORTING - A briefing on monthly financial and performance reports currently being sent to the Commissioners was presented by Director of Financial Planning Dana Tousley. The Commissioners concurred that the detail contained in the reports could be streamlined. Resolution 88-2-1 Res. 88-2-1 That the monthly financial and performance reports currently Monthly financial/ sent to the Commissioners be reduced to the following reports: performance reports to be condensed - Monthly Consolidated Financial Statement with notes - Monthly Budget Variance Analysis with notes - Monthly Share the Success Update with notes 2. COMBINED BILLING - An in depth presentation on the status of ............................................................................. the Combined Billing System was given by Director of Information Systems 011ie Kingsbury. The presentation covered the (a) original scope of the project, (b) additions, (c) system software, (d) requirements added during the design of the system, (e) new billing philosophy, and (f) project team stability. Phase II consists of subsystems not included in Phase I and will be prioritized according to user request. The Committee of the Whole recommends: Resolution 88-2-2 Res. 88-2-2 That the Board confirm the new completion time line of Revised completion January 1, 1989 for Phase 1 of the Combined Billing System. date for Combined Billing projected confirmed for 1-1-89 10 February 23, 1988 3. ECONOMIC DEVELOPMENT INCENTIVES - A detailed presentation on economic develo 1.pment incentives and billing demand ratchet relief was presented by Director of Financial Planning Dana Tousley. Actions to promote investment in the community and to address difficulties encountered by some industrial customers with the BWL's current demand rates are hereby recommended: Resolution 88-2-3 Res. 88-2-3 1. That the Commissioners tentatively approve the proposed Economic development economic development rider presented in Attachment A. rider for industrial customers on Rates 2. That the Commissioners tentatively approve changing the 4 or 5 billing demand ratchet from 75% to 60% in Electric Rate 4 - Public Hearing set - Large General Service and Electric Rate 5 - Primary for 4-12-88 Service (see Attachment B for rate schedules) . - Proposed rate changes to be 3. That the date of the public hearing to solicit public filed with input on the above rate changes be set for Tuesday, April City Clerk 12, 1988. This date could mean a June 1, 1988 effective - Proposed rate date for the proposed changes. change discussed with interested 4. That staff be directed to file the proposed rate changes industrial customers and the public hearing date with the City Clerk as required by the Lansing City Charter on or before Thursday, February 25, 1988. 5. That staff be directed to confer with interested industrial customers prior to the Board meeting on Tuesday, February 23, 1988 to determine their level of interest and potential use of the proposed rate changes. APPA Performance 4. APPA PERFORMANCE„MEASURES - The American Public Power Measures reviewed Association (APPA) performance measures, which compared the BWL to other comparing M with APPA utilities having 50,000 to 100,000 customers, were presented by the utilities of General Manager. The results of the performance measures survey similar size indicate the BWL ranks well above average. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER EVANS That the Committee of the Whole Report, including Resolutions 88-2-1 on Financial Reporting, 88-2-2 on Combined Billing, and 88-2-3 on Economic Development Incentives be approved as presented. Adopted unanimously. February 23, 1988 11 Attachment A BOARD OF WATER AND LIGHT LANSING, MICHIGAN PROPOSED ECONOMIC DEVELOPMENT RIDER PURPOSE The primary purpose of this rider is to enhance economic development in the Board of Water and Light service area. It will be offered to customers when, in the utility's judgement, the availability of the rider is a major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the Board of Water and Light and its customers. AVAILABILITY: This rider is available to industrial customers on Rate 4 or Rate 5. For purposes of this rider, an industrial customer is defined as any business which manufactures a product for sale or research and development. This would include usage for facilities directly associated with and on the same premises as the manufacturing business such as offices and warehouses. A customer desiring service under this rider must contract for such service on or before December 31, 1990. This rate will be available for a period of five years from the date• of the contract. All provisions of this rider are the same as the principal service rate with the following exceptions: New Customer: Open to a new industrial customer taking service on or after January 1, 1988 where the new load results in 100 kw or more of billing demand. Existing Customer: Open to an existing industrial customer who contracts for a bona fide increase in connected load resulting in an increase of 100 kw, or 10% of their historical billing demand, whichever is greater, or more of billing demand on or after January 1, 1988. 12 February 23, 1988 Proposed Economic Development Rider - Page 2 MONTHLY RATE Capacity Charge: A percentage of the capacity charge included in the principal service rate, as follows: Contract Year 1 50% 2 60% 3 70% 4 80% 5 90% � O CONTRACTED HISTORICAL BILLING DEMAND: b td An existing customer's contracted historical billing demand will be c O the average of the three highest registered demands, including > metering adjustments, during the 12 month period prior to the contract, or as established by mutual agreement. The contracted y historical billing demand shall be subject to the 60% provision W during the contract period. BILLING DEMAND: 00 r 00 H 00O For a new customer, the entire billing demand shall be subject to the x capacity charge in this rider and shall never be less than 100 kw and N shall not be subject to the 60% provision. For an existing customer, the contracted historical billing demand shall be billed at the capacity charge in the customer's principal service rate. Only the billing demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not be subject to the 60% provision. MINIMIIM CHARGE- A new customer shall have a minimum billing demand of 100 kw. An existing customer shall have a minimum billing demand equal to 60% of the contracted historical billing demand. Adopted Effective 24 March 22, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, March 22, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, McComb, Williams, Schoettle, and Chairman Hassler--6 Absent: Commissioners Jessop and Sebolt--2 Quorum The Secretary declared a quorum present. General Manager Pandy, Treasurer/Controller Nourse, Risk Manager Blanchard, Security Administrator Cochran, Water Utility Director Dugan, Engineering Director Elashkar, Administrative Services Director Graham, Information Systems Director Kingsbury, Engineering Planning Director Ophaug, Electric Utility Director Peffley, Communications and Marketing Director Strickler, Financial Planning Director Tousley, Human Resources Director Vander Jagt, Staff Attorney Wilhite, Internal Auditor Willson, Stearn Utility Director Woodard-Yauk, Purchasing Superintendent Younglove, and Secretary Sova were present. Invocation The Invocation was given by Chairman Hassler. Pledge of The Pledge of Allegiance was said by all present. Allegiance BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Approval of Minutes That minutes of regular session of February 23, 1988 be approved as mailed. Adopted unanimously. Public Comments CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Resignation of William Schoettle submitted a letter of resignation as Commissioner of Commissioner William the Board of Water and Light effective April 27, 1988. Commissioner Schoettle effective Schoettle has accepted a position outside of the City of Lansing, which 4-27-88 will necessitate relocation. Resignation accepted with regret. Communication placed on file. i I March 22, 1988 25 COMMITTEE OF THE WHOLE REPORT March 22,1988 Conudttee of the Board of Commissioners Whole Report Re: Board of Water and Light Preliminary FY'89 Lansing, Michigan Budget Dear Ladies and Gentlemen: The Committee of the Whole reports it met on March 8, 1988 to receive a briefing on the Fiscal Year (FY) 1988-89 Preliminary Budget. Present were Commissioners Hassler, Belen, McComb, Schoettle and Williams. Absent were Commissioners Evans, Jessop and Sebolt. General Manager Pandy reported on the progress of the budget preparation and reviewed miscellaneous items contained in the overall budget. According to preliminary revenues, it appears unlikely that a rate increase will be necessary for the three utilities during FY '88-89. A water rate increase does appear imminent for FY '89-90. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN That the Committee of the Whole Report be approved as presented. Adopted unanimously. 26 Larch 22, 1988 March 22, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-3-1 It is recommended that the Share the Success performance measures for FY 1988 be revised as follows: Points Base Goal Heat Rate Achievements/Scoring Ranges 68 10,809 10,744 >10,809 10,809-10,774 10,773-10,744 <10,744 0 34 51 68 Steam Production Efficiency 28 1 .607 1.587 >1 .627 1 .627-1 .607 1 .606-1 .566 <1.566 0 14 21 28 Customer Disputes 16 98 70 > 98 98-83 82-70 < 70 0 8 12 16 -------------------- Res. 88-3-1 The Share the Success Program which was approved by the Authorization to Board last summer contains performance measures which were revise Share the based on past experience. Recently it was discovered that success performance some of the data used to establish "base" and "goal" were measures for FY 1988 in error. The original base and goal for Heat Rate of our electric generating stations was based on FY 1987 performance and projected into FY 1988. The projected FY 1988 performance was thought to take into account the scheduled maintenance outage of Erickson Station in April 1988. However, this was not ,done. If properly done, taking into account the Erickson outage, the heat rate goal would be 47 BTU per kilowatt hour higher. March 22, 1988 27 ADMINISTRATIVE (Continued) (88-3-1) We have also discovered that the base and goal for Steam - Continued Production Efficiency were improperly calculated due to errors in the input fuel data for the years 1981 through 1986. If properly calculated, it will raise the base and goal by 0.030 million BTU per thousand pounds of steam. In addition to the above corrections, the Employee Perform- ance Committee also recommends that we reduce the goal number of Customer Disputes from 90 to 70 to properly reflect the delay in implementing the combined billing program. -------------------- Res. No. 88-3-2 It is recommended that the unaudited financial results of Method in determining FY 1988 be used for determining the points earned for the Performance Bonus by three Cost of Service measures for electric, water and 8-1-88 to be based steam so that final determination of the Performance Bonus on unaudited can be made no later than August 1, 1988. Financial results of FY'88 -------------------- The Employee Options Committee has expressed concern over when the final percent bonus will be determined and made known to all employees. Normally the fiscal year books are closed about the third or fourth week of July and un- audited financial results are known at that time. Final audited results are not known until September. -------------------- ENGINEERING Res. No. 88-3-3 1. That a contract for Professional Engineering Services Three-year contracts be awarded to Burns & McDonnell of Kansas City, for Professional Missouri. Term of the contract is for three (3) years Fngineering Services with cost plus charges estimated at $350,000 per year. awarded to: 1) Burns & McDonnell 2. That a contract for Professional Engineering Services 2) Burns & Roe be awarded to Burns & Roe of Oradell, New Jersey. Term 3) Solid Fuel Technology of the contract is for three (3) years with cost plus charges estimated at $350,000 per year. 3. That a contract for Professional Engineering Services be awarded to Solid Fuel Technology of Toledo, Ohio. Term of the contract is for three (3) years with cost plus charges estimated at $300,000 per year. Other bidders were Gilbert Commonwealth, Lutz Daily & Brain, McNamee Porter and Seeley, Stone & Webster, West- inghouse Electric Services Company, and Wolfe Wineman Engineers, Inc. -------------------. 28 March 22, 1988 ENGINEERING (Continued) (88-3-3) Because of the extensive design work required for extending the life of our production facilities, the Engineering and Continued Operation staff has been falling behind on the design of capital projects. Rather than adding employees to meet the short-term needs, we opted to supplement our staff with outside assistance. Presently, we estimate that capital projects expenditure for the next three (3) years will average approximately $16 million per year. Our staff can handle $8 million per year. This will leave $8 million to be designed by consul- tants. The three consultants will be utilized on as-needed basis. They will be asked to submit quotes on individual projects, and the award will be given to the lowest. The utilization of these consultants will be approved by the General Manager on a project-by-project basis. This approach of retaining three consultants for three (3) years will: a. Reduce evaluation time spent by staff b. Improve consultant response to meet our need c. Maintain competitiveness. -------------------- TREASURER/CONTROLLER Res. No. 88-3-4 That the Board approve the following insurance: Purchase of Public $5 million Public Officials and Employees Liability Officials and Dmployees Insurance for the period of March 25, 1988 to March 25, Liability Insurance 1989 from the Lyman and Sheets Agency representing the 3/25/88-3/25/89 from International Surplus Lines Insurance Company for a Lyman and Sheets prepaid premium of $111 ,841 .98. This is equivalent to Agency $22,368 per million. The BWL's current Public Officials and Employee Liability Insurance is with the International Surplus Line Insurance Company through the Lyman and Sheets Agency. The limit of liability is $3 million with an annual premium of $81 ,010, or $27,003 per million. Previous coverage was as follows: March 22, 1988 29 FINANCE (Continued) (88-3-4) Annual Premium _ Continued Period Limit Amount Per Million 1986-87 $ 1 million $37, 194 $37,194 1985-86 20 million 12,334 616 1983-85 25 million 13,000 520 1980-83 3 million 13,962 4,654 -------------------- Res. No. 88-3-5 That the Board advise Lansing City Council it has, in Touche Ross and accordance with City Council's resolution adopted April 21, CorrWy retained to 1986, regarding engaging independent auditors for a three- audit the &L and year cycle beginning with fiscal year ended June 30, 1986, Pension Fund for received a proposal from Touche Ross & Co. in the amount FY ending 6/30/88, of $26,450 (maximum fee) to audit the Board of Water and subject to City Light and its Pension Fund for fiscal year ending June 30, Council aproval. 1988. Further, that the Board advise Lansing City Council the cost included in the Touche Ross & Co. proposal dated March 10, 1988, appears reasonable and recommends they be retained to conduct these audits according to their proposal. -------------------- For further information, a letter from Touche Ross & Co. , dated 3/10/88, is attached along with a tabulation of fees paid since 1977. -------------------- LEGAL Res. No. 88-3-6 That the waterfront real property located at the corner Waterfront real prop- of Bridge and River Streets in Grand Ledge, Michigan, and erty in Grand Ledge further described as: declared unnecessary Lots numbered five (5) , and six (6) and seven (7) to BWL operation; Disposal authorized and that part of Block Fifty-three (53) lying in accordance with Northwest of Lot 7, except commencing at the City C1>arter and Northwesterly corner, thence Northeasterly along Codified ordinances Bridge Street 45 feet, thence Southeasterly 147.25 feet, thence Southwesterly 45 feet to the Northeast line of River Street, thence North- westerly along the Northeast line of River Street 150 feet to the place of beginning; 30 March 22, 1988 LEGAL (Continued) (88-3-6) is hereby declared to be unnecessary to the operation of the Board of Water and Light, and further that the - Continued General Manager be authorized to dispose of said waterfront real property in accordance with the Lansing City Charter and Codified ordinances. -------------------- This was mentioned to you in the cover letter for the February 23rd meeting and discussed at that meeting. -------------------- ADMINISTRATIVE SERVICES Res. No. 88-3-7 That one ( 1 ) 1976 GMC model CE67003, cab and chassis with 65' aerial tower (odometer reading approx. 46,200 miles), GE vehicle #117, from the Line Construction Department, which has been removed from service removed from service and replaced, be sold direct to Allied and replaced, to be Utility Equipment, Inc. , Germantown, Wisconsin, for sold direct to $27,052, based on their offer dated February 29, 1988, Allied Utility which was the highest of ten sealed bids received. Fquipoent, Inc. other bidders were Auto Wholesalers ($23,660) , Opdyke, Inc. ($22,552) , Aerial Construction Co. ($21 ,995), Millevile's Tree Service ($18,765) , Stephen Kwaske Construction Co. ($18,277) , K.A.B. Utility Equipment Co. ($18,250), Kent Power Services ($17,025), Jasso Tree Service, Inc. ($14,755) , and Southeastern Equipment Co. ($9,757). -------------------- Respectfully submitted, Joseph Pandy, Jr. General Manager JP/bg March 22, 1988 31 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN 'Res. 88-3-1 and RESOLVED, That Resolutions 88-3-1 and 88-3-2 (Administrative) 88-3-2 approved of the General Manager's Recommendations be approved. General Manager Pandy pointed out a typographical error in Resolution 88-3-1. The Heat Rate (Achievements/Scoring Ranges) originally shown as 10,774 in his recommendation letter dated March 22,1988 (as mailed to the Board) , should read: 10,744. This correction has been reflected in the minutes. Adopted unanimously. BY CO!"MISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN Res. 88-3-3 ;RESOLVED, That Resolution 88-3-3 (Engineering) of the General approved Manager's Recommendations be approved. General Manager Pandy clarified the intent of the resolution by indicating that individual projects would be on a per diem basis plus expenses rather than a cost plus type of arrangement. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN Res. 88-3-4 and RESOLVED, That Resolutions 88-3-4 and 88-3-5 88-3-5 approved (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY C014MISSIONER BELEN Res. 88-3-6 RESOLVED, That Resolution 88-3-6 (Legal) of the General approved Manager's Recommendations be approved. Adopted unanimously. Sale of vehicle #117 General Manager Pandy submitted an additional resolution, No. 88-3-7, added to agenda for Board consideration. He indicated that staff determined it would (Res. 88-3-7) not be economical for the BWL to dispose of BWL Vehicle No. 117 in the City Public Action. The sale of the vehicle was handled through an advertisement for sealed bids. The BWL purchased this vehicle in November, 1975 for $41,274. The high bid of $27,052, submitted by Allied Utility Equipment Co. , -represents 65.5% of it's original purchase price. 32 March 22, 1988 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS Res, 8B-3-7 RESOLVED, That Resolution 88-3-7 (Administrative Services) approved submitted as an addendum to the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS Share the Success at General Manager Pandy reported that the Share the Success (STS) point 415 points for total for February stands at 415. This is down six points from the February previous month, however, the STS performance is still above the 400 mark. BWL takes first place General Manager Pandy reported that the BWL won the Michigan Section, in Michigan Section American Water Works Association (AWWA) Tapping Contest on February 24 AWWA Water Main by connecting a service to a pressurized main in 2 minutes and 28 Tapping Contest seconds. BWL Water Utility participants were: Bill DeClercq (Coach) and a three-member team of Mary Hall, Scott Wilkinson and Leon Flores. They will represent Michigan at the AWWA National Conference contest in Orlando, Florida, June 20-22. Their trip will be sponsored by the Michigan Section of AWWA. A video tape of the tapping contest was shown at the meeting. The winning team--present at the Board meeting-- received a round of applause from the Commissioners for their victory. Mr. Pandy noted that Water Utility.Direr_tor Clyde Dugan deserves credit for starting the first Michigan Water Main Tapping Contest two years ago. Leon Flores, Scott On a related subject, General Manager Pandy reported that two customers Wilkerson and Ron recently called his office to personally commend the BWL for expedient Coward commended by and courteous services rendered by the following Water Utility Water Customers employees: for expedient and courteous service Employees Customer Leon Flores Jude Beach Scott Wilkinson 817 Prospect, Lansing Leon Flores Mrs. Raymond Pratt Ron Coward 1915 Sunnyside Avenue, Lansing Comparative draft of General Manager Pandy handed out a comparative draft of Fiscal '88 and FY'88 and FY'89 Fiscal '89 Capital Budgets. He noted that the Fiscal '89 Capital Capital Budgets Budget is 80% of the current year's Capital Budget, and that Fiscal '89 reviewed is 67% of Fiscal '89 in last year's ten-year forecast. Mr. Pandy further stated that staff is very mindful of its spending activities, and cost effective efforts are being implemented wherever possible. Nbrch 22, 1988 33 Federal law requires_ General Manager Pandy handed out an advance copy of a flier to be publication on issue mailed to all BWL water customers on the issue of "Lead" and BWL of lead in drinking drinking water. He reported that the BWL is in good shape on this water issue--tests taken have shown BWL water to be in compliance with current standards. A new federal law requires water suppliers to publish this information to all water customers. Surviving Spouse General Manager. Pandy reported that the untimely death of Richard Moore Eligibility to has raised a question as to whether or not a surviving spouse is receive Retirement eligible to receive a Retirement Allowance for Paid Time Off Credit Allowance for Paid accrued by a deceased employee. Section 17 of the BWL Pension Plan is Time Off Credit silent on this question; however, it does consider an employee who dies accrued by while an active employee to have retired on the day preceding death. (deceased) employee The existing IBEW Contract allows the payment of one-half (not to discussed exceed 66 days) of the remaining Paid Time Off Credit as a Retirement Allowance to employees who have met certain retirement criteria. Following lengthy discussion, the General Manager was directed to draft a resolution--for the April Board meeting--extending the Retirement Allowance to surviving spouses of deceased employees who would have qualified for retirement benefits. Treatise by Tan General Manager Pandy circulated an 8-page treatise submitted by Tom Stanton re: proposed Stanton, 701 McKim Avenue, Lansing, regarding the Board's proposed industrial economic industrial economic development rates. This document will be made a development rates part of the April 12 public hearing record. COMMISSIONERS' REMARKS Nbrch Newsletter Commissioner Hassler called attention to the March, 1988 BWL Newsletter explains concept mailed to electric customers. The newsletter explains the concept of industrial behind new industrial economic development rates tentatively approved economic develop- by the Commissioners, February 23. A public hearing on the proposed ment rates rates will be held on April 12 at 5:30 p.m. in the BWL Office Building. BY COMMISSIONER EVANS-- SECONDED BY COMMISSIONER WILLIAMS Fxcused absences That the absences of Commissioners Jessop and Sebolt be excused. Adopted unanimously. Adjournment On motion of Commissioner Schoettle, the Board adjourned at 6:16 p.m. Mar E. S ,ecS' r� r Y eta.y � A x to Filed: March 24, 1988 Rita M. Bauman, City Clerk w '� = r- m cz BOARD Ur' WAThx M L1C�ri'1' MARCH 22 , 1988 34- April 26, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, April 26, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Williams, and Chairman Hassler--7 Absent: Commissioner Schoettle --1 Quorum The Secretary declared a quorum present. Executive Staff Present: General Manager Pandy, Assistant General Manager Wolfe, Treasurer/Controller Nourse, Security Administrator Cochran, Water Utility Director Dugan, Administrative Services Director Graham, Information Systems Director Kingsbury, Engineering Planning Director Ophaug, Electric Utility Director Peffley, Communications and Marketing Director Strickler, Financial Planning Director Tousley, Human Resources Director Vander Jagt, Staff Attorney Wilhite, .Internal Auditor Willson, Steam Utility Director Woodard-Yauk, Purchasing Superintendent Younglove, and Secretary Sova were present. Invocation The Invocation was given by Chairman Hassler. Pledge of The Pledge of Allegiance was said by all present. Allegiance BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of March 22, 1988 be approved Minutes as mailed. Adopted unanimously. Public Cmnents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. John Richards spoke Mr. John F. Richards, 329 Clemens Road, expressed concern over the re: STATE XURNAL potential health effects of lead contained in drinking water as reported article on lead coin- in a special environment report of the April 11, 1988 issue of the tained in drinking LANSING STATE JOURNAL. It was reported that of the BWL's 50,177 `- customers, approximately 16,800 are connected to lead service lines. Mr Richards pointed out that when our children's health is at stake, removing the lead service lines is well worth the cost to the BWL and ratepayers. Noting that the current Environmental Protection Agency (EPA) lead level of 50 parts per billion (ppb) is to be drastically reduced in the near future, Mr. Richards indicated that the BWL should set a goal lower than EPA's minimum standard; preferably to achieve "zero" lead in the water system. �� t April 26, 1988 35 Staff response to General Manager PandY and Water UtilityDirector Dugan John Richards' concern the EPA warns lead solder on co g Pointed out that over lead in peer interior plumbing is also a major dreg source of lead in drinking water. Mr. Pandy noted that tests taken at wdam the BWL's water conditioning plants detected no lead in the utility's water. Chairman Hassler and General Manager Pandy stated that staff is exploring a number of options for addressing this issue in a prudent manner. 36 April 26, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-4-1 That the Board approve the modification to the authority to sign checks: Authority to sign checks for Payroll, That not less than two of the following be required Pensions and Customer to sign checks for Payroll, Pensions and Customer Security Deposit Security Deposit refunds drawn on and after April 27, 1988. Director and General Manager Assistant General Manager Treasurer/Controller Director-Financial Planning Secretary of the Board Also, that any action taken heretofore by the Board inconsistent with this recommendation be rescinded; and further, that the Secretary of the Board be directed to certify to the banks the signatures of the officers in the above designated positions as of April 27, 1988 and notify the banks that at least two (2) of the persons designated must sign said checks or they will not be valid. -------------------- This will reflect the current organizational structure. ADMINISTRATIVE SERVICES Res. No. 88-4-2 Purchase estimated 12-month requirement of resale and system lamps for the period from May 1 , 1988 through April Purchase authorization 30, 1989, from Michigan Brass and Electric Company, for resale and system Lansing, Michigan, in the amount of $223,200. Pricing ]amps from Michigan is firm through April 30, 1989. Brass and Electric Company -------------------- other bidders were Kendall Electric, Inc. $228,470) and Westinghouse Electric Supply Company ($244, 125) . Three other bidders, Graybar Electric Co. Inc. , General Electric Supply Co. , and All Phase Electric Supply Co. , were invited to bid but declined. -------------------- April 26, 1988 37 ADMINISTRATIVE SERVICES (Continued) Res. No. 88-4-3 That the following 16 Board-owned vehicles and equipment, which have been replaced, be sold at the State of Michigan Authorization to monthly vehicle auction and/or the City of Lansing Public sell 16 Board-owned Auction. vehicles and equip- ment at State and/or BWL # Description City Auction 33 1981 Chevrolet Model CC10903, 5,600# GVW pickup truck with 8' box, 305 engine, auto. trans- mission, power steering & brakes (odometer reading approx. 87,826 miles); Construction Services Dept. 39 1981 Chevrolet Model CC10903, 5,600# GVW pickup truck with 8' box, 305 engine, auto. trans- mission, power steering & brakes (odometer reading approx. 48,641 miles); Construction Services Dept. 49 1984 Dodge Model D105, 5,850# GVW pickup truck with 6 1/2, box, 318 engine, auto. trans- mission, power steering & brakes (odometer reading approx. 89,646 miles); Water Distribu- tion Dept. 135 1980 Ford Model F250, 6,750# GVW four-wheel drive pickup truck with 8' box, 351 engine, auto. transmission, power steering & brakes (odometer reading approx. 69,851 miles); Electric Con- struction & Maintenance Dept. 139 1981 Chevrolet Model CC10703, 5,600# GVW pickup truck with 8' box, auto. transmission, power steering & brakes (odometer reading approx. 68,380 miles); Construction Services Dept. 141 1981 Chevrolet Model CC10903, 5,600# GVW pickup truck with 8' box, auto. transmission, power steering & brakes (odometer reading approx. 70,066 miles); Line Construction Dept. 197 1977 Ford Model F350, 10,000# GVW cab & chassis with 300 engine, four speed transmission, power steering & brakes with U.E.C. Skyjacker Aerial bucket, 300# capacity, maximum reach 14' (odometer reading approx. 79,067 miles); BESOC. 302 1981 Olds Cutlass station wagon, LDS-231 V-6 engine, three speed transmission, power steering & brakes (odometer reading approx. 60,090 miles); Electric Maintenance & Metering Dept. (Vehicle was damaged in an accident - not roadworthy). 3 April 26, 1988 BWL # Description Res. No. 88-4-3 731 1977 Ford Model DF211F tractor backhoe, 53 h.p. , (continued) diesel, four speed transmission, 1 cu. yard bucket, 8 cu. ft. rock bucket (approx. 1 ,556 hours use); Water Distribution Dept. 761 1979 Case Model 580C loader backhoe, 55 h.p. diesel, four speed transmission, loader cap 4700# bucket cap. 1 cu. yard (approx. 3,370 hours use); Water Distribution Dept. 708 1980 Toro Model 30780-30721 Groundmaster 72" rotary mower, 24.5 h.p. , four cylinder engine, with enclosed cab; Construction Services Dept. 714 1980 Toro Model 30780-30721 Groundmaster 72" rotary mower, 24.5 h.p. , four cylinder engine, with enclosed cab; Construction Services Dept. 587 1959 Dirt Trailer, two wheel; Line Construction Dept. 566 1939 Highway, two wheel, 33" x 7" type cable trailer; Line Construction Dept. 797 1967 Ingersoll-Rand Model GR150, Gyro-Flo rotary two stage air compressor with G193 gas Continen- tal engine (approx. 1 ,545 hours use); Construc- tion Services Dept. Attach. to 743 1985 John Deere mower attachment; Construction Services Dept. -------------------- COMMUNICATIONS & MARKETING Res. No. 88-4-4 Authorize $29,650 to Market Opinion Research (MOR) to conduct annual update of customer attitude survey. The Authorization to survey is used to determine the perception of residential engage TIarket Opinion electric and water customers toward the BWL and its Research to conduct services. update of Customer Attitude Survey -------------------- This is the third annual survey conducted by MOR for the BWL. It is used to track the performance of communications and customer service programs as well as the public image portion of the BWL's Share the Success program. The survey price is based on telephone interviews with 600 residential customers, randomly selected. Survey length is 80 questions. -------------------- April 26, 1988 39 FINANCIAL PLANNING Res. No. 88-4-5 That the following proposed rate schedules, all of which were the subject of a Public Hearing on April 12, 1988, be Electric Rates 4 and adopted and applied to all electricity used or service 5 modified; and Econ- rendered on or after June 1 , 1988. (See pp. 45-50) omic Development Rider adopted Rate 4 - Large General Services Rate 5 - Primary Service Economic Development Rider Further, that the following electric rate schedules now in effect be rescinded for billing purposes for any elec- tricity used or service rendered on or after June 1 , 1988. Adopted Effective Electric Rates 4 Rate 4 - Large General Service 5-26-87 6-12-87 and 5 adopted on Rate 5 - Primary Service 5-26-87 6-12-87 5-26--87 rescinded -------------------- HUMAN RESOURCES Res. No. 88-4-6 That the Board approve the following: Proposed Retirement It shall be the Policy of the Board of Water & Light that allowance policy any full time employee, age fifty (50) or older, who has TABLED attained ten ( 10) years active service and thereafter dies while in active service, shall be presumed to have retired on the last business day preceding the date of death, and the beneficiary of such employee shall be entitled, in addition to rights accrued when under the pension plan, to a retirement allowance to be calculated the same as if the employee had actually retired. Such retirement allowance will be the cash value of one- half, but not to exceed sixty-six (66) days, of the employee's remaining paid time off credit and such payment shall be subject to applicable income tax withholding. The retirement allowance for the employee who dies prior to age fifty-five (55) will be reduced as follows: Age 50-55: A reduction of three (3) days per year, for each full year between the attained age at time of death and age fifty-five (55). ))iscussion re: This policy shall be retroactive for six (6) years or to retroactivity April 26, 1982. provision of pro- posed retirement -------------------- allowance The payment of the retirement allowance for employees who retire from active service is paid the same as the above, is part of the I.B.E.W. labor contract and is also applied to non-bargaining employees who retire. Tne retroactivity provision above will apply to four employees' beneficiaries at a cost of $17,628.39. - -------------------- 40 April 26, 1988 LEGAL Res. No. 88-4-7 That the General Manager be authorized to retain the law firms of Dickinson, Wright, Moon, VanDusen and Freeman; Authority to retain Loomis, Ewert, Parsley, Davis and Gotting; and Dykema, law firms of: Gossett, Goodnow, Spencer and Trigg as special counsel, (1) Dickinson, Night subject to approval of the Lansing City Council. These et al. firms will provide, as needed, municipal law, litigation, (2) Loomis, &Ort real estate and general commercial law. .et al (3) et al. Gossett These firms shall be retained for a period of one ( 1 ) year et al. and shall be reimbursed at their respective hourly rates. Further, that Resolution No. 87-4-7 be, and is, hereby rescinded. -------------------- These firms were selected by invitation and interview. Each firm has Lansing offices, significant expertise in providing advice on public utility matters, and have a good working knowledge of municipal operations since all have served capably. Staff anticipates that the majority of legal work to be contracted out will continue to go to the Dickinson firm. The Loomis and Dykema firms will be used in cases of conflict as well as other specialized matters. Use of special counsel would be subject to the recommendation of Staff Counsel and approval of the General Manager. Staff counsel has managed the use of outside counsel well during the past year, as is shown in the enclosed attach- ment summarizing legal costs for the past four years. -------------------- PENSION Res. No. 88-4-8 That Charles F. Kelly, Receiving Clerk in Stores Depart- ment, be placed on the retired list effective April 1 , Retirement benefit 1988, at a pension of $1 ,11 1 .87 per month for the rest of for Charles F. Kelly his life, with the provision that after his death, if his effective 4-1-88 wife, Florence N. Kelly, survives him she will receive 70% or $778.31 per month for the rest of her life as provided under Option VI. If his wife predeceases him, the pension amount of $1 , 111 .67 will revert back to the regular pension amount of $1 ,261 .73 for the rest of his life as provided under Option VI. Mr. Kelly has worked for the BWL for 34.88 years and is 55 years of age. -------------------- April 26, 1988 41 PENSION (Continued) Res. No.88-4-9 That Aaron Wilson, Mechanic B in Water Supply/Maintenance, be placed on the retired list effective May 1 , 1988, at a Retirenent benefit pension of $746.83 per month for the rest of his life, with for Aaron Wilson the provision that after his death, if his wife, Mattie M. effective 5-1-88 Wilson, survives him she will receive 80% or $597.46 per month for the rest of her life as provided under Option III. Mr. Wilson has worked for the BWL for 23.03 years and is 62 years of age. -------------------- WATER Res. No. 88-4-10 That charges in the Board of Water and Light's Rules and Regulations for Water System Extension, Sheet 12.05, be Rules and Regula- changed to $17.60 per lineal foot of water main installed, Lions for Water with an additional 15% per lineal foot on improved roads, System Extension and $1 ,540.00 per hydrant installed during the 1988 con- changed to $17.60 struction season. Lin. ft. of water main installed; -------------------- 157. lin. ft. on improved roads, and The BWL's Rules and Regulations covering Water System $1,540 per hydrant Extensions provide that the lineal-foot and hydrant installed in 1988 charges be redetermined annually and be applied to the succeeding construction period of April through November. The recommended charges have been determined in accordance with the procedure set forth in the Water System Extension Policy. They represent an increase of $ .30 per foot for main installation and a decrease of $40.00 per hydrant for hydrant installation over the charges in effect for the construction season ended November 30, 1987. Previous water main extension charge was 517.30/lineal foot for 1987. The 15% adder on improved roads is the same as in 1987; and the previous charge per hydrant was $1 ,580.00 in 1987. -------------------- Res. No. 88-4-11 That the Board agree to serve water to proposed Water Dis- trict No. 42, Delhi Township, as requested by resolution Delhi Township of the Delhi Charter Township Board on March 14, 1988, and Water District 42 that in accordance with the agreement between the Board and - College Height the Charter Township of Delhi dated August 15, 1972, cover- Subdivision ing the furnishing of a potable water supplying Delhi Town- Phase I ship, the Board advise officials of Delhi Township as follows: 42 April 26, 1988 Res. No. 88-4-11 1 . The Board will accept Water District No. 42 estab- (Continued) lished by Township resolution on March 14, 1988, and will provide a potable water supply to said district. 2. The Township will be required to make a $55,396 non- refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement XXXXII) covering the furnishing of a potable water supply in Water District No. 42. