MINUTES OF BOARD OF COMMISSIONERS' MEETING
LANSING BOARD OF WATER AND LIGHT
______________________________
Tuesday, February 22, 2000
___________________________
The Board of Commissioners met in regular session at 5:30 p.m., in the Boardroom of the Administrative Offices, 1232 Haco Drive, Lansing, Michigan. The meeting was called to order by Chair Diane Royal.
|
Present: |
Commissioners Ronald C. Callen, Ernest J. Christian, Charles M. Creamer, Mark A. Murray, David O ’Leary, Diane R. Royal and Judson M. Werbelow (by conference phone). |
|
Absent: |
Commissioner Rosemarie E. Aquilina |
The Secretary declared a quorum present.
The Pledge of Allegiance was said by all.
APPROVAL OF MINUTES
Motion was made by Commissioner O
’Leary, seconded by Commissioner Creamer, to approve the minutes of regular session held January 25, 2000.Carried unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY AGENDA SUBJECT OR ON ANY OTHER SUBJECT NOW, OR AT THE END OF THE MEETING.
No persons spoke.
COMMUNICATIONS
No communications.
REPORTS OF COMMITTEES
No committee reports.
GENERAL MANAGER
Background materials on items presented are on file in the Office of the Corporate Secretary.
#2000-2-1
UPGRADE STACK CAP AT ERICKSON STATION
RESOLVED, That the Planned Capital Project Estimate (Project 00-111) to Upgrade the Stack Cap at the Erickson Station be increased from $35,000 to $210,000 to cover the cost of more extensive repairs. These repairs are necessary to preserve the stack and its liner, as well as to bring the stack back into compliance with various codes and standards. Funding for Phase I of the Western Coal Conversion will be reduced an equivalent amount to remain within the total Capitol Budget for FY 2000.
Motion by Commissioner Creamer, seconded by Commissioner Callen, to adopt the resolution.
Action: Carried unanimously.
UNFINISHED BUSINESS
No unfinished business.
NEW BUSINESS
Board Retreat: Chair Diane Royal briefed on plans for a Board retreat to be held sometime in May or June. Suggested topics include: (1) the role of Commissioners and frequency of meetings, (2) deregulation, (3) long-term capital expenditures, and (4) investment policies. The agenda and date of the retreat will be firmed up with input from all Commissioners.
GENERAL MANAGER'S REMARKS
Financial Statements for January Reviewed. General Manager Pandy reported that strong cost control measures are paying off as indicated by the positive financial picture for the month of January. The January financial statements show that revenue went up while expenses went down as compared to the same period last year. Mr. Pandy stated that staff is analyzing revenue requirements for discussion with the Board in April with alternative recommendations on rate adjustments for each of the utilities.
General Motors Utility Sales and Revenue. General Manager Pandy presented a comparative summary of sales and revenue from General Motors (GM) for electric, steam and water utilities for FY1999 versus FY1998. Mr. Pandy reviewed the forecast for GM
’s Lansing Grand River Plant relative to sales, loads, purchases, and capacity factors for electric, water, and steam for FY 2001- 2004. The impact for the loss in revenue from GM Plants #1 and 6 in years 2004-2005 was discussed. Mr. Pandy also briefed the Commissioners on competitive issues relevant to Delta Township.Update on Natural Gas Aggregation Program. General Manager Pandy reported that the cumulative cash flow for the BWL natural gas aggregation program is positive as of January 31, 2000.
Maintenance and Meter Reading Services for West Side Water System. General Manager Pandy reported that the BWL has entered into an agreement with the West Side Water System to provide maintenance services on an as-needed or emergency basis. A separate agreement for the BWL to provide meter-reading services has also been negotiated with the West Side Water System.
Update on Electric Deregulation Legislation. General Manager Pandy distributed a copy of a written testimony to be delivered by System Delivery Director Bill Cook to the Senate Energy and Technology Committee on February 23. The testimony outlines the BWL
’s position with respect to electric restructuring, and in particular Senate Bills 937, 940 and 941.Union Contract. General Manager Pandy reported that the union voted down the latest contract package by a 268 to 31 vote on February 3rd. He stated that tentative agreement has been reached with the union on health care. Plans are in process to switch N on-Bargaining Unit
(March 1) and Bargaining Unit employees (April 1) to Blue Cross-Blue Shield PPO, the new health care provider, at less cost than what the current health care carrier can provide. An unresolved issue with the union is the A-1 Schedule, which is a lower pay level based on market wage rates for new employees hired after July 1, 2000. Union employees are working on a day-to-day basis under the old contract, while negotiations continue.LCC Business and Technology Forum. The Commissioners were invited to the annual Reutter Business Technical Institute luncheon to be held on Thursday, March 23, 12 noon at the Lansing Center. Program speakers include Mayor David Hollister; Doug Rothwell, CEO, Michigan Economic Development; Bruce McAttee, CAP Coordinator for Region 1C, UAW; Bob Anderson, Manager of the General Motors Lansing Grand River Assembly Plant.
REMARKS BY COMMISSIONERS
Commissioner Werbelow requested an update on the chilled water project.
General Manager Pandy reported that the City of Lansing has concurred that the Ottawa Station is the best site for the chilled water project. The G-1 (general use) zoning is in place, and no special land use permit is required. The State of Michigan is in the process of reviewing the documents on chilled water services. Once their written commitment is received, the BWL will proceed to build the chilled water plant. Negotiation with the county is at a stand still, as county officials evaluate the feasibility of building its own chiller to serve the new county building.
EXCUSED ABSENCES
By Commissioner Christian, seconded by Commissioner Callen, that the absence of Commissioner Aquilina be excused.
Adopted unanimously.
PUBLIC COMMENTS
THE CHAIR ANNOUNCED THAT MEMBERS OF THE PUBLIC ARE WELCOME TO SPEAK TO THE BOARD ON ANY BOARD OF WATER AND LIGHT SUBJECT.
No persons spoke.
ADJOURNMENT
On motion by Commissioner Christian, seconded by Commissioner Creamer, the meeting adjourned at 6:12 p.m.
/s/ Mary E. Sova, Secretary
Filed: February 28, 2000
__________________________
Marilynn Slade, City Clerk