HomeMy WebLinkAboutBoard of Water and Light Minutes 07.28.26
Regular Board Meeting Minutes
July 28, 2026 Page 1 of 20
Approved by the Board of Commissioners 09-22-2026
MINUTES OF THE BOARD OF COMMISSIONERS MEETING
LANSING BOARD OF WATER AND LIGHT
_________________________________
July 28, 2026
________________________________
The Board of Commissioners met at the Lansing Board of Water and Light (BWL)
Headquarters-REO Town Depot located at 1203 S. Washington Ave., Lansing, MI, on
Tuesday, July 28, 2026. This meeting was publicly notified for 5:30 p.m.
Chairperson David Price called the meeting to order at 5:30 p.m.
Corporate Secretary, LaVella J. Todd, called the roll.
The following Commissioners were present: Chairperson David Price; Commissioners Beth
Graham, Chris Harkins, Semone James, DeShon Leek, Dale Schrader, and Sandra Zerkle.
Absent: Commissioner Tony Mullen.
Corporate Secretary Todd declared a quorum.
Chairperson David Price led the pledge of allegiance.
Chairperson David Price welcomed Michigan State Representative (State Rep) Angela
Witwer from the 76th House District to provide a special presentation on behalf of General
Manager (GM) Dick Peffley’s 50 years of service.
Michigan State Rep. Angela Witwer praised GM Peffley and his family for their continued
service to his community. State Rep. Witwer commended the Board of Water and Light for
acknowledging the dedication GM Peffley has made to the Lansing BWL. State Rep. Witwer
then presented GM Peffley with a tribute commemorating 50 Years of Service, his legacy,
and his impact on his community. The tribute was signed by State Rep. Witwer, State Rep.
Emily Dievendorf, State Rep. Penelope Tsernoglou, Senator Sam Singh, State Rep. Julie
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July 28, 2026 Page 2 of 20
Brixie, State Rep. Kara Hope, Senator Sarah Anthony, Lieutenant Governor Garlin Gilchrist,
and Governor Gretchen Whitmer.
ELECTION OF OFFICERS FOR FY2026-2027
In the absence of Nominating Committee Chairperson Tony Mullen, Commissioner David
Price presented the July 7, 2026, Nominating Committee Report. The proposed slate of
officers for Fiscal Year 2026-2027 is as follows: Commissioner David Price serving as
Chairperson; and Commissioner Sandra Zerkle serving as Vice-Chairperson. There were no
further nominations for the officers’ positions from the floor.
Motion by Commissioner Beth Graham, Seconded by Commissioner Semone James to
close nominations for Board Chair officer position.
Yeas: Commissioners Graham, James, Harkins, Leek, Price, Schrader, Zerkle.
Nays: None.
Action: Motion Carried.
Motion by Commissioner Beth Graham, Seconded by Commissioner Chris Harkins to close
nominations for Board Vice-Chair officer position.
Yeas: Commissioners Graham, James, Harkins, Leek, Price, Schrader, Zerkle.
Nays: None.
Action: Motion Carried.
Motion by Commissioner Semone James, Seconded by Commissioner Beth Graham to
approve FY2026-2027 Slate of Officers; namely, David Price, Board Chairperson and Sandra
Zerkle, Board Vice-Chairperson.
Roll Call Vote:
Yeas: Commissioners Graham, James, Harkins, Leek, Price, Schrader, Zerkle.
Nays: None.
Action: Motion Carried.
Chairperson Price stated that the Executive Committee consists of the Board Chairperson,
the Board Vice Chairperson, the past Board Chairperson, plus a Board Member selected by
the Board Chairperson and approved by vote of the Board Members. With Commissioner
Sandra Zerkle as Board Vice Chairperson and Commissioner Semone James as the past
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July 28, 2026 Page 3 of 20
Board Chairperson, Chairperson Price nominated Commissioner Dale Schrader as the
fourth Board Member for the Executive Committee. Commissioner Dale Schrader accepted
the nomination as the Board Member for the Executive Committee.
Motion by Commissioner Semone James, Seconded by Commissioner Beth Graham to
approve the FY 2026-2027 Executive Committee of the Board of Commissioners, comprised
of David Price, Chairperson, Sandra Zerkle, Vice-Chairperson, Semone James, Past
Chairperson and Dale Schrader, Board Member.
Yeas: Graham, James, Harkins, Leek, Price, Schrader, Zerkle
Nays: None.
Action: Motion carried.
APPROVAL OF MINUTES
Motion by Commissioner Sandra Zerkle, Seconded by Commissioner Chris Harkins to
approve the Regular Board Meeting minutes of May 19, 2026.
Action: Motion Carried
PUBLIC COMMENT
There was no public comment.
COMMUNICATIONS
Electronic mail from Arbors of Georgetown re: Power Outage Restoration. Received and
Placed on File.
Electronic mail from Samantha Smith re: Power Outage Restoration. Referred to
Management. Received and Placed on File.