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $55,396 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement XXXXII) to furnish a potable water supply in Water District No. 42. The geographical area of Water District No. 42 is as follows: College Height Subdivision Phase I To provide a potable water supply within the proposed new district requires the installation of 2,605 feet of water main at the estimated cost of $47,696, and five (5) fire hydrants at a cost of $7,700. The main extension will serve twenty (20) residential customers. One-time connection fees will amount to $7,980. Estimated annual revenue is $3,900. Water mains to be installed in the summer of 1988 follow- ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- April 26, 1988 43 Res. No. 88-4-12 That the Board agree to serve water to proposed Water Dis- trict No. 47, Delhi Township, as requested by resolution of Delhi Township the Delhi Charter Township Board on February 16, 1988, and Water District 47 that in accordance with the agreement between the Board and - Glenmoor Manor the Charter Township of Delhi dated August 15, 1972, cover- Phase I Subdivision ing the furnishing of a potable water supplying Delhi Town- ship, the Board advise officials of Delhi Township as follows: 1 . The Board will accept Water District No. 47 estab- lished by Township resolution on February 16, 1988, and will provide a potable water supply to said dis- trict. 2. The Township will be required to make a $35,685.76 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said dis- trict. 3. The Board and the Township are to enter into a written agreement (Supplement XXXXVII) covering the furnishing of a potable water supply in Water District No. 47. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $35,685.76 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement XXXXVII) to furnish a potable water supply in Water District No. 47. The geographical area of Water District No. 47 is as follows: Glenmoor Manor Phase I Subdivision To provide a potable water supply within the proposed new district requires the installation of 1 ,709 feet of water main at the estimated cost of $31 ,065.76, and three (3) fire hydrants at a cost of $4,620. The main extension will serve eighteen ( 18) residential customers. One-time connection fees will amount to $6,660. Estimated annual revenue is $3,260. 44 April 26, 1988 Res. No. 88-4-12 Water mains to be installed in the summer of 1988 follow- (Continued) ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- Respectfu y submitted, Joseph Pandy, Jr. General Manager 44 April 26, 1988 Res. No. 88-4-12 Water mains to be installed in the summer of 1988 follow- (Continued) ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- Respectfu y submitted, Joseph Pandy, Jr General Manager April 26, 1988 43 Res. No. 88-4-12 That the Board agree to serve water to proposed Water Dis- trict No. 47, Delhi Township, as requested by resolution of Delhi Towas-up the Delhi Charter Township Board on February 16, 1988, and Water District 47 that in accordance with the agreement between the Board and - Glenmoor Manor the Charter Township of Delhi dated August 15, 1972, cover- Phase I Subdivision ing the furnishing of a potable water supplying Delhi Town- ship, the Board advise officials of Delhi Township as follows: 1 . The Board will accept Water District No. 47 estab- lished by Township resolution on February 16, 1988, and will provide a potable water supply to said dis- trict. 2. The Township will be required to make a $35,685.76 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said dis- trict. 3. The Board and the Township are to enter into a written agreement (Supplement XXXXVII) covering the furnishing of a potable water supply in Water District No. 47. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $35,685.76 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement XXXXVII) to furnish a potable water supply in Water District No. 47. The geographical area of Water District No. 47 is as follows: Glenmoor Manor Phase I Subdivision To provide a potable water supply within the proposed new district requires the installation of 1 ,709 feet of water main at the estimated cost of $31 ,065.76, and three (3) fire hydrants at a cost of $4,620. The main extension will serve eighteen (18) residential customers. One-time connection fees will amount to $6,660. Estimated annual revenue is $3,260. April 26, 1988 45 BOARD OF WATER AND LIGHT NOTE: LANSING, MICHIGAN SUPPLEMENT TO RES. 88-4-5 ECONOMIC DEVELOPMENT RIDER PURPOSE The primary purpose of this rider is to enhance economic development in the Board of Water and Light service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the Board of Water and Light and its customers. AVAILABILITY: This rider is available to industrial customers on Rate 4 or Rate 5. For purposes of this rider, an industrial customer is defined as any business which manufactures a product for sale or research and development. This would include usage for facilities directly associated with and on the same premises as the manufacturing business such as offices and warehouses. A customer desiring service under this rider must contract for such service on or before December 31, 1990. This rate will be available for a period of five years from the date of the contract. All provisions of this rider are the same as the principal service rate with the following exceptions: New Customer: Open to a new industrial customer taking service on or after January 1, 1988 where the new load results in 100 kw or more of billing demand. Existing Customer: Open to an existing industrial customer who contracts for a bona fide increase in connected load resulting in an increase of 100 hw, or 10% of their historical billing demand, whichever is greater, or more of billing demand on or after January 1, 1988. MONTHLY RATE Capacity Charge: A percentage of the capacity charge included in the principal service rate, as follows: Contract Year % 1 50% 2 60% 3 70% 4 80% 5 90% 46 April 26, 1988 Economic Development Rider - Page 2 CONTRACTED HISTORICAL BILLING DEMAND: An existing customer's contracted historical billing demand will be the average of the three highest registered demands, including metering adjustments, during the 12 month period prior to the contract, or as established by mutual agreement. The contracted historical billing demand shall be subject to the 60% provision during the contract period. BILLING DEMAND: For a new customer, de the and shall never be demand than shall 100 ekw subject shall the not capacity rider ir charge in this ri subject to the 60% provision. For an existing customer, the contracted historical billing demand shall be billed at the capacity charge in the customer's principal service rate. Only the billing demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not be subject to the 60% provision. MINIMIIM CHARGE: A new customer shall have a minimum billing demand of 100 kw. An existing customer shall have a minimum billing demand equal to 60% of the contracted historical billing demand. June 1 , 1988 Adopted April 26 , 1988 I Effective 47 April 26, 1988 BOARD OF WATER AND LIGHT LANSING, MICHIGAN LARGE GENERAL SERVICE RATE NO. 4 AVAILABILITY This rate is available to any customer desiring secondary voltage for any pur- pose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kw or more. This rate is not available for standby or emergency services. NATURE OF SERVICE Alternating current, 60 hertz, single phase or three phase. The secondary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges. Capacity Charge: $7.11 per kw for all kw of billing demand Energy Charge: $.0320 per kwh for all kwh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. BILLING DEMAND The billing demand shall be the kw supplied during the 15-minute period of maximum use during the month but not less than 60% of the highest registered demand in the preceding eleven months, nor less than 15 kw. 48 April 26, 1988 Large General Service - Rate No. 4 POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) meteringfacto install d in accordance with Board Rules and Regulations regarding power billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 60% of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the primary side of the transformer, the metered kw and kwh quantities thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installa- tion, the consumption as registered by the different metering installations will not be combined for billing purposes, but will be computed and billed separately. DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. - - I i June 1 , 1988 Adopted April 26, 1988 I Effective April 26, 1988 49 BOARD OF WATER AND LIGHT LANSING, MICHIGAN PRIMARY SERVICE RATE NO. 5 AVAILABILITY This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 100 kw or more. The customer shall furnish, install and maintain all necessary transforming, controlling and protective equipment required for the service. This rate is not available for standby or emergency service. NATURE OF SERVICE Alternating current, 60 hertz, three phase. The primary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges: Capacity Charge: $6.54 per kw for all kw of billing demand Energy Charge: $.0300 per kwh for all kwh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. BILLING DEMAND The billing demand shall be the kw supplied during the 15-minute period of maximum use during the month but not less than 60% of the highest registered demand in the preceding eleven months, nor less than 100 kw. 50 April 26, 1988 Primary Service - Rate No. 5 POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (RYARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 60% of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the secondary side of the transformer, the metered kw. and kwh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately. DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. April 26, 1988 I June 1 , 1988 1 p Effective Adopted April 26, 1988 51 BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER EVAUS Res. 88-4-1 RESOLVED, That Resolution 88-4-1 (Administrative) of the adopted General R Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER MCCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-2 and RESOLVED, That Resolutions 88-4-2 and 88-4-3 (Administrative 88-4-3 adopted Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-4 RESOLVED, That Resolution. 88-4-4 (Communication & Marketing) adopted of the General Manager's Recommendations be g approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-4-5 RESOLVED, That Resolution 88-4-5 (Financial Planning) of the adopted General Manager's Recommendations be approved. pproved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-4-6 RESOLVED, That Resolution 88-4-6 (Human Resources) of the TABLED General Manager's Recommendations be ap proved. Retroactivity General Manager Pandy reported that staff is proposing a retroactive provision of provision of six years or back to April 26, 1982, in accordance with proposed Retirement the statute of limitations for contracts and applicable payroll record Allowance discussed retention schedules. Currently, General Accounting has payroll records dating back to seven years. Mr. Pandy noted that there is one additional employee on record who exceeds the six-year cut-off date (April 21, 1982) by twenty months. If the payment of the retirement allowance is also extended to this employee, the total cost for all five employees would be $20,881.10. 52 April 26, 1988 BY COMMISSIONER SEBOLT-- Res. 88-4-6 RESOLVED, That the retroactive provision stated in Resolution - Continued 88-4-6 be changed to seven years to include the additional employee. Staff to conduct Discussion followed with respect to potential risks by extending the further research retroactive date beyond the six-year statute of limitation. on retroactive payment on pro- Commissioner Sebolt withdrew his motion pending further research by the posed Retirement Staff Attorney on the retroactivity question. Allowance BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER. WILLIAMS Res. 88-4-6 That Resolution 88-4-6 be tabled until the next regular TABLED meeting. Adopted unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT Res. 88-4-7 RESOLVED, That Resolution 88-4-7 (Legal) of the General Adopted Managers Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-8 and RESOLVED, That Resolutions 88-4-8 and 88-4-9 (Pension) of the 88-4-9 adopted General Managers Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-10, 88-4-11 RESOLVED, That Resolutions 88-4-10, 88-4-11 and 88-4-12 and 88-4-12adopted (Water) of the General Managers Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS BdL receives a high General Manager Pandy announced that he recently received the March ranking in Commercial 1988 survey of commercial electricity prices published in the ENERGY USER NEWS MAGAZINE. The BWL ranked 172 out of 186 utilities across the electricity prices published in the ENDO country. The best ranking of 186 went to the state of Washington's i NNS MAG4' Grant Utility District, where hydro-power is utilized. The BWL's kwh sales to commercial customers averaged 4.91 cents, which was a lower April 26, 1988 _ 53 price than 96.7% of the kwh sold in the U.S. The BWL's rates were lower than Consumers Power by 25.5% and Detroit Edison by 42.5%. MSU study on General Manager Pandy summarized the conclusions of a study on fly ash flyash summarized as a cement substitute in steel fiber reinforced concrete, conducted by the MSU College of Engineering. BWL employee Roger Andrews--an engineering graduate student--was a key participant in this study. This project is sponsored by APPA, the BWL and MSU. Update on Share the General Manager Pandy reported that the March Share the Success (STS) Success point total point total is 422. He indicated that critical months are still ahead, and cost benefit due to impending storms which could influence the totals as well as analysis higher heat rates. A copy of a STS cost/benefit analysis for the month of March, 1988 was handed out. The analysis indicated that seven of the 24 measures yield direct savings to the BWL. Mr. Pandy pointed out that if the 5% bonus were paid today based on the 422 STS points, the payment would amount to approximately $1.58 million; the gross savings from the seven measures would be approximately $4.19 million; resulting in a net savings of approximately $2.61 million to the BWL. Commissioner Belen suggested that STS updates be submitted to the City Council as an informational item. Reutter Park Fountain General Manager Pandy reported that the City of Lansing has expressed repair discussed an interest in repairing the Ruetter Park Fountain. Water Utility with the City Director Clyde Dugan and Financial Planning Director Dana Tousley met with City officials on April 20 to discuss the BWL's involvement in the repair project. The BWL's willingness to assist in this project at cost was communicated to the City. It was determined that approximately $60,000 will be required to refurbish the fountain. The Reutter family has tentatively committed 50% of the funding through donations with the remaining 50% to be attained by the City from various sources. F6rmer BWL enployee General Manager Pandy referred to a copy of a letter addressed to the John Ouderkirk seeking Secretary of the Board from former BWL employee John Ouderkirk, in re-euployment at the which Commissioners' addresses and phone numbers are requested. Mr. Board Pandy advised that Mr. Ouderkirk worked for the BWL for 10.45 years until his resignation on February 6, 1987. Mr. Ouderkirk is now seeking re-employment with the BWL and has spoken with Mr. Pandy and Human Resources Director Mark Vander Jagt about his intentions. Mr. Pandy stated that Mr. Ouderkirk has been advised the BWL is not interested in re-employing him at this time. Mr. Ouderkirk, who was present in the audience, was invited to address the Board on this subject, but the invitation was declined. Customar camL.nds General Manager Pandy called attention to a letter written by Edward employee Jeff Rowe for and Madeline Kane, dated April 19, 1988, in appreciation for an exemplary work during outstanding job performed by BWL employee Jeff Rowe (Water Distribution valve shutoff Department) during a street valve shutoff under adverse weather conditions. 54 April 26, 1988 COMMISSIONERS' REMARKS Update on sludge Commissioner Williams requested a status report on the operation and removal to be efficiency of the filter press. General Manager Pandy provided verbal presented to Committee preliminary cost information on the filter press and calciner. More of the Whole in hby detailed information will be presented to the Commissioners at the May Committee of the Whole meeting. Mr. Pandy advised that a tour of the sludge removal operation can be arranged for the Commissioners. Belle River Power Commissioner Williams questioned the data fluctuations in the 1987 Supply Project Belle River Power Supply Project Report, presented at the 1987 Annual Report Meeting, pertaining to Cost - Mills/KWH Delivered. General Manager Pandy responded that the 1987 fluctuations as compared to 1986 were based on usage of power. He noted that members save on the demand and energy charges, while the BWL profits from these sales. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Excused absence That the absence of Commissioner Schoettle be excused. ` Adopted unanimously. r Adjournment On motion of Commissioner McComb, the Board adjourned at 6:10 p.m. Mary E. SJ�oq,4 Secretary 4 Filed: April 28, 1988 Rita M. Bauman, City Clerk 1 a t — y ry Cn z c o c) >s n � r- rn m z Q � 34 Ap'r-,1 26, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, April 26, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Williams, and Chairman Hassler--7 Absent: Commissioner Schoettle --1 Quote The Secretary declared a quorum present. Executive Staff Present: General Manager Pandy, Assistant General Manager Wolfe, Treasurer/Controller Nourse, Security Administrator Cochran, Water Utility Director Dugan, Administrative Services Director Graham, Information Systems Director Kingsbury, Engineering Planning Director Ophaug, Electric Utility Director Peffley, Communications and Marketing Director Strickler, Financial Planning Director Tousley, Human Resources Director Vander Jagt, Staff Attorney Wilhite, Internal Auditor Willson, Steam Utility Director Woodard-Yank, Purchasing Superintendent Younglove, and Secretary Sova were present. Invocation The Invocation was given by Chairman Hassler. Pledge of The Pledge of Allegiance was said by all present. Allegiance BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of March 22, 1988 be approved Nbnutes as mailed. Adopted unanimously. Public Camnents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. John Richards spoke Mr. John F. Richards, 329 Clemens Road, expressed concern over the re: STATE JOURNAL potential health effects of lead contained in drinking water as reported article on lead con- in a special environment report of the April 11, 1988 issue of the tamed in drinking LANSING STATE JOURNAL. It was reported that of the BWL's 50,177 ,rater customers, approximately 16,800 are connected to lead service lines. Mr Richards pointed out that when our children's health is at stake, removing the lead service lines is well worth the cost to the BWL and ratepayers. Noting that the current Environmental Protection Agency (EPA) lead level of 50 parts per billion (ppb) is to be drastically reduced in the near future, Mr. Richards indicated that the BWL should set a goal lower than EPA's minimum standard; preferably to achieve "zero" lead in the water system. April 26, 1988 35 Staff response to General Manager Pandy and Water Utility Director Dugan pointed out that John Richards' concern the EPA warns lead solder on copper interior plumbing is also a major over lead in drinking source of lead in drinking water. Mr. Pandy noted that tests taken at water the BWL's water conditioning plants detected no lead in the utility's water. Chairman Hassler and General Manager Pandy stated that staff is exploring a number of options for addressing this issue in a prudent manner. 36 April 26, -1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-4-1 That the Board approve the modification to the authority to sign checks: Authority to sign checks for Payroll, That not less than two of the following be required Pensions and Custarer to sign checks for Payroll, Pensions and Customer Security Deposit Security Deposit refunds drawn on and after April 27, 1988. Director and General Manager Assistant General Manager Treasurer/Controller Director-Financial Planning Secretary of the Board Also, that any action taken heretofore by the Board inconsistent with this recommendation be rescinded; and further, that the Secretary of the Board be directed to certify to the banks the signatures of the officers in the above designated positions as of April 27, 1988 and notify the banks that at least two (2) of the persons designated must sign said checks or they will not be valid. -------------------- This will reflect the current organizational structure. ADMINISTRATIVE SERVICES Res. No. 88-4-2 Purchase estimated 12-month requirement of resale and system lamps for the period from May 1 , 1988 through April Purchase authorization 30, 1989, from Michigan Brass and Electric Company, for resale and system Lansing, Michigan, in the amount of $223,200. Pricing lamps from Michigan is firm through April 30, 1989. Brass and Electric Company -------------------- Other bidders were Kendall Electric, Inc. $228,470) and Westinghouse Electric Supply Company ($244, 125) . Three other bidders, Graybar Electric Co. Inc. , General Electric Supply Co. , and All Phase Electric Supply Co. , were invited to bid but declined. -------------------. April 26, 1988 37 ADMINISTRATIVE SERVICES (Continued) Res. No. 88-4-3 That the following 16 Board-owned vehicles and equipment, which have been replaced, be sold at the State of Michigan Authorization to monthly vehicle auction and/or the City of Lansing Public sell 16 Board-owned Auction. vehicles and equip- ment at State and/or BWL # Description City Auction 33 1981 Chevrolet Model CC10903, 5,600# GVW pickup truck with 8' box, 305 engine, auto. trans- mission, power steering & brakes (odometer reading approx. 87,826 miles); Construction Services Dept. 39 1981 Chevrolet Model CC10903, 5,600# GVW pickup truck with 8' box, 305 engine, auto. trans- mission, power steering & brakes (odometer reading approx. 48,641 miles) ; Construction Services Dept. 49 1984 Dodge Model D105, 5,850# GVW pickup truck with 6 1/2' box, 318 engine, auto. trans- mission, power steering & brakes (odometer reading approx. 89,646 miles); Water Distribu- tion Dept. 135 1980 Ford Model F250, 6,750# GVW four-wheel drive pickup truck with 8' box, 351 engine, auto. transmission, power steering & brakes (odometer reading approx. 69,851 miles); Electric Con- struction & Maintenance Dept. 139 1981 Chevrolet Model CC10703, 5,600# GVW pickup truck with 8' box, auto. transmission, power steering & brakes (odometer reading approx. 68,380 miles); Construction Services Dept. 141 1981 Chevrolet Model CC10903, 5,600# GVW pickup truck with 8' box, auto. transmission, power steering & brakes (odometer reading approx. 70,066 miles); Line Construction Dept. 197 1977 Ford Model F350, 10,000# GVW cab & chassis with 300 engine, four speed transmission, power steering & brakes with U.E.C. Skyjacker Aerial bucket, 300# capacity, maximum reach 14' (odometer reading approx. 79,067 miles) ; BESOC. 302 1981 Olds Cutlass station wagon, LDS-231 V-6 engine, three speed transmission, power steering & brakes (odometer reading approx. 60,090 miles) ; Electric Maintenance & Metering Dept. (Vehicle was damaged in an accident - not roadworthy) . 38 April_- 26, 1988 BWL # Description Res. No. 88-4-3 731 1977 Ford Model DF211F tractor backhoe, 53 h.p. , (continued) diesel, four speed transmission, 1 cu. yard bucket, 8 cu. ft. rock bucket (approx. 1 ,556 hours use) ; Water Distribution Dept. 761 1979 Case Model 580C loader backhoe, 55 h.p. diesel, four speed transmission, loader cap 4700# bucket cap. 1 cu. yard (approx. 3,370 hours use) ; Water Distribution Dept. 708 1980 Toro Model 30780-30721 Groundmaster 72" rotary mower, 24.5 h.p. , four cylinder engine, with enclosed cab; Construction Services Dept. 714 1980 Toro Model 30780-30721 Groundmaster 72" rotary mower, 24.5 h.p. , four cylinder engine, with enclosed cab; Construction Services Dept. 587 1959 Dirt Trailer, two wheel; Line Construction Dept. 566 1939 Highway, two wheel, 33" x 7" type cable trailer; Line Construction Dept. 797 1967 Ingersoll-Rand Model GR150, Gyro-Flo rotary two stage air compressor with G193 gas Continen- tal engine (approx. 1 ,545 hours use) ; Construc- tion Services Dept. Attach. to 743 1985 John Deere mower attachment; Construction Services Dept. -------------------- COMMUNICATIONS & MARKETING Res. No. 88-4-4 Authorize $29,650 to Market Opinion Research (MOR) to conduct annual update of customer attitude survey. The Authorization to survey is used to determine the perception of residential engage Market Opinion electric and water customers toward the BWL and its Research to conduct services. update of Customer Attitude Survey -------------------- This is the third annual survey conducted by MOR for the BWL. It is used to track the performance of communications and customer service programs as well as the public image portion of the BWL's Share the Success program. The survey price is based on telephone interviews with 600 residential customers, randomly selected. Survey length is 80 questions. -------------------- April 26, 1988 39 FINANCIAL PLANNING Res. No. 88-4-5 That the following proposed rate schedules, all of which were the subject of a Public Hearing on April 12, 1988, be Electric Rates 4 and adopted and applied to all electricity used or service 5 modified; and Econ- rendered on or after June 1 , 1988. (See Attachments) omic Development Rider adopted Rate 4 - Large General Services Rate 5 - Primary Service Economic Development Rider Further, that the following electric rate schedules now in effect be rescinded for billing purposes for any elec- tricity used or service rendered on or after June 1 , 1988. Adopted Effective Electric Rates 4 Rate 4 - Large General Service 5-26-87 6-12-87 and 5 adopted Rate 5 - Primary Service 5-26-87 6-12-87 5-26�7 rescinded -------------------- HUMAN RESOURCES Res. No. 88-4-6 That the Board approve the following: Proposed Retirement It shall be the Policy of the Board of Water & Light that allowance policy any full time employee, age fifty (50) or older, who has TAN-0 attained ten ( 10) years active service and thereafter dies while in active service, shall be presumed to have retired on the last business day preceding the date of death, and the beneficiary of such employee shall be entitled, in addition to rights accrued when under the pension plan, to a retirement allowance to be calculated the same as if the employee had actually retired. Such retirement allowance will be the cash value of one- half, but not to exceed sixty-six (66) days, of the employee 's remaining paid time off credit and such payment shall be subject to applicable income tax withholding. The retirement allowance for the employee who dies prior to age fifty-five (55) will be reduced as follows: Age 50-55: A reduction of three (3) days per year, for each full year between the attained age at time of death and age fifty-five (55) . Discussion re: This policy shall be retroactive for six (6) years or to retroactivity April 26, 1982 . provision of pro- posed retirement -------------------- allowance The payment of the retirement allowance for employees who retire from active service is paid the same as the above, is part of the I.B.E.W. labor contract and is also applied to non-bargaining employees who retire. The retroactivity provision above will apply to four employees ' beneficiaries at a cost of $17,628.39. -------------------- 40 April 26,.I98 LEGAL Res. No. 88-4-7 That the General Manager be authorized to retain the law firms of Dickinson, Wright, Moon, VanDusen and Freeman; Authority to retain Loomis, Ewert, Parsley, Davis and Gotting; and Dykema, law firms of: Gossett, Goodnow, Spencer and Trigg as special counsel, (1) Dickinson, Wright subject to approval of the Lansing City Council. These etal. firms will provide, as needed, municipal law, litigation, (2) Loomis, Ewart real estate and general commercial law. etal. (3) Dykema, Gossett These firms shall be retained for a period of one ( 1 ) year etal and shall be reimbursed at their respective hourly rates. Further, that Resolution No. 87-4-7 be, and is, hereby rescinded. -------------------- These firms were selected by invitation and interview. Each firm has Lansing offices, significant expertise in providing advice on public utility matters, and have a good working knowledge of municipal operations since all have served capably. Staff anticipates that the majority of legal work to be contracted out will continue to go to the Dickinson firm. The Loomis and Dykema firms will be used in cases of conflict as well as other specialized matters. Use of special counsel would be subject to the recommendation of Staff Counsel and approval of the General Manager. Staff counsel has managed the use of outside counsel well during the past year, as is shown in the enclosed attach- ment summarizing legal costs for the past four years. -------------------- PENSION Res. No. 88-4-8 That Charles F. Kelly, Receiving Clerk in Stores Depart- ment, be placed on the retired list effective April 1 , Retirement benefit 1988, at a pension of $1 , 1 1 1 .87 per month for the rest of for Charles F. Kelly his life, with the provision that after his death, if his effective 4,-1-88 wife, Florence N. Kelly, survives him she will receive 70% or $778.31 per month for the rest of her life as provided under Option VI. If his wife predeceases him, the pension amount of $1 , 111 .67 will revert back to the regular pension amount of $1 ,261 .73 for the rest of his life as provided under Option VI. Mr. Kelly has worked for the BWL for 34.88 years and is 55 years of age. -------------------- April 26, L988 41 PENSION (Continued) Res. No.88-4-9 That Aaron Wilson, Mechanic B in Water Supply/Maintenance, be placed on the retired list effective May 1 , 1988, at a Retirement benefit pension of $746.83 per month for the rest of his life, with for Aaron Wilson the provision that after his death, if his wife, Mattie M. effective 5-1-88 Wilson, survives him she will receive 80% or $597.46 per month for the rest of her life as provided under Option III. Mr. Wilson has worked for the BWL for 23.03 years and is 62 years of age. -------------------- WATER Res. No. 88-4-10 That charges in the Board of Water and Light's Rules and Regulations for Water System Extension, Sheet 12.05, be Rules and Regula- changed to $17.60 per lineal foot of water main installed, tions for Water with an additional 15% per lineal foot on improved roads, System Fxtension and $1 ,540.00 per hydrant installed during the 1988 con- changed to $17.60 struction season. Lin. ft. of water main installed; -------------------- 157. lin. ft. on improved roads, and The BWL's Rules and Regulations covering Water System $1,540 per hydrant Extensions provide that the lineal-foot and hydrant installed in 1988 charges be redetermined annually and be applied to the succeeding construction period of April through November. The recommended charges have been determined in accordance with the procedure set forth in the Water System Extension Policy. They represent an increase of $ .30 per foot for main installation and a decrease of $40.00 per hydrant for hydrant installation over the charges in effect for the construction season ended November 30, 1987. Previous water main extension charge was $17.30/lineal foot for 1987. The 15% adder on improved roads is the same as in 1987; and the previous charge per hydrant was $1 ,580.00 in 1987. -------------------- Res. No. 88-4-11 That the Board agree to serve water to proposed Water Dis- trict No. 42, Delhi Township, as requested by resolution Delhi Township of the Delhi Charter Township Board on March 14, 1988, and Water District 42 that in accordance with the agreement between the Board and - College Height the Charter Township of Delhi dated August 15, 1972, cover- Subdivision ing the furnishing of a potable water supplying Delhi Town- Phase I ship, the Board advise officials of Delhi Township as follows: 42 April 26, 1988 Res. No. 88-4-11 1 . The Board will accept Water District No. 42 estab- (Continued) lished by Township resolution on March 14, 1988, and will provide a potable water supply to said district. 2. The Township will be required to make a $55,396 non- refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement XXXXII) covering the furnishing of a potable water supply in Water District No. 42. . 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $55,396 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement XXXXII) to furnish a potable water supply in Water District No. 42. The geographical area of Water District No. 42 is as follows: College Height Subdivision Phase I To provide a potable water supply within the proposed new district requires the installation of 2,605 feet of water main at the estimated cost of $47,696, and five (5) fire hydrants at a cost of $7,700. The main extension will serve twenty (20) residential customers. One-time connection fees will amount to $7,980. Estimated annual revenue is $3,900. Water mains to be installed in the summer of 1988 follow- ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- April 26, 1988 43 Res. No. 88-4-12 That the Board agree to serve water to proposed Water Dis- trict No. 47, Delhi Township, as requested by resolution of Delhi Township the Delhi Charter Township Board on February 16, 1988, and Water District 47 that in accordance with the agreement between the Board and - Glenmoor Manor the Charter Township of Delhi dated August 15, 1972, cover- Phase I Subdivision ing the furnishing of a potable water supplying Delhi Town- ship, the Board advise officials of Delhi Township as follows: 1 . The Board will accept Water District No. 47 estab- lished by Township resolution on February 16, 1988, and will provide a potable water supply to said dis- trict. 2. The Township will be required to make a $35,685.76 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said dis- trict. 3. The Board and the Township are to enter into a written agreement (Supplement XXXXVII) covering the furnishing of a potable water supply in Water District No. 47. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $35,685.76 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement XXXXVII) to furnish a potable water supply in Water District No. 47. The geographical area of Water District No. 47 is as follows: Glenmoor Manor Phase I Subdivision To provide a potable water supply within the proposed new district requires the installation of 1 ,709 feet of water main at the estimated cost of $31 ,065.76, and three (3) fire hydrants at a cost of $4,620. The main extension will serve eighteen ( 18) residential customers. One-time connection fees will amount to $6,660. Estimated annual revenue is $3,260. 44 April 26,,1988 Res. No. 88-4-12 Water mains to be installed in the summer of 1988 follow- (Continued) ing the receipt of the Township's non-refundable contribu- tion-in-aid of construction and the signing of the agree- ment. -------------------- Respectfu y submitted, 'DI Joseph Pandy, Jr.. General Manager April 26, 1988 45 BOARD OF WATER AND LIGHT NOTE: LANSING, MICHIGAN SUPPLEMENT TO RES. 88-4-5 ECONOMIC DEVELOPMENT RIDER PURPOSE The primary purpose of this rider is to enhance economic development in the Board of Water and Light service area. It will be offered to customers when, in the utility's judgment, the availability of the rider is a major factor for the customer locating or expanding its operations and when the rider will result in a net benefit to the Board of Water and Light and its customers. AVAILABILITY: This rider is available to industrial customers on Rate 4 or Rate 5. For purposes of this rider, an industrial customer is defined as any business which manufactures a product for sale or research and development. This would include usage for facilities directly associated with and on the same premises as the manufacturing business such as offices and warehouses. A customer desiring service under this rider must contract for such service on or before December 31, 1990. This rate will be available for a period of five years from the date of the contract. All provisions of this rider are the same as the principal service rate with the following exceptions: New Customer: Open to a new industrial customer taking service on or after January 1, 1988 where the new load results in 100 kw or more of billing demand. Existing Customer: Open to an existing industrial customer who contracts for a bona fide increase in connected load resulting in an increase of 100 kw, or 10% of their historical billing demand, whichever is greater, or more of billing demand on or after January 1, 1988. MONTHLY RATE: Capacity Charge: A percentage of the capacity charge included in the principal service rate, as follows: Contract Year % 1 50% 2 60% 3 70% 4 80% 5 90% 46 April 26,, 1988 Economic Development Rider - Page 2 CONTRACTED HISTORICAL BILLING DEMAND: An existing customer' s contracted historical billing demand will be the average of the three highest registered demands, including metering adjustments, during the 12 month period prior to the contract, or as established by mutual agreement. The contracted historical billing demand shall be subject to the 60% provision during the contract period. BILLING DEMAND• For a new customer, the entire billing demand shall be subject to the capacity charge in this rider and shall never be less than 100 kw and shall not be subject to the 60% provision. For an existing customer, the contracted historical billing demand shall be billed at the capacity charge in the customer's principal service rate. Only the billing demand in excess of the contracted historical billing demand shall be billed at the capacity charge in this rider and shall not be subject to the 60% provision. MINIMUM CHARGE A new customer shall have a minimum billing demand of 100 kw. An existing customer shall have a minimum billing demand equal to 60% of the contracted historical billing demand. � 1 I I April 26 1988 June 1 , 1988 Adopted P Effective April 26,,1988 47 BOARD OF WATER AND LIGHT LANSING, MICHIGAN LARGE GENERAL SERVICE RATE NO. 4 AVAILABILITY This rate is available to any customer desiring secondary voltage for any pur- pose when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 15 kw or more. This rate is not available for standby or emergency services. NATURE OF SERVICE Alternating current, 60 hertz, single phase or three phase. The secondary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges. Capacity Charge: $7.11 per kw for all kw of billing demand Energy Charge: $.0320 per kwh for all kwh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees, or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases . Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. BILLING DEMAND The billing demand shall be the kw supplied during the 15-minute period of maximum use during the month but not less than 60% of the highest registered demand in the preceding eleven months , nor less than 15 kw. April 26, 1988 48 large General Service - Rate No. 4 POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 60% of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the primary side of the transformer, the metered kw and kwh quantities thus measured will be reduced by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one metering installa- tion, the consumption as registered by the different metering installations will not be combined for billing purposes, but will be computed and billed separately. DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges , shall be added to any bill which is not paid on or before the due date. APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. - - -- Adopted April 26 , 1988 Effective June 1 , 1988 April 26, i988 49 BOARD OF WATER AND LIGHT LANSING, MICHIGAN PRIMARY SERVICE RATE NO. 5 AVAILABILITY This rate is available to any customer desiring primary voltage service when the electrical requirements are supplied at one point of delivery through one metering installation and where the billing demand is 100 kw or more. The customer shall furnish, install and maintain all necessary transforming, controlling and protective equipment required for the service. This rate is not available for standby or emergency service. NATURE OF SERVICE Alternating current, 60 hertz, three phase. The primary voltage to be determined by the Board. MONTHLY RATE Shall be computed in accordance with the following charges: Capacity Charge: $6.54 per kw for all kw of billing demand Energy Charge: $.0300 per kwh for all kwh Energy Cost Adjustment: This rate is subject to an Energy Cost Adjustment factor added to the above energy charges and calculated as defined on a separate rate schedule which is incorporated herein by this reference. Tax Adjustment: Bills shall be increased within the limits of any governmental authority or political subdivision which levies taxes, license fees, franchise fees , or any other charges against the Board's property, or its operation, or the production and/or sale of electrical energy, to offset any such cost and thereby prevent other customers from being compelled to share such local increases. Minimum Charge: The capacity charge included in the rate, except that Special Minimum Charges shall be billed when the revenue received does not adequately compensate the Board for the cost of furnishing service. BILLING DEMAND The billing demand shall be the kw supplied during the 15-minute period of maximum use during the month but not less than 60% of the highest registered demand in the preceding eleven months, nor less than 100 kw. April 26, 1988 51 BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER EVANS Res. 88-4-1 RESOLVED, That Resolution 88-4-1 (Administrative) of the adopted General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-2 and RESOLVED, That Resolutions 88-4-2 and 88-4-3 (Administrative 88-4-3 adopted Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-4 RESOLVED, That Resolution 88-4-4 (Communication & Marketing) adopted of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-4-5 RESOLVED, That Resolution 88-4-5 (Financial Planning) of the adopted General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-4-6 RESOLVED, That Resolution 88-4-6 (Human Resources) of the TABLED General Manager's Recommendations be approved. Retroactivity General Manager Pandy reported that staff is proposing a retroactive provision of provision of six years or back to April 26, 1982, in accordance with proposed Retirement the statute of limitations for contracts and applicable payroll record Allowance discussed retention schedules. Currently, General Accounting has payroll records dating back to seven years. Mr. Pandy noted that there is one additional employee on record who exceeds the six-year cut-off date (April 21, 1982) by twenty months. If the payment of the retirement allowance is also extended to this employee, the total cost for all five employees would be $20,881.10. April 26, 1988 50 Primary Service - Rate No. 5 POWER FACTOR ADJUSTMENT Customers who have reactive kilovolt ampere hour (KVARh) metering installed in accordance with Board Rules and Regulations regarding power factor shall be billed in accordance with the following: (a) The capacity charge will be reduced by 2% for average power factor greater than or equal to .9000 and less than .9500 and 3% for average power factor of .9500 and higher. This credit shall not in any case be used to reduce the minimum charge or the capacity charge when based upon the 60`k of the highest registered demand of the preceding eleven months. (b) The capacity charge will be increased when the average power factor is less than .8500 by the ratio that .8500 bears to the average power factor. All other Customers: When the power factor during the period of maximum demand during the billing month is less than .8500, the Board reserves the right to increase the capacity charge for such billing month by the ratio that .8500 bears to such power factor. The Board may, at its option, determine the power factor by test or by permanently installed measuring equipment. METERING Where the Board elects to measure the service on the secondary side of the transformer, the metered kw. and kwh quantities thus measured will be increased by 3% for billing purposes to adjust for transformer losses. Where the customer receives service through more than one meter installation, consumption as registered by the different meter installations will not be combined for billing purposes, but will be billed and computed separately. DELAYED PAYMENT CHARGE A delayed payment charge of 5% of the unpaid balance, excluding delayed payment charges, shall be added to any bill which is not paid on or before the due date. APPLICATION CHARGE A $7.00 charge shall be added to the first regular bill for all customers turning on service at a service location irrespective of prior service with the Board. RULES AND REGULATIONS Service under this rate is subject to the Board of Water and Light Rules and Regulations for Electric Service which are incorporated herein by this reference. -- - - -- - -Adopted ---- April 26, 1988 � Effective June 1 , 1988 P 52 April 26, 1988 BY COMMISSIONER SEBOLT-- Res. 88-4-6 RESOLVED, That the retroactive provision stated in Resolution - Continued 88-4-6 be changed to seven years to include the additional employee. Staff to conduct Discussion followed with respect to potential risks by extending the further research retroactive date beyond the six-year statute of limitation. on retroactive payment on pro- Commissioner Sebolt withdrew his motion pending further research by the posed retirement Staff Attorney on the retroactivity question. allowance BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-4-6 That Resolution 88-4-6 be tabled until the next regular TABLED meeting. Adopted unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT Res. 88-4-7 RESOLVED, That Resolution 88-4-7 (Legal) of the General Adopted Managers Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP Res. 88-4--8 and RESOLVED, That Resolutions 88-4-8 and 88-4-9 (Pension) of the 88-4-9 adopted General Managers Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-4-10, 88-4r11 RESOLVED, That Resolutions 88-4-10, 88-4-11 and 88-4-12 and 88-2-12 adopted (Water) of the General Managers Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS BWL receives a high General Manager Pandy announced that he recently received the March ranking in Commercial 1988 survey of commercial electricity prices published in the ENERGY electricity prices as USER NEWS MAGAZINE. The BWL ranked 172 out of 186 utilities across the published in the ENERGY country. The best ranking of 186 went to the state of Washington's USER NEWS MAGAZINE Grant Utility District, where hydro-power is utilized. The BWL's kwh sales to commercial customers averaged 4.91 cents, which was a lower April 26, ,1988 53 price than 96.7% of the kwh sold in the U.S. The BWL's rates were lower than Consumers Power by 25.5% and Detroit Edison by 42.5%. NEU study on General Manager Pandy summarized the conclusions of a study on fly ash flyash sumErized as a cement substitute in steel fiber reinforced concrete, conducted by the MSU College of Engineering. BWL employee Roger Andrews--an engineering graduate student--was a key participant in this study. This project is sponsored by APPA, the BWL and MSU. Update on Share the General Manager Pandy reported that the March Share the Success (STS) Success point total point total is 422. He indicated that critical months are still ahead, and cost benefit due to impending storms which could influence the totals as well as analysis higher heat rates. A copy of a STS cost/benefit analysis for the month of March, 1988 was handed out. The analysis indicated that seven of the 24 measures yield direct savings to the BWL. Mr. Pandy pointed out that if the 5% bonus were paid today based on the 422 STS points, the payment would amount to approximately $1.58 million; the gross savings from the seven measures would be approximately $4.19 million; resulting in a net savings of approximately $2.61 million to the BWL. Commissioner Belen suggested that STS updates be submitted to the City Council as an informational item. Reutter Park Fountain General Manager Pandy reported that the City of Lansing has expressed repair discussed an interest in repairing the Ruetter Park Fountain. Water Utility with the City Director Clyde Dugan and Financial Planning Director Dana Tousley met with City officials on April 20 to discuss the BWL's involvement in the repair project. The BWL's willingness to assist in this project at cost was communicated to the City. It was determined that approximately $60,000 will be required to refurbish the fountain. The Reutter family has tentatively committed 50% of the funding through donations with the remaining 50% to be attained by the City from various sources. Former BWL employee General Manager Pandy referred to a copy of a letter addressed to the John Ouderkirk seeking Secretary of the Board from former BWL employee John Ouderkirk, in re-employment at the which Commissioners' addresses and phone numbers are requested. Mr. Board Pandy advised that Mr. Ouderkirk worked for the BWL for 10.45 years until his resignation on February 6, 1987. Mr. Ouderkirk is now seeking re-employment with the BWL and has spoken with Mr. Pandy and Human Resources Director Mark Vander Jagt about his intentions. Mr. Pandy stated that Mr. Ouderkirk has been advised the BWL is not interested in re-employing him at this time. Mr. Ouderkirk, who was present in the audience, was invited to address the Board on this subject, but the invitation was declined. Customer cam-ends General Manager Pandy called attention to a letter written by Edward employee Jeff Rowe for and Madeline Kane, dated April 19, 1988, in appreciation for an exemplary work during outstanding job performed by BWL employee Jeff Rowe (Water Distribution valve shutoff Department) during a street valve shutoff under adverse weather conditions. April.26, 1988 COMMISSIONERS' REMARKS Update on sludge Commissioner Williams requested a status report on the operation and removal to be efficiency of the filter press. General Manager Pandy provided verbal presented to Camdttee preliminary cost information on the filter press and calciner. More of the Whole in May detailed information will be presented to the Commissioners at the May Committee of the Whole meeting. Mr. Pandy advised that a tour of the sludge removal operation can be arranged for the Commissioners. Belle River Power Commissioner Williams questioned the data fluctuations in the 1987 Supply Project Belle River Power Supply Project Report, presented at the 1987 Annual Report briefing Meeting, pertaining to Cost - Mills/KWH Delivered. General Manager Pandy responded that the 1987 fluctuations as compared to 1986 were based on usage of power. He noted that members save on the demand and energy charges, while the BWL profits from these sales. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Excused absence That the absence of Commissioner Schoettle be excused. Adopted unanimously. Adjournment On motion of Commissioner McComb the Board adjourned at 6:10 J p.m. AL � Mary E. Sov Secretary Filed: April 28, 1988 � l Rita M. Bauman, City Clerk c� :a � n Z Aw Office, Board of Water and Light Lansing, Michigan Tuesday, May 24, 198S The Hoard of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Ca)-1 Present: Commissioners Belch, jessop, MCCoi-,iL. Williams. and Ciiairma.: Hassler--5 Absent: Commissioners Evans and Sebolt--2 (Note: A vacancy exists due to the resiaration of 1_lliam Schoettle effect_ -e April 2-1, 1988) Quorum The Secretary declared a quorum present. General Tanager Pandv and Executive Staff were present. (An attendance list is available from the Secretary's Office. ) Invocation The Invccation was given by Chairman Hassler. Pledge of Allegiance The Fledae of Allegiance was said by all present. By CO?i4ISSIC-NER WILLIAMS-- SECONDED BY CO3,1:ISSIONER BELEN Approval of That minutes of regular session of April 26, 1988 be approved Minutes as m a i l e d. Adopted unanimously_ Public C=rents CHAIRHAN HASSLER ANNOUNCED TEAT MEI°IBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEE ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE CO.VYISSIONERS. ANYONE WISHING TO COMMENT ON ANY PATTER NOT ON THE AGENDA r1AY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. John McXnight disputes Mr. John HcKniaht, 3717 Starlight Lane, Lansing, submitted a written water consumption cot plaint at the I!ay 17, 198E Committee of the Whole reetina. His reflected on his letter disputed an unusually large water bill for the quarter ending April bill April 6, 1988. A management response was promised to _;_ . 1McKni ght by hay 24. Hr. IcK-,.-4aht appeared before the Board to express concern over the Board of tiater and Light's (BWL) on-site investigation and Pieter test, which revealed the equipment was properly _:unctioning. He m: intained that the metering equipment is man-made and subject to malfunction. He also contended that the 15 ccf water consumption for the quarter ending April 6, 1988 in the amount of $45.38 is considerably higher than his quarterly average. Following hie presentation, P;r. Mcuniaht inquired if t:ie 3WL has special water rates for senior citizens. 56 May 24, 1988 Public Camients General Manager Pandy and Consumer Services Director Neal. Housler - continued reapon:.. that BWL efforts to determine the reason for the increased water consumption indicated: (1) the meter was read properly; (2) an John McKnight dispute on-site investigation for water leaks did not reveal any obvious leaks; and (3) a meter test determined the meter was actually measuring slightly slower than actual. In response to Mr. NcYnight's OuestiM regarding senior citizen rates, Financial Planning Director Dana Touslev advised the BWL water rate structure does not provide for a senior citizen rate. With regard to billing adjustments, -Er. Pandy noted that adjustments are made on accounts involv-.:G errors on the BWL's park. Since Mir. McKniaht's dispute does not reveal any indication of error or meter malfunction, his bill in the amount of $45.38 stands as billed. Resolution 88-5-1 PERSONNEL COMMITTEE REPORT :iav 2� , 19u�i Res. 88-5-1 Board of Commissioners Personnel Camtittee Board of Water and Light Report Re: Non- Lansinc, Michigan Bargaining Wage and Salary Plan review, Dear Ladies and Gentlemen: and caapensation for FY 1985-89 The Personnel Committee met on Monday, May 16, 1988 to consider the Non- Bargaining Wage & Salary Plan review and compensation recommendation for Fiscal Ye:i,. 1988-89, as submitted by staff. Present were Personnel Committee Members Jessop (Chair) , McComb, and Williams (alternate) . Also present were Commissioners Belen and Hassler. Following discussion and review of the (a) Wage & Salary Administration for Nor.-Bargaining Unit employees, (b) the wage and benefit survev conducted by the Human Resources Division, (c) percentage increase in the Bureau of Labor Statistics Consumer Price Index for February 1987 v. February 1988, (d) Bargaining Unit and Non-Bargaining Unit salary coma arison and (e) lion.-Bargaining Unit employee concerns, the Committee adopted the following motions and recommends Board approval: I. S LARY RANGES A. That salary ranges for all Non-Bargaining employees he increased by 4.5% for the 1988-69 Fiscal Year. B. That a "second tier" salary range be established for all employees entering Clerical grades 2-6 from outside the Non-Bargaining Unit, as of ley 447 lim 57 Personnel Committee C. That Clerical and Technical salary ranges be Report separated. - continued D. That an "3b" grade be added to the Technical salary ranges. II. GENERAL INCREASE That all current Clerical and Technical employees in full-time positions receive a 4.5% General Increase to base salary for: the Fiscal Year 1988-89. III. PERFORMANCE INCREASES A. That Clerical and Technical employees continue to receive performance increases to base in accordance with Wage & :Salary plan. B. That a 4.5% matrix be established to award performance increases to FLS, PNM, and ADM employees. IV. OTHER COMPENSATION A. That a minimum of 3% promotion increase for promotion into First Line Supervision and at least 18% differential at the "normal max-_:1um" be established for First Line Supervisory personnel. B. That effective June 30, 1988 a Ploney Purchase Plan & Trust (401A) be established for exempt employees, defined as all professional, general supervisor, superintendent, and administrative employees: The plan to be administered by ICMA; the WWI" to contribute 2.5% on a bi-weekly basis, using as a base June 30 base salaries. V. BENEFITS A. That first occasions be removed for Non-Bargaining Unit employees. B. That the cap on sick leave be extended to 168 days for Non-Bargaining Unit employees. C. That Non-Bargaining Unit employees be eligible for payment of up to one-half of 168 days at retirement. D. That the BWL provide paid life insurance for all Non-Bargaining Unit employees at 1&1/2 salary, and for Non-Bargaining Unit employees who retire after 6-30-88 at 1/3 of the amount of BNL paid insurance on life immediately prior to retirement. 58 May 24, 1988 Res. 88-5-1 E. That the Human Resources Division pursue the Personnel Candttee possibility of Non-Bargaining Unit employees being Report allowed to Durchase additional life insurance - continued coverage, under the same plan, at employee expense. VI. PART-TIME EMPLOYEES That Part-Time employees receive a 4.5% General Increase fiscal Year 1988-89. VII. FINANCIAI, IMPACT The total net financial impact of these recommendations is approximately 5.29% of total compensation. Respectfully submitted, E. Lane Jessop, Chair Personnel Committee BY COMMISSIONER WILLIAMS-- SECONDED BY CO?4MISS11?:.'ER 'McCO1B That the Personnel Committee Report (Resolution 88-5-1) be approved as presented. Adopted unanimously. Resolution 88-5-2 CO','.'4ITTEE OF THE WHOLE REPORT Res. 88-5-2 Board of Commissioners May 24, 1988 CamrLttee of the Board of Water and Light Whole Report Re: Lansing, Michigan (1) Preliminary FY '8&- Budget Dear Ladies and Gentlemen: (2) Decommissioning Ottawa Station The Committee of the Whole reports it met on Tuesday, April 26, 1988 with staff to receive updates on the following items: 1. The preliminary Fiscal Year. 1988-89 Budget. 2. The decommissioning of Ottawa Station. Present were Commissioners Belen, „cans, Hassler, Jessop, McComb, Sebolt and Williams. Absent was Commissioner Schoettle. Preliminary Fiscal Year 190E-89 Budget. Financial Planning Director Dana Tousley presented an overview of the preliminary Fiscal Year !FY? 1988-89 Budget. A detailed copy of the preliminary budget and a comparative outline of proposed FY '89 as compared to FY '88 by responsibility area was received by the Commissioners. Res. 8B-5-2 Decommissioning of Ottawa Station. Crnmittee of the On December 15, 1987, the Board of Commissioners adopted Phases I and II Whole Report of the Steam and Electric Resource Evaluation Study, prepared by the BWL - continued Engineering Planning Division (Resolution 87-12-1) . The study recommendations included retiring Ottawa Station following the current heating season, and shutting down the plant as an electric generator by January 1993. Economic benefits and and non-economic factors were discussed in detail. On Apr:.- 26,1983, Electric Utility Director Roy Peffley presented an update of the first major step in decomissioning Ottawa Station (Phase III) . The presentation included details on the following: 1. Completed major events. 2. Major events to be completed. 3. Effects of Ottawa Station - Phase III. 4. An overview of the Memorandum of Understanding with the IBEW outlining the procedural agreement in placing Ottawa Station in a standby mode. 5. Cost effects resulting from the procedural changes agreed upon in the Memorandum of Understanding. The Commissioners were satisfied with the progress of the Ottawa Station Phase III concept. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER _icCOMB That the Committee of the Whole Report (Resolution 85-5-2) be approved as presented. Adopted unanimously. Resolution 88-5-3 COMMITTEE OF THE WHOLE Res. 88-5---3 Board of Commissioners May 24 1988 Committee of the Board of Water and Light Whole Report Lansing, Michigan Re: Approval of proposed FY '88-89 Dear Ladies and Gentlemen: Budget The Committee of the Whole reports it met on Tuesday, _•:ay 17, 1988 with the General Manager and staff to review the proposed Board of Water and Light Fiscal Year 1988-89 Budget. Present were Commissioners Williams (Chair Pro Tem) , Hassler, Jessop, McComb and Sebolt. Absent were Commissioners Be-en and Evans. 60 Nhy 24, 1988 Res, 88-5-3 Following a comprehensive review of staff's proposed Fiscal Year 1988-89 Camiittee of the Budget, the Committee of the Whole adopted the following motion and Whole Report recommends Board approval: - continued That the annual Budget as proposed by the General Manager covering Fiscal Year 1988-89 be approved as presented (summary attached) . Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER MCCOi1B-- SECONDED BY COMMISSIONER WILLIAMS That the Committee of the Whole Report (Resolution 88-5-3) be approved as presentee. Adopted unanimously. I BOARD OF WATER AND LIGHT-LANSING MICHIGAN 2 BUDGET-FISCAL YEAR ENDING JUNE 30, 1989 3 4 WATER ELECTRIC STEAM TOTAL 5 PROJECTED INCOME STATEMENT FY 89 6 7 OPERATING REVENUE [1] $11,973,983 $123,231,499 $10,942,705 $146,148,187 8 9 Operation/Maint Expense 10,095,930 901,296,202 9,106,780 117,498,912 10 Depreciation Expense 13,020,000 11 ------------ 12 TOTAL OPERATING EXPENSE $130,518,912 13 ------------ 14 OPERATING INCOME $15,629,275 15 Other Income [2] 4,412,783 16 Other Expense [3) 757,784 17 ------------ 18 NET INCOME $19,284,274 19 20 Rate of Return(3-31-88 Rate Base) 7.618 21 22 PROJECTED CASH FLOW FY 89 23 24 Restricted Operating Cast: [4] $15,230,500 25 Restricted General Cash [5] 18,041,600 26 Available General Cash [6] 4,526,500 27 ------------ 28 BEGINNING CASH 7-1-88 $37,798,600 29 30 Sources of Cash 31 Net Income $19,284,274 32 Depreciation 13,020,000 33 Deferred Expense Amortization[7] 598,176 34 ------------ 35 TOTAL SOURCES OF CASH $32,902,450 36 ------------ 37 SOURCES OF CASH PLUS 38 BEGINNING FUND BALANCES $70,701,050 39 40 Uses of Cash 41 Debt Principal [8] S2,104,468 42 Normal Capital Expenditures [9] 12,478,000 43 Return on City Equity 4,743,748 44 ------------ 45 TOTAL USES OF CASH S19,326,216 46 47 Restricted Operating Cash $16,250,514 48 Restricted General Cash 19,249,879 49 General Cash Balance 4,382,445 50 ----------- 51 ENDING CASH 6-30-89 $39,884,838 52 53 CASH AVAILABLE FOR MAJOR 54 CAPITAL PROJECT FUNDING $11,489,996 55 56 MAJOR CAPITAL PROJECT FUND 57 58 Beginning Balance 7-1-88 S13,885,900 59 Interest Income During FY 451,291 60 Bond Proceeds 0 61 Major Capital Proj Funding 11,489,996 62 Major Capital Expenditures [10] 14,963,000 63 64 Ending Balance 6-30-89 $10,864,187 62 may 24, 19ffi BOARD OF WATER AND LIGHT-BUDGET FOOTNOTES-FISCAL YEAR ENDING JUNE 30, 1989 , Electric [1] Reams(1,655,800 sales MLB) . These for saleswater levels6a0re00C6%) lower, 4.7%( 0 lower, an and Steam MWH) and St 4.2% higher respectively than the twelve month period ended March 1988. [2] Other Income includes Receiving4andn short Genera].tCasnsandrSecuriptieshFundsfplushSewerage DE&I, Pension Reserve, Collection Fees and Net Income from Merchandising- [3] Other Expense includes interest of $150,000 on the 1973 Revenue Bond Issue, $155,000 on the 1916 Revenue Bond Issue, $175,358 on the Pension Fund Debt, S14,793 on the land contract for the Lake Lansing Road Site, $19,125 on the Michigan Ash bldg at Erickson, $167,007 interest on Steam Debt to Electric-offset by interest income in Electric, and $76,501 interest on customer deposits. [4] Projected June 30, 1988 Restricted Operating Cash balances S13,500,000 Operations and Maintenance Fund 500,000 Depreciation, Extension & Improvement Fund 1,500,000 Bond and Interest Fund ---------- Total Restricted Operating Cash $15,230,500 [5] Projected June 30, 1988 Restricted General Cash balances 11,570,200 Belle River Contract 6,471,400 Uninsured Losses ---------- Total Restricted General Cash S18,041,600 [6] Projected June 30, 1988 General Cash balance $4,526,500 [7] Five year amortization of deferred expenses for Eckert turbine #1 reblade and Erickson turbine reblade and overhaul. [8] Debt repayment includes principal payments of S1,000,000 for the 1973 Revenue Bond Issue, $1,000,000 for the 1976 Revenue Bond Issue, $67,141 for the Pension Fund Debt, S25,207 for the Lake Lansina Road site, and 12,120 for the Michigan Ash blda at Erickson. Steam Utility debt repayment includes $75,667 to repay the loan from the Electric Utility for construction of the Steam Main. Electric Utility debt repayment is reduced by the same amount. [9] Normal Capital expenditures represent total amounts to be spent from cash flow for all Distribution projects, and Production, Transmission and Common projects less than $100,000, during Fiscal Year 1989. [10] Major Capital expenditures represent total amounts to be spent from cash flow for Production, Transmission and Common projects greater than S100,000, during Fiscal Year 1989. BOARD OF WA7a & LIGHT - LANS7NG, MICh'19j: BUD51P FOP FISCAT YFkR ENDII4G JMFE 30, l9t9 DIVISION 5LA05%RY - OPERATIONS & MAI1.7U4AIY E m FN7 Restated for Budget Ccr -.isor, Vehicle & Material Production Outside Expenses Net Fquipment: & Fuels/Cher;. Sen-ices to bra Labor /i/ Charges Supplies Purch power & Other /2/ Total Water Electric Stear Distributed Total AIY'M'IS7.A77;E $609,446 $0 $39,28' $0 $16,735,256 $17,372,994 $165,3S3 $1,647,252 $36,804 $15,523,545 $17,372,984 EL.,x"T.X. UrLTITY 16,667,618 612,630 2,669,1.24 60,960,359 3,352,776 84,262,506 0 76,195,378 7,378,56° 696,560 84,262,506 wAq---. UTII,M 2,957,372 180,110 339,332 2,040,870 1,290,731 6,80f',415 6,808,415 0 0 0 6,808,415 MT.*: STY 357,595 14,200 56,180 7,200 563,431 998,606 0 0 998,60E 0 998,606 ENGINEZT'.ING 1,494,768 28,36G 172,719 0 372,768 2,068,621 17,550 0 0 2,051,071 2,068,621 H111U4 R3SOURCM 542,126 0 20,640 0 381,475 944,241 0 4,500 0 939,741 944,241 E24G -'D-ING PLAiq rt 483,089 0 5,630 0 126,80G 615,525 105,537 303,854 29,142 176,992 615,525 CUOUZICATION AND MAR1-m-1NG K7,678 3G0 68,39.0 0 237,044 653,472 3,2(X) 101,,20E 0 54F,06" 653,472 TREkSUF.E::/COhTROLLFA 772,752 0 11,470 0 63,723 847,943 8,U70 4,700 0 835,243 847,943 AD�MTISTRA= SERVICES 1,766,209 58,540 558,477 0 609,767 2,992,993 0 0 0 2,992,993 2,992,993 CONSUMD- S FrLCES 2,856,787 34,792 319,044 0 639,495 3,850,118 268,936 741,517 9,093 2,830,572. 3,850,118 INFMMATION SYM'v,S 1,308,334 180 261,300 0 871,135 2,440,949 0 0 0 2,440,949 2,440,949 GRAND TOTAL $30,182,774 $929,178 $4,511,588 $63,008,428 $25,224,405 $123,856,373 $7,377,021 $78,999,409 $8,452,213 $29,027,730 $123,85G,373 Distributed Expenses: Spread to Water, Electric, & Steam /3/ 2,728,909 19,29G,793 654,567 -22,670,269 0 Vehicle and Equipment Charges /4/ -929,178 -929,178 Indirect Costs Spread to Capital Budget /5/ -5,428,283 -5,428,283 04-25-88 NET BUDGET BY UTL',ITY $10,095,930 $98,296,202 $9,106,780 $0 $117,498,912 64 May 24, 1988 BOARD OF WATER AND LIGHT-DIVISION SUMMARY FOOTNOTES-FISCAL YEAR ENDING JUNE 30, 1989 [1] Net Labor refers to the dollar amount of labor charged to operations and maintenance expense accounts. [2] Outside Services and Other includes such items as insurance, pension funding, FICA, service engineers, maintenance contractors, consultants, utilities, travel/conference, dues/subscriptions. [3] Administrative, general, and engineering expenses which are allocated to the Water, Electric, and Steam Utilities based on such factors as manpower, labor charges, fuel costs, and meters in service. [4] The cost of owning and operating vehicles is included in RA 525 and in the grand total charges. Thus, vehicle charges must be subtracted from total charges to arrive at net operation and maintenance expense. This procedure complies with our normal accounting practice. [5] Indirect costs applied to capital projects represents overhead charged to fixed capital and credited to expense. May 24, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-5-4 That the Board enter into a refund contract with CSX Transportation, Inc. for coal delivered to the Ottawa Refund Contract with Station during the period June 1 , 1988 through May 31 , CSX Transportation, 1989, for coal originating at mines served by CSX rail- Inc. for coal deliver}, roads. Ottawa Station -------------------- Res. No. 88-5-5 That the Board enter into a refund contract with Consolidation Rail Corporation (Conrail) for delivery of Refund Contract with coal to Ottawa Station during the two year period Conrail for Coal beginning June 1 , 1988 and ending May 31 , 1990. delivery - Ottawa Station -------------------- Both of the above contracts provide for refunds from the standard ICC approved tariff rate and will result in an estimated net coal cost reduction of approximately $45,000 during the next 12 months on the delivered price of coal at Ottawa Station. -------------------- Res. No. 88-5-6 That the Board approve an amendment to C-00934 Transporta- tion Contract with CSX Transportation, Inc. and Grand Refund Contract with Truck Western Railway for coal delivered to Eckert and CSX Transportation, Erickson Stations during calendar year 1988 and originating Inc. for coal on mines served by CSX railroads. delivery - Eckert/ Erickson -------------------- This amendment improves the volume incentive rate currently in effect and will increase the refund by 46% for a net benefit of about $900,000 in 1988. -------------------- 66 May 24, 1988 ADMINISTRATIVE SERVICES Res. No. 88-5-7 Authorize purchase of the estimated 12 month requirement of Hydrofluosilic Acid for Dye and Wise Road Water Condition- Purchase of Hydro- ing plants from Carrier-Stephens Co. for $196.00 per ton. fluosilic Acid for Estimated 12 month quantity is 150 tons, for an estimated Dye and Wise Road cost of $29,400. Pricing is firm through May 31 , 1989. All Water Conditioning material to be released as required over the 12 month Plants period. -------------------- The other bidder was L.C.I. Limited ($231 .60/ton, total $34,740) . Cardinal Chemical Co. , Chemtech Industries, Inc. and General Alum & Chemical Corp. were invited to bid but declined. -------------------- Res. No. 88-5-8 Authorize purchase of the estimated 12 month requirement of Pebble Quicklime for Dye and Wise Road Water Conditioning Purchase of Pebble plants from Marble Head Lime Co. for $50.82 per ton. Esti- Quicklime for Dye mated 12 month quantity is 10,000 tons, for an estimated and Wise Road Water cost of $508,200. Pricing is firm through May 31 , 1989. Conditioning Plants All material to be released as required over the 12 month period. -------------------- Other bidders were Detroit Lime Co. ($58.55/ton, total $585,500) and BeachviLime Limited ($67.29/ton, total $672,900) . -------------------- Res. No. 88-5-9 Authorize purchase of the estimated 12 month requirement of Soda Ash for Dye and Wise Road Water Conditioning plants Purchase of soda ash from Stauffer Chemical Co. for $135.00 per ton. Estimated for Dye and Wise Road 12 month quantity is 1 ,650 tons, for an estimated cost of Conditioning Plants $222,750. Pricing is firm through May 31 , 1989. All material to be released as required over the 12 =onth period. -------------------- other bidders were General Chemical Corp. ($152.37/ton, total $251 ,410.50) and PVS-Nol/Wood Chemical Inc. (S156.27/ ton, total $259,479) . Alexander Chemical Corp. declined to bid. -------------------- ADMINISTRATIVE SERVICES (Continued) Res. No. 88-5-10 Authorize purchase of the estimated 12 month requirement of Granulated Salt for Moores Park Steam Plant from Morton Purchase of granulated Thiokol, Inc. for $58.20 per ton. Estimated 12 month salt for Moores Park quantity is 320 tons, for an estimated cost of S18,624. Steam Plant Pricing is firm through May 31 , 1989. All material to be released as required over the 12 month period. -------------------- Other bidders were Diamond Crystal Salt Co. (563.75/ton, total $20,400) , and American Salt Co. ($78.20/ton, total $25,024) . -------------------- Res. No. 88-5-11 Authorize purchase of the estimated 12 month requirement of Sulfuric Acid for Eckert and Erickson Stations from CIL Purchase of sulfuric Corp. of American for $59.00 per ton. Estimated 12 month acid for Eckert and quantity is 367 tons, for an estimated amount of 521 ,652. Erickson Stations Pricing is firm through May 31 , 1989. All material to be released as required over the 12 month period. -------------------- Other bidders were Carrier-Stephens Co. ($68.00/ton, total $24,956) , General Alum & Chemical Corp. (569.80/ton, total $25,616.60) , and Cardinal Chemical Corp. ($64.85/ton, total $31 , 139.95) . Haviland Products Co. and Stauffer Chemical Co. declined to bid. -------------------- Res. No. 88-5-12 Authorize purchase of the estimated 12 month requirement of Caustic Soda for Eckert and Erickson Stations from Haviland Purchase of caustic Products Co. for $331 .00/68.5 dry ton and 5317.00/38.5 dry soda for Eckert and ton. Estimated 12 month quantity is 107 dry tons, for an Erickson Stations estimated amount of 534,878. All material to be released as required over the 12 month period. -------------------- The other bidder was Carrier-Stephens Co. ($336.00/68.5 dry ton, $336.00/38.5 dry ton, total $35,417) . Stauffer Chemical Co. , Cardinal Chemical Corp. , General Alum and Chemical Corp. , CIL Corp. of America, K.A. Steel Chemicals Inc. and PVS Nol/Wood declined to bid. -------------------- 68 May 24, 1988 ADMINISTRATIVE SERVICES (Continued) Res. No_ 88-5-13 Authorize purchase of the estimated 12 month requirement of Liquid Chlorine for water treatment at all plants from Purchase of liquid Carrier-Stephens Co. for $450.00/1-ton cylinder and Chlorine for water $65.25/150-lb. cylinder. Estimated 12 month quantity is trot 200 1-ton and 50 150-1b. cylinders, for an estimated amount of $93,262.50. Pricing is firm through May 31 , 1989. All material to be released as required over the 12 month period. -------------------- Other bidders were Cardinal Chemical Corp. ($450/1-ton, $75/cyl. , total $93,750) and Jones Chemicals, Inc. ($500/ 1-ton, $75/cyl. , total $103,750) . PVS Nol/Wood Chemical, Inc. and K.A. Steel Chemical, Inc. declined to bid. -------------------- Res. No. 88-5-14 Authorize purchase of the estimated 12 month requirement . of Single-phase watthour Meters from Reed City Power Line Purchase of single- Supply for $27.00 per meter and/or Instrument Specialties, phase watthour meters Inc. for $27.00 per meter. Estimated 12 months quantity is 4,608 meters, for an estimated amount of $124,416. Pur- chase to be divided between two bidders. Pricing is firm through May 31 , 1989. All material to be released as required over the 12 month period. -------------------- Other bidder was Westinghouse Electric Supply Company ($27.94 per meter, total $128,747.52) . General Electric Co. submitted a price of $27.00 per meter, total 5124,416, however, additional costs would be incurred in computer programming because of differences in the manner in which meter history information would be supplied for BWL computer system. -------------------- ay /_�., 17-,j 69 ADMINISTRATIVE SERVICES (Continued) Res. No. 88-5-15 Authorize purchase of the estimated 12 month requirement of free renewal lamps covering the period from June 2, 1988 Purchase of free through May 31 , 1989, from Westinghouse Electric Supply Co. renewable lamps Lansing, Michigan, in the amount of $150,378. Pricing is firm through May 31 , 1989. All material to be released as required. -------------------- The low bid reflects a change in lamp specifications to non-etched, standard packaging, regular-life lamps, result- ing in a savings of $30,303, in comparison to the original recommendation of a bid of $180,681 for etched, single- sleeve packaging, long-life lamps. Other bidders were G.T.E. Sylvania Lighting Industrial ($155,328) , and General Electric Co. ($166,900) . Westing- house Electric Corp. and General Electric Supply Co. were invited to bid but declined. -------------------- ELECTRIC Res. No. 88-5-16 That the Board approve the sale of locomotive #857 (1950 Alco) to Jeff Dupilka of West Shoes Service, Inc. , of Sale of locomotive Allendale, MI, for the sum of $3,500. Also that locomotive #857 authorized #798 ( 1947 American) be given to Mr. Dupilka in order to avoid the BWL the expense of disposing of this unit. Both units are inoperable and obsolete and have been fully depreciated. Mr. Dupilka has arranged for transporting these units off our premises. -------------------- For some time the BWL has been looking for ways to dispose of these units in the least costly way. -------------------- PENSION Res. No. 88-5-17 That Marguerite A. Jones, Secretary to Division Directors of Steam Utility and Legal, be placed on a straight early Straight early reduced reduced pension of $576.80 per month effective April 1 , pension authorized 1988. for "Targuerite Jones Mrs. Jones has worked for the BWL for 18.04 years and is 54 years of age. -------------------- 70 May 24, 1988 WATER Res. No. 88-5-18 That the Board agrees to serve water to the proposed Water District in Windsor Township as specified in the Interim Water District in Windsor Township Agreement, and that in accordance with the Windsor Township agreement covering the furnishing of a potable water authorized supply, the Board advises officials of Windsor Township as follows: 1. The Board will accept the Water District and will provide a potable water supply to said district. 2. The Township will be required to make a $18,524 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for Water Service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a interim agreement covering the furnishing of a potable water supply to the water district. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $18,524 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement to furnish a potable water supply in the Water District. The geographical area of the Water District is as follows: Concord Village No. 7 Subdivision (lots 95 thru 110 inclusive). The main extension will serve sixteen (16) houses now under construction. One-time connection fees and meter set charges will amount to $6,384. Estimated annual revenue is $3,120. Water mains to be installed in Concord Village Subdivision following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, Jose h Pandy, Jr P General Manager JP/bg rjay L4, 1y)bb 71 ADDENDUM MAY 24, 1988 Water Resolution No. 88-5-19 (Water District 48 - Delhi Township authorized) That the Board agree to serve water to proposed Water District No.48 Delhi Township, as requested by resolution of the Delhi Charter Township Board on May 17, 1988 and that in accordance with the agreement between the Board and the Charter Township of Delhi dated August 15, 1972, covering the furnishing of a potable water supplying Delhi Township, the Board advise officials of Delhi Township as follows: 1_ The Board will accept Water District No.48 established by Township resolution on May 17, 1988 and will provide a potable water supply to said district. 