Electronic mail from Lisa Alices re: Board Position. Received & Placed on File. Emailed City
of Lansing Board Application information
Electronic mail from Marilea Riddle re: Customer Service Representative. Referred to
Management. Received and Placed on File.
Electronic mail from Michelle Harmon re: Customer Bill. Referred to Management.
Received and Placed on File.
COMMITTEE REPORTS
Chairperson David Price stated that the July 7, 2026 Nominating Committee Report had
already been presented.
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July 28, 2026 Page 4 of 20
Committee of the Whole Chairperson Sandra Zerkle presented the Committee of the
Whole Meeting Report:
COMMITTEE OF THE WHOLE
Meeting Minutes
July 14, 2026
The Committee of the Whole of the Lansing Board of Water & Light (BWL) met at the BWL
Headquarters-REO Town Depot located at 1203 S Washington Ave., Lansing, MI, on
Wednesday, July 14, 2026.
Chairperson Sandra Zerkle called the Committee of the Whole Meeting to order at 5:30
p.m. and asked the Corporate Secretary to call the roll.
Present: Commissioners Chris Harkins, Semone James, Tony Mullen, David Price, Dale
Schrader and Sandra Zerkle.
Absent: Commissioners Beth Graham and DeShon Leek.
Corporate Secretary LaVella Todd declared a quorum.
Public Comments
There were no public comments.
Approval of Minutes
Commissioner Semone James noted the May 7, 2026 Committee of the Whole Meeting
minutes needed a correction as Commissioner Tony Mullen was marked both present and
absent at the meeting. Corporate Secretary LaVella Todd stated she would ensure the
meeting minutes were corrected.
Motion by Commissioner David Price, Seconded by Commissioner Tony Mullen, to approve
the Committee of the Whole Meeting minutes of May 7, 2026 as modified.
Action: Motion carried. The minutes were approved.
Retirement Plan Committee (RPC) Update
General Manager (GM) Dick Peffley introduced Chief Financial Officer (CFO) Scott Taylor to
present the Retirement Plan Committee (RPC) Update. The following specifics were
presented by CFO Taylor: Investment Activity Update – Defined Benefit (DB) Plan: Liability
Driven Investing (LDI) Timeline; Voluntary Employee Benefit Administration (VEBA) Plan: US
Small Cap Investment Manager and Updated Asset Allocation
Question: [Inaudible] – CFO Taylor answered: Asset Consulting Group.
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July 28, 2026 Page 5 of 20
RPC Update cont.
Defined Contribution 401(a) & Deferred Compensation 457 (b) Plans. Administrative
Activity Update – Defined Benefit Plan (DB) & Voluntary Employee Benefit Plan (VEBA):
Actuarial Services Contract; Defined Contribution and Deferred Compensation Plans:
Nationwide Loan Program. CFO Taylor shared pro and con details on employee loans
offerings. As part of the 401(a) and 457(b) plan update, CFO Taylor also noted that the
expected availability date for the new funds would likely shift out by approximately 30 days
from what was shown on the slide in order to allow time to come to appropriate terms on
the new fund contracts.
Commissioner Zerkle asked if employees are provided with pro and con details and
information during the loan interview process due to the possibility of getting a less
expense loan?
CFO Taylor responded he would check with Nationwide on more specifics, but it is a fairly
streamlined process and as long as participants meet the basic requirements, they are
allowed to move along in the process.
Commissioner James inquired if they (employees) were paying themselves back? CFO
Taylor responded in the affirmative.
CFO Taylor continued the RPC Update presentation.
Commissioner Schrader asked if it was common for employees to borrow from their 401(a)
account? And, what is the term or length of the loan? CFO Taylor responded that there are
typically around 270 loans outstanding at any given time with a total value of approximately
$3M compared to total 401 and 457 plan assets of approximately $400M.. Term length is
generally up to 5-years, and up to 15-years (for a mortgage loan). According to Plan Sponsor
Council of America (PSCA) survey, according to plan sized similar to BWL, 86% offered a
loan program and this increases to 96% when looking at the utility or energy specifically.
Commissioner Harkins asked if there was an auto-enroll percentage for BWL employees to
contribute? CFO Taylor responded – 401(a) is automatic; 457(b) is the account employees
elect to contribute to, and they are encouraged to ensure they receive the match benefit.
CFO Taylor concluded his update.
Rules and Regulations Update
GM Peffley introduced Director of Strategic Planning & Development (SPDD) Kellee
Christensen to present the Rules and Regulations Update. SPDD Christensen presented
the following specifics of the FY27 Rules and Regulations Update Sections: Definitions,
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July 28, 2026 Page 6 of 20
General Provisions, Characteristics of Service, Use of Service, Metering, Application of
Rates, Bills and Payments, Dispute and Hearing Procedure, Distribution System
Extensions, Services, Compliance, Other Individual Utility Issues, and Fees and Charges.
Commissioner Price asked how common it is to have a shared residency, basically two
people on the account?
SPDD Christensen responded and clarified – there is only one person on the account. If
someone with a delinquent account returns to the service territory, and we find they were
co-residents (at the time of the delinquency), we can go back to collect those
delinquencies.
Commissioner Mullen asked a question [Inaudible]
SPDD Christensen responded that these changes went into all the Rules and Regulations.
Commissioner James asked if there is a possibility of transferring a delinquent account to
someone else?
SPDD Christensen responded, yes, if a person left a delinquent account, and they have
moved in with someone else, and they are taking over service, we have tightened the rules
on how and when we can collect on that delinquency if they are cohabitating with
someone, or they try to restart an account.
Commissioner James asked who bears the burden of proving the responsibility?
SPDD Christensen responded that Customer Accounts has a whole process they use to
determine whether they can collect it or not.
Commissioner James asked can the service still remain active while they (Customer
Accounts) dispute (the delinquency)?
SPDD Christensen responded, yes. It's more about putting the service in someone’s name
if they haven’t paid (the delinquency). Asst GM Heather Shawa added – the service is not
going to be shut off while the delinquency is being investigated.
Commissioner James asked, has legal counsel reviewed the language for due process and
legal signed off
SPDD Christensen and Asst GM Shawa responded, yes.
Commissioner James asked do the rules distinguish between spouses or unrelated
roommates or landlords, tenants [Inaudible]?
Regular Board Meeting Minutes
July 28, 2026 Page 7 of 20
SPDD Christensen responded, It’s really about cohabitation.
SPDD Christensen continued presenting the Rules and Regulations Update, specifically
the Review and Process steps; Fiscal Year 2027 Proposed Changes (all utilities) – four
categories: Substantive changes, Non-substantive changes, Fee and Charges adjustments,
increases, or language changes, and the Rules and of Regulations for Hot Water
development – effective October 1, 2026, if approved. SPDD Christensen noted the revision
of Rules 2.2.A: Collection, Use, and Privacy of Customer Information utilities, and the
addition of Rule 2.2.A.3.E. to describe the units of consumption and demand we collect
from customer metering for hot water, and the clarity revision of Rule 7.1.E and I: Billing
and Payments, Responsibility for Payment of Bills. In addition, SPDD Christensen shared
the Proposed Changes to Electric Utility, namely, Revision of Rule 5.8: Meeting, Advancing
Meter Opt-Out; Revision of Rule 13.2.L and N: Use of Equipment, Authorized Attachments;
addition of Rule 11.7: Services, Bulk water, and Revision of Rule 15: Fees and Charges.
Also, SPDD Christensen shared there were no proposed changes to the Steam Utility, as a
review of the Rules and Regulations was completed to ensure that, as we transition from
Steam, BWL continues to maintain current customers until all customers are transitioned
from Steam, while limiting system expansion.
GM Peffley shared details, and feedback received after the implementation of an industry-
standard fee charged for hanging banners on streetlight poles. Mr. Peffley stated though
staff did an outstanding job of prepping all the customers for a whole year, and some of the
fees were very large, the implementation was met with such opposition, SPDD Christensen
had to rewrite it as an application fee.
Commissioner Schrader shared appreciation on behalf of the Old Town Neighborhood
Association for BWL listening to their concerns and making the change.
Commissioner James asked what the fees were?
GM Peffley stated the fees were common to the rest of the industry – we weren’t above or
below, and asked SPDD Christensen to respond. SPDD Christensen stated there was a
one-hundred-dollar permit application fee, and thirteen dollars per banner, per month, for
the length of the application.
In conclusion, SPDD Christensen gave a brief overview of the new addition to the Rules and
Regulations Hot Water Service, stating the utility is modeled from Chilled Water Rules and
Regulations, and input was received from subject matter experts from Water T & D, Legal,
other utilities, and consultants.
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July 28, 2026 Page 8 of 20
Commissioner Price asked when the first customer would come on line with hot water.
GM Peffley responded that Lansing Community College would be in the Fall of 2027.
Others are lined up to follow.
SPDD Christensen highlighted the contingent statement included in the Rules and
Regulations Resolution. GM Peffley requested approval of said resolution.
Rules and Regulations Resolution
Motion by Commissioner David Price, Seconded by Commissioner Dale Schrader, to
forward the Rules and Regulations Resolution to the full Board for consideration.
Action: Moton carried.
Updated Rules of Procedure
GM Peffley introduced Deputy General Counsel (DGC) Jason Hawkins to present the
Updated Rules of Procedure. DGC Hawkins presented the Updated Rules of Procedure
agenda item, stating the Committee had previously asked Legal Services to review
provisions of the new City Charter and compare those to the existing Rules of Procedure to
see if there was anything that needed updating, and then to make any other suggested
revised for the Committee to consider. During the process he met several times with
Commissioner Zerkle, who was a major help in getting the project done and getting the
revisions to the committee, and asked how the Committee would like to proceed with the
review
Commissioner James shared she had a litany of questions, and that there appeared to be
proposed changes made that were not provided to the Board previously.