2. The Township will be required to make a $190,386.00 non-refundable contribution-in-aid-of-construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement XXXXVIII) covering the furnishing of a potable water supply in Water District No.48_ 4. Watermains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $190,386.00 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement XXXRVIII) to furnish a potable water supply in Water District No.48 _ The geographical area of Water District No.48 is as follows: BegLi:nnJncr at Pinetree Rd. and Jolly Rd. thence southward on Pinetree Rd_ 3960 feet to I-96- across I-96 a aroximateZ 320 feet- continuing on Pinetree Rd. southward 1610 feet to end- thence on Sandhill Rd_ be- ginning at Pinetree Rd eastward 131.5 feet to end To provide a potable water supply within the proposed new district requires the installation of 7150 feet of watermain at the estimated cost of $203 , 830.00 , and 13 hydrants at a cost of �20,020.00_ The main extension will serve 52 residential and commercial customers. One-time connection fees will amount to $26 ,496.000_ Estimated annual revenue is $11 , 310. 00 . Watermains to be installed in the summer of 1988 following the receipt of the Township' s non-refundable contribution-in-aid-of-construction and the signing of the agreement_ 72 i May 24, 1988 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-5-4 through RESOLVED, That Resolutions 88-5-4, 88-5-5 and 88-5-6 88-5--6 approved (Administrative) of the General Manager's Recommendations be approved_ Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-5-7 through RESOLVED, That Resolutions 88-5-7 through 88-5-15 88---5-15 approved (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER McCOMB Res. 89--5-16 approved RESOLVED, That Resolution 88-5-16 (Electric) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP Res. 88-5-17 approved RESOLVED, That Resolution 88-5-17 (Pension) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-5-18 approved RESOLVED, That Resolution 88-5-18 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. Addendum There being no objection, an addendum to the agenda (Resolution Res. 88-5-19 approved 88-5-19) was considered. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS RESOLVED, That Resolution 88-5-19 (Water) be approved as presented by the General Manager. Adopted unanimously. 73 BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER MCCOMB Res. 88-" That the language of Resolution 88-4-6, tabled at the April 26, 1988 (retirertent allowance regular meeting, be modified as follows: policy) approved It shall be the policy of the Board of Water and Light to provide a retirement allowance equal to 1/2 of Paid Time Off credit, to the beneficiary as defined by the Pension Plan, of any full-time employee who based upon years of service is eligible to receive a pension and thereafter dies while in active service. This policy shall be retroactive eight years or to July 1, 1980. Adopted unanimously. Retirement Allowance In response to Commissioner Belen's question, General Manager Pandy to be paid out of BWL stated that the Death in Service Policy would not become a part of the operating funds Pension Plan. Mr. Panda� pointed out that although the retirement allowance is related to the Pension Plan, it is separate and not funded by the Pension Plan. Retroactive and future retirement allowance payments will be paid out of the BWL's operating budget. GENERAL MANAGER'S REMARKS Electric Franchise General Manager Pandy reported that the Charter Township of Delhi voted in Delhi Twp. receives 6-1 to give approval on first reading for an electric franchise with first vote approval the Board of Water and Light. A second reading will be held on June 7. The agreement will cover a limited franchise area for new developments with an imposed 3-1/2 percent franchise fee to be collected from all BWL Delhi Township customers. The franchise is expected to take effect August 1, 1988. Appoinunent of R. John General Manager Pandy referred to a copy of a letter received from Strolle as 9,JL Mayor McKane advising R. John Strolle was being recommended to serve on Commissioner being the Board of Water and Light to fill the vacancy created by the considered by City resignation of William Schoettle. On May 23, the City Council referred Council the Mayor's letter of recommendation to the Committee of the Whole for consideration. The Council may take action on Mr. Strolle's appointment at their rescheduled meeting of May 31. BWL abstract photo General Manager Pandy called attention to a photo of a skylight over on cover of PUBLIC the front door of Ottawa Station prominently displayed on the cover of POWER the May-June 1988 issue of PUBLIC POWER. This same photo was also on the cover of the BWL's 1986 Annual Report. 74 May 24, 1988 Update on BWL, Consumer Services Director Neal Housler presented a status report of accounts receivables fiscal year to date accounts receivables. Mr. Housler's presentation included (1) collections per revenue dollar, (2) fiscal year to date accounts receivable calculations, and (3) comparisons of to-.ai accounts receivables vs. total past due from 1984 through April 1988. Mr. Housler reported that the BWL has been staying on track with past due accounts. Commissioner Hassler commented that he would like to see a further reduction in the total past due amount, and he questioned why water accounts show a higher percentage of past due amounts. Mr. Housler responded that the number of past due water bills are running higher than electric due to water being on a quarterly billing cycle vs. monthly for electric. With combined billing next year, the outstanding water receivable is expected to decline and be more on track with electric. COMMISSIONERS' REMARKS Board discussion re: Commissioners McComb and Belen expressed some concern with the outcome customer service of John McKnight's dispute. Tray asked if staff has considered alternatives such as compromising with a "good customer" where the cause for an unusually large consumption is unknown. Consumer Services Director Housler commented on the importance of remaining impartial and maintaining a consistency in settling disputes. On a related matter, the Commissioners asked if there are other options available to customers who are unable to receive prompt service due to busy phone lines. Staff noted that phone calls during peak periods are the cause 7 for customers having to wait. Following discussion, Commissioner Hassler noted that the monthly BWL Newsletter is a good communication tool to inform customers of peak periods and when the largest volume of 4 telephone calls are received by Customer Services. aCo -1 00 The Commissioners commended Marketing Director John Strickler and Steam New Steam Marketing brochure Utility Director Joette Woodard-Yauk for the excellent new Steam Marketing brochure entitled "Thermal Energy Source." 4 D N June Board meeting The June 28 regular Board meeting was rescheduled for Monday, June 20, � rescheduled for Noon at 12 Noon, to allow the Commissioners to attend the American Public < Power Association (APPA) Annual National Conference in Seattle, on June 20 Washington. Pre-Conference Seminars will be held June 24-25 and the National Conference programs will be held June 27-29. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER WILLIAMS Excused Absences That the absences of Commissioners Evans and Sebolt be excused. Adopted unanimously. Adjournment On motion of Commissioner McComb, the Board ad ourned at 6:19 p.m. x�."` yam, Mary E. Sova, Secr ryr.�; Filed: May 26, 1988 f cl� Rita M. Bauman, City Clerk V -fit r- 75 Office, Board of Water and Light Lansing, Michigan Monday, June 20, 1988 The Board of Commissioners met in rescheduled regular session at 12 Noon and the meeting was called to order by Chairman Hassler. Roll ('all Present: Commissioners Belen, Evans, McComb, Sebolt, Strolle, Williams, and Chairman Hassler-7 Absent: Commissioner Jessop--1 Quorum The Secretary declared a quorum present. General Manager Pandy and Executive Staff were present. (An attendance list of staff members is available from the Secretary's Office.) NOTICE RESCHEDULED REGULAR MEETING Rescheduled Meeting The regular meeting of the Board of Water and Light Commissioners of the Notice City of Lansing, Michigan, scheduled to be held at 5:30 p.m. on June 28, 1988, in the Board Room on the Second Floor of the Board of Water and Light Building, 123 West Ottawa Street, Lansing, Michigan, has been rescheduled for Monday, June 20, 1988 at 12 Noon in the aforesaid room. Posted: May 27, 1988, 9 a.m. Certified by: BOARD OF WATER AND LIGHT Mary E. Sova, Secretary ACT 267, PA'76 Telephone 371--6033 Invocation The Invocation was given by Chairman Hassler. Pledge of Allegiance The Pledge of Allegiance was said by all present. Introduction of new R. John Strolle was introduced and welcomed as a Commissioner of the Commissioner R. John Board of Water and Light. Commissioner Strolle was confirmed by the Strolle City Council on May 31, 1988 to represent the First Ward. The remainder of his term will expire June 30, 1989. Mr. Strolle is General Manager of Kosltchek's. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Approval of That minutes of regular session of May 24, 1988 be approved as Minutes mailed. Adopted unanimously. 76 June 20, 1988 Public Coments CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. Update on Fhergy Mr.. Greg Hoffman, Energy Banc Coordinator for the Community Service & Rank by Greg Hoffman Referral Center (CSRC) , presented a status report on Energy Bank contributions received from BWL customers. Mr. Hoffman reported that a total of $29,993.70 was raised from the BWL envelope campaign for the 1987/88 heating season. A report highlighting activities of the program was handed out to each Commissioner. Cwuiissi_oners Hassler Commissioners Hassler and Evans were reappointed to the Board of Water and Evans and Light for four-year 'terms to expire June 1992. Their reappointments reappointed were confirmed by the City Council on May 31, 1988. June 20, 1988 77 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-6-1 That in accordance with Article II, Section 2. 1 of the Board's Rules of Administrative Procedure, the following Six-Month Board listing of dates be adopted as the meeting schedule for Meeting Suede the Board of Water and Light for the ensuing six (6) months. This schedule is subject to change as a result of date conflicts with rescheduled City Council meetings. Further, that a notice of the meeting schedule be published in the LANSING STATE JOURNAL the week of July 3, 1988. The following is the schedule of regular meetings of the Board of Water and Light Commissioners commencing at 5:30 p.m. for the last six (6) months of 1988: July 26 Tuesday August 23 Tuesday September 27 Tuesday October 25 Tuesday November 22 Tuesday December 27 Tuesday -------------------- Res. No. 88-6-2 That the Board approve the recommendation of the Share the Success Management Committee (STSMC) for Performance Share the Success (SS) Measures for the FY 1988-89 Share the Success Plan and that Performance Measures employees will be eligible to receive a Performance Bonus for FY'88-89 approved of 0-5% as determined by the final score for FY 1989. (Seep. 88) SIS Employee Benefit Further, that the recommendation of the STSMC for Employee Options for FY 188-89 Benefit Options for using FY 1988 Share the Success Bonus approved Credits be approved for the Benefit Plan Year effective 9/1/88 and ending August 31, 1989. (See p. 96) -------------------- 78 June 20, 1988 ADMINISTRATIVE (Continued) (Res. No. 88-6-2) Performance measures recommended for FY 189 are the same as FY 188 but with new updated Base and Goal for each measure. In all cases, the goal represents an improvement in performance over the base which is "business-as-usual". If all goals are reached, BWL will realize a cost saving of $6,300,392. The Benefit Options recommended are similar to last year, but include the addition of a Vision Plan and a Long Term Disability Plan. -------------------- Res. No. 88-6-3 That the $149,960 cost of disposal of the extra unbudgeted 5,000 tons of sludge removed from Riverside Sludge Extra unbudgeted Retention Basin be excluded from the calculation of the sludge removal cost Water Operating Cost per Unit Sold for the FY 1988 Share to be excluded from the Success Plan. Water Operating cost for FY'88 M Plan -------------------- The Base and Goal for Water Cost per Unit Sold for the FY 188 Share the Success Plan were chosen based on the FY 188 O&M Budget which included $393,800 for disposal of 8,550 tons of sludge from the Riverside Sludge Retention Basin. In April and May, the market for agricultural use of sludge expanded beyond our expectations. The contractor who sells and spreads the sludge asked permission to remove 5,000 tons more than originally planned. Management decided to take advantage of the market and authorized the additional expenditure. -------------------- Res. No. 88-6-4 That Amendment No. 1 of the Coal Purchase and Sales Agree- went with Costain Coal, Inc. dated October 29, 1986, be Amendment No. 1 to approved. This amendment will provide for: Coal Purchase and Sales Agreement of 10-29-% 1 . Quality increase from 12,900 to 13,000 BTU/pound. with Costain Coal, Inc. 2. A $0.21/ton base price increase to reflect the increased quality. 3. Improved quality control provisions for BWL. Jame 20, 1988 79 ADMINISTRATIVE (Continued) (Res. No. 88-6-4) 4. Costain shall have the option of a five (5) year new or extension contract at the then market price at expiration in 1991 , or a right of first refusal of a contract at the average of three (3) lowest bids if a new contract cannot be satisfactorily negotiated. 5. This amendment to be effective July 1 , 1988. -------------------- This will cap the cost of Workers' Compensation on the following two contracts: 1. Chapperal Agreement dated October 23, 1979 for 100,000 tons per year which expires on September 30, 1989. 2. Modified Stoker Agreement dated February 27, 1979 for the requirements of Moores Park Steam Plant which expires on December 31 , 1988. It will save BWL approximately $470,000 in coal costs through the life of the above named agreements, and will give Costain a right of first refusal on a five (5) year extension of a third contract (referred to as IFC 87) which will expire December 31 , 1991 with a market price reopener. Memo of 6/14/88 enclosed provides details. -------------------- ADMINISTRATIVE SERVICES Res. No. 88-6-5 The Administrative Services Division, in accordance with prior Board approval, sold the following 16 BWL owned Report on 16 BWL- vehicles, which had been removed from service, at the State owned vehicles sold of Michigan Public Auction of Motor Vehicles held on May at State Auction 21 , 1988. 5-21-88 Auction BWL # Description Sale Price 33 1981 Chevrolet model CC10903 pick up truck $ 1 ,700 39 1981 Chevrolet model CC10903 pick up truck 2,000 80 Jame 20, 1988 ADMINISTRATIVE SERVICES (Continued) Auction BWL # Description Sale Price (Res. No. 88-6-5) 49 1984 Dodge model D105 pick up truck 3,200 135 1980 Ford model F250 4-wheel drive pick up truck 2,400 139 1981 Chevrolet model CC10703 pick up truck 1 ,750 141 1981 Chevrolet model CC10903 pick up truck 2,650 197 1977 Ford model F350 cab & chassis with aerial bucket 3,200 302 1981 Olds Cutlass Station Wagon (Not roadworthy) 425 566 1939 Highway, 2-wheel cable trailer 200 587 1959 Dirt trailer, 2-wheel 160 731 1977 Ford model DF211F tractor backhoe with 1 cu. yd. bucket 10,400 761 1979 Case model 580C loader with 1 cu. yd. bucket 15,500 708 1980 Toro model 30780-30721 72" rotary mower with enclosed cab 3,300 714 1980 Toro model 30780-30721 72" rotary mower with enclosed cab 3, 100 797 1967 Ingersoll-Rand model GR150 two stage air compressor 2,800 743 1985 John Deere mower attachment 600 Total: $53,385.00 Less 5.6% Auction Charge: 2,989.56 Net Sale Price: $50,395.44 -------------------- Bids for the equipment purchased to replace the above (except BWL #743) were taken with and without trade-in allowance. The total bid trade-in allowance for the above items was $20, 100; thus the BWL netted an additional $30,295.44 by selling at auction. -------------------- June 20,.,1988 81 CONSUMER SERVICES Res. No. 88-6-6 That a list of accounts totaling $483,108.47 on file in the Secretary's office be written off as uncollectible for Uncollectible fiscal year ending June 30, 1988. Following is a breakdown accounts totaling of these accounts: $418,931.68 written off and sewerage Electric $334,649.84 charges of $64,176.79 Water 74,217.30 referred to the City Merchandise 62.03 Miscellaneous 7, 146.96 Steam 2,855.55 Sub-total $418,931.68 Sewerage 64, 176.79 TOTAL: $483,108.47* *(This figure includes bankruptcy accounts totaling $102,594.88) . Further, that the sewerage charge in the amount of $64,176.79 be referred to the City for further handling. The BWL's portion of the above ($418,931 .68) will be charged against the $615,000.00 reserve set forth on the balance sheet for "Uncollectible Accounts". -------------------- This accounting procedure is done on an annual basis. It amounts to .288% of total billed sales revenue for the 12 months ending April, 1988. -------------------- HUMAN RESOURCES Res. No. 88-6-7 That Mr. Ronald R. Amon, a Maintenance Mechanic in Produc- tion Maintenance, be awarded $169.38 for his suggestion to Suggestion Award to make removable tips for the electrode rods rather than Ronald R. Awn sending the rods to the shop for repair. Mr. Amon's suggestion will make it possible to repair ignition rods on-site. -------------------- By using this suggestion, it is estimated that the BWL will save $943.80 the first year. -------------------- 82 June 20, 1988 HUMAN RESOURCES (Continued Res. No. 88-6-8 That Mr. Michael J. Butka, computer operator in the Infor- mation Systems Department, be awarded $190.68 for his Suggestion Award to suggestion of placing reports on MAPPER for user access Michael J. Butka rather than printing and copying 40 reports. -------------------- By using this suggestion, it is estimated that the BWL will save $1 ,156.84 the first year. -------------------- Res. No. 88-6-9 That Mr. Frank Keck, Jr. and Mr. Kenneth R. Mier, Operator B's at Eckert Station, be awarded $271 .00 to be divided Suggestion Award to equally for their suggestion of adding lines on the re- be divided by Frank circulating sludge pump discharges to eliminate frequent Keck, Jr. and Kenneth repetitive repairs and adjustments to the pumps. R. Mier -------------------- By using this suggestion, it is estimated that the BWL will save $1 ,960.00 the first year. -------------------- Res. No. 88-6-10 That Mr. William Price, an Electrician in Electric Main- tenance & Metering, be awarded $395.60 for his suggestion Suggestion Award to to remove the electrical components from the steam vaults William price and mount the components on poles outside of the vaults. Mr. Price's suggestion will increase the useful life of the electrical components, reduce vault flooding due to electrical failure, and also reduce employee exposure to hazardous conditions which exist when the equipment is being repaired. -------------------- By using this suggestion, it is estimated that the BWL will save $3,206.00 the first year. -------------------- June 20, 1988 83 HUMAN RESOURCES (Continued) Res. No. 88-6-11 That Ms. Melody A. Strang, Clerk-B in the Customer Accounting Department, be awarded $691.62 for her Suggestion Award to suggestion to copy bills that appear to be incorrect rather Melody Strang than writing skip orders. Ms. Strang's suggestion will improve efficiency and save significant time. -------------------- By using this suggestion, it is estimated that the BWL will save $6, 166. 16 the first year. -------------------- Res. No. 88-6-12 That Mr. Michael G. Wichman, a Water Field Representative in Water Transmission & Distribution Department, be awarded Suggestion Award to $252.66 for his suggestion to replace all the Neptune Michael G. Wichmn meters in Delhi Township with Rockwell meters and touch pad remotes prior to the scheduled date outlined in the eight year meter change out program. The Neptune meters in Delhi Township have been malfunctioning, thus requiring actual meter reads and a subsequent loss of workforce hours. -------------------- By using this suggestion, it is estimated that the BWL will save $1 ,776.60 the first year. -------------------- Res. No. 88-6-13 Approve contract to Americor Heath Service (CONCERN) in the amount of $19.00 per employee per year ($54, 150 for three Employee Assistance years) for an Employee Assistance Program for a three year Program awarded to period effective June 15, 1988. Americor Health Services -------------------- PENSION Res. No. 88-6-14 That Roberta A. Smith, Clerk B in Customer Service, be placed on a monthly disability pension of $1 ,064.92 Roberta A. Smith effective July 2, 1988. Ms. Smith wishes to receive the approved for dis- amount of penion shown above and does not elect to take ability pension any of the optional benefits. Ms. Smith has worked for the BWL 31.54 years and is 49 years of age. -------------------- 84 June 20, 1988 TREASURER/CONTROLLER Res. No. 88-6-15 That a commercial checking account be opened with First of America Bank-Central, as soon as possible, their proposal BWL Checking account being the best evaluated of the four proposals received. authorized with First Other proposals received were from Manufacturers Bank of of America Bank- Lansing, Michigan National Bank and NBD Commerce Bank. Central replacing warrant system with Further, that First of America Bank-Central be used as the City Treasurer depository for the BWL's federal tax deposits. Further, this is intended to be a continuing banking relationship and will not be rotated tri-annually as are the "Payroll and Pension Roll Account" and the "Customer Deposit Refund Account". -------------------- This bank arrangement will replace our present arrangement with the City Treasury. The City Council approved the independent bank account for the BWL on April 18, 1988, subsequent to Board approval (Resolution 87-9-7). -------------------- Res. No. 88-6-16 That the wording of Board Resolution 87-9-7 be amended to reflect the City Council Resolution authorizing a new, Res. 87-9-7 re: independent checking account for the BWL. new BWL checking account amended That the following sentence be deleted - "A joint BWL and City checking account with both the BWL and the City as signatories on the account should be established". That the following sentence be substituted - "A BWL independent commercial checking account should be estab- lished". That the balance of the original Resolution 87-9-7 remain as approved. The above wording change will allow that the required signatories on the new bank account be the Secretary of the Board, the Director and General Manager, or his designated representatives as is set forth in the City Council Resolu- tion dated April 18, 1988. -------------------- June 20, 1988 85 TREASURER/CONTROLLER (Continued) Res. No. 88-6-17 That the Treasurer/Controller file the necessary report of unclaimed checks, warrants, deposits and credit balances Report of unclaimed with the Michigan Department of Treasury, Escheats Division checks, warrants, and remit the total payable of $8,733.56. deposits and credit balances filed with -------------------- State Treasury De- pantmentr Escheats Recent years escheated amounts were: Division 1987 - $ 11 , 160.54 1986 - 198,489.21 1985 - 17,519.81 -------------------- Res. No. 88-6-18 It is estimated there will be approximately $16,950,000 in the Board of Water and Light Receiving Fund at the end of Authorize transfer of Fiscal Year 1988, All cash and investments in the fund at $4,646,254 to City- the end of the fiscal year not required to satisfy other (Return on City funds established by Revenue Bond Ordinance 18A, will Equity) transfer to a Surplus Fund. All July 1988 fund require- ments as established by the ordinance will have been met; therefore, the approximate $16,950,000 will transfer to the Surplus Fund on June 30, 1988. Monies in the Surplus Fund may be appropriated by the Board for any lawful purpose. Therefore, it is recommended that the Board authorize the transfer of $4,646,254 of the Surplus Fund monies to the City of Lansing, Michigan, which will constitute a return on the City's equity in its utility system. It is further recommended that all funds remaining in the Surplus Fund following the transfer to the City, be transferred effective June 30, 1988, to the Special Project Fund for use in payment of capital expenditures. -------------------- WATER Res. No. 88-6-19 That the Board agree to serve water to proposed Water District No. 49, Delhi Township, as requested by Delhi DO Township Water Charter Township on June 10, 1988 and that in accordance District No. 49 - with the agreement between the Board and the Charter Town- Logan Street s/o ship of Delhi dated August 15, 1972, covering the Bishop Road furnishing of a potable water supply to Delhi Township, the Board advises officials of Delhi Township as follows: 86 June 20, 1988 WATER (Continued) (Res. No. 88-6-19) 1. The Board will accept Water District No. 49 requested by the Township on June 10, 1988 and will provide a potable water supply to said district. 2. The Township will be required to make a $37,996.20 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement IL) covering the furnishing of a potable water supply in Water District No. 49. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $37,996.20 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement IL) to furnish a potable water supply in Water District No. 49. The geographical area of Water District No. 49 is as follows: Logan Street extending 1600 ft. s/o Bishop Road To provide a potable water supply within the proposed new district requires the installation of 1630 feet of water main at the estimated cost of $33,376.20, and three (3) hydrants at a cost of $4,620.00 The main extension will serve six (6) residential and commercial customers. One-time connection fees will amount to $3,751.00. Estimated annual revenue is $4, 140.00 Water mains to be installed in the summer of 1988 following the receipt of the Township's non-refundable contribution- in-aid of construction and the signing of the agreement. -------------------- June 20, 1988 87 WATER (Continued) Res. No. 88-6-20 That a revision to the BWL Rules and Regulations for Water Service regarding lawn sprinkler service be approved as Sheet 8.03 of Rules follows: and Regulations for Water Service (Lawn 9. Lawn Sprinkler Systems (Sheet 8.03) sprinkler amended) In addition to the requirements of item 8 above, lawn- sprinkler and irrigation systems have the usual requirements relative to separate meter-settings (see Sheet 9.00, item 1 ). Where a customer desires a separate PARALLEL meter se€€€ag-€ems-€lte-gts�gese-e€ supply€ng-suek-sys€"ss-sa€d-meter-setting-shall-19e supplied-lay-a-separate-eas€emer--serve€ee-eemnee€€es lss€alled-€rem-the-wa€ep-main-to-a-meter-maake€e-er-an aeeeg€a13le-!Rs€de-€eeat€en, (E.G. METER FOR WATER SUPPLY TO AN IRRIGATION SYSTEM) , THE METER SHALL BE FURNISHED AND INSTALLED BY THE BOARD, AND SHALL BE CONNECTED AT AN ACCEPTABLE INSIDE OR OUTSIDE LOCATION. IN NO CASE SHALL THE LAWN IRRIGATION METER BE LARGER THAN THE REGULAR DOMESTIC-SERVICE METER. Immediately at the outlet of the meter-setting, the customer shall install a backwater valve and an approved backflow preventer (see Sheets 11.00 and 11.01 , and Figure 1 and 2 in the Appendix). -------------------- This proposed rule change will allow the BWL to install separate meters inside the building, and that this separate meter will be used for the irrigation system. Charges for this work will be in accordance with existing rules. Increased water consumption is anticipated as the cost for irrigation use will be lowered considerably due to the avoidance of the waste water charges. (NOTE: The "strikethough" designates the old wording and the ALL CAPS designates the proposed change). -------------------- Respectfully submitted, at< . Joseph Pandy, Jr. General Manager JP/bg -B-W-L-----SHARE-THE-SUCCESS-PLAN----FY-i968/89-PERFORMANCE MEASURES 6/8/83 CN� OD A. Cost of Service -- 228 points r Points Base 88/89 Goal Achievements / Scoring Ranges ------ ------- ---------- ----------------------------------- �. Operating Cost/unit sold a. Electric > 16.8 16.8-16.0 15.9-15.2 ( 15.2 (excl. fuel, depreciation) 32 16.8 mills/KAH 15.2 mills/RAH -------- -------- -------- ------- 0 16 24 32 b. Hater > 82.3 82.3-77.6 77.5-74.1 ( 74.1 (excl. electricity, oil 20 82.3 cents/CCF 74.1 cents/CCF -------- -------- -------- ------- chemicals, depreciation 0 10 15 20 and riverside expenses) C. Steam > 2.54 2.54-2.42 2.41-2.30 < 2.30 (excl. fuel 20 2.42 S/MLB 2.30 $/MLB -------- -------- -------- ------- and depreciation) 0 10 15 20 ------------------------------------------------------------------------------------------------------------------------------------------ Points Base 88/89 Goal Achievements / Scoring Ranges ------ ------- ---------- ----------------------------------- ----------------------------------- 10,757- 10,732- >10,781 10,781 10,756 (10,732 2. Heat Rate 48 10,781 BTU/KYH 10,732 BTU/KAH -------- -------- -------- ------- 0 24 36 48 ------------------------------------------------------------------------------------------------------------------------------------------ Points Base 88/89 Goal Achievements / Scoring Ranges ------ ------- ---------- > 256 256-252 251-247 < 247 3. Water Treatment Cost 28 256 S/MG 247 S/MG -------- -------- -------- ------- 0 14 21 28 ------------------------------------------------------------------------------------------------------------------------------------------ Points Base 88/89 Goal Achievements / Scoring 9 Ran es ------ ------- ---------- ---------------------------------------- 1.628 - 1.605 - > 1.628 1.606 1.562 ( 1.562 4. Steam Product. Efficiency 20 1.606 1.584 -------- -------- -------- ------- (D ------- (hMBTU/MLB net) HP only 0 10 15 20 to O Points Base 88/89 Goal Achievements / Scoring Ranges rt ------ ------- ---------- H. _. Availability: O O < 82.0 82.0-83.1 83.2-B4.3 ) 84.3 z a. Electric 28 83.1% 84.3% -------- -------- -------- ------- O 1':WH available / total MWH) 0 14 21 28 < 50.0 50.0-50.4 50.5-51.0 > 51.0 00 b- 'pater 16 50.2 MGD 51.0 MGD -------- -------- -------- ------- ( IGD I well field capacity) 0 S �2 16 O*% N < 87.8 87.S-88.9 69.0-90.4 > 90.4 C. eteim (TrIP & Eckert PRV) 16 87.8 % 90.4 4 -------- -------- -------- ------- iFRS units avail / total hrs.) 0 8 1" 16 ------------- Page 1 of 4 B A L -- SHARE THE SUCCESS PLAN -- FY 1988/89 PERFCF.MANCE MEASURES 618/88 B. Quality and Reliability of Services -- 72 points (D N O Points Base 88/89 Goal Achievements / Scoring Ranges > 74 74-66 65-55 < 55 1. Customer disputes 16 74 65 -------- -------- -------- ------- 0 8 12 16 ------------------------------------------------------------------------------------------------------------------------------------------ Points Base 88/89 Goal Achievements / Scoring Ranges 2. Reliability 99.99100- 99.99141- <99.99100 99.99140 99.99180 )99.99180 a. Electric 28 99.99139 99.99180 % ------ -------- -------- ------- (Including scheduled 0 14 21 28 and extended outages) b. Water > 2.18 2.18-1.98 1.97-1.80 ( 1.80 (Outage Lours per incident) 16 2.18 1.80 -------- -------- -------- ------- 0 8 12 16 > 651 ;51-573 574-496 ( 496 c. Steam 12 651 496 -------- -------- -------- ------- (Customer hrs-Interruption) 0 6 9 12 Page 2 of 4' B A L -- SHARE THE SUCCESS PLAN -- FY 1988/89 PERFORHANCE MEASURES 6/8/88 a O O C. Promoting Positive Public Image -- 112 points Points Base 89/89 Coal Achievements / Scoring Ranges - 1. Compliance with Federal, State & Local regulations > 2 2 1 0 a. Fines 16 0 fines 0 fines -------- -------- -------- ------- 0 8 12 16 > 4 4 3 ( 3 b. Citations 16 4 (4 citations -------- -------- -------- ------- Official notice of violation 0 8 12 16 ------------------------------------------------------------------------------------------------------------------------------------------ MR G Points Base 88/89 Goal Achievements / Scoring Ranges .4 ------ ------- ---------- ----------------------------------- 2. Service response: (Survey positive reap.) < 78 78-82 82-85 > 85 a. Office telephone response 16 91% 84% -------- -------- -------- ------- 0 8 12 16 < 83 83-87 88-93 > 93 b. Service call response 16 88% 90% -------- -------- -------- ------- 0 8 12 16 (Subject to Change) ----------------------------------------------------------------------------------------------------------------- Points Base 88/89 Goal Achievements / Scoring Ranges 3. Public Image: (Survey positive resp.) ( 70 70-73 74-77 > 77 a. Shows concern for customers 16 73% 75% -------- ----'"- -------- ------- 0 8 12 16 ( 75 75-79 80-83 > 83 b. Favorability Index 16 79% 81% -------- -------- -------- ------- 0 8 12 16 ------------------------------------------------------------------------------------------------------------------------------------------ Points Base 88/89 Goal Achievements / Scoring Ranges 4. EEO/AAP < 13.8 13.8-14.1 14.2-14.8 > 14.8 a. Females hiring/promotion 8 13.8% 14.8% -------- -------- -------- ------- (% of Available positions) 0 4 6 8 ( 12.5 12.5-13.5 13.6-14.6 > 14.6 b_ Minorities hiring/promotions 8 12.5% 14.6% -------- ------- -------- ------- of Ava_lable positions) 0 4 6 8 Page 3 of 4 B W L -- SHARE THE SUCCESS PLAN -- FY 1988/89 PERrORYANCE MEASURES 6/8/88 D. Employees' Productivity -- 86 pc_nts Points Base -- 88/89 Goal Achievements / Scoring Ranges 1. Total Safety Perform_ (TSP) 40 9.35 4.0 --> 5.00 5.0-4.01 4.00-3.00 < 3.00 =< ------ -------- -------- ------- 0 20 30 40 ------------ ----------------------------------------------------------------------------- Points Base--- 88/89 Goal Achievements / Scoring Ranges ------------------------------ 2. Suggestions a. Received /100 employees 12 11 11 < 7 7-10 11-14 > 14 0 6 9 12 b. Awarded/100 < 13 13-16 17-19 > 19 processed 16 17 17 by suggestion comnitte ----- -------- -------- 0 8 12 --16--- ----------------------------------------------------------------------------------------- Points Base- - 88/69 Goal Achievements / Scoring Ranges 3. No. of Customers / Employee 20 136.79 139.10 ---< 136.79 136.79 138.01 > 139.10 ----- -------- -------- ------- (Elect., Water & Steam) 0 10 15 20 µ, qBS NTE-£aSM Page 4 of 4 N N O METHODS USED FOR SETTING BASE AND GOAL FOR FY 1988 89 MEASURES MEASURE BASE GOAL A.l.a. Electric operating cost Budget divided by projected sale 90% of Base A.l.b. Water operating cost Budget divided by projected sale 90% of Base A.l.c. Steam operating cost Budget divided by projected sale 95% of Base ----------------------------------- --------------------------------------------- ------------------------------ A.2. Heat Rate Dispatch of available units to meet load 3/4% system improvement ----------------------------------- --------------------------------------------- ------------------------------ A.3. Water treatment cost Budgeted amount + 5% projected chemical Budget cost increase ----------------------------------- --------------------------------------------- ------------------------------ A.4. Steam production efficiency 6 year average Midway between average and low m ----------------------------------- --------------------------------------------- ------------------------------ z m A.5.a. Electric availability Projected scheduled and random outages 10% reduction in random o outages G � A.5.b. Water availability Average of years 1 MGD less than highest year o Oz z A.5.c. Steam availability Average of 1986 and 1987 hours for repair Scheduled outage plus forced ° outage 00 00 ----------------------------------- --------------------------------------------- ------------------------------ N Page 1 of 3 m N . MEASURE_ _ — BASE _ _ _— —GOAL B.1 Customer Disputes Average of FY 88 Base and FY 88 Actual 80% of Average + Combined + Combined billing factor (a$') billing factor ----------------------------------- --------------------------------------------- ------------------------------ B.2.a. Electric Reliability FY 88 Actual + Scheduled outages for FY 89 95% Actual + Scheduled outages B.2.b. Water Reliability Average of two years FY 87 and FY 88 Projected outages B.2.c. Steam Reliability Average of last 6 years 2nd best of 6 year record R l eo 'g7 L£ss '9q ----------------------------------- --------------------------------------------- ------------------------------ C.l.a. Fines Same as FY 88 Same as FY 88 C.l.b. Citations Average of 5 years Same as FY 88 ----------------------------------- --------------------------------------------- ------------------------------ C.2.a. Office telephone response Average of FY 87/88 Base + June FY 88 Survey Same as FY 88 C.2.b. Service call response Average of FY 87/88 Base + June FY 88 Survey Same as FY 88 ----------------------------------- --------------------------------------------- ------------------------------ HIGH,s-:R o-P .2 ye#R5 C.3.a. Shows concern for customers Average of FY 87/88 Base + June FY 88 Survey Same as FY 87/88 C.3.b. Favorability Index Average of FY 87/88 Base + June FY 88 Survey Same as FY 87/88 ----------/Wf IDS c L Ric f L-- --------------------------------------------- ------------------------------ C.4.a. Females hired/promoted Average of FY 87 and FY 88 Higher % of FY 87 and FY 88 C.4.b. Minorities hired/promoted Average of FY 87 and FY 88 Higher % of FY 87 and FY 88 ----------------------------------- --------------------------------------------- ------------------------------ w Page 2 of 3 Ms � MEASURE BASE GOAL D.1. Total Safety Performance Average of 4 years Same as FY 88 INCLUO S 3.3 FoR FY gE' ----------------------------------- --------------------------------------------- ------------------------------ D.2.a. Suggestions received National average National average D.2.b. Suggestions awarded National average National average ----------------------------------- --------------------------------------------- ------------------------------- au.D&STD n "Ir.? D.3. Customers/Employee FY 88 budgeted employee 19 employee reduction ----------------------------------- --------------------------------------------- ------------------------------ 6/7/88. Page 3 of 3 L . COST /BENEFIT ANALYSIS -- FY 88/89 SHARE THE SUCCESS -- (D RASE PAYROLL <--------------------------- SAVING/(COST) --------------------------> r- RANGES $32,164,769 BEYOND<------ GOAL --------M------ BASE --------) BELOW MEASURE RANGE BASE GOAL POINTS GOAL HIGH LOW HIGH LOW BASE ----- ----- ----- ----- ----- ----- ELECTRIC OPERATING mills/RWH COST/UNIT SOLD 15.1 32 $4,287,400 88/89 PROJ. RWH = 15.2 - 15.9 15.2 24 $4,035,200 $2,269,800 2,522,000,000 16.0 - 16.8 16.8 16 $2,017,600 $0 16.9 p ($252,200) WATER OPERATING cents/CCF COST/UNIT SOLD 74.0 20 $764,098 88/89 PROJ. CCF 74.1 - 77.4 74.1 15 $754,892 $451,094 9,206,000 77.5 - 82.3 82.3 10 $441,888 $0 82.4 p ($9,206) STEAM OPERATING $/MLB COST/UNIT SOLD 2.29 20 $215,254 88/89 PROD. MLB 2.30 - 2.41 2.30 15 $198,696 $16,558 1,655,800 2.42 - 2.54 2.42 10 $0 ($198,696) 2.55 p ($215,254) HEAT RATE BTU/RWH MT. RATE BTU 10,731 48 $445,249 5,364 10,732 - 10,756 10,733 36 $439,884 $311,138 10,757 - 10,781 10,814 24 $305,773 $177,027 10,780 p $182,391 WATER TREATMENT $/MG PROJECTED MG = 246 28 $76,513 7,651 247 - 251 247 21 $68,862 $38,256 raj 252 - 256 256 14 $30,605 SO (D 257 p •• ($7,651) STEAM PROD. EFF. MMBTU/MLB id COAL $/TON = 1.561 20 $142,474 En 48.24 1.562 - 1.605 1.584 15 $139,308 $3,166 O MP MLB PRODUC. 1.606 - 1.628 1.606 10 $0 ($69,654) 1. 1,706,433 1.629 p ($72,820) O NO. OF CUSTOMERS 139.09 20 $660,725 Z PER EMPLOYEE 139.10 - 138.01 139.10 15 $663,550 $353,214 0 EMPL. COST/YEAR = 138.00 - 136.79 136.79 10 $350,345 $0 $42,000 136.78 0 ($2,921) CO I Cn Gross savings/(cost) $6,591,713 $6,300,392 $3,443,227 $3,146,211 ($91,323) ($377,662)' N Median saving/(cost) $6,591,713 $4,871,809 $1,527,444 ($377,662) Share the success % 5.00% 5.00% 3.75% 2.78% 2.50% 0.00% Share the success payment $1,729,017 $1,729,017 S1,296,763 $961,334 $864,509 $0 Net saving/(cost) $4,862,696 $4,571,375 $2,146,464 $2,184,877 ($955,832) ($377,662) Median saving/(cost) $4,862,696 $3,358,919 $614,523 ($377,662) Re: Resolution No. 88-6-2 % June 20, 1988'7"�!­a'" SINCE 1885 WATER&LIGHT P.O.Box 13007 123 W.Ottawa Street Lansing,MI 48901-3007 517.487.1885 Memo: May 18, 1988 TO: Share the Success Management Committee FROM: Options Committee SUBJECT: 1988/89 Final Employee Benefit, Option Plan The Committee has reviewed and researched numerous options. . The option package has administrative costs only, while providing our employees the opportunity to purchase additional fringe benefits. Listed below, for your approval, are the final recommendations submitted by the Options Committee on the Employee Benefit Option .Plan: I. Recommendations regarding the Option Committee Members: A. Members term to be two fiscal years with terms expiring on alternate years. B. Committee to consist of: 1. 5 Non-Bargaining Members/ Elected (voting members) 2. 5 Bargaining Members/ Appointed (voting members) 3. 1 MAC Representative 4. 1 WAC Representative _ 5. 1 Task Force Advisor 6. Other representatives as needed. II. Recommend that the Flexible Spending Account (FSA) to be continued. That the Board of Water and Light award the contract to The Travelers Plan Administrators of Michigan, Inc. (TPA) for FSA. III. Recommend the Vision Insurance Option be given to Blue Cross Blue Shield of Michigan, Vision Care Group Benefit Plan and a contract issued. IV. Recommend the Long Term Disability Insurance (LTD) be approved, with the General Manager having authorization to approve the final selection based on the bids now being reviewed. V. Options recommended for FY 1988/89 are: 1. Cash and Deferred Cash 2. Purchase of Vacation 3. Purchase of Free Choice 4. I.C.M.A. 5. F.S.A (Flexible Spending Account) 6. Vision Plan/BCBS 7. L.T.D. (Long Term Disability) See Attachment A for details on each option. I June 20, 1988 97 Upon your review, any questions concerning the options as submitted or changes required will be immediately addressed by the Committee. We thank you for this opportunity t have employee input in our Benefit Options. Karen Simpson, Chair and First Line Supervision Representative Committee Members and MAC and WAC Representatives: Bill Akini, Bargaining Unit Representative J61dy F renbach, WAC Representative - Beverly Ge ge, leric Representative Calvin L. Jones,✓MAC Representative Ronald Larabee`, Middle Management Representative Arleen Laser, Bargaining Unit Representative Brian M/c//Le Professional Representative �—C/�+ 17 / �P Ed Rodriguez, Bargain' g UnI Representative Ste a Simpson, B rgaining Unit Representative Robert Studenka, Technical Representative 1 Caroly�illiams, Bargaining Unit Representative 00/recommnd 98 June 20, 1988 BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER EVANS Res. 88-6,-1 RESOLVED, That Resolution 88-6-1 (Administrative) of the approved General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS SECONDED BY COMMISSIONER BELEN Res. 88-6-2 through RESOLVED, That Resolutions 88-6-2, 88-6-3, and 88-6-4 88-&4 approved (Administrative) of the General Manager's Recommendations be approved. Share the Success cost/ With regard to the Share the Success Program (Resolution 88-6-2) for benefits questioned by Fiscal Year 1988-89, commissioner McComb expressed concern with the Comd_sssioner McC cost/benefits at the minimum levels and the implications for future years. He suggested discussing the STS program in more detail in a committee of the whole meeting before going ahead and approving the total program. After lengthy debate on the issue, the consensus was to wait until the complete results are in for FY '87-88 and a final report is available for review. The Commissioners will then review cost/benefits for both FY '87-88 and FY '88-89, and make any adjustments that are warranted. Following discussion, Resolutions 88-6-2, 88-6-3 and 88-6-4 were adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Res. 88-6-5 RESOLVED, That Resolution 88-6-5 (Administrative Services) of approved the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Res. 88-6-6 RESOLVED, That Resolution 88-6-6 (Consumer Services) of the approved General Manager's Recommendations be approved. Update on BWL FY'88 In response to questions raised at the May 24 Board meeting by accounts receivable Commissioner Hassler, General Manager Pandy presented a composite of write-offs this year's bad debt by utility and by customer type. The 1988 BWL accounts receivable write-off is .27%. Mr. Pandy noted that the five- year write-off average of .25% has remained consistent. A detailed report ,dated June 17, 1988 from Consumer Services Director Neal Housler was handed out. Mr. Pandy also discussed new collection methods implemented by staff, thus reducing the number of delinquent receivables turned over to collection agencies. Following discussion, the motion was adopted unanimously. Tune 20, 1988 101 GENERAL MANAGER'S REMARKS Michigan Department of General Manager Pandy reported on the Michigan Department of Labor Labor citation re: fatal citation on the fatal accident of Bill Duskey that occurred on May accident of Bill Duskey 12th. A copy of the citation was handed out for review. Mr. Pandy advised that the BWL does not plan to appeal the citation nor the penalty of $400. Appropriate action has been taken to ensure another tragic accident of this nature does not occur again. New electric General Manager Pandy reported that a new record for the BWL's electric record set system was set last week on June 15 at 445 MW topping our previous record set the day before on June 14. Mr. Pandy added that another record could be set this week if the temperatures in the 90's continue. Daily peak water General Manager Pandy reported that the water utility has experienced pumping rates peak pumping rates of 40 million gallons/day through this dry spell. reported Normal pumpage is approximately 23 million gallons/day. Possible water service General Manager Pandy reported that Dewitt Township has been actively agreement with Dewitt pursuing a water service agreement with the BWL since the December 1987 Township fire at the Valley Lumber warehouse on North East Street. A water needs study is required from the township before a water service agreement can be negotiated. The lowest engineering bid received by the township was $5,700. The BWL has agreed to advance to the township this unbudgeted expense by providing them with their electric franchise fee based on the BWL's retail revenue for the first six months of 1988. Normally the electric franchise fee is paid once a year on the last working day of January, based on the previous year's revenue. Update on FERC licensing General Manager Pandy reported that the Federal Energy Regulatory of BWL hydropower Commission (FERC) responded to his letter dated May 26, 1988 regarding projects licensing schedules for the Moores Park and North Lansing hydropower projects. Mr. Pandy announced that FERC has accepted the revised time schedule. Management will be reporting further on this matter in July or August, once the consultant's report is reviewed to determine how much money will be involved in the licensing. COMMISSIONERS' REMARKS BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER SEBOLT Fxcused absence That the absence of Commissioner Jessop be excused. Adopted unanimously. Adjournment On motion of. Commissioner Strolle, the Board adjourned at 1:00 p.m. Mary E. pa,' AMg-1etary Filed: June 22, 1988 Rita M. Bauman, City Clerk .I wic cv 17U(7 99 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Res. 88-6-7 thou RESOLVED, That Resolutions 88-6-7 through 88-6-13 (Human 88-6-13 approved Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER BELEN Res. 88-6-14 RESOLVED, That Resolution 88-6-14 (Pension) of the General approved Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER BELEN Res. 88-i-15 through RESOLVED, That Resolutions 88-6-15 through 88-6-18 88-6-18 approved (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-6-19 and RESOLVED, That Resolutions 88-6-19 and 88-6-20 (Water) of the 88-6r20 approved General Manager's Recommendations be approved. Adopted unanimously. Res. 88-5-1 amended General Manager Pandy handed out a proposed amendment to Resolution re: 4O1A Money Purchase 88-5-1 (See item IV-B of the May 24, 1988 Personnel Committee Report) . Retirement Plan with The ICMA Retirement Corporation has requested specific language to meet ICMA IRS requirements. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS That Item IV-B (Other Compensation) of the May 24, 1988, Personnel Committee Report referred to as Resolution 88-5-1 be amended by adding the following supplement: 100 June 20, 1988 SUPPLEMENT TO RESOLUTION 88-5-1 ADOPTING THE 401A MONEY PURCHASE RETIREMENT PLAN WHEREAS, the Board of Water and Light ("BWL") has employees rendering valuable services; and WHEREAS, the establishment of a money purchase retirement plan benefits employees by providing funds for retirement and funds for their beneficiaries in the event of death; and WHEREAS, the BWL desires that its money purchase retirement plan be administered by the ICMA Retirement Corporation and that the funds held under such plan be invested in the ICMA Retirement Trust, a trust established by public employers for the collective investment of funds held under their money purchase retirement plans and deferred compensation plans; NOW THEREFORE BE IT RESOLVED that the BWL, unless it has already done so, hereby establishes a money purchase retirement plan in the form of: The ICMA Retirement Corporation Prototype Money i Purchase Retirement Plan and Trust, pursuant to the � specific provisions of the Adoption Agreement I (executed copy attached hereto) . co The plan and trust adopted by the BWL shall be maintained for the 00 exclusive benefit of eligible employees and their beneficiaries; and 1 � BE IT FURTHER RESOLVED that the amount which forms the basis for computing the BWL's contributions shall be the participant's base j ro salary as of June 30 of the previous plan year. ? BE IT FURTHER RESOLVED that it is understood that the BWL has { z� � previously executed the Declaration of Trust of the ICMA Retirement a z Trust, for the existing 457 Deferred Compensation Plan; and BE IT FURTHER RESOLVED that the BWL, unless it has already done so, hereby agrees to serve as trustee under the money purchase retirement plan and to invest all funds held under such plan in the ICMA Retirement Trust; and BE IT FURTHER RESOLVED that the Director and General Manager shall be the coordinator for this program and shall receive necessary reports, notices, etc. from the ICMA Retirement Corporation or the ICMA Retirement Trust, and shall cast, on behalf of the BWL, any required votes under the program. Administrative duties to carry out the program may be assigned to the appropriate departments. Adopted unanimously. Minutes of the Regular Meeting Board of Zoning Appeals January 14, 1988 - 7:30 p.m. City Hall , Council Chambers, loth floor The meeting was called to order by Chairman Jack Morgan at 7:30 p.m. Roll Call was taken. Present Excused Absence Mary Clark Bernard Christy Edward Spink Priscilla Holmes Bernard Hilts Tom Kane Christopher Steele Jack Morgan Patricia Curran 7:55 pm Staff Vernon C. Fountain, Zoning Administrator Eleanor Love, Senior Planner Elizabeth Gunter, Recording Secretary Hearings and Decisions Appeal #2880, 216 Bingham This is a request by Joseph Leyrer for a zoning variance to allow a 2 story 2 bedroom addition to a 2 family structure. The petitioner proposes to build an addition which will increase the bedroom count of the structure. There are 2-1 bedroom units at present. The applicant wants to increase one of the units to a 3 bedroom. He and his family will live in that unit. A presentation was given by V. Fountain. Slides were shown of the subject property and surrounding land use. Morgan - Will there be any change in the footprint? Fountain - Yes, an existing rear portion of the building will be removed and a larger addition added. Joseph Leyrer, I want this for a family addition. When I bought the house we had no children. It was my grandfather' s house and I want to keep it, I have no desire to move and I need the extra room. Morgan - How far will the addition extend? Leyrer - It will extend 10' back and allow 2 parking spaces. No one spoke in opposition. Nancy Vansickle, 0111 Garfield, manager of 210 Jones Street objects to the addition. A letter from the Eastside Neighborhood Organization is in support of the zoning variance. The addition :-sill not change the density or use of the property. Cornmi ttee of the Whole - Reasons to approve the request: it Will not increase the density of the use; preserve the character of the house; an improvement to the neighborhood; supported by the Eastside Neighborhood Organization. Steele made a motion to approve the request per the staff recommendation. Second by Kane. Ye«s: Spink, Hilts, Kane, Steele, Morgan Nays: Clark Appeal #2880 APPROVED. The board found that to increase in size one of the units in this structure from one to three bedrooms is acceptable in this case. The owner and his family will continue to live in the structure, there should be no increase in the density of use. Also, it was felt that the character of the home will be maintained while improving the neighborhood. Appeal #2882 - 3500 South Cedar This is a request by Everett Plaza Associates for a parking variance, to allow joint use of parking for mixed uses in office/retail center. A presentation was given by V. Fountain. Slides were shoti,;n of the subJect property and surrounding land use. Morgan - Is there the required parking for the office use? Fountain - It meets the code requirements for office and commercial use, but not for the theatres. Robert Heck of Everett Plaza. The office and commercial use will have day hours. The theatres will have evening and ,peek-end hours. There should not be a problem with overlapping of parking. Steele made a motion to approve the request. Second by Clark. Yeas: Spink, Clark, Curran. Hilts, Steele, Kane, Morgan Nays: none. Appeal #2382 APPROVED. The board feels that peak operating hours of each use in the center do not substantial1�: overlap and that parking is adequate, to accommodate the proposed activities. Appeal #2883 - 201 South Francis This is a request by Lyle Stampski for a variance to retain a basement and first floor bedroom addition to an existing single family house. A presentation was given by E. Love. Slides were shown of the subject property and surrounding land use. If it was built with permits and not in the flood plain there would be no need to come before the board. Lyle Stampski , I built the addition for my new daughter. It will allow for inside steps to the basement for the laundry area. The outside stairway is unsafe in inclement weather. Clark - Was it built by a contractor? Stampski - No, I was unaware of the requirements of the permits. A letter from the Michigan Department of Natural Resources has indicated no objection if the variance is approved by the Board of Zoning Appeals. Mike Marhanka, neighbor, has no objection. Robert Heck, owner of the property at 116 South Francis, neighbor, has no objection. A letter from Miriam Alfredson, 126 S. Francis, has no objection to the addition. A letter from Elmer Peterman, 208 S. Mifflin Street, has no objection to the addition. Will look a lot better. Kenneth E. Early, 239 Francis, has no objection. Cyntia Jimenez, 200 S. Mifflin, has no objection. The Eastside Neighborhood Organization has no objection. Clark made a motion to approve the request because there will not be a negative impact. Second by Kane. Yeas: Hilts , Curran, Clark, Spink, Steele, Kane, Morgan Nays: none Appeal #2883 APPROVED The board believes based on evidence and testimony, that the addition will encourage the owner-occupant to remain and improve the property in order to adequately accommodate his family. The board further found that no negative impact on the floodplain is anticipated since the Department of Natural Resources has indicated their willingness to sign the required permits. However, the issuance of a variance to construct a structure below the base flood level will result in increased premium rates for flood insurance up to amounts as high as twenty-five dollars ($25.00) for one hundred dollars ($100.00) of insurance coverage; and such construction below the base flood level increase risk to life and property. Such notification shall be maintained with a record of all variance actions . Minutes Curran made a motion to approve the minutes of the November 12, 1987 meeting. Second by Kane. Motion carried unanimously. Hilts made a motion to approve the minutes of the Deceamber 10, 1987 meeting. Second, by Spink. Motion carried unanimously. There being no further business the meeting adj ned at 8:30 p.m. ernon C. Fount Secretary Board of Zoning Appeals � r n z N CD � � s Cn r' m cav :-U CT.a � t *41 oEve�°p MINUTES WATERFRONT DEVELOPMENT BOARD Wednesday November 16, 1988 12:00 Noon Planning Division Conference Room Present: Mark H. Canady Patrick M. McPharlin Paul Howland Paul E. Nieratko II Charles A. Janssen Kenneth P. Tableman Edward J. Kerr James L. Winckler Staff: Jim Ruff Louise Christian Jon Bauer, Development Division The meeting was called to order at 12:15 p.m. The October 16, 1988 minutes were approved on a motion by Paul Howland, second by Ed Kerr. The June 22, 1988 minutes were approved on a motion by Paul Howland, second Paul Nieratko. Jim reported that the Board' s letter to the Mayor concerning the Grand Tower Building would be forwarded this week .together with letters from the Planning Board and the Urban Development Committee, which also reviewed the proposal . Jim will try to get answers to the Board's questions. Paul Howland distributed copies of a New York Times article concerning a condominium development on the Maumee River in Toledo. Jim reviewed the Out-State Equity Grant Applications recently completed by the Planning Division. Items of interest include: 1. Capital Aboretum Trees - Native and non-native species to be planted for shade, screening and aesthetic purposes, on a 4-mile stretch of the River Trail near downtown. The trees would be tagged with identification plaques. 2. River Trail under the Michigan Avenue Bridge. The footing walls of the Michigan Avenue Bridge would have a large panelized map of the River Trail . Lighting provided by BWL would reduce vandalism, beautify a dark dingy area, and provide information for users of the entire River Trail . 3. Cooley Gardens Restoration. Funds would be provided for a part-time gardener from April 10 through June 30. The gardens, located near the Women' s Club, would attract tourists with horticultural and other interests. Waterfront Development Board Minutes November 16, 1988 4. $20,000 Arts Agency Capital Improvements. For the Riverwalk Theater Project. There is another $50,000 item for funding Riverfest. Jim introduced Jon Bauer, the original planner for the Waterfront Development Board who helped draw up the Waterfront Development Plan. Jon, an architect in the Development Division, shared some of the Development Division' s plans for the River Trail . Jon displayed a map of the City's river systems showing existing and projected development along the Red Cedar River to MSU, and along the Grand River south and west past Potter Park to Delta and Windsor Townships, and north and west, also to Delta Township. The City is always looking for land along the riverfront to acquire by easement or by purchase. The City is also constantly seeking additional dollars from the State. A grant pending at the present time is for acquisition of the Consumers Power Conrail trackage at Logan Street. Jon posted a map of the River Point Property at the confluence of the Grand and Red Cedar Rivers. The State, through the Michigan State Housing Authority (MSHDA) , has a neighborhood improvement grants program to foster trash clean-up, and improvement of the land, and subsequently of the adjacent neighborhood. The City is asking for $100,000 for clean-up of the overgrown vegetation and the trash and dumping which has occurred, and for land improvements along the River Trail--selective screening, asphalt path, fishing docks. We will have the State ' s decision in June. Board members were favorable to the proposal . Jim said donation is another of the City's land acquisition methods. Jim has been working with a land owner on a plan which will leave the owner with a marketable parcel , while at the same time allowing him to make a land donation to the City. Working with property owners opens up some other areas of planning, so that people can see the goals that the City is pursuing. Mr. Winckler asked about the River Trail on the north end of the City and about river crossings. Jon said the Trail included the Conrail right-of-way. Jim said there is a problem with the Ashland Chemical site. The City has hesitated to acquire contaminated land. Too, there is junkyard nearby. Three river crossings are proposed. Jon said ultimately there will be about 20 miles of River Trail within the City. To date about seven miles have been or are being developed, and about five miles are as yet undeveloped. Jon said when the Waterfront Development Board first presented the riverfront development plan to the Public Service Board, they were not too excited about the project. They said how much money and how long. The plan has come a long way since its inception. Jon concluded his presentation at 12:50. Jim distributed a copy of the River Point Proposal . - 2 - Waterfront Development Board Minutes November 16, 1988 Jim asked for comments and suggestions about setting up another meeting time and schedule, for a time, day and week of the month. For 1989, the members decided on noon meetings for the third Friday of the month. Paul Nieratko said he has four students in a planning class to do visual analysis presentations. The project, almost completed for this term except for the presentations, leads into several advanced design assignments. The students have centered their analysis on a river section east-west from Washington to Cedar, and north-south from Shiawassee to I-496. The students must make the 15-minute presentations prior to the end of the MSU term December 9. The Board agreed to hold the December meeting early, on Wednesday, December 7 at 12 noon, so that the students could make their presentations to the Board and Planning staff. Adjournment was at 1 p.m. Respectfully yours James A. Ruff Waterfront Development Planner - 3 - pEVEL0,b �Qo �yA 3 �— v October 14, 1988 TO: Members of the Waterfront Development Board FROM: Jim Ruff, Waterfront Development Board Planner RE: October 19, 1988 meeting The regular October meeting of the Waterfront Development Board will be Wednesday, October 19, 1988 at 12:00 noon in the Washington Square Annex, Planning Division Conference Room, Second Floor. - - - - Please note that this will be a luncheon meeting. AGENDA WATERFRONT DEVELOPMENT BOARD October 19, 1988 12 noon Public comment is invited after each "Old Business" and "New Business" item is presented. Please limit your comments to five minutes. I. Call to Order II. Roll Call A. Excused Absences B. Staff III. Approval of Agenda IV. Approval of Minutes - Regular Meeting of June 22, 1988 V. New Business A. Grand Tower - Need official recommendation. VI. Adjournment DEV Etop ��0� ��� MINUTES 3 0 WATERFRONT DEVELOPMENT BOARD Wednesday- June 22, 1988 12:00 Noon Planning Division Conference Room Present: Mark H. Canady Paul Howland Charles Janssen Patrick M. McPharlin Paul E. Nieratko II Kenneth Tableman James L. Winckler Guest: Staff: James Blair - - - Jim- Ruff Louise Christian The luncheon meeting was called to order at 12:10 by Mr. Janssen. Mr. Canady assumed the chair at 12:15 p.m. Mr. Saunders ' appointment ended June 1988; he asked not to be reappointed; thus, the Board is without a chairman. Agenda was approved with addition of: New Business B. BWL Construction, and C. Trip to Toledo. August Picnic A discussion of the August picnic followed. The Friends of the River will host a picnic on Tuesday July 26 at the Lansing Boat Club. The Princess Laura has been chartered for the occasion. Traditionally, the Mayor, Council , and Waterfront Development Board are invited; it could be a joint picnic. Motion Howland, second Winckler, to combine picnics with the Friends of the River, make it the July regular meeting, and have no August meeting. Unanimous. N. Grand Parking Garage Jim is preparing a letter to the Mayor expressing the Board 's disapproval and noting the negative impact on both the Ottawa Power Plant and its possibilities for reuse. Jim noted that the plans are finalized. The Planning Division in the Public Act 285 Review stressed the fact that the design was incompatible with the Ottawa Power Plant structure. Clean-up Review Jim reviewed the clean-up. Participating groups, Kiwanis, Davenport College, and Willow Plaza, received mayoral proclamatons commending their service. We took out a lot of debris, and unexpectedly, lots of styrofoam beverage cups. Styrofoam is not biodegradable; it takes about 400 years to disintegrate. To eliminate this kind of environmentally harmful trash from the river, the Water- front Development Board might want to take the position of recommending a return to biodegradable beverage containers. New Business: Christman Parking Lot. Christman is requesting an expansion of their parking lot. A 3-story structure is located on the property. Christman wants to use all three floors for office (in the past they have used only one floor) , so that changes their need for parking. They have four spaces in one location and need an easement for access to another four spaces. Jim said the Waterfront Development Board's recommendation will be aligned with that of the Planning Division and Planning Board. We will recommend that the right-of-way be maintained and that landscape, screening and buffering be maintained. A slope, not a wall , would have to be constructed. The bank would be similar to that on the Riverwalk near the museums. BWL Construction, The Board of Water and Light wants to extend their parking lot, eliminate four small buildings, and build a simple pole building to house the Water Department vehicles on their property near _Hazel Street. It is more than 150 feet from the river (Waterfront Development Board jurisdiction) , but the lot abuts the river. There is River Trail easement thro_ugh_ here already. Motion Nieratko, second McPharlin, to recommend that BWL provide landscape, screening, and water line and drinking fountain, and secondary lighting for the River Trail , before approval of plans. Unanimous. C. Trip to Toledo The City will charter a bus to Toledo, Ohio for the Mayor, City Council , Economic Development Commission and Waterfront Development Board members to view the Toledo waterfront. Jim will coordinate with the EDC for the trip for July 29. The City of Toledo worked out a strong development plan for the downtown district, linking it to the river. Mr. Blair stated that Lansing needs a strong development plan for its business district--it would be a valuable experience for City officials to see the results of Toledo's plan. Mr. Blair also stated that the EDC may be willing to hire and pay for a consultant to put the plan together as a tool to present to potential developers in the City of Lansing. Motion McPharlin, second Nieratko, for a detailed broad-based use and development plan for downtown Lansing. Unanimous. Mr. Blair mentioned the River Fast scheduled for Labor Day weekend. The Board may wish to mount a display and have some Board members present to explain what the Board is trying to accomplish on the River. Tabled until July meeting. Meeting adjourned at 12:57 p.m. Respectfully submitted itlo, James A. Ruff Waterfront Development Planner p�� pEVE�ppM� MINUTES 3 70 ° WATERFRONT DEVELOPMENT BOARD Wednesday May 18, 1938 12:00 Noon Planning Division Conference Room Present: Mark H. Canady Paul Howland Patrick M. McPharlin Paul E. Nieratko II James L. Winckler Kenneth P. Tableman Absent: Michael C. Saunders Charles A. Janssen Staff: Jim Ruff Louise Christian Chairman Mark Canady called the luncheon meeting to order at 12:04 p.m. River Clean-up. Jim listed the five areas targeted for clean-up as follows: 1 . North Grand Avenue between Saginaw and Oakland. 2. Tecumseh Park. This park has minor debris. 3. River Street Park, both sides of the River. About 15 students from Davenport College have volunteered for this clean-up; Brenda Hull , Human Resources Department Project Coordinator, will be working with them. 4. Riverfront Park. There is some trash among the trees and at the river's edge. From Michigan Avenue north, the Kiwanis will be working under the general direction of Paul Nieratko. 5. Willow Plaza, at the corner of Willow and North Grand Avenue across from Dietrich Park. Five or 10 peer advisors from the Willow Plaza Teen Clinic will be working in this area, picking up paper and trash that has blown down the bank from the Shop-Rite Supermarket. Jim has arranged for some equipment for workers--hand-held radios (from the Building Safety Division) , rubber coated gloves, and 12 pairs of knee-high waterproof boots for workers wading into the water. The Parks Department will put out barrels for the refuse. We will meet at 8 a.m. at the Lansing Center (the Davenport group will begin at 10 am) ; the - 1 - Waterfront Development Board Minutes May 18, 1988 work should be done at noon. Mark will be at the Willow Street project, and Paul will be along the Riverfront Park. Ken Tableman will be on the west side of the river between Oakland and Saginaw. Mr. McPharlin can work anywhere. Mr. Howland said he would help at Tom' s Shop-Rite. The Channel 28 advertising for clean-up volunteers was not effective; however, it was a good experiment, in terms of learning about potential response. For the next clean-up, Jim intends to use public service announcements on the AM stations. B. Date of next meeting. Mark said we should meet in June to assess the clean-up. We should have a party along the river and invite the volunteers. It would be a good way to bring attention to the river. The first weekend in August was set for a picnic with a family orientation. The June meeting was set for Wednesday June 22 at noon, a luncheon meeting in the Planning Division Conference Room. Mark suggested we plan the picnic at the June meeting, and take July off. The consensus was that the picnic would serve as the August meeting. Motion by Mr. Howland to have no meeting in July, second McPharlin. Passed by consensus. C. North Grand Parking Ramp. This is the parking ramp built over North Grand Avenue located next to the Ottawa St. Power Plant. The City wants to add two floors on top of the existing structure. The Waterfront Development Board does not have jurisdiction; however, because the proposal impacts the Ottawa Street Power Plant, which is within the 150' jurisdiction of the Waterfront Development Board, the Board should express an opinion. This is the only time that we can make an impact on the design. The parking garage design is detrimental to the power plant--they do not serve each other. If the garage served the plant, the contrast could be ameliorated. There are good-looking parking garages ; however, the garage proposed is big and ugly. The City is receiving downtown development proposals, so the need for parking is there. The garage proposal is detrimental to the Ottawa Street Power Plant, but we cannot do much about it, though we should express an opinion. The parking structure will impact the future use of the power plant in two ways--positively, because parking will add to the reuse possibilities ; and negatively, because it will impact the aesthetic aspect of the Power Plant. It will obstruct a quality view of the building. The proposed structure may also affect any attempt to include the Power Plant building on the National Register of Historic Buildings. The original plant was razed in the twenties; the present structure was dedicated in the 40' s. - 2 - Waterfront Development Board Minutes May 18, 1988 The color gradations in the brick tiers represent the colors of the flame in the combustion of coal . The power plant will go out of service within the next decade and re-use possibilities of the building will be affected by the parking. It does present some interesting and exciting possibilities for re-use. The Board' s recommendation should be relative to the lack of design control . Jim explained that the City does not have an architectural design review board, -but rather only a building permit review process. In the Capitol City Revitalization study, a proposal was made for a Design Review Board that would review any structure in the City, but particularly in the Central Business District. There is no control at present; we can only make recommendations. Mr. Nieratko suggested, at minimum, relating the structure to the Ottawa Power Plant by matching the garage brick facade to the colored brick tiers of the power plant building. Jim said he would put something together for the Board members to review prior to making comment. Mark asked about proposals for re-use. Jim said it could be a people- oriented place like Trappers Alley, plus offices on the upper tiers. There is great potential . The meeting adjourned at 12:58 p.m. Respectfully submitted James A. Ruff Waterfront Development Board Planner - 3 - DEVELop �Qo� MFy� MINUTES WATERFRONT DEVELOPMENT BOARD 3 January 21, 1988 City Council Conference Room - Present: Absent: Mark H. Canady Robert E. Ford Charles A. Janssen Paul E. Nieratko II Michael C. Saunders Kenneth P. Tableman Absent: Larry L. Meyer James L. Winckler Staff: Jim Ruff The regular meeting of January 21, 1988 was called to order at 5:30 p.m. by Chairperson Mark Canady. Mr. Meyer and Mr. Winckler requested and were given excused absences. The minutes of the regular meeting of October 21, 1987 were approved, motion Canady, second Nieratko, unanimous. River Clean-up '88. Riverfront property owners, neighborhood group members and interested members of the public. could participate. Jim will coordinate with Public Service for trash pickup, and with Board of Water & Light, if they plan to lower the river level . The clean-up ties in with the River Pointe proposal , Item B. The BOC Supervisory Group volunteered for a clean-up project in February; the River Pointe was suggested. It will be mostly vegetation and trash removal . To publicize the event, Jim will contact print and broadcast media. Mr. Canady said that Cable Station 17, as a cable company required to allow public access to its facilities, permits citizens to broadcast announcements, etc. Neighborhood groups and civic organizations will also disseminate information. Mr. Saunders said the Board should maintain contact with groups like the Vietnam Vets and the BOC group who want to do something every year. They are trained and ready for the next project. Mr. Canady suggested that priority areas be designated at the February meeting. Saturday June 18, following the regular meeting June 16, was suggested as Lansing River Beautification Day. Jim will issue notifications during February. River Pointe Proposal . The City has no trailer- or camper-parking space for trave ers. It may be possible,.to equip a small number of sites that would be Waterfront Development Board Page 2 Minutes January 21, 1988 available for overnight campers. Mr. Saunders suggested Jim propose the development for River Pointe, enlarge it, and relate it to the River Trail system through Elm Park. The Board has talked for years about providing access to the River Pointe as part of the riverfront in public ownership. There is no money for such a development, but still it can be proposed, perhaps as part of the Capitol Revitalization plan, or the Capitol Park proposal . A campground could be incorporated, as a place where people could camp, and then bicycle to the State park. Several satellite campgrounds could be established around the downtown area. If the old Diamond Reo site were turned into a softball tournament park, a nearby campground becomes a valuable idea. Something spectacular should be done on the River Pointe. Jim suggested the Board tour .the area. Mr. Tableman left at 6 p.m. The land area is about 5 acres, zoned mostly "DM-4" Residential , multiple family district, some of it in the floodplain. The zoning code allows camping in sites. of ten acres (500 square feet or more) , zoned "A" Residential and "F" Commercial Districts. Since a campground is addressed only in those districts, it is possible that the- Planning Board may be able to decide, based on the "DM-4" District, that it could be a permitted use. If it were owned by the City, it would have a different connotation--public entity zoning. Mr. Saunders asked about the possibility of the City Club moving. Jim said a parking ramp expansion had been. suggested for the site; . however, a parking consultant will make recommendations - Mr Nieratko said if a parking structure is constructed, the ground floor should be devoted to commercial/retail/office uses. Mr. Robert Ford submitted his resignation because he is moving from the City. Mr. Ford said he enjoyed his service on the Board; Jim expressed the gratitude of the Board for Mr. Ford's participation and contributions, and for his enthusiasm and dedication. Jim will forward the resignation to the Mayor. The meeting adjourned at 6:15 p.m. . Respectfully submitted James A. Ruff Waterfront Development Board Planner -Decembe,;- 20, 1988 157 Office, Board of Water and Light Lansing, Michigan Tuesday, December 20, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Jessop, McComb, Sebolt, Strolle, Williams, and Hassler--7 Absent: Commissioner Evans --1 Quorum The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Secretary Sova and Executive Staff members were present. (An attendance list is available from the Secretary's Office.) NOTICE RESCHEDULED REGULAR MEETING Rescheduled Meeting The regular meeting of the Board of Water and Light Commissioners of the City of Lansing, Michigan, scheduled to be held at 5:30 p.m. on December 27, 1988 in the Board Room on the Second Floor of the Board of Water and Light Building, 123 West Ottawa Street, Lansing, Michigan, has been rescheduled for Tuesday, December 20, 1988, at 5:30 p.m., in the aforesaid room. Posted: December 14, 1988 Certified by: BOARD OF WATER AND LIGHT Mary E. Sova, Secretary Act 267, PA '76 Telephone 371-6033 Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all present. Correction to Minutes General Manager Pandy noted that at the -November 22, 1988 regular Res. 88-11-12 Re: meeting, the bid price of BWL Vehicle #118 (Resolution 88-11-2) , Vehicle #118 reported in the General Manager's Recommendations, was inadvertently listed as $36,100. The correct bid price was $30,100. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER BELEN That the minutes of regular session of November 22, 1988 be approved as corrected. Adopted unanimously. 158 December 20, 1988 Public CaTnents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Resolution 88-12-1 PERSONNEL COMMITTEE REPORT December 20, 1988 Personnel Carnnittee Board of Commissioners Report Re: Non- Board of Water and Light Bargaining Unit Clerical Lansing, Michigan Job Evaluation Plan and Pay Structure Dear Ladies and Gentlemen: The Personnel Committee met on Tuesday, December 13, 1988 to consider the Non-Bargaining Unit Clerical Job Evaluation Plan and Pay Structure, as submitted by staff. Present were Personnel Committee Members Jessop (Chair) , McComb and Sebolt. Follow,;.ng discussion and a review of the history of this proposal, the process, and findings and recommendations, the Committee adopted the following motion and recommends Board approval: I. SALARY STRUCTURE: That the new salary structure for clerical employees be implemented as proposed. II. EVALUATION SYSTEM: That the point rated job analysis system be eliminated for this group and the new ranking method be implemented as proposed. Respectfully submitted, E. Lane Jessop, Chairman Personnel Committee BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT That the Personnel Committee Report (Resolution 88-12-1) be approved as submitted. Adopted unanimously. Decenuer 20, 1%8 159 December 20, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-12-2 That the Board of Water and Light (BWL) enter into a contract with Michigan Public Power Agency (MPPA) for the Contract with MPPA for sale of partial requirements capacity and energy for the the sale of Partial calendar year 1989 in amounts mutually agreed to by the requirements capacity parties. The capacity charge is $3.50 per KW per month and and energy for the energy is billed at BWL average out-of-pocket cost plus Calendar 1989. 10% for the three previous months. MPPA will resell this capacity and energy to five of its member cities who now purchase wholesale power from another supplier. Those cities are Charlevoix, Chelsea, Eaton Rapids, Harbor Springs and Petoskey. -------------------- See Joe Wolfe's memo and attachment dated 12/12/88 for further details. -------------------- Res. No. 88-12-3 That in accordance with Article II, Section 2. 1 of the BWL Rules of Administrative Procedure, the following Board Meeting listing of dates be adopted as the meeting schedule for schedule for the the Board of Water and Light for the ensuing six (6) next six months months. This schedule is subject to change as a result of date conflicts with rescheduled City Council meetings. Further, that a notice of the meeting schedule be pub- lished in the LANSING STATE JOURNAL the week of January 8, 1989. 160 December 20, 1988 ADMINISTRATIVE (Continued) (Res. No. 88-12-3) The following is the schedule of regular meetings of the Board of Water and Light Commissioners commencing at 5:30 p.m. for the first six (6) months of 1989: January 24 Tuesday February 28 Tuesday March 28 Tuesday April 25 Tuesday May 23 Tuesday June 27 Tuesday -------------------- ADMINISTRATIVE SERVICES Res. No. 88-12-4 Administrative Services Division, in accordance with prior Board approval, sold the following BWL vehicles at the Sale of 3C State of Michigan Public Auction of Motor Vehicles on vehicles ratified November 19, 1988. Sale BWL # Description Price 5 1979 GMC model TC20903 cab and chassis with Powers body. $ 1 ,300.00 17 1976 Dodge model D-700 cab and chassis with Galion dump body. 3,900.00 24 1981 Chevrolet model CG1105 van. 600.00 68 1982 Chevrolet model CG1105 van. 1 ,800.00 71 1981 GMC model TC31003 cab and chassis with Powers body. 3, 100.00 Total $10,700.00 Less 5.6% Auction Fee - 599.20 Net Sale Price $10,100.80 -------------------- Bids for the new vehicles to replace the above listed vehicles were taken with and without trade-in allowance. The total trade-in allowance for the above vehicies was $2,350.00, thus the BWL netted an additional $7,750.80 by selling at auction. December 20, 1988 161 HUMAN RESOURCES Res. No. 88-12-5 That Messrs. Harry Doesburg, Rodney Putnam and Donnie Vandergriff, maintenance mechanic and maintenance Suggestion awards to supervisor for Production Maintenance and mechanic for Harry Doesburg, Rodney Steam Distribution, be awarded $605.00, to be divided Putnam andIbnnie equally, ($201.67 each) for suggestion ( 1989-67) , to Vandergriff fabricate and install a packing ring and gland to stop a persistent steam leak. This suggestion eliminated extensive renovation and replacement of the entire steam line in that area of the system. -------------------- It is estimated that the BWL will save $5,300.00 the first year by using this suggestion. -------------------- Res. No. 88-12-6 That Ms. Lois K. Hagy, Clerk 2A for Customer Services be awarded $346. 12 for her suggestion (1989-10) to redesign Suggestion award to the water meter card to six dials from five dials. This LDis Hagy change will reduce errors on customer-read cards and promote timely billings. -------------------- It is estimated that the BWL will save $2,711 . 16 the first year by using this suggestion. -------------------- Res. No. 88-12-7 That Ms. Sheryl D. Bowie, customer service representative, Customer Services, be awarded $389. 13 for her suggestion Suggestion Award to (1989-19) to assign an account to a customer name "as of" Sheryl Bowie a certain date in the case of separation or divorce where one spouse remains in the residence. This idea will reduce the number of times meter readers must be dispatched to obtain turn-off and turn-on readings under the described circumstances. -------------------- It is estimated that the BWL will save $3, 141 .32 the first year by using this suggestion. -------------------- Respectfully submitted, Joseph Pandy, Jr. //�"✓" JP/bg General Manager `��� 162 December 20, 1988 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-12-2 and RESOLVED, That Resolutions 88-12-2 and 88-12-3 88-12-3 approved (Administrative) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-12-4 approved RESOLVED, That Resolution 88-12-4 (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP Res. 88-12-5, 88-12-6 RESOLVED, That Resolution 88-12-5, 88-12-6 and 88-12-7 (Human and 8&12-7 approved Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER SEBOLT That Resolution 88-12-8 be approved as presented: Resolution 88-12-8 ..... ................. PRESERVE TAR-EXEMPT BONDS FOR STATE AND LOCAL GOVERNMENTS Res. 88-12-8 Board WHEREAS, the federal, state, and local governments all share in resolution encouraging the responsibility of building and maintaining the nation's physical Congress to preserve and institutional infrastructure and in providing essential services tax-exempt bonds for needed to promote the general welfare; and state and local governments WHEREAS, the federal government has steadily reduced its responsibility for infrastructure requirements, and has shifted more and more financial responsibility to states and units of local government; and WHEREAS, shifting the tax burden from the national level to state and local governments is an illusory savings for taxpayers and provides no net tax relief; and WHEREAS, financing state and local government projects through the issuance of bonds the interest on which is not taxed by the federal government is critical to allow states and local governments to exercise the responsibilities entrusted to and expected of them; and December 20, 1988 163 WHEREAS, in recent years, the U.S. Congress has both limited the use of tax-exempt bonds by states and local governments, and made municipal bonds less attractive to significant groups of purchasers, thereby driving up the cost of financing public service projects; and WHEREAS, in 1988 the U.S. Supreme Court overturned a 100-year-old precedent, ruling for the first time that the Constitution does not prohibit the federal government from taxing the interest on state and local government bonds; and WHEREAS, the Supreme Court decision places in jeopardy the use of tax-exempt bonds by the more than 85,000 units of state and local government, as Congress seeks new sources of revenue to reduce the federal deficit; and WHEREAS, state and local borrowing costs will increase by an estimated 20 to 30 percent if the interest on tax-exempt bonds is subject to federal income tax, and this added burden will be reflected in reductions in public services or by increased state and local taxes; and WHEREAS, further restrictions on the use of tax-exempt bonds will seriously impair the ability of state and local governments to finance essential services and facilities, including schools, roads, water, sewer, gas, electricity, transportation and other basic functions, to the detriment of all citizens; NOW, THEREFORE BE IT RESOLVED: that the Lansing Board of Water and Light calls upon Congress and the President to recognize that the state and local burden of maintaining and expanding the national infrastructure and providing citizens with needed basic governmental services cannot be met without tax-exempt bonds, and to resist all further efforts to reduce the use of such bonds to finance governmental projects. Adopted by the following vote: Unanimously. 164 December 20, 1988 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER SEBOLT That Resolution 88-12-9 be approved as presented: Resolution 88-12-9 Ras. 88-12-9 Resolution RESOLUTION.REQUESTING AN E%T ENS ION OF MPPA PROJECT STUDY requesting an extension of OF INDIVIDUAL & INTEGRATED POWER SUPPLY NEEDS MPPA Project Study of AND RESOURCES - PHASE II individual and integrated power supply needs and WHEREAS, the Board of Water and Light of the City of Lansing, resources-Phase II Michigan (the "Participant") is a member of the Michigan Public Power Agency (the "Agency") , an agency formed to meet the future electric needs of its member municipalities; and WHEREAS, it is anticipated that the expenses of the Agency will be met in the following manner: i. General administrative expenses will be paid from dues to be received by the Agency from all members of the Agency. 2. Project costs will be paid by members of the Project Committee; and WHEREAS, Project Study Costs, such as engineering fees, legal fees, financial consulting fees, travel costs and others must be incurred by the Agency to investigate the desirability of a suggested project; and WHEREAS, Project Study costs must be paid by the Agency whether or not a project is finally acquired; and WHEREAS, the agency on December 13, 1984 accepted an Engineering Report. - Power Supply Study (the "Report") dated October 31, 1984, completed by R.W. Beck and Associates on behalf of the Agency; and WHEREAS, the Report inicated, among other things, that: 1. There appears to be sufficient generating capacity among MPPA's members to meet their combined needs until the year 2000. 2. There are substantial savings to MPPA's members from a combined dispatch of the resources of Agency members; and WHEREAS, on the basis of the Report, the Lansing Board of Water and Light is participating in Phase II of the Power Supply Study, under the terms of a resolution dated July 30, 1987, to a. maximum amount of $130,000.00; and December 20, 1988 165 WHEREAS, studies completed to date have resulted in the development of proposals for sharing the substantial savings to be derived from the combined dispatch of the resources of Agency members; and WHEREAS, in order to complete the engineering work on the methods for sharing the savings of combined dispatch and undertake the substantial legal work necessary to implement the decisions of the Agency resulting from the Power Supply Study - Phase II, including preparation of agreements among the Agency, participating members and others for dispatching the resources of the participating members on a combined basis, matters relating to transmission and other matters; and WHEREAS, the maximum amount required to complete Phase II of the Project must be increased; and WHEREAS, the Lansing Board of Water and Light wishes to continue its participation in the Power Supply Study - Phase II; NOW THEREFORE, HE IT RESOLVED, by the Lansing Board of Water and Light, as follows: 1. The Agency is hereby requested to continue Phase II of the Power Supply Study. 2. The Participant agrees to continue to reimburse the Agency on a monthly basis for its share of the Project Study Costs, as determined by the Project committee, up to a maximum reimbursement of $157,600.00. 3. The Participants understand that these costs not be reimbursed by the Agency at a later date, unless the Project Study results in a revenue generating project of the Agency. Adopted by the following vote: Unanimously. GENERAL MANAGER'S REMARKS General Manager Pandy reported on the following BWL activities: General Manager cannents Preserving Tax-Exempt Financing. BWL and City of Lansing on the significance of representation at a workshop on "Financing Your Future" held preserving tax-exempt November 29, 1988 in Cleveland, Ohio, received excellent coverage in financing the December 5, 1988 issue of APPA's PUBLIC POWER WEEKLY. A broad coalition of state and local government organizations has mounted a nationwide effort to prevent Congress from disabling state and local governments' means to finance vital public services at the lowest possible cost to taxpayers. A BWL press release announcing the Board of Commissioners' position on this issue is being disseminated on December 21. 166 December 20, 1988 Proposed industrial Industrial Prospect. BWL staff has been working closely with the development on Diamond Michigan Department of Commerce and the City of Lansing regarding a Reo site proposed development on the Diamond Reo site. Projected first-year electric, water and steam costs were summarized. h OSHA inspection at MIOSHA Inspection. The Michigan Occupational and Safety Health Eckert Station Administration (MIOSHA) conducted a health inspection at Eckert Station. A review of preliminary findings, held December 12, indicated three minor violations, which by comparison is considered minimal for the size of Eckert Station. The official MIOSHA report is expected to be received in January. City of Lansing Arrearage. BWL staff has met with City of Lansing Public Service Department staff to work out a payment schedule on an outstanding debt owed to the BWL. Agreement has been reached and the debt is expected to be paid in full in sixty days. Dissatisfaction expressed SUPREMA. The computerized power plant maintenance management package, with SUPRIM power plant purchased from Sperry Computer Systems (UNISYS) in 1986, has not maintenance management performed to the BWL's satisfaction. UNISYS has agreed to issue a package letter of credit in the amount of $50,000 to be applied against future purchases. Alternative computerized systems for power plant maintenance are being explored. Once options are investigated, a recommendation will be submitted to the Board for approval. Capitol Loop Project Capitol Loop Project. The State of Michigan is proceeding with the to involve BWL under- contemplated loop around the Capitol complex commencing from S. Logan ground facility re- Street. This project will entail relocating BWL underground location facilities. Staff is preparing relocation cost estimates for submittal to the State. BWL submits application System Achievement Award. The BWL has applied for the American Public for the E.F. Scattergood Power Association (APPA) E. F. Scattergood System Achievement Award. Award Brochures detailing the BWL's Share the Success program, Excellence in Customer Service program, Business Plan for 1983-89, and other documents in support of the BWL's low rates, high generation availability and 1987 Annual Report were submitted with the application. Status report on steam Steam Reliability Intertie. A status report on the Steam Reliability Reliability Intertie Intertie, prepared' by Steam Utility Director Joette Woodard-Yauk, dated Project December 9, 1988, was handed out. It was reported that the original estimate of $400,000 for labor and materials on the entire project did not include some of the field conditions experienced. underground. Du- to a combination of engineering and other overhead costs, the total revised completion estimate for the project is $659,000. Ottawa Station selected MMEA Legislative Fish Fry. Ottawa Station has been selected as the _ as the site for N14FA site for the annual Michigan 14unicipal Electric Association (MMEA) Legislative Fish-Fry 'Legislative Fish Fry to be held in early April, 1989. An insurance rider for. the BWL and MMEA is being purchased to protect against liability exposure during this event. December 20, 1988 167 General Manager Pandy Expressions of Sympathy. General Manager Pandy thanked the expresses his gratitude Commissioners and BWL employees for the tremendous support he and his for support received family received as the result of the sudden passing of his mother, during recent loss of Dorothy Pandy, on December 10. He noted that the expressions of his mother. sympathy gave great comfort to him and his family. COMMISSIONERS' REMARKS Commissioner Sebolt inquired about the status of the BWL coal supply. Status of Coal. Supply General Manager Pandy and Assistant General Manager Wolfe reported that the BWL coal supply is currently at 39-40 days. Railroad car demand has subsided, hence BWL coal supply is gradually returning to its normal 60-day stockpile level. Commissioner Williams requested a report on the December 18 water main break. Report on recent water General Manager Pandy and Water Utility Director Dugan reported that main break the water main break, which occurred on Cedar Street just south of Elm Street, was caused by weather conditions. The break resulted in the loss of 750,000 gallons of water before it was isolated. Mr. Dugan reported that there was no evidence of damage to residences in that area caused by the temporary flooding. Comnissioner Hassler Commissioner Hassler inquired on the progress of status reporting for comments on status Major Projects, more particularly when presenting data on an overrun reporting for Major basis. He noted that the reporting process needs to be tightened up Projects for a better understanding of estimates vs. actual. A suggestion made was highlighting projects experiencing overruns or other unique situations. General Manager Pandy responded that the Major Project reporting format is presently being reviewed by staff. This item will be discussed with the Commissioners in greater depth at a future meeting. BY COMMISSIONER. STROLLE-- SECONDED BY COMMISSIONER SEBOLT Excused absence That the absence of Commissioner Evans be excused. Adopted unanimously. Adjournment On motion of Commissioner Strolle, the Board adjourned at 6:04 p.m. Mary E. Sova, Secretary Filed: December 22, 1988 Ba of Water 3 .ecember [C_ »�� November 22, 1988 143 Office, Board of Water and Light Lansing, Michigan Tuesday, November 22, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Strolle, Williams, and Hassler--8 Absent: None Quote The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Secretary Sova and Executive Staff members were present. (An attendance list is available from the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all present. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP Approval of That minutes of regular session of October 25, 1988 be Minutes approved- as mailed. Adopted unanimously. Public OQmnents CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. FINANCE COMMITTEE REPORT November 22, 1988 Finance Camdttee Board of Commissioners Report Re: BWL, Board of Water and Light Audit Lansing, Michigan Dear Ladies and Gentlemen: ; The Finance Committee reports it met on October 25, 1988 wi th General Manager and staff to receive a quarterly activities report fr ca the Internal Auditor and to review the audit of the Board o Wat, an'£� Light's financial statements covering fiscal year ending Ju�e 396 19*, conducted by Touche Ross and Co. V -4 c%z Ot 144 November 22, 1988 Present were Commissioners Hassler (Chairman) , Belen, and Evans. Also present was Commissioner Strolle. Resolution No. 88-11-1 The Finance Committee reports that the Fiscal 1988 audit review covering the scope and procedures of the audit with a representative of Touche Ross and Co. and Board of Water and Light staff was completed to the committee's satisfaction. Other than the standard auditors' opinion letter and a commendation for correcting a past reoccurring discrepancy, there were no corrective; actions recommended by the auditors. The Finance Committee advises that the following has taken place: 1. The audit of the Board of Water and Light's financial statements covering fiscal year 1988 and Management Letter were filed with the following offices by the Secretary of the Board: a. City Clerk on September 28, 1988 b. State Treasurer on October 28, 1988 ? A condensed copy of the: audit was published in the LANSING STATE JOURNAL on November 8, 1988. 3. The audit of the financial statements of the Plan for Employees' Pensions of the Board of Water and Light for fiscal year 1988 was received and referred to the Personnel Committee. Respectfully submitted, Phillip E. Hassler, Chairman Finance Committee BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP That the Finance Committee Report (Resolution 88-11-1) be approved as submitted. Adopted unanimously. Novenber 22, 1988 145 PERSONNEL COMMITTEE REPORT November 22, 1988 Personnel Ccurnittee Board of Commissioners Report Re: Board of Water and Light - Urterly pension Lansing, Michigan investments - Pension recamiendation Dear Ladies and Gentlemen: for Nolan Owen Resolution honoring The Personnel Committee reports it met on November 18, 1988 to Nolan Owen review the following items: - Fmployment Contract for General Manager 1. Quarterly pension investments. A separate Committee - Child-Care Report has been submitted to the Pension Fund Trustees for consideration. 2. Pension recommendation for Nolan Owen. 3. Employment Contract for the General Manager. 4. Child Care. Present were Commissioners Jessop (Chair) , McComb, Sebolt, and Strolle (Alternate) . Also present were Commissioners Evans and Hassler. Discussion of the unique nature of Mr. Owen's relationship to the Board of Water and Light was held; the committee clearly indicated that the action taken in regard to Mr. Owen's pension would not establish a precedent for the pension fund or for its administration. After review and discussion, the committee adopted the following resolutions and recommends Board approval: Resolution 88-11-14 ................................ .. ... Pension for Nolan Owen_...__..........I........._.._......_ ....... Owen Resolved by the Board of Commissioners: RESOLVED, that in light of the unique circumstance surrounding Nolan Owen's community service leave of absence, the annual wages for Mr. Owen for the period 1963 through 1965 be adjusted to current rates; and that the Board may, in its discretion, review future leaves of this type on a case by case basis. The Board intends its actions to be non-precedent setting and non-binding as applied to other employees. Because the position that Mr. Owen held in 1965 no longer exists, it is recommended that the average bargaining annual wage of $26,374 be used. This would result in increasing the BWL annual pension from $1,281.34 to $5,127.18 for Mr. Owen. 146 Novenber 22, 1988 BE IT FURTHER RESOLVED, that at the time of retirement, the BWL will offer Mr. Owen a choice of Blue Cross-Blue Shield, Physicians Health Plan or Health Central health insurance. He would also be entitled to Travelers Major Medical and Dental Insurance. Mr. Owen would receive any future pension and insurance adjustments afforded all BWL retirees. United Way will be picking up Mr. Owen's life insurance, provided by Mutual of America. Resolution 88-11-15, Resolution in Honor of Nolan Owen Resolved by the Board of Commissioners: WHEREAS, Nolan Owen was employed by the Board of Water and Light from November 23, 1953 to March 11, 1965; and WHEREAS, Mr. Owen was granted a Community Service Leave of Absence from the Board of Water and Light on March 11, 1965 to join the Capital Area United Way, Inc. as a union representative for the BWL and the Lansing community; and WHEREAS, Mr. Owen has demonstrated his leadership in civic affairs as well as in the labor community. As a civic leader he has served on the Lansing Housing Commission, the Lansing Fire Board and the Lansing Police Board, and in the labor community he has served as Community Services Representative for the Lansing Labor Council with the Capital Area United Way; and WHEREAS, in his community service leadership roles, Mr. Owen has represented well the Board of Water and Light, its employees, Management and its programs; NOW, THEREFORE, BE IT RESOLVED, the Board of Commissioners of the Board of Water and Light hereby commends Mr. Owen, on the occasion of his retirement from the Capital Area United Way after 24 years of service, for his outstanding and loyal community service representing union employees of the Board of Water and Light and the Lansing community. EMPLOYEE CONTRACT FOR THE GENERAL MANAGER The Committee reviewed a draft copy of an Employment Agreement for the General Manager and discussed the legalities involved. Following discussion, the Commissioners agreed to review additional copies of sample agreements used by other public power entities and related industry. Once research is completed, the committee will reconvene to discuss this matter in greater depth. November 22, 1988 147 DAY CARE The Committee received a presentation from Human Resources Director Mark Vander Jagt on concerns raised by BWL employees on day care needs. Mr. Vander Jagt reported that the Office for Young Children will be engaged to conduct an employee needs analysis for child care at an approximate cost of $2,500. The committee supports management's involvement in taking an active role in soliciting information on available day care facilities and providing as much information to employees on the various options available in the community. Permission was also requested to investigate the feasibility of a consortium with other downtown employees. No commitments would be made on a consortium without further input from the Board. Following discussion, the consensus of the committee and the Commissioners present was that the BWL should not be involved in subsidization of, or direct payment for, dependent care. Respectfully submitted, E. Lane Jessop, Chairman Personnel Committee BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT That the Personnel Committee Report and Resolutions 88-11-14 and 88-11-15 be approved as submitted. Adopted unanimously. 148 November 22, 1988 November 22, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE SERVICES Res. No. 88-11-2 Authorize the sale of BWL Vehicle #118, 65' Hi-Ranger bucket truck, to the highest bidder, Kent Power Services, Sale of BWL Kent City, Michigan, for $36, 100 in accordance with prior Vehicle #118 Board approval on September 27, 1988. ratified -------------------- Other bidders were Allied Utility Equipment, Inc. ($28,052), Aerial Construction Co. ($25,665) , RMS Road Machinery & Supplies Co. ($25,261 ) , Auto Wholesalers ($23,775) , Opdyke, Inc. ($21 ,252) , K.A.B. Utility Equipment ($21 ,250) , Texoma Utility Equipment ($14,501 ) , and Carr & Duff, Inc. ($13,562) . -------------------- Res. No. 88-11-3 Authorize the sale of BWL Vehicle #122, 1977 Hendrickson Cab and Chassis, to the highest bidder, Jack Doheney Sale of BWL Supplies, Inc. , Northville, Michigan, for $10,000 in Vehicle #122 accordance with prior Board approval on September 27, 1988. ratified -------------------- Others bidders were Auto Wholesalers ($3,233) , Allied Utility Equipment, Inc. ($1 ,510) , and Opdyke, Inc. ($250) . This truck is not roadworthy due to a damaged engine and all bids were received on a "where is, as is" basis. -------------------- ivovemoer 22, Ny 8 149 COMMUNICATIONS & MARKETING Res. No. 88-11-4 It is recommended that Item 4 be added to Rule IV. H. of our Rules and Regulations for Electric Service to read as Electric Rules follows: amended by adding item to Rule IV.H 4. An apartment building or multiple dwelling designed (Waiver for con- for group care and congregate food preparation and gregate care consumption may be metered on a single meter and apartment buildings) billed at the appropriate General Service Rate. -------------------- Over the past 12 months, Commissioners have approved three waivers, all involving congregate care apartment buildings. In each case, the apartment building featured central kitchen and dining facilities, and utilities were to be included in the monthly rent. This policy was developed to allow single metering for future projects that meet these criteria. -------------------- Res. No. 88-11-5 Award contract to Synergic Resources Corp. (SRC) in the amount of $86,900 to conduct a Commercial/Industrial Contract to Synergic Customer Marketing Survey. The project will be spread over Resources Corp. to two (2) fiscal years--Phase I and Phase II. conduct a Ccmnercial/ Industrial Customer -------------------- Marketing Survey The other bidders were Market Opinion Research (566,850) and ADM ($70,260) . Proposals were evaluated in t3rms of qualifications, proposed methodolgy, services and costs expected from the BWL, schedule, deliverables, and price. The four most important criteria were judged to be qualif- ications, methodology, deliverables, and price, and were ranked independently on a 1 - 10 scale. Engineering Plan- ning concurs with the recommendation. Backup information is included for your review on this recommendation. -------------------- 150 November 22, 1W ENGINEERING PLANNING Res. No. 88-11-6 1 . Authorize $308,000 for purchase, delivery, instal- lation and training of Electric Transmission & Distri- Authorization to bution Planning software and computer equipment. This purchase: will replace existing programs which are obsolete and - Electric T & D not supported and to expand and enhance the capabil- planning softwqre ities of Distribution Planning. - WEMT and CADFAD softwgre 2. Issue a purchase order to Westinghouse Electric Corpor- - Digital MicroVAX II ation, Advanced Systems Technology, 777 Penn Center Computer with Blvd. , Pittsburgh, PA, in the amount of $180,900 to accessories and furnish, deliver and install WESTCAT and CADPAD soft- operating softwgre ware packages and provide training. - On-site training for Digital MicroVAX VM3 3. Issue a purchase order to Lex Computer Systems, 34115 operating system W. 12 Mile Road, Suite 100, Farmington Hills, MI, in the amount of $83,941 to furnish, deliver and place in operation Digital MicroVAX II computer complete with accessories and operating software. 4. Issue a purchase order to Devenir Corporation, 18977 West Ten Mile Road, Suite 200, Southfield, MI, in the amount of $7,750 to furnish three (3) weeks of on-site training for the Digital MicroVAX VMS operating system. -------------------- The purchase of software, hardware and training separately results in a savings compared to purchasing hardware, soft- ware and training together as one package. In addition to replacement of programs which are obsolete, the expected payback due to enhancements and added capa- bilities is projected to be between 2 and 8 years. The computer equipment would become the base system for Electric Planning. Existing software such as the Produc- tion Costing Program as well as future applications would be installed on this equipment instead of the mainframe. Other intangible benefits are increased productivity, quicker response time, improved communication and improved small area load forecasting. Enclosed are an executive summary and payback analyses for this project. -------------------- November 22, 1988 151 ENGINEERING PLANNING (Continued) Res. No. 88-11-7 Authorize the BWL to participate in Phase II of the ITI (Industrial Technology Institute, Ann Arbor)/EPRI (Electric Authorization to Power Research Institute) Electrotechnology Project cover- participate in Phase II ing a Cooperative Electrotechnology Applications Program of the ITI/EPRI (ETA) for Michigan Utilities and Manufactures and that Electrotechnology $25,000 be budgeted in Fiscal 1989-90 and 1990-91 ($50,000 Applications total) as BWL's contribution to the $1 ,100,000 budget for Pram the program. Other funding participants include EPRI - Battelle, EPRI Center for Material Fabrication, Michigan Public Service Commission, Detroit Edison and Consumers Power Company. -------------------- The purpose of the ETA program is to improve the energy efficiency and overall productivity of Michigan manufac- turing by speeding the adoption of advanced electro- technologies, especially in small to medium industries (50 to 499 employees). Enclosed is a listing of benefits which the BWL would receive from this project. -------------------- HUMAN RESOURCES Res. No. 88-11-8 That Mr. Noel T. Burkitt, operator D at Eckert Station, be awarded $215.00 for his suggestion ( 1989-3) of changing the Suggestion award to waste oil recirculating lines to improve oil warm-up and Noel Burki.tt circulation to all six boilers. The suggestion will add to the efficiency of the plant. -------------------- By using this suggestion, it is estimated the BWL will save $1 ,400 the first year. -------------------- Res. No. 88-11-9 That Mrs. Jaylene Vaughn, Clerk 2A for Customer Services, be awarded $447.80 for her suggestion ( 1989-33) of marking Suggestion award suspended accounts when paid which eliminates the need to to Jaylene Vaughn review every suspended account individually. The sugges- tion has been implemented and has added to the efficiency of the process. -------------------- By using this suggestion, it is estimated the BWL will save $3,728 the first year. -------------------- 152 November 22, 1988 INFORMATION SYSTEMS Res. No. 88-11-10 Award contract to UNISYS Corporation, Bluebelt, PA, in the amount of $949,926 for a 2200/402 Computer System and 9494 Contract to LZMS Disk Subsystem. Corp. for a 2-200/402 computer system and The computer and the disks are required to run the combined 9494 Disk Subsystem billing program presently under development, together with other existing programs, at an acceptable level of perfor- mance. These systems will replace the existing 1100/73 computer and associated disk subsystems. -------------------- Funds to cover the cost of the equipment are included in FY 1988-89 Capital Budget. UNISYS was the only company invited to bid. Their computer is the only system compatible with BWL software applica- tions and hardware devices. -- ----------------- Res- No. 88-11-11 Award contract to Peat, Marwick, Main & Co. of Detroit in the amount not to exceed $50,000 to perform Phase I of "A Contract to Peat, Quality Assurance Review of the Combined Billing System" Marwick, Main & Co. project. This review will be conducted in accordance with to perform Phase the terms and conditions of BWL's specifications dated I of a Quality October 7, 1988. The whole of the work for Phase I shall Assurance Review of be completed by January 11 , 1989. Combined BL l l i ng System -------------------- Funds to cover the cost of this work are included in the FY 1988-89 Capital Budget. Other bidders were Coopers & Lybrand ($53,900) , Arthur Anderson & Co. ($58,000) , Touche Ross ($60,000) , and Data- metrics Systems Corp. ($82,520) . Ernst and Whinney was invited to bid, but declined in order to act as a sub- contractor for Datametrics Systems Corp. -------------------- November 22, 1988 153 PENSION Res. No. 88-11-12 That Vernon J: Clark, Yard Foreman at Stores Department, be placed on a monthly disability pension of $659.39, with Disability Pension Workers' Compensation Offset, effective August 1 , 1988. He authorized for has selected Option II with the provision that after his Vernon Clark death, if his wife, Mary A. Clark, survives him, she will receive $329.70 per month for the rest of her life. Mr. Clark has worked for the BWL for 16.81 years and is 57 years of age. -------------------- Res. No. 88-11-13 That Frank W. Baron, Appliance Repairman Inside in the Appliance Repair Department, be placed on a monthly dis- Disability Pension ability pension of $738.43, with Workers' Compensation authorized for Offset, effective August 20, 1988. He has selected Option Frank Barron I with the provision that after his death, said amount of pension will continue to his wife, Faye Baron, if she survives him. Mr. Baron has worked for the BWL for 28.72 year and is 58 years of age. -------------------- Respectfully submitted, YJ Joseph Pandy, Jr. General Manager JP/bg Attachments 154 November 22, 1988 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-11-2 and RESOLVED, That Resolutions 88-11-2 and 88-11-3 88-11-3 approved (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-11-4 and RESOLVED, That Resolution 88-11-4 and 88-11-5 (Communications 88-11-5 approved and Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-11-6and RESOLVED, That Resolution 88-11-6 and 88-11-7 (Engineering 88-11-7 approved Planning) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER JESSOP-- SECONDED BY COMMISSIONER SEBOLT Res. 88-11� and 88-11-9 RESOLVED, That Resolution 88-11-8 and 88-11-9 (Human approved Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER SEBOLT Res. 88-11-10 and RESOLVED, That Resolution 88-11-10 and 88-11-11 (Information 88-11-11 approved Systems) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP Res. 88-11-12 and RESOLVED, That Resolution 88-11-12 and 88-11-13 (Pension) of 88-11-13 approved. the General Manager's Recommendations be approved. Adopted unanimously. November 22, 1988 155 GENERAL MANAGER'S REMARKS Gen. Mgr. cmmnents on General Manager Pandy spoke on Resolution 88-11-7 (Phase II ITI/EPRI Pha�qe II TH EFRI Electrotechnology Project) . He noted that as a participant in the Electrotechnoloty Electrotechnology Project Applications Program (ETA) , the BWL would Project select a manufacturing firm in Lansing to demonstrate electrotechnology in a small to medium manufacturing setting. The application of that technology would be worth approximately $40,000 to the firm selected. The BWL's Marketing division in addition to Engineering Planning will be looking for partners to offset part of the total $50,000 authorized covering Fiscal 1989-90 and 1990-91. The City of Lansing Economic Development Council has been approached to solicit their participation, and area target business are also being identified. Industrial electric General Manager Pandy reported that an analysis of BWL electric sales sales declining for the past year indicates that the industrial segment is still declining; all other segments have increased. Political issue of tax- General Manager Pandy reported that he will be attending a one-day exempt financing to be regional workshop entitled "Financing Our Future" to be held in discussed at a workshop Cleveland, Ohio, on November 29. Others attending are: Commissioners in Cleveland, Ohio Belen and Evans, City of Lansing Finance Director Stephen Duarte and 11-29-88 Councilmembers Belen, Blair and Creamer. Mr. Pandy emphasized that the issuance of tax-exempt bonds is an issue critical to the BWL and the City of Lansing, as well as other public power communities. City of Lansing General Manager Pandy briefed the Commissioners on an arrearage the debt City of Lansing has with the BWL. A major portion this from projects wherein the City is reimbursed through ffederal eor state funds. Because timely payments are not being received, staff plans to step up its collection efforts. Coal supply update General Manager Pandy updated the Commissioners on the coal supply status. He reported that due to drought conditions this past summer, railroad cars have been in heavy demand to offset barge traffic tied up on the Mississippi River. The BWL's coal inventory as of this date is down from 60 to 37 days, and is being monitored very closely. Staff is addressing this problem by temporarily curtailing economy sales, until such time that our coal inventory is back up to its normal stockpile level. The BWL's contractual sale to Consumers Power Co. (CPCO) continues with 110 MW currently being exported to CPCO. - Rescheduled Board General Manger Pandy noted that if there is no objection, the Meeting for December 27 Board meeting would be rescheduled for December 20. A December 20 Committee of the Whole meeting will immediately follow the rescheduled Board meeting to review staff presentation on 1988 strategic planning - Capital Project issues. He also noted that for the January 10, 1989 Committee of the reporting to be Whole meeting, staff plans to discuss status reporting of capital discussed at 1-2M9 projects (expenditures, completion of by Cmtm. of the Wh. projects, and budgeting) . 