Commissioner Zerkle commented that the last version members got should have been the
final one she, DGC Hawkins, and General Counsel Mark Matus agreed on.
Commissioner Price suggested the Committee allow DGC Hawkins to go through the
presentation with the changes outlined therein, and proceed with questions and
discussion thereafter. The Committee members unanimously agreed with Commissioner
Price.
DGC Hawkins proceeded with the presentation and highlighted the draft Rules of
Procedure with revisions previously presented to the Committee.
When DGC Hawkins referenced the Board Pension Fund Trustee Committee language,
Commissioner Price commented that he believed there may have been some confusion
regarding the section(s) with revised language relating to the Board Pension Fund Trustee
Regular Board Meeting Minutes
July 28, 2026 Page 9 of 20
Committee, because as soon as you become a commissioner, you are a trustee
automatically.
DGC Hawkins shared that the BWL website currently has a list of committees and the
Board Pension Fund Trustees is separate from that, and therefore should not be listed as a
committee in the Rules of Procedure. Commissioner Price commented in the affirmative.
Commissioner James commented she received an email from the Corporate Secretary’s
office that contained ‘these’ revised Rules of Procedure, and that there were no page
numbers, or the page numbers were misconfigured. Commissioner Harkins also shared
comments regarding the redlined version he received.
Commissioner James recommended that in the future a clean copy be provided along with
the redlined version.
GM Peffley observed that there appeared to be two different documents that were
circulated to the Committee members, and suggested that staff the need to develop a plan
to ensure everyone has the same document – the redlined version and the clean copy.
Following lengthy discussion on the language in the redlined copies of the Rules of
Procedure, and the potential changes in regard to the Executive Committee, Commissioner
Mullen, followed by Commissioner Price, suggested the updated Rules of Procedure
agenda item be tabled until the correct version of the redlined document, along with a
clean copy can be emailed to the Committee for review, and comments. It was also
suggested that changes and suggestions can be directed back to Corporate Secretary (CS)
Todd to share with DGC Hawkins to develop a revised document with a clean copy to
discuss at the next Committee meeting.
Commissioner James supported Commissioner Price’s suggestion, and stated she would
like to meet with DGC Hawkins to discuss her comments. Commissioner Price supported
Commissioner James’ suggestion.
CS Todd stated it would be advantageous for Commissioners to share their questions,
comments, concerns and discussion(s) directly with the Legal Services Department
instead of going through her, once the correct version of redlined Rules of Procedure were
provided, along with a clean to the Committee.
CS Todd affirmed that the June 17, 2026 redlined version of the Rules of Procedure, along
with the memo emailed to the full Board on June 19, 2026, was the last version of the
documentation she received from DGC Hawkins and supported his steps taken. In
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July 28, 2026 Page 10 of 20
addition, CS Todd apologized if Commissioners received a different version of the Rules of
Procedure documentation in the packet.
Commissioner James also presented discussion regarding the Board of Commissioners’
required training(s) under the new City Charter.
At the suggestion of Commissioner James, DGC Hawkins stated he was going to consult
with the City Attorney’s Office to confirm what training would be required of the Board, and
when it needs to be completed.
Motion by Commissioner David Price, Seconded by Commissioner Tony Mullen, to table
further discussion on the Updated Rules of Procedure until the September Committee
Meeting to allow time to locate and provide the correct version of the redlined Rules of
Procedure and a clean copy of the document to the Committee for review.
Action: Motion carried.
Other
Commissioner Mullen stated the Commissioners were provided with iPads several years
ago by the Board of Water & Light to reduce the time, effort and money that goes into
printing documents, and does not feel they are necessary for all Commissioners.
Subsequently, Commissioner Mullen suggested Commissioners individually let CS Todd
know if they want printed meeting packets or not. Commissioner Price supported
Commissioner Mullen’s suggestion of sustainability efforts. Commissioners will email CS
Todd to advise if they want printed meeting packets or not.
Commissioner Zerkle shared appreciation on behalf of the Board of Commissioners for the
BWL staff restoration efforts during the July 4th storm.
GM Peffley stated he would share the Commissioners’ support with the staff and plans to
provide an update at the July Regular Board meeting.
Commissioner Price shared thanks to the Board of Water & Light for sponsoring
Commissioners to attend the APPA 2026 National Conference in Boston, MA.
Motion by Commissioner Semone James, Seconded by Commissioner Chris Harkins, for
excused absences for Commissioners Beth Graham and DeShon Leek.
Action: Motion Carried.
Adjourn
Chairperson Sandra Zerkle adjourned the meeting at 6:45 p.m.
Regular Board Meeting Minutes
July 28, 2026 Page 11 of 20
Finance Committee Chairperson Dale Schrader presented the Finance Committee Meeting
Report:
FINANCE COMMITTEE
Meeting Minutes
July 21, 2026
Finance Committee: Dale Schrader, Committee Chairperson; Beth Graham, Chris Harkins,
David Price; Alternates: Semone James, Tony Mullen.