156 November 22, 1988 COMMISSIONERS' REMARKS Update on Downtown Commissioner Williams requested an update on downtown steam Steam Construction construction projects. Mr. Pandy briefed on the status of the new projects steam line to serve Capital Commons, the system maintenance improvement project at Allegan and Walnut Streets, and the steam reliability project at Ottawa and Walnut Streets. He noted that the steam reliability project has encountered some complications, due to unmarked underground obstructions, resulting in delays and higher than expected costs. Spartan Paper bank— In response to Commissioner Evans' inquiry, Mr. Pandy gave a brief ruptcy case reviewed update on the status of the Spartan Paper bankruptcy case. On motion of Commissioner Strolle, the Board a j ourned at 6:03 p.m. Mar Secretary Y Filed: November 23, 1988 t C r i //J Z C Rita M. Bauman, City Clerk C �i t 5 Ld �d t r N I N L I� F to 0o k 0o r 136 Cc-tober 25, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, October 25, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Strolle, Williams, and Hassler--8 Absent: None Quote The Secretary declared a quorum present. General Manager Pandy, Assistant General Manager Wolfe, Secretary Sova and Executive Staff members were present. (An attendance list is available from the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all present. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Approval of That minutes of regular session of September 27, 1988 be Minutes approved as mailed. Adopted unanimously. Public Camients CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. � . �� _ .. I r -i � , �l'i .. � , � �. October 25, 1988 137 October 25, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: HUMAN RESOURCES Res. No. 88-10-1 That Mr. Wayne L. Dennis, construction mechanic for Construction Services, be awarded $337.40 for his Suggestion Award suggestion ( 1987-21 ) of using hydraulic fingers attached to Wayne Denis to the 168 hydro-lift to remove utility poles from rail- road cars. The suggestion will reduce labor and greatly increase safety for this operation. -------------------- By using this suggestion, it is estimated the BWL will save $2,624.00 the first year. -------------------- Res. No. 88-10-2 That Mr. Albert M. Lopez, Jr. , equipment mechanic apprentice for Garage, be awarded $190.40 for his Suggestion Award to suggestion ( 1988-12) of purchasing a hose crimping kit so Albert M. Lopez, Jr. that Garage employees can make up hoses in-house. The suggestion will reduce costs of material, labor and truck time for many years. -------------------- By using this suggestion, it is estimated the BWL will save $1 , 154.00 the first year. -------------------- Res. No. 88-10-3 That Ms. Diane Mc9uay and Ms. Debra J. Kintigh, senior clerk-typists for Customer Services, be awarded $368.55 Suggestion Awards to each for their suggestion ( 1989-25) of changing a computer Diane McQuay and screen to reflect customer name when an account number is Debra Kintigh called up. The suggestion will reduce labor by 52 hours per month. -------------------- By using this suggestion, it is estimated the BWL will save $6,621 .00 the first year. -------------------- 138 October 25, 1988 MARKETING AND COMMUNICATIONS Res. No. 88-10-4 That Rule IV. H. 3 of the BWL Rules and Regulations for Electric Service (Sheet 4.02) be waived for the Vintage Rule IV. H.3 of Rules American Financial assisted care facility in Holt, Michi- and Regulations for gan, to allow for single electric metering for the 64-unit Electric Service congregate elderly apartment building. waived for the Vintage American Financial If the nature of the facility changes, metering require- assisted Care Facility ments may also change. If this happens, the developer for single electric would be required to notify the BWL as soon as practicable. metering in Congregate retirement facility -------------------- The Commissioners approved a similar request from the Delta Retirement Center on December 15, 1987. Such a waiver is consistent with MPSC waivers granted to investor owned utilities serving retirement centers. --------------------- STEAM Res. No. 88-10-5 That a contract be awarded to SFT, Inc. of Toledo, Ohio, in the amount not to exceed $45,000.00 to perform a Contract to SFT, Inc. District Cooling Feasibility Study. This Study will be to perform a District conducted per terms and conditions of the BWL's existing Cooling Feasibility contract for Continuing Services with SFT, Inc. Study Funds to conduct the study are included in the annual authorization for engineering studies. -------------------- SFT, Inc. was the lowest of three (3) bidders. The other bidders were Burns & McDonnell ($66,900) and Burns & Roe ($90,000) . -------------------- WATER Res. No. 88-10-6 That the Board agree to serve water to proposed Water District No. 52 Delhi Township, as requested by resolution Delhi Township, Water of the Delhi Charter Township Board on October 4, 1988 and District 52 - Dutch that in accordance with the agreement between the Board and Meadows II Sub- the Charter Township of Delhi dated August 15, 1972, division Lots 19-30 covering the furnishing of a potable water supplying Delhi Township, the Board advise officials of Delhi Township as follows: October 25, 1988 139 WATER (Continued) (Res. No. 88-10-6) I . The Board will accept Water District No. 52 estab- lished by Township resolution on October 4, 1988 and will provide a potable water supply to said district. 2. The Township will be required to make a $15,972.00 non-refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LII) covering the furnishing of a potable water supply in Water District No. 52. 4. Water mains are to be installed in accordance with the current BWL's Rules and Regulations for Water Service. Further, that upon receipt of the sum of $15,972.00 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the aforementioned agreement (Supplement LII) to furnish a potable water supply in Water District No. 52. The geographical area of Water District No. 52 is as follows: Dutch Meadows II Subdivision Lots 19-30 To provide a potable water supply with the proposed new district requires the installation of 825 feet of water main at the estimated cost of $14,432.00 and one (1 ) hydrant at a cost of $1 ,540.00. The main extension will serve twelve (12) residential customers. One time connection fees will amount to $4,788.00. Estimated annual revenue is $2,340.00. -------------------- Water mains to be installed in the Fall of 1988 following the receipt of the Township's non-refundable contribution- in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, � �E_cLL Lt�( Joseph Pandy, Jrl �r General Manager JP/bg 140 October 25, 1988 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER McCOMB Res. 88-10-1 thru RESOLVED, That Resolutions 88-10-1, 88-10-2, and 88-10-3 88-10-3 approved (Human Resources) of the General Managers Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-10-4 approved RESOLVED, That Resolution 88-10-4 (Communications and Marketing) of the General Manager's Recommendations be approved. Adopted unanimously. Waiver on Electric General Manager Pandy reported that a letter, dated October 15, 1988, Rule IV H.3 requested was received from Lloyd Ganton, President, Ganton Retirement Centers of for proposed Edgewood Spring Arbor, Michigan, requesting single electric metering for a Living Center. planned 68-unit congregate care facility located at 200 Edgewood Boulevard in the City of Lansing. Mr. Pandy requested that the same waiver as in Resolution 88-10-4 be similarly applied to the Edgewood Living Center. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER SEBOLT That the following resolution be added as an addendum to the General Manager's Recommendations under Marketing and Communications for approval: Resolution 88-10-7 ....................._.............................................._........... Res. 88-10-7 RESOLVED, That IV. H. 3 of the BWL Rules and Regulations for Rule IV. H.3 of Rules Electric Service (Sheet 4.02) be waived for the Edgewood and Regulations for Living Center in Lansing, Michigan, to allow for single Electric Service waived electric metering for the 68-unit congregate elderly fpr Edgewood Living Center apartment building. for single electric metering in congregate Adopted unanimously. retirement facility. Commissioner Belen suggested drafting a proposed policy for Board Policy to be drafted consideration that would authorize staff to waive Rule IV. H. 3 of the addressing Rule IV H.3 BWL Electric Rules and Regulations for serving retirement centers. (Electric) for congregate This policy would eliminate staff having to submit similar retirement facilities recommendations to the Board each time. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-10-7 adopted RESOLVED, That Resolution 88-10-5 (Steam) of the General Manager's Recommendations be approved. Adopted unanimously. October 25, 198B 141 BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER JESSOP Res. 88-10-6 approved RESOLVED, That Resolution 88-10-6 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS Report on HCA and General Manager Pandy reported that Assistant General Manager Joe Wolfe MPPA M�tinBs and Consumer Services Director Neal Housler recently accompanied him to meetings of the Michigan Municipal Electric Association (MMEA) and Michigan Public Power Agency (MPPA) held in Charlevoix. The MMEA conference was an overall success. Status of MPPA Mr. Pandy further reported that MPPA is continuing to work on the Power Coordinated Pool Resources Study, however, the timeline for receiving definite Coundtments commitments from potential Coordinated Pool members has been extended approximately six weeks. A special meeting of the Power Resources Study Committee is scheduled for October 31 in Grand Rapids to discuss problems associated with the redispatch requirements. Four out of twelve cities have already passed resolutions approving the Coordinated Pool Power Supply and Capacity Purchase Agreement--they are: Lansing, Traverse City, and Zeeland. Grand Haven's approval is contingent upon adoption of a resolution from their City Council. Fxport sale to General Manager Pandy reported that Electric Utility Director Roy Michigan South Peffley and BESOC Systems Operations Superintendent Doug Barnard have Central Power Agency secured a sale with the Michigan South Central Power Agency in Litchfield for seven days, 20 MW, at 100% load factor starting October 22, 1988. BWL earns Gold General Manager Pandy reported that 011ie Kingsbury and Steve Simpson Award for successful co-chaired the 1988 United Way Campaign for the BWL. Dollars pledged United Way Campaign by BWL employees totalled $104,102, representing a per capita gift of $111 based on 87.3% employee participation, which qualified the BWL for the Gold Award for the second year in a row. Messrs. Kingsbury and Simpson were congratulated for their fine efforts. Report on Share General Manager Pandy handed out a copy of the October issue of the the Success activity SHARE THE SUCCESS (STS) UPDATE highlighting September's STS performance, showing an increase of 23 points over the previous month. The September point total now stands at 303. Mr. Pandy also referred to the October, 1988 BWL Customer Newsletter, which included a feature on the STS program; and he noted that the LANSING STATE JOURNAL editor did not consider the STS program a controversial issue for the Opinion section of the newspaper, but may consider a future article on it in their Business section. Child-'are issue to be General Manager Pandy reported that child care is an issue receiving discussed by wide attention in the electronic news media. He suggested that this Pe•soane- Camdttee topic be placed on the agenda for the next Personnel Committee meeting for discussion. The Commissioners concurred. 142 October 25, 1988 1988-89 Business The Commissioners received a copy of the BWL BUSINESS PLAN for 1988-89. Plan distributed Mr. Pandy reviewed the high points of the plan relative to organiza- tional goals and objectives. General Manager delivers General Manager Pandy gave a slide presentation on the highlights of slide presentation of his one-week tour of Swedish energy facilities arranged by the Swedish advanced energy Trade Council. Following a question and answer period, Mr. Pandy technology tour in thanked the Commissioners for authorizing him to participate in the Sweden advanced energy technology tour. He stated that many topics included in his tour will benefit the BWL. Adjournment On motion of Commissioner Strolle, the Board adjourned at 6:55 p.m. Arm Mary Sova, Secretary Filed: October 27, 1988 00 00 rn Rita M. Bauman, City Clerk L N a w w O N U O September 27, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, September 27, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Chairman Hassler. Roll Call Present: Commissioners Belen, Evans, Jessop, Sebolt, Strolle, Williams, and Hassler--7 Absent: Commissioner McComb--1 Quorum The Secretary declared a quorum present. Assistant General Planager Wolfe, Secretary Sova and Executive Staff members were present. (An attendance list is available from the Secretary's Office.) Invocation The Invocation was given by Chairman Hassler. Pledge The Pledge of Allegiance was said by all present. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS Approval of That minutes of rescheduled regular session of August 30, 1988 Minutes be approved as mailed. Adopted unanimously. Public Comments CHAIRMAN HASSLER ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSI0NERS REGARDING ANY ITEM ON THE AGENDA. AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. No persons spoke. Committee of the COMMITTEE OF THE WHOLE REPORT Whole Report RE: - MPPA Combined Board of Commissione-rs September 27, 1988 Dispatch Project Board of 'dater and Light - Combined Billing Lansing, Michigan Status and Computer Capacity Utilization Dear Ladies and Gentlemen: Report - Chloramination The Committee of the Whole reports it met on Monday, September 12, 1988 Pilot Study with the General Manager and staff to receive a briefing on the following items: 1. Michigan Public Power Agency (MPPA) Combined Dispatch Project. 2. Combined Billing Status and Computer Capacity Utilization Report. 3. Chloramination Pilot Study. September 27, 1988 121 Present were Commissioners Williams (Chair Pro Tem) , Belen, Evans, Hassler, Jessop, McComb, and Strolle. Absent was Commissioner Sebolt. MPP. ------........._.................._................_............_.._.. The Commissioners heard a presentation on the following MPPA activities: . An update on the Combined Dispatch (pooling) Project was presented by Dick Gorman, General Manager of MPPA. . The economics of the coordinated pooling project was presented by Doug Wood. . The monitoring and dispatching activities were presented by Bill Cook of the Brush Electric System Operating Center (BESOC) . . A review of the provisions of the proposed Coordinated Pool and Wholesale Group Power Supply and Capacity Purchase Agreements was presented by Assistant General Manager Joe Wolfe. Following review and discussion, the following motion was approved for Board Consideration: Resolution 88-9-1 Resolution 88-9-1 RE: _.........................,._....-........................ RESOLVED, The Committee of the Who.. ..le.. re.. ..commends that attached Coordinated Pool Power Resolution 88-9-1, approving the Coordinated Pool Power Supply Supply and Capacity and Capacity Purchase Agreement with the MPPA, be adopted as Purchase Agreament with submitted. (See Page 123.) MPPA. COMBINED BILLING STATUS AND COMPUTER CAPACITY UTILIZATION REPORT An update on the current status of the "system 'design documentation and testing of the Combined Billing System was presented by Information Systems Director 011ie Kingsbury. Due to difficulties encountered during the design and development of the new Combined Billing System, the January 1, 1989 completion timeline has been changed to a new tentative implementation date of July 1, 1989. Internal Auditor Kellie Willson reported on the significance of user acceptance testing for Combined Billing. This includes compiling documentation for testing, training and maintenance. The assistance of a consultant was recommended to advise BWL during the user acceptance testing and training phase. Staff will be submitting a recommendation to engage a qualified consultant at the October 25 regular meeting. The findings of the Computer Performance Evaluation and Capacity Planning Study, conducted by Datametrics Systems Corporation, were presented by Dr. John Peterson--a consultant from Datametrics. The capacity and efficiency of the current computer system were reviewed and future issues in the areas of local area networks (LAN's) , workload forecasts and equipment needs were discussed as well. Engineering Director John Elashkar presented alternatives for computer equipment to address the Datametrics study recommendations. Staff will be submitting a recommendation for the purchase of a new 2200/402 system with a 9494 Disk Subsystem. Further, evaluation will continue to determine BWL needs for local area networks (LAN's) , and the results will be presented to the Commissioners upon completion. 122 September 27, 1988 Chloramdnation Pilot CHLORAISINATION PILOT STUDY Study Summery Report Chemist Bill Maier pre I.sented a summary presentation on alternatives for reducing taste and odor complaints which occur mainly in the summer on the southerly portion of the BWL system. Following review and discussion, the following resolution was approved for consideration by the Board of Commissioners: Resolution 88-9-2 RESOLVED, That staff be authorized to add ammonia to the treated water for the purpose of increasing chloramine residual from the Wise Conditioning Plant. This will be a pilot project to be tested for four months to identify the costs and operating parameters for establishing substantial chloramine residuals in outlying areas. Respectfully submitted, /s/ Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER EVANS That the Committee of the Whole Report be received as submitted. Adopted unanimously. BY COMMISSIONER HASSLER-- SECONDED BY COMMISSIONER JESSOP Res. 88-9-1 That Resolution 88-9-1 regarding the Coordinated Pool Power RE: Coordinated Pool Supply and Capacity Purchase Agreement with the Michigan Power Supply and Public Power Agency be approved as submitted. Capacity Purchase Agreement approved. Adopted by the following vote: Yeas: Commissioners Belen, Evans, Jessop, Sebolt, Strolle, Williams and Hassler -7. Nays: None Absent: Commissioner McComb -1 BY COMMISSIONER JESSOP-- ' SECONDED BY COMMISSIONER BELEN Res. 88-9-2 That Resolution 88-9-2 regarding the chloramination pilot RE: Chloraadnation study be approved as submitted. Pilot Study Approved. Adopted unanimously. Resolution No. 88-9-1 RESOLUTION APPROVING COORDINATED POOL POWER SUPPLY AND CAPACITY PURCHASE AGREEMENT WHEREAS, a form of Coordinated Pool Power Supply and Capacity Purchase Agreement (the "Coordinated Pool Agreement") with the Michigan Public Power Agency (MPPA) has been submitted to the Board of Water and Light of the City of Lansing (the "Board") for review and discussion; and, WHEREAS, the Board desires to approve the Coordinated Pool Agreement and authorize execution of the Coordinated Pool Agreement on behalf of the Board and to specify its Dedicated Generating Facilities and Excluded Power Supply Resources for purposes of the Coordinated Pool Agreement. NOW THEREFORE IT IS HEREBY RESOLVED BY THE BOARD OF WATER AND LIGHT OF THE CITY OF LANSING as follows: 1 . The form of Coordinated Pool Agreement submitted to the Board on this date is hereby approved and the General Manager and the Secretary are hereby authorized and directed to execute and deliver the Coordinated Pool Agreement on behalf of the Board in substantially the same form but allowing for such changes as may be approved by the General Manager and the staff attorney; provided, however, the execution of the Coordinated Pool Agreement shall be conditioned upon the following occurrences: a. MPPA and Consumers Power Company entering into a written agreement governing the transmission of energy and capacity in connection with the Coordinated Pool Agreement resulting in transmission charges not greater than the transmission charges assumed by R. W. Beck & Associates in its studies for the Power Resources Study Committee--Phase II of MPPA; and, b. The Board and MPPA entering into a written agreement governing the use of Board facilities for dispatch of power and energy in connection with the Coordinated Pool Agreement; and, C. The determination of the General Manager that the commitment and makeup of the Project Participants is such that entering into the Coordinated Pool Agreement is in the best financial interest of the Board; and, d. The approval for form of the Coordinated Pool Agreement and opinion of the staff attorney that the Board has the requisite authority to enter and carry out the terms of the Coordinated Pool Agreement; that the Coordinated Pool Agreement is a valid and binding obligation of the Board; and that the Coordinated Pool Agreement is not in conflict with any existing bond resolutions or power supply agreements between the Board and third parties. The execution and delivery of the Coordinated Pool Agreement by the General Manager shall be conclusive evidence of the approval of such changes by the General Manager and of satisfaction of the conditions in this resolution as listed above. 124 September 27, 1988 2. The Board hereby designates the following as Dedicated Generating Facilities to be included on Exhibit C of the Coordinated Pool Agreement: Erickson #1 Eckert #1 Eckert #2 Eckert #3 Eckert #4 Eckert #5 Eckert #6 Ottawa #1 Until 12-31-92 Ottawa #2 Until 12-31-92 Ottawa #3 Until 12-31-92 Belle River #1 & #2 Entitlements 3. The Board hereby designates the following as Excluded Power Supply Resources to be included on Exhibit D of the Coordinated Pool Agreement: Ottawa #1 Beginning 1-1-93 Ottawa #2 Beginning 1-1-93 Ottawa #3 Beginning 1-1-93. 4. The Secretary shall indicate the approval of this Board on the form of Coordinated Pool Agreement submitted to this Board and file the approved form of Coordinated Pool Agreement with the minutes of the meeting at which this resolution is adopted. September 27, 1988 125 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: ADMINISTRATIVE Res. No. 88-9-3 That the BWL enter into Amendment No. 1 of the Coal Sales Agreement dated January 3, 1986 with Coastal Coal Sales.Inc. Approval of Amendment No. 1 of the Coal Terms of the Amendment are as follows: Sales Agreement, dated 1-3-86 with Current Coastal Sales, Inc. Amendment No. 1 Contract 1. Effective Date 10-1-88 1-1-86 2. FOB Mine Price $31. 15/ton $39. 13/ton 3. Annual Tonnage 450,000 250,000 4. Term 12-31-94 12-31-92 5. 1-1-90 Price Reopener +/- 2% +/- 10% 6. 1-1-93 Price Reopener Market Price ---- Expected savings to BWL from 10-1-88 to 12-31-92 is $1 ,283,000 with net present value of savings of $897,000. -------------------- A memo from Joe Wolfe with an attached economic analysis of coal costs is enclosed. --------------------- ADMINISTRATIVE SERVICES Res. No. 88-9-4 That the following ten ( 10) Board-owned vehicles and equipment, which have been replaced, be sold at the State of Michigan BWL vehicles and monthly vehicle auction, or the City of Lansing Public Auction, equigmnt to be or through competitive bids. sold at State of Michigan, or City of Lansing Public Auction or competitive bids. 126 September 27, 1988 ADMINISTRATIVE SERVICES (Continued) BWL # Description (Res. No. 88-9-4) 5 1979 GMC Model TC20903, 6,400# GVW cab and chassis with Powers SM-15 body (odometer reading approx. 48,461 miles); Steam Distribution Dept. 17 1976 Dodge Model D-700, 25,500# GVW cab and chassis with Galion 400-U dump (odometer reading approx. 38,110 miles); Construction Services Department. 24 1981 Chevrolet Model CG11005, 5,600# GVW van (odometer reading approx. 79,674 miles); Water Distribution Department. 68 1982 Chevrolet Model CG11005, 5,600# GVW van (odometer reading approx. 84,210 miles); Water Distribution Department. 71 1981 GMC Model TC31003, 9,000# GVW cab and chassis with McCabe-Powers body (odometer reading approx. 35,861 miles); Electric Maintenance & Metering Department. 134 1979 Dodge Model B-100, 5,400# GVW van (odometer reading approx. 69,032 miles); Water Distribution Department. This vehicle will be sold for salvage. 314 1981 Oldsmobile Cutlass Station Wagon (odometer reading approx. 67,766 miles); Electric Maintenance Metering Dept. 321 1980 Plymouth Station Wagon (odometer reading approx. 78,122 miles); Erickson Station. 118 1976 GMC Model CE67003, 26,000# GVW cab and chassis with 65' Hi-Ranger aerial tower (odometer reading approx. 43,077 miles); Line Construction Department. 122 1977 Hendrickson Model H344C135, 60,000# GVW cab and chassis with vacuum system (odometer reading approx. 131 ,702 miles; Construction Services Dept. (Vehicle is inoperable) -------------------- September 27, 1%8 127 ADMINISTRATIVE SERVICES (Continued) Res. No. 88-9-5 Award three year contract to Schindler Elevator Corp. , Lansing, Michigan, in the amount of $145,379.16 to cover maintenance on Three-year contract elevators at the following locations: to Schindler Elevator Corporation approved. Main Office Building Eckert Station Water & Steam Distribution Ottawa Station Fuels Procurement Erickson Station The contract to cover the period from October 1, 1988 to September 30, 1991. -------------------- The other bidder was Otis Elevator Company. Otis Elevator elected to bid only on elevators of their manufacture and the odd brands at Fuels Procurement and the Erickson Stack. Schindler was the low bidder on all elevator brands. Westinghouse was invited to bid but declined. -------------------- Res. No. 88-9-6 Authorize purchase of engineering and inspection services from DiBenedetto Associates, Inc. , Ann Arbor, MI, in the amount of Engineering Inspection $18,500.00 for evaluation of the Eckert Station Units #4, 5 and Services from 6 main steam lines. DiBenedetto Associates authorized for inspec- -------------------- tion of Eckert Units 4, 5 and 6 main steam DiBenedetto Associates was the lowest of three bidders. They lines, also have experience with NDE at Erickson Station. -------------------- Res. No. 88-9-7 Award one year contract to Data General Corporation, Milford, Maine, in the amount of $32, 112.00 to cover maintenance on the Contract with Data Data General Corporation EMS S250 computer hardware at BESOC, General Corporation with a four year contract option. The contract starts with authorized to cover the first year cost of $32, 112.00 with 5% per year reductions maintenance on EMS in the yearly price in both the second and third years, and S250 computer hard- limits of 0-50 on any possible increases in both the fourth ware at BF50C. and fifth years, when the system is scheduled for replacement. -------------------- Data General Corporation is the original equipment manufacturer and has maintained the equipment since its installation in 1981 . This is a sole source purchase. -------------------- 128 Septwber 27, 1W HUMAN RESOURCES Res. No. 88-9-8 That Mr. Douglas D. Spaulding, Maintenance Supervisor for Production Maintenance, be awarded $885.40 for his suggestion Suggestion award to (1987-79) of installing adjustable rods on the spilling plate of Douglas Spaulding the boiler stokers. The idea has been implemented and aids both the operators and mechanics in setting the stoker for maximum efficiency and also allows quick adjustments when running wet, large or fine coal. -------------------- By using this suggestion, it is estimated the BWL will save $8, 104.00 the first year. -------------------- Res. No. 88-9-9 That Mr. David P. Nico, Shift Supervisor at Ottawa Station, be awarded $2,962.37 for his suggestion ( 1988-91 ) of shutting down Suggestion Award to equipment at Ottawa Station for particular hours. The David Nico suggestion allows cost savings to the BWL in reduced power consumption and is being implemented at the present time. -------------------- By using this suggestion, it is estimated the BWL will save $28,873.65 the first year. -------------------- Res. No. 88-9-10 That Mr. Dale H. Foote, Water Station Relief Operator at Water Production, be awarded $348.00 for his suggestion ( 1986-74) of Suggestion Award to using the multi-use (one system) for cleaning basins at the Idle Foote water conditioning plants. The suggestion has been utilized and has resulted in a reduction in manpower needed to clean basins at both the Dye Water Conditioning plant and Wise Road. -------------------- By using this suggesting, it is estimated the BWL will save $2,730.00 the first year. -------------------- PENSION Res. No. 68-9-11 That James P. Biggin, Mechanic A in Steam Service and Distri- bution, be placed on a monthly disability pension of $963.79 Suggestion Award to effective September 1 , 1988. He has selected Option II with James Biggin the provision that after his death, if his wife, Sandra K. Biggin, survives him, she will receive $481 .90 per month for the rest of her life. Mr. Biggin has worked for the BWL for 26.24 years and is 50 years of age. -------------------- September 27, 1W 129 STEAM Res. No. 88-9-12 That revisions and additions to the BWL's Rules and Regulations for Steam Service be approved effective September 27, 1988. Changes to Rules and The revisions and additions include: Regulations for Steam Service, Sheets 6.02, 1 . Revision of Section 3, Cost of Service Installation, 6.03 Sheet 6.02. 2. Addition of Section 4, Service Agreement, Sheet 6.03. 3. Addition of Section 5, Reconciliation, Sheet 6.03. 4. Renumber Present Sheet 6.03 and Appropriate Sections. -------------------- Revision of Section 3, Cost of Service Installation, reduces the high up-front cost of steam service and places us in a competitive market position. Requiring an extended service agreement assures that the BWL's own capital investment is recouped and ultimately benefits all customers by the acquired ability to spread fixed costs over a larger customer base. The proposed Rules and Regulations (Sheets 6.02, 6.03 and 6.04 are attached. Proposed changes are in ALL CAPS) . -------------------- TREASURER/CONTROLLER Res. No. 88-9-13 Purchase the following insurance coverage for the one year period from September 30, 1988 to September 30, 1989, as the Authorization to pur- best evaluated of all the bids received: chase Property, General Liability, Business From Lansing Insurance Agency Representing: Auto Insurance, Inland Marine and other Per- Nat'l Union Fire Ins.- $5 million Gen'l Liability $ 427,324 sonal Property Insur- - 5 million Excess Liability 124,221 ante, Electronic Data Lexington Ins. Co. - 5 million Excess Liability 61 ,200 Processing and Excess Ins. Co. of America- $200 million Property Losses 344,602 Liability Insurance New Hampshire Ins. Co.- 5 million Bus. Auto Liab. 72,345 Contractors Equip. 93880 From Hall & Kennedy Inc. Representing: Hartford Fire Ins. Co. Crime & Faithful Perf. 2,984 Total Premium: $1 ,042,556 -------------------- 130 September 27, 1W TREASURER/CONTROLLER (Continued) (Res. No. 88-9-13) Other bidders were Lyman and Sheets representing United States Fidelity and Guaranty Co. (USF&G) with a package policy at a $1 ,279,221 premium; Lansing Insurance Agency representing New Hampshire Insurance Co. with rolling stock, computer and air monitoring coverage; Dave Chapman Agency representing St. Paul Fire and Marine and Royal Insurance Co. for various coverages; and, Wausau Insurance Co. for crime and faithful performance coverage. The BWL's expiring insurance is with the Lyman and Sheets Agency representing USF&G Co. with an annual premium of $1 , 176.220. -------------------- WATER Res. No. 88-9-14 That the Board agree to serve water to proposed Water District No. 50, Delhi Township, as requested by resolution of the Delhi Delhi Township, Water Charter Township Board on July 12, 1988, and that in accordance District 50 - Ivywood with the agreement between the Board and the Charter Township of Subdivision, Phase I Delhi dated August 15, 1972, covering the furnishing of a potable water supply to Delhi Township, the Board advise officials of Delhi Township as follows: 1 . The Board will accept Water District No. 50 established by Township resolution on July 12, 1988, and will provide a potable water supply to said district. 2. The Township will be required to make a $55,792.00 non- refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement L) covering the furnishing of a potable water supply in Water District No. 50. 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $55,792.00 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the afore- mentioned agreement (Supplement L) to furnish a potable water supply in Water District No. 50. The geographical area of Water District No. 50 is as follows: Ivywood Subdivision Phase I September 27, 1988 131 WATER (Continued) (Res. No. 88-9-14) To provide a potable water supply within the proposed new district requires the installation of 2,820 feet of water main at the estimated cost of $49,632.00, and four (4) hydrants at a cost of $6, 160.00. The main extension will serve forty-three (43) residential customers now under construction. One-time connection fees and meter-set charges will amount to $17, 157.00. Estimated annual revenue is $8,385.00. Water mains to be installed in the fall of 1988 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Res. No. 88-9-15 That the Board agree to serve water to proposed Water District No. 51 , Delhi Township, as requested by Delhi Charter Township Delhi Township Water on August 3, 1988, and that in accordance with the agreement District 51 - along between the Board and the Charter Township of Delhi dated 9-% fran southerly August 15, 1972, covering the furnishing of a potable water end of Water Dis- supply to Delhi Township, the Board advises officials of Delhi trict 49. Township as follows: 1. The Board will accept Water District No. 51 requested by the Township on August 3, 1988, and will provide a potable water supply to said district. 2. The Township will be required to make a $59,514.00 non- refundable contribution-in-aid of construction to cover the charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. 3. The Board and the Township are to enter into a written agreement (Supplement LI) covering the furnishing of a potable water supply in Water District No. 51 . 4. Water mains are to be installed in accordance with the current Board's Rules and Regulations for water service. Further, that upon receipt of the sum of $59,514.40 from the Township, the project be approved for installation, and the General Manager and Secretary be authorized to sign the afore- mentioned (Supplement LI) to furnish a potable water supply in Water District No. 51 . 132 September 27, 1988 WATER (continued) (Res. No. 88-9-15) The geographical area of Water District No_ 51 is as follows: Along M-99 (Eaton Rapids Road) from the southerly end of Water District No. 49 to the easterly botmdary of Waverly Road. To provide a potable water supply within the proposed new district requires the installation of 2,560 feet of water main at the estimated cost of $51 ,814.40, and five (5) hydrants at a cost of $7,700.00. Water mains to be installed in the Fall of 1988 following the receipt of the Township's non-refundable contribution-in-aid of construction and the signing of the agreement. -------------------- Respectfully submitted, Joseph Pandy,�jr. General Manager JP/bg Septenber 27, 1988 133 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER EVANS Res. 88-9-3 RESOLVED, That Resolution 88-9-3 (Administrative) of the Approved General Manager's Recommendations be approved. Adopted by the following vote: Yeas: Commissioners Belen, Evans, Jessop, Sebolt, Strolle, Williams, and Hassler -7 Nays: None Absent: Commissioner McComb -1 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER SEBOLT Res. 88-9-4 thru RESOLVED, That Resolutions 88-9-4 through 88-9-7 88-9-7 approved (Administrative Services) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER JESSOP Res. 88-9-8 thru RESOLVED, That Resolutions 88-9-8 through 88-9-10 (Human 88-9-10 approved Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP Res. 88-9-11 RESOLVED, That Resolution 88-9-11 (Pension) of the General approved Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER JESSOP Res. 88-9-12 RESOLVED, That Resolution 88-9-12 (Steam) of the General approved Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-9-13 RESOLVED, That Resolution 88-9-13 (Treasurer/Controller) of approved the General Manager's Recommendations be approved. Adopted unanimously. 