The Finance Committee of the Board of Water and Light (BWL) met at the BWL Headquarters
– REO Town Depot, located at 1203 S. Washington Ave., Lansing, MI, on Tuesday, July 21,
2026.
Finance Committee Chairperson Dale Schrader called the meeting to order at 5:30 p.m. and
asked the Corporate Secretary to call the roll.
Present: Commissioners Beth Graham, David Price and Dale Schrader; Alternates:
Commissioners Semone James and Tony Mullen. Also Present: Commissioner Sandra
Zerkle.
Absent: Commissioner Chris Harkins.
Corporate Secretary LaVella Todd declared a quorum.
Public Comments
There were no public comments.
Approval of Minutes
Motion by Commissioner David Price, Seconded by Commissioner Beth Graham, to
approve the Finance Committee Meeting minutes of May 7, 2026 as presented.
Action: Motion Carried. The minutes were approved.
YTD Financial Summary
Chief Financial Officer (CFO) Taylor presented the year-to-date financial summary, reporting
that days cash on hand are in a good position at 208 days and that revenue performance for
retail and wholesale operations is favorable. He stated a plan to forego a small bond
issuance due to a strong cash position. The decision to defer the bond issue for at least one
year is attributed to the cash position. CFO Taylor stated that revenues are 1% over retail and
13% over wholesale due to higher energy prices, while operating and non-operating are
under budget. He also stated that net income through May is about $40 Million.
Regular Board Meeting Minutes
July 28, 2026 Page 12 of 20
CFO Taylor explained that the capital budget is running over budget due to two overhauls,
but the new energy project is under budget due to delays in the battery project and solar
projects. Metrics such as operating ratio, earned ratio, debt to total assets, sales, bad debt,
employee count, payroll data, and benefit casts are consistent with previous reports.
CFO Taylor also provided an update on the upcoming proposed rate changes. There will be
two Public Hearings on proposed rate changes held at the REO Depot in August. The first
Public Hearing is scheduled to take place on Saturday, August 1, 2026 at 10:00 A.M. The
second Public Hearing is scheduled to take place on Tuesday, August 4, 2026 at 5:30 P.M. A
Special Board Meeting is scheduled to take place on Tuesday, August 11, 2026 at 5:30 P.M.
for to vote on the proposed rate changes, with effective date of October 1, 2026.
Commissioner Price reiterated to the Board that a quorum is required at both Public
Hearings, as well as the Special Board Meeting.
CFO Taylor also stated that the Lansing City Council has invited the BWL to speak at their
August 10, 2026, Committee of the Whole Meeting to discuss the proposed rate change
filing. The rate change presentation for the Public Hearings will focus on the proposed rate
change development, how it supports items such as environmental initiatives, specific
changes to the rates, and the involvement of a third-party strategy consultant.
VEBA Investment Policy Statement Revision and Resolution
CFO Taylor discusses the VEBA Investment Policy Statement revision, which included a
recommendation from the consultant at ACG to adjust asset allocations. The
recommendation is to reduce the real asset investment from 15% to 12% and increase fixed
income from 25% to 28%.
CFO Taylor presented the VEBA Investment Policy Statement Resolution for approval as
recommended by our ACG consultant.
Commissioner James questioned the second to last paragraph of the Resolution and how it
referenced the Defined Benefit Plan and Trust for Employee Pensions, instead of stating the
VEBA Investment Policy.
CFO Taylor confirmed that the Resolution will be amended to read “RESOLVED, that, after
its review, and based on the recommendation from the Retirement Plan Committee, the
Sponsor adopts and approves the attached Post-Retirement Benefit Plan and Trust for
Eligible Employees of Lansing Board of Water and Light Statement of Investment Policies,
Procedures and Objectives.” and requested Committee approval to forward the Resolution
amended as stated to the full Board for approval at the July 28, 2026 Regular Board Meeting.
Commissioner Price recommended approval of the Resolution as presented, and then
approval of the Resolution as amended at the July 28, 2026 Regular Board Meeting. The
Committee agreed with Commissioner Price’s recommendation.
Regular Board Meeting Minutes
July 28, 2026 Page 13 of 20
Motion by Commissioner David Price, Seconded by Commissioner Beth Graham to forward
the VEBA Plan Investment Policy Statement Resolution as presented at the July 21, 2026
Finance Committee Meeting.
Action: Motion not carried, pending follow-up motion on amended resolution.
Motion by Commissioner David Price, Seconded by Commissioner Beth Graham to forward
the VEBA Plan Investment Policy Statement Resolution as amended at the July 21, 2026
Finance Committee Meeting and presented at the July 28, 2026 Regular Board Meeting for
full board for consideration.
Action: Motion Carried.
Bi-Annual Internal Audit Open Management Response Update
Internal Controls Analyst (ICA) Cody Rochefort provided a biannual update on the status of
management’s implementation of internal audit recommendations. ICA Rochefort
presented the open findings including disaster recovery, payroll audit, and billing audit, with
extensions granted for some recommendations due to organizational changes and system
complexities with the new HRIS system. ICA Rochefort confirmed any extensions are
reviewed and approved by the office of internal auditor.
(Inaudible)
Commissioner James asked how the completion of internal audit recommendations are
verified.
Director of Internal Audit (DIA) Elisha Franco confirmed that any corrective actions are
reviewed by her department and that she works alongside ICA Rochefort to help monitor the
process. DIA Franco also stated that the status of the open audit findings can be tracked in
the audit software program Optro, as well as the Commissioner's internal tracker provided
on the commissioner dashboard.
ICA Rochefort also presented the closed recommendations and stated in order for a
recommendation to be completed, it must be approved by the Director of Internal Audit after
being verified by himself.
Commissioner James asked if the closed recommendations are tested after they are
considered resolved. ICA Rochefort confirmed that each closed recommendation is
checked for completion as well as reviewed by the Director of Internal Audit. DIA Franco
stated she keeps detailed notes, data, and documentation of completion of
recommendations for reference within our audit software program Optro.
(Inaudible)
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July 28, 2026 Page 14 of 20
CFO Scott Taylor stated that open and closed audit recommendations come directly from
the Department of Internal Audit and that DIA Franco works closely with ICA Rochefort to
ensure recommendations are implemented, tested, and followed through appropriately.
Commissioner James asked who is checking the Department of Internal Audit. DIA Franco
answered that her department will be reviewed and audited by an external assessment and
that will be completed next year.
FY 2027 Internal Audit Risk Assessment and Audit Work Plan
Director of Internal Audit (DIA) Elisha Franco then presented the FY2027 Internal Audit Risk
Assessment results and internal work plan for fiscal year 2027. The risk assessment aims to
identify and evaluate risks across all departments and functions, including inherent risk,
existing controls, and residual exposures. DIA Franco stated this process results in a ranked
list of risk areas, categorized by likelihood of impact, to help the internal audit focus on
critical and high risk areas.
DIA Franco said that risk assessment followed a structured four-phase approach, including
reviewing and updated existing risk assessments, designing and distributing surveys, and
analyzing collected data. The survey recipients ranked each of 30 risk areas by likelihood of
impact, providing a less time intensive method compared to previous years.
The risk assessment input included collaboration with the strategic planning department,
selecting individuals in different areas around the company, as well as prior audits
conducted over the last three years.
Commissioner James inquired about the prioritization of risks. DIA Franco stated that the
survey was used to rank risks by likelihood of impact. Commissioner James also asked about
major capital projects and DIA informed her that those were under the operation risk area.
(Inaudible)
DIA Franco stated that the risk ranking was based on likelihood of impact and that each risk
area was ranked from 1 to 5 and an overall risk score was calculated. The risk scores were
then put in order of prioritization, with a heat map, and risk rating provided in the report.
Commissioner James inquired about procurement and contract management. DIA Franco
stated they were under vendor management. Commissioner James also inquired why the
Board of Commissioners were not included in the survey. DIA Franco stated she used the
results from the Risk Assessment completed by the strategic planning department last year
which included comments from the commissioners. DIA Franco stated she would survey
commissioners in the future.
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July 28, 2026 Page 15 of 20
DIA Franco also presented the fiscal year 2027 internal audit work plan. This was developed
using a risk-based approach, considering risk assessment results, prior audit coverage, and
stakeholder feedback. The work plan includes six audits, with four co-sourced with Plante
Moran and two done in-house.
The audits include accounts payable, enterprise risk management, key accounts and
miscellaneous billing, safety and governance, vendor selection and management, and fixed
assets.
DIA Franco then presented a resolution to approve the FY2027 work plan.
Motion by Commissioner David Price, Seconded by Commissioner Beth Graham to forward
the FY2027 Audit Work Plan Resolution to the full board for consideration.
Action: Motion Carried.
Internal Audit Status Report
DIA Franco provided an update on the department, including audit updates, and budget
updates. The internal audit status update newsletter was sent out in June and then next one
will follow in August, providing updates to the board on the months there is no board
meeting. DIA Franco mentioned the Institute of Internal Auditors new topical requirement on
organization resilience, which will be aligned and implemented with future audits.
DIA Franco stated that the September finance committee presentation will include the
FY2026 Environmental compliance audit results, QAIP update, and internal audit strategy
update. DIA Franco also stated that she is now studying for her CFE certification and the new
staff internal auditor is pursuing his CPA license.
Commissioner James stated the May 7, 2026 Finance Committee Meeting Minutes that were
approved had the incorrect date on the footer.
Corporate Secretary LaVella J Todd confirmed the date on the footer of the May 7, 2026
Finance Committee Meeting Minutes will be corrected.
Other
Commissioner Schrader presented some leadership training for the Director of Audit
through Lansing Chamber of Commerce.