134 September 27, 1988 BY COMMISSIONER SEBOLT-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-9-14 and RESOLVED, That Resolutions 88-9-14 and 88-9-15 (Water) of the 88-9-15 approved General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS Discussion re: Assistant General Manager Wolfe referred to the following informational Steam Utility's Hot items handed out: (1) August Financial Statement, (2) August Share the and Chilled Water Success Report, and (3) Brief Overview of Steam Utility's Hot and Options Assessment Chilled Water Options Assessment. Mr. Wolfe stated that staff will be submitting a recommendation at the October regular meeting to have an outside consultant conduct an economic feasibility analysis of a District Cooling System. A Hot Water Feasibility Study will be conducted at a later date. Report on newAS(J Mr. Wolfe reported that each September, large volumes of service Satellite Office for applications are processed for new and returning MSU students. He processing service reported that a very successful program has been recently implemented applications by the BWL Consumer Services Division involving the setting up of a temporary Customer Assistance office at the MSU Union. Over 1,000 customers, who would otherwise have visited the Main BWL Office Building to apply for service, have been served during the period covering September 13-23. Discussions are being held with Michigan Bell Telephone for a joint effort in serving MSU students next term. Mr. Wolfe noted that this successful effort exemplifies the BWL's commitment to the "customer focus" philosophy. General manager in Mr. Wolfe reported that General Manager Pandy will be back in the Sweden office, from his Sweden study tour, on October 10. STATE XURNAL Point The Commissioners received a copy of a proposed statement on the BWL's of View column RE: Share the Success Program for the LANSING STATE JOURNAL Point of View Share the Success column. COMMISSIONERS' REMARKS BWL receives APPA The Commissioners commended Public Information Director John Strickler Second Place Award for receiving the APPA's Award of Merit (Category C) for the 1987 for 1987 Annual Report Annual Report. September 27, 1988 135 BY COMMISSIONER SEBOLT SECONDED BY COMMISSIONER WILLIAMS Excused Absence That the absence of Commissioner McComb be excused. Adopted unanimously. Adjournment On motion of Commissioner Strolle, the Board adjourned at 5:53 p.m. . Mary E. ova, Secretary Filed: September 29, 1988 Rita M. Bauman, City Clerk c, C/) y } Cn i cn w " w C-, -o r S � m 886T ' LZ 'SdHS ,T,H9T'T 14 N'J,TVM AC) (T?THC)g 1f August 30, 1988 Office, Board of Water and Light Lansing, Michigan Tuesday, August 30, 1988 The Board of Commissioners met in regular session at 5:30 p.m. and the meeting was called to order by Vice Chair Sebolt. Roll Call Present: Commissioners Belen, Evans, Jessop, McComb, Sebolt, Strolle, Williams, and Hassler--8 Absent: None Quorum The Secretary declared a quorum present. General Manager Pandy and Executive Staff were present. (An attendance list is available from the Secretary's Office.) NOTICE -RESCHEDULED REGULAR MEETING Notice of Re- The Regular Meeting of the Board of Water and Light Commissioners of the scheduled Meeting City of Lansing, Michigan, originally scheduled for Tuesday, August 23, 1988, at 5:30 p.m. , in the Board Room on the Second Floor of the Board of Water and Light Building, 123 West Ottawa Street, Lansing, Michigan, has been rescheduled for Tuesday, August 30, 1988 at 5:30 p.m. in the aforesaid room. Posted: August 17, 1988 Certified by: BOARD OF WATER AND LIGHT Mary E. Sova, Secretary Telephone 371-6033 Invocation The Invocation was given by Vice Chair Sebolt. Pledge The Pledge of Allegiance was said by all present. BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER BELEN Approval of Minutes That minutes of regular session of July 26, 1988 be ap proved as mailed. Adopted unanimously. Public Cannents VICE CHAIR SEBOLT ANNOUNCED THAT MEMBERS OF THE PUBLIC WILL BE AFFORDED THE OPPORTUNITY TO ADDRESS THE COMMISSIONERS REGARDING ANY ITEM ON THE AGENDA AT THE TIME SUCH ITEM IS OPEN FOR DISCUSSION BY THE COMMISSIONERS. ANYONE WISHING TO COMMENT ON ANY MATTER NOT ON THE AGENDA MAY DO SO AT THIS TIME OR IMMEDIATELY PRIOR TO ADJOURNMENT. John Ouderkirk Former Board of Water and Light employee, John Ouderkirk, appeared addresses the Board before the Board to clarify the reason he declined to comment when invited to speak by the Commissioners at the April 26, 1988 regular meeting. He also announced that he wants all departments to know he is interested in re-employment at the BWL. �t ., I I 110 August 30, 1988 Resolution 88-8-2 Discretionary Fund for the General Manager That a discretionary fund in the amount of $6,000 be established for the General Manager for business functions. The use and accounting of the discretionary fund is to be reviewed annually in accordance with generally accepted accounting principles. Further, that Resolution No. 87-8-7, which is the amount of the discretionary fund established last year be, and is, hereby rescinded. BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS That the Personnel Committee Report, including Resolutions 88-8-1 and 88-8-2, be adopted as presented. Adopted unanimously. August 30, 1988 109 PERSONNEL COMMITTEE REPORT Personnel Camdttee Board of Water and Light August 30, 1988 Report Re: Lansing, Michigan a) Performance appraisals for The Personnel Committee reports it met on Tuesday, August 16, 1988 to three positions review the following: reporting to the Board. 1. Performance appraisals completed by the Commissioners on b) Discretionary the accomplishments of Fiscal 1988 goals and objectives Fund for the of the General Manager; General Manager 2. Performance evaluations completed by the General Manager on the accomplishments of Fiscal 1988 goals and objectives of the Internal Auditor and Secretary of the Board; and 3. Quarterly pension investments. The Committee's recommendation with respect to the Pension Fund is being submitted to the Pension Fund Trustees for consideration. Present were Commissioners McComb, Williams (alternate) , and Jessop (Chair) . Absent was Committee Member Sebolt. After review and discussion, the committee adopted the following resolutions and recommends Board approval: Resolution 88-8-1 Performance Appraisals for the Three Positions Rep. ......_........9_...t_......._... . rd of Commissioners ortin to the.....__Boa.................................................................................. That the performance evaluations and salary increases for the three positions reporting directly to the Board of Commissioners be administered by the Commissioners according to the Board of Water and Light Wage and Salary Plan for Non- Bargaining Unit Administrative employees. The Committee reports that all three positions were rated by the individual Commissioners and are eligible to receive salary increases, effective as of July 1, 1988, according to the Fiscal 1988-89 Performance Increase Matrix as follows: Director and General Manager - Outstanding Internal Auditor - Outstanding Secretary of the Board - Outstanding lit August 30, 1W August 30, 1988 Recommendations Board of Water and Light of Director and Lansing, Michigan General Manager Dear Ladies and Gentlemen: The following items are recommended for your approval: FINANCIAL PLANNING Res. No. 88-8-3 That the present car allowance reimbursement rates applicable to BWL employees required to provide personal Car Allowance transportation in carrying out their respective job assign- Policy ments, adopted July 23, 1985 and effective July 1 , 1985, remain in effect pending a review of costs in July, 1989. -------------------- The cost per mile to operate a vehicle has not increased significantly since the July 1985 adjustment. Further, the Board is currently paying comparable rates with those being paid by other utilities and firms in the Lansing area. -------------------- HUMAN RESOURCES Res. No. 88-8-4 That Mr. Dale G. Allison, maintenance mechanic in Produc- tion Maintenance, be awarded $272.40 for his suggestion of Suggestion Award to installing brackets on the wall so that fork-lift drivers Dale G. Allison can drive up to hang or remove forks easily. The suggestion allows safe storage and allows attachment and removal without assistance. -------------------- It is estimated that the BWL will save $1 ,974.00 the first year by using this suggestion. -------------------- 111 August 30, 1988 COMMITTEE OF THE WHOLE REPORT Coandttee of the Board of Commissioners August 30, 1988 Whole Report Re: Board of Water and Light a) Water Load and Lansing, Michigan Pumpage Forecast b) Financial Fore- The Committee of the Whole reports it met on Tuesday, August 16, 1988 casts (rates) for with the General Manager and staff to receive a briefing on the 1988 three utilities Water Load and Pumpage Forecast and Financial Forecasts for the three utilities. Present were Commissioners Williams (Chair Pro Tem) , Evans, Hassler, Jessop, and McComb. Absent were Commissioners Belen, Sebolt and Strolle. The Commissioners received the results of the 1988 Water Demand and Pumpage Forecast, a study conducted by Susan McCormick of Engineering Planning to predict future characteristics of water demand and consumption patterns as they pertain to water production. The forecast, to be updated annually, was based on providing water in the existing service area and in areas where the Board of Water and Light is committed to serve. A preliminary financial forecast was presented by Rates and Financial Planning Director Dana Tousley for the Electric, Steam and Water utilities of the Board of Water and Light. The forecast included: (1) planning criteria and assumptions, (2) two scenarios for each utility outlining projected revenue requirements, and (3) proposed strategies. This preliminary financial forecast was presented for informational purposes only. Staff will be reviewing this information further with the Board and will be presenting recommendations in the near future. No action was taken. Respectfully submitted, Gerald W. Williams, Chair Pro Tem Committee of the Whole BY COMMISSIONER BELEN-- SECONDED BY COMMISSIONER WILLIAMS That the Committee of the Whole Report be received as presented. Adopted unanimously. 114 August 30, 1988 TREASURER/CONTROLLER Res. No. 88-8-8 That the Board authorize purchasing the following insurance coverage: Purchase of Pension and Welfare Fund Pension and Welfare Fund Fiduciary Responsibility Insur- Fiduciary Responsibility ance for the one year period from September 1 , 1988 to Insurance September 1 , 1989 from the Lyman and Sheets Agency repre- senting the Aetna Casualty and Surety Company for an annual premium of $19,208. This was the only bid received. -------------------- The BWL's expiring similar insurance coverage is with the above agency and insurance company at an annual cost of $16,599. The annual aggregate of liability would remain the same at $10 million. However, for the first time the BWL would have a deductible ($10,000). -------------------- Res. No. 88-8-9 That the Board authorize purchasing the following insurance coverage: Purchase of Specific Excess Workers Specific Excess Workers' Compensation Insurance for the one Compensation year period from September 1 , 1988 to September 1 , 1989 Insurance from Hall & Kennedy, Inc. representing the Aetna Casualty and Surety Company for an annual premium of $29, 165 subject to adjustment. This was the best evaluated bid of those received. -------------------- The BWL's existing similar insurance coverage is with the above agency and insurance company at an annual cost of $19,913 before adjustments. The other bidder for similar coverage was the Lansing Insurance Agency, representing Midwest Employers Casualty Company at a comparable annual premium of $43,776. The Lansing Insurance Agency offered an alternative bid with a two year premium of $140,314. One bid received was considered as part of the property casualty bids and one bid was a service company bid. -------------------- August 30, 1988 113 HUMAN RESOURCES (Continued) Res. No. 88-8-5 That Mr. Billy J. Dudley, coal operator B, in Electric Production Coal Handling, be awarded $169.00 for his Suggestion Award to suggestion to put a seal strip on the rear of the crackers Billy J. Dudley (for to prevent coal from being thrown underneath the rear seal strip on walls. Mr. Dudley's suggestion will aid productivity and rear of coal make the job safer as workers will not have to climb crackers) around power cables to shovel coal. -------------------- It is estimated that the BWL will save $940.00 the first year by using this suggestion. -------------------- Res. No. 88-8-6 That Mr. Billy J. Dudley, coal operator B, in Electric Production Coal Handling, be awarded $274.00 for his Suggestion Award to suggestion to install diverter plates on top of the car Bey J. Dudley (for dumper to divert coal to the center of the grates. Mr. diverter plates on Dudley's suggestion will aid productivity and prevent top of car dumper) accidents from the manual breaking up of frozen coal with sledge hammers. -------------------- It is estimted that the BWL will save $1 ,990.00 the first year by using this suggestion. -------------------- Res. No. 8 8-8-7 That Mr. James M. Howland, operator C at Eckert Station, be awarded $195.90 for his suggestion of adding a line and Suggestion Award to valve from #1 station heating return line to the cross- James H. Howland over line between #1 and #2 blowdown tanks. This suggestion will constitute a savings in maintenance needed to thaw and repair the unit heaters as the extra line will enable the station heating unit to remain in service at all times. -------------------- It is estimated that the BWL will save $1 ,209.00 the first year by using this suggestion. -------------------- 116 August 30, 1938 BY COMMISSIONER WILLIAMS-- SECONDED BY COMMISSIONER STROLLE Res. 88-8-3 RESOLVED, That Resolution 88-8-3 (Financial Planning) of the adopted General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-8-4 thru RESOLVED, That Resolutions 88-8-4 through 88-8-7 (Human 88-8-7 adopted Resources) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-8-8 and RESOLVED, That Resolutions 88-8-8 and 88-8-9 88-&-9 adopted (Treasurer/Controller) of the General Manager's Recommendations be approved. Adopted unanimously. BY COMMISSIONER McCOMB-- SECONDED BY COMMISSIONER WILLIAMS Res. 88-&-10 adopted RESOLVED, That Resolution 88-8-10 (Water) of the General Manager's Recommendations be approved. Adopted unanimously. GENERAL MANAGER'S REMARKS Dridcing water in General Manager Pandy referred to an August 30 LANSING STATE JOURNAL City Hall found safe article regarding a water fountain in the Police Department of City Hall. The article stated that "concerns about the safety of drinking water in Lansing's City Hall complex were unfounded." The problem stemmed from a water fountain sample incorrectly taken by a police employee and delivered to the state Department of Public Health. The Board of Water and Light took 16 new water samples and all were found to be negative. Status of electric General Manager Pandy reported that water production statistics for the and water peaks month of July 1988 indicate a peak average of 26.8 MGD (million gallons per day) as compared to 24 MGD for the same time period last year. This represents an increase of 11-1/2 percent over last year in July. Mr. Pandy reported that electric demand peaked 12 percent over last year's peak. He also reported that 1988 economy energy sales for the months of May, June and July netted the BWL a total profit of $40,000 in sales to Consumers Power Company and Michigan South Central Power Agency. August 30, 1988 115 WATER Res. No. 88-8-10 That the Board revise the wording of Resolution No. 88-4- 12, Delhi Township Water District No. 47, Glenmoor Manor Delhi Township Water Phase I Subdivision, to reflect revisions to the agreement. District No. 47 Agree- ment revision Re: The Township will be required to make a $41 ,474.40 non- Contribution-ur-aid- refundable contribution-in-aid of construction to cover the of-construction charges set forth in the Board's Rules and Regulations for water service for installing the necessary distribution facilities to serve said district. To provide a potable water supply within the proposed new district requires the installation of 1 ,995 feet of water main at the estimated cost of $36,854.40, and three (3) fire hydrants at a cost of $4,620.00. The main extension will serve twenty-one (21 ) residential customers. One-time connection fees will amount to $8,379.00. The estimated annual revenue is $3,780.00 -------------------- These changes were requested by the developer and the Township to install 286 feet of additional water main and to serve three (3) additional customers. -------------------- Respectfully submitted, no �Jr Josephdy General Manager JP/bg 118 August 30, 1988 Res. 88-8-11 Resolution 88-8-11 _...................................................................................... General Manager authorized General Manages. to St udy .a Topic of Interest to study a topic of ...... interest of particular That the General Manager be allowed the following: value to the BWL a. After each three (3) years of service a minimum of five (5) weeks and a maximum of eight (8) weeks is to be taken to pursue a specific area or topic of interest to the General Manager that will be of particular value to the Board. This research may include but is not limited to attending a specific seminar or educational program(s) with the same theme, or site visiting areas, or literature research of a topic. The maximum reimbursement shall be $3,500 for each research topic. Time may be accrued for six (6) years. The Board must approve the topic to be researched and may grant additional dollars for the research, if needed. b. $1,000 each year for spouse to travel to educational conferences and/or assist with research project. C. $1,000 each year for educational conferences for those years when not eligible for research funds. Adopted unanimously. Nolan Owen pension A memo from Human Resources Director Mark Vander Jagt regarding a request referred to pension recommendation for Mr Nolan Owen was received. This item was Personnel CaMattee referred to the Personnel Committee for review and recommendation. Presentation on innovative Electric Utility Director Roy Peffley gave a presentation on innovative scheduling for specific scheduling currently in the experimental stages for specific maintenance employees maintenance employees and Erickson Station Supervisors. Mr. Peffley and Erickson Station discussed the flex scheduling being utilized for employees in Supervisors Production Maintenance, Plant Electricians and Instrument Control Repairers. He discussed the impact of the flex scheduling and noted that it provides optimum utilization of excess maintenance employees resulting from the Ottawa Station phase-out. Benefits of the 10-hour schedule to the BWL for specific maintenance employees and the 12-hour work schedule for Erickson Station Supervisors were outlined as well as the advantages and disadvantages. In conclusion, Mr. Peffley reported that during this two-year experimental stage, data will be obtained to measure results and to develop future plans. 117 August 30, 1988 (Commissioner Jessop arrived at 5:40 p.m. and Commissioners Evans and Hassler arrived at 5:45 p.m.) Dispute with Spartan General Manager Pandy reported that the BWL is in a dispute with Office Supply and Spartan Office Supply and Modernfold--a subcontractor of Spartan Office Modernfold Supply. As background information, Mr. Pandy stated that Spartan Office Supply filed for bankruptcy while Modernfold was supplying office partitions to the BWL. The BWL had an agreement with Spartan totaling approximately $100,000, and $42,000 is being held because of the bankruptcy. Mr. Pandy further advised that Modernfold is now trying to recoup monies they lost from Spartan Office Supply, thus a lawsuit could be initiated naming the Commissioners who served. on the Board during June/July 1986 as co-defendants. The Board will be kept apprised on the progress of this matter as additional details become available. FY'88 Share the General Manager Pandy reported the final results of the first year's Success results Share the Success (STS) Program. The utility finished out the fiscal year with a total of 364 points out of a possible 500 points. The total gross savings of $2,260,540, offset by the 3.64 percent bonus totaling $1,123,013 yields a net bottom line savings to the BWL and its customers of $1,137,527. A copy of the Fiscal 1989 STS brochure was handed out to each Commissioner, and the new features of the brochure were highlighted. Mr. Pandy stated that it is hoped the new format, which includes charts relating to each of the performance measures, will be easier for employees to track, thus encouraging more involvement and a better understanding among employees as to what they have to do over the course of the year to impact the 25 performance measures. Commissioners encourage The Commissioners commented favorably on the performance of the publicity on results of organization. Commissioner Belen encouraged staff to continue Share the Success investigating the possibility of seeking a patent or copyright for the Program BWL's Share the Success Program. Commissioners McComb and Hassler encouraged publicizing the results of the STS Program. A joint letter from Mr. Pandy and Commissioner Hassler was suggested for the "Point of View" column of the LANSING STATE JOURNAL. General Manager to General Manager Pandy briefed the Commissioners on the Advanced Energy attend a study tour Technologies Program arranged by the Swedish Trade Council to be held in Sweden from September 24 - October 2, 1988. This program includes a week's tour of Swedish energy facilities. Some of the key program topics to be covered are: (1) Long-Term Power Supply with emphasis on co- generation, (2) Protection of Environment, (3) Diversified Sources Energy Production, (4) Load and Production Optimization at Stockholm Municipal Energy Authority, (5) Profitable Development of Low Head Hydropower, (6) Cogeneration, and (7) Acid Rain Protection in Europe. Mr. Pandy noted that a number of these programs fit topics of interest to the BWL. Following discussion, Commissioner Belen moved, seconded by Commissioner Jessop that the Board policy adopted August 12, 1980 be reaffirmed as follows: August 30, 1988 119 COMMISSIONERS' REMARKS Carmissioner Williams Commissioner Williams praised BWL employees for their role in comments on benefits maintaining the utility in top operating condition. He noted that good of long-term panning planning has paid off, avoiding brownouts and water shortages during critical periods over the hot and dry summer when demands were at their peak. Adjournment On motion of Commissioner Strolle, the Bogard adjourned at 6:30 p.m. ✓R Mary E. eva, Secret�ary Filed: September 1, 1988 Rita M. Bauman, City Clerk Minutes of the Regular Meeting Board of Zoning Appeals March 10 , 1988 - 7 :30 p.m. City Hall, Council Chambers . 10th floor The meeting was called to order by Vice Chairman Priscilla Holmes at 7 : 30 p.m. Roll call was taken. Present Excused Absence Mary Clark Tom Kane Bernard Christy H. Patricia Curran Christopher Steele Jack Morgan Edward Spink Priscilla Holmes Grant Hilts C.v � c7 Staff o Vern Fountain, Zoning Administrator Jim Ruff, Senior Planner x Elizabeth Gunter, Recording Secretary Steele made a motion to excuse Tom Kane, H. P. Curran, and Jack Morgan. Second by Christy. Motion carried unanimously. Appeal 2884 - 6220 Gardenia This is a request by Mr. & Mrs. Joseph Bates to receive a variance from the zoning code to allow a carport/garage to remain on property known as 6220 Gardenia. Accessory structures on the property cur- rently total 1603 sq ft with a garage 1283 sq ft in size. A presentation was given by V. Fountain. Slides were shown of the subject property and surrounding land use. Holmes - Is there an additional building? Fountain - There' s a storage building to the right (north) . ' Was the garage and carport built after the 1985 action of the board? Fountain - Yes, there was a variance to build only a 720 sq ft garage, they built an additional storage building. Clark - What is the maximum allowed for accessory structures? Fountain - 1 ,000 sq ft. Mr. & Mrs. Joseph Bates, 6220 Gardenia, no additional information. No one spoke in opposition. PAGE 1 Clark - I 'm curious to know, after your appeal was denied why you chose to exceed the amount you were allowed? Mr. Bates - I was told a carport was not an addition. Mrs. Bates - We were under the impression that a carport since its not enclosed does not fall under that restriction in the square foot- age. We thought we were still within the guidelines . Holmes - Did you request a building permit? Mr. Bates - You' re only allowed so many days to build a building on a building permit and I can' t do it. Because I build it as I can afford it. If I took out the permit they would cancel it within 60 or 90 days . I ' d have to keep filing for a new permit. Holmes - It appeared to me that the garage and the carport were all part of the same structure; is that true? The roof line is all the same so it would look nice. Spink - Was the garage built with a permit? Mr. Bates - I knew I couldn't get it done in time, and I knew the code, so I just did it. Communication: Mary Van Riper, 6221 Gardenia, no objection, an improvement to the neighborhood. Spink - I move that appeal #2884 be denied on the basis that there is no hardship shown, no new information presented since the appeal in 1985 and that the garage structure be made to conform to the maximum of 720 sq ft and the total accessory structure not exceed 1 ,000 sq ft. Second by Clark. Yeas : Clark, Spink, Hilts, Holmes, Steele Nays: Christy Appeal #2884 DENIED. The board found based on testimony and evidence that conditions had not changed since they approved up to a 720 sq ft garage in 1985 . They further found that the existing structure was expanded upon without the required building permits. Finally the board concluded that a hardship did not exist and there was no new evidence that would support approval of the existing structure. Since the appeal was denied the carport and garage are to be reduced in size to meet the minimum requirements of the zoning code. Appeal #2885 - 1028 East Saginaw This is a request by Johnson Sign Company for Hamco Management, Inc. to erect a free-standing accessory sign larger than is permitted by code on the property at 1028 East Saginaw. The sign would also be located closer than permitted to the front property line. PAGE 2 A presentation was given by V. Fountain. Slides were shown of the subject property and surrounding land use. Holmes - Do you know the height of the sign? Fountain - 6 ' 9 Dan Johnson of Johnson Sign Co. and Dave Stewart of Hamco Management. Dave Stewart, represents Hamco Mgmt, in regards to Saginaw center. I have some reasons why we chose to come here tonight. The sign is an old plywood sign and has been there since 1960 and its time to be up- graded and improved. We are going to improve it towards the variance, we are going to move it back as far- as we can without putting it on the building. We are looking to modernize the size. Having a combi- nation of tenants that wish to remain identified individually. Our hardship, is that it would be difficult to shrink the sign down, dif- ferent then what it has been ever since the building has been there. The tenants and the neighbors have sent letters stating they have no problem with it. No one spoke in opposition. Correspondence: Owner Mario Diaz, 1036, 1102 E. Saginaw, no objection. Mrs. Deatsman, 1020 E. Saginaw, no objection as long as it sets back and does not obstruct the view from my porch. A letter from Charles P. Arons, Weight Loss Clinic, no objection. A letter from B. Wayne Bingham, M.D. 3-034 E. Saginaw, a new sign would be very beneficial. . A letter from John A. Hundt, owner of Quaker Mgmt Co. , 1035 E.' Saginaw, support the sign variance. Discussion: Clark - I have no problem with the setback, I am uncomfortable with the size variance. Christy made a motion to approve the setback and size variance. Sec- ond by Spink, we' re getting closer to compliance. Yeas: Spink, Clark, Christy, Hilts, Holmas, Steele. ' Nays: none Appeal 02885 APPROVED. The board found based on testimony anc3 evidence that the new sign would replace a similarly sized existing sign and the new one would be located five feet further back from the front property line than the present one. PAGE 3 The board believes that the new sign will be more visible to the high volumes of traffic on East Saginaw, and will not have an adverse im- pact on adjacent neighbors . Appeal #2886 - 3518 Ruth This is a request by Terry Doucette to permit the erection of a 34 ' x 40 ' storage building on the property known as 3518 Ruth Avenue, to house a boat, a recreation vehicle and a workshop. A presentation was given by V. Fountain. Slides were shown of the subject property and surrounding land use. The proposed storage building would be 1 , 360 square feet in size. The existing attached garage will be converted to living space. Holmes - Is any of the land developable around there? Fountain - no Christy - Are they going to build another driveway? Fountain - They propose to access the property with driveway off Ruth St. Holmes - Is the intention to change the garage to a family room? Fountain - yes Clark - Are they going to retain two driveways? Fountain - yes Holmes - Would they be required to pave that drive? Fountain - yes Terry Doucette - I have a letter from my next door neighbor. The houses across the street are multiple houses, the whole front yard is ' a parking lot. I have a 120 acres around me, I 'm the last house on that street, its a dead end street. I brought some pictures in. Communication: A letter from Clement and Marie Hufnagel, immediate property next door. I do not object and I am fully supportive of the new building. Committee of the Whole: Clark - This is a unique situation because of the size of the lot, if the properties to the west and north were not developable I would say this was a unique situation which might merit an exception. However, the property to the north will someday be developable. No hardship in terms of the code to grant the variance. Glen Ballans - If someone wants to do something whether its legal or not they are going to do it. Dixie Pemberton - I agree with the board because of the future poten- tial of something developing._ Hilts made a motion to deny the request because there is no hardship or practical difficulty. Second by Clark. PAGE 4 This will remain on the table for further study and report, as it re- lates to the proposed Main Street realignment. Appeal #2888 - 2325 West Jolly Road This is a request by Glenn Ballans to receive a variance that will allow him to retain a 14 ' x 30 ' addition for storage that has been attached to his 24 ' x 40 ' garage on the premise of 2325 West Jolly Road. A presentation was given by V. Fountain. Slides were shown of the subject property and surrounding land use. The code allows up to 1 ,000 sq ft of combined garage and storage space. Mr. Ballans has a total of 1 , 380 sq ft. Glenn Ballans., I bought this house very cheap. It was in rough shape. If I fixed it up he would sell it to me. There ' s no basement. I fixed the floors up, etc. No storage at all. I have three children. It had a 14 x 14 shed in the back, a steel shed. That got broke into three times in one summer, so I got rid of it because the back was ripped out. I have almost 30 ' behind the garage of vacant land backed up to the neighbors yard and he has 100 ' behind him. I 'm a long ways from everybody. My neighbor came over and helped me build a 14 x 30 addition. I didn' t use a permit, I didn' t think I had to have one because your allowed to get another shed. After I got it all done I got a letter in the mail. So I went down and showed them what I did and they said the garage is ok, I didn't have a permit and it was oversized, with the garage and the add on I 'm over. Joseph Bates, 6220 Gardenia, there are so many garages in the city that are twice as big as his, bigger than mine, that I would like to know how they all got built and why are they still standing? I can sit in my backyard and look down the street at this monster barn that* was granted by this board. The barn was approved by this board in 1985 . And they still have their trailers and junk outside. Hilts made a motion to deny the request, no hardship or practical difficulty. Second by Clark. Yeas: Hilts, Clark, Spink, Steele, Holmes Nays: Christy Appeal #2888 DENIED The rear addition causes a total of 380 square feet of accessory , structure over the maximum allowed by code. The board does not believe that there is a hardship or practical dif- ficulty associated with this request. The board further believes that the requirements of the zoning code allows reasonable use of the property. Since the appeal was denied the addition is to be removed immediately. PAGE 6 Yeas: Hilts, Holmes, Clark, Spink, Steele Nays: Christy Appeal #2886 DENIED The board does not believe that there is a hardship or practical dif- ficulty associated with this request, and further believe that the requirements of the code allow reasonable use of the property. Appeal #2887 - 1231 East Main Street This is a request by Gary Caltrider, owner of 1231 East Main Street, to allow the repair of this fire damaged, Class B, nonconforming structure, pending Planning Board approval of a petition for Class A non-conforming status. A presentation was given by Jim Ruff. Slides were shown of the sub- ject property and surrounding land use. The code requires the Board of Zoning Appeals approval for repair of nonconforming structures damaged by fire requiring repair greater than 50% of the structural value. The request also requires a variance of 18 parking spaces. The code requires 19 parking spaces for this site containing 3 different tenant spaces. Only one parking space is available on site. Holmes - Does the address 1231 E. Main include the entire property which includes all four fronts . Ruff - No, its three different parcels of land. Pat Bates, 6220 Gardenia, I 'm not in the vicinity, but the building appears to be quite an eye sore, parking is always a problem. Dixie Pemberton, 924 Dakin Street, I live in the area. The property in question is a catch 22, not only for the neighborhood but for the owner. A vacant, boarded up building will not be an asset to the neighborhood. If the building is to be used to serve the local resi- dents it could be an asset. Due to the lack of available parking, preference for uses are low volume types that would serve the area. A major concern is that it is a rental property and is subject to fre- quent change. If the variance is granted by this board, we would like to request that it be granted contingent upon approval of the Class A status. Also, that is in the future the Class A were ever revoked, that the parking variance be revoked at the same time. A letter from Jon Addiss, partner for Altamar Properties, no objec- tion. Christy made a motion to table the appeal . Second by Hilts. Yeas: Clark, Spink, Christy, Hilts, Holmes, Steele Nays - none Appeal #2887 TABLED PAGE 5 Old Business: 308 S . Pennsylvania variance for an open carport, carport is now enclosed. New Business : Satellite Dish, court upheld decision, but it was appealed, and is pending. Southwest corner Jolly and Wise possible business developing. There being no further business the meeting was adjourned at 9 : 15 p.m. Next meeting will be April 14 , 1988 at 7 :30 p.m. ern Fountain Secretary Board of Zoning Appeals PAGE 7 Minutes of the Regular Meeting Board of Zoning Appeals December 8 , 1988 - 7 :30 p.m. City Hall, Council Chambers. 10th floor The meeting was called to order by Chairperson Priscilla Holmes at 7 : 30 p.m. Welcome Floyd Wright to the Board of Zoning Appeals . Poll call was taken. Present Excused Absence Mary Clark Edward Spink Christopher Steele Tom Kane Floyd Wright Patricia Curran Grant Hilts Priscilla Holmes Staff Vern Fountain, Zoning Administrator Donna Wynant,, Senior Planner Elizabeth Gunter, Recording Secretary Tabled Appeal #2938, 723 N. Sycamore. A letter from Carol McKowen requesting to withdraw the appeal . Clark made a motion to remove appeal 02938 from the table. Second by Steele. Motion carried unanimously. Steele made a motion to accept the letter of withdrawal for appeal #2938 . Second by Clark. Motion carried unanimously. + � Appeal 42940 - 918 South Pennsylvania This is a request by Ralph Goodrich to allow the construction of an 11 x 46 foot addition to the rear of the building at 918 South Pennsylvania for office and storage purposes. A presentation was given by V. Fountain. Slides were shown of the subject property and surrounding land use. The building will be 4 . 5 feet from the west property line. Code requires a rear yard of 25 feet. A variance of 20 .5 feet is requested. Steele - Is there enough room? Fountain - According to the survey, yes . Wright - It will the new addition match the shed structure on the south side or the roof line of the original building? Fountain - Will match the roof line of the original building . Ralph Goodrich - Owner of the building at 918 South Pennsylvania for about six years. The business has been doing very well and I need the office space and the storage to put machines in. One of the only general service stations ' s in the area. The neighbors in the area are happy to have a service station in the neighborhood. I have ten sig- natures from ten households in the area. Its a family oriented busi- ness, my son helps, my wife runs the front counter. Clark - Who owns the fence? Goodrich - It originally was owned by Sun Oil . But when I bought it I assumed it was mine. Its a wooden fence and the kids keep tearing it down. Steele - Are you aware of the conditions the staff has recommended? Goodrich - I haven' t been informed of anything. Holmes - Do the bays extend into the slope area? Goodrich - No, neither is the addition. Holmes - Will there be access to that from the outside of the build- ing. Goodrich - Yes Communication A letter from Phillip Gillespie, landlord of 919 Raider Street, no objection. A letter indicating approval of the variance with six signatures from neighborhood. A letter from Debbie Lopez, 1001 S. Pennsylvania, own property near business, support the variance. Christy made a motion to approve appeal #2940 with staff recommenda- tions. Second by Wright. Yeas: Clark, Curran, Hilts, Christy, Wright, Steel Holmes Nays: none Appeal #2940 APPROVED. The request for a variance was approved subject to the following con- ditions: 1 ) that the proper repair, as required by ordinance, of the opaque fencing along the south and west lines of the subject property; and 2 ) that no ventilation or compressor equipment be located on the west wall of the proposed addition. The board was satisfied based on testimony and evidence that the pro- posed addition would not adversely impact the abutting properties . The difference in land elevation between the service station and the residential homes to the west with the required fencing will provide a good transition between the unrelated uses . Appeal #2941 - 6835 South Washington Avenue A letter from Leo & Carolyn Ghastin, 510 Dadson Drive, object to the equipment being approved. Christy made a motion to approve appeal #2942 with staff recommenda- tions. Second by Curran. Yeas : Hilts, Wright, Curran, Clark, Steele, Christy Nays: Holmes Appeal #2942 APPROVED. The request was approved subject to the following conditions: 1 . The business will be conducted only in the basement of the struc- ture as indicated by the applicant. 2 . The owner shall not employ anyone but a member of the immediate family. 3 . No commodity shall be sold from the premises . 4. Not more than 20% of the floor area of the building shall be used for the beauty shop. 5 . Not more than one styling chair shall be installed. 6 . Not more than one customer or family of customers is on site at one time, thereby resulting in limiting the number of customer vehicles to one. 7 . All parking will be in the driveway. 8 . No more than one non-illuminated sign not to exceed one square foot in size will be allowed. 9 . Approval of this variance is both site and applicant specific. The board found based on testimony and evidence that there is adequate area for on site parking. The board was satisfied that the beauty salon would not adversely im- pact the adjacent properties providing the above conditions are ad- hered to. Appeal #2943 - 6348 Rosedale This is a request by George Sawaya of 6348 Rosedale Road to construct an addition onto the front of his residence, 36 ' from the front lot line . The code requires a setback of 50 ' . A variance of 14 ' is re- quested. A presentation was given by V . Fountain. Slides were shown of the subject property and surrounding land use. The 18 ' x 15 ' addition would extend from the front of the existing residence east 18 ' to a point 36 ' from the front property line. George Sawaya, 6348 Rosedale, recently bought the house from inlaws . We need the addition because our family is growing, we just had our second boy. We couldn ' t add on in the back because of the garage back there and there is a patio back there and we couldn' t get the equip- ment back there to dig. We need a basement, we have a partial base- ment with a furnace and hot water heater now and there ' s only outside