Commissioner Price stated that this training was put on all throughout communities in the
United States. It’s a yearlong leadership training course and Commissioner Price thinks it
makes sense for DIA Elisha Franco to participate and that it will be beneficial to the BWL.
Regular Board Meeting Minutes
July 28, 2026 Page 16 of 20
Motion by Commissioner David Price, Seconded by Commissioner Dale Schrader to
provide a recommendation to the full board for Director of Internal Audit Elisha Franco to
attend Lansing Leadership Training provided by Lansing Chamber of Commerce.
Action: Motion Carried.
Motion by Commissioner Beth Graham, Seconded by Commissioner David Price, for
excused absences for Commissioner Chris Harkins.
Action: Motion Carried.
Adjourn
Chairperson Dale Schrader adjourned the meeting at 6:29 P.M.
MANAGERS RECOMMENDATION
There was no manager's recommendation.
UNFINISHED BUSINESS
There was no unfinished business.
NEW BUSINESS
There was no new business.
RESOLUTIONS
RESOLUTION 2026-07-01
FY2026 Rules and Regulation for Electric, Water, Steam, Chilled Water, and Hot Water
Utility Services
WHEREAS, on July 14, 2026, the Committee of the Whole meeting, management presented
its proposed updates to the full collection of Fiscal Year 2027 Rules and Regulations, to be
effective October 1, 2026.
WHEREAS, the Committee of the While considered the proposed update and found it to be
acceptable, subject to any amendments agreed upon during the committee meeting.
Motion by Commissioner Sandra Zerkle, Seconded by Commissioner Dale Schrader, to
approve the Rules and Regulations for FY2027 at a Board Meeting held on July 28, 2026.
Action: Motion Carried.
Regular Board Meeting Minutes
July 28, 2026 Page 17 of 20
RESOLUTION 2026-07-02
Revised VEBA Plan Investment Policy Statement
WHEREAS, the Lansing Board of Water & Light (the “Sponsor”) sponsors the Post-
Retirement Benefit Plan and Trust for Eligible Employees of Lansing Board of Water and
Light (the “VEBA”); and
WHEREAS, the Retirement Plan Committee, established by the Sponsor and delegated
certain duties by the Trustees related to the investment of VEBA assets, periodically
reviews the target asset allocation for each plan and, as a result of its most recent
review, recommends the target asset allocation for Total Fixed Income be increased
from 25% to 28%, the target asset allocation for Core Fixed Income be increased from
15% to 18%, and the target asset allocation for Real Estate be decreased from 15% to
12%; and
WHEREAS, this recommended strategic asset allocation strengthens the portfolio by
reducing risk, increasing liquidity, and maintaining an expected return rate that remains
above target; and
WHEREAS, the Retirement Plan Committee recommends the Sponsor adopt the
revisions which reflect these recommendations in the attached Post-Retirement Benefit
Plan and Trust for Eligible Employees of Lansing Board of Water and Light Statement of
Investment Policies, Procedures and Objectives; and
WHEREAS, the Sponsor wants to adopt the revisions reflected in the attached Post-
Retirement Benefit Plan and Trust for Eligible Employees of Lansing Board of Water and
Light Statement of Investment Policies, Procedures and Objectives.
THEREFORE, it is:
RESOLVED, that, after its review, and based on the recommendation from the
Retirement Plan Committee, the Sponsor adopts and approves the attached Post-
Retirement Benefit Plan and Trust for Eligible Employees of Lansing Board of Water and
Light Statement of Investment Policies, Procedures and Objectives.
Motion by Commissioner Semone James, Seconded by Commissioner Sandra
Zerkle to approve the Resolution for Revised VEBA Plan Investment Policy Statement
at a Board meeting held on July 28, 2026.
Action: Motion Carried.
RESOLUTION 2026-07-03
Internal Audit Work Plan for FY 2027
RESOLVED, that the Board of Commissioners hereby approves the Internal Audit Work Plan
for Fiscal Year 2027.
Motion by Commissioner Beth Graham, Seconded by DeShon Leek to approve the Internal
Audit Plan for FY2027 at a Board meeting held on July 28, 2026.
Action: Motion Carried.
Regular Board Meeting Minutes
July 28, 2026 Page 18 of 20
RESOLUTION 2026-07-04
Approval of Recommendation
Director of Internal Audit Elisha Franco to attend Lansing Leadership Training
RESOLVED, that the Finance Committee passed a motion at its July 21, 2026 meeting to provide
a recommendation to the full board for Director of Internal Audit Elisha Franco to attend Lansing
Leadership Training provided by Lansing Chamber of Commerce.
Motion by Commissioner Dale Schrader, Seconded by Beth Graham, to approve the
recommendation for Director of Internal Audit Elisha Franco to attend Lansing Leadership
Training provided by Lansing Chamber of Commerce at a Board meeting held July 28,
2026.
Action: Motion Carried.
MANAGERS REMARKS
• The 11th State of BWL Address was held on July 21, 2026.
• The 2026 employee picnic was held on June 23, 2026, and it was another great event
with employees, retirees and commissioners in attendance.
• Visited Meridian Township on June 2, 2026, to engage with rate payers on BWL related
matters per the new city charter. The next quarterly meeting is with Lansing Township
on August 25, 2026.
• On June 15, 2026, we opened our Depot facility and participated in discussion about
energy reliability and affordability with U.S. Energy Secretary Chris Wright,
Congressman Tom Barrett, Speaker of the House Matt Hall and other community and
business leaders.
• BWL group attended and had a great turnout at the annual Juneteenth Parade on June
20, 2026. Thank you to Commissioners who were able to participate this year.
• Three executives attended the APPA National conference this year to stay current on
utility industry trends and best practices.
• Interns are concluding their internships and will have presentations of their work on
August 6, 2026, at 11 am to 2:30 pm.
• BWL’s 16th 5K is on Saturday August 8, 2026. Proceeds benefit Pennies for Power.
• Golf 4 Charity event is coming up on August 14, 2026. Proceeds support. Proceeds
support Girls and Boys Club, Magic of Literacy, Pennies for Power
• GM Peffley presented a PowerPoint presentation comparing the July 2026 Storm to
pervious storms. GM Peffley indicated that this storm affected over 22,500 customers
and caused over 12,000 outages. With a combination of BWL crews, mutual aid crews,
and contractors, the BWL was able to restore outages in 121 locations in under 72
hours. GM Peffley compared the July storm to pervious storms from August 2023 and
May 2025.
Regular Board Meeting Minutes
July 28, 2026 Page 19 of 20
Commissioner Leek questioned the graph presented regarding restoration time, and what
the spike on the graph represented.
GM Peffley explained that there was a large tree on Aurelius road that had fallen after the
store that took about 1500 customers, but crews were able to restore all customers
affected.
Commissioner Price asked about the primary cause of downed poles.
GM Peffley explained that the BWL has an aggressive vegetation management program, so
when outages occur, they are typically caused by large trees. He noted that the use of
Hendrix cables, significantly stronger cables, has shifted the system's weakest point to the
poles . As a result, when large trees fall onto the lines, the poles are more likely to snap. GM
Peffley also stated that an audit of approximately 30,000 poles was completed, and about
80% of the poles identified through the audit have since been replaced.
Commissioner Leek asked if it was by design for the pole to snap? Could you put it on
something stronger?
GM Peffley stated that the wire is the weakest link unless the Hendrix cable is used. He
explained that there were many types of poles, the more expensive poles could withstand
more damage, like a steel pole.
Commissioner Zerkle asked about a comparison between this storm to the 2013 ice storm.
GM Peffley referred to the July 2026 Storm PowerPoint and explained that the August 2023
storm was worse than the 2013 ice storm but had much quicker restoration time due to the
continued practice of vegetation management, monitoring of crew scheduling, additional
spotters/wire guards, and additional staffing assistance.
Commissioner Harkins thanked GM Peffley and staff for their continued effort and
excellent communication during the storm.
GM Peffley stated he is always open to suggestions and will continue to provide firsthand
communication to the best of his abilities.
Commissioner Schrader also thanked GM Peffley and his team for the quick restoration
times during the July Storm.
Commissioner James thanked GM Peffley and staff for their continued assistance with
power restoration during the previous night’s accident with a dump truck.
COMMISSIONERS REMARKS
Regular Board Meeting Minutes
July 28, 2026 Page 20 of 20
Commissioner Zerkle thanked the staff for all their assistance during this year’s storms and
thanked her fellow commissioners for the nomination of Vice-Chairperson.
Commissioner Harkins commented on the Director of Internal Audit Elisha Franco
attending the Leadership Lansing training provided by the Lansing Chamber and
acknowledged her dedication to her continued career development. He stated what a great
opportunity this training will be.
MOTION OF EXCUSED ABSENCE
Motion to by Commissioner Chris Harkins, Seconded by Commissioner Sandra Zerkle, to
approve the excused absence of Commissioner Tony Mullen.
Yeas: Graham, James, Harkins, Leek, Price, Schrader, Zerkle
Nays: None.
Action: Motion carried.
PUBLIC COMMENT
Elaine Fischhoff suggested providing better notice to customers regarding rate increases.
She also questioned the upcoming public rating hearings, stating public comment should
be responded to with reasons regarding acceptance or rejection of rate increases. She also
addressed the 2025 Integrated Resource Plan (IRP) and the development of data centers.
Mike Smalligan of CAFE suggested reducing rates for families and increasing rates for large
corporations. He stated the board should consider adding a committee on environmental
issues and public health. He acknowledged that the 2025 IRP and public health should be
prioritized.
ADJOURNMENT
Chairperson Price adjourned the meeting at 6:12 p.m.
LaVella J. Todd, Corporate Secretary
To be approved by the Board of Commissioners: 09-22-2026
Official Minutes filed (electronically) with Lansing City Clerk: 09-23-2026